Alicon Castalloy Limited (NSE: ALICON) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Vimal Gupta — Group Chief Financial Officer
Shyam Agarwal — Chief Marketing Officer
Analysts:
Unidentified Participant
Mayank Vaswani — Analyst
Jyoti Singh — Analyst
Yash Dalal — Analyst
Preet — Analyst
Devang Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Alicon Castell Oil Limited’s earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after presentation concludes. Should you need assistance during the conference call please signal an operator by pressing Star then zero on a touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mayank Vaswani from CDR India. Thank you. And over to you Mr. Vaswani.
Mayank Vaswani — Analyst
Thank you Yusuf. Good afternoon everyone and thank you for joining us on alicon Castelloy Limited’s Q1 FY26 earnings conference call. We have with us on the call today Mr. Vimal Gupta, Group CFO and Mr. Shyam Agarwal, Chief Marketing Officer of Alicon Castelloy Limited. Mr. Vimal Gupta will provide an overview of the operating and financial performance for the quarter and following which Mr. Agarwal will walk us through the developments in global markets and insights on domestic business. Thereafter we shall open the call for the Q and A session. Before we begin I would like to point out that some of the statements made in today’s call may be forward looking in nature and a disclaimer to this effect has been included in the earnings documents that have been shared earlier.
I would now like to hand over the call to Mr. Vimal Gupta for his opening remarks. Over to you sir.
Vimal Gupta — Group Chief Financial Officer
Good afternoon everyone and welcome to Ellicon Castellois quarter one earnings conference call. I will start with some exciting development. That reflect our commitment to growth. There have been two recent additions to our senior leadership team. Mr. Manish Kapoor has joined us as our new Chief Operating Officer COO. His extensive industry experience of over 30 years and strategic acumen will be instrumental as we continue to enhance our operational capabilities and drive forward our growth agenda further. Mr. Ashwardan Gun joins us as a head of DAR which is the Defense, Aerospace and Railways vertical. Has over 30 years of experience in the industry and will be providing our efforts to build up build our business from Defense, Aerospace and railway industries. Together these two appointments mark a significant step in strengthening our leadership team and expanding our management bandwidth to size new opportunities and accelerate growth.
Turning to some of the key developments in the global industry. This quarter has been marked by a complex and dynamic operating environment. Globally we are navigating volatility while domestically market signals remains mixed. One of the most impactful recent developments has been announced announcement of new tariffs by US on Wednesday a 25% tariff on goods imported from India was confirmed along with an additional 25% penalty tariff for trade involving Russia, effectively 50% tariff. These measures rolling out from August 7 and August 27 have prompted widespread cautions across industries. With global supply chains anticipating these changes, customers had already begun reassessing purchasing decisions and re evaluating supply chain strategies awaiting clarity on specific rates.
As a result, we have already experienced a slowdown in demand from our export customers in US and Europe and with this announcement there is likely to be further impact as customers will now respond to the implications of these announcements. The other significant global development has been the restriction on exports of rare materials by China. While China is start stating national security concerns as the key reason, it is believed that this is largely a response to the increased US tariff on China. Our discussions with customers indicate that China has introduced complex procedural requirements and extended clearance processes, thus elongating the time period of shipment of rare earth materials.
For even German players, the impact is most adverse for supply of magnets for motors and towards requirements of EV players. OEMs are now urgently exploring alternative sources and technologies to reduce or replace reliance on these materials. These supply chain disruptions are already causing production delays and shutdowns with the effect expected to intensify in quarter two and beyond. We expect these recent global developments to primarily affect short term demand. While the evolving landscape may present new opportunities, initial disruption in both demand and supply are likely and early sign of this are already visible in the current quarter.
Now let’s turn to our performance for quarter one of FY26. We have reported a revenue of 419 crore in quarter one of FY26. Revenues are lower by 5% year on year compared to 440 crore in quarter one of 25. Quarter one of FY25 however, the operating backdrop in quarter one of FY26 was very different compared to quarter one last year. Our year on year performance reflects both the challenges we have faced and the strategic resilience we continue to demonstrate. On a sequential quarter basis, revenue are lower by 2% from 425 crore in quarter four of FY25 to 419 crore in quarter one.
Again, with the operating challenges having intensified in quarter one, we are pleased with the resilient performance. We have overcome headwinds by ramping up volumes with some existing customers and with the addition of couple of new logos. The appropriate way to look at our performance is that there has been a significant bounce back from the sudden dip in quarter three of FY25 and Alicon is stabilizing the trend of revenue of over 400 crore per quarter once more. Our gross margin for the quarter was 45.9%, a decline of 165 basis points from 47.5% in quarter one of FY25.
This was due to a combination of price increase of aluminium and change in the sales mix given the dip in export volumes. Additionally, our new technologies advanced plants are not yet operating at scale and the fixed cost recovery is yet to reach optimum level on key cost sets. We saw a slight increase in employee costs on a quarter and quarter basis as the annual increments and incentives took effect in quarter one. Our cost optimization efforts are showing results and we also benefited a certain one One time of costs incurred in quarter four did not reoccur.
As a result other expenditure was lower by 13% in quarter in quarter in quarter 1 this flow flow effect was visible in our EBITDA for the quarter which stood at 50 crore with an EBITDA margin of 11.9% compared to 48 crore and 11.2% margin in quarter four. FY25 After a sudden dip in our performance in quarter three of FY25 which we already indicated was the bottoming out of our performance trajectory, we have now reported an improvement in EBITDA margin for. The second consecutive quarter. Depreciation increased by 2.5 crore to 24.8 crore in quarter one from 22.3 crore in quarter four, a direct result of our planned investments in machinery, tooling and automation that are crucial for our future capabilities. However, lower finance cost has helped us to offset some of this increase. As a result, pre tax profit was higher by 16% on quarter quarter from 13 crore in quarter four of FY25 to 15 crore in quarter one.
Just to highlight is on a sequential. Quarter basis top line was slightly lower at 419 crore compared to 425 crore in quarter four. However, EBITDA and profit before tax pre exceptional have shown healthy quarter and quarter increase of 4% and 16% respectively. We reported an exceptional item of 2.5 crore in quarter one and after registering for tax reported a net profit of 9.3 crore in quarter one. Largely stable on a quarter on quarter basis. Had it not been for the exceptional item we would have reported a higher profit after tax as well as as well on a quarter quarter basis. This clearly showcases an improved performance in a very tough environment. A quick word on capex during the quarter we have deployed 30 crores towards capex. Our target for the financial 26 remains. Intact at 165 to 170 crores.
Looking ahead, the challenges are plenty. However, we are focused on ramping up volumes for some of our customers. Further new logos added this quarter will help at incremental volumes and we are in discussion with our prospective customers too. We are seeing promising opportunities emerge up. In the defense, aerospace and railways industries. These industries present a strong case of costing to do well given the variety of requirements. We think there is a space for meaningful market share of costing there in these industries. Much like the success achieved in the automotive industry. Our initiative to form a separate business vertical and induct a head of vertical to spread our growth indicates our commitment towards establishing this as a key pillar for our business over the medium to long term. Our healthy order book of 9100 crore which span for financial year 2023-24 to 2029 along with the new business wins and strategic initiatives like the DA vertical position us well to capitalize on opportunities and deliver growth.
We are committed to navigate these headwinds with discipline and agility and we remain focused on our four strategic pillars, product diversification, market expansion and leadership in hybrid technologies. I am confident that these efforts will deliver sustained growth and create long term value for all our stakeholders. With that, I will now hand over the call over to Mr. Shyama Garwal who will walk you through the operational highlights for the quarter.
Shyam Agarwal — Chief Marketing Officer
Thank you Mr. Bimal and good afternoon everyone. In quarter one FY26, the global automotive industry experienced a year on year increase of 1.7% in production volumes. However, the key geographies and product categories we serve within the broader industry landscape have experienced a year on year decline of 3.8%. So allow me to provide further context here. Growth of 1.7% for the global industry covers all regions and much of this growth has come from geographies such as South America, China and South Asia. Since we do not have major exposure to these regions, our top line performance should be viewed in the light of 3.8% contraction in the markets that we do serve.
In the same period, the Indian automotive industry witnessed a 1.5% growth in volumes. A closer look at the growth across segments reveals 0.7% growth in two wheeler segment, 3.4% increase in passenger vehicle segment and 2.6% growth in the commercial vehicle segments all on a year on year basis. Looking at the industry landscape, we saw several key trends. In quarter one FY26 two wheelers, there was resilient demand from festive and merry season. However, this seems to be easing out due to financing constraints, early monsoons and persistent inflation. Within category, sales of motorcycles is lower by 1.3% and mopeds is down by 8.3 while the sales of scooter is up by 5% and hence the two wheeler segment is only marginally up by 0.7%.
Passenger vehicles the PV market felt the pressure from the heavy monsoon tight liquidity which weighed on the convergence despite various incentive schemes. As a result, inventory levels remain elevated at around 55 days. Utility vehicles continue to be popular with customers and reported to increase of 9% in volumes. Passenger car on the other hand reported lower volume of 5% on aggregate production volumes of PV were higher by 3.4%. Commercial vehicles while the CV segment reported year on year growth in production volumes. The pace of growth is slowing due to reduced infrastructure spending. Volumes of medium and heavy vehicles were up by 8.3% while volume of LCB were lower by 0.7% and the total segment is higher by 2.6% against the performance by industry.
Telecom has reported the following contribution from PV business has increased from 38% in quarter one last year to 39% in quarter one FY26. For two wheeler the contribution has increased from 37% to 40%. Our sales to CV segment which were 18% of total sales in quarter one last year have declined to 15% in quarter one FY26. On the smaller categories we have seen mixed Trends. Revenues from 3 Wheeler have increased from 1% quarter last year to 2% quarter for the non auto business has been dipped from 6% quarter one last year to 4% now. As Mr.
Bimal indicated, there are a lot of headwinds in the operating environment. Despite this we have reported revenue of over 400 crore this quarter. This has been achieved by adding new wins as well as ramping up with some of our existing customers coming to business wins. During the quarter we have added seven new parts from five customers including two new logos. This includes five parts from structural businesses, one part from customer for the ICE business and one part from the non auto businesses. Out of seven parts, five parts are for international businesses and two parts are for domestic business.
The new business during the quarter include two parts that we are developing with a prominent European customer. This is a well known Italian company with a focus on the segment of premium sports cars. The two part that we will be manufacturing are technology agnostic in nature as they pertain to structural solutions. We have added a structural part with a domestic two wheeler OEM this solution has the potential to open the door for us to win similar businesses from several other domestic OEMs. Further, we have won cylinder head business from an Indian OEM for the non auto business.
These businesses will showcase capacity and capability of both existing and potential customers. In terms of ramping up volumes with existing customers the outlook is favorable. As with one of the prominent Japanese oem, we have started supply of cylinder heads to one of their models but the ramp up for second model was slightly delayed. I am pleased to share that production line issue have been fully resolved and we expect our production to steadily ramp up over the next three months. With another prominent Japanese oem, we are witnessing steady volume of tape and they have indicated production ramp up from October onwards.
For the Indian business of European OEM customer there were some issues with the manpower which had impacted ramp up. This has now been dissolved and they are set to increase volumes. We are installing a second production line in November which will allow us to ramp up volumes further on all of the EVA business pertain to supply of the cylinder head for PV climbs. This is aligned to our strategy of increasing higher value products to CV and PV customers. I have already shared that contribution has increased from 38% in quarter one last year to 39% in quarter 26 and with the further ramp up schedule over next two quarter this is set to increase further.
In our Indian operations. Ramp up of prominent European OEM is underway. We are supplying around 40 to 50 sets of a key part each week and have been trying to ramp up steadily. However, we face some production challenges with delayed the ramp up. We have resolved the challenges and now progressively stepped up the production to 150 sets. Going ahead, we anticipate that this will further ramp up to 600 sets per week from January 2026 onwards. To support this ramp up we engaged a casting expert from Germany who has since joined our team. His technical expertise has been instrumental in streamlining our processes enabling us to scale up the volume efficiently.
This in turn has helped lower our breakeven point and improve overall operational effectiveness. As part of our drive to elevate manufacturing excellence, we are integrating digital process control and leveraging AI and IoT technology across our operations. These advancements are enhancing real time supervision, generating actionable insights and enabling smarter decision making. The result has been marked improvement in productivity and a reduction in rejection rates contributing to a more efficient and resilient manufacturing ecosystem. While the initial phase of implementation has led to higher depreciation and fixed costs, these strategic investments are expected to yield long term benefits as production scale.
We anticipate a stronger margin profile reinforcing our path towards sustained growth and operational excellence. Our customer base is undergoing a meaningful transformation marked by the successful onboarding of several prestigious global OEMs and tier one suppliers. This milestone reflects Alicon’s growing prominence in the global automotive ecosystem and reinforce our ability to meet the evolving expectation of world class customers. Our business composition is increasingly defined by our strength in design, R and D and value engineering. While earlier wins were driven by reliability and cost competitiveness, today Alicon is being recognized for its innovation, technological progress and design excellence.
This shift positions us as a strategic solution provider rather than just a component supplier, reshaping how customer perceive and engage with us. We are also making steady progress on our sustainability goals. Our captive solar plant in India is now operational and complemented by solar panel installed at the European facility. These initiatives are helping us transition to a cleaner energy mix and reduce our environmental footprint, further aligning our operations with global sustainability standards. We can now open the floor for questions.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the Touchstone telephone. If you wish to withdraw yourself from the question queue you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assemble. First question is from the line of Jyoti Singh from Aryan Capital Markets Ltd. Please go ahead.
Jyoti Singh
Yeah, thank you for the opportunity and just want you to understand like you have given contribution from auto and non auto if you can bifurcate on the revenue mix side and after that this time domestic auto industry growth at only 1.5%. So how does you are seeing demand recovery shaping up for Q2 and H2FY26?
Shyam Agarwal
Yeah. So Jyoti first of all thanks for the questions. So out of the revenue mix for the automobile so two wheeler is contributing 40%, three wheeler 1%, passenger vehicle 39% and commercial vehicle 15% and remaining is the non auto. And regarding your second question about the growth of the Indian automotive industry, you rightly mentioned that demand is subdued and it is much lower than what all OEMs has predicted or released the schedule to us. And there are various reasons also which we all know. However we are seeing some couple of customers where it is not linked to the growth of the automobile industry.
Like one of the Japanese OEM where we are supplying so that we will be you know eating the share of their own foundry. That is the first thing Second thing, for one of the European customer, they are assembling the engine and exporting out of India. And earlier they were having some some manpower issue. So that has been resolved and we are seeing the good schedul from the July onwards. So there we will see that we will, you know, supplying the more part then the industry is falling for. So in some of the areas we are seeing the good demand.
However we are seeing with some couple of customers that demand is not good. But as you know we are dependent on our OEMs to you know, sell the vehicle and then we can supply the parts to them. So we have to wait and watch for that.
Jyoti Singh
Thank you sir. And sir, on the export side it was subdued. So what is the current outlook from global customer particularly in Europe and us?
Shyam Agarwal
Okay, Jyoti, for if you are talking about the US tariff so this announcement has come couple of days before. So you know we also need to take some feedback from our customers that what is their strategy and other things. But as you know on the short term these tariffs what Trump has announced like 25% from 7 and another 20%, 25% from 27. So these are on only on the short term basis. It is not the final tariff number. So every OEM they will wait that what is the final contract signed between Indian government and the US government. That is the first part. But if we see like in all our supplies to US customer duty is paid by the customer. So Alicon is not directly impacted because of the increase in duty. However, in the long run we have to see the competitiveness of the India visible. The tariff on the other countries like China, Vietnam, Canada and Mexico. So once it will be finalized then only you know it will be more relevant to see the strategy from the OEM side. And until we have to wait and watch, however, we will stay in touch with our customers.
Jyoti Singh
Thank you sir, I will come in at you. Thank you.
operator
Thank you. Next question is from the line of Yasht Galal from Sushil Financial Services Private limited. Please proceed.
Yash Dalal
Hello. Hi, good evening. So I have a few questions. The first one is what is the reason behind this exceptional loss that is reported?
Vimal Gupta
That exceptional loss. Actually we. We are having a legal case in U. S Court with one of our sales agent. He was claiming some additional commissions. And that case was going on for last one year, more than a year. So you know the cost everything in the US when you deal for a legal case. So at the end we made a. Out of court settlement with them. And finally it was agreed of $300,000 as a one time compensation to better agent. That is a cost we have taken as the existing cost.
Yash Dalal
Okay, thank you. My next question is with the rollout of the new product sops from the second half, how do you expect these two impact the company’s growth trajectory and margin profile.
Shyam Agarwal
Thank you, Yash. So as we mentioned in our call, also like we have lots of new products and for that we have already done the PPEP with the customer and now we are working on the ramp up plan for the customer. So that is already, you know, we have planned and everything is going as per the planned ramp up with the customers. It includes both domestic customers as well as the export customer. And this order wins or the products which we are launching in the second half of the year or the next year. So as we mentioned our strategy is to work more with the passenger vehicle or the commercial vehicle side.
So, so we can increase our margins and we are working on that. And major volume will come from the passenger vehicle and the commercial vehicle side. So definitely in the coming quarters you will see that our PV and the CV numbers will increase and definitely the margins will also improve. So that you will see in the coming quarters. Yes.
Yash Dalal
Okay, got it. Thank you. And just in the earlier previous question you spoke about the impact of, you know, the tariffs by Trump for Alicorn. So just to add on to that question, is it possible could we route exports to enrichment to mitigate these tariff impacts? If so, what could be the implications?
Shyam Agarwal
Yes, we thought about this options also we have an entity in Europe but you know it will be too early to decide anything until anything is signed off. Because you know how we change the decision. Initially it he started with 10%, then 20%, then again came 20, 10% and now the 50. So we should also have something robust for the long term and then only we can decide which.
Vimal Gupta
But yes, definitely what option you are seeing that is, we are also open. For that and we will take a. Call later on when we will have the reality in our hand and with the customer agreement.
Yash Dalal
Understood? Understood. Thank you. And just one final question. So beyond achieving, you know, 2,200 crore revenue target in FY27, what is the long term growth strategy and vision for the company?
Shyam Agarwal
Yash, you asked very relevant question. But now you see the current environment is quite challenging both on the domestic as well as on the global level. If you see the domestic market growth is not coming as much as we were anticipating. Like Finance Minister has given the relief for the interest rate income tax and also the interest rate is coming down. So everybody was expecting that the more liquidity the demand will increase. Same day for the Europe and USA it was, you know last two years we were struggling and everybody was hoping that this year will be a good one.
Yes, but still we are seeing the demand from all the three reasons. India, Europe and USA is not that good. And considering the various war like situation in the world and also now the Trump tariff it is becoming more and more challenging for us to talk to the customer from the long term perspective. And our strategy internally we have made the plan for three years and five years but it can only be, you know, further reviewed. Once we get the final, you know numbers for the tariff, we talk to our customers, get their strategy on the long term for India then it will be more realistic to give you more idea about our long term planning. I hope Yash, you can also understand these things.
Vimal Gupta
I was just saying yesterday due to this global volatility. So maybe it will be better in the next quarter we’ll talk about, we will have more clarity that how the things are moving.
Shyam Agarwal
And also yes I would like to add here we have already, you know mentioned earlier in our speech also we are also seeing the rare earth issues like Indian EV players. They are not getting the magnets from China so their production is also getting impacted out of that. So you know lots of, lots of issues are coming. So we should see that first these issues are settled down then we can see what is the commerce customer strategy to build our own strategy and the plan.
Yash Dalal
Okay, thank you so much. That’s it from. Thank you.
operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question you may press star and one next question is from the line of Preet from Incred amc. Please go ahead.
Preet
Hello, thank you for the opportunity sir. My first question would be on line of revenue and margin guidance which you gave in quarter four that you will be targeting to achieve 190 crores of revenue with 13, 13.5% margin. Obviously there are a lot of headwinds in the industry. What is your current estimation for the internal targets for the current year? Current targets?
Shyam Agarwal
Yeah. Thank you. Thanks for the question. So you rightly said like we given the guidance in the last but now you can see the things have changed a lot from the last phone call and we are seeing some strong headwinds from the us, Europe and also the domestic market. So of course the number will change definitely. And how much lower it will be that can only be determined once the things will be settled down. So Preg, we have to wait and watch the next number set of numbers from the customer and how the tariff situation will be rounded up.
.
Preet
Sir, will be there any change in The CAPEX number which you have guided and that we’re doing 320 crores of CapEx in the next two years or 170 crores of CapEx in this year. So is there any change in the CAPEX plan we will be doing?
Shyam Agarwal
No, we are not changing our capex to. We are not changing our capex plan. We are very firm that we have to make the investment so that in the coming years we can fetch the good revenues and the margins for the company and we have. We are really making very strategic investment so that we can fetch new orders from the customer and also ramp up the current businesses which are in hand. So this no change in the CapEx.
Preet
Okay, my last question will be in the line of margin differentiate margin differential. If you can give the difference or margin difference between export domestic or pv, CV and two wheeler. Obviously PV and CV has higher margins but what is the difference between and also EV and non non auto you. Can provide.
Vimal Gupta
On the margin side you when we were talking I think Last from last 3 4/4 the improvements. So you can also see the quarter on quarter now improvement is coming and on the definitely we are having the good margins in the passenger vehicle as well as on the commercial vehicles but maybe some headwinds were there in the quarter one and maybe we saw that some decline in the those what we were expecting but on the other side just see the kind of improvements we are having in our operations also when the things will maybe little settle down.
So our manufacturing cost is now started going down based on our lot of cost down initiatives that we have started that we were talking about about these initiatives from the last three four quarters so that has started giving the results and maybe that will be the our for this year. Maybe we would not see a big jump in the top line but we will see the impact of our cost reduction initiatives that will give the at the end the results of this.
Preet
I was asking about the margin differential in export and domestic means. What are the difference in the margin between export products and domestic products? What are the difference between PVC and two wheeler products?
Shyam Agarwal
So of course the margins in the export business of course much higher than the domestic business and and also non auto is always more professional, more profitable. However in the non auto business you see the volumes are little bit lesser but in the regular business you will see the higher Volume So export business is of course is having higher margin. So that is definitely there.
Preet
Okay. And one more question. Order book as you have been mentioning from last quarter that you have order order book of around 9100 crores from 24 to 29. If you can give the status of current order book or new order which you have added in last one or two years maybe what are the new orders and in which segment you are getting?
Shyam Agarwal
Yeah. So please this order book of 9100 crore what we told. So out of this if you see in 24 and 25 we have utilized 495 crore. And further whatever order we have got. Like last year we added the order book of 1600 crore. So that we added. But on the other hand some of the businesses, especially the EV businesses there we have seen the customers have reduced their projection so that we have you know eliminated from the order book and the truncated order book after adding the new businesses which we have bought in the last year and this quarter.
So the net order book is 9100 crore. So what we are doing is we are not keep on adding the new businesses or the order but wherever we are seeing the reduction in the order or some of the programs are cancelled by the customer so that also we delete from the order book. So the net order book is 9,100 crore.
Preet
It is executable by which year current. Status column
Shyam Agarwal
it is up to 20, 28, 29.
Preet
Okay, I join back the team. Thank you so much. Thank you.
operator
Thank you. Participants. To ask a question you may press star n1 next question is from the line of Devang Shah from Asset C Meta Investments Intermediate there is private limited. Please go ahead.
Devang Shah
Yeah. Hi, good evening. So my first question that we as we in our initial remark you have mentioned there is a global headwind and domestic also we are seeing some kind of you know demand slowdown that is impacting company performance. So can we see as far as. You know worse is concerned we may go further from here on further down. That is my first question as far as financial performance is concerned. Or it may remain as some kind. Of, you know, flattish mode till we get some kind of clarity as far as you know, tariff and other related aspect is concerned. So I mean to say worse is still we may see further. Now what I’m trying to.
Shyam Agarwal
Yeah, we can hear you very well. Yeah. Yes, we understood and very, you know, important question you have asked. The, you know, if you see the current orders which we are having so we see the growth not the, you know, Slow down or the decline in the numbers for the quarter two, quarter three. So that we are seeing however, just to tell you like the tariff impact of 50% that has come a couple of days before. So we have to see the new numbers from the OEMs which they release every month. But if we see before that the numbers we are seeing a growth, not the decline.
Devang Shah
Okay. And as far as you know, you know, domestic environment is concerned, you know, this is respect to global user explained that we have to be a vet and watch. But what do you feel about, you know, domestic demand or something to have some kind of, you know, we may see a further momentum to pick up. So you may perceive any kind of thing by, you know, studying the industrial outlook or having a, you know, talk with OEMs or something like that. Or we may see a further study test in this financial year as well.
Shyam Agarwal
We are closely associated with our customers and as you know we have a broader customer base including two wheeler, three. Wheeler passenger vehicle and the commercial vehicle. And we monitor their schedule on each weekly basis. So there we see demand will increase what we are getting the schedule, we are not seeing that it will be, you know, decline. However, the numbers will not be as good as it was given during the start of the year. Like Everybody said, like two wheeler will grow by 7 to 8% and in reality it is 0.7%. So we see quarter to quarter three, there will be a increase in the number but not up to the mark what was projected before start of the year.
Devang Shah
Okay, so sir, my question is that.
Shyam Agarwal
Yes, I, I, I just had one thing however we have to see the impact on the EV electric vehicle segments. Now you know, the China has not approved even the single license for the supply of magnet and many of our customers lines are dry. So there we are seeing that maybe you know, till September. Of course they will be dry. So until that license issue will be settled down, the EV volume we are seeing it will be, you know, declined a lot.
Devang Shah
But yesterday, you know, we may see some kind of, you know, updates in a, you know, news that for a rare earth, you know, magnets there is a OEMS are now looking for certain, you know, low constitute kind of rare earth magnets. Especially from a two wheeler segment. That’s what you know, yesterday some commentary, some update also came from some OEMs. So with regards to, you know, certain things are, you know, Even policymaker or OEMs are also doing some kind of strategy.Right?
Shyam Agarwal
Devan, you are right. But you know, for each product to develop, come and in automobile industry you know there is a cycle of validation. So until those things are completed you cannot put everything on the production line. So those things will take time. So we also here first think it OEMs are working to reduce the rare earth impact on the vehicle. However we have to see the validation cycle and secondly, you know our major supply in the EV comes on the four wheeler side. And when we see the four wheeler customer it is even you know longer period to get the part and do the validation.
Devang Shah
Okay. So the last you know, conclusion, concluding question kind of thing. So sir, there is a guidance that is you have guided in a last quarter. An earlier participant also asked you that we may see some kind of you know growth and revenue top line that we guided around 2100 crore. So as you are saying we have to you know you can get a final you know idea in the next two quarters regard to that long term growth. Right sir?
Shyam Agarwal
Absolutely. Absolutely. You are absolutely right. Thank you for that.
Devang Shah
Okay, thanks.
operator
Thanks. Thank you. Participant who wish to join the question queue you may press star and one next follow up question is from the line of Preet from Incred amc. Please go ahead.
Preet
Yeah, thank you for. I would like to ask about the cylinder head business. How much does it contributed in FY25 and how much it has contributed in quarter one of FY26? Hello.
Shyam Agarwal
Specific to one product we may not be having the you know exact number right now. But what we tell you in cylinder head we are in very dominating situation. So we are supplying to many OEMs. Of course course in two wheeler, three wheeler and four wheeler. But exact number we may not be having right now.
Preet
So what would be your top five products which you sell in which contributed to your which contribute revenue? If you can name top five products. In the pecking order.
Shyam Agarwal
Okay. So of course first is the cylinder head. Then we have the commercial vehicle cacting business. Then we have manifolds for the passenger vehicles. Then we have the technology agnostic parts which is common for both ICE and the EV industry. And then we have the EV part like the EXL controller housings, battery housing. I hope I am able to answer your question please.
Preet
Yes, I got it. Thank you. And if you can read the breakup of order book maybe customer wise or product wise or whatever information you can give about your order book it will be very helpful.
Shyam Agarwal
Please. We don’t give the customer wise the you know numbers so we can only give you on the overall.
Preet
Okay. Any. Any kind of information if you can provide about the order book. Maybe how much is how much it contains some PV or, or maybe segment wise, breakup of the order book. Any kind of information which you can share.
Shyam Agarwal
Yeah, yeah. That we can give you. Out of this total order book, 51 contributes to passenger vehicles, 30% to commercial vehicle, 12% to two wheeler and 4% to non auto and geographical wise. If I see like 48% for the domestic and 52% for the export market. Thank you sir.
Preet
Thank you so much. Thank you.
operator
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I would now like to hand the conference over to the management for the closing comments.
Vimal Gupta
Okay, so thank you. As we have shared, we remain confident of an improved performance going forward. We are carefully monitoring the evolving developments in the macroeconomic environment and are confident that our deep engagement with customers and the growth plans they are indicating provide us comfort that we will see increased volumes going forward. We also believe that quarter three last year marked the bottom of the cyclicality in the industry and we have seen a recovery in quarter four and now further in quarter one of FY26. You will look to build on this further in the rest of financial 26.
Thank you once again for taking the. Time to join us on this call. And we look forward to next quarter. Thank you, Evalu.
operator
Thank you, sir. On behalf of alicon Castell Oil Ltd. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.