• Powertrain revenue contribution: Powertrain solutions account for 53–54% of total revenue and approximately 80% of EBITDA, delivering margins of 20–25% (and up to 30% on select projects). Management expects this high-margin vertical to maintain strong growth and expand its share of the portfolio over the next three years.
• Electric vehicle expansion: Electric vehicles contribute 23% of total revenue and 40–45% of powertrain revenue, driven by 100% electric bike powertrain solutions. This share is projected to rise over the next two to three years, supported by 100% of Indian R&D and 60–70% of UK R&D projects being EV-focused.
• Capex and ramp-up: A planned ₹200 crore capex over the next three years is targeted to generate ₹300–400 crore in revenue across typical two-year project development cycles. This follows ₹350–400 crore in capex deployed over the prior three years, which is already beginning to ramp up revenue.
• Customer concentration reduction: Revenue exposure to the company's largest customer has decreased to 35% as Hero Motors prioritizes higher-value powertrain solutions over traditional alloy and metallic components. Volume risks are managed through long-term contracts with global clients that permit pricing readjustments.