Thank you. Hello, good afternoon.

Welcome all of you to our quarter four FY '26 post-result update call. As per the normal practice, I'll ask our CFO, Mr.

Maulik, who'll take us through a detailed key numbers for the results. However, I'm assuming most of you would have had a chance to go through this.

At the outset, before I talk about the results and everything, I just want to kind of quickly summarize, talk about what we are as a company and what we do. We are primarily an engineering company with a big focus on a segment called bearing cages, where we are a very unique player within the market, with having competency in steel, brass, and polyamide products within bearing cages, and a very unique position globally having all this competency and precision level catering to very good quality bearing companies and their needs for bearing cages.

That's our primary business. Beyond that, we have worked over multiple years with big global bearing companies to outsource and supply them this product globally, and we have earned a very strong market position within India and across the globe as well.

That being the primary product, beyond that, we also operate in the sub-segment of stamping components using our core competency, and we also have a bushing as another product portfolio where both those segments we are growing very well and plan to grow further. We cater to variety of industry through those segments, including renewable as well as automotive, consumer goods, and other industry.

We are trying to grow no business. We actually operate three facilities in India, third one we just commissioned this year in Bhayla, and two facility, one in Romania, one in China, and through this five facilities, we supply our customer base across the globe.

We are currently working on growing business in various segment specifically for us, growing with Japan-based customer, growing the large size cage business, growing the bushing business, as well as growing the stamping business are some of our big growth drivers as we look at our future. This is just to get you up to date on the area we operate.

With that little bit of additional background this time around, let me jump to the results this quarter. I'm happy to inform our stakeholders that in spite of a current global turmoil which we are witnessing and which could have upset the rhythm of doing business, particularly in quarter four of the current financial, we have done quite satisfactory and have met most of our internal performance expectation on the key fronts.

I'm happy to note that our India engineering business, including all the key verticals, have done very well in quarter four and financial year 2026. Specifically, bushings have also reported revenue of about ₹127 crore for the financial year 2026, in line with our expectation, posting about 25% growth in over last financial year.

In the current year also, we are having a very aggressive growth plan in tune of 25% to 30% in this segment. Our sale of large-size cages grew by almost 14% in FY 2026 and stood at around ₹49 crore, and sale to Japan-based customer grew by almost approximately 12% in 2026, and stood at around about ₹73 crores.

In as much as the large-size cage segment is concerned, we are working very aggressively for increasing our wallet share. Lastly, if we talk about Japan-based customers, the progress, though slow, is positive direction, and we are committed to growing this segment as well.

Engineering business India has posted a good overall growth of around 14% in FY 2026, notwithstanding the fact that Advantek, new unit, and it's still operating at a lower capacity utilization. Thus, in FY 2026, export from India have also posted a good robust growth, almost 17% compared to FY 2025.

Our export to US have also started picking up, duly encouraged by fact that recently additional import tariff on cages has been reduced to zero in US. I'm happy to note that capacity utilization in Advantek is improving, and we should see the sale from this unit growing at least three times in FY 2027.

Thus, while in this current financial, Advantek, though having posted a positive EBITDA of ₹4 crore, has still reported a combined loss of ₹11.4 crore due to higher depreciation and interest. However, the bottom line is also expected to improve considerably in the coming financial year.

In spite of this drag in the current year, our India engineering business has posted an operating EBITDA of around 22% in FY 2026, which is quite satisfactory. Now let me talk of foreign subsidiary.

As hinted earlier, China had performed well with an overall top-line growth of about 9.26% in FY 2026 over FY 2025, and has also posted a positive EBITDA of around 11%. As announced earlier, we have already commenced implementation of China brownfield expansion project of steel cages.

We believe that this will significantly strengthen the business presence in China, and we should expand our product portfolio from a predominantly brass-based cages to a good mix of steel and brass cages. This project should come in operation in H2 FY 2028, and we should also see some improvement in EBITDA in China going forward.

However, Romania continues to perform below par as it is still having negative EBITDA, resulting into a combined foreign subsidiary losses of about ₹11 crore in the current financial year or FY 2026. However, we are trying our best to improve our product mix by focusing more on cages in Romania from current level of around 22% to more than 30%, 35%, and we are also pushing our key customers in Romania to increase their offtake from Romania.

We have also started firming up our capex plan for the second phase in Harsha Engineers Advantek, where our focus will be to create additional capacity for our key growth driver verticals. We will be sharing more details as and when the plans are finalized in next few weeks.

Now talking about our solar business, you might have seen that it has performed very well, achieving strong top-line and bottom-line growth in financial year 2026, mainly on account of continued tailwind due to mix of increasing awareness and a good policy support from the government as well as private sector. Excuse me.

Lastly, I feel confident that the current financial year FY 2026-27, we should achieve an overall double-digit growth in top-line, though the growth in India engineering would be a little bit more aggressive, somewhat in mid-teens. We are also feeling confident that we should be able to at least maintain our current margin profile through our endeavor, though our endeavor is to improve it going forward.

I would like to thank you for the continued confidence in Harsha, and I would like ask Maulik to walk us through more detail with numbers. Over to you, Maulik.

Thank you, Vishal. Hello everyone, and good afternoon.

I believe you have already seen the numbers and the presentation we have uploaded for the investor call. For the quarter ended March '26, our engineering segment at consolidated level have achieved top line of ₹382 crore and EBITDA of ₹77 crore in the last quarter, against our adjusted EBITDA of ₹64.3 crore in previous quarter and adjusted EBITDA of ₹66 crore in the last year quarter four.

While for the year ended March '26, the engineering segment has achieved top line of ₹1,444 crore at consolidated level, against the ₹1,269 crore last year. We have reported our consolidated EBITDA for engineering business at ₹264 crore.

However, our adjusted EBITDA is around ₹270 crore if we adjust it for new labor code impact, while last year adjusted EBITDA was ₹227 crore for our engineering segment. For the quarter and year end, we observed margin have improved, as defined by Vishal, mainly on account of the higher export sales and strong India demand, followed by the better product mix and cost control.

We also have a positive impact on financial earning as well as ERF. Solar business have achieved revenue of ₹183 crore for the full year, with a PAT of ₹10.2 crore for the financial year 2025-26, against the adjusted PAT of ₹5 crore last year.

Our overall working capital cycle at consolidated level remain around 130 days at the year end, against the 134 days in the previous quarter and 127 days in the previous year. We have incurred capex of ₹120 crore in the full year and around ₹20 crore in the last quarter at a consolidated level.

Our bushing business has achieved ₹127 crore, as Vishal has mentioned. Just one correction: our combined loss of subsidiary company in the current year is ₹9 crore, not an ₹11 crore which has been said, and previous year it was ₹14 crore.

11 is on the Advantek part.

Yeah. With this brief on the financial numbers, I request operator to take the Q&A from the participants.

Thank you.

Hi. Congratulations on a good set of numbers.

My first question is on the 27 My first question is on the 27% revenue growth reported during the quarter. Could you provide some color on the contribution from pricing versus the volume growth?

Were we able to fully pass through the commodity inflation of the previous quarters?

27? Quarter-over-quarter?

Q4. Hi.

Thanks, Vaibhav, for your question. First of all, 27% growth which you have observed is a consolidated growth, and major contributor is our solar business over there, which has grown almost 100% plus.

₹91 crore is the last quarter number. While our engineering business growth is 15.7% year while similar year-over-year numbers.

Just to break down this number for your benefit, 27 is including solar, and if I remove the solar business, it is 15.7%. On your questions for the pass-through mechanism, yes, it is very well established pass-through mechanism with the customer.

As per our agreed lag period, it automatically pass through to the customers. Different customer has a different lag period, but effectively you can say that on an average on four months everything gets pass through.

Just one clarification, Vaibhav. Our engineering consolidated India business including Advantek is about 16.6% quarter-over-quarter.

₹28 crore is the Q4 contribution of sales coming from Advantek.

Yeah. Right.

Got it.

Was it entirely driven by the volume growth or was there some pricing benefit as well?

Majority is driven by volume growth, considering that the last quarter, which is September to December, if you observe, there has not been a significant material movement. The movement started at the end of December and ran up to around February or March for the metal prices, including brass.

My second question is on the India engineering business. While we saw the strong performance in FY 2026 and primarily driven by the exports, while the domestic revenues witnessed relatively modest growth.

Could you help us understand the key drivers behind the strong export growth as well as the reasons for the softer domestic performance? It would be great if you could elaborate in terms of the end-user industries and the customer segments.

Yeah. From our point of view, the growth in export is driven by improving markets, industrial global markets, improving European markets as well as US market because of the specifically the tariff impact.

Those were the factors

supported the global market growth and things like that. Other factor on the domestic market, I think that has also grown very well, according to us.

Maybe one of the factor which is masking that is potentially the by-product sales, which might be masking that partially basis of the numbers. Overall, we are confident including India growth has been very robust in FY 2026.

Just to add, India cage business has grown by more than 10% on a pure India-to-India cage, okay? That's almost 11%.

Then there is further growth in India level supported by our bushings business and our stampings business. It's not that khali bushings or stampings have grown.

It is cage also have grown a good volume.

Understood. Sir, lastly, could you share your capex plan for the FY 2027 and FY 2028?

We are in process of fully finalizing all the details of our capex plan. Right now, what we are already looking at is about ₹30, ₹40 crore of maintenance capex in India in this current financial year.

My assumption is very similar number would be there next year. Also, you are aware that we have started the China expansion project and declared an investment there.

Reference to that, about ₹70 crore capex is expected to be executed in current financial year, and further ₹20 crore we are expecting next financial year. These are some of the things which are already clearly firmed and finalized.

There are other things which we are still working on. We are expecting that based on various planning and activity, we will potentially add to this, but it is still under process.

Predominantly, as he said in his speech, the second phase of Advantek, we are starting to work on the desk and probably in the next few weeks, the plan will be frozen. The work will start this year itself.

Understood, sir. Understood.

Thank you very much for answering my question. I will get back in the queue.

Sir. Thank you so much for taking my question.

Sir, my first question just pertains to the Romania and the China subsidiaries. I just wanted to know the absolute revenue numbers for whole of FY 2026 for Romania and China both.

If you could also possibly give their PBT numbers as well?

Sure. We already said that combined loss is ₹9 crore for China and Romania, but I'm happy to share the independent number also, which we will definitely publish also once the annual reports are uploaded.

Our Harsha China has done turnover of around ₹120 crore, with a profit of around ₹5 crore as a profit after tax. Harsha Romania has done turnover of around ₹247 crore, with a profit after tax around ₹14 crore loss.

Loss, ha.

Loss.

14, correct.

Sure. Sir, the revenue is ₹247 crore and loss is ₹14 crore for Romania.

China, revenue is ₹120 crore and PAT is ₹5 crore. Correct, sir?

Correct.

Correct. Okay.

Thank you so much for that. Okay.

Sure. Sir, my next question just pertains to in terms of the demand situation, if you go back two, three quarters, the situation in Europe was pretty weak.

Now just wanted to know, and Europe being a key market for us, just wanted to know how is the demand situation right now in Europe, specifically pertaining to the Europe subsidiary?

Last whole year, we are seeing demand has slowly improved over the year. Specifically for the European subsidiary also, the demand is continuing to improve.

Right now, the indication are that it is all positive, growing, and how we turn around the situation from a cost as well as pricing and all those profitability point of view is our main concern. Overall, we see very positive indication from our customer for our subsidiary in Romania.

Sure. Sure.

Things definitely have improved from what it was. That's heartening to know.

Sir, actually I just missed out on one question regarding the Romania and China subsidiary. Combined, of course now Advantek also is in the mix, I understand that.

Combined, when you look at the loss on a combined level of subsidiary, it's around ₹21.6 crore, to be precise. Of course, it will be a combination of Advantek as well as the China and the Romania entities.

Now just wanted to know, sir, when you look going ahead, '27, '28, are we definitely on a trajectory to basically reduce these losses going ahead? Because we have done a lot of work on the Romanian subsidiary as well, in terms of restructuring, and China is doing well, Advantek also will ramp up.

Understanding is probably there should be a decent ramp-up of all these things, and probably losses will get to reduce considerably going ahead, '27, '28?

Jason, I think it's covered by Vishal in his introductory speech also that this year Advantek has a loss of around ₹11.5 crore or more because of the first year of operations, and mainly despite of positive EBITDA, there is a loss on account of higher depreciation and interest on the loan we have taken over there. Gradually this will reduce because the utilization will increase in this year.

We expect it to be more positive trend this year at Advantek level. While China is already in the positive territory and will increase over there.

Romania, our discussion is already on with customer, and we are hopeful this year to reduce this loss further compared to We already reduced this year compared to last year, and further we will reduce in the coming period.

Exact quantification may be difficult, but definitely there will be reduction.

Significant reduction.

For sure. Significant reduction.

That's Okay. Okay.

That's very heartening to know, sir. That's good.

Sir, again, I spoke to you about the situation Now I just wanted to know the situation domestically, the likes of our big three in terms of the bearing manufacturers, localization, capex. How do you see demand for that on the ground?

We see very positive picture there. Our customers have significantly ramped up their demand and capacity in India, responding to probably all the signals from automotive as well as industrial market.

Further, we feel that there will be another round of investment to cater to the existing or upcoming demand from our customer are the indications we see. We are very bullish.

There could be impact of current war and petroleum prices and all that. That could have some impact from a short-term point of view.

We don't know that yet, but overall, they are very bullish and working towards growth, and we are banking on that to continue our growth journey in domestic market.

Okay. Things seem to have improved.

In the mid term, it was looking a little slow with all the restructuring, particularly one customer, one entity, and all that. Now it's picked up.

The demand and all, you are seeing good demand trends going ahead.

Right now, we see good traction.

Yeah. Sure.

Just finally, I'll just join back the queue. Sir, just wanted to know, in terms of as per geography, Now, of course, in the presentation, you can see that on a consol level, 58% of revenue is outside India, 42% is basically I'm just talking about '26, for the year '26.

So 42% stays within India, and how is the other breakup, sir? Just wanted a breakup of the geographies, what contributes to the total revenue?

We already spoken in past on this, Jason. Our majority geography outside India is Europe, followed by China, America, Japan, and others.

Europe usually contribute on a larger scale because there is a casting cell also from Romania in Europe, and that also part of our overall top line. Usually, Europe in this bifurcation is around 19% in the total sales.

China and America will be around 10% plus, and others will be there. Europe is around 30%.

Europe is around 30% in the total sales, and China is more than 10%, America is around 6%, and followed by Japan and others.

Okay. Sorry, sir.

China and US are 10% each, and Europe is 30%, you said?

China is a little higher than 10, and US is around 6%, 7%.

Okay. Japan is?

Japan is still not significant, around 2% plus.

2%. Okay.

Sure. Thanks for that, sir.

Thank you so much. I'll join back the queue.

Okay.

Thanks for taking my question. Can you break down the full year export growth into the three buckets?

One is on the recovery in the end market, which is Europe or the US, wallet share gains within existing customers for the geography, and any new commercialization in

new programs for the geography? Jaymin, your voice is breaking.

Hello. Can you hear me?

Hello.

Can you hear me now?

Sure. Now it is better?

Yeah. Hello.

Can you hear me?

Hi, Maulik, sir. Can you just break down the full-year export growth into the three buckets?

One is on the recovery in the end market, which is Europe or the US. Second is the wallet share gain within existing customer or the geography.

Any new commercialization in new programs for the geography?

No, Jaymin, we do not share this data to the investors. Basically, we already given a good amount of breakdown of our export sales in the previous question itself.

Just wanted to understand, the growth we have seen for the full year basis, is it more led to the recovery or breakthroughs into new geography, new programs within existing customers?

It's a mix of both. All three items are there, you are right, but we cannot give further breakdown to it.

Okay. When we are seeing mid-teen kind of growth for the coming year, Indian engineering business for the FY 2027, how should we think about the contribution from export, Advantek ramp-up, or the domestic demand?

I think Vishal has already covered in his speech. We expect India to continue to grow in a higher teen or mid-teen to higher teen, and that will be contributed by both, India growth as well as our export growth will continue.

That's the expectation.

Okay. One thing, I'm just looking at your customer's performance, right now they are using the pricing action to offset the inflation pressure in their respective geographies.

Have you seen any change in the sourcing behavior or the localization drive that is going to benefit you from the near to medium term?

Jaymin, I think what you're trying to say that our customers are looking at us only to offset their pricing, actually that's not correct, because through our competencies, we have now become an indispensable partner with them because we play a very important role in helping them grow their product portfolio by making sure that cages are always available. As cage is about 5% of the total bearing cost in terms of value.

Now the problem here is that the customer, the big players have stopped investing in new facilities or upgradation of their facilities over a period of last many years, whereas we have a massive advantage of volume accumulation. We have done absolutely up-to-date upgradation of technology, skill sets, manufacturing capacities, everything.

It is not only the cost part, but it is the speed, the development at which, if they want to develop a tool, they might take much longer time, we do very quickly. The cost at which we are able to develop that new tool, I think all these factors become very critical.

This is one product where a customer does not do any further processing. If you look at inner ring, outer ring, anything, they do grinding.

A cage, they directly put it in the bearing, and it's a very important component. I think I would say today, cost is important, but not the barometer for them to consider.

No, sir, I understand. My question was different.

My question was, this part of the customer, they are facing inflation on the cost front. Right now, they are offsetting cost inflation through the pricing piece.

They are not doing a lot of vendor consolidation or any change in the sourcing piece. Anything you are seeing from your side that could benefit you in terms of your vendor consolidation or increasing outsourcing?

That's an ongoing project, Jaymin. As we already informed you, outsourcing is the areas which is more beneficial to them whenever there is a global scenario or global challenges.

It's an ongoing thing. There is nothing specific which we have to announce today.

New product development and outsourcing activities are ongoing activities, and pricing pressures are in our favor.

Sir.

Yeah.

Thank you so much, sir. That's it from my side.

Thank you, Jaymin.

Hi. Congratulations for a good set of numbers.

I had two questions, sir. One was on the Advantek subsidiary.

What in your estimate would be the timeline to ramp it up to the maximum capacity, and what is the ballpark figure in terms of top line that Advantek can contribute? Second question is, sir, this is a bit longer term, over the next two, three years, keeping aside the current volatility.

Since we are into precision components also, and apart from that, bearing cages, the capex cycle that we are seeing locally and even globally, what do you feel is going to drive Harsha's growth as a company for over a two, three-year period? What components or rather what end sectors do you think are going to help Harsha achieve the long-term goals?

Let me take your first question, Jay, about the Advantek optimum capacities. Advantek is still in a growing and fixed assets spending stage, but what I can say you is, based on the current installation capacity, we expect it to reach to the peak in next two years, the current installed capacity, but we also expect it to get into the next phase of expansion also, meanwhile.

Hence, it is difficult to give you precise answers, but with the current installed capacity, we expect it can give us around ₹250 to ₹300 crore turnover. As I just said, this will further enhance as we further go for expansion in our Advantek subsidiary.

On your second questions about growth and area where we can grow better, I ask Vishal to give you more insights.

Yeah. For for us, Jay, cage is important growth driver, and within that, we have identified that, out increasing the outsourcing or wallet share through in-sourcing to outsourcing is a very big growth driver for Harsha.

Within that, large-size cages is there. We we see that a lot of manufacturing is moving to India, which should also additionally benefit Harsha, bearing manufacturing moving to India.

We are also bullish on, bearing industry growth, and within that, additional growth coming to Harsha based on the outsourcing as well as resourcing, as well as, India more India manufacturing and and us having a big share of market in India, and so on. Cage is a big growth driver for us, including, even we consider Japan-based customer growing wallet share with them.

Beyond bearing cages, we expect at least stamping component and bushing business to also grow much faster. We are expecting from a midterm basis at least 15% to 20% growth in these two segments.

We are expecting because, we are investing in new capacity, additional product portfolio, even in these two product lines. Right now, we expect that all all three establish currently established product lines should give us deliver a good growth numbers.

Then further, we are looking at expanding this portfolio beyond, but in a short to medium term, though these are all good growth drivers for us.

Just to quickly add to complete the story, as you would have seen in the presentation, we have given the data of SKUs that are being developed every year, about 500, 600 new SKUs. One SKU is a one particular type of product, which has extended my SKUs to beyond 8,000.

Now, these are the new products which are the pipeline for cage come to us going forward, and that is an indicator that how the pipeline is quite robust. On the bushings also and stampings, we are developing new new products, new variations, multiple variations.

We are feeding the pipeline there also. I think the serviceable market is much bigger, and we should continuously see at least at the India engineering level a minimum 15% growth year-over-year in a normalized situation.

We don't find any problem, whereas the bearing industry per se globally doesn't grow more than maybe 7%, 8%. This is where we are.

Understood. Sir, thank you so much for the detailed answer.

Just one more follow-up on the same, sir. Since you said that insourcing is a big strategy and a lot of manufacturing is moving to India, and since Harsha is already engaged with all the bushing bearing majors of the world, is there any discussions with all these bearing majors to, given Harsha's capabilities, that more and more parts, apart from bushings and even cagings and other components, that they are looking at more parts to give to Harsha, given your capabilities and your relationships?

We are not really going beyond stamping products with our customers. At times, we expand our portfolio with our customer beyond bearing cages, and we have successfully done that.

Primarily, that would mean stamped product beyond bearing cages and few other products. We do not really intend to majorly, as we speak today, we are not in a strategy to go into any other specific bearing components beyond cages and related stamping and other components.

This may change. There is

a reason. I have a very big headroom for growth.

If in India my wallet share is, say, 70%, 80%, 90%, overseas within all this big customer, the wallet share varies from 10% to 20% on the three established old relations, and maybe 2%, 3% with Japan-based customers. To woh wallet share main aaram se thoda aur grow kar sakta hoon, jiske liye bohot kaam hai.

Abhi at this point in time, of course, we have diversified into bushings and stampings, which are related. Cage mein yeh focus hai ki, bhai, maximum wallet share we should take going forward.

Understood. Super.

Sir, what was the reason, if I may ask, that over the last few years that we couldn't ramp up the wallet share? Were they looking for facilities outside India?

Basically closer to their end customer or factories, and was that the reason that we couldn't scale up, and that's why we are putting more money now in Romania and China?

I think primarily the markets last two years, we faced a big challenge of degrowth in our biggest market of Europe and a little bit in China side, specifically, and even a little bit US last year. Now, having said that, they have started coming back.

Partially our growth is driven by that, and also our growth currently is driven by all the new additional wallet share we won during that time, but realization got delayed. Now we are into execution.

We don't see at that as a challenge, as a wallet share degrowth, but more of we couldn't move the wallet share and our biggest market softened over last couple of years.

Sir, wouldn't be fair to assume in Europe, like it has happened in chemicals and in some cases casting, forgings, a lot of big players have gone out of business, has our sector also seen some consolidation, and that's why we are now more confident to get incremental wallet share?

Yes, you're right. See, I can't share any specific names, but yes, there is some consolidation.

That is also driving our endeavor to increase our wallet share. You're right.

Understood. Sir, just last question.

If you could throw some light on sectors that are really doing well in India and Europe, end sectors, as you would be speaking to your customers and their customers over a medium to long term?

We are seeing, as I said, without going into subsector, industrial has been doing very well last six months plus, and current indication is that that should continue. We are seeing good growth on the automotive side, specifically India, and some potential green shoots on the automotive across the globe, but not very clear about that one.

In general, as yet, wind has not picked up in Europe, the plant in Romania facility was quite focused on wind as a primary market. That is not yet a great news.

Beyond that, we are seeing industrial sector across the board growing and supporting. Even we are seeing positive signs of railway in India and across the globe, some orders coming in specific to that, and so on.

Again, we would not have a very sharp insight into a subsector because at the end of the day, we supply to customer who assembles it and gives it to a sector, or industrial or automotive. That's a little bit of limitation from our side, be able to clearly tell you that.

Understood. Sir, thank you so much for answering all the questions in detail.

All the best for the future.

Thanks, Jay-bhai.

Thanks.

Namaskar, sir. Hope I'm audible.

Yeah.

Sir, if we look at our last two financial years, we have done capex to the tune of closer to ₹210 crore for FY '25 and ₹120 crore for FY '26, and now the property, plant, and equipment closing balance is at 615. At peak utilization level, sir, what should be the likelihood number?

I think so now with the inflationary trend, what should be the revenue trajectory that we are anticipating, or how should we look at this number of ₹300 crore translating into the business opportunities going ahead?

Before Maulik gives you specific answer, one thing. The new capex of Advantek also includes the fundamental infrastructure development, which will not immediately translate into a fixed asset multiple.

As a

revenue multiple. Yes, Maulik.

That's right. That's why, Mr.

Saket, if you see our overall plant and machinery is obviously the net block you have seen, but considering the capability and followed by our maintenance capex, we expect the current three set of business can easily reach us at India level around ₹2,400 to ₹2,500, and consol level can be around ₹2,700 to ₹3,000 crore, depend on what kind of capacity we look into. Because at consol, we also have a casting capacity, which is an independent capacity from the cage.

This is the input to your questions, Mr. Saket.

Sir, last year we did around, I think so, more than ₹100 crore for the bushing segment. What have we outlined for the current year?

How are the order books for the bushing segment in particular?

Vishal has already covered in his introduction. The expectation this year, bushing is also to continue similar growth trajectory of around 25% to 30%.

We did ₹127 crore in FY '26, huh? In bushings.

Right, sir. In the caging part also, sir, I think so the large cages, we were finding it more headwinds going ahead, if correct me there.

In terms of the product profile, which segment are you seeing better opportunities and how should the category perform?

Large-size cages have done about ₹50 crore, 14% growth this year. We expect at least this segment to keep on growing in mid-teens without any problem, 15% to 20%, no issue.

A lot of things are in pipeline.

Okay. Sir, as you alluded to the earlier reply that we are anticipating mid-teen growth for the current financial year, and what should be the EBITDA margin trajectory?

We will continue to share, Saket, the blended EBITDA only. We expect our EBITDA, as you must have seen in last few quarters, it has improved, and we expect it to continue to improve marginally.

Over the period of two to three years, our expectation is overall increase of 100 to 200 basis point in our EBITDA.

At the consol level.

India has been consistently doing about 20%, as you know.

We already given this

input

before. Sir.

Sir, all the best to the team, sir. This time also, we are coming up with our AGM also earlier.

A lot of insights and annual report would be at our disposal much early than what it used to be. Thank you for the team for looking into the request.

Appreciate your input. Thank you, Saket.

All the best. Thank you.

Namaskar.

Sir, thanks for taking my question again. Sir, just wanted to know the absolute value of the stampings revenue for FY '26?

Stamping absolute value, ₹60 crore. 60, yeah, ₹60 crore.

₹60 crore. This is also expected to grow by 20% this next year?

Yeah. It will grow better, yeah.

Yeah.

Okay. Sure.

Sir, just a follow-up question just wanted to know, again, when I go to the past, I spoke about this, the Europe demand was weak. Now we are seeing situation improving on the ground.

Just wanted to know, sir, because it's a very important market for us, what is your thought on the sustainability of this demand? Has something changed on the ground that demand trends are coming back?

Just wanted some color. You've done a lot of restructuring, etc., as well.

Is that working out well, or has the macro situation improved? Just give us some color on the demand situation in Europe and how sustainable this can be.

As I said earlier, Europe is slowly improving. There is no big stroke of improvement.

We are seeing a slow, sustained improvement happening in Europe from a demand point of view. On some improvement and structuring, we still see that there is an ongoing work.

We're not done yet, and there's a lot of still pending work within that in terms of creating a right cost structure in Europe. We are continuing to face massive inflationary pressure in Europe, which is also adding to this whole challenge.

From a overall outlook, we are bullish on the demand side of it. We're seeing, I think someone was mentioning about, because of the downturn and inflationary challenges, a lot of companies has a impact.

We are hopefully so far surviving, but we are also evaluating how long we can do with this kind of negative margins. How we can quickly improve on the operational side further, and also we are looking to improve on the top line faster.

That's the intent. Having said that, I don't have a very clear direction or a input from our customer on that demand improving to the level needed immediately.

We are continuing to work on the cost side of it. Again, a very hazy picture, but that's what we are working with right now, but very hopeful and positive.

Sure. Sir, just wanted to know, in terms of bushings, we have seen very good growth and expectations are also for good growth ahead as well.

Sir, what is driving this growth in the bushing space? 25%, 30% is very healthy.

Just wanted to know what is driving this growth, sir, on this front?

Primarily there is a conversion for design. In the wind market, wind gearbox, if you look at a planetary gearbox, the planets, which were earlier using bearings, are now using bushings, and that is driving this drastic growth.

The underlying market is roughly the same, or maybe growing, the wind market specifically in India, but the growth is driven by more and more design coming under the bushing concept vis-à-vis the earlier design of bearing concept.

Sure. That's more driven through a design change, which is good.

Sure.

Substitute market.

Yeah. Sure.

Sir, just in terms of stampings, I would just assume that in terms of end-user markets, it will be again varied between automotive and industrial, is my understanding correct?

Correct. It's a whole lot of automotive, industrial, railway, as well as we we work with one big chunk is going into consumer goods,

white goods.

We are making, big growth driver for us, one of the big growth driver for us is air conditioning compressor components, as well as white goods like home appliances, some of the stamping components for that. That is, driving that growth.

Okay. It goes into white goods as well, which is pretty good.

Okay. With AC market also growing, expanding.

That's good, sir. Just finally, sir, wanted to know, in terms of the Middle East crisis, we have seen this, of course.

Now just wanted to know any issues during the quarter in terms of any logistical issues, shipping, or any raw material price increases, or going ahead, do you envisage anything impacting us adversely?

I think there is definitely a impact on the cost side of it, which we are trying to mitigate. I don't have a clear answer on that, to what extent and where, but we are seeing the impact across the board on the input side of specifically when we use some of the oils, lubrication things in our production.

That, of course, has a cost impact. Our plastic cage material obviously has gone up.

That is also an issue which we are dealing with or addressing it, countering it, or passing on, working on passing on. On the logistics front, so far, we have not seen any impact, specifically because if you remember, this whole Suez Canal crisis happened about two, three quarters back.

Anyway, taking the hit and impact a few quarters back. That shipping route has remained clear of current immediate crisis, for us at least.

Okay. Considering that also, sir, you can basically improve from here on.

I understand this could be a near-term pressure, but even considering this, you can expect, going ahead, we can basically improve margins or at least maintain current margins.

Our intention is that there is definitely pressure on the input material, for sure.

Sure. Thank you so much for answering my questions.

Thank you so much.

Thanks, Jason.

Yeah. Thank you for the opportunity.

Sir, mostly my questions has been answered, you mentioned our growth will be around in mid-teens for India as well as for overseas business. I just wanted to know have did a very good growth on the solar segments from 140 140 odd crores to around 185 crores.

Can you share the number on that?

Solar growth. We expect solar also to continue grow well.

I think you're asking for the solar growth estimates, right?

Ha, sir. I think it's grown around 30 30 35 odd percent, right?

Solar is also in the tailwind sides, and solar will continue to grow because the government policies are much favorable, especially in Gujarat territory, and we expect it to grow more than 25% also going forward.

Okay. With that growth, our EBITDA margin should improve from current levels, right, sir?

It has seen a very good operating leverage from 4.5% to 8% level in FY '26. It should improve there as well, right?

We expect solar to maintain the last year reported EBITDA margin, maybe marginal improvement over there.

Understood. Understood, sir.

Yeah. Yeah.

Thank you, sir.

Thank you.

Great. Thank you very much, everyone, for attending this conference.

Appreciate your time so late in the day, and thank you, and have a good evening.

Thank you. Thank you.