Minda Corporation Limited (NSE: MINDACORP) Q3 2025 Earnings Call dated Feb. 06, 2025
Corporate Participants:
Aakash Minda — Executive Director, Group Finance & Strategy
Analysts:
Chirag Jain — Analyst
Raghunandhan N. L. — Analyst
Mitul Shah — Analyst
Karan Kamdar — Analyst
Shailly Jain — Analyst
Unidentified Participant
Munindra Upadhyay — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Minda Corporation Limited Conference Call hosted by Emkay Global Financial Services.
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 any assistance during this call, please signal for an operator by pressing star followed by zero on your touchstone telephones.
I now hand the conference over to Mr Chirag Jain, Emkay Global Financial Services. Thank you, and over to you, sir.
Chirag Jain — Analyst
Thank you, Farav. Good evening, everyone. On behalf of Emkay Global Financial Services, I would like to welcome you all to the 3Q FY ’25 earnings conference call of Minda Corporation Limited.
Today, we have with us from the management team, Mr Akash Menda, Executive Director; Mr Vinod Raheja, Group CFO; Mr Sameer Shah, Group Head, Strategy and M&A; and Mr Nitesh Jain, Lead of Investor Relations.
I’ll — I’ll now hand over the call to the management for their opening comments, post which we’ll open the floor for Q&A. Over to you, sir.
Aakash Minda — Executive Director, Group Finance & Strategy
Good afternoon. Thank you, Chirag, and thank you, Emkay Global Financial Services for hosting the call. Good afternoon, everybody, and welcome to the quarter three and nine months financial year ’25 earnings conference call from Inda Corporation. I hope you’re all doing well. It is a pleasure to connect with you today and I look-forward to presenting the Group’s performance for the quarter and offering insights into recent developments.
In-quarter three FY ’25, the Indian automotive industry exhibited mixed performance across segments. The two-wheeler market maintained its upward trajectory, driven by strong demand in both urban and rural areas. The passenger vehicle segment showed a steady growth, driven by strong growth during the festive seasons and enhanced discounts in various segments. The commercial vehicle sector faced headways due to prolonged monsoon delays and low infrastructure spending, leading to sluggish demand. Meanwhile, the segment registered modest growth and rural — as rural demand rebounded. The EV two-wheeler registration for the quarter increased by 37% year-on-year.
Coming to the financial performance highlights from Minda Corporation. For the quarter three FY ’25, Minda Corporation delivered consolidated revenue of INR1,253 crores, an increase of 7.4% year-on-year basis. On nine-month financial year ’25, the company delivered consolidated revenue of INR3,735 crores, an increase of about 9% year-on-year basis. I would like to also share that Minda Corporation’s domestic OE business grew by double-digit year-on-year. However, this was partially offset by subdued exports demand from particularly European market, slowdown in ASEAN countries and a downturn in the commercial vehicle segment.
In terms of profitability, the company reported EBITDA of INR144 crores at EBITDA margin of 11.5% for the quarter. This is the highest-ever EBITDA margin, which is in-line with our consistent and sustainable performance goals. Profit before-tax for the quarter stood at INR90 crores with a margin of 7.2% and PAT of INR65 crores with a PAT margin of 5.1%.
Key recent developments include order wins in the quarter — in the quarter three, lifetime order wins exceeded INR1,250 crores with EV platforms contributing over 25% of these wins. For the first-nine months of the year, our order book surpassed INR6,000 crores, reflecting an expanding product portfolio, product premiumization and rising demand for both IC and EV products across customers and across segments. Second, strategic partnership with Flash Electronics.
I’m happy to share that we have completed the transaction where Minda Corporation formed a strategic alliance with Flash Electronics to accelerate the growth of the — of making the largest EV platform in the country. As part of this partnership, Minda Corporation acquired 49% stake in Flash Electronics. The synergy between both companies, between Minda Corporation’s expertise in automotive body electronics and flash electronics strength in engine and powertrain electronics will enable the creation of a comprehensive and technology advanced portfolio and an organization.
Third, we received Minda Corporation was honored to receive the National Award for its flagship CSR initiative the receiving ceremony took place and we were given the award by the honourable President of India.
I will now take you through the presentation covering the key highlights for our quarter three and nine months performance. I request you to refer to these slides which were uploaded you refer to page number two which shows Minda Corporation at a glance. So for those who have already seen I will not repeat but for the people who are new this is a snapshot where we have now more than INR45 — INR4,600 crores of revenue, INR514 crores EBITDA of last year, 17,000 people. We have five business verticals. Engineering focused is on having now more than 900 engineering headcounts, 290 patents, 4% plus in R&D spend, two advanced technical centers and seven engineering centers. We have more than 10 partnerships and financially stable company.
Moving to the next slide, which shows the Indian automotive industry performance for the quarter on a year-on-year basis, the automotive industry grew by about 6.5%, wherein two-wheelers grew by about 8%, passenger vehicles grew by about 2.8%, three-wheelers were sluggish, commercial vehicles also de-grew and tractors grew by about 12%. For the nine months on year-on-year basis, the overall industry grew by 10%. The two-wheeler grew by about 13%, the passenger vehicle industry grew by about 2.5%, three-wheelered by 4%, commercial vehicle declined by about 6% and tractors grew about 5%. On a quarter-on-quarter basis, the auto industry saw a decline on quarter-on-quarter basis due to various reasons.
Going on to the next slide, which shows a glimpse of where the Spark Minda Group and Minda Corporation had exhibited in the Bharat Mobility show from 18 to 21st of January in Delhi NCR. I’m happy to share that the Group got very positive response from the customers, suppliers, partners and investors.
Moving on to the next slide, which is Slide 4, which shows the key strategic developments for the quarter and nine months. For the quarter, the quarterly revenue was about INR1,253 crores. We achieved the highest-ever EBITDA margin at 11.5% with a growth of 32 basis-points year-on-year basis. The total lifetime order book was excess of INR250 crores, honorable President of India conferred National Award to Minda Corporation for its marquee program and capacity expansion in diecasting division, instrument classes and other EV products cater to in the growing demand.
I’m also happy to share that Fitch has upgraded Minda Corporation from double-A minus to AA. For the Nine-Month, the revenue grew by 9% despite various challenges. EBITDA margin stands at 11.3%. The total lifetime order book exceeds INR6,000 crores. We signed two strategic partnerships in the — in the first-nine months, which is with XCMF for Sunroof and power tailgates and Sanco for high voltage connectors for wiring harness business and we filed 17 patents taking the total patents to 290 plus for the Faminda Corporation.
Moving on to the next slide, which shows an update on the strategic partnership with Flash Electronics, which was signed on 15 January. I’m happy to share that the proposed transaction is already completed where Minda Corporation has acquired 49% stake in Flash Electronics and its subsidiaries and the respective amount of INR1,372 crores has been paid all-in cash. I would like to share that Flash Electronics is a leading manufacturer in powertrain and EV components to key automotive OEMs in India and overseas. The transaction is valued at INR3,100 — INR3,100 crores. Corporation has acquired 4.9% stake and post this, the net-debt to equity in short-term will be 0.6 times and pro-forma net-debt to pro-forma EBITDA is less than 1.8 times. In this, the strategic rationale of adjacent product portfolio, complete system solutions offering in the electric vehicle segments and it is focused towards customer capability and capacity-centric collaboration.
Moving on to the next slide, we are showing the key performance highlights for the quarter where the operating revenue has grown by 7.4% year-on-year basis. Gross margin has grown by 66 basis-points to 38.4%. EBITDA for the quarter stands at INR144 crores, which is 10.5% increase year-on-year basis and EBITDA margin is the highest at 11.5%, which is 32 basis-points year-on-year increase. PBT for the quarter stands at INR190 crores with an increase of about 19.2%. EBITDA — PBT margin stands at 7.2%, which is 67 basis-points increase and PAT stands at INR65 crores, which is 23.5% increase year-on-year and PAT margin is about 5.1%, which is again 64 basis-points year-on-year increase. Basis on this, the Board of Directors has recommended an interim dividend of 25% on the face value.
Moving on to the next slide, which is quarter three and nine months performance. So revenue on quarter — for the quarter has grown by 7%, whereas the EBITDA on the same-period has grown by 11% and PAT has grown by 23%. On nine months basis, the revenue has grown from INR3,436 crores to INR3,735 crores, which is a 9% growth, whereas the EBITDA has grown by 12% from INR376 crores to INR422 crores for the first-nine months and has an EBITDA margin from 10.9% to a sustainable 11.3% and PAT margin has grown by 30% from INR156 crores to INR203 crores, increasing the PAT margin from 4.5% to 5.4%.
Moving to the next slide on the business vertical performances. In the Mechatronics and Aftermarket division, on year-on-year basis, the revenue has grown for the quarter from INR576 crores to INR608 crores. While the quarter has come down, quarter-on-quarter has come down due to the sluggish demand in the exports and stood out in the RCN market, whereas on the nine-month basis, the revenue has grown from INR1,663 crores to INR1,821 crores, marking a 10% increase. On the Information and connected systems, there is a 9% growth year-on-year from INR590 crores to INR645 crores and whereas on the nine-month basis, INR1,773 crores has grown to INR1914 crores and the quarter-on-quarter revenue was sluggish due to the downturn in the CV segment.
Moving on to the next slide, which shows the revenue breakup by-products. Wiring harness continues to be about 33% of the revenue. Vehicle access products is about 24%. The diecasting division is about 15%, clusters is about 15% and others are grown from 8% to 13%, which includes products in the EV area as well as other product lines. By geography, India continues to be the majority of the business with about 87% to 88%, followed by exports to about 8% and our ASEAN operations have about 5%. By end-market, two and three-wheelers for the first-nine months continue to be about 47%. Commercial vehicles to be about 27% to 28%, aftermarket in the range of 11% and passenger vehicle is about 15%.
Moving on to the next part, which is on the ESG, where we as an organization are working towards sustainable operations, care for people, ethical business, inclusive growth and responsible value chain. I request you to go through the slides and we will share with you in the next coming quarters on how we are coming up with our sustainability goals.
As in the next slide, which shows the picture of Honorable President of India awarding Mr Sarika Minda for the Spark Minda Foundation under the suction the suction program as well as Midda Corporation receiving prestigious award, which is the Helen Keller Award for the year.
On the next slide shows our various corporate social responsibility programs that we have done through the quarter. The next slide shows the various awards that we’ve received from the customers and industry bodies in the continuous areas of operational excellence, supplier development, HR and others. And I’m very happy to share in-quarter three, Minda Corporation has been awarded a Great Place to Work. With this, I request you can follow the next slides in terms of the annextures, which shows the consolidated profit and loss statement. Historical income statement as well as about the group profile in the next slide.
I would now request to open the floor for the questions. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may enter a star, followed by one on the touchstone telephones. If you wish to remove yourself from the question queue, you may enter star, followed by two. Participants are requested to use only 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 Ragunandan from Nuvama Research. Please go-ahead.
Raghunandhan N. L.
Thank you, sir, for the opportunity. Sir, firstly, several new products and focus areas were highlighted at the Auto Expo. Can you talk about key growth areas, top three-product segments where you see good traction ahead.
Aakash Minda
Yes. Hi, Ragu. Thank you for visiting the Auto Expo. Our growth areas besides our legacy businesses, which is in the area of access, driver information system, wiring harnesses, tie casting and electronics. All these product lines are moving towards the premiumization and therefore you are seeing in these areas is where the growth is coming from. Followed by some of the new products that we have launched in these verticals itself, which are on the EV power electronics front, as well as in the EV charging stations. Number two is on the intelligent transportation system, which is coming from the electric vehicle bus segment. Number three are other electronics such as the wireless chargers, telematics and other product lines.
Raghunandhan N. L.
Thank you, Aakash. Continuing the point on premiumization, can you talk about how you have seen the share of a smart case increasing in your safety systems revenue and how you have seen digital clusters share increasing in overall clusters, trying to understand how content per vehicle can keep increasing and any targets also for future which you can talk about?
Aakash Minda
So Ragu, in terms of the smart keys, this continues to be about 7% to 8% of our revenue of our vertical Access division. And in the next quarters to come, this is expected to grow on consistent basis, while there are new launches, product launches as well as more penetration increases in the IC as well as vehicles. When it comes to the instrument clusters, the analog clusters are moving towards the clusters. And currently in our Minda instruments portfolio, this also continues to be about close to 8% to 10% of our revenue when it comes to the new or next-generation clusters, which is TFT in the various sizes, which are connected and other electronics in the driver information system space. And going-forward, they will be having a larger penetration in the four-wheeler segment on the TFT slide.
Raghunandhan N. L.
Thanks, Akash. Coming to the tie-up with Flash, if you can talk about product readiness was showcased, especially for motors in the non-two-wheeler, PV and CV segment, has there been any order wins? How do you see the potential for this business? And that is more of medium-term question. And in the near-term, how do you see the synergies panning out between and Flash leading to cost-savings? And if you can talk about FY ’26, how can there be a revenue potential of sales from Minda to Flash?
Aakash Minda
Yeah. Yeah. So I think had a couple of questions on that front. But just to share with you, if you refer Page 26, which shows the combined solution as an illustration for a two-wheeler portfolio of Minda Corporation along with flash Electronics. So the current kit value being offered, which is already in mass production and supplied to various customers is in the range of INR30,000 to INR35,000 rupees per two-wheeler. Of course, this is expected to grow when there is more integration and where there is more advanced products which are coming up in terms of a system solution and kicked value offering by combining the products of Minda Corporation and Flash to various customers.
Number two is when it comes to the four-wheeler and other segment vehicles, there are products which are already ready with flash electronics when it comes to motor and motor controller. We are already engaged with various customers on that. And number two, in the power electronics space where Minda Corporation has already developed products. We have already won orders and we have now products which can be are already going to be in mass production by end of FY ’26, where we’ve already won orders. Sorry, can you repeat the third question, please? With the revenue potential for Minda to flash in FY ’26 or over the next two, three years, how do you see the ramp-up?
Raghunandhan N. L.
With the revenue potential for Minda to flash in FY ’26 or over the next two, three years, how do you see the ramp-up?
Aakash Minda
Yes. So flash electronics has been growing at a constant rate of about 17% to 18% and we expect them to grow in the similar range in the next few quarters to come. Of course, with new and new products and more-and-more synergies coming from Minda Corporation and Flash Electronics together, we expect to grow this together even higher jointly.
Raghunandhan N. L.
Thank you, Akash. I was referring to how much can be the sales which Minda can do to flash? Can it be INR200 crores to INR300 crore per annum?
Aakash Minda
Sorry, can you repeat the question please?
Raghunandhan N. L.
How much revenue can generate from sales to flash? You know sourcing from each other…
Aakash Minda
There are various avenues of synergies from way of cross-selling in terms of die-casting products, wiring harness, electronics and of course, more importantly, a system solution offering to the end-customers, which is going to make both of us competitive. So we expect by 2030, this number you know is in the range of about INR500 crore INR600 crores.
Raghunandhan N. L.
Thank you so much, Akash. I’ll come back-in the queue.
Aakash Minda
Thank you.
Operator
Thank you. Ladies and gentlemen, if you have any questions at this time, you may enter star, followed by one on your touchstone telephones. Thank you. The next question is from the line of Mitul Shah from DAM Capital. Please go-ahead.
Mitul Shah
Sir, thank you for the opportunity and congratulations on a record-high 11.5% EBITDA margin. Sir, my first question is on your R&D and investment, which is almost more than double in FY ’24. How that is shaping up in first-nine months and what would be this as a percentage of sales going-forward? And in context with that, we already have 290 plus patents filed. So what is the status latest update on that side?
Aakash Minda
Yes. Hi, Nikhil. So in the previous years, we’ve been spending about 1.5% to 2% in our R&D. Now as in capex — OpEx and capex put together, we are investing close to about 4% or north of 4% in the R&D. And this year, of course, we — in the financial year ’26 also we expect to continue in the similar range. In the first-nine months of the year FY ’25 also, we’ve invested in these similar lines where we have set-up a new R&D center as well as expanded the areas of products into the areas of design studio as well as the integration of product lines, EV products and strengthening the competency capabilities and capacities of our products that we have developed across verticals to cater to the customers. So we expect to come up with the more product lines coming out-of-the advanced tech center in the areas of connected, electronic, electric and safe mobility.
Mitul Shah
So any number on this patents?
Aakash Minda
Yeah. So in the first-nine months, we filed 17 patents and now the patents count is 290 plus.
Mitul Shah
So second question is on localization on — particularly the wiring harness side, how it is shaping up and how this margins for that segment on a directional basis? And similar to that considering the previous question of Ragu on the new products which we displayed maximum of them were like electronics item and all those new edge technologies. So going-forward, there is a possibility of import content further increasing. So how do you see in terms of the revenue growth through that versus margin compromise to some extent due to import contract.
Aakash Minda
So is in terms of the wiring harness, as we’ve always shared before that we have taken various initiatives for localization of the connectors India, number-one and then more importantly coming from Minda Corporation. So we’ve invested in the past few quarters and years developing our own competency capability. And in the last two quarters, the connector coming connected consumption coming out of Minda Corporation connector division for our wiring harness has come to about 15%. And so the dependence on the imports has constantly gone down. And now the imports stand about 50% and domestic is about 50%, out of which 15% to 16% is the domestic consumption coming from Minda Corporation design and development capabilities.
And moving on to your next question when it comes to the new product lines. Yes, the import content when the new products are coming in, such as more electronics is going to increase, particularly on the semiconductors. So until they are made available locally in India, we have to be reliant on the global companies. And there are other products which are such as connectors and displays and other electronic items, which we are continually evaluating on how we can localize to derisk our supply-chain as well as gain, you know localization benefit that the government also happens to offer.
Mitul Shah
Yes, sir. Thanks. And last question on the debt side post this flesh deal. How do you see debt going two years down the line and what would be the comfortable debt-equity level where we believe that it’s within the range?
Aakash Minda
So I think the current debt level is going to be about 0.6 times our debt-to-equity ratio, which is well within our comfortable financial prudence that we have set for our organization. And going-forward, of course, there’ll be various options that one can evaluate. And. And more importantly, Minda Corporation is generating enough free-cash flow and cash-generating to looking at how we can reduce this going-forward. So I think from our side, we are in a very comfortable position not hampering the balance sheet.
Mitul Shah
Thanks and all the best.
Aakash Minda
Thank you, Nitin.
Operator
Thank you. Participants with questions may enter star and one. The next question is from the line of Karan Kandar from DR. Please go-ahead.
Karan Kamdar
Hello, sir. Hope I’m audible. Congrats for your excellent results and thank you for giving me this opportunity. Sir, I had a more general question on the industry. Where do you see the CV industry going-forward? And can we see some signs on the pickup of the CV industry?
Aakash Minda
Yeah. Sorry, can you repeat the question and request you to be a little more clear, please, if you can?
Karan Kamdar
Sure, sure. So the CV industry is lackluster right now, right? So commercial vehicle industry. So where do we see that industry going and when can we expect a pickup coming in that part of the industry?
Aakash Minda
So we believe that the CV industry should bounce-back in the next recent quarters to come. But of course, we are expecting a single-digit growth in the next few quarters. We’re not — as per our planning, that’s what we look at.
Karan Kamdar
Got it. Got it, sir. And sir,, like recent kind of the number — auto numbers have also been going down, do we foresee any impact in the coming quarters in the Q4 or Q1 of FY ’26 is — will there be any impact due to the auto numbers going down or will that remain stable?
Aakash Minda
Which number is going down, sorry
Karan Kamdar
Auto, four-wheeler. Four-wheeler, four-wheeler sales.
Aakash Minda
No, so again, four-wheeler I think is in the right space where of course, new product launches and other products are coming up. And if you see that all OEMs are expanding capacities all across India. So I think this is a segment which at least in the mid-term to long-run will definitely — will definitely grow. And all the reports show that the four-wheeler is expected to be about 7 million to 8 million vehicles by 2030. So a modest growth is expected over the next few years.
Karan Kamdar
Okay, got it. Thank you so much, sir. That’s it from my side.
Aakash Minda
Thank you.
Operator
Thank you. The next question is from the line of Chiraj Jain from Emkay Global. Please go-ahead.
Chirag Jain
Akashi, just wanted your sense how, let’s say, we can expect — what kind of growth we can expect over the next two, three years at a broader level? And especially on EBITDA margins, now we are already at 11.5%, which is your all-time high EBITDA margins. How — do we see further scope for margins to improve for the next two, three years?
Aakash Minda
So Chirag, we have always been wanting to outperform the industry and that is where we commit to ourselves and to everybody at large. And if you see in the current quarters as well, we have been delivering the growth, which is for the domestic OE market, but due to the export market being sluggish and the local commercial vehicle segment, which is where we have 1.7% dependence is kind of pulling us. But even if all these various different segments even expect it to be stable, this should be easily giving Minda Corporation the desired growth, which is outperforming the market. In the mid-term to-long-term, our objective is how we can grow 1.5 times the industry. And with the order book and with the investments and capacities that we have done with technology and people, we are well in the place to have — well within the place to harvest the growth which is expected if these segments come positive. On the EBITDA side, we have come over the past few years on the consistent and sustainable numbers. So while we are very happy to share that we have done a all-time high percentage, we expect this to be stable and then grow in the times to come.
Chirag Jain
Thank you. Any update on the Sunroof and closure system project as well, if you can share?
Aakash Minda
Yes. So we have been under discussion and products are under testing validation at a couple of customers. So as and when there is a further development, I’ll let you know.
Chirag Jain
Okay. Thank you so much. I’ll come back-in the queue. Thank you.
Aakash Minda
Thank you.
Operator
Thank you. The next question is from the line of Jain from Dolat Capital. Please go-ahead.
Shailly Jain
Hi, sir. Good evening and thank you for the opportunity.
Operator
Sorry to interrupt,. We are not able to hear you very clearly.
Shailly Jain
Is this audible?
Operator
Yes, sir. Thank you. Please go-ahead.
Shailly Jain
Hi, sir. Good evening. Thank you for the opportunity. Sir, where do we stand-in terms of our smart business? How are we progressing on that part? Have we got any orders on that front?
Aakash Minda
Yes. Hi, Sheri. As I mentioned, we are doing about 7% to 8% of smart keys of our total security divisions, about 7% to 8% revenue comes from the smart key businesses. While more-and-more penetration of the new product launches are going to come in, in terms of IC and EV, this penetration is expected to grow further as what we have already shared previously by 2030 and beyond.
Shailly Jain
Thank you, sir. That was helpful. And how are we looking at FY ’26 for us? Any target…
Aakash Minda
In terms of?
Shailly Jain
Our revenue and margin targets?
Aakash Minda
So I just explained this in the previous question, but we would definitely want to grow 1.5 times the industry. So while the industry is expected to grow about 6% to 7% over the next financial year. We are in position in order to achieve our goals and targets. Of course, the segments that we are having our order book from also if they come into the growth segment, this will booster our growth going-forward. So definitely the commercial vehicle segments and the export segment where we have dependency. If they are not facing headwinds, we will definitely grow faster than the industry.
Shailly Jain
Yes, sir. Thank you. Any specific targets for exports?
Aakash Minda
Currently, we are about 8% to 10% of our revenue. And as an organization, we would like to grow this much higher than the domestic growth. So while we have the order book, we would like to take it to about 15% in the mid-term to long-run for our overall revenue side.
Shailly Jain
Thank you, sir. That was really helpful.
Aakash Minda
Thank you.
Operator
Thank you. Participants, if you have any questions, you may enter star and one. The next question is from the line of Bhushan, an Individual Investor. Please go-ahead.
Unidentified Participant
Yeah, hi. Thank you for the opportunity. Sir, my question was regarding that margins. So Minda has delivered the highest quarterly margin. So what were the key drivers behind this performance? And was it the function of operating leverage, product mix or the cost-efficiency.
Aakash Minda
Hi, Bhujan. So there have been various factors where we have been constantly working. If you look at our journey over the last many quarters and years, we’ve been focusing on operational excellence in various divisions. Of course, one of the most important areas have been our wiring harness division where previously they have been an underperformer, but I’m happy to share that with in-line with our commitment, we’ll be able to bounce-back in that business and gain more orders as well as become more efficient and the help of localization of the products and connectors is coming into play. Of course, when there is now economies of scale coming from the new product launches, as well as the premiumization of the products is coming into aspect. And of course, while being in the operational and manufacturing industry, we continue to invest in our operational excellence, work closely with our suppliers in becoming more efficient in order to, you know, achieve these. So this is how we plan to also sustainably and consistently grow forward.
Unidentified Participant
Thank you. Thank you, sir. And the second question was regarding the industry prospects. So how do you see the competitive intensity and the key growth drivers for the company in the coming quarters? And how do you see the order book shaping up specifically from the EV segment. So did you ask about the industry growth and the EV segment per se of order book shaping up for the product portfolio, specifically on the EV segment?
Aakash Minda
Yeah. So currently, if you look at two-wheeler industry per se, it is — our penetration is about 5% to 6% on the overall industry. And at Minda Corporation, also the EV platforms or products are about 5% to 6% of our overall revenue. Of course, when you now combine in flash, this is much higher, close to about 10% to 12%. And in terms of flash electronics itself, it is a much higher portfolio. More than 20% of the revenue comes from the EV products. Going-forward, consistently, we have been winning businesses, all the products which are on the IC, EV as well as other segments which are hydrogen or et-cetera, all of our product lines are again engine agnostic. So whether it is the instrument clusters or security systems or wiring harnesses or die-casting or other electronics are going to become more electronics in premium when the you know EV shift happens or the premiumization of the industry happens itself.
Unidentified Participant
Thank you, sir. And you have also mentioned the premiumization of the products. So do you expect the further room for margin expansion.
Aakash Minda
So of course, while we continue to start launching our new products of the order wins that we have done with the better economies of scales and better experience in those product lines, which will definitely continue to enhance our margins and you know, make money for all of us.
Unidentified Participant
Thank you. Thank you, sir.
Aakash Minda
Thank you.
Operator
Thank you. Participants with questions may enter a star followed by one on the touchdown telephones. The next question is from the line of Monendra from Elara Capital. Please go-ahead.
Munindra Upadhyay
Yeah, hi, sir. Good evening. So my question was related to exports. So in the export side, are we seeing any green suits visible for the coming quarters or so or any recent development like just to understand more color on the like current ongoing weakness on the export side? Any color would be helpful.
Aakash Minda
Yes, I think in the past year-on-year basis, our exports as a revenue has been going down, but happy to share that on quarter-on-quarter basis, it is flat as we have shared whatever headways we could expect there. But of course, with the new geopolitical concerns, it is in somewhere opening us opportunities, but of course, somewhere they could become challenged in terms of the American market if you however the future comes up with. So we are also continuously evaluating the situations, but our focus right now is to win order book for the various products and various customers that will help us wave — grow on the tide when it comes.
Munindra Upadhyay
Understood. Thank you. That’s all from my side.
Aakash Minda
Thank you.
Operator
Thank you. The next question is from the line of Mitul Shah from DAM Capital. Please go-ahead.
Mitul Shah
Yes, sir. Thanks for follow-up opportunity. Sir, I have two questions. First one is on the revenue breakup segment-wise other segment has gone down from 13% to 8% in nine months ’25 versus last year nine months. So within others, which is a major drag or any further explanation on this.
Aakash Minda
Yes, when it comes to others, it combines of various product lines. So please pardon me, I will not be able to share the various details, but there again in the smaller segments and smaller businesses combined this other, which is the starter motor division, which is the elect electronics, which is the intelligent transportation systems, the EV products. So definitely some have increased, some have gone down due to the export challenges, which are somewhere dependent extremely on the export side as well. So that is where the other segments have grown, particularly. So there are sensors, for example, and other product lines. So that is where it’s a mix where it has gone from about 8% to 13%.
Mitul Shah
So actually, it has gone down sir, from 13% to 8% as per the presentation.
Aakash Minda
Sorry, it has gone down again because they have been more on the exports front, there have been some particular product lines as well as some of the customers that we had one orders from, particularly in the new-age OEMs have not done well on the — on — particularly on the EV products or one or two product lines that are there. So that has been the reason why they have come down from 13% to 8%.
Mitul Shah
Yeah, sir. And second question on further margin expansion. Among all these five verticals, which vertical or which segment do you see maximum margin expansion possible two or three years down the line or how would be the order in terms of the margin improvement scope within all these five verticals?
Aakash Minda
Yeah. So the highest opportunity would have been the wiring harness and that again continues to be the area of much more improvement per se. Definitely, the divisions which have more number of export orders with the sales coming in from these segments will improve our margins. When it comes to the electronics segment, that is where when we will get further economies of scale and more penetration into the market, which is where we will expect those segments. But yes, as a blended margin, which is where we particularly share about, we are expected to be sustaining these numbers in the quarters to come.
Mitul Shah
So lastly may not be the number, but within all these verticals, where do you see highest capex spending over next two, three years for capacity expansion within all these five verticals, which one would see maximum capex?
Aakash Minda
Yeah. So in our portfolio, the highest capex comes primarily from the die-casting division and that is where the highest investment is probably expected. Also in the areas of electronics, which is again across various segments, so or across various verticals because everything is becoming more electronics per se. So these are the two major avenues. One is die-casting and second is electronics.
Mitul Shah
Thanks.
Aakash Minda
Thank you.
Operator
Thank you. As there are no further questions from participants, I now hand the conference over to the management for closing comments.
Aakash Minda
So thank you very much for joining the call. We remain highly confident in our growth trajectory, both in the near and the long-term, driven by strategic investments and an unwavering commitment to advancing our products and technologies. The union budget announced by Honorable Finance Minister is a progressive and growth-oriented budget and we are very confident that this will further boost the Indian automotive industry and Indian economy, of course, giving opportunities for Minda Corporation. We are dedicated to customer-centric, meaningful solutions, which will create the absolute value and create value for various stakeholders and shareholders. Thank you very much for joining this call. And if there are any questions, please may reach-out to our investors itself. Thank you very much.
Operator
Thank you very much. On behalf of Emkay Global Financial Services, that concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.