Thank you. A very good afternoon, everyone, and thank you for joining us for Lumax Auto Technologies Limited's Q3 and 9 months FY '26 earnings conference call.

It's a pleasure to welcome you all today. I'm joined by our leadership team, including Mr.

Sanjay Mehta, Director and Group CFO; Mr. Vikas Marwah, CEO of the company; Mr.

Ankit Thakral, CFO of the company; Mr. Sunil Koparkar, Managing Director, IAC India; Mr.

Akshay Kashyap, Managing Director, Greenfuel Energy; Mr. Naval Khanna, Head of Corporate Taxation; Ms.

Priyanka Sharma, Head of Corporate Communications; and I would also like to introduce Ms. Surbhi Channa, Group Head of Investor Relations and Value Creation.

We're also supported by our investor relations partners, Adfactors PR. Together, the leadership team looks forward to sharing an overview of the company's operational and financial performance for Q3 and 9 months FY '26, along with the key business developments during the period.

The results and investor presentations have been already submitted to the stock exchanges and are available on the company's website, and we trust you've had the opportunity to read through them. On the industry performance, India's macroeconomic environment during Q3 FY '26 remained supportive for the automotive sector, with growth visible across all major segments.

As per SIAM production data for Q3 FY '26, passenger vehicle production was up by 19% year-on-year, two-wheelers were up by 15% year-on-year, three-wheelers at roughly 3.4 lakh units were up by 35% year-on-year, and commercial vehicles also saw a positive upward trend of 18% year-on-year. This broad-based expansion underscores the strong momentum across the industry, with overall robust performance of OEMs during the quarter.

Importantly, domestic passenger vehicle sales grew by an impressive 21% year-on-year in Q3 FY '26 compared to the same quarter last year. Demand was further aided by the benefits of recent GST rationalization, a buoyant festive and marriage season, and continued premiumization trends across different categories.

In addition, cumulative RBI rate cuts have helped ease financing costs and improved affordability, particularly for the mass-market consumers. These factors have supported higher volumes, better product mix, and healthier retail sentiment across urban, semi-urban, and rural markets, trends that are clearly visible across the sector.

Finally, the recent Union Budget's continued thrust on infrastructure spending, manufacturing, and supply chain development is expected to provide further structural support to the auto ecosystem. In parallel, recent developments on the trade front, including the US trade agreement and progress on the EU FTA, should be positive for the industry over the medium term by improving market access and competitiveness.

Overall, the macro and industry environment remains constructive, with strong momentum across segments and improved visibility for sustained growth. Speaking on the company's performance, in Q3 FY '26, we delivered our highest-ever revenue, with revenues growing by 40, 40% year-on-year.

For the 9 months ended FY '26, revenue increased by 38% year-on-year, reflecting sustained momentum across our businesses, supported by healthy demand, successful product launches, and a continued shift towards premium offerings. Driven by this momentum, we would like to revise our revenue growth guidance from earlier 25% to now 30%, and we remain firmly on track with our growth objectives under our North Star.

On the profitability front, EBITDA margins reached 15% for the first time during Q3 FY '26 and thus remained aligned with our strategic direction of improving EBITDA margins progressively. A quick update on mergers: the merger of Greenfuel Energy Solutions Private Limited with the SPV company, Lumax Resources Private Limited, has been approved by the Honorable NCLT, Chandigarh, with effect from February 3, 2026.

The merger of IAC India with Lumax Auto Technologies is also gaining progress, with the first motion already completed. We continue to evaluate capital allocations in all our partnerships to create sustainable growth for the company.

This reflects a focused effort to simplify the corporate structure, enhance our capital efficiency, and sharpen the alignment with future-ready mobility platforms. On new launches, during the quarter, we continued to strengthen our product portfolio with several new launches across both passenger vehicles as well as two-wheeler segments.

On the passenger vehicle side, we commenced supplies for Maruti Suzuki's Celerio model for the ferrule-less tubes and fittings for the CNG version, which is an industry-first, localized solution, as well as interior parts for Maruti Suzuki's Victoris platform. We also added interior components for Mahindra's XUV 7XO and XEV 9e models, and emission-related parts for Tata's iconic Sierra.

In the two-wheeler segment, we began supplying plastic parts for TVS's export model and frames for Bajaj's Triumph platform. These wins underscore our strong OEM relationships and our ability to participate across multiple platforms and product categories.

Speaking on the order book, we are pleased to report a robust order book of ₹1,450 crores, which provides healthy visibility for the business going forward. Of this order book, approximately 33% is expected to be executed in the next financial year, FY '27, 44% in FY '28, and the remaining 23% in FY '29.

The order book continues to reflect healthy traction across all our product verticals, with advanced plastics contributing the largest share, followed by mechatronics, alternate fuels, and structures and control systems. In closing, Q3 and 9 months FY '26 represent an important milestone in Lumax Auto Technologies' journey, as we continue to execute our strategy with clarity and confidence under our North Star and the Bridge midterm plan.

We are building a stronger, much more diversified, and future-ready organization, anchored by our focus on premiumization, electronics, and software-led solutions and sustainable mobility. With a robust order book, strengthening capabilities through initiatives like SHIFT, our tech center, growing momentum in businesses such as IAC, mechatronics, Greenfuel, and improving industry tailwinds, we believe we are well-positioned to consistently deliver profitable growth and create long-term value for all our stakeholders in an evolving automotive landscape.

With this, I would like to now hand over the call to Mr. Ankit Thakral, CFO of the company.

Thank you, sir. Good afternoon, everyone, and thank you for joining us today.

The first 9 months of FY '26 have reflected strong execution across businesses, sustained growth momentum, and continued progress on our strategic priorities. Q3 FY '26 builds on the strong foundation laid in the first half, with successful transformation of our strategic alignment into strong revenue gains and EBITDA expansion, further solidifying the strength of our diverse and well-balanced portfolio.

Let me walk you through the consolidated financial and operational highlights for the quarter and 9 months ended December 31st, 2025. The consolidated revenues reached INR 1,271 crores for Q3 FY '26, which is historic high for the company, and INR 3,453 crores for 9-month FY '26, registering a growth of 40 and 38% year-on-year for quarter 3 and 9 months, respectively.

This reflects a consistent scale-up across core product lines, steady traction with OEMs, and continued strong momentum of the aftermarket portfolio. On the profitability front, EBITDA for Q3 stood at INR 191 crores, while for 9-month FY '26, it stood at INR 497 crores.

This translated into margins of 15% for Q3, which is an improvement of 100 basis points from Q3 of last year. The same was 14.4% for 9-month FY '26.

PBT before exceptional item for Q3 FY '26 stood at INR 116 crores, while for 9 months, it stood at INR 295 crores. There is a slight increase in depreciation cost in Q3 of FY '26.

Part of it is due to the capitalization, but majorly on account of amortization on account of right-of-use assets because of start of lease on couple of new facilities. It is because of this only the finance cost is also slightly increased in the current quarter.

The impact of change in wage codes notified by the Government of India on 21st November 2025 amounting to INR 14.95 crores has been shown as an exceptional item for the quarter 3 and 9 months ending financial year '26. Profit after tax before minority interest for Q3 and 9-month FY '26 stood at INR 108 and 240 crores, respectively, registering an impressive year-on-year growth of 90 and 60%, respectively.

In tax expense, there was a one-time impact in Q3 FY '26 on account of reversal of deferred tax as a result of the merger of Greenfuel with the SPV company. Excluding the same, effective tax rate comes out nearer to 26%, both for quarter 3 and 9-month FY '26, and we expect it to hold at a similar levels way forward, too.

The share of minority, excluding the same deferred tax impact for the Q3 FY '26, stood at 16%, which is again expected to be in the similar range going forward. With respect to the division-wise breakup, beginning with the advanced plastics division, this segment recorded an year-on-year growth of 28% in 9 months, with revenues increasing from INR 1,420 to INR 1,811 crores.

This performance reflects our strategic alignment with OEM programs that prioritize design, durability, and lightweighting. The order book remains strong at INR 745 crores, providing solid future visibility.

The mechatronics segment sustained its upward momentum, delivering a year-on-year increase of almost 200% in 9-month FY '26, from 67 crores to 198 crores, with a healthy order book of INR 345 crores. Remains a highly technical business due to its high engineering intensity and relevance in the shift towards intelligent mobility systems.

Turning to the structure and control systems vertical, it reported a year-on-year growth of 15% in 9 months, from INR 512 crores to 588 crores. With an order book of INR 180 crores, it strengthens our position as a trusted technology partner in the evolving mobility ecosystem.

The aftermarket segment showed a strong growth of 15% from 9 months of last year, reflecting strong customer traction and product acceptance. We are very very much hopeful of sustaining this strong growth for the full-year FY '26.

The Greenfuel Energy Solutions, acquired in November last year, FY '25, contributed 270 crores in 9 months, backed by an order book of ₹180 crores, and with margins expected to be accretive to the group average over the medium term. The segment is positioned to grow in alignment with the national shift towards alternate fuel platforms and rising OEM adoption.

Over the year, there has been a notable shift in our revenue composition, leading to a well-diversified and balanced mix across mobility platforms. In 9-month FY '26, the passenger vehicle segment accounted for 53% of total revenues, with 2- and 3-wheeler segment contributing 24%, followed by aftermarket at 10%, and CVs at 9%.

Capex for 9 months stood at INR 172 crores, which includes strategic investment in land in Gujarat and Kharkhoda regions of INR 44 crores. It also includes ₹50 and ₹20 crores on the capacity expansion in IAC and Lumax Alps, respectively.

These investments are aimed at unlocking medium-term revenue growth and supporting localization efforts across key platforms. The guidance for the full year is close to INR 240 crores, which is slight increase from the earlier outlook given of around 220 crores.

As of December 2025, we continue to maintain a strong balance sheet and a healthy liquidity position. Free cash reserve stood at INR 421 crores, providing us with the financial flexibility to support ongoing investments and navigate market cycles confidently.

The long-term debt stood at INR 574 crores, resulting in a conservative debt-to-equity ratio of 0.50, which is within our internal comfort thresholds. With this, we conclude the operational and financial overview.

We now open the floor for questions.

Thanks for the opportunity. Congratulations to the team for one more exceptional set of performance, specially at the operational front.

It's good to hear that the FY '26 outlook is revised upwards for the second time in this fiscal. Team, are you also looking stronger FY '27 as well, and can beat the original guidance of 15% organic growth?

Also, if you can help us understand the quantum of growth the subsidiary-wise is just to understand which all subsidiaries will still continue to see higher growth momentum in the next fiscal as well?

Sure. Thank you, Amit, for your comments on the great set of performance.

I think on the revenue growth aspect, the buoyancy across segments continues to be fueled by key customers. As Maruti Suzuki sorry Mahindra & Mahindra, Bajaj Auto, and Maruti Suzuki are amongst our top five customers.

All of them are showing very positive trends for Q4. I think for the most part of FY '27, we do believe that we will still be able to maintain, and in due course we will look at if we need to revise upwards the guidance.

I think we are on track in our North Star of delivering about a 20% CAGR over the next 3 to 4 years. As I said before, this is a culmination of both organic and inorganic opportunities, which the company will evaluate in due course.

In terms of your question on subsidiaries, I think yes, the subsidiaries have had a significant growth, some of them again coming out of a low base, but I'll let Ankit handle in terms of the growth in subsidiaries for next year.

Yes, subsidiaries for the 9 months mainly, Amit, IAC and of course mechatronics division, they have led the growth for the subsidiaries. I think IAC for the 9 months grew closer to 40-odd percent with respect to the 9 months of last year.

Of course, mechatronics as a whole kitty, considering the entities like Lumax Alps Alpine and Lumax FAE, they grew by I think closer to 200 crore 200% from last year, although on a very low base.

The subsidiary question was basically for FY '27, which all subsidiaries will still continue to see higher growth momentum?

Of course, apart from the mechatronics and especially the Lumax Alps Alpine will continue to have a strong trajectory going forward because some of the SOPs which have happened in the middle of the financial year, the full-year impact of those will come. As a matter of fact, some of the new business wins which have happened in this particular financial year, couple of them, they will also start somewhere in maybe closer to H2 of the next financial year.

Of course, as you must have read the announcement of Mahindra and their increase in capacity expansion, IAC will still continue to benefit from that, and they have a couple of new models lined up for SOP in the next financial year. However, with respect to any exact or specific number with respect to FY '27, we will be able to provide you some clarity maybe by the end of March or so.

Noting. Sir, my second question pertains to margins.

How confident is the company to attain this guided 16% of EBITDA margin target by FY '28? There are three parts question basically.

First is, is there any risk which can probably restrict this upward journey? Second, what all steps the company is taking to achieve this aim of 16%?

Lastly, which subsidiaries will mostly be going to contribute positively in attaining the same?

Amit, I'll take this first. I think if you look at our performance from Q1 onwards, we've progressively expanded our EBITDA margins, which were sitting at around 13% and then inching towards 14.5, and then for Q3, we've done 15%.

I think we're reasonably confident to maintain a similar EBITDA margin going forward for quarter 4. In FY '27 as well, we should be able to expand further by about 50 bps points or so.

I think the confidence comes from again, as I mentioned, a very differentiated, diversified reasons. One, of course, certain subsidiaries like IAC or Greenfuel will have a stronger growth compared to the 15 to 20% guidance which we've given.

Both of these sit at a higher margin business. Also, the aftermarket, which sits at a higher margin business, will continue to also deliver accelerated growth.

Once again, with the premium offerings, our value content per vehicles will also continuously change, thereby pulling the margins further.

Right, there are no risk you see, right, for this upward journey?

Most of the risks seem to be mitigated, but of course if something unforeseen comes, then we'll cross that bridge when we get there. As of now, we seem to be on track to maintain the current margins achieved and expand it further as we go forward in FY '27 to achieve closer to 16% or so in FY '28.

That is good to hear, sir. Sir, just last one question, specially on the standalone side.

We are in the process of doing some restructuring and appointed an external consultant as well. Wanted to know what is the status, progress, and benefits expected on margins, and any internal aim for margin improvement specially on the standalone side?

Lastly, similarly standalone is a big portion of your consolidated business now. From where the growth is expected to come for the next two fiscals, and in case you want to highlight any new wins so far for the standalone?

I think I'll answer in serial order. With respect to whatever the external help we sought, I think that impact of that particular cost has reflected on the standalone financials for this particular financial year.

The full impact of that particular expense, you can see in the consolidated profitability because some of the various I would say cost-cutting or maybe the fixed cost reduction, savings impact has been reflected in the consolidated financials, apart from the whatever the strategic input they gave on the aftermarket or maybe the couple of other subsidiaries also. If you exclude that one-time impact in this particular fiscal year even for the standalone financials, the profitability, including the other income, will come in the region of maybe closer to 11-odd percent, which say in the last maybe 2 to 3 years, we have seen slight improvement from the maybe 8 to 9% that was there in couple of years back of the standalone financials.

Sir, where the growth is expected for the standalone?

Hi, sir. Thank you for taking my questions, and congratulations for a good set of numbers.

Sir, first of all, wanted to check about the medium-term FY '28 margin target of 16%. We are already at 15%, 14.8%.

What is the risk of not meeting that target, and is there possibility, or in other ways, is it okay to assume that we can cross 16% margin in FY '27, or early part of FY '28?

Mr. Pandey, I think we've given an ambitious goal for us to move closer to a 20% EBITDA over the next 5 to 7 years.

I think we would appreciate that the margin in this fiscal year, where we were starting in quarter one, has almost gone up by 180 bps in the 9 months. I think we are reasonably confident, as I mentioned before, that the EBITDA margins between a 15 to 15.5% will continue to be maintained on a accelerated top-line growth of maybe 20%, 25%.

In real absolute amounts, yes, we will have a significantly higher profit growth in FY '27. I think for now, I would still continue to maintain a guidance of getting close to a 16-odd percent EBITDA in FY '28.

There are always risks associated with this journey, but I think the management team is quite confident given the diverse set of products and systems we do, and also the whole premium offerings which we're trying to get towards as a part of our long-term strategy. I think we are fairly confident to achieving and sustaining those margins.

Thank you, sir. Thank you.

Sir, secondly on the subsidiary side, wanted to check about the loss-making subsidiary. We said that Jopp was a EBITDA positive in second half, but at PBT level, it will be negative.

If you can help us on Jopp, Ituran, Alps Alpine, and FAE, the profitability and the growth aspect in these subsidiaries, that will be pretty helpful. Also, sir, just wanted to check about the deferred tax.

What was that in the third quarter?

I'll answer on the profitability part of Jopp specifically and the deferred tax, then I will let Mr. Vikas Marwah to come in and speak about the growth aspects of all these subsidiaries.

Firstly, just to answer, with respect to maybe the earlier discussion, Vijay, this was specifically for Lumax Yokowo that we mentioned that it will be EBITDA positive for the H2 of the current financial year. Just to let you know that quarter three was the first full quarter for the Lumax Yokowo in which it became EBITDA positive and also maybe PBT positive also for some part of the quarter.

Lumax Yokowo will still continue to have the negative EBITDA for the rest of the financial year also. With respect to your deferred tax query, so as I mentioned in my opening speech, it was a one-off.

It was nothing but a notional entry on account of the reversal of the deferred tax liability which we accrue when we acquire the Greenfuel Energy through our SPV. Now the merger of that Greenfuel has happened with the SPV.

That is why the reversal of deferred tax has come in this particular quarter. However, if we exclude that impact, the ETR is at 26-odd percent and will continue to remain at the similar percentage way forward also, considering the existing structure.

Now I will request Mr. Vikas Marwah to come in and comment on the growth of these TVs.

Thank you, Ankit. As far as the subsidiaries are concerned, the question is very relevant, but let me assure you that even in the subsidiaries also, the management continues to focus on the subsidiaries which have got huge scalability and a larger traction.

I will begin with Alps. Alps is set to exceed a revenue mark of 500 crores by FY '31 and also targets somewhere close to a 15% kind of an EBITDA margin in very technologically intensive products.

Yokowo, as already mentioned by Ankit, has reached a full quarter of profitability as far as the EBITDA margins are concerned, and is now approaching market leadership position with at least two major OEMs and going to a revenue scale. We have no concerns on that also on scalability and potential to improve the profitability.

Ituran continues to be profitable. Yes, the telematics vertical as such is not yet completely mature in India.

It is still in nascent stage. We have matured our business offerings with India's premium customers, Daimler India, where our products are already successfully validated, and we are waiting for the next business opportunities.

FAE already went into successful SOP and is profitable and has got a dominant market share at two two-wheeler companies, which is Mahindra Motorcycles and Royal Enfield, and continues to look at the third opportunity very soon. Jopp, of course, was an entry into a product line which was a second source when we came in, primarily the products being shift towers, and currently, even though the order book is parked for future scalability, we continue to have active discussions with the OEMs in terms of how to integrate this better within our transmission division.

Lumax Mannoh and Lumax Cornaglia continue to be high-revenue, highly profitable entities. There you go on all these subsidiaries, including of course today Greenfuel and IAC, which are much more profitable than all of them.

Yes, sir. On the telematics part, do you see any increase in the business coming because ADAS will become mandatory in the commercial vehicles from next year onwards?

Do you expect...

The telematics offerings from Ituran right now are primarily in the TCU space, which is the telematics control unit, which is an advanced version of track and trace. We have now gone into the e-CAN solutions, which are there for the EV vehicles.

The FY '27 focus for telematics will be very strongly on the aftermarket of telematics. That's a new vertical that we are opening up, and we hope to double our telematics revenue in the next 12 to 18 months riding on these things, besides of course waiting for the full-blown ADAS opportunities to open up.

Okay. Sir.

Thank you, and all the best for upcoming quarters.

Thank you, Vijay.

Yeah. Hi, team.

Great set of performance, and great to see guidance upgrade since last two, three quarters. A couple of questions on the balance sheet front.

Debt seems to be as per the guidance, and so considering the capex, we will be doing around 220, 240 crore this year. How should we think about the capex number for the next 2 years?

Will we see an absolute increase in the debt on the balance sheet? Also, we have some inorganic plans also on the cards.

Can you just guide us on that front? A related question is, does the finance cost for this quarter, 27 crores, become a base now for the future quarters?

How should we think of it, because this has come as a bit of surprise. Also the depreciation figure is also quite high.

If Mr. Thakral can throw some light on that as well.

Thanks. Yeah.

Yeah. Answering your last of the observation first, so as I mentioned in the opening speech, which I think you must have missed, regarding the depreciation and finance cost, it was mainly on account of amortization of the right-of-use of assets because of start of our lease on couple of new I would say facilities.

Of course, some part of it is because of capitalization, but majorly because as per accounting now, when you capitalize as a ROU, it comes under depreciation and the lease finance cost. However, considering the way forward for finance cost, as per the existing term loan, you can take a quarterly figure of anywhere between around 25 to 26-odd crores for way forward per quarter.

Of course...

That will be the actual cost you're saying, the actual interest what we're going to pay?

Yes.

Okay.

It was similar figure which was there in, I would say, Q2 of the financial year. Of course, answering to your loan and basically the debt position, of course...

Uh-huh,

sir. This 27 crore figure which we had, there was what, 3 crores of this Ind AS impact?

2-odd crores, 1.5 to 2-odd crores of Ind AS impact in finance cost, and maybe closer to 2.5 to 3 crores in depreciation. With respect to your debt query, considering the existing structure, of course, whatever the yearly repayment is there of the existing term loans, which are majorly on account of acquisition financing also, I think in the next 3 years, it is getting repaid in full.

As far as say any new organic, so as of now, nothing is concrete, and as and when if something materializes, we will definitely communicate in due course of time. To your last observation, yes, with capex, I would request...

The capex. The capex, yeah.

I think we continue to believe that the annual capex for organic growth should be anywhere between 150 to 200-odd crores. I think it would vary across subsidiaries, but I think the company is sitting on enough internal resources and free cash to reinvest into the organic growth of the business.

As Ankit mentioned, if there are any inorganic plans which become concrete in due course, then we will see how to leverage and balance the debt versus internal accruals accordingly.

Got it. Got it.

Sir, this 16% EBITDA margin aspiration, is including other income or excluding other income? Generally, we give excluding other income, if I'm not wrong.

Yes, we communicate all our EBITDA numbers including other income.

For FY '28. Okay.

Okay. Okay.

Got it, sir. Thank you.

Yeah. Thank you.

Sir, congratulations on great set of numbers. Sir, just only one question of the aftermarket, the growth has been always aspirational to grow beyond 20%, but we are not able to basically scale up that aftermarket.

Can we see that happening in coming year?

Sir, Apurva, thank you very much. I completely agree that the coming quarters, you will start seeing a further accelerated growth in the aftermarket.

Having said that, if you were to benchmark the other peers in the auto component industry, actually most of them are delivering a growth anywhere between 7 to 11% for the 9 months. We definitely were in that bracket almost about three, four quarters ago, where our growth was also in single digits.

I think with the external interventions, with completely redefining what and how looking at the secondary pull in the market, we've been able to have an accelerated growth, and we reported a number of 15% growth in the aftermarket. I think we are on course to achieve an further enhanced growth.

As I mentioned, I still continue to give the guidance of a 20% growth in the aftermarket would definitely be achieved going forward in the next year.

That's good to hear. Where we have set up a software center, Shift, where do we stand currently and what is the role of that venture?

What are we trying to achieve? Because we have set up various subsidiaries in China and everywhere.

Just to get into it that where are we heading towards for that?

Maybe I request Vikas to just give a quick update on the Shift facility, and maybe if Sunil, if you want to just give a quick download on the China resource center. Thank you.

Thank you, Apurva. As far as the Shift center is concerned, we inaugurated it in October 2025 only with a bench strength of 25 software engineers, our first entry of Lumax Auto Technology into such a space because of the human capital of software being based out of southern India.

Shift has got two very clearly defined focuses, the results of which are beginning to be visible after two quarters, where they have already lent robustness in terms of the software resilience and in terms of the electronic content to few of the joint ventures that we are operating in India right now, where rather than leaning on a overseas support, we have managed to indigenize it on the India side inside Lumax. Second, there is a substantial new business that is getting incubated inside Lumax Auto Technologies standalone entity right now, the details of which we cannot disclose, and we'll be happy to share it in Q2 of the next financial year when it gets into SOP.

It is wholly being driven in terms of the software management by Shift. Thirdly, Shift on its own has initiated OEMs for two POCs that would be running on new-age EV-centric products.

Now this is again a initiative which is being led by Shift directly, and that is something which they will be focusing upon. Shift will have two basic functions: number one, to give resilience to the existing joint ventures and the standalone operations of Lumax Auto Technology in terms of the electronification and the software content, and second, drive their own revenues.

More about Shift, we will be happy to share with you in terms of the next exciting news that comes. On the China office, I will request my colleague, Sunil, to please brief you about it.

Thank you, Vikas. Thank you.

Good afternoon. Just wanted to update on the China office.

The purpose of China office remains the same. We have put in the staff primarily to look at new tooling and development as well as manufacturing automation, etc.

The primary focus will remain. As a group company, we also have signed TAs with few companies, and that has already turned businesses actually.

We have won a ambient lighting business for Maruti Suzuki, as well as some of the premium cup holders and mechanism parts, which we are developing with China assistant. They have already turned into business and will continue to grow as we bring in more premier segmentation into cars.

That's brief about China.

Great to hear of all these things. Only last thing on the Greenfuel side, the content per vehicle, which going forward was going to expand, can you throw some light on that aspect?

Of course, I would request Mr. Akshay Kashyap to come in and maybe speak about increase in the content per vehicle.

Yeah. Thank you very much for that question.

As the CNG car market continues to grow. Today, our content per vehicle is about ₹3,200 per vehicle out of 11,500 as an opportunity.

As Mr. Anmol had mentioned, that on 18th December, we inaugurated a facility of a localized ferrule-less technology of fittings, which every car uses, and is an approximate content of ₹3,500 more per vehicle.

We believe and we are the only first company in India to localize this kind of technology, and therefore, we believe we've already got the order for the Celerio, and as we move forward, we are looking to get more of the schedules and visibility on the other vehicles. That will significantly ramp up our content per vehicle from 3,200 to almost 6,700 per vehicle, with the caveat on the models we are in.

It's great to hear. Yeah.

Over the period, that content per vehicle...

No.

Thank you.

Thank you.

Yeah. Hi, thank you for taking my question.

My question was basically on the IAC part, where we have seen the new launch of XEV 9S and the 7XO. Just trying to understand what kind of content value increase will we see in this new models?

I would request Mr. Sunil to come in and maybe explain you about the content per vehicle of these particular two models.

I think the content increase if you look at between 700 and 7XO, the content is not really increased because some of the products which are changed is more like bringing the bigger screen. It has not affected our portfolio.

We have added some additional premium components to both of these models. Content per vehicle may not increase more than say ₹1,500 in terms of that.

Because even on a 9S, we were already producing these parts for 9e. We have got some additional content, as I said.

Overall, the volume of EV because of 9S introduction will go up. Also, there is a upward-looking statement from Mahindra to boost the capacity of 7XO.

Okay. I think previously they've mentioned about 700 content is higher than the EV is.

Is it something like that or EV's content is higher than the 700?

Mihir, with respect to the overall manufacturing and thereby integration of all the other parts, I think XUV700 content was slightly maybe on the higher side. However, with respect to as and when the more and more that premiumization vehicles are being manufactured by Mahindra, this content per vehicle surely, but slowly will definitely increase over a period of maybe 18 to 24 months.

Yes, for a single particular quarter, that impact may be too low to be visible.

Okay. Okay.

Second one on this, in terms of IAC, are we able to tap into other clientele like for selling out more products to Maruti or entering into Tata Motors? Any development there?

Again, I would request Sunil to come in and maybe.

Yes, we have secured some future business for some of the upcoming programs for Maruti Suzuki. We are also looking at expanding our presence in the CV space besides the Volvo Eicher portfolio we have today.

We are in discussion with some other CV manufacturers to grow the content there as well. Tata, we had received the order.

That program is right now on hold, and hopefully it gets kicked off again. We continue to increase our market share in Maruti and other non-Mahindra's customers as well.

Okay. Okay.

Just lastly if I can squeeze in one more. My last question is on the Greenfuel part, where if we see the balance sheet of Greenfuel, the asset turn seems to be very high for the business.

Just wanted to understand whether is it something where we are buying out parts and just assembling it? Is it a assembly kind of a business or some color on that?

Yes, as we explained at the beginning of the financial year also, this particular business is an extremely asset-light business because most of the parts, I would say, are being procured from outside, some of it from as an imported content also, and are getting assembled internally only. However, with respect to this new product line addition which we have just recently done with respect to this ferrule-less tubes and fittings, we have made certain capital investment, maybe closer to around 8 to ₹10 crores for this particular financial year, that has enabled this particular SOP.

With respect to going forward, apart if you compare with maybe the other business divisions, this particular entity, Greenfuel, continue to be asset-light and better than, of course, much better than the company's overall average ATR.

Do we look at backward integrating some components here ahead in the existing product portfolio also, or we'll continue as it is how it is going on right now?

Maybe I would request Akshay-ji to come in and maybe elaborate something about the backward integration of whatever the products.

Yeah. Once again, thank you for that question.

In our case, if you look at a few years ago, the import content was almost as high as 65%. We have already brought it down to 40 35 to 40%.

As we move forward, we are looking at localizing more products. Having said that, because our products are very safety critical, there are certain parts that are not produced in India at the moment, and suppliers are not available, those will continue to be imported.

As Mr. Thakral explained, with the localization of this new technology, we will be investing more into expanding that.

Therefore, when we look at our overall revenues, the import content will become much lower as we go forward.

Sir. Thank you.

Thank you.

Yeah. Hi.

Thank you for taking my question. Sir, can you provide some more details on the others revenue segment?

This seems to have grown quite a bit this quarter.

Maybe with respect to the customer-wise, you may be talking about it?

Customer-wise also and product-wise also. It's about 110, ₹111 crores this quarter versus 65 crores in Q3 FY '25.

So...

It was nothing, but maybe around 45 to 50 crores of tooling and design revenue which was done by the IAC entity in this particular quarter, which was not there in Q1 and Q2. Normally, these tooling sales and whatever they happen in the H2 of the financial year, so that is why you are seeing in Q3.

However, if you compare with, of course, the 9 months with respect to the overall last financial year, I think the percentage is more or less in the similar range.

Understood. What would be the profits from this tooling revenue this quarter?

Almost more or less in a similar region of the overall company's profitability.

Okay. Understood, sir.

On IAC, M&M has announced a new greenfield capacity in Nagpur. Are we engaging with them on this, and are we looking to invest in Nagpur for the same?

I would request Sunil-ji to come in and maybe elaborate about it.

Again, thank you, Ankit. Obviously, we have been closely working with Mahindra.

At this point, I think the decisions are very preliminary stage, I would say, but we are in discussion with Mahindra in terms of what kind of acreage or square footage of building we need in case we have to set up a supplier park kind of situation in Nagpur. I would say it's a little too early, but maybe we'll shed some light maybe next quarter on this.

Definitely, we are in talks with Mahindra in terms of setting up new plant in Nagpur.

Sure. If you could just provide some more details on the ambient lighting business with Maruti?

I think you mentioned before.

This particular ambient light business we got because of our collaboration with a China partner, and it is for a upcoming program code named Y2V. That has really given us a good way to get into ambient lighting with Maruti.

Sir. Thank you so much.

Okay.

Thanks for the opportunity again. My question is again on the finance cost.

Last year, our debt was around 770 crores, excluding the lease liability part of the borrowings. Today we are at the same number almost.

While our finance cost should be around say 90, ₹95 crores for the year, what is the interest rate on the debt for us?

I think as I explained at the beginning of the call, finance cost for this particular quarter, we are seeing an upwards of around 2 cr, which is basically on account of the lease financing which is done on the basis of the right-of-use accounting, because nowadays when you're taking a new facility on lease for a longer period of time, you have to account for that lease or liability, and the part of it comes under finance cost and the remaining portion comes under the depreciation cost. That maybe certain retrospective impact has come for this particular quarter.

However, going forward, this finance cost is, considering the existing debt structure and whatever the repayments are being done, this finance cost is expected to settle anywhere between around 25 to 25.5 cr for a quarter.

Correct. What should be the interest rate or average interest rate on our borrowings then?

Again, on the long-term borrowings, it varies because most of the debt has been taken on the acquisition financing, and whenever any debt is on acquisition financing on the purchase of shares, that normally comes at a bit, I would say, higher basis points with respect to the traditional borrowing. On account of traditional borrowing, the average debt may be closer to around 7 to 7.5.

However, with respect to the acquisition financing, it is closer to 9%. On the short-term working capital, and again that it varies from bank to bank, however, average cost of that is again closer to maybe 7

to 7.25%. 7 to 7.25%.

Okay. Understood.

Yeah. In terms of taxation, will we be back to the 26% tax from next year?

Yes, there was a one-off again in this particular quarter. If we even exclude that one-off, the ETR comes out as 26-odd percent only, and which will continue way forward, too.

Also the minority part was higher than what was discussed in the previous. The last quarter was 14% of PAT was minority.

This quarter, it is around 24% minority as percentage of PAT. I think for the full year, you had guided somewhere between 15, 16%.

A little confused how to understand this minority figure because it takes out a substantial part of the PAT. Any guidance would you like to share with us?

Again, this thing I explained in my opening speech. Whatever the gain in the deferred tax that has come because of increasing the overall minority percentage, because this reversal is on account of the merger of Greenfuel and SPV and Greenfuel being a 60% subsidiary.

That is why the 40% impact does come in the minority interest. However, excluding that one-off, the share of minority even for this particular quarter is at 16% only, and we have given the similar guidance going forward also, minority to continue between 15

to 17%. 15 to 17%.

Got it. Thank you.

Thank you.

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