Gala Precision Engineering Ltd (NSE: GALAPREC) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Unidentified Speaker
Heena Khatri
Srinivasan Giridhar — Chief Financial Officer
Balkishan Jalan — Whole Time Director
Analysts:
Unidentified Participant
Hiral — Analyst
Darshan — Analyst
Tuti Agarwal — Analyst
Ajit Sethi — Analyst
Presentation:
operator
Ladies and gentlemen, you are connected to Gala Precision Engineering Limited Earnings conference call. Participants are requested to stay connected. The conference will begin shortly. Thank you.
operator
Ladies and gentlemen, good day and welcome to the Gala Precision Engineering Ltd. Q3&9M FY26 Earnings Conference Call hosted by Valorem Advisors. As a reminder, all participant lines will be in 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 touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Heena Khatri from Valorum Advisors. Thank you. And over to you, ma’.
operator
Am.
Heena Khatri
Thank you.
Heena Khatri
Good evening everyone and a warm welcome to you all. My name is Heena Khatri from Valorum Advisors. We represent the investor relations of Gala Precision Engineering Ltd. On behalf of the company and Valorum Advisors, I would like to thank you all for participating in the company’s Earnings call for third quarter and nine months ended of financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Such statements are made on management’s belief as well as assumptions made by the information currently available to management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decisions. The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and the financial quarter under review. Let me now introduce you to the management participating with us in today’s earnings call and hand it over to them for opening remarks. We firstly have with us Mr. Balki Singh Jalin who Mr. Satish Kotwani, whole time Director and Mr.
Srinivasan Giridar, Chief Financial Officer. Without any further delay, I request Mr. Balkishan Jalan to start with his opening remarks. Thank you. And over to you sir.
Balkishan Jalan — Whole Time Director
Yeah. Thank you, Hina. Good evening everyone and welcome to our earning call to discuss the performance of the third quarter and nine months of the financial year 2026. In the interest of the people who are new to company, let me first give brief overview of the company. Kala Precision is a preferred manufacturer of the high precision quality component. We serve various sectors like renewable energy, industrial and mobility. Geographically we are diversified across sale in India, Europe and USA. We supply to OEM, Taiwan and channel partners. We manufacture customized product of over 750 SKU to serve almost 175 active global customers across 25 countries.
Our facilities are fully equipped with advanced technology and integrated capabilities for designing, developing and manufacturing a diverse product portfolio. To further strengthen our manufacturing footprint and expand the product range, we established a new facility in Chennai. The plant will focus on products producing various high tensile partner including bolts. These are mainly complementing the existing products and enhance our ability to meet customer demand for revenue mix prospective. For the nine month period, DSS account for approximately 48% of revenue providing a stable base of recurring volume. SFS contributed around 35% reflecting strong growth momentum and increasing customer option while CSS represent about 17% supported by steady demand across industrial and renewable energy applications, the SFS DB segment continued to be key growth driver during the period the strong traction across customers and programs.
For the nine months segment revenue grew 108 percentage year on year while the third quarter revenue increased 1 49% year on year reflecting sustained demand momentum and improving capacity utilization. Our operation at the Chennai facility progressed well during the quarter with volume scaling up across approved customer program. The plant generated approximately 11 crore of revenue in the third quarter making steady progress in building scale at the new facility during the period we conclude price agreement with four leading wind turbine OEM for new bolt product to be manufactured at our Chennai facility, strengthening our position in the renewable energy supply chain.
We also expanded into new industry segments such as equalizer and sector implements of fastness while continuing scale up our gallop business further diversifying our revenue base. The DRL segment, despite being the niche product category, delivered a strong performance with the sales growing 37% year on year in quarter. The growth was primarily driven by the high higher export fraction with export increasing their contribution from 44% to 51% of GSS revenue. Further, we continue to take focused steps toward cost optimization and sustainability. We have initiated development of 1.8 megawatt solar power plant under the OPENSS model for captive consumption.
The project aligns with our ongoing efforts to reduce power cost and move toward the carbon neutral power consumption. A total CAPEX for the project estimated approximately 6.2 crore including one time statutory approval. We already issued purchase order to the EQC contractor and appointed technical consultant for overall project support and review. The project is expected to be completed within six months subject to the necessary government approvals and will be funded through bank borrowing. In addition, we will be migrating to SAP Hana in financial year 2027. We finalized five year license agreement with SAP India and plan to commence implementation by quarter one of the financial year 27 with the targeted to go live in early quarter or quarter three of the financial 27.
We have committed a five year subscription agreement with a total fees of 3.48 crore payable over five years. With the escalating annual payments, we are currently in the process of evaluating financing implementing partner. This upgrade is expected to strengthen our core system, improve operational efficiency and enhance scalability to support the future growth. Overall, we are pleased with the strong operational momentum and steady execution of our strategic priorities around the innovations, customer diversification and ongoing investment in facilities. With that I will now hand over to our Chief executive financial officer Mr. Girdha who will take you through the financial highlights for the period under review.
Thank you.
Srinivasan Giridhar — Chief Financial Officer
Good evening everyone and welcome to the Earnings Call. Today let me provide a brief introduction to financial performance for the third quarter and nine months ended of financial year 2026. For the quarter ended review, consolidated revenue from operations stood at around 85 crores reflecting the 47% Neron guarantee. EBITDA for the quarter stood at around 15 crores marking a 90% year on year increase. EBITDA margins of 13.12% improving by 387 basis points supported by favorable exchange gains on export revenue reduction in personal cost as a percentage of sales. Net Profit stood at 9 crores representing a 57% year on year loan with PAT margins at a 9.73%.
For the nine months of financial year 2026. Revenue from office should stood at 220 crores reflecting a healthy 35% year on year growth. EBIT for the period stood at 35 crores reflecting a percent year on year increase. EBIT margins were at 16.07% declining by 110 basis points during the period. Net profit for the bread stood at 23 crore DENG a 38% year on year increase in pack margins at 10.56%. During the period, profitability was impacted by certain one time exceptional items including a provision of approximately 9.4 million related to the Notification of the New Labor Code as well as approximately 7 million of export revenues under the Remission of Duties and Taxes on Exported Products Schemes.
With this we can now open the floor for Q and A session. Thank you.
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 attach tone telephone. If you wish to remove yourself from the question queue, you May press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Hiral from Kshatranjaya Investments managers. Please go ahead.
Hiral
Yeah. Hello.
Unidentified Speaker
Hello.
Unidentified Speaker
Yeah. Hello. Please go ahead.
Hiral
Yeah. Good evening sir. Am I clearly audible?
Unidentified Speaker
Yes, ma’.
Unidentified Speaker
Am.
Hiral
Yeah, sir, I wanted to know that in the current results I could see that the EBITDA is expanded but the PNL is flat. So what is the reason behind that?
Unidentified Speaker
The reason madam is this. In this quarter we had there was a one time hit on account of retirement benefits due to the new labor code which is 94 lakhs. Apart from that there is also a reversal of 17 lakhs of road tax income that also impacted the process. Overall impact in the profit was 1.64 crores. Which is the reason the profit remains flat in this quarter compared to previous quarter.
Hiral
Okay. And are you expecting that the margins will be sustainable in the further quarters and the year end?
Unidentified Speaker
It will. Margins will be stable around 70 to 90% in the coming quarters also year end.
Hiral
All right. All right. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question is on the line of Dimit Mehta, an individual investor. Please go ahead.
Unidentified Participant
Good evening sir. So I have two questions. So the first question is. So the SFS reported a very strong year on year growth this quarter. So is this largely driven by an increased business with the existing OEMs or is there any new customer items?
Unidentified Speaker
Yeah, so I think for SFS basically it is driven by both. So with existing customer we are adding and increasing the wallet share of products which we have been already supplying. And also we are getting new products from these existing customers. And parallel because of our continuous business development efforts in India and in the global market we are adding new customers. So this is combination of all the factors combining this high growth.
Unidentified Participant
Okay sir. And like the second question is like why has the finance cost increased in this quarter and what are the current debt levels as of company?
Unidentified Speaker
Yeah, I’ll answer that. Final cost increase may due to increased use of working capital facilities, growth in.
Unidentified Speaker
Revenue. And the current debt level is around 4572 crores.
Unidentified Participant
Okay sir. Okay. Thanks. Thanks for the opportunity.
operator
Thank you. Participants who wish to ask a question may Preshtar and 1. The next question is from the lines of Darshan from internal capital. Please go ahead.
Unidentified Speaker
Yeah.
Darshan
Hi sir. Thank you so much for the opportunity. I just wanted to ask when is the. I think phase two of this mi Plant expansion expected to commence.
Unidentified Speaker
Yeah. Hi. Yeah. So phase two, as of now we are almost at the peak of utilization of the phase one capacity which is. And phase two, as we plan we will be starting in Q1 of FY27 in the next quarter.
Darshan
In the next quarter.
Darshan
Okay.
Darshan
Understood. And sir, could I get a general outlook? What are you expecting from the industry?
Unidentified Speaker
We always maintain we are seeing the revenue growth of 20 to 25% in years.
Darshan
Okay. So as previously maintained.
Unidentified Speaker
Right? Yeah. Yeah. We are still maintaining that.
Darshan
Perfect. Understood. Thank you so much, sir. Thank you. Thank you.
operator
Thank you. The next question is from the line of Tuti Agarwal from Chhattisgarh Investment limited. Please go ahead.
Tuti Agarwal
Thank you for the opportunity. Sir, I just wanted to ask about the reversal of the 7 million with respect to the export incentive. So could you throw some light on that or what is it about?
Unidentified Speaker
Mainly that this is relating to the partner products in which we had inadvertently claim export incentive of 17 lakhs. And so the notification in depth. We came to note that the fast this incentive which was earlier available under any has been enrolled under the road. And although the customs had allow it. But later on during audit this bond got highlighted. Hence we had to reverse the entire benefit in this quarter itself.
Tuti Agarwal
All right. Thank you, sir.
operator
Thank you. Participants who wish to join the Q and ask questions may press star and one on the Touchstone phone. The next question is from the line of Manasvi Sharma, an individual investor. Please go ahead.
Unidentified Participant
Hi. Thank you. I just had two questions. One was on the inventory days which had increased earlier due to the Chennai ramp up. So I just wanted to know if the inventory levels have started to normalize in Q3. Hello.
Unidentified Speaker
Yeah, Inventory. They had increased earlier due to the Chennai. Now it is on the reduced regimen. But it will take another couple of quarters to actually stabilize.
Unidentified Participant
Okay. And just another one. To what extent was the higher tax expense in Q3 influenced by one of adjustments or was it just a timing difference?
Unidentified Speaker
No. See as we got the time we saw tax benefit in quarter one and quarter two which are large.
Unidentified Speaker
Not that.
Unidentified Speaker
Hence the tax provisions are higher. Secondly the provision of 94 lakhs also higher tax.
Unidentified Participant
Okay. All right. That’s awesome. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. The next question is on the line of Ajit Sethi from Eco Quantum Solutions. Please go ahead.
Ajit Sethi
Thank you for the opportunity. Margins expanded from 15.5% to 17% around. So what was the reason for this margin expansion and Going forward, can we expect similar margin? Is the margin sustainable going forward?
Unidentified Speaker
EBITDA margins on after division Y basis the contribution of exceed gain in export revenue and reduction in personal cost as a percentage of sales. And because of this, this resulted in the cost percentage reducing by almost 2%. And also the personal cost also reduced by 2%. And that is the reason the margins.
Unidentified Speaker
Expanded in the quarter.
Unidentified Speaker
Yes, the margins will be able to sustain between 70 to 90% going ahead.
Ajit Sethi
Okay, sir, thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. The next question is a follow up question from Darshan from Internal Capital. Please go ahead.
Darshan
Yeah, hi sir. So I know you talked about the 20% and you want to maintain that, but I just wanted to understand with the current reduction of tariffs, do you anticipate any impact on demand or a ramp up in the order book as such? I know that you are not, you don’t want, you want to be like conservative with the 20% but, but maybe a little more.
Unidentified Speaker
So to be specific, I think this year we are targeting to grow around 28%. And next year onwards again we are still targeting to grow 20 to 25%. As far as the tariff is concerned, I think for us reciprocal service reduced from 25 to 18%. And Russian oil sanction which is likely to get removed, which was 25%. But the point is the products what Gala is manufacturing are springs and fasteners which fall under Section 232 of the US Trade Law. And in this section there is no relief given as of now. So these products which fall under section 232, if they are imported in US, we have to pay, our customer has to pay actually 50% which is applicable on India and also if you import from Europe, except UK.
Unidentified Speaker
Point of view.
Unidentified Speaker
We don’t have any major release. But in case there is substantial reduction in section 232 terrorists, then we might see some improvement from the demand.
Darshan
Okay, yeah, that helps a lot. So I know now what to track. Exactly. So that helps. And one more question I had on the what is the current status of validation and commercialization of seat retractor springs?
Unidentified Speaker
Yeah, seed retractor spring. Basically we have completed the tasting and validation at the customer end and after that we also supplied them small lots which they have again tested. Considering this is a very critical product. And now we are expecting pilot orders from customer in this quarter and slowly we may start ramp up month on month in quarter one, quarter two after supplying this pilot lot which is expected to be supplied in this quarter end or early next quarter.
Darshan
Right. Okay, perfect. Thank you so much sir.
Unidentified Speaker
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. The next question is from the line of Krupa, an individual investor. Please go ahead.
Unidentified Participant
Hello.
Unidentified Speaker
Yes, hello.
Unidentified Participant
Yeah, could you actually please share some.
Unidentified Participant
Like put some light on the solar projector.
Unidentified Speaker
Under the OPEX under the model for capital consumption. And basically this will help us in.
Unidentified Speaker
Reducing the.
Unidentified Speaker
Power cost and also you know in line with the achieving carbon neutral in the power and with it will complete it.
Unidentified Participant
Okay, thank you sir. But since you mentioned that you’ll be lowering the cost so what could be the over and above benefits that we could have from that.
Unidentified Speaker
Overall. On an annual basis?
Unidentified Participant
Okay, thank you.
Unidentified Participant
Sir.
Unidentified Participant
Just one last question from my front that with the whole wind renewable energy market since we are expecting to see like a good increase in number of installations and also the Demand from the OEMs is also rising. So how do you see the company positioned in the whole like in this space?
Unidentified Speaker
So I think currently we are very well positioned. Basically we started with all the wind oems with studs which we were manufacturing and continue to manufacturing in Vara plant. And most of this OEM also need gold which are high tensile critical partners. And with Chennai facility we invested in the forging. And with the same OEMs now we are also started getting size agreement pilot lot supplies for both. I think our basket is increasing in terms of product offering for wind industry. And this is one of the reasons we are seeing good growth coming in the partner business in nine months and particularly in quarter three when we started delivering also from our Chennai facilities.
So we are positive to continue this growth momentum in wind industry and ride on this growth which is targeted by the oem.
Unidentified Participant
Got it sir. Thank you so much.
operator
Thank you. Participants who wish to ask a question may play star and one. The next question is on the line of Vishal Mahru, an individual investor. Please go ahead.
Unidentified Participant
Hi. Congratulations on good seven numbers. We’re just curious in terms of how important is it for the company to invest in key research and development R D areas to stay ahead in precision materials manufacturing processes over the next few years. And how’s the company looking at some of this?
Unidentified Participant
Thank you.
Unidentified Speaker
Yeah.
Unidentified Speaker
Yeah, hi. Yeah, Mr. Madhu is a good question. So basically there is a scope for research and development but in Gala basically we are focusing more on the development side where we focus on the market development, focus on the new product development, focus on the product improvement process improvement side. Because the globally these are the things which are very easily acceptable in OEM if you are doing something in from the India and in historically also we focus and incur cost in the new product development. And we are continuing to do that in future as well.
Unidentified Participant
Okay, thank you.
Unidentified Participant
Thanks for the explanation.
operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is from the line of Marich at individual investor.
Unidentified Participant
Hello.
Unidentified Speaker
Yes sir, you’re audible.
Unidentified Speaker
Please go ahead.
Unidentified Participant
Could you please share some details on the new project which is currently in the focus and you know how the company identifies and finalizes the new products which are under currently development. So please could you share some light on this?
Unidentified Speaker
I think basically we are a customer driven organization. And basically as I mentioned, we were supplying some type of partners when we started business of partners with window em and as we entered them, we were successful in getting the opportunity for studs. And then we Understood that same OEMs they buy a lot of gold and nuts. So we got into manufacturing of bolts and nuts at the same time. Once we develop any new products, for example sturge nuts or bolts, we try to diversify the industry segment. For example, we started with wind as a segment for partners.
But today we are developing the market in industrial application. Like off highway equipment, tractor, mining equipment are our focus market railways. We are developing the market in India. The objective is to increase the wallet share with each customer by adding more and more products. And also identify the opportunities of develop products with other industry segments. And as a focus we are continuously targeting to find new business opportunities or new customers in renewable mobility and industrial sector for any new products or getting new customer for developed product.
Unidentified Participant
Oh, okay sir.
Unidentified Participant
About the electrolyzer and tractor.
Unidentified Speaker
Yeah. For example, recently we added new customers in electrolyzer segment where they use fasteners and our disc spring. And earlier we were supplying our products only for tractor industry. But now we started supplying our fasteners and galok wage lock washer for tractor implementation application.
Unidentified Speaker
So we just keep on adding the. Segments and products in different vertical.
Unidentified Participant
Oh, okay, sir. Goddard completely. So are we witnessing any demand slowdown in the segment? Given the decline in the revenues from this segment?
Unidentified Speaker
Which segment you mentioned?
Unidentified Participant
Auto automotive segment.
Unidentified Speaker
Automotive as a absolute value. The business is growing. But I think because of much higher growth which is coming in industrial and renewable. Because of India and Europe, the percentage share of automotive or mobility is reducing our business. But in general we are seeing also growth in aspect numbers in automotive. But our products like partners or even the new products like wage lock washers have more demand in renewable and industrial. That is why we are seeing much higher growth in those segments.
Unidentified Participant
Oh okay.
Unidentified Participant
So.
Unidentified Participant
Okay. So thank you, thank you, thank you.
operator
Thank you. Participants who wish to ask a question may prestar and one on the touchstone telephone. The next question is from the line of Jimmy Mehta an individual investor. Please go ahead.
Unidentified Participant
Good evening sir. Thanks for the opportunity once again.
Unidentified Participant
So my.
Unidentified Participant
One of my questions was key. What is the management outlook on the export to the US and the Europe? Revenues from these regions are expected to remain stable or is there a strategic focus on increasing revenues from these regions?
Unidentified Speaker
I think broadly export contribute between 35 to 40% of our sale and the reason is whatever normally new products we launch, we launch first in India and we stabilize the supply chain understand customer customer demand and then also develop the global market for that. As far as the European US is concerned we broadly see that demand will remain in that level of 35 to 40% exports and currently UF is around 20% and US is around 14%. So and quarter on quarter this is there may be couple of base point plus minus but overall I think export will remain around 35% to these two regions mainly.
Unidentified Participant
Okay so and like my second question.
Unidentified Participant
Would be so what were the key.
Unidentified Participant
Drivers behind the increase in margin during this quarter and what would the would be the like guidance for on the margin side going forward?
Unidentified Speaker
Yeah, the one is the contribution of exchange gain in the export revenue and also the reduction in person. So this resulting in the reducing by around 2% also reduced by 2% and going ahead. Yes, we will be able to sustain the margin between 17 to 19%.
Unidentified Participant
Okay and my last question would be what is the maximum revenue potential of the fastener segments and at steady state operations.
Unidentified Speaker
Yeah. Hi. So at Chennai we are saying once we complete phase two we can be in a position to touch 110120 crore from that plant. And for faster particularly you are so for fastener in we have a facility at Vada there we can touch the revenue of around 80 crore. 200 crore. So that’s a faster output together than 200220 crore which we can touch.
Unidentified Participant
And what would be the investment for that?
Unidentified Speaker
For Vara we have already invested. We are not seeing any major investment and because there is a space constraint in the present plant but at WADA we are or some new location we are planning to add 5 to 10 acre land in the coming month and then we will be planning the capex. So that’s still not final because we are still waiting for land to get finalized and we have time at Chennai to complete the phase two. We will be incurring approximately 8 to 12, 9 or 10 crore approximately which we already plan in your IPO.
Unidentified Participant
Okay, so. Okay. Thank you. Thank you for the opportunity.
operator
Thank you. Participants who wish to ask a question may press start and run. The next question is from the line of Ms. Chai Desai from RR Investments. Please go ahead. So Nishai requesting you to kindly unmute your mic.
Unidentified Participant
Yeah, I’m audible. Hello.
operator
Yes, you’re audible.
Unidentified Participant
So we have plenty of scope in our existing renewable segment. But any plans even distant of getting into the aerospace fastener space due to the sheer size of the opportunity which lies in front of us like for India.
Unidentified Speaker
Yeah, I think basically we are understanding the market’s growth and opportunities in different segments and what products Dala can supply in these markets. So currently as you mentioned we are focusing on renewable industrial mobility and at least in short term, definitely we want to have more opportunities from these segments and growth from the global market. But definitely we keep on looking at broader opportunities and definitely aerospace is one of them which is just under study. But we don’t have any concrete plan as of now. But maybe in midterm we will have some opportunities coming from these segments going forward.
Unidentified Participant
Okay sir, thank you.
operator
Thank you. Participants who wish to ask a question may press star and val. The next question is on the line of Patel, an individual investor. Please go ahead.
Unidentified Participant
Hello. Hi sir, I just wanted to ask that what is the current order book position and what order inflow do you expect from for the current quarter and also for the end of this year? Like by the end of this year.
Unidentified Speaker
Normally we have orders coming in regularly and apart from orders we work with many OEMs and tier one companies who release three to six month forecast and firm demand for the current month. So considering this, normally we have order book of around 85 crores as of now. And normally we see this order book to keep on growing at the growth rate what we are projecting for next year, for example, 20 to 25%.
Unidentified Participant
Okay. And also one more question I have. What is the hedging policy for euro and USD export exposure?
Unidentified Speaker
Yeah G. I will answer that.
Unidentified Speaker
We normally take 6 to 12 forward covers covering 50 to 70% of our export revenue. Considering uncertainty, we have now reduced the power coverage coverage to around 30 to 50% of the exports.
Unidentified Participant
Okay. Okay, that answers my question. Thank you.
operator
Thank you. The next question is from the line of Rohan Kapani, an individual investor Please go ahead. Hello.
Unidentified Participant
Good afternoon.
Unidentified Speaker
Good afternoon.
Unidentified Participant
So my question was on the line of the growth. So despite the strong sequential revenue growth in the Q3, so you know the pat remained very flat.
Unidentified Participant
So was there anything underlying margin pressure.
Unidentified Participant
Excluding one of items? Is there anything like that?
Unidentified Speaker
The if you look at the side of the exceptional items there is a onetime provision of 94 lakhs which is on account of the new labor code which has come in this quarter. Apart from that there is reversal of 70 lakhs. You know road tab which is in earlier. So cumulatively it is the impact of 1.64 crore which impacted the profitability in this quarter as well as nine months in that. That is the reason you see the probability event flat in this quarter.
Unidentified Participant
Okay.
Unidentified Participant
Okay. So since you have exceeded the revenue.
Unidentified Participant
Target for the 9M. So would you like to increase the.
Unidentified Participant
Guidance for 2 year down the line or 5 year down the line, something like that?
Unidentified Speaker
I think current year we are expecting to grow by around 28%. But I think for next two years, three years down the line we will still like to maintain 20, 25% guidance and continue to focus to grow beyond these numbers internally.
Unidentified Participant
Okay sir. Okay sir.
Unidentified Participant
And inventory days has also increased earlier.
Unidentified Participant
So due to the I think Chennai ramp up. So have the inventory level started normalizing. In Q3 and going forward what you. Will see in this.
Unidentified Speaker
No, it is an inventory is a reducing trend but a couple of quarters for it to stabilize not in the immediate.
Unidentified Speaker
Hello. Hello. Thank you.
operator
So the participant left.
Unidentified Speaker
Okay.
Unidentified Speaker
Yeah.
operator
Participants who wish to ask a question may press star and 1. The next question is a follow up question from Kripa, an individual investor. Please go ahead. Miss Krupa, kindly unmute your mic.
Unidentified Participant
Hello. Am I audible now?
Unidentified Speaker
Yes, yes.
Unidentified Participant
Yeah, I just wanted to lastly ask that what are those major key growth drivers for coming? You know, short term or medium term perspective?
Unidentified Speaker
I think in general we are seeing the growth will be combination of multiple areas where we are working. So basically one area which we are aggressively working is to expand the market share and increase the wallet share with existing customers. So maybe we start with bit spring and we see the opportunity for fasteners and wakelock washers with them. Or we started with studs and now since we have expanded the portfolio with bolts and nuts. So we add the product category and every year between 10 to 15% we add with the new business development new customers where we are adding globally more and more customer in Europe, US or even in India in basically three verticals which is industrial, renewable and mobility sector.
So I think basically increasing the wallet share, adding new parts from the existing customer and adding new customers are the three major areas where we constantly work and see the opportunities for this growth which we are targeting.
Unidentified Participant
Got it, sir. And with renewable energy, how is your market share in wind turbine fasteners, particularly in the domestic markets?
Unidentified Speaker
I think today in the market share point of view, it will be not very substantial for gala. But as we are continuously adding the customers and products, I think in over a period of next two to three years, we will reach to a good level of around 15 to 20% market share in India.
Unidentified Participant
Got it. And last question, sir, from my side. What is the contribution of the tier 1 company supply.
Unidentified Speaker
In renewable or in general?
Unidentified Participant
In general,
Unidentified Speaker
at company level, Normally we.
Unidentified Speaker
Have OEM, tier one and channel partner, which is distributors. Normally OEM contribute about 40% to 50% depending on the quarter and segment. And tier one normally contribute between 25, 30% and about 10 to 15% is contributed by the distributor and channel parties.
Unidentified Participant
Okay, got it. So, thank you so much.
Unidentified Speaker
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and 1. Ladies and gentlemen, as there are no further questions, I would like to hand the conference over to the management for the closing comments.
Unidentified Speaker
Thank you. All the participants in this evening call. I hope we have been able to answer your question satisfactorily. If you have any further question or would like to know more about the company, please reach out to our IR managers at Valorum Advisor. Thank you, all of you.
operator
Thank you on behalf of Valorum Advisors. That concludes this conference. Thank you for joining us. You may now disconnect your line.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thank you.