Ladies and gentlemen, good day and welcome to ABB India Limited's Q2 CY 2026 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded and any unauthorized recording of this call is strictly prohibited. The recording will be made available on the company's and SEBI's website subsequently. I now hand the conference over to Mr. T.K. Sridhar, Chief Financial Officer of ABB India Limited. Thank you, and over to you, sir. Thank you, Robin. Good evening, everyone. Ladies and gentlemen, welcome to the Q2 2026 earnings call of ABB India Limited. Along with me is Mr. Sanjeev Sharma, the Managing Director of ABB India, and also we have Kiran Dutt, who leads EL business, along with Ganesh from ELDS Distribution Solutions. Also we have G. Balaji from Automation. Sanjeev Arora is not available as he is traveling, so we will have the call with all five of us in this particular time. Sanjeev, would you like to start off? Thank you, Sridhar, good evening, everyone. We are very mindful of the fact that all of you have taken time on Friday evening to attend this call. We really are appreciative of this accommodation. Today, the way we'll run the call, there's a slight change. As you know T.K. Sridhar, for a long period of time, he has been CFO of the company and also has been managing investor relations. You have known him from that position. In the month of May, Board kind of accorded him the status as the MD, Managing Director designate, starting from 1st of January 2027. Between now and end of the year, I am preparing transition. Part of the transition, I would like to invite T.K. Sridhar to present my part or the Managing Director's part in this conference and also in November quarter so that you get used to it. In the meantime, we are also deciding on the new CFO for the company, which we will announce in due course. So that the transition in January is seamless. You will continue to hear the same voice in the coming quarters. Over to you, Sridhar. Thank you. Thank you, Sanjeev, I think it's always a pleasure to work with you and also the team members and such. For the people on the call, I think I already had a reversal at the board meeting, so I did both the MD presentation and CFO presentation. I think I carry on from there. As Sanjeev was alluding to, the CFO search is on. We should be complete in the next couple of months, and then we have the process of induction there as well. Right. Now to continue on the presentation. I think the presentation is open, and I hope everyone is able to see that, right. I think let's go to the first slide. Right. This is the slide from where we start, right. This is just an ABB at glance. People who have already familiar with this, there's only one point to note. Now the number of manufacturing locations has increased from five to six because we had Nelamangala as second location, which we—t hat's why the six locations, the balance is same number of shop floor will increase as businesses start to spread out in Nelamangala in location as well. We go to business highlights. We just uploaded this presentation. I do not know how much time the team got to look at the presentation, I will like to take you through that. We start with a half year view. We are at 36% up on orders, INR 8,600 crore roughly on the orders. Revenue INR 6,743 crore, which is also 13% up on the half year, for the quarter is definitely a different number. Backlog, strong backlog, INR 11,900 crore of order backlog, in which there is no slow-moving or a non-moving order. Everything will get materialized over a period of time as scheduled with the customers. Operational EBITDA, 12.8%, we will look at it in greater detail as we go forward in the presentation. On the profitability and the earning per share is INR 33.61 as of we stand today, based on the half year results. The cash position is strong at INR 7,200 crore. You would have heard just now in the part of the presentation, we did declare an interim dividend of INR 90 per share, which is a part of the distribution, which includes the proceeds which we got from the divestment of Robotics, plus a 50% payout ratio of what we do from the normal earnings. For Q2 2026, very important, 50% growth in orders. That year-on-year comparable between the last year same quarter and this year. 21% on the revenue growth, PAT up by 8%. Operational EBITA up by 23%. The cash position, I already spoke about it, INR 7,200 crore. Dividend of INR 90 as a special dividend for today. All these things was done, but also on the sustainability side, we take really pride in doing this because it's the right thing to do. We had an 85% reduction from the baseline on the GHG emissions of Scope 1 and 2. A lso 99.7%, almost 100%, of the waste is diverted from landfill. That's something which is there. Also we got some recognitions during the quarter. India's Most Sustainable Company in the Capital Goods sector was also awarded by Business Today. We moved up in the ladder of the ESG rating by 300 basis points on the CRISIL standards. We still remain as a strong company as of now. Some metrics for the last eight quarters, how did we perform? I think we have been hitting in growth momentum, and the last few quarters we definitely see there's a good uptick in the orders. 50% is up for the quarter. Revenues as well, we are able to ramp up the revenues because we have a good order backlog, which is going to be converted in the next quarters to come to be around up by 21%. Where did we get all these orders from? I think it is more from renewables, building infrastructure, data centers, then the process automation and also food and beverages. This is our slide where we see how we are positioned in the different markets and how do we see those markets as well. As we are present in 23 market segments both on energy, emerging industries consisting of renewables, data centers, and electronics, and infrastructure and transport, core industries as such. I think all these industry, all the fundamentals remain intact. We have been seeing that these industries are growing at different paces, but they're all important for us, even though core industries may have a slower growth, but whereas emerging industries will have a faster growth, but the base of core industries is pretty heavy to generate equal amount of opportunities for us. Our spread between these two could be 15, 25, and 60 or 50% is what we see in terms of our order book or revenues, that's what we see. I think hopefully, I think there are a lot of levers as to how this market grows. Green energy, then the AI and the data protection, pushed by the government and the CapEx, which infrastructure spend where the government is focusing on that. Of course, the PLI schemes and GST. Yeah. Where did we get orders from? I think this is something that's a new slide which we added. I think this is different from what we used to do. From Electrification, from in the Electrification segment, from building in market, we got a gas-insulated switchgear. Then for the data centers we got ring main units. From renewables, of course, from the smart power products which was offered to them. On the Motion side of it, we got traction and auxiliary converters from the railways. Motors which we supply to food and beverage industries and large AC motors to a building and infra segment. On the Automation side, marine and ports, where we gave electrical and electricals and drives and power distribution for power plant and energy, and for energy industry electrical control system for large refinery. Theme of the quarter, I think this has been a practice what we have been following for quite some time now, where we take the business, where we take the people around different markets, different segments as such. In this quarter, we have water and wastewater treatment management system as one of the markets where we see it is definitely a growth for us. For ABB play in this is 4%-8%. The midterm growth, which we look on this is roughly about 10% CAGR over the next five years to come. What do we do over here? We have motors and variable speed drives which we give both for outlet and inlet pumping stations. We have PLC controllers, which we give for command centers, distribution systems for electrical rooms and of course, and for these units. It's an interesting area, but a market which will grow slowly. That's what we say, the play of 4%-8%. I think the growth of 50% and the speed of growth, what we are seeing could not have been possible had we not taken these initiatives of connecting with the customers and in different Tier 2, Tier 3 cities. Where our sales teams are fully engaged with the customers on ground. Different programs as suitable for different businesses tailored to the needs of the customers is actually a, what we call mantra, which we have been following and it has been paying rich dividends so far. Sustainability in practice. I think we did discuss this about this some time ago. I think this is how we said that we moved 300 basis points, 64 to 67, and therefore ranked first in the heavy electrical sector for strong ESG performance. We believe that not only being a performing organization is important, we also need to be a good corporate citizen. Therefore, our involvement in community development and engagement which continues to remain strong and we will only develop on it going forward. It's a very passionate topic at the board level as well, where how we are engaged on the community development as well. It's one of the places where we take pride in being associated with the overall development of the country and the areas surrounding us. We now go to financial highlights. This is something what I think I'm sure that you were waiting for. Orders up 50% and revenues up 21%. Operational at 23% up with a 13%, more or less similar as what it was in the last quarter same time. Profit after tax 10.4% to 11.6%. Sequentially also we are a [bit off]. As we have been growing across all the parameters, that's what we see. As far as the half year is concerned, we are at a place where we think that we could perform better as we go forward because we get deliveries of revenues and we will be able to generate cash. We will delve deeply as we go. I think this is one slide, I think which I had taken out in a couple of quarters before, but we brought this back slide up because I know that you have looked at the Global press release which talked about 82% of growth. This is something which we want to report between these two. This is in dollars and INR 84 as in the rate which we take it because we have been maintaining consistency from beginning of the year. I think the Global press release showed 82% because you have India growing at some time and also we had other ABB companies outside India getting some orders from Indian customers, which were 1 24. This was what, which created a difference of giving up 82%. When you look at absolute India orders, we are in fact at 50% is what we told. This is basically what ABB India had, both from domestic as well as exports. We delve into now segment-wide information. Orders for Electrification, the strongest growing segment was what we see for the quarter, 77% up on orders and from data centers, the orders again from data centers, metals and mining influence in that sector. Revenues, because you have a strong backlog, which is also today at I NR 4,900 crore, which is strong backlog for EL Electrification segment. I think we are growing at 31% and profitability at 15% as what we see. Yes, this has been impacted basically material cost impact of due to raw material prices hardening and also the forex volatility what has impacted us. Motion, a stable growth quarter-on-quarter. I think we could see that 26% growth coming in every quarter sequentially as well. If you look at revenues, slightly lower because they have long gestation orders from railway segment, which will get revenued in the future quarters to come. Profitability was from 12%, that's what we see despite the commodity price increase and the revenue mix challenges because some of the West Asia, they were not able to freely export. There was some hold back in the initial period of the quarter, which now got released. That's something which they are looking at, and there the order backlog stands at INR 4,900 crore. Automation. This is a place where we see that there is a bit of a cyclical nature of orders. We are at this point of time, though we say 24% growth comparatively, but more important is it could have been still better. That's what we see. The revenues at INR 524 crore is 7% up, but hopefully, I think going forward with orders to come and orders with the energy and the fossil industries division, business divisions will book, I think we could see this. The good part is that out of the growth of, I mean, INR 524 crore, at least 30% services. That helps them to maintain the margin for. A bit about the P&L account. Material cost 3% roughly compared to 61% last quarter and 60% in the Q1 2025. We have a bridge profit walk, which we will take you through, but this is just numbers to say that material cost is a place where we impacted. There was also a slight definitely an increase in our expenses as well, which is more linked to the revenues which we executed. This is the profit walk. I think apart from the charts which are there on the top side of it, which is just a bit of a trend, which you look at, EBITDA pattern, yes, more important is how do we look at the EBITDA bridge, right? I think when you look at EBITDA, it was 13.6% last quarter, and today it is 12.6%. What we got was a scale benefit of 2.1%. What we lost on material cost was 3% roughly. Right? Then we had other expenses and the employee-related expenses which increased, and that was 2.2%, while we gained from an, because last quarter the same time we had a really high forex impact, and that is not there in this particular quarter. That probably gained us this particular advantage of [1.6%]. I think the question could be, is that the scale benefits should technically be higher than the expenses, what you see compensating for other increases. That is something which we would like to see going forward, but also the price increases to the market being an flow from the being so products, it always takes a lag. The timing cannot be matched with the material cost increase. Obviously, price increase which you give to the market. Therefore, there is a lag which will come up. Hopefully when the macro factors settle down and we're able to come to a stable level, I think these two will match at some point of time. I think this is the normal trend which we have seen specifically in short cycle product business. This is typically the problem what we have. Now coming to what is this material cost comprising of? Again, we go back to the basics. Material cost increase is on account of our copper prices and the metal prices which have risen, which have hardened. The corresponding volatility, what has actually happened. Also a bit of a mixed change between slightly lower exports and a bit of more projects and low margin orders which got executed. Because it's important to keep the volume and the factory loadings and the volume up and running so that we are well prepared to take the scale benefit going forward to a higher level. Overall, I think this is basically the profit bridge between what we delivered last quarter to this quarter. Next slide. I think this is standard slide, what we have been seeing, just to tell us what is the composition of how we are looking at the businesses. I think if you look at it, Q2 2026, in terms of revenues, EL is 50% up, 35% on Motion and 15% from Automation. This is broadly the slide what we see. In terms of geography, if you look at it, we have just 13% in exports for the quarter compared to 17% what we did in the previous quarter at the same time. Even though in a half year period, we are more or less the same. Go to the next slide. This is just I know I am a 100% sure that you have all this information, but just to basically synthesize, this is a topic which we will have to continue to deal with in the next few quarters to come, right? Elevated commodity prices and continued rupee depreciation will be extended is what our research says. I think we are preparing as to how to manage this. This is a situation for the businesses to handle. We are geared up to address this in a very strategic and very phased manner. This is my last slide. On the outlook, the megatrends electrification, automation, digitalization will be the key megatrend, what we see along with grid modernization and transition. This is something what we think will be the area of focus for all of us to determine the 23 market segments what we have and the 15 business divisions what we have, will all be interjecting on these particular things. I think with these macro factors of the government CapEx, which is expected to pick up the private consumption which is going to drive and a robust manufacturing base, what we have. Start dealing with the geographical and geopolitical uncertainty as well as current situation and a subnormal monsoon is going to be the aspects which are going to play out in the next six to two to three quarters. That's what we see. This is more bit of a short-term outlook, what we see, because today with the rapid changes which is happening, I think short-term is more reliable or I think something which we could look at it rather than even a medium-term as well. This is the last slide. I think with this we sort of completed our presentation, right? We now open it up for the question and answers. Normally Sohini used to say that we have to complete within 10 minutes. Just four minutes Sohini. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue you may press star and two. Participants are requested to please use handsets while asking a question. We also request that you please restrict yourselves to two questions only. If you have any further questions you may rejoin the queue. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Umesh Raut with Nomura. Please go ahead. Hello, team. Good evening. Thank you for this opportunity. My first question is pertaining to strong ordering performance during the quarter. If you can give us details about growth on base ordering side during the quarter. Second, also growth in terms of ordering from, say, emerging industries, infrastructure and transport, and core industries in these three buckets. Okay. The first thing is about base orders or what we call large orders. There's a bit of a disturbance. Is anyone able to hear? You can ask if they can hear you well. Are you able to hear us well? Yes, I can hear you. Okay, that's fine. We were talking about large orders or base orders. I think we want to move away from differentiating between base orders and large orders. I think we realized that large orders were very important when we had Power Grids as a division because large orders we define as $15 million, which is roughly around about, say INR 900 million or INR 1,000 million or INR 100 crore of orders, which in a business where we have almost 70% or almost 80% coming from products, I think these type of large orders is something which is really less. To answer to your question, in this quarter is everything is base orders, r ight? The next question was how did you perform in these different segments? I think data centers orders in this quarter has been almost 15%-17% of our orders came from base orders. Metals and m ining was 15%. Oil and gas was 9% and buildings and infra was 8%. Renewables was 6%. I think in the balance is all distributors order segments. Understood. My second question is pertaining to acquisition of Rotork by parent, probably synergies that India business may get from the areas like data center, water, or say power, especially because now Rotork is industrial flow control specialist and probably in a few of these end-user markets, your addressable market can go up. How do you think about this synergy playing out for India business? Great. I think it is slightly early for us to comment on it because globally, if you look at the announcement as well, the shareholders of Rotork have still not approved this particular deal or it is pending for their approval. We have no other information other than that which has been announced by the group. We have nothing to comment at this point of time. It will be too early for us to work and give you these details. Probably when we get more information or when the group advances on their particular pursuit of this, then we could sort of share with the investors further details on this. Understood. My last question is— Sorry to interrupt, Umesh. We request you to please rejoin the queue if you have any further questions. Thank you. Our next question is from the line of Renu with IIFL. Please go ahead. Yeah. Hi, good evening team. My two questions. First is, if we started the calendar year 2026, the team was fairly conservative and cautious on the growth outlook. Then we had the West Asia conflicts. Now, looking at the numbers, 1Q was soft quarter, 2Q bounced back very strongly on execution revenue side. What has changed in terms of business offtake? Was it just slippages of revenues which caught up in second quarter or we are seeing a much better acceptance from the customer in terms of deliveries. Also reflected in the numbers, the channel partner had seen a particular jump in the revenue mix this quarter. Was that also to do with any shade of channel inventory stocking up involved versus relatively soft offtake from end users or EPC companies? That's the first question. Second question— I thought that was two questions. No, that's the first question. The second question is, looking at the order accretion, which is fairly well balanced in large and short cycle orders of the first half of the year, where do we see the margin headwinds easing out and with operating leverage kicking in by end of the year, do we believe worst for ABB in terms of the operating leverage ties behind and can we see margins coming back to mid-teen levels through end of the year or next year? Yeah. You want to take? Over to you, Sridhar and Sanjeev. Renu, you also took the cue from Sanjeev. Okay. Thanks. I think Sanjeev also will chip in where I find it difficult to talk because it's more my prepared script. Renu coming to your first question, which is the transition from what was the market in first quarter and second quarter. Yes, I think when the 1st quarter only closed, because at the time it was more because of the Russia crisis had stopped the entire world. If you remember the Q1 call, we did say that we did miss certain revenues because of the Russia crisis, and that also had a spillover on the Q2 revenue which we had. I mean, I cannot deny that particular fact, right? Whether it is only export-oriented revenues, the answer to that is no. It's a mix of both export and domestic revenues because export is one side of it but domestic is also important because we get materials to import from the other countries or other factories which we then converted to finished products to apply locally as well. This is basically the situation. It's a mix of both and therefore when you look at H1. H1 revenues are 13% up otherwise it would also be up by a larger percentage. It's a sort of a stabilization which has happened. Coming to the next question of what was the next question, sorry. If you can repeat it. Margin. On the margins? Okay. On the margin side of it, I think we have a strong backlog. It all depends because it is all dependent on three things. What I say, will the material cost, will the metal prices and the freight rates remain at today's level? Okay. If today's level is sort of maintained because we know that this is what it is today and the pricing and we see that the mix and we don't have any distortions in terms of supply chain, right? Probably we get better leverage of the capacity of the operating leverages going forward in next two quarters. Our research says and this comes back to the same slide where I was showing the different commodities and the prices. Our research says that we will still have certain headwinds from that particular side and we have to carefully navigate this particular situation as what we see. Today I'm not comfortable to tell what is that mid-teens of EBITDA margin which we will do. Most important is protect what we are today so that we are able to develop the revenues and the orders in a good manner and then start to grow from there. That's what we are looking at it more short-term basis. Thank you. The line for the current participant seems to have dropped from the queue. We will proceed to the next questioner. That is Parikshit Kandpal with HDFC Securities. Please go ahead. Congratulations on a decent quarter. Our first question is on the three segments, Electrification, Motion, and Automation. You earlier alluded on the commodity inflation and the forex impact. We just wanted to understand on the passing on the pricing or the cost inflation. Where are we facing challenges and where it is more easier to pass on inflation and what kind of price hike you have taken in this quarter? Okay. We have two gentlemen, Kiran Dutt and Ganesh Kothawade, who deal with Electrification, which is a major part of our revenue. I would invite Kiran and Ganesh to throw some light how were they managing the— Price transfer. Price transfer to the customers. Kiran, would you like to go first? You hear me right, Sridhar? Yeah. Okay. Parikshit, thanks for your question. I think it's a very important question at this point of time, when you have this West Asia crisis and also the kind of prices we are going through with respect to the commodity prices impact, and also the forex impact. I think these two are really hitting us hard. You can also see from the slide that the margins of Electrification has dropped from what it was earlier as well. It was very important for us to take some corrective actions. Of course, there's a bit of a lag in the corrective actions, what we have taken and the impact of the price and cost it is impacting us. That you can see in the graphics as well. At the same time, what we have done is we have passed on two price lists into the market. These are two price hike. This is a publicly available price list which is there. This is really supporting us in terms of trying to compensate the EBIT which is coming into picture. When I look at the acceptance, yes, there has been a lot of challenges in the market with respect to the customers accepting the price. I think a very careful and it's been handled in a very delicate way from our side in terms of creating an awareness on what exactly is happening. Of course, most of the customers are aware of what's happening in the commodity price, but I think it's very important to very clearly explain to the customer what is in depth the content of silver or copper, which is present in our products. I think it was very evidently proven to the customers for sure are quite logical in accepting something as a product with very high reliability and sustainable performance. I think they are coming back to us and paying the price what we need. At the same time, I think digital market is extremely important, they understand the connectivity of devices which are required from our perspective. They are coming back to us even more faster than what they were doing. Hence there is a price acceptance as well from their ends. Thank you, Kiran. Ganesh, do you have any comments to further add to what Kiran was alluding to? Ganesh? Have we dropped? No, Ganesh has reconnected with us, sir. One moment please. Okay. Hello, are you able to hear me? [crosstalk] Ganesh, were you able to hear the question or you want a read on the question? No, can you please just repeat me? I think the question was, how are we dealing with the price increases to be passed on to the customers, given that we have cost increases are coming from the raw material and input cost, which has gone up, right? That's something which the investors want, the analysts want the clarity of how we're managing the price adjustments to the market. We heard Kiran's version, which is more on the product side. Now we could listen to your version, which is more on the system side. Yeah, sure. Even Distribution Solution business, 16% business comes from the product, which is a flow business, which we basically market to our partners. There we are able to pass on the revised price list with increased prices, taking into the consideration of the commodity impact. As you said, there is a system business and majority of those business actually when we bid, we bid through basically on the L1 basis. It's all basically the tendering basis where we have to go for the reverse auction. That time, sometimes we are not really able to pass on these prices because there is quite lot competitive prices which we need to quote. Flow business, which is the major part of our business, where we already increase our prices and pass on commodity price increase in the market, you will see that reflection which will be coming in the coming quarter. Parikshit, I think just to reiterate what Kiran and Ganesh told. There will always be a lag. If the input prices stabilize, then you will have this particular lag catching up. Otherwise, this still will continue, right? That's something which I think is important for us to realize in this market at this point of time. Thank you. Second question was on the geopolitics and also maybe what I think or believe is, if you can just correct me. The order growth or the inflow growth, which has been quite strong YoY. Are you seeing any delays in decision-making from the client side, given the high levels of commodity prices and geopolitics? Or more in a normal situation, otherwise order inflow should have been more stronger. Just wanted to understand the color on the ground and the demand side across the segments. Barring the current situation, we are in a high inflationary environment and anything the industry is making from the client, and its impact on growth of order inflows. Okay. You will hear two versions, one from Balaji, who leads the Automation division, where it's more project-related orders from the customer. Core sectors. Exposed to core sectors. While we have Kiran, who could dwell upon from the private side of it. Balaji, would like to start from your version as to how you see from the government infrastructure side of it, and how is the core sector behaving to this now? Sure. Parikshit, I hope I'm audible here. Yes, very much. You are audible sir. I would say that there has been certainly a certain amount of impact due to the West Asia crisis. For sure, since we deal with the refining sector, which is one of the key sectors here. When we see on the CapEx side, for those investments that have been already announced, those projects are moving ahead, though bit sluggish, which is typically normal of the moment of public sector. However, when it comes to services, the companies really pull back because of the increase in crude oil prices, and that's easing up now. The essential activities were carried out. I would say that little bit of sluggishness definitely on the refining side. On the downstream, other core industries which had direct relationship with the crude oil prices, we did see a little bit of a sluggish moment. I would not say that we pressed the panic button since the crude oil prices have been settling. Even though the situation is quite volatile, we are still seeing moments here. You would rather see that there could be some real moments in the upstream side, maybe we are hopeful that certain projects will be shortly announced. The power sector definitely has seen a lot of investments while seeing a lot of growth in the renewable side. Considering the low inertia of renewables, and the crisis that is coming up in terms of natural gas supply chain, we are seeing a good uptick in the conventional power generation systems as well. Thank you, Balaji. Kiran, would you like to give a view from the private sides? Absolutely. Thanks, Sridhar, and thanks, Parikshit. I think it's a good one to have this kind of talk. Let me just give you some perspectives, as Balaji's talked about on the core sector. Let me give you some perspectives on some of the sectors which we are into, and let's look at one or two sectors maybe. I would like to take up building first. On the building side, if you look at it, there are two types of buildings, one on the residential side, and on the commercial side. What we found was the decisions on probably the residential side have been pretty sluggish, whereas the commercial side has been pretty faster. That's where it's actually supporting us in terms of growth, in terms of orders. On data centers, I think it's very much important for every client who's coming into India for data centers, I think they want things faster. That's where we have an advantage of being able to supply faster from our side because we have the local facilities here, and that's what is supporting us in terms of growth in these sectors. Now, to cater to data centers and buildings, you need to have partners who have the ready-made availability of these content of materials. That's where the pickup from the distributors and the partner segment, the subsystem integrators as well, has been on a very high uptick during this particular quarter because decisions have been faster from both data centers and commercial buildings. That's where is the impact, and that's where we have been quite successful in terms of growth during this particular quarter. Thank you, Kiran. Operator, to the next person. Thank you, sir. Thank you, Parikshit. Thank you. Ladies and gentlemen, in order that the management is able to address questions from all participants in the queue, you are requested to please restrict yourselves to one question only. You may rejoin the queue if you have any further questions. Our next question is from the line of Atul Tiwari with JP Morgan. Please go ahead. Yeah. In this quarter frame, the parent company reported 81% order inflow growth, and you have reported 50%. Historically, we have seen that there is some difference, but not as large a difference as in this quarter. I think in previous quarters, you have presented slides also explaining the variation. Could you comment on where is this wide variation coming from in this quarter? I think in this quarter as well, in my commentary, I explained that we have given a slide on this. If you look at the presentation which has already been uploaded on the portal, there is separate slide which is talking about demand versus supply of how much of ABB Group orders and ABB India Limited book orders. This is more coming from Indian customers placing orders on ABB Group companies for systems which ABB India cannot provide or their convenience per se. That's basically where you have a gap. That's the situation where what we have, because of which we have 80% growth as shown by the group, whereas we are talking of 50% growth. Okay. Sir, of this 50% growth, how much is volume led and how much is price led? Any comment on that? We normally don't look at it from that volume and price led because it's all embedded in the offerings, what we do, because we have a mix of products, projects and services. It's not an— Volume. If you look at it will be mostly volume, right? Because price, of course, has a lag as what Kiran was alluding to. I think it is mostly volume, and that is where we get the leverage from. Okay, thanks. Thank you. Our next question is from the line of Amit Mahawar with UBS. Please go ahead. Sridhar, hi. I just have two quick questions, sir. First is it right to say that the base orders, I know you have not differentiated them base and large, but it is after the gap of almost one and a half year that the base order growth is almost more than 20% clearly, which has not been the case in last one and a half year. Bulk of this is value growth in pricing. When you talk to the channel partners, there is a very strong impact on June quarter onwards of the pricing, and volume is yet to play out. That is my first question, sir. Kiran, would you like to try to take this question? Yes, Sridhar. Yes. Amit, right? Yeah. What we are seeing is, as Sridhar said, we do not differentiate, of course, one do not want to differentiate between base orders or the large orders. I was also speaking to you on various segments of the market which is actually supporting us in terms of growth. The partners are able to get the pull from the market, and they are seeing a lot of very quick decisions being taken by the customers there. They are very excited to place a stock order as well and also cater to the requirements of these customers. That's where the order growth has been happening. Okay. Sridhar, second question is on the CapEx. We are expanding capacity. We are spending a good number to prepare ourselves for the upcoming high growth in some specific segments, including data centers and renewable power. What kind of top line can this $ 75 million-$80 million CapEx handle in the next two to three years? If you can give the quality of the top line also. Thank you. Okay. I think we don't measure with respect to top line. Actually what we want to ensure is that every year when we look at the future demand, we want to make sure that we have at least 15% of our headroom to cater for the future demand. That means at any moment of time, our capacity utilization hovers between, say, 80%-85% or 90% is the maximum, right? Every year we could see that there is for an incremental growth of 10%, 15% to create a headroom, right? We always plan for that ahead, right? This CapEx, what we are doing at this point of time and every year, will help us maintain that momentum of 15%-20% headroom of increase in sales which we could cater. Yes. If you ask me, are you only looking at that or you want to do a big scale investment to look at in five-year to 10-year horizon per se, I think that's a very big topic to handle at this point of time given the uncertainties we have as we see, Amit. Can I ask a small one, a last one? Yep. The gap. I understand the gap. A lot of orders are going from Indian customers to the parent entity. I'm sure the division heads who travel to India from the head office also note a very significant demand in India. How should we see this for the listed entity in terms of Because you have a huge cash balance. M&As are not easy happening from the local country. Any color on this and the importance of the factory set up in India for the parent? The gap is widening is a good news for the parent, but the stakeholders of the ListCo will also want to understand maybe how should we see this for the preparedness or the mandates are possible for India. Thank you. Okay. Amit, I think, the variation which you see today, which was one-off, okay? The reasons for that were basically because one-off an orders globally was actually diverted to a local Indian customer and therefore of an already executing backlog was novated to an Indian customer and who in place had to place to an order to a global company. That's basically to manage execution of an order which was ongoing, right? That's number one. Number two was more from a sector of marine and ports where we don't have the system in this particular country at this point of time or the competency. For that, the main systems and the references, because Global and the other companies in the European ABB units have that particular experience. They get the main order. We are associated with the support and the sales and service and installation of that in India, right? Typically this is a journey. Whenever we want to bring a large system order, the main system gets executed by the global parent. I think this also would have seen in Power Grids orders of HVDC where you have a preferred first and then afterwards Indian entity gains the competence. It's the same. The journey on marine and ports has started in this way. Probably going forward we will do that. The two things to your question. First thing, this is just in one time what you see. The previous quarters and all, we didn't have so much of variations to the differences between Indian and the Global, and there are reasons which I have already explained. I think as Kiran, Ganesh, and everyone are saying, our focus is on India and 90% of business comes from India, I don't think we will lose any scope on that. Very clear. Thanks, Sridhar. Good luck. Thank you. Thank you. Participants in the queue, you are requested to please restrict yourselves to one question only. Our next question is from the line of Bhavin Vithlani with SBI Mutual Fund. Please go ahead. Yeah. Congratulations, Sridhar and team, exemplary performance on the orders. My question is the kind of strong growth we are seeing in orders, could you talk about, have we seen an expansion in the market share for ABB if you could talk about Electrification and the Motion segment individually? The other question that I would like to ask is the pressure that we are seeing from your peer set is especially on the railway side. Within the Motion, if you could maybe talk about segregating railways and the other part of the Motion. Are the margin performance very different than the margin of the pressure that you're seeing is a good part coming from the railways? These are my questions. Thank you, Bhavin. I think this is a very difficult question for me to answer, so I would request Sanjeev to come in because Sanjeev is here listening to me and preparing me so that he would answer this question for me. Yeah, over to you, Sanjeev. I think with respect to the question is about Motion, right? Of course, the railways and the traction. I think what we have is we have long-term contracts with railway exposure, and those are not difficult. I think there's only a time element of execution based on the configuration being changed with by the railway. I think the predictability of revenues is there in front of us, and also the price predictability is also there for us including the surveys that we will deliver to them alongside the delivery. We don't see any specific pressure at this point in time. On the metro which is the type of a business from the same segment, we see good traction, and I think there's a good expansion going on. There are certain OEMs and the kind of players in the market wherein we work closely, and they are succeeding in the marketplace. Accordingly, we are getting that effect. As such, we don't have any impact in our overall books and around the railway and metro side. That's what says. [inaudible] basically Sanjeev. Bhavin, can you repeat the question you said for the other one which you had? The first question was on the market share, the kind of strong growth that we are seeing in orders. Have you seen expansion in the market share, or is it the market growth that you are seeing at such strong levels? Yeah, the market digested whatever the previous year's growth was, and now it's normalizing again. I would say these growth rates that we see, it comes in a spurt after the lull in the market, and then it will normalize to a kind of a level that we like. That's how our capacities as well as our expectations are built in. I would say that yes, markets are coming back. There are certain concerns in certain customers and certain market segments. Most of the market segments we are exposed to, we are seeing quite a good traction at this point of time. Yeah, sure. Thank you so much. Thank you. Thank you. Our next question is from the line of Mohit Pandey with Citi. Please go ahead. Yeah, thank you, sir. Sir, if I look at the absolute order inflow for Electrification and Motion 1Q to 2Q it seems to be flattish to down on a quarter-to-quarter basis. If I understand correctly, we have taken price hikes. Is there an underlying volume sluggishness on a quarter-to-quarter basis, or is this interpretation wrong here? It's not a good interpretation. I think if you look at sequentially, you get INR 2,400 crore in Q1 and INR 2,400 crore a similar number in Q2. The good part is that the data centers which are helping us are continuing to give orders every time, either directly or indirectly through channel partners. I think that's basically what it is coupled with the pricing which is always happening as a part of the market reaction. I think this is what it is Mohit. Understood, sir. Sir, is the QCO impact completely behind us now here? QCO impact, I think there are two veterans on the call, Kiran and Ganesh. They have to deal with QCO day in and day out. I think getting a firsthand real-time input from them would be valuable. Kiran and Ganesh. We can start with Ganesh first. Actually, QCO because we also got used to now what is the requirement which came from the government because earlier there was something which was not very clear. We as well as our suppliers were struggling to meet those requirements. That clarity is also now in place. There is some of the relaxation which is coming from the government on some of the components and equipment where they have postponed it and given extended time for us to meet those requirements. At this moment I will not say it is completely behind, but it is definitely relaxed, and we got an extension of time and we also learned how to meet those type of requirements. That's what— Thank you, Ganesh. Kiran, from the product side of it Thanks, Mohit. I think it's a very important question as well on the QCO side. I remember last year, Sridhar, you and me were answering on, and Sanjeev was answering on QCO last year a lot on what was happening and where was the lag. I think we are well versed in terms of QCO now. Probably we will get some more details as well on QCO. I think QCO is not behind us, but at the same time, I think it's supporting our business growth as well. We are well-aligned in terms of the government requirements of QCO. The testings are in progress, some of them already. More or less everything has been completed as per the guidelines of the government. I think it is something which will keep on moving. With the local supplier base, with the local factories, I think localization plays a very important role, and that's where we have been extremely successful in ensuring that we meet the requirements of QCO. Understood. Thank you so much. Thank you. [inaudible] Yes, thank you. Thank you, Mohit. Thank you. Our next question comes from the line of Sumanta Khan with Edelweiss Mutual Fund. Please go ahead. Hi. Good evening. Congratulations on a good set of numbers in a very tough macro. Can you give me a sense of your roughly INR 11,900 crore order book that you have? Some sense, what portion of this is billable over one year. Over one year, I could tell you. Yeah. I think longer duration and efficient cycle, and what percentage would be like shorter cycle? Yeah. I think, so over the INR 11,900 crore, whatever we have, we will consume at least 40% in the next two quarters revenues what we need to have. Plus, we will have [inaudible] to meet the revenue commitments with the customers, right? The balance will go to the next four quarters of 2027. Okay. Thank you. Thank you. That helps a lot. Yeah. Thank you. The next question is from the line of Mohit Kumar with ICICI Securities. Please go ahead. Hi. Good evening, sir. Thanks for the opportunity, good to see very, very good order inflow in the quarter. My first question is, how has the inquiry pipeline from the data center segment developing? Especially, I'm talking about the pipeline improving over the last six months, given the lot of projects that we announced. The related question is that, is there a need to invest in any new products or investment to improve our TAM to serve these hyperscalers? Yeah. Okay. I will request again, Ganesh and Kiran to throw the light. Ganesh deals heavily with data centers, followed by Kiran. Ganesh, over to you. Yeah, sure. Mohit, this is actually a very interesting question, I fully agree with you. Quite a lot announcement and very, very strong pipeline from the data center, which we are really seeing it. To meet those requirements, there are definitely certain particular components are required, particular type of breakers. We are investing quite heavily in increasing our capacity because we are definitely seeing that the picking up which will come, the demand will make multifold in the coming quarters, and maybe like 2027, 2028, we will be struggling to meet those demand. Looking into that, we are already started investing into increasing our capacity for that particular product which are required in the data center. You're absolutely right. Thank you. Thank you, Ganesh. Kiran, would you like to throw some light on products for colo business? Yes. Mohit, I think Ganesh spoke probably from the hyperscale side. Let me talk to you on the probably colo side. On the colo side as well, the demand has been quite substantial. We see a very good pipeline of orders being concluded and also concluded pretty fast as well. This requires, because there are a lot of changes in configurations from the clients, we are looking at what could be done in terms of their footprint, what is required, what kind of specifications are required. We are working on that. If you remember, we had also launched a factory in the first quarter, which is the second factory in Nelamangala. That is what we were talking about in the slide as well, that there is a new location for us for some new product which we have launched for the data center requirement. We continue to invest, we continue to localize, and we will continue to develop new products that are required for data centers. Understood. Thank you. Thank you very much. I think this could be the last question we have taken. We are very mindful of the time and the Friday evening for all of you. Thank you very much for really taking this effort to join us. I hope the people for whose questions we could not take, but your questions could be answered, or the questions you asked partly could be answered. You can always reach out to ABB team in case you have any specific queries. With this, we would like to wish you a very good weekend. Thank you very much. Thank you very much. Looking forward, in fact, to see you on the next call. Thank you. Thank you, Kiran. Thank you, Ganesh and Balaji. Thank you. Thank you very much. Thank you. Bye-bye. Thank you. On behalf of ABB India Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your line.