Jupiter Wagons Ltd (NSE: JWL) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Unidentified Speaker
Vivek Lohia — Managing Director
Sanjiv Keshri — Chief Financial Officer
Analysts:
Unidentified Participant
Sudeep Anand — Analyst
Mohit Kumar — Analyst
Devarsh Shah — Analyst
Rohit Singh — Analyst
Jainam Jain — Analyst
CA Garvit Goyal — Analyst
Sahil Patani — Analyst
Swanand Samant — Analyst
Akash Vora — Analyst
Sailesh Mohta — Analyst
Sachin — Analyst
Chandvi Patel — Analyst
Rajesh Vora — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Jupiter Wagons Ltd. Q4FY25 Earnings Conference Call hosted by Systematics Group. 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 then zero on your touch on phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Sudeep Anand. Thank you. And over to you sir.
Sudeep Anand — Analyst
Thank you and good evening everyone. Thanks for joining us Today in the. Q4, FY25 and FY25 earnings conference call of Jupyter Virus Limited on behalf of. Systematics I would like to thank the. Management for the giving us the opportunity to host this call. Today we have with us Mr. Vivek. Lohia, Managing Director and Mr. Sanjeev Kesi, Chief Financial Officer. I’ll now hand over the call to. The management for the opening remarks followed. By the Q and A.
Over to you Vivekji.
Vivek Lohia — Managing Director
Thank you Sudeep. Good evening everyone. Thank you for joining this call to discuss our performance for the financial year ended March 31, 2025. I hope you have reviewed the financial documents that were shared earlier today. FY25 has been a pivotal year for JWL marked by a solid financial performance and continued progress across our diversified business segments driving the evolution of JWL into a more comprehensive mobility solution provider. On a standalone basis, total income was 3,905 crores in FY25 registering growth of 6.6% year on year. EBITDA for the year was higher by 11.6% to Rs. 548 crores.
Importantly, as we have guided earlier we have increased the ebitda margin to 14.2% up from 13.5% last year. And we maintained our position of industry leading margins. Profit after tax has increased by 12% year on year to Rs. 373 crores with a pad margin of 9.6%. On a consolidated basis we recorded a total income of Rs.4008 crores an increase of 9.3% year on year with EBITDA of rupees 578 crores. Higher by 18% year on year. The consolidated EBITDA margin has improved to 14.6% while profit after tax was higher by 15% to Rs. 380 crores. Turning now to our broader business performance, FY25 has been a year marked by strategic progress and operational momentum across all verticals of Jupiter Wagons Ltd.
We successfully launched commercial production of the Jam Tej ELCV in Indore, marking our entry into India’s electric logistics segment. This was accompanied by the inauguration of a state of art vehicle manufacturing facility at Pritampur. The facility, built for high localization supports, grounds up EV manufacturing with an annual production capacity of 8,000 vehicles. The Gem Tage, a fully indigenous 1tron electric vehicle, has been engineered for high performance and reliability backed by deep industry expertise. A phase rollout across key metros like Delhi, Mumbai, Bangalore is already underway supported by strategic partnerships in line with our focus on clean and sustainable energy solutions, we commence the production and supply of advanced battery systems to both Indian Railway and private clients, strengthening our position further.
In this space, we are secured battery energy storage system orders as well as orders from leading players in the forklift segments such as Godrej and Tuckcraft which reinforce our participation in India’s evolving energy infrastructure. In our core railway segment we continue to demonstrate strength and market leadership. We have secured a Rs. 600 crore order from Ambuja Cement and ACC Limited for manufacture and supply of BCFZM rail wagons. Our subsidiary Jupiter Tatravagonka Rail Wheel Factory Private Limited has also won a rupee 255 crore order from Retweet and Company. We are firming our reputation for delivering quality and reliability products.
Our brake system division also delivered a strong performance with key wins including a 65 crore order for brake disc and 150 crore order for passenger segments brake systems. Among the key highlights of the year is the progress of our Orissa project, a transformational initiative in our expansion strategy. Through our subsidiary Jupiter Tatra Vagonka Rail Factory, we have acquired land in Kurda, Orissa to set up a rail wheel and axle forging facility, the first private sector heavy engineering plant of its kind in the state. We have already awarded contracts for both the main equipment and civil work and site development.
Is progress progressing rapidly With a planned investment of Rs. 2500 crores. The project has achieved financial closure with a funding structure of 35% equity and 65% debt. Through a consortium of PSU banks led by SB, we have already invested approximately 50% of our equity Investment and advance payments have been made for critical equipment and construction packages. Once operational, the facility will produce 100,000 forged wheel sets annually, serving both domestic and international markets. These milestones, from electric vehicles and energy storage to core rail infrastructure and heavy engineering, underscore our long term strategic vision, our commitment to innovation and our unwavering focus on execution excellence as we move forward.
We remain deeply committed to sustainable future ready growth while capitalizing on emerging opportunities across mobility, clean energy and infrastructure to create lasting value for all our stakeholders.
We are now open for questioning from the forum.
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 touchtone phone. 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 a moment while the question queue assemble. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yes, good evening sir and thanks for the opportunity. My first question is on the execution for the Q4. Is the constraint on. Wheels using out is the as we enter QFY 26 or has the. Has the wheel situation impacted our Q4 execution? Yeah.
Vivek Lohia
Yeah. So thank you for your question. So definitely the availability of wheels was a constraint which we faced in Q4 and even Q1 of this financial year. But the expectation is that from railway should be in a position by middle of next month to regularize supplies as they have placed orders on global firms for supply of axles and they expect to receive the same by beginning of next month. So we are hopeful that the situation will stabilize. We have been focusing on execution of our private order books for which fortunately for us, because of our subsidiary Jupiter Tatra Vagonka, we have been able to supply the necessary.
Mohit Kumar
Understood. The second question is of course, given that the situation is still taking us, what kind of wagon manufacturing one can expect in F26?
Vivek Lohia
So for FY26 as I mentioned earlier, we have set ourselves a target to manufacture about 10,000 wagons and we are confident that given that railway has committed to regularize supplies of field sets from mid June onwards, we will be able to achieve those commitments in the numbers. So hopefully I don’t see a challenge in terms of execution. Yeah, but if the wheel set position in future also continues to deteriorate, then there could be some revision in terms of execution numbers.
Mohit Kumar
Understood. My last question on the bona Trans capex which are.
operator
Mr. Mohit, may we request you return to the question. Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference please limit your questions to two per participant. The next question is from the line of Devar Shah from Sunidi Securities. Please go ahead.
Devarsh Shah
Hello sir. Am I audible?
Vivek Lohia
Yes, you are.
Devarsh Shah
Yeah. So I had a question like regarding the show. So from in the past also we have faced the wheelchair shortage issue. So how is the industry or the Indian Railways trying to overcome.
Vivek Lohia
So unfortunately you know, for we have a very strong order book from the private sector. So Jupiter has been able to execute those order books without constraint. But from applies when it comes to for the railway wagons. Unfortunately the order is such that you know it complies us to use the wheel supplied by the rail wheel factory. So that is how the orders are structured. So we. That is because of which we are dependent upon them for wheel set supplies. So till that is regularized we will continue to, you know, have some constraints on that. But whatever we have given to understand from railways is that the position will improve very shortly.
Devarsh Shah
Okay sir, but just I had a question like regarding the infra. Like in manufacturing the wheel sets. So how is Indian Railway or the private sector trying to capitalize upon the situation if we face such issue in the future?
Vivek Lohia
No, so it’s a very good question. And that is the reason why you are now seeing investments happening in the private sector to set up wheel manufacturing capacities. As you are aware that we are embarking on a substantial investment wheel manufacturing capacity for 100,000 wheels. India Today does import a lot of its requirement for wheel sets and it does not have especially on it doesn’t have any substantial capacity. So there is a big gap today between demand and supply. And I think once our project comes online think we will be able to fill up this gap to a large extent.
Devarsh Shah
Okay. Understood sir. And lastly. Yeah.
operator
Mr. Devosh, may we request you to turn to the question queue for a follow up question?
Devarsh Shah
Sure, sure.
operator
Thank you. The next question is from the line of Rohit Singh from Invest Analytics Advisory llp. Please go ahead.
Rohit Singh
Hello. Am I audit?
Vivek Lohia
Yes, you are. Please go ahead.
Rohit Singh
Good evening sir. My first question is on the capex that we are doing on the wheel sets. Approximately 200cr investment. So can you tell us like what kind of ROC we are expecting from this investment over the years and can you compare it with the existing ROC. That we are doing? So that is my first question.
Vivek Lohia
So we are expecting an ROC of above 20% from the project.
Rohit Singh
Sorry. I missed that. What is the number
Vivek Lohia
Pardon.
Rohit Singh
I missed the number. About 20% or 25%. You said
Vivek Lohia
above 20%.
Rohit Singh
Okay. And I think our current ROC in FY24 was around about 30%. Right?
Vivek Lohia
Just one second, hold on. I don’t think it was about. It was about 17.2% down 17.5%. Roughly 17.5%. And here we expect it to be higher than. So it’s going to be higher than the current ROC which we have been delivering.
Rohit Singh
So you are expecting the additional ROC from this project, right?
Vivek Lohia
Yes, definitely. And typically these projects are very high ROC projects. And as the exports keep on picking up in the future, the ROC position will definitely keep on improving.
Rohit Singh
Got it. And secondly, on the outlook for FY26 this year we lagged behind our own sales guidance, particularly in the wagon side. So for the next year, how do you see the outlook segment wise, if you can share with us, like particularly focusing on wheels and brake systems and our new initiative in the EV segment where we got delayed over the quarters. In fact our peers are have been able to start supplying the things in the LCV opportunity. So considering all these segments that we are targeting since last couple quarters and particularly you have mentioned in the con in the presentation as well, we started supplying the batteries as well.
So all these initiatives collectively, how do you see what is the outlook? What is the revenue target? Would you like to give Forever 26 along with the margins?
Vivek Lohia
So see in the railway, to start with the railway wagons segment again this year, in terms of the capacities and in terms of execution, we were completely on track to deliver the numbers which we had committed. But unfortunately the wheel situation came out of the blue and which was something which was beyond our control. However, given that the railway is is saying that the situation will be rectified sometime next month, we are pretty confident that the. If the wheel situation rectifies, we will be able to achieve the targets which you have set for the current financial year.
However, you know there is any future challenges on wheel size, Deputy, going forward we may have to revise those numbers because as I have told you, that is something which is beyond our control. But we don’t expect any future challenges in that front on our own production of wheel sets. As you have seen that this year we have. Our numbers have been higher than what we had projected. So we have done revenues of above 300 crores and in the coming year we expect these numbers to double. We are increasing capacities there substantially and as you have seen that our order books plus our internal requirements are very strong and it is a question of execution for us.
So we expect that Business to do quite well. And in the years to come definitely it will be one of the most significant contributors to the revenues. Beyond that on the brake business as I mentioned that we have already secured an order of about 150 crores for our JV with Darqo and about 60 crores for our JV with Kovis. We expect there are also a large number of tenders which are due in this financial year and it’s expected in the next two to three months. So we expect this order books to become much stronger. So this year we expect that on the big business revenues will be fairly strong.
On the ELCV segment we have already started delivering our vehicles. The response from the market has been very, very positive and we expect to achieve sales of in the next three to four months. We expect to achieve an average sale of above 100 cars month on month basis. And again on the battery side as I mentioned in my call that we are already working on the battery storage solution where again we expect the market to be very strong for that segment we are working with leading players there. We are supplying batteries for the one day Bharat.
We have secured orders from players like Godrej, from players like Tuck Craft and there are other major players which we are already in discussions with. So the battery business also looks very positive for us.
operator
Thank you. The next question is from the line of Jainam Jain from ICICI Securities. Please go ahead.
Jainam Jain
Good evening management. So my first question is are you expecting any large railway orders in this year given that FY25 has been devoid of any such orders?
Vivek Lohia
So definitely we are expecting large tenders to come from railways I think this year. But still, you know there is a substantial order book which is there to be supplied from Indian Rail to Indian Railways from the various players. So we expect the tenders to come on the later half of the year.
Jainam Jain
And on the private side how are we seeing the demands and inquiries?
Vivek Lohia
The private side the demand continues to be very robust and strong. We have recently secured a very strong order book for container rakes. And if you’ve seen from our order book numbers, despite supplies being consistent and railway not giving any new orders, still our order book continues to remain strong and most of it is coming from the private side only. So private side we don’t see any challenges in terms of order books. And once the railway tender comes this year I think then for FY till FY28 we expect, you know, our numbers to be very strong.
And beyond that, you know it’s very difficult to right now give Any kind of forecast.
Jainam Jain
Okay. So what is your market share in the private segment? Private side?
Vivek Lohia
On the private side we enjoy a very, very strong market share. Now I think again very difficult to quantify in terms of percentage. But what I can say is that we are the dominant player in that segment.
Jainam Jain
All right sir, that answers my question. Thank you so much and all the best.
Vivek Lohia
Thank you.
operator
The next question is from the line of Garved Goyal from Invest Analytics Advisory llb. Please go ahead.
CA Garvit Goyal
Hi. Thanks for the opportunity. So you mentioned a fair outlook for those segment covering the wheel set, brake systems and wagon side subject to the supply chain issue. So can you put a number on an overall basis what kind of growth are we expecting? Over 25 for revenues. And what kind of EBITDA margins we are expecting. So that is my first question.
Vivek Lohia
So as I mentioned to you that in terms of the wagon production we are looking at a target of close to over 10,000 wagons this year. But obviously it’s subject to availability of wheel sets and you know, other businesses. Again for me to give, especially on the EV business for me to give any kind of numbers right now it’s too early. I think maybe a quarter quarter or down the line it will be I think more prudent for us to give any numbers. The brake business I and as I’ve already mentioned on the brake business and on the wheelset business we will definitely we are looking to double our revenues.
CA Garvit Goyal
But we are, I think if I remember correctly we are looking for 8,000 to 10,000 cr kind of top line by FY28. And to achieve that we must be having at least a plan like what.
Vivek Lohia
Kind of will come in once our wheel project in Orissa is commissioned. And because that itself is going to bring in revenues of close to 3000 odd crores. So if you look at our projections a lot of that growth is coming through the Odisha project.
CA Garvit Goyal
And what kind of revenue did we incur in 2025 for brake system?
Vivek Lohia
It was above 100 crores and we are definitely looking to double the same. It’s 100 crores plus. I don’t know the exact number but it was above 100 crores and we expect to double that figure in in this financial year. So between break and wheel sets I think the revenues will be above 800 crores.
CA Garvit Goyal
And sir, you released.
operator
Mr. Garvit, may we request you to return.
CA Garvit Goyal
Just last question sir. Otherwise I think I will not return. So you released a announcement regarding some labor unrest in one of your plants. So can you give the financial impact which we will be incurring in Q1.
Vivek Lohia
Yeah. So unfortunately there was some dispute on regarding wages for which we had to temporarily close the facility. However, now the same has been resolved and the plant is now working on full capacity again. In terms of the impact, I would say because that was also a period where, you know, know the wheel side supplies were very poor. So even if the plant was operational, our production would have been quite muted during that period. And also there were certain maintenance, annual maintenance which we needed to do urgently for which we would have taken a shutdown of about a week.
So we used that opportunity to do that annual maintenance. But as I have maintained and I’m very confident that the wheel set supplies resume and if it is consistent from Indian Railways, we can easily make up on the loss of production.
CA Garvit Goyal
Got it, sir. Thank you very much, sir. All the best.
operator
Thank you. The next question is from the line of Sahil Pathani from Strokes Capital. Please go ahead.
Sahil Patani
Hi. Thanks for the opportunity. So I had a couple of questions. So by when are we expecting this new Orissa facility to be fully commissioned and operational?
Vivek Lohia
So the axle line would be commissioned in this. Yeah, by middle of next year, I think. We expect the. We are. The axle line will get commissioned and early 27 is when we are expecting a V line to get commissioned.
Sahil Patani
Okay. So my second question is that we’ve set an ambitious target of having, you know, revenues of 10,000 crores by FY28. And this year our revenue grew by 9.3% over FY24. So, you know, are we going to maintain like a really high growth for the next three years, which is 35, 40% or are we saying that this particular financial year FY26 would also be in a similar 10 to 15% range. And then once the facility is fully operational, we then are going to have like a, like a vertical growth after that.
Vivek Lohia
I think the growth trajectory as it will. I think the majority of the growth, as you can see, will come once this facility is operational because this will end up being close to about 30 to 40% of our entire revenues. So definitely, I think we will maintain a growth rate of about 10 to 15%. And once the wheel business is operational, then you will see a different definite upsurge in the growth. And that is if you look to my earlier calls or you know, the projections which you have made, it is inconsistent with that.
Sahil Patani
Got it. Just one last thing. On the EBITDA margins, since we’ve clocked about 14.5% for FY25, so do we see the margins normalizing in this range? Or is there room for improvement?
Vivek Lohia
There is definitely room for improvement with new businesses kicking in, especially the brake business and the wheel side business. But yes, we don’t see any kind of substantial jump over this EBITDA margins. I think that will only happen once the Orissa facility is fully commissioned.
Sahil Patani
Okay, thank you so much sir and all the best.
operator
Thank you. The next question is from the line of Swanan Samanth from Clay Group. Please go ahead.
Swanand Samant
Hey. Hi. Thanks for the opportunity. So I just want to understand from you your company’s relationship with your European partner, Tetragonka. The question is, I just wanted to understand like right now they being with the largest investor in you, they don’t act as a strategic investor. Right. They are pretty passive. There is no technology transfer agreement between us. We are not a very big supplier to them right now. Plus being at 19% shareholding, they don’t have a representative on our board as such. So in future, in context with the OD sub plan which is coming in, we expect that majority or good part of that revenue would come from the exports to them. But I just wanted to understand, we don’t have a formal agreement to that as such. So do we think that right now the relationship with them seems to be a very passive investor type, but that to change towards strategic investor when we kind of come up with the odisha planting maybe 27 and just wanted to kind of get your understanding on that.
Vivek Lohia
So first of all, they are not passive. They are classified as a promoter itself in Jupiter along with my family. So they are not just an investor, they are also promoter in Jupiter. So that that itself is a statement by itself. Secondly, when it comes to, we do have an agreement with them in place when it comes to offtake from the Odisha facility, once that plant is commissioned, they are very actively participating in the entire construction phase and the technology phase of the project. Earlier the exports to them were very minimal because as. As you are aware that in Europe the wagons which are produced, most of the bogies and couplers and other items which go into the wagon are fabricated, unlike in India which are cars.
So there is a very, there is a substantial difference in technology. So for us to do any substantive exports was just not possible. They have been helping us with a lot of design designs on the private side. So it is not that they are not very active in the company. They are very active and now there is an opportunity where, you know, we have lot of synergies which will arise because of the wheel project. And they are very gung ho on the project and so are we. So you will see their participation also go up significantly and and definitely in Europe today there is a shortage of wheel sets.
They are looking at having a secure source of supplies and so yes this I think is going to be a win win for both of us.
Swanand Samant
Just a follow up of that. Any particular reason why they don’t have a representative on our board being got 19, 20% kind of invested in us?
Vivek Lohia
No, not a specific reason. I don’t see any reason. I think it’s just the confidence they have and in all probability in future they will have somebody joining the board very soon.
Swanand Samant
Okay. And the second question on the kind of availability or problem of availability of wheelchair which you are facing right now. So I guess I got it her 3 also some of your peers face the same problem. It’s not been resolved. I guess if I’m not wrong somewhere in the last year also there was a similar problem as such. So kind of wanted to understand what is the pain point here in terms of procurement of these by the Indian elevator. Is the only India is facing this problem or is it a kind of something like a BIS problem or is it a vendor problems kind of. If you want to kind of pinpoint on one particular region what would it be?
Vivek Lohia
Again you know it is not. I’m not for me it would be wrong to comment on the challenges which Indian Railways is facing in terms of wheel sets and not be very prudent to do that. I think is a question best asked to Indian Railways. But what I can assure you is that we have been told by them that the situation will now normalize very shortly. I think that is the best I can tell you in terms of the reason why they are facing those challenges. I think it is better to speak to Indian Railways directly on the same.
Swanand Samant
Sure. Thanks thanks for answering my question.
operator
Thank you. The next question is from the line of Akashvora from Dalal and brochure. Please go ahead.
Akash Vora
Thanks for taking your. For taking. For giving me the opportunity. So. Firstly my question would be sir, what would be a consolidated margin outlook for FY26 and 27 will be in the similar range. Or higher.
Vivek Lohia
mentioned that it will continue to be in this in a similar range. There could be a slight improvement but however we don’t expect any substantial improvement from this year. But as revenues go up obviously absolute numbers will definitely improve.
Akash Vora
Understood. So but once the ELCV business starts our margins would won’t start depleting. Is are we sure like or we’ll be able to maintain the current levels.
Vivek Lohia
Yes, definitely. Because it’s not the LCV business alone. We are also there. The battery business itself has a substantial potential. And we have doing quite well in that segment also. And that business because we are doing very specialized high voltage applications. So our margins are very robust in that segment. So definitely I think we are confident to maintain the margins.
Akash Vora
And sir, secondly my question was on the. On our GV entities. Sir, I think the most of our brake businesses sit under the JV entities. So sir, we are constantly incurring losses in those jv. So every quarter after quarter we are posting a loss. And in spite of having healthy order books and posting good revenues. Why is that the case, sir?
Vivek Lohia
No, I think the only joint venture we have posted losses is on the. On the Darko jv. Rest of the JVS we have done. We have shown profits. And that is also because last year we had mentioned also earlier that we are in the process of doing the localizations. But because the order books we didn’t want to lose out on order books and get to from a development to part one status parallelly where we achieved the localization. So this year I think you. We are now very much ahead in terms of our localization. So going forward there also you will see a change in terms of our profitability profile.
Akash Vora
So what do you mean by localization here? I mean.
operator
Sorry to interrupt. Mr. Akash, would you return to the question you for a follow up question.
Vivek Lohia
And this I can mention. Localization means that earlier the import content was. Because these are very specialized brake systems. So lot of the critical parts we were importing from Europe for the brake systems. And now we have localized a lot of these components. So once we localize the cost definitely goes down. Plus we have save on the import duties also. So that itself will have a huge impact in terms of a margin profile. And the rest of the JVs or the subsidiaries are all profitable for us.
Akash Vora
Understood sir. Thank you.
operator
Thank you. The next question is from the line of Silesh Mota from scp. Please go ahead.
Sailesh Mohta
Yeah. Good evening Vivek sir. How are you doing? Hello.
Vivek Lohia
Yes please.
Sailesh Mohta
Good evening Vivek sir. How are you doing?
Vivek Lohia
Yeah, good evening. I’m doing well. Salishi. Please go ahead.
Sailesh Mohta
I’ve got two questions. One is on Rail Deal and Action project and another is on consolidated cash flow statement which could be a housekeeping question. So I’ll start with Rent Deal and Excel Project. I heard you saying that this project would be completely commissioned by financial year 27 and you expect a turnover of 3000 crore from this particular Kunda plant. So just a question on this as to when do we expect 3,000 crore turnover from this plant and at what capacity inflation level.
Vivek Lohia
So we expect the same to happen in FY28, 2829. I think that has been a projection where we reach up peak capacity and we are looking to close to about 80% of. At about 80% of plant utilization.
Sailesh Mohta
At 80% we will get 3,000. And this 3,000 crore will come roughly one and a half years after the project is commissioned. Correct.
Vivek Lohia
About a year after the project is commissioned.
Sailesh Mohta
All right. Now question on consolidated cash flow statement. I was looking at this segment called cash flow from financial activities where I find that the proceeds from long term borrowings and the repayment of long term borrowings both are positive figures. Whereas I believe that repayment of long term borrowing should be a negative figure which was there last year. Could you please explain that or I. Maybe I’m missing something here.
Vivek Lohia
Just hold on. I will pass the line to our CFO, Mr. Sanjeev. Yeah. He will be in a better position to answer you just hold on for one minute.
Sailesh Mohta
Yeah.
Sanjiv Keshri
Need to check that figure, see how it is coming here.
Vivek Lohia
So we will revert back to you on this. It’s you know. Right. So we’ll revert back to you on this in a couple of days.
Sailesh Mohta
Is the question correct? I mean you will be reverting back on one because I have seen the total of 84. 158 is correct.
Vivek Lohia
Coming question is correct. But we need to check what is the exactly why it is there. Yeah. So as the CFO said that apparently from the face of it it looks correct. But we have to understand exactly what is the reason behind it. We have to revert back.
Sailesh Mohta
All right. Directly I have few more questions but in the interest of time and giving opportunity to others and not asking them how do I ask question? Do I write to Mr. Casey or secretarial department or what?
Vivek Lohia
Yeah, definitely. You can write to Mr. Casey or the Secretary Department. I assure you you will get a. You will get reward back from us.
Sailesh Mohta
No worries. Thank you very much and all the best for future and also for your planned expansion.
Vivek Lohia
Thank you.
operator
Thank you. The next question is from the line of Sachin, an individual investor. Please go ahead.
Sachin
Hi, good evening, can you hear me?
Vivek Lohia
Yes, good evening Sachinji. Please go ahead.
Sachin
I had a question with regards to the debt that we’re taking 60 to 65% of debt for the new factory. I’m just wondering with this new Debt servicing that we have to do. Are we confident that there won’t be too much dilution for shareholder value in terms of profits, which is, at the end of the day, we have to service it and we’re not seeing the growth, you know, that we probably anticipate to service a project like that. Do we really see the pat coming down in the coming years is the question?
Vivek Lohia
No, I don’t think. I think taking. On the contrary, if we had taken more equity, that would have. The shareholder returns would have come down. I think the. And then plus the debt is on the subsidiary. So JWL has no direct obligation on the debt. The debt is taken at the subsidiary. So I don’t see a reason why there will be any impact, first of all on jwl. Secondly, we are very confident on this project and as you have seen, that there is a substantial demand supply gap and our own captive demand for wheelset itself is so strong, I think about half of the capacity will just go towards fulfilling our captive demand.
And plus with the strength which we have in terms of European partnerships as well as the demand which is there from IR which we and other players in the market, honestly, I don’t see a reason why we would have any challenges in terms of supplying.
Sachin
Okay, okay, thank you. And my next question is. I’m not sure if I heard that right. You said we are delivering around 100 vehicles per month in the ELCV segment, is that right?
Vivek Lohia
No, I am saying that we expect to achieve that number very shortly. So the market, the response on the market has been very, very positive and we are now working towards consolidating our supply chains. So we expect very shortly in the next six to eight months to achieve the number of about 100 vehicles.
Sachin
Okay, so I’m just wondering because our previous guidance for, you know, the vehicles in this financial year, please request you to the same question, Sir. It’s. It’s the same question, sir. It’s on the same delivery of vehicles that I’m asking the question. Yeah, so the previous guidance, I’m not sure if we are actually meeting that with the 8,000 vehicle delivery capacity, we are still doing hundred in a few months. Would we be able to achieve the previous guidance given vehicle manufacturing?
Vivek Lohia
You are confusing with capacity and about deliveries. We had never mentioned that we will be doing 8,000 vehicles. We have mentioned that that would be a capacity. None of our guidance, I think I’ve ever mentioned 8,000 vehicles. So you are confusing between capacity and in terms of the deliveries.
Sachin
So we, after six months, we’ll be doing 100 vehicles per month.
Vivek Lohia
Yes, yes, that is what the numbers which we are targeting and we are fairly confident on the same. But however, please don’t confuse capacity.
Sachin
Okay. Okay, so I’ll rejoin with you. Thank you.
operator
Thank you. The next question is from the line of Chandvi Patel, an individual investor. Please go ahead.
Chandvi Patel
Hello.
Vivek Lohia
Yeah, good evening. Please.
Chandvi Patel
Yeah. Sir, my question was related to a shareholder perspective. Actually I’m seeing a lot of value loss in your company and in my personal shareholder money also. So are you planning to do something for the shareholders at least?
Vivek Lohia
But Janhvi, honestly, in terms of company has been fairly robust in terms of performance and guidance. And we have been issuing dividends also at a regular basis beyond that and you know, all the projects which we have undertaken and we have been very consistent with the execution also on those projects. So I think in terms of shareholder value, I think it’s. It all depends on a lot of external factors which are beyond our control. So it is. It will not be fair for me to even comment on that. But however, you know, we will continue to meet the targets which have been set by us.
And I can assure you that company is on a very strong both in terms of revenues and profitability. It’s on a very strong trajectory.
Chandvi Patel
Thank you, sir, I appreciate it.
operator
Thank you. The next question is from the line of Rajesh Vora from Jain Venture. Please go ahead.
Rajesh Vora
Good evening, Vivek. Just wanted to get your perspective on how do you plan to. You mentioned battery business is a very good opportunity. So what’s the two, three year roadmap for battery business?
Vivek Lohia
Could you please repeat the question? Your voice I could not get you. Exactly. Yeah.
Rajesh Vora
In your mobility subsidiary, battery business is one of the good opportunity you were talking about earlier in the call. So could you give us some sense on the 2, 3 year roadmap about how you plan to exploit that opportunity?
Vivek Lohia
Again, to give right now, roadmap is very premature. But what I can say is that the market is growing at, you know, it’s growing close to about 100, 200% year on year. Right now, just one segment. If you look at the battery storage segment, as you are aware that now the government is mandating all solar parks to have substantial capacities which they would require to store that for evening use. So that market itself, I think in India by 2030 is projected to be about close to 10 gigawatts. So you can imagine the size of that market right now more than, I would say 99% of that demand is met by from China directly, but always definitely there’s a huge push for localization of the same and which is also going to happen in a very rapid manner.
So that itself I think is a huge address market. Plus, you know, as we reach scale in India, our exports are also going to. As you’re aware that Jupiter has been exporting also these solutions and that will also keep on growing the railway segment itself. Right now we have already started with the Vande Bharat but on the passenger coach side also we expect a lot of orders to come for these batteries and further railway applications. So I think overall definitely there is a huge opportunity in this segment.
Rajesh Vora
Interesting. And my second question on Windset business you mentioned that FY29 when company operates at 80% utilization will be around roughly 3000 odd crore of revenues. What sort of margin we could expect from that in that year? Roughly. And what is the payback period for this 2500 crore project? What is the payback period in terms of number of years?
Vivek Lohia
We expect margins of over 20% as I mentioned and I think the debt repayment is over 12 years. Over 10 years. Sorry, it’s over 10 years.
Rajesh Vora
Okay, okay. And we’ll get our money back. 2500 crore in terms of profits would be what? 5 years, 4 years, 6 years.
Vivek Lohia
Around 5 years roughly.
Rajesh Vora
Okay, great. Thank you. All the very best.
operator
Thank you. The next question is from the line of Devar Shah from Suniti Securities. Please go ahead.
Devarsh Shah
Yeah. Hello sir. So basically I was seeing the figures of Excel. So in this quarter it was 24 against the previous quarter of 1498. So what is the reason behind it? Hello.
Vivek Lohia
Oh see the reason being is in, in the previous quarter we must have sold loose axles to Indian Railways. And this year the sale has been more on this quarter the sale has been more on wheel sets rather than the axles. So the axles was part of the wheel sets and that time loose axles must have got delivered. So depends on which order book is getting executed on in which quarter. So it’s. I think it’s because of that.
Devarsh Shah
Okay, understood sir. And second question is like there is a speculation like because of the meanset shortage issue this time the government had kept a flat budget for railways. So if we are, if we see the recovery in the second half then can we expect a raise in the Indian budget for railways?
Vivek Lohia
You know this is a question I think it is to be asked to the government, I think to the policymakers. But definitely the budget was not kept flat for shortage of wheel sets. I can assure you that the government is very, very positive on the railway sector. The freight business has been growing consistently. They expect the the freight business to grow further and that is one of their focus areas. So definitely we will. And the government is investing a lot on the track infrastructure itself. So definitely in future we will see a strong momentum in the segment.
Devarsh Shah
Okay, sir, thank you for answering the questions.
operator
Thank you. The next question is from the line of Jainam Jain from ICICI Securities Premium. Please go ahead.
Jainam Jain
Thank you for the opportunity again. Sir, my first question is out of 8,700 wagons we supply during this, how much was supplied to private segment?
Vivek Lohia
Just hold on. The private segment, the supplies, how much was to private and how much to. Unfortunately that number is not readily available with us. But if you write a mail, we will share the same with you.
Jainam Jain
Okay, sir. And sir, actually asked by one of the participants, like what’s the guidance we have for FY26 in terms of revenues and margins?
Vivek Lohia
So again, as I’ve told you, margins will. Will be similar. There will be some slight improvement in margin but not by nothing substantial. We already, I think our margins are the leading in our segment in terms of revenue guidance. Again as I mentioned that we are targeting to achieve close to 10,000 wagons in terms of revenues. But that all depends on the improvement of supplies from Indian Railways. Four wheels which they are fairly confident will happen. So again it is subject to that. I think in terms of guidance would be better, I think next quarter if we will be in a fairer position once the supplies improve to give, you know, substantive guidance in terms of revenues.
But definitely we expect the revenues to be to improve over next year.
Jainam Jain
All right, sir, thank you and all the rest.
operator
Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand the conference over to the management for closing comments.
Vivek Lohia
To conclude, FY25 has been a year of solid progress execution across all fronts. With the foundation firmly in place, the start of FY26 is already looking brighter. We look to build upon this momentum and drive sustained growth through the rest of the year. Thank you for your continued trust and support. We look forward to updating you in the coming quarters. Thank you.
operator
Thank you. On behalf of Systematics Group, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.