Sharda Motor Industries Ltd (NSE: SHARDAMOTR) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Mihir Vora — Moderator
Aashim Relan — Chief Executive Officer
GD Takkar — Chief Financial Officer
Analysts:
Unidentified Participant
Karthi — Analyst
Manpreet Arora — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Sharda Motor Industries Limited Q1FY26 conference call hosted by Equiva Securities. 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 and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mihir Vora from Equiv Securities. Thank you. And over to you sir.
Mihir Vora — Moderator
Yeah. Thank you. Hi. Good afternoon everyone. On behalf of Equis Securities, I welcome you all to the Q1 FY26 post result conference call of Sharda Motors. From the management side, we have with us Mr. Ashin Zelan, CEO and Mr. J.D. thakar Group CFO. Without further ado, I will now hand over the call to management for opening remarks.
GD Takkar — Chief Financial Officer
Thank you very much Mehr. Thanks a lot. Good afternoon everyone. I extend a warm welcome to all the participants. On today’s call I am joined by our Group CEO Mr. Ashim Relan and Deputy Managing Director Mr. Ashwini Maheshwari. I trust you have had the opportunity to review our earnings results investor presentation which are available on the stock exchanges as well as on the company’s website. Before going into the financials, I would like to give you a brief overview of the Indian automotive industry’s performance in Q1 FY26. The sector continued to exhibit steady performance across various segments reflecting strong growth prospects.
In first quarter of this financial year, Indian automobile industry witnessed growth across most segments. Passenger vehicle production reaching 12.44 lakh units reflecting continued demand resilience in the segment. Light commercial vehicle Production stood at 158,000 units which is broadly in line with last year. Same quarter, two wheeler production inched up by close to 1% YoY totaling 59 lakh units indicating a stable demand environment in both urban and rural markets. And three wheeler segment maintained its upward trajectory with production rising by close to 10% YoY to 2.56 lakh units driven by increasing adoption for shared mobility and last mile transportation.
Tractor production stood out with a strong 12.7% YoY growth reaching 2.94 lakh units underpinned by favorable monsoon patterns and improved rural sentiment. Overall, the industry is expected to continue its growth in FY26 driven by stable macroeconomic conditions, government spending, normal monsoon, improved vehicle financing and sustained export momentum. That said, the sector remains alert to global economic and geopolitical uncertainties. Now I will shift focus to the operational and financial performance of the company on a consolidated basis. We reported revenues of Rupees 756.2 crores in first quarter with a YoY growth of 10%. Our gross profit for the quarter came in at 189.5 crores reflecting a growth of 5% over Q1FY25.
Gross profit is the better indicator of our growth performance and the company outperformed the industry in Q1 EBITDA1FY26 stood at rupees 98.4 crores, showing 3% growth compared to the one in the same quarter last year with an EBITDA margin at 13%. Profit before tax for the quarter stood at 130.1 crores after accounting for exceptional gain of rupees 22.4 crore on sale of one of the idle industrial land parcel situated at Haridwar, Uttarakhand and our share in profit from joint ventures and associates same quarter last year profit before tax stood at 102.4 crore. Our PAT was rupees 99.9 crores for Q1FY26 as against rupees 76.8 crores in quarter one of FY25.
Building on the momentum from previous quarters, we continued to make strong progress on both organizational and business development fronts during 1Q26 as well. Following the successful establishment of our global business and lightweighting verticals in financial year 24 and 25 respectively, we have further strengthened our leadership team by onboarding Mr. Ashwini Maheshwari as Deputy Managing Director of the company. We have also been progressing well on building partnerships in key focus areas of growth. We’ll share further updates in this regard as we move forward. Additionally, we have strengthened our innovation pipeline by filing a total of 15 patents to date up from 13 previously.
With this we can open the floor for Q and A.
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’ll wait for a moment while the question queue assembles. The first question is from the line of Preet from Incred amc. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir. My first question would be line on the revenue. If you could give the breakup of segment wise revenue segment and industry wise revenue breakup and also if you can mention how much was the export revenue for quarter one?
Aashim Relan
Thank you for the question. This is Ashim and good evening to everyone. So on a quarterly basis we don’t give out segment wise revenues and last year FY25 I think GD San should have the pickup. So GD San, you can just share on FY25 just as guidance numbers.
GD Takkar
Sure, thank you very much. So overall in FY25 our emission control vertical contributed 88% of the top line followed by suspension vertical which contributed 9% then supply chain management vertical 2% and rest 1% from others and miscellaneous items. This was the breakup of segment wise contribution to the top line last year.
Unidentified Participant
Okay, my next question would be on the line of I can say there is a quarterly depreciation rate decrease. So apart from land which you have shown in the exception item item have you sold any other assets in current quarter?
GD Takkar
No. So in the current quarter in terms of land parcel that was the only sale which happened.
Unidentified Participant
So if you could let us know why was there a dip in the depreciation for this quarter? No.
GD Takkar
So there in terms of depreciation if you look at quarter so the depreciation amount stands at 13.5 crore in the quarter worth 12.9 crore last year. This is on account of the overall increase in Capex and net of definitely small marginal depreciation on the asset which has been sold.
Unidentified Participant
Okay. No, actually it was 16.6 crores in March quarter. That’s why I was asking.
GD Takkar
Yeah, so 16.6 crore was on the March quarter because of the additions which were done towards the end of the year for this quarter. Number is net of the depreciation which has been removed on account of the disposals which have been done. And then there is small portion of ruling sale also which gets reported in other income and corresponding depreciation on that also gets moved. And therefore this is a combination of many factors and therefore looking lower but overall basis you should look at yearly numbers which gives the right indication of how much will be the overall annual depreciation.
Unidentified Participant
Okay sir, got it. And next question was There was a 10% year on year increase, year on year jump in the revenue but in graph on grass gross margin upfront there was only 5% jump. So your volume growth will be around 5% or was there any product mix difference? That’s why we had a deep in the gross margin.
GD Takkar
Ashim San, should I take this question?
Aashim Relan
Yeah, you can go ahead take this question.
GD Takkar
Sure. So yeah you are right our top line was higher by 10% whereas our margins Gross margin was. Gross profit was higher by 5%. This is, you know, the right way of looking at our growth is the gross profit which is the better indicator and there is an impact of product mix of higher sales with bric and therefore, you know, top line is higher whereas gross profit margin in absolute terms are at 5%. And if you compare this growth with the industry growth, then you would get the better idea of how the company is performing as top line will have many other complaint components including product mix brick sales, which is one of the components of our top line.
Unidentified Participant
Okay, sir, I’ll join back in the queue, sir. Thank you.
operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch tone telephone. The next question is from the line of Anubhav Mukherjee from Persistent Capital. Please go ahead.
Unidentified Participant
Hello? Am I audible?
operator
Yes, you are.
Unidentified Participant
Yes, sir. What I understand is that the Trend 5 implementation date for tractor is still April 2026. So how are you viewing this opportunity? Do you think that the deadline will hold or like will there be some extension? So can you give some color on? Because what I understand is that Tenpile can be a big opportunity for us. So what’s your take on this year?
Aashim Relan
Yeah, so the formal date so far has remained to be the same. However, a change seems likely from customer feedback and now we are in August. But the nature of change is very difficult to guide because there’s no formal communication as well as the notified date still remains as the 1st of April 26th. So our readiness is there. But we do anticipate some change. We don’t know how and what kind of change. And we’ll, as we learn more from the government side, we’ll keep updated on this.
Unidentified Participant
So do you have some view on what the change will be? Will they exempt like 25 to 50 horsepower tractors which can reduce the opportunities for us significantly? How do you have a sense of the kind of change that can come in?
GD Takkar
No, I don’t think we would be the right people to be able to guide that. Right. Because there’s no direct contact with the government because we’re just making one part and this is of course much larger. Right. And the tractor makers are the ones who are taking the lead on this. So our knowledge on this is not, you know, so up to date as it would be on the tractor maker side. So I think it’s best to just, you know, look out for how the government goes about it and best to stick to government guidance.
Right. And as per now, there’s no change in guidance. But we also sensing some kind of change. Hard to really estimate what it could be at this time.
Unidentified Participant
Okay. And sir, on the export side, can you share if there are any new developments in terms of any new order win or product development that will be helpful?
GD Takkar
Sure. So this quarter has been very good for us. We’ve added two new customers, in fact, one customer we were in touch with for almost three years now and we finally got the first business. This is a leading Japanese construction equipment company, so falls right in our focus area and it was one of our focus customers to acquire as well as we’ve added another customer who is a large heavy industry mission company. These are first orders that we’ve received. So there are on the smaller side, pilot side as the first order first relationship is generally on the smaller side.
And we do expect the SOP to be between 12 to 18 months from now and we continue to have a good RFQ pipeline. I think good work is being done on the export front and we do expect good momentum to pick up there. At the same time, I think all of us are aware that currently the geopolitical tensions are very high and there is a lot of volatility around the world. However, we are really optimistic that this should settle down and stabilize further.
Unidentified Participant
Great. And sir, we also had an order in one of the largest genset manufacturers and my understanding is that this is US based. So does this new tariff that’s coming very suddenly, does it change anything on that ordering?
GD Takkar
Yeah, so just one thing, that that’s not from the biggest genset maker, the biggest engine maker. Right. So it’s a very large company. Right. And yes, it is US based. So it’s just happened, you know, I think it’s just been couple of days and I think, you know, this whole geopolitical thing that’s happened in the last couple of weeks. Right. Is very hard to see the impact of it. And we are very hopeful that there should be some stabilization. Right. In the overall global scenario also. So I think it’s too difficult to guide because it just happened.
Right. Very recent and our SOP is, you know, for the early calendar year, next year. So I think everyone’s in wait and watch and everyone is hoping that, you know, there should be some stability and I think as things stabilize, it would be better to guide on that.
Unidentified Participant
Thanks, I’ll get back in the future.
operator
Thank you. The next question is from the line of Basant Patil NP from TCG amc. Please go ahead.
Unidentified Participant
Hello sir. Yeah, thanks for the opportunity. Can you, can you give Elaborate on the content per vehicle, how it moves up actually, what kind of the roadmap one we could sense actually by implementing DS7. Yeah. TREM5. Yeah. Even CV emission norms. What kind of the realization per kit enhancement? You will see actually. So if you give some color on that thought, that would be more helpful.
Aashim Relan
Sure. Thank you for the question. So I’ll just go one by one. First field is beginning from BS7 right now, BS7, the norms, the way they are drafted would be an indicator so we can look at what’s happening in Europe as a reference point. And in Europe there is a content increase and it really varies depending on the engine strategy. And giving A number on BS7 will not be apt for now. I think it will be better to wait for the guidelines as well as the strategy before we give a content reference point. However, it would increase, right.
How much it would increase by. I think let things materialize and then we’ll talk more on that. On the CD side, CV side, we have two products now. We’ve begun or we are beginning with your temperature control pipes. Right. And that’s an adjacency and that’s our first focus area. We feel that by getting into these products, which we’ve successfully now done, we will be able to not only sell this adjacency to the construction equipment industry, but there’s also a use of this in the commercial vehicles as well as a big export market for this. The number ranges a lot because as we’ve seen, different construction vehicles have different piping and so on.
So a reference point as a fixed number is not there. Now coming to TREMP5. TREMP5, what we had guided before is anywhere between 5,000 to 15,000 depending on the engine size and depending on again the OEM strategy. And lastly, for our current lightweighting content, which is mainly control arms, it’s between 2000 to 8000. Okay. And one more thing, because of this rare earth metal, what actually, which is noise around the corner. So will this impact on our procurement for catalytic converters? So that will lead to any disturbance to OEMs. Yeah. So nothing that we have seen so far.
And also the procurement of a catalyst. Right. Is done, you know, directed by the OEMs only. Right. So we are not much involved in it and we haven’t heard of anything. I’m not sure if the same metals are used in these catalysts, but not heard anything, so seems unlikely. Okay, so just one last question. So if you allow me, sir, what is your thought on disposing your cash? Actually you are sitting on huge amount of cash, actually almost 800 odd plus stores hunting for acquisitions for quite a long time. Actually as an investor, what we should look into, what kind of still it is unclear or how one should take away.
Yeah, sure. So our cash surplus, our first preference is to utilize it for augmenting our lightweighting vertical. We see a very huge opportunity there. And. And we also see a very good opportunity in M and A for powertrain agnostic. Right. And when I say M and A, I must emphasize that I mean technical agreements, joint ventures and acquisitions, not just acquisitions alone. Right. And that’s definitely the first preference and we would be focused on that in terms of acquisitions, there’s no fixed timeline. We just want to be very careful with the deals valuations and would want to be conservative here because for the long term I think it is better that we get the right thing.
We do have many talks and interactions ongoing and we will keep updated as something materializes. Till then we have already expanded also the dividend policy and we would keep focused on having a balance between return to shareholders as well as investing in future areas and that would continue. And you know, this surplus also we are seeing that at the right time would become a strength where we could maximize many opportunities when the private markets adjust little bit. So this may turn out to be a very big strength also in the future.
Aashim Relan
Okay, thank you. Thank you sir.
I’ll come back in again.
Unidentified Participant
Thank you so much. Thank you.
operator
Thank you. A reminder to the participant. Anyone who wishes to ask a question may press star and one on their touch tone telephone. The next question is from the line of Karthik from Suya Advisors. Please go ahead.
Karthi
Yeah, Hi, good afternoon, Ashwin. Just wanted to clarify a couple of things. One is on these export orders that you won, the engine maker that you spoke about, would any of it be covered under usmca? What would be the. You know, let me just for the record, just to clarify, please.
Aashim Relan
Sure. So you’re referring to the export business that. The export business that we won. 7 billion. So I think there are so many changes that are happening. Right. So it’s very hard to even keep up with the changes. Right. Especially because this is not active. This is still six months out. Right. So when we also now reach out the customer, they say that we have many other things going on and clarification and so on would be better either once there is more clarity and stability. Right. Or it is closer to sop. Right. In like especially the way that this year has gone globally every time these tariffs are changing rules are changing that all of us are there.
So it will be difficult to guide on specific things regarding this. It keeps changing all the time.
Karthi
Yeah. No, the only reason I ask is in case you want to estimate this is an FOB basis bill of leading basis. How exactly should one think about that is the only thing I’m trying to understand the mechanics rather than the final implication. I understand that if it’s 50%, there will be some heat everywhere. So.
Aashim Relan
Yeah, yeah. So I think, you know that the customer is very adaptable. Right. It has production facilities everywhere in Europe, Mexico, everywhere. Right. And everyone will adapt to the optimal closer to time. Right. And what the optimal will be, you know, we also don’t know. And we’ve got the indication that they are also going to adapt based on how the rules pan out. And it will be better to look at it, you know, closer to time given the dynamic nature of the geopolitical rules regulations that we are all seeing in the perfect.
Karthi
Got it. So adapt is the keyword here. Yeah. So the other thing that I wanted to understand slightly better from you is that we are seeing a lot of senior hires now. The deputy managing director is one more interesting one. So some thoughts on how exactly are you visualizing the future going ahead with all these leadership level additions?
Aashim Relan
Yeah, so you know, our goal is to now execute on all growth levers. We have so many growth leaders ahead of us. We have the lightweighting vertical, we have M and A, we have exports as well as domestic commission adjacency. So there’s so many growth levers and the idea is to strengthen the senior management as well as processes to execute on all of them. And the senior hires are all focused on exactly executing on these growth levers because they’re very excited on the opportunity now. We need more hands on deck really to get this done.
And that’s the thought process.
Karthi
I mean is the mandate new customer additions also would there be something possible on that side? Because there are certain gaps on, you know, on in your customer matrix, if I may put it like that.
Aashim Relan
Absolutely. All growth levers. Right. And the way I said it that this is how we look at it. We have to expand on light rating, we have to execute on M and A, we have to build up exports, we have to get into domestic emission adjacencies and all of that. If you see that good momentum is there and we will keep building on that for different senior people have joined for different.
Karthi
Thanks for answering. I’ll get back into queue.
Aashim Relan
Thank you. Thank you so much.
operator
Thank you. The next question is from the line of Sanket Kailaskar from Ashika Stock Service. Please go ahead.
Unidentified Participant
Thank you for the opportunity sir. My first question is on our non PV segment. So we expect our non PV to contribute 80% on our revenue share. So I wanted to understand like.
Aashim Relan
Sorry, I think did he get cut off? Can you just repeat?
operator
Yes Mr. Sanket. So the current participant have got disconnected. Ladies and gentlemen, a reminder for the participants. Anyone who wishes to ask a question may press star and one on their touchstone telephone. The next question is from the line of Manpreet Arora from Arora Wealth Advisors. Please go ahead.
Manpreet Arora
Thank you. Am I audible?
Aashim Relan
Yes,
Manpreet Arora
thank you very much. So Ashwin, you know on the gross profit side we’ve grown 5% this quarter and you know we have outperformed the industry in some way. So you know, so what is driving this outperformance? You know, is it because we are part of the models that are selling more or are some of the other verticals that we are trying to scale up are doing better or are we gaining market share? What is exactly driving this performance? If you can help there.
Aashim Relan
Sure. So I think in one quarter and especially because outperformance is like literally 2, 3% for this quarter. So you know, diagnosing a specific reason that this is why you know there’s 2%. It won’t be right for me however in general if I was to look at the rest of the year and then five years I can guide on few points that the rest of the year. Now a new suspension plant has started. So as it ramps up, you know, and the lightweighting programs that we had announced last quarter as they come in there would be of course some benefit from that as well as our first temperature control pipes which are going into CV the SOP is expected in Q3 so that’s going to be something on top of what we are already doing and hopefully if the export business starts in Q4 then that would be something on top of that.
The best, you know, minor outperformance here and there can always be that some models are doing better or some slight gains on PVs, LCD and so on but not worth getting into. You know the details of that now for the next five years where we see outperformance is definitely scaling up this light rating vertical and that we are hopeful to gain market share which already we’ve been gaining market share in control arms as well as customers and adding content into what we can do in light fitting by our internal RD as well as joint ventures, technical agreements, then of course the M and A for localization, exports growth, domestic emission adjacencies growth.
And all of this is something that would come on top of the underlying.
Manpreet Arora
Yeah, thank you. The reason I was asking was because primarily on the passenger vehicle side we are hearing about slowdowns in inventory. In. The channel and therefore we’ve seen muted numbers reported by the passenger vehicle OEMs. But still, you know, we have done a growth. So I was trying to understand from more from that aspect.
Aashim Relan
Understood, understood. No, no, understood. And you know, I think looking at it on a quarter by quarter basis is not the most accurate for components especially like us, because there’s such a long value chain also. And our key markets right now are PV and lcv. Right. And LCV I think is like what roughly flat or slightly down year on year as a market. And PV would have like I think 1, 2% or 3% growth. Right. So, yeah, so a little bit of performance is there, but best to look at the long term annual as well as, you know, going forward to get better.
Manpreet Arora
Sure, thanks. My next question is on the lightweighting vertical. And so our current focus is on the suspension arm side, is that correct? On the lightweighting side, yeah.
Aashim Relan
So our current business is on control arms where we’ve added one customer. Now we’ve also started the SOP which is going into one of the leading EVs as well as that same product will be used in ice. So it’s a classic powertrain agnostic product, what we’ve been going for. At the same time we see a very large opportunity in lightweighting and to add various more products and content within the car. And that’s where most of our time is going to build down the lightweighting vertical. And lightweighting as a theme is just becoming stronger and stronger due to the requirements in weight reduction, whether it’s EVs, whether it’s ice, whether it’s hybrid, for range cost, for safety, for mileage, everything put together.
And the technology has sharply evolved across the world, but especially in China and Korea. And there is a lot that needs to change right now for the Indian market also. So we are very excited about that and that’s why that’s where a lot of time and work is going in so that we can offer even more content.
Manpreet Arora
Yes, thanks. Just to understand this a bit more. So let’s say on the control arm side, what exactly are we offering or doing on the light fitting side? Is it just, you know, a new material that we, you know, specialized Steel that we use that makes it lighter is, is that the skill that we bring in or are there other complexities to the whole lightweighting thing that you know we bring in as an expertise?
Aashim Relan
Yeah. So our current internal capabilities lies in high tensile strength speed. The stamping welding of that. Second is on quality controls for safety products where this is a safety product very similar to how we have quality control in some of our other products as well as we have internal R and D capabilities. So that’s the differentiator. Now we are augmenting this with new processes, newer technologies and I will share more of that as we are successful in winning some business in those areas which would enable much more lightweighting, not just in control arms and other areas as well.
And that would be a value added.
Manpreet Arora
All right, thanks. So this Chakan or Chakan.
operator
Sorry to interrupt interrupt but I request you to come back for the follow up question. Thank you. The next question is from the line of Sanket Kailaskar from Ashika Stock Service. Please go ahead.
Unidentified Participant
Thank you for the opportunity sir. I might have lost connection before so my question may feel a bit repetitive to you. So it was on a non PV segment. So we have a guidance that our non PV side may contribute 80% in our revenue mix. So I want you to understand what is the timeline when we, when we will achieve this and second is what are the initiatives we are taking?
Aashim Relan
Sure, right. I think the spirit of the 80% guidance is to de risk from, you know, potential EV penetration into PV. Right. So that was the thought process of that and we’ve already made substantial progress. About 40% now comes within emissions from CVs plus 5% is from a mix of highway tractors and exports and roughly 9, 10% is coming in from lightweighting now. So the initiatives that we are taking, if you see almost everything that we are doing for the future is centered around this only. So if we go into light weight lightweighting could come from PV as well.
But it is powertrain agnostic. If you go into exports and you look at our export focus areas, it’s on the off highway side as well as on the commercial vehicle and the genset side. So as that starts coming in it is of course going to outpace the base that we have right now. And that is also going to add further to it. As well as the adjacencies now that we’ve gotten into are applicable on CV and off highway, that is the CV pipes that we’ve started, those will also be applicable in commercial vehicles and so on in Terms of the timeline on when this would be 80%.
I think the goal is not to have a fixed timeline but to grow in areas which have less easy risk. Right. And there’s a continued effort to do so.
Unidentified Participant
Sure sir. So my second question is on our various JVs. So one of them prominent ones being a bass pressure. So I want to understand like when do we expect these GVs to contribute significantly on PAT level and what is the contribution of from ABAS pressure as well?
Aashim Relan
Yeah, so I think it remains to be from a profit standpoint, fairly small. Right. It would be like 1% or 2% maybe it’s like around 11 and a half percent of our consolidated profit and our goal was to stabilize it. The mechanics of the JV such that you know that we of course are not in management control. So it would from a consolidated packed bases only come into a pat and the revenues don’t come into our pnl. And here there is a new program that has been awarded to the jv. And this is in fact a localization program for an international OEM.
Right. And utilizing India as the base for one engine. And that should come in somewhere towards the Q4 of 2026. And our focus is to look at various options on how we could get better contributions from this gv. And this is the only large active GV that we have.
Unidentified Participant
Okay, sir. Sir, on an export side, which countries are we looking for? As I export potential on emissions besides US and Europe, I mean which are we actively looking at as an active opportunity?
Aashim Relan
Currently the core focus is on US and Europe. And given how things are panning out, the Middle east has started sharing a lot of inquiries. That’s something that we were not proactively going for. But just how the new political situation is changing. The Middle east market has, you know, started sharing a lot of queries as well. But apart from that it remains to be USA.
Unidentified Participant
Okay, that’s great sir. So lastly on Prem 5, I’m assuming if everything goes as planned, I mean with respect to timeline as well as with respect to nature. So how much market share are we aiming for in the tractor segment if tram PHI resumes?
Aashim Relan
Yeah. So we’ll always be aiming, as I’ve said, for market leadership there. Right. However, we are also looking out for the government to guide on trem5 so it will be better to look forward to the guidance on that.
Unidentified Participant
Okay. So thank you sir. Wishing you the best.
Aashim Relan
Thank you. Thank you so much.
operator
Thank you. The next question is from the line of Satya from International Clothing House. Please go Ahead.
Unidentified Participant
Hi, sir, I’m audible, sir. Hello. Hello, Hello. Yeah, I just want to understand what kind of growth are we expecting like going in? We are doing approximately 2800 crores last year. We did. Do we expect crossing 3500 quotes this year?
Aashim Relan
Sorry, can you just repeat your question please?
Unidentified Participant
One thing. Hello? Hello.
Aashim Relan
Yeah, I can hear you. Please, please go ahead.
Unidentified Participant
Yeah, asking like we did a revenue of approximately 2800 crores last year. Like how much growth can we expect? Can we expect costing 3200?
Aashim Relan
Sure. We don’t guide particularly in the short term and for annual basis. And at the same time, especially given the global scenario as well as the domestic scenario, it would be very difficult to guide on anything as a firm number. Given the dynamic nature of the industry as well as largely what is happening on the global. And in general, as a philosophy, we don’t, you know, give firm guidance on. Annual numbers
Unidentified Participant
and even on the margin fund as well. Like the margin improvement that we expect to come in.
Aashim Relan
No, no guidance numbers. We would, you know, continue to be on the range that we have, but no general guidance like that.
Unidentified Participant
One more thing. We started with the Jakan plan in July or June, I guess. So when can you expect the contribution from that contributing to the revenue already?
Aashim Relan
It started, of course, the SOP starts with low volumes and there’s a gradual ramp up. And as the models, you know that it is catering to as they perform, the revenues would be linked to that. So giving a specific number in the first year would not probably be correct. But yeah, it started and there would be a ramp up and revenues would go as you know, the models, because it is linked to two, three models, it would go in line with that.
Unidentified Participant
And any idea on the capacity regulation that you’re working on on the overall level or the plants?
Aashim Relan
Yeah, we generally work around 80% of capacity utilization. Maybe GD SAN would have the latest number, GD sun over here.
GD Takkar
Yeah, thank you. So overall capacity where we are operating at is roughly 80%. You’re right.
Unidentified Participant
Are we expecting it to ramp up further because the festive season is coming up and everything is there in the quarter two and quarter three. Do we expect this to maybe go from 80 to 85?
Aashim Relan
I think that’s generally an average number. Right. And it’s seasonal like how the auto industry goes. Right? Definitely the festive seasons have larger volumes and. Yeah. So as the industry goes and we don’t look at capacity per se so closely. Right. Because our capacity gets augmented fairly easily.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Mihir Vora from Equities. Please go ahead.
Mihir Vora
Yeah, hi. So my question was basically say hypothetically the tariffs remain high from us, so US currently would be importing a lot from China as well. So is it possible for us in terms of, you know, do they have that capacity to manufacture the exhaust systems in US itself or they are dependent on other countries? So how to look about that?
Aashim Relan
Yeah, so I don’t think that so much capacity would be available in the US because all our focus products, they don’t make in America as of now. Right. And these are not even, you know, products that would be first, second, third priority when I look at it from the make in America or make in US Right. That is there. However, you know, this is so dynamic right now. How this changes and how it moves forward, we have to see currently, of course, with the very high tariffs which are there, it looks like, you know, that there is some kind of disadvantage.
However, that can change very quickly also. Right. As we’ve seen. So best to wait and look at it once things stabilize. Right. And then adapt and remain flexible and center the strategy around that. Right. So internally also when we discuss this, we have to adapt with how the geopolitical situation settles. And I think this opportunity would remain open. They have to source most of it from China, India or whichever other country that they go for.
Mihir Vora
And so basically when we are talking about, you know, starting the export exports from quarter four onwards for the emission components to the North American player. So are we hearing that there is any kind of delay at or it is status quo right now.
Aashim Relan
Right now the customers guided us just to, you know, wait for stabilization. Right. Because this is all so recent. Right. That there’s no firm guidance. And once things stabilize, I think that would be better to, you know, wait and watch kind on that.
Mihir Vora
All right. And the second question is on this domestic suspension business where, you know, major of the orders which we have won is for the suspension control arms part. But apart from that, what other product are we in terms of, say, in an advanced stage with OEMs where we believe, you know, that product will also be added, say in a one or two year kind of a time frame.
Aashim Relan
Yeah. So these products have a shorter lead time from RFQ to production. And then of course, emissions. Emissions begins many years before. And as it has a huge test cycle, our first focus is on augmenting our technology. Because while we are playing in the lightweighting space, we want to play in areas which are technology centered and not just, you know, any traditional stamping kind of businesses. So we are working right now on the technology front. Right. And once that is done, I think the opportunity size that would open up is going to be very natural.
Mihir Vora
So, like, currently it would be only control arms, which would be the priority.
Aashim Relan
Yeah, currently the priority is to gain market share on control arms. Already we’ve gained market share and we are very hopeful that we’ll continue on that journey and parallel to focus on the technology that is required to change the products on the Indian market right now from a lightweighting perspective.
Mihir Vora
All right, thank you.
operator
Thank you, ladies and gentlemen. We’ll take this as the last question for today. I now hand the conference over to the management for closing comments.
GD Takkar
Thank you very much. Thanks a lot. We appreciate the participation of all the participants in our earnings call today. We trust that we have addressed all your queries. Should you have any further questions, please feel free to reach out to our investor relations advisors. Ian Voy. Thank you very much. And you have a pleasant evening. Thanks a lot.
operator
Thank you. On behalf of Ecuris securities, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.