Tube Investments of India Ltd (NSE: TIINDIA) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Mukesh Ahuja — Managing Director
Jalaj Gupta — Managing Director
AN Meyyappan — Chief Financial Officer
Analysts:
Anupam Gupta — Analyst
Rushabh Shah — Analyst
Vipulkumar Shah — Analyst
Prithvi Raj Earle — Analyst
Gnanasundaram Saminathan — Analyst
Salil Desai — Analyst
Namit Arora — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Tube Investments Q4 FY ’25 Earnings Conference Call hosted by IIFL Capital Services Limited. Please note all participants are currently in listen-only mode. There will be an opportunity to ask questions following the conclusion of the management’s opening remarks. Please note, this conference is being recorded. I now hand the conference over to Mr Gupta from IIFL Capital. Over to you, sir.
Anupam Gupta — Analyst
Yeah. Thanks,, and welcome everyone to the 4th-quarter FY ’25 conference call for TB Investments of India. From the management, we’ll have Mr Arunaj, Executive Chairman for the company; Mr Muke Shahuja, Managing Director; Mr Ian, Chief Financial Officer for TI; and Mr Shivdeek Shivdeep Singh Jammu, Division Head for TPI; Mr Shiv Kumar, Division Head for the Metal Product; Mr Yu Raji Gopal, Division Head for the TI Cycles business; and Mr Jalaj Gupta, CEO for TI Clean Mobility Private Limited. To start-off with, I’ll hand it over to Mr Hujat for the opening comments and then we’ll have the Q&A.
Mukesh Ahuja — Managing Director
Thank you,, and good morning to all. From management side, just a commentary. The Board of Directors of Tube Investment of India Limited met and approved the financial results of quarter and year ended 31st March 2025. The Board has declared an interim dividend of INR2 per share in February ’25 and the same was paid to the shareholders in March ’25. The Board has now recommended a final dividend of INR1.5 per share for the financial year at ’24 just a snapshot of standalone results for Q4 and the full-year. Revenue for Q4 was INR1,937 crore against INR1962 crores for the same quarter previous year. Revenue for the full-year was INR790 crores against INR7611 crores of the previous year. EBIT before exceptional item for the quarter was INR896 crores and the year was INR1,544 crores. During the quarter, the company has recognized a fair-value gain of INR569 crores in its P&L towards investment in CCPS of the TIE Clean Mobility Private Limited. PBT before exceptional items and the CCPS fair-value gain for the quarter was INR327 crore against INR318 crores for the same quarter previous year. PBT before exceptional items and CCPS fair-value gain for the full-year was INR975 crore against INR970 crore for the previous year. ROIC at 44% for the year ended 31st March ’25 as against 54% in the previous year. Free-cash flow for the quarter was INR225 crores and the cumulative free-cash flow for the year is INR397 crore, which was a 55% of the PAT. This is excluding fair-value gain. Coming to the respective businesses, engineering, the revenue for the quarter was INR1,229 crore compared with INR1276 crore in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was INR142 crore against INR160 crore in the corresponding quarter of the previous year. The revenue for the full-year was INR5,029 crore compared with INR4921 crore in the previous year. Profit before interest and tax for the full-year was INR617 crore, which is same as the last year. Coming to metal form products, the revenue for the quarter was INR43 crores compared with INR386 crores in the corresponding quarter of the previous year. Profit before and interest and tax for the quarter was INR39 crores as against INR42 crores in the corresponding quarter of the previous year. Revenue for the full-year was INR1565 crore compared with INR1519 crore in the previous year. Profit before interest and tax for the whole year was INR164 crore against INR187 crore in the previous year. Coming to mobility, the revenue for the quarter was INR181 crore compared with INR150 crore in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was INR4 crore against the loss of INR9 crore in the corresponding quarter of the previous year. The revenue for the full-year was INR670 crores compared with the INR664 crore in the previous year. Profit before interest and tax for the full-year was INR5 crore as against the loss of INR18 crore in the previous year. The revenue — others, the revenue for the quarter was INR244 crore compared to INR230 crore in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was INR13 crores as against INR17 crore in the corresponding quarter of the previous year. The revenue for the full-year was INR987 crores compared with INR834 crore in the previous year. Profit before interest and tax for the full-year was INR48 crore against INR65 crore in the previous year. And with this, this is standalone consolidated results. AI’s consolidated revenue for the quarter was INR5150 crores against INR4,490 crore in the corresponding quarter of the previous year. The profit before share of profit of joint-ventures for the quarter was INR342 crore against INR405 crore in the corresponding quarter of the previous year. With this, maybe I hand over and back to you and happy to take any questions.
Questions and Answers:
Operator
Thank 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. Ladies and gentlemen if you wish to ask a question you may click on the raise hand icon we will take our first question from Rushab Shah from RBSA Investment Managers. Please go-ahead. MR. Shah, may we request you to unmute your microphone and you may ask your question.
Rushabh Shah
Yeah, am I audible?
Operator
Yes, sir.
Rushabh Shah
Okay. Good morning. Firstly, we have been saying in earlier con-calls that the TI has room for one more business division that could be incubated. So any thoughts, have we finalized anything and what can it be? And also lately, the government has started new PLA for components. Are we looking at this? Anything that could be done? That’s my first question.
Mukesh Ahuja
Yeah,, thanks for the question. As of now, we are still studying for incubating another business line in the TI. And regarding your question to PLI, we have yet to take call. We are also studying that option, but yet to conclude on that.
Rushabh Shah
Okay. And my second question is on medical devices. We were expecting certain certification from the export market. So have we received it? What is the status? Because I believe we are not growing as per the potential of the division so-far
Mukesh Ahuja
So Rishab, we agree with your remark on — we have already invested in C certifications for the Europe, which was a work-in progress and there is a bit of delay in getting those certifications and we are expecting to be over in next coming quarter, maybe which is current quarter. And after that, maybe the business will also start like fixed-cost is already invested in, but revenue is to still kick on in a large way for the export market, which we are confident going-forward will take this. But there is a bit of delay, we agree on that.
Rushabh Shah
My third question is on the EV segment. We have seen lately there has been high competitive intensity, especially in the three-wheeler and so I just want to understand what more are we doing to improve the battery range after-sales and reduce cost given the competitive intensity — intensity that has happened. And also one of the competitors are saying that they are already doing motor in-house and they are also getting eligible for the in this segment. So where are we on both of these?
Jalaj Gupta
Okay. So Rishab Jalaj Gupta here. I’ll take this call. So you are absolutely right, the intensity of competition in the three-wheeler electric business is increasing. That’s because we are seeing a very-high degree of electric conversion of the ice and other fuel vehicle into three-wheeler. As far as we are concerned, we have our product plants. In fact, the — as of today, we offer one of the highest range that’s offered on any particular battery offered in three-wheeler and we are working on introducing variants of offering other battery as well. That’s one. Second part of your question was doing our in-house motor. There are various microcontrollers that go into electric vehicles, be it three-wheeler or other components. We are well on our way to indigenize majority of the microcontrollers within ourselves that is in the business. And we’ll be among the — the — we’ll be among the very few ones in the country to have their own microcontrollers for the business itself.
Operator
MR. Shyam, may we request you to return to the queue, sir, as there are participants waiting for that on. We’ll take the next question from Vipul Kumar Shaf of Investments. Please go-ahead.
Vipulkumar Shah
Hi, sir. Thanks for the opportunity. Can you give the volume figures for all the three electric products and what is the quarter-to-quarter change?
Jalaj Gupta
Okay. So I’ll take this. Quarter-four was perhaps our best-ever quarter since the inception of TI Clean Mobility from the topline perspective. As far as the full-year is concerned, the overall revenue grew by almost 160% over F ’24. As regards the specific volumes, the total volume for the year for the four businesses that we operate were 7,540 numbers. There are two, three more things I just wish to highlight over here. IPL Tech, which is the flagship business for the TI Clean Mobility, there quarter-four again was the best quarter. We could deploy 65 trucks in the quarter-four. And just to give you the — and give everybody the perspective of the — of what IPL Tech is doing in the entire last financial year, all over the country for heavy electric trucks, 206 trucks were deployed in the country — in the entire industry. Out of 206 trucks, 172 trucks were deployed by IPL Tech. So that’s the kind of impact or that’s the kind of lead that IPL Tech has taken in the heavy electric commercial vehicles. Now I’ll talk about two businesses, which you saw them moving from project stage to the business scale, which is our ESCV, Eviator brand, small commercial vehicle and the electric tractor business. So quarter-four saw both of the businesses seed volumes about 14 in one case and 17 another is into the market for quarter-four, which was the plan. So the plan was to ensure that in-quarter four, all the four businesses are fully operational, which we have achieved. And now we have the entire full financial year where all the four business will be fully operational.
Vipulkumar Shah
No, sir, can you give three-wheeler numbers also?
Jalaj Gupta
Three-wheeler numbers for the quarter were 1,662 and for the year was 7324, 7,324
Vipulkumar Shah
And what was the same figure for 3rd-quarter sir?
Jalaj Gupta
3rd-quarter figure was 3rd-quarter figure was 1,800,
Vipulkumar Shah
1,800. So we have de-grown.
Jalaj Gupta
But we — but we maintained — we maintained our — for the full financial year, we maintained our market-share. In fact, for the full financial year, if I may just tell you, the three-wheeler L5M category of business, this particular TIV, it grew by 91% and just give me a minute. The TIV grew by 91% and we grew by 116%, the three-wheeler passenger business in which we operate for FY ’25 over FY ’24.
Vipulkumar Shah
So on any of the — any of this to this truck or three-wheeler business, do we expect to breakeven at EBITDA level in near-future, sir?
Jalaj Gupta
Yeah. Sir, the plan is that, yes, the attempt is that for both this business, the attempt would be that at least for a quarter or maybe even more, the attempt would be within this financial year, which is the current financial year to achieve operational breakeven.
Vipulkumar Shah
Okay. And sir, my last question relates to engineering divisions. So there the — it has stagnated. So are we losing any market-share means can you comment qualitatively how — means tonnages are less or how should we read it? Because that was our main growth engine in previous years.
Mukesh Ahuja
So growth momentum and the share of business continues to be strong in the engineering division. We may, let’s say, we have rather improved our market-share in the domestic markets. Coming to the margins, what you are able to see the stagnant level that is because of new facility in CRSS at has kicked-off and we are in the process of taking customer approvals, which is expected to be over in next three to four months’ time and then capacity utilization, which is just started now is going to improve and then we see the revenue growth as well as the margin improvement is going to happen in the future.
Vipulkumar Shah
So should we expect better numbers in the second-half of this year for Engineering division, sir.
Mukesh Ahuja
Yes.
Vipulkumar Shah
Okay, sir. Thank you very much. I’ll rejoin the queue.
Operator
Thank you. A reminder to all participants, if you wish to ask a question, you may click on the raise hand icon from the participant tab. We’ll take the next question from Anupam Gupta of IIFL. Please go-ahead.
Anupam Gupta
Yeah. Thanks for the opportunity. So sir, basically, coming back to the core business between Engineering and Metal Farm, can you please talk about the — how did the exports fare in this quarter and possibly break it up between the engineering division as well as for the industrial chains which we exports? And similarly, how was the performance for the large dire tubes for which the new capacity was under-construction in the last year.
Mukesh Ahuja
So, morning and thanks for the question. Maybe let’s say to answer your question one-by-one, particularly through the exports business. Exports business continued to be 15% of the TI sales on overall basis. And it is continued to be maybe, let’s engineering division as well as IC. But however, maybe on account of little uncertainty, which all of us are aware of, customer relationship are in, let’s say, in contact and maybe, let’s say, continue to have a great relationship with the customers, but there is a bit amount of uncertainty in the short-run, which maybe in our view, it’s a just a temporary period and after that be back. Coming to large-diameter plant, yes, you’re right. The — for extended range, the plant is operational now and we are in the process of getting the customer approvals for which maybe all are the existing customers only. There are hardly new customers and we have to go through-the-cycle of getting product approved, which we are hoping in next one or two months will get approved. And then we see that extended range in the large also will start kicking-in for the engineering business.
Anupam Gupta
Okay. Okay, understand. And similarly in the metal form products business also, sir, we — although there was marginal growth, but margins there continued to remain weak. So what is plaguing the margins for the metal fond product business?
Mukesh Ahuja
So, like we shared in the previous calls, MAPD business is under pressure because of the railway maybe, let’s say, not kicking off. But I’m happy to share with all investors today, we have signed a INR1,000 crore contract with the — for the next seven years period of time, which is expected to start in Q4 of this year. So railway business, we expect to revive it back starting next year and rather Q4 of this financial year, which will help us to improve the margins in the MFPD business, which were stagnant or little lower in — from the last two or 3/4.
Anupam Gupta
Okay. So will this contract also boost your growth because I think over the last six, seven quarters, railway has not contributed much in terms of revenues, right? The growth also should be stronger compared to what it has been in the past.
Mukesh Ahuja
Yes. And starting Q4 of this financial year, railway will be on the growth trajectory back to the original positions.
Anupam Gupta
Okay. Fine. And just one last question on the EV business, sir. So EV, we had a target of reaching close to about 120 or so dealerships for — for the three-wheeler business. I don’t think so. We have reached there at least what is visible from the website in terms of dealerships. So where are we at this point of time? And what is the target if you can break it up between three-wheelers, small commercial vehicles and tractors for this year?
Jalaj Gupta
Yeah. Okay. So Anvam, I’ll go one-by-one. Three-wheeler business at this point of time, we are 85 dealers who are fully operational as of today. For — for small commercial — and when I say 85, I’m just talking of as on 31st of March. For the quarter ended last year, for the quarter — and the plan is to go upwards of 120 dealership for the year, that is for the three-wheeler business. For the small commercial vehicle, two dealers were fully operational as on March ’25 and the plan is to be having 25 dealers across the country. As far as e tractor is concerned, four dealership were fully operational. Whereas a fully operational, likewise in small commercial vehicles, there were many LOIs which were issued, which I’m not talking about. I’m talking about the number of dealerships which are fully operational. And as far as the tractor business is concerned, so there, again, four dealerships were fully operational and the plan is to have about 25 numbers there also operational before the end-of-the current financial year. And as you would know, for the truck business, it’s a direct selling model that we are deploying at this point of time. Maybe we may explore some service dealers, but that will be just done on a pilot basis.
Anupam Gupta
Sure, sir. Okay. I’ll come back-in the queue, sir. Thank you.
Operator
Thank you. We take the next question from Prathira from Unify Capital. Please go-ahead.
Prithvi Raj Earle
So you made a point of this new plant and engineering segment. So what will be the incremental capacity growth because of this new segment?
Mukesh Ahuja
It is going to add incremental capacity of overall engineering division about 7% to 8%. But in terms of volume, if we say that it is going to be about 4,000 tonnes per month
Prithvi Raj Earle
And then on the EV side, could you quantify what are the losses for this financial year?
AN Meyyappan
Yeah. Yeah. Yeah, this may happen here. See, for this quarter the loss is INR107 crore. That’s — what we have reported is INR244 crores and this you have to eliminate the CCPS fair-value loss what we have accounted for in the consolidated statement, that is INR137 crores there. If you remove it, this INR107 crore is the PB80 loss for this quarter. And for the year, it is INR412 crores.
Prithvi Raj Earle
And we expect this to reach breakeven by end of Q4 of this financial year, right, by FY ’26.
AN Meyyappan
No, no. I think Mr Jalaj has already explained you that we are working towards EBITDA-positive for breakeven for two of the businesses.
Prithvi Raj Earle
Okay. Yeah. And the railways order that you mentioned is a INR1,000 crore order, right, over seven years.
AN Meyyappan
That’s right.
Prithvi Raj Earle
Okay. Thanks. That’s all from my side. Thank you.
Operator
Thank you. Our next question is from Sundaram Swaminathan from. Please go-ahead.
Gnanasundaram Saminathan
Hi, team. Thanks for the opportunity. The first one is on the EV business again, is that I remember sometime back, Mr used to call that we need to do about INR1,000 crores in each individual set of these businesses to breakeven and we are calling for operational breakeven in the next year. So how does the number work? I’m not able to add it up, sorry.
Jalaj Gupta
So, sir, the target is that TICM, all the four businesses put together, the first immediate target is how do we reach a $1 billion mark, let’s say, next three to four years. That’s the first objective. Having said that, the second most immediate objective is, as also said, how do we reach operational breakeven at least for the two businesses this particular year, right? And the third — the third target that we are working towards is that how do — how are how do we become among the top three players in each of the four businesses that we are operating in. I think these are the three big milestones that we are working towards.
Gnanasundaram Saminathan
Perfect, sir. Thank you. Should we have a number in mind to say when you’re looking to breakeven in EHCV and the passenger auto segment, is there a top-line number that we should be aware of to be revised from the INR1,000 crore number?
Jalaj Gupta
Be difficult and not appropriate for me to comment on that at this particular point of time when we have just started our journey.
Gnanasundaram Saminathan
Right, perfect. But we can still expect operational breakeven in FY ’26 is your commentary right now.
Jalaj Gupta
For the two businesses, not for full TIC MPL, but at least two out-of-the four businesses, that’s the plan.
Gnanasundaram Saminathan
Right. So on TICMPL, what would be the cash kitty that we have currently, sir, out of that INR3,000 crores?
Jalaj Gupta
And almost around INR900 crores, we are having it in cash around. INR940 crores to be precise,
Gnanasundaram Saminathan
Yeah. Right, sir. Thank you. Sir, another one is that can you just explain between two businesses which were written-off this quarter, and the waste-to-energy business? What is the rationality behind it?
Mukesh Ahuja
Yeah. So, which we started for a feature phone market around 1.5 years back, we find maybe, let’s say whatever our margin expectations are there that is not getting fulfilled in that business. That’s why it is a small-business around INR15 crores. So we’ve taken an impairment in this current quarter product. What you are mentioning about the Estro villas that was done in the Q1 of this financial year, which was basically an investment in the for the R&D project. And when we see that maybe it was not progressing well, so we have taken a column that I think it was around INR3.73.5 crores, INR3.5 crores was a investment in the.
Gnanasundaram Saminathan
Right, sir. Fair enough, sir. And one more management-related question here with Mr not being on the call today. Should we read like this is moved because he moved to a non-executive role or this time he is not present for one-off reasons?
Mukesh Ahuja
So Mr is traveling this time and that’s why he could not join for this call.
Gnanasundaram Saminathan
Thanks for the clarity. Thank you, sir. That’s it from my side.
Operator
Thank you. We’ll take the next question from Salil Desai of Marcellus Investments. Please go-ahead. MR. Salil Desai, may we request you to please unmute your microphone and you may then ask your question.
Salil Desai
Yeah. Thank you. My first question is for. If you can explain the CCPS impairment provisioning that has been done, now what is the reason behind this? And how should that change in the next couple of years?
AN Meyyappan
Yeah. I can explain you. So this is regarding the — with respect to CCPS, what we have invested in TI Clean Mobility. TA Clean Mobility has raised INR2,070 crore of CCPS, out of which INR500 crore has been invested by tube investments as a promoter and remaining INR220 crores has been invested by private-equity funds. As per this CCPS terms, it’s a variable conversion, okay? It is not a fix it to fix-rate conversion, that is it not straight away fixed number of equity to not get into. It depends upon the performance of the company. At that point in time of the conversion need changes that the number of shares what they get as changes. That means as per the, we have to treat it as a current — that is — we are treated as a financial liability. We cannot as equity in the books of TI Clean Mobility. And hence for last two years, we were also showing it in the financial liability only. And our funding also got completed in June 2024 and since nine months got over from that time, we have to do a fair valuation on that and accordingly account for it. And it should be a regular feature for every quarter — that is every reporting period we have to do, okay. And based on which we have done the fair valuation, since the variability is there on this and we have to do a fair valuation, we have engaged Big 4 for doing a fair valuation and done the fair valuation. It has come to some something like INR706 crore of a number that has been accounted as the fair-value loss in TI Clean Mobility. And in Tube Investment standalone business, whatever the investments which we are having, out of which INR569 crore is a fair-value gain for us that we have accounted in TI Clean mobile, it is TI standalone business. In the consolidation, this gets knocked off. This INR569 will get knocked off and only INR137, that’s the investor portion’s fair valuation that the loan will come as a hit to the P&L in the consolidate TI financial statements.
Salil Desai
I see. So just to understand you said this INR706 crore fair-value, which is lower than what was anticipated earlier, right? So should this be read as the fact that as per the shareholders agreement or the CCPS agreement, the actual performance is probably not tracking what it was earlier expected. So fair-value has reduced.
AN Meyyappan
No, no, no. Actually, we never said any number earlier on this because fair valuation, the first time we have done it only in 31st of March. See, earlier in the period, earlier period, we have considered the cost as the fair-value. The reason is the funding was not completed. Funding has completed only during this year. In June 2024, the final money has come in and entire funding got completed. And hence, we have done the fair valuation now and it hasn’t accounted for. And we never mentioned any amount earlier on this.
Salil Desai
I see. Okay. Thank you. So at first much what would be TIC stake in the various — stake in TIC and PL
AN Meyyappan
Right now, we are having 100% only. Okay. Everything will get converted only at later point in time. Okay, it depends upon the market conditions at point in time.
Salil Desai
Understood. Okay, right. Yeah. Thanks. Yeah. Second is for a challenge. If you can — the INR106-odd crore negative EBIT that we have in this quarter, what would be the major cost items that are kind of leading to this. Last year, I think 2024, we had R&D expense of some corporate support expenses and all as some of the major ticket items and there are some professional fees also. So it would be good to know what are the big-ticket items and if you have a path to say Q4 profitability, then each of these items will either reduce or is it going to be just revenue growth thing that is going to drive the EBITDA breakeven
AN Meyyappan
Yeah, this may happen. Yes, see, whatever we have reported here is operational PBAT, which we have given you. That is I mentioned in the earlier thing also, 244 was a loss which has been shown in Q4 and out of which if I remove the 137, 107 is the loss. And then going-forward, see, because the EBITDA breakeven will come in two of the businesses, that’s what Mr Jalaj has said that will come in the future quarters. Yeah, see, that means see, we will be able to maintain this because it’s only operational loss. There is no specific behind this because once the revenues start kicking-in, then this loss will automatically will come down.
Salil Desai
Right. So what I was trying to understand is are there startup costs that will reduce or is it also going to — I mean, obviously, revenues will go up.
AN Meyyappan
Costs will not come down, revenue will increase and by which you will be able to get more contribution on the product whatever you are selling and that will be able to absorb the fixed-cost.
Salil Desai
Understood. Okay. So it’s not that there is some start-up costs that will reduce. Got it.
AN Meyyappan
No.
Salil Desai
Yeah. Thanks. And lastly on the railway INR1,000 crore orders, if you can just clarify what this order is for and seven-year kind of seems like a long-duration for typical orders. So good to understand the nuances behind this.
Mukesh Ahuja
So like we said earlier, maybe it is a order maybe, let’s say, like you see railways going through the privatization route, maybe one of the many trains orders got awarded to one private player and in-turn, maybe that has been particularly bogey has been given to us. So it is starting Q4 of this financial year and continue to another six years is a time period.
Salil Desai
Got you. Thank you.
Mukesh Ahuja
Thank you.
Operator
Thank you. Our next question is a follow-up from Rushab Shah of RBSA Investments. Please go-ahead.
Rushabh Shah
Yeah, thank you. Just want to clarify. You mentioned the target of $1 billion revenue in EV segment. So does it include exports or it’s only for the domestic market?
Jalaj Gupta
Total, the entire size of the business, including exports?
Rushabh Shah
And I think we are supposed to review the feasibility of the cycles business. So have you taken any call or I think you’re targeting some export market there, only status on this division?
Mukesh Ahuja
So, like we mentioned in the previous calls, you think cycle business is already into black and this year particularly, our exports has gone up and we continue to focus on exports in the other categories of the cycle business, which we feel it is going to grow in coming future.
Rushabh Shah
And just a clarification on the consolidated P&L, I can see the total profit-loss is around INR158.19 crores in Q4 and the breakup between the owners of the company and non-controlling interest, the ratio has come to 30s to 70 from 70 to 30 last quarter. So is this due to CCPs only or what is the ratio that we expect going-forward?
AN Meyyappan
Yeah, see 46 is predominantly because of the CCPS, INR136 crore you have to add and then see, okay, that will be the impact. If you add that and then see, then it will be 183 will be the number for the total number, TA. Okay, as against INR46, okay, that will be actually 183 if you remove the CCPSK.
Rushabh Shah
Okay. And just lastly, if you just share something on this CDMO piece, what is the progress and what is the roadmap to two to three year roadmap on that?
Mukesh Ahuja
So like earlier mentioned, our construction for the plant has already started and we expect that to be over by coming year, let’s say, quarter three and quarter-four, maybe in middle of that the construction will be over and then we’ll be able to go to the mass production level in the CDMO business and that lab, what we mentioned, the customer acquisition is continuing and which is encouraging. And then maybe after this commercial production happening with the large-scale, we will do ramp-up even for the CDMO business starting next year.
Rushabh Shah
Thank you, sir. Wish you all the best.
Mukesh Ahuja
Thank you.
Operator
Thank you. Before we take our next question, we’d like to request participants to click raise hand icon to ask a question. The next question is from Vipul Kumar Shah of Samangal Investments. Please go-ahead.
Vipulkumar Shah
Hi, sir. Thanks for the opportunity again. So my question is regarding TI Clean Mobility. We have cash of INR900 crores. So considering current losses, we’ll be forced to raise capital at Clean Mobility level in near-future?
AN Meyyappan
No, this may happen here. We will — we don’t have any plans of raising any further investments. Yeah. Since we are fully covered.
Vipulkumar Shah
Yeah. So then how — how we are going to fund the losses? No, we have only INR900 crores left, you yourself have said. So if losses — when volumes will increase initially losses will also mount now.
Mukesh Ahuja
So Vipul, as of now, we see that maybe we are covered for more than 1.5 years to two years cash available. Also maybe like we earlier mentioned in the calls, we are very prudent on the increasing our fixed expenses and all those things. We are very careful being a part of TI in Group. So we feel as of now, we are covered up to 1.5 to two years.
Vipulkumar Shah
Yeah. And sir, my second question relates to engineering division now for your Nashik plant. So when it will become fully operational in ’26, ’27, what type of revenue contribution we can pencil in for the entire year?
Mukesh Ahuja
So we expect this plant to be fully operational by Q3 of this financial year itself rather than ’26, ’27 because one thing good working when the steel scenario because of the same guard duty introduced, we see there will be uptick in-demand for the CRSS business. And as earlier mentioned during the call, this plant, we have done a capacity of around 4,000 ton and which we feel should we get fully utilized by Q3 and Q4 last year. And then based on the progress, we have a plan to further expand depending on how we are progressing.
Vipulkumar Shah
So at-once it reaches its optimum utilization, what type of annual revenue run-rate we can expect from that plant share?
Mukesh Ahuja
So like we maybe, let’s, let’s say, rather than giving plant-wise revenue targets, we maybe to give a guidance on the Engineering division overall, we expect double-digit growth what we mentioned in the previous call to continue for the engineering business going-forward?
Vipulkumar Shah
Okay, sir. Thank you.
Mukesh Ahuja
Thank you. Our next question is a follow-up from Saminathan from Avendus Spark. Please go-ahead.
Gnanasundaram Saminathan
Thank you for the follow-up, sir. One question is that we’ve also given a Board resolution saying about a INR300 crore fundraise. What is the plan for this particular debt raise that we’ve called out for?
AN Meyyappan
Yeah. May open here. This is a generic resolution that is — we’ll — enabling resolution which we used to get every year. See this as per the regulations right now, we ought to get this on a year-on-year basis. That’s why we are in the first Board meeting. We always get it for this year. And only in the need we will take, but we don’t have any plan to rise at this point in time.
Gnanasundaram Saminathan
Right, sir, perfect. And with regards to incremental cash that is being generated this year, how should we look at capital allocation as a policy?
Mukesh Ahuja
So like we mentioned, as of now, maybe five verticals are already there and the TI. TAC like we discussed, they are fully covered for next two years’ time and the capital outflow will be happening for particularly TI medical CDMO business and for the core business what we are moving to do it. And as we said earlier, maybe we are also exploring newer opportunities. So depending on the attractiveness of the opportunity, fund will get allocated to that opportunity also.
Gnanasundaram Saminathan
Right, sir. And one last one is that TI Medical had a loss this time. What is the reasoning and what is the turnaround period here?
Mukesh Ahuja
Yeah. So as let’s say, I earlier mentioned, we were — we have invested a lot for the exports business and which is going bit slow. We agree on that particular piece. And starting maybe next one or two-quarter itself, we are expecting whatever there is a lag was there for one or two quarters should get carried away and then we see that it will be back to profits.
Gnanasundaram Saminathan
And then with the current set of investments that we’ve already done into TI Medically, what is the kind of potential upside that we’re looking, sir, ROC of 20%, 25%, what is the number? Am I just asking from the current investment that we’ve done for about INR260 odd crores and the partner putting about another INR67 crore INR60 odd crores, our INR350 crore investment, up to what revenue levels can it take this company into? And when will further investments be required on TI Medical?
Mukesh Ahuja
So we are already exploring maybe like you say that maybe if we do any acquisition, let’s say, it is coming at a higher price point, which is not as per our philosophy of TI. But it is going to be a growth vertical for us and coming to answer your question of as the overall TI, we expect RO — always ROC more than 25% on whatever you invest after the business gets replaced.
Gnanasundaram Saminathan
Great, sir. Fair enough. Thank you and all best.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may click on raise hand icon. We take the next question from Ms Anupam Goha Gupta from IIFL Capital. Please go-ahead.
Anupam Gupta
Yes, sir. So couple of questions. Firstly, in terms of capex, can you please detail what are the planned capex and investments in FY ’26 by businesses, if you can give that breakup.
Mukesh Ahuja
For the core business, we expect as of now, we’ll be investing around INR300 crores in our core business. And like I mentioned earlier, further investment will be going towards the TA medical CDMO and any other opportunity comes in front of us there, that’s how the capital will get allocated for the current year.
Anupam Gupta
So can you detail the quantum which we have planned for medical CDMO and if there is anything planned for EVs as well in this year.,
Mukesh Ahuja
That depends on the size of the opportunity. Maybe it will be very difficult to mention what kind of a capex will be putting it. Like we said, we are studying on the field of TI Medical, either through organic or inorganic route, whatever it comes there, that will depend on the size of the opportunity.
Anupam Gupta
Okay. Okay. Understand. And one question for Mr Jalaji. In your remarks, you said we are looking at more battery options for — for three-wheeler. I understand your current pricing is a bit higher than what competition is offering and offering and also because of the type of battery which you’re offering. So if you can talk a bit more about what changes we are looking at and what will it do to your pricing versus competition?
Jalaj Gupta
Yeah. So Anupam, as of today, what we offer in the market is a higher capacity battery. You know, in fact, we and one of the competition are the two ones which offer a higher capacity battery. Our battery capacity is 10.2 kilowatt-hour. So you know the recent we have seen in the market introduction of our products with lower battery capacity as well. So we will be offering them also as one of the variants, which will give us some advantage on the pricing that we can do. Not only that, when we introduced our product, there were certain very unique features and which are the best-in-the-class features in that category, which of course the competition has caught up upon. So very soon, we would be launching a refreshed version of our three-wheeler passenger variant and which we feel that will again give us the competitive edge as far as the product is concerned. One thing which remains unchanged in the market is the premium positioning that we have positioned our product with, which is something customer also acknowledges and customer is therefore willing to pay a slight price premium also on our product vis-a-vis the competition.
Anupam Gupta
Okay. Okay. Understand. And one more question on for you, Mr Jalit. So on the trucks, obviously, we were the only offering to a large extent in the last year and now we have seen that a larger incumbent has launched almost a similar product as what we have from IPL Tech. So have you seen any impact from there? Or how are you preparing for that sort of competition and possibly more launches in that segment?
Jalaj Gupta
So competition will come. I mean, we are all embracing towards competition, not only from one, we will see competition from many — there will be many more entrants into this particular field. However, what is important is how many trucks have been put on the road in terms of the actual usage. So you — so I gave the figure earlier that out of 206 trucks deployed in the country, 172 were deployed by us. And what is important in case of the big truck business is the successful establishment of the end-use cases, which we have been able to do across six to seven segments. So competition will come, but I guess we believe that we have a very good head-start vis-a-vis the competition because anybody, be it competition, be it us, it took us about a year or more than a year, about two, two years to establish the successful end-use case. So there will be a learning curve which the competition will also follow. Yes, the learning curve may be slightly smaller, but everybody will have to go through that learning curve.
Anupam Gupta
Sure. And one last question on. So you have taken the write-off, given the sort of margins which you’re seeing. But let’s say is in that business, are you still open to take that electronics PLI, which is there? Can it be housed under motion or is that a very tough place to put incremental investments in given the sort of experience which you have had over the last year or so?
Mukesh Ahuja
So, like we said earlier, maybe electronics is a field we field we are not ours to, but as of now, whether we have decided anything to do in the electronics field, the answer is no. But we are open to this field because it is going to be a growing field coming in the time, right? Like you mentioned, even government is giving a PLI, but as of now, we have not taken any call.
Anupam Gupta
Okay. Fine. That’s all from my side. By if you have any more questions from the participants, you can take that. Otherwise we can, I think close the call.
Operator
I will check again, sir. Ladies and gentlemen, if you wish to ask a question you may click on the raise hand icon. We have a follow-up question from Sundaram Saminathan from Avendus Spark. Please go-ahead.
Gnanasundaram Saminathan
Thank you, sir. One last one, can you just explain the utilization of the current engineering and Metal Form division and what is the upside that we have got left there in terms of capacity?
Mukesh Ahuja
So any division, our capacity utilization is maybe let’s say if I exclude the Nasi plant, which is just started and there is another plant going to come in the for the Tilu division. If I include this both put together, our capacity utilization will be around 80%. And in the MFPD business, maybe because it is a varying business, but overall number will remain again at around 85% capacity utilization in periods.
Gnanasundaram Saminathan
So do we have incremental capacity to take that particular railways order by the time we’ll be adding a new capacity, the assumption through the INR300 crores we’re investing this year into the base business.
Mukesh Ahuja
So like I — maybe let’s say, mentioned in the tubes and the cold roll strips, we are covered for even at least next one to two years because those capex — both the capacity addition, one is just started, another is going to start another down the line 1/4 or two quarters. So we are covered in the tubes. And like we already — let’s say, it is already in public domain. For the MFD division, we are also investing in the same place for Alton along with the tube capacity, which will also be good to go over next two years’ time.
Gnanasundaram Saminathan
Right, sir. Perfect, sir. Thank you. It was a great call, sir. Thanks that.
Operator
Thank you. Our next question is from Namit Arora of InGrowth Capital. Please go-ahead.
Namit Arora
Thank you very much for the opportunity. Sir, my question Was on the EV business. Clearly, you are pioneers and there may have been some learnings since you started compared to the original business plan. So could you walk us through any of the key learnings so-far and any revisits to the business plan that you need to make with a three to five-year view? I know it’s a new market and you are pioneers, but it will be good to get some early color of qualitatively how you’re feeling about this and any tweaks or changes you need to make to your approach to this EV business? Thank you.
Jalaj Gupta
So Nimit, as I just said, I’ll just maybe reiterate those two, three points that are our big milestone of reaching $1 billion, that doesn’t change, right? So that in terms of business plan doesn’t change. So the end destination remains the same. That is number-one. Number two, that we are the pioneers. So therefore, we would want to be among the top three players in each of the segments that we play in. So that also doesn’t change. Yes, there have been few learnings. So one or two learnings that I can share with you is that for truck business, for example, we have realized that time from which we start pursuing opportunity or start engaging in the — in a sales talk to the deployment of the truck, it’s a long-lead time item, right? Earlier it’s not so much about selling a truck. It is about a complete project getting institutionalized so that’s one big — that’s one learning that we have got because there are multiple stakeholders which are involved, including charging infrastructure, the logistics service provider, the end-use case, the financers, etc. So that’s been a learning. The second learning has been that in many of the EV businesses since inception, it is the End-User, I think to whom or the end-use case business viability that needs to be established, be it in case of tractors, be it in case of small commercial vehicle. The only exception is the three-wheeler business where the business is primarily a B2C business. And since the business has reached almost 26% of the electrification, so it could be a usual through the channel sale of the three-wheeler business. But as far as all the three other businesses are concerned, it would remain primarily to start with a B2B kind of end-use case establishment before the sale can be executed. These are some of the learnings and there are some more, but these are, I think the top two, three learnings that we have picked-up as we have moved in this journey.
Namit Arora
Thank you very much, sir, for your very detailed and candid thoughts. This is most helpful. All the best to the entire team and many compliments to the entire group for phenomenal value-creation across group companies over the past decade and more. Thank you very much, sir.
Operator
Thank you. Thank you. Thank you. As there are no further questions, I now hand the conference back to Mr Mukesh Ahoja for closing remarks. Over to you, sir.
Mukesh Ahuja
So we are thankful to all for a fantastic questions and this also helped us to have a learning opportunity. Thank you very much for your support.
Operator
Thank you. Ladies and gentlemen, on behalf of IIFL Capital Services Limited, that concludes today’s conference. Thank you for joining us. You may click on the leave icon to exit the meeting. Thank you for your participation. Thank you. Thank you again. Thank you. Thank you to be