Tube Investments of India Limited (TIINDIA) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Tube Investments Q3 FY26 earnings call hosted by IIFL Capital Services Limited. All participants are currently in listen-only mode. There will be an opportunity to ask questions following the conclusion of the management's opening remarks. Please note that this call is being recorded. I now hand the conference over to Mr. Joseph George from IIFL Capital. Thank you and over to you, sir.

Thank you, Inba. On behalf of IFL Capital, I welcome you all to the 3QFI26 Results Conference Call of Tube Investments of India Limited. From the management, we have with us Mr. M.A.M. Arunachalam, Executive Chairman, Mr. Velayn Subhaya, Vice Chairman, Mr. Mukesh Ahuja, Managing Director, Mr. A.N. Mayapin, Chief Financial Officer, Mr. Shivdeep Singh Jammu, Division Head TPI. Mr. M. Shivakumar, Division Head MFPD. Mr. U. Rajagopal, Division Head TI Cycles. We also have with us Mr. Jalaj Gupta, Managing Director, TI Clean Mobility. Mr. S. Gopalakrishnan, CFO, TI Clean Mobility, and Mr. N. Govindrajan, CEO, 3Xper Innoventure. I will now hand over the call to the management for opening remarks, post which we will have Q&A.

Yeah, thank you, Joseph. The board of TI met today, and we approved the financial results for the quarter ended December 31st, 2025. The board also declared an interim dividend of rupees 2 per share for the financial year 2025-26. Standalone results, revenue for Q3 was at 2,152 crores compared to 1,910 for the same period previous year. The PBT before exceptional items for the quarter was at 268 crores, compared with 212 crores for the same period previous year, a growth of 26%. An ROIC annualized was at 49%, which is compared with 43% for the same period the previous year. Free cash flow for the business for the quarter was at 248 crores. In terms of the individual businesses, for the engineering business, the revenue for the quarter was at 1,438 crores compared to 1,212 crores in the corresponding quarter. PBIT for the quarter was at 196, as against 156 crores in the corresponding quarter of the previous year. Metal form revenue was at 408 compared with 400, and PBIT was at 46 compared to 40 in the corresponding quarter. For our mobility business, revenue was at 183 compared with 142, and the PBIT for the quarter was at 4 crores as against a loss of 0.8 crores in the corresponding quarter of the previous year. And for other businesses, our revenue was at 214 compared to 252, and PBIT was at 19, as against 11 crores in the corresponding photo of the previous year. From a consolidated perspective, our consolidated revenue for the quarter was at 5,801 crores as against 4,812. The profit before share of profit of associate joint venture exception items and tax was at 502 as against 427 in the corresponding quarter. CG Power registered a consolidated revenue of 3,175 crores for the quarter, as against 2,516. And again, the profit for the quarter was at 420, as against 335. Shanti Gears. And I registered a revenue of 117 crores as against 158 crores. And profit was at 23 crores as against 35 crores in the corresponding book. So I'll stop with that. Be happy to turn it over to all of you for Q&A.

Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may click on the Raise Hand icon from the Participant tab on your screen. We will wait for a moment while the question queue assembles. We take the first question from Sujit Jain of Bajaj Life. Please go ahead.

Yeah. Hi. So this is a question to Valayan. From the time you took over from the professional manager and then handed over the button to another professional manager after taking the company to new heights and including introducing... TI-2 and TI-3 strategies, we've had some phenomenal successes and as well as some things which would have tried and tested us and without much success so far. Wouldn't it not be an opportunity for you now to consider some consolidation, meaning as much as attack is a weapon, retreat also could be a powerful tool. To basically consolidate your time and your attention and your management focus on few things, and probably eliminate things which may not be working. So that what then remains, you can double down on and continue with your TI2 and TI3.

Thanks. Yeah. Okay, Sujit, no, thanks. I think the question's a good one. You know, so actually, if you look at... What we have broadly, right, in terms of what's remaining, So, I think the question is more on kind of the adjacencies or kind of the new businesses that we've gotten into, right? So, if I were to just kind of break that down, you've got TI Clean Mobility, you've got the medical business, you've got 3Xper, and, you know, obviously, CG is on the other side. But I would say broadly, these are the businesses. Shanti and CG, I think are okay, right? I don't think kind of those are kind of fit into your question. I'm assuming, Sujit, that you're asking mainly around these businesses. Is that fair, Sujit? That's right. So it's about TI2. Yeah, yeah, yeah. So that's what, right? So we're basically talking about TI3 is a phenomenal success without doubt. Yeah, yeah. So we're talking about TI clean mobility, TI medical, and three expert. These are the three areas, right? So, let me kind of just address them one by one, right? So, I mean, so, Sujay, to your question, you know, broadly, I'll talk to each of the three businesses one by one, right? So, obviously, the largest one is TI Clean Mobility. And there, what I would say is that, you know, I would say that we went through things that are definite learning curve, right? I mean, I made some mistakes, kind of, you know, I've not perhaps performed as well as we could have in certain segments. And perhaps I also underthought a bit as to kind of what it would take to kind of build out, you know, build out the business, right? But broadly, what I would say is that, you know, we're at the stage when capacity has been built out. And we're beginning to see, you know, green shoots in, you know, definitely in kind of in a lot of the new products that we're basically starting off on now. So I would actually say that now is the time to double down on that business. It's not, not the time to kind of back off. And because the fundamental thesis, Sujit, to me is still intact, right? Which is like all of the, you know, all of the IC components and IC products in these businesses are going to get replaced over time, right? So I would definitely say that from that perspective, I see it as a business to double down on right now. And obviously, we still have a very high level of conviction that we will kind of get there, though it is getting a bit more delayed than we thought it would. And when I say get there, I mean, obviously, the first step is just EBITDA and cash flow breakeven. And then the next stage will be, you know, obviously getting to a level of profitability in that business. And then the second is on 3Xper, which is, you know, in the CDMO space. See, the big challenge in 3Xper was actually the building out of the plant, right? Because there are two parts of that business. One is the development side, one's the manufacturing side. The manufacturing side is actually the side that brings in the revenue and scale. And unfortunately, we got caught in getting permissions to build out the facility. And now we've got, you know, pretty much everything, including kind of, you know, all the consents and approval needed. So, you know, in the next three months, basically, we will start being able to produce. And then still we have like the certification cycle, which is fairly long, that business. So the seeding of that business kind of takes a fair amount of time. And I think it got delayed by almost, I would say, more than 18 months because of omissions for that facility in Andhra Pradesh. So that's the challenge of that business. And so we have to at least give it that time to perform, right? And then the third, obviously, is DI Medical. And there, I would say that, you know, it's a business that has opportunity. But obviously, kind of, I think the learning curve for us on that business has been that the number of targets to acquire in India have been limited. Right? So again, we kind of get posed with a question of how do we scale it up? Because the number of targets are limited. So I would say that Are we, so your question is valid. I understand where you're coming from. Is it time to consolidate or not? But I still feel like these three are all still valid TI2 plays. They're just taking longer. Honestly, TI2 is taking longer than I thought it would take, right? Right. And, but that doesn't mean, see, a lot of the things getting into new sectors like this, right, there haven't been that many people who have entered in the auto sector and kind of have scaled, you know, starting to know. So some of these things just take time. Right. And I think that, Sujit, you know, as long as my conviction level stays high, you know, we will continue to kind of invest, especially in these three businesses and looking to scale them up.

Sure. And then coming back to, you know, our attention, again, back to our main business, the core business engineering and metal forming, which because the overall auto industry post-GST cut has got a fillip. Can we speak about some of the levers that we were deploying in terms of, like we've mentioned, you know, export taking up to a higher percentage, same client, higher revenues, seeding more clients, etc. So till the time. TI2 plays out. Actually, TI1 again propels the engine.

Correct. Yeah. So as you can see, we've had good performance in the engineering business. Now, the one thing, Sujit, that's been interesting is that where we thought exports would kind of drive it, actually, we've seen the opposite because, you know, Europe demand has been weak and U.S., you know, between kind of tariffs and everything else, like on the engineering side, we're still shut out because of Section 232. So we basically still have a 50% effective duty going into the US, right? So till some of those things structurally change, export growth has not been to the level we want it. But we're definitely seeing, you know, domestic growth be offering us kind of enough growth opportunities in these businesses. Right. So that's export as a lever is not kind of played out. But domestic growth levers and we're continuing with plant expansions there will continue to kind of allow us to grow more. So on the engineering side, you can see fairly strong results for the tubes business. And I do think that we will see that performance continue for the foreseeable future. So that provides us with good impetus. So I would definitely say that we're seeing significant growth opportunities. So we've seen kind of, if you take that organic growth business, organic business in TI1, where we thought it would be like more like 6% to 9%, we've seen double digit growth in those businesses, right? So that's what's giving, I mean, so Sujit, obviously that is helping from a performance perspective as well.

And one last question. In metal forming, one of your clients got listed, the Korean company, so if they kind of do well, will we have more opportunities with them to actually grow with them and do better there?

Yeah, Sujit, you are... The question is very right. If one of the Korean customers does, obviously, we'll do.

No, he's saying it. Yeah. Okay.

Yeah. So, surely we'll do well. And at the same time, we are spending time on building capabilities for some other customers as well as some new product lines in the MFPD. Obviously, it will take about a year's time. So, that may be even if one customer is not doing well, how we can do well as a company. So those efforts are on, and I am hopeful by next year, it should give some result.

Sure. Thank you. All the best to you. Can I have one more question or should I get right in the queue?

So you may proceed. You may proceed, sir. It's fine.

Yeah. So, and this question is, since we are a parent to CGPAR, which is exceedingly doing well, but just, you know, push the envelope further there. You've hired a CEO. In his previous avatar, in the company that he worked with, services was a significant portion of that entity, close to 30% when we last met him. And he's cognizant of the fact services of CGPAR should be like a 1-2% business. Could we kind of double down there as well as a lever?

Yeah, so Sujit, definitely services is a big lever there. So, and we're actually, we're now in the process of recruiting one or two key people to basically drive the growth of that business. My sense is that that should be... Yeah. So, yes. So, we are looking at kind of growing that business. First, the team will come on board and then we'll start driving that growth, which will start happening. So, at least the team should be on board in the first quarter of 2027, FY 2018. Thank you. Yeah. Thanks, Kharil.

Thank you. A quick reminder to our participants, if you wish to ask a question, you may click on the raise hand icon. We'll take the next question from Joseph George of IIFL. Please go ahead.

Thank you. So I have two, three questions. One is on the railway business. You know, the last call you had mentioned that the business commencement has been pushed out from 4QF526 to maybe early, you know, FI27. Just want to check whether that is on track in terms of time.

So, Joseph, thanks for the question. Your observation is right. That project is a little bit running delayed, and prototype samples are getting submitted between March and April, maybe quarter one, and in March it will get submitted. And based on the prototype samples, and that company is also developing the product first time, so we are hopeful F527 should be better.

Sure, thanks. The next question that I had was, you know, typically every quarter you give out the volume growth in the engineering segment. So if you can just help us with that number, it'll be great.

So on YTD basis, it's double digit. That's what we share and which is going to be reflecting in the results also, what we segmental results we give it.

Sure. The last question that I had was, in the 2Q call, you know, you talked about a potential acquisition, the indicative number given was about 200 to 300 cross. I just wanted to check if there's an update on that and what space are you looking at, etc.

So, Joseph, like what we shared last time, so this is a continuous work we do it, so there is no definitive timeline what we can give it to acquisition as a possibility. So, we are looking into the market, and whenever we find there is some suitable possibility, we'll surely share with our audience.

Great, thanks. That's all I have.

Thank you. Any participant who wishes to ask a question may click on the raise hand icon. We have the next question from Anupam Gupta. Please go ahead.

Yeah, hi. Hello. Am I audible?

Yes, sir.

So, Valian, on your first reply where you talked about TI2 and maybe doubling down on the EV business, given that the losses are continuing, and earlier we had said that we will stay at that 750 crore investment which you had done initially, So incrementally, let's say over the next couple of years, let's say if the break even is pushed out, let's say one, one and a half years down the line, what sort of incremental investments are you okay doing from the period balance sheet incrementally in the EV business?

Yeah, Sanupam, I would say that, you know, it will definitely be at least 500 crores, and it could be, you know, so my sense is the range is 500 to 750 crores. Okay. From the parent balance sheet. And Anupam, you're right, which is I did read it wrong. I mean, I definitely read it wrong, right? So that's why I said it. I mean, it's taking longer than we expected, but you're right. But 500 to 750 crores is the range.

Yeah, I understand. And just to maybe get slightly more color on this, so let's say in the last couple of years when we... When we came to the market and all the products which we launched, we were almost, let's say, the early end trends in three-wheelers as well as in trucks. Now, when we are trying to rectify whatever mistakes we did, now we see that the incumbents are much more aggressive in terms of launches, in terms of the features we've been offering. So, what incrementally different do you plan to do to maybe get back on track in the EV business?

So obviously, the strategy is going to be different for different products, right? So where we made mistakes and where the incumbents have now taken the lead has been in the three-wheeler side, right? So that's, in that business, basically, the objective is to kind of bring down, you know, our cost structure so that we build, like the product, you know, if we kind of, again, we'll get into a lot of specifics, but basically, you have like three sets of segments in there, right, in the L5M category, and one's 9 kilowatt, one's 10.6, and one's 12, or 12 plus. And right now, predominantly Mahindra and us are in the 10.6 category. And so obviously, what we need to do is make our product more competitive in that category, and then look at products in the other categories, right? So kind of without kind of going through like, you know, huge amounts on CapEx, which is the way we're looking at it. So those are the two focus areas there. The good thing is that all the product issues are behind us, right? So it's basically now it's just focused on, you know, again, kind of developing stronger relationships with the channel and beginning to push out on sales. Now, if you take the small commercial vehicle, there's been very good reception to the product. And we're still early in the sense that there are right now three players in that segment, which is basically Ashok Leland, Volvo, Ashok Leland, and then, And then, so I think, sorry, Anupam, will you say something?

No, no, please go ahead.

Yeah. Yeah. So I think that, so there, there's still an opportunity to, because it's early days and then the early adoption is getting started, but the product is a solid product. It's very good and beginning to scale well. And then on MNHCV, there I would say that, you know, still, you know, we've got kind of over, we're over 40% of the products sold in the market today. And there what's happening is we're beginning to develop use cases. That's how it's happened, right? We actually kind of like really work to develop the use cases for the cement segment. Now cement is picking up. So we have to do this one. I mean, so basically to create an option here, we have to kind of go one segment. But how many of the segments are adopted at a time is going to determine kind of how quickly the product scales, right? So I think in each one, the strategy is slightly different.

Sure, I understand. And just one last question. So given that you have to have so much focus on reviving the three new segments, will it be right to assume that you will not incrementally be wanting to take anything new under TI or you are still open to adding new stuff on TI2 or TI3?

Yeah, so I think that I would say that right now, definitely, you know, Sujit's point is also valid, which is, it's unlikely we'll do anything significant in TI2 anymore. Right? So I think TI3 is just, TI3, if something were there, it would still be open to, but I would say definitely there's no thinking of doing so much significant in TI2 anymore.

That's all for myself. Thank you.

Thank you. That question was from Mr. Anupam Gupta from HGFC Mutuals Fund. We now move to our next question. That's from Salil Desai of Marsalis Investment Managers. Please go ahead.

Thank you. First question, if we could share the volumes in each of these electric vehicle categories for the quarter.

The, yeah, I'm going to have registrations, just, is that, yeah, primary billing, yeah, primary billing. Wow. Okay, have we shared volumes before?

Yeah, for primary volumes we have. Okay, so the volume for quarter three for the big trucks, MNHCV, 56 numbers. For three-wheeler business, 1,816 numbers. For small commercial vehicles, 301 number. And for e-tractor, 29 number.

Thank you. Yeah, I mean, I see you're saying that the small commercial vehicles reception has been very solid. Great. My second question is, you know, on the engineering segment right now, there is a clear improvement there. But in MFP, I mean, I'm assuming that there's a fair bit of overlap in end user industries, maybe even some customers. So why is there a divergence in the growth rates between the two?

So, Salil, your observation is right. Actually, in MFPD, we are having today two challenges what we are facing is. One is railway business. Second, particularly whatever exports we do in MFPD for the European market. So, European markets are going a bit weaker. That's why it is related to diabetes. But from domestic market size, other than railway, it's going good.

All right, great. And our new plants, any progress on them? Have they started commercial operations? I am assuming that you would have had something in this quarter, right? You're talking about aging division?

The West, yeah, the plant in the West. So that is also a little bit deferred. We are maybe hoping, I think, it will get delayed by six to nine months' time.

Any particular reasons why that is happening?

Maybe, let's say, because machine suppliers are facing some challenges, and that's why it is getting really good together.

I see. All right. Great. My next question I had, this was in Shanti Giyas, if one of you could help us understand, is that revenues have been declining sequentially for at least about four to six quarters now. So what is really happening there? And if you can share You know, how the business would shape up, let's say, in the next couple of years.

So, Salil, maybe on a long term basis, sure, we are always bullish about Shanti Gear business. But in the short run, order book is a challenge. And there, you know, the group philosophy is always to always keep eye on the margins and which we don't want to dilute. So, we see a little bit of a slowdown in the order book. And also, we feel it's a temporary in nature, maybe another one or two quarters, and we'll provide with time.

Just to make sure I understand, you're saying the… The market is now more competitive in and orders are fewer. So you are not kind of compromising on margins and letting revenues go. Is that how? Yes, that's right. That's right. All right. Great. Thank you. I'll come back in the queue.

Thank you. Our next question is from Ajax Frederick from Sundaram Mutual Fund. Please go ahead.

Hello.

Yes, sir. Please go ahead.

Yeah. So just one question. On engineering, we've been slow for a bit of time, and now we are turning things around. Does it have to do with, let's say, new customers, new products?

What's kind of happening there? So, like we shared in the past, it's a combination of two, three factors. One is obviously, after GST cut, the domestic market is absolutely bullish. So, we have participated in that. And also, you are aware of, we have done a lot of regional balancing as a part of our strategy exercise. So, a plant for CRS is putting in Nasik, and a plant for another tube plant, we have put in Fulton. So both, maybe let's say, the capacities are getting utilized. And we are hopeful by quarter two of next year, that will get fully booked. And we are participating in whatever EV conversions are happening with the high strength of materials. And maybe wherever our customers are, China plus one strategies are there. So combination of all is helping engineering business to grow. But at the same time, exports is right now a challenge. Hopefully, this state barrier and all these things improve so that it will further add to current pro plans.

That's great, sir. So, the margins can still get better as our capacity is improved?

Internally, we are dragging. Good.

All right, sir. Thanks. That's it for me.

Thank you. Our next question is from Jinesh Gandhi of Oak Lane Capital. Please go ahead. Mr. Gandhi, could you please unmute your microphone and ask your question?

Yeah, am I audible now? Yes, sir. Yeah, hi. Mr. Willard, my question pertains to your comment on exports which you talked about on the tariff side. So, now with the recent change on the US tariff, would we expect our duties to come down to 18% or under Section 232 it will be still at 25%?

So, there's been no indication right now that Section 232, the duty of 50% is going to come down. So, the current stand is still that that sticks. Okay. So, obviously, there's still been and there has been active lobbying by India to try to bring it down. But there does not seem to be any indication of that yet. Yeah. So, obviously, kind of this is outside of that 50 to 18 regime. 232 has been a separate track. And 232, it doesn't look like has been touched for pretty much all of the products that were in, still remain in.

Okay, so it's not even 25.

Yeah, you're right. So, Dinesh, you're right that 50% sticks for us.

Got it. And secondly, with this EUFTA talking about bringing duties down to zero from exports from India, do you see Europe as a relatively bigger opportunity, which was not fully tapped so far? And with this change in duties, as in when it happens in the next course of next 12 to 15 months, we can see substantial growth and ramp up in the European markets?

Yes, your observation is right. Europe is a big market. And like you rightly said, that it will have a lag of around 12 to 15 months. And also there is one more challenge. Maybe there are non-trade barriers also are there in terms of C-bomb and all things, which adds further challenge. I am hopeful maybe our government is negotiating that. If that happens, yes, it's a big market.

So Europe's definitely been a huge opportunity for us, but they've also had all kinds of barriers, both on the volume side and on an NTB.

Right, right. No, that's a fair point. And last question is on the three-wheeler side. So now we have had a sizable presence in some of the key markets on the e-three-wheeler side. So, some of the older markets in South India, which we entered first, how has been our ramp-up there, and what has been our market share in those markets on E3Wheeler space? And second part question to E3Wheeler is, What percentage of the addressable market we are now presenting?

Okay.

So, I'll take the second question first. So, today we cater to about, so we have about 117 dealerships in E3 Villa, and we cater to in the L5M category about 65 to 70% of the TIB is what this particular 117 dealers they cater to. Within these dealerships also, we are trying to, you know, have a focus dealer approach to ramp up our volumes, which is to say about 52 to 55 of these dealers is what we are primarily focusing more on, which can give us about, let's say, 75% of the volumes that we do. To the first part of your question, yes, in South, our relative presence is better as compared to in terms of market share vis-a-vis North, East and West. But in South, the electric industry transition from ICE has not been, you know, as much as it has been in the other parts of the country. So we still continue to. It is relatively strong in South vis-a-vis other markets. And that places us well as in when the transition happens, it will augur well for us.

Got it. Great. Thanks and all the best.

Thank you. We take the next question from Vipul Shah of the Mangal Investments. Please go ahead.

Hi, sir. Am I audible? You're audible, sir.

Please go ahead.

Yes. So, after...

Mr. Shah, I'm sorry, you're on mute.

Yeah, am I audible? Yes, yes, you are, sir. So, of all four electrical vehicle products, which one you have the highest confidence that it will turn around in next 12 to 18 months?

I'd definitely say that the two that we are pushing towards, you know, break-even in the next 12 to 18 will be in the heavy vehicles and in the three-wheeler, because those have had the longest track records. And then that will be followed by SCV and then track.

Okay. And so, you said that you will be infusing 500 to 700 crores in electrical business. So, that will be at the TI clean mobility level overall? So, our contribution will be less. It should be proportionate to our equity, right?

So, we will, we will, we will basically, I mean, that's a discussion we'll have in terms of the exact structure, but we'll be, we'll look at it in both models, right, like whether we put in an increase our stake, or whether we get, you know, kind of proportional contributions.

And what is our current capacity utilization in engineering division? So, why I'm asking is, Are we planning any capex over the next 12 months in that division since that division has started performing?

Like we shared in the earlier calls, we have covered for FI27 fully and we always access this capacity utilization and the future demand on regular basis. So, if anything is required for FI28, we'll put up the capex.

Thank you and all the best for the future.

Thank you. Welcome.

Thank you. Our next question is from Prathiraj Earl from Unify Capital. Please go ahead.

Hi, I just have a couple of questions on EVs. If you look at three-wheelers, you have already increased the distribution reach. You have corrected your products. What else do you think you can do to drive volumes? Because I'm assuming, you know, you have been doing whatever you can. Is there anything else you can do to push the volumes?

So, Prithvi, basically, yes, there is. There are two sets of things we can do. One is that we're actively focused on kind of the bomb cost reduction side to make, because basically, to make the product more competitive from a pricing perspective. That is one thing that we're definitely focused on. And then obviously, the second is when you think of the channel and the network, and basically kind of building that out as well because it's kind of comparative to what are competition. These are the two levels.

But I'm assuming this VOM cost reduction will take a lot of time, right? It's not going to be easy.

No, it doesn't have to take that long. We've been working on it for a while, right? It's not like we're starting.

Okay. And then, obviously, in the first question, you explained in detail about each of the segments. But if I have to ask, where do you... Take a call that, okay, enough of these investments, and you would like to end it. I mean, after how many years, after what kind of investments?

Yeah, so I don't want to give like a deterministic answer to that now, which is like basically the way I still have a lot of conviction that IC is basically going to move to EV, right? I've always said we don't know the rate at which acceleration is going to happen. So basically, we're still very convinced that this is a segment that we have to basically invest in because we see the opportunity in these platforms. So we'll continue to invest. So I think that's the way we're looking at it right now.

Okay. That's all from my side. Thanks.

Thank you.

Thank you very much. As there are no further questions in the queue, that brings us to the end of our Q&A session. I'm sorry, actually, we just got a participant in the queue. That's Mr. Salil Desai from Marsalis Investment Managers. You may go ahead, sir, with your question.

Thank you again. Can you share an update on the L3 foray? I think about six months back, you mentioned that it is a space that you're looking at and if any progress has been made, any CAPEX or volume targets?

So, Salil, at this point of time, we have seeded in certain volumes and only in select markets. And we are testing out the product in terms of product acceptability, price points, etc. As you would know that this market has been dominated by the typical lead asset players, and there are more than 250 players in the market, hugely fragmented market. So, we want to be very sure what we are getting into. So at this point of time, it is just at a seeding in few markets and basis the feedback that we get over next quarter or so, we will take a call on the future of the product and what our GTM strategy would be. Understood. Thank you so much.

Thank you. We have another follow-up question, sir, from Pratiraj of Unify Capital. Please go ahead.

Sir, I just have one bookkeeping question. What are the losses in EV during the quarter?

Yeah, see, during the quarter, it is 164 crores. It's already, it is there, it is still 50. 164.31 crores.

Okay, fine. Thanks.

Thank you. We have a next question from Anish Rankawat of UTI Mutual Fund. Please go ahead.

Hi, sir. One question. The cycle segment seems to be doing really well this year. While I believe last couple of quarters were cyclical in terms of seasonality, it seems to be maintaining in Q3 as well. What is driving this and how do you see it going forward?

So, like we shared the last year, we are trying to develop new products, which at least takes care to some extent the cyclicity. So, e-bike was one of them. Last year, if you see, our e-bike sales were almost nothing, and this year it has picked up pretty well, and still we have to go a long way in that particular. And second, a focus on the fitness business and the space business, what we are trying to bring it. That these three initiatives will surely help us to mitigate to some extent this cyclicity in this business.

E-Cycles, what kind of TAM are we looking at and what kind of penetration does E-Cycles have currently in India?

So we had just started and like we, let's say in EV businesses, we are discussing the adoption level is going to pick up. Like we see in the EV vehicles. Similarly, we see in the EV bicycles also, the adoption level is going to pick up. Like China has done a good job in particular that we also see at some point of time, consumers are going to definitely need a segment where they don't want to buy a bicycle and as well as they can't afford the two-wheeler. So in between segment, there is a segment going to emerge and we are trying to participate that. And how much TAM will be there?

I think the TAM is not deterministic right now. It's like a conversion of a segment. I think all of these things, it's not like there's any data or anything that says the TAM is going to be stored.

All right. Thank you for that. Thank you very much. Okay.

Thank you.

Thank you. Ladies and gentlemen, that was the last question. On behalf of IIFL Capital Services Limited, that concludes today's conference. Thank you for joining us. You may now click on the leave icon to exit the meeting. Thank you all for your participation.