Suprajit Engineering Limited (NSE: SUPRAJIT) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Kula Ajith Kumar Rai — Executive Chairman of the Board
Medappa J. Gowda — Chief Financial Officer
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
Mohan Srinivasan Nagamangala — Chief Executive Officer
Analysts:
Unidentified Participant
Mumuksh Mandlesha — Analyst
Viraj — Analyst
Jinal Sheth — Analyst
Senthil Manikandan — Analyst
Amit Hiranandani — Analyst
Gokul Maheshwari — Analyst
Ravi Purohit — Analyst
Aditya Khetan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Suprajeet Engineering Q1FY26 earnings conference call hosted by Anandrati Share and Stock Brokers 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. Mumuksh Mandlesha from Anand Rati Stock Brokers Limited. Thank you. And over to you, sir.
Mumuksh Mandlesha — Analyst
Thanks, Anushka. On behalf of Anandrati shares and stockbrokers. I welcome you all to the Suprajit Engineering Q1FY26 conference call. I thank the management for taking time out for this call. On the management side we have Mr. Ajit Kumar Rai, the founder and chairman. Mr. N.S. mohan, MD and Group CEO Mr. Akhilesh Rai, director and chief strategy officer. And Mr. Medapa Govra J, CFO and company secretary. Request Ajit sir and team to give an introduction review about the results. And then we can follow up with the Q and A session. Over to you, sir.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Good morning everyone. And thank you Mumuksh and Andrathi for hosting our quarterly calls. As always, I welcome you all for. The Superjit’s Q1 FY26 results. Presentation. The focus for of course the quarter. As has been in the past remains unchanged. The global scale, local focus and technology driven. We have briefs from Mehtapa, Mohan and Akhilesh. And then I’ll do a final wrap. After that. We’ll have a question and answer with this. I’ll hand it over to Medhappa for his initial remarks. Mehtapa.
Medappa J. Gowda — Chief Financial Officer
Yeah. Thank you, sir. Greetings to all the consolidated highlights. The stood in the FCS Q1 revenue came in at Rs. 7,733 million up 5.2%. Year on year. EBITDA was rupees 993 million up 15% with margins improving 100 basis points to 12.8%. Standalone highlights. On a standalone basis, revenue was Rs. 3,900 million up 3.5%. EBITDA was rupees 605 million down 6.5% with margins at 15.5%. Group debt and investments. Our debt stands at rupees 6,735 million rupees 2018 million long term and 4,717 million short term investments in mutual funds. And bonds were rupees 25,68 million versus rupees 25,13 million in March.
Thank you Mohan sir, over to you. Thank you Medaba. Very good morning everybody. And I will walk you through the general business scenario and I will also take you through the performance of some of our divisions. Let’s start with the Indian automotive industry. I’m sure that you all know about it. We had a pretty muted growth in this quarter. Passenger vehicles just went up by 3.5% and two wheelers by around 0.7%. And global conditions obviously remains pretty challenging. A lot of geopolitical risk. We have all heard a lot about Chinese wear Earth issues. Of course the super hot topic is now tariffs.
Now again this backdrop, I would say the consolidated revenue and EBITDA of Superjit grew. So let me now start with each one of the divisions and starting with the Superjit Controls division which is the Global Cables and Controls division. STD delivered a very strong quarter both from revenue and EBITDA perspective. And when I’m talking about this, I am talking about SCD without the recent acquisitions of acs. The restructuring projects that we have already disclosed over the last few quarters, you know, like the Germany rightsizing, Hungary warehouse setup, Mexico operation consolidation, new organization structure with regional emphasis, all are progressing well.
And as we have planned, we continue to win new contracts across geographies despite all these uncertainties. The biggest discussion obviously is tariffs and we are very actively engaged with our customers. I was there in US and visited quite a few customers along with Mr. Chimray. Customers understand the various and also various mitigation plans were discussed because ultimately it is not just the passing of the tariff burden but how to reduce the tariff burden both on mid and long term basis. While we are doing this, we are also seeking relief on a near term basis. So we are seeking support from the customers.
We will need to see how and where the tariff lands. And our biggest concern here is the effect on OEM and end customers. Particularly how it will affect the U.S. economy and the global economy. Moving over to the domestic cable division, BCD reported a very strong revenue growth outpacing the industry. And the business also continues on a strong wicket in terms of EBITDA also particularly aftermarket growth was very good. And our Beyond Cables initiative continues to gain traction in the industry. While optically it looks as though EBITDA on a year on year basis is moved down, it looks mainly because due to higher cost, R and D costs and corporate costs, it all gets pocketed into this particular area of DCT Moving on to Phoenix Lamps division.
Phoenix Lamps had a soft quarter both on revenue and EBITDA terms. The main driver that is the Middle east conflict impacted Creepa brand exports. India business remains steady but we expect the softness to continue in the few quarters mainly because of the uncertain global market. With this I would like to hand it over to Akhilesh for an update on the other divisions.
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
Akhilesh thank you Mohan and good morning to everyone. I’ll take it up from slide 10 where we’re talking about Supril’s electronics division. At SED our revenue and EBITDA was down. This was mainly driven by conditions outside our control because a major EV customer was struggling in the market last quarter and this drop which was quite significant, significant was actually partly offset by a ramp up of requirements from our Global Controls division and also the launch of very important throttle sensor project with a top three three wheeler OEM which ramped up very quickly. We see that there are multiple opportunities for growth at SED and this will help with the utilization which should improve as new projects load.
Our second SMT line which was recently commissioned when it comes to our latest acquisition of SCS or stahlsmith cables in Q1 we finally completed the second branch of the acquisition which was adding the profitable side of the business, the China and Canada side. The quarter includes one month of revenue from these assets. STS losses as a whole was generally significantly reduced. This is because of a lot of hard work that our team has been doing with multiple projects now completed. We moved Germany warehouse completely to Hungary and now the Hungary warehouse that we have set up close to our plant is stabilizing.
But still of course there is room to improvement to improve in Poland we have completely closed down the entity there. So this has completed this quarter and Moroccan operations which had significant issues with productivity have now been improved and streamlined. Finally we announced it this quarter that we reached an agreement in Germany to rationalize headcount further. This will be completed in the next quarter or so. Of course the integration story continues. Till now we have been focusing on a lot of firefighting. Now we are focusing on things like logistics projects, purchasing improvement projects that are now ongoing and we continue to Target Turning Consolidated SES EBITDA positive by Q4 in this year when it comes to the Technology Center Suprajit Technology center or STC as we call it is working very closely with Bluebrake at a feverish pace on a two wheeler ABS product.
This is a timely development considering the announcement of mandatory ABS recently made by the government. The New STC facility is also on track for an inauguration in 2026 and we look forward to host you to see this new facility which will house almost 200 engineers. STC remains focused on supporting our divisions with braking actuators, electronics and global back office engineering support projects and it has been very successful in these finally some general updates. We are doing a very big project of Sanaa SAP HANA implementations this is across We’ve already completed implementations across five entities and seven plants that go across four different countries.
So very complex SAP implementation that we have rolled out and we plan to roll out across 15 plans over the next 12 months which also is across at least 5 countries. Soon all suprajit plants will be talking one language with the centralized support system based here in India. We are also focusing a lot on talent development to support our global operations and the new technologies that we are bringing to India. And also as part of that there is a Chairman’s Club led by me which continues to expand to bring the best talent of Suprajit to the top.
Finally a good announcement that we marked Suprajit’s 40 year anniversary with a celebration in May. It’s a milestone for a story started by our Chairman and made possible by our people, customers, partners and cherished investors like yourselves. So some pictures are in the press release as well from this global Sam Brahma with that, over to you Chairman for closing remarks.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Thank you Akhilesh Mohan and Medipa. As a concluding summary, I would say that we continue to outgrow industry business growth in terms of operational metrics and operational efficiencies continue to go to new levels. Our international operations are in line with our targets internally. Phoenix Lamps and Electronics Division are slightly sluggish due to market factors, but I’m pretty sure in the next one or two quarters it should be get back to normalcy. As we see it. Domestic Cable Division, if you look at their own individual performance without some of. These overheads, has continued to perform absolutely strongly. But I think the real story this. Quarter and even probably to some extent. Last quarter is the turnaround happening at Controls Division. You might have noticed that the EBITDA of Controls division has grown from 8% to 12%, which is a very pleasant internationally acceptable levels of margins there. We of course accept FCS which as Saklesh mentioned earlier, we should be a beta positive by the fourth quarter of this year. We are well placed to resolve customer concerns with tariffs. I think quite a bit of them have been resolved. Some of them are yet to be. Done, but the important part is that with our multiple opportunities to change the footprint over the medium term gives us a unique position to satisfy customers requirement which probably our competitors do not have. I believe that the tariff actually offers a good opportunity for us in the medium to long term than many of our competitors have. So with that I will ask Anushka to open the floor for questions and we are happy to answer the questions. Thank you. And over to you Anushka.
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 Viraj from Simpl. Please proceed.
Viraj — Analyst
Yeah, hi, thanks for the opportunity. Just a couple of questions. First is if you see the quarter gone by, we’ve seen an increase in gross margins and at the same time we’ve seen a material increase in employee costs. So can you give some breakup in terms of, you know, the addition you would have seen in terms of senior level of SEC versus the restructuring or winding up of operations in scs. So how is that mix between the two when it pertains to supply cost and similarly the reason behind increasing gross margins?
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think. Basically on the employee side. You must realize we took the entire hit of German reduction in people in one quarter. That’s I think about 1.2 million. I’m just giving you one or two points. Secondly, of course the STC and corporate. There are multiple numbers are adding STC numbers have now probably 100, 110 now. And at the corporate also some senior. Level people have joined, President has joined in the last quarter. We have another couple of other senior people joining at various places. So I think these things add to the overall cost but they are all. Long term plans for the company from. That point of view. And of course the FCS employee costs keep adding on as a normal course because we also had a one month cost from FCS Canada and FCS China which is now of course a project entity. So these are the reasons for that. So obviously I think our other costs have been in good control. So the gross margins have improved and. We have, as I said, I think the real part of it is the. Turning around of FCD happening very nicely. I think lot of operational efficiencies have improved. I think the projects have added to bring Our margins up at FCD significantly. So if you really look at it on a consolidated basis, despite our standalone. Business margins having slightly difficult time, the consolidated margins have improved by 100 basis points. So that’s basically the FCD performance.
Viraj — Analyst
Just one follow up on this part. So if I look at the quarter gone by, would it be right to think that in terms of say restructuring another one off cost either in OPEX or employee we would have incurred to the team of 15 to 20k and similarly the investment in FCC. So when I still look on analyze basis you’ll be investing somewhere around 20 to 25 crores at least on in terms of payment investment.
Kula Ajith Kumar Rai — Executive Chairman of the Board
You are right. I didn’t understand the second part of the question. You’re talking about fcc.
Viraj — Analyst
Yeah. So in terms of fcc because once we look at the DCD margins obviously that’s where bulk of the expense would be happening. Correct me but would you like to think that one, if one just thinks of investment in SVC on an annualized basis you will be investing somewhere around 20 to 25 crores at least in. Terms of PNL in STC you mean?
Kula Ajith Kumar Rai — Executive Chairman of the Board
Yeah, STC.
Viraj — Analyst
Yeah.
Kula Ajith Kumar Rai — Executive Chairman of the Board
But I think the cost is not only STC. I think you know Akhilesh just mentioned about you know our one suprajit initiative. There is significant IT costs are also.
Viraj — Analyst
Being incurred because we are rolling out the global, you know SAP Hana, that’s. Also another significant cost. So those the three significant costs are sitting on DCD is FTC rolling out of Global one superjit and also on the corporate overheads. So I will not be able to. Give a breakout separately but you can. Probably have a chat with me on that.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Sure. Just two more questions. One is simple break business. See we had seen a very good traction building up with CBS and also we’re talking to customers mechanical display. Now with the ABS regulation coming in. I understand we have a tech tire with blue grade but given where the regulations are supposed to be starting somewhere from say Jan26, correct me, do we still have a play in terms of participation to ABS business and where does this put to the CVS orders which we are supplying? I will ask Mohan, will you take. The question or at least one of you can answer.
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
I can take it.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Okay.
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
Yeah. So I mean I think first on the regulations, I mean I think you know we need to wait for the final notification to come out. But you know our guessing is that there will be certain delays because the industry is just not ready to ramp up to the kind of requirements of ABS that will be there if they really plan for January. So we do think there is going to be a bit of a delay. However, we are pretty much on track that we think we can productionize our ABS by January. It will be very tough, but we are working, like I said, very feverishly towards getting this product online.
When it comes to cbs, yes, there might be certain effects. Look, you know, the ABS is required on the front brake, but CBS is a balance between the front and the rear brake. So CBS may still be, you know, something sometimes even preferred by OEMs and riders. So we love to see how these new models, how they will launch them with CDS or with CDS plus abs. This is something that we will have to look at. But on our side, we’re quite confident that we have a good CBS product regardless. And we have a great ABS technology which should be lower cost by design, which is ideally placed for this market.
Viraj — Analyst
Sorry, so when you say cbs, will that sill be offering relevant if the market moves completely to ABS?
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
It depends on the decisions OEM takes. So, for example, you know, maybe some OEMs will say that they will just have ABS in the front brake and brake, you know, a separate cable to the back brake. But the safest, in fact, the safest method of having the brake system is having, if you’re going ABS in front, you also have CBS for the back so that you also balance the braking between the front and the back.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Okay, but the regulation mandate, if at all to have a full ABA system. Both front and back right now, that’s what. So we need clarity on what that means. Right. So, you know, with the ABS regulation, how does it affect cbs? Is CBS still mandatory this? We need to get the final notification.
Viraj — Analyst
Okay, just one question. I’ll come back and see you. With regards to the Phoenix lines, we kind of backed an order from a large US departmental store. Can you give some more perspective what the size of business, what’s the kind of store coverage of the customer and initially what kind of coverage we would have.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Mohan, will you take that question?
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
Sure. Well, this is one of the large chain stores, I cannot name it right now, which we had been approaching for quite a long time. So this is going to be launched in their brand. It will not be launched obviously in the Phoenix brand. And in terms of the volume of business, etc. I would not be able to disclose it right now for specific reasons that we have agreed with them. Once it is much more concrete and we start shipping out, it becomes more obvious and transparent.
Viraj — Analyst
Sure, I’ll come back. Thanks.
operator
Thank you. We take the next question from the line of Jinal Sheth from every GA Capital. Please proceed.
Jinal Sheth — Analyst
Good morning. Am I audible?
operator
Yes.
Jinal Sheth — Analyst
Yes. So this is in regards to the Chairman’s interview on TV where you mentioned that around 30, 35% clients are ready to take hike. Now my question here is that today locations are spread across, so obviously not everybody is buying from India. And considering your spread, since you’re spread out, you would be less impacted compared. To your competitors, as you already mentioned. I’m just trying to understand when you say that 30, 35% clients are ready to take hike, what is it that. You are trying to indicate out there? As I was telling, I think the. Our exposure to us, let’s put it. You know, but this exposure is not. Just from India, India, China, Canada, Europe and from Mexico. Probably into us is about 100, 110 million of which 70% is USMCA compliant. So we are only talking about tariffs for the balance that will be coming from all over the place. Right. So our conversation so far with the customer is that that about 30, 30. Plus percent have agreed to accept the increased tariffs. Another 30% or 35% are sort of in principle agreed. But the formality is how do we. Bill, how do we account, how do. They account and how do we, you know, make the payment and what is the timing of that? This is under discussion. Another 30, 35% are still negotiating saying that, you know, you take some, we. Take some and that kind of stuff. So the 30% that is non USMCA. Compliant are the one that is being debated. I hope I answered the question.
Jinal Sheth — Analyst
Okay, thank you. Thank you so much.
operator
Thank you. We take the next question from the line of sentience from I thought pms. Please proceed.
Senthil Manikandan — Analyst
Good morning, sir. Just one question from inside. With the recent SES acquisition being completed, how do you plan to deploy the company’s future cash flows? Will it be will be focusing on deleveraging or any plans to do buyback or like returning capital to the shareholders? So a broad insight on this would be helpful. Thank you, sir.
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think as you know, last year. We did a buyback. So I probably would assume that, you know, buybacks may not happen immediately. We just did one in terms of. Cash flow, obviously, you know, we are. In a major consolidation phase with our recent acquisition. So we will watch carefully what is required within the group in terms of all these restructuring activities. We have talked about the restructuring earlier and elsewhere and also within domestic. We are putting up a new stc, you know, technology center business. I mean Infrastructure. We are also expanding some capacity. There is certain monies being spent on breaking division. I think at the moment I am not able to comment on the deployment of the cash. But I think, you know, we’ll at an appropriate time we’ll discuss with our board as to see what needs to be done. We also given a clear dividend or. Distribution policy to the share, I mean to the all the shareholders and investors. I think that still holds. I would say that we will continue to, you know, manage to reach those ranges of distribution over a period of time. Yes.
Senthil Manikandan — Analyst
Just a follow up on that. So usually we find opportunities and there is a lot of macro level strength. And so in cables we are consolidated a lot globally. So in other products also. Do you have any plan to do global acquisitions and then consolidate our position globally?
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think at the moment, you know. We just completed one, you know, acquisition. So I think our focus for the next medium term, short and medium term is to make sure that whatever committed to do with these acquisitions turn out to be what it is and that we deliver on our commitments to ourselves and to the investing community. So I think that is our focus. What happens when something comes on the table is different. But at this moment we have no. Such plans of any new acquisitions.
Senthil Manikandan — Analyst
Thank you, sir.
operator
Thank you. We take the next question from the line of Amit Hiranandani from Philip Capital. Please proceed.
Amit Hiranandani — Analyst
Yeah, thanks team for the opportunity. Sir, can you please help us understand how much was the Paris impact in Q1 and how much more can come in balance part of the year?
Kula Ajith Kumar Rai — Executive Chairman of the Board
You know, the question of timing, Amit. Of tariff is difficult to see. We may pay this quarter and customer. May reimburse in the next quarter. So the timing is an issue. So that we need to deal with. Now in terms of the overall impact. I would say as I said, you know, I’ve given the breakup of 30%, 30, 35% and 30, 35% that holds. So there will be timing issue. So that does not mean that we. Will be absorbing something. Will there be marginal maybe 1 or 2% here and there more or we will absorb. It’s a different matter because it’s a question of how we present to the customer and what is the final negotiation turns out to be. As in the first quarter we haven’t. Had any impact of tax.
Amit Hiranandani — Analyst
Okay. And then secondly on the SCS division. So here 70% revenue comes from Europe and which remains generally soft. And in addition now Canada and China most likely to report a single digit growth. So considering this situation, how company aspires to grow this SES revenue. Additionally, if we will not be getting the required scale for this division. So how margins will improve in this division?
Kula Ajith Kumar Rai — Executive Chairman of the Board
Mohan, will you take the question I. Can also add on later on?
Mohan Srinivasan Nagamangala — Chief Executive Officer
Sure. See, it’s always the question of how you integrate the whole thing. First things first, you have to understand that there was one particular customer who was not very big in our scale of things. Now through this acquisition we have got that big customer in the fold. This is an American customer, US based customer. Second thing that has happened is that we have got another European customer where we already had a significant, I would say exposure. But with this, that became much more cemented as a critical supplier for them or important supplier for them. So these acquisitions help us to build the scale that we want to be.
Therefore, individually, will that in itself grow? Obviously it will grow. That growth would be based on the market growth. Therefore this acquired growth is going to bring us what I would call it a scale. And these individually will have their own overheads to manage. Now once we consolidate it and work together, the operational overheads comes down. Therefore the overall profitability of the business unit starts becoming better. Therefore that is what it brings A to the industry, B to ourselves as when we go ahead and consolidate these businesses.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Akhilesh, you want to add anything?
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
Yeah, I think, you know, in terms of growth you have to understand that Morocco has the lowest tariff of from day one, you know, Liberation day tariffs till now, they have had the lowest limit of tariffs. So this is clearly one location which is about seven days from us, which there’s a great potential of growth to support the US and North American requirements. Similarly, with Canada being part of usmca, there will be potential to bring in product through the USMCA which is looking like the most, the most, the strongest way to get into the North American market today.
And most of our customers are interested in that. So these will bring these two channels towards our customers. And then with our tech center bringing new actuation technologies, actuation and electronic and sensor technologies, these new products will open a lot of new things for all our customers in Europe and US. And these production, production locations are perfectly located to integrate into larger assemblies and supply into either Europe or us. So I think they’re very well poised for organic growth as well.
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think the sum and substance of what we are trying to do here is simple. The supply chain in automotive industry is becoming a lot more complex today. That too added the dimension of tariff. What you are currently being able to. Offer, as akhilesh said, a 10% base. Out of Morocco not just for the FCS customers but for everybody. In fact we are in discussion on that. So ultimately what’s happening is an integrated suprajit controls division. We are positioning ourselves with the most robust cable supplier with multiple locations to deliver products to customers which will work best for the customers whether it’s tariff related or otherwise. I think this is where the whole thing fits. So after a year’s time I don’t. Think, you know like we are today not talking about Wescon separately or LDC. Separately in a year’s time we will. Not be talking about SCS separately this year we are talking it because to. Make sure that it is in green. Before we talk on a consolidated basis. The SCD as a footprint for products, our products, not just cables, beyond cables from FTC will offer this footprint. I think that is our strength in this business.
Amit Hiranandani — Analyst
Right? Right sir, there’s only mid term margin aspiration for SCS if you can help us understand sir.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Yeah, I think we have said that. The FCS should turn around by fourth quarter. We are still very much on that. I think first quarter of course the. Sesame the new acquisition had only one month’s impact. I think this quarter they do have. The full quarter’s impact. We have always said that is a profitable business which is so. And then you know the challenge is. The European entities as been just mentioned. The one warehouse in Germany, high cost has been closed. Hungary is being established, Poland is closed. Lot of our Phoenix projects in operation Phoenix in Morocco is going well. So given the next two quarters I think this will all fall into place. And German of course headcount reduction is. Being announced and it’s happening. So all that is taking the next two quarters. So as we said and I think we are still standing by it that. By Q4 we should be EBITDA positive at FCA.
Amit Hiranandani — Analyst
Great. Lastly one question on the project controls division. So we really appreciate the margin turnaround happening over there. Revenue run rate is ranging between 360 to 380 crores per quarter despite we are winning new orders globally year on year growth. If you look at this in last six quarters remain muted around 4%. So just wanted to know about the outlook for this region and where do you see the SED’s top line for in the next three years and sustainable margin level please?
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think if you look at the automotive industry, I think any project that is granted has either five, six, seven. Years of life cycle. So you must understand every fifth or sixth or seventh year a project that was awarded to us five years ago. Drops off the table. So when you say 6% growth, which is what I think Controls Division has done in this quarter, it actually means something like a 15% growth. You must realize also what is dropped. Off from the table. So the new business has that has been won is more than, you know, substituting the business that is getting dropped off. That is a very important point. And secondly, you must realize whether it is Europe or us, they are basically businesses. I mean, automotive industry is on a. Kind of a negative trajectory where when. We are talking about a growth, I think that itself is. Quite satisfying to us. But having said that, can we have a higher growth? I think the answer is yes. I think some of these uncertainties are slowing down businesses and you know, customers are either delaying, changing, launches are getting delayed. So these are the uncertainties of the world. So when, let us say in a quarter or two, when, let us assume that all these uncertainties are behind us, I think we will see a clearer picture. And I am still hopeful that by. End of the year we will have a double digit business at Controls Division.
Amit Hiranandani — Analyst
All the best. Thank you so much.
Kula Ajith Kumar Rai — Executive Chairman of the Board
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 two, Star and one. I’m so sorry. The first question, the next question is from the line of Viraj from Simpl. Please proceed.
Viraj — Analyst
Yeah, thanks for the opportunity. Again on Phoenix lines now. So when we acquired that business had a lot of traded sourcing from a lot of vendors in China and Korea. So fast forward 2025 and even with this order to US department is so is that more driven by insourcing rather than outsourcing?
Kula Ajith Kumar Rai — Executive Chairman of the Board
Mohan, you want to take that question?
Mohan Srinivasan Nagamangala — Chief Executive Officer
What was your question? Your question was on sourcing that we were getting from Korea and China, right?
Viraj — Analyst
Yeah. So how is that overall sourcing? So has that moved to captive for over a period of time? How that mix now for us? So that is one question.
Mohan Srinivasan Nagamangala — Chief Executive Officer
Well, when we started off at that point in time itself, we had a very quick review on what needs to localize or what cannot be. By and large we have not disturbed to a great extent the supply chain. We definitely have moved in some areas from European sources to China and Korean sources. And to that extent we have brought it down now from there to bring it in India. We don’t have that kind of flexibility. The number of components itself is not too many. Therefore there is a limited flexibility to the extent of flexibility that we have.
We have already flexed it. I Don’t think we can do beyond this now.
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think probably Viraj, you are trying to attempt is that, you know, in terms of our business, when we first took over 10 years ago, it was 70% OEM and 30% or so of aftermarket. Today the whole thing has changed. So our game plan, our strategy has changed. So we are more in the aftermarket. Today to up to the level of. About 70% and I think that’s where we were able to sustain despite everybody. Questioning our reasoning of acquiring. So it continues to be very profitable. Because we have changed the whole business model itself in terms of how we enter the market beyond oem.
Viraj — Analyst
No, I think that’s really appreciated and we’ve done a very good job in turning this around. So thanks. Congratulations to you and the team for doing this. Just two more questions. One is on the lcd. I think you know, when we acquired LCD we were also looking to ship some of the incremental or the existing business of LCD to the India operations. So while we have done, you know, we have seen a good amount of order wins, large order wins from MNCs which are incremental new businesses. But any of the LCD business has that also moved to the India operations.
Any color you can give. How much of that is already flown through or yet to flow through?
Kula Ajith Kumar Rai — Executive Chairman of the Board
No, I think you know, now it is all customer driven. We did when we first acquired controls. Or you know, LDC entities. Some business we did move from Hungary to India. I think some was small business was moved from Metamorphos to India. But today it’s all customer driven because we need customer to be agreement with us. Because I think the global scene is changing. When we acquired maybe three years ago. The you know, close shoring on shoring was not such a big talk. But today is a very big talk. So you know this, the idea of. Moving a lot of business out of wherever we are operating to India is not really the issue. But the new contracts are being won. I think more of it is being won out of India. That’s what I would like to say.
Viraj — Analyst
Okay, just last query on the scd. So electronics, can you give some color on the mix between global supply to STD and domestic customer supply and what kind of a capacity this new. Who is the second line coming in? What kind of scale we can cater to?
Kula Ajith Kumar Rai — Executive Chairman of the Board
Akhilesh, you will take the question?
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
Yes, sure. So right now I think our global exposure is quite small at scd. Whatever the internal procurement that has happened, it will be in single digits of what contribution it is making to the electronic division. But what is positive is the kind of response our customers have had. I think we disclosed also that we won a major digital cluster contract for export business in the US So clearly we’ve. And we’ve also got a lot of customers to come visit us. Multiple off highway customers have already certified our plant for production. So we see a good pipeline there.
But right now the exports is quite small. Having said that, I think what is. Also important here is the strategy of the electronics division. As you know this is a homegrown division work of suprajit technology center. So we have no restrictions on whom. To supply and where to supply and how to supply. A joint venture would have probably led. To a specific customer, specific area, specific region. We don’t have any of that. That’s why what an Akhilesh said, you know, non automotive customers are showing lot of interest. So that’s a very interesting part for us because they are also probably a better margin business than the automotive business. So I think that also adds. And unfortunately of course due to a significant drop in volume from one customer, it took a couple of quarters for us to recover from that. But with these non automotive businesses and also some of the internal requirements of controls division, I think from this quarter. Onwards our degrowth will probably be arrested. And I think that will also help in improving the margins going forward.
Viraj — Analyst
Thank you very much.
operator
Thank you. We take the next question from the line of Gokul Maheshwari from Avriga Capital. You may please proceed.
Gokul Maheshwari — Analyst
Yeah, thank you for the opportunity. I just wanted first as a data point on the SCS business now since the acquisition is now complete and what is the estimated revenues which you would be building in for FY26?
Kula Ajith Kumar Rai — Executive Chairman of the Board
Mohan, will you take the question? Mohan, are you on?
Mohan Srinivasan Nagamangala — Chief Executive Officer
Sorry, I was on mute. Sorry. So basically if I look at it we would be looking at three quarters of the Canada and the China business and the full four quarters of the earlier Morocco and the German business. So put together I would put a ballpark a number of somewhere around close to 35. 30 to 35 million for the current.
Unidentified Speaker
Year I think it would probably that.
Mohan Srinivasan Nagamangala — Chief Executive Officer
Number but for the full year I would say it will be around 40 million actually.
Unidentified Speaker
Yes. Okay.
Gokul Maheshwari — Analyst
This is us, right? 40 million U.S. yeah.
Kula Ajith Kumar Rai — Executive Chairman of the Board
USD. I think probably it’ll be little more. But that’s what it is. Yes.
Gokul Maheshwari — Analyst
Okay. And secondly on Phoenix, just a bit confused when the Q1 was weak. Mohan sir in his opening comments said that this weakness could continue for a while while Ajit sir, you Mentioned that it could turn around in one or two quarters and at the same time we want some export order for US retail chain. So if you could just give that. Will Phoenix business grow this year will be declining or will be flattish for FY26 and perhaps in outlook for 27 also.
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think what’s happening is that in particularly in the Phoenix Lamps business. I think lot of the business is outside of India now in the aftermarket. There is, you know, our markets are. In of course this US new chain. Is a big positive for us. But having said that, these uncertainties are difficult to say. For example, one of our big market for Trifa was Middle east where the distributor would buy not only distribute in Middle east but also supply to Africa. Now that has come to a big. You know, kind of a block in. The last quarter which I think will continue at least for this quarter also. So from the original estimate I think we probably are slightly behind on Phoenix Landscape division. But you know, these aftermarket businesses don’t go away. They might be sort of, you know, distributing the existing quantities and you know, cleaning up their shelves. But when the business comes back, it also comes back in big numbers. So I would say this quarter would be weak at Phoenix lands, but second half is anybody’s guess. We will get to know in another month or so how this whole thing.
Will pan out actually.
Gokul Maheshwari — Analyst
But what else when you’ve done very well is within the last seven, eight quarters the margins for the Phoenix business has been in a double digit trajectory that broadly should continue.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Yeah, I think double digit margin in Phoenix Lamps will continue. The revenue growth is because of this kind of a little setback. I mean we are in a global scenario so it is very difficult to.
Gokul Maheshwari — Analyst
Say how it works out.
Kula Ajith Kumar Rai — Executive Chairman of the Board
But certainly I think the second of Phoenix Lamps division should do better. Please also understand our aftermarket was somewhat weak in this quarter also. But the new scheme starts. They all work on schemes from August. 15Th so till it goes on till. I think January 26th. That is a very critical period for. Phoenix Lamps division in the aftermarket as. Far as India is concerned. So I think we certainly expect that that would be the one that would probably could turn very positive for us if let’s say Trifa brand sales continue. To have some challenges.
Gokul Maheshwari — Analyst
Great sir, thank you so much and all the best. Thank you.
operator
Thank you. We take the next question from the line of Amit Hiranandani from Philip Capital. You may proceed.
Amit Hiranandani — Analyst
Just two bookkeeping question. What was the reason for higher other income in Q1? And secondly the CapEx outlook for the next two fiscal including the SES division.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Sorry, what is the second question?
Amit Hiranandani — Analyst
The CapEx outlook including the CS?
Kula Ajith Kumar Rai — Executive Chairman of the Board
Yeah, the other income is probably, you know it’s just basically relating to our investments. I love, I think Mehdapa can give an offline answer for it but I think it’s basically improvement in those investments returns. I think. In terms of Capex I think we talked about 150, 160 crores but then it’s probably spread out between this year and the next year to some extent. The major portion of it is of course some of them is relating to restart under FCD and other major one is the global, I mean Superior Technology center and some of other, you know, infrastructural projects that we are doing in India. That is a range but it is not just for this year, it will also spread over to next year.
Amit Hiranandani — Analyst
Right. So secondly, if you can help us understand more about the suprajit’s beyond cable strategy and you know, products at present customers and the new lighting addition into this please.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Yeah Aklesh, will you take that question? Akhilesh, you’re mute.
Akhilesh Rai — Chief Strategy Officer, Whole-Time Director
Oh, sorry. So beyond cables is split into three different verticals. You have to understand that our mechanical cables are you know, the lowest and lowest cost and easiest solution to transferring mechanical actuation in any vehicle. And you know, that’s why we supply to every, almost every OEM globally and every tier one also because this requirement of transferring motion is required in all vehicles. Now when it comes to our strategy here, you know we are looking at the electromechanical actuation and the sensor side of the same actuation product. So for example, from speedometer cables we are now doing the digital cluster.
From brake cables we are doing the brake systems. From the throttle cables we do the throttle sensors and from various locking cables that we were doing now we do various solenoid and motor based actuation to lock your power charging or your charging lid or your fuel lid or your steering lock or your seat seat opening and unlocking. These are all now can be done even by actuators. So we give the customer that full range of actuation. And if you look at it in terms of a larger perspective, we basically break into three different areas that we’re focusing on.
One is the brake systems because brake systems is a big opportunity by itself. And the second is electronics and sensors which is completely at our SCD division where we have our own SMT lines. And finally is actuation which is happening at our cable divisions because we do these Cable based actuators for things like seats, where seats fold. For example with GM or a Ford in big SUVs where you press a button and the seat just folds in front of you. This happens to our actuators and it’s not something that’s very popular in India yet, but it’s a standard in US and slowly in Europe.
So we give these kind of actuators to all the global majors. So in these three areas we’re focusing a lot of our effort of tech center development, R and D to become leaders in technology in these areas. And it’s all like chairman said, homegrown technologies that are built in India but built for the world. Hope that answers the question.
Amit Hiranandani — Analyst
Yeah, just follow up on this thing. So EMA sensor, locking system, brakes and electronic actuators. So presently what is the revenue we are having it from this and what, what is the target for your next three years?
Kula Ajith Kumar Rai — Executive Chairman of the Board
We don’t have the breakup breakup of this. You know, we don’t publish it but. But still there’s a lot of potential to grow. It is probably in the high single digit or low double digit kind of region. But basically if you look at it, these are things that end up going across divisions. So therefore it will be a little confusing to give a revenue number there for these kind of product lines.
Amit Hiranandani — Analyst
But these three different verticals go across. Divisions where some breaking products are supplied in are scd, some are done in dcd. Similarly with sensors. Some are done at scd, some are done in electronic division. So it will, you know, it is a bit, I mean maybe we can probably disclose it at some, some point. But right now this is not a disclosed breakup.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Yeah, I think just to add to. What Akles said, I think the electronics division you clearly see the number. So that is seen and you know it and that form the percentage. Whereas the braking product and actuations are currently being disclosed under respective plants where it is being actually manufactured. Because this has been manufactured in multiple. Places at some point in the future I think we did talk about setting. Up a electronic, I mean braking division. A smaller outfit has been now being getting prepped up for that. So quite a bit of it will be made there but also some, quite a bit of that will be done in individual process. So at some point in the future I think probably the breaking division will. Start reporting a separate revenue and profitability. Whereas actuation will probably never be separately. Disclosed simply because I think it truly goes into multiple plants anywhere in the world. So it’s probably we group it under cables only.
Amit Hiranandani — Analyst
Thank you so much.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Thank you.
operator
Thank you. We take the next question from the line of Ravi Purohit from securities Investment Management Private Limited. Please proceed.
Ravi Purohit — Analyst
Gentlemen. Two questions. One is on, you know, from the time that we acquired ldc, right? It’s been I think more than three years now. How has the scale up been like so if let’s say when we acquired LDC and the revenue of LDC business would have been X, what would it be today after let’s say three, four years of our acquisition? And the second question related to again LDC is that when we acquired LDC the acquisition was essentially acquisition of technology and the step up in the kind of products that we are providing, which basically means the new actuation systems basically got added to that.
So can you share some like, you know, some success stories or something where. So if you look at in India, for example, over the last six, seven years, while the number of vehicles sold has not grown that much, but the kit value inside a vehicle for certain things like sunroof systems or lights for example has seen a significant jump. So there are a lot of these changes that are happening in the, in the vehicles that are being sold in India today which basically are increasing. So while the number of vehicles on the road do not increase, the TAM for, for these specific products and kits kind of has seen 2, 3, 4, 5x jump.
So in that sense, can you just share a little more on our experience with LDC since the time we acquired till today?
Kula Ajith Kumar Rai — Executive Chairman of the Board
See, I think Ravi. Today we are sort of keeping SCS apart. LDC by itself has in a sense. Lost its identity as such. So when you are today for example, I’ll give a classic example. When you’re offering, let’s say European customer, we will offer from customer what they want. It could be today from either CFO which is an LDC plant, it could be from Morocco, which is an FCS plant, or from India, which is, or China, wherever. So we see what is the customer requirement. So asking what is the LDC’s growth? I think it has got no relevance anymore. The point is it is up to the customer. So if you really look at it as LDC has grown maybe a little bit, but not much if you look at the LDC entities by itself.
But I think that’s not really the issue. The issue is customer would have probably gone elsewhere and LDC business have gone if we didn’t have this footprint. So if they are not given to cfo, they have gone to given it to India. So we have still have the business within controls division. So I think LDC is part of. A larger I think game plan that we have had now coming to EMEA part of it. I think what we understood after let’s say a year or so of getting into business is that there is only one or two varieties of electromagnetic actuators that they were trying to dish out to customers. I think customers expectations have changed. The STC today is working with the LDC team to completely upgrade the portfolio. Of actuation and actuators. I think that is where we are able to bring again value into the whole system. So with that I think we are going to represent because for this actuators which is currently mostly used in seating and others where we have the presence is not much required in India. But whereas in Europe and US we continue to get the same businesses again and again. But now we are offering certain range of additional actuation. That’s why if you look at it today in two wheelers for example, because of that background we are able to go for a seat actuation or lock actuation in the two wheeler within India.
So that is an extension of that actuation. But I think that is an area where we are now currently focusing. In fact we have a senior person who has joined to take that to the next level. So I think that when with the new range of products are ready we are ready to offer to customers in multiple regions. I suppose I answered most of it. Otherwise let ask me more.
Ravi Purohit — Analyst
That was. Thanks a lot and all the best sir.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Yeah, thank you.
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think anusha, there is 12 o’. Clock.
operator
We take probably one more question. No problem. Due to time constraints we’ll take this as the last question from Aditya Ketan from Swiss Institutional Equities. Please proceed.
Aditya Khetan — Analyst
Yeah, thank you sir for the opportunity. Sir, you mentioned to one participant that in mechanical actuators so we are one. Of the lowest cost. So this. So this benefit of lower cost is it because of some. Some unique production process or the technological edge or is it only because of scale?
Kula Ajith Kumar Rai — Executive Chairman of the Board
I don’t know that whether anyone of us said it’s we are lower cost, we are less competitive as anybody else.
Mohan Srinivasan Nagamangala — Chief Executive Officer
Maybe I can explain it since I said that. So basically you know this is a technology. What I meant was the technology of cables is lower cost than say a technology of pneumatics which is lower cost than the technology of electromechanical actuation. So you know these are the kind of it is a technology related point of cables being the lowest cost. Within that of course we have the highest scale and you know, compared to our competitors in cables we might have certain advantages. But I was just mentioning that the cable is the lowest cost compared to using, you know, hoses and hydraulics and these kind of things.
Aditya Khetan — Analyst
Got it sir. On any idea like onto the Westcon control. So in terms of volumes. So where are we standing today and what are the numbers for this quarter and for FY25 in terms of revenue and EBITDA?
Mohan Srinivasan Nagamangala — Chief Executive Officer
I think Bescorn is more a non automotive business. I think Mohan, you can give some color on what’s happening in the non automotive business. I’m not going into specific numbers. I can just tell you that first things first, there is clear headwind in the non automotive business. Particularly you know, the land, the lawnmowers and snow throwers, those kind of stuff. There is a clear shift in home buyers. Earlier home buyers used to go and buy their own lawnmowers and each individual family used to have their own mowing machine. Now it has gone into a level where larger lawnmowers are being sold but it is being sold to people who contract it and mow the land for multiple houses. Therefore there is a small shift that is happening and the second shift that is happening is from ice engine to the gamification out there also.
So there are two things which are what I would call as headwinds for us. Having said that, we always look at it as an opportunity as to what we can do. So we have started moving into rotary sensors, throttle sensors. Therefore we have started working on rotary throttle sensors which we have already started giving to one of the customers. And also we are diversifying beyond what we have been doing at PESCOM by going into electronics. Therefore these are the two ways that I can look at the basic cable based system over time is going to morph.
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think what Mohan has said, I think you know Westcon. I rather like to put it more on generalized. Non automotive business hasn’t grown actually I would say it’s probably slightly regrown within the controls division. But controls division has still grown because of the automotive growth within again a division which a business which is actually not growing but we have outpaced. So on a consolidated basis SCD has got both automotive and non automotive. We are still growing the controls division business. Despite non automotive part of that business. It actually has de grown. And you must realize that with all that stuff westcon has done a very, very good job of operational excellence and they continue to perform in double digit EBITDA margins.
Aditya Khetan — Analyst
Got it. Thank you for that explanation Such as. One last question in ses. Sir, we have completed this. So the second tranche. So what is the asset acquisition figure? Sir, if you can share.
Kula Ajith Kumar Rai — Executive Chairman of the Board
I think you can. I mean this is all recently acquired number. I think you may can get that data maybe from later on.
Aditya Khetan — Analyst
Got it. Thank you.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Two parts. So just a request in future quarter numbers if you can share the segment wise assets and. And liabilities. So that would be more beneficial to understand the invested capital in each of the business. Just a refresher.
Aditya Khetan — Analyst
Yeah. Thank you very.
Kula Ajith Kumar Rai — Executive Chairman of the Board
We got your point. Okay. Let’s see what we can do. And thank you all. We appreciate your continued interest and logging into our Q1 result presentation. I would also like to thank Anandrati and Momukshan team and Anushka for organizing and handling this call. Thank you very much. Have a good day.
operator
Thank you. Thank you. Members of the management. Due to interest of time, we take that as the last question. And on behalf of Anandrati share and Stockbrokers Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Kula Ajith Kumar Rai — Executive Chairman of the Board
Thank you.