Ppap Automotive Limited (NSE: PPAP) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Unidentified Speaker
Abhishek Jain — Chief Executive Officer
Sachin Jain — Chief Financial Officer
Analysts:
Unidentified Participant
Ankur Gulati — Analyst
Presentation:
operator
Ladies and gentlemen, you are connected to PPAP Automotive Limited Q4, FY25 earnings conference call. Please stay connected. The call will begin shortly. I repeat, ladies and gentlemen, you are connected to PPAP Automotive Limited Q4 and FY25 earnings conference call. The call will begin shortly. Please stay connected. Ladies and gentlemen, good day and welcome to the PPAP Automotive Limited Q4 and FY25 earnings 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 Start then zero on your touchtone phone.
Please note that this conference has been recorded. I now hand the conference over to Mr. Abhishek Jain, Managing Director and CEO, PBAB Automotive Ltd. Thank you. And over to you sir.
Abhishek Jain — Chief Executive Officer
Thank you very much. Good morning everyone. I would like to extend a very warm welcome to all the participants joining us on this call. Accompanying me today are Mr. Sachin Jain, our CFO, along with our Strategic Investor Relations Advisors, Strategic Growth Advisors. I trust you’ve had the opportunity to review our quarter four and financial year 25 results along with the investor presentation which are readily available on the stock exchanges as well as on our website. Let me start today’s call with a brief overview of the industry. The automotive industry operated in a challenging macro environment during financial year 25 marked by shifting demand patterns and cost pressures.
While passenger vehicle sales reached an all time high of 43.02 lakh units, growth was modest at 2% year on year driven by an 11% increase in utility vehicles even as passenger car sales declined sharply by 12.6%. The two wheeler segment recovered growing 9.1% year on year while three wheelers rose 6.7% aided by increasing EV adoption. Commercial vehicle volumes declined 1.2% reflecting subdued demand. Amid these headwinds, the industry showed resilience and our performance reflects the strength of our business model, customer focus and operational agility. Now let me take you through the operational highlights for the company in financial year 25.
The automotive parts business continues to be the cornerstone of BPAP’s growth. We specialize in body sealing systems and interior and exterior injection molded parts supplied to both ICE and EV platforms. In financial year 25, we secured new orders totaling 601 crores, including 208 crores from the EV segment demonstrating our increasing presence across both ICE and EV platforms. Notably, in quarter four alone, we achieved new order inflows of 188 crores with INR 59 crores originating from the EV segment, our strategic focus remains on expanding our footprint across all major passenger vehicle manufacturers including Maruti, Suzuki, Honda, Toyota, Kia, Volkswagen, Hyundai, Renault, Nissan and others, as well as their Tier one suppliers operating within the country.
We are also committed to increasing content per vehicle, with particular emphasis on premiumization and the integration of value added parts, thereby enhancing our value proposition and market share. Over the past several years we have dedicated significant effort to establishing a strong relationship with Mahindra and Mahindra and I am thrilled to share that in April we achieved a major milestone by onboarding them as a direct customer. This development marks a pivotal moment in our journey to expand and diversify our OEM partnerships in financial year 26. While the industry is expected to experience modest or muted growth, we remain optimistic about our prospects.
This confidence is driven by the upcoming launch of new models, including several that were originally slated for introduction in financial 25 but have been rescheduled for financial year 26. Our industrial product Division, which specializes in developing application engineering solutions for various industries, demonstrated strong growth throughout financial year. This division now contributes approximately 2% to our total sales. Notably, sales in this segment doubled compared to the previous year, reflecting the growing demand and our successful market expansion efforts. I am also pleased to share that this division has begun its entry into the export market. Trial orders were successfully completed in financial year 25 and we are now poised to commence significant supply shipments from this year onwards.
A few customers are waiting. The effect of the tariff was initiated by us till July of this year. We would be able to get more confirmation on this by the second quarter of this year. The aftermarket vertical, operated through our wholly owned subsidiary Elpis, maintained its robust performance in financial year 25. The business achieved a 16% growth and now accounts for 4% of the group’s total revenues, reflecting its strong market position. Our team continued to innovate and expand our product offerings, launching over 550 new SKUs during the year, bringing our total SKU count to 1271.
In addition, we strengthened our digital presence by broadening our online sales channels through our own website as well as platforms like Amazon and Flipkart, enhancing our reach and accessibility. Furthermore, financial year 25 marked the beginning of our strategic efforts to enter international markets. Several initial steps were taken towards establishing a foreign presence and we remain optimistic that this year our aftermarket division will bring significant breakthroughs in our export endeavors, opening new avenues for growth and diversification. Our commercial tool room business, Meraki Precision Molds, delivered an impressive 75% year over year growth in financial year 25 leveraging our advanced mold making capabilities, this division now serves both automotive and non automotive customers with a well defined roadmap to expand capacity and scale operations.
Further, in financial year 25, the commercial tool room contributed approximately 4% to the overall consolidated revenue. Looking ahead to financial year 26, the division is already well positioned with over 120 mould orders worth rupees 25 crores which are scheduled for execution over the next 12 to 18 months. This strong order pipeline underscores the confidence of our customers and sets the stage for sustained growth and increased market share. Our battery division has recently undergone a rebranding to Avinya Batteries Limited Formerly known as ptec. Last year we strategically shifted our focus from mobility applications to storage solutions, a move that is already yielding positive results.
While the adoption rate has been somewhat slower than initially projected, the division is making steady progress. In financial year 25. We successfully reduced some of the losses and incurred by the company, setting a strong foundation for future growth. Looking ahead to financial year 26, we anticipate significant expansion driven by upcoming orders from marquee customers. In the storage segment, we are confident that this focused approach will drive considerable growth in the coming year. The capacity utilization for the parts business stands at 72% for financial year 25 and we anticipate further improvement on the back of higher sales and ongoing cost optimization measures.
The capacity utilization for the tooling business stands at 80% and the utilization for the battery pack business stood at a mere 5% for the financial year 25. In financial year 25 we achieved the lower end of our revenue guidance. The delay in the start of production for several new models by our customers along with slower than anticipated sales growth in our battery division contributed to this temporary slowdown. These factors impacted our overall outlook for the year. Looking forward to financial year 26, we are optimistic about the outlook with expected revenues in the range of 600 to 660 crores.
This outlook aligns with our strategic goals of growth and margin improvement and we remain confident that ongoing efforts and upcoming milestones will drive us towards these targets. Friends, to be very honest with you, after five years of dedicated effort, I genuinely believe we are now at the dawn of a promising new chapter for all our businesses. As we look ahead to the next five years, our primary objective is to ensure that our established business along with these new ventures not only succeed but also achieve unprecedented growth and de risk the growth from customer segment or democratic risks.
Now I would request Mr. Sachin Jain to take you through the financial results of the group.
Sachin Jain — Chief Financial Officer
Good morning Everybody. So for Q4FY25 on a standalone basis, our revenue grew by 7.6% y basis to INR 142.3 crores in Q compared to Rs. 132.2 crore in Q4FY24. EBITDA for the quarter stood at Rs. 15.7 crores as against Rs. 12.4 crores up by 26.3% with the EBITDA margin improved to 11% in Q4FY25 compared to 9.4% in quarter 4 FY24. Profit After Tax stood at rupees 3.8 crore in quarter 4 FY25 as well as the loss of rupees 6 crore in quarter 4 FY24. If we look at our full year performance on a standalone basis, so our Revenue grew by 6.7% year on year basis to Rs.5537.6 crore in FY25 compared to Rs.503 crore 3.9 crores in FY24.
EBITDA for the year stood rupees 60.6 crore as against rupees 43.8 crore up by 38.2% and with the EBITDA margin improvement to 11.3% in FY25 compared to 8.7% in FY24. Profit after tax stood Rs.14.1 crore in FY25 as against the loss of 4.7 crore in coming to the consolidated financials for the quarter 4FY25, our revenue grew by 8.5% year on year basis to rupees one hundred and forty seven point two crores in Q4FY25 compared to rupees 135.7 crores in Q4FY24 and EBITDA for the quarter stood rupees 15 crores as against 11.5 crores, up by 30% and with the margin improved to 10.2% in quarter 4FY25 compared to 8.5% in quarter 4FY24.
Profit after tax stood rupees 2.4 crores in quarter 4FY25 as against a loss of 8.2 crores quarter 4FY24 making a decisive turnaround and underscoring our commitment to operational excellence and financial discipline. Further, coming to our consolidated performance for full year, our revenue grew by 5.9% yearly basis to rupees 554 crores in FY25 compared to Rs. 522.9 crores in last financial year. EBITDA for the year equipped to Rs. 57.2 crores as against Rs. 39.7 crores in FY24 up by 43.9% with the improved EBITDA margin of 10.3% in FY25 compared to 7.6% in FY24. Profit after tax excluded rupees seven crores in FY25 as well as the loss of rupees 13 crores in FY24.
Further, the board of directors had declared a final dividend of rupees 1.5 rupees per share to reward the shareholders which reveals a cumulative dividend for rupees 2.5 per share for the financial year effect rupees 5. Thank you everyone. We can now begin with the questions and answers session. Please. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ranu Deep Sen from MAS Capital. Please proceed.
Unidentified Participant
Yeah. Thank you for the opportunity and congratulations on great set of numbers sir. I see the guidance for FY26 is around 20 crore PAT. Just. Just wanted to understand what makes gives you this confidence in terms of which business segments will be contributing towards the same.
Abhishek Jain
Yeah, thank you very much for that question. In the next financial year our profitability is going to increase first and foremost by improving our sales thereby improving the utilization of our assets. So we anticipate that from the current level 1 to 2% EBITDA margin could improve because we will be utilizing more of the all the three areas which I told you about. The utilization for part business also, for tool business also and for the battery business also. So this should contribute 1 to 2%. Second, from our part business we have two areas where we are focusing on improving.
First is our material yield ratios. So for financial year 25 the material yield ratio was somewhere in the range of 85%. And this year we are targeting to take it up to 88 to 90%. So this should contribute about 1 to 2% to the bottom line. Third area, what we are looking at for this year is improving the manpower efficiency. If you look at the balance sheet, our ere cost remains very high. And this year we are taking that head on. And we should be able to again improve our manpower efficiency from 85% to somewhere in the range of 88 to 90% which should again contribute 1 to 2%.
So we anticipate that if we do all these three things together then we can further improve the our margins between 2 to 4% overall. And one more factor which will drive the further pat on consolidated basis will be the if we are able to successfully increase the sales of the battery division that would cut our losses which are being contributed by that division on the consolidated results. So that is going to be another major area for us to watch for this year.
Unidentified Participant
Sure appreciate the elaborate response. So my next question. In one of the earlier calls you had highlighted that you’re trying to engage actively with Mahindra and. Mahindra and Kia. Any commentary on that? I’m at that. I think with starters we are already doing great work. I think you highlighted the curve success story. So if you can elaborate especially on Mahindra. Mahindra and Kiya.
Abhishek Jain
Mahindra. Mahindra. Also like I said in my introductory speech, we’ve already onboarded Mahindra as a direct customer. Kia. We have already been doing this business with them from last. From last 20 years. But this year we have further increased our per car contribution with them. So both these customers are becoming important strategic customers for us now.
Unidentified Participant
Sure, sure. And if I can just squeeze in one last question. If I look at your manufacturing facilities map, right. I think you’re present in up. You’re present in Tamil Nadu and you’re present in Gujarat. Any specific reason why we’ve missed out on Maharashtra which is a big auto hub. Any thoughts around the same?
Abhishek Jain
We have a facility in Pune which we started last year.
Unidentified Participant
Okay. Okay.
Abhishek Jain
Hello.
Unidentified Participant
Okay. Okay. Sure. Once. And wasn’t aware about it.
Abhishek Jain
Yeah,
Unidentified Participant
sure. Thank you and appreciate the responses and wishing you all the best for the next year.
Abhishek Jain
Thank you very much.
operator
Thank you. Before I take the next question, I would like to remind participants that you may press Star in one to ask a question. The next question is from the line of Aryan Jain from Lotus Wealth. Please proceed.
Unidentified Participant
Thanks for the opportunity. Am I audible?
Abhishek Jain
Yes.
Unidentified Participant
Yeah. So you mentioned that your lifetime order book as of now stands at 2,834 crores. So do you think that the company has capacities to execute the whole order book in about two to three years or do you have a projection or something? Related to that.
Sachin Jain
Regarding the order book execution, normally in automotive industry it is delivered based on the model life. So the model life is different to every customer. For some customer it is three years. For some model it is five years. For some is seven years. So we consider the average life. So it is the average life of five years. Over the period of every five years we need to deliver these orders.
Unidentified Participant
Okay, perfect. And I had another question. The aftermarket business seems to be a growth engine. Like and you mentioned that the company has launched about 550 products for the year as well. So like, does the company have some inventory about some particular company? Maybe Maruti Kiyan? Do we have products which are skewed towards any company as such?
Abhishek Jain
See Aryan, it’s not only the aftermarket which is driving the company’s growth. These till five years ago we were primarily focusing on the OE business, on the automotive business only. And apart from that then we started de risking ourselves for industrial product division, aftermarket tooling and the battery business. So these four businesses were started to de risk our group in the long run. When you’re talking about aftermarket, we are focusing on spare parts, that is one area. And second part is accessories. So both these areas are important to us. And third, what we have now started is consumable items also for the automotive application like sealants and all of that.
So all these things put together we have a big market to cover. And that is why we are developing more and more capabilities in this division. From distribution point of view, from organization point of view, from product point of view and from operations point of view. So last year we established a new warehouse for this division which has enough capacity to take care of the requirements for the next two to three years. That’s a central warehouse. And as time progresses we think about setting up of regional warehouses to improve the further improve the distribution and all.
Unidentified Participant
No, I actually was asking this question because there is a considerable export opportunity in the aftermarket business. So I thought if there are any particular products which might be high value or high margin products so that could be a good signal.
Abhishek Jain
You are absolutely right. Our focus is not limited to what we are making. This division operates independently. So they have options of sourcing all these products from other makers and rebranding and then selling them in the market as well. And export side also, like I said in my commentary, we have already started working on that. We already have a person who is already appointed a company and a person in the GCC area and the UAE to start talking to all the garage owners. And looking at what are they, what requirements they are they have and developing the products for all of them.
All those things have already started in last financial year. That is why it gives me good confidence that this year we should be able to start exports in this division also and in the industrial product division also.
Unidentified Participant
Thanks a lot for the answers. I really appreciate it. Thank you.
operator
Thank you. Before I take the next question, I would like to remind participants that you may press Star in one to ask a question. The next question is from the line of Ankur Gulati from Genu T Capital. Please proceed.
Ankur Gulati
Hello? Hello.
Abhishek Jain
Yes, Mr. Gurati?
Ankur Gulati
Yeah, hi. In one of the earlier calls you said that you are negotiating price increase with Maruti and it was expected to be done by Q3 of financial year 25. So any updates on that?
Sachin Jain
Yeah, regarding the price increase. So last year we got the price increase in our JV company so there were certain prices increases that were settled. But the impact is not that much. However, for certain things the discussion is still going on with the Maruti.
Ankur Gulati
And what is the current raw material price? I mean at the current raw material price, are you guys back to the old margin profile or not really or what margin profit? Current raw material price.
Abhishek Jain
Sorry, could you repeat that please?
Ankur Gulati
So let’s say a couple of years back or couple of quarters back, the raw material price increased and our margins came down. Right now, given the current raw material, how is the margin profile looking? Like.
Abhishek Jain
Currently I think the material prices are stable or they are weakening. We are not seeing any uptake in the material prices that are used by us. So I think the worst is behind us. What we saw immediately after the COVID years, I think that was the worst time for us and things are looking much better now from the price point of view.
Ankur Gulati
And your operating cash flow for this financial year is roughly 50 crores. Any thoughts on how are you planning to use it? Is it capex acquisition, reduced debt or dividend?
Sachin Jain
Yeah, for the last year we have generated around 57 crores on the operating side. So dividend we have already declared. So we are not. There is no major change would be there in this manager also regarding the distribution of dividends. But the CapEx side we are quite conservative and we are doing the minimum capex which are required to currently cater the customer requirement and also investing mainly to establishing our facilities and machine investment is directly linked to with the customer orders. So that way we are planning our cash flow.
Ankur Gulati
So if the CAPEX is slightly measured then do we expect that in FY26 whatever operating cash flows we have that will be used to reduce debt.
Abhishek Jain
Yes, yes.
Sachin Jain
Definitely reduce the debt.
Ankur Gulati
And so there was some strategy presentation where all the division had just presented. I think it’s uploaded on YouTube also. So if I sum up, I think the overall target, if I heard it right is 800cr for financial year 26 and 100crores of OCF. Any thoughts on that? I mean 800 versus your official guidance of 670cr.
Abhishek Jain
See that 800 and 100 is what we want everybody to start planning for in this year. So you’ll see whatever guidance we have given is based on the actual numbers. And that 800 and 100 is basically for capability development of the organization but for the following years. So that’s. Please don’t consider that as a guidance for this year. That is very clear that in this financial year, apart from improving the margins and establishing our business, whatever has come in the last year, this year our internal organization has to become capable of handling businesses worth first of all opportunities worth.
Those numbers have to be created and we have to start developing our organization in that sense. Whether it’s the business development team, whether it’s the operating operations team, whether it’s supply chain finance, Everybody has to start developing their mindset according to what is required for to. For the company to achieve those numbers.
Ankur Gulati
So that 800 is not as per the uploaded video that is not expired 26 target. Right. That’s less than two years down the. Line
Abhishek Jain
for that purpose. That the purpose is only for guiding people to develop their capabilities.
Ankur Gulati
Understood. And really appreciate all the division heads presenting. So I’ll request if you guys can continue with that practice as and when you do your internal session next part on the bed.
Abhishek Jain
All these division heads, apart from this video, every board meeting all the division heads are presenting their performance to the board of directors as well. We did that last week also during the board meeting. It’s a very transparent process in our company.
Ankur Gulati
I appreciate that. On the battery side, is there any discussion to get into Bess side which basically helps you guys ramp up the utilization faster.
Abhishek Jain
Yes, we are talking to couple of people who are making these telecom products. So we are working with them. We are working on the solar side, we are working on storage applications like for AGVs and all that.
Ankur Gulati
And what is your cost from. Sorry.
Abhishek Jain
Yeah, please go ahead. Sorry.
Ankur Gulati
What is your cost competitiveness versus China battery? I mean we are 10% expensive or what.
Abhishek Jain
The cells are. Anyways. Everybody. Everybody is imported importing from China.
Ankur Gulati
Correct.
Abhishek Jain
Our main competitive advantage in battery Business is our the sense of responsibilities and the sense of organized industry we offer to in this area because we have the automotive experience. So there are a lot of unorganized players in the industry who cut corners to make a quick buck and to deceive the customer by providing them some inferior products or solutions in the long run. So the trust factor that the customer has on us is what is our main USP for this division?
Ankur Gulati
Yeah, but I mean if you can give us more color, what steps are you guys taking to ramp up. Ramp up.
Abhishek Jain
For the battery division?
Ankur Gulati
Yes sir.
Abhishek Jain
We as I was explaining you in the opening speech as well. So all these orders are being tested by our customers and we are in April also couple of final audits were scheduled to be done. Those are all complete. So hopefully by this month and or next month beginning we should start getting the orders.
Ankur Gulati
And let’s say if all of them crystallize what, what your capacity utilization will be for the financial year 26.
Abhishek Jain
We are hopeful that at least, that at least 50% of the capacity should get utilized by this year.
Ankur Gulati
And what is the breakeven for this business in terms of PAT? Not a Victor or PVD?
Sachin Jain
Yeah, 50 to 55% utilization. There would be break even for the the PAT level.
Ankur Gulati
And what is the product category? Sorry, what is the PAT loss for financial year 25 in this business?
Sachin Jain
Yeah, it is 7.9.
Ankur Gulati
The sorry, 7.9 crores. And the guidance that you’re giving 20 to 25 that assumes that this breaks even or is there an upside to it?
Sachin Jain
Yeah, this is for break even.
Ankur Gulati
I’m trying to. I mean your guidance is your EBITDA will go by 20cr, your PAT will go by 13. If I plug in 2% margin growth and 10% revenue growth even without factoring in battery, you already hitting your 20cr pat. But if battery breaks even, doesn’t that add let’s say another 7, 8 crores to Pat?
Sachin Jain
Yeah, it depends because it is a given range based on the circumstances. But we are expecting how much we able to actually execute because the effort we are taking, the average effect would be different. But we are targeting.
Ankur Gulati
Understood. And for your industrial product business, any discussions with let’s say large electronic manufacturers for let’s say washing machine base or any of these things or basically go out of expand beyond auto sector.
Abhishek Jain
So in this industrial product division like in the automotive business, we are doing the body sealing systems. Our focus is on making sealing systems for other applications. That is our first focus. So last year we made certain solutions for air Handling units and storage containers and all that. So that will continue. And we. So that is first area. Second is to engage with like you rightly said, from non, from automotive to non automotive customers like cooler makers and all that. Cooler makers. We are already doing certain products for them from injection molding site. Last year also we did it and this year also we will do it.
That is the second focus area. And third most important for us is to get into the export side. I think last year we did a trial order of about of less than a crore in that year. In financial year 25 I think this year we are seeing visibility of a much higher number compared to that. And like I was saying because Mr. Trump has had initially put lot of tariffs and then he hold the tariffs till July. So our customers have requested us that please wait for till July to give you a clear answer whether the new business that is under discussion with them will what will be the future of those businesses.
We’ve already settled all the cost and everything with them. It is just that they’re waiting till July to see how this thing pans out. What is the reality of it and what kind of risk do they anticipate. Post that.
Ankur Gulati
And the last question, just for the.
Abhishek Jain
Good breakthrough for this division as well.
Ankur Gulati
Yeah. And just from internal targets perspective, when do you guys think you will be able to hit 15% ROE?
Sachin Jain
Yeah, for 15% ROE it would take time because currently we last year we are positive. So internally we are evaluating that when we will able to achieve those target of 15% kind of ROE. So right now I cannot tell you the timeline.
Ankur Gulati
Okay, thanks. All right. All the best.
operator
Thank you. Before I take the next question, I would like to remind participants that you may press STAR in one to ask a question. The next question is from the line of Tanya from Elevate Research. Please proceed.
Unidentified Participant
Good morning sir. Thank you for the opportunity. I had couple of questions. So my first question is that within aftermarket we introduce around 150 plus SKUs. What is the revenue share from this segment now?
Sachin Jain
Last year it was 4% in FY25.
Unidentified Participant
Okay. And can you help me understand what our target would be by FY26?
Sachin Jain
In FY26 we are targeting to increase it up to 5 to 6% in this FY26.
Unidentified Participant
All right, sir. Okay. Also I understand that we missed the guidance given in FY25. So can you please help me understand and give me a detailed explanation explanation as to why that happens.
Sachin Jain
So regarding the missing the guidelines, if you see on the top line, we Were able to meet the lower range of the guidance. However, on the PAT level, on the EBITDA level, basically due to the ptac we could not achieve that because earlier we were anticipating that we would able to have the operation profit in that company and reduce the losses by 50%. So that would directly reflect to the EBITDA and the tax level.
Unidentified Participant
Okay. Okay sir. So what are the growth levers for our margins growth?
Sachin Jain
I think initially in the first question Anderson has already covered for the growth lever for the margin side. First is the better the utilization of the asset. Second on the we are working on there’s an efficiency improvement improvement of employee side and the material side. And thirdly, we are also working on the improve the battery business realization. So that will also result in improving the overall EBITDA margin and the consolidated profit also.
Unidentified Participant
All right. So also just a follow up to it that are these margins sustainable?
Sachin Jain
Yeah, yeah. These are the stable margins.
Unidentified Participant
All right. Okay. Thank you so much sir for this elaborated answer. All the best.
operator
Thank you. The next question is from the line of Prisha Rathi from NM Securities. Please proceed.
Unidentified Participant
Hello everyone.
Sachin Jain
Yes please.
Unidentified Participant
So I have couple of questions. So my first question is with an order book of rupees 2834 crore. What portion is expected to be executed for FY26 and FY27?
Sachin Jain
Yeah, for the next year. I think if we said would be for the next financial year it will like we have already given the guidance. So that is already covered there.
Unidentified Participant
Okay. Okay. So my next question is for the EV business now. For the EV business now contributes 208 crore in order wins. So what is our target share of EV revenue over the next two to three years?
Abhishek Jain
There is no specific target for EV business for us. Whatever products we are making, these are all engine agnostic products. It goes into EV also and it goes into non EV vehicle also. ICE engines also. Only thing what we are now focusing more is we are becoming more aggressive in getting orders from all the EV makers in the country. So whoever is launching an EV in the Indian market, we are aggressively targeting them to get orders for our parts. So we have done that with Tata Motors also. We’ve done that with Maruti Suzuki also. We’ve done that with Suzuki Motorcycles as well for their EV2 Wheeler.
Whoever is launching EV product now on. So since last year we are aggressively focusing on getting business for those EVs.
Unidentified Participant
Okay. Thank you very much sir and all the best.
Abhishek Jain
Thank you.
operator
Thank you. The next question is from the line of Ankur Gulati from Genuity capital. Please proceed.
Ankur Gulati
Sir, on the inventory side, is there any inventory which where you took some inventory losses when the prices came down. And there’s a probability of booking inventory profits or unwinding those provisional losses?
Sachin Jain
No, there is no such losses. Because in the automotive industry the inventories are also one of the the area which always remain in on radar. So there is no asset losses.
Ankur Gulati
Understood. And what is the capital employed in battery business?
Sachin Jain
So total capital employed in battery businesses around 55 crores.
Ankur Gulati
This is out of roughly 300 crores of total net worth, right? Or should I look at total liability site?
Sachin Jain
Yes.
Ankur Gulati
Sorry. Just to be clear. Out of 300 crores of net worth 50 crore is invested in in battery or is it 50 crores out of 568 crores of liability?
Sachin Jain
Can you come again what you say?
Ankur Gulati
So your total liabilities is roughly 568 crores. So when you’re saying capital employed is 50 crore that includes. Should I look at 50 crore out of 568 crores or 50 crores out of net worth of 300 crores. Is it capital employed or equity?
Sachin Jain
It is total capital employed. It is part of. You can save up 380 crores. Because there are certain loans also there from the PPP side. So it is a part of network only.
Ankur Gulati
One more request. If SGA can help us post call is share pre tax roces of all three or four divisions. So that helps us understand that which business vertical is back to the decent set of rocs. If I’m a request SJ to share that. Or if you can add that to your presentation going forward. That will also be helpful.
Sachin Jain
Sure.
Abhishek Jain
Mr. Gulati, you can contact SGA and if you have any more questions also specific ones. They can organize a call with us and we can answer your queries.
Ankur Gulati
Yeah, definitely. All right. Thanks. Okay.
operator
Thank you. The next question is from the line of Amit from HG Hawa. Please proceed.
Unidentified Participant
Good morning, sir. Ma’ am. Hello. Good morning, sir. Yeah. Thank you for the opportunity. Different question. Like any one key insight which you must have discovered in the past three to five years. Which is very unique to understanding your sector on a specific business sector.
Abhishek Jain
One key insight.
Unidentified Participant
Yeah. Which you must have discovered in past three to five years. Which must have helped you to find uniqueness in your industry or in your sector. Which you must have discovered in last few years.
Abhishek Jain
I think that’s a very interesting question, Amit. I need to think about it.
Unidentified Participant
Many of the questions already been answered. Actually.
Abhishek Jain
Uniqueness. See at the end of the day. It is matter of perseverance and keeping your focus on the right thing. That is what I think has been the main learning for last four, five years for us. There have been many, many disturbances, many ups and downs, good situations, bad situations. But I think ultimately what works is that you keep your long term focus and you keep your you work with perseverance and do the right things at the right time. I think this is what I can offhand summarize for you what our learning has been.
Unidentified Participant
Thank you. Thank you and all the best.
Abhishek Jain
Thank you.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Abhishek Jean for closing comments. Over to you sir.
Abhishek Jain
Thank you everyone and thank you moderator for moderating the session. Friends financial year 25 was a year marked by steady progress, disciplined operations and strategic foundational initiatives. The company has taken a proactive and aggressive approach to improving margins, focusing on operational excellence and cost optimization. Looking ahead to financial year 26, we remain confident in delivering further enhancements in overall performance, driven by our continuous efforts to boost operational efficiency and strengthen profitability. We are committed to building on the momentum gained and achieving sustainable growth in the coming year. Thank you very much to everyone for joining us on this call today.
We hope we were able to address all your questions effectively in case required. For any further queries or clarifications, please feel free to reach out to our Investor Relations advisor, Strategic Growth Advisors, and we will be more than happy to answer any queries that you may have. Thank you very much everyone for being on this call.
Sachin Jain
Thank you very much.
operator
On behalf of PBAP Automotive Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.