Fiem Industries Ltd (NSE: FIEMIND) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
J. K. Jain — Chairman and Managing Director
Om Prakash Gupta — Chief Financial Officer
Vineet Sahni — Chief Executive Officer and Director
Vineet Sahni — Chief Executive Officer & Director
J. K. Jain — Chairman and Managing Director
Om Prakash Gupta — Chief Financial Officer
Arvind K Chauhan — Company Secretary Compliance Officer
Vineet Sahni — Chief Executive Officer & Director
Sahil Sanghvi — Investor Relations
Analysts:
Unidentified Participant
Sahil Sanghvi — Analyst
Shubham Sehgal — Analyst
Garvit Goyal — Analyst
Rachana — Analyst
Khush Nahar — Analyst
Krishna Prashnavali — Analyst
Davis Kyle — Analyst
Vijay Pandey — Analyst
Satyajit Sen — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call of VM Industries Limited hosted by Monash Network Capital Limited. Kindly note, this conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 attached phone. Please note that this conference has been recorded. I would now hand the conference over to Mr. Sahil Sanghv from Monarch Network Capital Limited. Thank you. And over to you sir.
Sahil Sanghvi — Analyst
Yeah. Thank you, Muskaan. Good evening everyone. On behalf of Monarch Network Capital, I welcome you all to the Q1FY26 conference call of VM Industries Limited. We will start the call with the initial comments about the result and the future outlook of the company. And then we’ll open the floor for question and answers.
Now I’ll hand over the call to Mr. J.K. jain, Chairman and Managing Director of the company. Over to you. Jain. Sir.
J. K. Jain — Chairman and Managing Director
Thank you. Good afternoon and welcome to the Q1FY26 earning call of PIAM Industries Limited. Joining me on today’s call are Rahul Jain, Joint Managing Director Rajesh Sharma, Joint Managing Director Vineet Sani, CEO and Director Arvind Chohan, Company Secretary, OP Gupta, CFO and other members of the finance team.
Our investors presentations and the results are now available on our website and the stock exchange we Trust. You must have reviewed the same. Let me start with a brief overview of Indian economy. India remains the fastest growing major economy in the world. Forecasted to grow at 6.4% in FY26. This strong performance is driven by the robust. However, the recent imposition of the steep US tariff now totaling up to 50% on Indian export is creating near term headwind for some sectors. FIAM remains unaffected. With this challenge, the long term outlook remains optimistic. And India’s strong economic fundamentals, low inflation, healthy government finances and ongoing reforms will continue to boost the sentiment.
Efforts to expand export market and build new trade agreements like the recent UK FTA should keep the country on a steady growth path. Now let me turn my attention to the domestic automotive industries. The Indian two wheeler industries began FY26 on a soft note. With domestic production volumes of 5.9 million units which is flat over last year. This is largely seasonal and demand typically softened in the early months of this fiscal year. With the festive season kicking in, supported by a good monsoon, the industry is poised for a healthy rebound. Against this backdrop, SIAM has been able to post a very strong performance for Q1FY26.
Our sales have grown more than 13% to rupees 649 crores. And we were able to deliver a PAT of rupees 56 crores. This growth was fueled by the robust demand from our key OEM customers like PVS Royal Enfield and Yamaha which has contributed to this significant growth.
Let me now turn my attention to the four wheeler segment which continue to move forward. Our first al.
operator
Ladies and gentlemen, we have been disconnected. The management line. Wait until we connect to the management. Ladies and gentlemen, we had been connected to the management line. Yes sir. Please go ahead.
J. K. Jain — Chairman and Managing Director
Going on.
operator
Yes sir. Go ahead please. Hello. Hello.
J. K. Jain — Chairman and Managing Director
Sahil.
operator
Yes sir. Go ahead with the opening remarks.
J. K. Jain — Chairman and Managing Director
We are also very pleased to share that we have received development orders for three additional products from Force Motors. Our engagement with the customer on new technology is progressing well. This successful entry into the four wheeler space marks a significant leap forward in our journey to become a multi segment global player. Building on this performance, SIAM remains well positioned to capitalize on industry recovery through our technology investment and customer partnerships. One such investment is our state of art EMCE EMI Electronic Validation Laboratory. Now under installation and set to be the first of its kind in the Indian automotive lighting industries.
This facility will unite our mechanical, optical and electronic capabilities under one roof. As lighting becomes increasingly integrated with electronics and communication features, this lab will be a game changer. Strengthening our technological edge and reinforcing fian’s leadership in performance and quality. Looking ahead to FY26, I am confident in both the industry’s growth potential and the FIAM strong position to capitalize on it.
With this I hand over to Mr. O.P. gupta and the finance team to update on operational performance.
Om Prakash Gupta — Chief Financial Officer
Thank you, sir. Good afternoon to everyone. I would like to present the Q1 number for FY26 compared to Q1 of FY25.
During the quarter the company has registered sales of rupees 649.07 crore as compared to rupees 573.61 crore over the same quarter last year. Resisting a growth of 13.16%. LED lighting share in total. Automotive lighting stands at 63.92%. The EBITDA in Cuban is rupees 87.3.6crore translating into an EBITDA margin of 13.46% as compared to rupees 78.77 crore over the same quarter last year with a beta margin of 13.73%. The pact of the company has also increased to rupees 56.05 crore as compared to rupees 49.2 crore in Q1 of FY25 representing an increase of 13.92%. During the quarter the company has made a capex of rupees 16.53 crore.
With this I end the financial brief and now the floor is open for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Shubham Segal from Simple. Please go ahead.
Shubham Sehgal
Hello, I’m audible.
operator
Yes sir.
Shubham Sehgal
Yeah, thanks for the opportunity. My first question is. So we are with our non led portfolio is around 170 to 1. Do you see this scale further going down or the market in terms of supply and we think that this number can sustain at these levels.
Om Prakash Gupta
Can you please repeat this question? We lost you in between.
Shubham Sehgal
Yes. So.
operator
Mr. Shubham, I’m sorry to interrupt so your audio is not clear. We can’t hear you properly. Hello Mr. Shubham.
Shubham Sehgal
Hello.
operator
Yes, now you are clear.
Shubham Sehgal
Hello, I’m audible. Yeah.
operator
Yes sir.
Shubham Sehgal
Yeah. My question was that our non led portfolio has been stable around 170 to 180 crore. So I just wanted to ask that do you see this scale further going down or should we sustain at these.
Om Prakash Gupta
Yeah, Is there any second part or see on the LED? What we maintained is that we are currently at 64% as our total automotive sales and this will continue to go up and you know over the next couple of years this number should increasingly go up because our pipeline is 100% LED. All the new models that we are doing is LED.
Shubham Sehgal
Okay, okay, got it. My next question was with our LED business scaling pretty strongly as you mentioned so how and how many do we plan to add over the next two years? What percentage of regular capex will be behind mold?
Om Prakash Gupta
You may want to just repeat that question. Operator, if you could sort of help with the you know line we are getting a lot of void in between. In between. We can’t hear this. So if you could repeat that question.
Shubham Sehgal
Yeah, yeah, I’ll repeat it. Yes, definitely. So I was saying that our LED business has been scaling pretty strongly. So how many SMD lines do we have as of now and how many do we plan to add over the next two years? And what percentage of regular capex will be behind bolts?
Om Prakash Gupta
So we are looking to add another 10 SMT lines over the next couple of years.
Shubham Sehgal
How do we have currently
J. K. Jain
we have 10 assembly line. Assembly lines in in our company and we are planning for another 10 machines in next one year.
Shubham Sehgal
Okay, and what percentage of regular capex will be behind mold?
Om Prakash Gupta
See, see the total Capex if I was to highlight for the current year is around 75 to 100 crore. This includes everything. There’s a new facility that is being planned, new capex on SMT lines and so on. So that’s a composite figure.
Shubham Sehgal
Okay, okay, okay, got it. My next question was about our key customer hsmi. So like some growth that we have achieved would be due to the better realizations like from the shift to led. But apart from this, if we see that growth with HSMI versus their production rate it has been at par or even lower at times. So like would you be able to provide any color on this?
Om Prakash Gupta
So you know our growth is largely in line with how much growth HMSI is showing. HMSI is almost had a fat quarter this year and you know marginal 1 or 2 percentage point here and there is basically a result of a specific product mix. There are one or two models that will go up. They could be non led that could result in a lower rate realization and so on. So but largely the customer, our share, wallet share with the customer is absolutely the same or better and our production is in line with their own production.
Shubham Sehgal
But sir, on this, if we see that about our competitors, they have been winning major business from HMSI and like you could say example e accliva and they also have a further pipeline built and we also have been CM has been a major supplier to hmsi. So considering our growth versus our competitors growth with hmsi is there any share that we have lost?
Om Prakash Gupta
No, we have not lost any share from HMSI. And wherever there are few products which are already in development as of now at our end will be launched during next year. Few products which was together with our competitors is already being launched. That is the only difference.
Shubham Sehgal
Okay, okay. But like would you be able to say that in like volume terms how has our performance been with HMSI if you’ve not lost Any share. Like what would be the performance in volume terms?
Om Prakash Gupta
Flat. It’s a flat. Only there is no change of volume, no change of share of business.
Shubham Sehgal
Okay, okay. Just like just one request from my side. I mean if you could start providing the wall share figures that we used to. So as investors we get a better understanding on this.
Vineet Sahni
See the practical issue around wallet share is that you would appreciate there are thousands of models now, you know and every day there’s a new model, there’s a new variation. There could be one model with led, one without led, it’s very difficult to compile it. We try and compile as best as we can to give you a direction in terms of our overall market share, what it is. But model wise and you know the vagaries that you’re talking about are all model wise, one model has gone and done slightly more or less. So directionally we want to tell you that the business is intact.
Shubham Sehgal
Your business, it.
operator
Sir, your voice is not audible properly. Slight peaking.
Shubham Sehgal
Hello.
operator
Yes, sir.
Shubham Sehgal
Yeah, if we look at our Hero business it doesn’t seem much. So I just wanted to know with regard to this challenge that we are facing here, is it the challenge because of the new or any delay from the customer side that we noting the Hero business scale up that much?
Vineet Sahni
Voice, voice is breaking in between. But about Hero, HERO business, whatever business is being taken by us from Hero is as per their event plan is on, on track.
Shubham Sehgal
Yeah, so we haven’t seen the scale up happening. So like facing challenges there?
Vineet Sahni
No, there is no challenges from our side or no challenges from customer side also. But there are few projects which are being launched as of now under Harley Davidson. Flagship are being going very slow pace and it is being recent. So very soon we will start the export also. You will see some of the pace in near months.
Shubham Sehgal
Okay.
Om Prakash Gupta
You know we’ve explained to you that with Hero we have a lot of new orders that we are doing and new orders obviously, you know, new projects, they come in, they take time for volumes to ramp up. So that will happen.
Shubham Sehgal
Okay, got it. Thank you. I’ll get back in the queue.
operator
Thank you. The next question is from the line of Karvit Koel from Envis Analytics Advisors. Please go ahead.
Garvit Goyal
Hello. Am I audible?
operator
Yes sir.
Garvit Goyal
Good evening sir and congrats for decent execution. My first question is on the tariff part itself. You mentioned tariff is not going to affect us. So can you put some color on that? Like why we are thinking in that way? Because maybe our customers are into export as well. Right. So does that affect us going forward.
Vineet Sahni
So tariffs are only applicable to United States and our business directly with United States is very marginal, not significant. And even where there is that business, our contract terms are FOB where we are not impacted. Because the tariffs or any other levies that may arise in future is to the to be borne completely by the customer. So we are not impacted.
Garvit Goyal
I’m not speaking about the direct impact. I’m trying to understand about the indirect second order effect. Maybe your customer may be exporting to us. Right? So in that case, what kind of impact can have going ahead?
Vineet Sahni
No, our direct or indirect order book is not intended to America at all. The American lighting systems that eventually end up in America is very insignificant what I highlighted.
Garvit Goyal
Okay. And secondly, on the four wheeler part, I missed the opening remarks. Actually I was speaking about some updates. Can you repeat that? And secondly, did you mention anything on the Force Motors?
Vineet Sahni
Yes, we did mention in the CMD speech. In Force Motors we have got orders for three products which are now under development. That is the next entry we have made. So that was the information shared by CMD in his speech.
Garvit Goyal
So what are those products and what is the size of business are we looking to do with Sport Motors? Can you share the details?
Vineet Sahni
No, at this moment we will not be able to share the type of products. We will share it in due course of time and also the revenue.
Garvit Goyal
Understood. So is it the only customer that we onboarded in four wheeler in this quarter or any other customer?
Vineet Sahni
Also this is the only customer we onboarded in this quarter.
Garvit Goyal
Got it. And lastly on the rare earth metals side, are we seeing any challenges to our customers because of unavailability of rare earth metals?
Vineet Sahni
So rare earth, eventually there is some exposure on the EV side only. And ev, as you know, right now is fairly small component of the industry. So we are not seeing any major impact specifically around it right now. Two wheeler. Specifically around two wheeler. Because you know our order, our positioning is right now more two wheeler. So two wheeler is not being impacted right now.
Garvit Goyal
And as the chairman has mentioned in opening remarks as well, regarding the good monsoon and along with the festive season we are entering into, do you see any kind of challenges in the terms of consumer sentiment because of the global headwinds currently going on that can affect the positivity coming out of these two drivers? Or do you think demand is pretty decent only and we will be able to grow recently in the upcoming months?
Om Prakash Gupta
Overall, what we see on the ground, the demand seems to be fairly robust. Festive season is coming on. Monsoon has been good While you see all the headlines on tariffs and all, we’ve got upgraded recently by rating agency AS India. So I think structurally we are fine. We are not seeing any challenges on the ground.
Garvit Goyal
Thank you very much sir. And all the best for this issue.
operator
Thank you. The next question is from the line of Rachna from SCIL Ventures. Please go ahead.
Rachana
Hello. Am I audible?
operator
Yes, ma’. Am.
Rachana
Yes, I have few questions. First question is there is some benefit due to the realization improvement due to shift to LED lighting. But just to understand better and clearer what kind of growth has been. Has there been in terms of volume?
J. K. Jain
Hello, you’ll have to repeat your question. I’m sorry, we’re not able to hear it very well.
Rachana
Okay, Am I audible now? Hello.
J. K. Jain
Yes, go ahead.
Rachana
Yes, in our growth trajectory there has been some benefits due to the realization improvement due to shift to LED lighting. But to understand better what kind of growth has been in terms of volume.
J. K. Jain
So LED as what we always say, LED is 64% of our total sales right now. And that shift is prominent that will keep growing. And as LED goes, the realization on LED is much more. But at a margin level we are going to be at similar level be it LED or non LED products. So margins have not changed. But sales velocity definitely increased.
Rachana
Okay. And if you can color in terms of volume.
J. K. Jain
Volume growth. What what we have said will be translated into our sales growth forecast which we continue to guide for 15 to 20% sales growth forecast. Because the industry obviously is not growing at 15 20% in volume term it is lower and hence that that volume growth and value growth is both factored in sales. We don’t give specific volume data.
Rachana
My second question, other segments has been flat. So if you could give any color, what are you know, the key reasons behind this?
J. K. Jain
What was the question? Other segments did you say just repeat that?
Rachana
Yes, our other segments has remained flat. So if you could any color, what are the reason?
J. K. Jain
Okay, so I think your question is that this is other product then other than the lighting, right? The rear view mirrors and the plastic molded parts.
Rachana
Yes.
J. K. Jain
So it. Yeah, you are right. This around 10% is the rear view mirrors and the plastic parts. Again because the value and the realization increase in the automotive lighting is in proportionately high. So definitely there is a change in the percentage. But otherwise the supply and the percentage of the business is growing.
Rachana
Okay, my. One more question. The other expenses they have seen a very sharp jump. Are there any one off or other expenses which are driving this and what kind of Runway run rate we can expect?
J. K. Jain
So I Don’t think there is any sharp jump or something like excessment. There is some, some expenses in one quarter may not be in quarter. You have to see on a yearly annual basis what is the percentage that is almost remaining in line with the normal percentage.
Rachana
So if you could you know further quantify are these expenses related to sales or any future investment?
J. K. Jain
Yeah, these are majorly related to the development cost and the sales also. Yes.
Rachana
Okay. And just wanted to know what is our cash balance as of date?
J. K. Jain
So as of and at end of quarter the cash balance is 341 crore.
Rachana
Okay. And any change in our capex plan we had an ambition of incurring 200 crore capex over two years. So any change or is that going well?
Om Prakash Gupta
No, the capex plan of 200 crore over next three years excluding anything that we do for four wheeler remains intact. That’s the plan. Capex four wheeler as we have mentioned in the past is yet to be finalized. That number could be on top of this. We’ll be on top of.
Rachana
Okay, thank you so much. I’ll get back.
operator
Thank you. The next question is from the line of Kush Nahar from Electrum pms. Please go ahead sir.
Khush Nahar
Thank you for the opportunity. Am I audible? Yeah. So my question was more on the growth side. So since we are facing this geopolitical issue and the magnet issue that was happening so considering obviously our book but this overall macro situation could you guide us in terms of what kind of growth we are seeing for this particular year that is FY26 and over broader term over the next three to five years what type of growth are we looking at?
J. K. Jain
See organically we’ve always maintained that we will grow at 15 to 20%. That’s the benchmark that we have set for ourselves. This does not take into account any positive upside that will come from a significant ramp up in our four wheeler business and which is why we’ve not sort of given that number to you. Without that number which we will aspire to grow at 50 to 20 even in this quarter we have grown around that figure but you know this is a seasonal quarter so you know we will make up for that. So 15 to 20% remains our sales growth rate sir.
Khush Nahar
And I think last quarter we mentioned that we had around RFQs worth 700 crores for the four wheeler side. So any update on that in terms of conversion to orders or any new RFQs that we received in the past quarter or the current quarter till date.
Vineet Sahni
We continue to work on those RFQs and they have moved to the next step. The technical studies are on alongside the customer. So we hope to convert few of them in the coming quarters. We did work on Force Motor RFQ which got converted into order for us on which we are working for development.
Khush Nahar
So today could be contextual. What kind of RFUs are we looking at? Like has it increased or how is.
Vineet Sahni
It so the order the RFQ value as of now remains the same because some have got converted into orders to us other value we are working on them. Technically at this moment we cannot diverge the details on the products on which we are working.
Khush Nahar
All right, sir, and there is one last question if I can squeeze in. I think last Concord we spoke quite a bit on the technological side in terms of that we are focusing on electronics and that kind of technology. So any update in terms of any backward integration or a new category that we are thinking of in terms of product basket?
Vineet Sahni
Yeah, interestingly the RFQs that we are working on, few of them are on technology front and that’s why it is taking a bit of time. And we have also announced in the Chairman’s speech the setting up of Emcemi laboratory which is the first of its kind in lighting, which is enhancing our strength in electronics. So in next quarter we would be commissioning this facility integration of electronics, optics, thermal, mechanical, all at one location. And that is basically to serve our customer in a much better and faster way and gain market share in the industry.
Khush Nahar
Thank you so much.
Vineet Sahni
Yeah, thank you.
operator
Thank you. The next question is from the line of Krish Pashnaval Moabda from Mira Asset Capital. Please go ahead.
Krishna Prashnavali
Yeah, thank you for question. So my question is on the gross margin side, we have seen very steady improvement in cost last 3, 4 quarters. So just one, you understand what kind of, you know, localization we are doing, how we are able to achieve this?
J. K. Jain
Are you talking about EBITDA margins? You know, so they’ve been largely stable and you know we’ve been able to manage with any vagaries with the customers. We’ve kind of told you in the past as well that you know, any cost increase decrease is all passed on to customers. So. So the margins have been fairly stable and continue to be so.
Krishna Prashnavali
Okay, okay. And on the run rate of the four wheeler vertical it is around. Around 200. Sorry, around 18 to 20 cr in last quarter. Also in this, I just wanted to know from which quarter we should expect an initial increment in this numbers for the four wheel apply.
J. K. Jain
In the previous investment. Also I have maintained that at this moment we are focusing more on penetration with the customer development of technology. So the revenue portion we will address by the end of this year for the next year budget.
Krishna Prashnavali
Okay. Okay. Thank you.
J. K. Jain
Thank you.
operator
Thank you. The next question is from the line of Shubham Segal from Simple. Please go ahead.
Shubham Sehgal
Hello, I’m audible.
operator
Yes, yes.
Shubham Sehgal
Yeah, yeah. In two wheeler business, what scope do we further see to grow with our existing or new customers?
J. K. Jain
We are working with all the customers to go into details with the electronic items wherein which is already being included in CMD service page. So we are working to be majorly on electronics. One is of lighting with LED and further electronic components like controller and other. So that is a growth. We are looking forward to the electronic area.
Shubham Sehgal
Okay. And as you mentioned like the other electronic components. So like have we like started working on this? Like could you like just give more color on this?
J. K. Jain
Yeah. We have already generated few modules which are already being presented to our customer and our dialogues with the customers are on. We are discussing with all the RNDS level and very soon will be implement into production line.
Shubham Sehgal
Okay. Okay, got it. My next question was like for lighting business, what has been the growth in our key customer volumes? So like all of the other products other than the lighting business, what growth has there been with our key customers in terms of volume?
Vineet Sahni
So we give value data not volume. And you know the key growth for the current quarter has been driven by tvs, Yamaha and Royal Enfield.
Shubham Sehgal
I don’t mean, I mean Xofar lighting business, how are we seeing the growth for our key customers?
J. K. Jain
Except for lighting business. Okay. For, except for lighting for other products we see stability. Our main focus from VM industries remains on lighting. Lighting is undergoing technology changes and we are focusing on lighting. So there we see a stability in other products and lighting we want to grow. That is our core business.
Shubham Sehgal
Okay, okay, got it. Last question. So if we see in the last five years I wanted to ask has our LED realization remained stable or has it fallen? Because if we see our revenue run rate of quarterly it was 180 crores around calendar year 23 and now it’s around 300. So have we seen our volume growth better than this overall sales growth number?
Vineet Sahni
See this is. There is no yes or no answer to this. This is a, you know, product, you know, mix issue. So for example, if you were to sell a significant part of an export model say to Yamaha at very high realization that will be very different from another LED being sold here. So to give a generic answer, no, I think what we have seen over the last five years is that definitely products are getting slightly more premiumized and hence generally realizations are going to increase because the product complexity, the product demand from the customer is also a better product.
So that trend is happening. But then it really depends on which model is doing well in the market and which one is producing large volume.
Shubham Sehgal
Okay, got it. Thank you.
operator
Thank you. The next question is from the line of Davis Kyle from Monarch. Please go ahead.
Davis Kyle
Yeah, just want to understand. So in yammer sequentially over Q4 FY25 it seems our content per vehicle has gone up. So is it just the export higher export mix, product mix in the overall pie or we have added some more some one or two models in this quarter.
J. K. Jain
Yeah, during last quarter CMD service speech I think it is being announced there are two models which is being launched for the global are doing well. This is and of course in domestic model also doing good like fz. These are the few models which are doing good and volumes are increasing and that is also giving positive for us also.
Davis Kyle
Okay, so it’s primarily higher mix of export models.
J. K. Jain
Yeah, yeah. Domestic and export both models.
Davis Kyle
Similar on the TV side do not to be similar extent like Yama but there also it seems like content per vehicle has gone up. So any color on that?
J. K. Jain
Yeah, there are few models in TVS if you see recent launch of Jupiter wherein they have added front lighting and rear lighting additionally are giving us a very good volume which is almost double the last quarter. Last first quarter of last year. So this is one. And Apache is also doing good wherein three wheeler is also being doubled. If we see from last first quarter last year to this year. So these are the few things which is being almost double the overall volume.
Davis Kyle
Understood. And so on the hero side. So besides 250R do we also supply to 125R or it’s just 250R for now? Extremely.
J. K. Jain
This is 258 and 125 will also be launched very soon.
Davis Kyle
Okay. 125.
J. K. Jain
Yeah, sorry. Products will be added into 125 very soon wherein 250 is already being started adding.
Davis Kyle
Okay, okay. Okay. Yeah, that’s it. Thank you.
operator
Thank you. The next question is from the line of Anupama from Ratna Traya Capital. Please go ahead.
Unidentified Participant
I just wanted to understand. In four wheelers are we going to limit ourselves to passenger vehicles or are we also looking at the commercial kind of space? Because we seem to have added an RFQ from a slightly larger kind of vehicle vehicle class. And secondly what is what should Be our expectations on the margin trajectory going forward since we are, I mean do we expect the margins to improve from here?
J. K. Jain
Okay, so from our side, XVM Industries, our focus remains on passenger vehicles, commercial vehicles and all four wheelers. The complete market is important to us so we are not limiting us to any particular segment.
Second question, we see quite a bullish trend in four wheeler and also in the off road segment. So we remain focused on all segments of four wheeler and we see a very positive growth in future.
Unidentified Participant
Okay, and one more question from my end on the four wheeler side, beyond what volumes would we require a separate plant for that further dedicated to the four wheelers? And by when do we expect to do a capex on that?
J. K. Jain
So normally a plant is viable at a revenue of around 200 crores and because the initial investment in lighting is high, it is a capital intensive product. So normal viability is around a revenue of 200 crores. And it also depends on the product mix. Like certain products we are able to service from our existing capacity and facility. So it does not make sense to invest again. So we are constantly reviewing the need and we will take the appropriate decision based on the order book.
Unidentified Participant
So we are saying sir, below 200 crores kind of revenue we can serve from the existing plant itself, is that right?
J. K. Jain
No, I didn’t say that. Your question was when do we need a new plant? So for an independent plant it is a 200 crores but we have to make certain investment in our existing facilities to serve the growth from 0 to 200.
Unidentified Participant
Got it, got it. Yeah. And on the technology side, are we developing new products or are these traditional products for four wheelers that it is taking time for us to actually get into? I mean get through with the RFQs. How is it? I mean I just wanted to have an understanding on that.
J. K. Jain
So as explained in the previous calls, we are working on three pillars strategy in four wheelers and one of the pillars is new technology which is more robust and long. It takes time because you are positioning yourself as a new technology player and it is making a good progress as far as we are concerned.
The second is for the current models. That is the second pillar we have to develop products. So we enter as a small, small lamp layer and here we got success. We explained last time we got three products for Mahindra Bolero which is their flagship model and the first pillar is also on the standard product that we have that can be applied to any other model. So these three pillars we are tracking each have their lead time which are different. But normally in four wheelers it takes easily up to two years to develop a product and take it to startup production.
Unidentified Participant
Okay. And for us of that two years I am assuming around six to eight months has already passed. Correct?
J. K. Jain
Yeah. So the technical reviews of the products and the RFUs are in progress and we will keep you updated as we end the next quarters.
Unidentified Participant
Thank you sir.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question from the line of Vijaya Pandya from Nuama. Please go ahead.
Vijay Pandey
Thank you sir for taking my question. I have couple of questions. First on the Yamaha sales. So Yamaha sales has declined in the first quarter. And generally the feedback at the global level from Yamaha was that the sales will be weaker in calendar year 25. Are you expecting any decline? And if also you can quantify what is our exposure to Yamaha export market and Yamaha domestic market, that will be helpful.
J. K. Jain
So our Yamaha sale in Q1 as compared to Q1 of last year is almost up 20. So for us there isn’t. There is an industry decline in domestic that you are talking about. But we have not seen that. We are in fact ramping up sales from Yamaha and they are both for some of the domestic models as well as a large portion to export orders.
Vijay Pandey
Okay. No, I’m understanding about it. They have suggested that export market for them will be weak for Yamaha. So are you seeing any changes in scheduling or any production disruption coming or any order cancellation?
J. K. Jain
No. On as I said, this quarter has been very good for us for Yamaha and we continue to see good traction.
Vijay Pandey
Okay. Secondly, if you can just confirm about the orders from Mahindra that we got. Mahindra and Mercedes which we got you spoke about in the last quarter. So when is the commercial production that we can expect? Is it like this year? Next year? You can just give us a timeline. And what is the order book of peak revenue? How should we look into it? That will be pretty simple.
J. K. Jain
So as shared earlier, we have commenced our commercial production for Mahindra in this quarter. The quarter that has just gone and our first product which is LED license plate lamp that is already getting applied to almost all models of of Mahindra step by step basis. And happy to announce that we have had zero concerns on quality or delivery and have got appreciation from our customer for other products that we have Bolero that will follow the launch plan of Mahindra which we are not able to disclose now because this remains confidential. But we are the development of the products are happening.
Regarding your query on revenue as explained to you know earlier at this moment we are focusing on entry into the four wheeler market and by for the next year budget we would like to convert this into revenue and share with our investors.
Vijay Pandey
Okay. Okay. And lastly sir, I just wanted to check in terms of the realization. So the LED as a percentage of sales is definitely increasing. So just wanted to check how much is this contributing to the revenue growth. So we are guiding for 15 to 20% revenue growth. If you can help us understand what will be some coming from the LED mix that will be pretty healthy.
Vineet Sahni
So our 15 to 20% takes into account the fact that LED will continue to grow out go up. So from a proportion of what we have right now which is 64% we believe that this number should gradually move up 75, 80 over the next couple of years and that will drive this revenue growth. Because the at the industry level we are taking the industry benchmark of 6 to 8% growth which is what the industry is projecting.
Vijay Pandey
Okay. Lastly the just wanted to check if you are seeing any impact from the any supply chain issues in terms of importing of the glasses. Because we use the glasses for our LED lights. Are we seeing any impact in terms of DOM remark or anything that may hamper our production or hamper our supply chain?
J. K. Jain
No, we are not seeing any such impact.
Vijay Pandey
Is the raw material magnet used in glasses? I’m not sure but we have heard the news.
J. K. Jain
We are not using glasses in our lamps. It is all being polycarbonate and PMM material is being used, not the glass. This is outdated already.
Vijay Pandey
Okay. Okay. Thank you.
operator
Thank you. The next question is from the line of Saurav from Multi app. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. So couple of questions on Hero. You mentioned that you would be entering into the 125cc segment. So is it the existing refresh model or the upcoming new launches that Hero would be doing? Which year? 1.
Vineet Sahni
This will be a new model launch which will be soon, might be in couple of months. It will be launched upcoming models.
Unidentified Participant
Okay. So basically the development phase has been done and soon it will be in the commercial production phase.
Vineet Sahni
Right? Very true.
Unidentified Participant
And will this be like LED lighting or a mix of both halogen and led?
Vineet Sahni
No, this is all LED lighting.
Unidentified Participant
Okay. And other question I had was on other operating income which used to be around 4,5 crores a quarter and it has jumped to around 9 crores. So what is that with respect to?
Om Prakash Gupta
Yeah, you’re right. It has marked the increase. The 4,5 crore is the regular income which you are aware, which is, you know, testing fees, crap sales and so on, which is regular. This quarter includes a 4 crore odd design fee for a project that we specifically ran. So that’s a separate one one off. And if you see even when we report our EBITDA margin, this is excluding that number, including this, our margins would have been higher.
Unidentified Participant
Okay, so this is like a reimbursement of design expense that we would have incurred in the quarter or in previous quarters. Right.
J. K. Jain
It’s a culmination of a few things for a couple of clients for the year which has been sort of now passed on.
Unidentified Participant
That’s it. Okay, sure. Yeah, thanks.
operator
Thank you. The next question is from the line of Satyajit Singh from Value Research. Please go ahead.
Satyajit Sen
Hello.
J. K. Jain
Yes, go ahead.
operator
Yes, sir.
Satyajit Sen
So hi, I just had a simple query. So across the board domestic sales of many OEMs have been declining or shown a major growth and you have consistently grown your sales by about more than 14%. 13. 14%. What is, I mean what kind of. Industry demand are you seeing in the market?
Vineet Sahni
So if you, if you look at the industry reports and the trends that are published, I think generally the two wheeler demand seems to be robust for the year. And you know as the projection, the range is anywhere from 6 to 10% of volume growth is what is being projected by the industry.
Satyajit Sen
All right, but just wanted to know is there any demand shortage coming forward. Since there’s been a trend for last. Couple of quarters that domestic sales have. Not been performing well since the extension exports side performing well for you, how is the demand coming up for you from the direct oem?
Vineet Sahni
No, I think you’re mixing up a couple of industries. Two wheeler industry has done well last year and two wheeler industry we believe will regain new high numbers this year. So overall if you see even the constituents there could be quarter here and there. But if you see annual growth, we are on a good growth path.
Satyajit Sen
All right, thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask questions. Ladies and gentlemen, as that was the last question for the day, I would now hand the conference over to Mr. Sahil Sanvi for closing over to you sir.
Sahil Sanghvi
Yeah. Just want to thank the complete management of EM Industries for patiently, very elaborately answering all the questions. Also would want to thank all the participants for joining the call. Jain. Sir, would you like to give any closing comments?
J. K. Jain
Yeah. I would like to thank everyone for participation in the today’s conference call. I hope that we have adequately addressed all your queries. If you have any further question, please don’t hesitate to contact us. Thank you, and have a good evening. Thank you.
operator
Thank you. On behalf of Monarch Network Capital Ltd. That concludes this conference. Thank you for joining us, and you may now disconnect our lines. Thank you.