Thank you, Sonia. Hope you can hear me well.

Thank you. Good evening, everyone.

Thank you for joining us for this Q1 FY27 earnings call. We hope you have had an opportunity to go through the financial results, the investor presentation, and the press release which are published on the stock exchanges and the company website.

I'm really pleased to share that SPR Auto Technologies has commenced the financial year 2027 on a very strong note and delivered an encouraging performance during Q1 FY27, as the company delivered a 51% year-on-year growth on consolidated total income and a 27% year-on-year growth on consolidated EBITDA. This strong performance is particularly noteworthy given the challenging industry backdrop, characterized by elevated commodity prices, supply chain disruptions, and broader macroeconomical uncertainties stemming from heightened geopolitical tensions.

Moreover, commodity cost adjustments normally have a time lag of a quarter for regularization from customers, thereby presenting a temporary gap in the margins. Even with the above impacts, the company has delivered a strong financial performance during the quarter.

Consolidated profit before tax grew by 7% year-on-year in Q1 FY27, while profit after tax increased by 9% year-on-year. The growth is after reflecting the flow-through impact from EBITDA primarily contributed by higher finance costs to fund the acquisition of the automotive interiors and lighting businesses.

These elevated finance costs are expected to be temporary and should normalize as the related debt is repaid. Post the GST 2.0 reforms, we are seeing a phenomenal growth in both the two-wheeler and the passenger car markets.

We expect this volume momentum to continue for the above segments and also for the commercial vehicle and tractor segments throughout the year. Our strategy to invest in technology and capacity ahead of time has really helped us to cater to these increased demands.

This performance underscores the strength and resilience of our diversified business model, our continued focus on operational excellence, and the effectiveness of our strategic initiatives. We remain focused on driving cost efficiencies, streamlining the supply chain, integrating the low-cost automation and digitization programs across all our manufacturing operations, and optimizing inventory and logistics planning.

These initiatives are aimed at strengthening the structural resilience across the business and form the foundation of our established and growing presence in the auto components industry. We continue to build on our strong leadership in legacy products while steadily scaling our powertrain-agnostic businesses, which of course enhances the future readiness of our portfolio.

In the legacy business, we achieved a key milestone during the quarter with the successful completion of the acquisition of the piston manufacturing plant and machinery from Sunbeam Lightweighting Solutions Limited. This acquisition strengthens our piston manufacturing capacity and also enables us to meet the growing demand for all our products.

I'm happy to state that we are continuing to win new programs for hybrid and flex-fuel applications from all our customers in the legacy business. The integration of the recently acquired automotive interiors and lighting businesses progressed very well during the quarter.

These businesses continued to deliver a strong performance, reinforcing the strategic rationale for the acquisition. We remain focused on aligning the operating processes, leveraging cross-selling opportunities, and unlocking cost and operational synergies across the group.

Post our acquisitions, our auto interior business has also won some very important customer programs to fuel the future growth of this segment. Our electric motor and controller business has continuously exceeding all the targets that we have set for the businesses at the beginning of this year.

Also, the high-precision injection-molded components business has also witnessed a very significant growth during the quarter. We also continue to make a very steady progress on all our group-wide capacity expansion programs.

These investments are designed to support customer programs, enhance capacity availability, and create a stronger platform for future growth across all our products. All our businesses, including the legacy engine components business, automotive interiors, lighting, the high-precision injection-molded components, and the EV motors and controllers, continue to perform very well during the quarter.

The powertrain-agnostic business now contribute over 35% of our consolidated total income, while nearly 60% of the overall business is positioned to remain relatively insulated from the impact of EV penetration. This reflects the steady progress of our diversification strategy and the increasing strength of our group.

We continue to strengthen our ESG credentials through focused investment in renewable energy and broader sustainability practices. ESG remains a very strategic priority for the company, and we are pleased to report that we achieved a CDP B rating for climate and water disclosures.

We obtained our DUV-certified sustainability assurance. We secured certifications under ISO 14064, ISO 50001, ISO 45001, ISO 17029, and ISO 27001.

We were also recognized with an EcoVadis bronze medal, putting us in the top 35% globally on sustainability achievements; Dun & Bradstreet's highest ESG rating of 2 in India; and the CII award for corporate sustainability, further reaffirming our commitment to responsible business practices and long-term sustainable value creation. We have also continued our journey of winning many awards from all our customers across the country.

We have also got our TISAX certification done and are happy to state that from a cybersecurity angle, the company is well positioned to be able to counter any possibilities in the future. Moving forward, we remain focused on disciplined execution, strategic investments, and sustained operational excellence.

Backed by our diversified product portfolio, longstanding technology partnerships with global industry leaders, and deep customer relationships, SPR Auto Technologies Limited is now well positioned to drive its next phase of growth and create sustainable long-term value for all our stakeholders. I thank you all for all your continued support, and I'm looking forward to taking your questions, and request the moderator to open the floor for question and answers.

Thank you once again.

Hi, team. Congratulations on these fabulous and accurate performance.

My first question is Antolin Global has [unclear] next-gen...

Is it better now? It's better now, yeah.

Yes, sir. Antolin Global has introduced several next-gen interior technologies over the past few quarters, like electrochromic sun visors, cockpit solutions integrated with human-machine interface, emotional lighting, etc.

To what extent does SPR India have access to these technologies today, and how are they being localized for the Indian market? Do you see these differentiated capabilities becoming a significant competitive advantage in winning new businesses with customers?

Yeah. Thank you, Radha.

We have an access to all the technologies that are globally available and tested within the Antolin portfolio. We have, as you all know, that we have already signed a long-term TLA, which is a complete licensing agreement.

We have all the solutions available. In fact, we are working on a number of programs with end customers for various HMI initiatives as well as newer programs for headliners, for IMASAR technologies, and others, which is all being tested with customers and we are looking forward to, once they fructify, then we will be in the right position to come and inform all of you with regards to all the new businesses that we are working on.

We are happy to state that we are working on all the technologies. All the technologies are seamlessly available to us, and we will be probably amongst the frontrunners to use some of those technologies which have been time-tested elsewhere in the globe with Indian customers, and we are already working on it.

All right, sir. That's good to hear.

Second question, sir. Eaton USA has shut down its engine valves plant in the last calendar year-end.

Are you witnessing a boost in exports due to this? Apart from this, what are the other key growth drivers in the export segment, if at

all? Eaton is basically mostly in the engine valve segment.

They don't operate on the piston side. As far as the engine valve segment is concerned, we do have the growth and we are working on number of initiatives to be able to meet our customer programs, and the mobility solutions of Eaton has been now sold to Dana, as you might have heard.

We have yet to see as to what exactly is the strategy of Dana to grow the business here in India. As far as India is concerned, I think we lead the stack with a fairly good market share across all customers and across all industry segments.

We are fairly well entrenched with most of our customers to be able to cater to their demands.

Understood, sir. Sir, last question is, Antolin Global has a lot of presence in non-auto, like optics, aviation, measuring instruments, etc.

Are we supplying these components from the Indian entity to our customers as well? What can be the scale of non-auto portion of the business in the next 3 to 4 years as compared to where it is today?

What are the delta in margins of non-auto compared to auto?

We already supply to non-auto components. We also make non-auto components in India.

We already supply to medical industry, we supply to sports industry, we supply to music industry. As that these segments do not have very high volumes.

They are all low-volume segments. That way, for example, the music industry, we supply the complete keyboards for some of our customers like Yamaha and others, which is, keyboards, etc., they're not sold in millions.

It is not like in automotive. It will be on a lower side.

We don't normally give the breakup of this segment, but it's a sizable segment for us and it's a good margin business for us. Thank you.

Understood, sir. Thanks, and all the best to the team.

Thanks.

Thanks a lot, Radha.

Thank you for the opportunity. Sir, if I may ask what kind of opportunity do you see for our legacy business once the CAFE norms are introduced?

Does this increase our realization or a chance to consolidate our market share in this product segment?

See, we are already working with our customers on the CAFE norms. Based on the new CAFE norms that have been released, we've already submitted products which are under testing and validation with the customers.

Most of these products require a different kind of an approach with regards to frictional reduction as well as reduction of exhaust gases and others, for which a completely new technology has to be introduced in terms of coating and in terms of the piston ring manufacturing strategy. All this has already been done.

We have already invested ahead of time, and the technology is all available within our manufacturing setup that we have in Ghaziabad and Pathredi. Our engineering teams have well progressed with development of these technologies.

We are well entrenched with all our customers.

Does this increase the realizations for the same product which we were supplying earlier?

To some extent, yes, because with all the newer technologies, the cost is also more, the realization is also more.

Okay. Is our competition also following us by offering this to their OEM customers?

I would say that we are leading the game.

Great. Secondly, sir, just on the M&A front, in the past also you've mentioned that you would want to look to expand our scope of offerings and look for M&As.

Just a question, given where we are in the automotive cycle, how are you protecting yourself because the industry is doing very well in the last 12 months or so and more specifically after GST impact, and this could be possibly closer to peak sales or peak profitability for the cycle. How are you safeguarding yourself when you're looking at potential opportunities over there?

If I have understood your question right, you are asking me how we are safeguarding with regards to new M&As and doing it at the right price and all that, right?

Right. Right time and right price, absolutely.

Yeah. We have a very detailed working that we do with our M&A team.

The M&A team looks at multiple angles. It's not only the angle of multiple on the EBITDA, but it's a very big exercise that we do with regards to the overall strategy of investment.

We of course take all the future outlooks in place and we look at the current situation of the industry as well as look at the situation of how the industry is growing over the next 5 to 10 years' time. Then, do a lot of forecasting before we take decisions with regards to our M&A direction.

Thanks. Just lastly, in the non-auto business in the annual report, you mentioned there is a mention of pistons for railways, snowmobiles, compressors, etc.

What would be the contribution of this segment to our current size, current business, and how do we see this business shape up over the next 2 or 3 years?

It has been a sizable business, because this again, as I said, this is a segment which is growing for us. If I give one figure, it will change tomorrow morning, because it is a continuous growth that we're having both in terms of the compressor industry, the marine, the defense, and the various other applications like snowmobiles and others.

At this stage, to give any number percentage to this will not be correct, because we expect the percentage to grow. It's a sizable business now.

Over last 4 years, I think we have grown almost at the rate of 15% to 20% in this particular segment. We have entered into various applications including lawn moving applications and others.

All this has really helped us to maintain our growth trajectory and also maintain continuous growth, which is better than the market growth. We have always maintained that we want to outgrow the end markets.

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

Thanks. Thanks a lot, Gokul.

Hi, sir. Thank you for taking my question.

Sir, a couple of questions. Firstly, if you can give a breakup of standalone, plastic business, Antolin business, and EMFI by revenue and EBITDA for the first quarter?

Between the quarter we don't give the breakup. The first half you will get the breakup.

You have the breakup of the end of last year. You can see that more or less that kind of a trend has been maintained even today, because we see an all-round growth across the auto industry thanks to the GST 2.0.

As a result, we see that the end markets are really doing well and we are seeing a full growth across all the segments that we operate in today.

Actually just wanted to understand how the margin profile is looking for the plastic and Antolin business. I think plastics is around 18%, 19% EBITDA margin and Antolin was at around 7%, 8%.

Just wanted to see as to...

We have significantly improved the interiors business also. That has come with a lot of synergies being brought out as well as we have streamlined a lot of things with regards to the fixed costs.

We have taken a lot of actions with regards to improving the cost structure of the company, which has really helped us to improve the margins. As of now, I can say that we have crossed double-digit figure and we are in the early mid-teens, I should say.

Okay. That's good to hear.

Secondly, sir, I wanted to know, the industry has definitely grown at 20% in Q1. Our standalone business, legacy business where the growth was around 12%, just wanted to know any reason for lower performance versus industry?

If you can throw some light?

I will quickly attempt to answer your question. Basically, if you see, the industry was also carrying a good amount of stock.

We go by the manufacturing that is being done, not by the sales, because sales normally carry a lot of stock coming from the previous year. If you really see the manufacturing, the manufacturing growth has been in the region of around 12% to 14%, and our growth has been over 15%.

We have actually outgrown the industry even as we speak. Within the mix, if you see, the two-wheelers have grown by almost 20%, the passenger car has probably grown by around 11% from a manufacturing angle, 19% and 11% to be exact from manufacturing angle.

The commercial vehicles and the tractor industry have grown by somewhere around 7% to 8%, and the other industries have grown by something like 4%, 5%, including the compressor industry. As a result, you will see a mix of all this coming into the end product this thing.

Overall considering that the exports got affected because of the war situation, where there was a tremendous impact on the export side, and also because of this sudden rise in the two-wheeler and the passenger car industry, the manufacturing had to be a little bit tweaked towards the OE industry. As a result, you will see that the growth impact is fairly significant considering that we have grown at this percentage, which is better than the market percentage, even after considering all these segments of the market.

I'm happy to state that we have actually satisfied all the segments of the market with regards to our supplies.

Sir, over last 1 month or last 1 and 1/2 months post when the Red Sea concerns started to normalize and did exports pick up? Can we expect better in exports in second quarter?

See,

exports are still quite affected, especially in Europe and in America. Both US, America, and the Middle East markets, including Egypt and others, have been badly affected.

They're not still picked up, and it's quite slow, I would say. There are still a lot of ambiguities in the overall supply chain with regards to what will happen with regards to a very seamless supply chain situation that we had earlier.

I personally think that it will take some more time for things to normalize. Commodity prices had gone to unprecedented levels.

We have had to face a very unprecedented increase in the commodity prices. We've been able to manage it, and we see this now slightly coming down.

Hopefully it should all normalize within this fiscal.

Lastly, sir, just if you can probably give us some of the technologies in Antolin business coming in technology which we can see over next 1 or 2 years?

I think I spoke in the earlier question. The number of technologies on which we are working on, including HMIs, as well as the smart technologies, the technologies with various kind of pillar trims, backlit door trims, the floor consoles, etc.

There are a number of areas on which we are working on.

Okay. That's it, sir.

Thank you.

Thanks a lot. Thanks, Vijay.

Go ahead, Harsh ji. Mr.

Harsh?

Sir, am I audible?

Anoop ji. Go ahead.

Sir, this EBITDA impact of ₹300 million that was mentioned in the investor presentation, are we able to pass this price hikes from the OEMs to pass this on and any timelines by which our margins can normalize?

No, as I said, this is the impact which has happened because of commodity prices and also the impact of our interest costs that we have paid. To a fair extent, that has been covered up.

As you can see from our financial results, it's certainly better than if you really discount the fact that we have had to pay the interest on our NCDs, if you really take that out, then you will see that our performance has been really in line with our previous quarters' performances. We continue to maintain those performances, and I don't see any reason why we will drop further.

Sir, my question was not on the finance cost, more on the EBITDA impact because of raw material and commodity inflation. Do we need to ask for price hikes from the OEM or?

We have a pass-through arrangement with all our customers. It has a time lag delay.

Normally there is a delay of a quarter with most of the customers. That's how the industry operates.

That's why what will happen is whatever is the commodity increase that we have had this year, based on the average commodity price, we get the price increase for the next quarter, and that gets covered in the next quarter. We already have a back-to-back arrangement with all our customers, and not only for our piston business, even for our plastics business as well as our motors business and the interiors business.

Okay. Sir, for the motor controller business and plastic business, are you able to share what kind of revenue growth have these businesses registered year-on-year in these two segments?

Last year we grew by double. I am hoping that we continue that trend.

I'm pushing my team for that, but then we'll certainly continue to outgrow the market.

Okay. Sir, my last question is on the auto interiors, Antolin business, do we have a margin target that we want to achieve?

Can we bring it to the standalone kind of margins? Any share, any perspective on that?

No, I already replied this to the earlier question. Yes, we have improved the margins and I have improved from the earlier 7%, 8% that they were operating on to almost let's say the early teens.

Fine, sir. Thank you so much.

Hello. Am I audible, sir?

Harsh ji, go ahead. Yeah.

Sir, I was referring to slide 8 of our presentation wherein it's mentioned that traction volume had grown by 22%. When I compare that to standalone revenue, it has grown at around 12.5%.

What would be the reason for that? No,

normally what happens is volume is not necessarily because the mix changes in the industry. Even if you see our end customers, the overall post-GST 2.0, what has happened is the mix has changed.

They've gone in for more production of low-end cars. Let me not put it as low-end cars, it is basically smaller-size vehicles, because the demand for that is more both in the rural and the urban segment.

Automatically, the realization price per piece changes as we have those kind of products going in more. You will find that by value the realization could slightly vary, because the mix changes drastically.

Okay. And...

What is important is to maintain the kind of margins that you want to maintain, which we have been able to do that. Sir,

another question is on the margin side. Standalone business, now I'm comparing sequentially, Q4 FY26 versus Q1 FY27.

It became very clear that gross margins have, on standalone business, expanded by 60 bps, yet our EBITDA margins have almost come down by 200 bps. How would you explain that?

That's what I explained, no, the commodity prices. You have a quarter delay in the commodity prices.

As you will see that...

Our gross margins have improved. From Q4 FY26 to Q1 FY27, gross margins are almost intact, yet the EBITDA margins are down by 200 bps.

No, that's what I said. It's a multiple combination of mix plus volumes, and also the fact that, when I say mix, it also means a mix of our overall business within our portfolio, the kind of mix that we have.

Overall, it shows that some of our areas of, let's say, aftermarket business and other things, normally in the first quarter, we always have a lag. In the first quarter, if you really compare the first quarter of last year, you'll always see that lag.

Okay. My last question is any update on the fundraise and any new acquisitions that are in the pipeline?

Our team is working on the acquisitions part, and there is a lot of work going on there. We'll come and we'll inform all of you guys at the right time.

As far as fundraise is concerned, I think we are progressing as per target.

Sure, sure. Thank you so much, sir.

Thank you.

Hi. Good evening, sir, and congratulations on a great set of results.

I hope I'm audible.

Nandan

ji, please go ahead. Sure.

Good evening. Sir, I think just following up on the questions from the previous participants.

What we are trying to understand is our gross margins are intact. Sequentially, our staff costs as well as our other expenses have gone up.

I understand there could be some impact from the minimum wage hike as well, right? Just on that, and also does other expenses include some sort of one-off expenditure since we are just integrating Antolin, and do we consider this as a new normal or do we expect this line item to go down as we get the synergies kicking in over the coming quarters?

That could be the first question.

No, I think the overall mix impact has an impact. While the gross margin could show the improvement, you cannot compare it sequentially with quarter 4 of last year, because mix was completely different.

You'll have to see it with the mix of Q1. The mix of the market also makes a big difference.

Both the things come together. Of course, we have our normal wage increases that we have every year, which happens normally during the first quarter, 1st of April, and that has a small impact on the employee cost percentage that you see.

Otherwise, we are well within the targets.

Got it, sir. Sir, just I think across ancillary, the wage hike has seen an impact.

Since we are also in the northern region, at least could you broadly give directionally some idea about how much the wage impact has been this quarter and how are we seeing... Normally,

internal figures we don't normally give, Nandan ji, but the good part is that we have been able to retain the team. The team is doing a fantastic job.

All of them are very motivated to work in the kind of atmosphere that we're presenting to them. The team is doing a fantastic job.

Sir. Thank you so much, sir.

Good luck.

Thanks a lot. Thanks.

Hi, sir. Sir, the first question is to just understand the time lag from when we supply pistons to our OEMs to their production timeline.

What is the typical gap?

Come again. There was a small drop in your voice.

Sir, I'll repeat the question. Basically, let's say, we supply X number of pistons to, say, Maruti on 1st of April.

How far ahead in their production line will that be used?

In the production line?

In general, basically in the OEM's assembly line.

It varies. Product to product, it varies.

Some of the products, when the demand is very good in the end market, then those products goes within maybe less than a month's time. If the products are depending on the kind of stock levels that they operate across various operators across the country, it varies.

It varies from time to time. On an average, you can see the volume growth that Suzuki is having, and we are going quite well with them.

We have a fairly good market share.

No, I wasn't specifically asking for Maruti. I just took Maruti as an example.

Even other, everywhere it is the same story. See, on an average, the product when we supply, we of course do a lot of things to supply them.

There are also requirements that we should supply just in time as the manufacturing takes place. Of course, their manufacturing, how much time they will take to supply to the end market, that is a question that you have to probably ask the end customers, yeah.

Got it. Understood.

The second question was just if you can tell what would have been the growth of our consolidated business ex of Antolin? Not EBITDA, ex of Antolin, what would have been our growth, top line growth?

I think it's over 15%.

15%? Okay.

Sir, the last question, with the government trying to push in higher blends of ethanol, we have readied up to E85 is what I understand. The question that I have is what are the kinds of conversations we are having with our clients?

Let's say, we actually get into higher blending levels, would it lead to more CapEx just to support higher blending or current CapEx can also support higher blending? How far ahead or how far we are from competition?

See, what happens is when the blending goes on a higher side, the product undergoes a change. Okay?

You have to, because of more water content and carbon content, you have to improve the kind of coating that we have on the piston as well as on the rings. We have already tested all the products that is required by our customers right up to E85.

Now, the strategy of what they want to introduce into the market will depend on various political situation in the country as well as the customers' market needs. As far as we are concerned, we are ready with the products.

Every segment of the product, whether it is for E20 or whether it is for E40 or whether E85, will undergo a change and the price is different because of the content change that happens. With most of our customers, they have already signed off.

Products are all tested for our products. I don't know about what other products has an impact because of E20 or E40.

We feel that this situation should get addressed quickly and hopefully, the customers will start growing flex-fuel business. As far as we are concerned on the flex-fuel side, we are completely safe.

My question was about CapEx. My question was let's say we supply 100 pistons to Maruti.

We are doing for E20 versus let's say E50 or E85, to provide the same volume, do we need to do further CapEx?

That's what I said. I think I answered this question.

It requires different kind of plating and we have enough capacity for that.

Understood. That's all from my side.

Thank you.

Hi, sir. Just wanted to understand our gross margins on the standalone business for the past two quarters have been around 56%, 57%.

What is what we have seen historically of 58%, 59%. Is it just commodity impact or any other product mix or lower export share or if you can just throw some color on that?

Devesh ji, I think I answered this question. It's a mix of both the product mix as well as commodity impact.

We have normally a gap in our recovery with our customers, as far as I explained. I think I explained this in the earlier question.

Okay. We can safely assume that we will be recovering this impact and it will normalize going ahead?

Definitely, Devesh ji.

We are not going to lose on our margins. Okay.

Sir,

what would be our gross debt currently at consolidated?

Net debt is around 550.

Okay.

Our net debt is around 550. You can see it in our balance sheet that we have declared already.

This is as of June and not March?

As of June, yeah. As of this month, it will be even better.

Sir. That's it from my end.

Yeah.

Thanks for the opportunity, and congratulations on a good set of numbers in a challenging environment. Three, four questions, sir.

First is this ₹30 crore will eventually, if you look at our annual wages, we will recover this from the customer, right?

Normally, you have a gap of a quarter. We are hoping that it will all get normalized in this quarter.

Okay. Sir, the second question is if you look at export, see, I understand the environment outside India is pretty bad in terms of market not across on the bottom though.

If one has to understand, say, over next 3, 5-year kind of horizon, how should one understand export play for us, especially in our legacy business, right? Because, especially, market is getting consolidated.

What are we doing, if you can give some more deep dive, how are we approaching this over a 3, 5-year period?

It's a mix of end market that is happening in exports, and also the, the issue of some of the people vacating capacities. As you heard in the previous question, Eaton has closed down some of their plants, engine valves, in the US.

It's a mix of both. What we see as a as a possibility for us is that the end markets will recover, because once the geopolitical situation improves, it will it will certainly recover.

The possibilities of markets opening up for us is always there, and we are already working on it. Both the things seems to be quite positive for us moving forward.

I don't see any major issue. If you see even under a very tough geopolitical situation the whole of last year, we delivered almost 2% to 3% better results in exports coming out of different segments of the market that we have been able to develop.

That and that also was for partial of the year. For this year, I hope that we will get the full year full year benefit.

At the same time, we are continuing to grow into newer segments and newer areas and with newer customers, which will really help us to grow the exports. Frankly, I feel that to be a very positive step for us.

Just one follow-up on that. See, technology partners also have their own customer base and market policies.

When we're looking at business, say, in US or Europe, is there a limitation for us to explore and go and approach for new business wins in those markets or any color you can give on that?

We have had clear agreements with our technology partners. We have always worked within those precincts of those agreements that we have in the previous years also.

Whatever you see is always relative to the previous years, and I'm seeing that it's going to be positive going ahead. I don't see any issue there.

Okay. Just last question, sir.

If you look at Takata subsidiary, for FY26, we had seen a margin moderation and a flat drop, right? What really happened there, if you can give some color?

It's purely a market mix situation there and the product mix also. In fact, always if you have to compare it with the first quarter of last year, don't compare it on a sequential, because always in April we do have a drop in the mold sales and others.

That always happens like this.

No, I was actually asking about FY26 as a whole for Takata.

Yeah.

There was a drop and there was a margin moderation and there was de-growth in profitability on a full year basis.

It's purely a sales mix. I don't think there is a major issue on any drop in prices.

Okay. Last question was on EMFI business.

I think we have now commissioned the capacity. Based on your earlier communication, capacity can go up to a peak sales of a couple hundred crores.

Where are we in that process of ramp-up, and any color on new order wins?

It was only because of our ramp-up, because of the new investments that we have done in Coimbatore that we have been able to double the sales last year. That was only for part of the year, because we commissioned it sometime by the end of December only.

This year, we'll get the full benefit of the full capacity that we've created there. We are really progressing very well.

In the very first quarter itself, we have done quite well.

Okay. Thank you, sir.

Thanks, Viraj ji.

Thanks for the opportunity. Am I audible?

Pritesh ji. Please go ahead.

Hello, am I audible?

Pritesh ji. Please go ahead.

Yeah. My first question is on the line of margin.

Like we had said that of all the acquisitions we have done, we have transplanted margins in those in high single digit to low double digit and we are aiming to higher double digit. Just wanted to know what are the margin drivers?

Is it the price which we are getting which is higher or is it from the operating leverage or is it from the expenses which earlier pre-acquisition they were into the place which we have removed? If you could give some highlight on the same.

Actually, Pritesh ji, there are many, many actions due to which that's happening. It's not only related to actions on the shop floor, actions on improvements on operations, improvements on supply chain, improvements on some of the insourcing that we are planning.

A lot of actions. It's has a time period for that, and over a period of time, you will see the improvements happening further.

Thank you. My second question is on the line of with our current capacity utilization, what revenue can we attract?

See, capacity is something that we continue to keep on investing. As I said, we bought the Sunbeam lines.

We've got a fantastic capacity for piston. Capacity is a dynamic number.

This keeps on changing. We have to continue the investments and continue to ensure that we are able to meet our customer demands.

We are putting all the money in the right place and ensuring that we are able to meet the customer demands. Happy to state that in the first quarter we have met our customer demands.

Have maintained a fairly good mix so that we are able to maintain our margins.

Broadly in three plants and the three acquisitions which we did, what would be the capacity? All.

Everywhere we are putting in a lot of money. That's what I said in my speech, that there are capacity expansion programs going on almost in every place, right from our plastics business to motor controllers to even our interiors business and also our legacy pistons business.

Thank you so much, and that's it from my side.

Yeah.

Hi, thank you for the opportunity. Sir, my question is regarding Antolin India.

You mentioned about some new wins. It would be great if you can give some customer-wise idea in terms of share of business.

My understanding is really that Antolin India was probably not investing prior to being acquired, and customers wanted them to make some investments. Under now SPR, you've also mentioned that you've made some investments.

Now, can you give some idea in terms of how our share of business could improve with leading OEMs?

See, if you really see Antolin's business, they have a fairly good market share with all the customers. We have maintained those market shares, and we are seeing how we can grow further.

As far as we are concerned, we have opened up all the possibilities to invest, and all our customers know that. The customers know us right from the beginning.

Almost all the customers are similar. We have contacts with all the levels of the customers even both for our legacy business as well as all our other businesses.

We have a fairly good confidence. The customers have a good confidence on the SPR Auto Technologies that we'll continue to invest and make the right investment for them.

We don't give the exact figures, but we are continuing to invest. At the end of the year, you'll see all the results.

Sure. Sir, on subsidaries, we've seen a good margin improvement.

You mentioned previously Antolin margins have come to early teens. I think the Takata has been operating at early teens to mid-teens.

Generally we do a good job across businesses, is it fair to say that you can kind of get to mid-teens level even for Antolin?

I hope we can. We're pushing the teams.

We'll continue to see how we can make further progress on our margins. We have a number of actions lined up, and I think all of them are working, which has seen with the result, and I don't see any reason why it should not further improve.

Just a follow-up, sir, the margin improvement, is it also driven by the EV subsidiary, or is it just Antolin Q-on-Q margin improvement?

No, all the subsidiaries. All the subsidiaries have done well on the margins.

Because the EV subsidiary would have got the maximum operating leverage, right, with volume ramp-up?

Yeah. Everybody has got a good margin improvement.

I must say that all the companies have done really well.

Okay. Thank you, sir.

Yeah.

Hi. Thanks for the opportunity.

Am I audible?

Nikunj ji. Please go ahead.

Yeah. Sir, there are a couple of questions from my side.

One is that on the fundraise which we have taken the board approval for, just wanted to understand that how much is going to be used for acquisition and how much will be used for debt repayment?

We don't normally give this breakup. We are looking at various things.

See, the money is completely fungible. We already have money sitting on our balance sheet.

We do have plans for further investments. We have plans for the repayment of debt.

At the same time, we also have to continue to invest on all our businesses. It's a mix of everything.

The good part is that it will be put to very good use, and it will be put to the areas of growth. We continue to look at excellent business opportunities ahead, and we are quite confident of using the money well.

Okay. Just a follow-on question on this one, that from an acquisition perspective, now as we have moved over the last 2 years, our acquisition size has clearly increased with the Antolin being the largest one which we have acquired.

How should we look at now going forward, because at the console level, our size and scale is increasing. Is there any threshold in terms of acquisition amount of the business which we want to acquire?

Is there any threshold or something like that which you have in your mind?

No, Nikunj ji, normally, the acquisition has to stand on its own legs with regards to all the parameters that we have in our evaluation. We completely ensure that it falls into the respective parameters that we check on.

Only after we tick mark on all the issues related to technology, future growth, markets, and so many other possibilities that we really check it. It could be a ₹500 crore or it could be a ₹500 crore or a ₹1,500 crore, we can't really go by that.

The good part is that the company now has a good appetite, and it has a good means of managing fairly good appetite in terms of managing the leverage. We'll continue to do that till the time we know that for sure we are able to service it well.

Profitable for all our stakeholders.

From a balance sheet perspective, is there any metric like a net debt to equity or a net debt to EBITDA which you would want that these are the threshold that we will not cross?

We have a very clear parameters on that, very, very clear parameters internally. You can always work out the net debt to equity that we have.

It's fairly very low.

Is it fair to say that we would like to keep it at 1:1 as the higher side, net debt to equity?

It could even be lower than that. I don't think we'll ever

cross that.

Presently it is only 0.2. We don't see any reason why we have to go even up to 1.

Okay. One last question from my side...

We have money sitting

in our balance sheet, yeah.

Last question from my side, that you have mentioned that you want the consolidated margins essentially should over the time kind of merge with what we are doing on the standalone side of the equation. In that journey, how much time do you see that you will be able to kind of meet that?

You mean investments in legacy business? No,

no. The margins in the consolidated level to reach at the...

Sir, this was just a last follow-up. No,

just to answer this question, Nikunj ji. We are continuing to grow our margins.

You can see that at consolidated level, if we are able to maintain the high teens, I think it's an excellent possibility and it gives us a lot of opportunity within the group to do many things, both in terms of improving capacities as well as in terms of investing for the future in future M&As.

Okay. Thanks.

Thank you so much.

Hi. Thanks for taking my question.

Just two questions. One is on this EMFI business that we have.

If you could just kind of give us some color on what kind of capacities have we created and what kind of product because when we go on the today website of SPR EMFI, we see products like axial flux motors or drone motors or electric marine motors, right? There are quite a few interesting products that are listed on the website.

Because generally this business does not really get too much spoken in either in our presentations or on calls. If you could just spend some time and I think we have commissioned the capacity like you had mentioned in December last year.

If you could just share some insights as to what this business is, how scalable it is, what kind of products are we doing, how big can it be over a period of time, what are the industry drivers you're witnessing? See,

we put our electric motor and controller facility. We are probably one of the very few who make both the motors and controllers together.

We have a couple of lines for electric motors and controllers, electric motors standalone and controllers also. As far as electric motors is concerned, we make traction motors, we can make PMSM motors, non-PMSM motors, ferrite motors, as well as the synchronous reluctance motors as well as others for the two-wheeler industry, the four-wheeler car industry, that is the passenger car industry, and also the truck and the commercial vehicle industry.

We already have products which are under various stages of validation with various customers. I would like to state that we have really grown very well in this, and we have almost become a very sizable player today as a motor and controller supplier across the industry.

We don't normally give the market share obviously because this is changing by the day. We are getting new customers.

It's changing with the day, and it's really not right to give one number and then tomorrow say a different number. We are as yet not giving any kind of those figures because it's evolving.

I am very happy to state that last year we doubled the turnover, and we continue to grow very, very fast in that segment.

What kind of capacity do we have right now at peak? What are the utilization levels?

What kind of turnover can this business do and is it a high-margin... I'll

tell you, Ravi ji, if I add one winding machine, no, the capacity will increase by more than 15%. I can't give the capacity number.

It's a figure which will keep changing as we keep doing a little bit of investment here and there. Normally we are not giving that, because then that restricts our growth prospects.

Neither do I want to tell the team that we are not going to invest. For me, it's important to get the business and meet those businesses, and we'll continue to grow.

Okay. Because some of the products like you had axial flux motors, right, not many companies actually do it in India.

I was wondering as to what kind of R&D work is being done, what kind of technology do we have there and what is the source of the technology and for this business? See,

I think I have answered in my previous calls. We have a good technology partner, EMFI International is based out of Singapore.

We have a fairly good technology availability. We have also tie-ups with Lingbo for our controllers.

We are able to cater to all the requirements that is there for the Indian market as on date.

Okay. Now we have Antolin...

Thank you.

Vijay ji. Sir, I

just want to understand about the capacity expansion which you were doing at Takata and TGPL. How is it progressing and when can we expect product or revenues from there?

Phase 4 expansion in Takata has already started. We are building up a new plant, just adjacent to our existing plant.

We have another 5 acre of land, which is adjacent to that piece of land the factory that we had, where we have got three phases of expansion already done. Now we've gone in for a fourth phase of expansion in Takata.

Similarly, in TGPL, we already have the two plants in Noida, and in the second plant, we have complete capacity available, and we are getting orders as we speak.

These plants will start generating revenues over next 2 years or it would be faster? In fact,

as far as the new business in Takata is concerned, I think we are expecting it to start generating revenues by next year, early next year. TGPL is already on the process.

Okay. Sir, in EMF business, just a follow-up to the previous question.

You can help us understand who are the key OEMs who we supply, because even in the EV segment...

Almost on a monthly basis, we have got addition of new customers happening. It's very difficult for me to give any particular names and miss out the others, which will be impacting my business.

Kindly believe in us that it's not that we have doubled the volume just by talking. It is double the volumes has been just by getting more customers, right?

We are growing the business and it's doing very well.

Like even if you can give a broad color

Thanks for the opportunity again. Just one question, sir.

Just if you could comment on the Antolin business, how does our current business or standalone or whether Takata or TGPL work along with the Antolin business with respect to providing synergies or certain products, etc., which can be catered by or providing raw materials, etc., to the Antolin business? How does the operation of synergies come in?

It's going quite well. All this takes a lot of time with regards to approvals, getting the clearances, making the dies, tools, and then getting the customer approvals, end customer approvals.

All this takes time. We are progressing quite well.

Already the synergies have started. The teams have started collaborating quite well.

Overall, let me put it this way, the integration of the team within the overall SPR management has been extremely good. That's what is showing in the results.

Sir. Thank you so much.

Thank you so much, Gokul ji.

Am I audible? Hello.

Please go ahead, Ajay ji.

My question is regarding the Antolin integration. 3 years from now, what has to be true for you to say that this acquisition has been truly successful?

Beyond the financial metrics, I'm asking. What would be the early strategic indicators that tell you that the integration is progressing in the right direction?

This is my question.

It's a very interesting question. From my standpoint at least from the standpoint of the management, I can tell you that we have four or five clear parameters based on which we say that it has been successful.

I already say that it is successful because the integration of the teams have happened well. Teams are working together quite well.

There's a good collaboration. There's a good amount of culture that is getting developed across all the companies that we have done M&A.

We are trying to build in the same kind of culture in terms of how we work. It's going to be more about people that I'm going to say.

Because automatically then, once we know that our people are all aligned, businesses start flourishing. We are quite confident of getting that to happen.

We provide a very, very professional management. That really helps everybody to grow within the umbrella of SPR.

Okay. Thanks a lot.

Thanks, Ajay ji. Thanks.

I know we have overshot the time. I know that some of the people have also not been able to complete all their questions.

I'd really request all of you to reach out to our secretarial team for any questions so that we can answer back one on one. Please do not feel otherwise that we've not been able to take all the questions, because time-wise we were limited.

We have already overshot by almost 15 minutes. Very happy to see the amount of questions that we have had and the kind of questions that we've had, which really talks about how deeply people are really analyzing the company.

That gives us a lot of confidence that we have great stakeholders who are supporting the business to actually grow. We thank you once again for all that support that you're giving us.

Thank you for joining us today and for asking such valuable questions. We hope that all your queries will get answered.

Even if some of them have not been answered so far, you can reach out and we'll answer it back. Thank you once again for the secretarial cell and the investor relationship partners at Ernst & Young to have given the full support.

Thank you once again for everybody to have joined the call. Thanks.

Thanks a lot.