Goodluck India Limited (530655) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Goodluck India Limited Q3 and 9 Months FY '26 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded. I now hand the conference over to Mr. Vinay Pandit from Kaptify. Thank you, and over to you.

Thank you. On behalf of Kaptify Consulting, Investor Relations team, I welcome you all to the earnings conference call of Goodluck India. Today, on the call from the management team, we have with us Mr. M.C. Garg, Chairman; Mr. Ram Agarwal, CEO; and Mr. Sanjay Bansal, CFO. I would now request the management to brief us about the business performance highlights for the period ended December 2025, their growth and vision for the coming year, post which we will get into the Q&A. I'll now hand over to the management team. Over to you, sir.

Good afternoon, everybody. It's a pleasure to welcome all our investors, analysts, stakeholders to Goodluck Q3 F'26 earnings call. The steel and engineering sector showed signs of strengthening in the later part of the quarter and improved sentiments, rising stability and business activity during December. Of course, the whole of the year has been very volatile due to geopolitical tension, which all of us must have witnessed due to the Trump [ gimmicks, which have been played with ] -- created havoc with the business. We were part of it. However, in the month of December, steel market witnessed a notable recovery, setting a strong foundation for momentum into the new calendar year. Prices across most products have strengthened, led by restocking in anticipation of further price hikes and improved buying sentiment across dealer ecosystem. Imposition of 12% safeguard duty on certain trade products has effectively corrected the price imbalance created by cheaper inflows hence provided robust support to domestic producers. In January 2026 alone, price of hot rolled coil and cold rolled coil improved by almost 4%, reflecting positive impact of the major revival of [ post-function ] demand in construction. In budget of 2026 and '27, budget reaffirm government strong commitment for infrastructure-led growth. Government has kept aside INR 12.2 lakh crores in the diversified growth, real estate corridor, industrial clusters, urban development and water infrastructure, reducing dependence on any [ single ministry's CapEx cycle and ensure steady ] demand utilization of our expanded precision and hydraulic tube capabilities in the coming years. We also welcome nearly 15% increase in defense [indiscernible] to defense allocation, capital outlay for defense forces rising sharply by about 21%. Looking to the situation on our borders and with our neighbors, it is a very positive step, and we must be prepared for any eventuality coming [ haunting ] us [Technical Difficulty].

I'm sorry, sir. You are not audible.

Domestic procurement [indiscernible] by INR 1.3 lakh crores, earmarked for indigenous industries extend the demand runway for supplier of components forging, precision tube, fabricated structure used in artillery/armor system [ another sweet ] platform. These align perfectly with our advanced capabilities of Goodluck defense and aerospace is steadily building, including our ongoing production ramp up for 155 artillery shells and secured export orders. From a global perspective, operating environment remains fixed with geopolitical uncertainties, fluctuating raw material prices, continuing to [ influence straight growth ] and create volatility in global benchmark. However, there are structural positive emerging in India, a healthy-concluded framework of the interim trade agreement with U.S.A. announced in February 2026, reset tariff, improved market access and remove certain duties on key Indian export like aircraft [ cost, placing India ] in the Indian industrial [ origin ] products on a more competitive footing. Likewise, the successful [ completion of ] India-U.S. free trade agreement, opens more predictable tariff regulation pathway for value-added manufacturing export. A modern [indiscernible] has played a dual role by enhancing our export opportunities in global market. We are an export-first company. We are already running export of almost more than INR 1,000 crores in last 3 years. Across our key markets, demand drivers remain intact, led by infrastructure engineering, fast-growing energy transition segments, including solar, [indiscernible], broader urban infrastructure, these together with healthy [indiscernible], recovering market sentiment [indiscernible] in value added and defense segments placed Goodluck [indiscernible] to capture emerging opportunities in both domestic and export. We are trying to ramp up our capabilities [indiscernible], heavy wall thickness pipes for having -- trying to planning, sale from 48,000 metric tonnes annually. We are delighted with response from our customer on quality. Our product has finished hydraulic to galvanize [indiscernible] pipe in front of 2-wheeler will be added to -- we are planning to add these products to our product basket. All the products I mentioned are high value-added item, and with a very substantial EBITDA margins. We are bullish on aerospace and defense and production, which will start in the third quarter. We have 8 months order in hand and 2 years LOI with us. We are confident that this plan, what I have envisaged now will have a bright future for us, and we are bullish on defense and aerospace and all our planning. On behalf of the Board and the management, I thank all our shareholders and customers, employees and partners for their continued trust and confidence in our company. I will hand over now to my CEO, Mr. Ram Agarwal, to brief you further.

Thank you, sir, and good afternoon to everybody on this call. As Mr. Garg has told, our growth led by volume and margin expansion was driven primarily by better product mix, operational efficiencies and higher share of value-added products. Increased depreciation during the period due to the expansion in auto tube business, which we call LDP business and investments in our defense subsidiary reflects our growth-oriented capital expenditure strategy. The commencement of production at Goodluck Defense and Aerospace Limited is a major inflection point. The facility currently has an annual capacity of 150,000 shells, and it is being augmented to 4 lakh shells per annum. We see a strong structural demand driven by the increasing indigenization and defense modernization initiatives in India. Order visibility for the next financial year remains strong, and we expect this segment to meaningfully contribute to the margins going forward. And as we all will agree that energy and defense are the 2 main areas where global attention is today. Infrastructure is the need of today to achieve this energy and defense goal. GOI budget allocation shows our intention to align with the whole of world, our company has perfect alignment with this goal in moving ahead and our defense perspective, it is one of our endeavor to get into this space. And we see a very strong defense market for us for our products. As in the second line of expansion, we are also putting for aerospace to a critical forging parts. So we hope with the current expansion of 150,000 to 4 lakh, along with the defense and aerospace -- along with the aerospace part manufacturing, it will be a game changer for the company. And order visibility, as Mr. Garg has already told, we have booked for next 1 year and LOIs for next 2 years is available to us. The second sector, which we are bullish that is the automobile tube segments continue to perform steadily with easing U.S. tiles and improving export sentiment, we anticipate strong order flows. Our focus remains on expanding OEM relationship, improving realization through value-added products and enhancing operational leverage. Our main aim is to be ahead of the curve. Value addition is our main motive. So whatever product we have started or whatever we want to start, we will be moving ahead with the value addition point of view only. Strong government-led infrastructure investment continues to drive engineering structures and infrastructure segment. Government has given 7 bullet trains. As you all know that we have participated in the first bullet train from Ahmedabad to Mumbai, and we have almost completed the 90% order. The rest will be completed by March. And this new [ opening ] of these 7 new bullet trains, it is -- we expect that we will be in the front line to be benefited by this. And the railway infrastructure, what government has put in today -- even today newspaper also says, so we are in the front row. If there is any opportunity, we will catch it, your company will catch it. Our experience in executing complex time-bound projects, including high-speed rail infrastructure positions us well for the participating in other corridors. Our annual capacity utilization remains strong at 92%, reflecting demand resilience and efficiency production planning. With 5 lakh tonnes installed capacity across 6 facilities and increasing share of high-margin products, we are steadily strengthening profitability. Going forward, our priorities remain clear: scaling defense operation, increasing share of high-margin value-added products, maintaining strict cost discipline, working towards improving the margins. With a diversified business model, expanding presence in sunrise sectors strong balance sheet and healthy cash profits, we are confident of delivering sustainable growth in the coming quarter. As you all know that we have already crossed the solar mission, 267 gigawatt, we have added till today, 52.7 gigawatt only in this year. So your company is in that sector also. We are supplying the transmission tubes as well as the solar structures for them. And this year, we have done almost a very good business. And next year, we hope we should cross INR 600 crores to INR 700 crores business in the sunrise sector of the solar structures. And as far as order booking is concerned, for our Infrastructure division, we have booked for next 1, 1.5 years. And in our Automobile division, we are having a visibility -- as we already told, we are having visibility quarter-wise. So we are having visibility of next 2 quarters. And the final two quarters, they are always good. So from automobile, infrastructure and defense, these are the 3 areas where your company will be putting more -- all of the efforts, all of the capital, and we hope you all will appreciate this. Thank you.

Good morning, everybody. I am Sanjay Bansal, CFO. On behalf of Goodluck, welcome you all for joining us for the conference on performance of the company in Q3 and 9 months of financial year 2026. Regarding Q3 performance standalone, the sales was increased to INR 1031.58 crores as against INR 941.98 crores during Q3 of previous year, registering a growth of about 10%. However, sales volume have increased by 8% during Q3 of current fiscal as compared to Q3 of previous year. EBITDA for the quarter stood at 9.7% of sales at INR 99.72 crores as against INR 82.48 crores during Q3 of previous year. PAT before exceptional item net of tax stood at INR 43.47 crores, registering a growth of 8.4% on year-over-year basis. However, PAT in Q2 of current fiscal was INR 41.30 crores. There was a growth of 5.2% Q-o-Q basis. The performance of the company in 9 months of current financial year sales has been increased by 6% about. EBITDA margins have improved to INR 291.61 crores with 9.7% of sales as against 8.74% during 9 months of previous year. However, PAT margins have increased to INR 124.91 crores as against INR 119.61 crores during 9 months of previous year. Consolidated sales of 9 months of current financial year has been at INR 3,011.82 crores and PAT was at INR 126.47 crores. The earnings per share has been at -- for standalone at INR 12.83 per share in Q3 as against INR 11.85 per share during Q3 of previous year. However, the EPS of the company in 9 months of current fiscal year stood 9 years for standalone was at INR 37.40 per share. On financial front, our interest costs have marginally gone up due to increase in current assets as compared to 9 months period of previous year. Salary expenses and other expenses has marginally increased due to increase in turnover of the company. Thank you very much. Now we are open to Q&A.

[Operator Instructions] We take our first question from the line of Harsh Vasa from SBICAP Securities.

Congratulations on a decent set of results. Sir my first question was that, sir, could you provide us the segment wise breakup of -- for the segments for 3rd quarter and 9 months and the second question is that, sir, regarding the CapEx, like the new CapEx addition you will be doing for the defense by increasing the capacity of artillery shells from 150,000 to 4 lakh, sir, what would be the internal accruals is to that range? Second question was that, and sir, revenues will start from FY '27 or FY '28. And sir, the last question is that what is the capacity utilization of hydraulic tubes in the third quarter?

I request you put the question one by one, then it will be more easy for us to answer, especially for you.

Sure, sir. Sir, my first question is, could you provide us the segment-wise breakup of volumes for the 3rd quarter and 9 months of all the divisions? That is the first question.

We will provide you, not an issue. We will send you a mail because it's a lengthy part, we will send you.

Okay, sir. Sir, the next question is that, sir, you are doing a CapEx of INR 500 crores by increasing the capacity of defense artillery shells from 1.5 lakh to 4 lakh, could you provide what will be the mix of internal accruals to debt financing?

Sir, for this augmentation of capacity from 1.5 lakh to 4 lakh, we will be incurring expense of almost capital expenditure of almost INR 400 crores. Out of that, that part will be financed through some equity and some bank loans. So for the -- and as far as the internal accruals are concerned, that will be the part of the equity at that time.

Okay. But any percentage, sir, how much will be loan like out of INR 200 crores, how much would be the loan percentage like 50%, 30%, example.

It will be 60%, it will be equity, and 40%, it will be loan.

Okay, sir. And sir, this -- the revenues from the incremental defense artillery shells will start flowing from FY '28 or FY '27?

Sir, it will take almost a year's time. So you can expect from the first quarter of, say, April '27, it will be started.

Okay. And sir, what will be the capacity utilization of hydraulic tubes in this third quarter?

What will be the?

Total capacity utilization of the hydraulic tubes.

Capacity utilization...

Of hydraulic tubes.

Capacity utilization of hydraulic tubes, it is running around 40% to 45% right now. But in the coming 2 quarters as the U.S. tariffs has eased, so we hope that in the next 2 quarters, it should grow almost 60% to 65% because what the easiness that Trump has given, it will pervade in the system. It will take some time, 2 quarters or 3 quarters, then this will be ramped up to 65%.

Next question is from the line of [indiscernible] from Smith Institutional Research.

So in the last quarter, you guided for 15% to 20% revenue growth for FY '26. So now the steel price has started to move up. So are you revising it upwards for the FY '26? And what will be the guidance for the FY '27, if possible?

[ Pratik ], can you please mute your line. There's some background disturbance coming on your line. [ Pratik], can you use your handset please.

Now is it clear, ma'am?

Yes, and please mute it once your question is done.

Yes, sure. So last quarter, you guided for the 15% to 20% revenue growth for the FY '26. So now the steel prices have started to move up. So are you revising it upwards for FY '26? And if possible, can you provide the guidance for the FY '27 as well? That was my first question.

Our perception towards the market is that our prediction for the 15% to 20% growth, it remains the same as in this year, it could not be because the prices were downside. But as you have rightly said that now the prices have started increasing and the markets from this December second part, markets have also improved. So we remain hopeful that we will be achieving 15% to 20% growth for this year, and it will be better in the FY '27.

And my second question was about, can you tell me about the EBITDA per tonne that -- which was clocked in the Q3 FY '26 and 9 month FY '26, sir?

Yes, definitely.

8,200.

It is -- for this quarter, it is [ 8,200 approximately and for the 9 months, it is 8,200. It remains the same, 8,120 and 8,240. So it remains in the range of 8,200 ].

Okay. And my last question was what is the value-added mix in the Q3 and the 9 month FY '26? And what do we expect in the near future, the mix in the future?

Right now, it stands from 56% to 60%. And in the coming year, we hope it should go from 60% to 65%.

Next question is from the line of Yog Rajani from Omega Portfolio Advisors.

My question is regarding the Goodluck Defense and Aerospace business. So as I understand, we are increasing our production by around 250,000 shells. By that estimate, we should -- I assume that we are trying to fully utilize the 150,000 shell per annum capacity in the first year. Is that a proper understanding?

Yes. By the next quarter, we will be using our almost 90% capacity, say, 150,000 is the installed capacity, and we will be using almost 135,000. And when the augmented capacity is executed, it will be almost 350,000 shells per annum.

Okay, that's brilliant. On that, could you just tell us what our expected revenue and margin -- EBITDA margin would be?

Expected revenue, right now, between 150,000 capacity, expected revenue is INR 300 crores. And with the augmented capacity, the revenue will be almost INR 900 crores and the EBITDA margins will be almost 30% right now, and we hope it will go in the range of 30% to 35% in the coming year as well.

Next question is from the line of [ Neil from Rockwell ].

Also, my question is, so like since we are investing around INR 500 crores CapEx for the artillery shells project, so once it reaches full capacity of manufacturing 4 lakh shells per annum, what can be the revenue potential we can expect from that project?

Sir, as I've told, this augmented capacity with the present capacity of 1.5 lakh, there is one more line that is the aerospace line in there. So combined top line will be INR 900 crores to INR 1,000 crores.

Okay. And what about the individual top line for the artillery project?

Artillery project, it will be almost INR 800 crores for the artillery products and INR 200 crores for the aerospace products.

We will take our next question from the line of [ Darshil Jhaveri from Crown Capital ].

Firstly, congratulations on a good set of results. Sir, just wanted to know, sir, the defense is going to start contributing from Q1, right? But will there be any contribution in Q4, sir, from the artillery space, sir?

Yes, it is likely to be. And we hope almost INR 60 crores, INR 70 crores will be contributed in Q4 as well. But from Q1, it will be contributing fully.

Okay, okay, okay. INR 60 crores, INR 40 crores we can expect. So that will also be EBITDA accretive, right? Because the depreciation are already taking in. So our PAT should get very positively impacted because of this, right, sir? Like is that the right understanding? So this INR 60 crores, INR 40 crores, we'll get 30% EBITDA that you are saying?

Yes, your understanding is perfect. The only issue is we are just -- our production is already on. We are just waiting for the final permission for dispatch, which comes from the government of India. So if it comes, so what I have committed you, it will be done.

Okay, okay, okay. So that's great news, sir. And sir, the Aerospace division that we are talking about, that will come in the financial year FY '28, right? It's not going to contribute currently, right, sir?

Yes, you are very correct because it will take from the -- one financial year, it will take to get everything on track for the aerospace and the augmented capacity of shells.

Okay. Okay, sir. And sir, just wanted to know, right now, we are at nearly 92% capacity utilization. And on that, like we are doing around 10% EBITDA, right? So this is the peak EBITDA we can do, right, because whatever operating leverage we are supposed to have, that's factored in, right? Or like in the our -- like if I separate Goodluck into 2 divisions, [indiscernible] and one defense and aerospace, so in Goodluck standalone, what is the EBITDA margin we can expect for next year?

EBITDA margin because whatever you are seeing, it is from the stand-alone basically. So that EBITDA margins, which we are operating, we expect they will also increase because we are doing continuously product as well as market mixing. We are going for the new markets, we are going for the new product mix. So we hope this margin should also increase, but how much time will tell. And when this defense will add, then there is jump in EBITDA margins will come in the consolidated unit.

Okay. Okay. Fair enough. And just sir, last question from my end, sir. So overall, like for FY '27, what we are saying is that 15% to 20% growth in our normal thing. And then on that additional defense revenue comes in, right, of INR 300 crores, all that 15% to 20% growth is including the defense, sir?

It will be included, it will be included.

Okay. So FY '27, 15% to 20% growth is including defense...

Yes, it will be included into that.

Yes, yes. Okay. So then, sir, in the standalone, are we planning any CapEx because it's already at 92%. So sir, we are bound to run out of the capacity and already kind of running out of capacity. So the growth from standalone will come only due to value mix, right? So any plans for CapEx are there, sir?

So basically, I have told you we are interested not in the volumes, we are interested in the bottom line. So okay, it has gone to 92%. But our product and market, which are our 2 tools, which we will be using -- which we have been using, and we will be using. So maybe it may be 15%, but the profit side, your EBITDA side, it will increase significantly.

Okay, okay. Fair enough, sir. And sir, just last question from my end, sir. Sir, we just declared dividend right now, sir. But with such a heavy CapEx coming in, we are planning to raise debt and some equity, then why are we giving dividend? Like just wanted to know the rationale behind, that's why.

You mean to say that we should not give dividend.

Sir, if the company can earn more than us, then why not, sir? We are already getting tax more on dividend. Company share price increases are more happy than the dividend, sir.

Actually, you are very correct. We should think. But our management view is that our shareholders, yes, they are getting the benefit of the improvement, they are getting [Audio Gap] in our capacity expansion. But at the same time, we should get something. Whatever is possible, we should give in the dividend that's the management views.

Next question is from the line of Sukhwinder Singh from BOB Capital Markets.

Sir, my question is on the input cost. If we look at the last 2 months, the steel prices have moved up. So I just want to understand how this is going to impact in terms of input cost for you and primarily for the 3 segments of this forgings and then auto tubes and CR coils, these 3 segments. And do you have the pass-on ability with a lag? So just I wanted to understand that thing.

Your question is very intelligent question, sir. So basically, whenever the prices go up, it definitely impacts our input cost. But as you have said, we are in the value addition sector. So if you go for the automobile tubes, there is a pass-through, but it comes with a time lag. Suppose in the third, fourth quarter, it has increased. So we will have to wait for another 2 quarters to have it, but we will get it. As far as our infrastructure sector is connected, there it is a complete pass-through because we have a declared price policy. And in terms of defense, raw material contribution is less. So it will not effect much. So in all, if you see, in our conventional business, it may impact something. But in our value addition business, it will not impact us significantly.

Okay. And second, a question on the defense part. Just to understand more, like you said that the combined revenue from ammunition cells and the defense subsidiary would be about INR 900 crores to INR 1,000 crores, okay? So separating that INR 800 crores for artillery shells and INR 200 crores for defense. So I just want to understand this INR 200 crores, what is the time line by when you will be achieving that? And what is the EBITDA margin in that INR 200 crores part in which you supply parts to the missiles, rockets that I wanted to understand.

Okay. Your second question is for the aerospace. For aerospace, it will be done with -- as I have told in April '27, it will be executed. Production will come. As far as EBITDA margins are concerned, they are 28% to 32% -- they are what we expect right now because India is more and more pressing on the air. And all the -- like this AMCA 125 plane order is there. Our civil part, there is 1,000 planes have to come. So India is spending more and more on the aero capability. So that sector, right now, I said that is 28% to 30%. But in near future, it can improve. It should improve. And the first question I forgot, can you repeat?

So I just -- yes, I wanted to understand for this only EBITDA margin. So -- but my question is that going forward, with number of suppliers, I think it's more than -- must be more than 2 or 3. Is it the risk that EBITDA margin can come down, say, over 3 to 5 years in aerospace part from 28%, 30%.

Sir, this aerospace part, I will not agree with you because India is doing nothing. HAL is having an order line of almost INR 9,50,000 crores. ADA is coming with this AMCA, 125 planes. Now Adani is coming. So India is doing nothing in the aerospace sector. Now this is the time when the demand will increase, a more knitted value chain system, a more knitted vendor system is required where the vendor partners' contribution will increase. In this aerospace sector, now India has put the condition, a minimum 60% value addition should be there. Even in the coming tenders, I understand, they can say even 100% you have to make in India. So India is no supplier system right now. So a strong supplier network is required. And I hope this is a sector -- this is a sunrise sector, which will -- we are saying INR 200 crores. But I'm sure we will have to put another machineries to take it to further height. India needs it. There is no hurry and worry on this.

Okay. So broadly, as I said, your blended EBITDA margin from 9.9% should go up with these 2 -- primarily EBITDA margin from defense coming at a higher level, right?

Yes, yes, yes.

Okay. And one last question. The investment in defense last year was about INR 39 crores. So until 9 months, any incremental investment has been put up in defense?

INR 39 crores? No. I suppose you have to correct the data because we are -- please correct it because we have put almost INR 300 crores in this Defense division. So just maybe in a month over here and there, there may be some data correction.

Next question is from the line of [indiscernible].

Am I audible?

Yes.

Yes, you're audible.

So my question is regarding the defense business. So what was the revenue contribution from the shell business in this quarter like Q3 of '26?

Please repeat your question. It is not clear contribution wise...

[indiscernible], can you use your handset and repeat the question, please?

Sir, I was asking what was the revenue that we have clocked from the shell business in Q3 of '26?

In Q3, it is not significant because only production has started. It has not started selling. So the contribution will come in this Q4, and the Q1 full contribution will come in the Q1 of next financial year. This year, it is insignificant, in this quarter.

Okay. So like earlier, I think we had a target of INR 100 crores from the shell business. So are we in line with that for FY '26?

We are very much in the line, but the issue is because it needs some permission to dispatch. So we are waiting for the dispatch permission. And as I have already told that even it comes delayed, so we will be doing almost INR 60 crores this financial year.

Okay. I have just a bookkeeping question. So our other operating expenses increased by like -- from 14% to 16%, so what was that specifically?

You see expenses -- overall expenses, there is no increase. But if you go in further details, some expenses increased, some expenses decreased. So overall percentage of expenses is same, 94.4% and earlier, it was 94.5%.

Next question is from the line of [indiscernible] LLP.

Sir, I had questions regarding the shell business only. Apologies if this question was asked before I recently just joined the call. Sir, I wanted to understand the industry size over here, particularly for India and globally. So I just wanted to understand what is the requirement for 155 mm shells in India, and the same for globally as well. That is my first question.

Sir, as you know, this 155 mm shell, this is the one version. All the world demand has converted to 155 mm in last 1, 1.5 years. Since the inception of this Israel-Gaza war or this Russia-Ukraine war because otherwise earlier more versions were there 92 mm, 125 mm, 132 mm, but now it was a pressure on the country that you have to put more of the guns, more types of the shell. So it just converts to 155 mm. Now as far as demand is concerned, we don't have any data. But as from the internet, you can also study, it shows that the world is -- right now, world is having a capacity of almost 3 million to 3.5 million, and that capacity is not today. It will come in next 3 years. It is a combined capacity, which will be 3.5 million. But if you see the world demand today, it is almost 7.5 million to 8 million, reason being, there is an initiative ReArm Europe, because Europe has given a budget allocation of EUR 815 billion because NATO, U.S. has virtually withdrawn. So all the 27 countries have to ramp up their production facilities. They don't have -- they have nothing. Whatever they had in the stock that has been consumed in these two wars. And many other -- more wars are going in India -- India, across Africa or many other small countries. So stock is not available. And moreover, the most important thing is demand is outstripping the production. So the way -- if you can see the gradient, the gradient by which production will increase, that is much, much lesser than with the gradient if the demand will increase. So there is clearly a gap of this arms and ammunition, particularly 155 mm. So I see no dulls of demand in the next 4, 5 years.

Understood. For the next 4, 5 years, you see a lot of demand. Okay. My next question, sir, since you have mentioned that the demand is increasing over here, if you can just explain how the pricing is currently moving at the moment? Because if I'm not wrong, the pricing is determined with the international players globally, the pricing is determined. So what is the current pricing for this? And also in India, which other players have received the approval like you, the license approval like you?

Sir, I can explain to you. The pricing will be decided by demand. At present, demand is outstripping the supply. And there is no reason for us to doubt even many players coming into the field will be able to fulfill the demand. As per my information, India needs 48 lakh per year these 155 mm gun. Nobody can supply in India. Nobody can supply in India. Even many players, 10 players coming will not be able to fulfill the demand. So rate will be decided by the supply constraint.

Right. But sir, you would have signed some contracts right now or you would have -- you might have some visibility what the pricing currently is going on?

Sir, basically, what you are talking, it is a price concept. The price concept, as Garg sir has said, it is always decided by demand and supply. But in this case, because demand is outstripping the supply, so price will be decided by only the pricing needs. Suppose however, it should not be on the Operation Sindoor, we were out of the caliber on the second day. So suppose as India is now bounded by all the 3, and they all are not at good relations with India. So if such happens, so there will be an exotic demand. There will be unprecedented demand. So price will be decided at that time. Moreover, there are more versions coming on the shell. We are already investing. Our R&D team is involved for the advanced version of this because this is the basic version, you know I know. But market is moving ahead with more versions, and those more versions will attract more price. So don't worry about the prices. We are on the right track on the technology as well as the market.

Understood. Okay. At least, sir, if you can just help me with what are the margins going forward, what do we expect the margins to be going forward for the shell part? Is it 30% or more than that or lower than that?

Sir, putting a figure of 30% is imaginary. It can be more. It can be even more than 30%.

Next question is from the line of Keshav from [ RakSan ] Investors.

In the shells and aerospace business, would the customer only be Government of India, or would we be selling to other customers as well?

It is a total world. It is a global demand. It is not only Government of India. The total world as to -- total world is looking for it.

And sir, so when the business goes to a full scale of INR 900 crores to INR 1,000 crores, how much working capital do we foresee we'll require to fund that business?

We expect almost INR 200 crores, INR 250 crores working capital will be required at that time when we reach the peak.

Next question is from the line of Harsh Vasa from SBICAP Securities.

Thank you for the follow-up question. I just had one question. Sir, what was the CapEx which we incurred during 9 months FY '26? And what will be the CapEx for the remaining 3 months that is 4Q FY '26 and CapEx for FY '27 and FY '28?

Total CapEx already done till 31st December was INR 186 crores. And in fourth quarter, we expect about INR 30 crores CapEx.

Okay. And sir, FY '27 and '28, any ballpark figure?

Sir, '27, '28 is still in working, because the natural maintenance CapEx, it will go as per the schedule. However, as for new plants to introduce our capacity augmentation in defense, it is still in the working stage. We will let you know.

We'll take our next question from the line of Sanyam Shah from Solidarity Investment Managers.

Am I audible?

Yes, please go ahead.

There's a background noise, some I mean...

Sorry?

In the background, there was some, but now it is audible. Please go ahead.

Yes. Sir, within the CR sheets and pipe segment, which is our conventional business, how much revenue is today contributed by solar tracker tubes? And how much was this 2 years back? Can you just give a ballpark range?

Right now, this year, it should remain almost INR 400 crores. And as you are talking over the last 2 years, it was almost INR 250 crores. And in the coming years, we hope it should be INR 650 crores -- INR 600 crores to INR 650 crores for the next financial year, transmission tube and the solar structures.

[Operator Instructions] As there are no further questions, I now hand over the conference to the management for closing comments. Over to you, sir.

Thank you for all the people who participated in this con call. We express our gratitude for our shareholders, for our viewers, for our listeners. Thank you.

Thank you. On behalf of Goodluck India Limited, we conclude this conference. Thank you for joining us, and you may now disconnect your lines.