Good afternoon, everyone. I would like to welcome the management and thank them for this opportunity.

We have with us today Mr. Sorab Agarwal, Executive Director; Mr.

Rajan Luthra, Chief Financial Officer; and Mr. Vyom Agarwal, President.

I shall now hand over the call to the management for their opening remarks. Over to you, gentlemen.

Yes. Good afternoon, and welcome to this earnings conference call for discussing the results for the quarter and 9 months ended 31st December 2025.

We take this opportunity to wish all of you a wonderful new year with good health and happiness. Along with me in today's earnings con-call, we have our CFO, Mr.

Rajan Luthra, and our President, Mr. Vyom Agarwal.

I hope that all of you have had an opportunity to look at the company's financial statements and the earnings presentation, which have been circulated and uploaded at the stock exchanges. Innovation, value, and trust are the pillars on which ACE has built its market leadership as a reflection of our engineering capabilities and our deep understanding of India's project sites requirements.

The company has recently unveiled an extensive suite of new generation technology-powered equipment. The new portfolio includes intelligent tower cranes, passenger lifts, AI-assisted pick and carry cranes, advanced aerial work platforms, high-performance telehandlers, and a range of advanced material handling systems and robust construction equipment, reflecting ACE's sustained focus on new-age technology, driving performance, reliability, and safety across India's infrastructure and industrial sectors.

These machines offer higher productivity, enhanced safety, and more intuitive operation, which while ensuring reduced total cost of ownership for our customers. As India's infrastructure momentum accelerates, ACE remains committed to delivering world-class solutions that strengthen our nation's growth story.

Now to brief you on the financial performance for the third quarter of FY26: On a standalone basis, the total income was flattish on a year-on-year basis at ₹888 crores approximately with an EBITDA margin of 18.5%. The EBITDA of company grew by 2.48% to ₹164 crores as against ₹160 crores in the corresponding quarter last year.

The EBITDA margin expanded 74 basis points to 18.5%. The PBT grew by 4.28% to ₹151 crores against ₹144 crores and stood at 17%.

The PAT grew by 8.15% to ₹115.88 crores against ₹107 crores and stood at 13.04%. The PBT and PAT margins expanded by 96 basis points and 117 basis points, respectively, on year-on-year basis.

For the 9 months ended FY26, total income declined by 2. 3.21% year-on-year, reflecting the subdued performance in H1, and stood at around ₹2,373 crores.

Despite this, EBITDA grew by 7.15% to ₹458 crores with EBITDA margins expanding by 186 basis points to 19.32%. Profit before tax increased by 8.54% to ₹415 crores with PBT margins improving from 1 improving by 190 basis points to 17.5%.

Profit after tax stood at around ₹316 crores, registering a year-on-year growth of 11%, while PAT margins expanded by 171 basis points to 13.34%. From a sequential perspective, in quarter 3 FY26, operational revenues grew 15% quarter-on-quarter.

Operating EBITDA increased 16.28% to ₹128 crores, while PBT and PAT rose by 9.9% and 11.5% quarter-on-quarter, respectively. Margins reflect a 5.5 crores provision towards additional gratuity and leave encashment arising from implementation of new labor codes.

Excluding this, margin profile would have been even higher. The contribution of crane, material handling, and construction equipment segments stood at 90% of our total revenue, and we reiterated our market-dominant position while registering revenues of ₹763 crores, which has grown by 10% as compared to quarter 2 FY26.

The company recorded sales of 2,710 units in the quarter. The margins expanded to 20% and stood at ₹152.82 crores.

The revenue contribution of agri segment stood at about 10%, and we registered revenue of ₹89.44 crores. Our quarter 3 performance, along with the sequential improvement in demand as the year progressed, has reinforced our assessment that the initial softness following the transition from BS-III and BS-IV to CEV-V was temporary.

Demand stabilized in quarter 2 and returned to normalcy in quarter 3. Quarter 3 sales have been particularly encouraging, especially when viewed against the higher base of quarter 3 of last year, which had benefited from pre-buying of equipment.

Looking ahead, we expect timely project awards, improved on-ground execution, supportive policy measures, and higher government spending to create a favorable operating environment for the company in the coming quarters. The India-EU FTA and the proposed US deal at the rate of 18% tariffs are structural positives for Indian manufacturing, boosting both competitiveness and sentiment.

India is now better placed than key competing markets, especially China, and these developments are likely to reignite the China-plus-one strategy, driving manufacturing growth, which augurs well for us. Further, the Honorable Finance Minister's Union Budget 2026 reinforces a growth-oriented and fiscally disciplined roadmap for India's development, with a continued thrust on capital expenditure.

The Government of India has sustained its infra focus with capex spending growing at a CAGR of 19.4% over financial year '22 to financial year '27 budget estimates. The government has budgeted the capex spending at 11.5% year-on-year in FY27 budget estimate to 12.21 lakh crores.

The capex spend to GDP is healthy at 3.1%. Productive capex to create infra assets is crucial for amplifying productivity, which will further fuel economic growth, enhance global competitiveness, and accelerate technological innovation in the country.

The budget prioritizes infrastructure and manufacturing through measures such as the announcement of construction and infrastructure equipment scheme to promote domestic manufacturing of high-value and technologically advanced equipment. The proposed Infrastructure Risk Guarantee Fund and the development of dedicated freight corridors, 20 new national waterways, and 7 high-speed rail corridors as growth connectors.

An outlay of ₹5,000 crores per city economic region over 5 years has been proposed to support infrastructure development in tier-2 and tier-3 cities through a reform and result-linked financing framework alongside incentives for municipal bond issuance and continued support under the AMRUT scheme. These initiatives are expected to accelerate project execution, strengthen logistics, and drive sustained demand for the company.

With our enhanced capacities and execution readiness, the company remains well-positioned to capitalize on these opportunities, and we are optimistic about our medium- to long-term growth prospects. Also, we expect our top line to remain flattish during the current year with improved margin profile as compared to the last year.

With this, I would like to open the call for question-and-answer session. Thank you.

Hi. Am I audible?

Yes, you are audible.

Good evening, sir. My question is more on the industry side.

What are you seeing in the terms of the competition from the Chinese players? Are you seeing any kind of increase in their intensity in the terms of more import from China in the crane category?

We are strictly talking about the crane category?

Yes, sir. More on the construction equipment as well both.

Okay. See, Chinese players are reasonably aggressive.

There is no denying the fact. Before going on to cranes, let me just brief you a little on the excavator market.

Although we are not present there, I'm talking of the track excavators. In the last 5 years, they've taken up 20, 25% market in India on account of their predatory pricing and the credit terms and all they offer.

Yes, they are reasonably aggressive in terms of their pricing and their positioning strategy with respect to credit, and often they keep it so attractive and lucrative that customers get attracted. Coming on to the cranes: See, obviously the pick and carry cranes and let's say less than 30, 35 tons capacity, India is self-sufficient and we produce more or less all the cranes in India, and we are the market leaders there, and we face no problem from any Chinese company or any competition.

Yes, with respect to the bigger cranes, the truck cranes and the crawler cranes, yes, Chinese have been very aggressive in the last, I would say, 5, 7, 8 years, and with their pricing, again, predatory pricing and credit terms. When the Indian infrastructure is growing, Indian manufacturing, let's say the infrastructure construction market was growing, the crawler crane and the truck crane market manufactured in India remained subdued only on account of that the Chinese players were dumping at low prices at very aggressive credit terms.

Not out of place to mention that 4, 5 of the companies which were in the larger crane segments also shut shop in the last 4, 5 years. Whether it was Tata Hitachi, they stopped making crawler cranes in the last 5, 10 years.

TIL was in some sort of financial problem. Tadano in a joint venture in India did not start to produce even though they developed the cranes in India.

Kobelco stopped making the bigger cranes. The only was a pricing problem from the Chinese, and there's another one, ABG Cranes.

Looking at all this and because we were also in these bigger crane segments or heavy crane segments, we had filed for protection or what you can say, study in Ministry of Commerce and a proper DGTR, Directorate General of Trade Remedies, proper assessment happened and it was a public trial, you can say, and it lasted nearly 1, 1 and a half years, and finally duty was recommended on the Chinese cranes in the month of September. Unfortunately, for some good, bad reason, it has not been notified by the Finance Ministry.

Obviously, Finance Ministry was totally busy with their budget in the last 1, 1 and a half months. We have been trying to seek time from them as to the reason why it has not happened or if any additional information or anything is required.

Although there is a very clear order from Ministry of Commerce, DGTR, specifying the entire proceeding, which is public knowledge, it can be seen anywhere. That is the situation what it is today that the anti-dumping duties, which were the DGTR findings and ruling is there, but they have not been notified by the government, which should have happened in December.

Sir. Considering your opening remarks, it seems like industry environment is improving, right?

Considering both the cases, at this place, industry environment is improving, and on the other side, the Chinese competition is rising, how do you see the growth outlook maybe in FY27 and FY28, because we are having the capacity with us, right? What do you think about the growth outlook?

I've understood your question. You are mixing two things.

With respect to our core business of mobile cranes, of construction equipment that we manufacture in India, we have hardly any competition from Chinese.

Right.

With respect to a particular segment of that business, which is heavy cranes, cranes bigger than 30, 40 tons, there is competition. As it is, we are small in that segment because the Chinese have captured it over the last so many years.

We were trying to increase the manufacturing capacity capability of our company and our country by getting that order. We really do not face any problem or competition from China or Chinese aggression with respect to our core business.

There is no problem there. Everything is fine.

We are expecting growth there. Yes, last 1, 1 and a half years was slow, especially after the election results were a little not as per expectation, and luckily we were saved because of pre-buying happening of BS-III last year, I'm talking of last financial year.

This year was slow because a lot of pre-buying had happened, some extended monsoon, overall geopolitical plus, plus, plus, plus Mr. Trump and tariffs sentiment.

We were expecting some telehandler execution to happen from the government orders, it got delayed, reasons beyond our control. Obviously, the market last 8, 9 months, 10 months, we were able to not really increase our revenue, but now things seem to be on track.

The sentiment is very much there, and we are market leaders in our core segments. We do not face any threat, any competition from the Chinese manufacturers with respect to our core business, and we expect that we should be in positive territory year-on-year in this quarter and going forward in the next year.

Okay. With respect to the ramp-up, I just want to understand, right now, what is our peak revenue capacity that we have?

How fast do you think we can reach close to that number?

See, our current capacity is upwards of ₹5,000 crores. I think a little tweak here and there, it can go up to ₹5,500 to ₹6,000 crores.

We are at a revenue level of close to around ₹3,300, ₹3,400 crores as of now. What we feel and what we have thought and planned that by FY29 or latest by FY30, we should be somewhere between ₹6,000 to ₹7,000 crores.

Like I said, we already have a capacity of close to ₹5,500 crores. We are doing close to about ₹3,400 crores plus-minus.

Yes, we have capacity available for the next 1 or 2 years of growth, maybe more. As and when we see the opportunity that or the need to increase capacity, we will immediately work on it.

We have got ample land available. In the last year, in the current year, we bought land.

In the last year, we bought land. Now we have enough land, whether in Indore, whether in Faridabad, for our future expansion and hopefully, we can do it very quickly as and when required.

Yes, I do not see any foreseeable expansion in the next 1 year apart from a lot of modernization and automation, which we are focusing on. Yes, in saying this, I would just like to say that with respect to tower cranes, we have envisaged increase in capacity.

Maybe in the next year, we will try and start to expand that, expand our capacity by setting up a new plant for tower cranes. That will be totally based on the momentum we see in the market.

Then accordingly we'll start to increase our capacities.

Understood. Sir, you in the opening remarks—

Okay. I will rejoin the queue.

Thank you.

Yeah. Can you expand a bit on your defense as well as export capability or what you have in mind on both these spheres?

Yeah. See, both of them combined together, we feel that we can easily do a 15% type of revenue.

Defense as well as export business put together, maybe a 10% contribution coming from exports on an increased base as and a 4, 5% coming from defense. In the last year, we did close to 2% in defense.

In the current year, again, we would be somewhere around 2% on the defense business. In saying this, I would just like to say that currently we have orders of approximately ₹500 crores in hand, which have to be executed.

Because of certain procedural delays, they did not go into execution, and we'll start to go into execution now very soon. What I can very say that for the next year, we already have around ₹500 crores, ₹450 crores of orders.

If we put it in percentage of next year's growth, our defense revenue can go up to 8, 10% in the next year, but it'll not happen because obviously it'll be phased out. Or with respect to delivery.

We expect that next year, we can go up to 4, 5% contribution from defense, at least about 4. Going to exports, last year, we did 4% contribution from exports.

This year, we are looking at somewhere around 6% to 7%, more towards 7%.

Okay.

In the current year, 7% exports and 2% defense will make it about 9% contribution to our business.

Your objective is to get it at around—

Currently 9%. Next year, we can be pretty confident it'll be somewhere upwards of 10%.

Our plan was 10% to 15%. The first benchmark hopefully we should be reaching in FY27.

In this budget, there was some this thing, incentive or something to be given for your construction equipment and all those things. Can you expand on that?

Yes, the Finance Minister did mention upon a CIES, that is Construction and Infrastructure Equipment Scheme. To the best of our knowledge, because we have attended certain meetings in Ministry of Heavy Industries with respect to this.

To the best of our knowledge, this is a PLI scheme wherein for the first time, focus is being given to construction and infrastructure equipment in India.

Specially

to those equipment where our country relies mainly on imports of equipment or where the percentage of the demand fulfillment in India is more from imports, even though if it is made in India, but let's say still good quantities are being imported. That's the focus.

To indigenize or to do that in India, whatever is getting imported into the country. Obviously, most of it is from our neighboring country only.

Mm.

Because of their price and policies. Herein, this will be a proper PLI scheme with the incentives based on attaining revenues turnovers.

FY25 revenues and investments would become the benchmark. FY25 revenues will form a part of the added investments that would be required in this scheme.

Sorry, FY25 investments would be considered.

Okay.

While becoming eligible for this scheme. Hopefully, it should be out in the next 2, 3, 4 months, but maybe it can be a face-saver in the absence of the anti-dumping duty order which we were expecting.

Okay. This thing, this new scheme that is to be come after, say, in 3, 4 months or something, will this be for newer products or for your existing products?

See,

this is mainly for categories where our country is importing more than manufacturing in India. Or totally based on where products are totally being imported.

If we look at it like that, crawler cranes and truck cranes will get included in this.

Basically import substitution, based on import substitution.

Yes, the heavier cranes where we were expecting anti-dumping duty, in all probability should get included in this apart from categories like piling rigs, reach stackers, aerial work platforms, which are hardly being manufactured in our country, plus a lot of other machinery: road machinery, construction equipment, smaller and bigger dumpers, smaller excavators, really big mining excavators. Tunnel boring machines, ropeways, a lot of other things which the country is really not producing in specialized—

Tunnel boring is specifically mentioned in the budget, that's what I see.

Yes. Tunnel boring is how the entire process started because China stopped our machines.

Huh. Okay.

Okay. Okay.

Now these things, you are capable of manufacturing, or you require some kind of expertise for manufacturing such things?

A couple of, let's say, truck cranes, crawler cranes, we're already there. A couple of other machinery categories which are coming under this scheme, we were as it is envisaging, and we have the capability to design and to manufacture that in India.

Okay. Okay.

Thank you. Thank you.

I'll come back if required. Thank you.

Okay.

Sir, am I audible?

Yes, yes, please.

Sir, my question is with regards to your margin, sir, on product-wise. Sir, construction equipment on a quarterly basis has seen a lower growth as compared to the agricultural equipment, right?

I just wanted to know out of these two, which one has a higher margin, sir?

See, construction equipment is definitely has a margin. Agri, we are struggling as a matter of fact, especially in the last quarter.

Construction equipment is—

Sir, do you expect further growth like how much has been happened in this quarter in the agricultural equipment to continue, sir?

First we are focused on construction equipment or agri?

Agricultural, sir.

I'll talk of both. See, construction equipment, this quarter, we are already at close to about 20% EBIT level.

Okay.

Which I think is one of the best in the country and maybe in the world as well.

Right.

I think we are touching our peaks. Obviously, with numbers of our construction equipment and certain other type of equipment increasing going forward in the next 1 or 2 or 3 years, more operating leverage will kick in, and we will have the flexibility to either further increase these margins or pass on these benefits to the customers, that we will decide in due course of time because I think at 18, 20%, construction equipment business is at a right level of profitability.

Understood, sir.

Going to the agri equipment, yes, we were close to about 4, 4 and a half percent here and there generally at EBIT level. Due to certain provisioning and whatever, which Mr.

Luthra can explain, our profitability has gone down to about a percentage there in this last quarter, which I'm sure will bounce back. Yes, from there, from our 4, 5%, our endeavor and target is that that needs to go to at least 12 to 15% level so that it comes to some sort of a sensible margin profile over the years to come, and we're definitely working towards it.

Right, sir. Sir, I understood on the volume—

Ma'am.

Sir. Thank you for taking my question.

Sir, I had a couple of questions. First is in terms of the guidance, our guidance is slight growth or is it flat growth for 26 for full year?

Does it include volume, or is it on value terms? That will be my first question.

I'll answer that quickly. Current year, I think, will be flat.

Flat to positive, but yes, flat. That is what I can tell you.

It is in value terms. In number terms, definitely there's some decline, but I'm sure we'll more than make up for it in the next year.

Okay. Secondly, sir, in terms of the scheme, the PLI scheme, what is our expectation on which of the products will it cover?

Where we have the capability to supply it?

In PLI scheme, we would be focused on crawler cranes and truck cranes for sure. Maybe some bigger rough-terrain cranes.

Apart from container reach stackers and piling rigs, and maybe some aerial platforms, because recently we had started to do some aerial platforms. Till date, we've not done any piling rigs or any reach stackers, but yes, we want to enter that line.

We've not manufactured any piling rigs in India, we only do trading. Truck cranes and crawler cranes, we've already been doing.

I believe these 4, 5 products is what we will be focusing on if the PLI scheme comes. Obviously, if we are eligible for that, whatever the conditions the Government of India will lay down for that, yes.

Okay. Okay.

Sir. That's it from my side.

Thank you.

Thank you.

Yeah. Hello, thank you for the opportunity.

Sir, my first question is on the volumes part. We saw in the constructions and crane segment, volume dropped by 23%.

Is that the case similar kind of de-growth we have seen in tower cranes?

Not really. I think tower cranes has reasonably held up.

Yes, for a couple of months in between there we saw a 10, 15% dip on a year-on-year basis on a monthly level. I would say that tower cranes has more or less held up with respect to its numbers.

It was more to do with mobile cranes, and specially because in quarter 3, quarter 4 last year, there was a lot of pre-buying. That was the main reason which contributed to this issue.

If I may ask, what would be the volumes we would have done in tower cranes this year as compared to last year? See,

in the first 9 months, we have already done close to about 500 machines, a little here and there. Last year, we did a little upwards of or close to 650 cranes, tower cranes.

This year, we already done 500 cranes. By the end of the year, we should be somewhere close to 680 to 700 cranes.

That is a 8, 9% increase over last year.

Okay. Fine.

If you look at the self-erecting tower cranes, there again we did 161 units last year. We've already done 113 in this year.

Here again we would be, let's say, 4, 5 percentage more than last year. Tower cranes put together is about 800 last year.

This year, it will be closer to 900.

Sir, what would be our capacity here in tower cranes?

See, in the fixed tower cranes, our capacity is 800, 900 units. Once we do 700 cranes this year, we will be touching close to about 80% capacity.

That is also one of the main reasons which I mentioned that in the next year, we will try and expand our capacity for tower cranes.

Okay.

Because our current capacity is 800, 900. We are doing a small rejig so that our capacity comes closer to maybe 1,100 units, which can suffice for next year requirement.

That is also one of the main reasons that we already planned for it, expanding our capacity in tower cranes in the next year, setting up a new facility.

Okay. Okay.

Sir, my second question is on the realization part. In the agricultural equipment, we have seen significant jump in realization, both YoY and QoQ.

We are reaching almost 9,90,000 per unit in agriculture. What's driving this?

Sir, I will take the question.

Yep.

This is mainly because of the increased sale in the harvesters. Harvesters, now we have become number two in the country, and average selling price of a harvester is somewhere about 20 to ₹21 to ₹22 lakhs.

We had a very significant growth in the harvester the current year. This has led to the increase in average realization in the agri department.

Sir, in the agricultural volumes of 900, how much would we have sold harvesters?

Harvesters, we have done about 410 around 410.

Luthra sir, this is for the quarter?

For 9 for 9 months, sir.

For 9 months, then what is total agri for 9 months?

Yeah.

Total agri.

Total agri and tractors we have done slightly

1,600, I think.

1,600, I think,

so. 1,600.

So 1,600 plus 400. 2,000.

Tractors were 1,600.

We have done 2,000 units, I think, in agricultural equipment in 9 months. Out of that, we are saying 400 units are harvesters, right?

Yes. Around 1,600 units are tractors, Aditya.

Okay. Okay.

Okay. Okay.

Just to understand the harvester market a bit better, if we say we are the second-largest player, how big would that market be? What is our market share then?

The biggest is now the Claas, which has now been sold to Yanmar. Our market share will be around 30%.

30%. Okay.

Just one last question. Yes, go ahead.

Aditya,

I'd just like to add one more thing. Here when we are talking about harvesters, we are only talking about track harvesters.

We are not talking about the wheel harvester which manufactured in Punjab. We are talking about a very niche segment of track harvesters.

Okay. Okay.

The market I told you was only of the track harvesters. Yeah.

One last question is on gross margins. We have been posting really healthy gross margins of 33 to 30 32 to 34% range, probably more on 33%, from the last 5 quarters to say.

Earlier we used to do anywhere around 29, 30%. The jump of the delta that we have got of 2 to 3%, what would be the major reason driving it consistently?

How sustainable is it going forward?

See, I think it is a combination of 4, 5 things. Obviously, gross margin is combination of sales price, your material cost, and obviously the manufacturing expenses.

With our cost efficiencies which we are building in and automation and productivity improvement and our continuous focus on maintaining, ensuring, and increasing our sales price and our input cost in terms of raw material. It is a combination of that.

On all fronts, we have been gaining something. It's reflecting in our gross margin.

I think going forward should be sustainable because there is reasonable amount of pricing power, and the market today understands that, yes, if the commodities go up here and down, specially steel. Which we have demonstrated in the last 7, 8 years that as and when there is a drastic increase in any input cost, it can be passed on to the market with a lag of 3, 4 months.

I think gross margin profile should be sustainable. Going forward, with operating leverage playing in because we already have capacities up to ₹5,500 crores which I mentioned.

Further with increasing operating leverage going forward in FY27 and FY28, we will get the opportunity to further increase it, I believe. That would not be our endeavor.

Our endeavor would be that we get a better contribution from our agri business and improve it in the other way, not by increasing it further in the construction equipment or crane segment.

Sir, just I want to add that market because of the product mix also. Product mix,

yes. It's a combination of a lot of things.

The market is moving toward telematics and what we are done which nobody has done. That is also giving good markups.

Yeah. Yes, and there's something more I would just like to add that with the BS-V, CEV-V, and very recently in the last 2, 3 months again, we have in our cranes introduced certain added features, AI-based features, safety and other features or different types of platforms like a clutchless transmission, which is a first in the country for pick and carry cranes, or a single chassis crane where safety is enhanced, plus we have really focused on operator comfort.

We are one of the first companies in India, rather I would say one of the first in India and maybe in the world, with our ACE Live app and telematics. It's not that we get some information on the machine, on the customer or our dashboard or different devices.

We can talk with the machine and pass on some instructions and some controls and parameters from our cell phones or tablets or laptop on to the machine. Some 160 features which we have added.

We believe, and obviously, the market is willing to pay a price for all these advanced features. We believe that not only a better price, which is definitely one of the agendas of every company to maintain and sustain profitability, but these value-added features which we are giving, whether on safety or whether on innovation or whether on the controls of the machine, in the next 6 months to 1 year or 1 and a half years are going to be very instrumental in determining our future growth within the crane segment and other products in the country.

We are very hopeful that whatever we have done is more or less the first time it has been done in the world on pick and carry cranes, and it is going to reap good results going forward. Already we are seeing a change in product mix happening in the last 6 months, 1 year.

This will, I think, work really to the benefit of the company in times to come, in the next 1 year itself.

Okay. Okay.

Thank you so much.

We'll be able to distinguish ourselves from any other manufacturers with respect to the offerings that we have. Today, our new generation cranes, we can very proudly say have become fail-safe cranes.

Basically, unless and until you actually want to turn off some system and have some accident with the crane, you cannot do it. You'll be protected from doing it.

The operator's skill level or let's say the safety consciousness of the operator, that report can be generated by the machine learning that is going through the data capture which is happening.

Okay. Okay.

Okay. Understood, sir.

Understood. Thank you so much.

Thank you so much for the comprehensive answer.

Yeah. Good evening, and thank you for the opportunity.

Good evening, Pankaj ji.

Yeah. Sorab ji, when you talked about the longer-term vision of '29 and '30, and you talked about 6 and a half to ₹7,000 crores, in your thought process, how does the things add up?

Because we believe that there's a large opportunity on the earthmoving equipment side, backhoes especially, where JCB is a very large player, which is today market share-wise. When you look at the overall next 3 years, how does the things add up from different pieces and export also, if you can dwell on a little bit of a more detail, it will be helpful.

See, we have been fluctuating between 8 to 10,000 cranes, I would say 7 to 10,000 cranes in the last 2, 3 years.

Yes. Especially

going a little down in the last 1 or 2 years. I feel that if we put all the pieces together, how we'll reach that revenue.

Over the next 3, 4 years, this about 9, 10,000 cranes will definitely go to 14, 15,000 cranes for us.

Okay.

Not only organically, but also, with respect to some market share incremental market share which we will get because of a lot of good work, hard work, and, better features which we have introduced in the market in the last 6 months, 1 year, which we are very sure of, and we are seeing a traction already. With respect to our construction equipment which has backhoe and some road machinery, we feel from the current numbers that will easily double up from here, or maybe more than that.

Okay.

Tower cranes, we again feel will more than double up from here. Our material handling will more than double up from here.

Exports and defense, defense we are seeing doubling up 100% in the next year on an increased base. Exports is increasing steadily.

Apart from that, there are some inorganic opportunities which are there with us, which we are pursuing. If everything goes well, obviously, in due course, it'll become public knowledge.

All of that put together, I think reaching a 6,000 to ₹7,000-crore type of scenario over the next 3 to 4 years should not be difficult unless and until something major was to happen in the world economy or Indian economy.

Sure. Sure.

That's helpful. This all growth will be funded internally, right?

There's no need for an external capital, either a debt or a equity raise to be happening, right?

We are a debt-free company. Last year, we were able to, bring ourselves to a zero working capital scenario in our final balance sheet, although in the middle of the year it So we're very hopeful by the end of this year again, we'll be able to bring ourselves to a zero working capital.

Plus we don't have any debt. Plus we have, I think, close to Luthra sir, you can correct me if I'm wrong, about 1,200 crores on our books available to be deployed anywhere.

In doing all of this, and we already have a, like I said, a capacity to go to ₹5,500 crores, and we will be close to 34, 35, ₹3,300 crores right now. Obviously, once we are increasing our revenue, more profits will flow in.

I don't think we should need any type of debt or any type of thing to, double ourselves or even more than that, including some acquisitions.

Fantastic. The final question.

Any color on the ground-level reality, because as an industry, you're the first company to feel the slowdown or the excitement? It's

definitely improving. There's been a lot of traction December onwards.

It took us by surprise, and I think now, especially with the European FTA deal, just a sentiment, see, obviously, how much it'll take shape, when it will take shape, but sentiment matters more than anything else. There was already positivity in the air and in the business on ground in December.

It continued into January. Then the EU thing happened.

Now, I think with the US, whatever thawing of ice has happened, and a good budget with respect to manufacturing and focus on infrastructure. I think things will start to build up from here, hopefully.

We should also be playing along. I just hope that that 25, 30% growth scenario comes back as soon as possible because these 1 or 2 years, we are also feeling wasted.

That always is a part of the cycle. Good to hear that the ground reality has started to hinge for good.

Now thank you so much, and all the best to the team.

Yeah. Thanks a lot, Pankaj ji.

Hi, sir. My question is upon the margins.

If I look at QoQ, 2Q FY26 to 3Q, our crane or equipment division realization, average selling price is slightly decreased on a blended basis. Even then our margin has expanded.

Which product is driving that, or how that is being done?

Luthra sir, were you able to figure out the question, ki our selling price has decreased across which product category?

Across our non-agricultural products, total construction equipment segment, on a blended basis.

Price realization has increased, not decreased.

I think it has increased.

Whatever data you're looking at is wrong. Our price realization has only increased.

Because in most of product, the price selling prices are increased.

Okay. If I calculate reported revenues by reported volume figures, it's a blended realization.

There is a definite increase across all product categories, all product categories, non-agri.

In

the last 9 months.

Okay. Which product has led to our margin improvement in this quarter?

The current quarter, I think it's more to do with the product mix, because what is happening, new generation cranes are becoming more popular than the traditional Hydra cranes. In that again, the higher tonnage cranes are becoming more popular.

Tower crane again is on a growth, this thing. I think specially bigger pick and carry cranes, the new generation type, and some tower cranes, that's further helping us in our margin profile.

Understand, sir. If I look at current improved selling price, is this now accepted by customers post changing norms of CEV, or whether

Yes. Now that acceptability is very much in place.

We struggled in quarter 1 and to some extent in quarter 2 on account of price acceptability. Now I think it is 9 months down the line, 10 months down the line.

Now it is totally flown into customers, and that is also one of the reasons that we've been able to improve our numbers in December, and we are very confident of this quarter. Because the price has flown down, and acceptability is totally there in the market.

It has been 8, 10 months.

Okay. If let's say we get tower crane crawler cranes and truck cranes in FY27 also, then that will be at an increased realization or increased selling price to our pick and carry crane, or how is the difference in our selling price within these?

All the cranes are very different. Pick and carry cranes, the price range is anywhere between 15, 16 lakhs to 30, 40 lakhs, 45 lakhs.

Truck cranes and all crawler cranes, they start at 80, 85 lakhs and go up to 2, 2 and a half, 3 crores, depending on models. Most popular, I would say, in the range of 1.4, 1.3 crores average.

They're totally different types of machines. Yes, there is a issue of price realization in the truck cranes and crawler cranes.

That is the reason our market penetration is small, because the Chinese are dumping at very low predatory pricing. Hopefully with anti-dumping duty, if at all they come, or going forward with the PLI scheme, I'm sure somewhere it'll have some compensatory effect or benefit wherein we will be able to sell more machines as compared to what we're doing today.

Understand, sir. Lastly, I think we mentioned we have capacity of 400 truck and crawler crane, is that right?

Yes.

All right, sir. Thank you so much.

We have capacity of about 400. We're doing close to 50, 60.

We were very hopeful that anti-dumping duty will come and we will be able to utilize that capacity in the next 2, 3 years. Unfortunately, it has not come.

Now we are very hopeful that the PLI will come, and we will be able to utilize at least 60, 70, 80% of that capacity. Let's see, let's keep our fingers crossed.

In any case, we had mentioned earlier that our Kato joint venture will be there in place. Hopefully, we should be in a position to announce something very shortly wherein that joint venture definitive agreements shall happen, and it'll become operative.

That will also help us in utilizing this capacity.

Wonderful, sir. All the very best.

Yeah. Thank you.

Yeah. Hi, thanks for giving the opportunity.

Am I audible?

Not really. The voice is a little garbled.

Maybe you are on the speakerphone or something, I don't know.

Sure. Is it audible now?

Is this better?

Slightly better, yes. Yeah.

Sure.

Sir, manufacturing, logistics, and infra almost accounts 70, 80% of our business. When I see the EPC order books across buildings and factories or across all EPC companies, the buildings and factories and manufacturing order books are quite strong.

I understand there is an increasing price just happened, but even the underlying demand which is strong, why did the volume growth not pick up? Should we see a material improvement from here on, given the fact that, at least for EPC companies, the building and factories order book has picked up quite sharply?

See, our execution and our orders have also picked up. Vyom, I think a lot parts of the question I was not able to figure out.

Were you able to figure out because of the garbled in this thing?

Sir, what I could figure out is that, I think, there is some manufacturing uptick in the economy, and they want us to reflect upon that on our business. Is that right,

Mihir? I will just repeat, and I'm sorry for the garbled voice.

Broadly, when I see the manufacturing order book across EPC companies, infra as well as buildings and factories, that order book has picked up quite sharply across last 1, 1 and a half years. However, though I agree that there has been a price increase that has been there for us because of the new norms, but the volume growth has not been there.

Now given the fact that such high order books are there for EPC companies, should we expect much better volumes for us?

100%. See, even though order books were there, but the payments for EPC companies were lagging.

That was also one of the reasons that they were going a little slow. Now everything seems to be have sorted.

The price increase and the acceptance with respect to the emission norm changes that has happened. EPC companies, the order books are there, fresh orders are also coming in at a good rate now, and, let's say, the payment problems is sort of getting solved with liquidity being addressed here and there by the government.

Manufacturing sector again, things seem to have picked up, and a very clear indication for that is price of steel going up. I believe that all things are now coming back together in the right this thing.

That's why we are seeing increase in our own execution, our own order booking and execution, which we have felt definitely in the month of December as well as continuing well into January and February. I think we can go to the next question.

Hi. My question is, what would be the volume for backhoe loaders in Q3?

In Q3, it should be close to about what, 200 numbers, Luthra sir? Approximately?

Backhoe loaders Around 450, sir.

450, yeah?

No, I think it is the construction equipment will be put together close to about 400 units.

400.

Backhoe loaders

200 units. Okay.

How do you see this product category in the future, let's say, over a 5-year period?

I think that we are doing close to about 800, 900 units average in this category, and it can easily be at least 3 to 4 times of what it is now, I would say 3 times. We are already feeling it in our domestic market, especially in the last 1 or 2 quarters.

Yes, for the last 3, 4 months, the entire construction equipment market was down about 20, 25% in volume, so that was a drag. We feel that even in the coming year, from this 800, 900 units, we should easily go to 1,300, 1,200 units, that's a 30, 40% increase.

Over the next 5 years, maybe a 3 times is what it seems things are. We are also getting a lot of good traction in the export market for this product, we believe that whatever numbers we'll be able to increase the domestic market, similar numbers we should be able to increase in the export market also.

Things seem to be panning out as of now as we speak.

Understand. One related question I have is, from a product perspective, do you actually earn a higher margin or the same margin from this product compared to the cranes?

See, as compared to cranes, the margin would be slightly less because of our numbers. Yes, as soon as our numbers start to hit more than 1,300, 1,400 units annually, we feel the margin profile for this product as well as cranes would be similar.

Understand. One

Hello, am I audible?

Yes, you're audible.

Okay. Thank you, sir.

Just two quick questions. First is, can you tell me the share of cranes to the top line and specifically tower cranes?

Share of cranes to the top line.

See,

tower crane is generally around 10, 12% to our top line. This quarter, it was 10, 11, or 12.

I think Mr. Luthra can do a quick calculation and send it over to you.

The entire crane segment?

Cranes generally for us is around Luthra sir, do we have a figure for all cranes put together to our top line?

We will send that number, sir.

Generally, it's about 60, 65%. Mr.

Luthra will send it to you.

Sir. The second question is in backhoe loaders, which you say can be grown 3x in 5 years easily, JCB is the leader.

I assume that you have already tried to dismantle their leadership. What has been the challenge in doing that?

Yes, we have deciphered everything. We know the issues.

Obviously, we can discuss in detail. We have all the plan and why we are not able to do it, and other manufacturers, why they're not able to increase the numbers.

We definitely have understanding of those facts, and we are working very hard on them. We are hopeful that we should be able to break away the shackles very soon.

I was asking this question because I would assume that you would be more cost-competitive with them, right? It has to be some other factors.

Yes, see our pricing is much better than JCB. Machine is very similar.

The issue is that over the years, what has happened that today JCB as a company is really not selling their backhoe loaders, but all the NBFCs are selling their backhoe loaders. Because for them in a resale value perspective or let's say a default perspective of their past experience in the last 15, 20 years, they feel JCB is the safest product.

Even JCB bullies the finance companies or the down-the-line officials to a certain level that if any of the individual person posted by NBFC in a particular area, if he funds any other machine, he gets blacklisted by the JCB network, and they don't give him business. A lot of things are happening.

It's basically the NBFCs and finance companies are selling the JCB machine. It has become some sort of a self-fulfilling type of a prophecy that it is happening automatically.

We've understood that, we are working on it, and very soon, I think we should be able to break that shackle also. It's not that those finance companies are not funding our machines, but somehow they are in a trap of unknowingly they keep on funding.

What they also do is, if some neutral customer comes their way, they indirectly push it to JCB rather than thinking of any other machine. I'm sure it'll happen.

Nothing can sustain forever. I'm sure we'll figure out something.

Just to add to this, for the 9 months as per the ICEMA figures for earthmoving equipment, the market has contracted. The domestic market has contracted by almost 10%, whereas we have tried to remain flattish or grown a little bit.

That clearly indicates that we have grown in a fraction of our market share as well.

That is very miniscule,

Vyom,

at the current juncture. I'm sure with all the right things that we have been doing, and even currently we are focused on.

I can very proudly say that our latest machine, which we introduced along with CEV-V, is one of the best machines in the world with respect to performance and reliability, apart from aesthetics.

All right. That's fantastic, sir.

Thank you, and have a good day.

Yeah. Thank you.

Yeah. Hello, sir.

Thank you for the opportunity. Am I audible?

Yes, you're audible, yes.

Yes, sir. I just had one question, and correct me if I am wrong.

In the recent budget, there was a mention of some custom duties on the custom bond zones where foreign companies can land their parts and machines there, assemble, and then they can sell it to Indian contractors, but the duty only will be levied on the imported parts and not on the finished machine. Is that understanding right?

If this does happen, could this reduce the gap between our total cost of ownership and the foreign players' total cost of ownership for the contractors? See,

first of all, on basic understanding, what I just heard from you, I don't think this will make any difference whether it is custom-bonded or not, because finally custom duty is always paid only on the imported part. If it is assembled in a custom-bonded or duty is paid first, the only difference would be the duty being paid when it is imported or duty being paid with a delay of 3, 4 months.

Financially, that is the only difference. Luthra sir, is there any such thing?

That is his main question.

I don't think so. The only benefit the government has given is that the duty can be paid for a reputed manufacturers like us not on a 15 days, but on a monthly basis.

Now whatever we import, we will have to pay duty on a monthly basis. If you keep the machines in the bonded warehouse, duty has to be paid when you remove the material from the bonded warehouse.

Probably nobody wants to keep inventory unless somebody wants to have a lot of inventory in place in the bonded warehouse. Bonded

warehouse toh abhi bhi hota hi hai, Luthra sir. It is currently also applicable.

Right now also it is applicable.

This AEO this, what do you say, 15 days, 1 month, we can pay duty, this is AEO A2, we already have this approval, na?

We already have. Earlier it was 15 days.

Now we can pay duty on a monthly basis. On 1st of every month, we can pay duty for all imports.

We can calculate whatever is duty and pay once rather than paying it every time or every 15 days.

On daily basis, and now it is paid on a monthly basis at the end of the month.

Okay. Thank you, sir.

Good evening, Mr. Agarwal.

Good evening, yeah.

I have a couple of questions. First is, has the government totally gone back on this electric cranes because it's long back it was showcased in the exhibition, but still no update as such on that?

Can you just throw light on that?

Yes. No, I think they did come back with some regulations 4, 5 months back, which have been approved.

Unfortunately, the approvals required from CMVR, again ARAI approval, there was some issue with the Exide batteries and all. Vyom, any update when it is getting finished?

Sir, the batteries have gone to ARAI on their test bench, and we are expecting their approval within this month or maybe next. Which means, Vyom,

that within this quarter, the electric cranes will become ready for commercial sale?

Correct, sir.

Okay. They will be ready this quarter.

Regarding the electric vehicles, will it help us to gain market in the EU and the US after the trade deals, the new electric cranes and the newer version of the cranes which we recently launched?

See, to be very frank with you, currently we do not export anything to the EU or America, and that was never in our scope of things also. In the last 4, 5 years, 3, 4, 4 years, we've actually started exporting to Middle East, Asia, Africa, some South America, and little bit in Southeast Asia and some Central Asia.

Definitely going forward, in the years to come, we will be exporting these electric cranes, and not only these electric cranes, today our emission norms are the best in the world: Tier 5. Europe is Tier 5, America and Japan is Tier 4.

Yes, going forward in the years to come, not only electric, but even the Indian diesel engines, everything is going to go to the developed part of the world in the next 2, 3 years. First, our focus is on Middle East, Africa, South America, which we can penetrate easily.

The second part is regarding our defense order pipeline. It's long time none of the announcement has come on any big defense orders.

Is this the government gone slow, or something is going up in the pipeline, which may be announced in the coming months?

There is an order of close to about 150 machines, they are called heavy recovery vehicles, which we are expecting anytime. Each machine is approximately a crore of rupees.

It's first it's a 54 and then it's a 90. Is that correct, Luthra sir, that's how it is?

This joint tie-up with Ashok Leyland, the HRV. This we'll be announcing shortly.

Even as of now, we have orders close to around ₹500 crores available for execution. Within this year, we'll be executing further 30, ₹40 crores.

Let's say we will be entering the new year with about 460, ₹470 crores worth of orders.

That's We're

very hopeful that in the next year, we will execute about 150, ₹200 crores worth of orders. That should, on an increased base, make it about a 5%, 4% contribution from defense.

We hope to maintain that 5%, 6% level going forward.

If I listen correctly in your opening remark or in some of the questions, you have mentioned about some acquisition of land in Indore. Am I correct?

Was it Indore or some other place?

In Indore as well as Faridabad, Palwal, yes.

Faridabad makes sense. In Indore, any plan of setting up a new plant, or what exactly is the rationale behind this?

The rationale was to rationalize on the outward logistic cost, because Madhya Pradesh, Indore is, we believe, more or less more closer to Central India. Dispatch of machines we realize to South and West would be more economical from Indore.

On a larger number of machines, this could lead to significant outward logistics. Obviously, in Indore, there is a good enough base to further diversify our input supply, the auxiliary industry base, as well as to benefit on the logistics, outward logistics, and especially the port infrastructure.

This was the main consideration why we also looked at Indore going forward.

By when can we decide on the framework of setting up that plant? Or now you have just planned to take the land, and in due course, you will plan there?

Yes, right now we've planned to take the land and it is being developed for commercial use because the land is under development. Hopefully, we will get possession for use in the next 1 year.

We can expect something over there in the next 2 to 3 years. Currently, first of all, we would be developing our tower crane plant on this new piece of land which we have bought in Palwal.

We have bought two pieces. One is about 22 acres.

The other which we are about to get possession is about 86 acres.

Okay.

First we will be developing the 22 acres in Palwal. We will have 86 acres in Palwal available for future expansion and this 30 acres in Indore for future expansion.

Okay. Okay.

We thought to lock in land at good prices because land prices in the last 2, 3 years have been increasing at a very significant pace. To ensure that we do not make a lot capex on cost of land, so that's why we locked in these lands.

Okay. Maybe you got at a competitive rate and since fund was available out there, Sorab

Agarwal (Executive Director): Price is already doubled. This ₹250-crore worth of land is today already ₹500 crores.

By the time you're setting up factories, it'll be ₹600, ₹700 crores.

You have already doubled your money in a couple of maybe years or

The company's money. In any case, the purpose is not to sell them.

The future expansion will come at a very less cost.

That's right. One quick update: how much percentage is the January sales compared to last month?

It's definitely higher.

Okay. Theek hai, right.

Thank you. Thank you.

Hello, am I audible?

Yes, you are.

Hello. Yeah.

Can you sort of give me the YoY growth of each sub-segments in the non-agri segments, such as cranes, construction equipment, and the material handling segment, and sort of direction for the next year on how you see the growth in these three segments? See,

if you look at our segment results, in the cranes and material handling and let's say the construction equipment, on a quarter-on-quarter basis, we've been able to grow at about 10% on revenue basis. Yes, as compared to on a year-on-year basis in this quarter, there was a 4% lower growth, negative growth.

On a whole-year basis, I think it is going to be more or less flattish even in this segment as conveyed earlier. Flattish to maybe a minor positive.

That is how it is. Next year, we are sure that there should be good growth in both our segments.

Yes, we're only able to put a number to it only in the next con-call.

Sorry, sir. Hello?

Hello?

Yes, yes, please.

Sorry, sir, I was not clear. I was asking about volume growth in these three sub-segments in the quarter.

Can you give a brief or an approximate number?

I think it'll be better if Mr. Luthra send it across on an email.

Luthra sir, you have data with you, you can just tell it

We can send on email to him.

Just please send us an email. We'll immediately respond on that.

Okay. Nothing else from my side.

Sir.

Hi, team. Good evening.

Am I audible?

Yes, Himanshu, go

on. Himanshu, go on.

Yeah. Sir, my question is regarding some of the new growth areas the company is venturing into in terms of exports, defense orders, and heavy cranes.

Will this businesses continue to follow the current asset-light, build-to-order model that has supported high asset turnover historically, or do we expect higher asset base for all this incremental businesses?

See, we have always been asset-light, and specially our asset-to-turnover ratio has been very good. We will totally keep that in mind in whatever we are doing.

All right. Thank you so much.

All the best.

Yeah. Thank you.

Hello. Hi, sir.

Thank you for this opportunity. Firstly, post-transitioning to the BS-V norms, what kind of EBITDA margins can we expect in, say, FY27 and FY28 on a steady-state basis?

I think what we have been achieving in the recent quarters should be our benchmark for, let's say the next year or year after that. Maybe close to about, let's say, 18, 19% if we include other income, and close to about a 15% plus-minus without other income.

Understood, sir. Secondly, could you elaborate more about the AI integration in your cranes and how difficult it is for other players to sort of replicate the same?

Replication of the same should not be possible because all the new four-odd features which we've introduced in our machines, we have patented them before we introduced it on the machine, the technology and the procedure that has been used to make it function. In case if any competition tries to get close to it or copy it, then obviously we'll have to use our patents to stop them.

What these do is they basically make the crane fail-safe. The operator can only do safe operations.

Even if he does some unsafe operation, it'll be brought to a safety zone automatically. Whatever unsafe acts an operator is doing are being recorded.

The operator grading, whether he's actually a capable operator or not, that also gets generated. It's a mix of a lot of things.

Most importantly that it'll be very difficult for anybody to do an unsafe operation or put the safety in jeopardy. Apart from that, there are a couple of other things like the first clutchless transmission.

I'm sure this should gain a lot of traction with operators because operating cranes will be very easy, less tiresome, less cumbersome. Again, keeping in mind safety, as I mentioned, first single-chassis crane.

Because there is no articulation, the crane is much more safer than any other conventional pick and carry crane. All these things put together, I'm sure we are moving in the right direction.

Yeah. Thank you.

I think as discussed and going forward, we expect stability and visibility in the markets post the EU and US trade deals and our own government's focus on infrastructure and manufacturing. I think this augurs very well for our future prospects.

We expect that with our capacities and capabilities in place going forward, our growth trajectory should get back on track soon. We're looking forward to it.

I think that's it from our side. Thanks a lot.

Thank you.

Thank you.

Thank you.