Ladies and gentlemen, good day and welcome to the Q1 FY 2026 earnings conference call of Jupiter Wagons Limited. 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 this 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. Prathamesh from Systematix Group. Thank you, and over to you, sir.
Thank you, and good afternoon, everyone. Thanks for joining us today for the Q1 FY 2026 earnings call of Jupiter Wagons Limited. On behalf of Systematix, I would like to thank the management for giving us the opportunity to host this call. Today, we have with us Mr. Vivek Lohia, Managing Director, and Mr. Ritesh Kumar Singh, Company Secretary . Now, I would like to hand over the call to the management for their opening remarks, and then we can open for Q&A. Thank you, and over to you, Vivek, sir.
Thank you, Prathamesh. Good afternoon, everyone. Thank you for joining the call to discuss our performance for the first quarter ended June 30, 2025. During the first quarter, we faced challenges from continued short supply of wheel sets from Indian Railways. This has resulted in suboptimal plant utilization, and consequently, production volumes during the quarter were substantially down. However, all other business segments and verticals have reported stable to increasing volumes. As a result of the reduced volume of wagons, on a standalone basis, Jupiter Wagons reported a total income of INR 425 crores for Q1 FY 2026 compared to INR 902 crores in Q1 FY 2025, making a 53% decline. EBITDA stood at INR 51 crore, while profit after tax was INR 33 crores. On a consolidated basis, total income reached INR 476 crore, with EBITDA at INR 60 crore and PAT at INR 31 crore.
The supply of wheel sets has since got normalized, and the company expects to recover lost production in the coming quarters. Even with these temporary challenges, our core railway business and emerging verticals continue to demonstrate resilience, supported by strong fundamental and consistent strategic execution. A key highlight for this quarter has been the progress of Jupiter Electric Mobility, with production and sales having commenced. In June, we opened our first dedicated showroom in Bengaluru, marking the start of our national retail footprint. We plan to open another four to six showrooms by September 2025. We have recently reached a significant milestone of having completed dispatch of 50 vehicles and are looking to accelerate the production and deliveries. Further strengthening this effort, we signed MoU with Pickkup, a fast-growing logistics platform, to deploy 300 JEM TEZ vehicles by the end of the year.
This partnership, aligned with the Government of India's PM E-DRIVE initiative, reflects our ambition to accelerate EV production in the logistics ecosystem and support India's broader clean mobility goals through real-world scalable applications. With commercial EV demand rising sharply, projected to grow at a CAGR of over 40% through FY 2030, driven by last-mile and urban freight applications, this initiative strategically positions us in a high-growth policy-supported sector. Our battery division is generating 100% month-on-month growth. We have commenced supply to Siemens for Vande Bharat , and other products have gone into development for other railway applications. JEM has developed BESS systems for solar and mobile BESS applications right from battery to container and irrigation. We already have early orders for some domestic customers and export orders for Africa for renewable applications.
In the first phase, we are targeting DG replacement, energy shifting for peak demand usage for industrial and mobile BESS for off-grid applications with the technology developed internally, of which we already have pilot orders in hand from multiple well-known channels. The DG market in India is approximately INR 10,000 crores annually, which we feel will shift in one to two of our backup segments to BESS. All the limitations being put on net metering will further create opportunities in solar plus BESS markets in this segment. In the second phase, we are looking on utility-scale BESS for increasing market in India, which is foreseen to be growing to 10 gigawatts of annual volume with approximately INR 8,000- INR 10,000 crores coming out via utility players with delivery timelines of two years approximately.
Currently, everything is getting imported and assembled systems from China, and we foresee with our battery and container joint capabilities to be well placed strategically to be a leading integrated manufacturing player in India. To support the above two, we are installing and commissioning our battery module line in Indore in late September besides our already established Bengaluru facility. In the wheel set business, we are witnessing quarter-on-quarter growth from Aurangabad unit, and with capacity enhancement underway, we expect to achieve revenue of approximately INR 550 crores in the current financial year, which would further increase to around INR 1,000 crores next year. Regarding our wheel and axle project at Odisha, we have finalized procurement of all critical equipment and construction contracts. Work has commenced at the site and is progressing as per planned schedule.
With the planned investment of INR 2,500 crore in phases, the facility will boost domestic manufacturing and support export capabilities. We are also implementing smart automation, including robotic welding, advanced NDT systems, and real-time process analytics to ensure higher productivity and reliability across all our facilities. In terms of financial credibility, we are pleased to receive an upgrade in our long-term credit rating from Acuité of AA with stable outlook, which reflects our strong balance sheet and prudent capital management. Our confirmed order book stood at INR 5,972 crore, offering continued visibility for the coming quarters. Looking ahead, our focus remains on disciplined execution, market diversification, and innovation across rail and mobility segments. The Indian logistics sector is expected to grow to $500 billion by 2030, with rail's modal share targeted to increase from current 27% to 40% under Gati Shakti.
This structural shift represents a major opportunity for integrated solution providers like Jupiter Wagons. With a healthy order pipeline, expanded product capabilities, and strong macro tailwinds in infrastructure and clean mobility, Jupiter Wagons is well positioned to deliver sustainable growth and value creation over the long term. We thank all our stakeholders for their continued trust and support. On that note, I would like to request the moderator to open the forum for any questions or suggestions you may have. Thank you.
Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sahil Pattani from Strokes Capital. Please go ahead.
Hi. Thanks for the opportunity. Two-part question. So I think in the previous conference, we had given a full year guidance of about 10%-15% top-line growth with EBITDA margin in the range of 14%-15%. So I wanted to understand if we'll still be able to meet that kind of a projection because our margins have kind of contracted this quarter. So if you could just provide some more highlights around that.
Thank you. So we still maintain our guidelines, and we expect, as I've already mentioned, that July onwards, the wheel supplies have stabilized. So we expect that in the last two quarters, we'll make up a lot of the lost grounds which we had in the first quarter. If you see that our overall margin per wagon sold has improved because we are supplying more on the private side now than to the railways. So we don't see any challenges in terms of maintaining EBITDA margins. And also, as I mentioned in my call, that the other business segments are now showing substantial revenues, especially the wheel business. So that will also have an impact on both the revenues as well as the bottom line. So I don't see a challenge in terms of maintaining the margins.
This time, there was a contraction in the margins just on account of the reduced revenue. Otherwise, the overall margin per wagon has been an increase. There has not been a decline. So as soon as the numbers catch up, you will find an increase in margins.
Understood. Thank you. That helps. And my second question is, in terms of the order book and the order pipeline, are you seeing any more orders coming in from the Indian Railways? What's the outlook looking like? Because I recall in the previous conference, you had mentioned that we should see some more interest, some more order bid pipelines coming in over the next few months. So I just wanted to get a broader picture on that.
From the private sector, we continue to receive sizable orders. We recently announced the orders that you received from GATX. There, we see a continued pipeline. On the Indian Railways side, as I mentioned earlier, also in the third, fourth quarter, we expect railways to come up with new tenders because still there is a lot of previous supplies which are pending with Indian Railways. We expect definitely substantial tenders should be coming in the third or the fourth quarter from the railways.
Okay. So we are expecting them to come in over the next couple of quarters?
Yes. That is the expectation given the way the demand and the growth in the sector is shaping up.
Okay. Okay. That's all from me. Thank you and good luck.
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch-tone telephone. Our next question is from the line of Akash from Dalal & Broacha. Please go ahead. Hello.
Yeah. Thanks for the opportunity. Yeah. So I have two or three questions. Firstly, Vivek sir, what are the total wagons in our order book currently?
Just hold on. The total number of wagons is approximately about 4,700.
4,700. Okay.
Sorry. Sorry. You mistaken. Total number of wagons is approximately 11,500.
11,500. Okay. And so the order book that we have reported of 5,900 approx, that does not include the INR 242 crore order also that we received recently?
It includes the INR 242 crore orders.
Okay, sir. And sir, since you are saying that we are holding on to our guidance of almost around 10,000 wagons by the year end, so that probably works out to almost from Q2 onwards, almost it has to work out to around 1,000 wagons per month. I don't think we have operated at that scale earlier. So sir, do we have the capacity in our foundry and our plant to be able to run at that scale at that stage?
No, we definitely have the capacity to go up to that scale. And our target, as I've told you, our target this year was to scale up production, and we are already focused on that. The challenge is that the supply of wheel sets from Indian Railways has not been at par with our internal targets. But as I've told you, from July onwards, things have improved, and we expect them to improve further. So as the wheel supplies improve, you will see that we are closer to achieving our targets.
So sir, will we be able to do more wagons than we did last year? I mean, do you have that positive view sitting today?
Definitely. That is what we are striving towards to achieve a higher growth rate compared to last year, and we have been supporting by our own production itself because though most of our production goes towards our own private requirement and requirement of others, but even during the last quarter, we have used more than 4,000 wheel sets from our own capacities to support our railway supplies, so I think from the railway side, if the supplies improve, I don't see a challenge why we should not surpass last year's numbers.
Understood. And sir, if you go to the since we are doing a lot of CapEx of almost around INR 2,500 crore, and we also have debt on our books, just wondered what are our internal estimates of the total interest cost, that is finance cost, and total depreciation that we'll be having on our books for FY 2026 and 2027? Ballpark estimates will do, sir.
See, as of right now, if you look, we are still a net debt-free company. So in FY 2026, you will have no major impact. See, most of the CapEx expenditure will happen in FY 2027, which will and interest is going to get capitalized because the repayment starts two years from start of production. So the impact will be much later on. So immediately in the next two financial years, you will not see any kind of impact in terms of the 2,500, the debt which we'll be taking towards the new expansion.
So sir, the interest and depreciation level will remain more or less similar to FY 2025 level? Is it what you mean?
So the depreciation would slightly go up, but interest would be. I wouldn't see in both cases. You will not find any substantial kind of changes from last year.
Understood. And sir, last two questions from my side. Firstly, on the e-LCVs that we do, so how many e-LCVs have we sold in Q1, and how has the response been at the new dealer showroom that we have opened? And secondly, I want to understand on the brake systems part. I mean, I think we have reported around nine brake systems that we have manufactured this quarter. So I think now that Stone India and all of them are fully operational, why doesn't this part of our business grow as fast? Is what I'm trying to understand. Yeah. That's it.
In terms of the e-LCV, we started supplies from June onwards. As I mentioned, we have already supplied more than 50 vehicles. We expect in the next two months further dealerships to open, so by September end, we expect at least six dealerships across the country. We are now already in the process of getting all the financial tie-ups with all the major NBFCs as well as the banking institutions, so we expect the growth numbers to be very strong on the e-LCV side, and plus, as I mentioned earlier, also we are in the process of launching two other vehicles, a two-ton payload vehicle, as well as in the one-ton segment, another vehicle in the current financial year itself, so with all these developments and with a strong dealer network, we expect the numbers to be very strong this year.
So sir, in the first month itself, you have sold 50, right? You started only in June?
June, yes. The supply started in June.
Okay. And if you could just clarify on the brake systems part.
So on the brake system, including our Kovis JV as well as the DAKO-CZ JV, this year, we should do a business of more than INR 250 crores, as I've mentioned earlier. So because the way the tenders were on the brake systems, the way the tenders were placed is that the supplies are going to be starting from next quarter onwards because most of our supplies are skewed towards the end of the year. So that's how the tenders were put on the brake disc. We have been supplying the brake disc regularly. On Stone India, as I mentioned earlier, also we are still the final certifications are ongoing, and we expect production to start in the last quarter of this financial year.
Okay. Got it, sir. But what kind of margins will do on the brake side? Yeah. Yeah. I'll come back and look. Yeah. That's fine. That's fine.
Thank you. Thank you. Our next question is from the line of Senthil Kumar from Joindre Capital Services Limited. Please go ahead. Hello. Hello. Senthil, sir? And there is no response from the current participant. Our next question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.
Hello. Good afternoon and namaskar, sir.
Yeah. Good afternoon.
[Foreign language] , that's approximately INR 470 crore, [Foreign language] approximately INR 100 crore [Foreign language] railway wagons 826 and that wheel set also 4811. [Foreign language] ?
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But value normally raise high value [Foreign language] Metro Car [Foreign language] double decker wagon loaders.
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Yes, double decker, what I mean to say, is not open type, close type.
Close type, we are already making, we have a substantial order book, but that is part of our wagon revenues. So that wagon is included.
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[Foreign language] definitely it is something which we may consider.
[Foreign language] FY 2026, 2 027, and 2028, [Foreign language] , sir?
See, expected. As I have said earlier that the wheel business will become quite significant at that time. Next year, our project is that about INR 1000 crore revenue will come from wheels. And after that, when our Odisha facility next year-end Odisha facility should be online. So from 2027, 2028, if you look at FY 2027, 2028, I think wheel should be close to about INR 3000 crores in terms of revenue. So that would be significant, as significant as the wagon revenues. And in that, export also would be quite substantial. Then we expect in the next two to three years, our vehicle business, which we have just started, as well as the battery business, that should be a significant business. So that we are expecting that business to be upward of anything between INR 500 to INR 1000 crore business for us by that time.
Matlab battery itself 500 to 1000 and vehicle also 500 to 1000?
vehicle included, the whole that entire segment would be anything between INR 500 crore to INR 1,000 crore.
Okay. And the value addition is better here. Margin is also better?
Yes, definitely. Especially on the battery side, we are seeing month on month, we are seeing about more than 100% growth. And even the margin on the battery side is very very strong for us.
[Foreign language] question [Foreign language] by FY 2027, 2028, INR 3,000 crores expected [Foreign language] Jupiter hua, everybody was suffering because of the wheel supply [Foreign language] wheel manufacturing [Foreign language] process [Foreign language] full-fledged [Foreign language] , sir, [Foreign language] semiconductor chip [Foreign language] market over [Foreign language] wheel supply [Foreign language] international market [Foreign language] ?
No, no. In this, one thing sir, I think one Titagarh's one project is coming and one of ours is coming. And in Titagarh's project, they do not have an integrated plant, because they are only setting up wheel line, they are not setting up axle line.
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It is integrated. And you know, we have a partner in Europe, their wheel consumption is quite high. They consume about 50,000 wheel sets a year.
Oh, and one wheel set would be around approximately INR 4 lakh, approximately.
3-4 lakh, depending upon the.
[inaudible] Thank you. Thank you. T hank you. Thank you, sir. Ya. Thank you.
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touch tone telephone. I repeat, anyone who wishes to ask a question may press star and one on their touch tone telephone. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Next question is from the line of Vasudev from Nuvama. Please go ahead.
Thank you for the opportunity. So, sir, since we had this issue regarding wheel set availability, so was there an option open for us to import from China?
Yeah, so for the private supply, which we do, we have enough capacity. And now for the railway orders, Indian Railways does not permit us to use wheel sets, because they are, as per the contract, they are supposed to supply the wheel sets. And there is also a pricing differential from the Chinese prices and the Indian prices. So for the railway contract, we have to depend upon Indian Railways. However, for our own for the private demand, we have enough capacity, and that's not a challenge. It's the challenge is on the railway side, which I think now Indian Railways is assuring us that in Q4, things will be much better.
Okay, because I think in Q4, government had allowed us to import from China for the railway orders as well. So, it's just.
That, you are right, but those are for limited quantities. And as I have told you, the price differential is also substantial. And they are not, they are not reimbursing for the price difference. So, it does not even make financial sense for us to import and use those wheels.
Yeah, sir, that is helpful. And sir, just a bookkeeping related question, can you give the split between private wagons and the order book split between private and Indian Railways? And also, what is the gross debt and net debt by the end of the quarter?
Yes, in terms of the split, I think Indian Railways order book is right now close to about 4000, and private is about 7000 for us. And the split, the borrowing right now is around INR 496 crores, and the cash is about INR 426 crores.
Okay, sir, that is from my side. Thank you.
Thank you. Next question is from the line of Hardik Gandhi from HPMG Shares and Securities Limited. Please go ahead.
Hello, sir, thank you for the opportunity. Am I audible?
Yes, you are audible.
Yes, sir, you are audible.
Yeah, so just wanted to know a few things on the battery side, that there are a lot of people who are coming into battery manufacturing. A lot of people have purchased the technology from U.S. and China and somewhere else. And in our case, we developed it indigenously. So, just wanting to know on the competitive front, how what does the landscape look like? Just wanted to know some insights from you.
So for first, the market is, the growth in the market is going to be quite substantial. As I have mention, that just on the BESS side, the overall demand is going to be close to 10 gigawatts. That's on the BESS. If you look at the overall market, the demand is going to be quite substantial. So, and India right now has very little capacity. If you look at the Indian market, more than 80% of our requirements right now, we are importing it from China. So, there is enough opportunity for other players to grow. However, that you know, we have a very very strong ecosystem, because we are one of the most integrated players right now. Because we are, besides cell, I think most of the other processes, which go into manufacturing of batteries, is all in house.
On the BESS side for us, even the containers, we are manufacturing in house. And we are working with all the major global clients today. If you look at our portfolio, we have clients like General Electric, we have clients like Delta, we have Mitsubishi with us. And just to name a few, we have people like Schneider in on our portfolio. We have and and and, we are in terms of technology, I think we are far ahead on the curve.
As I have mention, that we have already started supplying the BESS systems. And now, we are in a couple of months, we will be, I think, one of the first players in India to be ready with the liquid cool solution for solar applications on the BESS side. So, given the head start and the technology adoption, which we have made, I think we have a very very strong portfolio. On the industrial side, also, for we have NDA, so we can not name our clients, but we have a very very strong portfolio when it comes to the clients, which we have on our portfolio.
And beyond that, also, is just not that we are offering battery as a solution in terms of the service network, which we have set up. In terms of the softwares, which we have built, which we provide to our clients as value additions with regard to diagnostic and other features in the battery side. So, I think we are building a very strong ecosystem. We have a very strong head start. And then, a huge advantage is that we have our own capital requirement as well with our own vehicle. So, we expect the growth to remain very very strong in the coming few years. And that is the reason we are also up another line in Indore itself, because we are already seeing that by the end of this year, our Bengaluru line will be fully utilized.
Understood. So, just on the shelf front, which we are probably importing, where are we importing it from?
So, it's mainly from China and Korea right now, which we are importing ourselves.
Okay, understood. And how much, given that this year we fully utilize our battery line in Bengaluru, what would be the peak revenue from that? And how much are we planning to put additionally in Indore?
So, Indore, we have, I think, exactly Indore. I would not know how much is the, unfortunately, I don't have the capacity numbers with me off hand. We can share with you later. But, I think, in FY 2027, we expect the battery business to be anything between INR 200 to 300 crores of business for us.
Okay, so in two years, like in one and half year?
Yeah, one and a half to two years, we expect it to be anything between INR 200- INR 300 crore business for us.
Okay, and just one last question from me, I know, moderator. Yeah, yeah.
We request you to follow back in the queue for more questions. I request to all participants, anyone who wishes to ask a question, I would ask you to restrict your questions to two questions per participants. Our next question is from the line of Senthil Kumar from Joindre Capital Services Limited. Please go ahead. Senthil sir? Okay, as the current participant is not responding, will move to the next participant. Sandeep Mukherjee from SKP Securities Limited, please go ahead.
Yes, sir, thanks for taking my question. Sir.
Sorry to interrupt, Sandeep sir, your voice is very low.
Is it audible now?
Sir, your audible is low.
You are audible now.
Okay, sir, please go ahead.
Thanks for taking my question, sir. Sir, what can be the CapEx? What would be the CapEx for FY 2026 and 2027, sir? If you can provide also.
So, you know, very difficult to bifurcate, but as I have told you, between FY 2026 and 2027, overall, we will be spending about INR 2,500 crores on the Odisha project. So, just to give you a bifurcation like that, it's very difficult, because the, as I have told you, the project is already started. So, it's an ongoing project.
So, besides that, is most of the other CapEx, which we have already incurred. So, we don't see any substantial CapEx beyond the Odisha project right now.
Okay, okay, sir, thank you.
Thank you. Our next question is from the line of Om Prakash from Infosys. Please go ahead.
Yeah, hi sir, are there any plans for a QIP? Earlier I heard there was a INR 3,000 crore QIP. Is it still in plan and how it's gone?
Could you please repeat your question? I could not understand.
Okay, are you planning for any QIP now? And earlier I heard the news, there is a INR 3,000 crore QIP. Is it still in play?
no, there are no plans. There was that which was just a board approval, which we had taken. But, there is no plan in the possible future.
Okay, since you mentioned, you have started the wheels from July. Can we see those numbers in the coming quarter result?
So, the existing facility already, the numbers are showing and those numbers will increase only quarter on quarter. But, the Odisha project is going to be on stream by end of next year only. So, before that, you will not see the numbers coming out of that project.
Okay, thank you.
This year, we have given the guidelines from our Odisha business to be beyond INR 500 crore plus the revenues, which will go up to about INR 1,000 crores next year.
Okay, next financial or next calendar year?
Om Prakash sir, we request you to rejoin the.
Next financial year, it will be INR 1,000 crores from our existing facility. And this year, it's going to be INR 500 crore plus.
[inaudible].
Thank you. Our next question is from the line of Akash from Dalal & Broacha. It's a follow up question. Please go ahead.
Oh, yeah, sir, just trying to confirm the guidance for 2027, 2028. I believe, the wagon revenue will continue to be there around INR 4,000- INR 4,500 crore. Wheel axles, you are saying that by 2027, it will be INR 1,000 crore. And by 2028, when the new plant is online, Odisha plant CapEx is complete, I think, it will be INR 2,000-3,000 crore, right? Full business.
Yes, between 2,000 to 3,000 crore, depending upon the pricing, because it's too early to predict the pricing right now.
Correct. And the battery business, that is inclusive of all the e-LCV, that will again be INR 500- INR 1000 crore by FY 2028, right?
FY 2028, we expect, yes, anything between INR 500 crore to INR 1,000 crore, definitely.
Understood, sir. Just last two questions from my side. One is, sir, on the brake system, the brake business, what kind of margins will do? Because from the last several quarters, we are just reporting a loss on loss from the JV and associate side. So, hence, I am asking.
So, see, on the brake business, there is no losses. We have already started showing positive margins. And I think, by the end of the year, we expect very strong EBITDA margins on that business. As I have told you, the brake system business, unfortunately, the way we have got the orders, our real order supplies are going to only start from the last quarter. So, from next year onward, we are both on the Dako JV as well as Stone India. You are going to see very strong EBITDA margins in the next financial year.
But, unfortunately, the way the orders were structured in this financial year, you will not see strong margins from those businesses. But, from next year, in terms of both revenues and margins, you will see very strong numbers happening. So, all put together, between the brake disc and the brake business, I think, from next financial year, it should be, I am expecting, anything between INR 300- INR 500 crores revenue coming out from that business.
my last question on order book, sir. Basically, our order book has seen. We are seeing continuous decline on that front from INR 7,000 crore, let's say, a year back. And now, we are sitting below INR 6,000 crore. So, how do we expect this to shape up, you know, in the immediate and the medium term future?
So, see, in terms of the private order books, it remains steady. The decline which you are seeing is because, obviously, railway, we are expecting the next big round of tenders. As soon as you, the next big round of tenders would come from the Indian Railways, you will see a substantial jump in terms of the order book. But, if you see, if you look at our private order book, that has been, I think, very very steady and that has been growing.
Okay, sir. It's acceptable from my side. All the best, sir.
Thank you. Our next question is from the line of Pawan Roy, an individual investor. Please go ahead.
Good afternoon, sir. My question was on BESS side, sir. How do you see the revenues from BESS in next two years, sir?
So, as I have already mentioned, I think, we are very very bullish on the segment. We have an advantage in terms of that. I think, we have the very few companies in India who have now developed their own systems. We have already, this month, we will be supplying our first integrated BESS system. We will start exports next month to the African market. So, we expect it to be a very very strong performer for us. Overall, battery business, as I have mentioned, that we expect in the next two years, that would be at least INR 300 crore business for us.
Okay, thank you, sir.
Thank you. Our next question is from the line of Senthil Kumar from Joindre Capital Services Limited. Please go ahead. Senthil sir, please go ahead. As the current participant is not responding, will move to the next participant. Next participant, it's a follow up question and it's from Rajesh Bhandari from Nakoda Engineers. Please go ahead.
you, sir, for giving me chance again. Sir, [Foreign language] question battery [Foreign language] for their metro and for their cars. To, in fact, [Foreign language] means it's really something great. Aur railways, they will connect it to railways. Our railway [Foreign language] , sir, battery [Foreign language] railways [Foreign language] battery [Foreign language] , these are all lithium based?
So, the Railways right now is using mode of Nickel-Cadmium applications. There the demand is very huge application. So, we are already working with the Railways and we expect, as you said that demand is very high. So, we are expecting Railways now quite specifications bringing for Lithium-ion also. So, next year we expect that the Railways' demand quite substantially will increase. But, until that you know not translates into numbers, we are not doing any kind of projections on that demand. We expect numbers to be much better in the next two years.
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[inaudible] Thank you, sir.
Thank you, sir. Thank you very much.
Thank you. Our next question is a follow-up question and it's from the line of Hardik Gandhi from HPMG Shares and Securities Limited. Please go ahead.
Hello, sir. Thank you for the opportunity again. Hope I am audible. Just two questions from my end. The first one being that, given that there is a bottleneck in the wheel supply for this year, at least there was in Q1. So, how can we see it for the rest of the year? Are we seeing the normalization in there? And can we ramp up our production back to normalize levels? And what's your thoughts?
Already, as I have mentioned, that supplies have normalized to a large extent, and we expect it to improve further. And that is the reason in terms of, you know, the confidence for the coming quarter numbers. But going forward, whether there will be any disruption or not, again, very difficult for us to predict as of now. But we definitely supplies have normalized considerably. And as per our knowledge, it should improve going forward.
So, are we expecting the year to end at approximately INR 3,500 crore this year? Or a lower number than that?
For the wagon business, as I have mentioned, that if the supplies remain to be consistent, we expect to achieve our project targets. Maybe if there is a short fall, it will not be very substantial. Because in the last two quarters, we expect to make up some ground for the first quarter. But however, it again all depends on how the supplies. However, the positive side is that we have a substantial private order book, where we are not dependent upon Indian Railways. So, there we don't see any challenge in terms of supplies.
Understood, and this that, since we are seeing so much traction in the BESS brand, right? Why not go a little more aggressive? INR 300 crore business, I'm from the landscape of renewable as well as clean energy, and the amount of BESS required in the market right now. INR 300 crore is in two years time, doing a revenue of INR 300 crore, is not meaningfully adding to the ecosystem, as per my knowledge. Why not go more aggressive?
No, now I understand, we are very aggressive. But whenever, see, whenever you give numbers, you have to be very very conservative. As I have told you, the huge opportunity, which is there in the market. So, it's not what I am. So, what I am saying is the in terms of the growth potential, it is very huge. But, you know, today, it is very difficult for us to give, you know, very strong, which it would not be right on our part to give a very strong guidance. So, as and when, you know, how the market evolves and our order book evolves, then we can keep on changing the guidance.
But, we are very very aggressive on that segment. It's not that we are not aggressive. And we see a lot of opportunity, because today, if you look at the BESS segment, it's 100% imported. And now, with all major tenders, which Indian government is floating, they are they are bringing in the Make in India component, as well as, you know, now with restrictions on net metering, as well as the the entire energy demand equilibrium, there is no people have to invest in battery storage. I don't, it is not possible for the solar ecosystem in India to sustain and grow without investment in the battery battery ecosystem.
But, if you can just quantify it in the terms of capacity, I don't want revenue.
Request to raise on the que for more questions. Our next question is from the line of Atul Shah, an individual investor. Please go ahead.
Hi, sir. Thanks for the opportunity. I have a question regarding our FY 2027 target. I mean, I know it's too early to say, but you had mentioned reaching, possibly reaching a INR 10,000 crore top line. So, I just wanted to understand if you take out the e-LCV part from it. Because, I mean, that, I mean, although we are bullish on it, it's a big question mark. What are we kind of looking at without the e-LCV? Like, so, for example, if you said INR 10,000 crore and you are expecting INR 2,000 crore from e-LCV, for example, then that leaves us with 8. So, for our core business, excluding the e-LCV, what do we expect?
First of all, I have never projected INR 2,000 crore for e-LCV. I am talking about anything between INR 300- INR 500 crore by FY 2028. No, I mean, I was just giving an example. Sorry. The big gap in what you have. So, e-LCV is not going to be, and this, it's not only e-LCV, it includes also the battery business. So, that it's in terms of that revenue numbers, it's not very significant if you look at the overall revenue numbers. And when I talk about, I have talk about INR 8,000- INR 10,000 crore, I am talking about FY 2028, once our Odisha plant comes online. So, yes, I continue to maintain that guideline, because that business itself will add to anything between INR 2,000- INR 3,000 crore in terms of top line revenue. So, I am very continue to maintain that guideline.
Understood. Okay, that's all. That was the only question. Thank you.
Thank you, ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. Over to you, sir.
Thank you. While we have started off FY 2026 with a few challenges, we are very confident on making up the shortfall through the rest of the year. With a strong foundation, strong order book, and a future ready portfolio, we have multiple levers for growth. Our focus remains on scaling efficiency, innovating substantially, and delivering consistent value to all our stakeholders. Thank you for your continued trust and support. We look forward to updating you in the coming quarters. Thank you.
Thank you. On behalf of Systematix Group, that concludes this conference. Thank you for joining us, and you may now disconnect your line.