Shriram Pistons & Rings Ltd (NSE: SHRIPISTON) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Unidentified Speaker
Krishnakumar Srinivasan — Managing Director and Chief Executive Officer
Analysts:
Ramakrishnan Seshan — Analyst
Chirag Jain — Analyst
Gokul Maheshwari — Analyst
Radha Agarwalla — Analyst
Preet Pitani — Analyst
Punit Gupta — Analyst
Hrushikesh Desai — Analyst
Anubhav Mukherjee — Analyst
Devesh Kayal — Analyst
Divyansh Gupta — Analyst
A. Sriram Palaniappan — Analyst
Harsh Shah — Analyst
Unidentified Participant
Viraj Kacharia — Analyst
Jainam Madrecha — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to the SPR Auto Technologies Limited formerly known as SRIRAM Systems and Drinks Limited Q4 and full year FY26 earnings call. As a reminder, all participant lines will be the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this conference is being recorded today.
From the management. We have as Mr. Krishna Kumar Srinivasan, Managing Director and Chief Executive Officer. Mr. Mr. Prem Rati, Executive Director and Chief Financial Officer and Mr. Pankaj Gupta, Deputy Executive Director, Head Legal and Company Security Secretary. Before we begin, let me remind you that your disk that this discussion may contain forward looking statements that may involve known as or unknown risk uncertainties and other factors. It may viewed in conjunction with the business risk that could cause future results, performance or achievements to different significantly from what is expressed or implied by such forward looking statements.
I now hand the conference over to Mr. Krishna Kumar for his opening remarks post which we will open the floor for an interactive question and answer session. Thank you. And over to you, sir.
Unidentified Speaker
Sir, you can go ahead. So, can you hear me? So I would request you to unmute your line and please go ahead. Hello, Sam.
Operator
Ladies and gentlemen, we have the management line reconnected so you can go ahead.
Krishnakumar Srinivasan — Managing Director and Chief Executive Officer
Yeah, thank you, Julius. First and foremost, our apologies. The line got disconnected at the time when the transfer was taking place. So first and foremost, good evening everyone and thank you for joining us on our first ever earnings call. After changing the company’s name to SPR Auto Technologies Limited. We sincerely thank all of you who are present here today and for your continued support throughout the year. FY26 was truly a landmark year for SPR Auto Technologies Limited. Our performance in FY26 was exceptional.
With record consolidated total income of Rupees 4571 crores growing by 25% year over year and highest ever EBITDA at Rupees 989 crores growing by around 18% year over year. This strong financial performance was driven by the company’s strategic endeavors and reflect the strength of our business model, the resilience of our core operations and the benefits of our continued focus on execution. All the strategic initiatives that the company has taken in the past few years are yielding good results on a sustainable basis.
This growth was also well supported by a strong recovery in automotive demand, especially in the second half of the year reflecting the industry’s highest sales across all segments. Despite the geopolitical tensions in the tail end of the year, this momentum was supported by favorable macroeconomic factors domestically including the introduction of GST 2.0 Income tax reforms and reduced financing costs. During the year we have achieved several key milestones that have significantly strengthened our leadership position in the auto components industry and further aided to the foundation of sustained growth.
Our transition to SPR Auto Technologies Ltd. Marked a significant milestone in our journey towards becoming a multi product, multi domain auto component supplier in the industry. This new identity reflects our broader strength strategic vision to build a future ready technology led business franchise. As the mobility ecosystem evolves, we remain focused on strengthening our core businesses while selectively expanding into adjacent and technology led opportunities that support sustainable long term growth.
The highlight of the year was our strategic expansion into the automotive, interiors and lighting segments through the successful acquisition of three Indian entities of the Antolin Group. This acquisition not only diversifies our portfolio but also enhances our capabilities in high growth technology driven areas. The acquired businesses have already demonstrated strong performance validating the strategic rationale behind this acquisition. In addition to this, we acquired Karla Intertech at the beginning of the year to strengthen our two manufacturing capabilities thereby supporting the growth programs within the group.
We are actively integrating these businesses with our existing processes to unlock synergies and operational efficiencies that will drive further value creation. We remain committed to continuing our investments to grow and diversify into a multi product domain. Our strategy is to build a broad based automotive technology platform platform that spans various product lines and powertrain technologies. This diversification positions us to capture emerging opportunities across the evolving mobility landscape.
During the year we have invested close to rupees 200 crores in capacity expansion across various business lines, reinforcing our commitment to scaling our operations and meeting the growing market demands. Further, to take care of increasing demand from our customers, SPR Kakata is in the process of setting up a new manufacturing facility at Nimrana and SPR TGPL is also increasing its capacities at its Noida plant. We have also started the phase three expansion from at our SEL Pitampur plant. Apart from the capacity expansion being done at Gaziabad and Patrelli, the commissioning of the Tambeem acquired assets are also progressing well thereby improving our capacity on systems.
All these capacity expansions will only help us in further strengthening our positions with our customers and also meeting their requirements in a seamless manner. All our businesses, the legacy business interior and lighting solutions, the high precision injection molded parts and EV motors and controllers are performing well and are steadily improving in terms of profitability. This reflects our focus on operational excellence, cost optimization and value creation across the portfolio. Notably, powertrain agnostic businesses contributed around 35% of our consolidated total income during the quarter, underscoring our diversified and future ready portfolio.
Furthermore, on account of our multi market and multi product presence, nearly 60% of our business is now not directly impacted by powertrain impacts. This is an important development for us because it reflects the success of our diversification strategy and the strength of our multi technology approach. We are confident that this positive trajectory will continue as we leverage our strength and scale our operations. There are significant opportunities for synergies across the group and we are leveraging each other’s strength to enhance the efficiency, innovation and market reach.
This collaborative approach is a key driver of our integrated growth strategies and and will unlock further value for the company and its stakeholders. To further support our growth ambitions, we continue to invest in newer technologies and capacity expansion. These investments are critical to maintaining our competitive edge and meeting the increasing demand for advanced automotive components and solutions. Our commitment to innovation and capacity building remains unwavering. We are also focused on focusing on developing new product lines across all our businesses.
This proactive approach ensures that we stay ahead of the market trends and customer requirements and thereby enabling us to offer very differentiated and future ready solutions. At SBR Auto Technologies, sustainability is integral to our long term growth strategy and to the manner in which we create enduring value for all our stakeholders. The company’s ESG journey continues to gain strong external validation. We have invested proactively in renewable energy through solar power, reinforcing our commitment to reducing environmental impact.
During the year, our climate and water disclosures were awarded a CDP B rating for 2025 and our greenhouse gas emissions were independently assured that in line with ISO 17029, underscoring the credibility of our sustainability data, we also achieved the Bronze medal from EcoVoice reflecting an improvement in our sustainability ranking and positioning us amongst the top 25 globally 25% globally. We also received the ESG rating of 2, the highest rating in India from DUN and Backstreet which also recognized us among the top ESG performing companies, further strengthening our credentials.
We are TUE Certified, received the Excellence in ESG Award Gold Award 2025 from ACMA and were recognized by CII for significant achievement in corporate sustainability. Taken together, these milestones clearly demonstrate that the company is picking the right, consistent and well governed steps towards long term sustainable value creation. We also remain committed to rewarding our shareholders. In addition to the interim demand dividend of Rupees 5 per share already paid in February 2026, the Board has recommended a final dividend of Rupees 5 per share subject to shareholders approval in ensuing AGM.
This reflects our confidence in the company, company’s strong financial position and our commitment to delivering the shareholder value. Looking ahead, we will continue to pursue a disciplined execution, strategic investment and a sharper operational focus. We are confident that SPR Auto Technologies limited Is now well positioned to capitalize on the next phase of growth in the automotive ecosystem, delivering value to our stakeholders in driving innovation in the industry. Thank you once again for your continued support and I look forward to answering your questions.
I now request the moderator to open the floor for questions. Thank you once again.
Questions and Answers:
Operator
Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone phone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handset while asking the questions. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Ram Shishan from Evans Park. Please go ahead.
Ramakrishnan Seshan
Thank you for the opportunity. Congrats on great set of numbers. Two questions. First on the subsidiary side of things just on Antolin would be keen to understand the details on the current product mix between headliners and other ambient lighting products and also would you like to call out revenue and margins for the three major subsidiaries, Antolin, TGB and Takahata for the quarter?
Krishnakumar Srinivasan
Yeah hi Ram, Basically Antonin has as you are aware we have got we acquired them on 8th of Jan and then post that for one quarter. We have already seen the results. Results have been quite encouraging the demands I have personally visited to all the customers along with their teams and we have got excellent contacts with all the customers and we have been working on various programs for the customers. Basically as you know that we are into headliners, we are into plastic trims, we are into door panels, we are into you know sun visors and also we also supply you know all the lighting solutions, the interior lighting as well as touch panels and you know fairly the we don’t normally give the mix amongst these product portfolios that we have in Mantoulin but we can say that we are well represented in almost all the companies that you can think of in the country and we are representing them for all the product lines and I’m happy to state that the new programs that they are present presently Working on for all the new models that the customers are looking at looks also very exciting and healthy.
Ramakrishnan Seshan
Any update on or probably would you want to call out what would be the revenue and margin for the three subsidies in the fourth quarter? Uncle and ggpl and takahata? Just broad numbers.
Krishnakumar Srinivasan
Margins of the individual entities. Yes sir,
Ramakrishnan Seshan
If that would be possible.
Krishnakumar Srinivasan
Yeah, but normally, you know, we don’t give that breakup but I can tell you that it is in the high twenties and certainly amongst all the companies we have, we are having similar kind of benchmarks in terms of the targets for our overall profitability targets. And I’m happy to state that post our takeover even Antolin has started showing some good improvements and we are, we are confident that we will improve the margins and this will all come from various synergies that we are planning within the group and we expect that with all the actions that we are taking, the group profitability will be maintained at more or less the kind of levels that the standalone company is maintaining.
Ramakrishnan Seshan
Thank you, that’s very helpful. The second question was on the standalone operations, could you give us probably a broad mix between the PVC two wheelers and non autos and what would you like to call out any special areas of growth in the next couple of years in the standalone business? Where do you see caption from here on?
Krishnakumar Srinivasan
Yes, legacy business also has done exceedingly well last year and as you know there was a fantastic growth post, the GST 2.0 that was announced sometime in October and post that we have actually had a very healthy domestic requirement coming from almost all our customers. There’s been overall growth has been in the region of around 10, 11% and if you really see the growth has come across all segments whether it is two wheelers, three wheelers, tractors, even standalone gensets and also all the commercial vehicles.
So frankly it has been a very healthy growth story. Normally otherwise we do have mix of one industry going down and one segment going down and the other segment doing well. But luckily this time all the segments have actually fired and all done. So they really helped us to improve our sales on the OE side.
Ramakrishnan Seshan
And with respect to outlook over the next two years, sir, any special areas of growth you would want to call out?
Krishnakumar Srinivasan
Yeah, so basically we observe that almost all our customers are working on multiple hybrid platforms and we are present with them in multiple programs where we are supporting them for completely redesigning the engine. Because for a hybrid the engine is redesigned completely and in many cases it is with turbocharger and some without turbocharger. Application and all that requires a different kind of solution. And we are happy to state that we are working on programs which are going to see the light of the day maybe in 2029, 2030.
So as I see it, we have a very healthy pipeline.
Ramakrishnan Seshan
Got it. Sir, thank you for answering my questions. Thank you.
Krishnakumar Srinivasan
Thanks a lot, Ram.
Operator
Thank you. The next question is from the line of Chiral Jain from MK3. Please go ahead.
Chirag Jain
Yeah, thank you for the opportunity and congratulations for the new identity. Sir, a couple of questions. One, in terms of the outlook, you mentioned that it is quite healthy. Can we discuss about any potential impacts of commodity or effects or maybe energy costs going up and probably even labor shortages that has been happening in the industry. Would that have an impact in terms of our performance over the next few quarters?
Krishnakumar Srinivasan
Yeah, yeah, you know, we do. As is known in the industry now, you know, with the current geopolitical situation existing in the Middle east, there is an impact on commodity. Commodity prices have been rising up right from the last quarter and we have seen that, you know, that aluminium prices have gone as high as 40% higher than the base rate that was existing at that point in time. And most of the other areas also the commodities have increased, whether it’s elements or whatever is used for alloying on the side.
And then on the energy also, more or less, we see a situation where the energy prices have been maintained in the country and we hope that it will continue to maintain. But we did have some issues with regards to LPG supplies and other things which has been normalized at this stage now. So we do not see any major issue coming out of the energy side. And as far as labor is concerned, we did have the impacts coming out of the labor issue that started in Noida and in Ariana and then post that. But however, we are happy to state that our organization was not affected by that and we were able to maintain because we have always been paying much higher than the minimum basis.
So from that standpoint we did not have any issue with the labor. So overall I would say that commodity prices did have an impact. But we are back to back covered from our commodity standpoint with our customers because 100% of the commodity changes are backed up by the customers. And we go back to our customers and claim. But of course we do have a gap of quarters delay that happens because of the formula that we normally use. Because in the pipeline we expect all the stocks and other things to remain.
There is always that small gap that is always there.
Chirag Jain
Understood? Understood. So by and large energy and labor is not a major issue and commodity even though it has gone up. But it’s a pass through for us. As for the arrangements that we have with the OEMs.
Krishnakumar Srinivasan
That’s right.
Chirag Jain
Okay. And also in terms of expansion, you mentioned most of your businesses are going through expansion, be it Akata or dgtn. Can you elaborate in terms of what could be the extent of expansion that we are doing? Is it like we are adding 30% or 50% of the revenue potential that we have? As of now? That would be quite helpful.
Krishnakumar Srinivasan
Yeah. Individual businesses have individual needs. For example, you know, for example, you might have heard that in two wheeler the anti skid braking system has become a necessity as a result of which, you know, there is a renewed demand in terms of technology from the. From the, you know, brake manufacturers who are actually providing this kind of system where a new item has to be injection molded with a very, very specific technology. This new businesses have been won by our plastics division and similarly there are many such small components which have to be developed primarily because of the change in technology that is required by our customers.
So we have been lucky enough to say that we have got recognized by customers for the technology footprint that we bring to the table and that we are able to support their requirements very seamlessly. That’s point number one. Now from a, you know, from our legacy business, I already explained the previous question that we are working on multiple programs for hybrids as well. As you know, there are also a lot of requirements with regards to some of the engine change that is happening because of the customers having realized that all this powertrain technology will coexist for some time.
And because of that there is a renewed focus on increased supplies and increased solutions which we are providing to our customers. And thirdly from our interiors business, I think there are multi programs on which we are working including also we are trying to enter into. We are trying to bring in some new technologies on the table to the customers and a lot of discussions going on on those fronts in our business for the plastic injection molding. We are now almost, you know, decided that we’ll have to go in for an expansion taka per ningana effective where we’ll be putting up another phase three expansion that we have to plan primarily to meet the increased demands for plastic precision injection products.
So these are the number of activities that are going on and I think it’s a very exciting time ahead.
Chirag Jain
And just lastly in terms of Antoni, would you like to give any number in terms of margin expiration over the next. Let’s say two, three years. What kind of margins that we can aspire for?
Krishnakumar Srinivasan
I think I mentioned it in the previous question that I expect all my businesses to be performing to close to our if not same, but if not better but at least close to our margins that we perform in the standalone company. Though it’s not possible to reach that kind of a level overnight. But we are working on a number of synergies and possibilities to see if we are able to come to those levels of. I hope you are able to hear me.
Chirag Jain
Yeah. So this aspiration is obviously individual businesses moving towards standalone profitability. I thought the overall subsidiary performance moving towards standalone.
Krishnakumar Srinivasan
Yeah, subsidiaries are already at those levels except Motors Controllers and the interiors business. Motors controller is a, you know, is a new startup as you already know. But even then that organization standalone has been now, you know, EBITDA positive and it’s really growing very well.
Chirag Jain
That’s it from my side. Thank you and all the best.
Krishnakumar Srinivasan
Thanks a lot. Thanks a lot.
Operator
Thank you. A reminder to all the participants, please restrict yourself to two or three questions per participation. The next question is from the line of Gokul Maheshwari from Avirada Capital. Please go ahead.
Gokul Maheshwari
Yeah, thank you for the opportunity for the Endolin business. Can you quantify how much were the three entities on a combined basis prior to your acquisition paying royalty or technical fees to their parent and and also what are we paying any such fees to get access to the technology of the acquisition?
Krishnakumar Srinivasan
Yeah, Google the you know, I think I answered it answered this question in the previous call but we are more or less, you know, as I said, you know our the technology side, on the technology side we have signed a TLA TCA as we call it technology agreement which is giving us a seamless access to all the technologies that are there within the INTU link for a nominal royalty payment that will be paid otherwise. Most of the technologies are available to us from a standpoint of the usage with the customers and for the very clearly for an identified area of India and we also have from a EBITDA standpoint, from a requirement of an EBITDA standpoint we have the company was as you already know, they were in the late tens or let me put it this way, between 9 or 10% EBITDA which we are expecting it to start improving once we bring in all the synergy activities that we are bringing in.
We already see the improvement in the first quarter and it has started becoming to very healthy levels. So thank you very much.
Gokul Maheshwari
But is this what we are paying? Is More than what the antolin has in the previous account paying to their parent.
Krishnakumar Srinivasan
Those details we don’t give normally. But it is in line with whatever was there in the market requirements in terms of Normal Technology fees that we pay for all the others. We have got five technology partners as you know and you know, with all of them, whatever kind of technology fees we pay is more or less in line with that.
Gokul Maheshwari
Okay. Secondly, just on the capital allocation, KK sir, if you could just elaborate the reason for doing a QIP because I understand that your mandate is around 750 or crores or so, but that is around 0.25 net equity which is not much. So what is the reason for raising thousand crores or plans to raise thousand crores for QIP loans?
Krishnakumar Srinivasan
Yeah, you know the QIP has not been raised for reaping the loan. That’s not our the thing as you. As you know that it is. We are already operating in a low debt equity ratio. But we are continuing. We are still hungry to grow our business and we are still hungry to look at other options. And there are some interesting options available that we are working on. Nothing has been formalized. So for growth, both in both areas of our internal growth as well as all the other growth through acquisition, we will continue to be hungry and looking out for options.
So that is why we are. It is necessary for us to look at options of raising funds.
Gokul Maheshwari
That is very clear, sir. Thank you so much and all the best.
Krishnakumar Srinivasan
Thanks a lot.
Operator
Thank you. The next question is from the line of Radha from Motilal. Please go ahead.
Radha Agarwalla
Hi sir. Congratulations on strong performance and the sharp turnaround in 19 digits within the first quarter of.
Krishnakumar Srinivasan
Can you speak a little loudly please?
Radha Agarwalla
Is it better now?
Krishnakumar Srinivasan
Yeah, yeah, it’s better.
Radha Agarwalla
So my first question is, sir, headliners contribute the largest portion of revenue for ANT in India where the company along with Krishna Marathi is already holding a very large 75% market share. So given the high market share and limited aftermarket and export opportunity in the segment, what do you see as the key growth drivers for the industry outperformance going forward? Would the focus be more on scaling up other product categories within Antilin or is there a play on minimization or any other growth plans that you can highlight?
Krishnakumar Srinivasan
Yes. So Radhab, actually what happens is in Antolin, headliners classically have been the leading product as you rightly said. But over a period of time now we have a good mix of headliners, plastic trims, plastic components, door trims and also interior lighting along with sun visors so we have a fairly good mix amongst all the product lines. And I must say that the growth is coming across all segments with our customers. And luckily for this, this is an animal where, or I should say that Headliner also is an animal which actually continuously undergoes change as the vehicle changes.
So any new model, it has to have a different headliner and for any kind of different applications with Sundoop, without Sundoop, etc. Also the headliner keeps changing. As a result, the number of Orion and number of requirements also goes up with every new model. So we are working on a number of new platforms and it’s a very busy time as far as Anton is concerned in terms of the newer growth into multiple models across the country. So there is going to be continuous growth and we expect that we will continue to grow on all the product lines that we have with Amentol.
Radha Agarwalla
That’s good to hear. And second question is sir, in previous calls you had highlighted that the total addressable market for the automotive segment of TGP and Takahata business is somewhere about 3500 crores. Wherein you had highlighted that the company’s aim Is to reach 20 to 30% market share. So what are the levers for gaining market share in this competitive business? And secondly, by expanding your presence in industrial and medical components, how will this 3500 crores time increase and how much market share are you expecting in this non automotive segment?
Krishnakumar Srinivasan
Yeah, so basically what happens is this precision auto component industry is also undergoing a lot of change and people realize that there’s a huge amount of technology that is required for some of the newer areas. Like I just said in the previous question that for the two wheeler, just for the anti skid braking system, we have specific components which goes into the anti skid braking system which requires a very, very different kind of molding technology and very high precision technology. So this again is a new business that we have won and it has really helped us to put in our new investments that we are planning to put in Takata.
Similarly, even in tgpl, we are working on new areas as far as precision injection molding is concerned. So the market is continuing to evolve. It’s not that the market is going to remain static at 3500. My own impression is that this market will continue to evolve as newer technologies are demanded by the customers and precision molding components are the ones which get immediately affected in terms of the requirements. So as a result, I think with the various programs that we are working on, we already see that we are either improving market share or improving the volumes.
And as a result we have to continue to put in investments to grow that. So we will continue in our plastic division that way. And going forward coming to the newer areas of business that we have within the plastics portfolio also we see a lot of possibilities for us to supply within the crude. For example, there is a lot of plastics requirement by Intolin which be could can be supplied from our plastic division, other plastic solutions. So there will be a lot of synergy that we see between the various companies and this will really help us to grow the business equally across all the segments within the plastics.
Radha Agarwalla
And the last question is. So Antonin already operates as a Tier 1 system integrator now along with TGPL and Tata. Is there a scope to further deepen this integration by combining complementary product capability into larger interior solutions for oem? Can this become a key differentiator or a USP for the company and hence margin drivers going forward
Krishnakumar Srinivasan
Within Enterlin itself. This capability exists today even within Enterlin India. And you know, so we call it more as SPR Auto Interior Solutions now. And within this SPR Auto Interior Solutions we are finding that there are multiple possibilities for us to combine not only headliners but along with headliners a lot of other ancillary components that needs to be delivered to the customer. In fact for many of the customers we give a very integrated solution with all the assemblies done. So there is a lot of possibilities for us to do it for many, many other customers and we are working on it continuous.
Thanks. Rather. Thank
Operator
You. Thank you. The next question is from the line of Pete Pitani from Incred amc. Please go ahead.
Preet Pitani
Thank you for the opportunity sir and organization for good setup number. So just wanted to ask on QIP of them what will promote nine promoter would be participating in the QIP and what is the minimum stakes which would like to continue in the company?
Krishnakumar Srinivasan
Well, in QIP’s promoters cannot participate, you know, so very clearly they will not be participating. But you know that is fine. You know, we, we whatever we want to raise I think should be possible for us to raise for them. And they go by with the business needs and they are completely supportive of growing the business.
Preet Pitani
So is there any minimum stake that someone would like to have at least in the company or something like that?
Krishnakumar Srinivasan
Not that I know of. Nothing that has been specified.
Preet Pitani
Thank you. I’ll turn back in again.
Krishnakumar Srinivasan
Thanks. Thanks.
Operator
Thank you. The next question is from the line of Puneet Gupta from Girig Capital. Please go ahead.
Punit Gupta
Good afternoon sir. Congratulations on A good set of numbers. Just wanted to ask when do we plan to repay the debt we’ve taken for the admin acquisition? And if you would also answer what specific segments are looking to break into for mna?
Krishnakumar Srinivasan
What is the second part of the question? I didn’t hear it properly.
Punit Gupta
Basically like what other segments of auto companies you plan to break into? Foreigners. If you want to acquire companies. Which segments of auto. Yeah,
Krishnakumar Srinivasan
Yeah. So as far as the NCDS are concerned we have two time frames. One is for 18 months and 1,500crores is for 18 months and find their closest for 24 months. We plan to, you know, repay it on time so there is no such ideas of prepaying it. And whatever we are QIP’s we are raising, it’s all for growth reasons including into, you know, our internal growth as well as by growth by acquisition.
Punit Gupta
Yes sir. I just wanted to understand which segments do we want to apply? Like if you want to do more auto components. We are looking at various options. It will be difficult for me to give that at this stage but we have most of the options that we are looking at. And you have seen in the past five, six years that we have done acquisitions over the last six years. It has always been with technology and in technology areas and fairly with a headroom to grow. So it’s primarily with that clear option that wherever we see a good possibility for us to continue our growth aspect, we want to ensure that it is earning accretive for us overall. And based on that we continue to look at options. Understood. That’s it. That’s all I have. Thank you.
Krishnakumar Srinivasan
Thanks a lot Sunit.
Operator
Thank you. The next question is from the line of Rishikesh Desai from Motilal Oswal anc. Please go ahead.
Hrushikesh Desai
Yeah, hi sir, this is Ali from Motel Olswal Mutual Fund. Just following up on the question the previous participant asked you regarding this growth. You mentioned that you know this is expense qip that you are doing is for growth. If you could just share some more color in terms of, you know you mentioned this is for bone expansion as well as inorganic. So you know, if you could can just outline some more details regarding how much you plan to use out of this for organic, how much for inorganic?
Is there something in more advanced stage and you think possibility that this could probably get fructified maybe in the next one year and any more details you can share related to them?
Krishnakumar Srinivasan
Yes. So normally we don’t give these details because obviously because you know that we also have huge competitors and Everybody is tracking us. So at this stage it will be very difficult for me to give these kind of details. But rest assured, it is, you know, there are very strong plans and based on that only we have decided to go in for this qip. Otherwise the kind of generation the company company has, you know, we don’t, we didn’t. And with the kind of debt equity we are, it is not required for us to really raise.
Hrushikesh Desai
So this will be entirely for inorganic, right? Or also this could be used for any organic large expansions?
Krishnakumar Srinivasan
No, we are looking at both because overall we have to see as far as the company still has good amount of funds available in the. In the. And that’s the thing. So the next net debt is going to be a much lower figure than the thousand crores that we have taken as debt from NCDs. So even after seeing that, you know, for both organic and inorganic, we need future for our future growth.
Hrushikesh Desai
Second question, sir, is on margin. You mentioned that you know, while your acquisition targets that you have recently taken lower margin close to about 10, 11% versus your standalone margin at 20% plus. And your aim is to get the subsidies also closer to your standalone margin. So any roadmap you can give, how much time it should take to achieve those targets, is it probably next two, three years or it could be much longer. And what are the levers that you have to improve margins in your subsidiary?
Krishnakumar Srinivasan
It is primarily, it’s not that I can give you a clear roadmap on this because we are working on number of competition combinations. But one thing I can tell you that with introduction of newer technologies, with, you know, some of the synergies that we are looking at, with lot of insourcing that we can do for components, there are a lot of possibilities to improve our margins and we are working on that. And I think the roadmap is quite clear for us in terms of how we want to achieve it. But it’s going to take some time to clearly lay it out.
A lot of them require customer approvals. We have to get it validated from customers. So all this takes a lot of time. So we can’t exactly give you the timeline, but the direction is quite clear.
Hrushikesh Desai
Okay. Would it be like a three year plan, sir, or it will be longer?
Krishnakumar Srinivasan
Well, I expect it to be even lower than three years. You know, my demands are lower than three years. But then we can’t say how it will go. But you know, we’ll have to look at it how it comes.
Operator
Sorry to interrupt. Rishikesh sir, please rejoin the queue for more questions. The next question is from the line of Anubhav Mukherjee from Persistent Capital. Please go ahead,
Anubhav Mukherjee
Sir. Thanks for the opportunity. So my first question is that now that it has been a few months that we have acquired the Antwerp entities, can you provide a qualitative assessment of what are the areas in which we can help them? Will it be like better 16 of margin?
Krishnakumar Srinivasan
Yeah. Really finding it difficult to understand your question because voice is having an echo and I’m not able to understand the question. Well,
Anubhav Mukherjee
Is this better? Hello?
Krishnakumar Srinivasan
No, it’s still.
Operator
Can I request you to use your handset, sir?
Anubhav Mukherjee
Okay. Is this better now?
Krishnakumar Srinivasan
Yeah, it’s slightly better now, yeah.
Anubhav Mukherjee
Okay. Sir, I was asking that now that it has been like few months that we have acquired the entering business, so can you provide a qualitative assessment of what are the areas in which as a parent company we can help them. Will it be like better sourcing to improve gross margin or cost control or new customer addition? Some qualitative perspective
Krishnakumar Srinivasan
In various various areas. In almost all the areas, for example, SPRL has been is well known in the industry for the last five decades and it’s well recognized, well respected amongst all the customers. We have excellent relationships with all the OEMs and also with many of the aftermarket customers. So we can help in various activities with regards to growing their sales and at the same time looking at helping them on various synergy activities across the group. With regards to to almost since we are in the same line of business as an auto component supplier, a lot of things that we can do together and we can also leverage a lot of things from their side because we have an excellent team in Antolin, India and I think that they only add a lot of value to the overall group and we can leverage that and we will be able to really see that we are able to grow together.
Anubhav Mukherjee
Ankar, like from the investor presentation, we saw that the exports have been flat for us since FY24. So can you share some growth perspective for the exports in the coming financial year or over next two, three years?
Krishnakumar Srinivasan
Yeah, so it’s no big surprise that exports are really in a tough situation with all the kinds of, you know, with the Ukraine war continuing, with the kind of situation that exists in the middle, in the European region, there is hardly any growth. There is in fact degrowth and in terms of, you know, the kind of situation that has now started because of the Middle east war. So obviously all this puts a lot of restrictions to not only the entire supply chain but also in the sentimentalities of all our customers with regards to procuring goods from various places.
So obviously there is a lot of issues with regards to the overall export market. But the good part is that even though the markets have become tougher, we have been able to more or less retain our export business at the same level as last year even though the markets actually went down badly. So that shows the amount of new areas that we have been able to enter into the new product lines that we have started and been able to on focus newer customers whom we have been able to develop. This process is continuing and I think if everything goes well we should be able to further grow our exports business.
It’s not that we are going to reduce our exports business. You can be rest assured that we continue to grow that.
Anubhav Mukherjee
Thanks. Thank you. That’s all For my point.
Krishnakumar Srinivasan
Yeah, thanks a lot.
Operator
The next question is from the line of Devesh Kayal from Boring amc. Please go ahead.
Devesh Kayal
Yeah, you mentioned that we are setting up a new facility at Nimdana and expanding capacity at the existing Maida plant. So overall sir, across facilities, what is our Tripex tank for FY27?
Krishnakumar Srinivasan
You know, last year as I said, you know, we invested almost close to 200 crores which will give some kind of increased businesses which we have already taken some a year in advance and then all that businesses start getting mature over the next one or two years. So all the investments that we have to do in the automotive business is always the maturity comes after maybe two to three years. So we will continue to invest in those kind of, you know, those kind of figures with regards to the kind of investments that we have to do over the next two, three years.
Devesh Kayal
Okay, so try to assume we’ll do around 200 over next two to three years like every year,
Krishnakumar Srinivasan
More or less.
Devesh Kayal
Okay,
Operator
Thank you. The next question is from the line of Divyan Shungupta from Layton pms. Please go ahead.
Divyansh Gupta
Hi sir, I hope I’m audible. Yeah,
Krishnakumar Srinivasan
We can hear you.
Divyansh Gupta
Yeah, so couple of questions. So right now you mentioned 60% is let’s say powertrain agnostic. Is there a target number for the next two, three years? We want let’s say the legacy business to reach a certain number.
Krishnakumar Srinivasan
Well, frankly now I’m looking at more or less maintaining this kind of a stand because it’s a fairly good kind of a mix. And even with this kind of a situation, I think the legacy business is never going to become zero. And neither are we hinting at that. We are looking at in fact most of our Customers, as I said, will be the last man standing for the ICE product. And we don’t see across all customers we are seeing continued investments for development of new engines for hybrid requirements. And as a result we are continuing to in fact put more money into the legacy business also as we are putting into the other areas.
So more or less this kind of a trend will continue. And I think it’s a very good mix that we have now in terms of even if we just look at growing the aftermarket business as well as the exports business, we have a good huge Runway that is possible for us to do. It’s only that we have to keep on adding capacity. So we have to be very careful in the overall capacity enhancement plan that we have across all the companies so that we don’t over commit on one and under commit on the other. So we are balancing it very well and trying to see how we can continue to have the growth story amongst all of our subsidiaries.
Divyansh Gupta
That also means that let’s say any future acquisitions, even aye business acquisition is something that is at play because otherwise if we acquire non or other power agnostic business and this should ideally come down. So is that.
Krishnakumar Srinivasan
Well we at least I don’t see any immediate plans to acquire any you know, business on the ICE products because we have just recently done the asset deal with Sunbeam and that has actually improved our capacities as far as you know, pistons are concerned and engine wells and this we are going also organically with regards to the investments and we continue to invest in those areas.
Divyansh Gupta
And so second question is regarding EMFI M fee. So with all of this Middle east tension and let’s say at least in Q3 we said we expect five to seven times ramp up. Are you seeing an accelerated, even more accelerated approvals from clients because of let’s say people saying that evk let’s buy EV instead of ICE because of fuel prices or availability. And the second associated is I was reading that we have some partnership with Lingbo and Greatland but my understanding these are more two wheeler and lower power capability.
Do we have Anything planned for four wheeler EVs
Krishnakumar Srinivasan
For both high voltage systems. You know we are operating on, you know, low voltage as well as high voltage, less than 300 volts as well as more than 800 volts up to 800 volts. So we have all the systems that are required on our motor and controller facility. Now with the new setup that we have in Coimbatore is a state of art plant, one of the best that you’ll see in the country and you know, with all the customers that we are working with, CL is clearly see that most of the customers are now approaching us not only because of the facilities that we have but also because of the technology that we bring on the table, including some of the newer technologies like hairpin winding and all that.
So we have lot of possibilities being worked out with our customers at this stage.
Divyansh Gupta
Got it. And so if I may ask last question because of time, If I look at our exports of Europe and North America, they have degrown. While I understand Europe, let’s say Europe plus one was a. Is a wave. But any color that you can give on by South America or Middle east because Middle east only, let’s say marches then let’s say all the fighting started but the fall in revenue has been much higher. So any color you want to give on the export market, what happened basically there?
Krishnakumar Srinivasan
No, as I said, we have the market is primarily the end markets are badly affected in Europe as well as across the Middle east as well as America. So it is not that the markets are going there and as a result we do have a small dip in in those regions. But if you really see our overall performance has been even better than FY25. So we have more or less been able to retain our export volumes and yes, we did not have a phenomenal growth. But certainly with the current market situation that is existing in the Middle east as well as in Europe and with all the tensions that is there on the supply chain, this is a fantastic number in terms of the overall growth in exports.
Divyansh Gupta
But basically no market share loss.
Krishnakumar Srinivasan
No, no, absolutely nothing.
Divyansh Gupta
Thank you. Thank you sir.
Operator
Thank you. A reminder to all the participants, please restrict yourself for one question. The next question is from the line of a Sriram from Palaniyapan from ITOT bms. Please go ahead.
A. Sriram Palaniappan
Am I audible, sir?
Krishnakumar Srinivasan
Yep, Sriram, we can hear you.
A. Sriram Palaniappan
Thanks for the opportunity. So in previous calls we mentioned that the classic position is a niche segment where an OEM sticks with one supplier for one item. If that is the case, were we increasing our revenue apart from our existing business? Would a new OEM switch to us? Or is it the increasing orders from existing customers what will drive our revenue in this segment?
Krishnakumar Srinivasan
Yeah, I think I answered it in the previous question that was there Mr. Sriram, that this is coming. You know the plastic injection, precision injection molding facilities require. The growth comes more from new technology additions. Like for example it has become mandatory now for the anti skid braking system two wheelers. This requires a completely different product that has to be designed and planned for some of the Indian OEMs or rather most of the Indian OEMs. And it requires a huge amount of investments and capabilities to be built on technology as well as on volumes.
So both the sides we are investing and we are seeing that we are able to grow in that area and precision injection molding will not, you know, we don’t expect, as I said in the previous calls, also we would expect that we want to retain our margins and we don’t want to become a low margin, high volume business. It’s going to remain a lead segment and is going to, that is how it’s going to contribute to the overall growth of the overall franchise.
A. Sriram Palaniappan
Thank you, Mr. Siva.
Operator
Thank you. The next question is from the line of Harsh Shah from Seven Rivers. Please go ahead.
Harsh Shah
Yeah, good afternoon, sir. So my question, my question is on the standalone, the legacy business, would it be fair to assume that 11 12% growth would kind of be a matured or a maximum growth that we can do in this business given that OEMs are going at single digit? And also in Q4, have we lost any market share? Because a lot of OEMs have reported more than 18, 20% kind of sales volumes if you can highlight on that.
Krishnakumar Srinivasan
No. So as far as the legacy business is concerned, we always believe that we should outgrow the market. So if you really see the overall market has grown anywhere between 6 to 7% if I do a combined weighted average kind of a growth for all segments of the business, whether it is two wheeler, four wheeler tractors, commercial ratios and everything. So but against that backdrop, we have grown at around 11% and we have outgrown the market, we outgrown the business and we continue, we. My aim is, and my push to the team is always to outgrow the end market.
So we continue to do that. As far as the end markets are concerned, as far as the OEM coming to quarter four, as I said, we have, I don’t think there has been a lot of volume play that has happened between the two quarters, the quarter of October to December and December to. So while the end markets might have been better for the OEMs, but you have to see it from an overall year perspective because our supply chain actually works on the world supply chain. So while they have probably done 6 to 7% overall for the year, we have done 11%.
That is how you have to see it in the quarter. Basically what happens is they did have good volumes in the pipeline, in the stocks which happened at the Post end December and they have continued to sell those volumes and as a result they had increased sales for that quarter for those volumes we have already supplied in the past quarter.
Harsh Shah
Okay, okay. And a lot is happening on the EV side. I mean, especially geopolitical issues. Just a follow up question. Just a follow up question. Yeah, yeah. So on the EV side because of all the geopolitical issues. And then recently the government has notified new category norms, revised ones and, and even then the government has banned registration of new ICE vehicles from April 2020. So a lot of activity is happening on, on this EV or low emission side. So how do you see the industry panning out after FY 2028?
I mean, with your discussions with the OEMs, would EV penetration start increasing dramatically after 2028? Or hybrid would be a better middle ground for them to grow. So if you have to hazard a guess, I mean say 20, 30, 31 will be penetration of EVs would be higher or hybrid vehicles would be higher.
Krishnakumar Srinivasan
Well, you know, frankly, many of the people still term hybrid vehicles as EV vehicles. So please do not when people say it is EV or it is tending towards EV if they also include the hybrid vehicles in that. And if I look at all the programs that we are working on and all the customer OEMs working, working on various programs, they continue to work on, you know, many of the hybrid programs and you know, there are newer engines being developed by the customers. I have always been maintaining this and I again call this off still that, you know, we are not as a, as a country, we are not fully geared up to service the, you know, the overall infrastructure requirements that are there for a full EV kind of end play, full ev, base ev.
Whereas it is going to be a combination of all powertrains existing. As I said, we will have power plants from coming out of cng, coming out of other biofuels and also coming out of ethanol blending. There is a possibility that the ethanol blending may rise from the 20% to maybe 85%. So there are various, various possibilities that are being looked into by the government which will in some way or the other also improve the consumption or reduce the consumption of gasoline and diesel in the country.
So our personal opinion is that there will be multiple powertrains coexisting and we have to be present in all the powertrains. Luckily for us, we are in the switchpod that we supply to both ends of the market, whether it is the end the DSE business or whether it is the new EV business. And we are well positioned to cater to the demands in both the sites. So from a, you know, from say 2030 perspective, we continue to maintain even after all the current situations. If I include hybrid as part EV and part ICE business, we have to look at it from a point of view that the penetration overall from a number of engines being made and number of electric motors being supplied and look at the total business.
I still think that the EV business will be anywhere between 15 to 17% penetration by 2030. But this will be at a backdrop on a CAGR growth of around 6%. If I look at 6% growth over the next four years, we are looking at a 24, 25% growth in volumes and penetration of 15%. Still, I’ll be making more ICE engines or ICE related vehicles including hybrids by 2030, 2031. So still don’t see any major issue in those kind of things. So we continue to work on all the areas and continue. I think the most important part would be to see how we can continue to grow the volumes and all fronts.
Operator
Thank you. The next question is from the line of Sahil Jain from Ashwa Management Services. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. Just wanted to ask one question answered. But according to the new labor laws and the increase in business, how will there be an increase in the low cost? I joined. Hello,
Operator
Please stay connected. Sir, the management line has got disconnected. Please stay connected. We’ll connect you. Ladies and gentlemen, we have the management line reconnected. Mr. Sahil, can you please repeat your question? Sorry about that. Thank you.
Unidentified Participant
Yeah, sure, sure.
Krishnakumar Srinivasan
Yeah, sure. Yeah, sorry. You know I. I really don’t know what happened but you know, line is getting disconnected, there’s some issue. But anyway we are sorry about that and please go.
Unidentified Participant
That’s completely fine sir, thank you for the opportunity and sorry, it’s a repeat question but I just want to ask that according to new labor laws and the increase in basis, what will be the impact on our employee cost and the productivity across plan and how will we mitigate these risks going forward?
Krishnakumar Srinivasan
Yeah, I think I answered this question in the last call that we had based on our last quarter results. But I’ll repeat again, we have had an impact because of the wage code and as I said this is a part of, you know, this is an impact which has already been considered in the financials. It’s to a tune of, you know, standalone is almost to a tune of around 23 odd crores and consolidated is around 27 odd crores. And all of this has been considered in both our consolidated Results as well as the standalone results and even post that I think we have maintained a good run rate on our margins.
Unidentified Participant
Understood sir. Thank you. All the other questions, thank you so much.
Krishnakumar Srinivasan
Yeah, thanks.
Operator
Thank you. The next question is from the line of Viraj from Simpl. Please go ahead.
Viraj Kacharia
Yeah, thanks for the opportunity and congratulations on really good set of numbers and a very challenging environment. So there’s two questions I asked. One is, you know if I look at quarter four, I understand export has been weak for us but if I look at the standalone business, any color you can give in terms of how the each segment has done the domestic oem, the aftermarket, the non auto business, you know what kind of a growth trend we have seen in quarter four in the year gone by.
Krishnakumar Srinivasan
Yeah, see the export business has grown only by around 1 1.5% primarily as you can see it’s primarily because of the external environment. We have not lost any business share. And as far as domestic and Optima are concerned both have registered a fairly even kind of a growth of almost close to 10, 11%.
Viraj Kacharia
Okay, got it. So and second question was, you know you did give some color in terms of the margin trajectory for you know, improvement for the group of businesses. But would it be right to think that a large part of the improvement would be driven by factors which are internal to us other than external? You know I think of new product or price division for customers.
Krishnakumar Srinivasan
No, I think it is going to be a combination of everything. As I said, you know it’s not that, you know we can, we have to work on number of areas, we have to work on customer approval, we have to work on so many things based on which we will be able to improve the margin. So there are a lot of actions we planned and hopefully it will all give us positive results.
Viraj Kacharia
Got it. Thank you very much and good luck.
Krishnakumar Srinivasan
Thanks a lot Viraj.
Operator
Thank you. The next question is from the line of Jainam Mitrecher from C9 Family Office. Please go ahead.
Jainam Madrecha
Hello. Thank you for giving me the opportunity. So just wanted to understand like you said there is new capacity expansion on the Takasa as well as TGPL side. What sort of capex are we going to do on that side?
Krishnakumar Srinivasan
I think I already answered this question that we are continuing. We are putting up a phase three extension in Takata on the land that we bought at some point in time, almost I think two years back. We are building up a new factory there for manufacturing again very related products which is precision plastic injection molding. And similarly we are also expanding our Facilities into gpl, where we are putting up extra facilities for growth areas.
Jainam Madrecha
Okay, but like, can you quantify the CAPEX amount?
Krishnakumar Srinivasan
Well, individual capex, as I said, overall, all put together, we are looking at a CAPEX figure which is similar to the kind of figures that we have already invested last year and going forward also next two, three years, we will have to continue to do those kind of investments.
Jainam Madrecha
Understood. Okay. And on the acquisition side, I wanted to understand what are the minimum sort of return levels we would be targeting in whatever new acquisitions we do and what sort of peak valuations are we comfortable when we go about, like, going for the acquisition of a company?
Krishnakumar Srinivasan
I think very clearly, more or less, we have to go as per whatever acquisitions we have done in the past. Over the last five years, we have done five acquisitions. It is more or less. You can see the kind of, you know, multiples we have given and multiples we have worked on and we, you know, we look at. But at the same time, it is important to note that we don’t only go by multiples. We are by the margins they make today. We go by the possibility of how we can work together to use the synergies with the group and be able to improve our businesses overall.
So there are multiple. We look at. It’s a very, very detailed exercise and it’s not going to be just one odd valuation or one odd, you know, per capita numbers that will drive this kind of a decision. We also look at a lot in terms of the technology, and we also look at how that technology play will be there in the future. And we do a very detailed exercise on that.
Jainam Madrecha
Yeah, those are my questions. Thank you.
Krishnakumar Srinivasan
Yeah, thanks, Jaina.
Operator
Thank you. Due to time constraint, we take this. That was the last question for the day. And now hand the conference over to Mr. Krishna Kumar for closing comments.
Krishnakumar Srinivasan
Yeah, so once again, thanks for a great set of questions. I think that’s been really invigorating and I would say that, you know, if you have any more questions, please do write to us to our secretarial cell and we will ensure that we answer you straight. Specifically with regards to, you know, ensuring that you all get satisfied with the answers that we get. And with that, I again, once again, thank you all for joining us today and for asking such valuable questions. Your engagement has been, you know, has really enhanced our discussions today.
We are confident that the company is very well positioned for the next phase of growth. This confidence comes from the strength of our teams, the trust of our customers, the support of our partners, and the progress that we have made over the last years and all the support that we get from all our stakeholders, including many of you who are there in the call today. And we hope all your queries have been answered. In case of any unanswered questions, please do reach us to our investor relations partner at DNY or to our secretary itself.
We’d be very happy to answer your questions. So thank you once again for joining the call and look forward to continuing the growth story that we have for SPR Auto Technologies Limited. Thank you so much.
Operator
Thank you. On behalf of SPR Auto Technologies Limited, formerly known as SRIRAM Prestons Rings Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Krishnakumar Srinivasan
Thank you.