Thank you, Hitesh. A very good morning to everyone present here.

On behalf of Elara Securities, we welcome you all for the Q4 and FY '26 conference call of Schneider Electric Infrastructure. I take this opportunity to welcome the management of Schneider Electric Infrastructure, represented by Mr.

Udai Singh, Managing Director and CEO; Mr. Omkar Prasad, Chief Financial Officer; and Mr.

Mohit Agarwal, Head Investor Relations. We will begin the call with a brief overview of the management, followed by Q&A session.

I will now hand over the call to Udai sir for his opening remarks. Over to you, sir.

Thank you so much, and very good morning to all, and thanks again for joining us. I'm sure that you got sufficient time to read the material which we had shared yesterday.

As planned, I will actually take you through as to what the company has been. The first thing which I want to start off with which you see on your page two is something which we are collectively as a company very proud of is a selection and recognition by the IOD in terms of awards which we have got, two in a row.

The first one which we got in the later part of last year, which was the Golden Peacock Award for ESG 2025 for Excellence in Sustainability. That was something which we got last year in October-November.

Then again, we have proven the excellence by winning the Golden Peacock Award for the one of the most innovative products and services in 2026. This is for what we are very proud of in sharing is for EcoStruxure XR Operator Advisor.

This is a new offer, which is one of its type, which is very beneficial to the end users who are maintaining assets at multiple locations of industrial sites in terms of maintaining it in a much better and more efficient and more defined way. Now I would like to take you and again run you past as to what your company's vision and mission is.

The vision stays as what we are very focused on is leading the new digitalized energy world by offering to all our customers and partners the fully innovated and connected products and solutions, which are ready for the then-emerging power distribution's elevated expectations. We do this by using our balanced business models, superior quality and efficient supply chain, which keeps our growth and profitability resilient and sustainable.

Now if you notice, there is a tag which we are talking about now, which is Advancing Energy Tech. Now we proudly state to all our customers and stakeholders that we are their energy technology partner wherein we electrify, automate, and digitize each and every industry, any business, homes, driving efficiency and sustainability for all.

I would now like your attention on page number four, which is a broad market outlook which we see for the company in times to come, which is how is India faring, and because recent times everyone of us is aware the global headwinds which we have been facing and how do we see for the company the situation ahead of us. Now it is a mix of some tailwinds, which you read at the top left, where the GDP forecast for the country actually is still about 7%.

The capex planned and which is getting rolled out by the government is about 11.5% higher than what it was last year, which is typically about 12.2 lakh crores. The power central utilities have been actually having a lot of declaration on the financial outlay which they will be doing in FY '27, which is roughly up by about 20%.

Now these all indicators, they open up good avenue for us for the company. We should be also conscious about certain headwinds which we see: forex fluctuations, the government political uncertainties, and also very importantly, the raw material.

If you typically look at the raw material has gone and changed, and it has moved northside quite a bit. Just to give you, copper, aluminium in last 1 year, I'm talking about a year which is between April '25 and March '26, has seen a upward movement of 30% plus.

Is steel, which is another component which we use extensively in our products, which has seen close to 10% increase in last 12 months. These are certain headwinds which we have to encounter and recognize while we leverage what is the opportunities coming across and which are stipulated by the tailwinds which I said.

Now what we have also trying to tell you as to these four segments which we have highlighted, which are namely energy transition, transportation, the digitalization driven by AI, and manufacturing, what does it open for us? I'll spend some time in terms of explaining to you to best of my effort as to what this offers to us.

Starting off with energy transition. India is sitting at a very sweet spot.

We actually have come to a per capita consumption of about 1.5 units per year, which is likely to almost go up by another about 30% by year 2030, which means that consumption will go up roughly at a CAGR of about 12% to 15% in times to come, which means more power, more generation, more distribution, and these are the two areas where we typically operate. Now even if you look at the non-fossil fuel where the country had a target of 500 GW, and I would not be having any hesitation in stating that India is moving at least about 8 to 9 months ahead of this target.

We, as we speak, we are close to about 280 GW already done. What also comes alongside is the energy storage system based on batteries, which is typically about 1, but for the best of estimates of the industry, this is likely to go up to 200 times, to about 230, 210 by 2030.

Now this offers, and as I think you might have read, sometime later there are slides where we have an offer on the energy storage system also. The point which I am trying to make that energy transition by itself offers quite a good opportunity for your company.

The other side which I want to take is transportation. EVs are picking up.

The government has a penetration plan of 30% by 2030. We have started moving in that direction, although there are turbulence in between and certain quarters, but we are on the path.

Now this alongside Vande Bharat trains, which today we have about less than about close to 100 trains, 80 already running and then another plan. The overall objective of government is about 400 trains by 2030.

I'm again very proud to say that most of these trains are being run by the equipment which are made by us. Other thing which I also want to speak about is manufacturing.

Manufacturing contribution to GDP is going to go up by 5% in 5 years. This is a huge, huge opportunity for us.

There are a lot of schemes which have been rolled out, as you may be aware. The PLI, the rare-earth corridors which has been made, the ECMS, the ISM 2.0, these are all facilitations being carried out by Government of India, which will give a boost to manufacturing under self-reliance program of the country.

Therefore, the manufacturing will enhance. When manufacturing enhances, it requires power distribution and power management.

That's where we work upon. The last is, of course, data center is a known fact.

Data centers are going big. We, with the best of industry estimates, are sitting close to about 1.5 GW of IT load.

There are set of people who say that we should be close to about 8 GW in by 2030. This is a reality, because what we understand is there's about 3 GW which have been already in a very advanced stage of sort of getting signed up and getting rolled out in next 1.5 to 2 years' time.

This is going to be there. Where we see we do a lot in the entire value chain of data centers, and that is quite a positive thing for us.

We have certain actions which we have undertaken: how to leverage these tailwinds which you see, this segmental growth and nuances which you notice, and also how do we defend to our level best ability to counter these headwinds which are coming in front of us. I want you to go to slide six or page six of our presentation or the deck which we had shared, where we are extensively proud to share as to what we have done in many segments.

I start off with our core sectors, which are infrastructure, metro, energy, and chemicals and metals, where with our products and solutions, we are present quite a good places. Like if you see the first tile, which is infrastructure, we are supplying lot many solutions, which are the primary and secondary distribution along with the digital software and stack for one of the smart cities in North India.

We speak about metro. These are the full distribution for the entire line which we are doing in a city in Western India.

The energy and chemicals is something which has been very close to us, like metals, where we are trying to give transformers and the medium voltage solutions in metals, which is our core. I want you to turn to page seven, where we are talking about what we are doing in the booming data center range, where we have supplied this in one of very established, respected player, where we are trying to do in terms of either supplying power transformers with fully digitalized solution or giving high-end relays, which actually make the infrastructure site much resilient and much active, or we are modernizing at many places by uplifting the technology with the present install base has.

This is being done because the customer really believes in us and in our solutions and sees the merit which we bring in terms of modernization which we do in these areas. I would like to take you to as to what we are doing in semiconductors, in renewables, in other areas which are the future-ready segments.

Now semiconductor, and I'm sure I'm not the first one to share with you, but India is at inflection point. This industry is really going to drive, in my opinion, in times to come.

I'm so happy to share that in Semicon, we have been engaging with the people who are investing big money in the country, and we have been there right from last 2.5, 3 years, and our success has been continuing. We have been supplying the equipment, the softwares which control operation, which gives advisories in this area.

The one which you see in the left is something which we have given a digital solution to one of the customers in Central India. Then we have another success which we have under renewable space, where we have given the substation solutions, which are fully automated panels, which are given to manage the solar energy, to say.

Of course, we have another in manufacturing side where we are trying to do it with supplying high-end transformers which are fully digitalized and sensorized. Having said so, I would now request you to turn to page 10 wherein we just want to share with you as to how our brand has been performing, how is the brand of your company is being perceived by masses, by customers, by all stakeholders, and the efforts which we have undertaken in areas of CSR and sustainability.

Now March end and April first week was very busy for us because we participated in Bharat Electricity Summit in Delhi, which was managed by Ministry of Power. This is the place where we actually had displayed the offerings with the company has.

This went on, in my opinion, quite great. I was myself there for almost all the days.

We had about 1,000-plus booth visitors, which comprised about 300-plus customers who came, who witnessed, really gave those statements which reinforced our own confidence in us about how and what solutions have been giving them great advantage in terms of maintaining site more seamlessly. Thereafter, we had another thing which was an Innovation Summit, which we as a company organized in first week in Delhi again in Yashobhoomi.

This was a larger event, which was managed by us, where about 5,000-plus attendees came, 40-plus CEO-level people came in. We had about another 150-plus C-suite people came in, and they saw the entire strength of Schneider, the entire portfolio basket of Schneider, and which just proves that how do we have an extensive end-to-end capability of executing projects on time.

There were about 200 government officials which actually came in and saw as to what we can really do for the country in terms of building up infrastructure, which is highly digitalized, as I had mentioned in my mission statement. How can we drive that for them is something which was really appreciated.

We also called in about 500 students to really see and how do they know as to what companies in India are doing, and how they can get equipped for future because they are our future eventually. Now so this went on pretty well.

I would also have a slide which is on what we have done on the grid side, and this is a case which has been done you can find this video in Tube also where we have done in Tata Power Odisha, which is actually the west Odisha, they have two of them, there's a west and there is another one. This is something which came out where the customer testimony states that the Schneider solutions, which were proposed, supplied, implemented, and what benefit this actually is bringing to Tata Power as such in the state of Odisha.

I would just like to take you to another slide, which is the page number 13, just to share as to how we have been progressing on a charter which we have rolled out for ourselves in areas of ESG. If you see, we have certain tiles which we have captured, which are very relevant, pertinent to ESG journey of any corporation.

The CO2 emission has come down by 83% in last year. 83% reduction we have been able to manage.

I'm so happy to share that 100% electricity sourced from renewables are actually with everything is renewable, either by on-site solar or buying REC bonds. There has been zero incident in four factories which we are running at the company.

The gender diversity, we strongly believe on gender diversity, and we have been able to take it to about close to 20%. That is by far, I would say that, is one of the highest in our peer industry group.

Skill development, I think you may be aware, but we are again so happy to share that we have 11 skill development centers in government and in which are state-run ITI centers, where we have been training youth, and we have trained 1,000-plus youth in last year. We have also gone ahead in this area in terms of electrifying communities.

We have distributed upwards of 3,000 portable solar lamps, which were given in areas where there was scarcity of power. Of course, as I mentioned before, we got recognized because of these efforts which we undertook, and we are also awarded Golden Peacock Award for ESG in 2025.

I would like to give you an update, and there are three pages which will speak about as to what we are doing new. Because we realized that we need to improvising ourselves by bringing in innovation, which are focusing on making customer site management better and improved.

The first one which we are talking about, and I would like to take your attention to page number 15, is a dry type transformer. Now dry type transformer, just for a simple explanation, it is a transformer which is casted.

We have a design, which is a global design, which is called Trihal. That is something which we do up to 33 kV class.

We have actually supplied close to 170,000 units worldwide across 100 countries. What specifically which this brings in is, if you notice, is E4, C4, F1 class, which is one of the, I would say, is one of the most stringent, more robust endurance class made in dry type transformers.

That is what we are going to bring in in Baroda, and we will start catering to especially areas like data centers, areas like metros, areas like commercial buildings, residential complex, hospitals, hotels, those areas. Another important element which I want to point out, and there are other things which are pretty technical, is that the compliance which this transformer has around seismic.

India is a complex country. When you travel from north to south, east to west, there are various seismic zones.

I do not want to make it and sound it more technical, but there are various levels to which the equipment and installations have to comply with. This transformer by far complies to the highest standard.

I would like to take you to this another page, which is page 16 on your deck. This is another element which India needs.

This is something which we showcase, and it sought lot of attention in the innovation hub which I just described sometime ago, which is something which we call as One Digital Grid. Now in very simple laymen terms, this is a tool which advises, guides, and interacts with the discoms in terms of telling them how do they make the grid work most efficiently.

What it actually does using AI is it not only captures as to where the fault is, how do you bring it back, what is the least cost of bringing it back, which asset geographically is placed where, how to attack it. Then all of this, which actually does the planning: how do we do, how do we modify, how do we scale up, how do we scale down.

The operations and the asset management, which is very important for keeping the SAIFI, SAIDI down, is something which is done very well on this. This is as a flexibility, this is available on cloud as well as on-premise, as we call it.

This comes up with a deep AI-based modeling. It also differentiates itself in terms of having a chatbot.

If some operator, and this is extremely unique, the point which you see which we are calling as Grid AI assistant, wherein, if you like ChatGPT, if somebody wants to really pose a question to the software or the system, they can just ask and get answer to the best of breed answers which can come out, and it can advise the operator who is not perhaps as conversant as he ought to be. Now I would also like to take you to the last of the offers which were launched, which are energy storage for smarter energy future.

There's one thing which you remember I discussed sometime ago where we are sitting close to about 1 GWh and we are expected to go by 2030 to at least about 210 and about 240 GWh by 2032 as per the plan and the government quantification. Now if you look at this, what we have done and we are trying to bring in all solutions from Schneider side, which are either power distribution, power management, software, the structure, the design.

We are trying to give a combination of this, and we are working especially with all those clients who are really looking for a one of the best-of-the-breed solutions, fully automated, fully connected, which can actually help them to unlock the peak shavings and the time of use of utilization, improvison of power quality, and of course, give them a power backup. This is something which we are trying to do, a new offer which is being launched.

We are trying to see as to now how do we secure business in this because demand is just going up. Now at this point in time, I'll stop, and I'll request my colleague and our CFO, Mr.

Omkar Prasad, to take you through the financials of the company. Over to you, Omkar.

Thank you, sir. Thank you very much.

Good morning, everyone. Myself Omkar Prasad, CFO of your company, Schneider Electric Infrastructure Limited.

I would like to give you the brief update on the financial performance for the 12-month and for the quarter four. I would like to bring your attention on page number 19, where we given the summary of the financial performance of key three KPI, which is orders, sales, and profit before tax.

As we see in the historical quarters, the orders growth was actually consistently very strong, and we grown year-to-year growth of 27.4%. The sales we have grown 9.6% year-to-year, and the profit for the year is 10.1%.

Bringing to your attention to quarter four, before that, I want to give you the external perspective which you know better than me that the Q4 was not normal quarter. It was completely unprecedented in terms of the external geopolitical reasons and also due to the commodity market because of the such dependency on the geopolitical happened.

In spite of that, the order we continue to so rhythm, and that's why if you look at last year, the growth was good, and then we continue to at least keep the momentum on. We maintained the growth while very moderated around 1.4%, but together we try to make so that we should not degrow.

That's why if you look at the order overall, the backlog which is there is around 50% up from the last year. That's so the complete robustness in terms of what we have on the hand to execute in the upcoming quarters.

Sales was quite modest. We able to have the flat sales in spite of so much dependency on the customer.

Our product goes to the company who actually have a capex-intensive engineering company. They also had a dependency, and they had a impact because of this geopolitical clashes.

There are many orders we've seen in our Q4 execution that the customer intentionally or you can say because of dependency on the LPG, dependency on their processes, they are asking us to hold the dispatches and shift to the next quarter. In spite of that, we able to have 590 crore of sales in this quarter.

Profit, 6%, I will give you the more brief in the next slide and give you what actually the lever which impacted our profit in this quarter. I want to move to the slide number 20, where you have the P&L for the 12-month.

We discussed about the sales. Coming to the gross margin, the gross margin when you look at, it's slightly drop.

If you look at in terms of margin, it is close to 1. 6%, 1.5% drop.

Ideally in this two things: one is the drop is coming completely because of the externally commodity impact, and there our company also got impacted as we remember the last quarter we discussed that we had a inventory hold. Q3 was not impacted much, but Q4 we see good impact because of the commodity.

Also the mix of the revenue, the way we have the service mix, then we have a transactional standard product, and then we have projects and equipment supply. That mix also has impacted the gross margin.

Other expense, I will talk about more employee while you see the growth of expense in 11.6% against the sales of 9.6% in both way. I just want to say that employee cost 11.6% is the two-part.

One is from operation, which is close to 9% increase, and then we also have increase in head count because of some technical engineering staffs being deployed to support global. We don't keep this cost here, which recharge.

So 11.6% is not exactly looking from your 9. like-to-like sales.

There's some recharge happening here, only employee cost is increased 9% like-to-like. In other expense, 11.5%, while you see this number percentage-wise, but if you look at overall percentage to sale, 12.2% versus 12.4%.

If you follow the last year's financials, there was the impact in earlier years on account of the ECL in the bad debts and all, which we recovered last year very good. That was a help us in other expense.

This year, we also realized we are not impacting any bad debts. That's a good news.

Realization in terms of what we had a bad debts in earlier year in the last year versus this year, there is a delta. There's no provision, we can't realize more than provision.

That's why you see in other expense like-to-like little bit increase in this year, which is more I will say it was one of last year. Rest I will not brief because it's more in line with our planning in terms of capex, depreciation, and finance cost.

Exceptional cost, just I want to bring your attention in Q3 when we updated you that there was a labor code impact, and we restructured the salary and all done in the month of December. That was more on basis the draft code.

The impact was taken in Q3 was around 24 crore. When we restructured and completed the draft final, the impact is coming only 14 crore.

That 14 crore in exceptional item what you see here is because of labor code. Last year, 18 crore gain is coming because of reversal of the direct tax litigation where we moved and opted Vivad se Vishwas, there was a reversal of interest cost in exceptional item.

I want to move into the slide number 21, where you will see the Q4 performance. We discussed about the sales and margin.

Margin largely as we said that's largely impacting because of the commodity. Almost 2.5% it's coming from commodity, and rest is coming from the sales mix.

Now this quarter what is happening because sales and then also there's overheads, there's a phasing impact. When I say phasing impact, then throughout the year what you saw in the previous slide, while it is showing the right trend, but Q4, because of the phasing, Q4 we do all the other cost booked in year-end basis, and sales we've grown only at flat piece.

That's why you see only a phasing impact. It's very temporary.

When you look at overall year, it's get catch-up. It's not something increased the cost.

That's not the case. The cost is like-to-like in absolute number if you look at.

It's not significantly increased. If you look at percentage, yes, because sales has not grown in that way because of that external market conditions.

Rest is all in line that we plan. The depreciation, if you look at increase in Q4, is largely you all approve the capex to invest, and we started capitalizing from Q4, end of the Q4.

Then impacting depreciation is coming. That's all.

I now hand over to our moderator to open for the Q&A. Thank you.

Good afternoon. I have two questions.

My first question to Mr. Singh is he wants to understand a forward guidance on what type of specific levers are you prioritizing in FY '26-'27 to expand Schneider's footprint in smart grid and digital session solutions, and to accelerate renewable integration and manage risk from regulatory transactions and global supply chain volatility?

That's my first question. I'll ask my second question after this.

Thank you.

Thank you for asking this. I don't know whether you are aware, but I think the first solution which is towards modernization of grid in the country is by us, which has been running in one of the South states since 2012.

I think what we see as where India is moving to is driving robustness and modernizing grid, and that also has become very pertinent and important now because the amount of integration of renewable power is likely to happen on a grid which has been conventionally very robust in the country. The second aspect which is extremely important where we have a right solution is the multi-directional flow of power or energy between multiple widespread sources.

The scheme which has been launched where people are putting rooftop solars and other things which are eventually leading them to behave like what we call prosumer, which buy and sell power both. We have softwares which we call as microgrid solutions, which actually takes care of that flow.

It is nothing, but it really showcases you the physical flow of power and how do you manage it. That's one solution which we have.

Another solution we have on the software which I was explaining you, if you might have understood, is the One Grid platform, which integrates three, four elements which comes together on the grid solutionizing, which is primarily a SCADA or ADMS solution, or we have a DERMS solution, and DERMS is nothing but how do you manage a distributed energy resource, and the outage management system and a maintenance system. All this actually is likely to happen, and as a matter of fact, government by itself is trying to set up now training centers in the country where the intention is to train the discom people as to how to perhaps upskill themselves in terms of using the grid related tools to manage the grid more efficiently.

We are also in process of setting up one of the such skill center in North India which will be used by PFC to train people.

My second question to Mr. Prasad is, again, a forward-looking one.

Just want to understand what type of capital allocation and risk management frameworks have been applied in '26-'27 to balance dividend payout with funding for grid modernization projects, any hedge against forex and commodity volatility, and any liquidity buffers that will be put into place to sustain for the large-scale infrastructure contracts? Thank you.

Yes. Yes, sir.

Two things. I think I will take first the coverage against the hedging of forex and commodity.

We have a both. As a policy, we have a certain policy.

No one cover the 100%. Commodity hedging is completely covered up to the 50% to 60%.

Forex hedging for any dependency on the import, we do two types of hedging. One is also the pure hedging particularly on order-by-order, and then we also have a net AR and AP forex hedging.

That is covered. What you see the impact here in the P&L, and that's why I see that impact is lesser in our P&L because the hedge benefits also has given some good positive in the GM.

Otherwise, impact would have been more in the quarter four. The second thing you are asking about more on large infrastructure projects.

Mostly what we try to do the large infrastructure project, which is more than 6-month delivery period, we always negotiate with the customer with the some variable contract. What it means we make sure that we give the price today, but if price they go up, we try to negotiate that differential has to be recovered from the customer.

That kind of the mostly these apply in the large infrastructure project, which takes more than year and all. That's process already there.

What you see here, but if you look at in terms of our contracts, it's a mix. We do have we call big project, more than 1-year execution period.

That's there. The impact which you see here, it's more the contract which was supposed to be delivered and booked in somewhere in the Q2, and we have to deliver in this quarter.

That impact is more, which was the delivery period is less than 6 month.

Thank you.

I hope I answer it, 360-degree question. Yes.

Yes. Yes.

Thank you very much, and best wishes.

Thank you very much.

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

Sir, during the quarter, the revenue growth was almost flat, I think in terms of around 1% growth. In the presentation, we have mentioned that delivery deferrals and external factors impacted the quarterly sales.

Could it possible to share more details on this?

Sure, sir. If you look at the revenue, as we said, you see our backlog was very strong.

It was not a challenge in making the delivery just to customer push and get the hit in the quarter, okay? We are trying to, first of all, deliver wherever we have a material ready.

Second, the customer is also willing to pay and take the delivery in this quarter. What we observed, many of the customer who had a dependency on their end customer, ultimate use, they also started saying that because of the other dependency, and they also got impacted with this crisis, they are asking us to hold the deliveries.

That's why the revenue has been moved from this quarter to next quarter. When I say external factor, that was a very conscious because we also don't want to take every hit in this quarter.

We only prioritizing the customer delivery where the material and everything is ready and with the all impact, which can impact less rather than get all the deliveries made and then get the higher impact. That was the idea.

The company having very well to manage their customer expectation and trust at the same time, making sure that we get minimum dent in this quarter.

The delay from end consumer point, are they private companies or is it that they were public sector undertakings or SEBs?

Sir, in earlier call, I think we clarified in terms of GTM. We have a different GTM.

If I'm going through the EPC or if I'm going even to large infrastructure, the company, both way it is impacted. Largely it's a EPC because we go to EPC and EPC has a end customer, there I have a larger dependencies.

Okay. Do you think that will get rectified in this quarter?

Finger crossed, sir. I think that's why we are looking at, and I heard a news yesterday again that there's again some crisis is going to come from US and Israel, I don't know.

That's why let's keep the finger crossed that all this essential LPG copper issues are getting little solved. I hope that we'll recover it in Q1.

Last question from my end. Sir, Udai sir just mentioned about the solution in battery storage energy, that segment.

Do we have that technology or is it that we will get it from the parent? How are we placed in that?

Is a good question, sir. Thank you for asking this.

We do not make batteries, okay? The rest of the items either we make by ourselves or we are trying to partner with somebody who can give a piece of it.

Essentially, and battery is, I would say battery is something which is also the technology has been evolving. With the advanced chemistry cell technology has been actually being worked out.

We are not a master in making battery by ourselves for such large-scale stationary usage. The entire portfolio which you see, which comprises of many things, which is AC and DC power equipment, and alongside it, which was a software-led arrangement which manages this flow of power, is something which is done, which is inherently our own to a large extent.

There is some alliances and partnership which is happening on some conversion systems to make the entire offering done. Long and short answer, we are making the entire system.

We are getting batteries from somebody who's actually good in making batteries because battery is not our forte. The rest of it is primarily ours.

The entire solution design is Schneider.

Sure. Thank you so much, sir.

Hi. Thanks for the opportunity.

A couple of questions from me. First is on the data center opportunity, right?

You spoke about the multiple products that we now have which go into data centers. If you could give us some sense of the kind of opportunity that you see from data centers in quantitative terms with all the products that we have, and we obviously also mentioned that 3 GW of capacity is kind of getting signed up for the next couple of years.

What sort of revenue uplift or order uplift, whatever you can share on that will help us quantify the opportunity better for the company?

See, data center is something which is incremental to us because of the rate at which it is going to go up. Now depending on location, depending on the arrangement, depending on the class, depending on the redundancy level of data center, the volume of equipment which we can supply to a data center typically varies.

Now we can supply the equipment right from the receipt of power at 132 kV and then go down to a level to what we call as a low voltage level, which is 415 V. Anything in distribution at multiple flows physically, we can do it.

Now to answer you whether is A or B is actually difficult because the design of these hyperscalers which they want to implement and roll out in India typically is different. The level at which they want to make redundancy, as they call it, is also different.

The requirements coming up by colos who make keeping in mind some arrangements which they tie up with these hyperscalers is actually dependent mostly on the hyperscaler design. It is nothing which can be quantified because of one basic fundamental reason that they are not alike.

Now, but what it promises is that in different formats, we will have something or the other for the company to really supply and leverage this data center boom.

Right, sir. Sir, if you could help us, of the current order backlog that we have, what percentage would be from data centers?

Maybe, if under control of my CFO, maybe typically about 10%

to

12%. 10% to 12%.

This percentage, how do you see that kind of moving with the sort of action that we're seeing on ground over the next couple of years?

Should go up.

Got you. Sir, final thing, if you could broadly quantify the amount of orders that have got shifted for delivery from Q4 to further quarters?

What is the broad quantum of the delivery deferrals that we've seen in this quarter?

About 10% to 12%.

I'm not sure we can take the numbers in this call, but I think couple of orders we can consider.

Okay. Okay.

Thanks. That's it from me.

Yeah. Sir, are you able to hear me?

Yes, sir.

Yeah. Sir, my first question is, your gross margin have deteriorated consistently from 39.1% in FY '25 to 37.5% in FY '26, and now it is 36.6% in Q4.

Multiple calls, the management has said mix improvement will drive margins. If you see, services has gone from 12% to 15% of the revenue mix.

If 300 bps improvement can happen in services, what produces this 160 bps deterioration in gross margins? Can you tell that when will actual margin recovery thesis happen?

This is my first question, and the second question I will ask when the first question is completed. Thank you.

Okay. Sir, the Q4, I'd suggest that don't benchmark with the usual gross margin because that was largely impacted because of many factors.

If you look at drop in the margin in FY '26 versus FY '25, when you talk about the mix, and services while growing, in services also, sir, we have a three component: we have a spares, then we have a recurring revenue like AMC, and then we also have a modernization projects where we say that either more on revamp where the grid we call as a brownfield projects. Mostly what happened, the third category is growing compared to other two.

The two has better margin than third one, which is modernization and revamp. Unfortunately, the last one, the renewal and brownfield projects, is also go as a capex model of many of the industry, and they again go for L1, okay?

There's a competition happening even in that segment is not based on, you can say margin very intensive. They are also the paying end users and the company decide based on the L1, what you call the capex model.

There while revenue is increasing of service, but when you look at a mix of even service within modernization, has actually margin-wise it's dropping. If you look the whole story, I think the revenue we are trying to capture and then we are improving the margin, we are working on all three way.

I think this, if you look at it in this year, which was unprecedented in terms of the commodity market, because this if you discount it, okay, and if you remove that, we are not dropped the margin. That's why we given a reason that when commodity even in this year almost if you close to 1% is just because of the commodity, which are cannot be benchmarked like-to-like.

If you remove that factor, the margin attention from the complete company side that we are focusing how to improvise and further bring some efficiency from the design and in terms of the obviously customer and negotiations on the customer. Like-to-like is not there, sir.

That's why you see.

Okay. Sir, second question is, you always position SEIL as a premium, technology differentiated player in EcoStruxure, GMSC, digital SCADA, BESS.

Udai sir was saying that we have also basically launched new products in the PPT, dry type transformer, and every other thing. But

electrical segment revenue share in the addressable market has not visibly expanded. Can you tell us how would we basically go about basically winning the market share and how are we going about basically translating this into commercials?

Because your commercials are not reflecting. Even my colleague who was asking questions on data center from ValueQuest, the management answers were very opaque.

Sir, it has been now nearly 2 to 3 years the management is giving gol-gol-gol answers. At least, from the investor community, we expect some clarity and some answers which are very straightforward.

Thank you.

Point noted, sir, to whatever I could hear. You were, unfortunately, not absolutely clear.

We try to tell as to what is seemingly possible and directionally. If we are not in a position to really quote a absolute and an exact number in percentage because the dynamic keeps evolving.

We keep on deciding things which are in favor of the company. Like for example, you said that there's a market share and there is a market, how much market share will it come.

We may decide in certain areas and certain operations and certain solutions not to chase the market because we are trying to also maintain the point which you pointed out in your question one, we are absolutely and equally sensitive about profitability. We're not chasing.

We are selective in certain areas. We try to chase and be the market leader in certain areas.

That's a combination, and that's what we do by managing product mix which also you mentioned in your question one. I and my colleagues from the management hear you.

Unfortunately, we will not be able to give you an absolute percentage number as what you have been asking. Sir,

Hi, management. So

Hi, management. Am I audible?

firstly, we understand that the commodity prices is not on our hand, and we are trying to do our best on profitability, and operating leverage will take a hit if commodities are going up. Sir, last quarter was a really good order inflow.

Going forward, what do you think we can do on our operating leverage, which will be also our margin? The whole year, this year, one thing that makes us wonder is our sales growth for the whole year, except for the December quarter, wasn't single digits Y-on-Y basis.

December was a good quarter where we were hoping that now we will see an acceleration, but it doesn't seem to be. Can you just highlight that what is now the next growth catalyst for us that the company's positioning itself towards?

Because we clearly are really good at what we're doing. Customers are loving us.

That's why they're rewarding us. Could you give us some clarity?

I take the two questions. I think you asked about the Q4 order intake.

On Q4 order intake, because of uncertainty in commodity market, we were very, very selective. We were only selecting the orders where we can get certain leverage in terms of whether I can realize the price even if the price increase, variable clause.

These are the certain controls we put into when we booked the order with the customer, negotiate with the customer. A sales in Q4, when we're booking the order, many customer was not very keen to pay based on the variability and all, okay?

That's the reason that we took that call, okay, let's hold it, okay? That's the reason you see that selectivity made the reasoning to have a low order booking in the Q4.

Operating leverage, sir, obviously this Q4 is pure seasonality, I can tell you. If you look at in terms of the numbers, I'm talking to the absolute number if you look at, is not that significantly increase as we are looking in terms of the percentage.

If you look at if my obviously sales grow and this operating leverage, it's a seasonality, and over the year, 12 month, you saw that it's making sense in terms of the percentage. That's only I can just want to clarify on the operating leverage.

On sales side, you are saying about the single digit in the three quarter and then quarter four was in double digit. This is again, we said in the earlier earning calls, it depends on the customer prioritization and since our projects are more engineering based, customer fat clearance and depending on their to give clarity and to dispatch.

Many things what happened things are getting deferred. While we have a very strong pipeline, but we also depends more on the customer side to give the clearance to dispatches.

When as far as if you ask me that as far the order is there, we will definitely execute it. It's just the customer giving clearance.

I just also want to tell you that in sales we are also very careful in terms of not on clearance, which also with the cash. We don't want to give open credit all the customers.

We are very mindful that when we dispatch, we have only a credential-based customer where we give open credit, otherwise we always try to make and secure the cash. The cash sometimes the customer delay in making the payment, so that's why we try to hold the also deliveries.

Those all actions we take, make sure that in the sales safeguarding the interest of the company that while we make profit, but also we should not lose cash, and same time, we should also keep keeping momentum on the revenues and all.

Thank you for the opportunity. I hope I'm audible.

You are.

Sir, what about our BESS offerings in the BESS side? You explained briefly, but just to get more clarity.

Apart from the battery in the BESS, do we manufacture everything in-house? Is it localized also?

Or we sourced from global as well?

Is a combination, sir. Like for example, the entire structure will be made in India.

The switchgear will be made mostly here, and then the few which we do not make, especially on the DC range, we'll get in from other sites. Is a combination.

Actually, it depends on the sizing of BESS system, the modularity of the BESS system, and the way we are going to combine them together. That will quantify the amount of work which will be done by us here and amount of work which will be asked, but we'll be sourcing it from outside.

Uh-huh.

Right, sir. What is our scope in a BESS project?

Let's say, for ₹100 project, what is our addressable market in BESS?

Sir, not a very straightforward answer because they are various, as I think Omkar was mentioning about it, the BESS go-to-market is slightly different. There are people who actually have been buying on capex model.

There have been people who have been buying on the opex model. We are trying to see as to which fits us best and with to which customer do we supply so that the continuity and our eventually the cash is secured in terms of getting it on time.

Is very difficult to quantify the market. What I can again say that in times to come, there will be a great need of BESS.

There are so many people who will start making BESS, and we are trying to create a niche for us by giving something which is two notches more than what actually is given by a normal BESS integrator or a supplier.

Sir, exactly that is what I was trying to understand, because there are a number of players who are talking about BESS capabilities and integration capabilities. How competitive would we be in comparison to those players?

There are 20, 30 players talking about presence in BESS in manufacturing or software. It is really hard to assess, compare competitive advantage that we have.

That is what the question is aiming at. Sir, are we looking at exports also for data center products?

Have we done it already? Have we bagged some kind of order for data center and exports?

We are exploring about the export piece. In terms of competitiveness, we are not the best, of course.

We are not the cost leaders because we really retain and deliver quality. The certain USPs which we drive is consistent quality and backed up by a advisory software, which makes BESS system operate and run more efficiently for longer duration of time.

Out of those 15, 20, 25 players, we are not stacked in top in terms of cost competitiveness. Then there are many customers who really come to us because of the other merits which they see what is coming up from SEIL.

Yeah. Thank you so much for really coming and asking these questions, which we love to clarify.

You can understand that we we at times are not able to really answer all your questions and cite you some numbers which perhaps you are interested in knowing, because we ourselves are perhaps not in a position to really give you an accurate number, to say. What we tell us what we tell you is is a directional number which your company actually is trying to work along and make it happen.

Thank you so much for for being with us in this call and hearing us out, asking questions, which were very pertinent and important, which gives us direction, and also sort of gives a gives a cue as to which are the areas which perhaps is is you are very inquisitive about. Thank you, and all the best for for times to come.

Thank you.