Tube Investments of India Ltd (NSE: TIINDIA) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Vellayan Subbiah — Executive Vice Chairman
Sivakumar M — Vice President & Division Head – MFPD
Jalaj Gupta — Chief Executive Officer
Analysts:
Joseph George — Analyst
Sujit Jain — Analyst
Anupam Gupta — Analyst
Salil Desai — Analyst
Ajox Frederick — Analyst
Jinesh Gandhi — Analyst
Vipul Shah — Analyst
Prithvi Raj Earle — Analyst
Anish Rankawat — Analyst
Presentation:
operator
Please note that this call is being recorded. I now hand the conference over to Mr. Joseph George from IFL Capital. Thank you. And over to you, Sir.
Joseph George — Analyst
Thank you, Inba on behalf of IFL Capital, I welcome you all to the 3Q FY26 results conference call of Tube Investments of India Ltd. From the management, we have with us Mr. Mam Arunachalam, Executive Chairman Mr. Velayan Subaya Vice Chairman Mr. Mukesh Ahuja Managing Director Mr. A. N. Mayapin, Chief Financial Officer Mr. Shivdeep Singh Jammu Divisional Head TPI Mr. M. Shivakumar, Division Head MFPD Mr. Yu Rajagopal, Division Head, TI Cycles. We also have with us Mr. Jalaj Gupta, Managing Director, TI Clean Mobility Mr. S. Gopalakrishnan, CFO TI Clean Mobility and Mr. N. Govindrajan, CEO 3Expert Innoventure.
I will now hand over the call to the management for opening remarks post which we will have. Q and A.
Vellayan Subbiah — Executive Vice Chairman
Yeah. Thank you, Judith. The board of TI met today and we approved the financial results for the quarter ended December 31, 2025. The board also declared an interim dividend of Rupees 2 per share for the financial year 2025 26. Standalone results Revenue for Q3 was at 2,152 crores compared to 1,910 for the same period previous year. The PBT before exceptional items for the quarter was at 268 crores compared with 212 crores for for the same period previous year. A growth of 26%. And ROIC annualized was at 49% which is compared with 43% for the same period the previous year.
Free cash flow for the business for the quarter was at 248 crores in terms of the individual businesses. For the engineering business, the revenue for the quarter was at 1,438 crores compared to the 1,212 crores in the corresponding quarter. PBIT for the quarter was at 196 as against 156 crores in the corresponding quarter the previous year. Metal form revenue was at 408 compared with 400 and PBIT was at 46 compared to 40 in the corresponding quarter. For our mobility business, revenue was at 183 compared with 142 and the PBIT for the quarter was at 4 crores as against a loss of 0.8 crores in the corresponding quarter the previous year.
And for other businesses our revenue was at 214 compared to 252 and PBIT was at 19 as against 11 crores in the corresponding quarter of the previous year. From a consolidated perspective, our consolidated revenue for the quarter was at 5801 crores as against 4812. The profit before share of profit of associate joint venture, exception items and tax was at 502 as against 427 in the corresponding quarter. CG Power registered a consolidated revenue of 3175 crores for the quarter as against 2516. And again the profit for the quarter was at 420 as against 335. Shanti Years registered a revenue of 117 crores as against 158 crores and profit was at 23 crores as against 35 crores in the corresponding quarter.
So I’ll stop with that. Be happy to turn it over to all of you for Q and A.
operator
Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may click on the raise hand icon from the participant tab on your screen. We will wait for a moment while the question queue assembles. We take the first question from Sujith Jain of Bajaj Life. Please go ahead.
Sujit Jain — Analyst
Yeah, hi. So, Niza, question to Velayan. From the time you took over from the professional manager and then handed over the button to another professional manager after taking the company to new heights and including introducing TI2 and TI3 strategies, we’ve had some phenomenal successes and as well as some things which would have tried and tested us and without much success so far. Wouldn’t it not be an opportunity for you now to consider some consolidation? Meaning as much as attack is a. Is a weapon, retreat also could be a powerful tool to basically consolidate your time and your attention and your management focus on few things and probably eliminate things which may not be working.
So that what then remains, you can double down on and continue with your ti2 and ti3.
Vellayan Subbiah — Executive Vice Chairman
Thanks. Yeah. Okay. Sujit? No, thanks. I think the question’s a good one, you know, so actually if you look at what we have broadly, right, in terms of what’s remaining. So I think really the question is more on kind of the adjacency or kind of the new businesses that we’ve gotten into. Right. So. So if I were to just kind of break that down, you’ve got TI clean mobility, you’ve got the medical business, you’ve got three expert. And you know, obviously CG is on the other side, but I would say broadly, these are the businesses. Shanti. No. Yeah, so Shanti and CG I think are okay, right. I don’t think kind of those are kind of fit into your question. I’m assuming, Sujith, that you’re asking mainly around these businesses. Is that fair, Sujith? That’s right.
Sujit Jain — Analyst
So it’s about TI2.
Vellayan Subbiah — Executive Vice Chairman
Yeah, yeah, yeah. So that’s what. Right.
Sujit Jain — Analyst
So we’re basically phenomenal success without doubt.
Vellayan Subbiah — Executive Vice Chairman
Yeah, yeah. So we’re talking about TI Clean Mobility, you know, TI Clean Mobility, TI Medical and three Expert. These are the three areas. Right. So let me kind of just address them one by one. Right. So I mean, so to your question, you know, broadly, I like I talk to each of the three businesses one, one by one. Right. The so on. Obviously the largest one is TI Clean Mobility. And there what I would say is that, you know, I would say that we went through things that are definite learning curve. Right. I mean I made some mistakes kind of, you know, I’m not perhaps performed as well as we could have in certain segments.
And perhaps I also under thought a bit as to kind of what it would take to kind of build out, you know, build out the business. Right. But broadly what I would say is that, you know, we’re at the stage when capacity has been built out and we’re beginning to see, you know, green shoots in, you know, definitely in kind of in a lot of the new products that we’re basically starting off on. So I would actually say that now is the time to double down on that business. It’s not the time to kind of back off and because the fundamental thesis, Sujith to me is still intact, right.
Which is like all of the IC components and IC products in these businesses are going to get replaced over time. So I would definitely say that from that perspective, I see it as a business to double down on right now and obviously kind of, you know, we still have a very high level of conviction that, you know, we will kind of get, get there though it is getting a bit more delayed than we thought it would. And when I say get there, I mean obviously the first step is just EBITDA and Cash Flow Breakeven and then the next stage will be, you know, obviously getting to a level of profitability in that business.
The. And then the second is on three Expert, which is, you know, in the CDMO space. See, the, the big challenge in three Expert was actually the building out of the plant. Right. Because there are two parts of that business. One is the. The development side, one’s the manufacturing side. The manufacturing side is actually the side that brings in the revenue and scale and unfortunately we got caught in getting permissions to build out the facilities. And now we’ve got, you know, pretty much everything, including kind of, you know, all the, all the consents and approval needed.
So you know, in the next three months, basically we will start being able to produce and then still we have like the certification cycle which fairly long that business. So the, the seeding of that business kind of takes a fair amount of time and I think it got delayed by almost, I would say more than 18 months because of permissions for that facility in Andhra Pradesh. So that’s the challenge with that business. And so we have to at least give it that time to perform. Right. And then the third obviously is DI Medical. And there I would say that, you know, it’s a business that has opportunity but obviously kind of, I think the learning curve for us on that business has been that the number of targets to acquire in India have been limited.
Right. So again we kind of get posed with a question of how do we scale it up because the number of targets are limited. So I would say that. Are we. So your question is valid. I understand where you’re coming from. Is it time to consolidate all or not? But I still feel like these three are all still valid. TI2 plays, they’re just taking longer, honestly. TI2 is taking longer than I thought it would take. Right. And but that doesn’t mean, see a lot of the things getting into new SE sectors like this. Right. There haven’t been that many people who have entered in the auto sector and kind of have scaled, you know, starting the novo.
So some of these things just take time. Right. And I think that Sujith, you know, as long as my conviction level stays high, you know, we will continue to kind of invest especially in these three businesses and looking to scale them out.
Sujit Jain — Analyst
Sure. And then coming back to, you know, our attention again back to our main business, the core business, engineering and metal forming, which because the overall auto industry post GST cut has got a fill in. Can you speak about some of the levers that we were deploying in terms of like we’ve mentioned, you know, export taking up to a higher percentage, same client, higher revenues, sitting more clients, etc. So till the time TI2 plays out, actually TI1 again, you know, propels the engine, correct?
Vellayan Subbiah — Executive Vice Chairman
Yeah. So as you can see, we’ve had good performance in the engineering business. Right. Now the one thing Sujith, that’s been interesting is that where we thought exports would kind of drive it actually we’ve seen the opposite because you know, Europe demand has been weak and us, you know, between kind of tariffs and everything else, like on the engineering side, we’re still shut out because of section 232. So we basically still have a 50% effective duty going into, into the U.S. right. So till some of those things structurally change, you know, export growth has not been to the level we want it, but we’re definitely seeing, you know, domestic growth be offering us kind of enough growth opportunities in these businesses.
Right. So that’s. So export as a lever is not kind of played out but domestic growth levers and we’re continuing with plant expansions there will continue to kind of allow us to grow more. So on the engineering side, you can see fairly strong results for the tubes business. And I do think that we will see that performance continue for the foreseeable future. So that provides us with kind of with, you know, with good impetus. So I would definitely say that we’re seeing significant growth opportunities. So we’ve seen kind of, if you take that organic growth business, organic business in TI1 where we thought it would be like more like 6 to 9%, we’ve seen double digit growth in those businesses.
Right. So that’s what’s giving. I mean so Sujith, obviously that is helping from a performance perspective as well.
Sujit Jain — Analyst
And one last question. In metal forming, one of your clients got listed the Korean company. So if they kind of do well, will we have more opportunities with them to actually grow with them and do better there?
Vellayan Subbiah — Executive Vice Chairman
Yeah, Sujith, your question is very right. If one of the Korean customer does, obviously we do. No, he saying is one. Yeah, okay.
Sivakumar M — Vice President & Division Head – MFPD
Surely we’ll do well. And at the same time we are spending time on building capabilities for some other customers as well as some new product lines in the mapd. Obviously it’ll take about a year’s time so that maybe even if my customer is not doing well, how we can. Do well as a company? So those efforts are on and I am hopeful by next year it should give some result.
Sujit Jain — Analyst
Sure. Thank you. All the best to you. Can I have one more question or should I get right in the queue?
Vellayan Subbiah — Executive Vice Chairman
So you may proceed. You may, you may proceed. So it’s fine.
Sujit Jain — Analyst
Yeah, yeah. So and this question is since we are a parent to cgpa, which is exceedingly doing well, but just you know, push the envelope further there. You’ve hired a CEO in his previous avatar in the company that he worked with services was a significant portion of that entity close to 30% when we last Met him and he’s cognizant of the fact services of CG Power should be like a 1,2% business. Could be kind of double down there as well as a leverage.
Vellayan Subbiah — Executive Vice Chairman
Yeah. So Sujit definitely Services is a big lever there. So. And we’re actually, we’re now in the process of recruiting one or two key people to basically drive the growth of that business. My sense is that that should be. Yeah, so yes, so we are looking at kind of growing that business. First the team will come on board and then we’ll start driving that growth which should start happening. So at least the team should be on board in the first quarter of 2027. FY2000.
Sujit Jain — Analyst
Thank you.
Vellayan Subbiah — Executive Vice Chairman
Yeah, thanks.
operator
Thank you. A quick reminder to our participants, if you wish to ask a question you may click on the raise hand icon. We’ll take the next question from Joseph George of iifl. Please go ahead.
Joseph George — Analyst
Thank you. So I have two, three questions. One is on the railway business. You know the last call you had mentioned that the business commencement has been had pushed out from four QFI 26 to maybe early, you know, FY27. Just want to check whether that is on track in terms of timeline.
Sivakumar M — Vice President & Division Head – MFPD
So Joseph, thanks for the question. Your observation is right. That project is little but running delayed and prototype samples are getting submitted between March and April, maybe quarter one and in March it’ll get submitted and based on the prototype samples. And that company is also developing the product first time. So we are hopeful F527 should be better.
Joseph George — Analyst
Sure, thanks. The next question that I had was, you know, typically every quarter you give out the volume growth in the engineering segment. So if you can just help us with that number, it’ll be great.
Sivakumar M — Vice President & Division Head – MFPD
So on YTD basis it’s double digit. That’s what we share and which is going to be reflecting in the results also what we segmental results we give it.
Joseph George — Analyst
Sure. The last question that I had was in the 2Q call, you know, you talked about a potential acquisition. The indicative number given was about 200 to 300 cross. I just wanted to check if there’s an update on that and what space are you looking at etc.
Sivakumar M — Vice President & Division Head – MFPD
So Joseph, like what we shared last time. So this is a continuous work. We do it. So there is no definitive timeline but we can give it to acquisition as a possibility. So we are looking into the market and whenever we find there is some suitable possibility we will surely share with all of you.
Joseph George — Analyst
Great, thanks. That’s all I have.
operator
Thank you. Any participant who wishes to ask A question may click on the raise hand icon. We have the next question from Anupam Gupta. Please go ahead.
Anupam Gupta — Analyst
Yeah, hi. Hello. Am I audible?
operator
Yes sir.
Anupam Gupta — Analyst
Yeah, yeah. So Belen, on your first reply, which you, which where you talked about TI2 and maybe doubling down on the EV business given that the losses are continuing and earlier we had said that we stay at that 750 crore investment which you had done initially. So incrementally, let’s say over the next couple of years, let’s say if the break even is pushed out, let’s say one, one and a half years down the line, what sort of incremental investments are you okay doing from the parent balance sheet incrementally in the EV business?
Vellayan Subbiah — Executive Vice Chairman
Yeah, Sonupam, I would say that, you know, it’ll definitely be at least 500 crores and it could be, you know. So my sense is the range is 500 to 750 crores.
Anupam Gupta — Analyst
Okay.
Vellayan Subbiah — Executive Vice Chairman
From the parent balance sheet. Understand. And so you’re right. Which is. I did read it raw. I mean I definitely read it wrong. Right. So that’s why I said, I mean it’s taking longer than we expected. But you’re right. So. But 500 to 750 crores is the range.
Anupam Gupta — Analyst
Yeah, understand. And just to maybe get slightly more color on this. So let’s say in the last couple of years when we came to the market and all the products which we launched we were almost, let’s say the early entrance in three wheelers as well as in trucks. Now when we are trying to rectify whatever mistakes we did, now we see that the incumbents are much more aggressive in terms of launches, in terms of the features with their offering. So what incrementally different do you plan to do to maybe get back on track in the EB business?
Vellayan Subbiah — Executive Vice Chairman
Obviously the strategy is going to be different for different products. Right. So where we made mistakes and where the incomers have now taken the lead has been in the three wheeler side. Right. So that’s in that business. Basically the, the objective is to kind of bring down, you know, our cost structure so that we be like the product, you know, if we kind of, again we’ll get into a lot of specifics but basically you have like three, three sets of segments in there, right. In the L5M category and one’s 9 kilowatt, one’s 10.6 and one’s 12, about 12 plus.
And right now predominantly Mahindra and us are in the 10.6 category. So obviously what we need to do is make our product more competitive in that category and then look at products in the other categories. Right. So kind of with. Without kind of going through like, you know, huge amounts on Capex, which is the way we’re looking at it. So those are the two focus areas there. The good thing is that all the product issues are behind us. Right. So it’s basically now it’s just focused on, you know, again, kind of developing stronger relationships with the channel and beginning to push out on sales.
Now if you take the small commercial vehicle, there’s been very good reception to the product. And we’re still early in the sense that there are right now three players in that segment, which is basically Ashok Leland, us, and, and then. So I think it. Sorry to say something on.
Anupam Gupta — Analyst
No, no, please go ahead.
Vellayan Subbiah — Executive Vice Chairman
Yeah, yeah, So I think that. So there, there’s still an opportunity to. Because it’s early days and then their early adoption just getting started. But the products are solid product. It’s very good and beginning to scale well. And then on MNHCV there I would say that, you know, still, you know, we’ve got kind of over. We’re over 40% of the products sold in the market today. And there what’s happening is we’re beginning to develop use cases. That’s how it’s happened. Right. We actually kind of like really work to develop the use cases for the cement segment.
Now cement is picking up, so we have to do this one. I mean, so basically to create adoption here, we have to kind of go one segment. Many of segments adopted a time is going to determine kind of how quickly the product scales. Right. So I think in each one the strategy is slightly different.
Anupam Gupta — Analyst
Sure. Understood. And just one last question. So. So given that you have to have so much focus on reviving the three new segments, will it be right to assume that you will not incrementally be wanting to take anything new under ti or you are still open to adding this stuff in TI2 or TI3?
Vellayan Subbiah — Executive Vice Chairman
Yeah, so I think that I would say that right now definitely, you know, Sujith’s point is also valid, which is it’s unlikely we’ll do anything significant in TI2 anymore. Right. So I think TI3 is just TI3. If something were there, it would still be open to. But I would say definitely there’s no thinking of doing so much significant and TI2.
Anupam Gupta — Analyst
Anyway. That’S all for myself. Thank you.
operator
Thank you. That question was from Mr. Anupam Gupta from HDFC Mutual Fund. We now move to our next question. That’s from Salil Desai of Marcellus Investment managers, please go ahead.
Salil Desai — Analyst
Thank you. Yeah. The first question, you know, if, if we could share the volumes in each of these electric vehicle categories for the quarter.
Vellayan Subbiah — Executive Vice Chairman
The registrations. Okay. Have we shared volume? We have.
Sivakumar M — Vice President & Division Head – MFPD
For primary volumes we have. Okay. Yeah. Okay. So the volume for quarter three for the big trucks, MHCV 56 numbers. For three wheeler business, 1816 numbers. For small commercial vehicles, 301 number. And for, for E tractor, 29 number.
Salil Desai — Analyst
Thank you. Yeah, I mean, I see. Well, and you’re saying that the small commercial vehicles reception has been very solid. Great. My second question is, you know, on, on the engineering segment right now there is a clear improvement there, but in mfp, I mean, I’m assuming that there’s a fair bit of overlap in, you know, end user industries, maybe even some customers. So why is that there’s a divergence in the growth rates between the two.
Sivakumar M — Vice President & Division Head – MFPD
Your observation is right. Actually, in MFPD we are having today two challenges. What we are facing is one is railway business. Second, particularly whatever exports we do in MFPD for the European market. So European markets are going little bit weaker. That’s why there’s a little bit divergence. But from domestic market size other than railway, it’s going good.
Salil Desai — Analyst
All right, great. And our new plants, any progress on them? Have they started commercial operations? I am assuming that you would have had something in this quarter, right?
Sivakumar M — Vice President & Division Head – MFPD
You’re talking about aging division.
Salil Desai — Analyst
Yeah, the plant in the west, of.
Sivakumar M — Vice President & Division Head – MFPD
Course that is also little bit deferred. We are maybe hoping, I think it’ll get delayed by six to nine months time.
Salil Desai — Analyst
Any particular reasons why that is happening?
Sivakumar M — Vice President & Division Head – MFPD
Maybe let’s say we because machine suppliers are facing some challenges and that’s why we. It is getting very critical.
Salil Desai — Analyst
I see. All right, great. My next question I had, you know, this was in Shanti Gears. If one of you could help us understand is that revenues have been declining sequentially for at least about four to six quarters now. So what is really happening there and if you can share of how the business would shape up, let’s say in the next couple of years.
Sivakumar M — Vice President & Division Head – MFPD
So maybe on a long term basis. Sure. We are always bullish about Shanti gear business. But in the short run order book is a challenge. And there, you know, the group philosophy is always to always keep eye on the margins and which we don’t want to dilute. So we see little bit slowdown in the order book and also we feel it’s a temporary in nature, maybe another one or two quarters and we provide with that.
Salil Desai — Analyst
So just to make sure I understand, you’re saying the, the market is now more competitive in and orders are fewer so you are not kind of compromising on margins and letting revenues go. Is that how.
Sivakumar M — Vice President & Division Head – MFPD
Yes, that’s right. That’s right.
Salil Desai — Analyst
All right, great. Thank you. I’ll come back in the queue.
operator
Thank you. Our next question is from Ajax Frederick from Sundaram Mutual Fund. Please go ahead.
Ajox Frederick — Analyst
Hello.
operator
Yes, please go ahead.
Ajox Frederick — Analyst
Yeah. So just one question on engineering. We’ve been slow for a bit of. Time and now we are turning things around. Does it have to do with say. New customers, new products? What’s, what’s kind of happening there?
Sivakumar M — Vice President & Division Head – MFPD
So like we shared in the past, it’s a combination of two, three factors. One is obviously the after GST cut mark domestic market is absolutely bullish. So we have participated that and also you’re aware of we have done a lot of regional balancing as a part of our strategy exercise. So a plant for CRS is putting in Nasik and a plant for another two plant for we have put in Fulton. So both maybe, let’s say the capacities are getting utilized and we are hopeful by quarter two of next year that will get fully booked. So and we are participating whatever EV conversions are happening with the high strength material and maybe wherever our customers are, China plus one strategies are there.
So combination of all is helping engineering business to grow. But at the same time exports is right now a challenge. Hopefully this trade barrier and all these things improve so that further add to current growth levels.
Ajox Frederick — Analyst
That’s great, sir. So the margins can still get better as our capacities improve.
Sivakumar M — Vice President & Division Head – MFPD
Internally we are dragging.
Ajox Frederick — Analyst
Good. Or it’s a. Thanks. That’s it for me.
operator
Thank you. Our next question is from Janesh Gandhi of Oak Lane Capital. Please go ahead. Mr. Gandhi, could you please unmute your microphone and ask your question?
Jinesh Gandhi — Analyst
Yeah, Am I audible now?
operator
Yes, Sir.
Jinesh Gandhi — Analyst
Yeah. Hi, Mr. Villain, my question pertains to your comment on exports which you talked about on the tariff side. So now with the recent change on the US tariff, would we expect our duties to come down to 18% or under section 32? 232, it will be still at 25%.
Vellayan Subbiah — Executive Vice Chairman
So there’s been no indication right now that section 232, the duty of 50% is going to come down. So the current stand is king. That that sticks. Okay. So obviously there’s still been and there has been active lobbying by India to try to bring it down, but there does not seem to be any indication of that yet. Yeah. So obviously kind of this is outside of that 50 to 18 regime. Right. 232 has been a separate track and 232 it doesn’t look like has been touched for pretty much all of the products that were in still remaining.
Jinesh Gandhi — Analyst
Okay, so it’s not even 25.
Vellayan Subbiah — Executive Vice Chairman
Yeah, you’re right. So Janesh, you’re right. That 50% sticks for us.
Jinesh Gandhi — Analyst
Got it. And secondly, with this UFTA talking about bringing duties down to zero from exports from India, do you see Europe as a relatively bigger opportunity which was not fully tapped so far and with this change in duties as and when it happens in next course of next 12 to 15 months we can see substantial growth and ramp up in the European markets.
Sivakumar M — Vice President & Division Head – MFPD
Yes, your observation is right. Europe is a big market and like you rightly said that it’ll have a lag of around 12 to 15 months. And also there is one more challenge. Maybe there are non trade barrier also are there in terms of CBOM and all things which adds further challenge. I’m hopeful maybe our government is negotiating that if that happens. Yes, it’s a big market.
Jinesh Gandhi — Analyst
Got it.
Vellayan Subbiah — Executive Vice Chairman
Europe’s definitely been a huge opportunity for us but they’ve also had all kinds of barriers both on the volume side and on. On an NT side and not.
Jinesh Gandhi — Analyst
Right, right. No, that’s fair point. And last question is on three wheeler side. So now we have had a sizable presence in some of the key markets on the E3 wheeler side. So some of the older markets in south India which we entered first, how has been our ramp up there and what has been our market share in those markets on E3 Wheeler space. And second part question to E3 Wheeler is what percentage of the addressable market we are now present in.
Jalaj Gupta — Chief Executive Officer
Okay, so I’ll take the, the second question first. So today we cater to about. So we have about 117 dealerships in E3 wheeler and we cater to in the L5M category about 65 to 70% of the Tiv is what this particular 117 dealers they cater to within these dealerships. Also we are trying to, you know, have a focused dealer approach to ramp up our volumes which is to say about 52 to 55. These of these dealers is what we are primarily focusing more on which can give us about let’s say 75% of the volumes that we do to the first part of your question.
Yes, in south our relative presence is better as compared to in terms of market share vis a vis north, east and west. But in south the electric industry transition from ICE has not been you know, as much as it has been in the other parts of the country. So we still continue to be relatively strong in south vis a vis other markets. And that places us well as. And when the transition happens, it will auger well for us.
Jinesh Gandhi — Analyst
Got it, Got it. Great. Thanks. And all the best.
operator
Thank you. We take the next question from Vipul Shah of Sangal Investments. Please go ahead.
Vipul Shah — Analyst
Hi sir. Am I audible?
operator
You’re audible, sir. Please go ahead.
Vipul Shah — Analyst
Yes. So up to.
operator
Mr. Shah. I’m sorry, you’re on mute.
Vipul Shah — Analyst
Yeah. Am I audible?
operator
Yes. Yes you are. So.
Vipul Shah — Analyst
So after all four electrical vehicle products, which one you have the highest confidence that it will turn around in next 12 to 18 months.
Vellayan Subbiah — Executive Vice Chairman
So I definitely say that the two which will kind of that we are pushing towards, you know, break even in the next 12 to 18 will be in the heavy vehicles and in the three wheeler because those who had the longest track records and then that will be followed by SCV and then track.
Vipul Shah — Analyst
Okay. And sir, you said that you will be infusing 500 to 700 crores in electrical business. So that that will be at the ti clean mobility level overall. So our contribution will be less. It should be proportionate to our equity. Right.
Vellayan Subbiah — Executive Vice Chairman
So we will. We will. We will. Basically, I mean that’s a discussion we’ll have in terms of the exact structure. But we’ll be. We look at it in both models, right? Like whether we put in kind of increase our stake or whether we get, you know, kind of proportional contributions.
Vipul Shah — Analyst
And what is our current capacity utilization in engineering division? So why I’m asking is are we planning any capex over next 12 months in that division, since that division is started performing.
Sivakumar M — Vice President & Division Head – MFPD
Like we shared in the earlier calls, we are covered for FY27 fully and we always access this capacity utilization, the future demand on regular basis. So if anything is required for FY28, we’ll put up the capex.
Vipul Shah — Analyst
Thank you. And all the best for the future. Thank you.
Sivakumar M — Vice President & Division Head – MFPD
Thank you.
operator
Thank you. Our next question is from Pratviraj Earl from Unifi Capital. Please go ahead.
Prithvi Raj Earle — Analyst
Hi, I just have a couple of questions on evs. If you look at three wheelers, you have already increased the distribution reach, you have corrected your products. What else you think you can do to drive volumes? Because I’m assuming, you know, you have been doing whatever you can. Is there anything else you can do to push the volumes?
Vellayan Subbiah — Executive Vice Chairman
Basically, yes, there is. There are two sets of things we can do. The one is that we’re actively focused on kind of the bom cost reduction side to make. Because basically to make the product more complex, competitive from a pricing perspective, that is one thing that we’re definitely focused on. And then obviously the second is when you think of the channel and the network, I’m basically kind of building that out as. So it’s kind of comparative to what are competitions. These are the two areas.
Prithvi Raj Earle — Analyst
But I’m assuming this V cost reduction will take a lot of time. Right. It’s not going to be easy.
Vellayan Subbiah — Executive Vice Chairman
Doesn’t. No, it doesn’t have to be. Doesn’t have to take that long. Right. We’ve been working on it for a while. Right. It’s not like we’re starting.
Prithvi Raj Earle — Analyst
Okay. And then obviously in the first question you explained in detail about each of the segments. But if I have to ask where do you take a call that okay, enough of this investments and you would like to end it. I mean, after how many. After what kind of investments?
Vellayan Subbiah — Executive Vice Chairman
Yeah, so I don’t want to give like a deterministic answer to that now, which is like basically the way I still have a lot of conviction that that IC is basically going to move to ev. Right. I’ve always said we don’t know the rate at which acceleration is going to happen. So basically we’re still very convinced that this is a segment that we have to basically invest in because we see the opportunity in these platforms. So we’ll continue to invest. So I think that’s the way we’re looking at it right now.
Prithvi Raj Earle — Analyst
Okay, that’s all from my side. Thanks.
Vellayan Subbiah — Executive Vice Chairman
Thank you.
operator
Thank you very much. As there are no further questions in the queue, that brings us to the end of our Q and A session. I’m sorry, actually, we just got a participant in the queue. That’s Mr. Salil Desai from Masterless Investment Managers. You may go ahead, sir, with your question.
Salil Desai — Analyst
Thank you again. Can you share an Update on the L3 4A? I think about 6 months back you mentioned that it is a space that you’re looking at and if any progress has been made, any Capex or volume targets.
Jalaj Gupta — Chief Executive Officer
So Salil, at this point of time we have seeded in certain volumes and only in select markets and we are testing out the product in terms of, you know, product acceptability, price points, etc. As you would know that this market has been dominated, you know, by the typical lead asset players and there are more than 250 players in the market, hugely fragmented market. So we want to be very sure what we are getting into. So at this point of time, it is just at a Seeding in few markets and basis the feedback that we get over next quarter or so we will take a call on the future of the product and what our GTM strategy would be.
Salil Desai — Analyst
Understood. Thank you so much.
operator
Thank you. We have another follow up question, sir from Prithviraj of Unified Capital. Please go ahead.
Prithvi Raj Earle — Analyst
Sorry, I just have one bookkeeping question. What are the losses in EV during the quarter?
Jalaj Gupta — Chief Executive Officer
Yeah, see during the quarter it is 164 crores. It’s already designed 164.31 crores.
Prithvi Raj Earle — Analyst
Okay, fine. Thanks.
operator
Thank you. We have a next question from Anish Rankavat of UTI Mutual Fund. Please go ahead.
Anish Rankawat — Analyst
Yeah. Hi sir, one question. The cycle segment seems to be doing really well this year. While I believe last couple of quarters were cyclical in terms of seasonality, it seems to be maintaining in Q3 as well. What is driving this and how do you see it going forward?
Sivakumar M — Vice President & Division Head – MFPD
So like we shared the last year we are trying to develop new products which at least takes care to some extent the cyclicity. So E Bike was one of them last year. If you see our E Bike sales were almost nothing and this year it has picked up pretty well. And still we have to go long way in that particular. And second, a focus on the fitness business and the space business. What we are trying to bring it that these three initiatives will surely help us to mitigate to some extent this cyclicity in this business.
Anish Rankawat — Analyst
E Cycles, what kind of TAM are we looking at and what kind of penetration does E Cycles have currently in India?
Sivakumar M — Vice President & Division Head – MFPD
So we had just started and like we let’s say in EV businesses we are discussing the adoption level is going to pick up like we see in the EV vehicles. Similarly we see in the EV bicycles. Also the adoption level is going to pick up like China has done a good job in particular that we also see at some point of time consumers are going to definitely need a segment where they don’t want to buy a bicycle and as well as they can’t afford the two wheeler. So in between segment there is a segment going to emerge and we are trying to participate that and how much time will be there.
Vellayan Subbiah — Executive Vice Chairman
I think the TAM is like not deterministic right now. Right. So like it’s like a conversion of a segment. Right. So it’s like I think all of these things is not like there’s any data or kind of anything that says the dam is going to be slow.
Anish Rankawat — Analyst
All right, thank you for that. Thank you very much.
Vellayan Subbiah — Executive Vice Chairman
Thank you.
operator
Thank you ladies and gentlemen. That was the last question on behalf of IIFL Capital Services limited that concludes today’s conference. Thank you for joining us. You may now click on the leave icon to exit the meeting. Thank you all for your participation. It.