Q1 2027 Talbros Automotive Components Ltd Earnings Call
Speaker #1: I now have the conference over to Mr. Anush Talwar, Managing Director. Thank you, and over to you, sir.
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Speaker #2: Thank you. Good afternoon, everybody. A very warm welcome to our Talbros Automotive Components Q1 earning for Q7. On the call today, I'm joined by Mr. Naveen Juneja, our Director and Group CFO, along with our IR firm SGA.
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Speaker #2: The results and the investor transition have been uploaded on the stock exchange, and the company website. Before I take you through our performance, I'd like to spend a moment on the broader industry landscape.
Speaker #2: The Indian automotive industry delivered a healthy performance during the first quarter of 2027, supported by continued demand across key vehicle categories, improving consumer sentiment, sustained infrastructure, spending, and improved supply chain stability.
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Speaker #2: Structured trends such as premiumization, increasing localization, vehicle electrification, and global chain diversification continue to create significant opportunities for the domestic auto comp industry. The passenger vehicle industry recorded sales of approximately $1.27 billion units, finishing a growth of 26% year-on-year.
Speaker #2: The growth was primarily driven by sustained demand for SUVs, premium vehicles, as well as new model launches. The two-wheeler segment also continued its recovery, with a growth of almost 20% to year-on-year at $5.63 million units.
Speaker #2: The growth was supported by improving rural demand, stable financing availability, and obviously the GST cut as well. This segment and the one above remain important for Talbros, as we are supplying to both passenger vehicles and two-wheeler segment.
Speaker #2: You'll also see in the coming slides that in the pure PV joint ventures that we have, we have grown higher than industry. Commercial vehicles recorded steady performance during Q1 with the industry volume of nearly $2.83 lakh units, registering a healthy 15% growth.
Speaker #2: The growth was supported by robust infrastructure spending, improved freight movement, as well as mining activities. The long-term outlook for the segment remains positive, driven by sustained government capex and resilient growth targets.
Speaker #2: Electric mobility continued to witness healthy adoption across vehicle segments. EV passenger vehicles volume grew by 87% year-on-year, while electric two-wheeler continued to gain market share, with a growth of approximately 68%, supported by increasing charging infrastructure.
Speaker #2: Rising fuel prices and this entire disruption that happened in the West Walls gave birth to electric vehicles getting more and more popular. As you know, Talbros Automotive is anyway supplying a lot of components for electric vehicles.
Speaker #2: We maintained strong partnerships with our diversified customer base, with OEMs such as Maruti, Tata, Jaguar, Land Rover, Bajaj, etc. Beyond domestic demand, global supply chain continued to undergo structured realignment.
Speaker #2: Several international OEMs are actively diversifying their supply chains away from China and expanding sourcing from India. We expect to capture meaningful growth opportunities increasing our volume with existing customers while also establishing relationships with new OEMs to expand our customer base.
Speaker #2: Coming to our performance, I'm pleased to share that Talbros has delivered yet another Q1, achieving its highest ever-quarterly revenue and surpassing the previous high recorded in Q4 of 2026.
Speaker #2: During Q1, our total income stood at $242 crores, registering a growth of 15% year-on-year, EBITDA at $43 crores, at a margin of 17.6%. Margins during the Q1 witnessed temporary pressure on account of elevated commodity prices, particularly steel and aluminum, as well as other inflation costs such as labor increases in some states.
Speaker #2: But we're very happy we have very positive that we will get these increases from the OEMs in the coming quarters. Our diversified business model balanced exposure across domestic export markets and presence across multiple vehicle segments continued to provide resilience during varying industry cycles.
Speaker #2: Our gasket and heat shield division continued to remain the largest contributor to our business, giving a 52% share in the revenue. The division reported revenue of $164 crores, offset $242 I mentioned to you, growing by 21% year-on-year.
Speaker #2: And EBITDA increased to $29 crores, with a growth of 32%. Growth has come basically from increased heat shield exposure with car makers like Hyundai and Kia, as well as a lot of data center business, which I'll talk about later in my speech.
Speaker #2: We continue to maintain our leadership position with nearly 50% market share in the domestic gasket market and a single source of many, many OEMs.
Speaker #2: As mentioned to you, our heat shield business is showing good momentum, strong momentum, because it's again a lightweighted product. It's for noise, vibration, and harshnesses, NVH, is something for the future.
Speaker #2: We are probably the largest player for this product category in India. Our 14-division continuous recovery this quarter, with revenues being at about 78.4 crores.
Speaker #2: Again, as you know, net forging is pretty much a total export-oriented unit. And what do you call it? It's basically exported to USA to UK and Europe, not USA, UK, and Europe.
Speaker #2: And the European car market has still slowed right now, given the fact there's a lot of inflation pressure out there. And even the Chinese car segment is really, really dented there, balance sheet.
Speaker #2: However, we see this as an opportunity for the 14 division, where we have got massive orders from our JV partners, Marelli, which we will again talk about in the Q&A section.
Speaker #2: As mentioned to you, exports remain our strongest growth pillars, with a contribution of almost 25%. We are targeting to take our exports to 35% by FY28.
Speaker #2: Our export portfolio includes JCB, Dana, Carraro, Jaguar, Land Rover, and as well as BMW. And Cummins America. Operational pressures from West Asia crisis, manpower shortages, higher wage costs, elevated LPG prices have largely moderated through a few challenges remaining.
Speaker #2: Our strategy for building a diversified customer base across Europe, UK, and international markets now is now yielding meaningful results as well. Coming to new growth verticals for Talbros is data centers.
Speaker #2: Data centers represents a new and expanding revenue stream for Talbros. Our gasket components are going into power engines that data centers depend on. As you know, every data center in the world needs a 100% backup, and that can only happen through generators.
Speaker #2: So we are supplying through our customers like Cummins and Kilosker Oil Company are not only are they making engines for cars and vans and trucks, but also for generators.
Speaker #2: This is a new segment altogether. Cloud computing and AI workloads are increasing the dependence of generators for the power centers, as you know. We estimate the current revenue potential from this segment so a little bit nominal can be about 30 to 40 crores annually.
Speaker #2: So that is a nice new segment to enter into. Coming to updates on important orders, as mentioned earlier, the Kia business has temporarily now resumed full pace.
Speaker #2: We've also secured new orders from Kia and Cummins. We're adding further depth to our order book and OEM relationships. As I mentioned to you, Stellantis, we started supplying from our chassis division.
Speaker #2: This took almost two years of design changes and start-of-production, but we're happy to say we started producing from, I think, Q1 of this year.
Speaker #2: This is massive. With this Stellantis, we will get more and more business from into our 14 business line and also heat shields. Our planned capex is about $103 crores.
Speaker #2: For the year, across gaskets, forging, heat shields, and to try and meet the demands of the OEM. For FY27, we continue to have a target group revenue target of about $18 to $20%, with margins being in the range of about 17%, a little bit maybe 17.5, because we're still working out the whole impact of the inflationary pressures.
Speaker #2: With that, I hand it over to Naveen Janeja to take this forward. Thank you.
Speaker #3: Thank you, Anush. Good afternoon, everyone. And a warm welcome to all the participants. As mentioned by Anush, we are pleased to report a solid performance of Q1.
Speaker #3: In Q1 of FY27, I will now take you through the financial highlights. For Q1 of FY27, the total revenues through debt $242 crores, as against $211 crores in Q1 of FY26.
Speaker #3: For Q1 of FY27, our EBITDA through debt $43 crores, with a margin of 17.6%. Bad quarter quarter through debt $30 crores. Growing 35% year-on-year basis.
Speaker #3: Now, coming to our division-wise performance, in the gasket division, first, the gasket division in Q1 of FY27, sales for this division stood at $160 crores, $64 crores, as against $135 crores in Q1 of FY26, with a BOI increase of 21%.
Speaker #3: EBITDA for Q1 of FY27 stood at 29 crores, which is up by 32% on BOI basis. Now, coming to our second division of forging, revenue in Q1 of FY27 stood at $78 crores, as against $75 crores in Q1 of FY26, showing a growth of 4%.
Speaker #3: EBITDA stood at $14 crores in Q1 of FY26, as against $13 crores of Q1 of FY26. Let me begin with the discussion on our joint venture ventures, starting with Marelli Chassis Systems.
Speaker #3: Revenue for the quarter stood at $105 crores, reaching a growth of 43% on BOI basis. EBITDA stood at $17. The business continues its strong momentum driven by high volumes for passenger OEM vehicles and increasing value-added products.
Speaker #3: Now, coming to our JV, Marvo, Talbros Marvo, revenue for the quarter stood at $40 crores, reaching a growth of 31% on BOI basis. EBITDA stood at $6 crores, a growth of 57% on BOI basis.
Speaker #3: This division continued to deliver healthy strong customer demand and improved efficiencies. Our last joint venture, Loham Talbros, also continues to progress as planned. This business represents our strategic entry into sustainable materials, through recovered carbon black and revel credential river, further strengthening Talbros's presence in the circular economy ecosystems.
Speaker #3: Moving ahead, we believe this business offers significant revenue potential and expected to emerge as an important growth driver over the medium to long term.
Speaker #3: Our strong quarter book diversified, customer-based leadership position across multiple product categories, and continued investment in technology and capacity provide us confidence in delivering sustainable growth momentum in the coming quarters.
Speaker #3: This is all from my side. Thank you, and we'd like to open the floor to questions and answers.
Speaker #2: 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 touchstone telephone.
Speaker #2: 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.
Speaker #2: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of the paint shop from Six Senses.
Speaker #2: Please go ahead.
Speaker #4: Yeah. Thank you for the opportunity and congrats on a very strong set of numbers, I should say. Sir, I had a couple of questions.
Speaker #4: Firstly, on the new OEMs, Anuj mentioned that about seven OEMs are looking for diversifying their supply chains from China to India. Could you just throw some more color on how far they have come in and whether at what stage are we set or any in transacting with them?
Speaker #4: So that's the first question. Maybe some update on the new projects which we have started with Stellantis, Kia, etc., some more color. That would be helpful.
Speaker #4: And yeah, so maybe that's the first question. I will come back to the question.
Speaker #3: So I'll do the first question between I think Naveen will talk about I think main is the reason is that the European car market is pretty dented with their balance sheets, as I keep mentioning.
Speaker #3: So BMW is giving us more business, Volvo is a potential new customer, with the gasket business line. Marelli is just opened up its doors, which Stellantis so new customer, from the chassis business line, as well as the forging business line.
Speaker #3: We are working with Jaguar Land Rover on new components for the first time, which are plastic components for the electric vehicles. That's an old customer with a new product line that they're working with JLR.
Speaker #3: Cummins America, as I keep mentioned to you, is a very slow starter. It's like a tortoise, but I'm very, very hopeful by 2027, 2028, you'll see at least 30, 40 crores of business coming from America, Cummins, with buyer harness gaskets, with aftermarket gaskets, with data center gaskets.
Speaker #3: So that's a slow starter, but a short starter. That is there. Baki Chalre Chize, Kia, we are doing good work with. Hyundai, we're doing good work with.
Speaker #3: Maruti is doing good work with. In fact, I'm going to try and meet Tata Motor's chief in the next 90 days. We'll talk about the potential plant in Gujarat for chassis as well.
Speaker #3: So yeah, things are looking good, yeah. Looking very positive.
Speaker #4: Okay. Okay. Great. And the second thing is on the Marelli thing, like we have been in talks with the company for the past couple of quarters about their stake rate.
Speaker #4: Any further progress on that?
Speaker #3: We'll have a better picture for you around end of September. You know our strategy so I think they are in the middle of court proceedings.
Speaker #3: So by 30th September, we'll have a better picture. We can talk offline on this.
Speaker #4: Okay. Thanks so much. And all the very best. Thank you.
Speaker #3: Yeah. Thanks.
Speaker #2: Thank you. Ladies and gentlemen, in order to ask a question, you may press star and one at this time. The next question is from the line of Ruchita from CGW Investment.
Speaker #2: Please go ahead.
Speaker #5: Hello, sir. Congratulations on a great set of numbers. So, sir, my question was on the data center part of it. So currently, sir, how much percentage of our gaskets revenue is coming from data center and how are the inquiries going on?
Speaker #5: And
Speaker #3: It's only about 5% of the gasket business today. It's very new because even for us, we started seeing that our products are going to Cummins that go into Cummins basically supplies we do about 100 crores with Cummins every year, right?
Speaker #3: Approximately. The gasket division this year will be north of 600 crores. 30, 40 crores will come from this particular segment. And also Kilosker oil companies.
Speaker #3: That's what I'm saying about 5, 6%. That's about it. But it's increasing. We are pretty much single source to Cummins for this particular engine component.
Speaker #3: So as and when it increases, it keeps going up. Today, 30, 40 crores, maybe up to 300, 100 crores, 200, 100 crores. And but we're not running and getting this business.
Speaker #3: It is whatever engines that they're giving to us for this particular segment, we're getting that. Because I'm single source to Cummins. And Kilosker.
Speaker #5: I can get. And gasket would be like 1% of the whole generator cost?
Speaker #3: Sure. Whatever. I mean, we don't know the real application. We ask them where it's going. We supply it to them as an intake part.
Speaker #3: The same gasket goes to engine. Engine can go to a commercial vehicle, some machine also in generator also. Same engine goes there. But if you see the progress of water, if this water comes alone, we sold 25 crores.
Speaker #3: Last year, we did about 90 crores with Cummins. Before that, we did only 81 crores. It shows that more demand is coming, that demand we ask them is going basically in the engines for data center.
Speaker #5: Okay. Okay. Okay. And in the gasket division, sir, so this year, we can expect around 165, 170 crores of run rate. But going forward, how much revenue can this division make for us?
Speaker #5: Also, currently, also similar with the forging division, like what is the peak potential of both these divisions, if I can get a number around that?
Speaker #3: Naveen, answer that. You can answer this. I can answer that. This division, gasket division, of course, the first quarter, we had 21% growth. I think the same type of growth will also happen in second quarter.
Speaker #3: We expect the same. Because the market is very buoyant and we see the same type of growth. But by the year-end, we expect this to grow about 17% in this year.
Speaker #3: Okay? Overall, overall. Coming to forging, please don't worry about the first quarter. First quarter is only 4%. Second quarter, we should expect to double digit growth in this business.
Speaker #3: And by the year-end, this business will definitely grow between 15 to 20 percent. Definitely. Because the order curing also, which will come into force in third quarter and.
Speaker #5: And are we expecting to club the Marelli business in the current consolidated since they are kind of getting bankrupt? So once the deal
Speaker #3: happens, ma'am, we can't talk about today. But that is the plan. We can't talk about if it happens, we'll talk.
Speaker #5: Of course. But the margin.
Speaker #3: Regarding your two divisions, sorry to interrupt you. Regarding your two divisions, gaskets and forging, over the next three to four years, I easily see gaskets going to about 850 to 900 crores.
Speaker #3: And forging at about 650 to 700.
Speaker #5: Of course. Then that would be gaskets the major component would be what? It would still be PV series or we see data center to take about 15, 20 percent by then?
Speaker #3: Well, it is 10% of Gojaga around say.
Speaker #5: Okay.
Speaker #3: Commercial vehicles and heat shields and our exports key orders are in. There are a lot of export orders that are coming our way. So yeah.
Speaker #4: For plastic components and our we are getting we've got out about 25 crores for plastic components. More orders are coming. That will start maturing from next financial year.
Speaker #5: Got it. Got it, sir. And also on the Marelli side, this quarter, the margins have kind of gone down. Is it mostly because of the raw material costs itself or?
Speaker #4: No, it's a mix of it's because other income is a little less in this case, in this quarter. But don't worry, it will come back.
Speaker #4: Don't worry. But at some expenditure has been for the new because that has been launched we have found a lot of manpower. For that purpose, shed rental has started, etc., etc.
Speaker #4: That is a really big by the year-end, everything will be sorted out. Don't worry. Margin will come back. It's quite 5%.
Speaker #5: Of course. Got it. Yeah. Thank you.
Speaker #3: Yeah.
Speaker #2: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question.
Speaker #2: The next question is from the line of Sheikha Mehta from Time and Tide Advisors. Please go ahead.
Speaker #5: Hello. Hi, sir. May I order this?
Speaker #3: Yeah, audible. Yeah, yeah.
Speaker #5: All right, sir. Congratulations on a great set of numbers. I just had a few questions. I know we've already discussed the forging division, but just wanted to understand a bit more in detail that Q1 was at 4% mainly because of your it or was there some other issue as well or did some orders get delayed to Q2?
Speaker #3: Honestly, repeat again a little bit. A little bit louder, please. Please.
Speaker #5: Yes. So on the forging side, I know we've already discussed this in detail, but just wanted to understand if in Q1, any orders got delayed or this is purely because the industry is a bit slow and your order also has been a bit slow.
Speaker #3: Not delayed really because we had the warehouses available, material available. Of course, as you are aware, initially the manpower issue was there in this quarter.
Speaker #3: Availability of manpower. With the LPG price going up and these workers use come from outside of Haryana, etc., they went away, number one. And because of the gas prices going up, you know that.
Speaker #3: What is happening? What was happening? Everybody was afraid the COVID-like situation will come.
Speaker #4: Forging we, we had a bit of a slowdown because of two things. One is that some orders took a little bit time to come into execution mode.
Speaker #4: Number two, schedules from customer like BMW and GK came down because the European car market. But as said yesterday to my CEO, also to my board yesterday, July is better than June.
Speaker #4: August is better than July. September is better than August. So I'm thinking a positive trend will happen in this division. Some serious order book is coming our way.
Speaker #4: Almost about 500 crores for five years, 100 crores per annum. I just took over from where you left.
Speaker #3: Okay. This is a little bit you can say productivity came down. These are the every year it happens. There is a drop in production in this quarter.
Speaker #3: But now everything is sorted out and plus the order is very, very encouraging. We should have a decent number this quarter as compared to last quarter and compared to last year also.
Speaker #3: We should be anyway around 10% growth. You should see in this quarter as compared to last year. By year-end, everything should fall in line.
Speaker #3: We should be in the range of 340 to 350 crore types. So Marelli outburst in the third quarter. And new order from Dana and Carraro also maturing in that period.
Speaker #3: By third, fourth quarter will be the super quarter. And third quarter will be better quarter as compared to the second quarter should be also better.
Speaker #3: Don't worry. We are back.
Speaker #5: Got it, sir.
Speaker #3: Yeah. Next year.
Speaker #5: And so secondly, on the data center, component that we mentioned earlier, is the margin the same as the rest of the gasket division or is this a slightly better margin product for us?
Speaker #3: No, we are supplying the same gasket. The gasket has gone up. First application was in normal generator home generator shop generator, etc. Now with the new opportunity of data center coming up, the demand of generator has gone up very, very high.
Speaker #5: Understood, sir. And the pricing on that product would be the same as the regular gasket?
Speaker #3: Yeah, yeah. We are supplying the same gasket. But the application of.
Speaker #5: The application hasn't.
Speaker #3: Yeah.
Speaker #5: Understood. And so on our ice versus our EV division, are we seeing any because a few OEMs have kind of reduced their guidance on the EV front.
Speaker #5: So are we also seeing that our EV orders are kind of not growing at the pace we were expecting, but ice is seeing stronger growth?
Speaker #3: Yeah, yeah. We are seeing now we are seeing a stronger growth. The JCB sorry, GLR already started taking the materials. They're launching the vehicle in the month of September.
Speaker #3: By the way, I'm telling you because Tata Motors, we are already supplying EV vehicles and they have already gone very high. Plus Maruti also started EV production.
Speaker #3: Just for your information, in this quarter alone, in the first. EV supply to my total EV my total EV sales with all divisions around 12 and a half crores.
Speaker #3: It was around 9 crores last year, same quarter. And 10 crores in the Q4. So from Q4, it has gone up by 2 crores.
Speaker #5: Right, right, right.
Speaker #3: It has gone by 20% as compared to Q1 of FY26. We are quite hopeful that we will grow further up. It's now 3.27%. Last quarter, it was last year, it was 2.9.
Speaker #3: Last quarter, it was 2.56. But. Two years.
Speaker #4: But we are in both segments now.
Speaker #5: Correct. And do we have any guidance on this, say we want to take it to 5% or 10% in the next three years, five-year period?
Speaker #3: Around 5% minimum.
Speaker #5: 5%. Understood, sir. Understood. Currently, that's it from my side. I'll come back in with you.
Speaker #3: Okay. Thank you.
Speaker #5: All right. Thank you.
Speaker #2: Thank you. Participants who wish to ask questions, prepare a star and one at this time. The next question is from the line of Subhash Kathe from Choice International.
Speaker #2: Please go ahead.
Speaker #4: Yeah. Can you hear me, sir?
Speaker #3: Yeah, I can hear you.
Speaker #4: Yeah. So a few of the questions I wanted to ask. So first question is that just previously, I answered regarding the EV. I just wanted to understand that how is the EV mix progressing currently and how has the contribution evolved in quarter 1, 27?
Speaker #3: So we don't have an EV separate contribution, but our contribution is same as other components in EV vehicles also. Because EV has gone up because of two major reasons in this quarter.
Speaker #3: One is increase in Tata Motor EV production. You know that. We are supplying component there. Plus, we are supplying bushes to BMW of EV vehicles.
Speaker #3: Their sale has gone up a little bit there. Plus, GLR, we launched this vehicle in the month of September. EV vehicles. Yes, start picking up a little bit stuff from us.
Speaker #3: These are three major reasons for that.
Speaker #4: So you have a good visibilities regarding EV business. So do you have any kind of odd numbers which can you can say that it will be contributed for next two to three years?
Speaker #4: Like something percentage of contribution you will be gate from EV businesses.
Speaker #3: Yeah. First quarter, it is around 3.27% of this year. We expect in next two years, it should cross 5%. Our total.
Speaker #4: And about yeah, yeah. Go ahead. Hello?
Speaker #3: Yes.
Speaker #4: Yeah. So the another question is that are you seeing any inquiries from global OEMs regarding EV components for this quarter?
Speaker #3: Yeah, yeah. Yeah, yeah. Yeah. We have received the order, but from, I think, GLR, we had received the order, but for rubber component for EV vehicles, which is around 15, 20 crores per annum, the supply will start from the first quarter or the second quarter of next calendar year.
Speaker #3: That is also for EV.
Speaker #4: Okay, okay, sir. Thank you, thank you, sir. Yeah.
Speaker #2: Thank you. Before we take the next question, we would like to remind participants that you may place star and one to ask a question.
Speaker #2: The next question is from the line of Ruchita from CGW Investment. Please go ahead.
Speaker #5: No. Hello, sir. Can I follow up question was on the forging business. So I remember that a year back, we were expecting forging to do around 400 crore of revenue in FY27.
Speaker #5: So what led to the guidance going down? Was it just wanted to know the reason? Because I've been seeing in the last few quarters, we've broadly been doing 75 crores on an average.
Speaker #5: So is there a particular reason for it, or just if I can get a little clarity on that?
Speaker #3: That is how the prices of business was 30, 40 crores per annum. That business, we couldn't didn't mature because of the Trump tariff, etc., etc.
Speaker #3: Very short back down. Now, Meriton again at my plant today, right, we speak here, they are again coming come back and try to start the business.
Speaker #3: That is 30, 40 crore business I lost because of that. Plus, little bit muted demand from the Europe. These are two reasons.
Speaker #5: Okay. Okay. And now that we're talking about the 14, 15% growth, so is everything in place for it? Because we also have a 500 crore order, right?
Speaker #5: Sitting in our books for forging division. So has that started?
Speaker #3: Yeah, we have. Yeah, yeah, we have. Equipment, we also have some manpower issues. We had some leadership issues. They've all been solved. As you know, Asha's appointed CEO of Talbros Automotive in April 1st.
Speaker #3: He's spending about 50% of his time in forging as well. Things are getting better. And you see better numbers going forward. 100%.
Speaker #5: Okay. So we will go above the 75 crore of average because I think rather than one of the things that has been watching that we've not been able to cross.
Speaker #3: Yeah. This year, we should close this business at about 340 crores around 3% here and there.
Speaker #5: Okay. Okay. Okay. And the gasket business should be around 700 crores?
Speaker #3: It should be around 680 to 700. It should be around that. Should be.
Speaker #5: Okay. And the peak revenue that we mentioned earlier, so by which year is that possible for us?
Speaker #3: The next by 30.
Speaker #5: Okay. By FY30. For gasket division, we've spoken about 900 crore of revenue.
Speaker #3: Exactly. Definitely.
Speaker #5: 850. 850. And forging 600 crore revenue by FY30.
Speaker #3: Yeah. We're targeting.
Speaker #4: Maybe more. Maybe more. I'm pretty hopeful.
Speaker #3: Okay. Let's see how the things.
Speaker #5: Got it. Got it. Got it. Thank you. Thank you so much.
Speaker #2: Thank you. The next question is from the line of JJN from JJ Capital. Please go ahead.
Speaker #4: Hello. Hi, sir. Sir, I have two questions. So first, please, which segment do you expect to grow the fastest in FY27? Is it gaskets, forging, MTCS, or TMR?
Speaker #3: One of me, but can you repeat? Each segment is doing a export? Can you repeat the question, please?
Speaker #4: Yes, sir. Which segment do we expect to grow the fastest in FY27? Is it the gaskets, forgings, MTCS, or TMR?
Speaker #3: Sir, first of all, it should be TMR, okay? It will grow very to 40 percent growth will be there, around. And secondly, it's forging.
Speaker #3: It should be around 20 percent plus. Then gasket. And similarly, TMR. Both are same. 18, 20. I think gasket should be around 16, 17 percent.
Speaker #3: And Mareli should be also be 16, 17 percent.
Speaker #4: Okay. And my second question is, going ahead, what should be considered as the sustainable EBITDA margin?
Speaker #3: Around 17 percent you can assume.
Speaker #4: Okay, sir. Thank you.
Speaker #3: Thank you.
Speaker #2: Thank you. Ladies and gentlemen, in order to ask a question, you may place star and one now. Participants who wish to ask questions may press star and one at this time.
Speaker #2: As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Speaker #3: Thank you so much for joining the call today. We are proud of our resilient growth rates and numbers that we have shown. We are hopeful of the automotive industry, and we're hopeful of capturing bigger market share both in India and export market.
Speaker #3: And hopefully, we'll have better numbers in the future as well. Thank you so much. Bye. Thank you.
Speaker #2: Thank you. On behalf of the Talbros Automotive Components Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.
