Thank you. Good evening, ladies and gentlemen, and thank you for joining us today.

I'd like to introduce the people on the call. We have Pankaj Mital, we have Anurag Gahlot, we have Gulshan Pahuja, we have Laksh Vaaman Sehgal, and myself on the call.

I warmly welcome you to the Motherson Sumi Wiring India results call for the third quarter of FY26. I appreciate your continued interest and confidence in MSWIL.

The quarter has been marked by a mixed operating environment. While the Indian automotive industry demonstrated a very healthy growth, we also witnessed sustained upward pressure on commodity prices, particularly copper.

Against this backdrop, I'm pleased to share that MSWIL has delivered a strong, resilient performance reflecting the robustness of our business model and the disciplined execution of our teams. During the quarter three, financial year '26, MSWIL reported a healthy year-on-year growth in revenues, EBITDA, and profitability, and with both reported and ex-greenfield operations showing steady progress.

Our greenfield investments are strategic and position MSWIL well to support the future growth across ICE, EV, and hybrid platforms. The increased contribution from these facilities will further strengthen our scale and competitiveness over the medium to long term.

I'm also pleased to highlight that MSWIL continue to maintain a debt-free status, supported by a strong cash flow generation and prudent capital management. Our performance remains on deepening customer relationships, increasing content per car, and supporting OEMs as they transition over the powertrain technologies.

With that, I now hand it over to Pankaj, Anurag, and Gurcharan, who will be happy to address any questions that you may have. Thank you, and over to you.

Operator?

Hi. Thanks for taking my question.

My first question is on the copper inflation that has affected the margins in this quarter. Can you just refresh as to what is the overall exposure in terms of copper, how big it is in terms of either RM or net sales, and what is the typical contractual agreement with the customer OEMs in terms of pass-through?

Thank you. Pankaj and Anurag, either of you can...

This copper has given a total impact of approximately around 1.9 to 2% at this moment, and we have back-to-back arrangement, contract with the customer for these arrangements that it will be by a quarter lag or in some cases a six months lag.

I hope that answers your question, Gunjan, because the money will come before the end of the financial year, but it only affects the time lag.

Got it. Just a follow-up.

You quantified the impact in this quarter, but the commodity has continued to go up, right? Copper has continued to go up.

Is it fair to say that there is a similar sort of impact which we can see in quarter four as well? I'm just trying to understand how much of the inflation is already factored in this quarter and how much more to go, a little bit more color on that.

Anurag?

When the copper price will be in upward trend, there is a impact which is there on the temporal basis, but we have a pass-through arrangement with our customers. Whenever it get increases, we always get compensated.

In terms of inflationary, we don't have a control on the increasing copper prices. Having said so, whenever it is on increasing trend, our discussions with the customer getting progresses at the fast pace also, that there should be a minimum impact which needs to be the same.

They are certain customer where we getting adjusted on a quarterly or a half-yearly basis, lag will remain. The discussion with the customer, how to minimize that so that we can consider the inflationary which is going there right now as per the current market scenario.

Got it. My second question is on the new startup plants which you had all these programs which you've spelled out in one of these slides that there's been some delays on the programs, and some of them are, I think, EV programs.

Can you give some color on when do we expect those programs to come on stream, and how should we think about the utilization ramp-up of the new plants?

I can tell you that for the EV powertrain, you can see that in the one of the project of EV, that is the volumes are gearing up right now in Q4, and the other location is in Pune where the EV powertrain, one model is launched in earlier in the year, and this is, again, the volumes are still ramping up on to those as assessed by the customer in their RFQs. We have to watch it carefully and because they're not going to ramp up as the volume has been suggested in the first place, but slowly we are seeing that there is an improvement in that.

Okay. Got it.

Thank you. I'll join back the queue.

Yeah. Thanks for the opportunity, sir.

Sir, first question on the growth side. In the last few quarters with the industry growing at 4 to 5%, we have been growing at close to mid-teens.

Now with the industry growth picking up meaningfully, and even the copper price, which also sort of benefits your revenues as it is a pass-through, is there anything else which is sort of maybe dragging down the growth to some extent, given the strong industry momentum, if you can sort of talk about something there?

I think this particular thing refers to just the time lag, really. Second quarter third quarter second quarter, we had Diwali and all these other particular thing and the announcement by the government, but I'd let Anurag answer that question or Pankaj to help him if if if necessary.

I would say that there is nothing else which we can think of, but the newer models getting launched, the volumes have come up, of course, with the reduction in VAT, and therefore we see higher revenues as well. The entire impact of copper, as my colleagues already explained, has not been factored in the revenue, but it is in the cost.

Understood. Understood.

Second question is, sir, on these greenfield plants again. I think if I look at the revenue ramp-up, they are probably reaching maybe close to the 50% utilization levels, and the EBITDA loss is also haven't gone down meaningfully.

When should we expect probably an EBITDA breakeven? At what utilization level do you think we can achieve the breakeven at the EBITDA level at least?

As the volumes of the customers are ramping up, I think we have also mentioned in our presentation that in some cases the ramp-up has been slower than expected. In some cases, it had been deferred.

We believe that in the coming quarters, step-by-step, it will continue to improve. Already the performance is improving as the volumes have kicked in, and before the start, we have to put all the costs.

We try to build that up, and they will continue to taper down, and in the next, I think, two to three quarters, we should see these ramp-ups reaching the right levels, so...

Got it. Sir, last question is on the cost impact which you highlighted of about close to 200 bps in the quarter.

If we look at the ex-greenfield margins which are at 11.3%, that also will be impacted by this copper. Is it the right assumption?

Yes. It's a right assumption because copper is all across.

Okay. Okay.

Even there as well, we should see improvement as these get passed on to the customers over the period.

Right.

Okay.

Actually, I don't think anybody in the kind of scenario you have the rupee devaluation also, and you have the price increases also. Definitely we've not seen anywhere resistance from the customers.

They are very much helpful to make sure that we are maintaining this particular facility. Right, Pankaj?

That's right, sir. It has always been.

It's a contractual understanding between us and the customers for this pass-through.

Got it. Sir, lastly, on the capex side, if you can just highlight what is the capex plan for this year and next year, if possible?

Go ahead, Gurcharan. Yes,

sir. For this year, we projected a capex of 220 crores.

Out of that, 150 crores have already been incurred, and we're expected to go as per the plan in the remaining period of this year. For the next year, we are populating the budgets.

Our discussions with the customers are ongoing, how the plans would be placed. Basis that, we would be able to finalize that.

Probably in the next quarter or so, we would be able to give a clarity on the numbers for that part.

Understood, sir. Thanks a lot.

I'll come back in the queue.

Hello, am I audible?

Yeah. Good evening, sir.

Rahul here from Nuvama, and thank you for the opportunity, and congratulations for the strong revenue performance. Sir, my question was on the ramp-up of the greenfields.

You have indicated in the presentation also that Gujarat plant is ramping up in Q4. Even the Kharkhoda plant ramp-up is continuing.

Going forward over the next 6 to 9 months, do you expect the plants to reach optimal utilization, and once they reach that kind of utilization, would you expect the margins for greenfields to be closer to the blended margins?

Thanks, Rahul.

Rahul here, sir.

Rahul? Anurag?

Yes.

Yeah.

Obviously, as you have seen in the presentation also, that one of the location, these greenfield is already reaching to around 80% of the utilization, and the Gujarat one is also going to happen as the volumes are going to ramp up and the new launch which is happening in this quarter, as well as in the Pune location, obviously their volume has gone down, but by the one of the customer. I think for the other two location, for Gujarat and Kharkhoda, yes, in the coming time, this will reach to the optimum utilization, but for Pune, we will be filling to the new businesses also.

I think another two to three quarters, you will see that they will be reaching to the optimal utilization, and thus as you asked for the margins also, that will also get improved over a period of time.

Thank you, sir. Given that several new models are being launched by OEMs and industry growth is also healthy, do you see the need for more facilities coming up in the subsequent quarter?

Absolutely. I don't know next quarter or next year, but whenever any plant in Motherson reaches close to 80% utilization, we are already in the look for land, building, and new facility.

We always do that every year. That's the reason why we are far ahead of the competition and always in sync with what the customer wants or expects.

Good to hear that, sir. With relation to the top three customers which you are serving from the three greenfields, would you be supplying both the high voltage as well as low voltage harness for their EVs?

Anurag, this is a loaded question. Let's see if we can help

Raghu.

Let's see if we can help

him. If you can see the presentation also, we have also mentioned that the powertrain we are going to supply.

If you see, then the Gujarat, we are in the EV and ICE both. Kharkhoda is only ICE, but again, the Pune is having EV and ICE both.

Powertrain is not a issue for us. We are engine-agnostic organization, and we can do any of the business.

Got it, sir. Given that EV share has reached 6% in Q3, and last quarter also it was broadly in similar range at 7%, and given that EV share keeps increasing, would you have similar level of localization and profitability for high voltage versus low voltage?

Absolutely. We have a lot of imports from Sumitomo, and even Motherson, in its own capacity, to localize.

All those investments are being done by SEWS and the suppliers and also Sumitomo and companies from MSWIL. I think they're all based on what the customer wants, and we do that.

Anurag, you want to add something, or Pankaj?

No, what you said is right. The localization level is increasing with the new models, and of course, when you ask about the profitability, then it has no specifics on a particular type of a product.

Got it, sir. Very helpful.

Thank you so much.

Hello? Hello.

Can you hear me?

We can hear you.

Hello?

Please go ahead.

I just wanted to ask how much percentage of copper impact if copper increases by 10%, then the whole 10% is passed on to customer or there is some impact which we take in our books?

Anurag, it depends on the customer, but Anurag will give you an answer.

Whether the price goes up or down, it's a very transparent mechanism of complete pass-through.

Okay. Then means it's complete pass-through.

Okay. That's it.

Thank you.

Thank you, sir, for the opportunity. Sorry, I joined a little late, sir, but anything, sir, on the labor codes impact for this quarter and incrementally how much could be the impact, sir?

Sure. Anurag?

Gurcharan?

For this quarter, the impact is not that significant basis the information currently available and the draft rules came in place. Of course, there has to be a development which needs to be seen as we progresses further because state rules and the central rule needs yet to be notified.

Far, whatever the best understanding we have, the impact have been ascertained, and that impacts come out to be insignificant for the current quarter and nine months.

Got it, sir. Second on this last few quarters growth has been very strong.

Just want to understand if you can give some flavor how each of some of the segments like PVs, two-wheelers, CVs have done, sir, in last a few quarters, sir?

Sure. Anurag?

Yeah. I can tell you the PV industry on year-on-year has grown by 19%, sequential basis around 6%, and nine months if you see compared to the last year, it was 9%.

In two-wheeler, year-on-year is 15%, quarter-on-quarter it has gone declined by 2%, whereas nine months is around 9%. CV industry year-on-year is 18%, quarter-on-quarter 10%, and nine months is 10%.

Everything remain in positive side.

Yeah. Just on our side, how we have fared, sir, in each of the segments, sir?

See, we are giving only the overall basis. That's what we have grown by 25% in year-on-year basis, and we don't go into the segment-wise specifically.

As we are supplying to all the OEMs in the country, you can understand that this 25% is coming from all these categories.

Got it, sir. Thank you.

Thank you so much for the opportunity.

Hi. Thanks for the opportunity.

Just if you can repeat the numbers for the CV industry you mentioned as to how that has grown, if you just can repeat the numbers?

Yes, the CV industry year-on-year is around 18%. I'm talking about this manufacturing, production of commercial vehicle.

Right, right.

Quarter-on-quarter is 10%, and nine months is around 10%.

All right. That's helpful.

Thank you.

Thank you. Thank you all very much for attending this MSWIL's third quarter numbers.

I think the teams have done a phenomenal job. Multiple plants everywhere, they have made sure that they have not lost vehicles.

They are absolutely in sync with what the customer wants. Board congratulated all the team members and said phenomenal job done.

In spite of whatever the headwinds, we still did phenomenally well. Thank you all very much for attending, and wish you all a happy weekend up in front of you.

Thank you. Bye-bye.