Minda Corporation Limited ($MINDACORP)

Ladies and gentlemen, good day, and welcome to Minda Corporation's Q4 and FY '26 Conference Call. hosted by Emkay Global Financial Services Limited. [Operator Instructions] I now hand the conference over to Mr. Chirag Jain, Emkay Global Financial Services Limited. Thank you, and over to you, sir.

Thank you. Good evening, everyone. I would like to welcome the management team of Minda Corporation and thank them for this opportunity. Today, we have with us Mr. Aakash Minda, Executive Director; Mr. Ajay Agarwal, Group CFO and President, Financial and Strategy; and Mr. Nitesh Jain, Lead Investor Relations. I shall now hand over the call to the management team for their opening remarks, post which we will open the floor for Q&A. Over to you, gentlemen.

Thank you, Chirag. Good afternoon, everybody. And thank you, Chirag, and thank you, Emkay Global for hosting this call. Welcome to the Quarter 4 and the FY '26 Earnings Conference Call for Minda Corporation Limited. I hope you are all doing well. It is a pleasure to connect with you today and present the company's performance for the quarter and the full financial year, along with the key developments across our businesses. I will begin with a brief overview of the macroeconomic environment, followed by current trends in the automotive industry. Ajay Agarwal-ji will then take you through our financial and operational performance for the quarter and full year, after which we will open the floor for Q&A. As FY '26 concludes, the global economy has demonstrated notable resilience despite rising complexities. Geopolitical tensions in the Middle East are fueling commodity price swings and inflationary pressures while emerging market face uneven recovery. Amidst these global uncertainties, India continues to distinguish itself with strong performance. Rising capacity utilization and the activation of private sector capacities reinforce a supportive domestic macroeconomic environment, providing a solid foundation for our growth ambitions. Additionally, the increase in minimum wages announced by a couple of states like UP and Haryana governments effective 1st April 2026 is being addressed through productivity enhancements, controlled head count additions and improved workload management. Turning to the automotive sector. India concluded FY '26 on a strong note. After a cautious start, the second half saw a synchronized recovery across key segments, supported by fiscal and monetary measures, personal income tax rationalization and GST rate reductions which enhance customer affordability and disposable income. Despite challenges from geopolitical tensions and commodity price volatility, the industry maintained strong momentum throughout FY '26, reflecting underlying demand across the domestic market. The sector, however, faced significant inflationary pressures over the past 5 months. Prices for major commodities such as steel, aluminum and copper continued to rise, compounded by higher freight, packaging, energy costs as well as a broad increase in petrochemical linked expenses. While this commodity inflation is passed to the customer, it continues to influence overall cost structures. Quarter 4 of FY '26 witnessed strong performance across all major vehicle segments. The 2-wheeler segment witnessed strong growth of about 21% year-on-year growth led by GST reforms, urban demand strengthened and rising EV adoption. Passenger vehicle segments delivered record high sales with a growth of about 11.3% year-on-year, driven by favorable macro premiumization trends and rising contributions from SUVs and EVs. Commercial Vehicle segment reported broad-based growth across MHCV and LCVs categories of about 20% year-on-year growth. The tractor segment continued its momentum with a growth of more than 37% year-on-year basis, led by policy reforms and macro support with continued momentum expected despite geopolitical and commodity risks. Overall, the auto industry grew by 20% and closed quarter 4 FY '26 on a firm footing with a stable macroeconomic conditions and policy-led affordability gain. Coming to Minda Corporation, the quarter 4 FY '26 marked a record breaking quarter across all metrics for Minda Corporation with delivering its highest ever revenue, EBITDA and PAT. During quarter 4 FY '26, the company surpassed consensus estimates, delivering its highest ever quarterly revenue of INR 1,704 crores, a growth of 29% on a year-on-year basis. The company reported its highest EBITDA of INR 203 crores with a growth of 33% on a year-on-year basis, along with 11.9% EBITDA margin. The PAT reached INR 124 crores with a PAT margin of 7.3%, supported by improved operational efficiencies and a favorable product mix. For the full year FY '26, the company delivered highest ever annual revenue of INR 6,185 crores, registering a growth of 22.3% on a year-on-year basis. The company reported EBITDA of INR 721 crores with a growth of 25.5% on Y-o-Y basis with a margin expansion of 29 basis points. PAT for the full year was INR 358 crores, marking a growth of 40.3% year-on-year basis. On our associate company Flash Electronics, Flash has continued to deliver strong performance with revenues of INR 1,803 crores in FY '26 with an EBITDA of INR 310 crores and a margin of 17.2%, The strategic partnership has significantly strengthened our presence in high-growth domains such as EV, power electronics, traction motors, motor controllers and vehicle control units. This collaboration continues to deliver operational synergies and will play a pivotal role in achieving our growth road map. We have further strengthened our strategic footprint in the rapidly growing electric mobility ecosystem through joint ventures with Turntide Technologies of U.K. This partnership leverages Turntide's global technology expertise along with Minda Corporation's manufacturing and localization strength, enabling the delivery of advanced core competitive and locally manufactured powertrain solutions to meet the customer requirements. Additionally, in the year, through our newly formed joint venture with Toyodenso of Japan, we have secured significant orders for switches from leading Japanese OEMs with operations expected to commence in quarter 4 FY '27. Building on our strategic growth initiatives, Minda Corporation will now consolidate our associate company, Minda VAST, into the Minda Corporation from this fiscal year after the change in our shareholder agreement with our joint venture partner. This will enhance the 4-wheeler system solutions and platform-based offerings to our customers. Our performance continues to be guided by following key pillars of growth. which are: one, investment in existing businesses; second, export-led growth; third, premiumization of existing products; fourth, new product launches; fifth, new customer addition and increased penetration in existing customers; and sixth, investment into R&D and technology. In recognition of our shareholders, the Board of Directors have recommended a final dividend of 40% that is INR 0.80 per equity share on the face value, taking the total dividend to the year -- for the year to 70%, that is INR 1.40 per equity share. The company also continued to strengthen its business fundamentals during the year for new order wins having lifetime value exceeded of INR 10,000 crores across existing and emerging product categories supported by increasing customer engagement and higher content per vehicle opportunities. Our focus on technology-led products, localization initiatives and premium product offering continues to support the long-term growth visibility and export markets. Looking ahead, we remain committed to executing our strategic priorities with continued focus on enhancing our system solutions offering strengthening our customer relationships and investing in new technologies and our core. Our key focus remains on disciplined capital allocation, expanding our presence in high-growth segments and advancing R&D capabilities that will drive long-term value creation for our shareholders and stakeholders. With that, I would now like to invite Mr. Ajay Agarwal, Group CFO, to take you through the detailed financial performance and key highlights for the quarter. Over to you. Thank you.

Thank you, Akash. Before I start, I'm assuming all of you would have received the slides which have already been uploaded in the system. I'll start from Slide #2. It talks about the company's overview and its scale of operations. Like Akash briefly touched upon, our group revenue for financial year '26 stood at INR 90 billion, and the consolidated revenue stood at INR 6,185 crores. We have a manufacturing footprint, which includes 42 plants with over 23,000 associates and employees across our plants and offices all over the world. We remain focused on innovation which enabled us to file 330 patents during the fiscal year, of which 147 have already been granted. We work with 950 engineers across our offices and plants. And we are extremely proud of the work which they continue to do on a year-on-year basis quarter-on-quarter basis. Moving to Slide #4. During the quarter, we registered highest ever quarterly revenue of INR 1,704 crores, reflecting a growth of 29% year-on-year. EBITDA margin stood at 11.9%, with 37 basis points improvement over last year. Our lifetime order book registered -- recorded INR 3,500 crores during the quarter. And along with that, we have secured multiple platform-level instrument cluster orders from several leading OEMs. During the quarter, we filed 11 patents and resulting in the total patent filing to be in the range of 330. Talking about for the whole year, for the full year, the revenue grew at 22.3%, despite macro and micro challenging economic environment we operated. EBITDA margin stood at 11.7%, expanding our margin by 29 basis points year-on-year. We recorded a lifetime order book of INR 10,000 crores contributing about 20% from exports order. During the year, we have acquired several land parcels in industrial clusters which will help in the future for our expansion and establishing different plants across these various locations. Net-net, for the full year, we recorded our highest ever revenue at INR 6,185 crores. We recorded highest EBITDA at INR 721 crores. We recorded highest PAT at INR 338 crores. And also, we spent highest-ever CapEx for fiscal year '25-'26 at INR 413 crores. Aakash briefly passed upon our partnership with Turntide. We are extremely proud of this partnership. The joint venture has already been established during the first week of March '26. It combines clearly Turntide's global technology with our own expertise to deliver premium, localized electric vehicle solution and system solution to several of our 2-wheelers, 3-wheelers and LCV customers. It offers high-quality cost-competitive product, including axle flux motors, EV motors, electric water pump and motor controller amongst several other product and portfolio which Turntide has. Moving to Slide #9. Slide #9 refers to several of our products, and it gives you a glimpse of our revenue mix across our product portfolio. Wiring harness contributed 31% of our revenue. It's the maximum revenue that has been contributed by wiring harness. Vehicle access contributed 22%, Tie casting contributed 15% and cluster business contributed 17%. Speaking about mobility-wise revenue split, 2-wheeler and 3-wheelers contributed 48% of the group's revenue. Commercial vehicle contributed 28%. Passenger vehicle contributed 14% and aftermarket contributed about 10%. With the consolidation of Minda VAST business with Minda Corporation from financial year '27 onwards, it will certainly accelerate our vision to achieve 25% of revenue from passenger vehicle segment, which currently stands at about 14%. Moving to Slide #10. It briefly talks about Flash Electronics performance. Flash also did quite well throughout the whole year, particularly in Q4 as well. The Q4 and full year revenue stood at INR 493 crores and INR 1,803 crores, respectively. EBITDA margin stood at 18% and PAT margin stood at 9.9%. From a full year perspective, it is INR 310 crore EBITDA and a PAT and PAT margin of INR 137 crores with 7.6%, respectively. Aakash briefly touched about several of our guided principle and strategic pillars, and I'll not dwell too much into it. Clearly, the group is extremely focused on those pillars and will be guided how we are performing, and we will measure our success basis how we are performing across those 5, 6 pillars. So looking ahead, we continue to invest in our growth through new product categories, strategic partnership. Toyodenso is a classic example. Turntide is another example, and several of those are there in the pipeline and our R&D capabilities. Our focus remains on expanding our footprint in high-growth areas like EV, strengthening our customer relationship and building on our leadership in key technology-driven segments. So all in all, the year here has been extremely good and quarter particularly has been good. So with this, thank you, and I will now hand it over to operator for the Q&A.

[Operator Instructions] The first question is from the line of Jay Kale from Elara Capital.

Congratulations on a great set of numbers, significantly outperforming the industry. My first question is regarding your information and connected systems. We've seen that it has seen a steady growth rate outperforming our overall company growth rate over the year. If you could just point out a few things on the wiring harness. Where are we in terms of market share gains because of the localization? Where are we in terms of localization content? And which segment are we gaining market share and outperforming the industry? And within that also, in instrument clusters also whether that growth is -- whether the new orders that we have received in the last 1 or 2 years, how have they been shaping up and the outlook going forward?

Yes. Thank you, Jay, for your question. So I'll first start with the wiring harness. Again, wiring harness has been one of the core for the group for a long time. And as we have shared over the past few years, we have been focusing on particularly localization, where the connectors and the couplers become a very important part. So now the requirement of Minda Corporation is being fulfilled to the tune of about 18% to 19% by our own division. And we are now working on a couple of other technology-related products when it comes to the ICE or even high voltage or electric vehicle mobility as well as on the electronics connectors is what we are working on with this division through our investment into the own engineering capabilities and again, partnering up with a couple of international companies. In the -- with respect to the market share, as you know, the Japanese 4-wheeler passenger vehicles is catered by our joint venture company Minda Furukawa. So that is something that we do not approach. But the market share gains have been largely in the area of 2-wheelers, 3-wheelers as well as commercial vehicles. So these are areas that are giving us growth. Along with the premiumization. we have also seen a couple of addition of new customers as well as increase in content from the high-voltage wiring harnesses and connectors. When it comes to the instrument clusters as a business, as we've also shared before that we've been in the journey of increasing the kit value by way of premiumization and offering from component to system to platform-related products. Now here, we have won multiple orders over the past year or 2 on account of the TFT clusters ranging from between 4-inch up to going up to even 15 inch. And in the previous quarter and in the next quarters to come, we'll see some of them coming into SOP and this is across segments, which is passenger vehicle as well as commercial vehicle as a complete platform-related product and 2-wheelers also from domestic and exports.

Understood. My second question is regarding your Turntide JV. How should I look at it the scope of this JV, especially with Flash Electronics also having EV motors, what is the area that is solving your needs with Turntide which Flash wasn't? How should these to go ahead from a customer as well as segment perspective?

Yes. So Turntide is from U.K. and they have a legacy from Sevcon and Bob Bonner, which are pretty famous companies in the automotive industry. Turntide brings in from the motor perspective, axial flux technology, which Flash does not have. And axial flux can be again used in all vehicle segments, particularly where the space is a constraint. So that is where the axial flux technology comes from Turntide. When it comes to the motor controllers, below a certain threshold is done by Flash Electronics and above certain thresholds for the 3-wheeler as well as the commercial vehicle segment is going to be done by Turntide.

And they don't have passenger vehicle EV motor capability as of yet, right?

No. For passenger vehicle, EV motor capabilities, Flash Electronics already have the product developed to their technical center in Poland. We are already under discussion with a few customers where our products are in active engagement in India for the passenger vehicle motors and a complete system.

Understood. And if you could just -- last question, if you can just speak a little bit about the commodity pressures in this quarter and going forward in the next quarter? And how much could this increasing labor cost impact your margins going forward? Some guidance on the margins?

See, obviously, as you know, commodity cycle has been extremely volatile. And when I look at across our main commodity, whether it is copper, zinc and aluminum, throughout the year, we saw escalation anywhere between 30% to 40%. And most of our contracts with our customers are on pass on pass-through basis. So any escalation should not necessarily eat up our margin. But definitely, since there is no profit element attached to the escalation, you would see some bit of impact on the EBITDA margin. But from a cost escalation point of view, it should not eat up our profit. What will happen in the future? It's very difficult to predict how the commodity cycle will move. But looking at last 20, 30 years, we always found that after every alternative 3 years, commodity cycle moves on an upturn basis. So unless and until the geopolitical situation improves, we don't see this cooling off at least in the next quarter or so. So we are fully prepared to take control of commodity and fully prepared how do we deal with the escalation and speaking with our customers to see if we can manage the escalation in the best possible manner.

Understood. Just one last. Your revenue and EBITDA for Flash is largely stable on a quarter-on-quarter basis, but PAT has moved up significantly. Any line item you want to call out below EBITDA on a quarter-on-quarter basis.

Just a minute.

Yes. For the Flash Electronics, again, the -- largely the focus has been on the electric vehicle mobility, where on quarter-on-quarter, we can see how the penetration of the 2-wheeler or the 3-wheeler industry has been moving per se. But largely, when there are some of the export orders from the metallics business that are coming into effect in this quarter. hence we can see the rise, particularly and as well as the higher utilization of capacities on the Flash. So hence, you can see this amount of jump in the order line.

Okay. No, I was just referring to the difference in PAT.

Yes. So PAT is mainly to do with the interest cost. I think their overall interest cost has gone down, which has resulted in a better PAT performance.

The next question is from the line of Raghunandhan from Nuvama Research.

Congratulations on strong results once again, and thank you for the detailed opening remarks. Sir, my first question, the share of profit from associates for the full year was at INR 81 crores. Can you give a breakup? I mean INR 67 crores is from Flash. Can you indicate the remaining amount? What would be the share of VAST and Furukawa? And also for VAST if you can share some numbers on revenue, EBITDA, PAT for full year FY '26?

So you're right, Raghu, Flash contributed about INR 70 crores in contributing to the PAT. Furukawa contributed about INR 8 crores. EVQ did not contribute. And M VAST, Minda VAST contributed about INR 5 crores. And from a Minda VAST perspective, last year, they did about, give or take, INR 500 crore revenue with an EBITDA margin of about 7%. We expect the EBITDA performance to improve in the current fiscal year with the improvement in top line as well.

That's useful, sir. And VAST revenue would be predominantly PV?

Predominantly PV yes.

Yes. VAST revenue more than 90% is passenger vehicle.

Noted, sir. That is very helpful. And because you've been winning large orders across categories, for FY '27, which would be the major segments where order executions are expected? How do you see the share of segments moving in FY '27? Which segments are likely to outperform?

So Raghu, largely the pie will remain similar once the Minda VAST is definitely added. So the passenger vehicle segment at the overall Minda Corporation level will grow north of 20%. However, in terms of the product-wise, you can say the instrument cluster business as well as the wiring harness business will see maximum amount of product launches. followed by the die casting for exports will be the top 3. The other segments, which include our electric vehicle mobility products, sensors, various electronic products like wireless charges and others, that will also come into mass production.

Noted, sir. For switches and sunroof, FY '28 will be the first full year of operation. Based on the orders received, how do you see the revenue potential in the first year?

So yes, for sunroof, we have received the lifetime order of about INR 150 crores last year. We are getting into the mass production in the next 4 to 5 months. So yes, FY '28 will be the first full year revenue. When it comes to the switches, which is coming again into the mass production by March this year, so the FY '28 will be the ramp-up year, I would say. So the first peak year would be, let's say, FY '29 for the switches joint venture.

Noted. Extremely helpful. Just a last question. For FY '27, can you indicate what would be your CapEx and investments? .

So our CapEx has been in the range of INR 350 crores to INR 400 crores. And this year also, we expect to be in that range, maybe 10% plus of that. close to about INR 400 crores, INR 450 crores CapEx we are expecting for fiscal year '26, '27.

The next question is from the line of Jyoti Singh from Haitong.

Sir, with the increased content per vehicle across EV and premium vehicle, so how does you see Minda's content per vehicle opportunity evolving across 2-wheeler, PV and CV segment? And also the strategic JV that we have done. So when do we see the ventures contributing meaningfully to revenue and profitability? And what is the expected scale over the next 3 to 5 years? And another, if you can give some outlook on the CV side.

Yes, there are multiple questions. But I think I'll just start by sharing that we just answered the questions of the new joint venture that we have signed. Sunroof is coming into SOP this year. The joint venture for the switches is coming by March. So let's say, on the April of FY '28. When it comes to the Turntide joint venture, we have already secured businesses, and the existing running businesses are already being transferred in the next 3 to 4 months. So the SOP is expected to happen in this year. And probably, you can see the peak starting from next year because the EV penetration will increase. Your last question was on account of the electric vehicle mobility. Of course, the penetration across segments is increasing year-on-year, we have seen particularly after the West Asia war, the focus on electric vehicle mobility in 2-wheeler segment as well as the passenger vehicle segment is increasing. And we, with our products, are fully ready to cater that across segments from power electronics to motors, to electric charging rated product lines as a system solution offering. So if you could also repeat your first question, then I could share more highlights on that.

Yes. So sir, I was asking on the EV side and the premium vehicle,, so how we are seeing the content per vehicle opportunity is now evolving across EV that is evolving across 2-wheeler, PV and CV side?

Yes. So premiumization is one of our core pillars of growth going forward. Now it depends on different product lines, but the majority is driven by electronics and system solution offering. If I look at the wiring harness space you can say somewhere about every year in totality on an average about 20% increase in the kit values seen across products, across segments. That is something which is, as a general of thump you can say, with the approach that we are moving forward and adding products in terms of adjacencies as well as system solutions offering from the premiumization perspective.

Okay. Sir, last question is on the CV outlook side, what kind of opportunity we are seeing going forward?

CV outlook?

Yes, sir. On the CV side, what kind of opportunity we are seeing?

Yes. So CV is again expected to continue the growth largely by, again, the exports which are being driven India, India is growing, extreme amount of roads and transportation is being built across -- the number of highways that are being built is phenomenal. There are more and more airports coming in. So by and large, the economy is booming. And so with that logistics need to move. So commercial vehicle is expected to do well in the coming quarters as revenue.

Next question is from the line of Devesh Kayal from Boring AMC.

Sir, just want to understand what is your status on the dye casting and the clusters plant, when those will be commissioned and visibility on capacity utilization for the same commo order book currently?

So when it comes to our capacity utilization as in the complete group on an average, you can say, is somewhere between 75% to 80%, again, spread differently. When it comes to the Minda Instruments second plant, which is under commissioning, we're expected to be ready by quarter 1 of next year, and that will house all our advanced electronics technologies from the instrument cluster and cockpit point of view. When it comes to the die casting, our one plant is already operational in Noida. So that has already started production. Our fifth plant in Pune is under commissioning, that should take about 18 months from here on because that will be a majorly export-related facility with much higher and much larger equipments and infrastructure.

Just if you can elaborate on the previous question on the CV outlook because we had a good outperformance vis-a-vis the OEMs -- CV OEMs. So can we continue to outperform by 2, 3x even this year?

I will not be able to comment on the 2, 3x time, but I can share that again, a lot of things are changing in the commercial vehicle segment even for example the safety side as well as many regulatory aspects such as the tire pressure system, the air conditions coming in, long route drives that are happening, charging for the commercial vehicle, et cetera, is coming along. So definitely, the commercial vehicle segment order book as well as the growth from the volume perspective is definitely bound to continue.

Okay. And sir, on the synergies with the Flash Electronics. So we were expecting the synergies to start from the customer approval side. So do we expect from this year we should expect some synergies?

Yes, absolutely. We have already secured some of the orders particularly in our die casting space that we had shared before, for the EV motors and other things. So that is under development and should be under mass production in the next 2 quarters or so. Also, our facilities, which are in -- particularly in the Asian countries or Vietnam and Indonesia are starting to secure order book. for Flash-related customers. So that is something which are under works. And of course, the sourcing synergies that we had shared, which is expected to see benefits from Minda Corporation as well as the Flash is expected to start the results. Last not the least is one of the joint ventures that we signed, the Turntide is again, something that we're building up on technology along with the old tech center, Spark Minda Technical Center and Turntide which all continue to work together to make the magnet-less motors, X1 products for the segments. So these are the all avenues how we are coming together as one organization.

And sir, last question on the gross margin. So we had 180 bps Q-on-Q decline in gross margin. So do we have any levers now because R&D spends are now already like 3.2%. So do we have any levers at the OpEx level, which can offset the decline in margins in the near future?

Well, the declining margin is mainly on account of RMC going up. There's -- obviously, we all saw huge cost pressure because of commodities run up and I'm hoping that things should settle down. Insofar as different levers are concerned, we are -- if you see our EBITDA margin has improved. So therefore, there are other levels where we have worked, which we could -- which were slightly controllable from our end, whether it is people cost, whether it is conversion cost, whether it is power cost, several of those levers have helped us to maintain the margin despite the RMC cost going up.

Next question is from the line of Chirag Jain from Emkay Global.

Sir, just wanted to understand the thought process behind the R&D spend. I think over the last few years, we have seen a consistent increase but in FY '26, we have seen some sort of normalization in terms of R&D spend. So maybe if you can elaborate on that?

Yes. See, the revenue has gone up. Number two, when it comes to the investment into engineering, we have strategies in place on how we are and what we are going to invest. So again, product is one side. Second is of course building our capability in building a robust and resilient supply chain for the industry and how our R&D can play a very important part in that. So by upgrading our quality system, software quality, infrastructure, all those things are being put in place. So it's a cycle-based approach where we strengthen ourselves on a year-to-year basis as well as consistently optimize on where we are spending but more importantly, come up with the front-end solutions, which are the right customer product fits in our platform-based approach. So it is how we kind of become more stronger ourselves in the area that we're investing on the R&D but the amount has not been reduced, but the focus areas have been defined, I would say, for us to propel that up.

Next question is from the line of Neel Mehta from DR Choksey.

Congratulations on a great set of numbers. Can you please decompose the 29% year-on-year growth to underlying volume growth, CPV expansion and new product contribution?

So yes, our growth, particularly in the volume side, if I speak on the segment per se, we have grown more than 26% in the 2-wheeler space. outperforming the industry by about 12%. Similarly, in our passenger vehicles, we have grown more than 12%. In the commercial vehicle space, also, we have grown somewhere about 25% as well as in terms of our exports as well, we have grown. So segment-wise, everywhere, we can see a growth. When it comes to the factor of new products or premiumization, that has led to, you can say, somewhere about, out of 29%, you can say somewhere about 12% to 13% of growth has come from premiumization of new product addition. And the others have been further from the customer penetration and new customer additions.

[Operator Instructions] The next question is from the line of Rohit Taparia, an individual investor.

Sir, I have a couple of questions. First question is that what is your revenue outlook for FY '27?

Sorry, please go ahead, Rohit.

Yes, sir. And second question is that as we -- as you mentioned that our lifetime order book is of INR 10,000 crores. What is the time line for that execution of the current order book?

While we don't give future outlook in terms of revenue guidance, but our guiding principle has been that we want to grow our business, at least 50% more than the industry growth. So if the industry grows about 10%, so we should look at revenue growth in Minda Corporation to the tune of 15% plus. Now our order book is INR 10,000 crores, which we have registered throughout the year, and different products, different customer will have a different life cycle. Some may be order for 5 years, so maybe for 6 years. But by and large, you can say it ranges anywhere between 48 months to 60 months.

Okay, sir. And sir, last question is that earlier you had given a guidance of -- for FY 2030 of about INR 17,500 crores approx. So are we in line with that? .

Yes. So we have kept the long-term vision in mind for 2030 to deliver INR 17,500 crores top line with 12.5% EBITDA margin. And the whole group is working towards achieving those stated numbers.

The next question is from the line of Hemant, an individual investor.

Congratulations on a very good set of numbers. So just sir, in line with the question of the previous participant, I wanted to ask you one thing. Like INR 17,500 crores of revenue by FY 2030, I think it implies a revenue CAGR of 22% or 25%. So sir, will it be possible to achieve our 22% or 25% kind of growth in FY '27? Any range is fine, sir.

So if you look at during financial year '25, '26, we grew our business by 22% and the group consolidated revenue, including Flash and all, it's roughly, give or take, about INR 9,000-odd crores. We are looking at 4-year window to deliver INR 17,500 crores number. So if we go about 19%, 20% growth from here on, we are quite destined to deliver INR 17,500 crores revenue. .

So sir, we should grow at least by 20%, I guess, in FY '27, right? .

That's right. That's right. .

And sir, so basically, we'll be around tripling the revenue from existing INR 6,200 crores to INR 17,500 crores by FY '30?

Which will include Flash Electronics as well. So INR 6,200 crores do not include Flash Electronics, and it does not include Minda VAST as well. So if I include Minda VAST, Flash Electronics, and all, then our group revenue today stands at about INR 9,000-odd crores.

So sir, I mean, the guidance of -- I mean, the vision of FY '30 was INR 17,500 crores. It includes Flash Electronics as well as the new associate company or just the Minda products?

So Mr. Hemant, as we shared that the vision is about INR 17,500 crores and there are multiple initiatives that are being taken on account of organic growth as well as inorganic growth. And this accounts for a multiple that we are currently working on. At group level, we have shared that there are INR 9,000 crores. And moving forward, we are working on multiple opportunities, including joint ventures, consolidation, M&A opportunities as well as organic growth to ensure this.

So this INR 17,500 crores vision is on a group level on a consolidated basis, right, sir?

Yes, that's right.

Basically, we'll be doubling the revenue. This is what I can say, right?

Yes.

The next question is from the line of Arjun Khanna from Kotak Mutual Fund.

Congratulations. I think a very strong set of numbers. I think margin delivery which you have talked of has come through. My first query is in terms of our Turntide JV. So while we talk of the Axle flux motors, essentially, if one looks at the current platforms. So we seem to have more on the radial flux side. So when you say you won orders already, could you elaborate a little more? Are we talking of 2-wheelers, PVs, CVs, which segments are we referring to? And secondly, in terms of CapEx, this JV would be more of an assembly operations as of now? Or we would start with full end of -- with localization?

So to first answer your question, whether it is any product or joint venture, we are looking at deep localization as much as possible in the -- from the SOP itself. And that is where Minda Corporation is focusing along with our partners' technical center as well as the entire initiative for that is our support to the -- offerings to the customer. Number two, when it comes to the Turntide joint venture. As I mentioned, we've already won orders when it comes to the motor controllers as well as the other electronic space. So that is going to start SOP in about 5 to 6 months. And when talking about the motors, particularly, there also we are under advanced discussions. I may not be able to share further details because of confidentiality nature.

Sure. Just one query out here. Since this technology is slightly different, it's superior, but also the cost is higher, do you envision this to become substantially larger than the current set of motors?

It depends to be honest, depending on the segment and the vehicle architecture. So again, we are offering the complete portfolio of motors in our umbrella. That is the objective that we are going forward with. So if any customer would like to take motor or motor or motor, we are -- we can offer that. That is our objective and as a complete system solution offering.

Sure. Very helpful. Sir, the second question is just -- it's more of a broad question. We are hearing a lot of labor cost inflation. Obviously would be hit by commodity prices. So there would be a base effect impact on margins. But in terms of stresses, in spite of that, this quarter, we have actually seen a good quarter. How do you see this pan out over the year ahead? Basically, I'm sure we'd move towards a direction of 12.5% over a few years. But just in terms of the outlook for this year and maybe the next?

So we don't know how the states will react. But as we have mentioned in our statement, Minda Operation is focusing on operational excellence. Now this includes being a manufacturing company, how we can put in the best practices in place by using automation, AI, Industry 5.0, work closely with our suppliers in order to work the best for our customers. And continuously, we engage and on our idea now we can deliver better with the same set of people, generate higher revenue and spread our assets, including our optimization of our -- the people strength that we have.

And on the commodity side, sir, have you seen any impact? I know LPG was a concern for a number of players, but aside from that availability, et cetera, have you faced any issues or with our tier 2 tier 3 suppliers?

No, there is -- I can say that we have planned our next couple of months in line with our customers. So to ensure our customer requirements, we are fully appearing and committed for delivering whatever is needed. So we have in place all our requirements with our suppliers for all sorts of commodities.

The next question is from the line of Jay from Elara Capital.

So first question is on the as a product. We've seen that in the upcoming CAFE regulations, this product -- adoption of this product could give benefits to the OEMs. Where are we in the adoption as per you? And are we seeing increased customer interest? And how large could this product be for you going forward?

So Jay, the focus is on safety, while the commercial vehicles, passenger vehicles, all segments are growing, the vehicle count is increasing and so is the concern for safety in accidents in India. So the entire industry is focusing along with multiple regulations to reduce the fatality or the accidents. And anything that gives an information to the driver and helps in increasing safety is something that is what everybody is working for. Tire pressure monitoring system is one such key critical sensor, which is in the portfolio of Minda Corporation as well as we have multiple orders in place also getting into start-up production. I cannot share which customers, what segments, but they are across multiple segments that we are already won businesses coming into mass production soon.

Ladies and gentlemen, due to time constraint, that was last question. I now hand the floor over to the management for closing comments.

So thank you very much, and I would like to really thank Emkay Global for organizing this call. and thank everyone for joining the call. We at Minda Corporation remain highly confident in our growth trajectory. both in near term and long term, driven by strategic investments and unwavering commitment to advancing our products and technologies. We are committed to creating value for all our stakeholders and shareholders. We're investing deeply in our capabilities in terms of people, capacities, capabilities, competencies and technologies across segments and divisions. I hope we have been able to respond to most of the queries. For further information, we request to please do get in touch with our IR team. Thank you very much. Thanks for your support. Have a great day.

Thank you very much. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.