Frontier Springs Limited ($522195)

Ladies and gentlemen, good day, and welcome to the Frontier Springs Limited Q4 and FY '26 Earnings Conference Call hosted by TIL Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Mehra from TIL Advisors. Thank you, and over to you.

Good afternoon, and welcome, everyone. Thanks for joining this Q4 and FY '26 earnings conference call of Frontier Springs Limited. The investor updates have already been uploaded on the stock exchanges and on the company's website. In case you do not have a copy of the same, please feel free to reach out to us. To take us through the discussion, we have with us today, Mr. Kapil Bhatia, Managing Director; Mr. Neeraj Bhatia, Whole-Time Director and Chief Financial Officer; and Mr. Dhruv Basin, Company Secretary and Compliance Officer. We'll be starting the call with a brief overview of the business and the financial performance, which will be followed by the Q&A session. I'd like to remind you all that everything said on this call reflecting any outlook for the future, which can be construed as a forward-looking statement must be viewed in conjunction with the risk and uncertainties that the company faces. These risks and uncertainties have been mentioned in our annual report. With that said, I'd now like to hand over the call to Mr. Bhatia. Over to you, sir.

Good afternoon, everyone, and thank you for joining us today for Frontier Springs Limited earnings call for the fourth quarter and full year ended 31st March '26. I'm Kapil Bhatia, MD, and I would like to extend a warm welcome to each of you. Before I begin, I do appreciate the interest and the time you have set aside this morning. These calls matter to us, and we look forward to this conversation. Let me start with a few thoughts on the broader environment in which we operate. Indian Railways remains our primary customer. And if there is one thing that defined the operating landscape this year, it is the sheer momentum behind railway investment in this country. The union budget for '26 allocated INR 2.65 lakh crore as a capital outlay to Indian Railways. What this means to us is a straight format. We are a direct beneficiary of these railway expansions. Springs, coil springs, air springs, forging component sit at the heart of every coach wagon and locomotives. As Indian Railway scale, so does the addressable opportunity for Frontier Springs. On the raw material side, I must candidate steel prices remained elevated through the second part of the year, and that did create cost pressure. We responded by negotiating more favorable terms with our vendors, and by focusing our execution on high-value tenders, we were able to largely offset the margin headwind this way. Though if steel prices remain firm in financial year '27, there may be some moderation in margins in the near term. We are watching this closely, and we will manage it actively. Turning to what we achieved. Operationally, during the year financial year 2016 was January a milestone year for the Frontier Springs. On our Spring business, which has been our main stay for over 3 decades, we saw steady demand across freight stock, coaching stock and locomotive applications. Our springs continue to be fitted on the Vande Bharat, the fastest train in India, and that is distinct we are proud of. The forging division, which we built from the ground up, starting in 2011 made meaningful progress this year. We installed another stage of art 6 tonne hammer to significantly enhance our forging capabilities. This opens up a broader range of components and heavier forgings that we were previously not positioned to address importantly. We have begun receiving orders for the components to be manufactured on this new hammer and the few forging components have been approved for Vande Bharat trains also. Scaling the forging vertical is one of our clear priorities in financial year '27. On the Air Spring segment, this has been a business we have been patiently building since 2022. Through our memorandum of understanding with Contitech Germany for LSB coaches, we successfully ramped up production in financial year '25 and financial year '26, saw this business contributing more meaningfully to our revenue. The failure indication and brake application system properly known as FIBA remains on track, and this is capability -- this capability that we believe will strengthen our positioning in this segment further. We also extend our capacities in both the coil springs and air spring segment during the year to meet rising demand, and these investments are beginning to show in our numbers. We enter financial year with an order book of over around INR 300 crores, which gives us good revenue visibility over guidance for financial year '26 as it crossed INR 500 crores in gross revenues to step up over 30% from what we delivered in financial year '26. Let me know -- let me now turn to the financial performance, and I am pleased to say that financial year '26 was a year of strong delivery across every key metric. Revenue from operations for the full year came in at INR 322.06 crores, up by 39.22% from INR 231.34 crores in financial year '25. We had set ourselves a gross sales target of approximately INR 375 crores for financial '26, and I'm glad to report that we have surpassed that. This growth was broad-based across our business verticals. On profitability, EBITDA for the full year stood at INR 86.31 crores, a growth of 73.80% over financial year '25. What is particularly gratifying is the margin expansion. Our EBITDA margin improved to 26.80% in financial year '26 from 21.47% in financial year '25, a significant improvement of 533 basis points. Profit after tax for the full year came in at INR 61.31 crores, up by 76.88% from INR 34.66 crores in financial year '25. Earnings per share for the year stood at INR 51.07 compared to INR 29.93 in the prior year. On the quarterly performance, quarter 4 financial year '26 was our strongest quarter this year. Revenue from operations stood at INR 82.54 crores, a growth of 17.7% over quarter year '25 and marginally ahead of quarter 3 financial year '26. EBITDA for the quarter was INR 23.54 crores at a margin of 28.51%, improving 362 basis points, and 462 basis points year-on-year. Profit after tax for quarter 4 came in at INR 16.59 crores, up by 42.22% year-on-year. In closing, financial year '26 was a year where Frontier Springs demonstrated that it can grow revenues at the scale, expand margins and simultaneously invest in future capacity all at the same time. The Indian Railways growth story is real. It is well funded, and it is multiyear in nature. We are positioned to ride this tailwind as a trusted, certified manufacturer with 40-plus years of expertise, a diversified product portfolio and a balance sheet that gives us flexibility to invest. I look forward to your questions. With that, I will hand back to the moderator to open the floor. Thank you so much.

[Operator Instructions] We'll take a first question from the line of Sukrit D Patil from eyeSight Fintrade.

I have 2 questions. My first question to Mr. Bhatia is, Mr. Kapil Bhatia, to be specific. Looking ahead to '26, '27, I just want to understand the forward-looking guidance on what type of strategic pathways are you planning to position the company as a global leader in the railway springs and suspension systems, accelerate diversification into defense and heavy industry engineering components and future proof against demand cycles and regulatory transaction? That's my first question. I'll ask my second question afterwards.

No. Yes, as I've already mentioned that we have a good order book and what -- we are promising that we'll try to achieve another 13% this year. And as far as product wise is concerned, we are having orders for forging as well as for air spring and coil spring. And there are a lot of other tenders are going on where we are going to get good orders, wagon manufacturing, they are also -- railways also promised a big tender for the wagon industry. So where we are the supplier for forging as well as this. So we are in a really comfortable position to achieve what we are promising you that around 30% growth this year also. And with the reasonable margin, profit margin, what we have achieved last year, so that's it.

My second question to Mr. Neeraj over the next 1 year, what type of forward-looking capital frameworks are you designing to ensure the company can simultaneously fund R&D advanced spring technologies, maintain dividend discipline and build buffer against ForEx swings and raw material volatility in the long-term rail contracts.

I'm answering as the MD. We are really working hard to get the things in our favor as far as where the raw material prices are increased at the moment around the war and LPG and CNG prices have increased, but we are able to -- we are able to negotiate well with the steel supplier as well as with the LPG supplier. We have energy, this thing using furnace oil as well as LPG as well as PNG, so whatever is cheaper available, we are negotiating them, and we are using that to get the proper margin. As far as R&D technology is concerned, we keep on expanding our capacities with the latest technology around the world, and trying to get more automated things where the manpower is less required and buying machines from all over the world also and from domestic manufacturers also. So at the moment, we are also negotiating our another line of coil spring and more automated line manufacturer from China. So we are comfortable, and we have not taken any term loans since last so many years, and we are able to claw back money from the profit. And last year, we have done around INR 20 crore CapEx. And this year, again, we are planning to have around INR 20 crores, INR 20 crores, INR 25 crores CapEx for all the 3 divisions to increase capacity and modernizing the things where the less manpower is required and technology is better.

Next question is from the line of Priyanshu Jain from GrowthX Infinity.

Am I audible?

Yes.

Congratulations on good set of results. Last 2 to 3 years has been really phenomenal for us. I have a few questions. One will be on the margin side, sir, as like the commodity prices are rising. In this time, we are able to negotiate with our vendors very well. But like going forward, if the fleet prices remain at this point of time, like what kind of margins like around the 22% to 23% we should expect? Or like 26, 27, we are still able to maintain? If you can comment on that part first.

We are always negotiating with the steel supplier and simultaneously because we are into tender business, so for future tenders, we are also increasing the prices for our supplies to the railways to adhere the difference between the prices of steel and energy and also negotiating with the energy supplier, as I told you, CNG, PNG, furnace oil, whatever is cheaper available. Every month, there are prices coming in, and we are negotiating with them. And simultaneously, we are also increasing the prices of our product to the railways to get the better prices from the railways also in future tenders so that we are able to nullify the effect of increasing the steel and the energy cost. And as far as what was the other part of the question, the margins. The margin, we are trying to maintain between 23%, 24%, definitely this year also if not 26, 28.

Sir, second question will be on the order book side, like for this year, like we are very well positioned to achieve the INR 500 crores revenue. But for the next 2 years, if you talk about FY '28 and '29, can you comment right now or anything on that part?

At the moment, no. But definitely, there will be increase because as far as Indian Railways are concerned and their demand is concerned, and the population in the country, which is a more suitable mode of transportation to a maximum number of people in the country. And still, there is a shortage of coaches and train as everybody sees during the festival or maybe anything or summer vacation, you don't get reservations. So there is always a shortage. So I don't see another 5, 10 years that there will be any scarcity of orders as far as passenger coaches are concerned, locomotives are concerned. Freight is the cheapest mode of transportation in India for iron and steel, fertilizer, food grains, iron ore, coal, which is a major thing which railway transport from the wagon and the dedicated freight corridors are coming up very fast, all over the country. So getting more trains, tracks available for passenger coaches. This is the tight position. As soon as the more dedicated freight corridors will be operational. So we'll get more tracks for the passenger coaches and the passenger rate. So I don't see any order problem for next not 2 years, another 5, 10 years minimum, and maybe continue like that. So there is always a good orders from the railway because we are in a very high population country.

Okay, sir. Sir, just last question on the new product side. We are in trials, some of the trials like can you share a bit on the new products which we are planning for...

The new product, which we have already got the basic approval from, that is FIBA, which is federal analysis on break system in the air spring, which we have already got the patented of our design done. And the basic approval is done, and now the trial will start in the trains. And after 6 months, we'll be a regular source and we'll get a good order for the FIBA because every coaches has 2 FIBA equipment put into the coaches, pasenger coaches and our manufacturing every year. So we'll get a good share of business. There are 2, 3 sources at the moment, and we'll be approved in another 6 months of time. Basic approval of our DSO is already done.

So like the FIBA, which we are going to get the approvals in the next 8 months, we can assume the time plan, like the existing one -- do we have any differentiator or like we are like one of the providers of FIBA from like last 3 to 4 like and that we will be included as well?

No, there are manufacture, which was then importing the system. We'll be the, I think second one in India to get the indigenous system made and we'll get priority over the imported one, and we'll be competitive also, so we'll get a good share of business of FIBA.

Okay. So like are there any other players apart from us or we are the only 1 right now?

There are 1 or 2 already there. I'm telling you that the coaches are already running. So Indian Railways at the moment is importing from the or one of the other company, I don't remember the name. So as indigenous we'll be the, I think, second one in India. So there are 2, 3 manufacturers.

Next question is from the line of CA Garvit Goyal from Serene Alpha.

Am I audible?

Yes.

Congrats on good set of numbers. Sir, you mentioned we are able to pass on the commodity hikes, right? But at the same time, we are speaking about some margins. So firstly, I didn't understand why there is a gap even if we are able to pass on the prices, then why we should look for like on the margin, sir.

Sir, we already have orders from the railways, which is around INR 300-plus crores which -- because Railway has a fixed price policy, they don't increase the rate in between the contract. And we keep on quoting tenders for the next 6 to 8 months, up to INR 300 crores, we are quoting tenders daily. From there, we are able to get our rates improved in the future tenders, but the existing tender, there might be a little low this thing, although we are negotiating well with their steel supplier and other things. So overall, if we're able to complete the year, there might be 1% or 2% of margin might go down, but we'll try to maintain what we are achieving at the moment.

No. If you see -- if you are speaking on 1% or 2%, then it must be like somewhere around 25%, 26%, but we have guided for 23%, 24%. So the gap is...

I'm a little conservative, I will try to maintain that because I don't want to comment on the higher side things, but we'll try to maintain the best possible things what we.

Understood. And secondly, from this thing only, when you say will you be able to, like you all know tender business and we know how it works. So we will be able to pass on the commodity price hike. So what is the current competitive landscape in have you seen any increased number of players or the new peer who get approval for this category and has increased some position in the tender process?

In our product or for the steel supplier, what are you asking?

Our products. Our products.

They are no -- the same manufacturer out there, and there are no new manufacturer came in. But definitely, there are more steel manufacturer came in from where we are negotiating the price and able to get the best price from the old supplier from the new and from the new supplier. So we were able to negotiate well from the new supplier because steel manufacturers are more supplier added by railway. So from there, we are able to get the good competitive rates to -- this to things maintain the margins and all. But as far as our product or in cancer, there are no new players at the moment.

Got it. So that's why we will be able to passing the price...

Yes.

Got it. And lastly, on FY '27, like you mentioned, and we are also seeing been some large tender coming in and then a lot of focus on the coach side for the government. But considering all these things that will be a organization which will be close to 500 that kind of revenue next year. On that base, what will be the vision FY '27 onwards? Like what state we will be looking to grow? And what kind of target do we have in mind maybe by FY '30?

Sir, we are -- since last 2, 3 years, we are growing at the rate of 30%. But I know that this is a very, very high rate of growth. But as I already mentioned, India Railway has a lot of demand as far as coaches and wagons are concerned. So if not 30, we'll definitely have a 25% growth for the -- beyond '26, '27 and things will be there. And I don't see any growth of orders for our components because railway which carries load and moves required any kind of strings and forgings and hairpin. So our components are well placed, and we don't see any problem as far as orders are concerned.

Next question is from the line of Ajit Sethi from Eiko Quantum Solutions.

From an on ground perspective, so how is the current demand environment? How are projects progressing on the ground? And are you witnessing any delays in tendering, ordering or execution?

No, I don't -- I have already mentioned that we already have good number of orders in hand and demand is there. And this year again, the planing to [Technical Difficulty]

I'm sorry to interrupt sir. Sounding muffled. Can you just repeat the last part, sir?

I'm just saying that as far as railway is concerned, we are in a good position as far as orders are concerned, and railway is already issued a plan for this year production for the passenger coaches around 6,000 numbers, locomotives around 1,200 to 1,400 locomotives, which is the same as last year. And a big wagon tender is coming up by Railway Board. You must have read in the papers also recently from Titagarh and Jupiter, they have already mentioned. So as far as orders are concerned, and things are concerned and tenders are concerned, and there are no delays in finalizing any tender by Railways. They need the springs and everything. So we are in a very comfortable position.

Sir, possible, can you please share what is our current order base pipeline?

I already told you, it is INR 300 crore plus orders in hand and pipeline, we are quite confident that we'll able to get INR 500 crores gross revenue this year. The tenders are always there because it's not that one tender to take place in a year. Every day, there are tenders from the Railways. So we keep on quoting tenders, and we are quite confident that we'll get the numbers what we have promised.

And sir, what is our current capacity, capacity utilization?

We are already working on approximately 70% of our capacity, and we keep on increasing the bottleneck where the capacity extension is required. So we are working around 70% of our capacities in all the plants.

So going forward, whatever growth we are projecting. So we have -- we will have enough capacity to grow, right?

Yes, yes, yes.

Next question is from the line of Manish from Shipcom Family Office.

Kapil. Good to hear you always are optimistic and a good day, to you, too. Sir, my question is if you can just give me the breakup of the revenue on the 3 divisions, air spraying coil spring and forging. The basic part is not interested in the gross part.

The last year?

Yes, last year FY '26.

It is approximately 10 -- I'm just giving you the gross because I remember that INR 175-odd crores in coil springs. And INR 60-plus crore in forging and INR 150 crores in air springs, I think.

And sir, what is the number of sites, capacity that we are having air springs today?

What is the?

Number of sets that you can manufacture.

At the moment, we have the capacities of making around INR 300 crores per month, and we are doing 200, 180 to 190 per month we are doing.

Okay. So you already have enough capacity for that? So if I see that, sir, I think you have guided that the coil spring, forging division could see a bit of growth in this FY '27 numbers? So is it fair to assume that we're already having orders in forging division and the Western division will run in the same growth path? Or where do you see this -- the balance of maybe that INR 100 crores coming from in FY '27?

We are having order for all the 3 divisions in hand. And we are expecting a good number of orders for the air spring forging and coil spring also because as soon as this wagon tender comes up, it's going to be a huge order from the wagon industry. Coaching orders are already -- tenders are already there. Locomotive tenders are already there by CLW, DLW and other locomotive manufacturers. So -- and actual growth will take place in forging and air springs and wireless springs reasonably growth will be there. And we are just waiting for wagon tended to happen, so that we'll get additional orders for the wagon industry.

Great. Sir, how many kilometers does railway require for the trial thing? How many kilometers do they do with FIBA?

No. They do it for 6 months, actually.

It 6 months or number of kilometers?

So they have something that is around 20,000 kilometer. It takes place 6 months to 5 to 6 months. So we have made it 6 months basically.

Okay. So we might assume that the Q4 might be having some orders from FIBA side also, right?

Yes, definitely, definitely in the later part of year.

We'll take our next question from the line of Ankur Kumar from Alpha Capital.

Am I audible?

Yes.

Yes, sir, my first question is if I look at our revenue reported numbers, it is struck in this INR 80 crores to INR 83 crore range for last 3 quarters. Any reason, sir, and when do you expect to break out of this INR 80 crores to INR 83 crore range?

We are trying hard. There are some bottlenecks, from the Railways some times inspection doesn't take place, the inspector don't come, sometimes a little bit of raw material delays, something like that. And we are trying to break in this first quarter. We are hoping to break in this first quarter. I hope that we'll break that INR 82 crore.

Got it, sir. [Foreign Language] 30% growth guidance so overall full year, may we expect that like it is like second half heavy or first half heavy, how should we look at growth?

[Foreign Language] the fourth quarter will always be the better. The third quarter where actual things take place. If that goes well, so we're able to achieve that what we are promising. So till these 2 quarters, I don't see any problem. And fourth quarter also. And -- but third quarter with tender finalization took place faster, so we're able to get those numbers equally.

And sir, [Foreign Language] INR 370-odd crores. So [Foreign Language], how much is it higher versus last year, sir?

[Foreign Language] first 2.5 quarter, [Foreign Language] I don't see any problem. These INR 370-odd crores is there. So we're able to achieve in this 2.5 -- first 2.5 quarters.

Sir, [Foreign Language] so I hope this continue like this.

I'm trying my best.

Next question is from the line of Pratik Joshi, an individual investor.

Am I audible?

If you can use your handset mode, please, audio is not very clear.

[Foreign Language] we received this order?

[Foreign Language] We keep on getting orders every day because railway rolling stock [Foreign Language]

[Foreign Language]

[Foreign Language] I will do it, sir. I will do it.

Next question is from the line of Harsh Mulchandani from Toro Wealth Manager, LLP.

Congratulations team for this set of numbers. Sir, [Foreign Language] development is there happening on the defense side. In the previous con call, we have focused on the forging side, we will try to get some defense orders, so is there any development happening on that side or we are currently seeing more on the railways with the new product FIBA? How is your thinking happening? Just wanted to get.

[Foreign Language] we are new in defense [Foreign Language] we know how it works [Foreign Language] but we are definitely trying very hard to get into the defense as well as into the other industry, road construction industry like L&T, JCB, Caterpillar, [Foreign Language]. We have now 3 mr 1 tonne, 3 tonne, 6 tonne, and we have a good finishing machining line of CNC machines almost and -- we are to get a new customer other than Railways, we are not just stopping at defense. We are entering into these equipment [Foreign Language], JCB or L&TK, Caterpillar [Foreign Language] We are exploring every -- were except automotive, because automotive has no margin. So we are looking for a good margin forging industries. [Foreign Language]

Got it. That sounds very encouraging. And another question I have is around the bid pipeline. So like you mentioned that you are expecting orders from the tender once it gets awarded -- so following you will get the orders for your products. So any bid pipeline is there. And apart from this tender from wagon, is there any other bigger tender we can expect coming in second half of the year?

Wagon [Foreign Language] so things are in line [Foreign Language] and we'll be comfortable with that.

Got it. Got it. Any number on the bid pipeline, if you can put like...

[Foreign Language] 500 gross [Foreign Language], we're able to achieve that.

Next question is from the line of Siddharth, an Individual Investor.

[Foreign Language]

[Foreign Language] every month, we are doing around INR 30 crores to INR 35 crores of business so receivable, [Foreign Language] But it is all good trade receivable. There is no bad debt at all, single -- there is 0 bad debts in the company. So things are there, and we have executed good orders. So that's why it is showing that trade receivables are there.

Okay. Okay. [Foreign Language]

[Foreign Language] AVUs [Foreign Language]

Next question is from the line of Dipankar Bish from CCBIM.

Am I audible?

Yes.

Yes. So sir, what was the production volume for air springs in H1 and H2 FY '26?

What was this?

What was the production volume for air springs?

The production volume, we have a mastery of 300 at air spring manufacturing capacity at the moment. 300 set means 1 course is required a 4 air spring. So we have a capacity of this thing at the moment, and we are doing around 180 to 200 core per month. So we have 100 core capacity available for future orders.

So 100 to 200 capacity for the whole year, right?

Yes.

Okay. And I believe the company was increasing the capacity from 300 to 350 days per month. But as of FY '26, it is still in the range of 200 to 250. So when can we expect this raise in the capacity?

It is done simultaneously, actually, in few machines where we can do around 400 per month. And in few machines where we can finally test up to 300 core set. So a few machines are required to come up to the 400 core set. So it's like that. And so wherever bottle is there, we just have to increase that. It's not there that all the machines are only for 300. There are machine as for 400 cores. There are machine 350 core set, but what we are telling you the bottleneck, which is 300 for final testing of the spring. So we just see the 2 more testing machines. So like this. So we keep on increasing that if the orders are there, the machines that are easily available in the country. And if we see that orders are coming and so we place order and by the time order comes in, we'll be in the -- in line to execute the order.

And sir, is the 1.25 lakh per air spring utilization still valid?

Yes, yes, yes. It's even a little bit improved also.

So there is no change in that, right?

No, no, no.

And for this FIBA system, I believe you have mentioned that we can expect the 6 months. So what kind of revenue can we expect from this in FY '27?

It is a market of around INR 40 crores to INR 50 crores. So -- this year in the second -- the last quarter this year, we're able to get some modest orders maybe early also, but we're only able to execute when the trial is over. So how much [Foreign Language] from the next '27, '28 from this component.

Last question, this FIBA revenue will be additive to our existing spring revenue, right?

Yes.

Next question is from the line of Devang from SympoRIa LLP.

First of all, congrats on a good FY '26. I had a short question. So in an earlier con call, you had said that further doubling of revenues will take at least 5 years from INR 500 crores to INR 1,000 crores, let's say. But now it seems you have a little more you are seeing better things. So has there been a material change since -- in the last 6 months?

Look, there I have definitely sometimes I must have mentioned this. But we [Foreign Language] on an average, we will do it, if not, [Foreign Language] I must have told this thing, but [Foreign Language] with this component, these 3 components, the forgings, the air spring and coil spring, [Foreign Language] and let's see if we are able to improve on that, there is some extra demand of wagons or locomotives, so we can add also a little bit more.

So [Foreign Language] visibility in the next 4, 5 years [Foreign Language]

[Foreign Language] generous fund government is giving to the railways because railway is the only mode of transport, which is used by the most number of people in the country. So demand is always there for passengers, freight, everything [Foreign Language]

Next question is from the line of Shah from Equirus AMC.

Am I audible?

Please use your handset mode? Volume is little low.

Yes. So I just want to understand, in FIBA, the margins would be similar to other projects or it would be on a higher side?

It will be around the same margin with air spring, the coil spring, it will be around same margin.

Okay. Okay. And another question is on this large wagon tender, which is going to come, so are there any new air spring suppliers or FIBA suppliers, which are doing the trial phases and will get approval from the railway next 1, 2 years?

Sir, as far as my knowledge goes, because we are quite close to our DSO, it is in now Lucknow, the headquarter in -- of India is in Lucknow, RDSO, and we are in Kanpur. So as far as my knowledge is going on, there is no spring manufacturing unit, which he has applied for any new registration. FIBA, because we are doing it, we are new into the things. But I don't think because FIBA is a very difficult component to produce, because you have to have your own design and R&D team, and it requires a patent also because there is an imported component is there. So it's not that easy component that everybody can come in. So I don't think that more people are coming into this product.

Next question is from the line of Rajesh Bhatt, an individual investor.

Sir, you are doing great in Indian Railways. I wanted to check whether we have any plans of exploring markets beyond India, given the reliability of our -- and criticality for components for Indian Railways.

So as far as coild spring, air spring is concerned, we are not doing it because all over the world, we are -- we keep on visiting the fairs of railways and all. There are no -- in Europe as well as in America, there are no expansion going on, and there are manufacturers who are doing it. But yes, there is a lot of opportunity for our forging division in export. So we are exploring forging component for export. But because their company wanted to come into India to supply things to Indian Railways. They have our capacity. And we don't want to go there. There is no business in losing our forte in India. We don't want them to come into India, and we are supplying here. And for forging, definitely, we are exploring market all over the world. And very soon good result may come up also as far as forging of export -- export of forging are concerned.

We'll take a next question from the line of CA Garvit Goyal from Serene Alpha.

Sir, in continuation to the previous participant. I just wanted to understand more to 3 export strategy of this company. Going forward, are also very much quality and providing like motivation to the people to produce some technical products sector that we can be like in the exports, right? So what are our plans in this direction, sir?

I told you that and we are really exploring market for forging division because forging is a very highly men-used industry, and they are closing, they are forging in Europe, America because they find it very difficult now to operate there. So there is a lot of opportunity as far as forgings exports are concerned. And from India, there are a number of companies doing good exports in forging. So we are also exploring not only railways, but other than railways also with a good margin where margin is good because we got a lot of inquiries from the export, but we are only entering or studying where the margins are better. just not for the purpose of export, we just don't want to do it. Margins should be better only then we'll supply those forgings. But yes, there is a demand all over the Europe as well as in America of forging components of different -- whether it is agricultural or railways or other than railways. So there is a demand, and we are exploring that.

Next question is from the line of Sumant, an individual investor.

Am I audible?

Yes.

I have 2 questions. So my first question is, by which financial year, we can expect actual production of 250-plus air spring per month.

It may happen this month also. So it's not a very big thing, yes.

Okay. But we have capacity and we have capability also, right?

Yes, yes, yes.

Okay. Good to know that. Sir, my second question is that maybe I'm not. Is there any export opportunity for coil and air spring in other countries?

We have not tried it because their manufacturer trying to come to India. [Foreign Language] So we are concentrating more in India so that they should not be able to enter into Indian market. And as I've already told forging [Foreign Language]

Next question is from the line of Jay Naik, an individual investor. As there is no response, we'll move on to the next question from the line of Bhatt, an individual investor.

I missed your comment, I mean, if you didn't mention is on instant utilizing on a project.

I'm not able to hear what you said.

Audio is not clear, please use your handset mode.

Sir, the capacity utilization, the 6-tonne hammer project you mentioned in the opening remark.

We have a huge capacity available. We are just able to use, at the moment, only 1 shift capacity, which is 8 hours. So we have a 16-hour capacity available as far as 6-tonne hammer is concerned. And we are really looking for some components from other than the railway industry. And we are really exploring fast. And hopefully, the result has started coming in from the third quarter onwards for further capacity utilization on 6-tonne hammer.

Okay. Okay. Sure. Vande Bharat sleeper trains, there has been some news recently. So I believe 12 sleeper trains are being planned for this year with further scale-up plans next 1 or 2 years. So just wanted to understand it a little better as to how is the suspension that are different in a sleeper train versus a chair car? I mean, is it different than how are we placed to this opportunity?

Sir, there is a -- because it is a sleeper so the load is increased on this thing. So they have a different type of coil spring. Air spring is same. So we have already produced and approved all those springs are as far as the sleeper Vande Bharat and all. So we are approved for that, and we are in line to supply these springs today.

So is it fair to say that a significant contribution to it will come in FY '28? Or this business affairs will also come in FY '27?

So this year, because it is only the 12 trains this year and then they have planned more than 200 trains next year. So whatever it is there, the spring has to go from us only, sir. So I think next '28, '29 will be the more fruitful year for these Vande Bharat sleeper.

Okay. Okay, sir. And sir, there is some news on to circulating that railway is planning to shift from the regular LHP coaches to Amrit Bharat 3.0 rail for long-distance rail. And does this development have any bearing on us or...

Whatever it is there, the coil spring and air spring requirement is there, and we are in line to supply all the springs and air spring whether it is Amrit Bharat or LHB. And Amrit Bharat is also made on LHB suspension. So the name is change only. So there is -- as our component requirement is there. It is already there, and we are approved for that.

Thank you. Ladies and gentlemen, we'll take that as a last question for today. I now hand the conference over to Mr. Kapil Bhatia for closing comments. Over to you.

Thank you all for your time and your thoughtful questions. Your continued interest in Frontier Springs is something we generally value. We look forward to updating you next quarter, and we remain fully committed to the targets we have set for the financial year '27. Thank you all and keep faith. Thank you so much.

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