Alicon Castalloy Limited (NSE: ALICON) Q4 2025 Earnings Call dated May. 14, 2025
Corporate Participants:
Vimal Gupta — Chief Financial Officer
Shyam Agarwal — Chief Marketing Officer
Unidentified Speaker
Analysts:
Mayank Vaswani — Analyst
Raghunandan — Analyst
Yash Dalal — Analyst
Jyoti Singh — Analyst
Devang Desai — Analyst
Unidentified Participant
Devang Shah — Analyst
Manas Jain — Analyst
Presentation:
Operator
Please wait while joining the conference. The conference is now being recorded day. Ladies and gentlemen, good day, and welcome to the Alicon Castil Oil Limited Earnings Conference Call. As a reminder, all participant lines will remain in 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 the operator by pressing then zero on your touchstone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr Mayang Aswaning from CDR India. Thank you, and over to you.
Mayank Vaswani — Analyst
Thank you, Ryan. Good morning, everyone, and thank you for joining us on Alecon Castloy Limited’s Q4 and FY ’25 earnings conference call. Thank you. We have with us on the call today Mr Vimal Gupta, Group CFO; and Mr Shyam Agarwal, Chief Marketing Officer of Alecon Castle Oil Limited. MR. Gupta will provide an overview of the operating and financial performance for the quarter and financial year, 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&A session. Thank you. 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 with all of you earlier. I would now like to hand over the call to Mr Vimal Gupta for his opening remarks. Over to you, sir.
Vimal Gupta — Chief Financial Officer
Good morning, everyone, and welcome to quarter-four and financial year ’25 earnings conference call. Thank you for taking the time to join our call, and I trust you have reviewed our financial performance and earnings documents shared earlier. Following a subdued performance in-quarter three of FY ’25, I am pleased to report a strong rebound in the 4th-quarter with revenues growing 8% sequentially to INR426 crores. With this performance, we have returned close to our quarterly run-rate of over INR400 crores in revenue and that said, we believe the quarter could have been stronger if not for ongoing challenges in our export markets and continued softness in the commercial segment.
The strong recovery in-quarter four has enabled us to close the financial year-on a solid footing with top-line growing by 10% year-on-year to INR1,720 crores despite a volatile macroeconomic environment and challenging industry conditions. We have successfully delivered double-digit revenue growth and in recognition of this performance, the Board of Directors have — has recommended an interim dividend of 50% amounting to INR1.5 per share. Now turning to the financials.
We reported an improvement in gross margin to 47.5% in-quarter four, up from 45.8% in-quarter three, an increase of 170 basis-points on a sequential basis. This was primarily driven by a higher share of passenger vehicles components in the sales mix, which contributed to better value additions. As shared in the previous quarter, we have made upfront investments in technologically advanced facilities featuring robotics and automation. Increased volumes from these production lines have also been — have also supported by improvement in gross margin.
We are now focused on further scaling these assets to enhance fixed-cost adoption and drive additional margin expansion. The EBITDA for quarter-four stood at INR48 crore, up 36% from INR35 crore in-quarter three of FY ’25. EBITDA margin improved significantly, rising from 8.9% in-quarter three to 11.2% in-quarter four, an expansion of 230 basis-points. This improvement reflects the gain in gross margin as well as better utilization of our new advanced production lines.
During the quarter, we also made a provision of approximately INR4 crores towards receivables written-off due to insolvency of one European customer. This one-time impact on the reported EBITDA and excluding this, the improvement would have been even sharper. Depreciation for quarter-four stood at INR22 crores, marginally lower than INR23 crore in-quarter three, while finance costs were INR12 crores compared to INR11 crore in the previous quarter.
These changes in fixed-cost effectively offset each other, resulting in a stable aggregate cost base. Pre-tax profit for the quarter rose sharply to INR13 crores compared to INR1 crore in-quarter three of FY ’25. Similarly, profit-after-tax stood at INR9 crores, up significantly from INR1 crores in the previous quarter, underscoring a strong recovery in our operational performance.
For financial year ’25, total revenue was INR1,724 crores, making a 10% increase from INR1,563 crores in financial year ’24. The gross margin for financial year ’25 was 47.8% compared to 51% at 51.5% in the last year. EBITDA for financial ’25 was INR198 crores, a 1% decline over year-on-year. While profit-after-tax stood at INR46 crores compared to INR61 crore in FY ’24.
Capital expenditure for financial year ’25 stood at approximately INR165 crores to INR170 crores, primarily directed towards machinery upgrades and new product development in alignment with our long-term growth strategy. This represents the large capex outlay by in the past two decades, a strategic investment focused on developing critical components for both ICE and EV platforms.
Looking ahead, we anticipate a capital expenditure of around INR170 crores in the upcoming financial year as we continue to build capabilities and support our expanding business pipeline. At the beginning of financial year ’25, we had guided for revenue of INR1,800 crores, targeting 15% year-on-year growth. We have ended the year at INR1,725 crore and I am sure all of you would recall that we were ahead of our annual run-rate in the first-half of the year.
The shortfall is largely attributable to a sharp slowdown in-quarter three across key export markets, particularly Europe and the US as well as a sharp decline in volumes in the commercial vehicle and EV segment. Considering the macroeconomic volatility, geopolitical uncertainties, ongoing discussions around tariffs and certain customer-specific disruptions and during FY ’25, we believe the deviation from our initial target is not alarming. We continue to remain confident in the long-term growth prospects of our industry. However, in light of recent disruptions, our earlier guidance of INR2,200 crores for FY ’26 now appears ambitious. We are recalibrating our outlook and currently expect to achieve revenue in the range of INR900 crores to INR950 crores in FY ’26, translating to a its top translating 1,800 to 1950. Crores in FY ’26 translating to a top-line growth of 12% to 14% for the year. With that, I will now hand — hand over the call to Mr Shyam Agarwal, who will walk you through the operational highlights for the quarter. Thank you.
Shyam Agarwal — Chief Marketing Officer
Thank you, Mr Bimal, and good morning, everyone. In-quarter four FY ’25, the global automotive industry recorded modest year-on-year volume growth of 1% with Europe and North-America witness decline of 7% and 5% respectively. In contrast, the Indian automotive industry demonstrated on encouraging performance of 6% volume growth led by the two-wheeler segment. Within the segment, there was a 6% increase in the two-wheeler segment, 5% increase in the passenger vehicle segment and 3% growth in the commercial vehicle segment during the quarter.
For the financial year ’24-’25, global automotive production declined marginally by 1% year-on-year, driven by 6% contraction in Europe and 3% decline in North-America. In contrast, the Indian market delivered a robust 9.9% growth in volume-led primarily by the two-wheeler segment with additional support from the passenger vehicle segment. At, we effectively capitalized on these tailwinds with our two-wheeler segment growing 19% and passenger vehicle segments by 17% over the year.
However, commercial vehicle volumes declined by over 21% year-on-year, largely due to deferment of the bus tender due to election year. We also saw a decline in the carbon-neutral segment, which partially offset the strong performance in other categories. Taking into account these mix trends across segments, we closed the year with a consolidated revenue growth of 10%.
On a positive note, our India business continues to demonstrate strong performance. We have successfully ramped-up supply of four-wheeler cylinder heads to leading Japanese OEMs and are proud to have been recognized at their recent supplier meets for our contributions in quality, efficiency and reliability. Building on the momentum, we have commenced supply for a follow-up order for an additional cylinder-head, which is scheduled to ramp-up in the upcoming financial year. Volumes through the India plant of the European OEMs have been consistent and we are set to deliver increased volume in FY ’26. The incremental volumes are Are largely for supplies to global markets. Another leading Japanese OEM has fully resumed its production at its plant. We are delivering volumes at full utilization on this production line and actively exploring productivity improvements to further enhance our volumes. As previously mentioned, we expect monthly supplies of cylinder egg to the customer will increase. For another key customer, a leading European OEM, we successfully completed the initial volumes from our Europe plant with production now transitioned to our India operations. We are pleased to report that production has commenced at our India domestic plant and the capacity is full operational. Shipment to the customer facility have already used. The outlook for production from these customers comprising two Japanese OEMs and two European OEMs provide robust visibility for ramp-up of the PV business. Further, coming to business wins. Accordingly, encouragingly, our new engagement with prestigious European OEMs or structured part marks both a new customer and new product entry in Europe, one that we believe could unlock further opportunity in the premium segment. We have also added four parts in India business, mainly for the ice vehicles. Regarding our European operation, the gas and energy environment remains stable and we have seen slight easing in aluminum prices, our sustainability effort continues to yield results with nearly 30% of our electricity consumption are now met through solar power. On the back of challenges in-quarter three, we have witnessed a strong recovery in-quarter four. We are looking to build-on it further in FY ’26. However, the noise around the US tariffs is proving to be deterrent. There is heightened uncertainty given the fast pace of development and news flow around these tariffs and counter tariffs being proposed. Given the sharp rise in uncertainty, customers preferred to pause their decisions and commitments towards production schedules and are choosing to be more flexible in their approach. Adding to this, is the expectations around a probable recession in USA in the second-half of the year. The US economy reported negative GDP growth in the first-quarter of 2025, reporting a decline in real GDP at an annual rate of negative — minus 0.3% in-quarter one 2025, marking the first contraction since early 2022. This downturn was primarily driven by significant surge in imports as businesses accelerate purchases ahead of anticipated tariffs as well as a decline in government spending. These factors outweigh gains in consumer spending, export and business investments. Despite this contraction, economists anticipate a rebound in the second-quarter with projection of 2% annualized growth as the effect of front-load imports will damnish. On this note, we can open the floor for the questions.
Questions and Answers:
Operator
Thank you thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a 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. All participants are requested to use their handsets while asking a question. Thank you. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Raghunandan from Nuvama Research. Please go-ahead.
Raghunandan
Thank you, sir for the opportunity and it’s heartening to see the improvement on a Q-o-Q basis. Sir, firstly, I understand the mix of revenue for FY ’25, 6% is non-auto, remaining 94% in auto. Can you break it down into CV, PV, 2 3?
Vimal Gupta
Yeah.. Thank you, Ragu, for the questions. For the two-wheeler, the sales contribution is 35%. So passenger vehicle is 39% and commercial vehicle, it’s 21% got it, this is for 24, 25 yeah, just one minute.
Raghunandan
Understood. Thank you. Yeah. So, but ’23 ’24 two-wheeler was 40%, which has come down to 35% and passenger vehicle, it was 33%, which has increased to 39%. And commercial vehicle, which was 19%, it has increased to 21%. If you talk a bit about how the painting of the book is and, but your audio is not clear. Is it better now? Hello. Is it better now?
Vimal Gupta
Yeah. Thank you.
Raghunandan
So yeah, can you please talk about the pending order book and how the order book is more skewed towards PD and C and how you see the share of this higher-value addition segments increasing in revenue in the coming years and how you see the two-wheeler segment going down as a percentage of revenue as we go-forward?
Vimal Gupta
Yeah. Yeah. So currently our order book is around INR9,000 crores. And here what we are seeing the major increase which we are seeing is from the passenger vehicle and the commercial vehicle. And if I bifurcate, so passenger vehicle contributes 50% and commercial vehicle 32%. So in total, the four-wheeler will be around 82% of our order book. So here, if you see over the year, we have focused more on the passenger vehicle segment. And our primary focus initially was on our cylinder-head. And apart from cylinder-head also, we have developed lots of parts for the hybrid vehicle and pure EV vehicles.
So we are moving from low-margin products to the high-margin products with respect to the change from two-wheeler to passenger vehicles
Raghunandan
Yeah. And in India and the globally, if you see the traction for the hybrid is increasing and in India, you must-have seen like Toyota vehicles, Sujuki vehicles, especially the hybrid, they are doing good. And we are the single-source for the cylinder-head. So very helpful. Thank you. And for the INR9,000 crore order book, this is to be executed over which year, sir?
Vimal Gupta
Sir, this is up to, 2028, ’29,.
Raghunandan
Got it. And starting from,
Vimal Gupta
Starting from ’23 ’24, okay, 24 to 29.
Raghunandan
Got it, sir. And you spoke about EVs, how would be the share of EV in FY ’25 versus FY ’24 in revenue?
Vimal Gupta
Yeah just one minute.
Raghunandan
Just in the meantime going-forward number-one we have a strong order book there are two Japanese OEMs where we are seeing a ramp-up of our order execution. And there are two European OEMs where also we are seeing a increase in the execution of the previously received orders. So this would be the four main customers who will drive the growth for FY ’26 yeah, absolutely right. So the two Japanese OEM and two European Unions, you OEMs you rightly said that will
Vimal Gupta
Be the key drivers for our top-line as well as for the bottom-line.
Raghunandan
Got it, sir. And within our export, what would be the share of EUS?
Vimal Gupta
US is around 8%.
Raghunandan
Got it. So 8% of overall revenue in the US and this falls under section 232 tariffs for us.
Vimal Gupta
Currently, Rabu on our part we are in aluminum die-casting. So current duty on our part before the Trump tariff was 2.8% and now they have put 10% tariff on our parts. But whatever agreement we are having, so duties are not paid by, all the duties are paid by the OEF’s who is you know, importing the parts from part that, we missed your voice, if you can repeat your question.
Raghunandan
The EV share in revenue sir for FY ’25 and ’24?
Vimal Gupta
Okay. Yeah. So EV sales we see in FY ’24, it was 12% and for FY ’25, it is 19%.
Raghunandan
Got it. And in this sales for the ICE generally. And this includes even the hybrid.
Vimal Gupta
Yes, it includes the hybrid
Raghunandan
Please continue, sir, you were talking about I
Vimal Gupta
Yeah. So in the EV segment, we are increasing from 12% to 19%, while the ICE segment contribution will come down from 73% to 69%.
Raghunandan
Got it, sir. Very, very helpful. Just a last question before I fall-back to the queue. And adjusting for the INR4 crore receivable written-off, we are around 12% margin for Q4. And going-forward, you know expecting a sequential improvement in exports and also you spoke about the focus on value addition automation, ramp-up of the newly added asset, all that will also add to the margin of the company. So broadly, what range can we expect margins to be for FY ’26? Can it be between 12, 12.5 Ragu definitely what just explaining the change of the sales mix coming up in the current year.
Vimal Gupta
Yeah. So in the quarter one, you know that the global issues are going on, the tariff issues, all these things. So we see a like flat — quarter one is flat, maybe further improvement from quarter two and for the full-year, we are expecting nearby about around 13% in the margins.
Raghunandan
Got it, sir. Very, very helpful. Thank you so much. I’ll fall-back to the queue.
Operator
Thank you. Yeah. Thank you,.Thank you. The next question comes from the line of Yash Talal from Sushil Finance. Please go-ahead.
Yash Dalal
Yeah, hi. Firstly, good afternoon to the management. So I have a few questions. First one, despite our flat revenues, EBITDA margins have seen a drop Y-o-Y. So how much of this is due to your raw-material prices going up, that has not been passed on and how much is due to the product mix?
Vimal Gupta
No, it is 100% due to the product mix. There is nothing like that give this price not passed on. So agree 100% there is a pass-on.
Yash Dalal
Okay. Okay. And in your cash-flow statement, it shows INR165 crore capex for FY ’25, which is higher than the original guided figure. So what are the reasons for the same and any major capacity additions done during FY ’25?
Vimal Gupta
Yes, that’s — we are always explaining ASK for the new projects what we are coming up because these are the very ethical and big parts. So we need the good-quality and bigger machines. So for that, getting on the capacities. So that is going on and in this previous year of ’24, ’25, we have made a lot of investment for new projects like we were talking about JLR or the PSA, so many projects done and a lot — another side is around INR30 crores for the improvement side that the maintenance capex we had and the automations we are doing, so those are the main areas maybe something.
Yes, we are seeing these investment for our next growth driver for FY ’25, ’26 and ’26, ’27 because these are very customer-specific investment which we are doing and these are for the bigger and bolder part and the high-volume parts. Like Mr Bimal explained, the JLR for which we are developing the, right? So this is a very unique product which we have developed and for the ramping-up the volume, we have made the investment. And once you know we demonstrate to JLR like we can produce these parts in India, then it will open the door for many global OEMs as well as for the domestic OEMs. So these investments are very strategic in nature and we see a good revenue growth in coming future out of these investments.
Yash Dalal
Okay. Okay. Thank you. That’s helpful. That’s it from my end. Thank you.
Operator
Thank you. Thank you. The next question comes from the line of Jyoti Singh from Arihant Capital Markets. Please go-ahead.
Jyoti Singh
Yeah, thank you very much for the opportunity and also congratulations for this quarter better execution. Sir, my question is on the revenue guidance side, like this time you have guided 1900 to 1950 for ’26, though earlier we were a bit high and also we failed to met our guidance in this year. So just try to understand, I know overall macro concern is there, but still we are serving lot on the domestic side? And also, like we are working on the EXL part for JLR and apart from EXL, which are the other products that we are working for the JLR and when we are seeing conversion on the order book side, like as per earlier quarter, we were having more than 19,000. So how much current order book and how is the conversion part is going on, if you can explain on that side, please.
Vimal Gupta
Yeah., thanks for your question. And we appreciate that you recall what the guidelines we’ve given for the revenue in the earlier con-call. But in the last con-call, if you see considering the global environment, we have corrected our guideline. And if you see globally, the automobile market is — has not done good in the last year. The global automotive market was down by 1% and especially if you see the Europe that was down by 6% and North-America was down by 3%. So we have not seen the growth, while we were anticipating that global market will grow by 2%. So that was the first year.
Second thing, we have invested a lot on the development of the EV parts. And if you see last year, the growth of the EV was not as all the market experts they have anticipated. And we have also seen the impact of the election. Because of the election year, lots of tenders were canceled. So we were not able to make those sales. And our products are the derived sales.
We are supplying to the OEMs and they are selling the vehicles. So it is the vehicle was also down for the year. Because of that, we have cut-down the guidance. However, we have done the sales growth of 10% in the challenging environment also. Next year, why we have given this guideline because you have seen the issues in the USA because of the Trump tariff issues, which we are seeing.
And also the latest research report, which we are seeing from the global companies, they are still showing the 9% reduction in the volume in the USA and 6% in the Europe. So still this year the guidance from all the research companies are on the negative side. Still we are giving the guidance for Elecon for the higher sales because we have the new businesses which are in-hand. We have done the investment. We are seeing those volumes are ramping-up. And in India, we are seeing that we are increasing our share of business, especially in the passenger vehicle segment with The Japanese OEMs, which we have mentioned in our speech. So this is the reason we are seeing some growth will be there. And once we will get more clarity on the global issues like tariff and other, I think in the next con-call, we will be in a better situation to give you the further guidance on our next year volumes.
Jyoti Singh
Thank you okay. Thank you, sir. And also, sir, I ask about JLA products that we are putting on EXL Housing apart from any other products that we are working and also on the order book, if you can update?
Vimal Gupta
Yeah, here Julie, JLR is our strategic customer and they also consider us as a very important supplier. And we also got the award from JLR which is very prestigious award, JLRQ that we have got from JLR. So apart from EXL, we are supplying, you know, lots of product which is in series production and which we are supplying for last four, five years and we are seeing the replacement volumes are coming for those replacement orders are coming. And also we are working on the battery housing, which we are supplying from our European location to them. So if you see like we are supplying around 10 to 12 products to Jaguar.
Jyoti Singh
Okay. Thank you, sir. And also, sir, are we planning to shift any plant from Europe and other location to India?
Vimal Gupta
Judi, those you know plant what we are in Europe that is a strategic plant and a customer also would like to see the production is near to their production facility. So we are very happy with our European plant that is at a very strategic location. So there is no plan to ship any plant from Europe to India. Okay. In India, we are already having three plants.
Jyoti Singh
Yeah. Great. Thank you.
Operator
Thank you. The next question comes from the line of Devang Desai from Emkay Global. Please go-ahead.
Devang Desai
Yeah, hi, good afternoon, team. Congrats on decent performance in a tough quarter and thanks for taking my questions. My first question is on the underlying demand outlook. So this year we closed at about 10% overall top-line growth and for FY ’26, now we are looking at about 12% to 4% — to 14% a good amount of ramp-up seen in the European and Japanese orders. A reading within the lines, it appears that domestic ramp-up would be muted compared to exports. Is this understanding correct? How are you looking at customer schedules from the domestic clients as of now
Vimal Gupta
No, Mr Disai. When we say the Japanese OEMs, it doesn’t mean we will export to Japan. We are saying the Japanese OEMs who are present in India and we are ramping their — ramping-up their volumes. So we are seeing a decent growth in India. However, we are seeing okay growth in US, in Europe. The overall volume will not be increased, but the new orders which we have got from this customer, because of that we will get the.
Devang Desai
Understood. Understood. Thanks for the clarifications. Secondly, sir, the press release mentions about global industrial demand possibly having bottomed-out. Can you throw some more colour in this
Shyam Agarwal
I tell you like we visited US a two weeks before myself and Mister Gupta. It’s still all the OEMs, they are also not very certain about the volume in this year because the tariffs issues are still not very clear. So we will have to wait for one or two months until this tariff situation will settle down. We have seen US and UK have made a good progress, so at least we can see the LR volume will increase. But for the other OEMs and the customer, we will have to again wait for one or two months until this tariff situation will be clear.
Devang Desai
Understood. And so coming to the incremental revenues that you’re seeing in FY ’26 versus last year, how possible to share how much would be the contribution from the ramp-up of order wins that we have seen and how much would be the like-to-like growth on the existing platforms?.
Vimal Gupta
So from the new order win, the around 5% growth will be from the new order win and remaining from the natural growth of the existing
Devang Desai
Understood, sir.
Shyam Agarwal
Yeah. Great. Okay.
Devang Desai
Yeah, please go-ahead.
Vimal Gupta
Yeah. So because you know, last year also we have done the SOP of the many parts, which has already come into the production. So that will point. This margins been
Devang Desai
Got it. Okay. And for Q4, we were sitting at the capacity utilization of about 75%. What would be the capacity on a full-year basis for FY ’25 and given that we are looking to spend almost similar amount of capex in FY ’26 as we did in FY ’25. What would be the targeted utilization levels for next year and what would be the peak revenues that we can clock from the two-year capex that we are undertaking.
Shyam Agarwal
Yeah, Mr Desai. We are seeing in the next year and year-after, we will be having the capacity utilization of around 80%. And as you rightly mentioned, we have already made the capex. So that is also increasing our capacity from the plant. That is there. And apart from this, our operation team, we also do lots of improvement to increase the capacity, capacity like, for example, many apart which we run for like one cavity dice.
We try to make it into the two cavity, so with the we thank you.
Operator
We move on to our next question from the line of Preet from AMC. Please go-ahead.
Unidentified Participant
My first question would be on working capital days. I can see that in financial year ’25, your working capital in terms of, receivable as well as inventory, all have gone down drastically. Could you just keep the reason for the same or how can we expect it in further year
Operator
Hello, ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin them. Thank you Ladies and gentlemen, we have the management reconnected. So Preet, you can please ask your question once again.
Devang Desai
Yeah. Hello. Thanks for the opportunity. I would like to ask about the working capital. I can see that in financial year ’25, credit card days — data days as well as inventory days has drastically gone down. So if you could just maybe elaborate on this and tell about the future outlook for the same.
Shyam Agarwal
No, we are taking lot of actions for the improvement of working capital cycle, especially on the inventory side as well as on our receivables. So the first action you have already seen in this — the previous year of ’24, ’25 and definitely and a lot of actions you will find in the current year also ’25, ’26. So working capital improvement that is a continuous process that we have to follow.
Unidentified Participant
No. Okay. And regarding the debt outlook, what will be your debt outlook in coming year? As you have mentioned about INR170 crores of capex, so it will be entirely funded through internal accruals or are we planning to increase that. So maximum will be from the internal accruals, but I think there will be small increase in the debt, but not a major increase from this capex is.
Shyam Agarwal
Okay, because the money we will realize from this our improvement in the working.
Unidentified Participant
Yeah, got it. One more thing about the number — I can see that in financial year ’25, the number of live parts as well as customer has been reduced. So this is because of foregone of customer or we are not supplied to them in the current year.
Vimal Gupta
So the two actions what we have taken, we have reduced the noise customer where the volumes were very, very less. So those customers we have reduced so that we can free our capacity for the strategic customer. This is the reason that we have reduced the number of active parts thank you.
Operator
Thank you. The next question comes from the line of Devang Shah from Asit C Mehta Investment. Please go-ahead. Go-ahead.
Devang Shah
Yes, sir. Hi, good afternoon. Sir, my first question, we may have seen last year the headwind and that has impacted our Q3 and even our run-rate of a entire particular FY ’25. Do you feel that we — and we all know that tariff and other-related issues is as far as global headwind is concerned. But if the things stabilize, then sir, we can achieve in the way whatever we guided 14% kind of revenue growth with a 13% kind of operating margin, correct me if I’m wrong, we can do the better than that as well because the way you now strategizing yourself with some kind of customer-specific requirement and with a margin lucrative products. So can you throw some more line — any kind of headwind or furthermore if we stabilize than we can achieve?
Shyam Agarwal
Devan, thanks for the good question. We also all hope that we exceed what we are seeing. But you know, right now, if we see the guidance of our customers also, so they have also given very cautious guidelines and also the EDI, which we are getting that also the reflecting a very mild growth in their number.
So we are made our forecast based on the current EDI schedules which we are having and the guidance which OEMs has given. Once we will see the guidance from our OEMs, the customer will improve, then again, we will come up with the new guidance for the new number. But right now, we are following the market and the guidance of our customer as we are in the derived demand. That’s the one.
Devang Shah
So can we — other words that I can — understood that on a contract basis we will review and you can get an idea about the demand environment. But at least we can say the worse side looks bottoming out as you already mentioned in your presentation as well, that’s what you are optimistic, sir, that bottoming out as far as you know the numbers and the performance are concerned.
Shyam Agarwal
So yeah, Devang, you rightly said quarter three we all feel was the worst quarter for us and now we have made the recovery and we are seeing the further recovery in the coming quarter. But you are absolutely right.
Devang Shah
Okay. Thanks, sir. Thanks.
Operator
Thank you. Thank you. We do have a follow-up question from from InCred AMC. Please go-ahead.
Unidentified Participant
Sorry for the I lost my echo. Call failure happened. I would like to ask about the order book wakeup customer wise or the product-wise you can give, what percentage will be from the JLR and what percentage will be from the other?
Vimal Gupta
Preet, generally, we do not share our order book by customer or the product-line. So maybe in one-to-one discussion, we can discuss, but obviously we don’t disclose.
Unidentified Participant
Okay. A last question from my side. I would ask — I’d like to ask about the gross margin. Despite the PV segment this year, we can see that if we compare from financial year ’24, our gross margin has fallen down. What would be the reason and how — what gross margin can we expect in the coming years?
Shyam Agarwal
So mainly the gross margins, one is that the sales mix is there, but like when we are talking about the PV — PV has increased, but when we are supplying, because it depends on the — what kind of product we are supplying to them. You know, I suppose for the PV, we are not supplying the fully freshed parts. On the margin side, it looks higher when we talk about the EBITDA margin or the net margins. But on the other side of the gross margins because we are not doing the 100% processes. We are doing maybe 50% or 60% process. So that’s why on the gross margin, it is on the lower side.
Unidentified Participant
Okay. Yeah. That’s it from my side. Thank you.
Shyam Agarwal
Thank you.
Operator
Thank you please from the line of Sai Ganesh from Square 64 Capital Advisors. Please go-ahead.
Unidentified Participant
Thank you for the opportunity. I just wanted to know the total revenue potential from all the pre-year capex total of 4, 20 around crores. What will be the incremental revenue potential hello.
Vimal Gupta
So for — when you’re talking about the potential for the revenue, so generally we look for the asset turnover more than two, but it is very difficult to gauge them right now because it is a continuous process we are having because like whatever we have put the investments in ’25, ’24, ’25, so the revenues will realize in maybe some part in ’25, ’26 and some part more realization will happen in the 26 27. So year-on-year the growth happens, but we have to put the investments initially. Okay. And if I see the order book, the order book seems to be flat from FY ’24
Unidentified Participant
And ’25 at INR9,000 crores. Then over new order wins,
Vimal Gupta
Yeah, we have received the new order. If you see like in ’24, ’25, what orders we have got, it will be — it will fetch us the revenue of INR1,600 crore in next five years. But what happened, some of the orders which we have got for the electric vehicles, the EV vehicles. So that we have reduced based on the new guidelines from the customer. Otherwise, addition of the new order is consistent and quite healthy.
Unidentified Participant
Okay. Thank you, sir. That’s it from my side. Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press Shar and one. We take the next question from the line of Satish Kumar, an Individual Investor. Please go-ahead.
Unidentified Participant
Hi, sir. Thanks for the opportunity. So how the price fluctuation will affect our company profit margin. So it is — actually this is 100% pass-on to the customer. So there is no impact on the margins. Okay, sir. Okay, sir. Thank you.
Shyam Agarwal
Okay. Thank you.
Operator
Thank you. The next question comes from the line of Manas Jain from Just Enterprise. Please go-ahead.
Manas Jain
Yes. I wanted to understand in FY ’26, if I just, you are expecting to do a, I think a peak revenue from Jaguar. So I wanted to understand, is this Jaguar business scaled down or is it deferred to the next year or if I just wanted to understand the progress on that? Thank you.
Vimal Gupta
Yeah, Mr Jains. So Jaguar and Landru is our strategic customer and we are supplying for last five and five to six years. So we are keep on adding the products to them and those products come into the SOP and we start delivering. This EXL project, which we have said, this is quite a large-volume and the very heavy parts. That’s why we strategically mentioned it. Otherwise, it’s our strategic customer and we keep on getting the revenues from there.
And just to add, we have a badly balanced portfolio and we don’t rely on any one of the customer more than 15%. So we have very balanced portfolio for the risk mitigation side.
Manas Jain
Okay. Okay. No, I just wanted to understand because we had a guidance of INR2,200 crores. I understand there has been issues in the export. So I just wanted to understand the difference of the guidance earlier. Is it because of the new orders coming down like, which we had to ramp-up or it’s a combination of the existing orders also. Both if you see. Both if you see, like we are getting around 24% of our revenue from the Europe and the USA market.
Vimal Gupta
Okay. And there we have seen the decline in the sales, while we were expecting there will be an increase of 2% in the volumes. So this is the reason we are seeing the decline in our revenue also. And same way in India also, we are seeing the sales of the EV vehicles, especially on the bus and trucks. So there the revenue has not gone up, what projections we got from the customer.
So this is the reason that our sales has come down against our guidance. But still we have delivered 10% growth in our top-line.
Manas Jain
Okay, fair enough. Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen, we take the last question from the line of Ragunandan from Nuvama Research. Please go-ahead your audio is not clear.
Raghunandan
Is it better now? Hello. Yes, please go-ahead. Yeah. Sir, on the export side, which is 22% of revenue, 8% is US. The remaining would be Europe or would there be even other markets which would have a small portion of our exports?
Vimal Gupta
Mainly it’s to Europe and UK and some of the portion is for the other part of the world but it is very negligible.
Raghunandan
Got it. And broadly, what would be the breakup between CV, TV and two-wheeler in exports approximately?
Vimal Gupta
And in export in Europe and USA, the two-wheeler is very negligible. So it will be less than 5% of the total. And mainly it is the PV and the CV as the four-wheeler. CV.
Raghunandan
And would it be something like 60-40 sir between TV and CV?
Vimal Gupta
Yeah. Mainly 60% you can say it’s a CV and 40% will be the PV.
Raghunandan
Got it. And just last question to Vimal, sir. FY ’25, how much was the total ESOP cost, which was part of employee cost and whether FY ’26, will there be any further cost
Vimal Gupta
So in the last year it was around INR4 crores and this year let’s see that because in this year we have not at this moment given any ESOP. So if we give then definitely we will update you. Got it, sir. Thank you, sir. Thank you very much and wishing you all the best.
Unidentified Speaker
Thank you. Okay. Thank you, Rahu. Thank you for your questions.
Operator
Thank you. Ladies and gentlemen, with that, we conclude the question-and-answer session. I now hand the conference over to the management for their closing comments.
Vimal Gupta
Thank you. In Q3, we indicated an improved performance on a sequential-quarter basis and we are now pleased to have delivered a strong rebound. We remain cautiously optimistic as after significant volatility and uncertainty in FY ’25. We believe that FY ’26 will witness enhanced momentum as conclusion around tariffs, coupled with an improved and improved enhanced demand environment in export markets as well as our home market will catalyze growth. This will ensure that our improved revenue and margin trajectory this quarter will continue further into FY ’26. Should you need any further clarifications or would like to know more about the company, please feel free-to contact our team or CDR India. Thank you once again for taking the time to join us on this call and we look-forward to interacting next quarter. Thank you very much.
Operator
Thank you. On behalf of Alcon Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you