Ladies and gentlemen, good day and welcome to Jupiter Wagons Limited Q4 FY25 Earnings conference call hosted by Systematix Group. 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. Sudeep Anand. Thank you, and over to you, sir.
Thank you, Abhijit, and good evening, everyone. Thanks for joining us today in the Q4FY25 and FY25 earnings conference 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. Sanjiv Keshri, Chief Financial Officer. I'll now hand over the call to the management for their opening remarks, followed by the Q&A. Over to you, Vivekji.
Thank you, Sudeep. Good evening, everyone. Thank you for joining this call to discuss our performance for the financial year end date March 31st, 2025. I hope you have reviewed the financial documents that were shared earlier today. FY25 has been a pivotal year for JWL, marked by a solid financial performance and continued progress across our diversified business segments, driving the evolution of JWL into a more comprehensive mobility solution provider. On a standalone basis, total income was 3,905 crores in FY25, registering growth of 6.6% year-on-year. EBITDA for the year was higher by 11.6% to Rs 548 crores. Importantly, as we have guided earlier, we have increased the EBITDA margin to 14.2%, up from 13.5% last year, and we maintained our position of industry-leading margins. Profit after tax has increased by 12% year-on-year to Rs 373 crores, with a PAT margin of 9.6%.
On a consolidated basis, we recorded a total income of INR 4,008 crores, an increase of 9.3% year-on-year, with EBITDA of INR 578 crores, higher by 18% year-on-year. The consolidated EBITDA margin has improved to 14.6%, while profit after tax was higher by 15% to INR 380 crores. Turning now to our broader business performance, FY25 has been a year marked by strategic progress and operational momentum across all verticals of Jupiter Wagons Limited . We successfully launched commercial production of the JEM TEZ ELCV in Indore, marking our entry into India's electric logistics segment. This was accompanied by the inauguration of a state-of-the-art vehicle manufacturing facility at Pithampur. The facility, built for high localization, supports ground-up EV manufacturing with an annual production capacity of 8,000 vehicles. The JEM TEZ, a fully indigenous one-ton electric vehicle, has been engineered for high performance and reliability, backed by deep industry expertise.
A phased rollout across key metros like Delhi, Mumbai, and Bengaluru is already underway, supported by strategic partnerships. In line with our focus on clean and sustainable energy solutions, we commenced the production and supply of advanced battery systems to both Indian Railways and private clients. Strengthening our position further in this space, we have secured battery energy storage system orders, as well as orders from leading players in the forklift segment, such as Godrej and Tuck Craft, which reinforce our participation in India's evolving energy infrastructure. In our core railway segment, we continue to demonstrate strength and market leadership. We have secured an INR 600 crore order from Ambuja Cements and ACC Limited for manufacturing and supply of BCFCM rail wagons. Our subsidiary, Jupiter Tatravagonka Railwheel Factory Private Limited, has also won an INR 255 crore order from RITES Limited.
We are affirming our reputation for delivering quality and reliability products. Our brake system division also delivered a strong performance, with key wins including an INR 65 crore order for brake discs and an INR 150 crore order for passenger segment brake systems. Among the key highlights of the year is the progress of our Odisha project, a transformational initiative in our expansion strategy. Through our subsidiary, Jupiter Tatravagonka Railwheel Factory, we have acquired land in Khurda, Odisha, to set up a rail wheel and axle forging facility, the first private sector heavy engineering plant of its kind in the state. We have already awarded contracts for both the main equipment and civil work, and site development is progressing rapidly.
With a planned investment of INR 2,500 crores, the project has achieved financial closure with a funding structure of 35% equity and 65% debt through a consortium of PSU banks led by State Bank of India. We have already invested approximately 50% of our equity investment, and advanced payments have been made for critical equipment and construction packages. Once operational, the facility will produce 100,000 forged wheel sets annually, serving both domestic and international markets. These milestones, from electric vehicles and energy storage to core rail infrastructure and heavy engineering, underscore our long-term strategic vision, our commitment to innovation, and our unwavering focus on execution excellence. As we move forward, we remain deeply committed to sustainable future-ready growth while capitalizing on emerging opportunities across mobility, clean energy, and infrastructure to create lasting value for all our stakeholders. We are now open for questioning from the forum.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone phone. 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 Mohit Kumar from ICICI Securities. Please go ahead.
Yes. Good evening, sir, and thanks for the opportunity. My first question is on the execution for the Q4. Is the constraint on wheels easing out as we enter FY26? Or has the wheel situation impacted our Q4 execution? Yeah.
Yeah. So thank you for your question. So definitely, the availability of wheels was a constraint which we faced in Q4 and even Q1 of this financial year. But the expectation is that railway should be in a position by middle of next month to regularize supplies, as they have placed orders on global firms for supply of axles, and they expect to receive the same by beginning of next month. So we are hopeful that the situation will stabilize. We have been focusing on execution of our private order books, for which, fortunately for us, because of our subsidiary, Jupiter Tatravagonka, we have been able to supply the necessary wheel sets.
Understood, and the second question is, of course, given that the situation is still plaguing us, what kind of wagon manufacturing one can expect in FY26?
So for FY26, as I mentioned earlier, we have set ourselves a target to manufacture about 10,000 wagons. And we are confident that given that railway has committed to regularize supplies of wheel sets from mid-June onwards, we will be able to achieve those commitments in the numbers. So hopefully, I don't see a challenge in terms of execution. Yeah, but if the wheel set position in future also continues to deteriorate, then there could be some revision in terms of our execution numbers.
Understood. My last question on the Bonatrans Capex, which are doing Odisha.
Mr. Mohit, may we request you return to the question before the final question?
Sure. Sure.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Deval Shah from Sunidhi Securities. Please go ahead.
Hello sir. Am I audible?
Yes, you are.
Yeah. So I had a question regarding the wheel set issue. So in the past, also, we have faced a wheel set shortage issue. So how is the industry or the Indian Railways trying to overcome that?
Unfortunately, we have a very strong order book from the private sector. Jupiter has been able to execute those order books without any kind of constraint. From supplies, when it comes to the railway wagons, unfortunately, the order is such that it compels us to use the wheel supplied by the railway factory. That is how the orders are structured. That is because of which we are dependent upon them for wheel set supplies. Till that is regularized, we will continue to have some constraints on that. Whatever we have been given to understand from railways is that the position will improve very shortly.
Okay, sir. But just I had a question regarding the infra in manufacturing the wheel set. So how is Indian Railways or the private sector trying to capitalize upon the situation if we face such issue in the future?
No. So it's a very good question. And that is the reason why you are now seeing investments happening in the private sector to set up wheel manufacturing capacities. As you are aware that we are embarking on a substantial investment per wheel manufacturing capacity for 100,000 wheels. India today does import a lot of its requirement for wheel sets, and it does not have, especially on wheels, it doesn't have any substantial capacity. So there is a big gap today between demand and supply. And I think once our project comes online, I think we will be able to fill up this gap to a large extent.
Okay. Understood, sir, and lastly, the.
Mr. Deval Shah, yeah.
Mr. Deval Shah, may we request you to turn to the question queue for a follow-up question?
Sure, sure.
Thank you. The next question is from the line of Rohit Singh from Nvest Analytics Advisory LLP. Please go ahead.
Hello. Am I audible?
Yes, you are. Please go ahead.
Good evening, sir. My first question is on the CapEx that we are doing on the wheel sets, approximately INR 200 crore investment. So can you tell us what kind of RoCE we are expecting from this investment over the years, and can you compare it with the existing RoCE that we are doing? So that is my first question.
We are expecting a RoCE of about 20% from the project.
Sorry, I missed that. What's the number you spoke to?
Pardon?
I missed the number. About 20% or 25%, you said?
About 20%.
Okay. And I think our current ROC in FY24 was around about 30%, right?
Just one second. Hold on. I don't think it was about. It was about 17.2%. Around 17.5%, roughly. 17.5%. And here, we expect it to be higher than it was going to be higher than the current RoCE, which we have been delivering.
So you're expecting the additional RoCE from this project, right?
Yes, definitely. And typically, these projects are very high RoCE projects. And as the exports keep on picking up in the future, the RoCE position will definitely keep on improving.
Got it. And sir, secondly, on the outlook for FY26, this year, we lagged behind our own sales guidance, particularly in the wagon side. So for the next year, how do you see the outlook segment-wise? If you can share with us, particularly focusing on wheel set, brake systems, and our new initiative in the EV segment where we got delayed over the quarters. In fact, our peers have been able to start supplying the things in the LCVs opportunity. So considering all these segments that we are targeting since last couple of three, four quarters, and particularly, you have mentioned in the presentation as well, we started supplying the batteries as well. So all these initiatives collectively, how do you see what is the outlook? What is the revenue target would you like to give for FY26 along with the margins, sir?
So, see, in the railway, to start with the railway wagons segment, again, this year, in terms of the capacities and in terms of execution, we were completely on track to deliver the numbers which we had committed. But unfortunately, the wheel situation came out of the blue, which was something which was beyond our control. However, given that the railway is saying that the situation will be rectified sometime next month, we are pretty confident that if the wheel situation rectifies, we will be able to achieve the targets which we have set for the current financial year. However, if there are any future challenges on wheel sets, definitely going forward, we may have to revise those numbers because, as I have told you, that is something which was beyond our control. But we don't expect any future challenges in that front.
On our own production of wheel sets, as you have seen, that this year, our numbers have been higher than what we had projected. So we have done revenues of above INR 300 crores. And in the coming year, we expect these numbers to double. We are increasing capacities there substantially. And as you have seen, that our order books, plus our internal requirements, are very strong. And it is a question of execution for us. So we expect that business to do quite well. And in the years to come, definitely, it will be one of the most significant contributors to the revenues. Beyond that, on the brake business, as I mentioned, that we have already secured an order of about INR 150 crores for our JV with DACO-CZ and about INR 60 crores for our JV with Kovis.
We expect there are also a large number of tenders which are due in this financial year. And it's expected in the next two to three months. So we expect these order books to become much stronger. So this year, we expect that on the big business, revenues will be fairly strong. On the ELCV segment, we have already started delivering our vehicles. The response from the market has been very, very positive. And we expect to achieve sales of in the next three to four months. We expect to achieve an average sale of above 100 cars month-on-month basis. And again, on the battery side, as I mentioned in my call, that we are already working on the battery storage solution where, again, we expect the market to be very strong for that segment. We are working with leading players there.
We are supplying batteries for the Vande Bharat Express. We have secured orders from players like Godrej, from players like Tuck, Craft, and there are other major players which we have already in discussions with. The battery business also looks very positive for us.
Thank you. The next question is from the line of Jainam Jain from ICICI Securities. Please go ahead.
Good evening, Management. So my first question is, are you expecting any large railway orders in this year, given that FY25 has been devoid of any such orders?
So definitely, we are expecting large tenders to come from railways, I think, this year. But still, there is a substantial order book which is there to be supplied to Indian Railways from the various players. So we expect the tenders to come on the later half of the year.
Okay. And on the private side, how are we seeing the demand and inquiries?
So private side, the demand continues to be very robust and strong. We have recently secured a very strong order book for container rigs. And if you've seen from our order book numbers, despite supplies being consistent and railway not giving any new orders, still, our order book continues to remain strong. And most of it is coming from the private side only. So private side, we don't see any challenges in terms of order books. And once the railway tender comes this year, I think for till FY28, we expect numbers to be very strong. And beyond that, it's very difficult to right now give any kind of focus.
Okay. Sir, what is your market share in the private segment, private side?
On the private side, we enjoy a very, very strong market share. Now, I think, again, very difficult to quantify in terms of percentage. But what I can say is that we are the dominant player in that segment.
All right, sir. That answers my question. Thank you so much. And all the best.
Thank you. The next question is from the line of Garvit Goyal from Envest Analytics Advisory, LLP. Please go ahead.
Hi. Thanks for the opportunity. So you mentioned a fair outlook for the segment covering the wheel set, the brake systems, and wagon side subject to supply chain issues. So can you put a number on an overall basis? What kind of growth are we expecting over FY25 for revenues, and what kind of margins we are expecting? So that is my first question.
So as I mentioned to you, that in terms of the wagon production, we are looking at a target of close to about 10,000 wagons this year. But obviously, it's subject to availability of wheel sets. And other businesses, again, for me to give, especially on the EV business, for me to give any kind of numbers right now, it's too early. I think maybe a quarter down the line, it will be, I think, more prudent for us to give any numbers. The brake business, and as I've already mentioned, on the brake business and on the wheel set business, we are looking to double our revenues.
But sir, we are. I think, if I remember correctly, we are looking for INR 8,000-10,000 crore kind of top line by FY28. And to achieve that, we must be having at least a plan.
So the.
Like, what kind of?
So 10,000 will come in once our wheel project in Odisha is commissioned. And because that itself is going to bring in revenues of close to 3,000 crores. So if you look at our projections, a lot of that growth is coming through the Odisha project.
What kind of revenue did we incur in FY25 for brake system?
It was above INR 100 crores, and we are definitely looking to double the same.
What's the number? Above what?
It's INR 100 crores plus. I don't know the exact number, but it was above INR 100 crores. And we expect to double that figure in this financial year. So between brake and wheel sets, I think the revenues will be above INR 800 crores.
Got it, sir. And sir, you released an announcement. Just last question?
My request that you return.
Just last question, sir. Otherwise, I think I will not get a turn. So sir, you released an announcement regarding some labor unrest in one of your plants. So can you give the financial impact which we will be incurring in Q1?
Yeah. So unfortunately, there was some dispute regarding wages for which we had to temporarily close the facility. However, now the same has been resolved, and the plant is now working on full capacity. Again, in terms of the impact, I would say because that was also a period where the wheel set supplies were very poor. So even if the plant was operational, our production would have been quite muted during that period. And also, there were certain annual maintenance which we needed to do urgently, for which we would have taken a shutdown of about a week. So we used that opportunity to do the annual maintenance. But as I have maintained, and I'm very confident that if the wheel set supplies resume and if it is consistent from Indian Railways, we can easily make up on the loss of production.
Got it, sir. Thank you very much, sir. All the best.
Thank you. The next question is from the line of Sahil Pattani from StoxBox. Please go ahead.
Hi. Thanks for the opportunity. So I had a couple of questions. So by when are we expecting this new Odisha facility to be fully commissioned and operational?
The actual line would be commissioned in this, yeah, by middle of next year. I think we expect the actual line will get commissioned. Early 2027 is when we are expecting our wheel line to get commissioned.
Okay. So my second question is that we've set an ambitious target of having revenues of 10,000 crores by FY28. And this year, our revenue grew by 9.3% over FY24. So are we going to maintain a really high growth for the next three years, which is 35%-40%, or are we saying that this particular financial year, FY26, would also be in a similar 10%-15% range? And then once the facility is fully operational, we then are going to have a vertical growth after that.
I think the growth trajectory, as it will, I think the majority of the growth, as you can see, will come once this facility is operational because this will end up being close to about 30%-40% of our entire revenues. Definitely, I think we will maintain a growth rate of about 10%-15%. Once the wheel business is operational, then you will see a definite upsurge in the growth. That is, if you look to my earlier calls of the projections which we have made, it is consistent with that.
Got it. Got it. And just one last thing. On the EBITDA margins, since we've clocked about 14.5% for FY25, so do we see the margins normalizing in this range, or is there room for improvement?
There is definitely room for improvement with new businesses kicking in, especially the brake business and the wheel set business. But yes, we don't see any kind of substantial jump over these EBITDA margins. I think that will only happen once the Odisha facility is fully commissioned.
Okay. Thank you so much, sir. And all the best.
Thank you. The next question is from the line of Swanand Samant from Chanakya Capital Services. Please go ahead.
Hey, hi. Thanks for the opportunity. So I just want to understand from you your company's relationship with your European partner, Tatravagonka. The question is, I just wanted to understand that right now, they being the largest investor in you, they don't act as a strategic investor, right? They are pretty passive. There is no technology transfer agreement between us. We are not a very big supplier to them right now. Plus, being at 19% shareholding, they don't have a representative on our board as such. So in future, in context with the Odisha plan which is coming in, we expect that majority or good part of that revenue would come from the exports to them. So just wanted to understand, we don't have a formal agreement to that as such. So we think that right now, the relationship with them seems to be a very passive investor type.
But that's to change to a strategic investor when we kind of come up with the Odisha plan in maybe 2027 end. So just wanted to kind of get your understanding on that.
So first of all, they are not passive. They are classified as a promoter itself in Jupiter along with my family. So they are not just an investor. They are also a promoter in Jupiter. So that itself is a statement by itself. Secondly, when it comes to, we do have an agreement with them in place when it comes to offtake from the Odisha facility once the plant is commissioned. They are very actively participating in the entire construction phase and the technology phase of the project. Earlier, the exports to them were very minimal because, as you're aware, that in Europe, the wagons which are produced, most of the bogies and couplers and other items which go into the wagon are fabricated, unlike in India, which are cast. So there's a substantial difference in technology. So for us to do any substantive exports was just not possible.
They have been helping us with a lot of designs on the private side. So it is not that they are not very active in the company. They are very active. And now there is an opportunity where we have a lot of synergies which will arise because of the wheel project. And they are very gung-ho on the project, and so are we. So you will see their participation also go up significantly. And definitely, in Europe today, there is a shortage of wheel sets. They are looking at having a secure source of supplies. And so yes, this, I think, is going to be a win-win for both of us.
Just to follow up on that, any particular reason why they don't have a representative on our board being a 19%-20% kind of investor in us?
No, not a specific reason. I don't see any reason. I think it's just the confidence they have, and in all probability, in future, they will have somebody joining the board very soon.
Okay. And the second question on the kind of availability or problem of availability of wheel sets which you are facing right now, so I guess in Q3. Also, some of your peers face the same problem. It's not been resolved. I guess, if I'm not wrong, somewhere in the last year also, there was a similar problem as such, so kind of wanted to understand what is the pain point here in terms of procurement of these by Indian Railways. Is it the only India is facing this problem, or is it kind of something like a BIS problem, or is it a vendor problem, so kind of if we want to kind of pinpoint on one particular reason, what would it be?
Again, it is not for me, it would be wrong to comment on the challenges which Indian Railways is facing in terms of wheel sets. I would not be very prudent to do that. I think it's a question best asked to Indian Railways. But what I can assure you is that we have been told by them that the situation will now normalize very shortly. I think that is the best I can tell you. In terms of the reason why they are facing those challenges, I think it is better to speak to Indian Railways directly on the scene.
Sure. Thanks. Thanks for answering my question.
Thank you. The next question is from the line of Akash Vora from Dalal & Broacha. Please go ahead.
Thanks for giving me the opportunity. Firstly, my question would be, sir, what would be a consolidated margin outlook for FY26 and FY27? Will it be in the similar range, or can we do higher?
Mentioned that it will continue to be in a similar range. There could be a slight improvement. But however, we don't expect any substantial improvement from this year. But as revenues go up, obviously, absolute numbers will definitely improve.
Understood. So but once the ELCV business starts, our margins won't start depleting. Are we sure? Or will we be able to maintain the current levels?
Yes, definitely. Because it's not the ELCV business alone. We are also there. The battery business itself has a substantial potential, and we are doing quite well in that segment also, and that business, because we are doing very specialized high-voltage applications, so our margins are very robust in that segment, so definitely, I think we are confident to maintain the margins.
Sir, secondly, my question was on our JV entities, sir. I think most of our brake businesses take under the JV entities. So sir, we are constantly incurring losses in these JVs. So every quarter after quarter, we are posting a loss, and in spite of having healthy order books and posting good revenues, why is that the case, sir?
No, I think the only joint venture we have posted losses is on the DACO-CZ JV. Rest of the JVs we have done, we have shown profits. And that is also because last year we had mentioned also earlier that we are in the process of doing the localizations. But because the order books, we didn't want to lose out on order books and get to from a development to a Part 1 status parallelly where we achieve the localization. So this year, I think we are now very much ahead in terms of our localization. So going forward, there also you will see a change in terms of our profitability profile.
So what do you mean by localization here? I mean.
Sorry to interrupt, Mr. Akash. Would you return to the question? You have a follow-up question.
No, so in this, I can mention localization means that earlier the import content was because these are very specialized brake systems. So a lot of the critical parts we were importing from Europe for the brake systems. And now we have localized a lot of these components. So once we localize, the cost definitely goes down. Plus, we save on the import duties also. So that itself will have a huge impact in terms of our margin profile. And the rest of the JVs or the subsidiaries are all profitable for us.
Understood, sir. Thank you.
Thank you. The next question is from the line of Shailesh Mohta from SEP. Please go ahead.
Yeah. Good evening, Vivek sir. How are you doing? Hello?
Yes, please.
Good evening. Good evening, Vivek sir. How are you doing?
Yeah, good evening. I'm doing well, Shailesh. Please go ahead.
All right. I've got two questions. One is on rail wheel and axle project, and another is on consolidated cash flow statement, which could be a housekeeping question. So I'll start with rail wheel and axle project. I heard you saying that this project will be completely commissioned by financial year 2027, and you expect a turnover of INR 3,000 crores from this particular Khurda plant. So just a question on this as to when do we expect 3,000 crore turnover from this plant and at what capacity utilization level?
So we expect the same to happen in FY28.
28, 29.
2028, 2029. I think that has been our projection when we reach up the capacity. And we are looking to close to about 80% at about 80% of plant utilization.
At 80%, we will get INR 3,000. And this INR 3,000 crore will come roughly one and a half years after the project is commissioned, correct?
About a year after the project is commissioned.
All right. Now, question on consolidated cash flow statement. I was looking at this segment called cash flow from financial activity, where I find that the proceeds from long-term borrowing and the repayment of long-term borrowings both are positive figures. Whereas I believe that repayment of long-term borrowing should be a negative figure, which was there last year. Could you please explain that, or maybe I'm missing something here?
Just hold on. I will pass the line to CFO, Mr. Sanjiv.
Please.
Yeah, he will be in a better position to answer you. Just hold on for one minute.
Yeah.
Need to check that figure, see how it is coming here. So we will revert back to you on this. It's right. So we'll revert back to you on this in a couple of days.
Now, is the question correct? Or, I mean, you will be reverting back on what? Because I've seen the total of 84,158 is correct.
Coming question is correct. But we need to check what is exactly why it is that. Yeah. So as CFO said, apparently, from the face of it, it looks correct, but we have to understand exactly what is the reason behind it. We have to revert back.
All right, Vivek ji. I have a few more questions, but in the interest of time and giving opportunity to others, I'm not asking them. How do I ask a question? Do I write to Mr. Keshri or Secretarial Department or what?
Yeah, definitely, you can write to Mr. Keshri or the Secretarial Department. I'll show you. You will get revert back from us.
No worries. Thank you very much, and all the best for future and also for your plant expansion.
Thank you.
Thank you. The next question is from the line of Sachin, an individual investor. Please go ahead.
Hi, good evening. Can you hear me?
Yes, good evening, Sachin ji. Please go ahead.
I had a question with regards to the debt that we're taking. 60%-65% of debt for the new factory. I'm just wondering with this new debt servicing that we have to do, are we confident that there won't be too much dilution for shareholder value in terms of profits, which is at the end of the day, we have to service it. And we're not seeing the growth that we probably anticipate to service a project like that. Will we see the path coming down in the coming years? Is the question.
No, I think taking on the contrary, if we had taken more equity, that would have the shareholder returns would have come down. I think the and then plus the debt is on the subsidiary. So JWL has no direct obligation on the debt. The debt is taken at the subsidiary. So I don't see a reason why there will be any impact, first of all, on JWL. Secondly, we are very confident on this project. And as you have seen, there is a substantial demand-supply gap. And our own captive demand for wheel set itself is so strong. I think about half of the capacity will just go towards fulfilling our captive demand. And plus with the strength which we have in terms of our European partnerships, as well as the demand which is there from IR, which we and other players in the market.
Honestly, I don't see a reason why we would have any challenges in terms of supplying.
Okay. Okay, thank you. And my next question is, I'm not sure if I heard that right. You said we are delivering around 100 vehicles per month in the ELCV segment. Is that right?
No, I'm saying that we expect to achieve that number very shortly. So the response on the market has been very, very positive. And we are now working towards consolidating our supply chain. So we expect very shortly in the next six to eight months to achieve the number of about 100 vehicles.
Okay, so I'm just wondering because our previous guidance for the vehicles in this particular financial year.
It's the same question, sir. It's the same question, sir. It's on the same delivery of vehicles that I'm asking the question.
Yeah, so the previous guidance, I'm not sure if we are actually meeting that. With the 8,000 vehicle delivery capacity, we are still doing 100 in a few months. Would we be able to achieve the previous guidance given the vehicle manufacturing?
You are confusing with capacity and about deliveries. We had never mentioned that we will be doing 8,000 vehicles. We have mentioned that that would be our capacity. None of our guidance, I think, ever mentioned 8,000 vehicles. So you are confusing between capacity and in terms of the deliveries.
So after six months, we'll be doing 100 vehicles per month?
Yes, yes. That is what the numbers which we are targeting, and we are fairly confident on the same, but however, please don't confuse capacity.
Okay. Okay, sir. I'll rejoin with you. Thank you.
Thank you. The next question is from the line of Chanvi Patel, an individual investor. Please go ahead.
Hello.
Yeah, good evening, Chanvi, please.
Yeah. Sir, my question was related to a shareholder perspective. Actually, I'm seeing a lot of value loss in your company and in my personal shareholder money also. So are you planning to do something for the shareholders at least?
Chanvi, I honestly, in terms of, the company has been fairly robust in terms of performance and guidance, and we have been issuing dividends also on a regular basis. So beyond that and all the projects which we have undertaken, and we have been very consistent with the execution also on those projects. So I think in terms of shareholder value, I think it all depends on a lot of external factors which are beyond our control. So it will not be fair for me to even comment on that. However, we will continue to meet the targets which have been set by us. And I can assure you that the company is on a very strong trajectory both in terms of revenues and profitability.
Thank you, sir. I appreciate it.
Thank you. The next question is from the line of Rajesh Vora from Janmay Ventures. Please go ahead.
Good evening, Vivek. Just wanted to get your perspective on how do you plan to, you mentioned the battery business is a very good opportunity. So what's the 2-3-year roadmap for battery business?
Could you please repeat the question? Your voice, I could not get you exactly.
Yeah. In your mobility subsidiary, battery business is one of the good opportunities you were talking about earlier in the call. So could you give us some sense on the two, three-year roadmap about how you plan to exploit that opportunity?
Again, to give right now, the roadmap is very premature. But what I can say is that the market is growing. It's growing close to about 100-200% year on year right now. Just one segment, if you look at the battery storage segment, as you are aware, that now the government is mandating all solar parks to have substantial capacities, which they would require to store that for evening use. That market itself, I think, in India, by 2030, is projected to be about close to 10 gigawatts. You can imagine the size of that market right now. More than, I would say, 99% of that demand is met from China directly. But definitely, there's a huge push for localization of the same, which is also going to happen in a very rapid manner. That itself, I think, is a huge addressable market.
Plus, as we reach scale in India, our exports are also going to, as you're aware, that Jupiter has been exporting also these solutions, and that will also keep on growing. The railway segment itself, right now, we have already started with the Vande Bharat, but on the passenger coach side also, we expect a lot of orders to come for these batteries and for the railway applications. So I think overall, definitely, there is a huge opportunity in this segment.
Interesting. And my second question on wheel set business, you mentioned that FY 2029, when company operates at 80% utilization, will be around roughly 3,000 crores of revenues. What sort of margin we could expect from that in that year, roughly? And what is the payback period for this INR 2,500 crore project? What is the payback period in terms of number of years?
We expect margins of over 20%, as I mentioned. And I think the debt repayment is over 12 years. Over 10 years. Sorry, it's over 10 years.
Okay. Okay. And we'll get our money back INR 2,500 crore in terms of profits. Would be what, five years, four years, six years?
Around five years, roughly.
Okay. Great. Thank you. All the very best, Vivek.
Thank you. The next question is from the line of Deval Shah from Sunidhi Securities. Please go ahead.
Yeah. Hello, sir. So basically, I was seeing the figures of axle. So in this quarter, it was 24 against the previous quarter of 1,498. So what is the reason behind it?
Wheel Set. We have converted into Wheel Set.
Hello?
See, the reason being is in the previous quarter, we must have sold loose axles to Indian Railways. And this year, the sale has been more on this quarter, the sale has been more on wheel sets rather than the axles. So the axles was part of the wheel sets. And that time, loose axles must have got delivered. So it depends on which order book is getting executed in which quarter. So I think it's because of that.
Okay. Understood, sir. And second question is, there is a speculation because of the wheel set shortage issue, this time, the government had kept a flat budget for railways. So if we see the recovery in the second half, then can we expect a raise in the Indian Railways budget?
This is a question I think it is to be asked to the government, I think, to the policymakers. But definitely, the budget was not kept flat for shortage of wheel sets. I can assure you that. The government is very, very positive on the railway sector. The freight business has been growing consistently. They expect the freight business to grow further, and that is one of their focus areas. So definitely, we will and the government is investing a lot on the track infrastructure itself. So definitely, in future, we will see a strong momentum in the segment.
Okay, sir. Thank you for answering the question.
Thank you. The next question is from the line of Jainam Jain from ICICI Securities. Please go ahead.
Thank you for the opportunity again. Sir, my first question is, out of 8,700 wagons supplied during 2025, how much was supplied to private segment?
Just hold on. The private segment.
The supplies, how much was to private and how much to?
Unfortunately, that number is not readily available with us, but if you write a mail, we'll share the same with you.
Okay, sir, and sir, actually, I remember we answered the earlier question asked by one of the participants. What's the guidance we have for FY 26 in terms of revenues and margins?
So again, as I've told you, margins will be similar. There will be some slight improvement in margins, but nothing substantial. We already, I think, our margins are the leading in our segment. In terms of revenue guidance, again, as I mentioned, that we are targeting to achieve close to 10,000 wagons in terms of revenues. But that all depends on the improvement of supplies from Indian Railways for wheels, which we are fairly confident will happen. So again, it is subject to that. I think in terms of guidance, it would be better, I think, next quarter if we'll be in a fairer position once the supplies improve to give substantive guidance in terms of revenues. But definitely, we expect the revenues to improve over next year.
All right, sir. Then I'll give you permission. Thank you and all the best.
Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand the conference over to the management for closing comments.
To conclude, FY 25 has been a year of solid progress and execution across all fronts. With the foundation firmly in place, the start of FY 26 is already looking brighter. We look to build upon this momentum and drive sustained growth through the rest of the year. 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 lines.