Ladies and gentlemen, good day, and welcome to Minda Corporation Limited Q3 FY 2026 earnings conference call, hosted by Elara Securities India Private 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 a touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Munindra Upadhyay from Elara Securities India Private Limited. Thank you, and over to you, sir.
Thank you, Rudra. Good evening, everyone. On behalf of Elara Securities, I would like to welcome you all to Q3 FY 2026 earnings conference call of Minda Corporation Limited. Today, we have with us from the management team, Mr. Akash Minda, Executive Director; Mr. Ajay Agarwal, President, Finance and Strategy; and Mr. Nitesh Jain, Lead Investor Relations. I would like to thank the management for giving us this opportunity. I'll now hand over the call to the management for their opening remarks, post which we'll open the floor for Q&A. Over to you, sir.
Good afternoon, everybody, and thank you, Elara Securities and Mr. Upadhyay, for organizing this call. Good afternoon, everyone. Welcome to the Quarter three and nine months Financial Year 2026 earnings conference call of Minda Corporation Limited. I hope you all are doing well. It is our pleasure to connect with you today and present our performance for the quarter, along with some key developments across the businesses.
India has recently secured significant trade deals with the UK, European Union, and the United States, marking a transformative step in the Indian market, for Indian market. These agreements promises to unlock greater market access and business opportunities, positioning India as a key player in the global trade arena, especially for the automotive and auto component industry.
The Union Budget 2026, revealed on Sunday, has set a clear course for India's automotive future, shifting the focus from short-term buyer subsidies to long-term supply chain resilience and green energy integration, with initiatives like Semiconductor 2.0, EMC scheme , Rare Earth Corridor establishment, and focus on, and focus for MSMEs also. For Quarter three, FY 2026, we witnessed strong performance across all major vehicle segments due to the key reasons such as GST reductions, festive season buying, new launches, improved financial availability, supported by favorable market conditions. Overall, the auto industry grew by 17% and entered the quarter for FY 2026 on a firm footing, with stable macroeconomic conditions and policy-led affordability gain. Coming to the performance from Minda Corporation.
For the quarter three, FY 2026, the company has maintained its strong growth momentum, led by outperforming the automotive industry growth, and achieved its highest ever quarterly revenue of INR 1,560 crores, representing a robust growth of 25% on year-on-year basis. The performance was fueled by sustained demand across key vehicle segments, increased share of businesses and content per vehicle, and strong traction in EV and premium product categories. During the quarter, the company's EBITDA stood at INR 184 crores, reflecting a margin of 11.8%. The reported profit after tax reached INR 84 crores with a PAT margin of 5.4%, supported by improved operational efficiencies and a favorable product mix. I am also happy to share that our Board of Directors has recommended an interim dividend of 30%, that is INR 0.60 per equity share.
Our associate company, Flash Electronics, continued to deliver strong performance, with revenue of over INR 488 crore, with an EBITDA of INR 90 crore, representing a margin of 18.4%. This strategic partnership has significantly strengthened our presence in high-growth domains such as EV power electronics, traction motors, motor controllers, and other related products. The collaboration continues to deliver operational synergies and will play a pivotal role in achieving our growth roadmap.
Our performance continues to be guided by the key pillars of growth, which we have shared earlier. First, investment and growth in existing businesses. Second, export market focus. Third, premiumization of existing products. Fourth, new product launches by way of partnerships and organic technology development through our technical centers. We are happy to share that the Board of Directors of the company has appointed Mr. Ajay Agarwal as Group Chief Financial Officer and a key managerial personnel of the company, in addition to his existing role of President, Finance and Strategy, for the company, effective 5th February 2026.
We are also happy to let you know that the Board of Directors have approved an ESOP scheme 2025, marking an important milestone in rewarding our employees. Our ESOPs scheme 2025 is forward looking and aligns with our vision 2030. This is, of course, subject to shareholders approval. Looking ahead, we remain committed to executing our strategic priorities with continued focus on enhancing our system solutions offering, strengthening customer relationships, and investing in new technologies and systems. Our emphasis on operational excellence, strategic partnerships, and innovation will play a critical role in driving the growth in FY 2026 and beyond.
Our key focus remains on disciplined capital allocation, expanding our presence in high growth segments, and advancing our R&D capabilities that will drive long-term value creation for all our stakeholders and shareholders. With that, I would like to invite Mr. Ajay Agarwal, Group CFO, to take you through our detailed financial presentation and performance and key highlights for the quarter. Over to you. Thank you.
Thank you, very much, and good afternoon to all of you. I hope, you have the slides in front of you that were shared a while back. I'm on slide number two. Slide number two pretty much gives you the overview of Minda Corporation and its scale of operation. As many of you know, the group's revenue in FY 2025 stood at INR 7,472 crore, with a consolidated statutory revenue at INR 5,066 crore. We have manufacturing footprint, which includes 32 plants and 18,000 employees all across the globe. Our strong performance is backed by strong focus on innovation, with which we have close to about 320-320 patents filed, out of which 147 patents have already been granted. Moving to slide number three.
This slide talks about the auto industry in India. As many of you would have already seen, the auto industry in Q3 grew at around 16.8% vis-a-vis last year, and all across, strong performance were witnessed, whether it is tractors, whether it is commercial vehicle, three-wheeler, passenger vehicle, and two-wheeler. Of course, tractors and commercial vehicle and three-wheelers led the chart. On a quarter-on-quarter basis, we saw a marginal dip. Of course, that is, you know, pretty much to do with the post-festive season normalization. We saw a very strong Q2. That could be one of the reason, but despite that, the growth is quite stupendous. Speaking about the Q3 key strategic developments, in Minda, one, of course, we recorded the highest revenue of INR 1,560 crore, representing a growth of 25% year-on-year.
Our EBITDA margins stood at 11.8% in Q3 2026, registering a growth of 36% year-on-year. We have also registered a lifetime order book of INR 2,000 crore with multiple orders across product category within the organization. We also secured multiple platform-specific instrument cluster orders across leading OEMs for our instrument cluster or display business.
During the quarter, we also filed four new patents, taking the total patents filed thus far to 320+. On nine-month performance, our revenue grew at 20% year-on-year, obviously, backed by strong fiscal policy and strategic initiatives adopted and announced by the government. The nine-month margin of EBITDA stood at 11.6%, representing a growth of 26%. Our lifetime order book for nine-month period recorded at INR 7,000 crore.
And as we have already announced, our partnership with Toyota Kirloskar Motor is also taking good shape for our switch business across vehicle segments. And in the nine-month period, we had also filed 16 new patents, taking the total patents filed to 320. From a revenue. I'm on slide number five. From a revenue perspective, on year-on-year, our revenue grew by 25% at INR 1,560 crore. For a similar period, our EBITDA grew by 28% to INR 184 crore, and PAT for a similar period grew by 36% to INR 88 crore. Speaking of nine-month period result, our revenue grew by 20%, taking the top line to INR 4,482 crore.
EBITDA for a similar period stood at INR 518 crore, registering a growth of 23%, and PAT for a similar period grew to INR 238 crore, representing a growth of 17%. As we all know, in the month of December, the government announced a new labor law. Due to the change in the labor regulation, we had to account for INR 4 crore of exceptional items due to the change in the regulation. That has also been accounted for in these numbers. From the business vertical performance perspective, our mechatronics and aftermarket and other businesses grew by 17% from INR 608 crore to INR 710 crore.
Information and connected system business from overall perspective during the quarter grew from INR 645 crore to INR 850 crore, representing a growth of 32%. For a similar period on a nine-month period, the revenue stood at INR 2,073 crore for mechatronics and aftermarket, whereas information and connected business stood at INR 2,409 crore, vis-a-vis INR 1,914 crore, representing a growth of 26%. Moving to slide number seven. This slide gives you bit of a snippets in terms of our revenue breakup, wherefrom we have got the revenue of, I'm sorry, INR 1,500 crore revenue. Wiring harness contributed about 28%, vehicle access contributed, 23% cluster business contributed 18%, and die-casting business contributed 18%, 15% .
From a geography perspective, as the company continues to be a heavily India-dependent company, India contributes about 88% and export contributes about 12%, and out of that, 5% comes from Southeast Asia business, and Europe and North America contribute 7%. From an end market standpoint, 45% revenue comes from two-wheeler and three-wheeler. Commercial vehicles contributes 29%, passenger vehicles contributes 15%, and aftermarket contributes about 11%. I'll not speak much about our associate company, Flash's performance, because Akash has already in detail covered. They have also, you know, witnessed a strong and strategic growth path across their product line, and they have also acquired a few large OEMs during the quarter.
From a capital CapEx perspective, during the year, we have committed to spend close to about INR 400-odd crore for the CapEx. We have already spent about INR 276 crore for the nine months ended FY 2026, and we plan to spend another INR 100 crore in the coming quarter as well. We are moving strongly in operationalizing most of our CapEx, whether it is die-casting plant in Pune, whether it is MSI plant in Pune, as well as die-casting plant in Greater Noida. Moving to slide number 15.
These are some of the products which are under launch. We have already detailed out in our investors day presentation as well, whether it is sunroof, PLG, whether it's switches or EV products. And slide number 13 gives you our consolidated income statement from FY 2021 till FY 2025. And slide number 12... Yeah. So with this, back to the operator, we can start with the Q&A, please.
Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone 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'll wait for a moment while the question queue assembles. Our first question comes from the line of Raghunandan NL from Nuvama Institutional Equities. Please go ahead.
Congratulations, sir, for extremely strong numbers. Sir, my first question was on commercial vehicle space. It's an important segment for us, representing around 30% of revenue. Can you indicate your thoughts about the outlook here? Do you think the demand conditions have significantly improved and you see an upcycle in this space going forward?
Yes. Hi, Raghu. How are you? I think, the commercial vehicles has done, you know, growth in the recent quarter as well as the first nine months. We expect the commercial vehicles also to continue growth, in the next, you know, quarter four, as well as in the first half of next year. The primary reasons, we believe is, you know, due to the, regulation changes, that have been there, plus the infrastructure upgradation that is happening all across India. And, last not the least, of course, you know, the trade that has been booming within India as well as for exports. So India is, of course, on a growth, you know, with the GDP growing. So we believe that these are the reasons where the commercial vehicle segment is expected to grow at least for the immediate future.
Noted, sir. Thank you. Secondly, on the orders for switches and sunroof, a very large order of INR 1,000 crore for switches and sunroof, INR 350 crore, both are starting SOP or the manufacturing is starting for both in FY 2027. Firstly, you know, when you say lifetime order, for how many years does it represent? And, you know, like would there be a ramp-up phase for this order? That is, would it take two, three years to reach the peak? How does it work?
Yes, Raghu, I think what you answered is also your own questions. So yes, the switches business is expected to start in quarter two, FY 2028, so next year. The plant is already under construction. Its partners are already here, and now the localization, the other things are going on. So we expect one year from here, and you know, the production to start. Yes, the orders that you mentioned are lifetime, so they will take about two years to ramp up, and then subsequently it will move forward. Number two, when it comes to the sunroof, so that is also a lifetime business. It is expected to start SOP in quarter one of FY 2028, which is next year, and 2027.
The ramp-up is expected to happen over the next two quarters. So, that is how we expect these businesses to ramp up.
Thanks for the detail. Would it be fair to assume that lifetime order would mean four years?
Yes. On a typically, you can say four to five years. Yes.
Understood, sir. And, on the export side, how are you seeing the signs of improvement? Recently, there has been both talks of E.U. and U.S. agreements with India. So how do you see the future for FY 2027, and also your strong markets of Asia, if you can talk about all of them?
Yes. So for us, you know, at least now we can see the exports coming back to, you know, normalcy in this quarter. You will, you know, acknowledge that over the last, you know, many quarters, about four, five quarters, the exports have been kind of subdued. But this quarter, we have seen, you know, coming back to normalcy, where our exports to Europe, as well as to the U.S., are picking up, and it is across the divisions that we have. Now, we welcome the trade agreement between the U.K. and Europe, as well as the tariff alignment, you know, that has happened between India and the U.S.
However, auto components is not clear, yet, and we will get a clarity soon, but hopefully it should be in the similar range and not much of a difference, where we continue to engage with our customers. The order books that we have already won in the last, you know, quarters, where we have shared before, they expect to come without any delay, into start of production over the next few quarters.
Thank you, sir. And lastly, to Ajay, sir. Sir, if you can indicate, other expenses have seen a 7% QoQ drop. Can you indicate the reason and whether this number is sustainable? Also, if you can talk about copper, there has been a big increase in copper price. Is there a lag for us in pass-through of that commodity impact to customers?
See, all indexed costs are having, you know, a reciprocal arrangement from our vendors, plus from our customers' perspective. There should be a lag of a quarter or so, while we do the true-up with our vendor and pass those on to the OEM. That arrangement has been there with the OEMs for several years now, and that practice is, you know, working quite well. Yes, definitely, you know, this year has been a quite an aberration when it comes to commodities, and not only for copper, it is equally applicable for aluminum, because, and rest of the alloys as well, because we are heavily dependent on aluminum, copper, and rest of the indexed products, too. Speaking about the other expenses, we have managed to, you know, reduce the other expenses, and largely those are due to three counts.
One is saving some energy costs due to renewable and a few other things. Second, we have managed to carry out certain activities through job work as well. That has also led to reduction of our other expenses.
Thank you, sir. Fair to assume that you will be able to maintain the other expenses to revenue at this reduced level?
Yes.
Yeah. Thank you, sir. I'll come back in the queue.
Thank you.
Thank you. Our next question comes from the line of Jyoti Singh from Arihant Capital Markets Limited. Please go ahead.
Good evening, sir. Hope I'm audible?
Yes, ma'am, you are.
Yeah. So, so my first question is, while the shift to information and connected system is driving, top line growth, but, consolidated EBITDA margins have remained stagnant around 11.5%. Can you, can you build a path to your target of 12.5%? Specifically, how much of this margin expansion is dependent on the localization of high-tech electronics versus the pure operating leverage?
So, Ms. Jyoti, we have already shared before that, first of all, you know, where we come from is about a high single digit, about, you know, couple of years ago. And the last e ight to 12 quarters, we have come from about 10% to a sustainable and consistent delivery of 11.5%, which is what we had committed, as well as shared with all our, you know, shareholders, and, you know, all your colleagues.
Similarly, I think, this is also one of the highest ever EBITDA that we have posted at, you know, with 25% growth in the revenue. And on the nine-month basis also, we have posted the highest ever EBITDA in terms of the value and the percentage terms. What is going to drive growth going forward is on multiple aspects. Our first, continue focus on operational excellence. Number two is, we are investing and going to be focused on localization and backward integration as well.
There are multiple initiatives that are happening that I can't share on the call, which are strategic in nature, on how we can improve that, whether it is related to the electronics or, you know, some of the subsidies that the customers have, sorry, the government has, you know, offered us, and we'll be investing in that, which will help us drive Minda Corporation growth, both from top line and bottom line. So, this is what I would like to share about, you know, how we have come across and where we are looking at growing from the EBITDA perspective.
Okay, okay, got it, sir. So, sir, you have announced around INR 2,000 crore CapEx plan to triple revenue by 2030. So, how will this massive investment translate into a 15%+ ROCE? And at what stage do we expect to see the peak of this capital intensity?
Every year we spend, you know, give or take, INR 300-INR 400 crores. So if you are looking at, you know, up to FY 2030, by design, we will land up spending around INR 1,500 crores. And given our other strategic priority, whether it is premiumization, whether it's investment in, you know, new businesses, acquiring new clients, focusing on export, launching new products, all those will also accelerate our CapEx from INR 1,500 crores, design INR 1,500 crores to INR 2,000-odd crores.
From a return on capital employed perspective, you know, if you do a apple-to-apple comparison, we are already doing a margin of about 22%. Because, you know, while the dysfunctional numbers you are able to arrive at is due to the fact that, you know, interest is labored in, Minda Corporation, whereas the revenue or the profit of Flash is not consolidated.
But if you do the apple-to-apple comparison, we do close to about 22% ROCE. And I think, you know, what we have promised the market to deliver by 2030 is improvement from 22% to 25%. And given our disciplined capital allocation and making sure that whatever investment we do, particularly from connected business, high revenue business and high-margin business, we are confident that we will be able to, you know, increase our ROCE from current 20% rate to 25%.
Okay. Okay. And, sir, what is our current gross debt as of December 31st, both long term and short term? And have we repaid any during this period, and what are the repayment plan going forward?
So our gross debt is about INR 1,100 crore, and we have paid about INR 70 crore debt during the first nine-month period. I don't have the quarter-wise figures, but during the nine-month period, we paid about INR 70 crore. And, as you know, promoter has infused around INR 104 crore through share warrant. That amount was largely used towards the repayment of debt.
Okay. During FY 2026 or further?
During FY 2026.
Okay. Okay. Thank you so much, sir. That's it for now. Thank you.
Thank you. Participants who wish to ask a question may press Star and One on the touchtone telephone. Our next question comes from the line of Sridhar Kalyani from Antique Stock Broking. Please go ahead.
Thank you for the opportunity, sir. My question is with regards to Flash Electronics, where Mr. Sanjeev Vasdev had mentioned a few months back on Minda Corporation, so your story back, that they were in very advanced state with respect to the non-rare earth synchronous motor . Just wanted to understand, what is the status on that product? Are we ready for mass production, or do we have any commercial order from any of the OEMs also?
Yeah. So that motor is already designed, developed by our technical center or Flash technical center in Poland. Yes, it is already, you know, it takes a lot of time on the field trials as well. But yes, we have showcased this product to our couple of customers as well, and we are working with them closely. But yes, no order has been booked so far. But all our large customers are, you know, moving forward for final evaluation or further evaluation, and then we can hopefully be able to conclude something in the next, you know, couple of months.
So, is it fair to understand that the OEMs are currently testing the product rigorously? Is that the current status?
That's right, yes. We are also testing. Yeah. And then we have at some customers as well, and on the field.
Generally, sir, how much timeline does it take for the OEMs to test and validate the product, and then for that product to come under our SOP?
So technically, in the automotive industry, you know, where it's a new product, you can say once the product is ready to offer to the customer, then depending on the product, and in this case, you know, you can say at least about eight, nine months' time, because the entire architecture and the vehicle performance is based on, you know, the motor. So yes, with the technically proven solution and all the simulations and the validation that are done in the lab, it could take somewhere about six to nine months from, after, you know, award to come into the mass production. From the first sample to come into the order and then so on so forth.
Got it. And this is a proprietary product which is, under the label of Flash Electronics. Is my understanding correct, sir?
Yes.
Okay, thank you so much.
Thank you.
Thank you. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. Our next question comes from the line of Shubham Batra from Ambit AMC. Please go ahead.
Hi, sir. Thanks for taking my question. Congratulations on a strong set of numbers. Couple of questions: firstly, the Flash margins have been doing really well, and we are growing margins quarter- on- quarter. What would be a sustainable level of margins to assume going forward? Secondly, if you could talk on what is the capacity utilization across-
Sorry to interrupt you, sir, but can you speak a little louder? Just a little louder.
Sure. My first question was, Flash margins have been doing really well. What is the sustainable, sustainable level of margin to assume going ahead? Secondly, what is the capacity utilization across business segments for us currently?
So, the margins, you know, are again going to be in the same level that we have shown in the last, you know, two or three quarters, which is somewhere about, you know, 16%-17%. And, we expect this to be, of course, you know, stay sustainable and consistently going forward. Of course, many of this or a lot of this is also dependent on the export orders, which is also good for this quarter as well for Flash Electronics. And, sorry, your second question was what?
Capacity.
Yeah, capacity utilization. On the second, capacity utilization on the gear business, their capacity utilization is quite, you know, high. But they have, you know, how do I say, the facility where they can add on new machines and create capacity. So that's, you know, not a concern in terms of space. When it comes to the other EV motor and the other, you know, the ICE products related, so they have capacity to the tune of, let's say, about 20%. And plus for the electric vehicle motors and the motor controllers and integrated drive unit, there's a plant that they had inaugurated about a year ago, is already full. We have now started investing in the new plant, which will be ready in about three to four months' time.
Sir, I also wanted capacity utilization on our Minda business, the die casting and...
Oh, I see. I see. Yeah, Minda Corporation overall capacity at the group level is, you can say, somewhere about 84%-85%.
Okay, got it. Got it, sir. Thank you.
Thank you.
Thank you. Our next question comes from the line of Devesh Kayal from Monarch Networth. Please go ahead.
Yeah. Sir, can you share R&D spends in other expenses? What was the amount of R&D spends in other expenses?
Sorry, can you repeat the question, please?
Can you share R&D amount?
R&D expenses, we are spending, investing somewhere about 4% of our top line, which is including OpEx and CapEx.
And so, and-
It is not included, it is not included in the other expenses because, you know, obviously, the whole expenditure can be bifurcated into what is OpEx and what is personnel expenses, people-related expenses. So people-related expenses will feature in employee costs, and other expenses will accordingly get clubbed across each of those separate things. But by and large, we will be tracking as Akash rightly mentioned, we spend about 4% of our revenue in R&D.
Understood. And for the nine months also, it would be around 4%?
Sorry?
For the nine months also, it would be around 9.4%.
Yeah, yeah, yeah.
Nine months of 2026.
Yes, yes, close to 4%.
Sir, if I see the other segment, so if I exclude the aftermarket revenue from that other segment, so the remaining, basically the EV products and all, so that seems like a very low number for this year, for this quarter. So is that understanding right?
Yeah, again, this includes firstly our multiple products, which is the, you know, the small, starter motor division, the EV product lines, then the interior plastic division. You know, there are other products which are under startup phase. So yes, there are, you know, products which are getting into SOP. There are products which have recently got into SOP, so the ramp-up does happen. But, overall, the quarter product mix is, you know, depending on the, on the larger vertical segment.
That segment includes aftermarket revenues also in the others?
Sorry, say again very clearly. Yes.
No, I'm saying, the others segment includes the aftermarket revenues also, right?
Yes. Yes.
Okay, okay. That's it from my side.
Thank you. Thank you.
Participants who wish to ask a question may press star and one on the touchtone telephone. Our next question comes from the line of Vijay from Nuvama. Please go ahead.
Hi, sir. Thank you for taking my question. Couple of questions I had. First is on Flash Electronics.
There is a very good margin expansion on the Flash Electronics for last six to nine months. I just wanted to understand, what is driving this, margin expansion? How much is coming from the synergies, and what else are the main factors for that?
Yeah. So as you know, Flash Electronics houses multiple products, which is EV, as well as on the ICE-related powertrain product line. And the third vertical is on the gear business. So there are three primary product lines. Of course, margin expansion is coming from the EV product portfolio, as well as of the gear businesses, which are exports. These are the reasons, you know, again, a favorable product mix on how the expansion of the margin is happening. But yes, growth is coming across all three product lines, and across domestic as well as exports.
Do we expect to maintain this 18% EBITDA margin going forward for Flash Electronics?
So I just shared before, it's sustainable numbers could be again about 16%-17%, here and there. But of course, our interest is how we can expand them further, which is our, you know, efforts that we're putting in place.
Secondly, sir, just, on the same, the rare earth magnet issue, that is behind us, right? Or we are still seeing some impact from them.
No, that is behind us. The overall industry, I think, has figured out, you know, multiple ways, so have we. And, plus, you know, now with the new budget and, the overall magnet corridor that is being created, a lot of efforts have been done and lot of opportunities open up for the industry as a whole. And secondly, technically, on technology-wise also, you know, we have created motors, which are magnet-less and rare earth-free, and with ferrite magnet also, which are not coming from China or from other countries as well. So yeah, technology-wise also, we have developed products for across segments which can cater, you know, to those products also.
Looking forward into the fourth quarter and FY 2027, are you seeing any raw material headwinds, and how do you plan to tackle it, especially on the copper, the aluminum, and other metal side?
You know, I was reading some of the financial statement of some of the large resource companies in India. Many have hedged their position and many have not hedged. And you would have already seen some companies that hedged silver at some $39 in Q2. If those companies are not able to predict how the commodity cycle will behave, it's very, very difficult.
But thankfully for us, whether it is Flash, whether it is Minda Corporation, all our group companies are following a very strategic approach, which is passing on the cost. We don't enjoy the upside, neither we lose our sleep because of the price going down. So therefore, we are properly hedged, and we are not in the business of making money out of commodity uptrend or downtrend. We are here to really excellent manufacturing capability and deliver quality services to our clients.
There is no time lag between the raw material price increase and pass on to the customer, or is it there is a delay?
I think I just answered question to the previous question. We typically, you know, do this index cost pass on quarter on quarter, so we do throughout every quarter.
Okay. Okay. Thank you, sir, and all the best for the upcoming quarters.
Thank you.
Thank you.
Thank you. Our next question comes from the line of Dhananjay Mishra from Sunidhi Securities. Please go ahead.
Thanks for the opportunity and congratulations on the strong numbers. Sir, we have mentioned about kit value in two-wheeler segment, including Flash Electronics. So likewise, what could be the expected kit value for the four-wheeler and EV segment once all our products go on the stage?
Oh, that's a good question, but, you know, it depends. If I look at a complete kit value with Flash Electronics and what we can offer only from the engine side, you know, it is only from the primarily on the power electronics front, and now we are working, you know, for the four-wheeler motor that we have developed. So we can typically put somewhere about, you know, INR 50,000-INR 60,000.
However, if I club, you know, products and make it a system solution into, you know, six in one or seven in one, you know, that could even go up to INR 90,000 or INR 100,000. So it really depends, you know, as a complete kit value, but customers may select to take all as a combination. They may select to take, you know, one component out of this. They may select integration. So a lot of possibilities are there when it comes to this, you know, product offering in the four-wheeler space.
You mentioned for the new order, which is into smart key segment, that will start in Q2, FY 2028, right?
Which segment, sorry?
The new lifetime order we have received INR 1,000 crore. So which will start in Q2-
That one, part of it will start-
Q2.
That part of it will start Q2 of next fiscal year, and part will start in Q2 of 2028, 2027.
Good. Okay. Okay, like, here it is mentioned, the facility will be completed by Q4 of FY 2027, right?
Which are you talking about, the sunroof or the...
Sunroof, you mentioned Q2 or Q1 of FY 2022.
Which is already under commissioning. The plant is already expected to be ready by quarter four, FY 2027, which is about one year from here. And the SOP is expected to start in quarter one and or quarter two in FY 2028. And then, the ramp-up of, you know, further will happen in, let's say, about a year from there.
Once we start getting other orders from other OEMs in the sunroof segment, what could be the potential annual contribution from this segment, let's say in FY 2028, 2029?
That's a very broad question, but as you know, the sunroof market in India is expanding and growing very fast. Now, of course, there are a couple of you know, companies as well who are working at this segment, but the sunroof is expected to penetrate faster. There are also various technologies that are coming in. So our target is how we can go to at least you know, 10%-15% of market share by FY 2030 or 2031. That is our intention right first.
Okay. Okay, thank you. That is a good message.
Thank you. Thank you very much.
Thank you. Anyone who wishes to ask a question may press star and one on the touchtone telephone. Our next question comes from the line of Munindra Upadhyay from Elara Securities India Private Limited. Please go ahead.
Thank you for taking my question. Actually, I have a couple of questions on a bit long-term trend first. So on the ADAS and sensors business, what kind of demand, outlook or localization potential do you see for the say, next three to four years down the line? And what are our plans to, like, capitalize on that, product?
Yeah. So, I think the safety is, I think, very important globally and, more importantly, in India. It is also personally very close to my heart on how I, we can contribute as an organization to this. Coming to the ADAS systems, you know, there in the new four-wheelers that are coming in, there are very much equipped until L1, you know, level of ADAS systems coming from the Indian or even, you know, global OEMs. Number two is, these systems are currently provided by the large global Tier 1s, as it is a system solution offering. Our focus here across the ADAS as a product is to enter from the component side and not the system when it comes to the, you know, passenger vehicle or others.
So that's number one focus. Number two, when it comes to the other segments, such as two-wheelers and all, we have already developed products, which are already getting tested at customer end, which is a complete system solution offering for front collision, you know, rear blind spot. So these are some of the systems that we have already developed for this market. And then looking at the you know connected components from the ADAS, this is where we would like to you know work and we're looking for a couple of opportunities in that respect. So ADAS is something that we are going to be taking going forward from the component side primarily.
Okay, that was helpful, sir. My second question was on the export front. So how are we see the demand, like, panning out? Is the situation improving there, or, like, any, comment on the recent FTAs? Like, do you, we expect to pick up in demand due to this? Any commentary or outlook would be good on this, sir.
Yeah. So, Mr. Upadhyay, the first time in, I think, six to eight quarters, particularly from Minda Corporation, the export orders have come to normalcy. And, you know, thanks to the clarity that is brought by various, you know, EU agreements, as well as, you know, the tariff clarity, et cetera. However, in going into quarter four and the next, you know, year, we expect our new SOPs to come into a new, new startup, new orders coming to start up production, as well as the existing business ramp up to happen. So it is expected to grow. I cannot really comment how much and how fast, but it is just the first quarter and too early to comment, so we'll have to see on quarter-on-quarter basis, at least for the next two quarters.
Thanks. In addition to what Akash just said, you know, our long-term vision remains quite strong for exports. We expect to take our export business from current about INR 500 crore to INR 1,500 crore by 2030. That vision remains static.
Okay. Thank you, sir. That's really helpful. That was all from me.
Thank you.
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
So thank you very much, and, you know, I would like to really, thank Elara for organizing this call, and thank everyone for joining the call. We remain highly confident in our growth trajectory, both in the near term and long term, driven by strategic investments and unwavering commitment to advancing our products and technologies.
We are committed to creating value for all our stakeholders and shareholders. We are investing deeply in our capabilities in terms of people, capacities, capabilities, technologies, and competencies across fields. I hope we have been able to respond to most of the queries. For further information, we request you, please do get in touch with our IR team. Thank you, and have a great day.
Thank you. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.