Sundram Fasteners Limited (NSE: SUNDRMFAST) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
R Dilip Kumar — Chief Financial Officer
S Bharathan — Executive Vice President – Marketing
Ramamoorthy Ganesh — Vice President – Finance and Projects
Analysts:
Mukesh Saraf — Analyst
Rushabh Shah — Analyst
Sonal Gupta — Analyst
Sahil Sanghvi — Analyst
Himanshu Singh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call of Sundram Fasteners hosted by Avendus Park. 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 touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Mukesh Saraf from Avendus Spark. Thank you, and over to you, Mr Saraf.
Mukesh Saraf — Analyst
Thank you, Michelle. Good morning. Mukesh Saraf here from Avendus Spark. Appreciate everybody logging in. From the management team, I’m pleased to host Mr Kumar, CFO; Mr S. Bharatan, EVP Marketing; and Mr S. Ganesh, VP Finance and Projects. We’ll start with brief opening remarks from Mr Dhillip and follow it up with the Q&A.
Over to you,, sir. Thank you.
R Dilip Kumar — Chief Financial Officer
Yeah, good morning, and I welcome all the participants for a discussion on Q3 results and the nine-month period. Just by way of clarification, we did not have conference calls the last two occasions. It is not for any other reason except that there were two investor conferences which coincided with the results. Since we were meeting all the analysts in those conferences we did not have for not for any other reason, but we have taken the feedback and we will hold these calls consistently or constantly irrespective of the conferences. And just to get down to the numbers, we’ve had a quiet Q3. The domestic market industry has had a moderate performance and we have had performance in-line with that. And the silver lining for us has been the export segment.
Export has done reasonably well in the quarter, which has given us the growth. And one of the things which had a surprise impact was the exchange which sharply moved in the month of December, the rupee — witnessed not only rupee weakened, also European currencies weakened and which were very strong in the previous quarter and some of our receivables in euro and GBP were mark-to-market at much higher levels. So they had to be reindexed. Also, the currency derivatives where we had taken some hedges again had to be done a mark-to-market under the accounting standards. And all of that will get reversed. It’s notional will get reversed in the subsequent quarter. So that had an impact partly on the performed profits.
The major elements, raw materials have been stable and we have experienced about 2% to 3% a drop-in the procurement levels. When I say levels, I mean the procurement rates and — but this quarter, the product mix had moved slightly against us and where either the realization of the parts are lower or the RM content are higher. And that has had an impact on the material or the gross margin. And moving on, the other major element was power cost. As you know in all state governments now every year revise the power costs, the fixer element and also the tariff. Also all the power which is procured under the group cap to scheme get revised because the open access charges are indexed to this tariff. So this has had an impact. And on revenues of INR1,256 crores, total revenue. We had a contribution of about 26% and EBITDA at 16.1% compared to nearly 17% for the nine-month period. There are no surprise elements in the fixed costs. They have been consistent in-line with the previous quarters. Our borrowings have moved up.
This is because we have incurred a capital expenditure mainly INR300 crores and there has also been buildup in inventory and in anticipation of a strong Q4 because these are based on customer schedules and forecast. And as you would know, Q3 is traditionally a weak quarter because especially for the exports and we have experienced that. And so the inventory buildup and the receivables have pushed up the borrowings, which is reflecting in the slightly higher interest costs. And based on assessments on tax positions, we’ve had a favorable tax assessments and provision for taxation has been lower. So we finished the quarter at INR120 crores compared to INR116 crores for the corresponding quarter. Now moving on to the nine-month period, we have registered revenues of INR3,855 crores compared to — sorry, INR3,869 crores total revenue compared to INR3,658 crores.
And though it reflects about 6% growth, within this, the exports have moved sharply from INR1,024 crores to INR1,174 crores, registering a 15% growth and in — we have grown in volume terms, in dollar terms and rupee depreciation has also helped, but significantly grown in dollar terms. And the EBITDA as explained, has come in at 16.8% for the nine-month period. After adjusting for interest and depreciation, profit-after-tax is INR382 crores, which is again a 10% growth compared to the corresponding nine-month period. So this is a story on the standalone performance. On the consolidated performance, again, our domestic subsidiaries have done reasonably well. We’ve got a price increase and lot of efficiencies in operational efficiencies have improved the bottom-line. And while UK subsidiary after the pent-up demand after the COVID got absorbed, released into the system, the high-interest rates and inflation and the ongoing Russian-Ukraine conflict have impacted the market and while the top-line has come down, but we’ve been able to maintain again due to operational efficiencies, the profits.
And China continues to face challenges, the domestic economy and we hear that Q4 was sort of better and the fundamental structural challenges remain in China. But one of the challenges which auto corporate manufacturers typically face is stiff competition and the continuous pricing pressure from customers, which we have been able to weather this quarter. And again, thanks to tight cost-control, we have been able to maintain profit. And just on the numbers, the nine months — I mean, for the quarter, we have registered INR1,44 crores with a profit-after-tax of INR130 crores. The corresponding Nine-Month number is INR4,445 crores and profit-after-tax is at INR417 crores. And with these, now I will throw the floor open for questions. And the — I must say that we are reasonably optimistic about the performance of the coming quarter and all the hard work, I’m sure will pay-off. We have the inventory built-up in our deposts and overseas warehouses and we expect a good customer pull and things are looking better.
With this, I request the participants to ask their questions. Thank you.
Questions and Answers:
Operator
Thank you. Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on their phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and one to ask questions.
The first question is from the line of Rushab Shah from Bugal Rock PMS. Please go-ahead.
Rushabh Shah
Hi, good morning, sir. Sir, my first question is about Indo fasteners business, could you help us out what is the most important thing to look out in your business and why Pundro Fasteners moat cannot be bridged? What advantages do you have against your customers sir?
R Dilip Kumar
I think with respect to the farmers business, we have been in this line-of-business for almost 60 years and the relationship with the customers are good and strong. And at the same time, the quality levels and we look-ahead and work with the customer in terms of understanding their requirements, whether it is for their ICE application, EV or the hybrid. So we work along with the customer and support them with respect to either building up capacity or participating in the new programs tools. And the significant point is our strong tool library. I think in terms of SKUs, if you look at partners, we should be handling variantes of, say, more than 10,000 numbers. So the strong tool library comes in handy to support whatever the customer wants. And today we are supporting from as minimal size as M3 to M56 and we are also looking for higher range of partners. So the range, the market, the segment what we serve, I think that stands in good advantage for Sundram partners compared to competition.
Rushabh Shah
Sir, just a follow-up on that one. The customer would change from is just because the product quality gets changed or better services that the competitor might be offering.
R Dilip Kumar
It could be on account of customer looking for a risk mitigation strategy, assuming he is sourcing 100% from Partners on say either a standard product or a special product. Maybe post-COVID, I think customers have been looking for a risk mitigation strategy, whether or not they are importing or even that they are sourcing within the country. I think that could also play. And in terms of entry-level or standard product, the competition would always come up with a bit lower prices. And being serious in the industry, we always know in terms of the price pressures we don’t give in, that is how I would put it.
Rushabh Shah
Okay. So my next question is, just to move on the risk mitigation strategy. So what would market-share do we command across our product portfolio, if you could give us your separate market-share? And also what is the market-share the TV and CD other segments?
S Bharathan
I think with respect to the market-share across our product segment, if you look at in terms of partners, I think we are the number-one in the Indian market. I think with a market-share of, say, close to 40% to 45%, that is the market-share which we would be commanding today. And we have competition in the form of either tools or deeper or right things. So in each of the product segments, we have competition assets. And with respect to other product segments, I would say is that we will be at number two-level competing with others. And as regards the market side with respect to the OEMs, typically, if you look at Sundram’s revenue, roughly 70% of the revenue comes from the domestic market and 30% from the exports. And out of that 70 between 55 to 58 would come from the OEM segment and there our exposure in terms of CV between CV and CV will be close to 35% to 40% and the car would be about 40%. So this is a broad number.
Rushabh Shah
Okay. Okay. And sir, my next question is, what is your vision for Partners in the next five years? Where do you think will be?
S Bharathan
In all our product portfolios, I think as my colleague explained just a while ago, we are good work for retaining the market-leader position, whether it is on the partner side, whether it is on the farms or the center and other product portfolio. The second is, we have a forayed into spaces like aerospace and defense and mainly because to upgrade ourselves in terms of quality and global competitiveness. And I think that will hold us in good stead to retain the market leadership, enhance on it and proceed further. Actually, Sundaram, as you know, has been constantly looking at diversification of its portfolio too.
And on that front also, I think we are reasonably proceeding on fast-track so that we retain the diversity and mitigate our risks. As was explained to you, all the OEMs today post COVID have gone in for a dual sourcing strategy minimum to mitigate the risks. And even export customers have onshoring activities going on. So to mitigate ourselves against that risk, we are diversifying our portfolio as well so that overall we can retain the leadership and proceed.
Rushabh Shah
Okay. Okay. Just a last question from my side.
Operator
Sorry to interrupt, I may request you to rejoin the queue.
Rushabh Shah
Yeah, sorry.
Operator
Thank you so much, sir. We’ll take the next question from the line of Sonal Gupta from HSBC Mutual Fund. Please go-ahead.
Sonal Gupta
Yeah. Hi, good morning, sir, and thanks for taking my question. So just wanted to understand, right, like in terms of like we had these wind-related orders where we had invested and I think they were supposed to start and ramp-up more in the second-half. And also, I think the EV-related orders were expected to start probably in Q3, Q4. So could you give us an update on what’s happening there? Have those ramped-up or those ramping-up.
S Bharathan
So I think with respect to the wind related, the capacities are in-place and we have come to the 100% utilization of the installed resources and we have seen an uptick in the revenue, thereby pushing up our auto and non-auto ratio also moving from 60-40 to now we are looking at 55 to 35%. So that way the energy project is on and we are seeing the benefit and we are also in discussions with the customer for ramping-up for the next phase.
And coming to the EV orders, as we had mentioned, yes, the projects are on-stream, whatever investments required for that has been completed both at Mahindra LCP and 3 City and the customers have indicated their schedules starting from current Q1. And I think it’s on-stream from our side with respect to the new product or development is validation. And hopefully for by Q2, we will get better visibility in terms of pull from the customer end. With respect to required stock building at the customer end, end in the warehouses, the project and what is already on and completed.
Sonal Gupta
Got it, sir. No, thank you. Sorry, just a clarification. Q1 you mean the Jan to March quarter or the Q1 of fiscal ’26.
S Bharathan
So Q1 of Jan to March, already the March quarter started, I think get better visibility going-forward in Q2.
Sonal Gupta
Got it. And just a follow-up, right, like when wind, like you said, we’ve already reached 100% utilization. But if I look at your dollar-term export revenue growth, it’s only about 5% year-on-year. So I mean like despite the wind orders coming in, which I think would have sort of helped or we’re seeing a very muted growth on the export side. So are there other segments like the Class-8 and trucks, which are sort of growing negatively? I mean, if you could sort of indicate what’s happening in the export space.
R Dilip Kumar
So just to clarify, this wind segment, while it may have ultimately is exported, but it is a rupee denominated business for us. That’s the first clarification. The second is, the exports have grown from INR1,024 crores to INR1,174 crores, which is about 15%. And in dollar terms, our math suggests that we have grown by 13% and the balance is because of rupee weakness. And so I just wanted to clarify that part.
Sonal Gupta
Got it, sir. Got it. So basically the domestic is where we are still seeing — I mean, obviously, we understand the auto industry is also muted. So that’s why the overall domestic growth sort of is sort of slower, right?
R Dilip Kumar
Correct, correct, you’re right, absolutely.
Sonal Gupta
And just the last thing, sir, on the — on the FX side, right, like as the INR depreciates or if it depreciates further, should that help us in terms of our profitability?
R Dilip Kumar
100%, sir, because the exports of Sundra, depending on how we close could be between $180 million to $200 million as a broad range and maybe closer to $200 million. And our imports are not significant except in a year where we import for capital expenditure requirements. So whenever there is a rupee depreciation, we tend to benefit.
Sonal Gupta
So, okay, so we — I mean, it’s not like a pass-through to the customer. That’s what —
R Dilip Kumar
No, sir, it’s not a pass-through.
Sonal Gupta
Got it, sir. Great, sir. Thank you so much for taking.
R Dilip Kumar
Thank you.
Operator
Thank you. The next question is from the line of Sahil Rohit Sanghvi from Monarch Network Capital. Please go-ahead.
Sahil Sanghvi
Good morning, sir, and thank you for conducting the earnings con-call and thank you for the opportunity. So my first question is, regarding the EV orders and we have seen a change of the government in the US and Trump also was alluding to Mr President Trump was alluding to freezing the green subsidies. Have you seen any kind of sort of a push down or any kind of delay or cancellations in orders related to the EV?
S Bharathan
So see for some time now, there has been a pushback on the EV side, even last quarter and the quarter before that, there was a pushback and our OEM customers, while have initially indicated good numbers, there were some delays in the platform getting started. But last quarter, as expected, we expected this H2 of this year that is the running quarter running half to start with those businesses. And as expected, the businesses have commenced with our major OEMs. However, the quantum on the volumes indicated have not fertified as yet. So there is a delay there. But as you say, things are hazy as such. But definitely, every OEM has assured that their platforms are on, they are not going back on that. It’s only a matter of time before it comes to full.
Sahil Sanghvi
So sir, I think what we had guided was that maybe a first year we could see something like a INR200 crore INR250 crores in iron-ore and then the next year onwards, we can ramp-up to INR450 crore 500 crores. Would that be a ramp-up trajectory still or should we not put that in the estimates, should we narrow down the estimates?
S Bharathan
Hazard in an estimate would be too premature now, but definitely there will have to be some recalibration to that.
Sahil Sanghvi
Right, right, sir. And regarding the other areas of demand when it comes to the non-EV side, how are the export market looking? If you can give us a general understanding?
S Bharathan
Yeah. See, as far as the export, as you know, the European market has had a very bad year and the situation is still tough, but I think with some like at the end-of-the, the Israel Gaza conflict, I think things are going to settle down and there is also hope on the Russian warfront. So Europe is expected to pick-up maybe towards the second-half of the year. Coming to the North American market, yes, this year is supposed to be muted. It’s also a 2% GDP expected in the American economy and with the Trump, but there’s a change in the government, people are a bit keeping their fingers crossed in terms of tariffs on vehicles and things like that.
So the major market like commercial trucks come Class-8 or Class 7 trucks are expected to go a bit down. In fact, last year, are slightly better than expectation, but this year it’s supposed to go down and it’s likely to pick-up in the second-half of the year, that is post June, norms of ’27 is going to be kick-in. So from the second-half of this year and for a major portion of the next year, that is 2026, that is expected to be pre-buy. And so the market will start looking up in ’26 and followed by a drop-in ’27. And again, there is another norm. So the greenhouse or green greenhouse gas emissions coming in 2030 and till then situation will be up-and-down. But ’25 second-half and ’26 are expected to be good.
Sahil Sanghvi
Right. And my last question is if you can give us the wind — wind energy-related revenues, maybe as a percentage of total revenues or yeah, if something like that could be given?
Ramamoorthy Ganesh
I think with respect to wind energy, probably where we started-off, but say, sub-5% with respect to wind as a percentage to overall revenue, I think we should see inking towards the higher double-digit as the current volumes, whatever we have planned that has already picked-up and with the Phase-2 coming in. So we are seeing positive numbers with respect to the wind business.
Sahil Sanghvi
Currently, sir, we are at around 5%. Is that the right number?
Ramamoorthy Ganesh
Yeah. Currently say you’ll be approaching 5% to 6% and probably you will take that to higher single-digit as I mentioned.
Sahil Sanghvi
Thank you, sir. Thank you and all the best.
Operator
Thank you. The next question is from the line of Mukesh Saraf from Avendus Spark. Please go-ahead.
Mukesh Saraf
Yes, sir, I just thought I’ll have ask a few questions as we move-up for that. Firstly is on the domestic revenue, we saw for a period of few years that we had been continuously outperforming the domestic revenue. But say, since last year, domestic revenue growth has kind of come off. We do understand the industry is not as good, but as a track-record, we usually outperform this. So could you kind of help us understand this time around we are not outperforming the domestic industry and what are we doing here to kind of improve this.
S Bharathan
See, as far as the domestic industry is concerned, you know, let me just talk about the sub-segments of the industry.
Sahil Sanghvi
Sorry, sir. So my question is…
S Bharathan
On the first three half of the year-on the commercial vehicle side, there was a lot of headwinds and there was lack of infrastructure spending and elections and all that and heavy rainfall in various parts of the country and also the e-commerce activity was reduced. As such, the commercial vehicle industry on a production front saw 8% dip compared to the last year. And it was our estimate that going-forward for the second-half Q3 as fast and Q4, we estimated the commercial vehicle segment to pick-up 2 to 3 percentage points from the dip it was. And true to our prediction, it is now at around 6%. 2 percentage points have been picked-up on the commercial vehicle side. Q3 has been slightly better and Q4 is expected to continue the same way. And we expect in Q4 and there are some indications from OEMs that irrespective, the demand production will continue for the 3rd-quarter — 4th-quarter.
So on the commercial vehicle side, we see a slight pickup compared to the H1 of the year and the industry will close at around two to three points better than the first-half of the year. And on the passenger car side, as you know, again, the entry-level car and the sedans have had a big drop-in terms of — to be close to, 15% 16%. And the SUVs are dominating the segment today with 65% of the industry segment. So there is a premiumization that’s happening in the segment like many other segments. And in the second-half of this year, again, we predicted some improvement, we assessed some improvement will happen. Luckily in Q3 during the festive season and the season now, there was some improvement in terms of sales.
While the production levels have not gone significantly up on the commercial passenger car segment, the sales has gone up. In fact, for Q3, I would say about 100,000 cars are sold more than the production. So bringing down the inventory in the pipeline by about five to six days, which is some good news for the dealerships. So — and the Q4 is also expected to continue the same day. Coming to the tractor segment again, H1 had a lot of issues in terms of a low demand. But with a good season and now so in-season being high and also the Rabi crop expected to be. The demand is also slightly picked-up in the 3rd-quarter and the momentum is likely to continue in the 4th-quarter.
Mukesh Saraf
Right, sir. Thank you for that. So my question was also regarding what is doing to outperform the underlying industry because in the past we have done this consistently for a few years, but say in the last couple of years, we are probably not seeing that outperformance. So like you mentioned in terms of passenger vehicles, SUVs are doing better, for example. So are you kind of looking to get a larger share of wallet in the SUV space, how are we placed there? So some color on this would really help.
S Bharathan
Yeah, precisely. In fact, see, there are two significant aspects that are going into our efforts. One is on improving our share of business with the customers, which is happening on various fronts. And the second is more focus on the new products and new product development. And on both these factors, we are seeing a significant success. And from our front, like what’s happening in the industry, we are also looking at premiumization in terms of our products of the various verticals of fasteners, they are looking at premiumization, like stainless steel fasteners and pumps, improved pumps with higher efficiencies and filter parts with my two material differential material. All these are our efforts and we serve the industry with better options to proceed.
Mukesh Saraf
Right, right. So that’s really good to hear. So when can we start seeing some of these efforts show-up in the numbers, because this quarter also we are flattish on domestic, in-line with the industry. So any sense there on when we can start seeing the outperformance vis-a-vis the underlying industry begin for us on the domestic side.
S Bharathan
So see, as you know, the auto industry goes through a rigorous process of new product development in terms of validation and things like that. So for any part from the development — go-ahead for the development to come to fruition, depending on the nature of the part will take anywhere between 18 to 24 months. However, all these activities have started a bit early. And so I think post half of the next year, we should be able to see things coming to wind.
Mukesh Saraf
Right, right. So second-half of FY ’26, we should start seeing some efforts — some numbers show-up.
S Bharathan
Correct.
Mukesh Saraf
Okay. Okay. Great, great. And secondly, again on the domestic business we’ve of late seen a lot of EV launches in the domestic side, Mahindra,, Hyundai, all of them have launched their EVs. And because we obviously have some of these transmission components like the shafts and differentials, et-cetera, how have we placed with respect to supplies domestically for some of these warm forged products?
S Bharathan
We are very much in the game there and we are engaging with all the customers on the EV side. Our estimate and assessment is that while on the passenger car segment, it might be EV and hybrids. And on the commercial vehicle segment, it might be EV and hydrogen. This is how we estimate the market to panel.
Mukesh Saraf
Right. So we will be a part of the suppliers for these EVs that are being launched right now and obviously getting into production now.
S Bharathan
Yes.
Mukesh Saraf
Any — any guidance you can give on what could be the value of these orders that we can get, how much this can kind of help us in the domestic revenue, just these EV for EVs in India?
R Dilip Kumar
Now the — as Mr had explained, I think it’s in the development and approval stage. I think it will be too premitive to the volumes or numbers that we are looking for this portfolio.
Mukesh Saraf
Got it. Got it. Understood, sir. And on the margins, Mr Dilip had mentioned about the mark-to-market hit. Can you tell us in 3Q, what was that number? And in which line-item is it in other expenses? For example,
R Dilip Kumar
No, it is no, it is grouped as part of other income and in terms of line items and so we some MTM as the export realizations happen in Q4. And these derivative positions of not derival. I say derivative is just a simple in forward contracts and this would get reversed as a P&L credit. Right back.
Mukesh Saraf
Okay. Okay. Okay. So that’s the reason other income is coming low. Basically it’s netted off in the other income. Okay.
R Dilip Kumar
Correct.
Mukesh Saraf
Got it. Okay. Right, right, right. Understood, sir. And probably some last question from my side is on the capacity. I mean, we have also — we have further done some capex and now you mentioned, but obviously, we have built-in a lot of capacity in the last few years for these EV products as well as for the other products. So how are we seeing current capacity utilizations and is there any plans to kind of push-back or reduce some of these capexes now if the utilization rates are low because seeing the capex number, I think it seems like revenues still haven’t come up for a lot of capex that we have already done.
R Dilip Kumar
With respect to the capacity utilization on our existing businesses, it was over between 60% to 65%. And on the new capex is whatever we have invested, so it also addresses the requirements of customers starting calendar year 2023 as well as 2026. So we should be seeing better numbers of the new investments in, say, ’26, ’23 would start-off in a small way. And in terms of capacity addition for the current existing business, we are also looking to garner either higher market-share or be ahead of the market where customers be pushing for higher capacity. So that’s the strategy behind the creation of these capacities?
Mukesh Saraf
Right, right, right. Understood, sir. Understood. Thank you. I think we have other participants in the queue.
Operator
Thank you, sir. Thank you. We’ll take the next question from the line of Himanshu Singh from Baruda BNP Paribas Mutual Fund. Please go-ahead.
Himanshu Singh
Yeah. Hi, sir. Thank you for the opportunity. Sir. Can you of indicate what is the growth rate for the fasteners — volume growth for the fasteners segment for us this quarter and we mentioned that there was some mix impact which impacted us on the revenue side. Will that continue in the coming quarter as well?
R Dilip Kumar
So what the mix side, we don’t expect that. These things happen at least in a year of four quarters, one or two quarters, these things tend to happen. But I don’t expect that to happen this in the 4th-quarter. On the growth in the volume terms probably within around 3% in the domestic market overall, which fasteners being the dominant share of that.
Himanshu Singh
Okay. Okay, sure. And sir, in terms of zind business, is it a domestic order or is it export order?
Ramamoorthy Ganesh
So we are serving the domestic market, but the customer aggregate and then ships it to wherever location he is executing the project. So for us, the revenue is in terms of rupee and so we serve basically the domestic market and we are also working for getting into export customer-base as well.
Himanshu Singh
Okay. Okay, okay, sure. And sir, in terms of outlook, how do you see your FY ’26 — FY ’26 performance on the top-line and on the margin side. Can you give any visibility what are the factors which should help positively and on both on the margin and revenue side or have any concerns?
S Bharathan
And on the — as far as the industry outlook is concerned for FY ’26, the domestic segment is expected to go grow at about 5% to 6% consolidated. I am talking about all the segments put together. It will be sort of a middle-single digit. And as far as the export is concerned, the growth will be muted. In fact, it will be less than what this year looks like. And as far as the retail is concerned, I think we are on par with the industry this year, you may have noticed that in the first-half of the year, about INR47,000 odd crores was the retail exports — retail aftermarket sales of component industry at a 5% growth. We are slightly ahead of that. So that will continue for the next year or two.
R Dilip Kumar
Just by way of additional input, while the market maybe bit moderate in the export segment. And since we had announced big order which we have received for electric vehicles and the customer indications, though we have recalibrated a bit, but the schedules are positive and the inventory buildup is happening. So that — while markets overall may be a bit moderate, but we expect to outperform as far as exports are concerned. And taking into account the rupee weakness and additional exports volume in FY ’26 and our EBITDA trajectory could be between 17% to 18%.
Himanshu Singh
Okay, sir. Thank you so much. That’s it from my side.
Operator
Thank you. Thank you. The next question is from the line of Sahil Rohit Sanghvi from Monarch Network Capital. Please go-ahead.
Sahil Sanghvi
Thank you for the opportunity again, sir. Sir, you had guided for US dollar 200 million export trajectory. Would that still be possible?
Operator
Sorry, sir.
Ramamoorthy Ganesh
Can you repeat that question, sir? Your voice broke out.
Sahil Sanghvi
Is this better?
Operator
Please repeat your question?
Sahil Sanghvi
Yeah. So I said that in the previous calls, you have guided for a US dollar 200 million export trajectory for this year, FY ’25, would that still be a realistic possibility or we might look.
R Dilip Kumar
Realistic, sir. So somewhere between $180 million to $200 million, definitely it looks like we will achieve.
Sahil Sanghvi
And would that — would that meaningfully scale-up by, say, 15% next year? I mean, because of the new EV orders and the other things?
R Dilip Kumar
And that is our expectation.
Sahil Sanghvi
Got it. Got it. Got it. Thank you, sir. Yeah.
R Dilip Kumar
Thank you.
Operator
Thank you. The next question is from the line of Rushab Shah from Rock VMS. Please go-ahead.
Rushabh Shah
Yeah, thanks for the opportunity. Sir, could you name top size customers and then what percentage is a contribute to your revenue.
R Dilip Kumar
So I think the — with respect to the key customers, see, we — in India, we serve these Tata Motors,, Mahindra. And with respect to overseas customers, our export customer, it’s falling between General Motors. So the customer concentration, if you look at, it would be in the range of 35% for this top-five. And one significant portion of the customer-base is we don’t have large exposure to any individual customer. So that way we are mitigated with respect to the participation of Sumram Partners, either in terms of segment or in terms of customer or in terms of geography?
Rushabh Shah
Okay, okay. And sir, next question is one of your competitors had entered into MCUs. So are we also planning to enter one of your competitors had entered into MCU — MCUs and you also planning to enter that segment.
S Bharathan
See, as such we believe in concentrating on our core competencies. And we — while we will upgrade our products to going for electrosuit, the electric vehicles like E transmission, E axles and e-transmission and electric water farms, things like that, I don’t think we will get into electronics aspect in the near-future.
Rushabh Shah
Okay. Okay. Okay. Thank you.
Operator
Thank you very much. Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference back to the management for closing comments. Over to you, sir.
R Dilip Kumar
Thank you. So thanks everyone for joining this conference call. We really appreciate it. If you have any questions which are left unanswered, if you want any clarification, please do not hesitate to reach-out to us because if any journalists or anyone picking-up from this conscription, please reach-out to us so that we are not quoted out of context. And like I said at the beginning, we are looking — we are cautiously optimistic about Q4 and in — we will have another call-in Q4 — when we accord our Q4 conference call. Thank you so much.
Operator
Thank you very much, sir. Thank you, members of the management. Thank you, sir.
R Dilip Kumar
Thank you.
Operator
Thank you. Ladies and gentlemen, on behalf of Avendus Spark, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.