Yes. I'm not going to break it up into that much detail. Let me just tell you, we will see the higher growth coming from our aerospace business and then defense business and the automotive business. When I say automotive, I mean the components business, which includes both automotive and industrial.
Outlook is strong for both. U.S. is very strong and so is India.
Yes, sure Gunjan. I think you have to look at our defense business the way you look at our overall company. We will de-risk defense from any one vertical. We will have multiple verticals. We will have verticals that will have continuous business. We'll have verticals that will have lumpy business. And we will look at global opportunities for all the products that we make. It's very clear that unmanned systems and drones are a very big opportunity. These are definitely both complementary and supplementary to manned systems. So we have to have a play there and we are there both in the water domain that is un derwater and in aerial domain. And we are building the capability not just for the product , but also for the payload. So that is one way to look at it. And these are products that can be ranging from few crore rupees to many, many million dollars. So there's a wide range of products within that also. So we believe that once you become a defense player and especially in a network -centric battle environment or defense environment, you need to have all the network products that become a force multiplier for an y of your products.
See realistically, defense has the opportunity to become as big as our business today is , overall business is today , if we look at global opportunities. You know, if we look at the budget of Europe, European defense budget is going from EUR 350 billion to 800 billion. India's defense budget is growing by 21% this year. So overall, there is a huge growth taking place in these sectors. So it depends on what we play in, what role we play and what we win. But clearly, 10%, 11% will definitely be more like closer to 18-20% if things go right, could be even more than that.
I would say Q2 and Q3 should be similar. And hopefully by Q4, we should see an uptick.
It's multiple sectors. It includes power gen, it includes construction, mining and aerospace.
Gunjan, what we know so far is that it's applicable for passenger cars. We don't know anything more than that because no details have come out. So I think we should wait and watch. And besides that, please remember that our exports are across many sectors, many geographies and many products. So, we just have to wait and watch. We don't have any clarity on this yet.
Again, Gunjan, it's very difficult to answer this question with the frame of the tariffs uncertainty in place. Typically if you had a n emission norm changing, you have a pre -buy because there is a cost increase. If there is no cost increase coming, you should have two normal years rather than one pre- buy and one low year. We don't know. Typically that's what you should expect. There are two normal years. Subodh, am I right? Subodh Tandale: Yes. But I think that everybody is right now waiting on the sideline with the whole tariff issue being such a question mark. So I think that's where we stand.
See, as we had mentioned last time, our goal was to achieve a 50% or so growth in defense this year. Some orders are lumpy, some orders take slightly longer, there are certain orders where we have been working for quite a long time, where revenue recognition happens in a certain quarter. So, it can be a little lumpy. Overall, I would st ill say that we will exceed 50% growth for the year and maintain our profitability.
Our order wins are across areas, it's across vehicles, artillery, and MRO items. That’s how it’s basically things that are used in sustenance and consumables for the sector.
Yes. And this does not include the ATAGS programs in India, which are yet to be concluded, which should happen shortly after the election process is over.
So, look, let me answer it in a little different way. I think that globally people have realized that defense spending is going to increase. We have products that a re world class and that are extremely competitive and are able to supply a broad range of requirements of global customers. One thing we're consciously not doing is supplying into any conflict region , b ut we see tremendous opportunities for our products across the world and these are products in the artillery segment. In artillery segments, we have three kinds of guns , we have Towed guns, we have mounted guns, and we have ultra-light guns and we have altogether 9 platforms already ready. So, this is a huge range of guns which can be supplied to multiple different kinds of customers, then we have multiple vehicles, protected vehicles of different categories, different functions and utilities. So, that is another category. Then we have a lot of spares and consumables. That's a third category. And then there are lots of other products which are under development in the unmanned vehicle area which are both land, sea and air and that is another area of huge opportunity that we are pursuing. So, we see global opportunity and just to reinforce what I am saying, we are creating a capability to build initially over 100 guns per year and 550 vehicles a year. But we can scale this up at least on the gun side, to probably almost 5 guns a week kind of numbers or 200 to 250 guns per year kind of a number and close to 1000 vehicles per year. So, we see a very large opportunity and we are taking some steps to let's say capture this opportunity both strategically and tactically.