Rolex Rings Ltd (NSE: ROLEXRINGS) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Hiren Dilipbhai Doshi — Chief Financial Officer
Analysts:
Unidentified Participant
Rajesh Goyal — Analyst
Sonal Gupta — Analyst
Presentation:
operator
Foreign. So good. Good afternoon everyone on behalf of. Hello.
operator
Yeah good afternoon everyone. On behalf of Equator Securities I welcome you all to the Q1 FY26 post earnings conference call of Rolex ring. From the management side we have Mr. Manish Maldeka, chairman and managing director Mr. Mir Maldeka, full time director and Mr. Hiren Doshi. So without any further ado I would like to now hand over the floor. For opening remarks post which we can. Open it for the Q A session. So Hiram by over to you. Thank you. Me can you please confirm am I audible?
operator
Yeah, you are.
Hiren Dilipbhai Doshi — Chief Financial Officer
And is my screen visible?
operator
Yes.
Hiren Dilipbhai Doshi — Chief Financial Officer
Okay. Very good afternoon to all participants. We welcome you on the updates on the earnings of quarter one of fiscal 26. As you all are very much aware that global economy and the overall export business are just on a age of certain kind of sword raised by a respectable trump side for in terms of reciprocal tariff and partial tariff what has been implemented and partial again to be by end of this month and everybody is still uncertain or still still not able to you know envisage that what would be the overall call and how much in total the import duty would be applied by us for their imports or particularly the exports done by India to us.
Anyway looking to hope for the best for getting this thing without and we hope that it will not affect our business significantly. Though we have not much dependency or overall weightage to the US business today as of date we have almost 25% of our revenue. It is from the USA 20 odd percentage something from the Europe couple of percentage is from Canada, Mexico which we are expecting to grow and at the same time we are expecting to grow in Europe market. Europe market. If you people are aware that for last couple of years we were in the range of 14 to 16% of our overall revenue but for this four months we have already touched somewhere about 20% of our revenue contribution from the European side.
Again the new order winning and the new additional supply incremental dispatches that is major majorly to the European countries. Taking you to the first the numbers of the first quarter. One thing I want to add that new program which we have been nominated are 50% for Europe only Mega right sir.
Hiren Dilipbhai Doshi — Chief Financial Officer
Okay, I’ll take up the financial numbers and then we’ll have a Q A session where we would like to address the queries and the concerns of our investors. Here with me Mr. Manish Madika, CMB of the company and Mr. Mehir Madhika a whole time director in charge of entire marketing and supply chain is there with me for the first quarter of this current fiscal FY26 we have recorded revenue of almost 292 crores which was 284 crore in the previous quarter that is the last quarter of fiscal 25. If we compare the corresponding quarter of previous fiscal which is June 25th it was somewhere about 311 crore.
In terms of EBITDA we have recorded 77 crore rupees of EBITDA for this first quarter which was 22% in the previous quarter and it was 24.6 percentage corresponding quarter of previous fiscal. Here we do have gain in EBITDA margin overall EBITDA margin that is because of certain contribution added by the gross margin and we have recorded certain other income which has given me a benefit forex fluctuation appreciation in euro that gains accounted over here in terms of operating margins profit before tax for this current quarter FY26 first quarter of 26 it has recorded 68 crore visa based 49 crore rupees of the PAT which in March 25 it was the PBT was 49 cr and sorry PAT was 55 cr and PBT was 49 crore.
If we compare the number of previous years the first quarter corresponding quarter my operating margin before tax it was 67 crore and the PAT was 50 crore. If we see in spite of having 5 odd percentage decline of comparing with June 25 quarter, June 24 quarter to June 25 in top line but the overall margin remains same or it has gained to marginally. Also in terms of revenue bifurcation we have recorded bearing rings contributed almost 5046 percentage of our revenue and the auto components is growing and it has reached to 54% in this first quarter.
In terms of overseas market and domestic market bifurcation export has came down to 47% and domestic has increased or rather it has gone to 53%. Here we would like to tell that as we are getting good opportunity in the domestic market also in last couple of years though the initially the Europe market got down and now maybe we are envisaging marginal impact from the U.S. but the domestic market has significantly grown and we are expecting the couple of programs orders which has already been allotted may be deferred by a couple of months or something. But we are expecting to have the same kind of numbers in terms of the domestic market also and it may increase even as we have informed initially also even in the last few quarters that we are facing the subdued demand in the bearing ring business particularly in the industrial application overall infrastructure application where the Demand is very much lower on the bearing ring side and that is even particularly more from European side.
As I was mentioning that tariff implications touchwood Till now we don’t have any kind of indication from our customers and nothing deferment or holding of the consignment. We are in dialogues with our customer how we are going to take up the things the first incremental tariff it has already been adjusted and the customers have accepted that it has and we are going to get the implemented tariff at the end the realization at Rolex level But down the line end of this month we are eagerly waiting for the final outcome if any changes and any kind of fluctuation or changes may be proposed by US Government.
As I mentioned that domestic business continues to show traction and we are adding back couple of more customers and the good part is that Europe is reviving and we are getting as our MD sir just told that majority of the new program more than 60% of our new program new business that would be from the European side and it has already started in marginally in the first quarter revenue. The revenue bifurcation in terms of end user industries almost 50% majority goes for passenger vehicle segment 16 and a half percent that is for industrial. As I mentioned that industrial is facing some kind of subdued demand and the pressure commercial vehicle heavy commercial vehicle almost on the same line what we had two wheeler very less and the B electric vehicle and hybrid.
We are at the almost same kind of percentage we had in last quarter overall operations. As I was mentioning we have recorded 292 crore. Out of that 126 crore revenue that is from the overseas and 165 crore revenue that is from the domestic market. If you see the same numbers in the previous first fiscal or maybe in FY24 the exports is much on a higher side it was 636 crore visa with domestic was 586 crore. As we are getting good response from the domestic we are expecting further to grow in a domestic market domestic business and again with the same kind of operating margin EBITDA margin.
If we compare overall with the previous fiscals this first quarter is 77 crore EBITDA which is somewhere about 26 and a half gross EBITDA what we have recorded earlier for last year it it has averaging to 23% for the fiscal 2324 25. We are expecting the sustainability of this EBITDA definitely in the range of 24 to 23 to 25 percentage profit before tax, profit after tax for the particular first quarter this it is 68 crores before tax and 49 crores if you annualize with the four quarters or with the previous fiscal it is more or less same or bit on higher side compared to the previous fiscal numbers.
Company has good sound cash flows averaging almost 225cr rupees of cash flow on year on year basis for last three years where the company did capex of somewhere about 50 crore in the previous fiscal and in this current quarter that is the first quarter of fiscal 26 where we have spent somewhere about 18 to 2016 to 18 crore in terms of capex net debt as you are aware that it is already negative debt. Company do not have any kind of debt and company is having certain surplus fund which it is being parked in certain investments.
Company have certain fixed deposits and having a quite good sound cash flow and the liquidity position return on Equity it was 16, 17% in last couple of years. As my top line is more or less on the same for last couple of years it is on the same momentum and we are getting the same kind of, you know, even the margin. That’s why our return on equity is being bit under pressure. But we expect that down the line FY26 and FY27 this curve again will go up. These are the detailed numbers what we have already submitted.
These are the last five fiscals as well as comparing with the current quarter the balance sheet numbers for the last five fiscals. With this I would like to thank you the investor for their patience hearing. And now we are opening a session for the Q and A and would like to address your concerns.
operator
Yeah, thank you for the opening remarks.
Questions and Answers:
operator
So we’ll now open the floor for Q and A. Anyone who wants to ask the question can please use your raise hand function. Once you are done asking your question, please lower your hand. We’ll wait for a couple of minutes for the question queue to assemble and then we may start. So the first question is from the line of Jason Sones. You have been unmuted. You can go ahead.
Unidentified Participant
Hello. So I’m audible?
operator
Yes, you are.
Unidentified Participant
Yeah. Okay, thanks. Thanks for that. So first I just wanted to, you know the breakup of the bearing those both the segments export and domestic, you know, for Q1FY26 and Q1 25 as well. Just wanted that split which you give, you know for bearing ring, automotive components and scrap export incentives as well.
Hiren Dilipbhai Doshi
Okay. Domestic bearing ring for this first quarter of FY26 it is 90 and half crore or you can say 906 million 906 million for the domestic bearing ring contributed in the current quarter. Export bearing ring it was 355 million. Domestic auto components it was 527 million. And export auto component almost 90 million. Yeah. Scrap is 184 million. And export incentive is rounding to 35 million. All put together is 292,916 million.
Unidentified Participant
Sure. And so same corresponding figures for Q1FY25, the last, last quarter corresponding for Q1FY25.
Hiren Dilipbhai Doshi
Q1FY25 that is April to June 25 or you are, you want March 25 numbers?
Unidentified Participant
No, sir. April to June 25. April to June 24.
Hiren Dilipbhai Doshi
I mean April to June 24, right?
Unidentified Participant
Yes, yes, yes.
Hiren Dilipbhai Doshi
And then domestic bearing ring it was 8,857 million. Export bearing ring 450 million. Domestic auto component 460. Export auto component 1072. Whereas scrap was almost 224. And export 44 million.
Unidentified Participant
Okay. Export incentives 44 million. And scraps are us at 224 million. Right.
Hiren Dilipbhai Doshi
Yes, yes.
Unidentified Participant
Okay.
Hiren Dilipbhai Doshi
All put together is 3007.
Unidentified Participant
Sure. Thanks for that, sir. So next question just pertains to this. You know in the Q3 presentation you had alluded to certain programs which were, you know, which could add up to around 1,750 or 1.75 billion in FY26. And so just wanted to know the progress that in FY26 is, is that, do you see that revenue coming through and how will it scale up in FY27?
Hiren Dilipbhai Doshi
See the order and messages or the program what we won in and we have disclosed or we have informed those are alive as of now. And if you recall we categorically mentioned that the majority of the order would be starting from the second quarter of this current fiscal, that is July 25th onwards. Let me tell you partially, few of the orders have already been started and there are few programs which are from us and those customers because of this tariff uncertainty and all these things. They have just, you know, hold their stand as of now unless and until they got clear picture for this thing final maybe in the month of September or 25th they will be able to tell us.
Yeah. Meanwhile they have hold these things. Yeah. I would like to, yeah. Mr. Mihir Madika would like to add this. But, but they are very much positive that it is, it is just for the time being they hold means like they are doing, waiting and watching inside. So. But they are very much positive that within another one or two months we are going to get the green signal. They Are not going to divert to any other player in another country, that is for sure.
Unidentified Speaker
One thing I want to add here. Yesterday I had a call from one of our customers that this NCA, Mexico, Canada and America there 40% 60% of the raw material what they consume if it is domestic then that chapter 232 is applicable. So there is no duty. 40% is only the their export import content. So that also we are going to clarify more. But this is what basic we have.
Hiren Dilipbhai Doshi
Information that is as per USMCA rule.
Unidentified Participant
Okay.
Unidentified Speaker
Because we are supplying semi finished component and it is used in the gearbox for the complete gearbox. If the content of import is only 40% then this daily field not be applicable.
Unidentified Participant
Okay. Okay. So we that will. So our products do comply with that 40%.
Unidentified Speaker
Yes.
Unidentified Participant
Okay. So you’re saying some, some projects have been held in terms of the tariff uncertainty and we will get more clarity going ahead, right?
Unidentified Speaker
Yes, yes.
Hiren Dilipbhai Doshi
Within the maximum, within one and a half or max.
Unidentified Speaker
No customer has stopped the supply. They have not asked us to stop the supply.
Hiren Dilipbhai Doshi
Yes.
Unidentified Participant
Okay.
Unidentified Speaker
And see this auto component or whatever we are exporting it takes a long time to start the bulk supply. So there is a very big means long value lesson time. So and one more than one and a half year. So if they change the supplier with them also they have to follow the same rule. So we don’t think that they will stop supply because it is very tedious activity for them to evaluate the product from other supplier. And like China there is 30% duty. Mexico 35%. Canada 35%. So we don’t think that and I think this problem will be resolved shortly.
Unidentified Participant
Okay? Okay. Okay. So sir, my next question just pertains to this right of recompense. So just to understand correctly, I mean, I mean in a very basic sense 228 crores is the amount which is being contested. 50. 50. 51 crores we have you know provided. So the rest of the thing is still under contention. Is that understanding correct? So the rest would be probably around 178 crores on. So that is still under contention. And this legal thing is going on and we will finally get a settlement on this from this 178crores. How much is going to get? You know basically expense to the pnl.
Hiren Dilipbhai Doshi
See basically the the story is like that you know bankers lenders have claimed 227 crore wherein we have asked that. No it is not applicable as they have you calculated on a compounded basis kind of thing. Looking to our agreements and looking to over the documents executed with the lenders we are in belief that compounding would not applicable. And even the thereafter the bank has appointed one legal advisor or a one taken an opinion from a legal expert which itself also says that this compounding would not be applicable and the demand would be restricted to so and so.
Now this matter is lying on the table of the directorate of Union bank of India which is our lead bank. We are in touch with them for last one one and a half months. And we expect to get some kind of a response maybe before end of this month from the bank. But as of now it is as per our understanding, as per the backed by the legal advice. Also we have provided the maximum as per our view which is 50.6 crore and which has mentioned in our CDR approval letter also that has been provided beyond that any kind of amount, any settlement amount that would be hit back to my pnl.
Obviously.
Unidentified Participant
Okay. Okay. Just lastly wanted to understand. So this. I mean you are seeing some improvement in the domestic side for the bearing rings business as well as the autocoms business. That’s what you have alluded to. And so in a nutshell, domestic seems to be improving and auto components is improving on both domestic as well as overseas markets. Is that understanding correct?
Hiren Dilipbhai Doshi
Yes. Yes, definitely. In say. Let me tell you. Overseas market from Europe, major chunk or more than 70% it is from the auto component business.
Unidentified Participant
Right.
Hiren Dilipbhai Doshi
In domestic it’s a combination of that certain portions of bearing ring as well as mainly the auto components. So our growth as of now it is auto driven. Auto component driven only. And we expect that bearing ring business which has been suppressed but down the line, couple of quarters it will gradually improve.
Unidentified Participant
Okay. Okay. Sure, sir. I’ll come back in the queue. Yeah.
operator
Thank you, Jason. So the next question is from the line of Rajesh Goyal. Sir, you have been allowed to talk. You have been unmuted. Please go.
Hiren Dilipbhai Doshi
Yeah.
Rajesh Goyal
Hi, this is Somil Shah from Paris Investments. I was using my manager’s account. So it’s showing. Rajesh Goyal. So. Good afternoon sir. And thanks for the opportunity. I would like to know what is the current order book position in auto components and in bearing rings.
Hiren Dilipbhai Doshi
See as of now what we can have an order book broadly in the range of 110 to 120 crore on a monthly basis. Wherein you can say some almost 60 to 65 crore rupees is towards the O2 components and 45 to 50 crores is for the bearing rings.
Rajesh Goyal
Okay. And what would be the capacity utilization for both the segments.
Hiren Dilipbhai Doshi
See we. First of all we have quite common capacity available for the bearing ring as well as auto component. If I want to increase my auto component business significantly, definitely I can because we have those kind of fungible equipment. Overall we are at the range of 62 to 64 percentage of utilization.
Rajesh Goyal
Hello? Yeah, yeah, sorry, what did you say? 60 to 65.
Hiren Dilipbhai Doshi
62 to 64 Percentage of overall capacity. As of now in terms of forging, we are using still certain capacity available in the certain kind of products. But there are certain kind of products where or facilities which are occupied more than 85% or something like that. There we are adding those kind of 4G lines.
Rajesh Goyal
Okay, okay. So is there a need for a further capacity expansion or for 12 years we can continue with the same?
Hiren Dilipbhai Doshi
Yes, definitely. It is a need based kind. Need based kind of thing. You know, the spare capacity which is available to us is on the bigger size of components and the high volume components or which are majority required for the, you know, this industrial applications, windmill applications, marine applications and such on. But apart from that, the automobile applications mainly you can say from a two wheeler to four wheeler LCVs. LCVs. There we have capacity utilization is somewhere about 75, 80% or something. And if I want to set up any new facility, I need to give a lead time of almost a year or so.
So there would be a, you know, addition in anticipation of incremental business of certain kind of products. We are going to add up forging lines. In last couple of years also we have added three small forging lines which are almost at the level of 65% 70% utilization. Because for those kind of components the orders have already won and it was started as per the schedule.
Rajesh Goyal
Okay, and can we have some sort of a guidance on revenue and EBITDA for this financial year and for FY27? I mean internally what are we targeting.
Hiren Dilipbhai Doshi
For for fiscal 26? What we were mentioning that it would be somewhere about mid 10 growth for this FY26 and definitely higher team growth in FY27. Just to have an exception or rather the comment over here is to have the impact of this tariff. Maybe to some extent my US business may pays down or maybe defer to some extent. But not for the short term kind of thing. But for FY27 if something would be beyond 50% tariff and this thing again it would be a call from my customer how they are going to take up that may impact to my overall projection because one of my main auto customer is based at us.
So maybe if Their contribution would go down because of this, which we are not envisaging, at least for this fiscal. Then it may go down to some extent. But at the same time we are expecting, you know, the new orders and the new, this one upward rising from the domestic and Europe. So I think we are able to get these numbers.
Rajesh Goyal
And on the EBITDA side, I think this quarter you did a EBITDA of. If we include other income, the EBITDA is around 27%. So what are we targeting for this financial year?
Hiren Dilipbhai Doshi
See, the other income is not that, you know, constant. There are certain investments. There are certain. It’s a forex gain, foreign. Foreign currency fluctuation. So if I’m neutralizing that portion, our EBITDA would be in the range of 23 to 24 percentage.
Rajesh Goyal
That is excluding any forex gains or losses.
Hiren Dilipbhai Doshi
Regular gain. I am a certain thing realizing I’m considering this particular quarter. It has, you know, have quite positive jump which I am not expecting in the coming quarters.
Rajesh Goyal
Okay, okay. Because I think last year your Ebitdas were in the range of 21 to.
Hiren Dilipbhai Doshi
22% without this one other income. Yeah.
Rajesh Goyal
Okay.
Hiren Dilipbhai Doshi
So without the other.
Rajesh Goyal
Yeah, so without the other income you are saying 23 to 24%.
Hiren Dilipbhai Doshi
No, no, no. I’m. I’m considering gross 23 to 24. Without other income, it would be in the range of 21 to 22%.
Rajesh Goyal
Okay. In the similar range what we are doing last year. Okay, okay. And so is there any seasonality in our number? I mean, first half a bit softer and second half to be a stronger or it’s evenly spread.
Hiren Dilipbhai Doshi
It is something, you know, the first quarter always within. Starting with the low notch and then maybe second quarter, bit of incremental top line and. But mainly as you said rightly in the second half and the last, particularly in last quarter also we had major this. You can divide say 45, 40%, 60% kind of thing. First half, second half business.
Rajesh Goyal
Okay, so second half to be around 55, 60%.
Hiren Dilipbhai Doshi
Yes, yes.
Unidentified Speaker
Okay.
Hiren Dilipbhai Doshi
Okay.
Rajesh Goyal
Because sir, in last three, four years, I think if we are seeing at your revenues and the Ebitdas, I think we are at a similar range in last three, four years.
Hiren Dilipbhai Doshi
Three, four years we are similar. Very true. And even I admit that thing in my earlier conversation also. But we need to see the. All geopolitical reasons, all economical crisis and whatever. You know, this thing factually, the other industries, other businesses, what they are facing and the same kind of challenges what we are facing. Touchwood, with the grace of God, we are not having depth down and rather not negative kind of impact on our margin. Still we are able to survive or rather maintain the our 100100 odd crore revenue per month. I think that is a bit positive.
But down the line 26, 27, FY27 it is very much positive what we are looking for.
Rajesh Goyal
Okay, so that’s it from my side. Thank you and all the best.
operator
Yeah. Thank you so much. Next question is from the line of Sonal Gupta. Sonal. Sir, you have been unmuted. You can go ahead.
Sonal Gupta
Yeah. Hi, good afternoon sir. Thanks for taking my question first. Just could you give us the same breakup on a full year basis? Like what was it for FY25 domestic bearings and domestic auto component and exports.
Hiren Dilipbhai Doshi
For the fiscal FY25 domestic bearing it was 330 crores. Export it was 155 crores. Domestic auto component 178 crores and export auto component 398 crores. Yeah. Within scrap revenue of 78 crore and export incentive of 1616 crore all put together 1155 watt crore.
Sonal Gupta
Right. So in this scenario, right like what we are currently facing now, I mean how do you see the domestic pieces on the bearing and auto components moving from here?
Hiren Dilipbhai Doshi
Let me tell you say I. I told you that my first quarter bearing domestic bearing is somewhere about 906 million 91 crore almost which was previous year where my top line was higher than this quarter. And I’m talking about the first quarter of FY25 where my domestic bearing ring was 86 crore. So here we have a jump of 5 to 6%. Over here if you compare straight away with the quarter four of FY25 where my domestic bearing Ring business was 83 crore only. So here we have 89% jump in the subsequent quarter same way in auto components.
Let me tell you this quarter, March 20, sorry 6-26-25 we recorded 53 crore of revenue which was in last June 24 it was 46 crore again almost a jump of 20% in domestic auto components. In quarter Q4 of 25 we had this domestic auto component business was of 44 crore only. So here as I was consistently mentioning that domestic market we are getting numbers or rather we are getting better numbers in bearing ring as well as auto component. Both is the bearing ring business for the export. Yes, yes.
Sonal Gupta
But that I think has now become anyway a much smaller business. Right. Like last year 155 crores which is like 15 or even were even smaller. Right. Like almost 1213 of our revenues.
Hiren Dilipbhai Doshi
Yeah. So in that also we are increasing, we are having a very good hope because we are discussing with few of our customers in Mexico, USA and Europe. So the Mexico and usa due to this tariff at present it is stopped. So it may, it may differ by maybe one or two month means. Like we will get some positive results by maybe September or also. So we are hoping that in very near future our bearing exports are also going to increase.
Sonal Gupta
Right. No sir, I completely appreciate, I appreciate you are sort of getting new orders and that is why we’ve till now been largely able to maintain our top line. Although last year was a mild small decline over the last two, three years despite the challenges on the export side. But I’m just trying to, I mean like because the export environment continues to remain volatile. And now this year we’ve seen this US tariff issue as well. So I’m, I’m just wondering if, and given that we have capacity, are we going more aggressively for domestic business and is that also partly the reason why our margins have come down a little bit? I’m just trying to understand.
Hiren Dilipbhai Doshi
See, definitely we would, we will be bit of aggressive as far as domestic market is concerned. But at the same time any new business in domestic market, say for example for the electric vehicles or hybrid kind of vehicles, whether it is auto component or even the bearing ring, we are at almost same kind of margin and we are doing the same kind of margin on such EBITDA numbers on such new business. As far as my existing business, which is under pressure maybe to revive to some extent to get a better scale of economy, if marginally, if we would like to, you know, favor our customers, definitely it would be a business call.
And if they are giving me a good numbers or other, they are expecting this thing, we may go for bit of lower margin into this thing which will overall it will not impact or rather it will give a positive impact on top line as well as bottom. Both.
Sonal Gupta
Yeah, yeah, no, that’s what I was asking that incrementally, even though it might be slightly lower margin, but at least our EBITDA will grow, my fixed cost will remain same.
Hiren Dilipbhai Doshi
And, and at the same time what we need to consider is, you know, a facility which is able to generate a better kind of margin, whether it would be advisable to keep either for some time or we need to book those facilities with a smaller margin kind of thing on a long term basis. So that is something, you know, business call we need to take up at the respective time.
Sonal Gupta
But I mean like, given that we’ve had this Stagnancy for the last two, three years now is that. I mean what is your call on that sir?
Hiren Dilipbhai Doshi
That is our stagnancy. It is not my this thing. You must have chicken check the industry numbers. You must have had the other numbers in domestic business, domestic passenger car segment, two wheeler segment EV market where all you know have good kind this one negative fluctuation over there. But in spite of that we are able to manage and most particularly in the overseas market. This kind of turbulence is what what is there in Europe. Earlier in Europe I was more than 2324 percentage of business and I went down to 15% of business over there in fiscal 24.
So those things. But in spite of all this plus minuses we were able to maintain this momentum though it is not growth but we are trying best for you know getting this.
Sonal Gupta
Got it. And just lastly what is the capex for this year?
Hiren Dilipbhai Doshi
This year in totality for fiscal 26. If I’ll tell you it would be in the range of 30 to 35 crores.
Sonal Gupta
Thanks for taking me.
Hiren Dilipbhai Doshi
Yeah.
operator
Yeah. So just a reminder if you want to ask the question please use the raise hand function. Our next question is from the line of Vishal Chandi Ramani. You have been allowed to talk. Please go ahead.
Unidentified Participant
Yeah, thanks. Good afternoon. Thank you for taking my question. So I had two questions mainly. One is that you know initially we had guided we were looking at 15% top line growth for FY26. Now given how the first quarter has evolved and how there are geopolitical challenges and the macro challenges we would have to grow at a significant rate of I think 23% for the remaining nine months to end the year at 15 growth. So do you think that that is realistic given the market scenario? And the second question is I believe our end market applications are mainly towards auto.
Right. So how is it that the auto components segment is showing growth whereas the bearing rings is struggling even though they as far as I understand it mainly goes into the auto end markets. Yeah, those are my two questions.
Hiren Dilipbhai Doshi
Taking to your first question that is overall estimates or the top line of the current fiscal. See if we if you ask me this same question before a month back or maybe in last quarter we we were mentioning that it would be in the range of 14 to 16% of top line growth in this current fiscal. But the way this tariff has you know came out it will impact to some extent on my existing business if the things would have stabled not it has been the way it has projected. If it has been settled down bit lesser then I think we’ll be able to manage our top line.
But if not then my top line may be having marginal impact and we would be what you say, early teen growth kind of thing in this fiscal 26. But this is the only factor what we it. It is, you know, questionable as of now. If it is not there, definitely we would be having these the numbers what we have already projected and the new business of somewhere about 170 crore something what we have projected those is in the pipeline or other those will be executed. But because of this thing couple of months the industries are struggling.
Industries are thinking as Mr. Mehin was mentioning that couple of customers from the US for the bearing ring business they have hold these things for last two months from the month of April onwards just to see this tariff irregularity because it is definitely going to impact on their overall strategy. But if this thing settled down positively we do not foresee any kind of problem as far as to getting these numbers. But if not then marginally we would be on the lower side compared to our overall expectation of 15 16% growth. And the second portion, second question what you have asked is as far as the auto business and this thing auto market definitely my major end usage or rather the components what we are producing whether it is bearing ring or auto component that goes to auto but here in auto we have versatile, you know the range of the products only the challenge is what we are facing as of now in the bearing ring mainly from the infrastructure, industrial applications and those kind of bigger rings.
As far as the bearing rings which are used in passenger cars, LCVs we do not have much of the issue over there and even the EV hybrid we are able to produce it. So we don’t foresee and as we are in a dialogue with a couple of U S customer one is from Mexico, another one is from Canada. Canada also that they are into requirement of bearing rings which at least 50% we are expecting. Then also my bearing ring business will get some substantiation.
Unidentified Participant
Great, thank you. So last question is if you can just tell me of that 175cr new orders how much of that is coming from the US which is kind of on hold or stall because of the tariff uncertainty.
Hiren Dilipbhai Doshi
Almost 2525 to 30% is from the US side and remaining from Europe and domestic only you can say 3530 numbers of that is from us. Definitely that entire 30 will not go away but we may have some impact and again we need to wait till the end of this month.
Unidentified Participant
Great, thank you.
Unidentified Participant
So much. All the best.
Hiren Dilipbhai Doshi
Yeah, thank you.
operator
Yeah, thank you Vishad.
Hiren Dilipbhai Doshi
So.
Unidentified Participant
So two questions from my side. One is the follow up on the CDR issue. So basically when do we expect that to be closed now since you know there’s been a lot of to and fro in that. So one is on that.
Hiren Dilipbhai Doshi
See for last couple of months we are you know, rigorously or taking follow up to the MEM Lead Bank, Union bank of India and as I was mentioning we got some legal backup also in the month of you know, end of. Yeah. May 25th and which we have submitted or rather the legal expert has submitted to the bank and it is on the table of you know, directorate at Lead bank wherein we are just trying to check these things with the regional offices and this and every time they are telling oh it is in under process and maybe in this week, that week we are going to get.
But maybe by end of this month definitely we would be having some kind of indication, some kind of next step what they are looking for. If it is not then, then we are going to rush to them or to meet the higher ups of the Union bank of India and we intend to close it even before end of the second quarter. Sure, sure.
Unidentified Participant
Sir.
Hiren Dilipbhai Doshi
Sir, and in terms of we have. Mentioned in the PPT about improvement into euro business. So like is it more of onto the bearing side part or we are also there into auto components where we are seeing some improvement on in the euro.
Hiren Dilipbhai Doshi
No, that is major portion is for the photo components. In the Europe side bearing ring marginally it would be but in the bearing ring we have a few customers from the us, Canada, Mexico. In Europe majorities it is auto driven.
Sonal Gupta
And sir, so basically you know previously we had also mentioned that you know there are few customers bearing customers are putting up a facility in Poland where you know we would get some traction.
Hiren Dilipbhai Doshi
So are we on that? Yes, it is already started in and the numbers are there in the first quarter and it will be gradually ramp up in this coming quarters. It has already started.
Sonal Gupta
Yeah. All right. All right. Okay.
operator
So that’s all from my side. Next question is from Jason. Jason, you have been unmuted. You can go ahead.
Unidentified Participant
Yeah, thanks sir. So just one question first is that I just wanted to understand sir. I mean you know when you go back when we started out bearing rings domestically was a strong story. You know now we have seen some weakness there as well in terms of domestic economy. So sir, just wanted to know how you are seeing client feedback, you know from the likes of the big three and you know Going on ahead in for medium term. How do you see that commentary on the ground?
Hiren Dilipbhai Doshi
See we are, we do not have any kind of negative indication, negative comment from our top bearing customers in domestic market. As you know that rather all three of them or rather majority of them have initiated certain capex and they are increasing their capacity. But only the question in their mind is also that how the export would be affected for the US because they all are also, you know export to Barings rather to US and other markets. But they are looking for a strong demand as far as domestic business is concerned and they are expecting not to have much of the negative impact because of this tariff.
And maybe the pace of growth might have gone rather might be slow but definitely it would be on a positive way.
Unidentified Participant
And sir, just another question. In auto components, you know we have customers like Alison, GM Magna. So you know, just wanted to know if, just if you could provide some color on what is our USP in terms of delivering like products like the, you know, shafts, spindles for these customers. So that is one part and the second part is just wanted to understand of course that is a export driven business. So what measures are we taking to increase our share domestically in that business.
Hiren Dilipbhai Doshi
See the first part as you said, what are the USPS or why this such big global giants are there with us. The reasons behind that. You know it is definitely the facility, the equipment, what we have installed under one roof and it’s a, you know, a big versatile range of the product, what we are able to produce and the different kind of UTO components, what we are producing for last seven to eight years where we have bit of expertise and my equipments are able to give me a hundred percent okay or a zero defect kind of production.
Another USP is that good supply chain and I’m able to manage the quantum requirement of my customer whether it is a big batch, whether it is a small batch. So we have those kind of facilities set up over here. Apart from that we have a consistent, you know, good association with all these players for last couple of decades and wherein generally these customers do not change once the things are being stabled or rather the things are going properly. Only the worry or rather the concern for my customers if they are getting something, you know, at a marginal reduced price, they will definitely not going to approach anyone else.
Because the facility, the supply chain, the quality, the management interactions, the association of the business that matters and we are able to offer products to them at a, you know, best yield. If we say which is a quite competitive in, in Their part if because of my equipments, because of my USP of tool development tool design, we are able to produce the component with the list of the, you know, input raw material required.
Unidentified Participant
Okay, sure. And yeah, similar strategies are for domestic market also. Same thing.
Hiren Dilipbhai Doshi
Yeah, same.
Unidentified Participant
Same thing.
Hiren Dilipbhai Doshi
Yeah. Our products are, you know, using for a premium segment and this thing apart from the traditional bearing rings, you know, whatever the new bearings or a critical operating bearings, what we are producing there also we have same kind of strategy and we are able to maintain the, you know, the most preferred requirement of our customer that is quality and supply chain.
Unidentified Participant
Okay, okay, sure, sir. And s. Just lastly one question. How are we seeing EV momentum on the ground, Sir? I mean the transition, hybrid, ev, how is it on the ground?
Hiren Dilipbhai Doshi
We do not see for last three four quarters. We do not see much of the traction as far as this transition is concerned. And you better know, you know the industry numbers and you are getting, you must have gone through the SIM numbers the way it has, you know, the. And even my overseas customer, they are developing new kind of transmission for the hybrid vehicles or for the routine ic IC vehicles. So we do not expect much of the, you know, traction in the E market.
Unidentified Participant
Okay, sure. That’s all from my. Thank you for answering my question.
operator
So since there are no further question, I’ll now hand over to HIREN for closing remarks.
Hiren Dilipbhai Doshi
Thank you. Thank you very much for all the participants. We hope that we have tried our best to, you know, address your concerns and your queries. Thank you very much for your time. Yeah, thanks. Yeah, yeah.