Thank you. Good morning, and welcome, everyone.

On this call, I am joined by our CFO, Mr. Vikas Goel; CEO of our ADS division, Mr.

Hari Krishnan; CEO of Automotive division, Mr. Rahul Kale; Head of our Corporate Strategy, Mr.

Praveen Chauhan; and our investor relations advisors, the SGA team. The results and the presentations have been uploaded on the stock exchange and company website.

I hope, with the limited time that everyone has had, a chance to review them. Before I walk you through the quarterly highlights, I would like to take a moment to reflect on the strong progress made during FY 2026.

This year has been a pivotal year for Sansera Engineering as we delivered record revenues, sustained healthy profitability, accelerated our non-auto diversification journey via ADS business, expanded our manufacturing footprint with the inauguration of the new facility at Pantnagar, and entered into a strategic joint venture with Nichidai Corporation, Japan. The fact that these achievements came amidst a challenging macro environment, marked by global tariff uncertainties, export slowdowns, and continued geopolitical volatility, make them even more special.

On this special occasion, I would like to thank entire team of Sansera who has put in a lot of effort to achieve what we have done. I also would like to thank all our customers for continued confidence in Sansera.

Our FY 2026 marked a highest-ever annual performance with a top line of INR 34,979 million and improved EBITDA and PAT margins, reflecting strong operational resilience and the successful delivery of our growth objectives. This also includes achievement of our ADS segment guidance, with ADS revenue from product sales reaching INR 3,155 million, representing an exceptional growth of 155% during the year.

Full-year revenue including scrap sales for ADS would be around INR 3,498 million. Coming to Q4 FY 2026, we continued our strong growth momentum and delivered our highest-ever quarterly revenue of INR 9,987 million.

Throughout the year, we saw margins improve every quarter, and Q4 margins showed a marked improvement, primarily led by the revenue mix and operating leverage. We continue to see strong opportunities emerging across both automotive and non-automotive segments.

As domestic automotive OEMs continue to undertake large-scale capex and capacity expansion initiatives over the coming years, this creates a strong opportunities for precision engineering players like us. At the same time, the pace of EV adoption, particularly in two-wheeler segment, continues to accelerate amidst ongoing energy transition and geopolitical developments, creating long-term opportunities for our xEV and tech-agnostic offerings.

In non-auto space, global aerospace order books remain at historically high levels, and India is increasingly being recognized as a strategic manufacturing and supply chain hub. The Government of India's Semiconductor Mission 2.0 also strengthens our conviction in the semiconductor opportunity and aligns well with our ADS diversification strategy.

AI has become the single biggest driver of the semiconductor upcycle, fundamentally changing both demand intensity and capital allocation across the global chip ecosystem. Despite the strong structural tailwinds underpinning the business, the operating environment remains fluid, with inflationary pressures across steel, aluminium, energy, tooling, consumables, and freight, etc., we are proceeding towards FY 2027 with caution.

Zooming in on our performance for the quarter, our core auto ICE business delivered its highest-ever quarterly revenue of INR 6,426 million, registering a healthy YoY growth of 21.6%. The growth was primarily driven by strong momentum in the passenger vehicles and commercial vehicles, with passenger vehicles being broad-based across OEMs and commercial vehicles led by the strong growth in Swedish subsidiary.

At the same time, our auto tech-agnostic and xEV segment also registered its highest-ever quarterly revenue of INR 1,217 million in Q4 FY 2026, reflecting a healthy growth of 19.8%. Our non-auto business sustained its strong momentum, delivering a record revenues of INR 1,736 million, registering a robust growth of 70.5% year-on-year.

Within this segment, the ADS business more than doubled on a year-on-year basis. As of March 2026, our peak annual revenues for new business stood at INR 19.2 billion post our annual reset exercise.

New order booking for the quarter remained soft, largely from international customers due to global uncertainty. If we look at our cumulative unexecuted lifetime order backlog for five years, specially for the ADS business, it stands at INR 44.6 billion.

Looking ahead, we remain confident of sustaining a similar growth trajectory in the coming year while maintaining healthy profitability. Within the auto business, FY 2027 H1 is expected to be relatively stronger than the H2, aided by favorable base effect.

To capitalize on emerging opportunities, we are scaling capacities while simultaneously enhancing our management bandwidth. Mr.

Rahul Kale, who joined us a couple of years back as COO, has been elevated to CEO for the Automotive division. With his over two decades of extensive industry experience, he forges healthy relationship with Sansera ecosystem, and he is well-positioned to take Sansera to its next phase of operational excellence.

Further, I would like to announce the appointment of three new independent directors on the board as part of ongoing board succession activities. The company has appointed Ms.

Radhika Govindarajan, Mr. Deepak Keshav Gaikwad, and Mr.

Venkataraman Mamilapalle, subject to the approval of the shareholders. Notably, Mr.

Muthuswami Lakshminarayan and Mrs. Revathi Ashok will step down from the board effective 27 July 2026 upon completion of their tenures.

The company expresses its gratitude to the retiring directors for their strategic guidance and contribution towards the strengthening of the organizations over the years. On the capex front, during FY 2026, we incurred a capex of INR 5,097 million, and we expect a similar level of investment in FY 2027 as well.

A part of this outlay is directed towards expanding our ICE capabilities as our existing facilities are currently operating at near-peak utilizations. In addition, we are setting up new ADS facilities to support growing demand, backed by our strong order book.

Further, we continue to invest towards adding capacities into forging and machining in our existing facilities of Plant 6 and Plant 12, respectively. With a healthy cash position of INR 3,972 million, our balance sheet provides ample flexibility to support future expansion without significant dependence on leverage.

With this, now I would like to hand over the call to our CFO, Mr. Vikas Goel, who would walk through the financials.

Vikas?

Thank you, Preetham. Good morning, everyone.

Let me take you through our consolidated financial performance for the fourth quarter of FY 2026. Revenue from operations grew by 28% year-on-year to 9,987 million or 900 999 crores to make it simpler, marking it as our highest-ever quarterly revenue achievement, notably strong growth in the ADS and Sweden businesses during this period.

Due to a positive product mix shift towards higher ADS revenue contribution, we witnessed margin improvement during the quarter, leading to a 306 basis points increase in the operating margins. EBITDA for the quarter stood at INR 1,929 million, registering a strong growth of 52% year-on-year, while the EBITDA margin has improved to 19.3% as compared to 16.3% in the fourth quarter of FY 2025.

Other income for the quarter increased by 170% year-on-year to INR 266 million, largely on account of INR 50 more 54 million as interest income and INR 172 million of forex gain. The employee expenses for the quarter stood at INR 1,298 million with a year-on-year increase of 14%, reflecting an operating leverage effect on the revenue increase of 28% during this period.

Other expenses came in at INR 953 million, which grew by 28% year-on-year. Increase was driven by business growth, coupled with elevated logistics cost and certain other costs where we experienced higher inflation amidst the evolving geopolitical landscape.

Finance costs for the quarter stood at INR 112 million, expressing a year-on-year increase of 17%, reflecting additional working capital borrowing to support the business growth. Profit after tax for the quarter stood at INR 1,231 million, registering a strong year-on-year growth of 108%, with PAT margin expanding to 12.3% from 7.6% in the Q4 of FY 2025.

Now talking about the full-year performance, we recorded an annual revenue from operations of INR 34,979 million in financial year 2026, reflecting a year-on-year growth of 16% over INR 30,168 million in FY 2025. EBITDA for the period stood at INR 6,321 million, registering a year-on-year growth of 23%, while EBITDA margins improved to 18.1% from 17.1% in the previous year.

Other income for the year stood at INR 596 million as against 203 million last year, comprising largely of interest income of 233 million and a forex gain of 311 million. Profit after tax for the period was INR 3,269 million, registering a strong 51% year-on-year increase, with margins improving from 7.2% to 9.3%.

Our operating cash flow net of tax continued to be healthy and stood at INR 3,871 million, which is 11% of our operating revenues and 61% of our EBITDA for the year. We also see an improvement in our return ratios, with ROCE at 18.0% as against 16.2% in FY 2025, and ROE at 11.1% against 10.5% during last year.

With this, we would like to conclude our opening remarks and open the floor for question and answers. Thank you.

Good morning, Preetham ji, Vikas ji, and congratulations on a great set of numbers. Very heartening to see the trajectory change for the company.

My question is that when we look at next 2, 3, 4 years, and we have set a very ambitious target for ourselves on ADS moving to 1,300, 1,400 crores, overall company revenue moving up to 8, 9, 10,000 crores. Can you give us a strategic roadmap on where we are because this is a year-end FY 2027 26 call.

Next 2, 3, 4 years, how do you visualize the company, how the shape and size of the company will look like? Will be very, very helpful for us.

Thank you, sir. We always are thankful to people who have been with us and have confidence.

You are one of the very early people who have been investing in Sansera, and thank you very much for your confidence. We as a company, when we got listed that, as you're aware, we said that while we so committed to our growth trajectory in auto ICE, we also said that as a company on the overall de-risking strategy, we would like to move more aggressively towards non-auto, technology agnostic, and xEV components.

We had set ourselves a target that we should be reaching closer to 40% of all xEV or all the auto ICE to be restricted to about 60% of our business, which was almost 88% on a lower, much lower revenue. We said 60% has to come will come from auto ICE, and another 40% will come from non-auto as well as tech agnostic and xEV components.

While we have progressed in that journey, if you really see I think the entire year-end, we have reached 30% on non-auto and xEV and the thing. Only if you look at the quarter end, it is 32%.

We are quite confident that we will be able to achieve whatever we have set forth. In fact, if you see, the company has also secured a lot of additional business in ADS the thing.

As we speak, our growth trajectory on our non-auto business, specially on ADS, looks much stronger. Every year, in fact, we are just taken up the expansion of our new factory building.

As we speak, we expect it to complete the construction by July, August. As we speak, we have a visibility of the entire factory to be fully occupied already.

There is a lot of momentum shift towards India in terms of the capabilities that we have demonstrated over the years. Specially in the segment of ADS, as evident from our performance also and our strong order book, we have grown our capabilities both vertically as well as horizontally, which means that we have increased our component offering sizes.

From earlier, it used to be limited to 1.5 m was the maximum component size we could handle. Now we can handle up to 4 m, 5-axis machining.

This has enabled us to address much larger, much complicated components coming out of structural parts, coming out of engines, and very, very complex geometrical parts. This has not only increased the confidence with customers, it has opened up a lot of different kinds of packages from coming out of the aerospace industry.

While the aerospace looks very strong, the semicon also has added to the growth trajectory in ADS. This was something that we started into mass production towards the end of second quarter, coming into the third quarter.

This has really taken off, and then we see a lot of interest from multiple customers. We are working with one of them on various projects, and we see further deeper engagement with this customer as well as expanding into other customers.

As we grow towards the end of this decade, we already have a visibility of closer to, as you said, about 8,000 crore, 8,200 crores on the order book front for the execution. We still have couple of years where we can fulfill the order book and take the company towards 10,000 crores.

The timeframe could be depending upon the macro condition, it could vary by a year or two, but then our order book visibility is quite clear. Here also, while we had set ourselves target of 20% non-automotive, 20% xEV, and tech agnostic, we may have some change in this mix of non-automotive could go up higher than 20%, but overall the theme remains strong.

Auto also, we see a lot of opportunity to grow. We have added Nichidai joint venture where we want to address other precision forged and machined components which we are not into, like driveline and steering systems.

These are precision forged components and forged primarily precision forged with a reasonable amount of machining. With all these things, we are well-poised to achieve whatever objectives that we are setting.

Thank you very much.

Thank you, sir. Thank you, and wish you all the best.

Though on the numbers it looks like 8,000, 9,000 from the current levels, but I'm sure management can achieve it. Thank you.

All the best.

Thank you, sir.

Thank you for taking my question, and congratulations for the great set of numbers. My first query was on the ADS piece.

We've given a guidance for next year which we retained, roughly 550 to 600 crores. In terms of the question was in terms of utilization, we have stated that once we actually build out the full facility, margins should move closer to 25%, 30%.

Would that be the right understanding that since the size of this facility is maybe 600 crores, and we'll be running at peak, margins should head towards those levels?

I think I'll first take the question, then maybe Hari has to add. Yes, Arjun, this primarily the facility which we are operating is relatively full now, and with the execution of this year's current order book, which should be around 600 crore plus minus the thing.

We should be on a reasonably good utilization. With the additional building getting added this year, which will also start contributing revenue towards the third and fourth quarter of this year slowly, because a lot of FAIs have to be delivered and that will get into production.

I think the margin profile should move towards the number that you indicated.

Sure. In terms of capex, we have indicated a further capex of 250 crores, and you've given an asset turn of 2x.

Potentially that takes that turnover to maybe 1,000, 1,100. Given that we have a sizable order book, would it be a fair assumption we should see further capex announcements on the ADS space?

Hari will answer.

Good morning.

Good morning, sir.

It is very clear right now the asset turn ratio in the ADS space is very clearly 1:2, and we have given an indication that we could be incurring another 250 crores of capex more or less to clear the current order backlog of 4,500 crores. As and when this number is just the visibility as on date by 2031.

Now, it is for sure, and we're confident that this number by 2031, the number we are going to be doing or targeting or achieving is going to be much, much higher. The capex will increase as and when we have additional opportunities.

As on date, to reach the number what we have published as a confirmed order backlog, we see another 250 crores of capex.

Arjun, just to add.

Right.

Sorry, to add to what Hari said, we are looking at full facility utilization and our special process also. Yesterday, in fact, at the end of the board meeting, we have taken an approval to acquire about 10 crore 10 acres of land very near to the international airport, which is closer to the aerospace park.

The way we see momentum building up in ADS, I am very, very pretty sure that we will run out of space and this thing. The board has consented purchase of the land.

We expect that the accelerated growth will happen in this segment. That is the momentum and the indications that are coming from both aerospace and semicon.

Perfect. Sir, I know we don't break up this number in terms of individual components, but in the press release, we've seemingly indicated semiconductors doing exceptionally well.

In terms of our expectations, say for this year of 315 crores, have all segments contributed as what we had anticipated, or maybe semiconductor has done better and aerospace may just pick up in the quarters to come?

No, I would say in whatever we have done in the year gone by,

Right.

every sector or every division has done in line with expectations. Semicon being the outperformer, because the expectation was also 63.3% was the growth in the aerospace business.

In semicon business, obviously, we grew from almost a zero base. That has resulted in a huge surge.

Even our defense business is up significantly from a small base. I would say, in line with expectations, all the three verticals have performed, with semicon being the major portion of the growth driver, because that was an opportunity which came by, and we capitalized to the fullest.

Perfect. My final question is on our core business on the non-auto side to the US.

Essentially, we were impacted by tariffs. Now that tariff rates are substantially lower, we have seen good growth this quarter.

Is there any one-time element to this in terms of inventory refilling, or do you believe this is the run rate one should assume going forward?

No, there is no one-time refilling that has happened. In fact, we would see that because some of our clients, US-based clients, specially on the EV segment, had a rough.

Right.

We would see that going forward, I think we will have a better off-take from the exports. Things have started looking more positive there.

Of course, we are yet to see the conversions. There are a lot of discussions that are going on, but decision is still not been coming forward.

We expect that business-wise, there will be good momentum in the exports this year, but order inflows could take one or two more quarters to see the conversion that is happening.

Our plant in the US, has there been any further movement in thought process?

Yes, there has been movement in the sense that discussions have restarted with a little more energy. We were always very keen, but now they have seen an indication at 10% tariff.

Buyers are excited for sure, but what they are waiting for is a little more period of stability that this tariff will not again swing up and down. The answer is we are seeing some positive momentum in our discussions on the US plant.

Sure. Thank you, and wishing the team all the best, and congratulations again on a great set of numbers.

Thank you, Arjun, for your support. Thank you.

Hi, thanks, Preetham. Just a first question: you articulated on the EV surge what you're seeing.

Can you talk about, even because you are a supplier on the two-wheeler side on the EV-specific player as well as who doing both ICE and EV. Globally, though, the fastest-growing company slowed down, how you're getting the inquiry pipeline both on the export side on the EV and on the domestic side?

That's my first question.

Yeah. I think on the domestic two-wheeler front, we see a lot of both in terms of our traditional OEMs who have been strongly growing in the EV segment, as well as the industry-leading exclusive two-wheeler OEM who have also expanded into their second facility and then they're growing strongly.

We see a momentum to continue this year on the two-wheeler EV off-take improvement. We are also quite excited to see the hybrids working well, where we have a lot of offering on the hybrid components into the system, while we have been working very closely with a global OEM company, North American based, on a few of the very prestigious projects.

This year, a lot of that has been going to be put into production. Apart from that, we have also got some traction into the energy storage solution where we will see the mass production starting this year into that segment for the same customer.

Overall, for us, the EV journey looks quite strong in this year.

It just was my second question on that energy storage side, which the same customer is pretty full in terms of his orders, what he's talking about in his calls. How big this can become for you, energy storage in the next 1, 2 years?

Currently, for this program, it is anywhere between 80 to 100 crore is the annual revenue that we expect out of this program that has come to us. These are two components which will go.

We have a lot of other programs which we are working on for this same segment. I feel that once we productionize this, there are other opportunities to look other than the only customer that we have been working on.

We just wanted to explore more possibilities once this is established. One thing that we also are careful of, and these are large-volume businesses in steel currently, but then we have some very exciting, very, very technology-intensive product in aluminium as well.

In our opinion, what is important is to make sure that we have our planning well-distributed for the forging requirement, because we are also either a majority or a single source for a lot of our auto OEMs, and the growth trajectory has been quite strong. We feel that, going forward, there could be a shortage as we see, because last year we have produced close to 120 million components, that is almost 1 crore component per month, and we're already seeing that 30%, 40% increase has to happen in the next couple of years, we are already on that program.

While we are very excited about various other opportunities that are coming our way, we are also mindful of the fact that we need to focus on our expansion on our forging division, which also requires long lead time for any capex approval. This is going to be one of the key points as to how much more we can take in each segment.

Just lastly on the complexity of the aerospace side, can you share which component because we have seen your components started with very basic city, but on the aerospace specifically, as the complexity or the sizing has increased, like the way you talking about 3 m, 4 m, but any specific component where you see scale-up is happening pretty decent? Yes,

this is Hari.

Hari, yeah.

What we have done is, as we said a little earlier, we have increased our offerings both horizontally as far as size is concerned and complexity is concerned. We are now winning business.

We started off, as with cargo, then lighting, then we're making parts for landing gear, engine casing, structural parts. Now we got some very, very complex parts from Boeing.

Where we have made some tremendous headway in a very limited period by getting ourselves approved in record time. Also a large engine manufacturer started engaging with us.

That is one of the latest addition and a very prestigious customer to our customer list. We have that customer a couple of months back and working on a very, very complex package for engine parts, for the engine blisk and other parts.

The real driver here is coming from the increased production of aircraft at both Boeing and Airbus. In their largest selling platforms like the A350 and the 737, we are increasing our wallet share and our presence in many, many more components.

Hari, engine blisk, what we have seen in gas turbine, it's the same thing you are seeing in the aerospace now?

Yes. Yes.

Okay. The whole part is coming to you, and how big this can become for you?

I'm just asking this because in India, we have not seen too many. People are doing for the gas turbine.

We have not seen too many for the aerospace so far. You can correct me on that.

If you can throw some light on that aspect?

See, the blisk, you're right, probably is not done by anybody in India at this point of time. We were given an opportunity to demonstrate the capability in a small way by offering to machine a portion of the blisk and convince the manufacturer of our capability, they were really surprised to see what we delivered first time right.

Now the opportunity is already been awarded as far as machining of the full blisk is concerned. The numbers and the potential size of the business is under study and evaluation.

Right now, the focus is to deliver the fully machined blisk in about 2 months' time. I'm very, very confident that is going to open up many, many doors not in the blisk area alone, but once the word goes around that we are in the blisk segment, you know what I mean when I say that it will open a lot many opportunities in the very complex machining space.

In the rotating section.

In the rotating section of the engine, yes.

That's why I was asking. Okay.

Then,

yeah, please go ahead, Hari.

Just the thing I would also like to add that there is cold chamber and hot chamber. We are working on both cold and hot chamber.

We are working on cold chamber, which is with stainless steel,

and with

hot chamber, it is Inconel. It is a very, very complex machining with almost 600 diameter the thing.

Our Chief Engineer and CMD Shekhar Vasan only is totally involved in this project. He's the one who's No, but

honestly, our conversion from an enquiry to a confirmed order is 100% due to his involvement and what he brought to the table in record time, as far as precision engineering capabilities went. Machining the blisk.

Great to hear that. Just lastly, on the semiconductor, sorry if I'm too fast on this question, at this time, I don't want to name a client here, but what we are seeing, and I just want to know from your thought process, is they're just blocking the capacities in a big way because there are some other suppliers to your semiconductor client as well who are listed.

How is the situation with you, especially on the semiconductor? Can you go to the other one as well, the door opening with the other bigger, because there are two only who are the largest.

Just one on that. Second, how is the content moving for you?

Because earlier we have seen in a semicon, the EMS content is pretty high. How is the content moving for you when you have already executed things for them?

These two questions.

I'll take the first point first, which is, yes, they are blocking machining capacities. When I would say blocking, it is we are also very, very engaged with them to supply more in the sense that we are seeing a huge volume surge in the very critical components which we have already developed and in line with the global trend and the market expectation, growth in AI, data centers, and the requirement for chips.

Now, we are not bound by any exclusivity which is going to prevent us from attempting a relationship with other players in the market. As we talk, we are engaging with the other big player, and we are making very good progress as far as conversion is concerned.

On the second thing, when you talk about content, yeah, content is very interesting. We are seeing the content value really go up.

Margins are super exciting in this space. It's all execution because the only challenge we face today in the semicon space is availability of the mother machines, where the lead time is a big deterrent.

The ability for us to really move fast is sometimes controlled by the machine deliveries, which are sometimes 7, 8, 9 months long. Fortunately for us, we've had a very, very strong relationship and a good forecasting has enabled us to make sure that we build a pipeline with the thing.

We get some priority deliveries as well with DMG MORI, and Makino, and likes. We have been able to accelerate it much faster than the expectation, actually.

Got it. Got it.

That's very helpful. All the best, Preetham and Hari, for the execution.

Thank you. Thank you, Nitin.

Hello, sir. Thank you for this opportunity.

Sir, I have a couple of questions. One is on the automotive side.

Is it fair to assume that like with North America customer exports, OEMs, GM, for whom we are planning to supply this connecting rod, can that be of the potential of like 1 lakh per month for each of these customers? I it's a it's a

it's grossly under-stated. There is opportunity sizes would be to the tune of 2, 3 million connecting rods per each of them for their couple of programs

per year

per year. Definitely the opportunity sizes are quite large.

Understood. Sir, if you look at the domestic two-wheeler segment, like this quarter, 4Q, Bajaj and TVS, they grew 28% and 20%, whereas for us motorcycles and scooters was just 10% and 14%.

Can you help understand where the disconnect in these numbers are?

Basically, our representation does not represent the numbers. It is the revenue that we represent, and there you would look at the number of vehicles.

I don't think it is correct because, see, if I look at what we have grown in Q4 in Bajaj, on a year-on-year basis, it is 29.9%, TVS we have grown by 13.3, HMSI, yeah. All this we have been growing much healthier compared to the market.

Of course, it is not a direct correlation to the number of vehicles to number because we represent ourselves in revenue and customers represent in terms of number of vehicles. I can very safely tell you that with all our major customers, we are working on programs to increase our share of business, to increase the number of component offerings, and also look at opportunities to take the outsourcing opportunity that are available with a few of the key customers.

We're making very good progress in these discussions. In fact, we have recently, as you know that we have commissioned second plant in Pantnagar.

It is totally focused on two-wheeler expansion. We have taken up a newer place in now Manesar.

We've just signed up. It is on a lease, long-term lease.

That we want to also focus on both passenger vehicle and two-wheeler components. For us, this segment is a strong growth driver going forward as well.

Understood. Sir, and in domestic MHCVs, as you had mentioned last time, we are not present, but increasingly we are getting some order from one model of say Tata Motors or maybe in future with Ashok Leyland.

Based on all the offerings that we have, sir, what can be our content per vehicle in MHCV?

See, look, the automotive landscape itself is changing. Today, we are looking from a pure ICE vehicle, there are a lot of people moving towards hybrids, and then flex fuel engines.

Then I think we also are looking at an opportunity to work on other offerings that are now taking. For us, content per vehicle, because we have offerings on only ICE vehicles, we are working on hybrid platform, depending upon which platform that we are working on, the content per vehicle will vary.

Now with newer Nichidai programs that are going to get added on to our core product, I think it is a changing scenario. I would say anywhere between ₹5,000 to ₹10,000 per vehicle is what we generally target per vehicle.

That is what we look at.

Even on the commercial vehicles, or that can be higher?

Basically, commercial vehicles, we are, see, in domestic commercial vehicles, we are only working with Daimler and now Volvo Eicher. For us, those two are the major in domestic vehicles.

We are yet to penetrate the other domestic commercial vehicle OEMs. As I said in my previous question also, we are focused on distributing our resources into reasonably well-margin ROC businesses.

That is where our focus is on. Currently, we are looking at passenger vehicles exports, passenger vehicle domestic, two-wheeler exports, and ADS as a prime revenue.

We're also focused on getting stronger on agriculture. These are the areas where we are working on.

Understood, sir. Thank you very much, sir.

Thank you.

Yes, sir, good morning, and thank you for the opportunity. Congratulations on a good set of numbers.

Just focusing on the domestic ICE business, especially on the two-wheeler side, I think last time you had mentioned about the outsourcing opportunity, in the sense OEMs which are currently in-sourcing, especially on the crankshaft assembly, etcetera. Now that your plant expansion is done, the Pantnagar 16 plant, and you're looking at a Pantnagar 6 expansion as also, are we kind of at a stage where we can say that this FY 2027 we will see benefits of this outsourcing opportunity and probability there of adding say new large OEMs which we're not working with right now in two-wheelers?

Could you give some sense there?

Absolutely. Absolutely.

We believe and we're confident in FY 2027 the conversion will happen and there will be activity on line installation and probably even production starting. Discussions are on.

Discussions are progressing very well. are in the very, very final stages.

Details are being worked out as we speak. The answer to your question is, yes, 2000 in FY 2027, we will see in Pantnagar and Manesar, we setting up additional capacities for crankshafts for OEMs with whom today we have a relationship, and also with whom we don't have a relationship.

We'll see both happening this year.

In fact,

Rahul Uh-huh.

Hello? Am I audible now?

Hello? Ladies and gentlemen, we have the management line disconnected.

Please stay connected until we reconnect the management line. Ladies and gentlemen, we have the management line reconnected.

Sorry,

Rahul was Sorry. Mr.

Rahul was explaining.

Yeah. I was trying to say that with the same OEM for the expansion what Hari mentioned is Pantnagar and Manesar.

We are

also expanding our Pune facility this year. At the same time, what we are trying to do for all our new lines, with what our recent experience of manpower availability and crunch in the market, from last year, we have already started to do almost all the lines whatever coming in as a new lines are fully automated.

To the extent that if we really compare today's manning ratio to new lines, we are running with only 20% of manning and 80% of automation or robotic lines, number one. Number two, having said this, and with the growth what we are talking about, our machine building plant is heavily the order book in-house machine building plant is booked for almost next one year.

With all, we are also searching and work is in progress for some strategic partner for automation, because we do have our own automation team. We feel the kind of expansions what we are talking about, our own pace of speed for doing automation won't be enough.

That also work is under progress. Great,

great. Good to hear that.

Secondly, on the Nichidai partnership, any progress made there? Maybe if you could give some sense on the opportunity size, be it is there a possibility of capex requirement for Nichidai itself which we can supply from JMT as well as external customers?

Some sense there would help.

Let me just try to briefly cover the points what you raised. There is no capex requirement from Nichidai because Nichidai is a technology provider, point number one.

Point number two, the progress what we have made is the introduction to the customers is happening or happened in many cases about this joint venture. RFQs have been generated.

Discussions are going on. We have responded.

We hope to start converting very soon. As we speak, the facility is getting ready, and a machinery installation should commence September timeframe.

Then the normal process will follow of sample execution and production.

Mukesh, a very important thing is that while we have customers who are interested, Nichidai technology is well known in the automotive segment, but I think acceleration will happen once we have the facility in place. I think that is very key importance that we have also been only meeting the customers and then taking them through what we want to do.

While they are all quite excited, I think everything depends on how fast we can put the facility in place. We are working on getting this up and running towards the third quarter of this financial year.

Just about that, what's the kind of capex we are entailing in this JV?

this year we have kept about

₹50

crore as our contribution the thing towards the JV. We have already procured one forging press which is coming into India currently as a part of that capex.

We expect that this year Sansera from our side we may have to invest about 50 crores. That has already been as part of our overall group capex.

Yeah. Sure.

Thank you.

Thanks for the opportunity, sir, and again congrats on a great set of numbers. Sir, first question is on the PV business.

After a long time, we have seen a very strong growth coming back here and you talked about a good order or revenue pick up in the European markets as well. Some color there, how sustainable it is, how you are seeing the growth coming, and because last year we have a very low base as well, where do you see the PV segment going?

Any more customer additions are you expecting in this geography?

Siddhartha, see, the programs that were actually stalled both in North America as well as Europe have started picking up, and we also have got some indication that there could be some more upsurge in the requirement. See, everything is very fluid as of now because of the ongoing war situation, the price escalations that are happening, the fuel prices have significantly gone up.

I don't know how sustainable the demand will be across the geographies, but as of now, currently, we see a good steady demand flow from all our overseas clients, because all the new programs have started, and we are quite hopeful that this will sustain. Even in domestic OEMs, our largest, Maruti, we see a lot of increased upsurge in the requirement that have been indicated.

In fact, we are going to expand our lines for both Tata Motors as well as Maruti. We are hopeful that we will also be able to add couple of more OEMs this year into that, we are working towards that.

With that, PV should be a very continued momentum into this year as well.

Understood, sir. Sir, second question is on the ADS.

We have talked about a very strong traction on the revenues, and with this I think we will probably continue seeing a very strong increase in the percentage share of this segment as well, maybe from 10% this year to a 15%, 20% in the next 2 years. I just wanted to understand how does it impact our working capital, because we did see some increase this year.

How is the requirement for some of these businesses, and how do you see that changing for us at a company level in the next few years?

Vikas here.

Siddhartha, valid question. If we break up our business into two parts, one is the auto segment and one is the ADS segment.

In the auto segment, we've actually improved our working capital ratios this year because of the ongoing initiatives that we've had, both on inventory as well as on receivables side. ADS going through a major growth momentum as of now, partly because of volume increase and partly because of the new segment getting added.

A new set of working capital has been built up during this year. Because of that, you would have noticed a pressure on the operating cash during the current year.

We are down from 12% last year to 11% this year. We believe that this is a initial capital build-up in this segment.

As we move forward, as the flow becomes more normal, we will have opportunities to further improve the overall or optimize the working capital.

Siddhartha, just one more point to add here to what Vikas said. There are opportunities in ADS where, especially in the semicon space, where the entire surge has happened probably in the working capital cycle.

The customers are working to localize a few component raw material sources, and that is underway. The moment that happens and we are directed to buy from that source, there will be a nice, significant impact on the reduction.

Holding periods will come down significantly, lead times will shrink, and that will help a lot.

Yeah.

Great, sir. Sir, last question is on the labor side.

We did see a lot of inflation coming up in some parts of the country. How do you see this affecting you?

Do we expect any meaningful cost inflation there as well going ahead, or not much from our side?

As Rahul explained, we see a lot of pressure on availability of both skilled, semi-skilled labor across geography, across the different plant the thing. We are trying to increase our diversity.

One of our second plant in Pantnagar is intended to be 100% women-employed. Today, we have about 65%, 70% women employees there.

ADS, we have increased significantly the number of women employees. While we are working towards more and more automation, I think this is going to be one critical component where the availability and the attrition of the labor workforce is going to be one of the key challenges in this year for our execution efficiency.

See, we've always been above minimum wages, so that pressure for us was not there, but then for us what is important is that we de-skill the operations and do as much as automation as possible. While Rahul and team are working on improved efficiency there, what we are doing in aerospace where we have opportunity for multi-manning, we have introduced kind of different skill-based incentive systems to handle multiple machines and multiple components.

This should ease pressure on the thing. There are various schemes through which we are trying to motivate people to the thing.

Labor definitely is going to be a challenge.

Thanks a lot, sir. Very helpful.

Thank you, Siddhartha.

Thank you and my compliments to you and the entire team, Mr. Preetham, fantastic set of numbers and performance here.

My question was actually on one of the company that you have in your fold, MMRFIC, which is obviously very close to you and Mr. Vasan's heart.

Just wanted to spend a minute to understand is there a bamboo shoot waiting to happen in this company? How's been performance there?

You've obviously been sort of taking your stake higher there in this venture as well. Thank you so much.

Just wanted to know your thoughts on this particular entity.

Thank you, Nishant. This has definitely been one of the strategic investments which our chairman has been quite interested in because of the deep technology that has been the thing, is also very important that we are working with the Make in India program very, very deeply in this company.

From the time that we have invested in this company, we are very clear on the path that this company is going to take. It is definitely a long haul.

It is not going to be a short-term the thing, because there are multiple agencies, government agencies, aggregators that are involved in this business. As a company, we have got a lot of confidence in the abilities of the promoters and the way that products have been going on.

With that confidence, we have already increased our stake. I think with the conversion of CCPS for the year ending FY 2026, we should be upward of 45%.

I don't know the exact percentage will come to know once the balance sheets are finalized, but I'm sure that it would be between 45% and 50%. With that, we also see a lot of opportunity here.

The opportunity sizes are large the thing. As you have rightly said, there is a lot of expectation and also time and effort and energy is being put into this business.

We are quite confident on the long-term opportunity that this business has got. I can't talk a lot on the products that we are working on because it is quite sensitive in nature.

We believe in the story. We are continue to invest into this.

We are working with them as to all the support that is required, we are extending that.

Thank you. This is fabulous what you guys are doing and thanks for your time and wishing you a very well for times ahead.

Thank you.

Thank you, Nishant.

Yeah. Thank you very much, all of you, for this opportunity to interact with all of you and present our story.

With this, I would like to conclude the call. I know that we have had a little break in the call, we lost some time.

If you have any further queries, please contact SGA, our investor relationship advisors, or any of us directly. We will look forward to meet you and engage with you at appropriate time.

Thank you very much, everyone, for joining us today on this earning call. Thank you.

Thank you.

Thank you.