Ladies and gentlemen, good day and welcome to the Bharat Electronics Limited Q2 FY 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 call, please signal an operator by pressing star, then zero, on a touch-tone phone. I now hand the conference over to Mr. Vikash Singh from ICICI Securities. Thank you, and over to you, sir. Good evening, everyone. On behalf of ICICI Securities, I welcome you all on Bharat Electronics Q2 FY 2026 result conference call. I would like to thank the management for giving us the opportunity to host them. From the management side, we have with us Mr. Manoj Jain, Chairman and Managing Director, Mr. Damodar Bhattad S., Director of Finance and CFO, and his team. Without taking any much time, I hand it over to [Manojji] for his opening remark. Over to you, sir. Thank you. Good afternoon, everybody. Here is the financial highlight for H1, meaning up to Q2 for financial year 2025-2026. This H1 we have achieved revenue from operation. We have increased it to INR 10,180 crore, as compared to INR 8,782 crore up to Q2 of last year, with a growth of 15.92%. Profit before tax has increased to INR 3,023 crore up to Q2 of this year, as compared to the comparable period of last year, INR 2,488 crore, with a growth of 21.51%. Profit after tax has increased to INR 2,255 crore up to Q2, as compared to INR 1,867 crore up to Q2 of last year, with a growth of 20.77%. EBITDA has increased to 30.15%, as compared to 27.26% up to Q2 last year. Earnings per share has increased to INR 3.09 up to Q2 of 2025-2026, as compared to INR 2.55 up to Q2 of last year. The order book position as of 1st October 2025 is INR 74,453 crore, and as of today, it has become INR 75,600 crore. Orders acquired till 1st October 2025 in this financial year is INR 12,539 crore, and till today it is INR 14,750 crore. Overall, across all financial parameters, we have registered good growth, and the company is having plans to sustain whatever guidance we had given at the year beginning. That is the brief financial highlight of H1 2025-2026. Hello. Our highlights are over. We can start questions and interactions. Thank you very much. We will now begin with 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 use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dipen from PhillipCapital. Please go ahead. Hi. Thank you for the opportunity and congratulations on a great set of numbers. My first question is on your order book side, sir. Can you tell us, right now we are having an EBITDA margin of close to around 28%- 29%. What kind of execution are we focusing on that the EBITDA margin continues to remain high, and do we expect it to sustain on the similar levels going ahead as well? Certainly. Although product mix for H1 and product mix for H2 is more or less similar, and as we told earlier, although product mix has more than 350 main equipments, and sub-equipment and line items are more than 1,000+, we are totally diversified in different functional areas of defense electronics. Because of this product mix, for us, we are feeling H1 and H2 may not have too much changes. EBITDA margins will remain more or less similar, and what guidance we have given, more than 27% EBITDA, we are confident to achieve by the year end. Got it, sir. My second question is on the line of, sir, what are the, currently the emergency procurement orders are expected, as well as some large product value items are also expected in the second half. Can you give us an idea as to what all orders are in the advanced stages of finalization, which we can expect in the second half? Certainly. As we told last quarter also that we were expecting a good number of emergency procurement orders. We have received already some 11 orders, emergency procurement orders worth around INR 1,350 crore, and around INR 2,000 crore worth of emergency procurement orders are in pipeline where PMCs are concluded, and we are expecting it mostly by next 2 weeks. We will get. This is about the emergency procurement order. Our other main orders, which are in pipeline, we have told QRSAM. We are hopeful, fully confident that before March, we may get QRSAM order. We have already submitted our RFP response, etc., so cost audit and other activities as per the procedure is going on, and we are confident of achieving that by March. In addition to QRSAM, the Shatrughat, Samaghat projects, the NGC-related Next Generation Corvette-related subsystems orders from shipyards, additional LCA 97-number order from HAL for our avionics packages, Shakti, GBMES, Mountain Radar, [HAMMER] like that, these all orders, big orders are in pipeline, which will definitely make our overall score, what we committed to you, INR 27,000 crore. We are confident we will definitely achieve more than INR 27,000 crore order receive in this financial year other than QRSAM. Got it, sir. Last question, sir. Right now in your order book, the large contract top 10 or top 12 projects contribute how much of your current order book? Mainly LRSAM fuses, Akash missile system, etc.? How much of the order book is pending of these orders, or what is your question? Yes, yes. Pending order book. The order book is on INR 11,025 crore, 1st October 2025. LRSAM is around INR 5,000 crore. Electronic fuses are around INR 4,500 crore. BMP-2 upgrade is INR 3,000 crore. Akash army INR 2,700 crore. All this put together, top seven orders we have got the list right now, it comes to around INR 25,000 crore. Top seven orders constitute INR 25,000 crore. Of the 1st October order, around INR 24,000 crore. Got it, sir. Thank you so much for answering my questions, and all the best for the second half. Okay. Thank you. Thank you. The next question is from the line of Amit Dixit from GS. Please go ahead. Yeah. Good evening, everyone, and thanks for the opportunity. Congratulations for a good set of numbers. A couple of questions from my side. The first one is on Project Kusha or Sudarshan Chakra, where we are on the project, actually, where is the development going, and when can we expect some kind of order from this particular project? Mr. Dixit, can you please be a little louder? Yeah. I could read. No issue. Voice was sufficient to reach our ears. I will just briefly tell you, the Kusha program is a DRDO program, as told earlier also to you, and we are the development partner for DRDO for major subsystems of the Kusha program, mainly related to radar and control. These radar and control systems, there are some three types of radars and two types of control and communication centers, then launchers, support vehicles, etc. These radar-related prototype development we are doing right now jointly with the LRD, who is the DRDO partner from the radar point of view. The overall program is handled by DRDL. With DRDL, we are discussing control center and communication system-related modules. These five major modules of this program are under the prototype development stage right now. It will be followed by system integration, and then only trials, integrated trials, will be planned by DRDO, where BEL will give good support to them. I feel these are all trials, etc., after the prototype development, which will take—prototype development itself will take another one more year for us, and then integration, testing, trials, and then afterwards it goes into the so-called production phase, I should say. We are expecting order by December 2029, the first production order for us, because right now it is that way, it is a prototype developmental order, which we have received. From prototype development order to the real big production order worth, hopefully more than the QRSAM order we are expecting, but that we are expecting by December 2029 timeframe. That's very helpful, sir. The second question is on actually the recent AON that was issued of around INR 79,000 crore. There were various platforms, etc., over there as well as some electronic systems. Just wanted to get an idea that what could be the approximate share for BEL in that INR 79,000 crore? Because it is at AON stage itself only, it has not become RFPs. RFPs also are going, some of the RFPs we will receive directly, like GBMES project RFP, we are receiving directly, we are going to receive. Other RFP will be received by other system integrator, and we will get electronic share of that. As such, we cannot give you quantified figure, but out of this AON, three to four main leads or main products of BEL will be there in that. We can expect of the order of INR 10,000 crore worth of items, we may get orders, but the order may not come directly from user. It may come from system integrator also. Of the order of this tune, I hope we will get one or two only will be direct orders, but remaining will be indirect orders to us. Okay, sir. That's very helpful. Thank you so much and all the best. Thank you. Thank you. I request each participant to ask two questions only, as there are many participants left in the queue. The next question is from the line of Umesh Raut from Nomura. Please go ahead. Hello, sir. Good evening. Congratulations for a very good set of numbers. My first question is pertaining to order inflow guidance of INR 27,000 crore excluding QRSAM for FY 2026. In that order inflow guidance, are we assuming any orders from Next Generation Corvette or from avionics packages related to recent ordering for Light Combat Aircraft? Certainly, yes. As I told, in this NGC partial orders, because overall NGC has so many BEL components, but some of the components orders we are expecting around INR 4,500 crore worth of orders this financial year we are expecting from NGC overall program. The remaining orders may be worth around INR 8,000- INR 10,000 crore worth, we may get in the next year only because configuration and other finalizations are going on for that. The nitty-gritty is being worked out for those subsystems still. For LCA, we are expecting in another 1, 1.5 months, hopefully we will get from HAL this order for avionics package for all the items for this 97 aircraft order. That may be around INR 2,500 crore plus minus something. Understood, sir. Sir, my second question is on AMCA program. Now that you have a collaboration with L&T in terms of participating in RFI, I just want to understand how your scope would be different than the program like LCA or, say, helicopter programs, what kind of supply you do right now to HAL. How would the scope be kind of different in case of AMCA? Can we assume relatively far higher share in terms of addressable market if you get AMCA contract in terms of, say, development program? Yeah. Certainly, that is our calculated strategic move from only supplying electronics for helicopter for LCA type of program. Can we go higher level integration or higher level value addition in airborne platforms? AMCA we found as first big opportunity, and that's why we tied up with L&T. As a consortium, we have already given RFI response for that, and we are hopeful to qualify and further may get orders also. Definitely, we are aiming for that. There, our role will be not only supplying this avionics or electronics portion, but system integration, aircraft integration, testing, validation, and that type of a role, which is as a platform, aircraft as a platform. That role we wanted to increase our role in that type of a program. For AMCA or UAV type of programs, we wanted to have our value addition increase from our traditional electronic modules to systems level contribution. Understood. If in a scenario, suppose other consortia get that contract, do you think you can supply avionics packages or other packages to those consortia in the AMCA program? Definitely, yes, because this program is driven by DRDO. ADA is the lead agency for that. For last 20+ or 30+ years of association with them at R&D level, we are developing many modules or many subsystems related to electronics for ADA. These subsystems will be taken by all consortia. Whosoever wins this program, these modules order has to come through BEL only because we have proven capability for that, and we have already developed or developing these prototypes jointly with ADA and ADE. These modules share anyway will be there with us. As I told, we wanted to go up the value chain by providing system level solution also or system integration related expertise also we wanted to develop in this critical segment. That's why we have done this consortium-based approach of bidding also. Understood, sir. Thank you so much and all the very best. I'll join back the queue. Thank you. The next question is from the line of Mohit Pandey from Citig roup. Please go ahead. Good evening, sir, and thank you for the opportunity. Sir, first question would be on QRSAM. Once the order is received, what would be the execution timeline, sir? 3-4 years? Is that a fair assumption? No, it is a bit more because the program is very complex, first thing. Second thing, we wanted to do one more round of detailed evaluation. We call it first of production module trials or oblique evaluation. We wanted to do jointly with our user FOPM trials also. Because of that trial, to prove some more cutting-edge extra features, whether they are really matured for production phase or not, because earlier phase was a prototype phase. Prototype phase to production phase, when we go for bigger programs, we generally add FOPM stage. In this program also, there is an FOPM stage. Because of that, the overall program schedule will be around 5-6 years of total execution time for this program. Understood, sir. Okay. The second question was on the DAC approval. Apart from the INR 79,000 crore, there were other two approvals as well this year. Other two set of approvals. Is it possible to share what could be the size that BEL could be in play for from the other two as well? That totaled to around, I think, INR 1.4 lakh crore. INR 140,000 crore? Definitely, in that, the biggest program was QRSAM only, of course. Other than QRSAM, Shatrughat, Samaghat, and so many other projects were there, which were included in that, and so many other naval ship programs where the shipbuilders will backend give orders to us. Overall, out of all the three, if we include QRSAM also, it is definitely more than INR 50,000 crore worth of orders we are expecting for BEL. Understood, sir. Sir, last question would be on CapEx. In the media, there were reports that BEL may undertake CapEx in Andhra Pradesh around INR 1,400 crore, followed by another phase of CapEx there. Any comments on that, sir? What could this CapEx pertain to? Okay. Now, this has come in media also because we had a detailed discussion with Andhra Pradesh government, and we have given our commitment to them. Based on that, Andhra Pradesh government actually has given commitment on joint behalf, our and AP government behalf, to our Raksha Mantri sir also. That is the largest investment which we are doing, and we call it DSIC. This is Defense System Integration Complex, where we are mainly making the QRSAM program, which will be made out of that facility. In addition, there will be so many other activities, other strategic business units also, we are going to shift or going to operate from there, including these unmanned systems, missile systems, military radars. Those types of subsystems also will be manufactured there. In addition, the largest thing will be this QRSAM program, system integration, testing, validation, qualification, these all related infrastructure we are going to have there. That is around 920 acres of land, and with the investment of minimum INR 1,400 crore, which we have already committed. If required, we are not hesitant to invest further in case other programs, other complex, bigger programs like Kusha and others come in time, we are having good space there to do further investment if required. Just to add to what Chairman has said, this investment will happen over a period of 3-4 years. Right, right, right. Understood, sir. Thank you so much, and wish you all the best, yeah. Thank you. Thank you. The next question is from the line of Jyoti Gupta from Nirmal Bang. Please go ahead. Thank you, sir, for the opportunity. Great set of numbers. I have two questions. One is, I believe FY 2026 we should close our EBITDA margins with close to 28%+ because that's what I've assumed considering the kind of order book you have. Second, it's actually a two-way question. One is, the recent LCA Mark 1, which was delivered to Indian Air Force, was basically sort of rejected, saying that there were some spoilers in the avionics and the radar from Israel is possibly inadequate. Does that mean that we have, since we know that the first batch of our 41 LCA was supposed to have israeli-built EI ISR radars, now, do we stand to gain from this that we would now be integrating our ISR radars, which of course you are actually producing? Second is, what concerns are there in the avionics part for the LCA Mark 1, which led to this kind of discomfort within the Indian Air Force for LCA Mark 1? Okay. Hello? Yes, sir. Oh, it is clear. Okay. So EBITDA, as we are told at the beginning, we will definitely be around or more than 27%, and we are continuously working for that. By doing different type of cost optimization, indigenization, as last time also we told, we have continuously this type of activities for cost reduction, indigenization, and improving our operational efficiency. With that, we are confident we will definitely have more than 27%. Now, coming about LCA Mark 1A. LCA Mark 1A, as you know, program is steered by HAL, not by BEL. BEL is a very good strategic partner for HAL. In this, all the major avionics, all the basic avionics-related electronics, which is typically designed by ADA, ADE, and other DRDO labs. Of course, BEL also was part of design, and now BEL is the production agency for that. These items we are supplying for LCA, and we don't have any concern on these avionics parts. Because these avionics parts, full design information is available with BEL. Of course, software is jointly held by BEL and DRDO. Hardware and hardware obsolescence and everything is, again, spearheaded by BEL and BEL supported by DRDO. There is no concern about avionics. As we have indirectly or directly hinted, sensors, the radar and EW sensors, when the program started, they were of foreign origin. At that time, indigenous space-grade, airborne-grade sensors of this variety was not available. That was a joint call of DRDO and HAL to take that. BEL was mainly in the reviewing portion, if at all. BEL was not in the driving portion to select these. BEL is always in the developmental level support only, not the decision maker. The decision maker is typically the designer, original designer is DRDO, ADA, and a production agency, which is HAL. These two only have taken. The question actually pertains to them, what it is. As you have told, and as an electronics professional, we also know in general that, yeah, there were some issues, and still our indigenous radar and sensors are going through final stage of trials and evaluations. At the right time, a call will be taken by HAL management to replace this foreign source of sensor with the indigenous one. That is going to happen very soon. The final decision and final evaluation status of this indigenous sensor will be given by HAL, not by BEL. Yeah, that's why, because our indigenous radar is better than the Israeli-based L&T that we have been taking, sir. That's why I feel there's an opportunity, a huge opportunity for BEL, actually, in terms of the radars. No, definitely. It is BEL opportunity, but the decision of indigenous versus foreign will be taken jointly by DRDO and HAL. The day they will take, based on all the inputs, all evaluation reports, and all other things, definitely BEL will be beneficiary. I know. Yes. Absolutely. Perfect. That's an excellent answer. One more thing, sir, one last question, if I may ask. Do we see any opportunity with the resumption of India-China flights, specifically in terms of the superalloys and any special metals that we are looking from China? Does that, in any way, improve our situations and help any kind of strategic alliance in terms of movement of these rare earth metals? Again, we are not directly, as BEL, now, we are not directly dealing with rare earth metals or alloys and other things. Of course, with a program like AMCA, we have to migrate finally. Today, presently, we are mainly concentrating on defense electronic system subsystems and components. This particular thing is more applicable to HAL and MIDHANI as of today. Definitely, as time progresses, as we move closer to the total overall value addition of different subsystems for AMCA or other programs, we also will be concerned about that. On that day, I can appropriately answer your question. Today, please, this question is reserved to MIDHANI or HAL. Okay. Thank you so much, sir. That was very helpful. Thank you, and all the best. Thank you. I request each participant to ask two questions. The next question is from the line of Atul Tiwari from JPMorgan. Please go ahead. Yes, sir. Thank you a lot. My first question is on the potential for large order inflows beyond QRSAM. Once you get QRSAM by end of this year, the next one that we know of is Project Kusha, possibly by December 2029. Between these two large orders, are there any other large orders of similar size that can potentially come through? Definitely not INR 30,000 crore or INR 40,000 crore single order. As we told last time also, this INR 30,000 crore, INR 40,000 crore type of big order comes once in 4, 5 years only because it requires that much effort to make that type of large systems. Of course, INR 2,000 crore-INR 5,000 crore worth of various products or various orders are in pipeline for us for the next 2-3 years. Those will keep on coming. A big large program like Kusha or QRSAM, that type of a program, as of now, is not there in our roadmap. Without that big program also, definitely, we are going to have every year [INR 25,000 crore, INR 30,000 crore, INR 35,000 crore] worth of products or new orders, where individual order may be of the order of, you can assume, roughly INR 5,000 crore as individual orders. Okay. Great. My second question is on your interest in AMCA. Would it be possible to share some kind of color on what is expected from the winner here? In terms of the CapEx that you will have to do to create these facilities, the kind of technology risk that you are taking, any color on that? I mean, how much you will have to spend to build these facilities? Obviously, as of now, you don't have anything as far as system integration for fighter aircraft is concerned. this point, anyway, we also debated, discussed when we took this strategic call, when we have to invest, and how much we have to invest. Definitely, that is a question investors also will be worried about. Let me tell you, the AMCA program for the next few years, 6-8 years, is mainly still realizing five prototypes with the total support and handholding and driving by DRDO. It is DRDO and this consortium partner jointly will do, and they will use all the infrastructure which is created by DRDO for this purpose. As such, for the next few years, 5-8 years, we are not expecting big CapEx investment. Of course, for some module testing or some jigs-related infrastructure, which is definitely much less than the final CapEx infrastructure, maybe maximum INR 100 crore-INR 200 crore, is what we may have to do investments for jigs, etc., in the next 5-8 years. No big CapEx is planned as per the project plan, which is shared by ADA as part of the RFI. Although more clarity will come when they will evaluate all of us and then issue RFP. RFP will further quantify this aspect. As per RFI, which we have received and we have analyzed all of us, the CapEx is not expected. Large CapEx is not expected for completion of this first phase, which is this five aircraft realization prototype phase. When will the final winner be known, and when is the first prototype expected to be rolled out? No, the prototype already has been made in different forms and shapes by ADA. One is for RTS testing, one for some other purposes, etc., they have made. The first real prototype, based on all electronics and other subsystems as part of this program, ADA is, I think, planning in another 1, 1.5 years timeline, first prototype. Then improvisation of that, then second, then third, then fourth, then fifth. Total five prototypes will come out. Final timelines are actually decided by ADA. At the macro level, we know that. That is why this evaluation, right now, this RFI evaluation, I believe. Committees are constituted, and they are evaluating the proposals submitted by all of us. They have to decide when they will finish this activity. We are only hoping that another 3 months-4 months, by February, March, we may expect this qualification of the RFI phase will be over. These all are our expectations. Exact figures, either ADA can tell or that committee can tell. We are not party to that committee or not ADA. Great. Thanks a lot for your answer. Thanks. Okay. Thank you. The next question is from the line of Sumit Kishore from Axis Capital. Please go ahead. Good evening. My comments on the strong performance of Bharat Electronics is discussed. My first question is in relation to the execution cycle of the order backlog, which seems to have contracted. Your order backlog broadly has not grown over the past 18 months. Your revenue growth has persisted at mid-teen levels. This quarter was even better. How has the nature of the contracting backlog really changed? Is it simply better execution that you are doing? What has led to sort of a compression of the execution? That's the first question. The thing is, we have evaluated all the existing contracts which we have. At the year start itself, we sit together and then talk out our plans, how we can materialize within the PDC of that. Because these orders have a staggered delivery. Each order is not for 1 year. Some orders are 3 years, 4 years. In that, for this year, what is our commitment as per the contract? We have done total planning that, like whatsoever was to be supplied this March 2026, we have already put in our roadmap. Execution plans are in place. We are reviewing it periodically. We are confident that we will achieve, may not 100, but we are aiming for 100%, but we will be between 90%- 100%. Delivery on time, we are expecting right now. Over a period of time, we finally want to make it really 100% As you know, electronics market, there are associated challenges related to obsolescence, related to some other issues, related to component availability, especially. Because of that, some minor variation or minor surprises keeps happening for us. That should not affect maximum 5%-10% of our deliveries. So 5%-10% deliveries may overspill by a few months. As such, we have planned right now, all 100% of our committed timelines part of this execution order, we are going to achieve. Okay. You mentioned in an earlier reply that the product mix will be as favorable as it has been in H1 in H2. I mean, aside from QRSAM coming into your books, does the product mix really change in the next financial year? How should we be thinking about QRSAM revenue and margin booking profile as it gets executed over the next five, six years? Firstly, for next year, I don't see any product mix change per se. Because QRSAM next year, we will only make the prototype. This prototype is, again, a sellable prototype, I should say. That's why it is called the first of production model. I should not say prototype. It is a first of production model, and that first of production model will take minimum 12 months-18 months to realize because it is a very, very complex system. Next year, we are not expecting any turnover or business from the QRSAM program. Next to next year only, we may be able to sell it in case we successfully complete all the FOPM trials, etc. Over a period of time, QRSAM per se is also similar to our existing product mix only. We are not having a big difference between QRSAM and other programs. Our overall product mix may not change that much. Right now, although we are supplying so many types of radars, so many types of missile systems like Akash, Akash Prime, Akash Export, QRSAM will be one more feather in our cap only. As such, product mix may not change that much, and it may not affect our other margins, EBITDA margins, etc., that much, which is what we feel over a period of time. Over a period of time, overall product mix, overall diversification, overall other subsystems, etc., will make our product mix really wide enough to take care of different types of variations in one subsegment or segment. Very clear. For 12-18 months, you may not book very meaningful revenue in QRSAM contract after you receive it. Yeah, yeah. Because that is the FOPM realization time for us. Very clear. Just one final clarification. The first half of the fiscal, how is your working capital and receivables? I would like to rejoin the queue for a follow-up as there are many participants left in the queue. Sure. Thank you. Thank you. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. Thank you, sir. Thanks for the opportunity. My first question is on the eighth pay commission, where the terms of reference have been, I think, approved by the government. I just wanted to understand what is your assessment with respect to the quantum increase which you guys are expecting as and when this is implemented. Will it be higher or lower than the last pay commission? Any assessment on the eighth pay commission, and which financial year will start providing or seeing the impact of this? Let me again clarify. Last time also, I think somebody else asked the question. Eighth-pay commission is not for public sectors. It is not for us. It is for central government employees. For us, there will be a fourth PRC because last time, third PRC was there. That committee recommendation will be applicable from 01/01/2027. That PRC, again, government has not yet constituted that committee. Government will constitute a separate committee for PRC, fourth PRC. That will give the general guidelines for public sector employees. After they study, there will be a lot of flexibility for individual PSU to adapt. We are a business entity based on our business scenario, based on our past record, based on our profitability, based on our future growth. They are giving us a lot of flexibility to decide within the general framework. Our framework will be quite different from eighth-pay commission framework. As we have told, eighth-pay commission, what expectations are there, I feel a central government employee can better guess that than we public sector employees. Right. Sir, any quantum based on your framework, how much increase can happen? That is a wild guess. I think as PSU employees, we should not answer that. Generally, we don't analyze that also. For us, the quantum, our reference is 01/01/2027, and it is TRC. We have to only see based on third PRC to fourth PRC what more we may get. There, I can tell my wish is definitely what salaries we are getting on 01/01/2027. Maybe 10%- 15% higher salaries we are expecting minimum from that. As far as your question on financial flows are concerned, 2026-2027 will be only three months effect from January to March because it will be from January. From 2027-2028, yes, effect of pay revision will be there. The volume growth and quantum increase in turnover will take care of all these increases what are expected to happen. Sure. Sir, on QRSAM, which you highlighted that it will take 18 months. I understand that I think there are three regiments, and each regiment has some 72 missiles and launchers. How will the production stage be there after 18-24 months? Will it be like one regiment each 1.5, 2 years? Some understanding on that. What is the direct scope of work since the missiles also, launch vehicles also, and we are integrators, I believe? What percentages are direct scope of work in this INR 30,000 crore? Yeah. So firstly, as you told, delivery schedules anyway will be already quantified in the RFP which has come to us. Generally, it is kept strategically confidential. Of course, there are two phases, as I told. One is the FOPM phase, which will take 12-18 months to realize, and then some evaluation time, which may be three months to more than three months. I cannot exactly quantify. After that only, we will start the production. Based on the risk and business risk and strategic need, we generally start production-related activities for that phase also a bit ahead. Overall timelines will be around 5-6 years, as already told. This will have parallel production for Army and Air Force. As you know, the order is more or less 50/50, we can say, across Army and Air Force in this program. Production also will be parallel for both of them so that we can start equipping Army and Air Force parallelly. That is our plan. As you have told, yes, we are the main system integrator for this, and BDL is our main strategic partner for missiles. Other than BDL, there are three, four major stakeholders for us. They are providing some other subsystem, including launchers, TR modules, and other subsystems to us for integration. The major subsystems here are radars, so two types of radars are there and control centers. Those integration definitely will be done by us. Launchers, etc., our primary aim is basic integration only, but otherwise, they come. Already in the prototype phase, we have already taken care of and roles and responsibilities of BEL, BDL, and other stakeholders is already quantified. All of them are aware of. We had already done multiple rounds of sensitization meetings with all our important stakeholders. That is why we are fully geared up to realize FOPM. In FOPM also, all the stakeholders have to work together and for production phase. The sensitization to all the stakeholders already has happened. Delivery schedules, what is expected from them, etc., has been chalked out. We are confident that once we receive the order in a time-bound fashion, which is indicated in the order, we, along with our stakeholders, definitely will supply in time. Thank you, sir. Congratulations for the strong numbers. Thank you. Thank you. Thank you. The next question is from the line of Shirom Kapur from Jefferies. Please go ahead. Hi, sir. Thank you for the opportunity and congrats on a great set of results. I just want to ask about your exports. We know that that is a strategy for BEL as well. I just wanted to check specifically on our exposure to Myanmar and whether that's likely to remain well below 5% of overall revenues and it's not necessarily going to become material for the firm going ahead. Yeah. Exports, as we have told earlier also, is a slightly different ballgame because it requires different expertise. Total order realization has various other challenges, including like LC opening and other issues. We are right now targeted 3%-4% of our turnover through exports. We are confident over a period of time in the next 2-3 years, we are definitely going to have 5%. Our long-term vision is to increase it to 10% of our turnover coming from exports. Various activities are planned to increase our export portion from our overall turnover. We are confident with those activities and those initiatives which we have taken and we are going to take. We are confident that we will be in the right path to increase the percentage of our export turnover year-on-year and finally touch 10%. Today, we have a very good healthy order book also, around $326 million. U.S. million order book is there with us. We have very good leads also. We are confident that whatever path we have laid down for our continuous year-on-year export growth, we are on the right trajectory. We will keep giving you better and better results on the export fronts also. Got it, sir. Just strategically, when we do get to this, aiming for this 10% number, will a significant portion of that overall revenue, 5%, could there be that kind of exposure to Myanmar as well? Just wanted to get a sense of that. Look, the thing is, for us, each and every country which is of a strategic interest to us and who wants to take products from us based on the maturity of our products, we give equal priority to each and every such lead. Myanmar was also such a lead where we have supplied earlier some equipment. Even now, also, some discussions and other things are going on. Each and every country is important to us. It is nothing specific to one or second country for us. Each and every export lead, we take it very seriously. We go, present, discuss, quantify, and then see that our product goes and supports them for their initiatives. Noted, sir. If you could just help us with the execution for 2Q and 1H that has driven your 26% growth in 2Q and overall 16% growth in 1H, which major programs have contributed in terms of execution? For this coming total. Yeah. Major executed till now. Okay, okay, okay. This total up to Q2, major six to seven programs contributed. One of them, topmost always in the last few years, is the LRSAM program of Navy. Second was Hims hakti. Third was our battle surveillance system for Army. Fourth was Akash Army. Fifth was LCA Mark 1 LRUs, the avionics-related modules. Sixth was LINK U2 fire control system. Seventh was Shakti EW system. These seven systems were the major orders which we have executed, which was worth around INR 4,000 crore, roughly. Got it, sir. Thank you so much and all the best. Thank you. The next question is from the line of Harshit Patel from Equirus Securities. Please go ahead. Thank you very much for the opportunity, sir. Firstly, could you give us an update on the Archer UAV program and our roadmap? Mr. Patel, can you please be a little louder? We can't hear you properly. Hello, is this audible? Hello. Hello. Yeah, you can continue. Actually, voice is clearer to us to some extent more than the coordinator, but you continue. We are able to listen reasonably. Please continue, sir. Could you give us an update on the Archer UAV program and our role in that? What is the status of the program, various vendors, and the finance system integrator, project size, timelines, etc.? I am asking because recently, L&T has partnered with General Atomics to participate in the 87 MALE UAV program worth almost INR 30,000 crore. Will these two be the competing programs, or how it will play out? Okay. As you may be knowing, Archer program is driven by ADE. We are the nominated development company production partner for them. With that status and with that support, we have realized prototypes of Archer. I think the first successful trial of Archer UAV was conducted a few days back only, where it met all the parameters. Now we are in the process of refining it and seeing the market for it. Firstly, the prototype development has to be done, and then only you can market. Now prototype development phase more or less is over. Formally, it will be declared by ADE because we are only DCPP partner for them. Because we are DCPP partner, we know this much is the development done. A very good progress has already been done on the Archer UAV program. As you may be knowing, Archer is not this MALE variety. The MALE variety, what you have hinted about, L&T and GA association, that is a slightly different type of a program. Archer is much smaller and lower capacity UAV. Archer will not compete with this program. There is one more program, mostly announced by ADE, is Archer NG. Archer NG is a program. Definitely, we would like to have a good share in that program. We may lead also that program. We don't know as of now. That program is more or less competing with this MALE UAV program as per public information available with us from the ADE. That question, again, you have to ask from DRDO or ADE, what is Archer and what is Archer NG program? Based on our association, we are just sharing this input. That program definitely will compete with this L&T GA association. There are so many competing products for this MALE UAV, for which I think RFP also is issued now, or going to issue, actually. They have indicated RFP will be issued mostly next week. In that RFP, we are also going to bid. That much only I can tell you. For that, we have to do so much of a strategic alignment, seeing, analyzing what is our strength, what is our other consortium partner strength, whether we should go for consortium or not. Those all things you will come to know maybe another 3 months timeline. I can assure you, definitely, once we have decided that we are entering into this AMCA or MALE UAV program in a big way, definitely, we will put all our efforts to see that we provide a right solution for this program also. Understood, sir. Secondly, can you very broadly bifurcate your current order book of approximately INR 74,000 crore among land-based systems, naval systems, and airborne systems? Also, if you can give a sense on competition in each of these three domains where the competitive landscape is intensifying, where are the areas where we can further garner some more market share? Also, areas where the indigenization is lagging vis-à-vis the other areas. This flavor will be very helpful, sir. Let me tell you, we are more or less equally distributed across Army, Navy, and Air Force, whether it is our product segment or our order book. We are equally spread across all the three segments. We treat all the three segments more or less with similar eyes because basic defense electronics component systems and subsystems are more or less similar expertise. Although evaluation or certification criteria are different for all the three, in that way, only like indigenization score also on land system is fastest, naval system is second, and then airborne system, it takes a bit more time to indigenize. Each segment has its own small challenges, etc. Overall, for us, all the three segments, we are equally geared up. We have different SBUs focusing on these segments. Like our naval-related segments, there are five or six SBUs specialized for handling naval customers. Same is for our Army customers. Some of the SBUs are specialized for that. For airborne also, we have two or three specific SBUs more focused on Air Force as a customer. As such, we give almost equal priority to all the three very important customers for us. That is the uniqueness of Bharat Electronics Limited also, that because we know Army, Navy, Air Force, that's why the interoperability across them or this theater command type of program where integration or jointness across all the three are required, or large C4I programs where expertise of all the three domains is very much essential, we are definitely a natural leader for that segment. In that way only, we had decided maybe 20 years or 30 years back that we should give equal opportunity, equal strength, and equal resources for all the three segments because each segment is unique, but each segment has many commonalities as we see from our side. Understood, sir. That is very useful, sir. Thank you very much and all the best for the future. Thank you. The next question is from the line of Hardik Rawat from IIFL Capital. Please go ahead. Thanks for the opportunity. Congratulations on a good set of numbers. Extending on previous participants' question, what are projects that we expect to execute in the second half of this current fiscal year? I gather that you mentioned the projects that we have executed, but what are the large projects that we are expecting to execute in the second half? Hello? Hello? Hello, sir. Are you there? Yeah, can you hear me? I was on mute. I heard your question. For the next half, we have seven main programs which are there. LRSAM is topping the list, followed by Himshakti, then Akash Army, then Arudhra MPR Radar, then D-29 EW system, then LRUs, avionics, LRUs for LCA Mark 1A, and electronic fuses. These are the top seven big projects which we are going to execute in H2. Got it, sir. Sir, historically, for the naval platforms that have gotten ordered, typically, our share has been around, in terms of the electronic subsystems that go into it, anywhere around 20%-25% of the overall cost. Do we see a similar order inflow coming in from the recently announced landing platform docks or the amphib assault vehicles that the AON was recently granted for? No. Let me tell you frankly, because the naval corvettes or other type of strike ships, etc., and these docking platforms, there is a small difference in configuration. Large, complex, strategic electronic modules or systems in that will be much less. As such, there are so many other programs in pipeline where our share will be more. For this program, our electronic module share will be less. Got it. That's really helpful. One last clarification was with regards to what you said earlier. Could you please confirm whether I think you said that in the AONs that were announced, the last three AONs, which totaled roughly INR 1.7 trillion for the previous ones, previous two ones, and the one that was quite recently announced, the INR 79,000 crore one, are addressable or the potential order inflows that could come to us would be around INR 50,000 crore, INR 40,000 crore from the previous two ones and INR 10,000 crore from the recent one. Would that be correct? Yeah, yeah. Certainly. That is correct. What is the QR? Including QR7. Including QR7. Yeah, yeah. Lastly, the expected size of the GBMES project that was quite recently announced, what do you expect the size to be in terms of the fee value? If I'm not wrong, it is INR 1,500 to INR 2,000 crore, roughly. Got it. That's really helpful. Thank you so much. Yeah. Okay. Thank you. We will take that as a last question for today. I now hand the conference over to the management for closing comments. As we told and the way we have progressed through Q1 and, of course, through Q2, we are confident that whatsoever guidance which we had given at the year's start, we are on the right track to meet those guidance. I will again reiterate our commitment that our revenue growth, we are going to have 15%+. EBITDA margin, definitely 27%. Order inflow, as we committed, other than QRSAM, INR 27,000 crore. Including QRSAM, it will be around INR 57,000 crore. R&D investment, more than INR 1,600 crore. CapEx, more than INR 1,000 crore, with a defense and non-defense business ratio of 90 to 10, which is our typical ratio. This guidance, definitely, we are going to achieve. That is our final comment for today. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you all.