INDO SMC Limited — Call Transcript 2026

Feb 16, 2026

CIN: L71100GJ2021PLC125904

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Date: - February 16, 2026

To, Compliance Department, Bombay Stock Exchange Mumbai

Symbol: INDOSMC, ISIN: INE0WKY01013

Subject: Submission of Transcript of the Earnings Conference call held on 11[th] February, 2026, Wednesday at 12:00 P.M. (IST)

Ref: Regulation 30(6) read with Schedule III Part A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”).

Dear Sir/Madam,

With reference to our intimation dated February 06, 2026 related to the Earnings Conference call, the Company is submitting the transcripts of Earnings Conference call of the analyst/investor conference call which was held on 11[th] February, 2026, Wednesday at 12:00 P.M. (IST) to discuss the Unaudited Financial Results of the Company for the Quarter ended 31[st] December, 2025.

Submitted for your kind information and necessary records.

You are requested to kindly take the same on your record.

Thanking You.

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For INDO SMC Limited

Avani Digitally signed by Rajeshbhai Avani Rajeshbhai Patel Date: 2026.02.16 Patel 11:17:19 +05'30' Avani Patel Company Secretary & Compliance Officer Membership No: A66815

Registered Office 809, Shilp Zaveri, Nr. Shyamal cross road, Satellite, Ahmedabad-380015 Factory Unit 1: Plot No.11, Shivprerna Industrial Park, kamod to pirana road, ode, Daskroi, A'bad -382425 Unit 2: Plot No. A 37/2, NICE Area, MIDC Satpur, Nashik, Maharashtra - 422007 Unit 3: Plot No. SP7-50, RIICO Industrial Area, Gheeloth, Kotputli Behror, Rajasthan - 301705

(Formerly known as INDO SMC PRIVATE LIMITED) www.indosmc.com

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“Indo SMC Limited Q3 FY’26 Results Conference Call”

February 11, 2026

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MANAGEMENT: MR. NEEL SHAH - MANAGING DIRECTOR AND CHIEF FINANCIAL OFFICER, INDO SMC LIMITED MR. NITIN PATEL - CHAIRMAN AND NON-EXECUTIVE DIRECTOR, INDO SMC LIMITED MR. DIPAL PATEL - FINANCIAL CONSULTANT, INDO SMC LIMITED

MODERATOR: MS. RUCHIKA SHAH - EQUIBRIDGEX ADVISORS PRIVATE LIMITED

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Indo SMC Limited February 11. 2026

Moderator:

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Ladies and gentlemen, good day and welcome to Indo SMC Limited Q3 FY’26 Results Conference Call hosted by EquiBridgeX Advisors Private Limited.

This conference call may contain forward-looking statements about the Company which are based on the beliefs, opinions and expectations of the Company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during 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. Ruchika Shah from EquiBridgeX Advisors Private Limited. Thank you and over to you ma'am.

Ruchika Shah:

Thank you. A very good morning to everyone. Welcome to the Q3 FY’26 Earnings Call of Indo SMC Limited.

From the management team we have with us today, Mr. Neel Shah – Managing Director and Chief Financial Officer; Mr. Nitin Patel – Chairman and Non-Executive Director; Mr. Dipal Patel – Financial Consultant.

We will have opening remarks from the Management Team post, which we will open the floor for questions and answers.

With that, I would like to hand over the call to Mr. Neel for opening remarks. Over to you, sir.

Neel Shah:

Thank you, ma'am. Good afternoon, everyone.

A warm welcome to all our investors and stakeholders joining us for Indo SMC’s Q3 FY26 earnings call - our first earnings call after listing. Thank you for your trust and support as we begin this new chapter as a public company.

Indo SMC continues to focus on delivering high-precision, utility-compliant electrical solutions across metering cubicles, CT configurations, FRP cable trays, and SMC meter boxes. Our emphasis remains on quality, execution, and building long-term customer relationships.

Q3 FY26 has been a strong quarter for us.

Revenue from operations stood at approximately Rs. 10,149 lakhs, reflecting healthy quarteron-quarter growth. EBITDA came in at Rs. 1,645 lakhs, and Profit After Tax stood at Rs. 1,210 lakhs, showing strong improvement driven by operating leverage and disciplined cost management.

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During the quarter, we secured fresh orders worth over Rs. 54 crore. As on date, our total order book stands at Rs. 142.45 crore, giving us strong revenue visibility for the coming quarters.

We also received MSEDCL vendor approval for 11 kV metering cubicles and continued to see repeat orders from key customers, reinforcing our market position. Additionally, we significantly improved our working capital efficiency, with receivable days reducing from 83 days in H1 FY26 to around 40 days in Q3 FY26.

Going forward, our focus remains on profitable growth, efficient execution of our order book, and maintaining strong governance standards as a listed entity.

With that, I conclude my remarks and would now be happy to take your questions.

Thank you once again for your time and continued support.

Moderator:

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Abhi Jain from AJ Capital. Please go ahead.

Abhi Jain:

Hi, good afternoon, sir. Great set of numbers. Now, since we have got some visibility around the order book and we are also approaching the year end, I just wanted to understand how growth is shaping up? How do you see yourself moving on from here? Any revised guidance for FY’26 and FY’27? Because specially, obviously, transformers is a space and the whole power sector is a space which is booming, and which is high in demand. But given that we have seen a lot of rerating happening in the sector and a lot of companies being rated down, given the uncertainty in the global world, how is demand shaping up for you? And can you give us some sort of idea about the next 2-3 years? How do you see your revenues growing? How do you see the demand shaping up? Something around that.

Neel Shah:

Basically, there is no doubt that we are working in the electricity industry like Utilities is quite booming. And we have a good hold on the Utilities. Right now, we are in FY’26 and we are booking order-to-order. Regularly, no industry can run without power. So, power saving plus renewable, whatever we have to take a stand, that will be clear for the industry. So, all the Utilities, like the Maharashtra government, or BESCOM or whatever other governments we have, they want to bring their power sector into a channelized and proper management. Whether it is renewable energy or anything else, we will have a contribution in this. So, the main focus is that the visibility is clear for the next 10 years that the market is booming. So, we are focusing on that. There was smart metering earlier. Now, there is work going on as well. There is a lot of better performance on the government plus Utilities. There are a lot of projects going on for electricity saving which is a revamping project of the government. So, we will be able to perform much better on that in this product line. Till date, what we have achieved, we want to continue at this pace which will be multifold in the next year. Because, right now, whatever orders we are getting, in our 3 years, in any government unit, as soon as it ends, the order books increase a lot because, believe me, a belief is created on the Company. So, our focus is that we should click

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on the proper order book as per our trust and work in its multifold in the next year also as per the pace we are continuing.

Abhi Jain: That's great, sir. Any guidance on FY’26, sir? What will you be closing at revenue on FY’27?

Neel Shah: Right now, the pace we are going at, our internal target was between 80-90. But we can go beyond that as per the pace and clearance of orders. Because, this time, it rained a lot in H1. So, we had a lot of materials ready. So, that's why, in our second quarter, the pace was the same. We already had materials and planned out the proper order clearance. So, that continued. And we are still getting continuity orders and clearance. So, we believe that we will achieve the target of around (+300) because it will be a good performance base and for the next year, we are getting good clearance from all the places. So, that's our plan out. That we should go to almost (+450). Minimum. And we are expecting a better performance once we execute orders and will update you about the same order-to-order.

Abhi Jain: I wish you all the best, sir. Sir, can you give us an idea whether your margins will improve, or you will be able to maintain these margins or there will be any risk? Because, obviously, when you are growing at a very fast pace, there is always a risk. So, can you address the investors and shareholders about what are the risks that you see towards your growth? What are the hurdles which will make it difficult for you to achieve these growth numbers?

Neel Shah: Right now, I can't see the hurdles because I have already passed them. Normally, the hurdles are that we want to continue like this So, there will be a lot of planning and systematic. After IPO, we get a free hand that whatever we are planning should perform well. Right now, we are focusing on exports. And, whenever the market is in H1 or H2, plus and minus, we have planned out for proper growth and proper stability. In the beginning we had to stop for a bit because of approval requirement. Right now, we have already gained approvals at many places. Right now, we are focusing on different industries. With this product range, we have been able to perform in railways and defense. Right now, we are not focusing on R&D now. So, right now, I can't see the hurdles that I can easily achieve these numbers. And there will be continuous growth because this is a regular requirement. And, in future, new sectors will be added to our industry. So, we will be able to perform better.

Abhi Jain: Brilliant, sir. All the best to you. Hopefully, you will be able to do better than what you are saying.

Neel Shah: Surely, sir. Abhi Jain: Thank you.

Neel Shah: Thank you.

Moderator: Thank you. The next question is from the line of Nishita from Sapphire Capital. Nishita, please go ahead.

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Nishita:

Yes, hello. Good afternoon. Sir, my question is about capacity utilization. In your IPO call, you mentioned that we are at 30%-40% utilization. In Q3, what was our capacity utilization? And how soon will we be able to ramp up?

Neel Shah: Basically, the 30%-40% we mentioned at that time was for 6 months. When there was a monsoon in our industry, we slowdown our production and after that we could catch up. So, mainly, my production ratio will be around 60%-80% by the end of the year. After that, we will do a better performance and want to go up to 90%. Nishita: Okay. You also mentioned that our sustainable EBITDA margin is 18%-19%. But, right now, we are at 16% because our utilization capacity is not complete. Can we see better margins? And, what margin will we end at in FY26? Neel Shah: Basically, I would like to talk about PAT. Because we are maintaining our PAT and there will be better performance. Right now, our minimum target is around 10%. But we are already doing better performance up to 11%. So, the target is not the same if we go up to 12% and go with the same growth speed. Right now, our buying is getting stronger. So, we will be able to perform better. Nishita: So, in FY’27, can we see a PAT margin up to 12%? Neel Shah: Our target will be the same. Because we are still at 11%. So, we would like to maintain a sustainable EBITDA. At the same time, we would also like to improve because we are doing cost auditing on a regular basis. Nishita: Right. And, my next question is that our order book is Rs. 54 crores fresh orders we got for Q3 FY’26. So, how much will the exit order book be for FY’26? Neel Shah: Right now, we have confirmed order book till March. Because even after this plan-out, today, we have secured almost one order. So, our order book was almost Rs. 48 crores. So, by the end of March, our order book should be around Rs. 250 crores. And after that we will keep on adding the new orders to our kitty. Nishita: Generally, what is the execution timeline for order completion? Neel Shah: Normally, it is year-to-year. So, we have to clear it within 7-12 months. Then, again, there is an update till December. So, from December to March, your total order book will be regenerated. If you are distributing, you have to finish it by the end of March. That is our target. Because there is fluctuation in the market because we have metals, plus fibers and petroleum products. So, that fluctuation is year-to-year. So, it depends on every tender.

Nishita: Right. Next question is on CAPEX. In the IPO objective, we said that we will use Rs. 25 crores for CAPEX. So, is there any update on that?

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Neel Shah:

Basically, we have almost planned out the press unit of 2,000 tons. Technical clearance is going on. Plus, there is a requirement for dyes so for that drawings and everything are up for approval. We have already bought out the machines for pultrusion. We have already delivered 2 machines. We will get 3 more machines. So, it is almost growing. Ou lab equipment will be ready by the end of February at our vendor’s side. So, we will get it delivered. Basically, it is required for our Nashik unit. It is technically required. Technically, we are doing the meter cubical, we have taken the approval for 2011. Now, we are going for 2033. So, the machinery equipment for the update will be planned out first so that we can update the lab properly.

Nishita:

Okay. Got it. Thank you so much.

Neel Shah:

Thank you.

Moderator: Thank you. The next question is from the line of Samarth Kanabar from SKS Capital. Please go ahead.

Samarth Kanabar:

Good afternoon, Neel bhai.

Neel Shah:

Good afternoon.

Samarth Kanabar:

In the last two questions, I had an additional question. Approximately, you are doing 30% utilization. In that, your revenue is increasing. So, how much will be the capacity utilization by the end of the year? If you are talking about the topline of Rs. 450 crores, what will it be?

Neel Shah:

By the end of next year, right?

Samarth Kanabar:

Current year.

Neel Shah:

Current year, as the things stand today our target would be around Rs. 300 crores. Actually, our internal target was Rs. 280 crores-Rs. 290 crores. But according to the order book and after the IPO, new states are opening up in front of us. So, for that, we are doing performance-based work. In terms of the cubicle, our target was for next year. We will work on it in the next year. Now, we are taking technical approvals. But, after the IPO, there are many phases. We also started getting approvals. Order book is also getting better. So, the capacity we were enhancing, we will have to double it if we want to finish the order. So, we are planning the same. The market is much better, and the demand is also increasing. Performance wise the H2 is always better based on our order book, so we are targeting that.

Samarth Kanabar:

What is the working capital cycle and how do you manage it?

Neel Shah:

Right now, H1 was for 83 days. In that also, we have enhanced it to 40-45 days. If it is government, then 45 days. If it is public, we have increased it to 30 days. That is why, our average is at 40 days right now. Which is better.

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Samarth Kanabar: But around Rs. 450 crores that you are saying for next year, so the margins will definitely be better. I am talking about EBITDA margins. Neel Shah: I would like EBITDA to be managed in a proper line-up. And for PAT, I focus more on PAT Because, if I am managing PAT, EBITDA automatically is done. Samarth Kanabar: Agreed. Alright. Congratulations on the very good set of numbers and all the best. Thank you, sir. Neel Shah: Thank you. Moderator: Thank you. The next question is from the line of Hrishit Jhaveri from CBA Assets Managers LLP. Please go ahead. Hrishit Jhaveri: Good afternoon, sir. Congratulations on the great set of numbers. Sir, my first question was on the segment split. Obviously, our segment wise split has been a bit volatile. So, going ahead in next 2-3 years, how do we see our segment split spanning around the 3 core segments which we are in? Neel Shah: Basically, we are in the composite industry, sir. So, our focus, actually utility was that we have been working in this business for the last 30 years. So, it was easy for us to grab. So, we focused on that first of all. And now, volatile, actually, even regular business is good. So, we will focus on utility only. Along with that, we would like to serve railway and defense in the composite industry. So, we are focusing on designing new equipment. Plus, we are also focusing on exports as the oil industry is using our pultrusion, grating, etc., so our focus is on that. So, last month we have sent a container to Oman for trial. So, if it remains regular, the business will also continue to grow. So, we will not focus on one industry only, we will focus on multiple industries. Because composite industry serves in that way that it replaces many metals. So, it is looking better in India. If we have composite or if you serve in any way, it will be better in the market. Because it is aerospace. Composite is already going on in everything. Hrishit Jhaveri: I agree. What are our targets? How much SMC will be there? How much electric will be there, in the next 2 years? Neel Shah: Okay. It is like it depends on orders book. But still, if it is big, we are targeting SMC only in box. We should close down around 120-150. Our meter cubical CT/PT capacity should be almost 200. And rest of the FRF will be ours too, almost. It will serve in different industries. Like railway, army, and our Pultrusion belts and all, we will serve in all of them. And we are developing many new products from SMC. You will get an announcement later that the industry and the products we are working on you will get an update. Hrishit Jhaveri: Okay. Sir, next question. I understand the industry we work on a monthly order booking system. Every month we will increase the order book. But to achieve the Rs. 450 crores, do we have

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enough working capital or we have to add some to cater to the large order book and the growing order?

Neel Shah: No. Right now, we have that working capital because the IPO is over. We have that and this year's profit will also be added. It will be easy to serve for us. We can easily achieve next year's numbers. Hrishit Jhaveri: Okay. And then to achieve that massive 450 crore mark, what is the most bullish segment you think out of the three? Where will we see the most growth in terms of percentage? Neel Shah: Basically, we will see growth in two places. We have an SMC industry and mainly CT/PT in LTCT. FRP will continue to run regularly because we get regular orders and we serve them. So, mainly we focus on two SMC boxes where a lot of states are opening new ones and our retailing counter is also increasing. Earlier, our focus was less in the retail segment. Now, we are focusing on that in a proper way. We are also enhancing our team. And the second one is CT/PT LTCT. Right now, we have approved in two states and now we are adding Maharashtra, Gujarat and Punjab. So, that plan is out. Right now, we are focusing on the south as well. Hrishit Jhaveri: First question on the seasonality. Is there any seasonality in our business? Neel Shah: I don't understand that. Hrishit Jhaveri: Is there any quarter where there is more revenue? Neel Shah: Basically, we have these two quarters which come in H2. Actually, our order book is also getting ready. Plus, the order we clicked last year we have to finish by March. So, these two quarters perform better. Only because of the rain, there is a slowdown every time. Hrishit Jhaveri: Okay, understood. Thank you and all the best. Moderator: Thank you. The next question is from the line of Nirav Bhanushali from Systematix PMS & AIF. Please go ahead. Nirav Bhanushali: Thank you very much. Congratulations on good set of numbers. So, I was thinking that we are guiding 300 crore revenue and we have already done 214 crores in 9 months. The remaining is close to 80 crores. Next year, we are targeting 450 crores. So, which segment are we expecting to sell 450 crores? Like in SMC, FRP and CT/PT products. So, which will give the highest growth? What will be the proportion in revenue? Neel Shah: Okay, just as I told you, we are talking about the full segment. All our sectors are based on Utilities. We want to close SMC from 120 to 150. Because a lot of new states are opening. So, almost it will be closed down. So, the revenue of CT/PT LTCT we want to add on almost 250 crores.

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Nirav Bhanushali: So, almost 27 crores, right? Neel Shah: Yes, next year. Nirav Bhanushali: Okay. In CT/PT, we are targeting how much? Neel Shah: In CT/PT, we want to close down almost 250 crores. The technical unit in Utilities. And SMC will be around 120 to 150. And in 250, it will depend on a lot of approvals. Rest, 250 is a clear vision. And the other one will be FRP which will be around 70 to 80 around. Nirav Bhanushali: 70 to 80. Margins. I was asking, we had 18% in September, now 16% at EBITDA level. So, broadly, what will be the sustainable margins we are okay to operate? Neel Shah: Basically, I have said earlier that I focus more on PAT. EBITDA will be a little more or less according to working. Because sometimes, working and other expenses are more. So, sometimes, we want to achieve orders book. So, our fix is on PAT. We will talk between 10%12%. Yes, PAT will be according to that. Nirav Bhanushali: At PAT level. Neel Shah: Yes. Nirav Bhanushali: Okay, and just second, I was understanding on order book side. Like now, we have close to 142 crore order book. Now, I am saying, by the end of March, how much will be our exit order book? And what is the order pipeline right now we are having? Neel Shah: Right now, the order of 142 which we had given, that was 1-2 days ago. Right now, January onwards, in our industry, there are tenders in December. January onwards, that allotment starts. So, right now, we have clicked Rs. 55 crore. Nirav Bhanushali: You said that you have got it. And another 40 is what I think today you have got it. Close to this. But for 450 crore revenue, do we have existing? We have 250. So, in pipeline, do we have it? Till next quarter, we will have it? Neel Shah: Yes, that will be till March-April. Because wherever I cleared last tender of Andhra, that was almost 300 plus. So, in that, even if I think 30%, it was 100 crore order. So, how is it? Different order books are already coming out and we are also winning. If you see in our industry, how is it? We are very few major players. So, we get it easily. But there is some or other work for others for sure. Nirav Bhanushali: Okay. And in the payment cycle, how is it? Are you facing any issues on this front, state-wise? Neel Shah: Right now, we are not ever facing the issues. Because in starting, we had some payment. If I have to penetrate the market, there are two positions. If I reduce the rate or give more payment

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terms, so I felt better to give more payment terms. Because once the rate is reduced, you will not get increment in the market.

Nirav Bhanushali: Right. Neel Shah: You will get payment on time. But you can increase it. If you see our last quarter, we achieved almost 45 days in payment terms. So, our target was 60 days. Nirav Bhanushali: So, in sustainable working capital cycle, can I hold 60-70 days going forward? Neel Shah: We want to go to maximum 60 days. Not more than that. Earlier, we were achieving 80 days in the first H1. We increased that too. And now we are at 40. So, 45 days is better for us right now. Nirav Bhanushali: Okay. Thank you very much, sir. And congrats on good set of numbers. Neel Shah: Thank you. Moderator: Thank you. Next question is from the line of Siddhart from Darsh Capital. Please go ahead. Siddhart: Good afternoon, sir. Congratulations on good set of numbers. Sir, I have two questions. One is about SMC and FRP which you gave in your segmental. In that, although you are saying that we have seen growth in multiple places, but that growth hasn't really materialized in two numbers. For example, if we talk about FY’25, if we take only SMC, you had also done compound sales of around Rs. 15 crores, which is a part of your segmental share of SMC. If we take that, it was Rs. 68 crores of SMC per annum revenue. That in 9 months is close to Rs. 48 crores. So, it is flat. We did Rs. 30 crores on FRP side as well. And that is also close to Rs. 12.5 crores in 9 months. So, you have explained the levers. But what gives you the confidence that if we do only 60 crores of SMC this year, we will do Rs. 120 crores next year. And if we touch Rs. 20 crores of FRP, that will be 4x, Rs. 70 crores-Rs. 80 crores. So, what do you see in the order pipeline? What do you see at the industry level? Could you please throw some light on this? And why was your slowdown this year in both the segments? Or in the flagship performance?

Neel Shah: Okay. This year, basically, the first 6 months of H1, the rain was quite long. Almost till Diwali, if you think about it, there was rain all over the place. So, we had orders. But we were not able to deliver. So, after that, if you see, we started performing quite fast in the last 3 months. And we will grow up regularly. Pickups, as much as we can, because we planned out the machineries which will come to us right now. According to that, our IPO has been planned out. So, that will be added on. So, because of that, we will almost plan out that next year, whatever numbers I am saying, it will be easily achieved. Because last year, we had sold a compound. So, how was it in that? I am selling raw metals. So, there is nothing like that. I had added that. But this time, we are making the metals and selling them. So, almost, whatever metals I will make and sell, there will be more profit. And our numbers will also increase. And now, what I am telling you, how I can see ahead, I had just said that I am giving just one example. That in Andhra, the tenders and all that we have achieved, which we will get, they will be planned out accordingly. Each state

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will be open and as soon as 3 years are over, in 14 years, the government will trust you and give you bigger and longer orders. So, because of that, we are focusing. Because if you see our first year, it was just 7 crores. In the second year, we did it for Rs. 28 crores. Then we did it for Rs. 60 crores. At that time, we did not have CT/PT LTCT also. So, after that, all the products used in the utility have been added on. This increases our confidence. Plus, if we want in FRP, earlier we were just doing grating units. Now we are doing Pultrusion. In this, cable trays and all those segments are added on. So, that is also added in our segment. Because of which it will be very fast. Already we have delivered 2 machines. Right now, those 3 machines are also in planning which will come to us in the beginning of February or March. After that, we have taken a lot of back-to-back approvals. So, we are seeing continuity orders. And our export is also starting well. So, we are focusing on that too. So, we will be able to achieve.

Siddhart:

Understood. So, another follow-up question on segmental pay. In our CT/PT site, bus duct revenue is also included, if I am not wrong. And the recent order of Rs. 40 crores is also on the bus duct side. Historically, we do not get good margins on bus duct compared to what we get in the CT/PT side also. So, even now, the next year target of Rs. 200 crores-Rs. 250 crores in this, how much will be the bus duct contribution and what will be the margin there on the bus duct side? And what will be the margin of CT/PT and LTCTs? And how much bifurcation will be there in terms of revenue?

Neel Shah:

Okay, right. Thank you. Basically, we took the first trial order In the beginning, how this thing is made, so first of all, in the order we took, we did not count that much. We did the first trial. After that, they gave a big order. Plus due to the copper fluctuation, which we had to condition terms, there was a little issue. Because of that, our margins were less. But this time, we are planning according to our standard margins. And we will work with the same standard. Even now, we are performing much better in CT/PT. Because of that, already our margins, which are required, 10%-12%, we achieve them. So, we will focus on that only. That we work on the same standard. And our purchasing power has increased now. So, if we perform better, then automatically we will achieve that margin. Which we did not get in the starting. That is the reason why we had to take the material and the payment cycle used to come accordingly. Now we already have purchasing power due to our working capital. So, we will achieve that.

Siddhart:

Understood. Sir, just one last question. The total of 153 crores that we have given in CT/PT segmental, how much will be the bus debt and how much will be the rest?

Neel Shah:

Our bus debt will be above 100. And the rest will be CT/PT, LTCT and all that around 110. Because when we clicked the big order, the segment and the place were also according to that. That is why we have already enhanced the place. So, that factory is now in a double position. Because if you have taken that order, then you have to serve. You don't have to see what I have achieved. If I have committed the numbers, then I would like to deliver them. So, it was the same. Our manpower was working more on that. So, we have served that. And in the future we will be able to solve it well. Now our target is more on meter cubical. Because in that we have got clearance and the order book is also much better. In the next 3 or 4 months, in almost 3 or 4

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months, we have to supply 10 crore meters. According to our capacity. If I will enhance this also, then we will be able to click more orders.

Siddhart:

Sir, this improvement in margin is primarily because of the approvals that we have got. On SMC side also 18%-19% and 25% is the margin. In the last 9 months, last year it was 18%-19%. On FRP side also 11%-12% is the margin.

Neel Shah:

We have already merged our cost auditing system. So, with that we are able to perform better. And when you deal in bulk and work in bulk, then there is a lot of clearance and in that also we are able to perform better. And we have started cost auditing with that we have got much better performance.

Siddhart:

So, this level of margins can we say is what we can expect next year also?

Neel Shah:

This is not a one-time jump this is a structural change in the jumping margins. Right now, we want to maintain it properly. After that, where we can save that also is still pending. Right now, only cost auditing is going on. After that, where we can save How? Even in our metals, our R&D is going on a regular basis. That the product should meet the standards and the cost should also be the same. So, according to that, we are working on the standards. Because I also believe that wherever there is growth, competition increases. So, work with that standard, beat the competition, plus our margins should also be better. And saving is our main thing, our profitability. Our focus will be on that also.

Siddhart:

Done. Thank you so much sir and all the best for the future. That will be all from my end.

Neel Shah:

Thank you.

Moderator:

Next question is from Jignesh from Jiva Capital. Please go ahead.

Jignesh:

Sir, you just said that we have got approvals from big Utilities. So, now we can start approaching them for newer products also. So, this is all tender based also. Those who stay in L1 will get the orders?

Neel Shah:

It depends. Even if they stay in L1, how are they standardizing? We plan out that we are not giving orders to any one vendor. Because the government has already faced that. If we give it to one and in any system the work condition is not being served, then the whole government gets upset. So, how do they maintain that they give orders to a party up to 60% so that they will give to two parties. So, meanwhile they can serve. So, according to that standard is maintained. And in L1 the government has also got strict that not only L1 but you have to match the material standard also. So, that only regular and branded players will be able to manage. In the cater market, if anyone comes and increases the tender, that will not happen.

Jignesh:

Sir, how much does the government, in the total business?

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Neel Shah:

Right now we have almost 60% government-based business. Because for the last 30 years my grandfather and others were in this business. So, that is a good catch with which the payment is safe.

Jignesh:

Now we are focusing 10% on export. And other Utilities and other normal customers will be our focus. Okay. As you talked about bus duct, that was the first year due to raw material and copper, there was a margin impact. Now we will go to our new products after R&D so initially to take a little business will we have to increase the margin?

Neel Shah:

Basically, product to product will differ. In that I will tell you many times the product is such that niche people make it. There is such a requirement in the market but to make it like our meter cubical so in that if we look at the standard company which achieves all the approvals plus lab setup so according to a brand we are the people I mean we have 3-4 more people so in that we do not need to reduce margins which are according to the standards of the market so in that we will work with better performance and better margins. So, this does not happen in every product wherever there is a volumetric product in which we have to cater so in that we have to reduce it many times but in the product which we are focusing on we need to increase the production capacity otherwise we will not have to reduce the margin we will get a good margin in that.

Jignesh: You have shown the growth of Rs. 25 crores in CAPEX, so if after leaving the whole CAPEX even though we will not be able to complete it in ‘27 but in ‘28 or ‘29 what will be the maximum? How much can we reach?

Neel Shah: If I talk about CAPEX, am doing CAPEX with the standard that I can easily go from 800 to 1000 the rest of the product range has been developed where we are doing lab so that we can make standardized material, so from that we will target the upper number next-to-next year to go in the multi fold according to which we have made progress to go in the double fold and from that I will try to go in the double fold.

Jignesh: Sir there are many commodities which are increasing in price, so are the margins protected or do we have to take one-off hit? How is the structure?

Neel Shah: I have learnt from last year, so now we are dealing according to what the government does, if there is a proper rate so you are finalizing with me so today's rate will be decided when you take it delivered the fluctuation will impact back-to-back, so it will not affect our margins that's it.

Jignesh: You said earlier that you are focusing more on PAT 10%-12% but if we see the cash flow so our negative operating cash flow has come in the last 4 years because our inventory and debtors are also very high so can this be an improvement?

Neel Shah: Already there is an improvement if you see our cash flow is getting better and slowly increasing there is no year in which we have not done CAPEX because we wanted growth we wanted fast growth if you see our impactful growth it is very fast, we have never stopped at any position that's why instead of maintaining the cash flow, I was focusing more on business development

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now we are focusing on that also we are understanding this that if there is any starting business then the cash flow will be negative but that improvement you will see very soon.

Neel Shah:

Hello, sir I am Dipal Pate. Actually we have focused now on a stock clearance on a fast movement as already Mr. Neel Bhai said that we have got so much of orders and we are our delivery and all we have improved so much as we have a good infrastructure. We can have that flexibility of delivery of the goods on a very good rate on a daily basis and another thing for clearance of debtors, we have very worked hard on this part and now we have control over debtors to the 45 days to 60 days and for the LTCT and LTCT part where the copper is the main product where the price fluctuation is there, we have tried to convert our debtors in some part to some extent on a advance basis also. So, we are working on that part to improve our cash flows.

Jignesh:

Correct, so that advances are we able to get 20%-30% advances?

Neel Shah: Neel Shah: Jignesh: Neel Shah:

Depends on the party, depends on the order size what we are getting. We have that range of 20% to 50% before delivery.

We take 100% advance before delivery. We take 100% advance, yes.

So, sir, if you take it then the debtors should show very high?

Now onwards since last quarter we have started on that part and now we are controlling to give the credit period, more credit period to the small parties and for still on a higher side we are giving some sort of credit period but at least we have that we are generating facility for them to create a advance to 20% to the 50%.

Sir, clarification needed, if 60% government work is there, we will get delayed, right?

Jignesh: Sir, clarification needed, if 60% government work is there, we will get delayed, right? Neel Shah: They have fixed payment cycles. They give advance around 10%. Jignesh: Thank you. Wish you all the best. Moderator: Thank you. next question Jayesh from HDFC Securities. Please go ahead. Jayesh: My first question is for next 3 to 5 years for your product and portfolio which key demand drivers can be there for next 4 to 5 years?

Neel Shah:

Basically 4 to 5 years in SMC, SMC boxes manual covers we are going to serve in automobiles that will start and army sections there are many products and plus railway, now in Vande Bharat total is there, so in that FRP, government just announcement all metro projects focus in FRP, so we are looking into that. So, the segment plus we are trying to achieve and then LTCT, what our electrical product, from there we will go ahead BCB panel plan out for next year after that we will plan out. So, as you can see standard utility product in one range segment and other Utilities will be available in our product range as a composite market.

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Jayesh:

Okay, so these are your key demand drivers?

Neel Shah: Yes, basically already our boxes are going in every sections we are developing separately in new segments if you see already in using new tabs are coming so our focus is to work on that and achieve.

Jayesh: Okay. I have another question, how dependent is the business on power distribution and government CAPEX, how much dependent is it? Neel Shah: Typically, the power dependent, power depend on government, so focus will be on that but regular phase requirement is there so there is no problem because last 30 years I am third generation, so it will keep increasing today in industry without power. So, this business will increase regularly and when India is increasing so these things will also increase, so trust in India, trust in Indo Jayesh: What is the typical order size and execution cycle of that? Neel Shah: Normally 7 months to 12 months serving time and orders from December to March from April onwards serving starts. If it rains SMC boxes will have slowdown after that after Diwali always there is better performance, year-to-year whenever you measure and from March onwards when we have to complete orders you will see this. In March also our focus is more so it depends how we will perform this time.

Jayesh: So, all your products are those largely standardized or customized as per the client requirement or how do you design? Neel Shah: Just pardon? Jayesh: So, I am saying all your products are those largely standardized or customized as per the client requirement?

Neel Shah:

Yes, basically client standard is if we talk about boxes, standard is JB, junction box. Rest all we make as per the client requirement and we plan out and design rest is FRP products. FRP grating is a standard size after that cut down as per orders required and cable tray and all that we make it and rest CT/PT, LTCT is a IS standard, and as per that it depends everywhere.

Jayesh:

And sir, if we talk about scalability so how scalable are your SMC and FRP production lines?

Neel Shah:

Actually, scalability as a meter box we have machineries already, so we are planning dyes and all that and if you look at scalability as per the standards market is increasing almost 3 or 4 times and in that also standardized metal is being replaced, major is smart metering project. If you look at phone tower and all that, that is FRP or SMC, reason of frequency is easy to work with SMC and FRP. So, scalability is enough metal is being replaced and if you look at drone system

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or any metal army equipment, all that is frequency based. So, we are replacing metal back-toback.

Jayesh: Okay, so as far as metal is connected so scalability is there, correct? Neel Shah: Scalability is enough, because if you look at India market so now composite market is increasing and so because of that scalability is good. Jayesh: Okay and sir what is the current installed capacity across all 4 manufacturing plants? How much capacity now? Neel Shah: Every place has different dye to dye, but if we make raw metals so we can go up to 500 to 600 tons which will be done by automation which is done by SMC. In FRP our standard is 20 tons so there will be a different standard. We have 10 machines of grating and now we have 3 more machines and most of the fabrication and technical work is done by CT/PT so we can add manpower and standardize it. Jayesh: Okay and sir if we talk about percentage, what is the percentage of production is it automated or manual so? Neel Shah: Normally in boxes fabrication work is manual work in that also we are doing automation little by little, but total automation is not possible because client-to-client differs, plus we have pultrusion and grating, in that we are doing cut down and all those processes with manpower, rest is done by automation rest all the products depends on manpower mostly.

Jayesh: Sir do you see sustainable order inflow momentum in the upcoming financial year that is FY’26 FY’27? Neel Shah: What in that? Jayesh: Sir sustainable order inflow momentum? Neel Shah: Right now, we have almost achieved, target is 250, till march end we will get more orders till now if you see we have 140 plus, last night we have new orders. So, regularly till March end order book will be built up. So, according to our plan, we have many tenders. So, we will achieve whatever target we are guiding for.

Jayesh: And are there any patented or proprietary product designs which are there? Neel Shah: Please repeat the question. I could not understand it. Jayesh: Sir this was the question are there any patented or proprietary product designs, sir?

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Neel Shah:

Basically right now product design is not there, as per IS standards, how we do tender-to-tender if you are serving government or public government has a standard that inner margin is fixed according to that in that standard you can do whatever you want so many times we do it for easy to serve and because of that we are moving ahead because we are thinking about public.

Jayesh:

Sir, one more question, what is the management team experience in composites and electrical products?

Neel Shah:

Yessir, last our Sales Head President of our Company Ranjit Mishra he used to be Head Northern Belt in Syntax for last 30 years, he gives better experience in performance and his team works in this standard. So, almost last 30-40 years’ experience in this industry, so that's why we focused on team build up in starting phase. So, the benefit we are getting that we are moving ahead there is a big reason our team is also there in which we have confidence and they know where to tap and where to give work, so it is easy to serve.

Jayesh:

Sir one last question sir, seeing the future, what are the biggest operational risks that you foresee and sir any mitigation plans?

Neel Shah:

Right now if I see I don't see competition, for a standard team for 4 years it will take time and normally the product range if we talk about, product requirement is what we need if you think we have to replace metal, if we have to work on frequency, if we have to work on AI, we have to replace, then also we see more growth and if product is in international standard it will affect everyone but still growth is clear and we will get better performance

Jayesh:

So, can you say these are mitigation plans?

Neel Shah:

Just sir how?

Jayesh:

No sir, can you say mitigation plans, right sir?

Neel Shah:

Yes.

Jayesh:

Yes, sir thank you.

Moderator:

Thank you. So, the next question is from Ronak Bansal from Nova Orbit. Please go ahead.

Ronak Bansal:

Yes, congratulations sir on a great set of numbers. Thank you most of my questions are answered, I have one small question, our current order book is around Rs. 150 crore in that SMC, FRP, CT/PT can you give a bifurcation?

Neel Shah:

Right now, in order book?

Ronak Bansal:

Yes, order book, SMC, FRP, CTPT orders can you give a bifurcation?

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Neel Shah: Right now, SMC almost around 50, order, rest FRP around 30, rest CT/PT LTCT. Ronak Bansal: Sir last time you said on railway side we are trying for approvals like in washrooms we are using SMC right basically. Any update on that? Neel Shah: We have given design approvals, our main approval and registration should come in this month and remaining if designing approval comes by March end we will be able to start production because after that dyes and all will be made because we have already submitted designs then we will see when approvals will come after that dyes and all will be planned which will take almost 3 months after that supply will start. Ronak Bansal: Ok sir so if we get approval by March end so till FY’27 end we can start supply right? Neel Shah: So, first September onwards our first supply should be there, target wise our first supply should be there. Ronak Bansal: Ok, sir, thank you for answering my questions. Thank you. Moderator: Thank you. Next question from Nishma from Alpha Group. Please go ahead. Nishma: Hello, thank you for the opportunity and congratulations for the fabulous results. I do have one question, could you shed some more light on your new ventures on the new product line that you are starting and the one that your containers mentioned? Neel Shah: Could you explain about it, please? Ronak Bansal: Okay, sir. The one thing that you mentioned that we are doing containers and for your first approval, Oman has also been delivered and in railways which products are we going to enter what stage are we at already? Neel Shah: Already we had one trial order in which we have already sold the other one, we are doing LTCT now which we are focusing in this month, that will also go in this month, and the rest are going regularly. We were targeting Oman and Africa; next we will target Europe. Right now, the plan out is for that, some supply. Actually, from Dubai a lot of things get spread so we were focusing. Next year our UK plan will be out. Ronak Bansal: What are we exporting, what have we delivered in Oman? I don't have a clarity. Neel Shah: Basically, FRP products, cable trays, grating, pultrusion products, like that. Ronak Bansal: Okay, thank you. Moderator: Thank you. Next question is from Surya from Phillip Capital PCG.

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Surya: Hi, sir. Thank you for the opportunity. First of all, we wanted to know your target what the segment will be in FY’27?

Basically, I had clarify for you, order-to-order that segment wise SMC target will be around 120, in that box plus the rest of the products which we are developing which will announce that. Plus 250 CTBT and LTCT in that meter cubical and the rest of the products and the rest of the 80 FRP which will come from pultrusion and grating, can you explain about FRP?

Neel Shah: Basically, I had clarify for you, order-to-order that segment wise SMC target will be around 120, in that box plus the rest of the products which we are developing which will announce that. Plus 250 CTBT and LTCT in that meter cubical and the rest of the products and the rest of the 80 FRP which will come from pultrusion and grating, can you explain about FRP? Surya: Right now, quarterly revenue is around Rs. 5 crores-Rs. 6 crores so how will it go up to Rs. 80 crores?

Neel Shah: Yes, it will go up to Rs. 80 crores, the reason is because we are adding machines. So, actually, last year also we had a plan out, but it took some time to increase the number of machines because we had to increase it gradually this year. We started pultrusion after Diwali. So, we have added 1-2 machines and almost 10 machines plan is with us, because we have the order book. So, after Diwali we have a good peak, that we can do 5 crores work every month, so we are enhancing the capacity so that it will go up to 5 to 7. So, that machine will still be added till February-March so almost 7-8 crores monthly target will be there.

Surya: Understood, sir. Just one last question, sir. Which are the major cost items and do we hedge for raw material? Neel Shah: What do we do for raw material? Surya: Heding to avoid price escalation?

Neel Shah: Basically, the copper has more fluctuation other materials don't have that much fluctuation, so we have to hedge but mostly whatever we deal with the purchaser we have a long-term deal almost 3 months or 6 months according to which our order book is clear so we do a standardization. So, that is why in our purchase and profitability the benefit is of that only.

Surya: But now copper has spiked up, so in case of price escalation we have to pass on that happens?

Neel Shah:

Yes, that happens. When the standardization is big that happens now. We are taking the order according to the standard which goes on the whole as the government gives the order so according to that we plan out that according to this standard we have taken the order this was the rate of copper when it will be delivered so whatever fluctuates we will pass it on back-toback.

Surya:

Understood sir. Thank you.

Moderator:

Thank you. Next question is from Rakesh Khosla from Dhanishth Technical Investments.

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Rakesh Khosla: Good afternoon. Sir, you have asked a lot of questions which I had in my mind. There are two more questions, if we want to visit the factory how can we do that? just I will mention those who are heading the factory you can come to Ahmedabad or Nashik you can come anywhere we have 3 units, you can come anywhere. Just inform our team, they will plan out and will let you visit. Rakesh Khosla: Can you share the contact details? Neel Shah: I will pass it on to you. You can also take number online from our website, their number is available online. 75750 88803. Rakesh Khosla: Thank you, sir. Sir do we make our products in the main company or do we have a subsidiary from which we get it made? Neel Shah: No, our company makes it. Rakesh Khosla: Okay, that is all. Wonderful job. Great numbers, thank you. Have a lovely day. Neel Shah: Thank you. Rakesh Khosla: Thank you. Next question sir, I wanted to know on finance numbers. I wanted to know in FY’26 and FY’27 because after IPO there is a dilution, how much ROE or ROCE will we be able to reach? Neel Shah: I am Dipal Patel. I will give you the brief as we already have that finance in our hand correct, so we have that purchasing power and we have separate our payment terms from the vendors sorry customers and we are as Mr. Neel said we have that capacity to root the funds very fast and we will achieve the numbers. We can have that hope that we can maximum satisfy the ROE and ROCE. So, based on that we can achieve the highest maximum profit with a good EBITDA margin and based on that we can satisfy the investors with a good ROE and ROCE. Rakesh Khosla: So, broadly if I can understand, as per December we had Rs. 36 crores of net worth, correct? And after that we did an IPO of Rs. 92 crores. Neel Shah: Correct. Rakesh Khosla: And this year we are expecting profits of around Rs. 30 crores. So, broadly we can reach 30 divided by around 150 crores, so 20% ROE. Can this be possible? Neel Shah: Yes, we are expecting good ROE for investors but in the market unexpected things are there that will create a problem, but we are committing our investors on a good ROE and ROCE. And our efforts are on a positive side only because what I can say is we are building a good team as Mr. Neel said we are building a good team with a good vision.

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Rakesh Khosla:

That is understood but this was a very big dilution, so there is a to recover the ROE it takes a lot of time. So, I just wanted to understand if you have any financial for that? So, I have one other question like if you have a 3-year-old company so in your past you were in Kemrock in Composites and Syntax, so these companies because of some lot of issues I think they left the market or had to close.

Neel Shah:

Sir, for that I give you some brief about the vision of our promoters.

Neel Shah:

Dipal Bhai, basically in the market effectively when Syntax or Kemrock went so we think that mostly their focus when they were introduced in India then the product range was so volatile, sometimes you come earlier and don't understand your market, so that is a defect and mostly if we talk about Syntax, Syntax growth was better performance was better when the whole management changed, when the 2nd generation came so they couldn't maintain, so that was the effect because we have worked with Syntax a lot because last 30 years we are in this industry, so Syntax was the one who introduced this product range which is in Utilities. So, the reason of focus change was there when the new generation came market is still better market is there and after that a lot of new people came today, our team mainly from Syntax who were good people so we made our team from them and the way you feel fast in this growth so that is the reason that we are performing better because everyone has the experience in this industry. That is why we are going ahead very fast and already market is there that when Syntax came out or came out market was not, market requirement was already there. But at that time a lot of small players came who couldn't serve in a systematic way what we are doing, we are creating a legacy which we are serving in a good way as a brand even today. As a brand if you go anywhere, it is a standardized brand development you buy this product you will get a long-lasting benefit, we are providing all that, so that is our focus and the old companies may have stopped due to mismanagement, but the market is there already.

Rakesh Khosla:

I just wanted to say since you are doing a good job in your sector because you said you are entering many other sectors so I think you should enter slowly because there is a lot of business in your sector otherwise new risks can come from somewhere.

Neel Shah:

No, basically what we are serving is not in a different industry, we are just serving utility. So, in this product by developing the dye and if in railway or automobile industry like bus or vehicles if I can serve in that only in only dye development then it is a better opportunity for everyone. If you see as a composite industry, so as a composite industry we are not just a utility industry so my focus is whatever I can make and serve in composite I will perform it better.

Rakesh Khosla:

Thank you very much for all the clarification.

Neel Shah:

Thank you, sir.

Moderator:

Thank you. As there are no further questions from the participants, I would like to hand the conference over to the management for closing comments.

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Neel Shah:

Thank you, everyone for your patience I think I have already given clarity to everyone regarding the industry, and I would like to say one thing, in the matter of growth, Trust Indo we will perform better and we are moving forward in this industry. Thank you, everyone to talk to us.

Moderator:

Thank you, sir. On behalf of EquiBridgeX Advisors Private Limited we thank you all for participating in this call. You can all disconnect your lines. Thank you.

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