Thank you, Pari. Good evening to all the participants on the call and thank you for joining in.

We welcome you to the Q1 FY27 earnings call of Aequs Limited. Before we proceed, let me remind you that the discussion may contain certain forward-looking statements that may involve known or unknown uncertainties and other factors.

These statements should be viewed together with our business risks which may lead to actual results and performance differing materially from what is expressed or implied. To take us through the results and answer your questions today, we have the management of Aequs Limited represented by Mr.

Aravind Melligeri, Executive Chairman and CEO; Mr. Rajeev Kaul, Co-Founder and Managing Director; Mr.

Harish Bang, Vice President, Finance. We will start the call with a brief overview of the previous quarter and then conduct the Q&A session.

With that said, I now hand the call over to Aravind sir.

Thank you, Manav. Good evening, everyone, and thank you for joining us.

Q1 FY27 marks a strong start to the year we describe in our Investor Day, a year about translating our expanded capacity into the financial returns. This quarter demonstrated exactly the beginning of that translation.

Consolidated revenue grew 55% year-on-year to ₹3,955 million, up 8% sequentially on what was already a strongest quarter in our history. Growth was broad-based: Aerospace grew 40% year-on-year and our Consumer segment nearly tripled, reflecting the Consumer electronics ramp at Hubballi.

Consumer contributed 19% of our revenue this quarter, up from 10% a year ago. I want to address the profitability picture directly because the headline and the substance point in the different directions this quarter.

Reported EBITDA at ₹215 million is lower than the Q4, but that movement is mainly due to other income, foreign exchange, which was unusually high in the Q4. On the operational basis, excluding the other income, EBITDA improved from ₹42 million in Q4 to ₹148 million, a more than threefold sequential improvement driven by narrowing Consumer loss.

That operational trajectory, not the currency line, is the measure of execution, and it's moving exactly as we committed. Our Consumer segment EBITDA loss narrowed by ₹112 million sequentially.

The path to Consumer EBITDA breakeven by Q4 '27 now has its first quarterly proof point. Let me share the highlights from Farnborough, we just came back from there last week, from which our strongest air show yet, we signed a long-term agreements with two new aerostructure Tier 1 customers expanding our global base.

We signed our first contract to fully integrated Airbus A320 wheels with Safran Landing Systems. Aequs will deliver completely assembled wheels built from India-sourced aerospace-qualified aluminum, forging, machining, surface treatment, and assembly, all within the Belagavi Aerospace Cluster.

That is 100% Make in India for a flight-critical product. Notably, these wins come after a quarter-end order book of $1 billion.

We should see new wins reflect in the next quarter order book. Given the scale and the delivery requirements of these new wins, we are evaluating acceleration of Aerospace capex plan to ensure that required capacity is available in line with our customer timelines.

Our FY27 priorities are unchanged from what we set out in May. First, grow Aerospace revenue profitably 25% to 30% with a segment EBITDA margins above 20%.

Q1 delivered 40% growth at a 23% segment margin. Second, drive Consumer utilization to unlock the operating leverage embedded in our existing asset base.

Third, move our Consumer EBITDA breakeven by Q4 FY27, which will be a major inflection point in our consolidated profitability. At a consolidated level, we continue to expect approximately 45% to 50% top-line revenue growth for the full year with a doubling of our operational EBITDA, a target that is weighted to the second half as Consumer utilization builds through the year.

Since our listing, we have seen exceptional broadening of our shareholder base and a rapid deepening of our investor engagement with our long-term manufacturing story. In a remarkable short period, we have achieved a breadth of shareholder participation that a manufacturing company typically takes several years to build, an acknowledgment of our strength and our differentiated platform and the magnitude of the opportunity before us.

On the CFO transition, as communicated in May, Dinesh Hegde stepped down at the end of June and our search for a full-time CFO is progressing well. In the interim, Harish Bang is leading our finance function and he will take you through the financials shortly.

With that, I'll hand over to Rajeev Kaul, Co-Founder, Managing Director, to take you through the operating performance.

Thank you, Aravind, and good evening, everyone. I'll begin with our Aerospace performance.

Aerospace revenue increased by 40% year-on-year and 6% sequentially to ₹3,222 million. The growth was supported by higher customer build rates and the progression of additional parts into production.

During the quarter, we added 86 new parts, further expanding one of India's most extensive aerospace manufacturing portfolios to 5,740 parts. The defining achievement of the quarter was our aerospace order book crossing the $1 billion mark, following a 13% sequential increase from $889 million.

This milestone is a powerful validation of the trust placed in Aequs by leading global OEMs, the scale and depth of our program portfolio, and the enduring strength of our Aerospace business. Our Aerospace focus remains on scaling production in line with customer build rates, moving awarded parts into serial production, and increasing value addition across our integrated manufacturing ecosystem.

We are selectively expanding into higher-value adjacencies, including aero engine and landing gear system components. Our integrated ecosystem remains a key differentiator, bringing multiple processes together at Belagavi to reduce complexity, strengthen control over quality and delivery, support, and contextly add a breadth of parts that is difficult to replicate for others.

Beyond the continued growth of our existing Aerospace operation, the proposed Hosur ecosystem represents the next phase of our expansion. It will extend Aequs' integrated manufacturing model into new areas of opportunity and strengthen our ability to participate in larger, more complex programs over time, and we expect revenues kick off from FY29.

Moving to Consumer, revenues increased by 190% year-on-year to ₹734 million as production volume increased across the portfolio. The Consumer segment achieved 16% quarter-on-quarter revenue growth while operating at a similar capacity utilization level as Q4.

This reflects enhanced throughput, better product mix, and improved execution, enabling the business to drive higher revenue from the existing manufacturing footprint. We expect utilization to improve through the course of the year as this ramp progresses and remain confident in the trajectory towards our profitability goals.

Our priorities in Consumer remain clear. In the near term, our focus is on steadily scaling the existing product portfolio, improving utilization across our operations.

As the business matures, we intend to deepen our customer relationships by broadening the component portfolio and progressing towards integrated kit supplies. From FY30-31 onwards, our ambition is to engage earlier in customer new product development cycles and evolve from a component supplier into preferred manufacturing and co-development partner.

We have a clearly defined roadmap ahead and remain focused on executing each phase with discipline. To conclude, Q1 saw continued Aerospace growth, a larger order book, further expansion of the parts portfolio, and measurable sequential improvement in Consumer performance.

The operating priorities for the remainder of FY27 remain disciplined program execution, Consumer scale-up, utilization improvement, and careful deployment of capital against customer-backed opportunities. I will now hand over to Harish Bang, Vice President, Finance, to take you through the financial performance in greater detail.

Thank you, Rajeev, and good evening, everyone. I will take you through the key financial performance highlights for Q1 FY27.

Revenue from operations increased by 55% year-on-year and 8% sequentially to ₹3,955 million for Q1 FY27, supported by continued Aerospace growth and scale-up of Consumer. Reported EBITDA, which includes other income, stood at ₹215 million with a margin of 5% for the quarter.

EBITDA for Q1 FY26 was ₹399 million. The year-on-year comparison reflects the recognition of consumer electronics operating costs in the current quarter, whereas these costs were capitalized in Q1 FY26.

EBITDA for Q4 FY26 was ₹321 million. The sequential comparison was affected by the movement in other income, which reduced from ₹279 million in Q4 FY26 to ₹67 million in Q1 FY27.

Excluding other income, operational EBITDA increased from ₹42 million in Q4 FY26 to ₹148 million in Q1 FY27, an improvement of approximately 3.5 times with the margin increasing from 1% to 4%. Revenue including proportionate share from joint ventures increased by 53% year-on-year and 8% sequentially to ₹4,301 million.

EBITDA stood at ₹307 million with a margin of 7%. In Aerospace, revenue increased by 40% year-on-year and 6% sequentially to ₹3,222 million.

Segment EBITDA stood at ₹731 million, representing growth of 35% year-on-year, although it moderated sequentially from Q4 FY26 due to significant other income in Q4 FY26, which mainly included foreign exchange gain. The Aerospace business continues to grow strongly, supported by higher customer build rates, the progression of additional parts into production, and $1,004 million order book.

Consumer revenue increased by 190% year-on-year and 16% sequentially to ₹734 million. The segment's EBITDA stood at a loss of ₹361 million compared with a loss of ₹74 million in Q1 FY26 and narrowed from a loss of ₹473 million in Q4 FY26.

The year-on-year comparison reflects the commencement of consumer electronics commercial operations and the resulting recognition of operating costs in Q1 FY27, whereas these costs were capitalized in Q1 FY26. Sequentially, the Consumer EBITDA loss narrowed by ₹112 million or approximately 24%, supported by increasing production volumes and improving operating performance.

Continued progress in utilization and cost absorption will support the next phase of improvement as we advance towards Consumer EBITDA breakeven by Q4 FY27. Depreciation and amortization stood at ₹453 million compared with ₹246 million in Q1 FY26, reflecting the expanded consumer electronics asset base.

Sequentially, depreciation remained broadly stable compared with ₹455 million in Q4 FY26. Finance costs reduced from ₹358 million in Q4 FY26 to ₹189 million in Q1 FY27 following debt reduction undertaken during the previous quarter, including loan repayments of approximately ₹2,527 million and a net reduction of ₹789 million in short-term and working capital borrowings.

PAT stood at a loss of ₹532 million for Q1 FY27. The reported Q4 FY26 PAT loss was ₹541 million, included an exceptional gain of ₹90 million, which included a corporate provision reversal.

Excluding this gain, the adjusted Q4 PAT loss was ₹631 million. On a comparable basis, the PAT loss therefore improved sequentially from ₹631 million to ₹532 million.

Turning to the balance sheet, total equity stood at ₹14,332 million. Cash and cash equivalents were ₹2,340 million with a further ₹537 million in other bank balances for Q1 FY27.

Cash flow from operations was negative ₹414 million, primarily reflecting the additional working capital required to support the higher operating cycle. Capital expenditure during the quarter was ₹830 million and closing cash stood at ₹2,340 million.

We saw an improvement in the working capital efficiency with net working capital days reducing from 127 days at the end of FY26 to 125 days in Q1 FY27, which is calculated quarterly annualized basis. This reflects better conversion of the higher operating scale into cash, supported by improved receivables and payables management, even as inventory was maintained to support the ongoing production ramp-up.

Our financial priorities remain focused on advancing Consumer towards EBITDA breakeven, sustaining Aerospace momentum, improving utilization and cost absorption, managing working capital, and maintaining discipline in the execution of our investment program. To conclude, we have had a strong revenue growth across the board.

While reported EBITDA was affected by low other income, the underlying operating trajectory improved meaningfully. Operational EBITDA increased approximately 3.5 times sequentially and the Consumer EBITDA loss narrowed by 24%.

These developments provide a stronger foundation for continued improvement through the remainder of FY27. With that, over to the moderator to open the floor for questions.

Thank you.

Thank you. Thank you for the opportunity and congrats for the good set of numbers on the Aerospace side.

The first question pertains to if you can share the details on this contract that you have won for this A320 wheels with Safran Landing Systems. The question is that how big is this order, number one?

Number two, is it safe to assume that the profitability on this, what would it be higher than the Aerospace segment average which you have today, which is about 20%-23% kind of EBITDA margin that you do in this segment?

If you really look at it, Gaurav, first time in India we have a complete Make in India wheels all the way from aluminum source to the finished parts. That's the first achievement.

One of the longest agreement we have signed in our history of Aequs, I would say 15-year agreement we have signed with the right adjustments and everything. That basically gives us a very good foothold.

The beauty about this is leveraging every capability we have in the ecosystem. Means obviously, if you look at across the margin, it's much larger margin to us.

Each business will deliver the right level of returns, put it that way. Its ROCEs are used right level and delivering that piece.

I think I cannot comment on the specific margins, but it's a great asset and it's a globally very attractive offer for the customer. The first time ever customer has done this outside of their own facilities.

This used to happen in-house. That's another feather in the cap for Aequs to be able to take something out, capacity which instead of they investing, they're working with us to make sure that leverage our ecosystem.

That's what I would say at this point in time.

Right. I'm assuming that it's a single-source order for this.

Okay. Second question on the consumer electronics segment, and if you can just help me understand the utilization in more detail that last quarter, the utilization was about 23% as per the presentation.

This quarter, despite seeing a sequential growth in revenue, we have seen a utilization coming down to 22%. Have we increased the capacity, and as a result, we are seeing this utilization on a lower side?

Second, in terms of I'm not sure if you want to share, but what is the yield that you are really getting in this segment as we speak? Are we on track of reaching the breakeven EBITDA level by Q4?

See,

the Consumer segment achieved 16% quarter-on-quarter revenue growth. First is that, okay?

That is a much better this one to see our utilization of the performance. While operating at a similar capacity utilization as Q4, so that demonstrates how we are utilizing our capacity for a business.

This reflects basically through the enhanced throughput, better product mix, and improved execution. This is one of the major business drivers to drive higher revenue from the existing manufacturing footprint.

Okay. It has remained capacity while they should demonstrated at a similar level.

Enhanced revenues are right mix to see how we are getting there,

utilization. It's ultimately a combination of utilization and yield to get the higher revenue, right?

You can derive from that.

We expect those utilization to improve over the course of the year as the ramp progresses.

No, my question was that the utilization has dipped Q-o-Q from Q4 to Q1 and yet revenues are up. Have we taken any capacity expansion and as a result numerically we are seeing a lower utilization?

No, we have not done any capacity expansion. It is not because of the capacity expansion.

Better utilization of the assets, put it that way. Obviously that also includes yield.

Okay. Okay.

I think we are committed on the Q4 breakeven EBITDA for Consumer. We are on the path.

We feel confident still as of today. All right.

All right. Okay.

Okay.

I have more questions. I'll get back in queue.

Thank you.

Good evening, sir. I have two questions.

One is why is the depreciation so high in the first quarter? Second, if I consider that ₹400 crore is effectively is your revenue, then you would achieve full year should be close to something like ₹1,600 crore, while the guidance is somewhere close to ₹1,800 crore.

Third point, I want to understand that other incomes which you're saying is basically revaluation reserves, maybe the foreign exchange part, which is actually lower, which is why your overall revenue has come down. Then, what is the guidance on this other income going forward if I have to look at pure revenues other than the other income, then how should we look at this?

Fourth is while the numbers have sequentially improved, there is still the ramp-up of consumer electronics completely the way they're looking at from 23% to coming to 46% doesn't seem or could be achieved by quarter four FY27. Just wanted to understand that.

Jyoti, Harish here. I will take a couple of questions from here.

First one was depreciation. If you see our Q4 depreciation was also close to same number, I mean about ₹453 million or ₹455 million.

Our Q1 depreciation is also in the same range. Q4 is what we got all the, Q3 end of the Q3 entire capitalization was stopped and commercial operations for consumer electronics was started, and Q4 was a full quarter of getting that depreciation with a low utilization.

It will remain similar level, and it was as it was in Q4. It will be similar

for the next all three quarters we'll see such high depreciation numbers?

There will be similar depreciation which is there. Of course, unless we add more capex, the depreciation will increase.

That's something we have given. Your second question was on the full-year projection.

Yes, Q1 we did for about approximately ₹400 crore, right? As we said that our utilization in Consumer is improving and Q4 we will see utilization of 40% to 50%, that means our revenues in Q4 would be higher, which would take us to a full-year growth of 45% to 50% at overall level.

Okay.

On the other income, just to clarify, there are no revaluation reserves as such. It's typically driven by two things.

One is the interest income and all those things, and second is foreign exchange fluctuation. Typically foreign exchange fluctuation is what we don't project for future period.

Our interest income will remain in the similar line as what it was in Q1. Going back to your fourth question, maybe I will have Aravind or Rajiv talk about it, ramp-up from 23% to 40%.

How we'll go? See,

we have currently the way what we projected is Q4 to be EBITDA positive is based on this assumption. At this point, we're fairly confident to get to 40% to 50% of capacity utilization.

Okay. I'll come back in the queue.

I have more questions, but I'll come back in the queue.

Thank you for the opportunity. My first question was around we have announced a significant investment over the last few quarters.

Could you help me understand that what are the expected asset turns over this new investments and how do you look over the ROIC profiles once these investments stabilize?

Sorry, the first question was expected capital expenditure? Sorry, I missed that.

Or what was it? Can you repeat?

It was around what is the expected asset turns over this new investment and how do you see the ROIC profiles over this investments once they stabilize?

Sure. I think, as we mentioned in the last quarter as well, our Consumer asset turns overall would be about 1.5x and that remains stable.

ROIC profile also on a steady-state basis would be in the similar range, 18% to 20%, as Aerospace.

Okay. My second question was with these evolving global trade policies and tariff changes, have customer accelerated the localization or diversified their sourcing towards India?

Have you already started incremental business from this shift, particular from this shift?

This shift, you're talking tariff?

Yes, sir. Tariff changes and trade policies.

Look,

we are not seeing any specific current to this tariff what changes are happening. Our customers have taken strategic view of where they want global supply chain to be.

Based on that, they're committing the supplier locations and everything. We are working with them on those activities.

We feel their strategy has not changed as far as we know. Aerospace, nothing has changed, even Consumer side.

We are very clear that whatever is there, nothing has changed, fairly stable as far as we're concerned.

Okay. Just one last question.

The consumer manufacturing, which is the strategic growth area right now, are you seeing a structure improvement in the customer demand or is it a current recovery is largely driven by inventory restocking for this current quarter and for this FY27, sir?

This is all driven by the customer demand basically. Whatever we are producing, we are shipping.

There is no issue of the demand.

Sir. Got it.

Thank you so much. I'll come back in the queue for my next question.

Hi, sir. Thank you for the opportunity.

Sir, actually, I have a couple of questions. Sir, first, as of now currently on the Consumer side company is doing approximately 23% of capacity utilization.

As of now, I wanted to know how much capacity utilization will be in the current quarter. Let's suppose the company is targeting for the upcoming FY2029, how much utilization there will be there and in which segment?

There are a couple of things that the company is into Consumer segment and cookware and toys. Which product has a major focus of the company?

Second question, I have to know, as of now company has guided for the 18% to 22% kind of EBITDA margin for upcoming next two to three years. Also I wanted to know how much the company's estimated for the PAT margin kind of things.

Means is there any estimation for upcoming two to three years as earlier call told, the management has guided key in next two to three years we are going to PAT positive. How much the company's PAT margin will be there?

See,

first is let me address your capacity utilization. Current quarter we did around 22% and we still hold by Q4 to touch 40% to 50%.

I cannot give you any more view than next quarter and all those things at this point on Consumer.

On the EBITDA margin, yes, we are guiding towards 18% to 22%, and that's what we have laid down even in Investor Day as well. On PAT, again, we have few milestones what we have laid in front of us.

One is, of course, PAT breakeven by H1 of FY28, Consumer PAT breakeven by FY30, and we'll have a decent PAT in FY31, which will translate to about 20% steady-state ROC in FY31.

Okay. Sir, on the PAT margin side, let's suppose if I am forecasting the PAT for FY30, what percentage I can assume?

Right now, I think we stick to the milestone what we have given. We are not disclosing anything beyond this.

Okay. Sir.

Thank you, sir. I will join the queue back.

Thank you for the opportunity. My question is on the Hosur plant.

If you could just give us some details. Firstly, how much is the investment going to be and when do we see phase one getting operationalized?

Is also on the Belagavi plant, which is end-to-end vertically integrated, when do we see that happen the Hosur facility? That's my only question.

Yeah. The Hosur facility is a integrated focus on engine and landing gear components and it is going to be end-to-end just like what we're doing in Belagavi for the aerostructure focus predominantly.

First facility will come between September to March timeframe of next year of '27 to '28. That's why Rajiv was reflecting that '29 will start seeing some revenues coming out of that facility.

That's going to be our first machining facility. Then we'll have a forging and various other vertical integration to happen that location.

Our all investment, predominantly on the vertical integration side will be done by 2030 timeframe. Machining will continue to happen over a period of time.

That's the roadmap we're giving. We committed about ₹1,900 crore in total investment in that, including our JV partners investment in the JVs what we have.

Our JVs will get extended from what we have in Belagavi, focused on those capabilities into that zone.

Could you please repeat the investment including JVs and how much?

₹1,900 crore

over a period of 10 years, actually.

Thank you so much.

Okay. Thank you.

Yeah. Hi, sir.

I just wanted to first understand the rough split within Consumer between toys and ECD and I just wanted to check in terms of potential ramp-up of the new customer in toys during the second half of the year.

Deepak, Harish here. We look at a Consumer as a overall level.

We do not provide split between the two sub-verticals, as we mentioned in the previous call as well.

Sure. Maybe the ramp-up of Mattel to it?

On the toys side, Mattel is scaling up well. We continue to see that as a strategic customer to us, just to give you clarity on that side of it.

Okay?

Sure. Maybe just overall capex for the next two years, specifically this year how much incrementally do we invest in Consumer and Aero, and maybe just this year and next year also if you could sort of highlight that?

This year what we laid down, right, our total capex overall including Aero and Consumer would be about ₹660 crore for FY27. We stick to this number.

In terms of future capex, again, we have laid down a plan of from this year to FY31 for the next five years, investing about $350 to $400 million of overall capex.

Yeah. Any split that you want to share for this year between the ₹660 crore?

So ₹660 crore, originally we had given a split of about ₹500 crore for Consumer and ₹160 crore for Aerospace. We may see some acceleration in Aerospace capex and maybe that may be compensated by some reduction or saving in Consumer, optimization in Consumer.

Overall it will be remain same.

Sure. We are already at 70% utilization.

What is the maximum we can do in Aero before we would require or is just machining and all of this land and anyway we have all the facilities?

Look, we are continuously adding already. Since last December, our continuous machine addition are happening.

Literally, we are adding a machine a week right now at this stage. Capex is happening in Aerospace continuous basis because you see that order book, right?

Order book grows means it only comes because we can get up to 75% comfortably. As we are also increasing the order book, we'll have to put a capex in there to support it.

Sure, sir. Maybe I just missed this in your opening remarks, but what is the contract value of potential size of this wheels contract that we've received if you could sort of quantify that?

We're not disclosing that value. It should show up in order book next quarter because none of the Farnborough, whatever we are done, is not reflecting right now in our order book.

It will reflect in the next quarter. Yes.

Sure, we should see more upside in the order book or the sequential acceleration should continue. Okay.

Sure, sir. Those are my questions.

I'll get back in the queue.

Thank you.

Hi, sir. Thank you for the opportunity.

Sir, I just wanted to understand because this industry is precision manufacturing and you are dealing with a lot of processes in your work, how have you been thinking about the talent management for the next 5 to 10 years, let's say if you see a lot of growth in the sector and you need a lot of talent? How have you been thinking about building the talent?

Look, if you have visited Belagavi, you should come down and see Belagavi. We are in tier three.

We have chosen to be in tier three. We have been able to build this vertically integrated ecosystem from scratch, using the talent mostly regional, okay, and it's pretty much fresh out of school because when we started, the country did not have aerospace capability.

We had to build from scratch. We have inherent ability to train the people, deploy the people.

That has never been a constraint to us. We welcome the overall growth in the industry.

We feel very strong about our process of inducting people and developing the people and retaining the people. Also at the same time, our joint ventures are helped us to build capability and further expand our ability to retain people.

This is the fundamental DNA of the organization to develop people from scratch, from fresh out of school. That's what we have done and we continue to do that.

Thank you, sir. Thank you.

Thank you for the opportunity again. Sir, just one question on the consumer electronics segment that the capex that you have committed of about ₹400-₹500 crore in this segment, is it subjected to your utilization ramp-up?

Meaning in case the utilization ramp-up is slower for this year, you would not commit this capex? Second, this capex is for the capacity augmentation or you are doing more backward or the forward integration for the similar process?

This is for the capacity augmentation, first of all, and also new programs as we're getting into new programs with the customer.

All right. Irrespective of the utilization ramp-up, you would commit this capex?

No, no. The utilization if it is not going to happen,

then

we will not have to expend. Some portion of the capex will not happen.

Some portion will not happen.

All right. One more question if I may.

That is a built-in strategy. This

one.

Got it. One more question if I may ask that in the Aerospace segment, let's say because you are targeting more landing gear and engine, are there any capabilities that you would like to build over next few years so that you can get more and more engine component orders?

The whole Hosur is going to be new capabilities, a whole lot of new capabilities. We have a roadmap of that.

Obviously, it's internal. Our goal is to be the largest manufacturer of aero engine components.

That's the goal what we have established, and we're walking on that path, vertically integrated products.

All right. Got it.

That's it from my side.

Hi. Good evening, sir.

Thanks a lot for the opportunity. I just have one question.

To appreciate the numbers that we have reported in the Consumer segment, while we are not splitting it out into its two parts, could we at least get a directional sense as to the consumer electronics has grown and the toys segment has degrown or vice versa? Just wanted to understand if there's a significant volume ramp-up that we have seen in consumer electronics and the guidance that we have for 4Q to breakeven on EBITDA, it spaces consumer electronics.

If you could just clarify for the quarter and the directional sense for FY27, that'd be very helpful. Thank you.

If you really look at it, the Consumer utilization was low, even before consumer electronics was started. Overall, our utilization has to improve both of them together in tandem to get to where we need to get to.

We can't just have one not used and the other one used is not going to get us there. The good part is we have key customer on each of this sub-verticals, and both are committed for the growth is execution.

That's what we are working through right now. The utilization and basically cuts across both the businesses.

That's where we see right now.

Right, sir. Just on a quarter-on-quarter basis, we have seen growth in the Consumer piece.

That's where I was kind of trying to pry upon to understand whether this will be led from the electronics side or the toys side just to appreciate that number a bit better. That was my limited question.

It's a tandem growth. That's what I'm trying to tell you because both are underutilized capacities, right?

That's the reason I'm saying it's about utilization was about same when we did in the past. Oh,

got it.

We always maintain that, yeah, even our toys utilization was low. We communicated that when consumer electronics was not there yet, right?

We're increasing both the utilizations.

Understood.

Understood. Not breaking up the both of them bottom line because that just gets into situation of where because certain assets are also could be used here there, both common way.

Got it. Did I also hear this right?

We are entrancing into a few more programs on the consumer electronics side. Beyond the scope that was already assigned to us, is that a fair reading or the understanding that I got from Rajeev earlier?

Yes.

Okay. Okay.

Thanks. Thank you, sir.

That helps and have a good day.

Sir, I would like to understand why do we have other expenses so high? While it has come down on a sequential basis, but on a Y-o-Y basis it is doubling.

What components would actually be affecting it throughout the year in other expenses part?

Jyoti, as I mentioned earlier, Q1 of FY26 didn't had the consumer electronics piece in the P&L. The expenses were getting capitalized, right?

From Q4 all the expenses came into the P&L and that's the broader reason why we see a increase in the other expenses and even some employee benefit, all the expenses in fact.

Would this be at similar levels or is it going to go high in the subsequent quarters just because we have consumer electronics added? See,

it has a bit of variable as well as fixed component. Variable will kind of slightly grow as the revenue grows.

Fixed will remain pretty much same at least in the next near term.

The fixed part would be 30% of the other expenses or is it 50-50 fixed and variable?

I think that would be too much of disclosure at this moment, Jyoti.

Sir. Thank you.

That was my question.

Hi, sir. Good evening.

Am I audible?

Yes.

Hi, sir. Thank you for the opportunity.

I have just two questions. One is regarding the capacity.

As I see the capacity number in terms of million hour from base of FY26 has increased from 3.62 million to currently 4.78. I just want to understand where do you see the total capacity numbers in the next two, three years?

If possible, if also provide the split between Aerospace and Consumer.

We don't really project that basis because it depends on the components type we sign up and type of machines we sign up, and those are combination of that we'll get there. Again, Aerospace could be different and Consumer is going to be different.

I think it's just a tracker to see how the growth is happening from the overall capacity perspective, but not something we model the business on. We model business more on the where we think revenues are going to come from and type of components we do.

That's what happens.

Hi. Am I audible?

Hello.

Okay. Thank you for this opportunity.

I just want to ask that around the ₹1,700 to ₹1,800 guidance for top line for this year, what is the segment mix that we're targeting between Consumer and Aerospace?

As we have guided earlier, our Aerospace growth will be about 25% to 30% over FY26 and Consumer will be about 125% to 150% over FY26.

Okay. Got it.

Thank you.

Hi, sir. Thank you so much for the opportunity.

Sir, given the growth we are going to witness over next three years, what kind of investments we required if I have to take a longer-term view like three years in terms of putting both in working capital as well as the fixed capital?

We have laid down a five-year plan starting FY27 to FY31 wherein we have laid down a capital expenditure requirement of about $350 to $400 million over a period of next five years.

Working capital about 125 days net working capital what we assume right now.

Total will be $500 million, right?

Whatever that translates to.

Okay. How much that can come through internal accruals, sir?

Is it that we have to raise money from the market?

We did communicate that most probably about $150 million kind of a raise we'll have to do. Right now this year we're not planning to do anything unless there is advanced pull in capex or inorganic piece.

Sure. Thank you so much, sir.

Thank you.

Thank you for the opportunity again. My only question is again on the wheels order that you mentioned about.

Could you just explain it in much more detail as what the actual product is, what are the components that we will be manufacturing? That's my only question.

We will be manufacturing the aircraft wheel for Airbus A320. Without the tires.

We don't put tires. Completely finished wheels is going to be manufactured, including assemblies.

It's actually a two half wheels joined together, becomes a full wheel. There's assemblies there.

Full thing is going to be done out of Belagavi all the way from raw materials sourced within India and we have approved source now, with a qualified source. We're already doing the forging of the wheels and some machining of the wheel, but now we're going to be completely finishing the surface finishing and assemblies, all that element also going to be coming in.

Just on raw material for both consumer electronics and Aerospace, do the suppliers help you procure raw material or do you do it independently and how easy or difficult it is for raw material like superalloys, etc.? Just if you could throw some light on that.

Both sides actually. The superalloys and all these titanium, customer really supports on the both sides to source the material.

Actually,

if you really look at it, we deal with hundreds of different raw material globally sourced. Out of that, only we're able to get maybe one or two alloys right now in India get qualified.

We have worked for last several years to get it done. It's a long process to even aluminum.

We produce a lot of aluminum in the country, but not necessarily commercial aerospace qualified by our customers. There are only two grades we have been able to get it done, that also for forgings, not even for otherwise.

We have a long journey to develop this ecosystem on global national basis. It's a journey, that's what I call.

Hope we can accelerate some of these things. Some of the kind of wins we have had, more of those vertically integrated.

Got it, sir. Thank you so much and all the best.

Thank you.

Hello.

Yes.

Thank you for the opportunity. Sir, you stated that this year you're planning for a ₹660 crore capex, and next year it is going to be at Hosur factory ₹1,900 crore.

How are you going to fund this or what is going to be a mix for this internal accrual and debt?

So ₹1,900 crore capex what Aravind mentioned earlier in the call is over a period of 10 years, not next year.

Oh, okay. All right.

Thank you.

Thank you.

Hi, sir. I'm audible?

Yeah.

Sir, my question is on Consumer side. Can you share the customers' name in the Consumer side in consumer electronics, toys, and consumer durables?

Consumer Electronics is one of the largest consumer electronic manufacturer brand. We cannot share because of confidentiality.

Tramontina is our consumer durable side, and Mattel is the toys.

Okay. Thanks, sir.

Thanks a lot.

With ₹1,800 crores of top line and the guidance that is given for Consumer segment and Aerospace, what is the blended EBITDA margin that we're targeting for this year?

This year we are targeting to kind of doubling of our operational EBITDA as compared to FY26. That's the target for FY27.

Roughly around ₹180 crores of EBITDA, is that right?

Whatever that number translates to, yes.

Yes. Also, just one more question, sir.

For the next two to three years, how do we see the share of Consumer business going up of our overall top line because from this year's guidance it is expected to be roughly around 20%-23%, and then over the next two to three years, how do you see that transitioning?

If you see Q1, we are at about 19% and as our utilization increases, the share will start increasing. On a period of five-year basis, I think we would be about 40-60 Consumer.

Okay. 40% to 60%.

All right. This is expected to generate an EBITDA margin of less than 20% compared to our Aerospace business, which is above 20%.

Is that right? Is that the right understanding?

Aerospace we have guided at 18% to 22% and Consumer 18%

to 20%. 18% to 20%, yes.

Got it. Thank you, sir.

Thank you for this opportunity. Sir, my question is that with global original equipment manufacturing increasingly pushing for supply chain derisking and nearshoring, how much of your raw material sourcing is currently localized within India versus imported?

I think our raw material is 99% imported. I don't think there's any possibility of changing that anytime soon

because

we don't have any qualified sources in India for that to change.

Thank you, sir.

Sir, whenever we allocate this capex, what is the ROC at a management level we look for each of the capex, either within Aerospace or within the consumer electrical space?

Our ROC targets on a steady-state basis remain same, 18% to 20%. That's how we look at it whenever we allocate the capital.

Okay. Going forward, do you feel that a consumer electronic, because of the less capitalization, is going to be more in terms of revenue than Aerospace?

No. We see Aerospace already a large base.

It's still continued to grow right now at 20, 30%-40% level, right, whatever we have guided. With that kind of growth, we still see Consumer going to be next five years at least still lower than the Aerospace even higher growth of Consumer.

We have already reached the utilization level of 80%. You said that although Aerospace is going to be ₹120 crore or so, but then in next years if we have to grow, we have to make more capital allocation in the Aerospace division then.

We have done that already, capital allocation planned.

Okay. May I know how much is that?

Hosur we said ₹1,900 crore, and then another ₹2,800 crore we're investing between Consumer and Aerospace in Karnataka. That also we have guided.

Yeah. For the next year, how much it would be, sir?

We have not finalized the next year numbers.

All right. Okay.

Thank you. Thank you.

Thank you, everyone, for joining the call. Look forward to discussing further with you in the coming quarters.

Thank you.

Thank you.

Thank you.