HLE GLASCOAT LIMITED — Call Transcript 2025

May 29, 2025

May 29, 2025

To, To, The Manager (CRD) The Manager - Listing Department BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East) Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 522215 Symbol : HLEGLAS

Sub: Transcript of Earnings Call for Q4 & FY 2024-25

Dear Sir/Madam,

Pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby enclose the transcript of the Earnings conference call held on May 23, 2025 regarding discussion on operational and financial performance for the Quarter and Year ended March 31, 2025 (Q4 & FY 2024-25).

This same will also be available on the Company's website at www.hleglascoat.com.

This is for your information and records.

Thanking You,

Yours faithfully,

For HLE Glascoat Limited

THAKKAR ACHAL Digitally signed by THAKKAR ACHAL DN: c=IN, postalCode=390002, st=GUJARAT, street=FLAT 402 ANAND HOUSE PHASE2VADODARAFATEHGUNJEME ROAD 390002, l=VADODARA, o=Personal, title=6927, serialNumber=fb0569ecc991464c057d2628145f3897753b62a8984b8d31ff6911feed546c0f, pseudonym=c663646eb3e681962e682a3758e6424d, 2.5.4.20=135cbb41d1c3db67aade17bd4e86c5b23cf41e07195846207aa88495f70907a4, email=ACHAL_1998@YAHOO.CO.IN, cn=THAKKAR ACHAL Date: 2025.05.29 13:16:49 +05'30'

ACHAL S. THAKKAR Company Secretary & Compliance Officer

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“HLE Glascoat Limited Q4 FY '25 Earnings Conference Call”

May 23, 2025

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MANAGEMENT: MR. HIMANSHU PATEL – MANAGING DIRECTOR – HLE GLASCOAT LIMITED MR. AALAP PATEL – EXECUTIVE DIRECTOR – HLE GLASCOAT LIMITED MR. HARSH PATEL – EXECUTIVE DIRECTOR – HLE GLASCOAT LIMITED MR. NAVEEN KANDPAL – CHIEF FINANCIAL OFFICER – HLE GLASCOAT LIMITED MODERATOR: MS. VIDHI VASA – MUFG

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Moderator:

Ladies and gentlemen, good day and welcome to the HLE Glascoat Limited Q4 and FY '25 Earnings Conference Call.

As a reminder, all participants’ 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 “*” then “0” on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Vidhi Vasa. Thank you, and over to you, ma’am.

Vidhi Vasa:

Good evening everyone. Welcome to the Q4 and FY ‘25 Earnings Conference Call of HLE Glascoat Limited.

Today on this call, we have Mr. Himanshu Patel – Managing Director; Mr. Aalap Patel – Executive Director; and Mr. Harsh Patel – Executive Director with the other senior management team.

This conference call may contain forward-looking statements about the Company which are based on beliefs, opinions and expectations as of today. Actual results may differ materially. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is given on Page #2 of Company’s investor presentation, which has been uploaded on the Stock Exchange as well as Company's Website.

With this, I hand over the call to Mr. Himanshu Patel for the opening remarks. Over to you, sir.

Himanshu Patel:

Thank you. Good afternoon and warm welcome to all the participants. Thank you for joining us today to discuss the financial and operational performance of HLE Glascoat for Q4 and Financial Year '25.

I hope everyone has had an opportunity to go through our financial results and the investor presentation, which has been uploaded on Stock Exchanges as well as on the Company's website.

I am pleased to share that Q4 Financial Year '25 has been a milestone quarter for us. In terms of absolute operating performance after a few quarters of relative softness, we reported an EBITDA of Rs. 54 crores with EBITDA margin of 16.3%. While our revenue growth remained robust, our strategic initiatives allowed us to extract operating leverage from existing operations. This has translated into a standout profit after tax, further reaffirming the long-term strength of our business model.

I am also proud to highlight our strong cash generation during the financial year, which enabled us to reduce both long-term and short-term debt obligations by approximately Rs. 50 crores. This aligns with our ongoing commitment to strengthen our balance sheet. Going forward,

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rationalizing our working capital cycle and debt reduction will remain key priorities backed by consistent growths, sustained cash flow and prudent capital allocation.

From a macroeconomic standpoint, the outlook across our end user industry is turning positive. India is entering a multi-year CAPEX cycle with public and private investments gaining steady traction.

In pharmaceuticals, stable demand and a renewed focus on compliance and innovation are driving fresh capacity creation and hence opening up opportunities for high-quality, technologydriven equipment like ours.

Specialty chemicals continue to benefit from global substitution, sustainability shifts, and supply chain localization, supporting long-term infrastructure investments. Though agrochemicals face short-term pricing pressure, inventory normalization and policy support are setting the stage for a gradual demand recovery and CAPEX revival.

Overall, the specialty chemicals and agrochemicals segments are expected to recover post-global trade uncertainty. At HLE Glascoat, we remain well positioned to harness these tailwinds through our robust product portfolio and long-standing customer relationship.

I am also glad to inform you that Kinam Engineering has initiated supplies of its first large oil and gas order. This order will be fully executed in Q1 of Financial Year '25-'26. This, we believe, is a significant milestone that marks our strategic entry into this high potential vertical. It not only diversifies our end-market exposure, but also reinforces our capability to deliver complex, high-value engineering solutions beyond our traditional sectors.

On the regulatory front, the Honorable NCLT Ahmedabad Bench has scheduled the final hearing for the approval of the scheme of amalgamation of Kinam Enterprise Private Limited with HLE Glascoat Limited in July 2025. Once approved, this amalgamation will mark the completion of the multi-state Kinam acquisition transaction and HLE Glascoat will own 70% stake in Kinam Engineering Industries Private Limited. This will further unlock operational synergies ultimately enhancing shareholder value.

As we move into Financial Year '26, we carry strong momentum underpinned by a healthy order book with a business visibility of over 7 months for the international business and over 6 months for the India business. Our short focus will continue on strengthening relationships with pharma, specialty chemicals, and agrochemical players, improving internal efficiencies to maintain margin resilience and continuing our balance sheet optimization strategy.

At HLE Glascoat, we remain committed to deliver innovative, customized, and efficient process equipment to our customers in this dynamic sector. During the year under review, we continued to enhance our manufacturing and engineering processes while deepening engagement with our core client base.

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We are also channelizing investments in process automation and sustainable design, helping our clients not just meet productivity goals but also advance on their ESG aspirations. In this direction, we have recently inaugurated the state-of-the-art Center of Excellence at Anand, Gujarat.

While the performance has been encouraging, our Board has proposed to continue with the same dividend to conserve resources for the Company's growth plan, that is 55% as declared over the last year.

I will now hand over the call to our CFO Mr. Naveen Kandpal, who will take you through the financial performance for the quarter and the year. Thank you, and over to you, Naveen.

Naveen Kandpal:

Thank you, sir. Good afternoon to all the participants. I am pleased to share our financial results for the quarter and year ended March 31, 2025.

The Company reported consolidated revenue from operations of approximately INR 334 crores with a growth of 8.7% compared to Q4 FY ’24, EBITDA of INR 54 crores witnessing a growth of 41.1% year-on-year from Q4 FY ’24 with an EBITDA margin of 15.3%, reflecting our strong operational performance. The Company declared its consolidated PAT at around INR 32 crores, a 113.8% year-on-year jump in comparison with Q4 FY ‘24, which ended with a PAT margin of 9.5%.

On a sequential basis, we achieved revenue growth of 44.4%, up from INR 231 crores. EBITDA on a sequential basis saw an increase of 96.7%, whereas PAT registered a significant growth of 207.8% as compared to Q3 FY ‘25.

For FY ‘25, our revenue grew by approximately 6.2%, rising from INR 968 crores to INR 1,028 crores. Our EBITDA grew 16.6% year-on-year and the annual EBITDA margins stood at 13.7%.

In Q4 FY ‘25, our filtration, drying, and other equipment segments, we de-grew by 5% compared to Q4 FY ‘24. We reported our revenue of INR 109 crores in comparison to INR 115 crores in the corresponding quarter.

Likewise, in FY ‘25, our revenue dropped by 16% in this segment. Despite the revenue degrowth in this segment, we were able to maintain the double-digit EBIT margin for the Q4 FY '25 at 11.2%.

Meanwhile, our glass-lined equipment business generated about INR 582 crores of sales compared to INR 497 crores last year, reflecting a growth of 17%, with EBIT of INR 54 crores, growing by 85% in comparison to Q4 FY '24.

The heat transfer equipment business showed a revenue growth of 38% contributing INR 122 crores to our sales for FY '25, up from INR 89 crores in FY '24.

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Talking on the debt position, we repaid approximately around Rs. 50 crores in this financial year, reflecting strong operational cash flows and paving the way for lower interest costs supporting sustained profitability growth.

While certain end markets continue to face headwinds, our diversified product portfolio and strategic aggregation have helped us navigate the environment effectively. We remain focused on enhancing operational efficiency, deepening customer engagement and maintaining a disciplined financial approach to support long-term sustainable growth.

With that, I would now request the moderator to open the floor for any question. Thank you.

Moderator:

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Jaiveer Shekhawat from Ambit Capital. You may proceed.

Jaiveer Shekhawat:

Sure, thanks and congratulations on a good quarter. My first question was on your GLE business. I see that you have already recovered back to your FY '20 levels. So, could you talk about the recovery across different end-user segments, how that stacks up and also across India and Thaletec business? That will be my first question.

Aalap Patel:

Good afternoon. So the GLE business, like even the filtration and drying segment is seeing good attraction from the pharma customers. The share of pharma customers in our total order book has grown significantly this year. While we see very positive growth in pharma, we also have encouraging trends in the chemical segment. And we are also seeing a positive uptick, not just in inquiry, but also in order book for the chemical customer.

As far as the split between India and the Thaletec Germany business goes, the ThaletecGermany business has actually contributed a larger share of the growth in the overall GLE business rather than the India business.

Jaiveer Shekhawat:

And is that largely happening because of again higher indexation towards pharma in the Germany business?

Aalap Patel:

Yes, that's correct.

Jaiveer Shekhawat:

Right. On the margin side, I mean, given the situation that you are right now in and the recovery that you are expecting, when do you think you would be able to get back to your mid to high teens sort of EBIT range? And how is the competitive intensity at the moment versus where it was possibly a few quarters back?

Aalap Patel:

So, I will answer the question about competitive intensity first. As the volumes in the market go up, the competitive intensity obviously eases out a little bit. And as a result, obviously our ability to get better pricing also increases and obviously that tends to an increase in the margins.

Also, as the volumes go up, we will see spreading out of some of the fixed costs, obviously also leading to an increase in the margins. And as we have maintained through the last few quarters,

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we still believe that a long-term sustainable margin for the India business is in the 17% to 18% range, and that for the German business is in the 14% to 15% range.

Jaiveer Shekhawat: And that will be for your overall business, right? I mean, if we were to one, specifically talk about your GLE and then the F&D business, how would the sustainable margins stack up? Nilesh Ganjwala: I think the sustainable margins for both the businesses are relatively similar. Yes, so they would be in the 17% to 18% range as indicated by Aalap. Jaiveer Shekhawat: Sure, lastly, on your heat exchanger business, I just want to understand the dynamics of the segment where you operate in more on the pharma and chemical side. How is the competitive intensity there and then who are the larger players supplying these heat exchanger equipments to your end clientele, both in India and globally? Aalap Patel: So, I think the general, since we cater to the same industry, the chemical and the pharma, there is a substantial overlap in the customers between our different product segments there. So, the competitive intensity and the evolution of the market dynamics are comparable to our GLE and F&D businesses there also. In terms of who the competitors are, in India typically heat exchanger manufacturers are, so it's a very fragmented industry. There are a large number of relatively small players catering to chemical and pharma. Also, there are a couple of large companies operating with a revenue in the Rs. 100 crore to Rs. 200 crore range. But apart from that, it remains a highly fragmented industry. Jaiveer Shekhawat: If I may, the last question, given you have been leaders on the F&D side, I am just trying to understand, is the clientele over there very different? Because ideally it should not be the case, so why has there been a decline on that segment versus sort of growth that you are now seeing on the glass lining side? I just want to understand that better. Aalap Patel: Yes. So, I think, as we had also said during our last call, the order booking for the first two quarters was subdued for both our businesses, so F&D and glass lining. However, there is always a certain lag in the timeframe when the order booking picks up for each business, a quarter or two here or there.

The order booking for F&D division really picked up in the last two quarters, predominantly in the last quarter of the year. And owing to our cycle time, all of this could not be dispatched. And we only recognize the revenue once the equipment is built and dispatched.

So, while we see a slight de-growth in the F&D business in the last financial year, we are currently at a very high order book, which gives us more than six months or rather close to a little over six months of visibility. So, the top line in the F&D business should recover this year.

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Moderator: The next question is from the line of Vibhav Khandelwal from Laburnum Capital. You may proceed.

Vibhav Khandelwal: Thank you and congratulations on a strong set of numbers. My first question was similar to the questions asked by the previous analyst. If you could sort of give us some sense of how you are seeing the sectors evolve, both pharma and chemical. You gave us some details, but it would be helpful if you could give us more sense of how it's stacking up domestically versus internationally? So, what's the different trends you are seeing, what are the drivers you are seeing in both sectors, domestically and internationally, that would be helpful. Thank you. Harsh Patel: Hello, can you repeat the question a little bit? I missed the first part. Vibhav Khandelwal: So, my question was basically, if you could give us some commentary about both the sectors, pharma and chemical. You gave us some sense in the previous question, but if you could detail it out a little further, what are the different trends emerging, both domestically and internationally? Are there any differences, so on and so forth? Harsh Patel: So, I think as Aalap explained earlier, the pharmaceutical sector has seen an encouraging or rather very positive uplift in the Indian industry. There has been investment in the pharma sector going on in India, which has led to the good order book that we have.

The non-pharma, when I say non-pharma, I would include agrochemicals, some part of basic chemicals, dyes, colorants, pigments, all those kind of industry. They have seen some encouraging development, but they are not at the level that we think they should be. So, there is still some growth opportunity that will come by once those sectors start reviving. These are the two, say, basic trends that are emerging in these two, say, broad segments that we can have.

The other trend that is emerging and I see emerging is the impact of tariffs that the U.S. finally will have on India and on China. In general, what we see right now, even right now when they have a trade deal agreed kind of with China and the trade deal with us is yet to be finalized, we are already seeing anywhere between 10% to 20% differential in the tariff. So, I believe that this is advantageous for India, at least for the U.S. market.

I also think that there is also an uptick. What we see is that a lot of things that Europe was not manufacturing because of the trade wars with China, the war in Ukraine, continuing war in Ukraine and Russia, a lot of things, even the European countries, they have started investing in segments which earlier they were always thinking of going to Asia. So, overall, for the glasslined business in Europe in Thaletec, we see the long-term trend being that more investment is coming and for pharma it’s good in India and the tariffs are also giving us an overall positive outlook.

Vibhav Khandelwal:

Understood, this is helpful. One more question I had was regarding the F&D and GLE business. So just to confirm the growth with the fresh CAPEX, the growth rates for both GLE and F&D is broadly similar and the difference is largely just timing. So, with fresh CAPEX emerging,

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broadly would say that the growth rates of both GLE and F&D businesses respectively should be similar . Am I right?

Nilesh Ganjwala:	Yes, you are right. The growth rates would be similar.
Vibhav Khandelwal:	Understood, and one more question. I think I noticed in the past, FY '23 and FY '24 specifically,
	we saw that the receivables as a percentage of sales, they were going up. Especially now, of
	course, you know, in FY '25 that's improved a lot. I just wanted to understand if we can expect
	the same FY '25 performance going forward. And if the FY '23 and FY '24 performance which
	was slightly weak on the receivables and working capital front was largely due to the down sizes,
	right?
Naveen Kandpal:	Thank you for the question. So, yes, your observations are right. In '24-'25 there has been a
	significant improvement on receivables collection front and we hope that this will continue in
	the coming year as well.
Vibhav Khandelwal:	Got it, any guidance you would like to offer for FY ’26, FY '27 on growth for the margins front?
	Margins we mentioned already regarding satisfied margins. But on growth, if you would like to
	offer any guidance?
Nilesh Ganjwala:	I think we are expecting growth in the high-teens. I would say somewhere in the range of 16%
	to 20%.
Nilesh Ganjwala:	And this would be primarily driven by the pharma sector and the benefits, the trends being the
	CDMO andglobal supply chain diversification as you mentioned, right?
Naveen Kandpal:	Yes, the pharma sector will be the driver, but we are also expecting revival in the other parts of
	the chemical industry which has so far been subdued.
Vibhav Khandelwal:	All right. That's all from my end.
Moderator:	The next question is from the line of Resham Jain from DSP Asset Managers. You may proceed.
Resham Jain:	Good evening, team. So, I have a few questions. The first one is with respect to Thaletec. If you
	can share what is the Thaletec share of the revenue in FY ‘25 overall out of Rs. 582 crores of
	total glass-lined revenue?
Naveen Kandpal:	So, total share of Thaletec’s revenue is around 30% of our total consolidated revenue. 30-, 35%.
Resham Jain:	Sorry, if you can help the exact revenue of Thaletec, that would be helpful.
Naveen Kandpal:	So, I think for the year, Thaletec revenue is about Rs. 360 crores.
Resham Jain:	Which means Thaletec has actually grown like significantly this year. Almost like more than
	40%-50%. Is that correct?

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Nilesh Ganjwala:	No, I think on the annual basis it has grown by roughly about 20%-23%.
Resham Jain:	This is including the Thaletec revenue which you might be accruing from U.S. and India.
Nilesh Ganjwala:	Yes, so this includes Thaletec Germany and Thaletec USA. Both put together, yes.
Resham Jain:	And is the margin this year, FY ‘25, much better than India's margin? Is that a right
	understanding?
Nilesh Ganjwala:	The margin has improved considerably over the last year. This year the margin is close to about
	15% at the EBITDA level.
Resham Jain:	Clear. And with respect to Kinam, given that you have won the large oil and gas order, the
	overall revenue itself is like Rs. 120 odd crores this year. So, given the large size order, should
	one expect that the growth will be disproportionate till '26 given the size of the business and the
	order size which you have mentioned?
Nilesh Ganjwala:	Yes, that's a fair expectation. Yes, absolutely, because a large part of the order is likely to be
	executed in FY ‘26.
Resham Jain:	So, Kinam will become what size? Let's say in '26 and over 2-3 years, what is your expectation?
Nilesh Ganjwala:	I can probably give you some indicative numbers for FY ‘26. We are expecting it to cross Rs.
	200 crores
Resham Jain:	Okay, and maintaining the margin trajectory, which we have done in the past.
Nilesh Ganjwala:	That’s Correct
Resham Jain:	Understood. So, just one final last one, just comprehending what you mentioned in your previous
	remarks as well. The overall revenue then 15%-17%, if I just take the Rs. 200 crores from Kinam,
	then the base business growth will be like 10%-12% only. Is that a right understanding or maybe
	am I reading this wrong?
Nilesh Ganjwala:	I don't think your reading is wrong, but I guess we as management would like to be conservative
	and over perform.
Resham Jain:	Clear. Thank you for answering all the questions and all the best.
Moderator:	The next question is from the line of Raj Patel from RK Securities. You may proceed.
Raj Patel:	Just two quick questions from my side. First one, what could be the total addressable market for
	the heat transfer equipment and what is the share of HLE Glascoat in that market?

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Aalap Patel: I think the total addressable size of the heat exchanger business is a little difficult to quantify. Because like I said earlier, it's a highly fragmented industry. But we feel that it's a market of anywhere close to the Rs. 1,500 crores mark, give or take a couple of Rs. 100 crores. And out of that, with a revenue of around Rs. 122 crores this year, we are about 10% of the market. Raj Patel: And my next question is with repeated order book of Rs. 575.1 crore as of March 2024. So, what is the expected timeline for the order execution and how is this alignment with the Company's capacity and resources planning? As well as, can you provide the breakdown of CAPEX for the upcoming year? Aalap Patel: So, the order book number of Rs. 575 crores is as on 31st March. And as we speak today, we have already, even net of sales, we have increased the order book number by close to Rs. 100 crores. So, like I said earlier, it gives us a visibility of around six months. And this is around six months for the India business and about seven months visibility for the international business. In terms of the capacity with very minimal small CAPEXs which are more like maintenance CAPEX in nature, we should be able to cater to all of these orders. Moderator: The next question is from the line of Sanjay, an individual investor. You may proceed. Sanjay: Good evening and congratulations for the good quarter. My question is slightly different. This is a suggestion as well and the Company also may be in the process. I just wanted to know whether our Company is exploring possibilities of expanding business in the aerospace, defense, power and nuclear sector where filtration and heat exchanging activities could have a marked impact on expanding our business. Aalap Patel: Yes, that's a very interesting question. See, as a part of our filtration and drying and exotic material business, we very frequently execute engineer to order equipment. And in the past, we have also executed orders for the defense sector in terms of having supplied decompression chambers for the Indian Navy. So, this is already a sector that we have dabbled in and it is obviously also a sector which is interesting for us. Sanjay: And is there any confirmed orders with regard to the defense or ongoing orders with regard to the defense and power sector? Even nuclear. Aalap Patel: So at the moment, in our order book, we don't have any orders from defense or nuclear. Sanjay: But is the Company trying to engage in garnering business from these activities? Aalap Patel: Yes, these sectors are interesting for us. Sanjay: Because this is a sunrise, this one, and the government budget itself is so large, getting a small bit can expand our business multi-fold. Aalap Patel: Yes, absolutely.

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Sanjay: And second question would be based on your assumptions and guidance, is it possible that our Company profits may touch the coveted Rs. 100 crore mark this year, net profit? Nilesh Ganjwala: I think we are working hard to touch that number. Yes, we are definitely going to make an attempt. Sanjay: It will be a milestone if it happens. Nilesh Ganjwala: Yes, absolutely. We are hopeful of achieving that very soon. Moderator: The next question is a follow-up question from the line of Resham Jain from DSP Asset Managers. You may proceed. Resham Jain: Thanks for taking my question again. So, you mentioned in your opening remarks that you have put up a new R&D facility at Anand. If you can just share your thoughts, what are you planning to do there? And are you getting into any other new line of business as well through that particular facility? Aalap Patel: Yes. So, the facility is actually a Center of Excellence for glass lining. So, it involves multiple aspects, starting from research and fundamental research and development around glass. Also new product development, assisting the Thaletec team with rapid prototyping and stuff like that. So, it's an integrated facility which can not only do R&D, but also for state-of-the-art production of the glass itself. And with that capability, obviously the ultimate end goal is to open doors to entirely new industries in the material space, but that is not something that is short-term, but obviously that is the long-term objective. Resham Jain: Okay, but this facility or excellence center will not increase your overall capacity. Is that correct? It is just to add on some of the newer areas. How should one read about this? Like this investment, how is that going to help in the overall Company from a revenue perspective? Nilesh Ganjwala: So, while it may not have a direct immediate impact on revenues, I think it has two or three longer term impacts. One is of course by improved products and improved material research; we are expecting to improve the quality of product and also improve the ultimate realization. It is also a demonstration for our customers of our passion for high quality products and continued research and development which will keep us ahead of the rest, which is really what is required. This is also a great platform for us to talk to potential customers and also helps us considerably in convincing customers of our capabilities both in terms of the glass itself as well as the overall equipment. Harsh Patel: So, there are multiple things that we are looking at. So, a lot of innovation at Thaletec was happening in Germany. This center also helps in doing some of the research development work in India. So, the Thaletec team is taking help of the facilities that we have developed here, , and we are jointly developing specific products or innovations for the Indian market. So, these are

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all long-term things that will come into play. I mean, not really tangible in that sense, but they are very, very important for the long sustainability of business.

Moderator: The next question is a follow-up question from the line of Vibhav Khandelwal from Laburnum Capital. You may proceed. Vibhav Khandelwal: Just a follow-up from a previous question. I think you mentioned that in India you are seeing a good trend of investments being happening. My assumption is a lot of it is just global supply chain diversification. I wanted to understand from your conversations with clients etc., do you not see any trends of that sort in internationally in Europe, for example? Or is it more India focused only? Aalap Patel: I am sorry, I don't understand your question fully. Could you please try explaining the, or rather restating the question? Vibhav Khandelwal: Yes, my question is, in the previous answer, I think you mentioned, if I remember correctly, that a large trend you are seeing, a good trend that you are seeing is that in India, you are seeing increased investment in pharma given global supply chain diversification and more capacity being added. My question is are you seeing similar trends in Europe also or if this theme or the large CAPEX, is it more India focused only? Aalap Patel: I think what we are also seeing is more frequently larger projects in Europe. Now the exact nature of those projects, what molecules, what is a customer strategy behind making those investments, those are things that we often don't have complete clarity on. But yes, we are seeing a larger share of project orders within our inquiry pipeline and also in our order book. This is with regards to Europe. Vibhav Khandelwal: And one more question. Could you please give me some sense on what is the typical maintenance CAPEX that we typically need to undertake on a steady-state basis on a consol level? Nilesh Ganjwala: So, I think we normally spend roughly in the region, we currently have four plants in India and the fifth plant in Germany in the group. Between the five plants, the maintenance CAPEX for the year ranges between Rs. 12 crores to Rs. 15 crores. Vibhav Khandelwal: That's all. Moderator: The next question is from the line of Ajay Surya from Niveshaay. You may proceed. Ajay Surya: Thanks for the opportunity and congratulations on the performance which has been really encouraging. Sir, if my understanding is right, from what we understand, the replacement cycle is slightly faster in glass-lined equipment might be like 4-5 years compared to ANF or ANFD. And if we look at our end industry, like majorly being chemicals and pharma, which had a largescale CAPEX cycle during and post-COVID, so when we say that the order inquiry and conversion cycle is improving, so wanted to make more sense on whether is it the replacement

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demand for these equipments which has started to kick in or are we saying is it like new equipments being installed? Also, if not currently, then when do we see the replacement demand kicking in which can maybe yield better growth for the Company?

Nilesh Ganjwala:

So, I think the replacement demand is ongoing, continuous. But even within the replacement demand, it is not pure replacement as can be identified as replacement because typically a customer who had, let's say, a 5,000-liter reactor, when he replaces it with the expansion in his own business, typically places an order for maybe a 6,000- or 8,000-liter reactor and so on. So, even a replacement demand for us is additional investment from the customer. So, from that perspective, replacement demand is ongoing.

I think the CAPEX demand is more related to the capacity utilization of each of these customers. And that is what we typically consider as CAPEX is when there is an additional investment to enhance capacities.so our predominant focus from a business development perspective is to focus on the CAPEX demand because the replacement demand to a large extent takes care of itself as far as we are concerned.

Ajay Surya:

Sir, one more question on the competition. So, are we seeing things improving at the overall industry level or is it that we have outrun our competition? And if you can give more light on the on-ground business environment, like if any, like there are new competition coming in last couple of years. So, has any player moved out or been struggling in the industry which is benefiting to healthy order conversion for HLE? Or is it that things are improving both at the industry level?

Aalap Patel:

So, I would say, largely speaking, things have improved overall at an industry level. And we would also like to believe that our very strong focus on customer engagement, new value-added products, introducing Thaletec technologies for example in India, and of course continuously improving on quality and price has helped us gain a little bit more market share over the last couple of quarters. It has actually fructified into a larger market share over the last two or three quarters.

Other than that, I think as far as number of competitors and competitive intensity is concerned, largely we are still dealing with the same number of players as we have had over the last two or three years. We have had a couple of small guys entering the market, but at the same time also, supposedly one Company going out of regular production. So, largely the competitive intensity has remained the same.

Ajay Surya:

And sir, one final question. In the previous commentary and guidance as well, our total manufacturing facility can achieve maybe a peak revenue of Rs. 1,500 crore as guided by the management. So, are we looking at any short-term guideline for CAPEX? Or is it still…

Nilesh Ganjwala:

No, I think the Rs. 1,500 crore number was with respect to the total addressable market for the heat exchanger business excluding oil and gas. So, I don't think that was an indication of the

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value of supplies based on our current capacity. To answer your question specifically, we do not have any large CAPEX lined up for this year.

Ajay Surya: And sir, what can be the peak revenue potential for all the five plants, like the four… Nilesh Ganjwala: It's very difficult to answer that question because value of revenue or value of turnover is dependent on size of equipment, material of construction. Just to give an example, if you were to do an equipment in stainless steel SS 316 vis-a-vis an equipment made out of Hastelloy, which is an exotic alloy, the value difference could be 4x. So, it's difficult to put a value number to it. To put it differently, we are currently operating on a weighted average, I would say, at around 75% capacity levels. Ajay Surya: That gives much more sense. All the very best for the future. Moderator: The next question is from the line of Sahil Vora from M&S Associates. You may proceed. Sahil Vora: I had a couple of questions. Sir, firstly, I wanted to understand why the filtration, drying and other equipment are showing decline in revenue? And what measures are taken to increase their sales? Aalap Patel: Hi. I gave exactly the same answer a couple of minutes ago, but I will go at it again. See, as we had indicated in our last earnings call, the first two quarters of the year was fairly subdued for both the F&D and GLE businesses in India. We did see a pickup in the order book during the last two quarters, largely during the last quarter. And as you know, our cycle time is somewhere in the 16-week period. So, a lot of those orders which were actually booked did not get dispatched and hence did not get booked as revenue. So, while we did do quite well on the order booking for the year, the order booking did recover eventually, but it did not translate into sales or revenue. And as a result, like I said, we have a fairly high order book as of end of 31st March. And so this, the fact that we have a little over six months of visibility for the India F&D business, I am fairly confident that the top line will recover.

Sahil Vora: Thank you for reiterating, sir. My next question is, I don't know if this is already asked, but I was busy with some other things. How much revenue growth will be provided by the manufacturing facility at Anand? And how much CAPEX are you planning over there? Nilesh Ganjwala: We do not have any major CAPEX planned for any of our plants, including at Anand. The overall growth that we estimate for the business is, as I said, in the high teens, between 16% to 20%.

Sahil Vora:

That sounds good.

Moderator: The next question is from the line of Veer Rajesh Vadera from Niveshaay Investment advisors. You may proceed.

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Veer Rajesh Vadera:	Good evening, everyone. So, as you mentioned that Kinam has initiated supplies of their large
	oil and gas order, so can you quantify the size of order?
Nilesh Ganjwala:	The size of the order is in excess of Rs. 65 crores, Rs. 60 crores, sorry.
Veer Rajesh Vadera:	How much has been recognized in Q4 or how much has been supplied till now?
Nilesh Ganjwala:	I think roughly about 25% has been supplied so far.
Veer Rajesh Vadera:	And can you guide the growth guidance for Thaletec on standalone basis?
Nilesh Ganjwala:	I think Aalap referred to it a little earlier. The growth for Thaletec is estimated at around 15%
	for the coming year with the EBITDA margin in the 14% to 15% range.
Veer Rajesh Vadera:	And this year we sawa change in product mix and major revenue was coming from pharma side,
	like in Q3, 45% was from pharma and in Q4 66% was from there. So, can we expect this product
	mix to continue in future?
Nilesh Ganjwala:	It's difficult to say. We would actually expect the other industry segments also to pick up going
	forward. With pharma remaining strong, we would hope that the other industry segments also
	pick up so that there is a relative parity between all the sectors, between pharma and let's say the
	rest of the chemical business.
Veer Rajesh Vadera:	And margins are similar around all the segments like Pharma, Chemical and other?
Nilesh Ganjwala:	Yes, broadly similar. Yes, broadly similar.
Veer Rajesh Vadera:	And my major other questions were asked, so like my questions are over.
Moderator:	The next question is from the line of Kshitij Jadhav from Wealth Culture. You may proceed.
Kshitij Jadhav:	So, my question is that your top 10 customers account around 35% total revenue in glass-lined
	and 44% in filtration. It was in FY ‘23. So in 2026, who are your top 10 clients? Can you name
	them?
Nilesh Ganjwala:	No, it would not be possible for us to name it on a forum like this. In any case, the top 10
	customers change virtually every half year. Because every half year the customers are different.
	So, while top 10 constitute a certain percentage for every period, the customers don't remain
	constant in that segment, in that numbering list.
Kshitij Jadhav:	So, in the order book of Rs. 575 crores, can you only name from which industry are the majority
	orders coming from?
Nilesh Ganjwala:	The primary majority is coming from pharma.

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Moderator: The next question is from the line of Isha Murti from IM Capital. You may proceed. Isha Murti: So, my question is like what operation and strategic synergies are anticipated from the proposed amalgamation with Kinam Enterprise and how will this impact the Company's product offering and market reach? Nilesh Ganjwala: I think we had spoken about this at the time of disclosing the transaction itself. This is a considerable increase in our breadth of product range that we supply to our customers. There is a very large overlap of customers which brings with it a lot of synergy in business development as well as in terms of enhancing our customer relationships. We are already seeing a huge benefit arising when one goes to a customer with a very wide range of products including filtration, drying, glass-lined equipment and now heat transfer equipment. It definitely adds a lot of value to our overall relationships while cutting down on our overall business development costs. And this is really what we are hoping to achieve in the long run. On the production side also, there are lots of benefits, which I think we had mentioned was with respect to, there is a lot of overlap in terms of the kind of processes that we employ for manufacturing these equipments as well as in some of the vendors that we use for the various equipments that we manufacture. So, there is a considerable element of synergy that we are witnessing as we move forward. Isha Murti: Also, sir, I wanted to ask you, like, what is the average selling price of heat transfer equipment as compared to other competitors of yours? Nilesh Ganjwala: Difficult to answer that because I don't know what the competitors are selling and what they are selling. To be very honest, we at Kinam, we sell equipment based on five or six different technologies, different platforms. There is no competitor in India which has all of these platforms available under any one single roof. So to that extent, what we offer is a solution, whereas most of our competition basically offer a singular product. So, really what we do and what our competition currently does in the market is not really comparable. Moderator: The next question is from the line of Sahil Singh from SK investments. You may proceed. Sahil Singh: I had a couple of questions. So, firstly, sir, I wanted to ask how is the integration of the Thaletecadvanced glass-lining technology going on for HLE? How has it been the response from India as well as globally, if you could help with that? Nilesh Ganjwala: So, globally, Thaletec has been a very successful player in some of the most challenging markets for our products like Germany, Austria, Switzerland. They have been the technology leaders for many, many years now. A lot of those same technologies are now fully indigenized and also being offered to the customer with a very positive response. And we also have a very encouraging order book of Thaletec range of product.

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Sahil Singh:	And sir, like, we have done an acquisition, like, with Clean Max Anchorage. So, how do you see
	that contributing us in the revenues and how sustainable is it, like is it for the goal of cost
	optimizing or what was the strategy behind it?
Nilesh Ganjwala:	So, this is not an acquisition. This is actually more a joint venture where our stake is going to be
	at 26%. This is for a captive renewable energy platform where our current energy, which we buy
	from the grid, will be replaced by renewable energy. So, basically the advantage of this will be
	reflected in the form of lower energy costs going forward. So, this is more in the nature of a
	backward integration for one of our critical cost inputs. So, that's how it's going to play out. As
	I said, we are only at 26% stake. The operating partner is the Clean Max Group, who will be
	generating and supplying the entire energy generated to us at Anand.
Sahil Singh:	Any guidance for the coming quarters? That's my last question, if that could help.
Nilesh Ganjwala:	As we said, we are looking to obviously keep improving both in terms of the product offering to
	the customers as well as in terms of the revenues and profitability to our investors.
Sahil Singh:	That's all from my end.
Moderator:	The next question is from the line of Sanjay, an individual investor. You may proceed.
Sanjay:	I just wanted to know, on March 28th and 29th approximately, the Directors had purchased about
	60,500 shares from the market. However, this intimation has not been submitted to the
	exchanges. If this was known, actually, investors would have welcomed this move and would
	have created more goodwill for the Company. Why as on today, the information has not been
	submitted? That is the first one.
	And the second question is, this oil and gas sector, what you have entered into, that is for PSU
	or private players? Even in this space, there is a huge opportunity. So, is the Company looking
	aggressively to expand the business in this sector?
Nilesh Ganjwala:	With respect to the acquisition of shares by the promoter family, the due intimation to the stock
	exchange has been given. So, you may please check with the intimations on the stock exchange.
	It has duly been submitted.
Sanjay:	It has not been published on both the...
Nilesh Ganjwala:	So, we have made the submissions. I think for it to be made public or otherwise is actually the
	stock exchange’s prerogative. But our submissions, I can assure you, have been made duly in
	time.
Sanjay:	And what is the percentage? By how much has it gone up now? Because this would have….
Nilesh Ganjwala:	No, this doesn't have any percentage. It's in a few bps.

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Sanjay: Exactly. Nilesh Ganjwala: So, it's not material in that respect. Sanjay: Minor. Nilesh Ganjwala: Yes, it’s not material. No, it’s not material in that respect. Sanjay: Compared with the market scenario and the price being at a lackluster level, this would have really been welcomed by the market. Nilesh Ganjwala: No, but as I said, it didn't have anything to do with the market, it was just more as a... Sanjay: No, no, it would have been welcomed. That's what means the investors could have welcomed. Nilesh Ganjwala: Yes, so it was intended as a show of confidence from the promoter. That was the sole intent. Sanjay: Exactly, yes, congratulations. I most welcome this part. And this oil and gas side, what is the future? Nilesh Ganjwala: The oil and gas side, this is basically supplied to a very large joint venture, which is a privatepublic participation project, very large project. And this will pave the way for further orders because this establishes the track record, which is very critical in this industry. Sanjay: Are you looking to be in touch with the PSU giants in the oil sector? Nilesh Ganjwala: Oh yes, of course. Sanjay: ONGC, HPCL, BPCL. Nilesh Ganjwala: Sure. Most certainly. Most certainly. Sanjay: Thanks for supporting. Moderator: Thank you. In the interest of time, that was the last question. I now hand the conference over to the management for the closing comments. Over to you, sir. Harsh Patel: Quarter 4, 2025 reflects what is possible when strategic clarity meets disciplined execution. As India's process industries surge ahead, we at HLE Glascoat are well positioned to play a meaningful role in enabling their successes. I thank all of you for taking out time to attend this earning call. Have a good day. Aalap Patel: Thank you.

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Moderator:

Thank you. On behalf of HLE Glascoat Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.

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