Sandhar Technologies Limited (NSE: SANDHAR) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Chirag Jain — Moderator
Jayant Davar — Chairman, Managing Director & Chief Executive Officer
Yashpal Jain — Chief Financial Officer & Company Secretary
Analysts:
Unidentified Participant
Saket Kapoor — Analyst
Preet — Analyst
Radha — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Sundar Technologies Limited Q1 FY26 earnings conference call hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Chirag Jain from MK Global Financial Services Limited. Thank you. And over to you, sir.
Chirag Jain — Moderator
Thank you, Anushka. Good morning everyone. On behalf of MK Global Financial Services, I would like to welcome you all to the 1Q FY26 earnings conference call of Sandar Technologies Limited. Today we have with us from the management team Mr. Jayant Dawar, Chairman, Managing Director and CEO. Mr. Neil J. Dawar, Director. Mr. Gurvinder Jit Singh, Host Director and Head of corporate strategy. And Mr. Yashpal Jain, Chief Financial Officer and Company Secretary. We’ll begin the call with opening comments from the management team followed by the Q and A session. Over to you, Mr. Dawar. Good morning everyone.
Jayant Davar — Chairman, Managing Director & Chief Executive Officer
Thank you Anushka. And thank you Chirag for putting this together. Let me begin by first of all saying hello once again to this Trump affected world. But I think where India is concerned, I do believe that we will probably gain in the end than lose in today’s call. I’m sure that all of you have received the presentation, the investor presentation. You have a copy of it. But let me focus on just three or four things to begin with. Can everybody hear? I hear some kind of a hiss. Can everybody hear me?
Chirag Jain — Moderator
Yeah, it’s audible, sir.
operator
Yes, sir.
Jayant Davar — Chairman, Managing Director & Chief Executive Officer
Okay, let me begin by a few of the comments or a few points to make. First of all, on Sandar’s growth, we are happy to share again that we have achieved a growth of 21% growth over the quarter one of financial 2025. In fact in the India business that the growth is 22% at a consolidated level. And we expect to continue the growth momentum over the last year’s numbers. Depending of course on the geopolitical situation, uncertainty with tariffs. Not that we get affected by the tariffs but in the overall sentiment growth in the auto and OHV sector and of course other related events that could come.
Our consolidated EBITDA stood at 9.18 in the current quarter versus 9.85 in quarter one of 2025. These are exceptional reasons. There is a reason of the Foreign currency translation loss which is notional, which is 4.5 crores. There is the commodity price impact in this quarter which will be covered up of course in the next one, but that’s close to 3 crores. We have a one time old lag of power change cost in Mexico. That’s one time that’s again cost us about 2 crores or so. There were two of our customers who because of their supply issues, not demand supply issues, lost us a business of about almost 20 crores.
And then there is the changeover that is happening in the construction sector from BS4 to BS5 and that also put a stint on the sales for this particular quarter. So it is a part of the presentation, but I thought it fit to give my comment on it and I’ll be open for comments there as well. In terms of joint ventures, the company has reviewed its strategy to continue in the JV business format. We are consolidating our business activities and focusing on core business. But I’m very happy to announce that besides the two, one is Jinyang Sandar Mechatronics and Quangsan Sandar Technology where we sold off our stake in these companies.
The balance JVs that we have are all profitable. Currently the company has an investment of 62.72 crores in the 5 JVs and I’m happy to announce all of them are positive. Both EBITDA and PAT in terms of our overseas subsidiary, you’re aware that the European and other global markets have a severe degrowth marked by unstable geopolitical conditions and now being exaggerated by the US tariff uncertainty. There’s been a slowdown in Europe, there is decrease in consumption there and most of the countries there are facing de growth costs there are increasing. These have also affected us our overseas operations and we’ve registered a loss of 1.06 million.
This is including the foreign exchange translation loss of 0.46 million. So half of it is on account of foreign exchange translation loss in quarter one compared to a profit of 0.04 million in Q1 of 2025. Well, you’d be happy to know the company has taken many steps now to reduce costs, increase operational efficiency and expand the customer and product base. We are very, very hopeful that 2526 would be crucial to turn around our overseas operations and bring them into profitability. The last aspect I want to speak about is our EV foray. The company has started commercial production of battery chargers, motor controller and DC DC converters and is getting very positive response in the market.
The customer base Is gradually increasing with more customers. And we generated a revenue of a little less than 2 crores in the first quarter to begin with. With that I open the house for questions. We have with us today Neil and GJ who are joining me as directors. And we have Mr. Yashpal Jain who’s the CFO who will take on any questions regarding to any numbers or so on and so forth with that. Thank you very much once again we are open for questions now. 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 touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Aditya Konwar from complete circle. Please proceed.
Unidentified Participant
Hi, good morning. Thank you from the team. So first question was on the 500 crore QIP. Any color on how the proceeds will be used. And second my question on debt. I know of course last. Last phone call also Mr. Yashpal said the. The debt may peak a bit but. Then still just wanted an update on the same. Thank you. Yeah. Yes.
Yashpal Jain
Yes sir. So morning to your first question regarding the qip. So we are. We have put up a proposal to borrow up to. Sorry to raise up to rupees 500 crores. And largely we are focusing on some more acquisitions which may come up during the year. As you know the validity of this approval from the shareholders is for a year. So we thought to put it before the board to subsequently take it over to the shareholders. And the large part will be used or I would say the major portion will be used for the further future acquisitions as well as some acquisitions as you remember in the month of March we have done and we are expanding those lines also to increase the capacities.
So this is regarding the QIP coming to the debt portion. We had a gross debt of 862 crores as of June and a net debt of 825 crores. And I think as I spoken in the earlier calls also last year, I mean for while doing Update on the Q4FY 2425. The debt pressure might continue during this year because of the past acquisitions that we have done in the month of March and some of the new projects that are coming up. But as we tend to keep the debt levels of debt within the present limits. Actually we don’t Want that it crosses 900 crores at any point of time. So we’ll try to rationalize it between 850 to 900 crores at the maximum side.
Unidentified Participant
Thank you sir. All the best.
Yashpal Jain
Thank you.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question you may press star and one on your touchstone telephone. We take the next question from the line of Sourabh Jain from Sunidhi. Please proceed.
Unidentified Participant
Hello. Yeah, thanks for the opportunity sir. I have few questions. To begin with what was the revenue and EBITDA contribution from the acquired business of Syndram during the quarter?
Yashpal Jain
So the revenue was some above 100 crores. You can say it’s around 103 crores for the quarter one and as far as the beta is concerned it was a beta business but at the CBT level we have sustained losses. As I mentioned in the earlier calls the cost has been higher. The beta has been at a level of 4 crore rupees. It was around 4% because the operational costs we started operations from 1st April 2025 and as as I mentioned in earlier calls also be a little bit tough here because we are operating from a shared premises from the sellers premises itself which is a common complex for other companies also.
So might be this year it can, it would be at a break even level by we close the year end. But yes, from next year onwards it will be back to the normal margins that we expect from a diecasting business.
Unidentified Participant
So break even at EBITDA level.
Yashpal Jain
No, a bitter level will try to sustain around six, six and a half percent by the year end. EBT level can be a flat. EBT can be a flat level. Yeah okay. But this was the first quarter April we started the operation so the quarter was little bit challenging also in terms of organizing the activities, organizing the operations so the costs were higher.
Unidentified Participant
Okay, my second question is what was the contribution from Smart Locks in this quarter which we were expecting to, you know the revenue recogn to begin in this quarter. So how do you see that moving in the coming quarters?
Yashpal Jain
So like for a smart log it is just the beginning. As you saw some pilot projects, pilot lots has been submitted to the customers. So you need to wait for year end at least this year and when the volume shoots up because it’s directly dependent on the sales of the OESA from our side we are ready to supply any quantity that they require. But as of now for this first quarter the volumes are quite. I would say just. I would say A test sample types, very minuscule type of volumes are there for smart locks. And I think by the year end the penetration should see depending on how the country performs, how the consumer demand picks up and the preference of the consumers with respect to the models which are carrying the smart locks.
Jayant Davar
Just to add to that, let me put it into perspective. We are looking at the first year expected volumes of smart locks are about between 60 to 70,000 numbers.
Unidentified Participant
That’s helpful sir.
Jayant Davar
Yeah. 60 to 70,000 numbers for customer one and about half of that for customer two.
Unidentified Participant
Okay. And that’s for this fiscal FY26.
Jayant Davar
That’s right, that’s right. And basically the offtake, while like Mr. Yashpalji said, the pilot lots have all been validated and are fitted onto vehicles. The ascents will start from quarter two. But the overall impact of this would largely come in the second part of the year. And of course it will go on to a regular platform from year two, which is the next financial year.
Unidentified Participant
Great, sir. Coming to cabins and fabrications which recorded a moderate deep growth. So was that due to the new norms with respect to air conditioned cabins? Do you see this segment to see a rebound?
Yashpal Jain
No, this has nothing to do with air conditioned cabins. This has to do with the engine norms of BS4 to BS5.
Unidentified Participant
Okay, okay.
Yashpal Jain
Engine change, price difference. So the customers had built and supplied in the market with the BS4 vehicles. BS5 changeover is happening now. So when that happens there the entire ecosystem kind of changes and therefore we expect that from the. I would expect from the next month onwards probably sales would get back into normal levels.
Unidentified Participant
Okay, so the pent up demand of last two quarters should eventually make up for the rest of the year, right?
Jayant Davar
That’s difficult for me to say. That’s difficult for me to say what the new demand is going to be because the newer vehicles will also cost a little more. So the market needs time to get used to new prices. Therefore, you know, the construction equipment manufacturers had pushed larger numbers to get rid of their Euro 4 or BS4 vehicles. The new demand is being built but in the meantime there is a lag that happened in quarter one and will probably continue till next month onwards. So you will get, let me say, a regular demand from the half of the second quarter.
Unidentified Participant
Great. Sir, my last question is on if we see the category wise split. So four wheelers, OHVs and CVs all have seen a lower contribution both on QOQ and YOY basis. So of course that may be due to good growth in two wheelers. But at the Same time, if we’re seeing these revenues from four wheeler, OHVs and CVs in absolute terms also there has been hardly any growth. So how do you see this split shaping up for the full year? And FY27, if you can comment.
Jayant Davar
I had, I had started today’s call. We’re telling you that two of our customers had, had suffered their production on account of supply issues.
Unidentified Participant
Yeah.
Jayant Davar
For example, I can even name to some extent, let’s say the business of hero. They had supply issues so they literally manufactured a little over half of what they normally do in the months of April and May. They of course are ramping up now and they don’t want to change the business plan for the year. So I’m sure they will recover. But in the meantime, that suffering that happened in the first quarter affected all of us.
Unidentified Participant
Okay. And one small question which I can squeeze in. We were expecting like half a percentage kind of EBITDA margin expansion in this fiscal. So we, in the first quarter we have of course a few one offs which you explained. So do. Are we on track to have that half a percentage of EBITDA margin expansion.
Jayant Davar
At this point of time? We see no reason to change our projection. Yashpal, do you want to add something to it?
Yashpal Jain
Yes, sir. Adding to that, we are very much on the targets of improving the margins by half a percent. First quarter has been exceptional with few of the exceptional items that we have mentioned in the investor presentation also. So quarter starting quarter 2 to quarter 4, the recovery would be coming up especially in the acquired businesses also as well as the overseas businesses also.
Unidentified Participant
Great, thanks. That’s all from my side, sir. Wish you all the best.
Jayant Davar
Thank you.
operator
Thank you. Before we proceed with the next question, I would like to again remind participants, in order to ask a question, please press star and one on your touchstone telephone. We take the next question from the line of Saket Kapoor from Kapoor and company. Please proceed.
Saket Kapoor
Am I audible? Sir, if we summarize the first quarter’s operational performance and we take the one off out from the sale from the, from the profitability part, which has been tough quarter. So in terms of profitability also. So if you could just give some some sense, although there is an increase in revenue, but when we, but when we removed the other income component, the profitability has taken a hit. Is that understanding correct, sir?
Jayant Davar
No, no, no.
Yashpal Jain
Yes, it’s not.
Jayant Davar
So, so I, I. Let me just answer this in my form and then of course Yashwalji will explain this better. You have to understand that 10% of the revenue which came from the new acquisition had a negative content to it in terms of bottom line both at EBITDA and PAT levels. Right. We suffered losses and the EBITDA margin like he said was only 4 crores which is about 3% compared to the other numbers which pull the entire thing down. If you have the analysis of reasons and normalized margins, I think that’s a part of the investment presentation that we have given. If we look from that perspective then our EBIT margin, if you were to take those one offs comes to a level of 5.64% at EBT level. So it is higher. Normalized EBIT on our understanding here was in the level of 78 crores compared to what we have.
So there is a huge difference in this entire ball game. Yash Balj, you can explain more on this?
Yashpal Jain
Yeah, sure sir. So basically if we compare the operations wise after eliminating these one time or I would say the exceptional items, there is not a fall in the profits because we review on a unit to unit basis. Exceptionally there are only four or five units which are in the maturity level especially the newly we acquired business from them creator and three other units which we have commissioned in the last year and they are yet to achieve the volume. So taking these together plus the overseas operations, these have contributed negatively. Rest all the other businesses are doing performing well and in cabins and fabrication.
Yes, 50% of the margins we got ahead this year compared to the corresponding quarter one because of the lower volumes as in the I would say previous I will question answers as a service told that the migration from BS4 to BS5 has taken a turn. The volumes are lower from the customer side. Rest all other operations, all the units are working perfectly well. And as per our projected plan sir.
Saket Kapoor
In the PNL on a consolidated basis we find this other expenses line item to be not in proportionate to what it has been earlier. So what does this other expense line item of 176crores one of includes that.
Yashpal Jain
For this quarter, sir. So like these also include the foreign translation losses. Also one thing secondly as we told. Hello. Yeah, please continue. And secondly as we told like we acquired Sundam Clearton’s business, the first quarter has been challenged. So there has been some initial costs also which we have charged to the PNL account and three of our plants which were commissioned last year. Their expenses of testing, development, all those stuff are coming up which cannot be classified because this other expense is a very residual category is comprised of nearly more than 50 to 60 GL accounts.
So that’s the reason these are the initial costs. The initial. You can say development cost, initial setup cost which has been charged off. And also it includes the foreign exchange fluctuation also within it. That is the reason the translation fluctuation.
Saket Kapoor
As you answer to another earlier participant that the translation loss is only to the tune of 2.5 curves. Was this the number which you mentioned earlier Translation is.
Yashpal Jain
Translation is 4 and a half crores. If you see your analysis in the normalize also the translation is 4 and a half crores for the overseas business. And you need to understand how it happens. Like in Romania we operate in Ron. Mexico we operate in usds and Barcelona we operate in Europe. So Barcelona is a holding company for overseas operations. So first consolidation is done vs Ron vs Euro, USD vs Euro. Then posted the function reporting currency of the parent companies inr. Then the entire Euro is again reconverted to inr. So if you see the currency fluctuation between March and June, Euro is appreciated by 9%, 9 and a half percent compared to INR.
And the same is the case with USD versus Euro. So 4 and a half crores we have taken in terms of Indian rupees which has been accounted for. But when you take the translation from Romania to Barcelona and USD to Euro for the Mexican operation, that is a separate one. And when we consolidate the entire expenses comes to a final land. So that’s how. But there is not been any abnormal cost in the other expenses being a residual category. That is the reason it’s going up.
Jayant Davar
Okay, so just to conclude on this point. So what should we expect on a. If we remove the one off item for this quarter that. That should be the render. I think. So if we compare it on a Q. On Q basis it is around 28, 29 crore. So barring this currency fluctuation which we. Which we do not know how the currency will behave,
Saket Kapoor
the balance 20, 24 crore is what I. I assume is the one off item. And that should not be. That should not. That should be in a non recurring manner. That should. That should hold. Yeah.
Yashpal Jain
So Mr. Kapoor, I would request if you just go through this analysis of reasons. So if we go through it, you will see total exception one time is 16 crores. Right. Then in the new projects which are yet to achieve is 10 and a half crores. 10.65 crore. That makes an impact of 27 crores. So as our chairman also explained to the earlier participant that foreign currency translation loss, the four and a half crores that we have shown, that is from the conversion from overseas To India it all depends on currency size. If 100 rupees euro goes down to 90 this is a reverse situation in the next quarter bearing the commodity price impact and the one time power cost in Mexico.
So the commodity price cost is depend because what happens is the customer reimburses us on basis of average price of the earlier quarter and during the quarter the buying price might be higher than the average price because the buying price of the current quarter. So it’s a lag of 1/4 which continues. But in case a commodity prices comes down it will be a negative I would say a positive impact in the coming quarter. Power cost is a one time non recurring 10.65 crores. It includes the Sundaram projects and other new projects which is an exception I would say because second quarter we are expecting the volume should come up and quarter one is always traditionally a lower volume quarter in terms of the auto industry.
So majority of them are the exceptional one bearing them. If you eliminate 27 crore we are back to the normalized EBITDA margins and I think they should continuously improve.
Jayant Davar
Also one small point as to what it would have been. Your question as to what it would have been. I think it’s written in the charge a normalized profit would have at EBT level would have been 61.43 crores. Yeah, compared to what we have. Yes, compared. Compared to the number that you have.
Saket Kapoor
Okay sir. And on the aluminum casting business, the consolidation part, if you could explain the rationale and the benefits that that flows into. And I have one suggestion sir, what what we find as investors and analysts is that our presentations are uploaded at around midnight, at around 11:40, 11:45 and then the call is held very early in the morning at 10am so if these two can be adjusted sir, that will provide us more opportunity. And no repetitive questions which are present in the presentation will not be. Will not occur.
Jayant Davar
No, you have a good suggestion. What we will do is next time we’ll probably give 24 hours before we have this meeting because you know the meeting was held yesterday. By the time we send our documents to SEBI and then prepare this, it obviously takes time but next time onwards we will make sure that we give a one day gap before we have this conversation. On what was your question sir?
Saket Kapoor
On the aluminum casting business consolidation. If you could just explain the rationale and what the benefit we will explore.
Jayant Davar
Yes, so what we have, what we are doing sir, in the entire case scenario we are consolidating businesses and so aluminum which is now becoming a Big entity sheet metal, which is becoming a big entity. Our automotive proprietary business, which is becoming a big category. And the fourth portion is the construction equipment. These are four being rationalized into large businesses. As such, these grew out of supplementary growth areas. So when we made lox, we started making zinc. Then we started making aluminum parts and so on and so forth. But as we grew, we felt that there was an outside demand.
And to meet that demand, when we started to grow these businesses, each one of them is now at considerable levels and are poised to grow much faster than some of the other businesses. So aluminum business, as you would see, I don’t know what guidance we’ve given so far, but our internal business plan is literally to double from where we were last year. Similarly, sheet metal business, with the addition of three supplementary plants that have been put, is also growing at a level which is very, very aggressive. So we are developing these four verticals to grow much faster.
And each vertical is being given the autonomy to become like an independent company. That, sir, is the case scenario where we will be able to use volume, scale and growth and core competence of each business in a much better fashion than when we do it together as hybrid.
Yashpal Jain
Yes, sure, sir.
Yashpal Jain
So, Mr. Kapoor, as you remember, three years back, we were operating predominantly into locks and mirrors or parent business, the propriety business. And gradually then we started leveraging to the market in terms of the new products, die casting, sheet metal. We did a capex investments also in these projects. Now the purpose of hiring of these business to the separate entities to create large size companies to take on the competitors and the market effectively. Because earlier we are working in the hybrid company. The parent company used to contain four different verticals. So now we are focusing on a specialized companies with the dedicated teams looking and concerning and focusing on their specific areas.
So file Sundar Escast will be dedicated to die casting business for aluminum and zinc and they can effectively take on and capture the market. The same is the aim behind hiring of the sheet metal business to Sandar Engineering so that they can effectively create a large fabrication company more focused on that. And while the parent company will continue to develop and market the technologically driven products. So this is how the strategy is and we want to create value for all shareholders in terms of creating these three to four entities who are very sizable in size and they can take on the market share very effectively and can create a, I would say a long standing effect in the market in terms of the products that we are operating.
Saket Kapoor
Okay, so if I may just squeeze in one more on the Capex and the new capacity addition for the year on in the different vertical. What is the capex that we have outlined for the current year? How much have we spent for the first quarter and the new capacity that will get commercialized during the year and its contribution to the total top line.
Yashpal Jain
So like in the first quarter we have spent 101 crores which includes the balance consideration of 50 crores that we have paid to Sundaram Cleartown. As you remember we bought it for 163 crores. 113 we discharged before March and 50 we have discharged on 13th of April. Right. Another 50 we have added to our existing which includes some portion to die casting also and some portion to the sheet metal business also. This year in terms of more expansion plans, we are tending to spend something around 200 crores more. This includes. So if you assume it would be 300 and minus the 50 crores of the upfront that we paid to Sundam gaiton.
So effectively 250 crores of growth and as well as maintenance Capex would be there. Okay.
Saket Kapoor
And the new capacity which will get commissioned or will contribute to the top line for this year, what are the.
Yashpal Jain
New new capacities would be ready by the year end. So effectively the contribution would be coming from the next year. Because normally die casting sheet metal whenever we start making the plants or expanding the capacities, six to seven months it takes to build up the capacities. Then the customer trials, verification, the development cost, sampling, all these comes up. So effectively the revenue additions will be coming from FY 26, 27.
Saket Kapoor
Okay. And any color you would give for this quarter how are traditionally Quarter two is for the company and the industry. Q1 is softer as you mentioned in your opening remarks. Yeah. So going forward how Q2 is a monsoon affected quarter. But since we are present globally in many countries. So how should we look at Q2 and. And what we are hearing from the from the news Daily is that the for the automobile has shrink month on month. So will that have any effect or should be having effect on our business profile or our business program? If you could just allude to the same.
Jayant Davar
I personally feel that the quarter two will be considerably better than quarter one. One reason one of contents will not be There are businesses that had been set up in the last few years are stabilizing. The new acquisition itself is stabilizing. So I personally feel that we will get a much better and a considerable improvement over quarter one.
Saket Kapoor
Right, sir, I’ll join the queue for follow up. But there is lack of awareness for investing community since the IPO valuations of the enterprise value have remained subdued. So I think with the variety of businesses and lines which we operate, more understanding for the investing community, I think so is the need of the ourselves. Otherwise the valuations are not aligned to what the other listed companies in the market are. So we should look into the aspects of what are the reasons why investors are not unable to figure out the value in baggage in our company.
And I think so sir, you are coming with the QIP offering. So a lot of work should be done before going for raising capital because that is a very conscious effect and that is perpetual capital coming in the company. So diluting the equity and then serving the equity is going to be a perpetual job. My thought process was there.
Jayant Davar
So absolutely I take your suggestion and I think we need to play our game or make sure that the effect and the constituents of what we want to do in the future is much more elaborated. It is in an elaborated form for the investor community. If you look at verticalization that I spoke about earlier, that in itself is a way forward in explaining how we want to branch out. And each one of these branches has its own value which is today embedded and has not been monetized in the way it should be. But we will sit with your community, sir.
We will understand your points better. We will try and make presentations in a format where people can understand us today and understand our vision for the future.
Saket Kapoor
Thank you for.
Yashpal Jain
Yeah. So basically Mr. Kapoor, as I just told and adding to what our sir has said, like we were operating in a hybrid model with the different product line, different margin profiles. So that’s the reason we are going to the segmentation now. And I think we are meeting all the leading investors also. And we welcome you also to join us. And nearly in a year around six to seven conferences we are attending and hosting also through our channel partners, research partners and coming period of time this year we plan to do the entire restructuring so that we have a very clear picture and the plans of each of these companies how they want to take on the market in coming period of next five years.
So I think that will be very helpful for the investors to take a wise decision. And soon you will be hearing that. I mean all these companies in die casting, sheet metal or a parent product they will be running into good successes and we are very positive on the same.
Saket Kapoor
Right. And we should look for IR also sir, going right appointing and absolutely investor relations firm is also the need of the hour because only for the team to handle these assets in such a big Market on a day to day.
Jayant Davar
I agree. I agree absolutely. In fact, you see, if you. If you look at our business, maybe it’s gone under the radar. But let’s say diecasting where a few years ago, maybe till about three or four years ago we were one of the hundred players and now we are in the top five similarly in sheet metal. So the jump has been dramatic and we’ve taken advantage of the opportunities that have been presented to us. But I think we have not been able to present our vision properly to the investor community. And you’re right, we will consider having an investment agency maybe.
Saket Kapoor
Yeah.
Jayant Davar
For investment relationship. And that will help us in broadening the overall scope and the reach to who we want to reach. Thank you.
Saket Kapoor
Thank you sir for all the elaborate answers. I missed your aluminum die casting business guidance. We will be doubling the revenue in an ES time or I think so. 3% was contribution from for the current year. So what should we look forward with this consolidation from the aluminum casting business going for the next year?
Jayant Davar
Yes, Baji, can we give them some reference on the business plan basis of what numbers it is for this year including the new acquisition?
Unidentified Speaker
Actually we will be ready with them by the end of second quarter. We are waiting with more customization. So in the second quarter the call we will be able to throw more light on the same.
Saket Kapoor
Okay, thanks. Thank you sir.
operator
Thank you. We take the next question from the line of Preet from Increase Asset Management. Please proceed.
Preet
Thank you sir. Thank you for the opportunity. My first question will be in the line of revenue guidance which you give in the quarter four of around 14 to 15. But. And I can see that in. Quarter when there was 8, 7, 8% of growth platform. So are you still maintaining this target and if yes, then from which segment you see the growth would be driving.
Jayant Davar
This is regarding overseas operations, right? Hello.
Preet
Hello. Am I audible, sir?
Jayant Davar
Yeah. Can you just repeat the question again?
Preet
I was saying that the revenue guidance which you gave in the quarter four was 14 to 15%. And in the quarter one the revenue. Growth X of Sundaram Gladon is 7.8%. So do you still maintain this guidance? And if yes, then from which segment are you will you be getting this growth?
Jayant Davar
Now? Let me. Let me just bring. Bring it up and then I’ll leave it for Yashpaji to quote this forward. I did mention to you that there were two customers who had supply issues and therefore they cut their manufacturing or their production outputs to a little over half. And why they do have plans to cover that up. So In a normalized way it would have been higher and we do expect expect to cover up a large part of what we lost in the subsequent quarters of this year. Yash Balzi yes sir.
Yashpal Jain
So we maintain our the sales target that we have released in the earlier call. Sir, the quarter one has been exception due to the customer side. But you’re starting quarter two. I think we should be able to achieve the targets that we have set up.
Preet
Okay. Hello. Thank you sir.
Jayant Davar
Yeah, thank you.
Preet
And next question would be in the line of Marcin you have guided for 50 basis point margin improvement. So I just wanted to ask will it be X syndrome platon business or you are talking about reported basis. Like in FY25 we have done margin of around 10%. So 10.5% would be from Excel or it will be overall business.
Yashpal Jain
So like Sundaram, as I said to the earlier participants would be not to our expectation that we expect the EBITDA in the current year. But still we have kept a target to improve by half a percent. So which means anything starting up to half a percent, we will try to improve it. Including Sundam Cluton. When we say half a percent it means the entire consolidated financials. We’ll try to improve up to half a percent starting from 10 this to 50bps basis. Any improvement would be there. Yes, the profits or I would say the margins from Sundam Clayton would not be up to that level in the current financial year.
But there are other businesses who are doing good. So they should offset this the gap in the Sundance Clayton margins. But I think up to half percent anything between 10 base to 50 BS we should see an improvement in the current financial year.
Preet
Okay, thank you sir. My last question will be in the line of your long term plan. Like now you have been doing 500. Crores of UIP and you are still. Planning to do in organic acquisition. I just wanted to understand what is your aspire segment mix say five years down the line, what kind of segment mix are you targeting to achieve Segment are your main focus areas.
Jayant Davar
So I will answer your question differently now Our focus area would be those segments which could yield us higher margins, profitability and stability in the market. And a good ROC to our esteemed investors. So that is still open. We are evaluating all the segments within the industry and we will choose the best one to utilize these proceeds as and when we go to the shareholders to or the investors who raise this money.
Preet
Got it. And if you can give the pecking order for the EBITDA margin in our in our Segments means what are the top EBITDA margin segments?
Yashpal Jain
So automotive business Locks and mirrors is the oldest and the highest margin driven business in terms of EBITDA as well as EBT followed by, followed by die casting and I think by the year end sheet metal will also come into the same lens. Because most of the projects they have achieved achieve the maturity level and they have shown a very good turnaround this year with a more than 50% improvement in their EBITDA margins compared to the quarter corresponding quarter of the last year.
Preet
Okay, got it. Thank you sir. And just one question. If you can mention segment wise capacity utilization of all the signals.
Yashpal Jain
So capacity wise if you really ask me, like sheet metal we are earlier operating around 60 to 65%. Now it has gone up to above 70%, 70 to 70% and similarly in others also we are operating like around 60 to 70%. And as far as because we operate in different segments, the product natures are different, the lines in case of the assembly business is different. So specifically if you ask me how many machines are running at what capacity? So it’s a. I would say compared average figure. But yes, we have capacities to achieve the sales target that we have said, the revenue target that we have set for another three years of time, that much of capacities we have built up.
And further we will be going for some inorganic route also as chairman sir said so that we will be evaluating. Thank you sir.
Preet
I’ll turn back in the queue.
Jayant Davar
Thank you.
operator
Thank you. The next question is from the line of Ashish Soni from family office. Please proceed.
Unidentified Participant
Regarding this acquisition which you are planning with QIP money. So any particular business line you are looking to diversify and what’s your typical parameters in terms of acquisition? In terms of ROC or margin accretive, what’s your typical guidelines? So can you throw some light on that?
Jayant Davar
So like this fundraising 500 crores first this is the first step towards going for any inorganic or a big investment. So we have sought the board concern. Now we’ll go to shareholders approval. And once we get this approval at the parallel we will be working on couple of opportunities in organic space. But think is that if those comes with a good valuations and as well as the good future prospects in terms of return on the investment of acquisition price that we are paying then we will be considering this QIP approval will be valid for a period of one year from the date of shareholders approval in the upcoming AGM which is planned on 19th of September.
So between this period of time we’ll try to but we will not be in any rush or hurry to acquire any of the businesses just to invest the money. We’ll be prudently evaluating it. And if it suits the valuation price as well as the future prospects in terms of returns and earnings, then only we’ll also to go. Otherwise we’ll see how to move it. Because it’s not compulsion on our part to just raise the money. We’ll evaluate it very prudently. That’s what I need to say.
Unidentified Participant
But what’s your typical criteria like when you acquire a company now? Like in terms of ROC or return on investment, what are your typical parameters? I’m trying to understand that. And if you are saying acquisition will be in the similar business line, you are already there. It’s something new. I’m trying to understand that bit.
Jayant Davar
So we are operating through auto industry. Auto industry very wide. So within auto industries even we can switch on the products also. As I said, if the opening is good in terms of ROC. Yes, we are looking at ROC which is above 18% post tax. That’s our target to acquire the businesses. It might not be possible that within the same year we acquire any business and generate 18% ROC. When I say 18% from perspective of two to three years from the acquisition. And I think this is the best return which an auto component company can give to its shareholders or the investors.
Above 18% post tax. It’s. I don’t think it’s possible for any company to give from the core manufacturing activity.
Unidentified Participant
Last question. In terms of Trump tariff, how much of your or your customers business are getting affected across the world?
Yashpal Jain
So if you see a revenue mix, more than 89% is coming from Indian operations which are not supplying directly to any us so it is unaffected. As far as the overseas business is concerned. Mexico plant is supplying to us but tariffs are not us. Not on us, but it’s on the customer. They are bearing it so directly. We are not affected. But yes, the volumes have been down in entire Europe and US markets. That loss of business, or I would say slowdown in the business is affecting REST directly. We are not affected because of this.
Unidentified Participant
Oh, thanks. And all the rest.
Jayant Davar
Thank you.
operator
Thank you. We take the next question from the line of Radha from BNK securities. Please proceed.
Radha
Hello. So thank you for the opportunity. Sir. A lot of changes have happened in the key managerial position in the company over the last two quarters. What are the internal targets that the company is looking to achieve with these changes?
Unidentified Speaker
You mean to say the manager reshuffling of portfolios.
Radha
Yes, sir. Like you have given a lot of new appointments, have, have been done the senior management position with regards to that.
Unidentified Speaker
Okay, so rather thing is that as we have mentioned that now we are in expanding and we are bifurcating the businesses into the subsidy company which are very product specific like die casting, sheet metal, the parent company into the automotive, I would say the technology driven product. So now the time has come up that we nominate appoint the persons who are directly responsible to take over those businesses in the market. So that is this exercise of nominating SMPs as well as increasing the number of KMP and reshuffling their portfolio is a part of that entire exercise.
We want to appoint the persons, make them responsible, make them, delegate them the powers and authority to go and tap the market, explore the markets and grow their businesses. And if one has to expand then these sort of leverages has to be given to the staff. So that’s the reason we are creating a structure whereby the separate companies identifiable, they have a separate set of management. The people are free to take decision up to a certain level as approved by the independent individual companies, boards in terms of financial autonomy, in terms of operational autonomy. And this entire reshuffling is the beginning of the SEMA I would say.
Jayant Davar
And rather you would have noticed that it’s not as if it’s. It’s internal reshuffling which basically means we are concentrating on the right attributes of the right people to run the right businesses. That’s what being done. Most of it is internal. There is not too much of external incoming into the company and we do believe that we have a strong team and the strong team now placed where they are in this new structure would be able to deliver the vision that the company has for the next few years.
Radha
Thanks sir. As a secondary, Mr. Neel Dawat is on the call this time so just wanted to understand a little bit from him with regards to his thoughts and visions regarding the company. Where does he want to see the company in the next three to five years?
Jayant Davar
Neil, you want to come in?
Unidentified Speaker
Can I answer? I think.
Jayant Davar
Hello Neil, can I. Is he in the call? I don’t know, maybe he has a bad connection. He was in the car.
Unidentified Speaker
I think the call is dropped down sir. So there’s some network issue. Okay, should I answer, sir? You are answering.
Jayant Davar
Yeah, yeah, yeah. Go ahead and answer please.
Yashpal Jain
So rather the question is that like you see we are working on successions also within the manager team and Mr. Neeljadavar is a part of the promoter family also and the purpose he is aligned with the same vision that we are having as an organization. And he would be driving along with Mr. Java to achieve the vision of the organization. So his vision remains to be the same vision that on the which we are working as a management rather.
Jayant Davar
To answer your question in simple forms and supplementing what Mr. Yashwal Jain has said, the vision is not my vision or his vision or somebody’s vision. It is the entire company’s vision. And everybody is working in tandem to make sure that the future as we explained to you in whatever form we could today is those targets both executively and in terms of delivery are better.
Radha
Thank you sir. The last question is till date how much have you invested in the EV products? So you mentioned that the customer feedback from the EV products has been good. So with regards to that, how much are you expecting in terms of revenue for the next two to three years from these Polaris?
Jayant Davar
So you are referring to the investments rather first the first part was the investment that we have done in ev.
Radha
Yes, investments and next two, three years revenue target.
Yashpal Jain
So investment as of date, including all the operational development costs, it is close to 21 crores that we have invested into the EV business. And largely if you see the entire money has gone in developing the product, paying some fees to the technological partners and marketing expenses. So in the coming period of time, depending on the EV offtake within the country, they have orders, they have customers, but largely it all depends on the volume. But we are positive. But yes, two to three years, you can’t assume that it can just cross hundred crores within a year would be a growth this year.
This quarter we have been just close to 2 crores of the revenue going with that. You can expect that the coming years would be good for ev. But as of now it’s very difficult to give any ballpark figure also for the ev. But product wise we are ready now. All variants of the product are ready and now we are ready to paint it then in the market. And we are reaching out to all customers, existing companies as well as the new age companies.
Radha
Thank you. All the best.
Jayant Davar
Thank you.
operator
Thank you. We take the last question from the line of Preet from Ingredient Asset Management. Please proceed.
Preet
Thank you for taking my question back. I would like to ask about the JV. Like I’ve seen that in last three years you have exited two or three JVs. So are you planning to stay with all five JVs? And what was the revenue and EBITDA margin for quarter one and what do you expect in full year? Thank you.
Yashpal Jain
Sure so I’ll answer first. I mean the second part of her question first. So this quarter, if you ask me, the revenue of all these 5Gs together, our share of revenue was 37 crores. The JVs. And they achieved a EBITDA margin of 10.72% and the PAT of 5.15%. So I think it’s very decent one compared to double digit margin beta and 5.15% in data. So as of now, all these JVS are performing very well. And as in the opening remarks, our chairman has said that we are evaluating the JVs, how they are performing, whether they are aligned with the motto and vision in the future and at the right time, we will take the right decision.
But as of now, yes, we are continuing with the five JBs. That’s the truth. Hello.
Preet
Yeah, thank you so much, sir. That was helpful.
operator
Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments. Over to you, sir.
Jayant Davar
Once again let me thank Chirag from MK and Anushka for organizing this call. I want to thank all the people and all the participants who were present today and gave us a patient hearing. I want to assure them that there were a lot of suggestions that have come from you and we would make sure that we listen to each one of them and see whichever ones are appropriate and make sense in the overall growth and vision of the company. We incorporate them accordingly. Thank you all once again and look forward to having a chat with you again in the next quarter.
Okay with that. Thank you all once again.
operator
Thank you. Thank you. Thank you on behalf of MK Global Financial Services limited That concludes this conference. Thank you for joining us. And you may now disconnect your lines.