Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team, I welcome you all to the H2 and FY26 post earnings conference call of Aimtron Electronics Limited. Today on the call from the management we have with us Mr.

Mukesh Vasani, Chairman and Promoter; Mr. Sneh Shah, Whole-Time Director; and Miss Nikita Shah, Chief Financial Officer.

As a disclaimer I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded.

I would now request the management to briefly run us through the investor presentation and the business and performance highlights for the period ended March 2026, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.

Good afternoon, everyone. Thank you, Vinay-ji.

On behalf of Aimtron Electronics Limited and our Board of Directors, I warmly welcome all our investors, analysts, shareholders, advisors, and stakeholders in today's call. Please welcome.

We sincerely appreciate your continued trust, support, and interest in Aimtron's journey. Last 2 years almost, actually we are only a few days away, a few weeks away from our to be finishing the second years.

Last 2 years Aimtron journey, your confidence encourages us to keep building Aimtron with a long-term vision, strong governance, and disciplined execution. At Aimtron, we are moving forward with our Aimtron 2.0 vision, with strengthening our core electronics manufacturing capabilities, expanding our global presence.

You see that we have already acquired a company in Decatur, Illinois. Building a deeper customer relationship like a stickiness of the customer, and creating a more professional, scalable, and future-ready organization.

We remain focused, as we promised previously also, on sustainable growth, operational excellence, innovation, and long-term value creation for all stakeholders. Again, thank you so much for taking the time today.

As we are only 1 year away from main board entry, and we are very prepared. I guess all the check box already checked off except we have a 3 years timeline.

With your support, once we finish 3 years, we'll move forward on that also, and we started the preparation. I think today your interest is more on question-answers and results, I will hand over to Sneh and Nikita to just give a little overview about Aimtron and results, and then we'll go for question and answer.

Again, thank you so much. Really appreciate.

Thanks, Mukesh, for the brief. Certainly, I think it has been a great story past 2 years to what trajectory we have changed.

Considering that as Aimtron, initially we used to be more on PCB assembly, more of an EMS, which we redirected towards ESDM, ODM-led manufacturing, design-led manufacturing kind of an activity. That is now getting surfaced in last couple of quarters result as well.

As Aimtron basically, we are termed as an ESDM, electronics system design and manufacturing. We are in manufacturing facilities in two geography: one is in US, which we recently acquired one company that is renamed as Aimtron International Controls; and we do have our presence in Vadodara as well.

Sectors we'll go more in the depth on which are the sectors we are already there. This year we added more.

One was agritech, one [unclear]. Aerospace and defense, where we got qualification under certification of AS9100.

Hello.

Sneh, please continue.

Okay. This year like we entered [unclear] telecom partner.

Railways also like we started encountering the orders, and RDSO approvals will take place in next couple of quarters. Agritech [unclear].

These are the global certifications that we have in place. For instance, 13485 makes us visible globally for medtech products along with CDSCO, which are now mandatory for Made in India equipments.

We do several things under medtech. 16949 approved for specific to automotive.

9100, as we stated, we recently got approval last year. And [trusted?]

telecom partner, that also got approved. We are already approved under that last year.

RDSO is something that is under progress and probably this year by first half or probably by third quarter we are expecting to get a closure on that part. Next.

Probably like this is more on how the Aimtron Electronics India is an holding company. We created one subsidiary called Aimtron Mechatronics.

That's a greenfield project. We acquired a space here in Vadodara itself where down the line we are expecting to have injection molding, sheet metal, and all that in-house.

Then we created wholly-owned subsidiary Aimtron Electronics LLC that is in Texas. That is like basically a wholly-owned subsidiary of Aimtron India itself.

Then Aimtron International Controls is like AIC probably falls under AEL LLC. AIC falls under AEL LLC, Texas.

Next. PLI we applied for ECMS under SFP segment, small fiber optics.

Just to give a more brief, like small form-factor pluggables that comes from 1G to 50G. Probably India demand is getting aggregated and it's expected like to 40G to go up to 40G capacity range.

That is what we are also advancing in that direction. We are working on TOT as of now, transfer of technology with one of the international player.

That is in progress as of now. Once we get that like TOT signed, and probably down the line we would be eyeing on how do we have more rollover on that part.

That will be under Aimtron Mechatronics. This is like more often solutions that we provide, product engineering solutions, PES we call, so that includes like hardware, software, firmware, mechanical.

If you see last half of the year, proud to say that our PCBs were like in 26th January to what parade it was been displayed, drones were displayed for complete China plus one kind of a story because it was more of a defense level. Then we entered railway where we are providing like SIL4 level integrated systems, that is anti-collision advance collision system along with couple of signaling orders that we have started getting it.

Data centers story probably into the market has started now. We have been working on this since almost a year where we got one order of $12 million where we are like designing from scratch, starting from 1 kVA, 2 kVA, 3 kVA with battery, without battery.

Fortune 500 company where we are as of now going with three variants, six SKUs as of it. Probably down the line we are expecting to go more.

Then AI dashboard camera, it's as of now getting used in GSRTC, local bus Gujarat State Road Transport, and down the line that is expected to get rolled over in pan India. Again, not immediately, but down the line that's what.

This all are getting manufactured at Aimtron itself, Vadodara factory. Next.

Next. Maybe Nikita can take this.

Hello, everyone. A warm welcome for the financial discussion regarding the 31st March 2026.

For H2 2026, Aimtron Electronics reported consolidated revenue from operations of 1,786 million, and EBITDA was 369 million, and profit after tax was 257 million. H2 FY26 revenue grew at 45.7% over H1 FY26.

Over a full-year basis, FY26 consolidated revenue from the operations grew at 89.2% year-on-year, that is 3,012 million compared with the 1,592 million of FY25. Profit after tax increased at 79.4% to 460 million compared with the 256 million in financial year '25.

EBITDA margin stood at 22.6% in FY26. PAT margin stood at 15.3% in FY26.

This is after the consolidation of the subsidiaries and for the current financial year.

Next slide. Next slide.

I think, Sneh, you're ready for order book? Certainly.

If we combine all group of companies, probably we stand at somewhere around ₹600 crore kind of an open order book that includes Aimtron India as well as AIC in total. Geography-wise, it's more of an international client base with around 20-25% as an export.

When it comes specific to AIC, it's all domestic, that is specific to US market. Thank you.

Next. I think we can move to Q&A.

Question-answers. Vinay-ji, you have any more slides or we can start the question-answers?

I think we will move to Q&A.

Because that's the main.

Yeah.

Thank you actually, Vinay-ji, and thank you Nikita and Sneh sharing. We had some voice little bit breaking, but hopefully our investor maybe you can see on the website and look at the full presentation and see whatever

the presentation. Correct.

Sure.

We'll take the first question from Ashutosh Shukla. Ashutosh, you can go ahead and ask your question.

Hello. Am I audible?

Yeah.

Yes, you are.

Hello. Sir, can you tell me the impact of PCB price increase and DRAM shortage impact in the business?

EMS business, currently we have already some of the lock-in price and so we do not have that much impact directly indirectly at this point. Because we are not the end user, and what we do, we communicate with our customer and make sure they are prepared.

We transfer that cost to our customers. At this point, Aimtron's book, yes, we have some semiconductor shortage, but we do not have any pricing impact at this point on our EBITDA or on our PAT.

Hello. Okay.

One more question.

Sure.

With L&T recently entering in electronic manufacturing services and ESDM space and commissioning its PCB assembly and manufacture facility in Coimbatore, how do you see this development impacting our competitive positioning, pricing environment, and overall growth prospect?

I think, we already in previous call, we already shared some of the information that this is a huge pie, a trillion-dollar pie, a pizza. It's not even L&T cannot eat everything.

There is always a way, if you have a niche market, if you have a specialty business, you have a high-end electronics, you have some special things, then there is no way they can beat us. I think there is plenty of enough business.

If you look at our open order book and a pipeline right now is almost $70-$80 million just what's the pipeline we have. I don't think so it's going to hurt us.

Also, when bigger company comes, they have a bigger overhead, and it's very hard to move Titanic versus the speedboat. Our Aimtron's goal is to be a speedboat versus Titanic.

Thank you.

Thank you, sir. We'll take the next question from the line of Amit Jain.

Amit, you can unmute and go ahead, please. We'll take the next question from the line of Mr.

Priyanshu Jain.

Hello. Am I audible, sir?

Priyanshu, you can go ahead, please.

Hi, sir. Congratulations on good set of results.

Every quarter we come and you surprise us with the results. I have two questions, sir.

First is on the top line basis. For this year, sir, what is the internal target which we are targeting for this year?

Sneh, are you there?

Probably we'll keep our strategy in line with 40-50% CAGR growth because next couple of years, with this S&P is here, I would say, next couple of years we are eyeing on ₹1,000 crore kind of a journey. That is what our ultimate goal is.

You can keep intact with 40-50% CAGR kind of an growth that will try to continue to deliver.

Sir. Sir, second question is on the EBITDA margin side.

Sir, recently we acquired a ICS the ICT one. Due to that, we are seeing some impact on EBITDA margin some consolidated levels, around 22% 22.5?

Probably we already have stated. That company, AIC now, Aimtron International Controls, if you see when we bought, at that phase of time it was kind of a early double digit EBITDA itself.

It's

hardly 2 months. We already have started activities on that part.

Ultimate goal is slowly and gradually probably now this financial year it will get consolidated full year. You'll see the scope of improvement on what it was there before and what it is now, because we do have expertise on that ESDM market.

Best part is we are seeing the synergies and already transition phase has started and completed. We know now where exactly to tap and where exactly we can make the bottom line out.

That is where we have started working on that part. Probably down the line you will see the results.

Probably couple of years down the line, we are even eyeing on how do we take it up to the Aimtron kind of a margin, Aimtron level margin for EBITDA as well as PAT.

Okay. Sir, on consolidated levels, we can assume 22% is the conservative, the most least EBITDA margins we can see going forward, right?

Couple of years down the line, not immediately.

Oh.

This year it was early double digit, kind of 11 somewhere around 11% EBITDA.

Sir, on consolidated levels you're saying?

Standalone, specific to AIC.

Okay. Sir, I'm talking about on consolidated levels.

So

Consolidation, we will be intact to what PAT margins and EBITDA we are into. That PAT 15%, couple of percentage, 1 or 2% is here and there.

EBITDA 20-22% kind of a range will be intact on the consolidation mode.

Sir. Sir, third is on the top line as we are aiming for 1,000 Cr.

I think for the next 2 years we don't require any kind of a CapEx. After that we are planning, is there anything which you want to disclose right now?

I think you can see that our Mechatronics facility is coming out. There is some capacity will be there also.

Right now, we don't need to spend any more unless you have, let's say, ₹5-₹10 crore here and there, minor tools upgrade or maybe small machines upgrade. We are not seeing a huge expansion cost in the existing setup.

Mechatronics will have another setup with two SMT lines to start with and four SMT lines over there. If you look at this, you don't need that much because we already have a nine SMT lines right now.

In nine SMT lines, we can easily go up to ₹800-₹900 crore. I think at this point, we don't need any other CapEx at this point.

Thank you so much. We can take next.

Sure. Thank you, sir.

I would request all participants to limit two questions in the initial first round and then come back in the queue. We'll take the next participant, Rushin Shah.

Rushin, you can go ahead, please.

Am I audible?

Yes.

Sir, could you please clarify that how much percent of IPs are developed in-house and how much of that is sourced externally or externally acquired? How is company able to manage its design function with relatively low employee benefit cost, especially given that design-led businesses typically incur higher talent cost?

Okay. We do have design team in-house where we have hardware, software, firmware, mechanical, everything.

We are somewhere around team of 45 to 50. Then we do have design partners, including that we have team of around 150 team members.

IP typically remains with customer. We don't own the IP.

We try to build from scratch and take the manufacturing licensing kind of an activity. We do support them from scratch, from concept to design to prototype to production, and that too for complete box build system integration.

With that said, customer's requirements to get to the market easy, we have about 80 platforms ready. That means those are the IPs we have about number of IPs in the IoT and other areas, controls or storage, power storage.

Those areas, we already have a basic design configurations ready. Whenever customer comes, in 3 to 4 months, hey, here's the product, you can take it.

If they pay, then they own it. If they don't pay, then we take the royalty or contract for 5-7 years.

Okay. Sir, management is guiding around 40-50% Sorry?

Please continue.

Management was guiding roughly around 40-50% revenue growth in FY27. If we consider the numbers of consolidated ICS business, there seems almost no growth in ex-ICS business.

Can you please throw some light on that?

Sure. Specific to ICS, we have clearly stated.

Growth definitely is there. Growth here, focus is more on EBITDA and PAT level.

Revenue definitely it is not going to be same as India like 40 to 50%. Growth over there would be in double digits specific to revenue.

Here the main focus is on how do we take it up for double digit kind of a PAT and double digit kind of an EBITDA.

Sure, sir. We'll take the next question from Akash Shrivastava.

Akash, you can go ahead, please.

Congratulations on delivering very strong results. Sir, actually I have got all my answers and I have received answer to all my questions, I don't have anything further to ask at [this time?]

.

Sure. Thank you.

Thank you, Akash. We'll take the next question from Pratik Bagaria.

Pratik, you can go ahead, please.

Hi. Am I audible?

Yes.

Congratulation for a great set of numbers. I have few questions.

First, can you take me through the revenue split between India versus abroad and also if you could split between different sectors like railways, defense, and so on?

Sure. I'm not sure we can just open up the presentation.

I don't have the numbers handy, but if you can just open up the slide. If you see probably this year as well, 70 approximately around 70% kind of an activity was more towards and domestic customers with international client base.

Focus was more on a box build, we have stated before as well. If you see major industrial, telecom, and power, and automotive, robotics were the top five contributing sectors in terms of industry.

If you see geography, like India and US were the top two. Almost split of PCBA to box build was 70-30 kind of a ratio.

ODM model, because it's design cost is generally less as compared to the overall project size, ODM model, that is end-to-end solutions, that's splitted to less than 5%.

The new addition of clients happened basically in which sector in the last 6 months?

It has been a combination of all. Just an example, new sector if I say, then aerospace and defense, we added somewhere around 2% overall.

Railway we started entering into that along with oil and gas. Oil and gas probably now we are looking out on something on a higher side because last year if I see just give you a number, we did almost 424 prototypes.

Considering that number like oil and gas, we are seeing a good traction. Considering to what geopolitical situations are, it seems to be on a better side to hit on that part as well.

Overall if you see, telecom sector, power sector, and robotics is something that we added in second half of the year.

Do we foresee the same tailwinds in the similar sectors in the next 1 or 2 years? Or do you see railways or defense coming up as a bigger players?

Railways and defense, definitely we are eyeing on it. As it is more I would say conversion cycles are too high, it's not that these two sectors are going to dominate it.

We are going to be part of that sectors where again we would be focusing on more of a niche market segment kind of activity to what typically we do. Because as we stated, like this 26th January parade to what drones were displayed, we supplied the PCBAs.

Would like to continue with safe kind of and projects, same kind of and momentum. Other sectors, apart from these two, to what we are stated, probably we try to dominate for this year as well, this current financial year as well.

Okay. Fair enough.

Thank you. My second question would be what would be the top three, four risk that you see in the coming 2 years in terms of execution?

Majorly as of now, inventory levels if you see has moderately increased. Due to three reasons: one was more of a if you see to what global situations are going around, chips are getting on shortage and price are getting increased.

That supply chain side is the only factor we see can be a challenge. Rest all, I don't think so apart from that.

That is where we already have started taking annual orders with monthly and quarterly split deliveries based on customer requirements. To what all inventory we carry, probably it's more of an customer projects-oriented only where we have minimal or we don't have any impacts from our side at least.

I think if we have a very niche market, people has to use it or take it, correct? Even corona time, Aimtron did not have any problem.

I think if we continue focusing on the niche market, complex box build, we will not have that much problem because there is always need and there is always requirement for those kind of product. We always ready to go one step beyond, and that's why we prepare for that.

Also, very strong infrastructure we have. Something happen, let's say in a geopolitical situation and all these building, all this property, even US facility, Aimtron International Control, we have 4-acre land and we have about 58,000 square foot building also.

We have land and building every single place. We don't have to worry about any kind of turmoil.

As Sneh said, mainly supply chain. We are communicating with the customers and make sure, I think that's what we see the mitigation progress.

Thank you. Pratik,

do you have any further question? We'll take the next question from Tahir.

Tahir, you can go ahead, please.

Hi, sir. Thank you for the opportunity and congrats on the good set of numbers, sir.

First question from my side will be, can you please provide info on the operational SMT lines we had for the entire FY26 and the plans which we had to expand our SMT lines, greenfield expansion, what we have planned to add one more line in FY27. What are the updates on that part?

Currently we have Fuji platform, Vadodara as well as Bengaluru. The new greenfield project that we are coming up with also will be same Fuji platform itself, that's in Japanese-made.

As of now like land acquisition is completed and constructions are ongoing. That facility construction is done.

Probably it will be Q3 and Q4, probably it will be Q4 this financial year. Post that at that phase of time, we'll be having that setup up and running.

Initially we'll be having mechanical setup up and running, and then as phase two we'll be having this electronics or PCBA or SMT lines commissioning done. All right.

Okay. We are planning to get it operational Q3 FY27 for the mechanical part, and assembly line will be after that in phase two.

What is the timeline for that part?

A quarter more on addition of Q4.

We are planning to add one one SMT lines by end of FY27? FY27

or Q1 calendar Q Q1 next financial year, latest by that time.

Okay. Second question was on the margins front.

Our gross margins has decreased from around 31% in H1 FY26 to 28% in H2 due to the increase in COMC. Was there any raw material price impact during this period?

Probably I would request or suggest that if you can compare year-on-year, because if you see always first half to second half, there is always going to be a change because I would I would prefer to go on year year-to-year basis. Because if you see year-on-year, probably we are in line.

Quarter first half to second half, we are scaled up. Initially like there are couple of orders from ODM models which got from ODM got shifted to manufacturing and couple of reasons where geopolitical reasons where shipment cost were on higher side, supply chain constraints were there.

Considering all that aspects, there are going to be minor fluctuation here and there. If you see the complete year, then probably we are going to be in line with what we have been projecting.

Also, if we remember, we discussed on the last call also on previous couple times, that Aimtron's journey is still, compared to ₹1,000 crore, it's still, ₹300 crore is sometimes all the ratios will not meet. I hope I'm communicating.

Because sometimes one customer, in a one sector, one area is going to be up and down a little bit. Hopefully if you have a maybe year after you can ask that question, we have a better answer for you.

That's where you will see a real result year-over-year and quarter-over-quarter. Once we enter main board, you will see by that time at least our revenue will be more than ₹500 crore.

I think that's what I'm just adding to Sneh said.

We'll take the next participant, Mr. Akshay Kalia.

Akshay, you can go ahead, please.

Hi, sir. Thanks for taking my question and congratulations on the great set of numbers.

My first question is regarding the cash flow. We have generated ₹40 crore negative cash flow this financial year.

By when can we expect to generate a positive cash flow and what percentage of EBITDA can we convert over the next 2 to 3 years? Also there is one line item of ₹70 crore loans and advances given to other parties.

Can you please elaborate on that part?

Sure. We take second question first.

Nikita, if you can take that up, because that's more of an internal, just an example, acquisition done for AIC and projects run for construction of Aimtron Mechatronics. We can give more brief on that part.

Nikita, if you can just add that.

Yes. Regarding the consolidation figures, I can say that loans and advances that is showing at 50 8.3 Are you referring to the consolidated value or a standalone value?

Ma'am, I am referring to the consolidated cash flow at one line item is the ₹16.8 crore of the loans and advances. I am referring to that only.

Just a second.

You are muted, Mukesh. We can take the other question in the meanwhile, Akshay, if you have any other question.

Sure,

sure, not an issue. We can also connect offline.

Akshay, ₹16.8 crore is given to Aimtron LLC in Texas, Aimtron Electronics LLC in Texas to acquisition. That is the part of the payment we did from our acquisition from Aimtron International Control.

That is the money you see over there cash flow. Take next question by the time Nikita come back

there. Sir.

Understood. Sure.

Yeah. My second part on that question was to when can we generate the positive cash flow and by what percentage of EBITDA we can generate over the next 2 to 3 years?

Probably if you see we are in aggressive growth trajectory, and that is where this impact has been there. If we see once we reach to the stable phase of ₹1,000 crore, we may continue with this kind of an momentum because of aggressive growth that we are eyeing into, 40-50% and above.

Because even if you see past 2 years, it has been 60 to 70% and even above when it comes to the growth trajectory. Initially to accommodate that growth, we do need to accommodate on that part.

Once we reach a ₹1,000 crore kind of a journey, post that we'll be able to see the stabilization on that part.

Sure. Thank you.

We'll take the next question from Deepak Poddar. Deepak, you can go ahead, please.

Yeah. Am I audible?

Yes, you'll have to speak up a bit louder.

Great. Just a few things from my side.

Now, ICS, what's our current revenue and this ₹280 to ₹300 crore target that we have is over next 3 years, right? Ideally the ₹1,000 crore we are targeting, out of that ₹1,000 crore, 300 we are expecting to come from ICS?

Yes. On peak, we can take it up to $25 to $30 million.

That is what we are eyeing on from specific to AIC, Aimtron International Controls. This year will be somewhere around $17 million approximately.

That is what we are eyeing into.

$17 million in FY27?

Yeah.

So $17 million effectively means around ₹170 crore, something like that, right?

Approximately. Okay.

Ideally, when we say 40-50% growth, from 300, even if I take 50% growth, we are reaching from 300 to 450 crores, right? That is an increase of ₹150 crores.

But ₹170 crores is coming from this new facility only, right? We are

commissioning. Definitely you are good in maths, no doubt with that.

I would say on 300, we are still coming up with 40 to 50% because there would be organic growth as well as a part of India. If we see on the consolidation mode, inorganic as well as organic, probably would be in that range.

Okay.

This 40-50% is conservative, right? Because if you see organic growth as well plus the acquisition, ideally our growth profile would be much higher, right?

Historically I have found you guys to be very conservative, right? Would that be a right assumption, this 40-50% is a conservative number?

Deepak-ji, I think we all know the geopolitical situation, correct? I think we are very conservative and we are very transparent in numbers and commitment.

If I say, okay, I'm going to do 70-80 compared to last year, and we can't do it, then I don't want to make that mistake. Would like to go with conservative.

That's the growth we are eyeing on, 40 to 50%, because we are seeing the open order book, we are seeing the pipeline. If you can get more, it's good for everybody, correct?

We are looking for more. We are looking triple, but it may not be possible.

Tomorrow, what happened in the White House, tomorrow what happened in the world, we don't know. At this point, with the current open order book, we are eyeing on 40 to 50% growth.

Okay.

We do expect organic growth as well, right? That's what you mentioned.

Hello?

Thank you. Yes.

You asked something. I think you I was asking you do expect organic growth as well, right?

Yes. Definitely.

Okay. Okay.

My second question is on your RFQs. We mentioned around ₹900 to ₹950 crore of RFQs we have, right?

By what sort of a conversion we are expecting and by when? We have around ₹240 crore of money locked in inventory and receivables.

How should one look at that? It's a substantial number.

Sneh, the first question for you.

We'll take second question first. Specific to inventory, as now we are more focused on ODM model, it's one of the prime reason where you see that inventory numbers are increasing.

It's not to that spike, but there is a moderate increase. First is if you see our ODM business has grown to almost 2x as compared to the last year.

ODM business naturally requires higher inventory as we need to manage components, sub-assemblies, and product readiness at our end compared to pure EMS players. If you see secondly, the strong growth visibility and customers order pipeline for FY27, that's also one of the important reason that considering the current geopolitical issues, because we have to stock up certain critical components proactively to avoid getting stuck in supply chain uncertainties.

Considering that, inventory it's moderately high, so that's one part. Receivables, if you see this is more of an 31st March results.

Out of which, almost 40 30-40% has already been received because some are 60 days, some are 75 days kind of a story. We have started receiving that payments and not worried because that conversion cycle keeps on rotating now.

Thank you. We'll take the next question from Surendra Reddy.

Surendra, you can go ahead, please.

Hi, sir. Congratulations on a good set of numbers.

My first question is like you mentioned in the last call, like we have received a like order in the defense from the Miniratna. Are we expecting more kind of orders on that segment and may I know the margins on that front?

Certainly yes, because couple of Navratna PSUs we already started working with them now low or mid-level kind of quantities, and where prototypings and pilot phases are already done. Now we are trying to see on how can we scale that project.

We are working with different divisions of it. Margins probably will be at Aimtron level when it comes to aerospace and defense, somewhat I would say a bit on higher side as well.

When it comes to consolidation, we generally eye on 15% kind of a PAT margins that we typically look into.

Okay. Sir.

The second question is is there any acquisitions going or is there any under final stage kind of thing just like ICS or something?

I think it's too early to say. The reason is current geopolitical situation is kind of a vulnerable.

We looked at couple more, but right now we put on a hold right now. ICS is called AIC now, AIC is already up and running and we start making money on that, we are settled down now for that one.

We put new ERP system, we put new image system, we put all this whatever requirement. Coming back to your questions, yes, we are looking couple of places.

One of the design-led companies we are looking in North America and in European market. We're just wait and watch kind of situation right now.

Thank you. We'll take the next question from Sumit Chopra.

Sumit, you can go ahead, please.

Hi. Am I audible?

Yes.

Hi, sir. I just need one clarification to the question of previous participant.

Any specific percentage you would like to guide or comment upon from the organic growth point of view, because those numbers are not reconciling? Because he was also quoting, 40-50% growth with the current capacity, there will be any organic from Aimtron Elect.

I got you that you are guiding this percentage number from a conservative point of view. Any color you would like to throw from Aimtron without AIC if you want to comment upon?

Look, this is the EMS business. You look at it every single company.

There's a tons of order and tons of materials in the pipeline from everywhere, for everybody. Considering that, we are seeing organically also, 40 to 50% growth plus additional AIC.

We gave you a range for 450 to 550 at the end of the year. You never know what's going to happen in this geopolitical situation.

Again, you could have a 550, then your math will be right here, correct? If you go, let's say if I say our next year will be around 550 to 600 crore, then everybody will be happy.

Let's say tomorrow happen something happen in Iran or Iraq or somewhere, then we're going to be screwed up again. However you're going to do mathematics, our end goal is to get 1,000 crore journey.

If we're going to do either with 40 to 50% growth or inorganic, we will get that's our end goal and yes, we are prepared for that. We cannot give you exact numbers or very close number because we do not know the situation.

That is the reason, yes, mathematic doesn't fit in my mind also. Right now my goal is, let's say if I give you 550 to 600 for end of next year, I think you'll be happy and your math will fit in that.

Something happened then you will be unhappy and I will be unhappy. That is the reason.

Thank you.

Also, I think we need to clarify in the presentation what we've given is CAGR, which is a 3 to 5-year trend that we are talking about, and not just 1-year growth number.

Thank you, Vinay-ji, for correcting.

Sumit, do you have any further question?

Hello.

Yes, Sumit, you can go ahead, please.

Yeah. Sir, my second question is regarding the mix of box build and PCBA.

As we can see in H2, this mix has improved from the H1, but the same is not visible in our EBITDA margin. Any specific reason for that?

It's more of a combination of that mode itself because that is getting more of a value addition chain. For instance, initially with our existing customers where we are doing PCBA, just an example I'm giving, where from there we shifted back to complete box build or complete system integration.

For instance, initially the PCBA value would be ₹1,000, which has now increased that turn around to 2,000 or 1,500. Bottom line still remains the same to what we stood before, but it has rather been on the positive side where even it has helped us for top line as well.

It is a combination of top line as well as bottom line.

Sure. We'll take the next question from Anuj Haria.

Anuj, you can go ahead, please.

Hi. Congratulations on the great set of numbers.

Just following up on the previous participant's question, right? Ideally we've spoken that box build has a higher margin higher set of margins compared to PCBA.

Sneh, what you just said doesn't make sense, right? If you're earning the same percentage of margins by expanding the order value, that just doesn't fit in the logical framework from what was covered earlier.

If you see along with that, there has been change in order trajectory as well. Initially if you see, it used to be ₹5-₹10 crore kind of an activity for a single order, which trajectory is now changed to ₹25 to ₹40 crore to ₹50 crore kind of a single orders.

That is also a part of it, where I say it's a combination of all factors, not only just for PCBA to box build. Because if you see ODM model, then ODM model probably would have higher margin as compared to box build as well.

If you see what we try to do is, we try to combine all the factors and try to see on how do we maintain the PAT at clean level and EBITDA around 20% and above.

Understood. For the coming year, that's FY27, we expect the same split, that is 70% of box build and 30 approximately 30% of PCBA?

Or do you expect the percentage of box build and ODM to rise up to nearly 80%?

It is going to be more or less the same activity where box build is going to be around 65 to 70 and PCBA is going to be in that 30% kind of a range itself.

Correct.

I'm just adding to Sneh here. Every company has to start with the PCBA, correct?

You cannot have 100% box build directly. What Aimtron is looking for, where is the complex PC board, where is a very high mix, high dollar.

Those we forecast, those we target. In our dictionary, we don't separate too much as a box build versus PCBA versus design.

We look at, first, now our team is prepared, hey, is fitting our range 13 to 15 or 20 to 24% EBITDA range? If not fit, then it doesn't matter for us it's a box build or it's a PCBA only or it's a defense or it's an IoT or it's a telecom.

We are a little different in EMS trend right now. We would like to be a role model to set up a new trend versus separating everything.

Find a medical customer, they are doing X-ray imaging; find a medical customer, they're doing defibrillator; find a drone who is a working as a surveillance. Find those kind of customer or a Mercedes car or a somebody Tesla or somebody.

Find those customer, they have either you do PC board or Caterpillar, they don't care. You can do PC board or you're going to do just the metal parts, still in the same margin.

That is something we are eyeing on, and that is something our DNA. I think, again, I'm not just discouraging you, but those are the thoughts we had in a lot of questions we had in previous.

Your machine, how many per hour, how many they pick and place, how many parts they place, it doesn't matter now. What is our EBITDA and bottom line, I think that's what we focus, and that is our DNA and that's our goal always.

Thank you.

Thank you. We'll take the next question from Sachin Gulati.

Sachin, you can go ahead, please.

Am I audible?

Yes.

Yeah. Thank you for the opportunity and congratulations for good set of numbers.

Before asking question, I have one or two suggestions. One is if we can share this PPT a little bit in advance, it is just shared so that we can come prepared and go through in advance.

Second, till we migrate to main board, can we consider some quarterly business updates?

Very good question. First question will be, me and Vinay-ji we work together and see next time.

Our goal was to set a trend to give early results. My goal is to give every first last Monday of every year or every quarter I would like to give the results.

That is the reason we had to hustle a little bit here and there. We are setting that trend and we will go from there.

Next time we'll make sure we will give you that a day in advance. That is our goal and we'll do it for sure.

Next question your is Yes.

Yes, please, go ahead.

Quarterly, we are ready for the quarterly. I think this new auditor system, we'll try to do a quarterly, but at least we would like to give you a quarterly update for sure.

We have only three quarter left, and then we have to go quarterly anyway. We are preparing our team to start quarterly.

Let's see how it goes. Our goal is to give you quarterly, but Anyway, we have to learn that anyway, I think we are ready for that.

We'll let you know and we'll announce that accordingly as the time comes. Yeah.

Second is our PCB was used in drone showcase in Republic Day parade. What is further progress update as far as drone segment is concerned?

Sneh, this question is for you.

Basically we are regularly doing monthly shipments for specific to drone for domestic as well as international market. Down the line, we are even eyeing on how do we enter to box build space like just an example, camera box build assembly and somewhat of that kind, payload and all that.

That exploration is already going on. As of now PCBA, we are already supplying them on regular basis.

Wire harness, we recently started encountering on that part too. Down the line, we are exploring on how can we do payload systems, camera module assemblies and all.

Apart from that, we are also exploring if we can do a complete box build system integration as well.

Thank you. We'll take the next question from Rushin Shah.

Rushin, you can go ahead.

Sir, can you please explain the difficulty level of designing a PC board? How difficult it is to design a PCB board?

Is the difficulty level is very easy that everyone can do or there are any levels to difficulties that we do some very high difficult tasks, which is reflected in our margins compared to other peers?

You'll take, Sneh, or I'll take?

Hello? Certainly it can be defined to different levels of difficulties, different stage of it.

Just an example, like video game, every layer or every stage you clear, the criticality increases. We are into that niche market kind of an activity where, just an example, where someone is making just to say PCB of fan or tube light, that's too easy to do that things done.

To make this 1 kVA, 2 kVA, 3 kVA UPS, you need an expertise for specific to power electronics, high voltage kind of an activity where instrument cost itself is around ₹30-₹35 lakh to test that equipment. For battery low testing and all specific to UPS, I'm saying as of now, that's in power electronics subject.

If you see, it took us 4 to 6 months just to develop one category of product. That too because we have an expertise, or else it takes years and years of time and still people are not able to get the products ready.

Vinay-ji, in the interest of the time, can we take a shorter question and shorter answer? Maybe one question from everybody, only one question?

Let's finish this first, huh.

Sir, can I ask one last question?

Last time also Rushin already asked two questions before also, Rushin, if you don't mind. Let other people, at least 6 to 8 people take it, yeah.

Sure. We'll take the next question from Darshit Shah.

We just request all participants to restrict Only one question for

participant, please.

Yeah. Darshit, you can go ahead.

Hi. Sorry, I couldn't go through the presentation properly.

Can you let me know how much was the consolidation that happened from the acquisition in the current financials?

$1.6 million, and it was specific for 2 months. Specific to AIC I'm talking about.

Correct.

We'll take the next question from Saumil Jain. Saumil, you can go ahead, please.

Hi, Mukesh-ji. Hi, Sneh.

Congrats on a strong FY26. One question on the order book and revenues.

Telecom as a segment, which is, if I remember correctly, not a large contributor to revenues last year, by last year I mean FY25, but in FY26 it has been a significant contributor and also as a part of the order book itself, a significant part of that. Similarly power and data center segment is again a significant part of the order book.

Can we talk about products here, the better ramp-up within these products? Are these led by single order, single customers, single products, and the potential scale that we can get with these products?

That's it.

Sure. If you see specific to power segment and data centers, power electronics there are couple of customers in that.

Of which one of the biggest contributor is S&P 500 company, Fortune 500 company, Ohio-based company, which are a leading player in data centers. As of now, we are working with them on 1 kVA, 2 kVA, 3 kVA kind of six variants of it, where we do have a visibility of going up to 20 kVA kind of an opportunity just from that one customer, Fortune 500 customer I'm talking about.

Which can be like kind of this year revenue size as well. Can be that big opportunity, again, not immediately, but down the line once we are going ahead in this journey.

Specific to telecom, we are doing Wi-Fi 6, Wi-Fi 7 kind of an equipment. Apart from that, SFP and all that, fiber optics or optical transceivers and all that are also going to be part of it down the line.

It is going to be a combination of all factors and multiple orders. It's not only one customer contributing to all the complete sector.

Thank you. We'll take the next question from Rohan.

Rohan, you can unmute and ask your question. Rohan, go ahead, please.

Am I audible?

Yeah.

My question was with respect to something that Sneh just mentioned on the data center and I think we received some ₹100 crore order. Just wanted to have some more light on that, what is the sort of product and what is the opportunity, what is the revenue that we foresee in the coming future?

As I stated, we are making UPS for that. There are six variants, three sub-categories, 1 kVA, 2 kVA, 3 kVA with battery, without battery, that are going to be used in data centers, EPC, and commissioning as a backup.

As of now, it's a Fortune 500 company. Certainly if you see, can be as big as like last year's revenue as well.

Again, it is not going to be immediate and one-shot. It is going to be a long-term association.

Thank you. We'll first give the chance to participants who've not had a chance to ask any question.

We'll take the next question from Aryan Bhatia. Aryan, you can go ahead, please.

Aryan, you are on mute. Please go ahead.

I think there's a problem in his line. We'll take the next question from Jigar Jani.

Jigar, you can go ahead, please.

Hi. Congratulations for a good set of numbers once again.

Hope it continues for a long time. Just one question which is related to the acquisition.

If I heard it correctly, the ICS or AIC is doing 11% margins as of now on EBITDA level. Large part of your growth say next year will come from this business and the full consolidation of this business, and it will take some time for this to ramp up to standalone margins which are about 20% odd.

Do you foresee some margin pressure on a near-term basis till this gets kind of coming down to our levels of 20% odd on a standalone basis? Just on a data-keeping one, what is the execution timeline for the order book that we have of about ₹570 crores?

By when can we see the execution of this?

Let me just give you a little heads up and then Sneh to answer this. If you see, Jigar, after we acquire, we almost slashed a lot of expenses.

Using a lot of our Indian talents over there in a back end. Let's say they have four people in purchasing.

Now we have only one person in purchasing and three people over here. From 11% to jump to already 15% right there.

I should give a range, but just to give you 11 to let's say 11 to 12 double digit we had, some low double digit. Now we are in mid double digit now.

Also all the machines, all this efficiencies, they didn't have that much. Capacity-wise, they have only 55%.

We are adding more that way, saving some overhead. It's easy to get from lower double digit to higher double digit by mid this year.

Even the later this year, it will be a very close to lower double digit to higher double digit, let's say 18 to 20%. That's our accomplishment will be.

Even though let's say now purchasing power will be increased. Let's say we used to buy only ₹200 crore total of the material purchase, now we are buying ₹300 crore.

That's where it's going to be also 2 to 3% saving right there. Those are the things in acquisition we are getting challenge, we are getting a lot of other stuff.

That is the reason from lower double digit to higher double digit will be very easy to go. It will be within a year or two as we promised, it will be an Aimtron range margin.

Sir, the other question was on the execution timeline of the current order book.

Execution is always 12 to 18 months. Normally we take order only 12 months, but some customers, let's say valve sector customer like ABB, Schneider over there, Caterpillar.

Those customer, they are very stable and they wants to buy some of the parts for longer, we give them 6 months extra. Otherwise normally in EMS industry is 12 months is the blanket order.

Current open order book is 12 to 16 months.

Sure. We'll take the next question from Shaurya Sachdev.

Shaurya, you can go ahead, please.

Hello. Hi, Mukesh.

Hi, Sneh. Just first of all, congratulations on a fantastic set of numbers.

I honestly just want to fundamentally understand the rationale behind the ICS acquisition, more on the product, the market size, the competitive positioning, what synergy it has with our Indian Aimtron, is it different, just fundamentally understand what value add is it providing to the company other than the top line and bottom line addition, what efficiencies we can achieve, etc.

If you find some time, go to Aimtron media page. Nirmal gave us about 15 minutes just for this, what we are getting out of this acquisition.

He gave also 10 other comparison and why we selected ICS, we call AIC now. In the interest of time, I'm not going to go too much in depth, but you need to really you need to see the video.

In that video has every single answer of your questions about how, what kind of mindset of the ownership, what kind of system they have, why we select ICS, and whole 9 yard we call in technical American language. Coming back to main is rugged electronics.

Rugged electronics means lot of is indoor work, correct? We are doing indoor, let's say a home automation is an indoor.

We are doing outdoor, out to the sun over there, let's say farming equipment, the equipment is kind of more in moisture or rugged or coating or potting. Those are the expertise they have plus they have some agritech IP.

Also that means we have now agritech IP. We have also agritech means agricultural technology.

It's another subject. We don't have that much over here because we are doing a simple farming with tractor only.

If you look at that, all this tools over there is very, very advanced in agriculture also. Those are the scenarios we had and that's why we selected.

If you have some times, please visit Aimtron and we can give you more in-person demo what is beneficial. You're most welcome to visit our ICS or AIC facility over there when you are in United States.

Most welcome to see that also. Next call, I will bring some videos also so you can see that then differentiation.

Due to shortage of time, we'll take the last question from Surendra Reddy. Surendra, you can go ahead and ask your question, please.

Yeah. Thank you for the opportunity.

All come together, organically, inorganically, and SMT, defense, everything. What is the top line and bottom line we can expect for FY27, please?

Sneh, bhai, Sneh, question.

We already gave that updates. Probably we are eyeing on that 40 to 50% CAGR kind of an rollover year-on-year.

That's the strategy we are building and that's the platform we are trying to build for both top line. Specific to bottom line, if you see that it is more of an 15% kind of a margin with few percentage or few basis point here and there.

That is what we are eyeing on.

Sure, sir. Since that was the last question for the day, would you like to give any closing comments before we end this call?

I really appreciate this investors community. Sometimes we have to say little different.

Sorry, somebody I said no second question, but in the interest of time. Our goal is to be transparent.

Our goal is to bring American quality with Indian talent and that is scalability we have. We do have a differentiator is we are American company means American mindset company.

If you look at our building, if you look at over here, floor over there, you will see the differentiator. Let's hope to get 1,000 crore journey as soon as possible.

That's our goal. With that, really appreciate everybody's time and thank you so much.

Thank you, sir. Thank you for joining on the call and thank you to all the participants for joining on the call.

This brings us to the end of today's conference call. Thank you.