Fiem Industries Ltd (NSE: FIEMIND) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
J.K. Jain — Chairman & Managing Director
O.P. Gupta — Chief Financial Officer
Vineet Sahni — Chief Executive Officer & Director
Analysts:
Unidentified Participant
Sahil Sanghvi — Analyst
Shubham Sehgal — Analyst
Siyaa Deshmukh — Analyst
Khush Nahar — Analyst
Vinay Nadkarni — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to FIAM Industries Limited Q3FY26 earnings 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 the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sahil Sanghvi from Monarch Network Capital Ltd. Thank you. And over to you sir.
Sahil Sanghvi — Analyst
Thank you. Rudra. Good evening everyone and welcome to the VM Industries Limited Q3FY26 earnings conference call. The disclaimer, the confidence call may contain forward looking statements about the company which are based on belief, opinions and expectations of the company as on date of the call. The statements are not a guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand over the call. Conference call. I sorry and I now hand over the call to Mr. J.K. jain for the opening remarks. Jen. Sir, over to you.
J.K. Jain — Chairman & Managing Director
Thank you. Good afternoon and welcome to the Q3FY26 earning call of FAM Industries Limited. Joining me today’s call are Rahul Jain, Joint Managing Director, Rajesh Sharma, Joint Managing Director, Vineet Sani, CEO and Director, Arvind Chauhan, Company Secretary, OP Gupta, CFO and other members of the finance team. Our investor presentations and results are now available on our website and the Stock exchange. I trust you must have reviewed the same. Let me begin with an overview of the broader economic environment. The Indian economy continues to demonstrate resilient and steady momentum in spite of the geopolitical challenges as highlighted in the recent Economy Survey India Real GDP Growth for FY26 is estimated at around 7.4% and the growth is expected to remain strong going into FY27.
This reflects broad based domestic demand, healthy investment and stable consumption trend. Inflation has remained under control which has supported purchasing power and consumer confidence. The recent union budget has reinforced fiscal discipline while maintaining a strong focus on infrastructure and manufacturing. In addition, GST rationalization has improved affordability in the two wheeler segment. This has supported retail traction and overall industry sentiment. Overall, the macro and policy environment remains constructive for the automotive ecosystem. Coming to the two wheeler industries, the quarter witnessed broad based recovery. Total two wheeler production grew by 15% year on year to 6.8 million units in the quarter for the first nine months industries production is already at 19.6 million units.
This puts the sector in a strong position going into the final quarter and expected to Cross the previous peak of roughly 24.5 million units recorded in FY19. Leading OEMs like TVS Honda have reported healthy volume performance during the quarter supported by the festival demand and improving ruler sentiment. Overall, Q3 has been a balanced and healthy quarter for the industries. Against this improving industry’s backdrop, FIAM has once again delivered a very strong performance. Further, as part of the long term commitment to sustainable manufacturing, we are rolling out renewable energy projects across all our plants. This green initiative will help reduce energy costs and improve operational efficiency and is strengthening our commitment to becoming carbon neutral company.
As vehicle platform become more advanced, the styling differentiation is gaining importance. Lighting and the electronics are emerging as the key element in defining brand identity. In this environment, our focus remains clear by strengthening technology, maintaining high quality standards, driving cost efficiency and ensuring timely delivery. In line with our state of art, EMC and EMI laboratory in Gurgaon has started trials and product validation. This enhances our electronic capabilities and significantly strengthening our in house testing and validation infrastructure. Our commitment to the passenger car business continue to gain momentum. We are now supplying products such as number plate lamp, rear reflector and fog lamp across various models to Mahindra and Mahindra.
In addition, high mount stop lamp of Bologna and Scorpio are currently under development. We continue to invest in innovation across advanced lighting and electronic technology including laser system, touch interference interface, adaptive drive, beam and metric lighting solution etc. This focus on innovation will enable us to participate in higher value lighting solution in future. As we move into the final quarter of the financial year, the overall industry’s outlook remains positive. With supportive macro condition, stable policy directions and a healthy order pipeline, we remain confident about the future growth. With this, I now hand over to Mr.
O.P. gupta and the finance team to take you through the detailed financial performance.
O.P. Gupta — Chief Financial Officer
Thank you sir. Good afternoon to everyone. I am presenting quarter three number for FY26. In comparison to the corresponding quarter of previous financial year, the company has registered sales of rupees 685.81 crore in Q3FY26 against rupees 590.1 crores in corresponding quarter of previous financial year which is an increase of 16.22%. I am delighted to announce that for the first time the EBITDA margin of company has grossed 14%. Reflecting overall operational efficiency, the EBITDA for This quarter is rupees 97.7 crore which works out to rupees 14.25% as compared to an EBITDA of rupees 77.88 crore that is 13.2% in the corresponding quarter of previous year.
PET for quarter three is rupees 63.45 crore as compared to rupees 47.41 crore in corresponding quarter of which is higher by 33.83%. Now I would like to present the nine month number four FY26. The company has registered sales of rupees 20.46.3 crore in the nine month of current financial year as against rupees 1771.15 crore in the corresponding period of previous year which is an increase of 15.54%. The EBITA in nine months of current financial year stand at rupees 284.16 crore translating into an EBITDA margin of 13.89% as compared to an EBITDA of rupees 236.92 crore.
That is 13.38% in the corresponding period of previous year. Paid for nine months of current financial year is rupees 183.29 crore as against rupees 146.44 crores in the corresponding period of previous financial year which is higher by 25.16%. During the quarter the quarter three the company has made a capex of rupees 41.02 crore and total capex in the nine month of current financial year is rupees 78.83 crore. With this I end the financial brief and now the floor is open for questions and answers.
Questions and Answers:
operator
Thank you very much. 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 remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for the moment while the question queue assembles. Our first question comes from the line of CA Garvit Koel from Serene Alpha analytics llp. Please go ahead.
Unidentified Participant
Hi. Am I audible?
operator
Yes sir. You are?
Unidentified Participant
Yes, Kohed sir. And congrats for a good set of numbers. The first question is on the insurance and fire incident part. Over the last two years the company has closed fire incident at more than one manufacturing unit. Can management help us understand the root cause identified in each case and whether there are any common operational or the safety gaps? And what are the permanent corrective measures have been implemented to ensure that such incidents do not reoccur. Additionally, have these incidents led to any changes in the insurance terms? Or the premium or any internal safety audit across the plant.
Sahil Sanghvi
So regarding the. Let me break this question into three parts. First part is about the insurance. As we already disclosed, our insurance is under process. And for the unit 7, that is the Rai unit we already received around 50 crore and rest of the assessment is under process. It should be completed whatever in the due course of time. Now all the policies what we are taking in the insurance is on reinstatement basis. So as you understand in case of this kind of policy, the assessment takes time. Now coming to the unit eight that we already informed to the exchange as well.
And we Already filed on January 30, 82.30 crore insurance claim on reinstatement basis. So it will take time. Now about the safety aspect and all these things. The regions are already there in the dome with the surveyor. So there is nothing bigish about that. But yes, whatever the safety measures we are taking or we are doing, I think Mr. Rajesh Sharma he can explain a little bit.
O.P. Gupta
Yes. There is a plant rye as well as Tabukara. These are all being audited on the periodic basis. This is being hired a third party. And the same time safety team from CM is also auditing and regularly monitoring the situations. So RAI plant, whatever fire incident is being heaven happened because of short circuit and it is being claimed, it is being already highlighted and being presented. And similarly all the plants we have a full commitment and safety measures which is being necessary to run the production line and to save the human which is being in all the cases being taken care.
Just to add in both the cases there is no injury to anybody. So our whatever the safety measures existing in the company, in every factory it is appreciated by all. But this is unfortunate event. So sometimes you know things are beyond control when this kind of things happen. To add this thing, there is no loss of business in any of the event. You can see the numbers. So rest of the things in for future. Management is taking a very serious view about the safety aspect. And these are. This is being undertaken with the help of external risk assessment agencies.
And this will be you maybe quarter on quarter we can update you.
Unidentified Participant
Understood, sir. And secondly on the four wheeler segment, while management has been discussing this opportunity for some time, the revenue mix has not seen a meaningful shift yet. At the same time, competitors in this category are scaling up rapidly and several new players are entering into this segment. So in that context could you help us understand when you expect the four wheeler business to start contributing meaningfully to the revenues and what timeline we should realistically factor in for that. Additionally, from an execution standpoint, will four wheeler orders be catered from the existing manufacturing facilities only or through the dedicated plants for this segment?
Vineet Sahni
Yeah, I am Vineethani this side. Yes, we are. I’m answering your second question first. We are catering the four wheeler orders from our existing existing facilities only at this moment. And this we had shared in our previous calls also regarding the revenue we had shared to you that we are in the process of building our credibility. First entering into small lamps and in the next investor meet which would be in May next year when we close this financial year, we’ll be sharing you business plan and the revenue impact that the four wheeler is going to make in future.
Unidentified Participant
Got it, Got it. I think I will join back the queue sir. Thank you very much.
operator
Thank you. Our next question comes from the line of Anubhav from Prescient Capital. Please go ahead.
Unidentified Participant
Am I audible?
operator
Yes sir, you are, please.
Unidentified Participant
Hello. Congrats on a good set of number. My first question is that gross margins. This quarter showed a substantial improvement both year on year and even on quarter, on quarter sequentially. So what drove this improvement and is this sustainable?
J.K. Jain
Yeah, thanks for that question. So yes, you’re right. The margins are as we mentioned are at an all time high for us at 14.25% at the EBITDA level. It’s driven by a number of factors. There is operating leverage kicking in, there is improve efficiency. There have been some efficiency drives that have been done at the factories which are resulting in some positive impact and of course there is a product mix. But also we also got some escalations during the quarter. So that has also come in to boost the margin. From a going forward perspective we feel confident that the efficiency parameters that we have done will keep helping the margin.
So we believe that we should ideally be at 14% plus EBITDA margin in future as well. That’s the kind of target we are setting for ourselves.
Unidentified Participant
Get that? And like if you look at the sales, primary sales data for all your key two wheeler OEMs, whether it is TVS, HMSI, Suzuki, Royal Enfield, all of them have grown 20% but our top. Line growth has been slightly lower at 16%. So can you like throw some light on that?
J.K. Jain
So there has been growth across the industry, but it’s not 20%. We look at the production figures rather than sales. So if you look at production figures, TVS has grown 17%. We have outperformed that growth. Honda has grown 18%. We are broadly in line there. So. So I think also what happens Is quarter over quarter there’s a product mix in terms of which model is there and are we there in that model and so on. So from an overall market share perspective we continue to be right up there with our customers.
Unidentified Participant
Get that. And sir, please don’t mind asking my. Question but I think it will be on the mind of all the analysts because our competitor listed computer Lumax Industries they have also declared their designs and their revenue from HMSI both this quarter and for the nine months has grown like at 50% plus very very strong growth whereas our growth has been much lower compared to that. So again can you throw some light on what’s driving this like market share loss if I may call that in this financial year.
O.P. Gupta
Yeah, this is in line with the same answer is being given. This is totally dependent on the model mix which are as of now and there are few models which are exclusively with the competitor.
Those are giving the right volume on the volume which is giving this kind of.
J.K. Jain
Yeah and also, also there is they have a large four wheeler business which we don’t have. So I think like to like from a Honda perspective and overall numbers if you look at that, you know sometimes that picture also doesn’t come out but what we do like to reinforce is that our market share with Honda remains the same.
Unidentified Participant
So sir they specifically clearly reported HMSI and not Honda so I don’t think that can be the reason but I get the point on models so yeah and sir, any update on any new RFQ from any other passenger vehicle OEM other than M and M? And also like last quarter we had reported that we were working on an RFQ from Force Motors. So has that converted into some concrete orders?
Vineet Sahni
Yes. So Vineet decide. Yes, Force Motors has converted. We are, this is under development. We will be reporting that in the next meet. And also Mahindra, we are working on certain RFQ which are at final stages. At least two of RF major RFQs are at final stages. Hopefully, hopefully we’ll be sharing that development in our next meet.
Unidentified Participant
Get that? Thanks. I’ll get back in the queue.
Vineet Sahni
Thank you.
operator
Thank you. Our next question comes from the line of Shubham Sehgal from Simple. Please go ahead.
Shubham Sehgal
Hello. Am I audible?
operator
Yes you are sir, but can you be speak a little more louder?
Shubham Sehgal
Yeah sure.
operator
Please go ahead.
Shubham Sehgal
Hello.
J.K. Jain
Yes, please go ahead.
Shubham Sehgal
Yes, yes. So my first question was have we started supplies to Yamaha for the Tracer 7 model? As if I’m not wrong the model has been commercialized in Europe and UK and despite this model win and also the other new models we have for the India geography. Why have we seen a decline in sales to Yamaha this quarter?
J.K. Jain
This tracer 780 is already in production right now and we have started supplying to Europe in last four months. It is in continuous supply. The decline in Yamaha is only because of there are few models which are being exported are always be based on the period based like it is sometimes the volume which is being inclined or sometimes volumes is being always being increased condition. So period. This is quarter to quarter. You can see some Yamaha because export model is always been up and down and quantity is being fixed for certain level, certain models.
Shubham Sehgal
Okay, okay, got it.
J.K. Jain
Domestic, domestic market on. Yeah, domestic market.
Shubham Sehgal
No, no, go ahead, go ahead.
J.K. Jain
Yeah, all domestic models, whatever. As of now running is being accelerated right now and it is being giving the good business in domestic market.
Shubham Sehgal
Okay, okay, got. And just an update on like two other models I think so one on TVS we had mentioned for TVS not in, you know we had developed a new technology based lighting system or like any update on that? And also for the passenger vehicle rfq. We had also mentioned that we were in final stages for an RFQ with Mercedes. So any like update on these two?
J.K. Jain
Yeah, so Norton as of now it is being launched and mass production will start in couple of months. We are ready and it is vehicle homologation is as of now on and might be in next three months time time we’ll be in position to start our supplies from here to northern UK and to TVSM India too.
Vineet Sahni
Can you repeat your question on Mercedes please?
Shubham Sehgal
Yeah, so we had mentioned in the last call that we were in the final stages of an RFQ for Force Motors and Mercedes. So any update on Mercedes?
Vineet Sahni
Yes, there is an update. Mercedes top level team visited us in the month of January. Members, senior members from Germany and India, the top people and our. I’m happy to inform that our plant and other things stand approved as a potential supplier to Mercedes globally. For small lamps of course we will now wait for RFQs to come in. But probably we are the only lighting suppliers at this moment to reach this place. With Mercedes. This was their fifth visit to our plant. So it’s moving in the right direction. It takes time but it is moving in a proper manner.
Shubham Sehgal
Okay. Like when can we expect to get commercialized? Like in a year or two, like any rough time.
Vineet Sahni
So normally, normally it is very difficult to put a time to it. But we are expecting certain RFQs to come in this in the next financial year and then it is their process development time is around 18 months to 2 years with Mercedes. But important point is to find a foothold in Mercedes because there the potential is huge. So, so that is what we are targeting.
Shubham Sehgal
Okay, got it. Thanks a lot.
operator
Thank you. Our next question comes from the line of Viraj, an individual investor. Please go ahead. Yes sir, you are. Please go ahead.
Unidentified Participant
Yeah, hi. So just couple of questions. One is on the gross margin. Just wanted to get your perspective. See if I look at the margins, contribution margins in this quarter, you know we’ve earned somewhere around 40.3% which is the highest level since March 23rd quarter. So just trying to understand what drove such high gross margin for us and was there any element of one off in this?
J.K. Jain
Yeah, we just mentioned that it’s a combination of efficiency, operating leverage, product mix and also some escalations which have come through for the quarter.
Unidentified Participant
So it’s can you quantify the escalation?
J.K. Jain
As I said A this is the combination and B going forward we are still guiding for a 14 plus EBIT.
Unidentified Participant
Okay, so, so why I asked this is like see we have been making investments, rightly so in our, in terms of investments in PNA towards a four winner lighting business. Right. And if I were to adjust for that then the implied margins would be upwards of 16, 17% for us. You know while we’re making the investments in PNL the revenue maturity is still yet to play out. So if I look at the existing business X of that, you know the two wheel business that would already be about close to 16% or above. So I’m just trying to understand, you know, you know, considering that the commentary is quite positive growth, how should one understand the sustainability of margins further in terms of improvement?
J.K. Jain
So first I wouldn’t sort of agree that you can delink the business like that because you know a lot of four wheeler projects are also working with our current CapEx and current capacities. Having said that, I think the important thing what we are seeing is that there’s a lot of efficiencies that are kicking in. There’s a lot of with the new volumes that we have overall there’s a lot of operating leverage coming in. So going forward in spite of all the investments that are already envisaged. So next two years for example we envisage a 200 crore capex which is a combination of our existing projects as well as whatever we need on the four wheeler side.
Even with that we believe that we should be at these margins or at least 14% plus is what we are targeting.
Unidentified Participant
Okay, just a follow up to this, if you look at some of the other players in the space, right. You know, they earn somewhere close to 17, 18 or slightly above margins. In the lighting business, you know, the mix can differ between four wheeler, two wheeler. But if you were to see this kind of a growth rate, you know, say low teens or double digit growth rate sustaining for us, then do you think that margins for us there’s scope of further improvement in margin structure in the business?
J.K. Jain
I think it’s a highly competitive market and I don’t see 17, 18% margin coming through at all here. I think 14% plus is a very good aspiration to have which we are focusing at least for the next 24 months. I think that’s what we want to get.
Unidentified Participant
Got it. One more, two, two more questions, sir. One is on. See if I look at a two wheeler business, you know, we have HSMI TVAs, you know, accounting for almost 60, 65% of the overall business. In terms of diversification, how are you thinking about it? See, I understand, you know, there may be quarters where one customer may degrow or not grow to the expectation we would like it to be. But in terms of one of the white spaces and maturity of those white spaces, you know, how are we thinking about it?
J.K. Jain
Great question. So I think from a OEM perspective, if you see what we are, the OEM who we are not serving is only Bajaj in this matrix. Other than that we serve everyone and our share even with a HERO is growing on the other opportunities. What you mentioned is something that was highlighted in the chairman’s speech as well, that there is an increased focus now on electronics in the company. So as we move ahead with all the OEMs that we have, there is increased contribution coming from electronic component which should help us drive growth much faster going forward.
So that has been our trust which is where all the investment is also going. The emi, EMC labs and other areas which we are investing are heavily into electronics and technology.
Unidentified Participant
So when you say electronics, is that a part of the lighting system or this is a separate business vertical which we are kicking to which we were not earlier.
J.K. Jain
This will be the part of lighting system only.
Unidentified Participant
Okay. And any color you can give. How large is HERO for us now?
O.P. Gupta
Hero. See we are working already on 10 odd products of Hero. That is for front and rear lighting board wherein few projects are already in mass production. Destiny is already mass production. X team is also in mass production. X440 is in production. Further on there are a few models which will soon be launched and will announce Those business also very soon.
Unidentified Participant
Okay, I’ll come back in queue. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Our next question comes from the line of Sia Deshmukh from Pune Estock proking. Please go ahead.
Siyaa Deshmukh
Hello, I’m Adipal.
operator
Yes ma’, am, you are. Please go ahead.
Siyaa Deshmukh
Okay. Just from an industry understanding perspective does the automotive lighting component industry typically faces challenges around you know, dead or low moving inventory? And if yes, how does our company manage such risk operationally?
J.K. Jain
Can you please repeat your question? This is not clear.
Siyaa Deshmukh
Like the automotive lighting industry typically faces challenges around dead or slow moving inventory.
J.K. Jain
No where from you got this information? This is wrong information.
Siyaa Deshmukh
Okay. Okay. Thank you.
operator
Thank you. Our next question comes from the line of Pawan from Ratnatraya Capital. Please go ahead.
Unidentified Participant
Sir, can you please outline other projects from what you are doing for Mahindra and also Mercedes. I understand we had ARFQ which we are working for Force Motors also. So can you just outline for us when can be. When can there be products which would be commercial which would be in commercial production for these kinds for four wheelers especially at a scale.
Vineet Sahni
So at this stage we will not be able to diverge the actual products that we are working on. We are also working on certain new technologies with these customers. So as and when they mature up and we are ready to declare we will do that in these needs. But currently we are not able to do this because we are under NDA with our customers. And next quarter we will be sharing a bit more about the production plans, the future.
Unidentified Participant
Okay. Okay. Thank you. That was my question.
operator
Thank you. Our next question comes from the line of Srikanth, an individual investor. Please go ahead.
Unidentified Participant
Hi, good evening. Just let me know if I’m audible.
operator
Yes sir, you are. Please go ahead.
Unidentified Participant
Yeah, thank you. Good evening to the management. Congratulations for a good set of numbers. So as per the last call we had discussed we were in some proof of concept in ambient interior lighting. So any update on that?
Vineet Sahni
Yes, we have got some official go aheads from the customer on developing proof of concept for the technology that you mentioned and a couple of other technologies. We are in the process of doing that and as we speak I get a mail of RFQ also from our customer on ambient lighting. Just sharing with you online. So it is moving in the right, right direction.
Unidentified Participant
Okay. Going forward can we see this contributing good to our top link like as a product.
Vineet Sahni
See we do see this contributing to as a product but still it has a long Way to go. Because you need to establish hardware, software, software lighting solutions and we are working actively with our customer. So the proof of concept will be made. Then they will prove it in the car, get the management approval. But it has a good potential of growth in the coming future because most of the cars are going for ambient lighting.
Unidentified Participant
Okay. And secondly, like do we like are there any kind of plans to add any other products? Like we have bank angle Lean sensor or canister. So any kind of that product which we are looking to add to our portfolio?
J.K. Jain
Yeah, bank angle sensor we are already supplying as of now for all models of Honda. And yeah, this is, these are all under technical assistance and it is being supplying to Honda only. And Canister of course is no more. Right now it is almost beyond and there are a few customers only they are getting this Yamaha or some TV solve.
Unidentified Participant
Okay, so any kind of like do we plan to venture out in a joint venture or to produce any kind of product in future?
J.K. Jain
We both are under technical assistance from Japan. One is of Toyodansu and is of Isin. So these are both are running under technical assistance agreement only with the Japanese company.
Unidentified Participant
Okay, so understood. Thank you. Thank you. That’s all from me.
operator
Thank you. Our next question comes from the line of CA Vanch from Serene Alpha analytics llp. Please go ahead.
Unidentified Participant
Hello, I’m audible.
operator
Yes sir, you are. Please go ahead.
Unidentified Participant
So I have a question. So from a medium term perspective, how does management assess the industry outlook over 12 to 24 months and also want to know the supply side or demand side factors which you believe could pose some risk or opportunities for us in the future.
J.K. Jain
Over the next 12 to 24 months we continue to guide with our initial guidance just 15 to 20% growth. We have kind of always outperformed the industry so we will strive to do the same. Industry anyway is doing very well as we have commented. First nine months have been very good. Even going forward we believe the outlook is pretty positive. So from a demand side we don’t see any challenges. From a supply side also there, you know, a little bit of supply shocks. Were there say 12, 18 months on some, some few components that have been taken care of.
So there is no specific challenges that we see right now.
Unidentified Participant
Okay. Okay. So thank you.
operator
Thank you. Our next question comes from the line of Kushnahar from Electrum Portfolio Management Services. Please go ahead.
Khush Nahar
Yeah, thank you for the opportunity, sir. So just one question on the four wheeler side, are we open for any acquisitions or are we looking at that so that you know our time to market becomes a bit faster instead of putting up a greenfield for greenfield facility from the start.
Vineet Sahni
Yeah. To answer your question, yes, we are open for acquisition and high growth route. However, we are also conservative in acquiring any organization because it has to be a right fit with our philosophy. So we will see in future how.
Khush Nahar
It develops anything as we’re looking at currently at advanced stages for the four wheeler or golden.
O.P. Gupta
No.
Khush Nahar
All right, sir. Thank you.
operator
Thank you. Our next question comes from the line of Anubhav from Prescient Capital. Please go ahead.
Unidentified Participant
Thanks for the opportunity. So apart from Mercedes, is there any. International OEM that we are like working. With. To get new order?
Vineet Sahni
We have a very. We have a very initial working which has started for another OEMs which we will talk later. It is at a very initial stage but we are talking to them. In fact they have approached us. So we are working on them.
Unidentified Participant
And on the aftermarket business. Is that a focus area and are we trying to like grow that? Because that has remained flat for quite some quarters. So if you can like throw some light on that.
J.K. Jain
We are working with OEM and the product belongs to our product. Whatever is being developed is belongs to the customer. And we are. We are bound to as per with the agreement we cannot solve sold those supplies to market. So market is.
Unidentified Participant
But you do have a.
J.K. Jain
There are a few products which are. There are few product which is being developed by us in past like for some specific customers wherein we are not in oem. We are supplying and that market is very just. And another point is now the new. All the new businesses, whatever is being developed, those are all in LED which is having no aftermarket. It is already being used only once there is accidents.
Unidentified Participant
Get that. I will get back into you. Thanks.
operator
Thank you. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. Our next question comes from the line of Vijay Kumar Pandey from Nuvama. Please go ahead.
Unidentified Participant
Thank you for taking my question. I’m just a couple of questions.
operator
Sorry to interrupt you sir, but can you speak a little louder?
Unidentified Participant
Is it okay now?
operator
Yeah, please go ahead.
Unidentified Participant
First I wanted to check in terms. Of.
operator
Sorry to interrupt you sir, your voice is breaking.
Unidentified Participant
Hello. Is it okay now?
operator
Can you move to a different environment and speak something?
Unidentified Participant
Is it okay now?
operator
Yeah, please go ahead.
Unidentified Participant
Yeah, I wanted to check about our volunteership with market share with HMSI and Yamaha. I just declined as compared to what it was previously because our growth has been slightly low lower than what they have been growing. At least the production Rate at which they have been growing. So just want to understand if you can throw a little bit light on that.
J.K. Jain
See it is already being replied in last question also because this is all depend on the model model mix which model is running good, which model is doing good, which state is good, which model which state is doing good. So this is only the model mix wherein overall market grew by HMSI is 18%. We are at 14. So we are, we are stable there there is no market drop.
Unidentified Participant
Okay. Between the model we are not present with smsa.
J.K. Jain
There are few like highness headlamp we are not supplying front lighting is not supply area is not supplying. So there are fuel product wherein we are not there. But most of the market we we and most of the vehicles segment we are our presence is there.
Unidentified Participant
Okay sir, thank you. And second is I wanted to understand about your plan to get into the electronic segment. How do you see that electronic segment to be developing and what like which are the products you are targeted to get into? Because electronics include some variety of segments. So if you can give little bit of the electronic.
J.K. Jain
Yeah, these are the part of lighting only. And what all LED business we are doing it is being well designed and developed in house only. All smt, EMS processes being done in house. And additionally the testing facilities which is being under installation commissioning which will very soon be start. That will also enhance our overall R and D capability which will be kept 100% of captive uses for lighting business.
Unidentified Participant
Okay. Okay. Okay. So as such we are not getting into. We will not be supplying any external electronics product.
J.K. Jain
No as of now.
Unidentified Participant
Okay. Okay sir. Thank you. Thank you. And all the best for upcoming quarters.
J.K. Jain
Thank you.
Unidentified Participant
Thank you.
operator
Our next question comes from the line of Vinay Nadkarni from Hathaway Investments Private Limited. Please go ahead.
Vinay Nadkarni
Just wanted to check out is there any input costs going up because of supply constraints or anything of that sort?
J.K. Jain
Nothing specific. And if it does, you know as we mentioned it is kind of passed on. It sometimes comes with a lag but otherwise all the input costs are passed on on a rolling basis.
Vinay Nadkarni
Okay. Secondly can you help us with your Q3 capacity utilization of your plants? Roughly what would it be?
J.K. Jain
Between 77, 78 odd percent. But you know again these numbers also depend on how many shifts you are running and so on and so forth. But I think overall we are well positioned with our CAPEX plan for the next year we’ve already spent close to 80 crores. In nine months we will spend another 20 crores and also setting up enough capacities for future. So. So that we can handle the growth going forward in the next two years.
Vinay Nadkarni
Okay, and what are these capex spent on in this year? If you have covered it somewhere, I’ll just pick it up from there.
J.K. Jain
No, there is no specific we have given the plant wise or the. But this is basically on the machine machines and expanding the manufacturing capacities only and some part is at the Tapukada facilities.
Vinay Nadkarni
Okay. And lastly, does this FTA with EU and UK open up some opportunities for exports directly to manufacturers abroad or is that not possible?
J.K. Jain
Generally we deal with the entities here in India. Who’s an onward export? So for example a Yamaha or a Honda really export onwards? We do not directly export except for a few.
operator
But there’s some disturbance in the background, Mr. Vinay.
Vinay Nadkarni
No, there is no disturbance here.
operator
No, it’s from your end actually. Okay, please go ahead.
J.K. Jain
Yeah, so there is no major implication. As we explained, most of the exports that we have are in the form of indirect exports export where we actually export to the. We sell to the local entity with the Honda and Yamaha who further export. So they may get a filip further.
O.P. Gupta
Like Norton is being taken over by TVS which will be indirect sales to UK Also the product will be supplied and manufactured here and will supply to TVS. And TVS will forward it to uk.
Vinay Nadkarni
No, no. What? What I. Yeah, yeah, that you had explained last time. What I was trying to understand is for manufacturers in Europe and in UK two wheeler manufacturers. Would you like to. I mean would you be exploring opportunities to supply to them directly? Not those who are manufacturing in India.
J.K. Jain
We are already supplying like in Europe we supply directly to Piazzio Aprilia. We supply directly both the customers from year two for their. Their different models.
Vinay Nadkarni
So this FTA will help you.
J.K. Jain
Not such. It is already in regular supply and it is. It will not be.
Vinay Nadkarni
Thank you.
operator
Thank you. Our next question comes from the line of Viraj, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hi. Thanks for the opportunity. Just two questions. One is if one has to understand. You know, you talked about increase in electronic content. So the current lighting, you know, LED modules which you supply to customers. If you take that as a base of hundred then how much the content increases post increase electronic content? Any rough indication.
O.P. Gupta
It is totally be depend on product wise. It is very difficult to say percentage but it always varies from 30% to. 80%
Unidentified Participant
on the existing base itself. Would I be right?
O.P. Gupta
Yes, exactly.
Unidentified Participant
Okay, got it. And so this one last question was. And there is to Mr. Jain. So our cash levels, if you see, you know that will just keep on increasing. So despite the capex which we are planning and even, you know, even accounting for the potential PV plan capex the overall cash position in the company will just keep on increasing. So how are we thinking about utilization of this? I mean I’m just asking more from a two, three or five year perspective, you know. You know, how are you thinking about utilization of this surplus cash?
J.K. Jain
Yeah, so we want to be well positioned for any growth opportunities that may come by whether it’s or organic, inorganic, whether it is in four wheeler or whether it is in a in our two wheeler related space. So at this point of time there is expansion anyway as we mentioned, 200 odd crore capex going through in the next 18 to 24 months. But yes, you’re right, even then we will have some surplus and I think we will at the appropriate time take a call. But at this time we think business presents opportunities which we could utilize this cap at some point of time and we are constantly looking for such opportunity.
Unidentified Participant
Okay, thank you and good luck.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Our next question comes from the line of CA Garvit Koel from Serene Alpha analytics llp. Please go ahead.
Unidentified Participant
Hi, thanks for the follow up. Regarding the growth part we are guiding for 15 to 20% kind of growth, right? Which is more or less equivalent to our historical average of 15%. But if I look at your competitor they are on the higher base, right? And they are growing and expecting to grow. They are providing the guidance of maybe more than 20% kind of number on such higher base. I agree that right now we are in two two wheeler segment but next year onwards I’m expecting based on your commentary like we will be getting contribution from four wheeler meaningfully, right? So considering that thing in mind on a lower base as compared to the competitor why are not we aggressive in the terms of the growth outlook? Sir?
J.K. Jain
So on the four wheeler side I think we’ve already explained that we will kind of present you with those numbers. Those numbers are on top of this is the organic rate of growth that we are talking about 15 to 20 and obviously we will strive for more but our guidance continues to be in this range at this point of time as and when four wheelers take shape and there is a significant uptrend there we will add on to this growth.
Unidentified Participant
Thank you for the clarification. Thank you.
operator
Thank you. Our next question comes from the line of Srikanth an individual investor. Please go ahead.
Unidentified Participant
Yeah, thanks for the Follow up post. Q3 CAPEX. What would be the current cash level?
J.K. Jain
So this is 22, 222 crores as of 31st December.
Unidentified Participant
Yeah. Thank you. All the best.
operator
Thank you. Our next question comes from the line of Kushnahar from Electrum Portfolio Management Services. Please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity again sir. So my question was more on the electronic side. So like we mentioned going on we focus more on electronics. So I just wanted to understand this will be beneficial to us more in terms of content per vehicle. So on the revenue side or more of backward integration which will help in you know maintaining 14 plus 14 to 16% EBITDA margins. So where will we get the value from?
J.K. Jain
This will definitely be increase the value also. And another point is like in our CMD speech we are already working on upcoming technology wherein laser, wherein adb. Where in metrics. This will also give us a positive sign once you have electronics RD facilities in house and testing and validation also.
Unidentified Participant
So it will be both on revenue side also plus benefit of the beta margin also.
J.K. Jain
Sure.
Unidentified Participant
Okay sir. Thank you.
operator
Thank you. Our next question comes from the line of Sahil Sankp from Monarch Net Worth Capital Ltd. Please go ahead.
Sahil Sanghvi
First of all congratulations for very good numbers. My first question is so this year what will be the total capex target and next year how much will we spend?
J.K. Jain
This year will be 100 crores for FY26 and for the next two years we think it could be upwards of 200 crore. Around 200 odd crore.
Sahil Sanghvi
So 200 total, right? I mean not each but 200 total for next two years.
J.K. Jain
Total for the next 24 months.
Sahil Sanghvi
Okay, okay. And secondly at the start of the call Jenser did say that there is a lot, a lot of planning going around green energy rollouts across the manufacturing units. So if, if you can give some more information on that. What kind of capacity of power plant are we trying to add and what kind of savings can we expect on the power cost?
J.K. Jain
So Sahil, thank you for this Green energy initiatives and whatever the renewable energy we are implementing across our plants. One major part is the solar. Solar in the both form that is rooftop as well as the open access and in the south we are also exploring the wind energy. Maybe next one or two quarter you will get a clear picture where we are. And but this initiative is already, you know we are rolling it out and you will see the impact in next two, three quarters.
Sahil Sanghvi
So this will any timeline when this can get commissioned if you can help us.
J.K. Jain
Okay, so let me clarify this rooftop we will be implementing. So it is. It takes around four to six months time depending upon this capacity. And open access is very, you know, timer. So it is around one month or two months time. No, no, that. So to. To start with we can start for the open access it takes around two months time to start and then gradually that it is implemented. Maybe next.
Sahil Sanghvi
Yeah.
J.K. Jain
So maybe after 2, 3/4 you will get the clear picture.
Sahil Sanghvi
Okay. Okay, thank you. That’s all for myself. Thank you.
operator
Thank you. My next question comes from the line of Vinay Nadkarni from Hathaway Investments Private Limited. Please go ahead.
Vinay Nadkarni
Yeah, just one, one query we had. See there is so much of dependence on one single sector automotive. You had in the past said that you are also looking at exploring other areas of indoor and outdoor applications. Any progress on that? Because today the automotive sector is doing well. So we are happy.
O.P. Gupta
No, we’ve always been automotive focused company and that is something that we have always done. And I don’t think we mentioned anything on the outdoor. So our focus will continue to be and our fortunes will continue to be driven by auto industry. Where the is positive or negative, it will be driven by auto. So there is no other sector specific outside of automotive that we are looking at.
Vinay Nadkarni
Okay, fine. Thanks a lot sir.
operator
Thank you. Our next question comes from the line of CA Garvit Koel from Serene Alpha analytics llp. Please go ahead.
Unidentified Participant
Hi, thanks for the follow up again. So you mentioned our certain products are not getting. We are not providing to our end customers Yamaha and hmci. So I just wanted to understand what is the reason for that? Why aren’t we not providing these products? Are these products getting provided by any other competitor of ours only or what is the scenario?
J.K. Jain
I think this is. Let me clarify it again we are talking about. We were explaining to one question that how we are supplying to the export and any global market. So what the OEM do they take this product from us in India by their Indian entity only and then onwards they supply to their plants in Europe, in Indonesia, in Japan, wherever there. So that is the route. Otherwise there is no such thing that we don’t supply to our customers.
Unidentified Participant
No sir, let me repeat. I’m just trying to understand like the growth. I think our customers are growing at a higher pace in this particular quarter than the growth of R. So that is why I think you explained some of the products we are not supplying. So on that part I’m trying to understand from you key who is providing those products to those customers?
J.K. Jain
Maybe different competitors. They may be supplying but whatever product is being supplied by us, it is totally depend on the requirement from the individual customers from work. So global. Global requirement is not stable like India. Like domestic market here in India it is totally be a depend on the area. And month wise there are a few products which is always be run during high winter season. For production of two wheeler vehicles is always be reduced there. So this is a cycle only. And we are. Whatever model mix volume is being fixed at the time of rfq these are all being supplied by us.
Unidentified Participant
Understood? Understood. And it is not like the demand for the models which we are catering is not getting reduced. Right? It’s not like that.
J.K. Jain
No. No. It is not like. It’s not like that.
Unidentified Participant
Okay. Understood. Thank you.
operator
Thank you. Ladies and gentlemen. As there are no further questions from the participants I now hand the conference over to Mr. Sahil Sangvi for closing comments. Over to you, sir.
Sahil Sanghvi
Go ahead sir, please.
J.K. Jain
Yeah. I would like to thank everyone for participation in today’s conference call. I hope that we have adequately addressed all your queries. If you have any further questions, please. Don’T hesitate to contact us. Thank you and have a good evening.
operator
Thank you. On behalf of BONAC Net Worth Capital Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.