Uniparts India Ltd (NSE: UNIPARTS) Q4 2025 Earnings Call dated May. 28, 2025
Corporate Participants:
Unidentified Speaker
Paramjit Soni — Executive Vice Chairman of the Board
Rohit Maheshwari — Chief Financial Officer
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Analysts:
Unidentified Participant
Monali Jain — Analyst
Rushabh Shah — Analyst
Viraj Kacharia — Analyst
Sunil Jain — Analyst
Madhur Rathi — Analyst
Nitin Shakdher — Analyst
Nikunj Doshi — Analyst
Nishant Chowhan — Analyst
Miten Lathia — Analyst
Rahul Dhruv — Analyst
Chandramouli Jagannathan — Analyst
Pranit — Analyst
Presentation:
operator
It. Ladies and gentlemen, good day and welcome to the Uni Parts India Limited Q4FY25 earnings conference call hosted by Goindia Advisors. As a reminder, all participant lines will remain 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 the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I would now like to hand the call over to Ms. Monali Jain from Goindia Advisors for opening remarks. Thank you. And over to you.
Monali Jain — Analyst
Thank you Ryan. Good evening everyone and welcome to Q4FY25 earnings call of Unipark India Ltd. We have on the call Mr. Paramjit Soni, Somotor Executive Director and Vice Chairman Ms. Tanushree Bhagrodia, Director and Group Chief Operating Officer and Mr. Rohit Maheshwari Group Chief Financial Officer. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risks that company faces. I will now request Mr. Soni to take us through the financials and the business updates subsequent to which we will open the floor to questions and answers.
Thank you. And over to you sir.
Paramjit Soni — Executive Vice Chairman of the Board
Thank you Manali and good evening ladies and gentlemen and welcome to the Q4FY25 earnings call of Uniparts India Limited. As a trusted partner to leading OEMs, we maintain a strong presence across the evolving landscape of the global agriculture and construction equipment supply chains. As we enter FY 2026, we do so with strategic clarity and a long term perspective. The industry is navigating a period of significant transformation, perhaps the most notable in recent decades. Encouraging early signs of recovery were visible in our Q4 FY25 performance and we are cautiously optimistic that momentum may gradually build in the second half of FY 2026.
Our forward strategy continues to build on three pillars. Deepening integration with our customers, driving operational efficiency and expanding our near shoring footprint in a measured and effective manner. To give you a sense of the industry overview and the business performance in Q4 FY25, the off hybrid industry experienced year over year decline with the impact more pronounced in the agricultural sector than in construction. Our performance followed these broader trends. Construction industry sales declined in the low double digit during the period from April 2024 to March 2025. Rising interest rates and economic uncertainties led to a more cautious approach to new projects and new equipment purchases with the most significant impact observed in the North American markets.
At Uniparts, this translated into requiring agility and a keen focus on inventory management and OEM production schedules. Driven by a strategy centered on fostering stronger customer ties, we achieved growth within the segment by expanding our engagement with the largest construction industry customer. The outlook for this segment is expected to remain flat in the near term. Despite that, we expect growth driven by new business awards across America and Europe. The global large agricultural equipment market was the most impacted sector in FY2025. Farmers in key regions including North America and Europe continued to face increased input costs, fluctuating commodity prices and higher interest rates.
This led to our customers reporting high double digit year on year sales decline and inventory levels being reduced by the dealers. However, the pace of Decline moderated in Q4, indicating an emergence from the bottom in FY2026. The pressures on farm income in some of the key Western markets are likely to persist in the near term, so suggesting a continued cautious approach to new investment in equipment. While we expect the Americas to remain under pressure with continued high double digit decline, Europe and Asia Pacific are projected to remain flat or see a contraction of up to 5% inner parts.
Performance in this segment was aligned with broader industry trends, with Q4 showing signs of improvement. Industry headwinds notwithstanding, we established a new partnership with the European Tractor OEM which will add to the growth in the current fiscal. In the small agricultural segment, Indian tractor demand benefited from a strong monsoon and harvest, ending the fiscal largely flat in terms of unit sales. Globally, however, the segment declined in the double digits. Despite these headwinds, unit parts outperformed the broader market thanks to our strong positioning. Looking ahead Although global industry demand is expected to range between flat to a 5% decline, with the American market expected to decline by 5 to 10%.
Unipods is poised to grow in FY 2026 supported by sustained market share in India and continued expansion in Asia Pacific. Our aftermarket business, a crucial area for us, delivered robust results in FY 2025 as farmers focused on maintaining and upgrading their equipment. We continue to expand our footprint in North America and Europe and we remain optimistic for further consolidating our position in FY 2026. Our engagement with customers remains strong and the pipeline for new business across three point linkage and our PMP divisions continues to be healthy. We’re also making steady progress on our geographic diversification strategy, helping us manage regional demand fluctuations more effectively.
Our entry into Mexico is progressing as planned, offering a new opportunity for the company’s growth. We are continuously enhancing our manufacturing processes and supply chain resilience to ensure that we have the most suited technologies to service our customers and can adapt to the changing market dynamic and potential disruptions with speed. Our focus on sustainability has only strengthened in FY2025 with the addition of solar power and new water treatment technologies being implemented across our factories. This is an initiative that we are determined to continue along with our CSR initiatives that enable our teams to contribute to causes that they believe in.
On the financial front, the Company has reduced inventory year on year and continues to maintain a healthy position with net debt free balance sheet as of the end of FY 2025 group net cash stands at approximately 194 crores. We expect to sustain free cash flow generation at levels consistent with FY2025 on a quarterly basis. With that I will now hand over to Rohit Maheshwari to take you through the financial performance of Q4 and the full year FY 2025. Rohit over to you.
Rohit Maheshwari — Chief Financial Officer
Thank you sir and good evening all. I would like to share the following financial and business highlights of the quarter ending 31st March 2025. Revenue from operation for Q4 was INR 253 crores which is an increase of 21.43% quarter on quarter and decline of 12.8% year on year. EBITDA of Q4 at rupees 41.64 crores was 11.7% higher than Q3FY25 and lower by 19% ENR year. Operating cash flow generation for Q4 was rupees 30 crores. The net working capital comprising of the three elements of inventory, account receivable and account payable as number of days of TTM Revenue from operation stood at 154 days as on 31st March 2025 over working capital during the quarter reduced by approximately rupees 7 crores in the past balance sheet continued to be net debt free with the group net cash position at approximately rupees 194 crores at the end of March 2025.
Cash output was CAPEX during the quarter has been approximately rupees Total new business award value during the trading 12 months have been approximately rupees 195 crores I.e. analyze potential value of underlying projects. The company paid a dividend of rupees 33.85 crores in Q4 dividend payment till date in FY 2025 was 64.31 crores which was 73% of the pair for the year. Inflationary pressure on operating cost remains in the midterm to be partially mitigated through operating efficiencies. Macro concerns over global economic slowdown, geopolitical uncertainties, evolving global trade tariff environment, impact of persistent inflation as well as elevated interest rate continues to remain key monitorables.
With this summary I would like to hand over the conference back to the moderator for question and answer session. Thank you very much sir.
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while we poll for questions. The first question comes from the line of Rushab Shah from Bugle Rock pms. Please go ahead.
Rushabh Shah — Analyst
Hi sir, thanks for the opportunity. Sir, my question is related to the new business of approximately 200 crores was mainly on the construction side of the business. So my question is whether the business is from existing clients or you have added more relationships in various geographies of the world.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Hi Rishabh, this is Tanushree Bakrodia and thank you for your question and thank you for your participation as well. Rishabh. The new business that we’ve got is across our segments. It’s across construction, Large ag, Small Ag. In fact in the last few calls we’ve been saying that Large Ag is a segment where we’ve been wanting to sort of dig deeper and get more business. So going forward the new business that comes in is coming from large Ag. Going forward, the new business that is also coming is coming from geographic diversification. We continue to, you know, live up to what we’ve been speaking about.
We’ve actually got new business in Asia Pacific and I think even in, even in the more like business we’ve got new business. The 200 crores of past business that we’ve been talking about has also come from across sectors and industry segments that we cater to and geographies. And of course aftermarket remains a key part of our entire Strategy where in FY25 we actually grew 20% year on year and we continue to see new business growth in this segment as well.
Rushabh Shah — Analyst
Since we are on the previous calls, I had one question that in the previous calls you said that you were trying to expand horizontally with your clients. So have we been successful in doing that?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Absolutely. I think our strategy remains right that we enter customer horizontally, grow with them and horizontal growth is that we supply to various divisions that they may have, various geographies that they may have. And in that light we have, you know, we have one new business with customers in the construction space. We’ve won business in the small ag space and we have added new customers as well.
Rushabh Shah — Analyst
My next question is I wanted to know that as you said that the, that the construction side of the market is still soft but you are adding or rather horizontally expanding that side of the market itself. So in various geographies also. So just wanted your thoughts about the process. How have you been adding like what, what additions you have made in the past three years?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Rishabh, if you see we’ve spoken about this in our earlier call jaits that in the last three years we’ve actually expanded significantly with Caterpillar, which is the largest construction equipment manufacturer in the world. We’ve also mentioned that we won one new business where the business has actually done better than when we were even looking at the numbers when the business was awarded. And I think what that has basically led to is it’s given confidence to the customer on how we can support them. And hence we’ve been able to grow with Caterpillar. I think we’ve also been candid in sharing that you know, with customers such as Bobcat, for example, we are growing when it’s, you know, again we’ve spoken about this in the past.
Bobcat decided that they were moving to Mexico and we are also setting up in Mexico to be able to service and bring our near shoring model to Mexico to be able to service some of these customers. And I think all of these activities along with the fact that we customers do recognize us for our engineering capabilities and the distribution model that we have, they’ve led business growth with them. And the last aspect also is that you know, we’ve been focusing on diversifying geographically and that’s the third element, how we’ve grown over the, over the years.
In fact that’s also led to us winning some new business in Europe for FY26.
Rushabh Shah — Analyst
My last question is in the previous poll you mentioned that above 70 horsepower your market share is about 8 to 9%. Over the five years it could be 20, 25% of the market share completely with you on this goal of yours. So just wanted to know what steps are you taking to achieve this goal in the next couple of years.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
So Rishabh, this has been something that we’ve been, we’ve been fairly focused on. The teams have been working closely with customers to see where we can partner with them. And on this front we’ve won one order with a large European OEM which is contributing significantly to the new business that we are. That we are looking fairly excited to execute in FY26. Similarly with some of our other customers we’ve been speaking and we are hopeful of getting similar amounts of business. But overall in the large ag space for FY26, we are seeing a good growth coming from new business.
And I think it would only be fair to say that the efforts continue on this front.
Rushabh Shah — Analyst
Thank you so much. Thank you for answering my question.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Thank you, Kishant.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of Viraj from Simple. Please go ahead.
Viraj Kacharia — Analyst
Yeah, I. For the opportunity. First, just a clarification. You said new business. So I think in the past we talked about.
operator
I do apologize to interrupt you there but your audio is not clear, is it?
Viraj Kacharia — Analyst
Hello. Hello.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Yeah, go on.
Viraj Kacharia — Analyst
Yeah. So first just a clarification. I think in the past we used to talk about Android new business. You know the pipeline which we want.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Sorry, your voice is not clear still. It’s very muffled so it’s difficult to understand you.
Viraj Kacharia — Analyst
Is it better now?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Yes, it’s a little better.
Viraj Kacharia — Analyst
Yeah. Yeah. So question is more on the clarification. You know in the past we used to talk about annual. The new business which we want, you know the annual potential to be roughly around 300 crores. So you know the 200 crore business when we talked about is just a reputation of that or it’s incremental to the businessman.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
So Viraj, we talk about business that we are realizing over the last trailing 12 months. Right. So this is. So this includes new additions that we keep doing. And when we are talking about those new additions we are talking about 200 crores of new business coming through.
Viraj Kacharia — Analyst
Okay. So in last 12 months what will be the contribution from new business?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
So like we say that in the last 12 months new business would be roughly about 195 crore on an annualized basis.
Viraj Kacharia — Analyst
Okay. Second question is post the tariff announcement in UX model. So if you could just give some perspective, where does that put us in terms of say so how does that. So how are customers looking at us in terms of our position? What are they saying? You know, any color you can give.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Sure. That’s an interesting question. Viraj. I think before we get into tariffs, I think let’s look at what the customers have been doing over the last many years. Right. I Think a number of our customers have been doubling down on their India teams and on their India sourcing Free Paris. A number of our large customers have reiterated in various forums that they would like to increase and double in some cases their sourcing from India post tariff. I think that stance still remains. I think this is systemically something customers are wanting to do which is to de risk the supply chain.
I think as the tariffs have come in, the tariffs have come in in two buckets. One is what got announced in March 25th which was tariffs on the steel and aluminium product imported into the US and the second one was that got announced in April which were the reciprocal tariffs. We have worked very closely with our customers on this since then and we have reached a position where we have an agreement with most of our customers today on how this is going to be, you know, on how this is going to impact them and us.
And I think we are looking at being PNL neutral from a tariff perspective.
Viraj Kacharia — Analyst
But given the. So If I talk about 3 PL or PNP, you know, in 3T we have players operating out of, you know, major players operating out of Europe, bp, your competition both from China and other regions. So from a relative position point of view, whether you know, post tariff where there’s various helipods, please, you know, and in that perspective what is the communication we are getting from our customers?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
I’m glad you asked this question. I was hoping that this would be your follow up. So you know, I think see it plays with UNIPAS fairly, uniquely, right? Because today in our PMP business we actually have dual shoring. We can manufacture in the US for customers. I think given the tariffs, given the benefits that India has, we do have opportunities that have opened doors and coupled with that is the fact that we do supply to them from, you know, locally. So there is near shoring and I think all of these put together gives us opportunities to be able to increase business with our customers.
But bear in mind that you know, while in the aftermarket, this can be more immediate with the OEMs. While this opportunity is there, there are approvals and processes that need to be completed and they would need to be completed for us to be able to see the reality of these opportunities in our P and L. So how does.
Viraj Kacharia — Analyst
Pricing and margin really working, you know, in this kind of a scenario? So our approach will be more focused on margin rather than where it’s manufactured or what channel delivery it is or, you know, how are we approaching this.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
So Rishabh, I don’t think our approach has changed we are looking at the best cost manufacturing solution from our customers. So if it means that the best cost country post tariffs is the US we will manufacture in the US for our customer. India still has an advantage over China in terms of tariffs and I think that story for us remains strong and I think given that we are now moving into Mexico to be able to supply to their Mexican production to that extent that business is anyways delinked from the U.S. i think the approach that we have doesn’t change.
I think it only strengthens or reiterates the strength of our business model which is that we’ve always wanted to offer a best cost opportunity of manufacturing to our customer and the dual shoring and the near shoring benefits that we bring to the customer.
Viraj Kacharia — Analyst
Okay, just one last thing. So you know I understand the environment is quite weak in other industries going through a tough phase. But in terms of the cost takeouts or you know, initiatives in terms of further leaning the overall cost structure internally and unique parts, can you give some perspective what kind of a cost takeout or cost saving we have been able to get? Or either in terms of gdp, you know, where is a break even point now for us three or four years back. So it kind of helps us also get a perspective when the cycle turns, you know, we might also see parallel to that degree, you know, the gains on the effort we have been making.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Rishabh, if you actually look at it right, our gross margin levels haven’t really changed year on year, FY24 to FY25. Our gross margin levels remain fairly stable except for a few decimal of percentage points. And if you then look at our fixed costs you will actually see that our cost control has been fairly, fairly strong. This is a journey that we started and we’ve only built on, right? So throughout the year we’ve been focusing on increasing efficiencies and containing costs where we could. And that is why despite you know, 15% drop in the top line that we are seeing, we’ve been able to hold our EBITDA percentages and we’ve been able to still have a healthy fat percentage.
So I think we are going to continue on that journey and that’s a commitment that we as management team and as an organization have to all our stakeholders.
Viraj Kacharia — Analyst
Okay, I’ll come back in.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Q.
Viraj Kacharia — Analyst
Thank you for answering all the questions.
operator
Thank you. We take the next question from the line of Sunil Jain from Nirmal Bang Securities Private Limited. Please go ahead.
Sunil Jain — Analyst
Yeah, thanks for this opportunity. First of all again question on tariff. So you said that it will be P and L neutral. So are the negotiations with the customers are over and you are not facing any margin pressure in the short term?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Yeah. So Sunil, with most of our customers, we’ve reached an agreement. What will happen is that there will be some working capital impact because of the tariff, because, you know, we will pay and then select subsequently from the customers, but it will be P and L neutral.
Sunil Jain — Analyst
Okay. And second question is how much is the share of large agree in our total sales? The large AG is roughly about in the high teens for us as a percentage of total business. You know, it is about 17, 17, 16, 17%. And any new development on fabrication or hydraulic side so we can expand our time?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
I think, Sunil, we’ve maintained that, you know, these are two areas along with PTO that we will continue to focus on. On the fabrication side, we have our own facility that does what I call small to medium sized fabrications where we are picking up some traction with OEMs and we are hoping that the efforts that we are continuing to make in the aftermarket channels will also yield results.
It’s been slower than what we would have expected, but I think that from the small and the medium sized fabrication and as we continue to evaluate and look at opportunities as something structifies, we will inform the stakeholders. But we do continue to work on these opportunities and anything related to acquisitions which you had alluded in the earlier calls, Sunil. That’s what I was referring to. That on the acquisition space, you know, the power takeoff, hydraulics and fabrication remain three product platforms that we are interested in. We continue to work on that. We continue to evaluate opportunities.
But you know, acquisitions are fluid, opportunities come and you know, they take time to evaluate, understand, etc. So as and when something happens and something is more concrete, which we can share, we will let the stakeholders know. Okay, great. Thank you very much.
operator
Thank you. We take the next question from the line of Parth Lahoti from Equity Capital. Please go ahead.
Unidentified Participant
Hi. Thanks for the opportunity. So my first question is, could you. Provide more detail on inorganic growth plans, potential acquisitions mentioned as a future growth driver, are any specific markets or technologies being targeted?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Ever since our ipo, we’ve maintained that there are three words. So currently we supply three point linkage and physician machine path. These are two verticals that we have in Scipio. We have been saying that hydraulics, our takeoff and fabrication are three platforms that we would like to enter into. And inorganic growth or acquisitions could be one way to get into these. We continue to evaluate opportunities. Like I said. But like I said, we spend time and effort on these.
But acquisitions are free, fluid by the very nature that they are. So as and when there is something more concrete, the company and the management will inform the stakeholders.
Unidentified Participant
Thank you. And my second question is what progress has been made in expanding the company’s offerings in synergistic verticals like pto, hydraulic cylinders and fabrication. How do you see this contributing to the revenue mix over the next two to three?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
So on the fabrication side part, on the small and the mid fabrication we have, we set up our own facility which is where you know, with some of our OEM customers we are beginning to get traction. It should start adding revenue in the Next let’s say 10 to 10 to 15 months time horizon. Some small, some revenue has actually already started coming in also from the aftermarket.
But the big bang that we are looking at is a little away. And on hydraulics we don’t have anything internally. Like I said there we will look at inorganic and as and when that happens we will let you know. So that’s where we stand.
Unidentified Participant
Thank you. Thank you so much.
operator
Thank you. The next question comes from the line of Madhun Rati from Counter Cyclical Investments. Please go ahead.
Madhur Rathi — Analyst
For FY26 what kind of growth can we expect in our top line and can we expect the margins also to improve from a low of 14% which I believe supports listing were the lowest. Margin that we ever did last quarter.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Hi Madhur. Yes Madhur. That’s the making effort in winning new business because we’ve maintained that that’s where growth. So in FY26 we are looking at the mid teens of top line growth as we, as we stand today. And of course as the top line comes in the operating deleverage also starts to turn itself around and, and the margins should improve.
Madhur Rathi — Analyst
Great ma’ am. And madam, what kind of capex do we have for this year and the next year?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
So you know typically our capex in the last sort of three years has been in the range of let’s say about 30 to 40 crores. And this capex really goes towards, you know, investing in capabilities or balancing equipment that we may want to and that is, that is what we are going to continue with. We stated in the past that you know, we’d like to keep our capex as 2.5% of our top line and I think we continue with that unless it is a very compelling reason to invest.
Madhur Rathi — Analyst
Great ma’ am, thank you very much and best of luck for.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Thank You, Madhuri.
operator
Thank you. The next question comes from the line of Nitin Shaghtar from Green Capital Single family office. Please go ahead.
Nitin Shakdher — Analyst
Hi, good afternoon. This is Nitin Shaktar from the Green Capital Single family office. So my question is more of an investor rather than an analyst. Now over the last eight to 12 quarters there is a declining trend.
operator
Nitin, I’m sorry to interrupt. Could you come closer to the microphone? Your voice is a little feeble.
Nitin Shakdher — Analyst
Okay, sorry. So my question is more as an investor rather than an analyst. Is it clear now the voice.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Thank you so much.
Nitin Shakdher — Analyst
Okay, so there’s a sort of a declining trend over the last 12 quarters which all of us are aware of. Earlier on, the margins used to be 21%. Back margins used to be 14%. So are you seeing any green shoots, any recovery, any counter cyclical trends that are emerging for this year? Just want to get a sense of what the management feels about addressing the declining trend.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Sure. Nitin, let me give you, let me give you a little bit of perspective on that. Right. And I think in the opening remarks Paramjit alluded to actually he described where the industry was in FY25 and let me tell you why we are seeing an FY26 segment by segment. The largest impact that we saw as an industry was in the large ag space where the industry was down in double high digits. Right. In the North American markets we still think this is where the industry is going to be in FY26. But Europe obviously looks better.
Asia Pacific doesn’t have large ag. And in this particular space we actually have won a good order from a large European oem which then gives us that much more strength over and above what the market does. I think the real green shoots that we are seeing are in the small ag industry. So the small ad industry declined in FY25 by, you know, in the high teens or close to 20%. And this in America also is projected if you listen to what our, or, you know, if we listen to what our customers are saying because we hear from them and we see what the end industry is doing.
So there we are seeing Americas will are likely to be in the negative 5 to 10% range and the rest of the world will be flat to 5%. Now small ag is where we have quite a stronghold. India is actually in terms of the number of units, the largest producer of small tractors. Right. And there we are very, very strong. We will grow in India. We have one business in Asia Pacific where the Asia Pacific is growing. That growth will Come to us and we continue to maintain a strong position in America. So that’s on the small ag business, the construction industry in FY25, again, which was at about again in the high teens and there we actually performed better because we continue to grow with customers.
And in FY26 that industry is globally projected to be flat to a negative 5%. In this particular case, again we have won new business both in the US and in Europe. So we remain very optimistic and excited to execute these new orders. The aftermarket as a segment is largely Europe and US for us. And that as a segment has been growing for us and we will continue to grow in FY26. Yes, we’ve seen green shoes large act still sees trouble and the new business that we’ve won should help us grow in the mid teens as I said earlier.
Nitin Shakdher — Analyst
So that includes Mexico is what you also pointed out that you customers there within the business of the customer and that Mexico initiative is on track.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Yes, Mexico, our Mexico entry remains on track. In our earlier calls we had said that January 26 is when we will start operations and we are absolutely on track to commence that as of today.
Nitin Shakdher — Analyst
Okay, so my last question. Is there any important sort of infusing more young blood and some succession which leads to more innovation and identifying new trends? Just some thoughts on the management. I mean you were also bought in by the management with that thought, I’m assuming. So some innovation trends. What people are thinking about?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Nitin, that’s a very, very interesting question. And I’m laughing because I consider myself to be still very young, you know. Yes, but I think. No, you’re right. I think there is a thought that we do have of seeing how we can bring new talent and younger talent into the workforce. In fact, if you actually see some of our colleagues in our US business are very, very young. They’re youngsters. And I think when we are now talking about recruitment, even in India, we are looking at taking in younger blood. But having said that, I think one thing that I’d like to caution is we would like to energize our team but with youth as well as the right experience to take us to the next level that we need to get to.
So we need to strike that balance. That’s the effort. So we’ve just hired a new chro who comes with a great, great pedigree. He is relatively on the younger side, has a lot of hunger, a great addition to our senior leadership team. So I think that’s the trajectory that we are going to be on.
Nitin Shakdher — Analyst
Okay, just holding the confidential management and taken as well as leading to a high degree payout ratio that’s one and second is financial information page on the website. It’s very clear, concise and structured and congratulations to invested relations and the company secretary for that. So that’s all from amand and all the best.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Thank you. Much appreciated. Thank you so much.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of Nikunsh Doshi from Bay Capital. Please go ahead.
Nikunj Doshi — Analyst
Yeah, thanks for the opportunity. I’m sorry if this was answered earlier. I just joined bit late so just wanted to understand since we are talking of mid teens and higher teens kind of growth for the current year. So can we expect quarter on quarter growth or it will be a lumpy H2 kind of a scenario.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
I think. Hi Nikunj and thank you for the question. Nikunj, if you look at our quarter four result, our quarter four result is better than quarter three. In our conference call on quarter three we had already alluded to the fact that you know, the bottom is potentially behind us. I’d like to say that largely that looks true. Except for the large AG segment. The. Quarter four has been better. Quarter one for us should be similar to quarter four. But I think what we are expecting and what we hear from customers, you know we speak to our large customers, John Deere, Caterpillar, Bobcat, Kubota, and what we hear from them is that second half of the year is where they are really going to see meaningful differences coming up and really calendar year 26. So yes we expect quarter one to be in line with quarter four. But the second half of the year is going to really see the green shoots of recovery taking shape and this.
Nikunj Doshi — Analyst
Trump administration is going to decide on tariffs say in July. So are you seeing any pre order or pre buying happening in this quarter because of that or inventory build up in us because of that or are you witnessing any of such phenomena?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Nikon, you know, given our near shoring model, we have been carrying inventory which is the pre tariff scenario, right. So that in any case gives us an edge. And like I was mentioning, we have reached an agreement with all our customers. So you know, customers also realize that the sooner we understand where both of us stand it’s better for normalcy of business because you can’t keep buying for the entire year. At some point in time we will need to come to a point where it will be bau the previous inventory that we hold helps us or has helped us and we’ve reached tariff agreements with most of our customers.
Nikunj Doshi — Analyst
Thank you. Thank you very much. Yes, thank you, Nicole.
operator
Thank you. The next question comes from the line of Nishant Chauhan from gog. Please go ahead.
Nishant Chowhan — Analyst
Hi, I’m audible.
operator
Yes.
Nishant Chowhan — Analyst
Okay, so see what would be the tariff that we currently would be bearing for our exposed to us and what would be the revised tariffs post the recent change that has happened. So.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Hi, Nishant. Nishant. There were two tariffs that were levied. The first tariff which was on steel and steel imports was 25%. And the other one which was levied in April was 10% which is a reciprocal tariff. And then this was increased to 26% and then till the 9th of July this was all put in a bay and saying we will all pay reciprocal tariffs of 10%. So right now these are the tariffs that are levied on us. How the situation changes is not something that we know as of now. But we continue to work closely with our customers to ensure that we can reach agreements at the earliest with them on how to ensure business is seamless for them and for us.
Nishant Chowhan — Analyst
Right. And what were the tariffs that were relied on us before the entire change that happened?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
I am not aware in 2025 if there were any other tariffs that were levied on Indian.
Nishant Chowhan — Analyst
No. Like for our exports to West Delhi. Any kind of. For duty or damage that there was.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Nothing for normal customs duty that we. Yeah, that’s the. So you know, we can get back to you with that data. I don’t have that data on the top of my head on what were the basic customs duty and the other customs duty that we were paying.
Nishant Chowhan — Analyst
Okay, no problem. And secondly, I mean I was just referring to one of your key customers, John Deere’s guidance that they’ve given wherein they speak about the FY25 outlook to be down 30% for large AD and maybe 10 to 15% for spawners. So given in that backdrop, what gives us the confidence that revenues will be still be able to post a high mid to high any kind of growth in FY26?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Ansha, the way we monitor our business and the way we work with customers is with a complete understanding that existing business is not where our growth is really going to come from. Our growth really comes from new businesses. And that’s where the focus has been right now. If you look at, even when you, when you look at John Deere’s large ag business, they’re very categorical oracle in saying that the impact in the Americas is going to be far more prominent than in Europe. And to counter that, you know, we’ve actually got new business in Europe with a large tractor oem.
So I think our business strategy really is to keep winning new business and keep adding new business so that we continue to grow.
Nishant Chowhan — Analyst
Okay. And is there any kind of order book number that we share or that we could probably. You can share with us?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
I think Nishant, we’ve been, you know, we’ve been saying since our quarter three call that we believe that the bottom is, the bottom of the cycle is over. We are seeing an uptrend coming quarter four results demonstrate that we are saying that Q1 will be in line with Q4 and that for the full year of FY20 we are looking at mid teen of top line growth.
Nishant Chowhan — Analyst
Great. Thank you. Thank you so much.
operator
Thank you. The next question comes from the line of Mithin Latia from Fractal Capital Investment. Please go ahead.
Miten Lathia — Analyst
Just to clarify on the tariff. So right now we do have a 10% tariff, right? So for quarter one that we are in right now, is there likely to be any impact on the P, L or the balance sheet, positive or negative?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Hi Nitin, as I was mentioning, post tariff we will be P and l neutral for FY26.
Miten Lathia — Analyst
Specifically for quarter one, I am asking because this thing has come all of a sudden, right? So we have been holding inventory in the US which today for any new product brought in would be subjected to tariff and hence in the normal course we should be beneficiaries of holding inventory. Right? So that is one aspect. The other is, you know, I don’t know how much of ongoing rolling inventory that you would have to bring into the rewards where the customer would have already locked in a price and hence would not pay you for these carriers. And that could have had a negative impact. So I was asking about the log, both the positive and the negative. What where would we stand in quarter one?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
So Mithin, I think from a cash flow point of view, yes, there will be a slight increase in the working capital because there will be a delay in when we pay and when we collect. From a PNL standpoint, we will be neutral because whatever we pay and you know, whatever agreements we’ve reached with our customers, we will be in a position where the P and L is not going to get negatively impacted. So you know, if we are holding inventory which is pre tariff, then we also continue to hold inventory which is post tariff. So that, that will, that will counter itself.
But that will show more in working capital rather than on the pnl.
Miten Lathia — Analyst
There won’t be a. Right. So the customer is not paying for any material.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
And your voice is not clear. You’ll have to come closer to your speaker, please.
Miten Lathia — Analyst
No, I was just double clarifying that there won’t be a game either. Right.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
We will be P and L neutral.
Miten Lathia — Analyst
Thank you.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Thank you. The next question comes from the line of Rahul Dhruv from Pegasus Growth. Please go ahead.
Rahul Dhruv — Analyst
Yeah, hi, good evening. Thank you for taking my call. Ma’ am, I had a question. You know you mentioned about new business that you got over the the last 12 month rolling period of around 190 crore. If I’m not wrong and if I look at that and I look at the fact that the overall revenues declined by 175 crores, would I be right in assuming that the legacy business was basically fallen by around 360 odd crores last year?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
I think Rahul High, I think that’s a fact of the market. Right. So I think if you look at how our end industries have performed, we have seen agriculture, large agriculture industry in the high 20s close to the 30%. Small. Ag close to 20% down. Construction, close to 18% down. Right. And in all of that we have actually our top line has grown only by 14 to 15%. So that actually tells you that yes, we follow trends with the legacy business and then whatever new business we’ve got has been able to stem the degrowth.
Rahul Dhruv — Analyst
Right. Okay. And so if you have looked at your, you know, your expectations for FY26, you mentioned you’ll be looking at mid teens or high teens growth if I do the same math for next year. And you know you said you have 200 crores of additional business, fresh business which will probably flow in this year as well. So are we looking at actual growth from the legacy business in the coming year?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Yes, legacy business this year is growing and it will grow in single digits. But the growth really will come from the new business.
Rahul Dhruv — Analyst
Great. I had one more question and I hope I can jump in with that. So. I think we are as exporters or rather we are always very, very used to depreciating currency which is the rupee. And historically we always had that gain coming through every year which we kind of probably passed through the balance sheet to the P and L. There’s some margin expansion, maybe not, I don’t know. Now I just want to know what would be the scenario, what would be the case in case of a situation where the rupee actually appreciates to say 81, 82 next year would you go and renegotiate the dollar price up with your customers?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
That’s the nature of our business, right? I think how we handle our prices with our customers is a fair amount of transparency. So you know, while you say that the rupees are depreciating currency and it’s a fact, I think what also happens is that there is an inflation that happens against it. So our conversations with customers are saying if there is the rupee depreciating, there is the inflation, there is a net off and you know, that’s how we look at life with customers. In case there is the rupee depreciating and then there is inflation, I think that’s the discussion to have with customers.
Given that we have long standing relationships, customers know that we are transparent in the way we always discuss these prices. Customers are also reasonable in understanding and approaching discussions. When you know, the rupee, when the rupee and the inflation cannot offset one another.
Rahul Dhruv — Analyst
So basically what you’re saying is that the compensation will go back to the rupee. Now appreciating and because of which some of the costs reducing, the net of which would result in x percent increase in the dollar price. That’s how it would go, right?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Sorry, I couldn’t hear you clearly. Rahul, can you come again?
Rahul Dhruv — Analyst
Yeah, so I’m just saying that the conversation with the client going forward, just assume the rupee appreciates this 8182 would be that you would go ahead and say, okay fine, there is an appreciation in the currency because of which and at the same time our costs have reduced because of that. So the net impact of that would result in the dollar price of my product going up. That’s how you basically negotiate with the customer.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
I think let’s look at it from the perspective that where we have agreements with customers, right, where they understand that in case the dollar is or the rupee is not depreciating and is appreciating, there will be a point at which we will need to sit across the table and understand what needs to come through to us. Because you know, ultimately if there is a loss that we have beyond a certain point that we can bear, it will only go against our investments for them. Because you know, we do invest capabilities, engineering, etc. For them. I think that happens.
Customers are reasonable. Customers are not working with us for the first few years, right? We’ve been working with them for many, many years and we’ve dealt with these cycles before. I think that’s the conversation to have saying you Know when the rupee and the inflation net off was not good, we had a certain understanding and we looked at life in a certain way today. Yardsticks have changed. This is the reality. And you know what?
Rahul Dhruv — Analyst
What?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
We can mutually reasonably agree as doing business together.
Rahul Dhruv — Analyst
Correct? Okay, just one last one if I can. When we talk of a 25% tariff on our products in the U.S. would it not make the local producer competitive enough to basically kind of undercut us at some point in time?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Very, very interesting question, Rahul, and thank you for asking it. I think this is super interesting and one would have actually thought that would be the case. But if you look at the steel prices, the base price, the input material cost, unfortunately we can’t compare the steel prices in India with the steel prices in the U.S. and if you see steel prices in India went down in Q1 of calendar 25 and they stabilized over let’s say April and May. And steel prices in the US kept going up in the first quarter and now they have started coming down slightly.
But the delta between the India steel price and the US steel price still remains. Labor remains to be expensive in the US compared to India. But net, net. What we are saying is that maybe some of these costs could be netted off with freight and with the tariffs. Right. Where we see this math play out for us, we are actually in a very strong position because then we can manufacture in our US subsidiary and supply but otherwise India still remains the best cost country.
Rahul Dhruv — Analyst
Perfect. Thank you ma’ am. Thanks for answering.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Thank you.
operator
Thank you. Ladies and gentlemen, in the interest of time and fairness to others, we request you to restrict to 1/4 per participant. The next question comes from the line of Sujal Jain from Walford pms. Please go ahead.
Unidentified Participant
Yeah, hello. Am I audible?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Yes.
Unidentified Participant
Yeah. Thanks for the opportunity. I had a question. In the event that industry conditions remain weak and we fall short of our meeting growth guidance ending up closer to high single digit or low double digit, what is the potential margin expansion from current cycle low levels? Like what levels do we have in place to drive margin? Because in such a scenario.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
I think, Sujan, if you look at our. Again, I’ll go back to the point that our gross margins remain intact. Right. Our gross margins have not been destroyed. I think what is really playing against is the operating deleverage. We’ve really been able to control that through FY25 which was, which is from where we are seeing we are recovering. So any recovery from here should be a positive to our EBITDA margins. And I think that’s what we are hoping for.
operator
Thank you. We take the next question from the line of Chandra Mauli Jagnathan and investor. Please go ahead.
Chandramouli Jagannathan — Analyst
Hello madam, a little bit of a hypothetical question.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Assuming the industry which you are catering, agree and the construction as a whole In a financial 23 year, let’s say 100 where Unipos clogged a top line of about 1350 crores and now the industry may be around 70 or 80 from its peak hundred. My question here is assuming that the industry goes back to 100, maybe not this year, financial year 27 or 28 will the Unipod top line can touch 18002000 crores? Since you are talking about the new.
Chandramouli Jagannathan — Analyst
Additions, added products and new order wings. And things like that.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Mr. Chandramoli, I think you know, I first want to give you a perspective of what’s happened, you know, 24 to 25. 24 to 25. As I was mentioning, across all the industry segments that we are in majority of them we’ve performed better than the industry and then we’ve actually grown 20% in our aftermarket industry. So the business that we are running is to be able to grow this business, fight the market and to be able to diversify. And the way to diversify other than the aftermarket is also geographic diversification. Again in FY26 the attempt is like we are saying the industry is not out of full pain, especially the large ag industry.
And there again the attempt is to continue winning new business so that we can grow. And that’s how we are saying that, you know, we will grow in double digits. I think from here. We’ve in the past, if you followed us, we’ve always said that barring these downturns that happen which are a nature of our business, we typically tend to grow in the mid teens and if we continue to grow in the mid teens and then there is the inorganic growth opportunity. Yes, we definitely, definitely can reach the numbers that you’re talking about. But it goes.
But I think I’m not giving a guidance. So forgive me, I’m not going to say that’s the guidance that I’m giving for the next three to five years. I’m just trying to answer your hypothetical by saying is that possible? Yes. But I think the more concrete answer to your question is that we have performed better than the industry in FY25. That’s the attempt in FY26. And for the organic business that is what we are going to continue to do.
operator
Thank you. We take the next question from the line of Madhur Rati from Counter Cyclical Investment. Please go ahead.
Madhur Rathi — Analyst
Hello ma’ am. For the past two to three years we have been changed at a new order has been in the 200 to 300 crore range. But. And we have said that when this scales up it can be a 10x opportunity as the addressable market increases. But that hasn’t happened yet. So why is that? And when can we expect some hard results for these new order wins that we are getting? Because these are not converting from pilot stage to supply to those. And second question would be on the aftermarket side, what was the revenue percentage that we got in FY25 and what is the new order winch or new product approval can we expect over the next 12 months?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Mother, aftermarket was 20% of our total revenue in SY25 and that. And that’s the growth that has happened. I think you know your. Sorry, if you could repeat the first part of the question. I forgot that.
Madhur Rathi — Analyst
Yeah. So it was more regarding the new order win that we have highlighted. So if I go through your past, since ug part has been listed it has been constantly the 200 to 300 and we have mentioned that when these opportunities queues up it could be a 10x opportunity and increase our addressable market. But what we are seeing is for the past two to three years these new orders are not converting post the pilot stage. They are just getting. We are just getting the repeat, repeat pilot orders again and again. So when can we expect an actual scale up of these orders going forward?
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
So Madhur, I think let me explain this or let me sort of look at life realistically and give a view and help you or help you get a viewpoint into the business. I think while the number of around 200 crores gives the impression that you know, there has been no new business added and things are getting delayed. That may be true across segments and that may be true in certain parts. But see for example in the construction business space we actually won new business where we did better than what we were anticipating. When the business was awarded, the industry saw a downturn and hence the legacy business fell.
AG business continued to do well. But then another segment, large AG has not taken off. So in that case yes there are pilots or there are even samples approved or in certain cases we even have ready to supply material. But we are holding onto that because the customers intake has reduced or their projects have been deferred. Right. So I think as long as the industry is in the downturn that unfortunately remains something that we will need to bear with but to be able to counter that is where we are saying can we regionally diversify so that if one part of the globe is seeing weakness can we make it up by supplying to other parts of the globe? And that’s where we’ve always said that Asia Pacific, Japan are opportunities for us to grow in.
And that’s where the focus has been to grow the business. So I think that’s where we are very confident that business will, we are seeing new wins in Asia Pacific and that you know that the growth opportunity which is significantly larger than 200 crores remains.
operator
Thank you ladies and gentlemen. Due to time constraints we take the last question from the line of Praneet and investor. Please go ahead.
Pranit — Analyst
Hello. Thank you for the opportunity. So I was wondering about the offtake of new products. I understand we’ll be able to get more business and there’s a structural decline in our primary segments. Segments such as like pto, Hydro fabrication. I understand you gave some commentary about how they’re still muted but can you give me some more idea on how these sales are going to progress? Are we going to use our existing distribution channels with existing customers to sell.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
These for us or are we planning. On developing new distribution channels to provide these products and grow our market that way? Because we are diversifying in terms of our geography and product. Right.
Pranit — Analyst
So how can we think about the. New products and diversifications in terms of product diversification beyond geopatible diversification. Hi Pranip. Pranit. The diversification that we are looking in the areas of fabrication, PTOs of hydraulics is to service the same customers and get a higher wallet share per vehicle with them.
Tanushree Shyam Bagrodia — Group Chief Operating Officer and Whole Time Director
Right. We know what we supply to them. We know what the adjacencies are and where we can actually get more business. To that extent the products may be new but the customers remain the same. The customers remain the same. Our distribution channels will remain the same. I think it’s just about deepening our relationships with the customer supply chain.
operator
Thank you ladies and gentlemen. That was the last question. I now hand the conference over to the management for their closing comments.
Paramjit Soni — Executive Vice Chairman of the Board
Thank you Tanishti. So dear all, we continue as we close this we continue to focus on our core strengths and you know build stronger business franchise by strategically partnering with our customers in their journey and success. Our focus and efforts are aligned towards achieving the targeted growth in coming years. With this I would like to thank all of you for taking time out today for joining today’s call. Thank you very much. Thank you.
operator
Thank you on behalf of Go India Advisors. That concludes this conference. Thank you for joining us, and you may now disconnect your lines.