Thank you, Investec. Thank you, Swapna.

Good evening, everyone. Just before I ask our Chairman to give opening remarks, just a small disclaimer that today's discussion may include statements which may constitute forward-looking statements.

All statements that address expectations or projections about the future, including but not limited to statements about the strategy for growth, business development, market position, expenditure, and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectation of future events and involves known and unknown risks, uncertainties, and other factors.

No obligation is assumed by the company on this forward-looking statement. With this, I'll ask our Chairman to give the opening remark.

Thank you, Bikash. Thank you, team Investec, for hosting the call.

Good evening to everyone. I am Tarang Jain here.

To start with, I just want to say that India macro tailwinds is supporting growth. India continues to remain one of the fastest-growing major economies supported by strong domestic consumption demand, infrastructure investments, and policy-led manufacturing initiatives despite global headwinds.

The rural consumption growth is driven by increased farm plus non-farm incomes and easing rural inflation, whereas the urban consumption growth is driven by fiscal stimulus, tax relief, and lower financing costs. A synchronized consumption recovery is driving growth in the automotive sector also.

In addition to this, megatrends like rising disposable income, increasing vehicle penetration, premiumization trends, and a strong push towards electrification are also driving demand across segments. This was evident during quarter four of FY '26 with all segments of the auto industry showing strong growth on a year-on-year basis.

On a year-on-year basis, two-wheelers grew by 20.7%, three-wheelers grew by 32.4%, passenger vehicles grew by 11.3%, and commercial vehicles grew by 19.5%. On a quarter-on-quarter basis, two-wheelers grew by 3.7%, three-wheelers grew by 1.2%, passenger vehicles grew by 12.5%, and commercial vehicles grew by 23.1%.

For the full year of financial year '26 also, we saw similar positive trends across all segments. Two-wheelers grew here year-on for the full year by 11.8%, three-wheelers grew by 23.9%, passenger vehicles grew by 9.4%, and commercial vehicles grew by 13.1%.

Coming to the operational performance, during quarter four of FY '26, the company registered a consolidated revenue of ₹23.7 billion with a growth of 12.8% year-on-year. As indicated in our earlier calls, the overseas businesses have already started seeing revival in revenue growth supported by a strong order book.

Our EBITDA for the quarter was around 9.7% as compared to 9.3% in the previous quarter. Our PBT before JV profit was at 4.5% of revenues in Q4 of FY '26 as against 4.4% in Q3 of FY '26.

For the full year FY '26, the company registered a revenue of ₹88.9 billion, a growth of 9%. The EBITDA margin stood at 9.4% in financial year '26, and PBT before JV profit margin improved by 50 basis points and stood at 4.3%.

The revenue from supplying to EV vehicles in this quarter was around 14% of the revenues, and for the full year, it was around 13%. However, I would like to bring to your attention to the point that the India EBITDA and PBT was strong for financial year '26 at 11.7% and 7.2%, respectively, and grew both on a year-on-year basis as well as sequentially despite the supply-side challenges explained earlier.

In overseas electronics and lighting business, we continue to win significant orders, and the turnaround is expected to be more visible from half two of financial year '27. Our foremost priority remains accelerating revenue growth across both India and the international markets.

In India, we continue to leverage our strong customer relationships, technology capabilities, and expanding product portfolio to capitalize on opportunities emerging from electrification and the premiumization trends. In our overseas markets, we are strengthening our presence through deep customer engagement, enhanced engineering capabilities, and focused business wins, positioning ourselves as a reliable global partner.

In financial year '26, we achieved the highest-ever net new business wins with an annualized peak revenue of ₹32.889 billion. Notable business wins among these in the last quarter are the wall chargers for our Romanian business from a global EV player, gears and crankpins from our ICE powertrain solutions.

All this business win helps us to fill the existing capacity and sweat our assets even more. In this quarter again, we also had some business wins from the non-automotive segment.

We continue to follow a disciplined and a value-accretive capital allocation strategy with a sharp focus on investments in high-growth and technology-led segments, strengthening our R&D and innovation capabilities, particularly in lighting, electric vehicles, and electronic domains, and ensuring optimal returns on capital employed, taking steps to correct the cost structure in the company like VRS, which we did in FY '26. The net debt of the company in financial year '26 is ₹4,952 million, which is a reduction of ₹2,528 million from the last year.

The net debt-to-equity is at a very comfortable 0.27. The average ROCE of the company stood at 24.4% in financial year '26.

In this volatile new normal environment, we continue to strengthen our company for long-term growth and performance by taking appropriate decisions and meticulously executing them. Please note that the Board of Directors have recommended a 150% of the face value as dividend for financial year '26.

With this, I will now ask MK, our Group CFO, to walk you through the presentation and give more insights into our financial performance. We have uploaded the investor presentation to the stock exchanges as well as on our website.

Thank you, Tarang. Good evening, everyone.

Let me take you to the highlight slide, which is slide number 7. During Q4, as our CMD explained, the revenue was ₹23,681 million or ₹2,368 crores, which was a growth of 12.8% year-over-year.

Indian operations within this grew at 12%, but the most important point here is the overseas operations grew by 24%. We were explaining earlier that the order book is now going to turn into a strong sales performance this year.

We already started seeing it in Q4. The momentum should continue during the current year also.

The revenue from EV models in Q4 was at 14%, which actually amounts to a 50% growth year-over-year. Q4 PBT was at 4.5% versus 4.4% during Q3 of FY '26.

EBITDA was also at 9.7% versus 9.3% reported last quarter. Coming to the full-year revenue, it was at ₹8,891 crores, a growth of 9%.

We are registering double-digit 10% growth. Full-year PBT was at 4.3% compared to 3.8% of last year, which amounts to a growth of 22%.

Within this again, if you really look at India profit alone, it grew by more than 40%. Revenue from EV models continues to be at around 13%, which again grew by 39% if you take full year.

Our order intake was 33 billion, which is the highest-ever order intake. Nearly 65% of this relating to EV models.

One of the notable recent business wins was the wall chargers business, which is going to be manufactured at our Romanian entity, which will further add to the revenue potential in the coming years. Coming to the net debt, net debt decreased by ₹253 crores compared to last year and stood at about ₹495 crores.

There was marginal increase in the last couple of quarters in net debt, but that was largely due to the VRS scheme which we spoke about in the previous quarters, also some temporary challenges in the working capital which we should get corrected in the coming quarters. As our CMD explained, the board has recommended dividend of 150% of face value, subject to the approval from the shareholders.

This compares to 100% dividend which we declared last year. Going to the next slide, again our CMD explained the industry growth numbers.

Basically, the momentum continues in the auto industry. Taking Q4 year-over-year growth, two-wheeler grew by 21%, three-wheeler by 32, passenger vehicle by 11%.

Now if you see the full-year numbers, almost all the segments grew in double digits. The two-wheeler volume on year-over-year basis also grew by about 54%.

Coming to the Q4 financials, the total revenue reported was ₹2,368 crores with an EBITDA of 9.7% and PBT of 4.5%. The full-year numbers take us to ₹8,891 crores, which amounts to 9.4% EBITDA and 4.3% PBT.

Coming to the split of the performance between India business, overseas, and the R&D, now you can see that during Q4, the India business topline grew by 12%, EBITDA by 14%, and PBT by strong 27%. Overseas business also delivered a strong growth of 24%, which also improved the overall EBITDA level.

At PBT level, the improvement was not significant, but that is going to be visible in the coming quarters. In terms of the R&D spending, it was close to about ₹34 crores at EBITDA level.

The next slide, we explained the movement in net debt. As you can see, we reached the lowest point of ₹380 crores 6 months ago, back in September.

From there, we actually had to take an increase in net debt by close to about ₹115 crores, taking it to ₹495 crores. This is a combination of the VRS scheme plus some increase in net working capital.

In subsequent slides, of course, we gave the business breakup. We just changed the format, but contents remain the same.

Let me stop here. We're happy to take your questions.

Thank you.

Yeah. Am I audible?

Yes. Yeah.

Sir, just going through the order book part here, we saw very good increase in terms of the last quarter in the new order booking part. Can you just also give some split on to whether how much would be the overseas order booking here, and more specifically in terms of how are we seeing the ramp-up of specific to overseas order booking?

Yeah. The overseas order book for this year was around close to 1,400 Cr.

In terms of the ramp-up, we will already start seeing the majority of these programs start production within fiscal year '27. However, of course, there's a ramp-up period, it's more, I would say, fiscal year '28 when we'll start seeing the true potential of these wins.

However, we already are seeing, of course, increased revenue in fiscal year '27 itself, but fiscal year '28 will be a lot more.

All right. Okay.

Sir, this also includes are we getting some traction onto the Thailand plant, the lighting plant, orders as well, some color on that as well?

Yes. As part of this 1,400 Cr of revenue that we have mentioned, this would also include business wins for our Thailand location.

This would be, of course, within the exterior lighting space.

Yeah. This would be predominantly what, two-wheelers or four-wheelers?

It's purely passenger vehicle lighting.

Okay. It's purely passenger vehicle.

Passenger vehicle. All right.

Okay. This is headlamp to be more specific.

Just to clarify, this would also include a headlamp win.

Okay. Sure.

Sure. Very good to see the traction building in onto overseas business now.

As the order book has built up and we have a good start SOPs since from FY '27, '28 onwards, will we need to see some increase in the CapEx here, or our CapEx continues to be at the similar range as what we have guided before?

There will be some significant CapEx this year both in India and overseas also. Maybe small amount next year also, but, yes, there will be significant CapEx this year.

Sorry. Go ahead.

Yeah.

The CapEx, I think, overall will be at least to the tune of between 450 to 500 crores is what we see as the overall CapEx for this year.

Okay. This includes the land we are going to proactively purchase before?

Yes,

this includes the land. This includes, I would say, a small part of the land.

We are looking at other options to the land because the land availability is not that easy at the moment, we are looking at other options also. Overall, I would say it would be closer to 500 crores including whatever land we can get our hands on.

All right. All right.

Okay. Sir.

That's all from my side. Thank you.

Hello?

Hello?

Yes.

Hi, am I audible?

Yes. Yes, sir.

Great. Sir, actually couple of questions.

When we see the quarterly run rate for majority of our businesses, right, the HMI, the e-mobility, and even the aftermarket, we are seeing some Q-on-Q dip. Could you highlight what is leading to that, or that was as expected on expected lines?

I would say I would say, I think, particularly talking about what would be more the OE sales, which is and I'll answer it in two parts. Around HMI and e-mobility, I think e-mobility for sure in Q3, we had a significant level of backlog recovery also, which also improved performance for Q3 versus Q4.

However, otherwise volumes have have largely been steady. Yes, of course, minor differences in volumes and mix between two-wheelers and three-wheelers can also have can also have material impact given just the sheer size of content here in these phases.

HMI, I think, is largely along HMI, I would say, is largely along expected lines. However, I think for both these both of these product groups, I think as we look forward, I think given just the it's given just the sheer increase in appetite for EV, of course, whatever is global macro pricing we have, we see a strong path.

I think even for HMI, I think we see significant content growth taking place through the realization of the order book that we've already declared. From an aftermarket perspective, yes, I would say Q4 is generally a bit it's been light.

I think as we look forward, it's not necessarily a trend that is not a trend that we would expect to continue. Yeah.

Just one more point that what were the under-recoveries this time owing to the material inflation that would have happened towards the end of March? Is there an under-recovery, and that's why our margins might improve in the quarter once we pass on with the lag, or how do we see the current situation of the material inflation impacting us in the near term?

That is the question.

Again, I think I'll break it into two, right? One is in terms of talking about Q4 versus talking about what is perspective.

In Q4, we did not see an impact in the margin. Of course, there's some little bit here and there, but not like there's a material impact in the margin in the party gate.

Of course, going forward, it is clear that there is inflation across commodities that we use. Here, I think we are fairly aligned with our OEMs in terms of how do we drag that self-cost.

Would it be a monthly lag, or would it be a quarterly lag, or how are the OEM spoken to you? Any light or any color on that?

Every OEM honestly operates differently, the method of recovery in every OEM will be different. Having said that, there is a strong commitment, the way the industry works also, right, I think there's a strong commitment from OEMs and an understanding with OEMs that inflation will be compensated.

In some of the cases, there could be probably a lag of maybe a quarter, but we are expecting to be compensated in full despite this lag.

Okay. Just last question.

We see a very material ramp-up in the order book. That's a very good silver lining this time.

As we go in, 2 to 3 years hence, how are you seeing Varroc emerging over next 2 to 3 years? Probably, 1 to 2 quarters is a very short story, but what our target should be for the EV components per se that we do, and when we are pivoting to more electronics, wall chargers, how big do we see our contribution in that field to be?

Just if you could throw some light around that, that would be very helpful.

Basically, as you know that in the last quarter in India, about 14% of revenues came from EV, and now we see some signals that this EV penetration is even going to increase, definitely in our segment of two- and at least the two-wheelers, where we will see actually a major increase, and even to an extent also in the passenger car. I do see that there will be a good amount of percentage increase as a part of our sales, overall sales, where the EV content is concerned.

When it comes to our business abroad, whatever the businesses we have won of inverters, interior lighting, where we've already started our supplies, even going forward the wall chargers and everything, the major part of all the electronic, which are largest percentage are all towards EV only. At the moment, I think probably more than 80%, 90% would be towards all the wins we've announced in Romania all towards EV vehicles.

Also, in the lighting segment is concerned, a major part, of course, is also towards the EV segment. Whatever the revenues we see abroad coming out of Romania and later on in Thailand, which will start in a small way from December, all that will be towards EV.

Our EV content as an organization will definitely be significant going forward.

Just to add to that, the per-vehicle content which we will have in our overseas business from this EV customers will be very significant. Okay.

Okay. I'll join back in the queue for my follow-up questions.

Thank you.

Hi. This is Rahul from [Vacardia?]

. Just one question on the international business.

When do we expect a break-even in this international business? Which quarter do we expect the break-even to start from?

International business has two, three parts. As far as the two-wheeler business is concerned, it's finding positive profit, it's nothing.

Only in Romania, we have significant challenges, and we should reach EBITDA break-even by Q4 this current year. As far as the Italian forging business is concerned, that may take maybe one more year to get to EBITDA break-even.

Okay. For this Italy forging business, we were planning to do some action, either this is a sale or some other corporate actions.

Is there any progress on that front?

We are working on both internal and external measures. We're also taking some small corrections here and there to improve the operational efficiencies and improve profitability.

Separately we are also staying alert, looking out for suitable opportunities to find proper buyer, but we are not in a hurry to sell it at any cost. The right price comes, we'll think over it, and then we will implement it.

Okay. On the debt front, what is the guidance you can give us, let's say, over next four quarters?

Where do we expect the debt to settle down?

I think we explained it in the previous calls also. This year, because of heavy CapEx we have and the business ramp-up which is happening, we don't expect a reduction in debt from current levels.

The average debt could be in the range of 500 to 600 crores, more or less at the current levels or slightly upwards. We should move to a zero-debt status by say end of next year.

By FY '28.

FY '28, that's going to be the objective. See, today, we see a lot of growth opportunities, and we don't want to lose opportunities.

Whatever the CapEx needed, we definitely will incur that kind of CapEx for growth reasons. We have to see how things go depending on the other opportunities.

We see a lot of opportunities. We don't want to miss out on those opportunities also.

Like he said, we are very mindful, we are very financially disciplined, we'll be mindful of this overall net debt in the organization. Having said that, we don't want to lose on any opportunities also.

Okay. Could you highlight a couple of opportunities where actually doing the CapEx?

Which particular segment?

Where are we investing?

Yeah.

Like we talked about that also, right? Our order book is heavily skewed towards e-mobility and supplying product into EV models.

Naturally, of course, the CapEx will also be geared towards these segments. Further to that, of course, it would drive a level of CapEx also to drive expansion in capacities that the market is now demanding.

Okay. In the comments earlier, you also mentioned that you have won some orders in the non-auto segment.

Can you just elaborate a bit more on the quantum, the customers, and which segment we are actually doing this? Non-auto.

Yeah. The non-auto wins today are primarily again, around motors and motor controllers.

These are smaller-sized motors where we want to drive a level of import substitution.

In terms of the It's basically more of experimental or test basis only. We will reach some decent size only next year, I think we should give it that much time.

Of course. That is like with ramp-up of any product, right?

There will be a gestation period and a ramp-up. I think the total value of business win that we have

Is around ₹50 crores.

Yeah.

Annual peak revenue.

Okay.

Got it. Just last question.

Is there any progress on the order wins for the top three EV two-wheelers which we are discussing in the previous call?

Again, I think the status is the same as what we discussed last time, where we continue to be engaged, and we hope to have something to announce soon.

Okay. This is potentially with the top three players in the EV segment.

Is that correct? Yeah.

Yeah.

Okay.

Yeah.

Thank you.

Hey. Hi.

Thanks for taking my question. Can you please help us understand on how should we think about the growth outlook going into FY '27, given that we have a strong order book and our overseas business is also seeing a good revival, also the momentum in EV is very strong?

Should we expect a mid to high teen growth in FY '27?

Yes.

That's great to hear. Also, can you please elaborate on how has the recent tensions in Middle East impacted us so far, given that we have a contractual pass-through for most of the cost overheads?

How should we think about margins in FY '27? Should it trend higher versus our FY '26 levels?

Again, if the question is specific to the Middle East crisis, I would say the impact is twofold. I think one is the inflation that will fall out.

Like you said, we have material cost pass-through arrangements, and we expect that these costs will be passed through. The other topics really caused as a result of the situation is, of course, to do with through the supply chain in terms of both commodity as well as labor availability.

Even here, I would say we are now largely stable. In terms of margin performance as a result of the Middle East crisis, I don't expect it to have a bearing on the absolute value margin.

Thanks. That's it from my side.

In FY '27, margins will be higher than the what we reported in FY '26.

Okay.

Yeah.

Okay. Now, it's better?

Okay. Thank you.

One question on the non-Bajaj contribution has been increased 54% of the revenue. Which customer is driving incremental growth, and are we seeing this mix improve moving forward?

Another question on the EBITDA margin side that has increased to 9.7%, but still remain below peak level. What are the key levers to reach this double-digit EBITDA margin by FY '27 or '28?

Also on the raw material inflation side, if you can comment on the recent volatility and largely commodity price. If you can guidance on both side and what kind of spike in price, which segment with the OEMs.

Another on the body parts remain the largest contributor, 45%, and ICE power train is 15%, EV is around 6.2%. How do you see this mix changing over the next 3 to 5 years?

The last question is on the mix side that international below 11% now. Going forward, we are expecting to increase further, or it will be remain at this level?

Okay.

Jyoti,

the first question which she asked was share of percentage from Bajaj and non-Bajaj.

The percentage of share from Bajaj Auto, I would say, that is reduced distinctly based on execution of the order book. We've declared an order book, so as we keep executing, this share will go in line with what we execute segment.

That is the

Yeah. From 9 months to full year, the percentage of share of Bajaj has remained the same for overall company.

That has not gone down. The second question was that we are reporting EBITDA margin below 10%, when will go above 10%?

Okay. We don't give any guidance like that, but your question was also about the levers which will actually take us to the double-digit EBITDA.

Definitely the revenue growth and the operating leverage that comes out of that be a strong lever for growth. Plus, we also talked about the turnaround in overseas operations and growth in overseas operations.

That should also help us in coming close to the target. We do not give any specific timeframe to it.

This should be the levers to take us to close to that level.

One more question was on the mix in international. Whether that mix, the revenue percentage, will change?

It

will improve more in favor of the overseas business. Right now, it's around 7%.

Maybe by end of this year, it should move close to 10%.

The last question was the revenue mix between HMI, ICE powertrain, e-mobility, body parts, whether that mix will undergo a change over next 3 to 5 years?

For sure. I think the e-mobility share will definitely increase, just driven by EV penetration.

I think that's a trend that we see. I think for e-mobility and HMI, I would definitely increase over the next 3 to 5 years, and ICE powertrain, I think, will, as we already see, continue to lag a little bit.

Understood. Sir, just trying to understand this Bajaj contribution will going to remain the same, or is there any chances that it will improve to non-Bajaj?

If you look at our order book, I think we declare our order book in terms of what is Bajaj Auto versus non-Bajaj. We will execute in line with that order book.

The order book is skewed more towards non-Bajaj, I would assume that the share will produce.

Okay. Understood, sir.

Sir, just one last question on the like a lot of Jyoti,

Yeah. Sure.

Thank you. Just one question, like a lot of auto will diversify towards the aerospace, because a lot of opportunity over there.

If we see we are already competing some of the company in the transmission component side and engine rotating assembly side and precision part side. Are we planning any such kind of acquisition going forward, or it is any active discussion?

If the question is, aerospace as an industry are we looking to drive, the answer today is no. Having said that, non-automotive as a space is something that we continue to explore, and just we declare business also in this space.

We achieved our first business wins in the non-automotive space.

Okay. Thank you so much, sir.

Yeah. Hi.

Thanks for the opportunity. Just a couple of questions.

First is if I have to look at the margin

Sure. It's Viraj Kacharia from Simple.

First question is, if I have to look at the margin and the return structure of the different business segments we are in, what would that typically be? Where do you see maximum scope for margin improvement?

We'll say it is more coming from India only because India profitability is strong. Overseas is also recovering, as we explained earlier in the call.

The recovery from now in terms of margins will largely come from overseas business in the next couple of years. Of course, India business also, as the growth happens in the top line, the operating leverage also kicks in.

That's the way it goes.

Just to add to that, any new business which we take, we have criteria based on IRR. At least that kind of IRR that new business should meet.

Based on that only, we are taking business into the company.

Understood, sir. Broadly, if I have to look on a annualized basis, what would be the different margin bands each of the business would be operating in for us right now?

We don't disclose margins at the individual sub-segments level. Broadly in terms of overall direction, earlier also we mentioned that our intention is to take PBT itself to 10% in the coming years.

If you really look at our India business and in Q4 particularly, we are already at 8% plus. Our objective is to take the entire business to 10%, but it will take few years.

It won't happen immediately.

Okay. Just one more question on the lighting business.

See, that business has seen some consolidation or slack if you look at Q4 also for us. Just trying to understand what is happening there, and how should we see this business evolving for us going forward?

Lighting business in Q4 over Q3, it has grown. It's mainly because of overseas the lighting business has also grown, and also in India business also, it has grown.

In coming years, yes, because of the premiumization which is happening, I think this will be one of our growth engine.

Okay. Fast-forward, say, 3 to 5 years down the line based on the order book we have, how should we understand the mix in the business evolving?

Would we have more towards EV and lighting, or a traditional business segments like body parts and our ICE powertrains, will they also continue to be a majority? Any color if you

For sure, we would expect e-mobility, HMI, and lighting to continue to occupy a larger share of the pie than the others, to be frank. Having said that, that does not mean the others will also not grow.

They will also grow, but probably not as quickly as the other three. It is really driven, I would say, by technology differentiation that is required.

Yeah. Thanks for the opportunity.

Vinay Jain here from Karma Capital. Just two questions from my end.

Firstly again, if I look at the domestic growth for the quarter, somehow we have not been able to participate in the industry growth, which we're seeing across say two-wheeler, three-wheeler, and passenger vehicle. Primarily again, 75% of the business being from two-wheeler, three-wheeler, which has grown at upwards of 20%.

Again, coupled to that, if you see the EV business for us growing at 50%. If I discount for that, then the growth seems to be even lower.

One, wanted to just understand why the growth lower versus say the industry or our largest customer as well? Secondly on the CapEx, if you could just quantify the CapEx outline for the next 2 years and the areas in which it would be spent.

Thank you.

Yeah. Let me answer the first question.

Of course, you're right. In terms of, if I think about the past that we have been on for the last 2 or 3 years and discussed it multiple times, and the focus has really been around driving content growth and driving growth in premium vehicles and in electric vehicles.

Now given where the growth has come from really in Q4, and when we look at what is our customer mix and what is our model mix also in the customers where we have wins, the segment where we have higher content have maybe not grown as quickly. That is essentially why I would say through Q4, we're a little bit behind.

Having said that, like we mentioned earlier as well, as we look forward, we definitely see a very strong trend around incremental EV penetration, and we definitely see a strong trend around further premiumization even in, let's say, slower-segment vehicles. Continued execution of our order book should allow us to play more significantly in the growth in market that we're seeing as well.

On the CapEx? Yeah.

Yes. As our CMD explained earlier,

this year it could be in the range of 450 to 500 crores. Next year could be lower, maybe around 3 to 400 crores would be the requirement.

Most of it will go to create capacities or to spend on program-related CapEx, which is all related to growth.

Basically, see,

Any specific areas if you could just maybe highlight?

It will be, of course, towards electronics, more towards electronics and lightings. Obviously, towards EV vehicles is definitely something we would prefer.

EV and electronics are the area where the focus will be more. Having said that, whether it comes to even body parts or our metallic parts, we are seeing growth there also.

There also we will continue to grow. One thing also we are focusing is on more of mechanization and automation on the shop floor in India.

Going forward, we do not also want to depend too much on the manpower, which we are finding a lot of challenges as we grow. We would like to mechanize and automate more, and therefore, a part of the CapEx every year will also be towards some better technology equipments and also towards mechanization and automation.

Got it, sir. That was helpful.

Thank you so much.

Yeah. Hi.

This is Naman from Shami Family Office, right. Just two follow-ups, right.

One is on to the revenue trajectory, right. We already clocked close to about 9,000 crores, and we have SOPs worth 3,300 crores coming in FY '27 and FY '28.

Is this the right way to look that the next 2 years, we could clock close to about 12 12.5 thousand crores basically from the realization of SOP, or are there some adjustments that needs to be made? I'm not asking for the guidance, but I'm just asking for the conversion on a like-to-like basis.

The order book, we are confident in. Into the order book we've declared.

We will achieve that. Whatever you're saying, 9,000 plus that thing will happen.

Okay. Just on to the margin profile, so that would lead to the break-even of maybe the overseas businesses all together.

The drag that is coming close to about 70-odd crores on the overall, that would also reduce by a lot, right, on a comparable basis?

Definitely. In 2 years' time, we do want to break even overall abroad.

Okay. Just quickly the last point that I wanted to make.

Now, excluding this year, right, this year could be an anomaly, but as we move into a steady state high-performing EV plus electronics manufacturer, the delta change, right, in EBITDA, right, would it be like a conversion margin, or would it be more towards a technology-oriented solution provider? Could you just explain that, which side it would bend towards?

See,

across the product lines that we do, we operate different models. We operate different models with the OEMs.

End of the day, we own technologies for every product that we supply. This I think we care about.

In terms of what margin profile would look like and again, I think our CFO has said before, our focus is on PBT, and our focus is on return on investment. Here we do not believe there's a material change on these metrics versus what is the business profile today.

Okay. The NCD approval that we have taken, that's an enabling resolution, or are we planning to raise the NCDs in the near term for 500 crores?

It is an enabling one.

Okay. Thanks.

I'll just come back

Yeah. Hi.

Just one question. Actually, in the previous comment, you mentioned the break-even for the international business for 2 years onwards.

Does a break-even means the including the R&D business also, or is it only the operational subsidiaries?

It's only the operational one. R&D one will take some more time.

Okay.

To summarize the operational subsidiary, you mentioned the break-even by Q4 of next year, right?

That's for the electronic business, Naman, what I was talking about. Two-wheeler business is already in the positive.

The Italian will take one more year.

Okay. Out of this 14% EV revenues, how much is contribution from non-Bajaj customers?

Out of this, nearly 4 4% to 5% is non-Bajaj.

Okay.

Hello. Yeah.

Am I audible?

Hi. This is Akash from NV Alpha.

Sir, my question will be pertaining to the answer that you gave to one of the earlier participants wherein you said that growth for us this quarter has not come from the segments where we have a higher content per vehicle, which we can also see to a certain extent in the e-mobility segment. Sir, my question would be in regards to that.

Since you are confident that those segments will work out positively in the coming quarters. Sir, just wanted to understand where does that confidence come from?

Because that e-mobility piece, I think one of our anchor customers there has also grown superbly well in Q4, but that growth has not replicated for us. Just wanted to understand or reconcile this a bit.

I would say I think the first thing I would say is when we are comparing our growth vis-a-vis any particular OEM, we should really look at production data rather than the retail data. From a production standpoint, I think we are fairly on track.

The further confidence of growth comes from the fact that we have seen you already in the previous quarter also, right, that there's a fundamentally larger demand for EVs today versus, let's say, 2 months ago.

Okay. Basically, as the shift towards EV increases, our market share, our wallet share with our own customers should keep on increasing from here.

Is that what you mean?

Sorry, I think I'm not clear what is your definition of wallet share, but it's very simply put, our content in an EV is significantly more than what it is in an ICE two-wheeler. The more EV vehicles you have, our total addressable market increases, and whatever portion of that market our customers gain, we naturally gain also as a result.

Fair enough, sir. Thanks.

Just a bookkeeping question, right. Now, I think with the TYC thing being majorly solved, there's still a point in our auditor's report with regards to that.

When do we get to resolve it completely and get it out of the way, means what's on that?

Yeah. The arbitration process is going on.

There are different submissions to be made between now and end of the year. Most probably by end of the year, we should know which direction we are heading towards.

This is going to take some time. It is subject to the arbitration process.

Okay. Likely, we are hopeful that by the end of next year when we get the audited report, we are majorly through with that?

That's the objective. That's what we are working towards.

Okay. Just last thing that are we seeing any major production disruption happening in thus far till May, or has it been kind of on track so far?

Basically, see, what we have seen is issues not so much with us. We had issues also when it came to shortage in labor because of this war crisis, not material, but I think more at our supplier's end, Tier 2, Tier 3, is where we are facing challenges.

After 15th of May, we see improvements were there. What we're doing is that we are actually proactively working to see that we are getting our supplies from all our suppliers.

It's more to do with bought-out components, not so much with the raw material. Once that is kind of there, then we will also see that we're able to manage the sales to the fullest extent.

The things have really improved. We have kind of normalized after 15th of May.

We're also seeing more of normalization at the supplier end, which may probably kind of normalize by the end of this month. At the same time, because we see a good growth going forward, we're also now working on our own internal capacity expansion as well as at the supplier end.

This will be critical for achieving the higher level of sales which is there in front of us.

Thank you, Investec, once again. I would like to, again, reiterate that with a strong foundation and a clear strategic priorities and a committed team, we are confident of delivering sustained growth and a long-term value creation for all our stakeholders.

Thanks once again for joining the call and for your continued support. Thank you.

Thank you.