Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Harsha Engineers International Ltd (NSE: HARSHA) Q4 2026 Earnings Call dated May. 07, 2026
Corporate Participants:
Vishal Rangwala — Chief Executive Officer, Whole time Director
Maulik Jasani — Group Chief Financial Officer
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Hersha Engineers International Limited conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the Conference over to Mr. Vishal Rangwala, CEO of the company.
Thank you. And over to you Mr. Vishal RangWala.
Vishal Rangwala — Chief Executive Officer, Whole time Director
Thank you. Hello, good afternoon. Welcome all of you to our Quarter 4 FY26 post result update call as per the normal practice. I’ll ask our CFO Mr. Mowlik who will take us through a detail key numbers for the result. However, I’m assuming most of you would have had a chance to go through this and you know, at the outset before I talk about, you know, the results and everything, I just want to kind of quickly summarize, you know, talk about what we are as a company and you know, what we do. So we are primarily and engineering companies with a big focus on segment called bearing cages where we are a very unique player within the market with having competency in steel, brass and polymide products within bearing cages and a very unique position globally having all these competency and precision level catering to very good quality bearing companies and their needs for bearing cables.
And that’s our primary business. And beyond that we have worked over multiple years with big global bearing companies to outsource and supply them this product globally. And we have a very strong market position within India and across the globe as well. So you know that being the primary product. Beyond that we also operate in the sub segment of stamping components using our core competencies. And we also have bushing as another product portfolio where we are both those segments we are growing very well and plan to grow further.
And we cater to a variety of industries through those segments including renewable as well as automotive, consumer goods and other industries. And we are trying to grow business. We actually operate three facilities in India, third one we just commissioned this year in Baila and two facilities, one in Romania, one in China. And through these five facilities we supply our customer base across the globe. And we are currently working on growing business in various segments specifically for us. Growing with Japan based customer, growing the large size business, growing the bushing business as well as growing the stamping business are some of our big growth drivers as we look at our future.
So this is just to you know, get you up to date on, you know, how the area we operate. We put that a little bit of, you know, additional background this time around. Let me jump to the results this quarter. I’m happy to inform our stakeholders that in spite of a current global turmoil which we are witnessing and which could have upset the rhythm of doing business particularly in quarter four of the current financial we have been quite satisfactory and have met most of our internal performance expectations expectation on the key fronts I’m happy to note that our India engineering business including all the key verticals have done very well in quarter four and financial year 2026.
Specifically machines have also reported a revenue of about 127 crore for the financial year 2026 in line with our expectation posting about 25% growth over last financial year. In the current year also we are having a very aggressive growth plan in tune of 25 to 30% in this segment. Our sale of large size KGS grew by almost 14% in FY 2026 and stood at around 49 crores and sales to Japan based customer grew by almost approximately 12% in 2026 and stood at around about 73 crores. In as much as the large size state segment is concerned, we are working very aggressively for increasing our wallet share and lastly if we talk about Japan these customers the progress those low is positive direction and we are committed to growing this segment as well.
India Engineering business which includes Hersha Advantage which is a subsidiary and has posted a good overall engineering business, India has posted a good overall growth of around 14% in FY 2026. Notwithstanding the fact that Advantage new unit and it’s still operating at a lower capacity utilization. First in FY 2026 exports from India have also posted a good robust growth almost 17% compared to FY 2025. Our export to us have also started picking up duly encouraged by fact that recently additional import tariff on KGS has been reduced to zero in us I’m happy to note that capacity utilization in Advantage is improving and we should see the sale from this unit growing at least three times in FY27.
Thus while this in this current financial advantage through has been posted a positive EBITDA 4 crore has still reported a combined loss of 11.4 crore due to higher depreciation and interest. However the bottom line is also expected to improve considerably in the coming financial year. In spite of this drag in the current year our Nvidia Engineering business has posted an operating EBITDA of around 22% in FY2026 which is quite Satisfactory. Now let me talk of a foreign subsidiary. As hinted earlier, China had performed well with an overall top line growth of about 9.26% in FY26 over FY25 and has also posted a positive EBITDA of around 11%.
As announced earlier. We have already commenced implementation of China Brownfield expansion project of steel cages. We believe that this will significantly strengthen the business presence in China and we should expand our product portfolio from a predominantly brass based cages to a good mix of steel and brass cages. This project should come in operation in H2FY28 and we should also see some improvement in EBITDA in China going forward. However, Romania continues to perform below par as it is still having negative EBITDA resulting into a combined foreign subsidiary losses of about 11 crore in the current financial year or FY26.
However, we are trying our best to improve our product mix by focusing more on cases in Romania from current level of around 22% to more than 30 35% and we are also pushing our key customers in Romania to increase their offtake from Romania. We have also started firming up our CAPEX plan for the second phase in Harsha Advantech Harsha Engineers Advantech where our focus will be to create additional capacities for our key growth driver verticals. We will be sharing more details as and when the plans are finalized in next few weeks.
Now talking about our solar business, you might have seen that it has performed very well achieving strong top line and bottom line growth in financial year 2026 mainly on account of continued tailwind due to mix of increasing awareness and a good policy support from the government as well as private sector.
Maulik Jasani — Group Chief Financial Officer
Excuse me.
Vishal Rangwala — Chief Executive Officer, Whole time Director
Lastly I feel confident that the Current financial year FY 2020627 we should achieve an overall double digit growth in top line. Though the growth in India engineering would be little bit more aggressive somewhat in the teams. We are also feeling confident that we should be able to at least maintain our current margin profile through our endeavor though our endeavor is to improve it going forward. I would like to thank you for a continued confidence in Asha and I would like ask Maulik to walk us through more detail more detail with numbers.
Over to you Mauleek.
Maulik Jasani — Group Chief Financial Officer
Thank you Vishalbani.
Vishal Rangwala — Chief Executive Officer, Whole time Director
Hello everyone and good afternoon. I believe you have already seen the numbers and the presentation we uploaded for the investor call for the quarter ended March 26. Our engineering segment at consolidated level have achieved top line of rupees 382 crore and EBITDA of 77 crore in the last quarter against our adjusted EBITDA of 64.3 crore in previous quarter and adjusted EBITDA of 66 crore in the last year quarter four. While for the year ended March 26th the engineering segment has achieved top line of 1444 crore at consolidated level against the 1269 crore last year.
We have reported our consolidated EBITDA for engineering business at rupees 264 crore. However our adjusted EBITDA is around 270 crore if we adjust it for new labor core impact. While last year adjusted EBITDA was 227 crore for our engineering segment for the quarter and year end we observed the margin has improved defined by Visalbai mainly on account of the higher export sales and strong India demand followed by the better product mix and cost control. We also have a positive impact on financial earning as well as EIF.
Solar business have achieved revenue of 183 crore for the full year with a pack of rupees 10.2 crore for the financial year 2526. Against the adjusted path of 5 crore last year. Our overall working capital cycle at consolidated level remain around 130 days at the year end against the 134 days in the previous quarter and 127 days in the previous year. We have incurred capex of 120 crore in the full year and around 20 crore in the last quarter. At a consolidated level our busing business has achieved 127 crore as Vishalji has mentioned.
Just one correction. Our combined loss of subsidiary company in the current year is 9 crore not an 11 crore which has been said and previously it was 14 crore.
Maulik Jasani — Group Chief Financial Officer
11 is on the advantage
Vishal Rangwala — Chief Executive Officer, Whole time Director
And with this brief on the financial numbers I request operator to take the Q and A from the participants. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press Star and then two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles again to register for a question please press Star and then one. Now. Our first question comes from the line of web of Shah from Equidius securities.
Please go ahead.
Vishal Rangwala
Yeah. Hi. Congratulations on a good set of numbers. My first question is on 27. My first question is on the 27% revenue growth have reported during the quarter. So could you provide some color on the contribution from pricing versus the volume growth and were we able to fully pass through
Maulik Jasani
The commodity inflation of the previous quarters.
Operator
Quarter over the context.
Vishal Rangwala
Yeah Q4 hi, thanks Vaikun for your question. And first of all 27% growth which you observe is a consolidated growth and the major contributor is our solar business over there which has grown almost 100% plus 91 crore is the last quarter number while our engineering business growth is 15.7% year similar year over year numbers. So just to break down this Number for your benefit 27 is including solar and if I remove the solar business it is 15.7%. And on your questions for the pass through mechanism yet it is very well established pass through mechanism with the customer.
So so as per our agreed late period it automatically passed through to the customers. Different customer has a different late period. But effectively you can say that on an average on four months everything gets passed through.
Maulik Jasani
Just one clarification Vaibhav. Our engineering consolidated India business including
Vishal Rangwala
Advantech is about 16.6% quarter over quarter 28 crore. Is the Q4 contribution of sales coming from advantage? Was
Operator
It entirely driven by the volume growth or was there some pricing benefit as well?
Vishal Rangwala
Majority is driven by volume growth considering that the last quarter which is September to December, if you observe there has not been a significant material movement, the movement started at the end of December and rain up to around February or March for the metal prices including brass.
Maulik Jasani
My second question is on the India engineering business. So while we saw the
Vishal Rangwala
Strong performance in FY26 and primarily driven by the exports while the domestic revenues witnessed relatively modest growth. So could you help us understand the key drivers behind the strong export growth as well as the reasons for the of the domestic performance. And it would be great if you could elaborate in terms of the end user indices and the customer segments. Yeah. So. Yeah from our point of view the growth in export is driven by improving market industrial global market markets, improving European markets as well as US market because of the, you know specifically the tariff impact.
So we that those were the factors supported the global market growth and things like that other factor on the domestic market I think that has also grown very well according to us maybe one of the factor which is masking that is potentially the byproduct sales which might be masking that partially basis of the numbers. But overall we are confident including India growth has been very robust in FY26. So just to add India Cage business has grown by more than 10% on a pure India to India cage. Okay it’s almost 11% and then there Is further growth in India level supported by our bushings business and our stamping business.
These two have properly. So it’s not case Kali bushings or stamping. They’ve grown. It is cage also have grown a good volume. Understood. And so lastly could you share your capex plan
Maulik Jasani
For the FY27 and FY28?
Vishal Rangwala
So we are in. We are in process of, you know fully finalizing all the details of our capex plan right now. We are already what we finalized. What would we are already looking at is about 3040 crore of maintenance capex in India in this current financial year. And my assumption a very similar number would be there next year also. You are aware that we are, you know we have started the China expansion project and declared an investment there. So reference to that about 70 crores FX is expected to be executed in current financial year and further 20 crore we are expecting next financial year.
These are some of the things which are already clearly formed and finalized. And there are other things which we are still working on. We. We are expecting that based on various planning and activity we will potentially add to this. But it is still undergone predominantly as he said in his speech, the second phase of advantage. We are starting to work on the desk and probably in the next few weeks the plan will be frozen but the work will start this year itself.
Maulik Jasani
Understood? Understood. Thank you very much for answering my question.
Vishal Rangwala
I will get back in the sleeve.
Operator
Thank you. Your next question comes from the line of Jason Swans with IDBI Capital. Please go ahead.
Vishal Rangwala
Yes, thank you so much for taking my question. So first question just pertains to the Romania and the China subsidiaries. I just wanted to know the absolute revenue numbers
Operator
For whole of FY26 for Romania and China both and if you could also possibly give the PBT numbers as well.
Vishal Rangwala
Okay, sure. We already said that combined loss is 9 crore for China and Romania. But I’m happy to share the independent number also which we will definitely publish also once the annual report is uploaded. Our Hera China has done turnover of around 120 crore with a profit of around 5 crore as a profit after tax and has done turnover of around 247 crore with a profit after tax. Around 14 crore loss.
Maulik Jasani
Okay, sure sir. So the revenue is 247 crores and loss is 14 crores. For Omania and China
Vishal Rangwala
Revenue is 120 crore and PAT is 5 crore.
Maulik Jasani
Correct
Vishal Rangwala
Sir. Yeah. Okay, thank you so much for that. Okay, so and next question this pertains to in terms of the demand situation, you know, if you Go back to three quarters. The situation in Europe was pretty weak. Now, now just wanted to know and Europe being a key market for us, just wanted to know how is the demand situation right now in Europe especially specifically, you know, pertaining to the
Maulik Jasani
Europe subsidiary.
Vishal Rangwala
So last whole year we are seeing demand has slowly improved over the years and specifically for the European subsidiary also the demand is continuing to improve. Right now the indication that it is all positive growing and we need to how we turn around the situation from cost as well as pricing and you know, all those profitability point of view is our main concern. Overall we see very positive indication from our customer for our subsidiary in the market. Sure, sure. So things definitely have improved from what it was.
That’s, that’s heartening to know sir. Actually I just missed out on one question. I mean regarding the Romanian China subsidiary. So combined of course now adventech Advantage also is in the mix. So I understand that. So combined when you look at the loss on a combined level subsidiary it’s around 21.6 crores to be precise. Of course it will be a combination of Advantage as well as the China and the Romania entities. Now just wanted to know sir, when you look going ahead 27, 28, I would definitely on a trajectory to basically reduce this losses going ahead because we have done lot of work on the Romanian subsidiary as well, you know, in terms of restructuring and China is doing well.
Advantage also will ramp up. So understanding is probably there should be a quick ramp
Maulik Jasani
Up, a decent ramp up of all these things and probably losses will get to reduce considerably going ahead 27, 28.
Vishal Rangwala
Yeah, Jason, I think it’s covered by Visad in his introductory speech also that this advantage has a loss of around 11 and a half crore or more because of the first year of operations. And mainly despite of positive ebitda there is a loss on account of higher depreciation and interest on the loan. We have taken over that gradually this will reduce because utilization will increase in this year. We expect it to be more positive trend this year at one take level. While China is already in a positive territory and will increase there in Romania.
Our discussion is already on with customer and we are hopeful this year to reduce this loss further compared to what we already reduced this year compared to last year. And further we will reduce in the coming period.
Maulik Jasani
So exact quantification may be difficult but definitely there’ll be reduction for
Vishal Rangwala
Sure. Significant reduction.
Operator
That’s. That’s okay. Okay. That’s very hardening to do so
Vishal Rangwala
That’s good.
Operator
And
Vishal Rangwala
Sir, again when I so I Spoke to you about the this situation. Now I just want to talk to the situation domestically. You know, the likes of our big three in terms of the bearing manufacturers, localization capex. How do you see demand for that on the
Operator
Ground?
Vishal Rangwala
We see very positive picture there. Our customers have significantly ramped up their demand and capacity in India responding to probably all the signals from automotive as well as industrial market. And further we feel that there will be another round of investment to cater to the existing or upcoming demand from our customer or the implications we see. So we are very bullish. There could be impact of current war and petroleum prices and all that that could have some impact from a short term point of view.
We don’t know that yet. But overall they are very bullish and working towards growth and we are, you know, we are banking on that to continue our growth journey in non domestic market.
Maulik Jasani
Okay,
Operator
So things seem to improve in the midterm. It was looking a little slow, you know, with all the restructuring, particularly one customer, one entity and all those. So now it is that it’s picked up the demand and all. You are seeing good demand trends going ahead
Vishal Rangwala
Right now we see good traction.
Operator
Yeah. So and just finally I’ll just join back the queue. Sir, just wanted to know in terms of as per geography,
Vishal Rangwala
How do we now of course in the presentation you can see that on a console level 58% of revenue is outside India. So 42% is basically I’m just talking about 26 for the year. 26. So 42% stays within India. And how
Maulik Jasani
Is the other breakup? Sir, how do you just wanted a breakup of the geographies. What would contribute to the total revenue?
Vishal Rangwala
We already spoken in past on this Jason. Our majority geography outside India is Europe followed by China, America, Japan and others. Europe usually contribute on a larger scale because there is a casting cell also from Romania and that also part of our overall top line usually Europe in this microgate is in total sales is around 19% in the total sales and China and America will be around 10% plus and others will be there. This is the. Sorry, my bad, my bad. Europe is around 30%. My bad, I’m just correcting myself.
Europe is around 30% in the total sense. And China and America. China is more than 10%, America is around 6% and followed by Japan and others.
Maulik Jasani
Okay, sorry. So China and US are 10% each and Europe is 30%. We said
Vishal Rangwala
Yeah, China is higher than 10 and US is around 6, 7%
Maulik Jasani
And Japan is.
Vishal Rangwala
Japan is still more significant around 2% plus
Operator
2%. Okay. Sure. Thanks for that. Thank you. Thank you so much. I’ll join market.
Maulik Jasani
Okay,
Operator
Thank you. The next question comes from the line of Jamin from Adeco Asset Management. Please go ahead.
Vishal Rangwala
Thanks for taking my question. The first question can break down the four year export growth into the three buckets. One from the recovery in the end market Europe or the US Wallet side gains within existing customers or the geography.
Operator
Hello, it’s sounding a bit muffled right now.
Vishal Rangwala
Can you hear me now
Operator
It is slightly better. So if you’re using any other. May I request to use the handset mode please?
Vishal Rangwala
Sure. Now it is better.
Operator
Sure. Just give me one moment. Sir.
Vishal Rangwala
Yeah. Hello, can you hear me?
Operator
Yes, Jamin sir, please go ahead.
Vishal Rangwala
Yeah. Hi. Hi, Monica. Things of breakdown full year export growth into three buckets. One is going to be a recovery in the end market that is a Europe or the US. Second is the wallet credit gain between existing customer or the geography and any new commercialization in new program for the geography. No, we do not share this data to the investors. And basically we already given a good amount of breakdown of our export sales in the previous case in itself. I just wanted to understand, I mean the growth you have seen for the full year this year, is it more led to the recovery or I mean have you drawn breakthrough in the new geography program?
It’s a mix of both. It’s a mix of both. All three items are there. You are right. But we cannot give further breakdown to it. Okay. And when we are seeing any kind of growth for the coming. I mean FY27, how did we. I mean how should we think about the contribution from export advantage ramp up or to domestic demand? I think Vishal has already covered in his speech. We expect India to continue to grow in a higher team or mid team to higher team and that will be contributed by both India growth as well as our export growth will continue.
That’s the expectation. Okay. Okay. And one piece of recommending your customers performance right now they are using the pricing action to offset the inflation pressure in there. And in respect to geographies, have you seen any change in the forcing behavior or the localization that is benefiting you that is going to benefit you from the near to medium term? I think what you’re trying to say that our customers are looking at us only to offset their pricing. Actually that’s not correct. Because through our competencies we have now become an indispensable partner with them.
Because we play a very important role in helping them grow their product portfolio by making sure that KGS are always available. So as you know, kg is about 5% of the total bearing cost in terms of value. Now the problem here is that the customer, the big players have stopped investing in new facilities or upgradation of their facilities over a period of last many years. Whereas we have a massive advantage of volume accumulation. So we have done absolutely up to date upgradation of technology, skill set, manufacturing capacities, everything.
So it is not only the cost part but it is the speed, the development at which if they want to develop a tool they might take much longer time. We do very quickly the cost at which we are able to develop that new tool.
Maulik Jasani
I think all these factors become very critical. And you know, this is one product where a customer does not do any further processing anything they do grinding. But the cage they directly put it in the bearing is a very important component. So I think cost is a very, very, I would say today cost is important but not the
Vishal Rangwala
Barometer for them to consider. I understand my question is different. My question was, I mean part of the customer, they are facing inflation, the cost front and right now we are offsetting cost in place of pricing piece. We are not doing lot of vendor consolidation or any change in the sourcing piece. Anything you are seeing from your side that could benefit you in terms of your vendor consolidation or increasing outsourcing, that’s an ongoing project journey.
Operator
As we
Vishal Rangwala
Already
Operator
Informed you, outsourcing is the
Vishal Rangwala
Areas which is more beneficial to them. Whenever there is a global scenario, global challenges and it’s an ongoing thing. There is nothing specific which we have to announce today. But yeah, new product development and outsourcing activity is an ongoing activity and pricing pressures are in our favor. Okay. Yeah. Thank you so much.
Operator
Thank you. The next question comes from the line of J. Shah from Genuine Capital. Please go ahead.
Maulik Jasani
Hi. Congratulations for a good set of numbers. I had two questions here. One was on the Advantage subsidiary. What in your estimate would be the timeline to ramp it up to, you know, the maximum capacity and what is the ballpark figure in terms of top line that advantage can contribute. And second question is sir, this is a bit longer term over the next two, three years. I mean keeping aside the current volatility but since you know we are into precision components also and apart from that bearing cages, the CAPEX cycle that you know, we are seeing locally and even globally, what do you feel is going to drive Harsha’s growth as a company, you know, for over a 2, 3 year period?
What components or rather what end sectors do you think are going to help Harsha? You know achieve the long term goals.
Vishal Rangwala
Let me take a first question Jay about the Advantage optimum capacities. So Advantage is still in a growing and fixed asset spending stage. But what I can say you is based on the current installation capacity we expect it to reach to the peak in next two years the current install capacity. But we also expect it to get into the next phase of expansion also. Meanwhile hence it is difficult to give you precise answers but. But with the current install capacity we expect it can give us around 250 to 300 crore turnover.
And as I just said this will further enhance as we further go for expansion in our Advantage subsidiary. And on your second question about growth and area where we can grow better, I ask Visal to give you more insight.
Operator
Yeah,
Vishal Rangwala
So for us Cage is important growth driver and within that we have identified that increasing the outsourcing or wallet share through insourcing through outsourcing is a very big growth driver for Hersha. And within that large size KG is there we see that lot of manufacturing is moving to India which should also additionally benefit bearing manufacturing moving to India. So we are also bullish on bearing industry growth and within that additional growth coming to Russia based on the outsourcing as well as resourcing as well as you know India.
So more India manufacturing and US having a big share of market in India and so on. So Cage is a big growth driver for us including even we consider Japan based customer growing wallet share with them. Beyond bearing cages we expect activities at least stamping component and pushing business to also grow much faster. We are expecting from a midterm basis at least 15% to 20% growth in these two segments. We are expecting because we are investing in new capacity, additional product portfolio even in these two product lines.
So now we expect that all three established, currently established product lines should give us deliver good growth numbers. And then further we are looking at expanding this portfolio beyond. But in a short term though these are all good growth drivers. So just to quickly add to complete the story as you would have seen in the presentation, we have given the data of SKUs that are being developed every year. So about 5600 new SKUs, one SKUs, one particular type of product which has strengthened my SKUs to beyond 8,000.
Now these are the new products which are the pipeline for to us going forward and that is an indicator that how the pipeline is quite robust on the bushings also and we are developing new products, new variations, multiple variations. So we are filling the pipeline there also I think the serviceable market is much bigger and we should continuously see at least at the India engineering level a minimum 13% growth year over year. In a normalized situation we don’t find any problem. Whereas the bearing industry per se globally doesn’t grow more than maybe 7, 8%.
This is where we are
Maulik Jasani
Understood. Understood. Thank you so much for the detailed answer. Just one more follow up on the same sir, since you said that you know insourcing is a big strategy and a lot of manufacturing is moving to India and is already you know engaged with all the bushing bearing meteors of the world. Is there any discussions with all these bearing majors to you know given Harsha’s capabilities that more and more parts apart from bushings and even cagings and other components that they are looking at more parts to give to Hersha given your capabilities and your relationship.
Vishal Rangwala
So we you know we are not really going beyond you know stamping products with our customer. So at times we expand our portfolio with our customer beyond bearing cages and we have successfully done that. But primarily that would mean stamped product beyond bearing cages and few other products. We do not really intend to majorly as we speak today, you know we are not to go into any other specific bearing components beyond cages and you know
Maulik Jasani
Related stamping and other components. This may change but right now that’s our stated and there’s a reason I have a very big headroom for growth. So if in India my wallet share is say 70,
Vishal Rangwala
80, 90% overseas within all these big customers the wallet share varies from 10 to 20% on the three established old relationship and maybe 2,3% with Japan based customers. So we at this point in time of course we have diversified into pushings and stamping which are related but by maximum wallet share we should take going further.
Maulik Jasani
Thank you. So sir, what was the reason if I may ask that over the last few years that we couldn’t ramp up the wallet shave. Are they looking looking for facilities outside India? I mean basically closer to their end customer or factories and was that the reason that we couldn’t scale up and that’s why we are putting more money now in Romania and China.
Vishal Rangwala
So I think primarily the market we last few years we faced a big challenge of degrowth in our biggest market of Europe and a little bit in China side specifically and even little bit us last year. Now having said that you know they have come, started coming back. So partially our growth is driven by that and also our growth currently is driven by all the new additional wallet share we won during that time but realization got delayed and now they are into execution. So we don’t see that as a challenge as a wallet share de growth but more of we couldn’t move the wallet share and the market softened over our biggest market softened over last couple of years.
Maulik Jasani
So sir would it be fair to assume in Europe like it has happened in chemicals and even in some cases casting forging a lot of big players have gone out of business. Has our sector also seen some consolidation and that’s why we are now more confident to get incremental wallet share.
Vishal Rangwala
Yes, you’re right. See I can’t share any specific names but yes there is some consolidation and that is also driving our endeavor to you know increase our wallet share. You’re right.
Maulik Jasani
Understood. Thank you. And this is the last question. If you could throw some light on sectors that are really doing well in India and Europe end sectors as you would be speaking to your customers and their customers for a medium to long term.
Vishal Rangwala
So you know we are seeing as I said overall also a across I mean without going into subsector industrial has been doing very well last six months plus and current indication is that that should continue and we are seeing good growth on the automotive side specifically India and some potential green shoot on the automotive across the globe but not not very clear about that one in general as yet wind has not picked up in Europe which we are one of the factor of. You know the plant and Romania facility is quite focused on was quite focused on wind as a primary market.
So that is not yet a great news. But beyond that we are seeing industrial sector across the board growing and supporting even we are seeing positive signs of railway in India and across the globe. Some orders coming in specific to that and so on. But again we would not have a very sharp insight into a subsector because at the end of the day we supply to customer who assembles it and gives it to a sector or industrial or automotive. So that that’s a little bit of limitation from our side be able to clearly tell you that.
Maulik Jasani
Thank you so much for answering all the questions in detail. All the best for the future. Thanks.
Operator
Thank you. The next question comes from the line of Saket Kapoor from Kapoor company. Please go ahead.
Vishal Rangwala
Yeah Namaskar sir.
Maulik Jasani
Hope I’m audible.
Vishal Rangwala
If we look at our last two financial years we have done capex to the tune of closer to 210 crore for FY25 and 120 for FY26. And now the plant and the property plant and equipment closing balance is at 615. So at at peak utilization level. Sir, what should be the likelihood number. I think so. Now with the inflationary trend what should be the revenue trajectory that we are anticipating or how should we look at this
Operator
Number of 300 crore translating into the the business opportunities going ahead?
Vishal Rangwala
So before Molit Bhai give you specific answer, one thing. The new capex of Advantech also includes the fundamental infrastructure development which will not immediately translate into a fixed asset multiple as a revenue multiple. But yes Molly, that’s right and that’s why Mr. Satit if you see our overall plant and machinery is obviously the network you have said but considering the capability and followed by our maintenance capacity we expect the current preset of business can easily reach us at India level around 2,400 to 2,500 and console level can be around 2,700 to 3,000 crore.
Depend on what kind of capacity we look into because at console we also have a casting capacity which is an independent capacity from the cage. This is the input to your business.
Maulik Jasani
Last year we did around I think so more than 100 crore for the bushing segment. So what have we outlined for the current year? How are the order books for the bushing segment in particular?
Vishal Rangwala
Yeah, Visalbi has already covered in his introduction and the expectation this year mushing is also to continue similar group trajectory of around 25 to 30%.
Operator
We did one 27 crores in FY26.
Vishal Rangwala
Yeah
Operator
In bushings
Vishal Rangwala
And in the caging part also. So I think to the large cages we were finding it more headwinds going going ahead. It’s correct me there. So in terms of the product profile which segment are you seeing the better opportunities and
Operator
How should the the category perform?
Vishal Rangwala
Large size cages have done about 50 crores 14% growth this year. We expect at least this segment to keep on growing in mid teens without any problem. 15 to 20% no issue. Lot of things are in pipeline.
Maulik Jasani
Okay sir, as you alluded to the earlier reply that we are anticipating mid teen growth for the current financial year and what should be the EBITDA margin trajectory?
Vishal Rangwala
We will continue to the blended EBITDA only. But we expect our EBITDA as you must have seen in last few quarters it has improved and we expect it to continue to improve marginally. And over the period of 2 to 3 years our expectation is overall increase of 100 to 200 basis point in our EBITDA India has been consistently doing about 20 as you know we already given this. Yeah,
Maulik Jasani
Okay. All the best to the team sir. And this time also we are coming up with our AGM Also earlier. So lot of insight and annual report would be at our disposal much early than than what it used to be. So thank you for the team for looking into the. Appreciate,
Vishal Rangwala
Appreciate your.
Maulik Jasani
Thank you.
Operator
Thank you. Your next follow up question comes from the line of Jason Suans with IDBI Capital. Please go ahead.
Vishal Rangwala
So thanks for taking my question again. So just wanted to know the absolute value
Operator
Of the stamping revenue for 26.
Vishal Rangwala
Temping. Absolute value 60 crores.
Operator
60 crores. And this is also expected to grow by 20% at least next year.
Vishal Rangwala
Yeah, yeah, it will grow better. Yeah, yeah.
Operator
Okay, okay. And sir, just follow up question, just wanted to know, I
Vishal Rangwala
Mean again when I go to the past, you know I spoke about this, the Europe demand was weak. Now we are seeing situation improving on the ground. Just wanted to know sir, what is your thought on because it’s a very important market for us, what is your thought on the sustainability of this demand? Has something changed on the ground that you know, demand trends are coming back? Just wanted some color. You’ve done a lot of restructuring etc as well. Is that working out well or
Maulik Jasani
As the macro situation improved. Just give us some color on the demand situation in Europe and how sustainable this can be.
Vishal Rangwala
So as I said earlier, Europe is slowly improving. There is no like a definite like a big stroke of improvement. We are seeing a slow sustained improvement happening in Europe from a demand point of view on the, you know, some improvement and structuring. We still see that there is an ongoing work. We don’t have, you know, completely. We are not done yet and there is a lot of still pending work within that in terms of creating a right cost structure in Europe. We are continuing to face massive inflationary pressure in Europe which is also adding to this whole challenge.
So from overall outlook we are bullish on the demand side of it. We are seeing, I think someone was mentioning about, you know, there are because of the downturn and inflationary challenges lot of companies have, you know, has an impact and you know we are hopefully so far surviving but we are also evaluating how long we can do with this kind of negative margins so how we can quickly improve on the operational side further. And also we are looking to improve on the top line faster. That’s the intent.
Having said that I don’t have a very clear direction or like input from our customer on that demand improving to the level needed immediately and we are continuing to work on the cost side of it. So again a very heavy picture but that’s what
Maulik Jasani
We are working with right now. But very hopeful and positive.
Vishal Rangwala
Okay. And I just wanted to know in terms of bushings, we have seen very good growth and expectations are also for good growth ahead as well. So what is driving this growth in the bushen space? 25, 30% is very
Maulik Jasani
Healthy. So just wanted to know what is driving this growth, sir, on this point.
Vishal Rangwala
So this is a. Primarily there is a conversion for design. So in. In the wind market, wind gearbox, there is a conversion happening on a. So if you look at a planetary figure box, the planets which were earlier using bearings are now using bushings and that is driving this drastic growth. So the underlying market is roughly the same or maybe growing. The wind market specifically in India, the growth is driven by more and more design
Maulik Jasani
Coming under the bushing concept or vis a vis the earlier design of dating concept.
Vishal Rangwala
Okay, sure. So that’s more driven through a design change, which is good. Okay, okay, sure. Yeah, yeah, yeah, yeah.
Operator
Okay, sure. Just in terms of stampings, I would just assume that in terms of end user markets it will be again varied between automotive and industrial. Is my understanding correct?
Vishal Rangwala
Correct. It’s a automotive industrial railway as well as we work with one big chunk is going into consumer goods, white goods. So we are making big growth driver for us. One of the big growth driver for us is air conditioning compressor components as well as white goods like home appliance, some of the stamping components for that that is, you know, driving that. Good. Okay. White goods is okay. So it goes into white goods as well, which is pretty good. Okay. With the AC market also going to expand.
Okay, that’s good sir. And just finally sir, wanted to know, I mean in terms of the Middle east crisis, we have seen this of course now just wanted to know any issue during the quarter in terms of any logistical issues, shipping
Maulik Jasani
Or any raw material price increases or going ahead, do you envisage anything impacting us adversely?
Vishal Rangwala
I think there is definitely an impact on the cost side of it which we are trying to mitigate. I don’t have a clear answer on that to what extent and where, but it is. We are seeing the impact across the board on the input side of, you know, specifically when we use some of the oils lubrication things in the. In our production that all cost has a cost impact. Our plastic cage material obviously has gone up. That is also an issue which we are dealing with addressing it, countering it or partially working on parking on.
But on the logistics front, so far we have not seen any impact specifically because if you remember this whole sewage canal crisis happened about 2, 3/4 back and Anyway impact a few quarters back. So that route shipping route has remained clear of of current immediate crisis for us at least. Okay. Okay. So considering that also sir, I mean you see margins you can basically improve from here on. I understand there is this is could be a near term pressure. But even considering this you can expect going ahead we can basically
Operator
Improve margin or at least maintain margins. So current margins,
Vishal Rangwala
Our intention is that there is definitely pressure on other lessons. Yeah. On. On the input material for sure. Thank
Operator
You so much. Thank
Maulik Jasani
You so much.
Operator
Thank you. The next question comes from the line of Hiten Boricha from Sequent Investments. Please go ahead.
Vishal Rangwala
Thank you for the opportunity. So mostly my questions have been answered. So you mentioned growth will be around in mid tons for India as well as for overseas business. So I just wanted to know that. Very good growth on the solar segment from 140 to around 185 crore. So can you share the number on that? So we expect solar also to continue grow. Well, I think you are asking for the solar growth estimates. Right.
Maulik Jasani
So it’s. I think it’s grown around 30, 35 watts. Right.
Vishal Rangwala
Is also in the tailwind side. And solar will continue to grow because the government policies are much favorable especially in Gujarat territory. And we expect
Operator
It to grow more than 25% also going forward.
Vishal Rangwala
Okay. And with that group EBITDA margin should improve from current level side. It has seen a very good operating leverage from 4 1/2% level in FY26. So it should there as well.
Operator
We
Vishal Rangwala
Expect solar to maintain the last year reported EBITDA margin. Maybe marginal improvement over there.
Maulik Jasani
Understood? Understood, sir. Yeah. Yeah. 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. Vishal Rangwala for closing comments.
Vishal Rangwala
Great. So thank you very much everyone for attending this conference. Appreciate your time so late in the day and thank you and have a good evening. Thank you. Thank you.
Operator
Thank you. On behalf of Hersha Engineers International Ltd. That concludes this conference. Thank you everyone for joining us. And you may now disconnect your lines.