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JWL 206.9600 INR -2.24%
JWL · Jupiter Wagons Limited
206.96 INR -4.75 (-2.24%) At close · Nov 13
Market Cap
88.45B INR
Shares
427.37M
Volume · Nov 13 820.98K Avg daily vol (3M) 1.88M
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Earnings call · FY2026 Q4

Jupiter Wagons Limited (JWL) Q4 2026 Earnings Call Transcript

Concluded Jun 1, 2026 Audio replay
Jun 1, 2026 46:10 70 turns
Period
FY2026 Q4
Runtime
46:10
Sources
3 artifacts
Revenue 7.80B INR -25.3% YoY
Diluted EPS 0.67 INR/shares -72.5% YoY
Net income 288.28M INR -72.1% YoY
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Transcript & audio

46:10 Audio
Operator

Ladies and gentlemen, good day and welcome to the Q4FI26 Earnings Conference Call of Jupiter Wagons Limited, hosted by Systematics Group. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal for an operator by pressing star and then zero on your touch-tone telephones. Please note that this conference is being recorded. I now hand the conference over to Mr. Sudeep Anand from Systematics Group. Thank you and over to you, sir.

Sudeep Anand Head of Investor Relations

Thank you, Farah, and good evening, everyone. Thanks for joining us today for Q4 and Fi26 Ernie's Hall of Jupiter Wireless Limited. On behalf of Systematics, I would like to thank the management for giving us the opportunity to host this call. Today, we have with us Mr. Vivek Lohia, Managing Director, and Mr. Vinod Kumar Agrawal, CFO, and Mr. Kunit Sabu, Vice President. Now, I'll hand over the call to the management for their opening remarks, followed by the Q&A session. Thank you, and over to you, Eric, sir.

Vivek Lohia Other

Thank you, Sudheep. Good evening, everyone, and welcome to Jupiter Wagon's earning call for the fourth quarter and full year ended 31st March, 2026. We hope you've had the opportunity to review our financial results and investor presentation shared earlier. FY26 was a year that tested the resilience of the entire rail and mobility ecosystem. The industry faced significant challenges, beginning with a prolonged shortage of wheel sets that constrained wagon production across the sector during the first half of the year. As these supply constraints gradually eased, fresh challenges emerged in the fourth quarter through global supply chain pressures, especially LPG availability disruptions arising from geopolitical developments. Despite these headwinds, Jupiter Wagon demonstrated resilience, agility, and disciplined execution. While our financial performance was impacted by external factors, the year was marked by several strategic milestones that strengthened our long-term growth platform and positioned us to capitalize on opportunities across rail mobility, logistics, and peer energy. For FY26, we reported a consolidated total income of 2,961 crores and a profit after tax of 166 crores. EBITDA stood at 363 crores, translating into a margin of 12.4%. During the fourth quarter, total income was Rs. 790 crores. EBITDA was 83 crores and PAG stood at 27 crores. While these numbers reflect the operational challenges experienced during the year, they do not fully capture the significant progress achieved in strengthening our business portfolio and future growth capabilities. We enter FY27 with an order book of Rs. 4,675 crore, providing healthy revenue visibility and reaffirming customer confidence in our capabilities and execution. Our financial position remains robust, supported by the reaffirmation of our credit rating by Thank you. A major highlight of FY26 was the performance of our V-set business through Jupiter Tatra Vaigon ka Rail Wheel Factory. The business crossed Rs. 500 crores. In revenue during the year, while maintaining a healthy EBITDA margin of around 17%, we secured a strong order pipeline across freight wagons, LHV coaches, metro applications, and Vande Bharat trains. Key wins included the Ministry of Railway order for 9,000 LAG access, a letter of intent for 5,376 Vande Bharat win sets. and multiple wheelset, machining, and assembly contracts. These achievements reinforce our growing presence in one of the most strategically important segments of the real value chain. Moreover, we have signed a long-term supply arrangement with Tatra Vagonka, one of Europe's leading wagon manufacturers, under which we will supply wheelsets for their requirements. From our upcoming ORISA facility, this partnership represents a significant step in building our export business and validates our manufacturing capabilities. We are actively engaging with additional global partners to expand our international footprint and create long-term value for our shareholders. The ORISA Green Key Wheel Set project continues to progress as planned. Orissa has... Orders have been placed for all critical equipment, deliveries have commenced, and civil construction is at an advanced stage. Fashion production is expected by end of the current financial year, with full commissioning targeted by end of FY28. The facility will significantly enhance our manufacturing scale while supporting both domestic and export demand. A clean energy business under Jupiter Electric Mobility also recorded meaningful progress during the year. India's energy transition is creating a substantial opportunity in battery energy storage, and we have invested strategically to build capabilities in this segment. During FY26, we successfully developed and deployed modular battery energy storage systems in both 10-feet and 20-feet container formats for applications including renewal energy integration, diesel generator replacement, and mobile energy storage. To strengthen vertical integration and manufacturing efficiency, we commissioned a cell-to-battery manufacturing line in Indoor, enhancing our ability to scale as demand grows. We are also pleased to sign MOAs adding to 110 MW of Best Business. In Bell's business to our FY27 order book, these partnerships validate the strength of our technology and reinforce customer confidence in our capabilities. Looking ahead, we aspire to build a 1,000 crore revenue business in batteries and energy storage over the next three to four years, supported by a growing order pipeline and favorable industry dynamics. Our container manufacturing business delivered healthy growth during FY26. The Government of India recently announced production-linked incentives scheme for container manufacturing, supported by a Rs. 10,000 crore budgetary allocation, which provides a strong policy tailwind for the sector. Given our established capabilities and market position, we believe Jupiter is well positioned to benefit from this opportunity. Another important milestone was achieved through our subsidiary, Stone India Limited, which received RDSO approval for its straight brake system. Commercial production is expected to commence in July 2026. With this achievement, Jupiter Wagon has attained full backward integration across its co-rail road product portfolio. This strategic milestone strengthens the control over Quality, cost, and delivery schedules. Reduces dependence on external supplies. And enhances our capability to navigate supply chain disruptions while supporting long-term margin improvement. Looking ahead, we remain optimistic about the opportunities before us. The Government of India's continuous focus on rail-led freight transportation and infrastructure expansion is expected to drive sustained demand across the rail ecosystem. With the integrated product portfolio, manufacturing capabilities, technology partnerships, and execution track record, Jupiter Wagon is well positioned to capitalize on these opportunities. Passenger mobility is a strategic portfolio and priority for Jupiter wagons, and we are preparing to enter passenger mobility segment in FY27, backed by our deep manufacturing capabilities and technology partnerships, thus creating an important new avenue for growth and diversification. Today, Jupiter Wagons is evolving into a diversified mobility and infrastructure solutions company with a growing presence across rail, mobility, logistics, and clean energy. Supported by a strong order book, expanding capabilities, and a clear growth roadmap, we enter FY27 with confidence and remain committed to creating sustainable long-term value for all our stakeholders. Thank you for your continued trust and support. I now request the moderator to open the floor for questions.

Operator

Thank you very much, Sobh. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask a question may enter star followed by one on the touchstone telephones. If you wish to remove yourself from the question queue, you may enter star and two. Participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. To ask a question, please enter star and one. The first question is from the line of Balasubramanyam from Arihant Capital. Please go ahead.

Bala Subramanian Analyst — Arihant Capital

Good evening, sir. Thank you so much for the opportunities. Sir, in the Odisha wheelset planned earlier, it was planned by Q2, I think, so Q2 FI 27. But right now, it's been extending to Q4 FI 27. So, if that production starts by Q4, for example, March 2027, what would we do with the ramp-up curve for wheel sets in that financial year, for example, FI28? And secondly, if you could talk about wagon tenders, I think recently we got information about 1 lakh wagons over the next 3 to 4 years time frame, which is approximately 30,000 to 40,000 wagons per annum. And when it's likely to be rolled off by Indian railways.

Vivek Lohia Other

So, regarding the ULISA project, we... Final commencement of the project is as per the timelines only, which we had earlier mentioned. So we were always very clear that it will commence in FY28. There was a partial commencement, which we had projected it to be about two quarters earlier, but due to the global supply disruptions. So, the shipments got, there were delays in the shipments arriving, and because of that, there were certain delays. But now, however, we receive most of our shipments, so we do not foresee any further delays. With regard to the wagon orders, you know, to exactly quantify the amount of order as well as... Exact timelines, again, is very difficult. But however, we expect the orders very shortly. And within the next two quarters, we expect the order books to come out. And given Jupiter's strength and market share, definitely we expect a sizable order book. And our expectation is that the orders which would come out would be at least for... Requirements for the real-world requirements for the next three years. So, given that, definitely we expect it to be sizable, and we expect a strong market share. Yes, sir.

Bala Subramanian Analyst — Arihant Capital

My second question is, we are entering into passenger rolling stock in this year. What is the specific scope in this space, whether manufacturing complete LHP or Vande Bharat coaches are only four-piece or shells? We have a strategic partnership. And how do we understand in this business for the long time?

Vivek Lohia Other

So, we are in the process of entering into a strategic partnership. However, at the current moment, it is very difficult for us to divulge specific details on that. Thank you. Whether it will be part of Jupiter Wagon or a separate GD, again, you know, I can't Focus. Thank you. It comes out with These are the specific segments which we are targeting. Our specific details, we will, I'm not able to share right now. Okay, fine, sir.

Bala Subramanian Analyst — Arihant Capital

Sir, on the bookkeeping side, I think inventory is increased to 7,69 crore to 1,017 crore, almost a 40% jump. So, what was the reason and like when you can expect normalized inventory days?

Vivek Lohia Other

So, there will be a rationalization in the inventory days. It was a short-term... A challenge, as I have told you, because of certain disruptions, which we did not anticipate, so the production, as we had anticipated, the production timelines did not follow. So there was a mismatch in inventory, but it will be, I think, the first quarter there will be certain some disruptions, but now things have stabilized. I think in FY27, from second quarter onwards, you will find much more stability.

Bala Subramanian Analyst — Arihant Capital

Got it, sir. Thank you.

Operator

Thank you. Participants, if you have any questions at this time, please enter star and one on your handset. The next question is from the line of Sandeep Mukherjee from SKP Securities. Please go ahead.

Vikram Suryavanshi Analyst — Phillip Capital

Yes, sir. Thanks for the opportunity. Sir, what is the pending number of wagons and what is the number of private wagons executed for the quarter and FY26?

Vivek Lohia Other

The pending number of wagons is right now around 2,000 wagons as Indian Nailways and about 5,400 wagons roughly is the non-Indian Nailway order book, which is totaling close to about 3,100 crores. And what is being the execution?

Kundinia Analyst — Jefferies

The target wagon executed for the quarter, sir?

Vivek Lohia Other

For the last quarter? We don't have that. 1347 is the total executed in the last quarter.

Vikram Suryavanshi Analyst — Phillip Capital

Thank you.

Operator

To ask questions, please enter star followed by one. The next question is from the line of Vikram Suryavanshi from Philip Capital. Please go ahead.

Vikram Suryavanshi Analyst — Phillip Capital

Good afternoon, sir. You talked about the container manufacturing subsidy from the government under 10,000 crore. Can you share what is the percentage of subsidy we can, is it like a value of the container or some scope of this subsidy, and what is our annual capacity in container manufacturing or any plans to increase for that?

Vivek Lohia Other

Okay. So, the government has announced the policy, but they have not come out with the specifics. So, unless the specifics comes out, it is very difficult to say exactly, you know, how the subsidies are going to be in what nature. But what we can understand that it's quite substantial and it could be in the range of 8 to 10 percent is what... We are believed to understand. But however, unless specifics come out, it is very difficult for us to mention. Yes, and definitely as and when the PLI policy comes out, we will be expanding our capacities because as of now, we are only focusing on specialized containers and which will be definitely be expanded to marine containers also because, you know, that will bridge the gap between Indian, And Chinese Container Prices, because the PLI will help us bridging the gap. So definitely, we are already in talks with certain shipping lines. So, as and when the policy comes out, and if it is as per the industry, you know, demands and the benchmarking which we have, definitely you will look at, we are looking at a major expansion in the business.

Vikram Suryavanshi Analyst — Phillip Capital

And what is our current, so you said that focuses on specialized one and once the clarity on policy comes, we can scale up the capacity. Is that right?

Vivek Lohia Other

Yes, it is very clear. We are already expanding our capacity, but we have already planned for a major scale-up, but obviously that is subject to the policy being in line as per expectations, and as I have already mentioned that we are already in talks with a few shipping lines, and these are advanced talks. As and when the policy comes out and it is in line with our expectations, definitely it is something which we are looking forward to. However, the business continues to grow. In FY27, our expectation is that we will be doubling our container revenues from last year.

Vikram Suryavanshi Analyst — Phillip Capital

Okay, and just to clarify, when you say it's aligned with our expectations, around 8-10% is something the difference between China and India in terms of cost and which should be able to compensate with the 8-10% range?

Vivek Lohia Other

Yes, definitely. If it's around in that ballpark, definitely it is something which will go a long way in compensating the gap.

Vikram Suryavanshi Analyst — Phillip Capital

Got it. But I guess even Concord is also planning to buy from domestic players for a couple of years, and they are highlighting that there is a shortage of capacity. So are we also open to bid for Concord's orders, or if there is any concern in that?

Vivek Lohia Other

No, no, there is no concern. If Concord comes out with substantial tenders, definitely we are going to bid for that. So, definitely, there is no concern on that, and we do participate as in when. So, right now, capacities are quite full. So, it is not that we are struggling in terms of, we are doubling our businesses. So, we are very, very bullish on the sector, and we have a very, very long-term view.

Vikram Suryavanshi Analyst — Phillip Capital

Got it. And last, just a clarification. You talked about marine containers, so I think, I guess, we require cotton steel. So, how is the availability of that particular steel grade in India?

Vivek Lohia Other

So, cotton steel is definitely not a challenge. There are now enough steel producers producing cotton steel. The challenge is in respect to the pricing. Compared to China, the pricing in India is not sustainable for large-scale production to match the international prices. So, definitely, that is where we are looking at the PLI scheme to bridge the gap.

Vikram Suryavanshi Analyst — Phillip Capital

Understood. And thank you very much.

Operator

Thank you. Participants with questions may enter star and one. The next question is from the line of Virat Jain, an individual investor. Please go ahead.

Virat Jain Analyst — Individual Investor

Hello, sir. Thank you. Thank you for the opportunity. My question, sir, is regarding this delay in the wagon tender. So, I mean, I think most of the major manufacturers now have, you know, less than one year of... Order left in less than one year or so, for example, supply left to supply to Indian Railway, but even now we don't see, you know, fast movements on the tender. So is there, you know, some other discussion or policy discussion or some other thinking going on which is delaying this tender or this is still, you know, just business as usual?

Vivek Lohia Other

No, so we are confident that the tender should come out any time this year. Railway is, you know, as a sector, the government of India as well as Indian Railway is very, very bullish. You have seen, you know, regularly Railway making sizable announcements in terms of capacity expansions, and they are, especially when it comes to the track infrastructure and infrastructure related to freight movement. So, and there is a clear policy guidelines from the government where they want to shift the freight transport from road to rail, and I think especially with the current geopolitical crisis, it has also become paramount for national interest that, you know, rail plays a much important role in the freight movement. So, in terms of the long-term demand or long-term visibility, there is no challenge. I think it is just a small-term hiccup which is there. But again, I think we expect the course correction to happen this year.

Virat Jain Analyst — Individual Investor

Okay. Okay. So, follow-up, sir, recently, this, you know, I don't know, the Wagon Leasing policy document, I think, was updated maybe a year ago. One of your competitor, I think, has gotten a leasing license. So is that just an experiment at Indian Railways level, or is there something more we should read into it?

Vivek Lohia Other

So see, this is something you need to ask our competitors. So we have a very strong long-term partnership with GATX. And so for us, you know, us, Jupiter, directly getting into leasing is not something which we are considering. And we don't see in the near future or in the next five years at least that railway, Indian railway, would procure wagons through the leasing route. So, leasing will be, I think, more on the private side of wagon procurement, where we already have a strong partnership. And GATX is the leading leasing company, not only in India, but globally. And they have very strong legacy as well as experience. So, where we already have a strong partnership, we don't want to... You know, bring that leasing part on our balance sheet, because for us to replicate that kind of business legacy again, and the knowledge would take time, and it would not make any sense. So, I think our aim is to focus on our core competence, which is wagon manufacturing, and the leasing part for timing should be taken care of by the experts.

Virat Jain Analyst — Individual Investor

Okay, okay, that's very helpful. So, the final question is, any pre-discussion whether it will be, you know, one-time big tender or will be split into several smaller tenders, any idea around that, if you can give?

Vivek Lohia Other

Honestly, this is something you should take it up with Indian Railways because, you know, as... As a participant in the 10 ring, I don't think we are in a position to, we are not previewed to that.

Virat Jain Analyst — Individual Investor

Okay, okay. Thank you. Thank you for asking my question.

Operator

Thank you. Participants, if you have any questions, please enter star followed by one. The next question is from the line of Kundinia from Jefferies. Please go ahead.

Kundinia Analyst — Jefferies

Yeah, hi, sir. Thanks for the opportunity. A couple of questions from my end. First one, on the passenger side of things, you did speak about entering into metro, etc. So, can you help us understand how do you intend to qualify for this project? Because what we understand is the technical criteria here as engine, is it and what about the propulsion technology, etc. How do you intend to qualify on those parameters? That's the first question.

Vivek Lohia Other

So, as you rightly said, you know, you need prior experience in supplying passenger rolling stock to qualify, and though we are very strong on infrastructure, we don't have that prior experience, and that is the precise reason where we are finalizing a strategic tie-up with Global rolling stock manufacturer who has the necessary experience. So as I mentioned that, you know, we are going to be forming up the tie-up very shortly, and our intent is that in this financial year to enter that segment.

Kundinia Analyst — Jefferies

Understood. So, my second question for MSCP, I think you would have spelled it in the opening remarks. Is there a delay in commissioning of interim operations at the wheel manufacturing plant?

Vivek Lohia Other

As, again, as I've reiterated, we had expected it to the interim operations to start about two quarters earlier. However, because of... You know, because of the geopolitical disruption, there were certain delays in the supply of the, delay in the shipping of the equipment. So, because of the shipping disruptions, you know, the project got slightly delayed. But now, however, most of the equipments have reached, and the other equipments are in transit. So, as of now, we don't see any kind of further delays. So, the final commissioning timeline, there is no delay. It is still on schedule, only interim, because of the project we started earlier than our projected timeline, In 2009, we expected... That it to commence about two quarters earlier, but unfortunately, it could not happen.

Kundinia Analyst — Jefferies

So, what are the timelines for December 28th for the final commissioning and June 28th for interim? Is it the way it works or can it be a little earlier?

Vivek Lohia Other

No, I think December, March 27th is what we are saying for the interim, and March 28th is for the final commissioning.

Kundinia Analyst — Jefferies

Sir, if I may ask one bookkeeping question, it appears that the subsidiary level EBITDA margins are lower in this quarter, even the gross margins have come off on a quarter to quarter basis. Is it that the wheel manufacturing margins have come off?

Vivek Lohia Other

No, see, if you look at, see, our major subsidy today is the rail wheel factory. There, as we have reported, we have achieved a significant higher EBITDA margins. We have achieved 17% EBITDA margins as compared to... 12% last financial year. Even in terms of revenue, the revenues have substantially increased from 343 crores to 528 crores. I think where you see a slight thing is because of one is I was in Stone, India. We have just completed our licensing certification, and we are going to commence operations in this financial year. So last year, it was more on account of CapEx, and there was an exceptional expense which was incurred because the land in which the facility is located, it belongs to Port Trust. So, we had to... Since it was an older land license which was there with Port Trust, we had to renew the license, and that required us to pay an additional fee. So that was a one-time expense which we had to incur. So mainly a count of that, and also in case of Jupiter Electric Mobility, again, since we are expanding the business substantially, so last year there were certain additional expenses which was there. So, this year, I think both Jupiter Electric Mobility and Stone India will show much better, stronger results. And as well as the real-wheel factory, we expect, you know, further improvements in both EBITDA numbers as well as revenue numbers.

Kundinia Analyst — Jefferies

Thank you, sir. Thank you, Nolavish.

Operator

Thank you. The next question is from the line of Bala Subramaniam from Arihant Capital. Please go ahead.

Bala Subramanian Analyst — Arihant Capital

Thank you so much for the follow-up, sir. Sir, Stone India received RDSU approval for flight brake systems. Earlier it was mentioned the production will start from July 2026. We are on track. And whether we are also capable to supply for passenger OEMs, especially for brake systems, whether we have to get a separate approval for that, if you could share some light on that.

Vivek Lohia Other

So, on Stone India, we are on track to start commercial operations from July. And this year, we expect the business to turn profitable. So, we are quite confident that the business will turn profitable this year. Stone India, currently, the license which we have got is basically for the freight brake systems. Which itself is a very, very substantial market. On the passenger side of the brake system, we already have a JV with DACO through which we are supplying to Indian railways for the passenger brakes. So we don't want the cannibalization and the conflict. So Stone India will be focusing on the freight side of the brake market, and the JV with DACO will be focusing on the passenger side.

Bala Subramanian Analyst — Arihant Capital

Got it, sir. Thank you.

Operator

Thank you. To ask questions, please enter star and one. The next question is from the line of Amit Kumar from Determined Investments. Please go ahead.

Amit Kumar Analyst — Determined Investments

Thank you so much for the opportunity, sir. I hope you can hear me. I'm just circling back to the core wagon manufacturing business. If I heard it right, I think you mentioned that order work is more skewed towards the non-railway business. I think on the railway side, there has been some challenge, you know, in terms of, you know, real sets and supply chain. Are you sort of facing similar challenges on the, you know, non-railway business side as well? The wagon manufacturing on a quarter, I mean, on a year-on-year basis is down almost by about a thousand, you know, number, basically. So, could you sort of clarify, I mean, you know, which are the parts in which you are sort of facing these kind of supply chain challenges on a fairly consistent basis?

Vivek Lohia Other

So, I think the main challenges was on the account of the Indian railway supplies more than the non-Indian railway supplies. So, that was our main challenge. And the drop in the numbers are... One of the reasons, as I mentioned, the last quarter, it wasn't on account of wheelset so much, but on account of, you know, availability of other raw materials, mainly consumables, which caused the disruption. However, going forward, I think from Q2 of FY27, we expect things to turn around. And we expect the company to be back on its, you know, on the production targets, as well as, you know, once, as in when the new order book comes, you will substantially see, you'll see a substantial jump in the wagon execution. So we have had to, you know, keep the wagon execution also. Thank you.

Amit Kumar Analyst — Determined Investments

There's not an issue of production capacity any which way, right? Because your wagon manufacturing number at times, and, you know, you have the, I mean, I get the point on the Indian railway side, but if I look at the non-railway, you know, side of the business also, you have a fairly strong, you know, I think 5,000. As I

Vivek Lohia Other

mentioned that, you know, going forward, you will see a strong execution on that side of the order book, and the bigger numbers coming out of that, there was certain, we expected the numbers to jump up. In this quarter itself, but because of certain disruptions, you know, it was beyond our control. However, as I mentioned, you will see a good turnaround. And here also you have to understand that the customers have certain delivery timelines. So we cannot jump the timelines and start delivering. We have to maintain the timelines which have been given by our customers.

Amit Kumar Analyst — Determined Investments

All right. All right. Understood. Appreciate it. Thank you.

Operator

Thank you. The next question is from the line of Mohit, the individual investor. Please go ahead.

Mohit Analyst — Individual Investor

Hi, sir. So, I just wanted to understand what is your outlook for this year? I know we gave close to electric oven for all. This financial year, and before that, you were close to like 4,000 crores. I'm not expecting like a number, but are we expecting a number close to the previous financial year this time?

Vivek Lohia Other

No, so definitely we are expecting the numbers to be much better than the previous financial year. And especially, you know, the non-wagon businesses are showing significant growth rates. We expect the momentum to continue. On the wagon side, the execution will be better than last financial year, but substantial jump on the wagon side will happen as and when the real-day order book is released to us. Beyond that, you will not see a substantial jump in wagon order book execution. However, the non-wagon business is going to continue to grow significantly, and as I mentioned, you know, long term, we have given, by 2030, we expect the company to be at about 10,000 crores of revenue, with at least minimum 15% EBITDA margins, and I am, again, very bullish on the same, given the... How our wheel business is shaping up and all the other businesses are shaping up and on the wagon business itself also I am very, very bullish. And as I mentioned that this is a small blip which is there. However, the long-term projections is both from Indian railways as well as, you know, in general the policy of the government of India. It's very much focused on Indian railways and shifting of freight from road to rail. So that is a long-term policy, and there is a very strong visibility on that.

Mohit Analyst — Individual Investor

Got it, sir. So, my second question is that I know you've been very bullish on best segment and with the recent war and oil being so, like, precious and, you know, you've been bullish on renewables. How do you, have you seen, like, your customers changing inquiries regarding your products, and the second part is, like, you know, once GEM stays last year, like, has there been any follow-ups regarding launching different products after that? I got your first part of your question.

Vivek Lohia Other

The second part was not very clear.

Mohit Analyst — Individual Investor

So, you launched GemPage in March of last year. So, there was talk of you might be sort of launching the passenger variant of GemPage and probably a two-ton and a three-ton truck in the new feature. So, just wanted to understand how that is.

Vivek Lohia Other

Understood. So, first on the best, I think we are, again, very, very bullish, and we are not only, we are seeing a huge... I think changeover and the customers are getting more educated and they are seeing the real-time benefit. We are seeing also in the industrial and the consumer segment also there is a huge switch from traditional gen sets to lithium-ion battery systems. And that change is going to continue to compound, you know, going forward, both because it makes very strong economical sense. As well as, you know, because of the environmental policies. On the EPC side, definitely there is a huge push from the government of India on, you know, with regard to solar come best policy, where we are again going to see a huge push. Then again, on account of data centers itself, that will happen. So, definitely the long-term view is very, very positive and very, very bullish on the segment. Today, I think in terms of the demand which is needed and the mismatched capacities are much smaller than the demand, and there's still a lot of imports which are happening, especially from China. So I think going forward, as you saw in the solar, the cell segment, where, you know, the government policies... Basically, it showed that people switched to local production rather than imports. So, similarly, you will find shifts here also happening in future. Beyond that, also, you know, sell prices are coming down considerably, and it is becoming, you know, the move is happening from LFP to sodium, which will make it much more stable also. Thank you. So those segments, railway being one, those segments are also seeing a lot of growth there. So definitely this is a segment to look forward to. On the truck side, we never had any intentions of entering the passenger segment. What we had mentioned that we will enter the two-ton truck. So, we are already in the process of, right now, a vehicle is under design, and it will go for certification also, shortly. So, we expect to launch one or two variants this year.

Mohit Analyst — Individual Investor

Got it, sir. So, last thing is, can I ask, like, what is the run rate of sales right now? Like, how many units are you selling per month?

Vivek Lohia Other

Honestly, I don't have the exact numbers with me, but I will share it with you, but what we are seeing is that month-on-month, we are seeing the numbers improving, but, you know, I will share the numbers. I don't have it off-hand with me.

Mohit Analyst — Individual Investor

Okay. Thank you. Thank you for answering my question.

Operator

Thank you. Participants with questions, may please enter star at 1. As there are no further questions from participants, I now hand the conference over to the management for closing comments.

Vivek Lohia Other

Thank you. As we move forward, we remain encouraged by the strong momentum across our businesses and the continued strength of our execution. With wheelset supply stabilizing and government Continued focus on the sector's development, freight wagon business would sooner regain operational momentum, while the excellent visibility across other business lines positions us well for sustained and profitable growth. We are excited by the abundant opportunity set across both domestic and export markets. Our focus remains firmly on execution excellence. Discipline capital deployment and the continued strengthening of our manufacturing and integration capabilities as we work towards developing long-term sustainable value for all our stakeholders. Thank you for your continued trust and support. We look forward to updating you on our progress in the next quarter.

Operator

Thank you very much. On behalf of Systematics Group, that includes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Analyst Q&A · 9 questions
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