Full-year revenue growth: 8-9%
Management guided 8-9% direction for FY2026 if exports revive, compared to 12.8% Q1 growth driven primarily by domestic market outperformance.
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EBITDA margin target: 17-18%
Reaching 19-19.5% levels may be challenging, but another 1% expansion is achievable as exports recover, raw materials stabilize, and operational efficiency improves.
FY2026 CapEx: INR 300 crore
Capital expenditure guidance for the full year set at INR 300 crore, with growth CapEx combined with ~25% replacement component.
Export recovery expected Q4 FY2026
North America and overall export improvement anticipated from Q4 onwards (post-October) as tariff clarity emerges and new platform launches with existing OEM customers materialize.
Double-Digit CAGR Target Over 3 Years
Internal company estimate targets double-digit year-on-year growth on constant metal prices basis. Customer raw material price adjustments offset metal cost fluctuations, making growth primarily volume-driven.
Export Recovery Expected in 6 Months
Management expects meaningful recovery in export revenues within 6 months as customers signal early indications of schedule improvements in Q4 FY26 and Q1 FY27. Truck market specifically expected to recover from H2.
Wind Energy Expansion Revenue from FY27
INR 80 crore additional investment in wind energy fastener capacity will start contributing from next financial year, building on 30-35% H1 growth and INR 100 crore already invested.
Gross Margin Sustainability
Management confirmed current 60%+ gross margin levels are not one-off; softening trend in boron steel and alloy steel prices is expected to continue, providing structural margin support.
FY26 EBITDA Trajectory of 70-80%
Management expects FY26 EBITDA to grow 70-80% driven by new EV order ramp-up, rupee weakness tailwinds on $180-200M exports, and additional export volumes.
Wind Energy to Reach High Single Digits/Double Digits
Wind energy currently contributes 5-6% of revenue and is expected to inch toward higher double digits as phase-2 volumes materialize and export customer base expands.
EV Orders Recalibrated but Platforms Intact
EV order trajectory originally guided at ₹200-250 crore in Year 1 and ₹450-500 crore in Year 2 has been recalibrated downward due to OEM delays, though all OEMs have confirmed platforms are on track.
FY26 Domestic Growth of 5-6%
Domestic auto industry expected to grow at mid-single digits (5-6%) in FY26, with CV recovery continuing and tractor momentum from good Kharif/Rabi seasons. Aftermarket to track 5% growth.
Targeting 18% EBITDA Margin
Management expects EBITDA margin to move towards 18% in the intermediate term, driven by export recovery, wind energy operating leverage, and aerospace ramp-up. Current 9M margin is 17.3%.
Double-Digit Revenue Growth for FY27
Management indicated they would not look at growth lower than double digits for FY27. With industry growth projected at 8-10% for CVs and tractors, management targets outperformance of ~200bps.
FY27 CapEx of INR 250 Crore
Approximately INR 250 crore annual CapEx planned for FY27, with ~30% being replacement CapEx and ~65-70% directly adding to revenue capacity.
EV Orders to Ramp in H2 FY27
EV project programs have been postponed; currently seeing trickle in ICE segment. EV ramp expected to start in second half of FY27 per customer indications.
FY26 Export Revenue Target
Company targets approximately $200 million in export revenues for FY26, maintaining the current 30% revenue share from exports.
FY26 Capex Commitment
Management plans to incur a minimum of INR 300 crores of capital expenditure in FY26, spread across traditional fasteners, aerospace, and wind energy businesses.
Wind Energy Revenue Doubling
Wind energy segment targeted to grow from current INR 300 crores to INR 600 crores, supported by operational INR 85-90 crore investment and ongoing customer negotiations for phase expansion.
Aerospace Revenue Growth Trajectory
Aerospace revenue expected to grow from $3 million to $6 million in the coming year, with long-term plans to reach $8-12 million, leveraging exotic materials expertise and penetration with GE and HAL.
FY27 Export Growth Target: 15-20%
Based on Class 8 truck pre-buy cycle, Cummins growth projections (25% high horsepower, 15% heavy duty), and ICE rebound with GM and Stellantis inventory normalization. Full EV order ramp expected by 2027.
FY27 Overall Revenue Growth: Double-Digit
Management targets double-digit growth for FY27, outperforming industry (CV 4-6%, PV 4-6%, Tractor 2%) by 3-4 percentage points through market share gains and new customer additions.
Annual Capex Commitment: INR 300 Crore
Company commits to investing not less than INR 300 crore annually, with 25-30% for replacement and 70% driven by customer requirements for capacity expansion across all plants.
Wind Energy Expansion to INR 50 Crore Monthly
Next phase of wind energy fastener expansion to take run rate from INR 30-35 crore to INR 50 crore per month level through customer and capacity growth.