Ladies and gentlemen, good day, and welcome to Timken India Limited Q4 FY 2026 Earnings Conference Call hosted by Avendus Spark. As a reminder, all participant lines will be 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 an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mukesh Saraf from Avendus Spark. Thank you, and over to you, sir.
Thank you, Yusuf. Good evening, everyone. Mukesh Saraf here from Avendus Spark. Appreciate everybody logging into this Q4 FY 2026 earnings conference call of Timken India. From the management team, I'm pleased to host Mr. Sanjay Koul, Chairman and Managing Director; Mr. Sujit Kumar Pattanaik, Business Controller India, CFO, and Whole Time Director. I now hand over the call to Mr. Koul for his opening remarks, post which, we'll begin with the Q&A. Over to you, sir.
Thank you very much. Thanks a lot. Hello all, and good evening. Thanks for joining today. Obviously it is always a pleasure and a privilege to welcome you all to the quarterly call, so that we can discuss the results of the last quarter of the previous financial year, and also the, you know, the whole year a little bit as well. I'm pleased to report that FY 2026 has been another year of consistent and a little bit, if I can use the word broad-based performance for Timken India.
We have delivered good, healthy revenue growth, which was obviously driven by the strong demand in core industrial segments, supported by good execution on our projects and also some momentum we see in both domestic and the exports. Our fourth quarter performance remained very resilient despite the issues of, you know, uncertainty in the microeconomics and cost pressures are pretty significant and then obviously we are doing investments, so that also hand in hand. Update on Q4 FY 2026. First time we crossed INR 1,000 crore in a quarter revenue, so that is a milestone, first time for us.
Revenue from operations stood at INR 10,731 million, reflecting a 14.2% growth over the same period last year. PBT for the quarter stood at INR 2,074 million, INR 207 crore. PBT margin was at 19.3% compared to little bit less in Q3 FY 2026 and 21% in Q4 FY 2025. We had excluding a one-time BAPI adjustment impact in the previous year and a labor code related impact in the current year. PBT margin improved by around 10 basis points over the same period last year.
The consolidated numbers, consolidated revenue from operations stood at INR 10,898 million for the quarter ending March 31st, 2026 and INR 34,780 million for the whole year ended on March 31st. Consolidated PBT stood at INR 2,120 million for the quarter and INR 5,526 million for the whole year. The full financial numbers closed the year with all-time highest standalone revenue of INR 31,478 million, representing an 8.6% growth over last year, driven by growth, a little bit of good growth in domestic and export markets. PBT stood at INR 5,304 million, almost a 3% increase over last year, with PBT margin at 15.5%, EBIT at 18.7%.
Cash generated from operation at INR 4,374 million, improved from last year. Capital advance for the year at INR 2,972 million, which was 8.7% of the revenue. Very important operation and strategic updates. The board has approved the merger of Timken GGB with Timken India Limited. This will help drive operational synergies, improve effectiveness, and reduce obviously overall cost. We have completed the investment towards the renewable energy initiatives, which we'll continue to do across all our plants. That will obviously support long-term power security, energy security, and cost optimization. All lines at our new Bharuch plant have now been capitalized, and the plant continues to ramp up progressively.
Massive PPAP work being done, and obviously we have started shipping and selling out of that plant. Investment towards rail expansion in Jamshedpur and plain bearing expansion in Bharuch continue to remain broadly on track. On the geopolitical front, the Middle East conflict did not have any significant financial impact on that quarter, you know, just finished quarter. However, as we enter the new financial year, we are beginning to see some inflation trends, as you must be fully aware. Input costs are going up, so we are actively working on mitigation incentive, both in terms of cost reduction activities, efficiencies, and customer engagement, which is why we will recover the increases. On the market outlook, global condition continue to remain uncertain, as we all know, and slower growth trends. Geopolitical developments are changing every day.
Trade tensions are very much there. Supply chain realignments are happening. That sentiment is very much there. Despite the backdrop, our demand across for most of the key segments, continues to remain relatively stable. Focus remains on obviously execution and efficiency, but the demand is pretty stable. That is the opening remarks, and I'm sure, let us jump into the Q&A. With me is Sujit Ji, our CFO as well, so that between us we can handle the questions, if you may please.
Thank you very much, sir. 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 withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Ankur Sharma from HDFC Life. Please go ahead.
Good evening, sir. Thanks for your time as always. Three questions. One, you know, you did talk about raw material inflation and obviously costs going up. I'm just trying to understand, you know, in terms of price hikes, how much have you already tried to kind of take? How much more needs to be taken? In the context, which I would understand is that, you know, passing on price hikes would be relatively easier in the aftermarket channel, and maybe more difficult with your OEM customers. Just some color in terms of, you know, how much price hikes have been taken, need to be taken, and could there be some margin impact maybe in the next one or two quarters till all of that gets passed on?
Yeah. You know, the cost increases are happening on many fronts. Our steel has started showing the signs of cost changes. The knocks on the doors are happening. That is going to come, and obviously that gets passed on. It has not come up yet in volume. Second is that any input which is generally our grinding wheels, coolants, everything has gone up. This quarter we are trying to pass it on. I should say that we have only begin, you know, passing it on, we are at 10% currently. The massive work is underway. The currency also, there is an impact on currency as well.
Currency deterioration is there, though we import finished bearings for trading. Otherwise, raw material also there is an indirect little bit of impact because for making grinding wheels in India something is coming from China or VCI, you know, packaging is coming from o utside. On our cost passing, the exercise, both in terms of giving cost and taking the price, the job has started from middle of April, in a very serious note, both of giving and collecting. We are at a 10% as we talk, so 90% has to be achieved on realizing this price. It will happen over like two quarters, this quarter and next quarter. In case still there is volatility, then it might continue a little bit.
As I speak, our sales head, was at Pune at one of the large companies who supply bearings. Obviously, everybody is just giving change of price. We are in that super mode of passing it on. But, t o your question, both in terms of giving and taking, we have obviously started giving. On taking, we have still not achieved more than 10%, but we are on an overdrive on that, and we hope between this quarter and next quarter we should be able to pass it on. Obviously there is always this lag.
Mm-hmm, mm-hmm
Which happens with negotiations. You know the automotive world, they will keep on dragging as much as they can, but it is going to be retrospective hopefully. From April 15th really, the whole thing of giving and also passing it on has begun.
Okay. Fair. Second question, sir, on the domestic rail and the CV market, you know, how are you seeing, you know, in terms of an outlook of growth opportunity there? Also on the export front, especially in the U.S. geography, you know, which is, I think 50% of our exports. Are we seeing any pickup there? Of course, the trade deal is still pending, but, you know, as and when that happens, I'm assuming it will help. Before that, in the interim, you know, how are you seeing exports overall and specifically to U.S.? Yeah.
Yeah. Ankur, on the export side, the last quarter, or last quarter of the last financial year. W e did INR 222 crore which was 21% of our pie, which was INR 222 crore compared to quarter three. The previous quarter it was INR 160, INR 159.2 exactly. S o, you can see there is definitely a quarter-over-quarter 40% jump. I think year-on-year, that jump is also, you know, if you take the whole year, the jump is almost 66%. You, despite this trade deal not happening, there is definitely a pull from the North American market. There is, we see that pull from the export. We had a good quarter on exports. I would say if you see Q3 was INR 159 and Q4 FY 2025 was INR 133, we did INR 222.
That is, plus a good guide here. On the rail, definitely this market, as I always say, is going to be slow and steady. You know, there are always ups and downs. Sometimes, there are delay from the railway board, and sometimes the wagon builder has a delay. All that, and then, the cash in circulation, between the wagon builders and the railways. That would remain, you know, it would be slow and steady growth. And that is where we are. F or us in Q4 2026 was INR 278 crore. If you compare it to Q3 of FY 2026 was INR 128 crore. That was obviously a jump on QoQ. YoY, if you see, overall, there was a degrowth, a slight degrowth there.
For the annual CV transfer?
On CV, robust. CV is the markets we play on commercial vehicles. P retty good so far. I think, the, mobile, others, for us, which CV and tractors are both put together was INR 205 crore, which was actually a jump of quarter-over-quarter 22%. CV market is going to remain, I think, robust. There would be obviously, we have some cyclicity there, so there might be a little bit of dampening, but then catching up again. CV has remained in, that, condition, in last few years a little bit, not robust.
CV is okay, and we see it okay. Rail, we see a steady slow growth. That also is very much there. Overall the sentiment is domestic consumption is not bad despite the inflationary m arket situation. Inflation and cost pressures are there. The local demand is okay. The export demand is also okay. The cost pressures are there. I think that all is in one bag.
Just one last question, if I may, on the Bharuch factory. You know, where are we in terms of utilization? Where do we target to reach, say, over the next one year, say end of FY 2027? Also, if you could talk about your market strategy, how you're trying to gain market share here, in the SRB, CRBs. You know, just some color there would be very helpful. Thank you.
Yeah. On SRB, CRB, so all our lines have been kept live. That is all done. We are running the smaller lines, which we call, up to below, you know, up to 250, that we are running pretty full actually. We have already done, Sujit, how much revenue we have generated till date?
Sir, for the full year it was almost INR 80 crores, revenue coming out of the new plant.
INR 80 crore coming out of the new plant for the full year. Now April onwards, it would be, you know, as we generate. We have a robust PPAP going on as we talk. We have almost more than 100 new part introduction underway in that plant. As you know that, you know, we have to go through each part has to go through a proper PPAP. Timken approvals, then it has to go through the customer approvals. All our smaller lines of sphericals are running full. On large line, PPAPs are happening. I think we are running more than a shift, we have to do more PPAPs, which they are doing. On CRBs, again, PPAPs are happening, we are running more than I think one shift there, closer to two shifts.
As Sujit just said, you know, whole year last year we did INR 80 crore and then April onwards. So on the general strategy we are selling anyway to the metal industry aggregate, material handling our tapers and imported stuff. Now with this, in fact today morning only a cement customer was telling me that they see more life out of Timken bearing. You know, we sell value on engineering. We are pitching to all the customers which where we are anyway selling tapers. Whether it is cement, is steel, or it is metal handling equipment or the construction equipment. That is the target segment. Then obviously, exports as well. I think out of that INR 80 crore we did some exports as well. Yeah.
Got that. Okay, great. Thank you so much.
Thanks.
Thank you. Before we move to the next question, a reminder to the participants, to ask a question you may press star and one. Next question is from the line of Varun Jain from Dolat Capital. Please go ahead.
Hi sir. Good evening. My first question is that I just wanted to know the segmental breakup for Q4 and FY 2026.
Yeah, sure. Varun, Q4 FY 2026, rail was INR 278 crore, which was 26% of the pie. Mobile, which is for us, CV and tractors, was INR 205 crore, which was 19% of the pie. Distribution, which was both industrial and aftermarket. More industrial is INR 162 crore, was 15% of the pie. Process industry, which is the heavy industry stuff, that was INR 200 crore, which was 19% of the pie. Intercompany was INR 222.5 crore, which was 21% of the pie. In total for the quarter was INR 1,073 crore. For the FY 2026 in totality, rail we did INR 781 crore. Mobile others, we did INR 681 crore.
Rail was 23% of the total pie and mobile others, which is CV tractors, et cetera, was INR 681 crore, which was 20% of the pie. Distribution was INR 582 crore, which is 17% of the pie. Process was INR 651 crore or 19% of the pie. Intercompany, which is exports, is INR 707 crore, which was 21% of the pie. In total was INR 3,419 CR.
Okay, sir. Thanks. That's very helpful. Sir, for this Jamshedpur CapEx, are we online to go live with it in the December 2026 quarter? What is the revenue potential for it? Like, what is the asset turn? I think we are investing INR 120 crore there. What is the total overall CapEx guidance for 2027?
Yes, we are roughly at INR 120 plus crore for CapEx. Last week I was in Jamshedpur, so we should be able to produce by what, November this year?
By November this year, and then obviously new line PPAPs and all that. December we should start producing. On terms of total asset turns, we are looking at two? Two to start with and then we'll see. Because these are all state-of-the-art robotics imported assets and highly precise. Great for super precision, high speed, railways for future as they come in. Obviously, you can make slower rail bearings as well, but are capable to do the ultra-high speed for rail as well. We should be able to produce the first rail bearing hopefully by November and December. That is the target. The machines are all getting shipped from Europe and the building is getting ready and all the assets regarding phosphating, et cetera, et cetera. We are in Jharkhand getting all these approvals. All those are in place. We have all the approvals now in place.
To your direct question, should be by December producing the bearings and then the global rail markets. You know, South Africa looks In fact, Africa Rail looks pretty strong in coming months, so that is good. America is also okay. India is slow and steady growth. Hopefully it is timed very right as we start producing.
Okay, sir. Sir, of the total FY 2026 sales we have, sir, what percentage of our sales have we produced locally in India, as of now, and what is the localization target henceforth?
You know, out of that, 3,413, I think, 60% odd would be domestic, 65% would be domestic, 35% would be imported. As you know that, you know, you can't produce everything in India. There are not 1,000 lakhs of different part numbers. This 65%/70 % would be a good mix. We are also exporting almost similar stuff. It generally remains a very good balance. We are looking at different things. You know, if the market remains growing, BIS gathers momentum, all that stuff is on our plate. It was 65%/ 35%, if you take FY 2026, a percent here or there.
Well, sir, this is last one from me. Any revenue growth and margin guidance for FY 2027, if you'd like to share?
You know, margins and revenue growth, you know, we want to be more than the market growth. On the top line, we want to be more than the market growth. On the bottom line, obviously there are pressures on the cost. We are definitely going to pass them on. Then, we are very good at continuous improvement in manufacturing, so that is there. It should be healthy. We aspire for doing it better than before, but depending on what happens around us.
Sir, like would it be like a 10% revenue growth? That is the base case. Can I take that? Would that be a fair assumption?
I don't think we can give you a percentage guidance, either on the bottom line or the top line. I can tell you, we will outgrow the market. That is the math you have to see.
Sure. Sure, sir. No problem. Thanks a lot and thanks a lot and all the best.
Thanks, Varun.
Thank you. Next question is from the line of Rishi Vora from Kotak Securities. Please go ahead.
Hi sir. Thank you for the opportunity. Just on the CRB, SRB plant, right? Now incrementally going into FY 2027, how should we think about the ramp-up of this plant? Like we ended at INR 80 crores. Our target was to exit at 40%-45% utilization levels. Which would not have happened, but how should we look at going into FY 2027? Are we seeing a good traction in that facilities?
I, yeah. You know, I think, with the PPAPs going on, we should be July, August, we should start seeing, you know, utilization of above 70%. Then with every passing month it will get better and better. It is a long cycle, especially when you are supplying to the OEs. Not only will they PPAP, they might even ask for testing and things like that. Some of that parts might also go to the rail application. There again, there is a huge process which we are already underway. I think we would cross the 70% by July timeframe.
The peak revenue would be what, INR 1,000 crores?
Revenue would be INR 1,000 crore. I wish it would be that much, but now it won't be that much. As we do the next quarter, the picture will be more clear.
No, no. As in the peak revenue potential.
Yeah, I know.
Would be how much, sir?
Yeah. No, no. The mix is different. You know, obviously the mix plays a big role. As I said, it's in terms of, twoish, so that will be the math. Generally, with the whole year, depending on mix, we'll have to do the calculation, but would be INR 1,000 crores.
Sir, as in you did a CapEx of INR 700 crores. If you're saying 2 times, the peak revenue potential, not I'm saying that you'll reach in 2027, but it is what? North of INR 1,000 crores is how we should think about the revenue growth.
No, you have to take the bill. Yeah. Sujit, you want to say something? They have to take the billing out of that.
No. I think in the last meeting we have explained that as well. The peak revenue would be very similar to what the chairman explained in terms of the asset terms, right? That's very close to twoish, which he told in the past as well. If you are specifically asking for financial year 2027, it's very difficult to estimate at this stage because there are multiple things that's happening in part ramp up and the manufacturing space ramp up, the customer approval, so on and so forth. It may not be exactly possible to estimate at this stage. Yes, the peak revenue will be very close to the asset term, which the chairman explained.
What should be the CapEx for this plant X of buildings and land? Out of INR 700 crore, what would be the CapEx for just the machinery and all that on which we should then count the asset terms?
If you take out, I think which we explained in one of the earlier call as well. Total investment is roughly around INR 720 odd crore, including the Forex and all the stuff. I think the building is almost, I think it was very close to It's not on top of my head. I might stand to be corrected, but building was very close to I think INR 300-350 crore.
Yes. It was certainly INR 350 crores.
Yeah. You can take. It was around INR 3 crores. I think you can, you know, just for rough calculation, the assets purely, obviously the, you know, it is not only the building, there is also air conditioning, all that stuff. Maybe 50%, you can take INR 300, INR 310, INR 320 crores.
In this facility, sir, is there a scope to further expand the capacity?
If required in the future years?
Yes. Yes. The building has been built for tomorrow.
Understood. The second question, just a clarification, the CapEx number which you guided for FY 2027 is INR 150 odd crores. Is that right or?
No. I think he explained about INR 120 crore.
INR 120 for the rail.
For the rail expansion.
Okay.
Which has.
If you-
What would be for 2027?
Yeah. We don't give the guidance for CapEx, but if you look at it historically for last year, 2025/ 2026, we spent roughly around 8.5% of our revenue. That's very close to the CapEx spend. It will be almost in the vicinity of the same range.
Yeah.
There are multiple expansion that's happening. Jamshedpur to rail, then we are bringing in the train bearings in our Bharuch factory, then there'll be a little bit of heat treatment investment in the new plant. Put together, it will be very close to that number.
Similar lines.
Yes.
Understood, sir. Thank you for this.
8%, 9%, 10%.
Thank you.
Thank you. Next question is from the line of Raghunandhan NL from Nuvama Research. Please go ahead.
Thank you, sir, for the opportunity. Congratulations on the strong numbers. Sir, firstly, for FY 2027, how is the traction and inquiries on the industrial bearings business in domestic and overseas markets? Which geographies are driving this in export?
On the industrial side, when you say industrial, there is one is the OE pool and the other is the MRO pool. Steel MRO is little bit slow, and you must have seen that the, you know, overall melt of last quarter was also a little bit lower than the previous quarters. Cement is cement MRO is pretty much good. Overall, overall the sentiment in the OE side, which is because of the geopolitics is a little bit wait and watch. General statement is okay. You know, it is not showing any signs of despair, if I can use that word.
On exports, despite that the U.S. treaty is not fully signed as yet, the flow is pretty okay. North America, if we say our export North America is gaining momentum. Rest are also there, but it is main driver is North America. The order book is healthy. So both domestic and export commercial vehicle is pretty much bullish. Tractor is okay. Rail is slow and steady is okay. MRO means the aftermarket is also okay. Overall, you know, for me, the current top three worries, demand is not a worry. Cost escalation and passing it on, obviously, is our top priority.
Ramping up Bharuch new plant, PPAP is second, and third is further projects of expansion. Demand is not currently an issue. You know, obviously, you know, we want more and more, but, you know, it is not on the top three.
well noted, sir. Thank you. That was helpful. any change in the timeline for Bharuch ramp up?
No, we are, I think we are a little bit delayed. Obviously, you know, we had massive rains last year in Bharuch that inundated the whole city there. There were some issues because of that. There were some approvals. Overall, I say there was slight delay, but we are on a path, a pretty good path. As I said earlier, we have capitalized all our lines, which means they are all functional. Now, we have to complete all the PPAP. The demand is now to the capacity utilization. As we speak, we are hiring more operatives for the plant, which tells you that we need more people to run more shifts.
By July onwards, I think we should be 70% of the utilization. Every month it'll become better and better. PPAP, because, you know, for every PPAP you have to get the all the toolings and then all the approvals. That is massive work underway currently.
Noted, sir. Very clear. Do you anticipate any revision in CapEx guidance for next three years with more products coming in?
There could be. You know, we are always looking at, you know, as earlier I think Rishi from Kotak asked that, is this plant capable of handling more? The answer, space is available. We are only doing in the new plant a certain range of sizes, which are not adequate for the whole market. Further range has to be brought in. When we decide time is right, that would happen. If there is a chance to do any M&A, definitely we always are on the lookout. If there is a need to do anything, more in our zero to eight inch, which is the traditional commercial vehicle tractor, et cetera. Those things are also currently actually under discussion.
There might be a chance, but Sujit just said that we would do 8%, of our sales figure. If there is, we are a debt-free company. We have the resources at hand. If there's a good project, we'll not shy away from investing.
Thank you, sir. On the Bharuch revenue, in Q3 the revenue was about INR 12 crore-INR 15 crore. How much was the revenue in Q4? Also ramp-up cost had impacted 170 bit in Q3. Was there any cost impact in Q4?
No significant impact from a revenue perspective. Of course, Q3 was the lower one. We were just ramping up of around INR 12 crores of revenue. Q4, we had a step up revenue. The total revenue for Q4 was very close to INR 60 crores. That is how it made INR 80 crores for the full financial year. Yes, we are still very close to the breakeven. If you look at it, the ramp-up cost impact what we had in the last quarter of 170 basis points, definitely that has gone down a bit. We are still very close to the breakeven and the impact is not significantly higher specific to this quarter.
Thank you, sir. Just the last question on GGB. Can you indicate how is the profitability for this entity?
Which one? GGB?
GGB.
Yeah. GGB, if you look at it, the results which we have announced, so for the quarter the revenue was INR 16.6 crores and the profit before tax was INR 4.6 crores. Very strong PBT at close to 30%-32%.
Thank you, sir. I'll fall back in the queue. Very helpful.
Thank you, Raghu. Thanks a lot for your question. Yeah.
Thank you. Next question is from the line of Shishir Saha from Saha Securities. Please go ahead.
Thank you very much. Sanjay, actually, I am not going to ask anything on the technical part because you people are expert with the business and very good business. I will only ask that your dividend last time you paid a good dividend, INR 36. This year you have drastically reduced it. We retired people depend on this type of dividend. If you pay more we'll be very happy.
We paid, last time we paid how much, Sujit?
INR 36.
INR 36. Did we announce this dividend of this year, which is INR 2.5? Obviously, you know, it is slight less than before, but, you know, once in a while we pay a higher dividend as well.
It's not slight. It's Rupees is 2.5. If your INR 36 per share now it's-
I know. I have to wait. It is 2.5 for the face value of 10, and before that was 3.6. You know, every three, four years we do 50 in big range. Shishir, I thought your question will be for don't do dividend invest and grow it more. You know, we want to make sure that we leverage our cash to invest more rather than pay it to the banks as interest.
As we have not been investing in CapEx now very much, I would request you to consider more dividend in future and little more dividend. At least 10%-15%.
Yeah, yeah, sure. Absolutely. You know, if you see our last five years, in that, Once we paid a mega dividend, but your consideration and your question and suggestion is well taken.
Yeah, yeah. There is no complaint. You have been paying good amount, but periodically. Instead of periodically, if you make a stable payment, that will be better.
Okay. Okay.
Okay.
We hear you.
Thank you so much.
Thanks.
Thank you.
Next question is from the line of Sabyasachi Mukherjee from Bajaj Finserv AMC. Please go ahead.
Yeah. Hi. Thanks for the opportunity. Just one question. You know, on this manufactured versus traded mix of 65%/ 35%, where do we see this number going in next two to three years? Given, you know, the thought process behind setting up this Bharat facility was to replace the traded products that we used to import to, you know, make in India and manufacture here in India. What this number should be in two, three years?
You know, obviously we are producing more and more, but then you see the overall pie is also increasing. The pie is becoming bigger and bigger. If we were making, selling only INR 500 crore a quarter then, this would have been, you know, different percentage. As the Indian pie is also the bearing pie of India is increasing. Then, also there is new application coming up. Say, for example, on wind. It used to be sub megawatt, then 2 MW, then three. Now, a lot of 5 MW is coming up. I think, this 65%/ 35% or maybe some year 60%/ 40%, some year 70%/ 30%, depending on the pie and depending on the market, depending on the mix.
As I said earlier, Sabyasachi, that we cannot produce everything in India, though our desire would be to do 100% India. There are thousands and thousands and lakhs of different part numbers. Application keep on changing. Unless there is a critical volume, we do not want to invest unnecessarily. Currently, as I said, that all of a sudden 5 MW is becoming very popular, which a lot of wind companies want to use. Putting up a plant for 5 MW is massive. We have other sister plants which, from which we can buy at competitive rates and sell in India.
I would say to your question, though the desire is always that we want to make more and more, but given the market dynamics, business opportunities, diversion and new growth in India, and India is obviously, you know, changing very fast. I would say that 65%/ 35% might be there for next two,three years easy, but the pie will keep on increasing.
Got it. Understood. Just another question. On the segments that we cater to, railways, mobile, process and automotive, industrial aftermarket, and of course, exports. Which are the segments that you think would grow faster in the next one, two years? Rail you mentioned, it will be slow and steady, but how about the other segments? Where you see faster growth in next one, two years?
I think, you know, definitely, given the fact that process industry would grow faster. India, you know, just for the sake of it, general, India is still, you know, a $2.5 billion bearing market. It is not a massive market like China, which is $20 billion. $2.5 billion market. Out of that 65% is actually mobile, which means washing machine, refrigerators, two wheelers, three wheelers, passenger cars, and all that, then JCB of the world and the excavators and backhoe loaders of the world. 35% is only stationary equipment. Generally, I mean, a mature market, it will be 50/50.
Process will definitely grow in India as people start investing more in steel, expansion of steel, and as they start putting up more cement in India, more power generation, whether it is wind, solar. If there is a need of massive material handling and things like that. Very soon, I am sure that West Bengal will see a big revision on industrialization. Heavy industries, it is East India, heavy industries can easily come there, which are, you know, connected to the, you know, mining and all that stuff. Process is one area which is going to grow. When the process will grow, distribution will also grow because as you steel, as you produce more steel, more mining, more cement, et cetera, you will consume more bearings.
Rail would be slow and steady growth. Mobile, truck is always and same thing goes with tractors. Monsoon policies. Last 2 years-4 years, commercial vehicle was down. All of a sudden, we saw a nice uptake, and that would have its cyclicity connected to different policies and the market condition. To your direct answer, definitely process distribution. These are going to be strong growth followed by mobile and rail.
Got it. Understood.
Okay.
Thanks for this.
Yeah. Thanks a lot. I think the time is over. With that, I definitely want to say thanks, and, we look forward to the next quarterly call and hope we are again meeting on a good note next quarter. Thank you very much. Thanks a lot.
Thank you, sir. On behalf of Avendus Spark, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.