KEI Industries Limited ($517569)

Ladies and gentlemen, good day, and welcome to KEI Industries Q4 FY '26 Earnings Conference Call, hosted by Nuvama Institutional Equities. [Operator Instructions] Please note that the conference is being recorded. I now hand the conference over to Mr. Achal Lohade from Nuvama Institutional Equities. Thank you, and over to you, sir.

Yes. Thank you. Good afternoon, everyone. On behalf of Nuvama Institutional Equities, we are glad to host tje senior management of KEI Inustries Limited to discuss the Q4 FY'26 and FY'26 earning. We have with us Mr. Anil Gupta, Chairman and Managing Director of the company; and Mr. Rajeev Gupt,a, Executive Director, Finance and CFO. I will start the call with the opening remarks from the management and then move to Q&A session. Thank you, and over to you, sir.

Good afternoon, friends. I'm Anil Gupta, CMD, KEI Industries Limited. I will give brief about the financial results of this quarter as well as the full year. As you must have received all the information already, net sales in FY '25 to 26 is on -- is INR 3,476 crores, grown by around 19.7%. EBITDA public net sales margin achieved this 12.21% as against 11.61% in the same period previous year. Profit after tax in this quarter is INR 21 crores with a growth impact with 25.5%. Profit after tax [indiscernible] sales margin is 8.8%, and versus 7.77%. So we improved -- could improve it by 0.5% for the same period over the same period. Domestic institutional cable sales B2B is INR 804 crores, up around 6%. And sales of extra high-voltage cables B2B is INR 188 crores in the fourth quarter against INR 115 crores last year with a growth of around 64%. Export sales in this quarter is INR 443 crores. Total B2B sales contribution is 40% as against 46% in the previous year same period. sales through dealer network, distribution network, is INR 1,936 crores in fourth quarter against INR 1,598 crores, with a growth of around 29% in the B2C sales. Distribution sale contributed -- contribution was for 56% in fourth quarter as a main 51% in the previous year same period. EPC sales other than cable is INR 123 crores as against previous year same period INR 72 crores. Out of the total sales of EPC, extra high-voltage cable EPC sale is INR 106 crores against INR 32 crores in the same period last year. Sales of stainless steel wire in Q4 is INR 55 crores as against INR 45 crores for the same period previous year. Now I will give you a summary of the full year results, full financial year '25-'26. The net sales in FY '25, '26 is INR 1,746 crores against previous year INR 9,735 crores. Growth in the net sales is 2.66%. However, our wire and cable segment in this in terms of value in FY '25, '26 has grown by 22.2% against previous year. All our cable plants of [indiscernible] were operating at peak capacity during last financial year, '24, '25 itself and capacity at our Chinchpada plant was added in Q2 of last financial year, '24, '25, which resulted into an overall volume growth in financial year '25, '26 for copper cable, but aluminum was a flat [indiscernible] so the net volume increase was 6.21%. For the current financial year, 26, 27, volume growth will come from [indiscernible] for wire capacity and for cables, the growth will come from Simon plant. We are expecting 17% to 18% volume growth in this current financial year, which will mainly coming from [indiscernible] new facility. You are aware that our Pawan plant was commissioning our first phase was delayed by around 6 months. So we commissioned the first phase in the December '25. And second and last phase is expected to be commissioned in the fourth quarter of '26-'27. In financial year '25, '26, average copper price increased by 16.8% and average aluminum prices increased by 9.91%. During FY '25, '26, operating margin has improved to 10.6% in against 10.18%. EBITDA in this financial year, full financial year is INR 1,387 crores, up by 30.6% compared to last year. Net sales margin is 11.8% as against 10.92% in the previous year. So the profit after tax in financial year '25, '26 INR 18 crores with a PAT margin of 7.82%. Domestic institutional cable sale, wire and cable has been INR 2,688 crores. However, the domestic institutional cable sale of extra high-voltage cable is INR 559 crores, an INR 208 crores previous year with a growth of 82%. Export sales achievement is INR 1,833 crores, we 1,267 million So the growth is exported 45%. So the total cable institutional sale contribution is 42%, which is as far as the previous year. And sales through distribution network is INR 6,349 growth up by 25%. The total active working leader for the company around 31st March '26 was approximately INR 2,125. Dealer sales contribution is 54% in overall sales. EPC other than cable is INR 311 crores against INR 343 crores. Stainless steel was sanfull FY '25, '26 to INR 212 crores at par with the previous year. Now, I will give you the demand outlook and the future outlook for the company. The demand outlook continues to remain strong. We are very hopeful that whatever we have projected in the volume growth and plant utilization, it will happen. And we are bullish about huge CapEx coming up in India in the power transmission and distribution sector, data centers, institutional infrastructure projects like Metrorail and railways, as well as the construction sector comprising of commercial construction as well as real estate. Oil and gas sector will continue to remain strong. especially the power realization sector will see substantial growth in coming financial years, not only in the solar and wind, but also in the thermal power generation. Data centers will also be a big good stress export for America. We have also commenced -- restarted our exports to United States after the lull in last financial year because of the tariffs and we hope to do a substantial sale in U.S. this year, taking our export to around approximately 20% of our total sales in the current financial year, which is as per our previous target. So this is a brief summary from our side. We now look forward to answering your questions. Thank you.

[Operator Instructions] First question is from the line of Sukrit Patil from Eight Fine Private Limited

I have 2 questions. My first question Mr. Anit -- in your view, how

There is no response from the current question. We'll move to the next question from the line of Pulkit Patni from Goldman Sachs.

So 2 questions. Firstly, are you witnessing any supply chain issues right now, supply of PVC compound XL any other sort of supply chain issue? You did mention that freight cost on the TV interview, you mentioned freight costs have gone up quite meaningfully and you are sharing part of that with the customer in the export market. Anything else on that side that you would like to highlight in terms of costs and supply chain?

Thank you. Supply as of now, I think we -- one of our plant has suffered because of the raw material issues coming through imports because of the good stocking by us as well as the domestic availability and our only the imports of LP from Middle East, especially Abu Dhabi is not happening because of the shipping problems. Also in March, we witnessed. We were not able to ship our books to Middle East because no shipping line was ready to take the delivery. Now in April, it has started, albeit at a very high cost because containers are now going to [indiscernible] and from Susara port by land to various destinations in Abu Dhabi and Qatar, et cetera, in other countries. So it is a -- and most of the customers are gearing 50% of the differential trade cost from us. And in cases where our prices are FOB, there the entire freight cost is to their account. But that has also started because they need material. And so it was a of course, in March, we suffered, we could have done around INR 50 crores more at INR 50 crores to INR 60 crores more exports, which could not [indiscernible] .

Fair point, sir. Sir, my second question is, I mean, historically, we've done a very good job in meeting our guidance. But our guidance has always been in the high teens to early 20s in terms of revenue growth. You just mentioned right now that 17% to 18% is the volume growth in FY '27 that you're targeting from the Pawan facility. If I was to just make the assumption of where copper is likely to be based on what the last year prices were then we are talking about at least a 10% to 15% upside that will just come from copper. So is it fair to assume both added together that we could look at more like a 30% revenue growth this year? Or am I reading too much into this?

No, no. I think what you are saying is that happens, this will happen. It could happen.

Next question is from the line of Puneet Gulati from HSBC.

That's a great performance. My question is if you can elaborate a bit on what has been the key drivers of your margin expansion in this quarter, especially when you face some bit of challenges on the trade side the Middle East and supply side?

No. What we said is the freight side only related to the Middle East and our Middle East a particularly very, very less. So just no impact on the overall.

What I said is that rate impact coming on the supply to Middle East. But that trade has come in April, not in March because in March that the supply could not happen because of the restrictions on the shipping.

Okay. So okay. So no adverse impact there. So whatever 70 bps margin that you lost is more.

But I can say that whatever extra freight we are bearing in April, that will be compensated by higher exchange rates which we will get from our export revenue in those orders itself because those orders were priced at anywhere around INR 90 or INR 91. So even if we are bearing some extra rate, that will be compensated by the extra revenue from the exchange fluctuation.

Understood. And sir, 17%, 18% volume growth that you guided from the San plant, that's effective from this FY '27 itself? And then what sort of another growth should we expect for FY '28 based on the second phase?

Similar growth will continue to happen because the capacity I mean coming up and plant getting stabilized with the more and more supplies going from that plant. We are when we set up a new plant, it takes a little while to get that plant specific plan specific approvals also from the customers. And so since the ramp-up is always great.

Okay. So FY '27, it is 17% to 18%. 28, it could be a bit for gradually.

That's why it would be around 20%

Okay. And lastly, if you can also talk about how do you think about margins for the current year?

We -- I mean on a conservative side, we can expect around 11%, anywhere between 5% to 11%.

The next question is from the line of Achal Lohade from Nuvama Institutional Equities

Just a quick clarification, sir. When you were talking, you said the [indiscernible] growth will come from Sentara and the cable growth will come from same plant.

That 17%, 18% volume growth you said for the cables or the company as a whole I presume the company as all Yes. The company has [indiscernible]

The other question I had is in terms of exports, if you could elaborate a little bit as to where we are, what kind of products we are currently exporting and more incremental new product categories can we look at, if you could guide a little bit more to us in terms of the export growth as well as the categories and the key drivers or geography?

Partly we are exporting really LP, LT and voltage cables. Apart from that, we are also exporting control and instrumentation scales for oil and gas refineries. So this is our product -- total product mix and export basket is not different from domestic suppliers. Look, export basket is in terms of products is similar to domestic.

Understood. And geographies, if you could give us a sense of FY '26 export mix?

Export -- major export destinations are Middle East, Australia, Africa and now -- and as well as the United States. And we are also exporting to Europe as [indiscernible]

And would it be possible to know what kind of solar cable mix we have set for FY '26 at our company level or case alone.

Solar cables, we are manufacturing power cables. And also now we are manufacturing solar bias by electron being process. So we have set up this electron beam facilities in our final plant and which have started.

So the contribution will be relatively small at this stage, right?

No, it will -- so the quarter after quarter, it will keep growing. So FY '26 will be smaller and FY '27 will grow substantially.

Understood. And would this be a value-added product in terms of margins or similar margins?

Yes. See, it can be a similar margin. I mean, when we talk of EBITDA margins, we talk of all products areas together.

Next question is from the line of Balasubramaniam from Arian Capital.

Sir, my first question, we have planned around INR 2,000 crores kind of investment over the next 3 to 4 years post finance I think we also bought a body land around INR crores we also got a 7-acre land in Broda. So I'm trying to understand like what is the use case of this land and what kind of products we are going to target for the investments. Is that -- we're also planning a backward integration into compounds? I think you are currently highly importing high-voltage compounds.

We are, at the moment, we are manufacturing PVC compounds and low-tension XLP compound services. And -- but quoting and on procuring domestically medium-voltage compounds and extra high voltage are all being imported. So extra voltage will continue to be imported. However, we will be working on manufacturing medium-voltage compound further class, but that this project will take more minimum 2 years. Because the civil construction to the states time. Similarly, we are also considering manufacturing our own galvanized steel wire, cable armor wire because we had a substantial consumption of close to 5,000 tonnes a month, so which makes it economic sense to do that. And other products, but we are will be whatever products in electrical side in cable industry, which we may be missing. We'll continue to add those plus the newer capacities in our new facilities, whatever will come up in the next 2, 3 financial years.

Okay, sir. Sir, my second question is, we have active dealers of 2,125, but around top dealers contribute 70% to 80% -- 70% to 80% of sales. Basically, 5% of the dealers are bringing 70% to 80% with sales and dealer inventory is typically nearly 15 to 20 days. So I'm trying to understand the remaining dealers are inactive or they are [indiscernible] the low productive dealers? And what -- what is our dealer churn rate annually, sir?

It's not inactive dealer. Major part of 20% dealers, which do 20% of the total sales. So the 20% those dealers are anywhere between INR 50 lakh to INR 1 crore. So they are always be first, they are operating in the smaller towns, doing small town sales or retail sales and they are mostly operating in 2 90-meter buyer segment because there you require dealers at heavy [indiscernible] . So you need a lot of numbers, then only the sale comes. And so far as churning is concerned, I think every year, 10% to 12% is a churning of some last lease and some new or [indiscernible]

Next question is from the line of Patanjali Srinivasan from Sundaram Mutual Fund.

A couple of questions. So firstly, could you tell us like what is the increase in terms of price and what is the volume growth for this quarter? And on a year-on-year basis, we in things for the next year?

So for the full year basis, the copper price increased by 16.5%. And for aluminum increased by 91% for the full year basis. Overall, for full year, we have grown for the copper production that [indiscernible] by 15% but our aluminium consumption was flat. So overall, the net volume growth for the metals was [indiscernible] to 1%.

Got it, sir. So what is the price increase we had to take this year around 8%, 9%? Would that be the.

Nothing. We are working on the passing on mechanism. I mean will typically pass on edition -- because we are a tender-driven business. So whenever we are quoting, we are quoting on prevailing market price on that date, accordingly, we are putting the price. in all the additional order, it gets faster.

Okay, sir. And we mentioned that 15% to 17% volume growth can happen in FY '27. So this is only from the new plant? Or is it entire -- like even the existing plants put together? And what would be the guidance over [indiscernible]

Existing plants basically Rajasthan plant, they are already working on the peak capacity, only the King para plant and the new plant of San [indiscernible] -- they will add in the volume actually.

Yes, sir. So in terms of growth, you still stick to 20% growth for 27% over 26? Or is there a slight...

The price remain if the price remains at this level and with the volume growth of 17%, 18%, this value will grow more. But if the prices are going down, then still we will be maintaining a 20% because we are adding 17%, 18% value. But the in the last year except the last '25, '26, if you go for the next previous 5, 6, 7 years, our volume growth was close to 14% to 16% year after year.

I can add here that if the prices remains bullish of the metals. And definitely, the revenue growth will be much moot.

Got it, sir. Sir, just only doubt or concern is that the volume growth is a bit lower given that we had very strong base for the last 2, 3 years, and we are also bringing new capacities. So will we see any challenges in terms of volume growth. That is what the concern is, sir?

No, volume or is on the capacity addition. So whatever in the phased manner, we are adding the capacity. So volume growth will be in this reg which will be resulting more than 20% when terms growth.

Next question is from the line of Shriram Kapur from Jefferies. Line for the current question is disconnected. We'll move to the next question from the line of Praveen Sahay from PL Capital.

Any considerations for a good set of numbers. First question is really to the acceptance for -- from the last Q3 and now the Q4, the acceptance number has been on the higher side. So how we will read this the way forward, like even the trade payable numbers, I can see that's an increase for a year Y-o-Y in fact. So how to read these numbers the way forward where yes, want to see this number?

So this number will remain in this category only because the prices of the metal has already increased. So -- and the volume of the company is also increasing. -- after the production. So that -- this will be -- this number will remain in this annually.

It's a factor of pricing and that's where you're saying that's number 2 this year.

Yes, new [indiscernible] plant also because their inventory has increased.

Okay. And the second questions are related to the housing wire and winding wires, and we had observed in the last 3 years continuously increase in the contribution. So now it's forever 26%, 33% of the contribution. So -- and further, you are guiding for the change war, there is a wire production, which will further add to the volume -- so where do you want to see this contribution to go from 3%?

Okay, dealer distribution contribution is already 54% and whatever cable capacity is increasing in Canam. -- hope that 55% contribution from the dire distributors will remain.

Okay. So as our disk contribution also to do housing.

Yes. So basically, the housing war goes to dealer only -- so the housing as sell is increasing, but the cable sale is also increasing because of the [indiscernible] So we will maintain this number at this level.

Yes. Another question is related to the order book. So if you can give the bifurcation of the order book, EPC and textile domestic.

So we have the -- as on 31st March 2026, order book of EPC division is INR 309 crores. extra high voltage power cable order book is INR 625 crores. And we have also [indiscernible] cable order book of INR 233 crores another order. -- and cable domestic institution order book and around INR 2,154 crores and cable export order is both INR 497 crores. Put together, all order book is close to INR 355 crores. And whatever order book from the dealer distributor, that is not reflecting it here because they are the orders which we supply within 3 to 4 days' time or maybe at a 1 big time

Right, sir. And one clarification, like volume growth for the quarter is 1.5%.

No, no. Volume growth for the quarter was close to 2%. And full year basis, the net volume growth is, I said, 6.2%.

Next question is from the line of Sharat Dial from Money Westpac Capital.

So my question was regarding the EPC. So EPC contributes like around 2.6% as we saw in FY '26 revenue? So does the company plan to scale this up or keep it as a supporting business? Like what's your view on that?

Since last 3, 4 years before, we have guided that EPC business will go down towards the 2%, 3% only. So as per the guidance, because there the working capital is very long -- so because of that, we are increasing the retail where the working capital is very low. That's how it is our plan.

It is mostly a supporting business to support our extra high-voltage cable projects, where cable pole value is more than 80%.

Okay. Sir. And I have 1 more question regarding the QIP proceeds. I feel that around INR 400 crores to INR 500 crores remains unutilized. So any specific deployment plan or timeline for this capital?

The second phase of the FSA voted power cable in Salon will complete by Q4 of the current financial year. So the whole INR 385 crores unutilized QIP money will be utilized in the current financial year.

Next question is from the line of Ashish Agrawal from Indus Nippon Life.

Sir, 2 questions from my side. What is the CapEx plan now for FY '27. And will it include CapEx incrementally in [indiscernible] also?

Yes,.

And secondly, just wanted to understand on the EHV side, this year, we have seen a substantial growth on the AHV revenues, almost close to 66% growth.

Q1, our new capacity for EHP-nly will be coming towards the end of this year. How should we look at the growth on the EHV side?

This year in EHV segment, we expect a growth of around 20% a little bit from our existing factory because we are already operating at almost full capacity and some portion of growth will come from San. In regards to the CapEx investment, every year, we will be doing around INR 600 crores to INR 78 crore capital expenditure for next 2 to 3 years consumers.

Next question is from the line of Christopher Hatco from Pictet.

Just a follow-up question on the quarterly volume growth, if I may. Is it fair to say that you're still capacity constrained? Or how do you explain the discrepancy of the difference to some of your peers' volume growth? And what was San contribution in the fourth quarter in terms of volume growth?

In [indiscernible] fourth quarter sale was very less. It was less than INR 100 crores. because the ramp-up takes time. But now from the first quarter onwards for the current financial year, the sales from Palantir a visible extent as Energia just spoken about current year growth will be coming from the same.

And the first part of the question, with the volume growth in the fourth quarter was that still SP-5 Along for the end should be.

Yes, it was mainly because of the capacity constant, actually.

Next question is from the line of Rahul Agarwal from ikigai asset.

Sir, very good. -- so 2 questions. Firstly, I see reduction on the receivable balance on the receivable side on the balance sheet. Overall, we see some changes to inventory in [indiscernible] , I believe that is because of some transit export delays, which will normalize in first quarter. So overall, on a sustainable basis, the company should be between 85 to 90 days of net working capital cycle over the next 2 to 3 years. Is that understanding correct?

Yes, net working capital cycle is because of receivables to the is already reducing year after year. So because of that, the working deprecate is decreasing actually.

Is that -- that is purely because of channel financing?

Yes, that is mainly purely because of [indiscernible] funnel.

Okay. So incrementally, this 57 days of sales of receivable days, that should remain flattish or it should further decline?

This better may further decline to as of now, it has reduced from 22 months to 18 months. It may reduce to 1.75 months. But almost the overall inventory plus data minus creditor is close to 2.97 months as against last year, it was 39 months.

Right. I get that. And secondly, I mean you talked about CapEx of INR 89 crores a year, your operating cash flow is going to be similar every year based on the growth guidance you're giving -- so the cash line in the balance sheet, right, almost INR 1,300 crores net cash. How do we realize this in the business then? Because the entire CapEx is going to be funded from your accruals itself. So what is the thought there?

Sir, we will be doing all future CapEx from the internal approval only because whatever CapEx we are accruing year after year, we will be allocating close to 60%, 70% for the capital expenditure, for the incremental capacity addition to grow at CER up 20%. And because of -- we are growing more than 20%, so we need to add some additional working capital. So balance [indiscernible] 30% of accrual will be kept for the incremental working capital requirements. So that is our overall plan to use our cash flow for the next 3 to 4 years.

Sir, I was actually talking about the cash remaining in the balance sheet even after using working capital even at 90 days of sales, you need INR 500 crores, INR 600 crores of working capital and...

Normally, the size of the company, INR 500 crores to INR 600 crores cash will always be carried. Only the additional 20 cores, INR 300 crore cash it may go up, it may go down depending on the receivables and the inventory cycle because it cannot be remain same in a month-to-month basis. On an average, it is there, but on month to measure, it may increase or decrease. It supports a sudden jump in the raw metal price. And for that particular month, it will increase substantially. So cash will not be there at that time. So because of that, we need to have the cash at INR 500 crores to INR 600 crores level at any given point of time in the balance sheet. Because we are running a debt-free company. And with this guidance, we will be continuing running as a debt-free company for next 4 to 5 years with a top line growth of 20% CAGR depending on the capacity we are going to add.

Got it. And just to double-click on this fourth quarter volume growth, you said 2%. How do you read this in terms of your own expectations in the quarter? I understand there have been a lot of fluctuations on a Q-o-Q basis, one-month basis, environmental of normal. But what the question, how is the performance

Sir, there are 2 aspects to this. First is the capital allocation. If we are allocating the capital of 60%, 70% towards the CapEx and 30% for incremental working capital requirement, considering we will be growing at CAGR up 20% plus, okay? So if the value is increasing and the volume is also increasing that we may be requiring more additional working capital also. So by saying 30%, 40% is very easy. But to arrange the capital for that also, we need some allocation. So we have already allocated to the capital expenditure, then we need to have the barrel. So at all, as of now, we are not borrowing. And whatever capacity we are creating, we are creating a capacity with a volume growth of 17%, 18%. Because last year in Sanand, the 6 months was delayed because of their debt volumes could not be added into the sale. So because of that, the volume growth is not there because otherwise or all the Rajasthan plant even in '24, '25, they were running at a peak capacity. So whatever capacity increase in the Sanand plant in the second half of the '24/'25 that has contributed only towards the volume growth. So because of that, the last year, the copper has copper metal consumption has grown by 15%, but aluminum metal consumption was flat because the salmon Sanand was not operating at that time. Now the naira and the infra is having the capacity for the buyer. So then we will be operating again back to the 17%, 18% volume growth.

Next question is from the line of Umang Nahata from Kotak Securities.

I just wanted to clarify something earlier, we had given a number of around INR 2,700 crores from Sanand plant in FY ' 27. Are you still stick to that? And if you -- and 18% volume would actually be slightly higher if actually INR 270 crores is the question.

Not only from Sanand but from Kitara for the buyer. That is mainly for copper.

Understood. And just to reconfirm something you said to posit earlier, 17%, 18% volume plus is prices sustain as they are then on an annual basis, we are looking at 25% plus top line growth. That's correct, right?

As of now, if the prices may increase, the value atomically will be clear. But we can't say the valuable the price will increase or decrease at this moment of time. The as the price -- it is also not

Next question is from the line of Akshay Gatan from UBS.

Earlier, you committed export revenue share guidance of around 20% of revenue for FY '26. And if we assume even a 20% company level revenue, this implies export growing more than 50%. So a large part of 16% to 18% volume growth supported by exports. So is there any identified geography which is contributing back to this any particular product, which will drive a increase in exports?

Products and geographies there remain same, where we are exporting. It will increase volume will come from the same geographies and similar type of project.

Okay. So this is more of a broad-based rising acceptability of Indian product in the export market you can see and on the volume growth, [indiscernible] volume growth is accelerating from 6.5% in FY '26 [indiscernible] -- so how would this impact operating leverage? And do you expect any preoperative expenses for Phase 2 of some and EV can.

Already, we have guided this from '27, '28 when the Sanand will be at full capacity. So that will be the first year in 2028. So another EBITDA margin will get improved because of economy of scale. In the current financial year, [indiscernible] operating margin has improved from 10.1% to 10.6%. And another 20, 25 bps point, it will further increase year after year because of the economy of scale and having more export and more B2C business.

Next question is from the line of Anuj Shah from Phillip Capital.

Congratulations to the entire team of KEI Industries at delivering good set of numbers. Actually, just wanted to reiterate the pickup of the current order book that you had mentioned. Actually, I had missed it. So if you could just give us the breakup of the current outlook, therefore, that would be clear.

EPC order book is INR 30 crores. extra voltage power cable order book is INR 625 crores. Domestic order book is INR 2,154 crores and export cable order is INR 497 crores, put together all is INR 3,565 crores as of 31st March 2026, and L1 on ESV another order is INR 223 crores.

Next question is from the line of Parash from Mat Equities PMS.

Congratulations to the entire team. I want to understand about extra business, particularly in the U.S., since you tell you are you looking good track and standing come from U.S. So what kind of orders product or business that you are expecting from lower business? I want to know about -- particularly from the data center area.

See, data centers, I think we expect to supply them mainly HT cable and also some copper flexible. But presently, our market, what we have built for data center is only for the medium voltage HT cable to the U.S. And we are working out that what other cables can be sold in their data centers because when we sell to data centers, we have to face competition from their American domestic industry as well. Because of the utilization of U.S. market last year, the progress in market development was called, which has restarted now. We'll be able to let you know about it in our next [indiscernible]

So I want to know about what kind of order book is currently from the U.S. side? And approximately, what kind of margin that we are taking from U.S. business.

In U.S. market, close to INR 50 crores, INR 60 crores order book as of 31st March 2026 was there. But as Anil is saying right now, this market has opened after the tariff has reduced -- so now our marketing team is [indiscernible] over there, and they are recapturing our existing customers and adding new customers. So in future, this will be adding up. So until August last year, we have reached close to INR 40 crore per month sale. So in 3 months' time, we will try to be sub that level again it will be the [indiscernible]

And this is our value-added product area? Agri product is a value added [indiscernible] I want to know what the EBITDA margin of U.S. market.

So average EBITDA margin is close to 11% for all exports.

Next question is from the line of Ankit Soni from Mira Sean.

Congratulations for a good set of numbers. Just wanted to be having to the questions. So the Sanand facility, second phase was, I believe, earlier operations in around August or second September month. So has it got to delay to quarter 4. So am I reading it right?

Already the whole Salon plant get delayed by 6 months. So the Phase I also got delayed by 6 months. So the it also will capability 6 months because the construction will be in progress. So by March, we saw in 2017, the would be over production.

A Okay. And so I believe first phase will be fully operational for financial year [indiscernible] will be giving you a growth of volume growth of around 7% to 8%. And the second phase, which will be operational by around quarter 4, would open up what sort of volume growth for financial year '28?

It will be the 17%, 18% volume growth will be clear.

Okay. Under the 70%. Sure. And so with respect to the price hikes, -- have you taken all the price hikes in relation to what was the raw material increase maybe till March that it was all maybe here? Are we taking another price hike going forward?

Sir, that is our business model. Whenever price increase, we are increasing the price of the cable and the war decrease. We are decreasing the price of the table. So there is no issue for the pass-on since last 4, 5 years, if you see our balance sheet, we will not find a fluctuation in our EBITDA margin.

Okay. Sure. And if you can just let me know what was the price hike we took in financial year '26?

In every order we price order-to-order basis because we are quoting in a day at least 10 to 15 tenders. So these kind of prices are getting passed average day basis. not on basis. Only in the case of retail, the price is revised twice a month. But in the institutional sales, where order to main sale is there. Every day, we are quoting in every day, we are quoting on a prevailing market price.

Next question is from the line of Nikhil Purohit from Fident Asset Management.

Most of my questions have been answered. I just had one question. In this institution business and the distribution business, can you tell me the cable versus buyer share in both of these segments?

Major share in the institutional is product cable only. And for the dealer distribution business, there is almost 55% business belongs to buy and close to 45% to 50% in lump to the cable.

Okay. So yes was stronger in this quarter, right?

As I said, almost 45% to 50% we are selling to cable and 50% to 55% through bigger distributors, we are selling or by product.

Next question is from the line of Devesh Chan who is an individual investor.

So I'll just have one to clarify the 9 out stop. So entire social institutional sales in Q3 export increased by around 19%. But the share of the total revenue is somewhat decreased. Could you explain the EHV straight segment strategy. This quarter, domestic sales increased from 115 to double each year. Is where you anticipate the main future tensional growth?

So the institutional sales belongs to the domestic market as well as to export markets. So with the constraint in the capacity if the export is increasing, then the domestic sales to institution will go down. So only that was the reason. Otherwise, the market size in the domestic front is also very strong and an export market will also we are improving year after year. In [indiscernible] power cable because in 2,425, the sale was less. So because of that, in '25, '26, it is increasing. It is showing increasing actually.

Next question is from the line of Ajit Shah from 360 Capital.

Sir, just one question. Could you give a split in volume growth for annual and for 4Q was stable versus [indiscernible] and it...

Sir, [indiscernible] is not available for separate because in our factories of Silvassa and Kinsa, we are making within the same factory, we are making the buyer as well as a [indiscernible]

But would it be directionally right to say that table volume would have outperformed [indiscernible] virus? .

No, the volume will depend on the capacity actually. We were not having the capacity for cable actually.

So this 2% was mainly led by a market is strong.

Market is so strong. Demand is so strong. in our Indian market and in overseas market, whatever capacity we are having, we are able to sell easily. So because our Sanand plant get delayed by 6 months. So because of that, the sales plan from the salmon was not happened in '25, '26. So because of this, we have grown in terms of value because of prices has increased. But in terms of volume, we could have grown only from our [indiscernible] plant actually.

Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for the closing comments.

Thank you very much for joining this conference call. I hope that we have been able to answer most of your questions. Still you have any queries, please you can refer it back to us. Thank you.

Thank you, sir. On behalf of Nuvama Institutional Equities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.