Ladies and gentlemen, good morning and welcome to Cummins India Limited Q4 and FY 2025/2026 earnings conference call. We hope you all are keeping safe and healthy. 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 your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Shveta Arya, Managing Director, Cummins India Limited. Thank you, and over to you, Ms. Arya. Thank you. Good morning, ladies and gentlemen. I am Shveta Arya, Managing Director of Cummins India Limited. I hope all is well with you. Soma Ghosh, CFO of Cummins India Limited, joins me on the call. Thank you all for joining us today. I would like to share the financial results of quarter four FY 2026 and year end March 31st, 2026 through this call. For the year ended March 31st, 2026, with respect to last year, our sales at INR 11,950 crores are higher by 18%, compared to INR 10,166 crores recorded in the last year. Domestic sales at INR 9,961 crores are higher by 19%. Exports at INR 1,989 crores are higher by 12%. Profit before tax, before exceptional items at INR 3,104 crores is higher by 24% compared to the last year. Profit before tax after exceptional items at INR 3,054 crores is higher by 22% compared to the last year. Let me give you the segment-wise breakups for the year ended March 31st, 2026. For the domestic business, power generation domestic sales at INR 4,758 crore are higher by 24% compared to last year. Distribution business sales at INR 3,278 crore are higher by 22% compared to last year. Industrial domestic business sales at INR 1,650 crore are marginally lower by 1% compared to last year. For exports, high horsepower exports at INR 984 crore are higher by 20% compared to last year. Low horsepower exports at INR 807 crore are higher by 3% compared to last year. Now for the quarter ended March 31st, 2026 with respect to the same quarter last year. Our sales at INR 2,963 crore are higher by 23% compared to INR 2,414 crore in the same quarter last year. Domestic sales at INR 2,513 crore are higher by 30%. Exports at INR 450 crore are slightly lower by 6%. Profit before tax, before exceptional items at INR 820 crores is higher by 20%. Profit before tax after exceptional items at INR 852 crores is higher by 25%. For the quarter ended March 31st, 2026 with respect to the last quarter, our sales at INR 2,963 crores are broadly stable, though marginally lower by 1% compared to INR 3,006 crores recorded in the last quarter. Domestic sales at INR 2,513 crores are lower by 1%. Exports at INR 450 crores are lower by 5%. Profit before tax, before exceptional items at INR 820 crores is higher by 14%. Profit before tax after exceptional items at INR 852 crores is higher by 44%. The sales breakup segment wise for the quarter ended March 31st, 2026. Power generation domestic sales are at INR 1,294 crores, which is a 48% increase over last year and 21% increase over last quarter. Distribution business sales at INR 766 crore, 21% increase over last year and 18% decrease over last quarter. Industrial domestic business sales at INR 381 crore, 1% increase over last year and 18% decrease over last quarter. Exports, high horsepower exports at INR 217 crore, 1% decrease over last year and 7% decrease over last quarter. Low horsepower exports at INR 127 crore, 18% decrease over last year and 5% decrease over last quarter. The company expects moderate growth across segments in the financial year 2026/2027. With stable domestic demand, we remain cautious and continue to closely monitor the potential impact of ongoing geopolitical developments on the broader economy. I now open the session for questions. Thank you. Thank you very much. We'll now begin the question and answer session. Each participant is requested to limit himself or herself to a maximum of two questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Hi, Shveta. Congratulations on a great quarter and the year. My first question is on the FIC, the business over the last few quarters. We have seen incremental growth coming from data centers, both from colo and hyperscalers. Also after the transition of CPCB IV+, we have seen aftertreatment products gaining momentum. My question is, as we move to services on the distribution side of CPCB IV+ engines, and also on the data center hyperscaler scaling up, our related party transactions may significantly go up because we are sourcing this from CTIPL or through imports. In light of this, how do you think about localization? How do you think about margins? Because if higher growth comes from these segments, it could be potentially margin dilutive to the overall company. That's my first question. Thanks, Parikshit, for the question. As you rightly pointed out, there's data center growth as well as growth in the CPCB IV+ segments in power generation. While we do have products that we buy from our related parties, localization content for us, for both the products that go in the data centers and the ones that go in CPCB IV+, the localization content is already very high. We are only importing some of those parts which largely don't have very significant supply chains in India. The most significant components are all localized in India. That is not a challenge for us. The content that we put beyond what we buy from the related parties, as a percentage, is also very high. We do not see these impacting our margins as much. They have not. In fact, in the last few quarters, you have already seen how our growth has been and how our margins have been. These transactions have not impacted our margins dramatically. In particular, I was talking about QSK60, which is done by CTIPL, and then QSK95, which we import. Since we are expecting huge pickup in data centers over the next three, four years, and already data center contributes 25% to the power gen overall revenues, and if it grows much faster than the non-data center business. Don't you think over the next three to four years, this could actually start diluting it? Maybe right now not meaningful contribution to revenues, but then if it increases, then it will start hurting us. The way we look at it, you're right. Yes, the 95 L is imported, but the India market is still largely on the 60 liter. As the market moves, we always evaluate what is it that we can do more in India. Going forward, the way we look at it and our outlook is that we continuously evaluate what more can we do in India so that we keep our margins intact or growing. Okay. Thank you. Parikshit, I request you to come back for a follow-up question. Next question is from the line of Atul Tiwari from JP Morgan. Please go ahead. Yeah, ma'am. Ma'am, my first question is on the data center revenue contribution. What was the proportion in FY 2026 full year and Q4? Data center business contribution. For the full year, the data center business would have contributed between 30%-35% of our overall power generation domestic revenue. For the quarter, approximately 35%. Okay, ma'am. Ma'am, in your opening remark, you said that this year you expect moderate growth across product segments. What would be moderate? It is low double digit, mid-teens, high single digit? How should we think about that adjective, moderate? Two ways to think about this, Atul. From a demand perspective, for our segments, power generation, industrial, distribution, across our segments, for now, we are seeing robust demand from the domestic market. Exports, I have always been mentioning that it is difficult to completely put our fingers down on the export demand given the geopolitical situation. From a domestic demand perspective, for now, we still see robust demand. We are watching what's happening largely to the economy as everybody else is in the country. Commodity prices are increasing, inflation is likely to hit. We are watching all of that, and that is why that brings in a little bit of caution, despite the fact that our demand inquiries and order books are robust today. The second way to think about this is that we have been facing quite a few supply constraints, and not just us. The industry has been facing quite a few supply constraints. We are all facing labor shortage issues at our supplier ends. Commodity price increase has hit our suppliers. Fuel cost increases have hit our suppliers. Of course, the ongoing war, which delays movement, has also impacted. That is another way to think about it, that there is a little bit of caution while the demand seems robust for now. Okay, ma'am. Thank you. Thanks a lot. Very clear. Thank you. Next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead. Yeah. Good morning, and thanks for the opportunity. My first question, can you help us with the inquiry pipeline of data center compared to the last year? Are we seeing hyperscaler inquiry building up? Inquiry pipeline right now, after October last year, has picked up in India. Both hyperscalers, more than that colo players. The inquiry velocity has definitely increased quite a lot since October last year, and we continue to see that, Mohit. Understood. My second question, ma'am, industrial was weak for the quarter and the fiscal. Are we seeing signs of revival in the demand across your various segments? Can you please comment on that? Yes, I will do that. From an industrial segment perspective, last quarter, you might probably didn't see the railway coming in as much for us. This quarter, railway has performed very well, and we continue to see robust demand on the railway side. That is the segment where we have good order board, and it continues to be so. Mining for the last two years, we were not seeing good tenders coming in. The order velocity and the tender velocity was lower. In the last six months, mining has picked up, our order book has started building up. Compressor segment will now undergo its low cycle as it always does after a few years. That may not see the kind of robust demand that we have seen in the last year or so. Construction, largely stable road construction. We all know the amount of road construction that was happening two years ago is moderate. We will also see moderate orders in that segment. I hope that gives you a little bit of color on the overall segments in the industrial business. Thank you. Mohit, I'll request to come back for a follow-up. Next question is from line of Ankur Periwal from Axis Capital. Please go ahead. Hi, ma'am. Thanks for the opportunity. First question on the exports outlook. We have seen an uptick in terms of our annual revenues this year. Anything specific to look out here? Is there a change in trend or probably that range-bound sort of range still continues going ahead? Your comments, please. Exports, we have been seeing markets like Europe and Asia- Pac continuing to grow modestly for us. There is nothing specific that has changed. Middle East and other markets actually have not grown as much. For the last two quarters, it has been Europe and Asia- Pac, and those are the places where we continue seeing moderate demand. Nothing has changed in that outlook. Sure. Secondly, on the industrial side, you did mention towards some of the segments seeing some uptick there, especially railways. How will you look at the growth outlook here, considering will it be only railways who will be driving growth for us? Or how do you see the overall growth outlook on that side? If you can share the annual numbers in terms of the specific segments as well. Thanks. I will do that. Railways, yes. For now, we continue railways good demand for the industrial business as well as DBU. Railways as a segment we see growing. Mining, as I mentioned, new tenders coming in and a building order book. Those are the two where we see order book building up. Construction, I mentioned, is moderate because largely we are related to the road construction and the assets that are used in road construction that is happening in pockets, but not at the speed and velocity at which it was happening a few years ago. Compressor goes into its down cycle, which is very regular after every few years. That is how we see it, Ankur, both railways and mining growing for us in this year. Thank you. Next question is from the line of Renu Baid from IIFL Capital. Please go ahead. Hi, morning, thank you team for the opportunity. Shveta, my first question is, while data center clearly has emerged as the fastest growth driver for us for the domestic power gen business, what in your view would change from a portfolio perspective as we move towards the increasing install base from a 1.5 GW to 6 GW to 10 GW? As more larger size data centers are coming up 80 MW-100 MW range, few of 200 MW range, how does the spec and the multiplier effect intensity of backup power going? With this, as we see the larger size engines being deployed here, which are largely imported today, how does the competitive landscape for you look like versus the current 60 L where we are deeply localized versus peers? Do you see market shares tapering for Cummins in the data center market over the next four years or even two years to look at in the near term, as we see larger size of data centers getting planned and deployed in the country? That's the first question. Yeah. Thanks, Renu. From a data center shift perspective, the sizing that you're talking about of the gensets and the engines thereby, largely you're right, it is the localized QSK60 which goes in this market. In the near term, which is two years, it will continue to be QSK60. That is the clear line of sight that we have. Yes, this could shift towards higher sized engines as well, towards 78 L and a 95 L. 78 L looks more likely, and if that happens, we would always evaluate what is it that we can do in India as the volumes start coming in for the 78 L. From a competitive landscape perspective, no one is making 95 L in India. Everybody's importing that. In that space, I don't see the competitive landscape changing from where those large engines are built, because largely QSK95 are sold in the U.S. market. For us as well, they get built there and, obviously, all our competition also decides where those big engines sell today and place their manufacturing and supply chains accordingly. Right. This question was specifically on the backdrop that over the last couple of quarters or specifically in the last three months, we have seen large orders being finalized on the data centers, and won by our competition, whether it's Perkins or Baudouin, be it Adani, CtrlS, et cetera. I was just trying to understand that incrementally if competition is based at equal footing on imported engines, the relative cost benefit which Cummins was having on a 60 L fully localized base will definitely narrow out versus peers. How do you think our margin of profitability profile and our go-to-market strategy on pricing may change as we move towards larger size of data centers which are being planned? Renu, the way we look at it is not just about the cost and the pricing of these engines and gensets. It is the whole value proposition that we provide to the customers. From our perspective, even before the tenders come in, we engage with our customers to really understand what are the kind of sites they are planning, how are they really thinking of setting up their sites, and how can we help them from that stage onwards to think of power and backup power. Then during installation, we help them, after installation through our distribution business, and please also remember that we are doing this around the world. There is a lot of learning that we bring in to our customers. In our view, it is not just a cost and pricing game, it is the whole value proposition and the solution end-to-end that we provide to our data center customers. We continue to see our customers valuing that. Thank you. Next question is from the line of Aditya Mongia from Kotak Institutional Equities. Please go ahead. Hi. Morning, everyone. Thanks for the opportunity. The first question or maybe the clarification that I had, Deepthi, over here is, when you say 30%, 35% power gen is data centers, is there a separate distribution piece that is outside, and if so, how large is it? Did you mean is there a separate aftermarket business for it? That is true. Yep. Yes. For data center players, as I just mentioned in the answer before this, we look at data center customers very specifically because they want 99.99% uptime. From an aftermarket perspective also, there is a very separate focus to make sure that our service teams and our parts are available to them in the way they need it. It is a very separate focus in our distribution business on data centers. Is there a separate quantum beyond the 30%, 35% exposure in power gen, let's say, in distribution? Could you quantify the number for that, the absolute contribution coming in? There is distribution revenue over and above the 30%, 35% I spoke about. Will not be able to quantify that for you today. Thank you. Aditya, kindly come back for a follow-up question. Next question is from the line of Rahul Gajare from Macquarie Capital. Please go ahead. Yeah. Hi, good morning. The first question I've got is on Cummins parent investing close to $ 450 million to add 20 gigs of capacity by 2030. I would imagine ideally this should compress the import timelines. As we speak today, how much is the timeline for import of this QSK78 or QSK95? Along with this, you could also comment on how much time does it take for locally manufactured QSK60? That's the first question. Your first hypothesis that this will crunch import timelines for us is correct, because we are adding capacity, as our parent has mentioned. This largely goes towards engines that go in the data center market. It is likely to crunch import timelines. I will not be able to give you the exact numbers on what our lead times are and what they are likely to go to. No, you can talk about it at this point in time. How it has changed maybe in the last one year, if it has changed at all? It has definitely increased. The lead times has increased because we need to appreciate that the data center demand through the world at this point in time is very high. Our lead times have, in the last few years, increased. Thank you. I'll request to come back for a follow-up. Next question is from the line of Teena Virmani from Motilal Oswal. Please go ahead. Hi, Shveta. Congrats for a great set of numbers. I have two questions, one on exports and one on power gen. On exports, can you please quantify or give a broad range as to what would be the element of currency depreciation, in the overall export growth number or export number? Are all gains booked by Cummins India, even if you are doing exports to the parent entity? Teena, currency depreciation, I will not be able to give you a number. Exports largely happen to Europe, Africa, Middle East, Asia- Pacific, Latin America, everywhere. I won't be able to give you a currency depreciation number. Are all gains kept by us and not shared? Over a longer period of time, depreciation is a well-known fact available to everybody and to our customers. After a period of time, we do pass on the benefit, including to our parent. Okay. It would vary from geography to geography. I mean, it would all depend basically on the negotiations that you are having with the clients. Absolutely. Geography to geography, what is happening in that geography, how much distributor inventory we have over there, how are we moving that, depends on all those factors. Understood. My second question is related to your power gen facility. What would be the capacity utilization levels right now at your facilities? Any kind of CapEx are you planning to do on the power gen side to cater to the demand that is coming from both your non-HHP and the HHP side? Sure. We don't separate out our facilities for power gen and industrial separately. We have combined facilities, and our overall capacity utilization is hovering around 70% today. We have consistently been putting in CapEx over the last 10 years and more specifically even in the last five years. We continue to do that towards modernizing our lines, towards building more on each line, and doubling what we are doing. The output of each line has been increasing over the past few years, and we are continuously doing that. That is how we have been able to cater to the demand. Thank you. Next question is from the line of Jason Soans from IDBI Capital. Please go ahead. Thank you for taking my question, ma'am. Ma'am, my first question just pertains to, just wanted to know that, I mean, we are seeing fast-growing market of data centers, not only locally but also in the U.S. and other geographies, so specifically in the U.S. Just wanted to know, is there any possibility of leveraging the Indian entity in any meaningful way to cater to that fast-growing data center market as well, in the U.S. particularly? For the data center market, these are very heavy engines, and largely our strategy is to make them as close to the customer as possible. Do we utilize our India base? Absolutely, we do. Where we can source components from India, we do that. The engines are largely manufactured and the gensets are manufactured where the customer is. We do absolutely utilize the supply base out of India already. Okay, sure. Ma'am, last time around also, you have been mentioning that the competition, especially in the HHP space, whether it be the data center or the mega infra space, which is the mainstay, it's quite heating up. Just wanted to know, could you add some color to it? What's happening there, and also what are the steps we are taking to basically counter the competition? That's what I meant. Competition has been there. As we see that there is growth momentum in the data center and high horsepower engines, there is competition. The intensity has remained the same. Our endeavor is to work with the customers prior to the order coming in and post the order coming in, to handhold them throughout the journey. To not just treat a genset sale as one-time asset sale, but overall provide a solution to the customer during installation commissioning, post installation commissioning, fulfilling their service needs, helping them with predictive maintenance, helping them with diagnostics, and just helping them utilize their space and their asset better. That we can do because, one, we have our own teams sitting here, both in manufacturing, in engineering, and in service. Also, we have many of these resources sitting around the world who share all this knowledge with us and help us compete better in the market and provide better value to the customer. That is how we work to improve our value proposition to the customer. Thank you. Next question is from the line of Priyankar Biswas from JM Financial. Please go ahead. Congratulations, ma'am, for a great set of results. My first question is, like ma'am, you had mentioned in the press release that there were significant commodity inflation, and we also see that there has been a significant rise, almost near doubling of DEF prices, the diesel exhaust fluid prices. In that context, can you say what are the pricing actions has been taken, and is there any impact on the distribution side of things? If I understand that DEF is used as a key component with the aftertreatment systems. If you can say something about that. I'll split this answer into two. Let me first talk about commodity inflation overall. Yes, we have been seeing commodity prices increase. As far as possible, we try and pass them on, but there is always a challenge because we would have generated orders prior to the period of commodity increase. With a little bit of lag and with a little bit of challenge, we pass it on to the market, and we continue to see that challenge across various commodities. Specifically, from a diesel exhaust fluid perspective, DEF is a very small proportion of our distribution business sales, so it is not that impactful. Then if I may ask something, what we are seeing is some of your local competitors, specifically, it seems that they are engaging into significant hiring of personnel, especially relatively senior from the likes of Cummins itself over the last one to two years. Is there any impact that is there on our business? If I can just squeeze one more in, like customers, you give out the breakup by subsegments of power gen and industrial, if you can do that as well. Okay. I'll answer your first question. Then I will give you the subsegments breakup. Local competition hiring from Cummins. Cummins has been a ground where almost all competition hires from Cummins. This is not new to us. The company has been around in India for 60+ years, backed by a great brand, technology and innovation. We continue to have excellent manpower with us already. No, that does not impact. Subsegments breakup from a power generation perspective, I will give you the quarter numbers. Low horsepower, INR 55 crores. Medium range, INR 177 crores. Heavy duty, INR 108 crores. The remaining is high horsepower. From an industrial business perspective, construction at INR 164 crores, rail at INR 111 crores, compressor INR 59 crores, and then the remaining is mining, marine, defense. Thank you. Next question is from the line of Mohit Pandey from Citi Research. Please go ahead. Yeah. Ma'am, first question is, was there hyperscaler delivery this quarter? HHP number looks like INR 954 crores based on what you just disclosed. Thanks for the question, Mohit. Yes, there was. Okay. We had about INR 250 crore of revenue. Understood, ma'am. Second is, if you can please comment on the demand trends barring data centers and power gen. Your initial comment, you did suggest you're seeing robust demand. That would be very helpful. Secondly, on distribution as CPCB IV+ products start coming out of warranty from June onwards, how should we think about it, yeah, on the impact on distribution? Yeah. These are my two questions. Sure. I'll answer your second question first. CPCB IV+ as it comes out of warranty. Absolutely our endeavor is to encircle our customers so that this is integrated technology products, far more sophisticated technology than we had prior in electronic engine aftertreatment systems. We do want to provide services to our customers for the entire CPCB IV+ range as it comes out of warranty. We have service packages available for extended warranty as well for our customers, which gives them a lot of peace of mind. We do anticipate our distribution business to be able to cater to these customers as they get out of warranty. In fact, we are already working on that through our extended warranty scheme. From a power generation demand perspective, beyond data centers, we have been seeing demand from manufacturing, very specifically a lot of solar cell manufacturing plants being set up. Pharma. These are some spaces we have been seeing demand. On quick commerce, where dark stores are being set up by quick commerce players, we've been seeing demand there. Luxury residential realty, commercial realty continue to show us good inquiries and good orders. That is largely where we see power generation demand. Industrial, I already shared mining and rail is where we are seeing building order books. Thank you. Next question is from the line of Puneet Gulati from HSBC. Please go ahead. Yeah. Thank you so much for the opportunity. Shveta, my first question is, are there any product gaps that you see today that you want to bring to the market? Puneet, we don't see product gaps. What we always endeavor to do is pack more power into each of our products, and we continuously work on that. We don't have product gaps. We have lots of opportunities to pack in more power into existing products so that they become more value for money for our customers. Understood. Secondly, you talked about extended warranty scheme. How do you book your revenues for that product? Is it at the time at which you sell or through the life? I don't think I'll be able to share all the details for this. This is booked just as per the services rendered. Thank you. Next question is from the line of Amit Anwani from PL Capital. Please go ahead. Hi. Thanks for the opportunity. Just wanted to ask your thought on the BESS. We talked about it, I think, one and a half year back. Any thoughts on BESS since there's lot of planning in India also next for four years in terms of BESS targets? Just wanted your thoughts for the Indian entity on BESS. Thanks for the question. We have generated a lot of interest and a lot of inquiries, yet to see some good sales coming into it. For now, there's a lot of interest and a lot of inquiries for battery energy storage systems coming out. Right. Second, I wanted to ask you told me about the co-location inquiry, especially from October that has picked up. I just wanted to understand in terms of our portfolio currently, is there any product gap in terms of servicing probably the large scale data centers if they possibly come for next two, three years? Second, in terms of capacity, are we kind of thinking of major expansion? You said 70% utilization, but seeing the kind of demand which we are sensing for next couple of years, at what point we'll be thinking of capacity expansion in a big way? I would probably front- loading any thoughts on any major CapEx you might be thinking for these two questions. Thanks. Thanks. From colo players, we do not have a product gap. They continue to buy our QSK60 and for the next few years, we see the demand for that note from colo players. No product gap. From a capacity perspective, I did mention that we have been investing. In fact, in the last five years in Cummins India Limited, we have invested more than INR 1,000 crores. What we have been using it for is continuously modernization of our plants and expanding our line capability, more output from the same lines. That has been happening over the last five years. We also have very integrated supply chains around the world. As capacity, similar kind of output generation from different plants around the world happens, we can tap into that as well. For now, no major capital expenditure plan. The continuous capital that we have been investing in the last five years, we will continue to invest that to get more output from each of our installed bases today. Right. Lastly, if you can share the non-data center growth in domestic power gen, how has been the growth this financial year? Non-data center growth in power generation has also been very good. It is higher double digits as well. Thank you. Next question is from the line of Uttham Kumar from Avendus Spark. Please go ahead. Yeah. Thank you for the opportunity. My first question is on the power gen segment. I just want to understand that post the transition to the CPCB IV kind of a technology, initially we had highlighted that the price hike was about 30%-35%. Is that pricing still sustaining or have you seen any kind of pressures because of competitors also trying to maintain at the lower end? That's the first question. Pricing is largely sustaining across the range. Of course, in the lower ranges, which we call very low horsepower products, always in this market, there have been a lot of price related competition which continues. Largely, pricing has sustained at the levels we had spoken about. Got it. The second question is on the distribution business. We are seeing for the full year around 22% growth. Could you highlight what would have been the price-led growth on this particular category? Price-led growth in the distribution business is very less. In the distribution business, the growth that we have been building is through the actions we have been taking. Distribution business is providing more solutions to end customers, be it in power generation or in railways. They have been working towards providing service packages for predictive maintenance. They have been working on expanding sales beyond parts related to the engine. A lot of dual fuel kits, retrofit emission control devices, and many other such opportunities. Really from a pricing perspective, that is not the major contributor to the 22%. Thank you. Next question is from the line of Mayank from HSBC. Please go ahead. Yeah. Hi, Shveta and team. Good morning to you. First question on a data center project cycle. I just want to understand the ordering and execution that happens there. Let's say if a data center build-out takes three years to build, at what point will the customer order gensets onto you? At what point will you deliver it to the customer? How the revenue recognition takes place during that time? That's my first question. Yeah. Mayank, 6-12 months before the site is ready. We would get those orders. It could be much earlier than that also, depends on how people plan their sites. Largely on an average, 6-12 months before their sites are ready. Okay. Revenue recognition, the majority of it is on delivery, of course. As we install the genset on the site, we recognize the revenue. Thank you, Mayank. Kindly come back for a follow-up question. Next question is from the line of Kishore Kumar from Unifi Capital. Please go ahead. Thanks for the opportunity. My question is a follow-up to the question of Amit on BESS. How do you see this segment scaling up over a period of three to five years, and what will be the overall contribution of this to the business? Second is, do we have localized supply chain for this or it is more of an import dependent here? We have a positive outlook on the BESS business in India. We see it scaling up. We see it becoming part of the overall backup power solution for our customers. As of today, because we do not have a very good sales pipeline yet, and we are still seeing customers evaluate how they want to add a BESS in their overall power solution, we are not able to share with you what we see as the contribution. As the market moves, as we see more installations, as we get feedback from customers, then we will be able to share contribution. Over the longer-term period, we do remain very positive on the outlook of battery energy storage systems. From the supply chain being localized, no. For this product, we do not have a local supply chain yet. We are working towards that, but we do not have a local product yet. Got it. Who are the customer cohorts that currently we are targeting? That is something I will not be able to share with you. Okay. Thank you, ma'am. Thank you. Thank you. Next question is from the line of Vijay Bhasin from InCred Research. Please go ahead. Yeah. Hi, Shveta. Is it possible to share the split of revenue growth over the last two years into pricing versus volume given how the CPCB IV+ size have been completely absorbed by the market? Vijay, that would be very tough to do. If I were to give you some indications, it would be a lot of volume-led growth. Price and content addition, yes, in the CPCB IV+ range, but please remember that beyond the CPCB IV+ range, we have the high horsepower range, and we have the industrial business and the distribution business. Overall, it is actually volume-led growth. Fair. Second, you mentioned to an earlier participant that India data center demand is more of co-location than hyperscalers. What we understand is that the hyperscalers are now picking up pace, what we are seeing in the U.S. and Europe markets. Given there's low competition in the HHP space above 800 kVA levels, is it fair to assume that the margins would potentially be better here on from, let's say, a medium-term outlook, if not immediately short term? Thanks for the question, Vijay. Vijay, a lot of inquiries and orders from the colo players. Yet I would mention that both the hyperscalers and colo players are growing in India. Just that in the prior year, we did not see this kind of order velocity from colo players, which we are seeing now. Both hyperscalers and colo players are growing in India at this point in time, and we are getting to see inquiries and orders from both. You asked me the margin question, that is very difficult to answer. Of course, every business tries to maximize the margins when you provide higher value to your customers. It's rightful to say that in the high horsepower range, beyond the technology, the service, and the solutions we provide, we try to provide higher value to our customers, for sure. That is our endeavor. Thank you. Next question is from the line of Ashish from MLP. Please go ahead. Hey. Hi, Shveta. Congratulations. Hello. Go ahead, sir. Hi, Shveta. Congratulations on a good set of numbers. I just wanted to understand what would be the lead time for HHP ordering, because with the higher commodity price, would we assume that the orders which were taken previously would have some margin pressure, but then going forward as we take new orders, that shift a bit? The lead time for high horsepower orders, I did answer the data center lead times earlier, but overall, high horsepower portfolio, the lead times are between three to six months. Okay. Should we expect some near-term commodity impact and then it gets passed on to the customer? Do we have any price escalation on the orders that we have already taken? This is quite challenging for us to manage. We, of course, try to pass on the commodity increases to our customers. There usually is some lag in the way we are able to deal with it. Thank you. Next question is from the line of Prolin Nandu from Edelweiss. Please go ahead. Hi, Shveta. Thank you for taking my question. Just one question. On the moderation of demand that you envisaged because of how the macro is panning out. Just your thoughts in terms of the criticality of the pipeline that we have. How much of short-term commodity prices could impact decisions on some of these very long-term projects? Versus, let's say, five years back, the quality of pipeline that we had and right now, how inelastic, so to say, is the demand, versus what it was five years back? The way to think about this would be that from projects which come in the high horsepower range from a power gen perspective, the demand should largely be inelastic because these are more project-based, which were planned earlier, and only commodity pricing signals will not make changes to how the projects were planned and how they will get executed. On the lower ranges below high horsepower, which is CPCB IV+ range, yes, because the lead times are shorter for these orders and inquiries also keep coming in regularly. There could be impact. There could be impact if the commodities go higher and if inflation hits even higher, then that is the space where we can start seeing demand to be more elastic and order velocity reducing. That's it from my side. Thank you so much. Thank you. Next question is from the line of Bhavin Vithlani from SBI Mutual Fund. Please go ahead. Hi, Shveta. Good set of results. Congratulations. Could you help us with the share. Bhavin, sorry to interrupt. Can I request you to speak a little louder, please? Okay. Am I audible now? Yes. Thank you. Yeah. Shveta, good set of results. Congratulations. I have one question. There is a set of couple of nodes which are imported, which are for the data centers. Could you help us with the lead time and on this? Beyond that, if you could also talk about the supply chain related aspects, because in the COVID times, there were issues related to electronics, which impacted. These are the two questions that I have. Thanks, Bhavin. The imported nodes for data centers, I won't be able to share with you the exact lead times. On the supply chain impacts on those nodes. Unlike COVID times, at this point in time, the supply chain impact on the imported nodes is largely because demand on these nodes is coming from all across the world, and that causes a situation where the demand is moving far higher than the pace of addition of capacity. It's not supply chain issues like electronics or others. It's a regular part of the way we manage our supply chain. Of course, when you see high demand on some nodes throughout the world, you deal with supply issues in various different parts. We have been working through those in the last two years or so. Sure. On the electronics front? We don't see a challenge. Great. Yeah. Thank you so much. Thank you. Next follow-up question is from the line of Aditya Mongia from Kotak. Please go ahead. Thank you for the follow-up opportunity. Shveta, two questions. The context of the first question is that you said 30%-35% power gen share of data centers is actually even higher than what the global parent has at about 25%. I would want to assume that the global parent does a lot more in power gen versus what India does. I recall you talking about transmission earlier as well. Could you kind of relate to us where the difference is in what the power gen globally the parent is doing and what we are doing, and where there are pockets of opportunities from an India perspective? Yeah. Aditya, thanks. Aditya, 30%-35% is data center share for India power gen. For the parent, that 25% number is not just a share of power gen. We'll have to relook at those numbers. This is a share of the broader business, it is not comparative. Their share of data center only for power gen will be higher than this because the U.S. market and the China market have been growing in the data center space much faster than us. That is why their share, if you were to take a similar comparable, only data center revenue compared to just overall power gen revenue will be much higher than ours. Owing to the fact that their data center market has been growing much faster than ours. Ours has started picking up pace since last October. Power gen globally versus India. I think the key difference is that in the India power gen market, since we have shifted to CPCB IV+, we are at the highest emission norms that you see anywhere else in the world. We have been seeing growth both across CPCB IV+ ranges and the high horsepower ranges. For our parent, the high horsepower growth has been far faster than any other segment's growth. For us, it has been more broad-based growth, given that growth in manufacturing, growth in pharma, growth in commercial and residential realty, and other segments has also been really good. That, I would say, is the primary difference between the growth in power gen for us and the growth in power gen for parent. Pockets of opportunity for us will be if India data center market starts growing at the pace at which U.S. and China are growing. That would present to us a very, very good opportunity, which is not happening yet today. Sure. I'll probably put my second question little on this one. The parent is also talking about new products that they are launching, wherein the genset just doesn't work as a backup application, but also the prime mover application, let's say, in peak shaving times and so on and so forth. There are a few more that the parent has highlighted. Again, I'm trying to kind of suggest that or seek from you that beyond BESS, are there other allied power solutions or aspects that we can focus upon, that may have a life to them over the next two, three years? You're right. The parent has spoken about a gas product very specifically for the U.S. market to operate when there is peak shaving in the power. In India, we do not see those kind of opportunities. Beyond BESS, there are some opportunities that we are evaluating. As and when we have some maturity on those, we will share with you. As of today, there's nothing that I can share yet. Thank you. Next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead. Hi, Shveta. My question is on distribution business. In last few calls, you've been saying a lot of effort has been put up to build out this business. Just wanted to understand now since CPCB IV is now already implemented, I assume that large part of our install base would have already been covered. Do you think that there is still scope for this business to grow in excess of 20%, which it has been delivering for the last couple of years? We do think there is scope for distribution business to grow, owing to the fact that the asset base is continuously increasing in India. Of course, I did mention CPCB IV+, and also in the high horsepower range, it really matters to the customer that the asset is maintained and serviced and is ready for use as and when they need it. Yes, there are those opportunities. In railways and in mining as well, as the asset base increases, there are opportunities. There are some pockets in the construction segment, there are pockets in defense. Yes, all of these present us opportunities which come with the growth of the asset base, with distribution business going out and creating solutions for the customer and also helping them with predictive maintenance and such services. We are adding to our distribution portfolio to distribute parts and services beyond engines as well. That is added growth opportunity. We definitely see distribution business continuing to be on this growth trajectory. The second question is on the residential real estate, Shveta. I cover that sector for long years now. What I have seen is a trend change that before 2020, it was more like mid-income, mid-luxury housing, but the transition over the last four years, five years has been super luxury and beyond. The volumes have also significantly increased over the last four or five years. On the ground, when we see that next three to four years, there are huge deliveries of these apartments being planned in the last stages of delivery. Do you sense any on the ground whether the per capita consumption of the backup power, given these are luxury projects, have you seen that more units are getting deployed on the ground? Could there be a scale change altogether in the growth which real estate, the portfolio can deliver on the power gen side, on the non-data center power gen side? Parikshit, simple answer, no. This segment has been growing for us both. You're right, it is luxury residential realty which has been growing. We don't see a dramatic scale change. They still remain backup power, so we do not see even the utilization going up. We do not see a dramatic scale change there. Thank you very much. Ladies and gentlemen, in the interest of time, that was the last question. I would now like to hand the conference over to Ms. Shveta Arya for closing comments. Thank you so much for all your questions. Thank you for your participation and engagement. India's economic outlook remains steady, supported by government initiatives, focus on manufacturing and capital investment. The company remains focused on timely execution of orders, maintaining supply chain resilience, and leveraging its technological strengths. With this, I would like to close this call. Thank you so much for all of you for joining us today. Thank you very much. On behalf of Cummins India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.