Ladies and gentlemen, good day and welcome to Automotive Axles Limited Q4 and FY25 Earnings Conference Call. As a reminder, all participant lines will be in listen-only, 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Radha Agarwal from Batlivala & Karani Securities. Thank you, and over to you, ma'am. Thank you, Amshad. Good morning, and thanks to everyone who have logged into Automotive Axles for Q4 FY25 Earnings Call. Now, let me introduce to you the management participating with us in today's earnings call. We have with us Mr. Nagaraja, President and Whole-Time Director, Automotive Axles; Mr. Ranganathan, CFO, Automotive Axles, and Mr. Kishan Kumar, General Manager, Meritor India. I would now like to turn the call to Mr. Nagaraja for opening remarks followed by Q&A. Sir, you may begin now. Thanks, Radha. Good morning, everyone. My name is Nagaraja Gargeshwari. I'm President and Whole-Time Director for Automotive Axles. I, on behalf of Automotive Axles, welcome all of you to this Q4 FY25 earnings call. So, along with me, Ranga, who's the Chief Financial Officer who is there, who will be taking us through the financial results. And we also have Mr. Kishan Kumar, who will be giving us an overview on the market conditions and how the next FY26 is going to look at. So, this year, we ended on a high note in spite of a relatively soft year. There were several headwinds, including soft domestic and export market and relatively unfavorable product mix. In spite of this, we continue to focus on executing on our product portfolio expansion, MS185 Axle introduction and ramp-up, and also ramping up other products like MS04, and then continue to work on several cost optimization and margin enhancement initiatives. So, like I said, Ranga will share more on the financial highlights. Before I conclude, one last information. As you are aware, based on the related party transaction recommendation from the investor, we got into technical and service agreement with M HVSIL, and thereby, now we have started selling products directly to the OEMs. However, M HVSIL will help us and provide the market intelligence, customer management, and continue to focus on product design, application, and testing services that will be offered to Automotive Axles. With that, over to you, Ranga. Thank you, Nagaraja. Very good morning to all of you. I'm Ranganathan, CFO, Automotive Axles Limited. I just want to just give you good highlights of the quarter and the quarter-year financial performance. For the quarter, the total income is about INR 568 crores and EBITDA of INR 12.7 for the quarter. Last quarter, we did about INR 536 crores, and last year, same quarter, we did about INR 576 crores. So, if you compare the year-on-year base, one of the probably insights I want to give you, the commodity settlement from April to March, we are settled in the Q4. So, the commodity is in the reduction trend. So, considerable amount of commodity adjustments, which is a pass-through supplier to the customer, which has been taken care of in the Q4. If we remove the commodity adjustment for the quarter, I think quarter on quarter, we have improved it close to about 6% in compared to last year. Though, apparently, in the face of it, you show 1.5% reduction. If you remove that, more or less, the revenue will be at par with the last quarter, the same quarter last year. For the overall year performance is concerned, for the year performance, we have just crossed over the INR 2,000 crores to the product revenues, but overall revenue, if you look at it, INR 2,104 crores. In face of it, we are down by 6.2%. If we remove the commodity adjustment, it's about the reduction is about 5.2%. The EBITDA for the quarter is 12.7%, which is 12% last quarter, and 12.1%, the same quarter last year. In terms of overall operating performance, we have significantly improved, and the commodity adjustment is also giving a base benefit of close to about 0.3%. If we remove that, our neutral performance for this quarter is about 12.4, which is still better than the last year. Though the revenue is lower than the last year, the same quarter. Overall, for the year EBITDA is concerned, for the INR 2,104 crores, we did about EBITDA of 11.9, and last year, we were about 11.8. With the revenue reduction at the normal basis, though the revenue was reduced by 5.8%, but EBITDA still showed better than last year, or more or less the same level of the last year. The significant amount of efforts have gone in in terms of improving the material and other operating performances, which is able to, which will help us to improve our overall performance in the operations that are resulting in the EBITDA. That's the major highlights. The next is about the operating cash for this year. We have significantly improved about INR 72 crores worth of the additional cash has been generated. The balance sheet is in a very good position. All the debts, there's no debt, and all the balance sheet is just going good. A lot of corporate governance initiatives this year also, Automotive Axles have taken it, and we are consistently improving the governance initiatives too, apart from the financial performance. That's a quick highlight for the financial performance is concerned. Then, probably, we can take it up the Q&A phase. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to 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 Viraj from SiMPL. Please go ahead. Yeah. Thank you for the opportunity. A couple of questions. First is on the approval for, I mean, the approval that you the press release which we came up at the end of March on the service and technical fee arrangement with Meritor HVS. Can you just broadly give some more color in terms of what is the service fee which is agreed upon? Is it a percentage of sale? Is it an absolute fee? Annually, what kind of a fee payout we would be having to make to Meritor HVS India? That is one. And since now all the domestic OEM sales are routed directly through Automotive Axles, if I have to take FY24 or a normalized year of the sales which were made to Meritor HVS earlier, usually what proportion was OE and what proportion was export and aftermarket to them? These are two questions to start with. Ranga, would you like to take the first question? Yeah. See, we have signed up an agreement with Meritor HVS. They're taking a technical and management fee basically impossible. We agreed it. We are in the final stage of signing up the fair value, and we will be getting to know in a month or so. It's going through the assessment process. Definitely, we need to have a fair value in terms of announcement. We want to do that. In principle, the technical fee and management fee agreement has been signed up, and more or less, on the quantum of it, we'll be materializing it in a month or so. But would it be an absolute figure, or would it be a percentage of sales approach? Usually, what is the broader thinking here? No, broader thinking is about basically, we need to respect Meritor HVS, the services what they are doing here. And the purpose, I think, as we have mentioned enough times in the past, Meritor HVS in India is basically to accelerate Meritor product presence in India. Since Automotive Axles has already established a very strong manufacturing base with its investments, so we continue with the current structure. And Meritor's expertise in terms of new product development, engineering design, product development, product testing, very important point in any products like us, the market testing and the market condition testing, it's about a very rigorous process. It requires a very fulfilling R&D center which Meritor has it. So all this responsibility, including marketing, branding with the customers, customer relationship, branding, new product development with the customer, all these activities have been taken over at Meritor. So with due respect to these activities, and Automotive Axles don't have this presence, I don't think Automotive Axles is able to gain that expertise overnight. So basically, that's what we have respected that. And to do that, we need to have a fair value. That is basically being worked out. But we definitely will be paying to them. Definitely, we are free with this compensated dollars and efforts. That's why we said we wanted to do it in a much better way. So we are engaging with an expertise in the market. So the quantification will happen very shortly. But in principle, the agreement has been signed up. Just to add to what Ranga has mentioned, it will be a fair value. It will be according to the prevailing market standards. So I'm not sure whether we'll be able to share the absolute number because of the confidentiality of this agreement, but it will be a very fair market prevailing charges. And to add to your answer your second question, definitely, there is going to be a top-line growth that is going to happen. Our focus right now, it could be at the high digits of single-digit high digits. That's what we are expecting. In terms of overall profit, there will be an increase compared to vis-à-vis our baseline. So our focus right now is going to how do we continue to meet the customer expectation and then continue to transform our company so that we are ready when the market rewires. So just two clarifications. One is for the quarter gone by, because this RPD expired in Q3, for the quarter gone by, was there any provision made for the payment to Meritor HVS India? And second, when you say there's a growth in top-line and profit, that is assuming the base sales of 2023 itself, because of this change in model, or you're talking about more in terms of the end market growth and us also performing in line or better? To bring in the clarity, the RPD ended on 31st of March. So the last quarter, we didn't pay anything to the M HVSIL. So the technical and service agreement kickstarted from 1st of April. So to answer your question, it started only this quarter. And whatever I talked about, the top-line growth, that is what is going to happen in this year. That is financial year 2026. No, that is assuming even if the sales were to remain flat, purely because of the model change, or you're talking about more in terms of the end market and us performing better? It's a bit of both. Okay. Got it. Okay. Can we move to the next question, please? Sure. I'll come back in. Thank you. Thank you. Thank you. The next question is from the line of Amit from HG Hawa. Please go ahead. Good morning, am I on. Good morning. Yes. Hello. Good morning, am I on. All right. Thank you. Thank you, sir. So thank you for the opportunity, sir. Sir, how much of the FY25 CapEx was dedicated to R&D or EV-specific product development? Okay. So right now, from Automotive Axles, we are mainly all our CapEx is going into the manufacturing infrastructure and then also certain supplier tooling where I mentioned earlier that the MS185 is a product we ramped up. So we had to get all the supplier tooling made available and also update our line so that we can meet the volumes increase. But however, our CapEx is related more on the manufacturing excellence rather than the product. So we haven't spent much money on the e-Axle at this point of time. The second question was, can you share any productivity improvements or cost savings achieved from new Industry 4.0 enabled axle assembly line? Ranga, you want to take that? Can you say it again, sir? Yes, sir. Can you share any productivity improvements or cost savings achieved from the new Industry 4.0 enabled axle assembly line? See, 4.0 initiative is basically a long-term thing. If we really look at it in one of the lines, we have aligned to Industry 4.0 in the year 2019-2020. Okay? And we are working on with Industry 4.0 implementation, other value streams. This year, we started with an update line. And like that, we'll be introducing the Industry 4.0 initiative, slowly all the value streams. And basically, to see that Industry 4.0 initiative definitely will lead you long-term. To refer to your question on the CapEx, the most of the CapEx what we are trying to invest today is into two, three aspects. One of the aspects is about reducing the overall throughput time of manufacturing through automations and introduction of Industry 4.0. This not only improves the productivity but also increases the capacity. So though the market is not significantly improving on a year-on-year basis, we consciously make a decision. Imagine the Automotive Axles is about 43, 44 years old organization. Some of the investments which really require a revamping to the current conditions and also the current quality and delivery expectations of the customers. So we wanted to make sure that automation brings the speed, accuracy, and quality, and that basically improves the customers. That basically is what we are driving most of this number of times. Any investment we make, we're conscious about it in terms of the profitability improvements and productivity and capacity improvements what it creates. Some of them, you may see it in the P&L. Some of them will take it when the market volume really goes up. Seamlessly, we are able to meet the customer expectation. That will provide the benefit in the future date. To answer your question, overall basis, we have a very focused strategic approach in terms of the cost reduction initiatives. Every year, we definitely have a focus both on manufacturing and on the sourcing side. Very key initiatives we take it. We improve the profitability every year. A cost reduction program every year. Some will be internal, some in agreement with the customers. So overall basis, we definitely bring about a 0.8% to 1% improvement to mitigate the inflation and other pressures and show the profitability improvement. Thank you for the brief reflection. And I follow up to this next question. Sorry, to interrupt, sir, but I may request you to rejoin the question queue for follow-up questions. Okay. I'll rejoin the queue. Okay. Thank you. Thank you. Before we take the next question, we would like to remind the participants to press star and one to ask a question. The next question is from the line of Saket Kapoor from Kapoor & Co, p lease go ahead. Yeah. Namaskar team and thank you for this opportunity. I'll just sum up my questions. Firstly, in your opening remark, if you could, you did mention about lower RM prices though our revenue being lower. So if you could just briefly outline to us how the business environment has been in terms of the ICV market and the bus market where we cater to. We also spoke about new product introduction. So if you could give some more color, what are the offerings for FY25, FY26 in terms of introduction of new product, improved volumes, some more color, and also where are we in terms of our 5-year program of doubling the revenue? If you could just give some more color into all these aspects, and then I have a second question. Thank you. Okay. So may I ask Kishan to take up the first part of it? In terms of transformation, I will answer that after Kishan explains on the market condition and our new product development and our readiness. Yeah, sure. Thank you, Saket, for the question. Coming to the first part of your question, which is related to the market, the two key indicators for the economy, right? One is GDP, and then there's the industrial production rate. Both have been relatively softened compared to where we started the year 2024, 2025, and ending March, I think we saw a growth of about 6.3 GDP. Even though we surpassed Japan, that was probably at a much lower rate than the previously anticipated expectations. Coming to the industrial production ending March, we were at 4. But the good news there was the core industries started doing better only in the recent quarter, so the core industries, industrial production growth was around 6.6%. Now, how that translates to the M&HCV market, which is the 7.5 ton and above, which is where we are present. So the last couple of years, I think after COVID, the typical 6 to 8 year cycle of peak and the dip, what we see, that seems to have reset. So when I say reset, we used to see in the past the highest volume of 480,000 vehicles in 2018-2019. And if we take that 6 to 8 year, we should have seen a peak and a dip by now. But what has happened is the COVID has actually reset, and also the axle rerating has actually reset the norms of the industry. So for the last 3 years, if you start from 2023 onwards, FY23 onwards, the market has been relatively hovering around 400,000-420,000 vehicles. But it is always delivering the tonnage capacity required by the industry, which means both these impacts, fleet efficiency, axle rerating, that has probably reset the low. Probably we are in the low cycle right now, so last year, for example, 2025, FY2025, we ended 414,000 production of M&HCV vehicles, which is 2% down from FY24, and moving forward, even 2026, we have a very moderate, softened look considering how the industry is moving and some of the trends that are coming up, so we are expecting the industry to be around 400,000. So that's again a 3% growth. Now, I think you also asked about the new product, so the trends that I mentioned, which we are closely monitoring, so one of the trends what we see is the high horsepower vehicles. So as we speak, we are already in the advanced stage of, in fact, we have already launched one of the products, which is 185 last year, and we have ramped up to a significant level last year, and we expect that that volume will grow. And that is where the trend is moving, the high horsepower engines. The second one is the bus market, which we have discussed in the past as well. That is a slight product gap, which we want to cover not just for the bus, but also for the intermediate commercial vehicles, which is 16 to 19 ton. So the product that we have been talking about, the 109, that is in almost its final stage of development and the validation. So we'll soon start the field trials, which will enable us to reduce the product mix impact. So typically, when the on-highway vehicle market is at that 400,000, the product mix impact is actually on a higher step if you don't have the right product for the market. That's exactly what we predicted and forecasted 2 years ago and started the journey of introducing the high horsepower engine axles, which is the 185 and the 160 tandems. And then also on the ICV and the bus side, we started developing the 109 upgrade. So Nagaraja, over to you. I think this is probably what Saket was looking for. Okay. Yeah. Just to add to that, one is we are ready with the new product. We have completely tooled up, and then testing everything is done, and we are waiting for the customers to ramp up. From the transformation perspective, we're also looking at the next 5 year horizon. As we mentioned, we are investing in the CapEx. There is about INR 120 crores that we'll be spending it. We already started it by end of next year. We're completely modernizing our housing line and then also gear manufacturing line. So that should really help us to start looking at potential export opportunities, expand our horizon there as and when the Europe and the U.S. market comes back. Right now, as you're aware, they are soft. So to tell you probably what Kishan mentioned, I think we have to get through this year. And next year, once the European market and North American market, they start producing, the numbers are going up. And that should really help us to achieve that INR 5,000 crore revenue. My just continued question on second part is about the tonnage part. For investors, we look at the tonnage as the base of understanding how the growth has been because the revenue number may be a misnomer based on RM mix and RM pass-through. If you could just give us the tonnage part in terms of the growth, which we may have exhibited for this financial year and the tonnage growth expectancy going through for the next financial year. If that number, if you could share the ballpark number, would be very helpful. Let me try. Kishan. Yeah, Kishan, you want to do that. Go ahead. Yeah. So I'm just clarifying. When you say tonnage, you're talking about the tonnage carrying capacity of the M&HCV segment, right? That's what your question is. So the tonnage in terms of our revenue translating, when we are exhibiting revenues of, there should be a tonnage backup on that. I was just looking at the tonnage and your outlook on the same. Yeah. So I will translate that to in a more simplified way. So when you say tonnage, like I mentioned about the peak of 2018-2019, 480,000 vehicles, the market dynamics and the product mix and the vehicle mix in terms of GVW was around 8.7 ton million drum. Okay? Now, with the market of 400,000, we are at 8.6. That means in terms of the industry vehicle tonnage, we are already there. Now, what has happened is for a 470,000 or 80,000 vehicle, we were probably selling around 130,000-140,000 axles, okay, on an average. But today, it has come down to 110,000-100,000 in those areas. That means our per axle realization, if you look at our revenue and the industry growth or degrowth and the tonnage, our per axle realization has significantly improved to 13%-20%, 25% in some cases. So this is very consistent with how the Western world has evolved. So that is why our product roadmap has been very clear that we want to focus on the high horsepower, high tonnage vehicles applications, which is eventually where Indian M&HCV market will also shift. So that's the reason we are not seeing a big dip, like you said, the commodity keeping aside. If we really look at per axle realization, we are only growing per axle realization. I hope that answers the question. Okay. Lastly, sir, how should we be looking this year in terms of your outlook? You explained to us the background of what the M&HCV market is and also about the product introduction. So taking all those factors into account and the efficiency which you have outlined, what should investors factor in in terms of the EBITDA trajectory for the current financial year and any trajectory which you would guide us to going ahead? Ranga, would you like to take that? Say it again, sir. Sir, I'm trying to understand for a company, Automotive Axles, what should the FY26 look like in terms of improvement in profitability because of the initiative and the initiative taken and which are in the annual? So if you could just give us how the EBITDA may shape up going ahead depending upon the factors which you people have just explained to us. It is like this, sir. So if you see on the initial answer, one of the questions we said, we are very focused in terms of improving operating performances every year. Okay? The 2026, we are coming out with a new model whereby the end customer billing will happen through Automotive Axles. And as I also mentioned, the technical and management fee, what we need to pay to Meritor and other variables is definitely to be quantified very shortly, and we will be incurring that. But overall profitability perspective, our aspiration definitely is to improve the EBITDA. And because of the new model, we don't I know at this moment of time with what little visibility we have today is about we are not expecting a great breakthrough in terms of EBITDA improvement because of the new model. But our efforts on the cost reduction and all the investments, definitely we'll say that we'll definitely we are pretty confident about improving the profitability. On an overall basis, if we're really looking at a larger guideline, probably it might be, as Kishan said, the market is considered to be soft in the next year. The variable which will bring us a better benefit in terms of absolute growth comes through the new product development and our initiatives to improve the aftermarket and our export business. So overall basis, there'll be a marginal improvement definitely will be there in the bottom line. But unless the market improves, the volume improves, the significant improvement in the EBITDA level may not be seen, sir. So whatever we have reported today, definitely there'll be an improvement. But it will be very marginal considering the market is going to be soft in the next year. Thank you, sir. I'll join the queue and listen to your commentary. Thank you. Yes, sir. Thank you. The next question is from the line of Devang Shah from Asit C Mehta Investment Intermediaries Ltd. Yeah. Hi. Good morning, sir. It's regarding the last participant asked me a question about the EBITDA level. So, sir, by considering the scenario, as you are saying, it depends upon the market. Although we are coming out with a new product, it seems like from the last three years after 2023, that was in which we did a significant progress after COVID, post-COVID. Then after, our relative performance more or less remains stable as far as EBITDA or net profit is concerned, whatever. Although we maintain our margin, but some kind of growth kind of thing, that's what we have not seen significantly. Although there is a growth, but not a significant level. It is some kind of flattish level. So just my question, sir, in FY26 also, we may see some kind of flattish environment to continue, or we may see with this new product and the opportunity that's been mentioned by you are saying bus electric bus kind of thing, that will make some kind of meaningful difference over here, and we may see an improvement as far as overall performance is concerned. Yeah. Maybe I'll take this. So like what Ranga mentioned and also Kishan mentioned, we are kind of a little bit highly dependent on the market conditions. As Kishan mentioned, from 424,000 levels, we are coming down to 400,000 levels. That's almost, as you can see, about 13% drop. Okay? And then also export and then North American and European markets are softer. So we had a little bit of unfavorable product mix and also the soft market conditions. So in spite of that, we have been able to grow by increasing the value content per axle and then also introducing some of these new products on a timely basis and timely manner. So while we are looking at this particular this year, FY26 is a little bit flattish. Our focus is to strengthen our operations, strengthen our product portfolio to an extent when the market comes back, which we are expecting, which is going to happen sometime in FY27 and FY28, that's when all the efforts that we have put into our operations will become visible, both in terms of our share of business improvement, top-line growth, and also EBITDA improvement. Okay. So you mean to see then after you are seeing the way the next level of growth will come, that's what we have seen after post-COVID scenario? Yes. Yes. And sir, as far as export is concerned, due to this tariff scenario that's right now prevailing, especially for auto ancillary players, will it be have any kind of impact to you guys also? Definitely, there is a bit of impact, but the thing is we are in a very niche area supporting some of the Cummins drive train business. So that way, our impact is more due to the softer market there rather than the tariff impact. As you can see, this tariff is right now, it is not very steady. It is changing every week. So we are just waiting and watching how it completely unfolds in the next few months. But as far as we are concerned, we are working, looking internally how to keep ourselves competitive, both from the cost perspective and also quality and then capacity perspective so that to the possible extent, we are insulated from those tariff impacts. And my last question, sir, that the way we are seeing the electrification, particularly at a state level, as far as public transport is concerned in the form of the buses, do you feel, sir, the way we are seeing many orders being now with the OEMs, reputed OEMs, and in which they are your clients also, that this will be some kind of big opportunity for you in the coming year as well? And something, if I'm wrong, then let me know. Also, this is my understanding to correct. Kishan, will you take that up? In between, I got disconnected. What was the last part? Can you please repeat? Yes, sir. Regarding this public transport in which states being given some kind of push for electrification of the bus. So the way the improvement we are seeing last couple of years, and it seems like it is going to continue. It would be a big opportunity, some kind of opportunity for our players like you to have because many of your OEM clients are tapping into this opportunity as well. Yes. Yes. Thanks. I didn't hear the statement. So it goes like this. Yes, that is definitely very clear that electrification will happen through the buses, mainly the state transport, to be very specific. And we are already seeing it. But the projected volumes and the tenders that have been out there and the number of buses really working in the real world, there is a significant difference. So there are practical challenges. The role what we play today in the current architecture of electric buses is similar to what we play a role in the regular diesel bus, which means the powertrain is still very conventional. So the OEMs are just replacing the engine with the motor. That's how the powertrain is set up. So for us, what it means is our axle, because we know the duty cycle so well, it is already ready for these electric vehicle applications. So the OEMs that presently are, in case of bus, obviously Ashok Leyland is number one when it comes to the diesel buses, right? And they also have a very good market share in the electric buses. So the offerings from us are already ready. So even the new axle that we mentioned about 109, we took a little bit more time to do the redesign, mainly specifically for addressing the electric bus market. So we know the trend, but it probably will not be in the numbers that we see typically in tenders and otherwise in the news. But definitely, 2028-2029, we will expect that almost 25%-30% of the state unit transports will only operate on electric. And again, Tier one, Tier two primarily. Okay. So in a medium-term perspective, definitely there will be some kind of opportunity and growth. That's what you are anticipating, right? Yes. Yeah, and our current products, mechanical products are ready. They are already electric vehicle ready. Yes. Thank you so much, sir. Thank you. The next question is from the line of Ritu Shah from Janak Merchant Securities. Please go ahead. Hello, sir. Samarth here. So can you talk more about we have a product and suspension systems. So can you talk more about that? Kishan, would you like to take up? Yeah. Yeah. Sure. So I'm presuming the suspension you're talking about is the slipper suspension, which we developed and launched for India, right? So this suspension is a result of probably 10, 12 years of research, doing a lot of field trials, understanding the end customer pain points, and finally designing something which is totally new for India, right? So currently, where we stand, so this suspension is now in production since 2019, and there are new developments to cater to some of the new applications, so the platform is ready. We launched this with Ashok Leyland primarily because it was easy for us to integrate with our axle because we understand those applications that we are already selling our axle. We enjoy a good share of business with them, so we developed for Ashok Leyland. And we are also in discussion with some of the other OEMs which have shown interest. So typically, the suspension is not treated as a technology. So there's a lot of effort required from our end also to educate the end customer how critical role it plays when it comes to tire life, fuel economy, serviceability, downtime. So it's an education. It's a journey. So Ashok Leyland was the first one to grab. Now we are working with other potential OEMs where we have an opportunity to launch it with them as well. Got it. Sir, annual sales that we are targeting here and how much we generate presently from this product? We have already in the series production for Ashok Leyland. So I can give you the numbers in terms of volumes, but may not be the revenue breakup. So we are doing almost like 12,000-15,000 suspensions in a year. And this is specific to multi-axle. So only a category of multi-axle, this suspension is applicable. Got it. Sir, second on the export opportunity. So generally, these axles are sourced locally. So when we export, will we only export the axle housing or we have an opportunity to sell a completely assembled axle? And do we have an export opportunity even for brakes? Nagaraja, you want me to take this one? Yeah. Go ahead. Yeah. So great question. So export, before we talk about the products for export, what we need to understand is the differences that the Western world, Europe and North America and South America, and the architecture what we have here in terms of whether it is engine, GVW, or these conditions. So there is always domestic versus international, right? That element is always there. Having said that, there are products that we already have in India which are on par with what the Western world uses. So in terms of capability, in terms of the opportunities that come to us, we get components, let's say axle housing alone. That business also we do, and then we do for certain regions the drive head and the axle together. So it purely depends on the need or the capacity, layered capacity, what the other regions are looking for, and the product doability from a manufacturing standpoint. That is number one. Number two is if you look at the specific to the brakes question, okay, we are still predominantly drum brake, whereas the Western world, most of them, even including North America today, is on the disc brake. So that's a product that even though we have the know-how, we know that whenever the Indian market gets ready, we can put a plan together and industrialize it for India. Today, we are not doing that. So the drum brakes per se, the opportunity is limited. Again, some component-level opportunities are there, but because the market is so different, that's not a primary area in terms of people, too, or the regions to import from India because the products are very different. Sir, last question from my side. So you are saying that there will be some regions where we can sell a fully assembled axle, right? That's right. So we have different versions of that. We can supply the drive head. We can supply the axle separately. It purely depends on what is the domestic value that region has to demonstrate. So it depends on that. That's how it works. Got it, sir. Any specific export opportunities we have for selling to the Cummins network, like manufacturing in India and selling it out? Yes, yes. There are many. There are many. I think the pipeline is growing. It's just that the market in those regions have to be really supporting us because the installed capacity there probably is enough for the current market trends. So it's purely when the peak comes and when and we are also in discussions of some of the products. Why not India be the sole supplier? So these are all long-term discussions. So that's the growth strategy which Nagaraj explained. When we are doubling the revenue, export will play a major role there. Got it, sir. Thank you. That's all from my side. Thank you. Before we take the next question, we would like to remind the participants to press star and one to ask a question. The next question is from the line of Himanshu Singh from Baroda BNP Paribas Mutual Fund. Please go ahead. Hi. Thank you so much, sir. Sir, you mentioned that the M&HCV segment volume should be soft this year, FY26. However, the OEMs are guiding for mid-single-digit kind of growth. So why do you think there is a discrepancy in the estimates or the outlook? Any idea? Yeah, I can take this. So I do understand the numbers that probably you have seen coming from major OEMs. We are not far apart. So what we are looking at is the production, and the sales is a totally different number. So when we said the M&HCV production will be around 400, the sales may be around another 3%-4% more. That's what even the OEMs are predicting, the low single digits or the medium single digits. So we are not very off, but we typically focus on production rather than the vehicle sale because vehicle sale, there are many other dynamics involved there. The current one, if you really see the AC cabin launch, which is expected soon. So that is dealt differently by different OEMs. So we are only focusing on the M&HCV production levels. Sales is a different story, and it can be 3%, 4%, 5% here and there. Okay. Thank you, and sir, in terms of your revenue mix, can you just highlight which all segments contribute how much to your revenue, kind of M&HCV and other segments? Nagaraja, you want to take that up? No, you want a segment means you want M&HCV and other segments you're talking about. Yes, sir. No, we are serving only the M&HCV. We are not present in LCV. Only in ICV, that is bus segment that we are actively filling a gap. So if you really see ICV and M&HCV is predominantly the total portfolio what we're handling it, both axles and brakes. Okay. Sure. Thank you so much, sir. Thank you. Participants who wish to ask a question may press star and one now. The next question is from the line of Viraj from SiMPL. Please go ahead. Yeah. Thanks for the opportunity. Just two, three questions. One is you talked about the market being soft, so weak growth overall, poorer in unit terms and probably higher in turnover. But you're still expecting an EBITDA growth and an EBITDA margin improvement, so just trying to understand what would be the drivers for that. That is one. Yeah. Are you looking at the margin enhancement, how we are achieving it? Is it understandable? Yeah. The EBITDA growth we are trying to achieve despite an environment of sales regrowth or maybe even higher in the turnovers in FY26. Yeah. So I think regarding the product mix or the value content, Kishan already explained how there is a bit of favorable in terms of product mix we are having when it comes to the domestic market. But other than that, as Ranga mentioned, we have been continuously looking at our productivity improvement, our operational efficiency, and especially in the supply chain. We have been doing a lot of work in terms of doing a great due diligence in the area of make versus buy, where exactly we can buy it from outside, and then where we have to do it in-house. So it is not just one initiative. It is several initiatives that is really helping us not only to offset certain fixed cost absorption or increase in the fixed cost or increase in the salary cost. We have been able to offset it effectively through all these initiatives. You have seemed to lose the connection with Mr. Viraj. The next question is from the line of Sarah from UVR Investments. Please go ahead. Hi, sir. Thank you for the opportunity. Sir, in buses, currently, where is Ashok Leyland sourcing its axles from? And is there also an opportunity to make axles for VECV, Tata, and SML Isuzu? I can take this question. So in terms of our share of business with Ashok Leyland, we have about 65%-67%, depending on the product mix. Again, it varies every year. But that's our typical average share of business with them. And they, of course, have a dual sourcing strategy. So even though we enjoy 100% share of business on some axle models, because of their dual sourcing strategy, they also have our competition supply to them. That is the first part of the question. Second is TML and VECV in particular. So at one point in time, going back 7, 8, 10 years, we did supply axles to them, both of them. And their strategy has been to develop products for their own applications. That's how today where we stand is except for the export market where they need a branding like Meritor. Otherwise, for all domestic applications, they use their own in-house axle. Now, that doesn't mean that we don't have an entry opportunity, but that has to come with the right technology which we have for the future generation of axles. When the engines move to 400, 500 horsepower, like the Western world, when the axle efficiency becomes very important, lightweighting is becoming very important, and that is the time I think will be a right opportunity for us to work with them and demonstrate that the knowledge and the experience we have from the rest of the world is readily available for the domestic use, so we are in discussion with them, but it's going to take 3 years, 4 years, depending on how they strategize their game plan and how we can align with them. Okay, sir. Sir, with respect to the competitive intensity in M&HCV axles of Automotive Axles versus American Axle, which was acquired by Bharat Forge, is there a difference in terms of axles supplied for a particular tonnage category for each company? And how do you see both these businesses operate simultaneously going forward? I can answer the first question. Probably the second question is something probably within the AAL purview and MHVSIL purview, we are not the right person to answer. So the answer for the first question is it's been approved by CCI, right? So that means due diligence has been done to ensure that we don't become a largest or monopoly as a group company. Having said that, American Axle typically plays in the light commercial vehicle or a lower tonnage vehicle, which is where we are not present. Having said that, they do have one or two products which come in the heavy commercial vehicle segment, which is where the OEMs, more than what American Axle or Automotive Axles wants to do, it's more of an OEM strategy where they are very clear that they can't keep one source of supply for axles. They need multiple sources. And apart from that, I think even the CCI report, if you see, it's very clear that we don't compete in any other segment. It's just that one specific small percentage of American Axle's product that they are catering to India. Okay, sir. Thank you. Thank you. Participants may press star and one at this time to ask a question. The next question comes from the line of Viraj from SiMPL. Please go ahead. Yeah. Thanks for the opportunity. I got disconnected earlier. So the question was a follow-up to what the participant asked. Having a promoter, having two different companies or two different company structures competing in the same space, so from a long-term alignment in the interest of minority shareholders, is there any thought between Meritor and the Kalyani Group in terms of further simplifying this or to address this potential conflict in terms of interest? Any thoughts you can give on this? No. I think like what Kishan mentioned, it is very clear that we are having a different product portfolio and interest in different product segments. However, there is one small percentage where we are having probably competing product. But again, as you need to understand that Automotive Axles is not, we are having two promoters, so there is always a check and balance. The second thing is we have a very well-defined product portfolio, our customer, and the brand value. So we continue to focus on building on those product designs, building on those brand values, and continue to meet our customer expectations. So our focus is on what we and how efficiently we can meet customer expectations and then turn those opportunities into a real business. So that way, I feel that this is a very well professionally run company. Like Ranga mentioned, there is a lot of governance mechanisms there. So I think I would say that investors, they really don't have to worry because last 43 years, this company has clearly demonstrated we have a good product, we have a good process, and we have a good strategy. And our focus is to deliver and then meet all the customer expectations and also all the stakeholders' expectations. I understand there may be no overlap in terms of competing portfolio currently in M&HCV. But is there some kind of a non-compete agreement in M&HCV between American Axle and Automotive Axles? So is there some kind of agreement which stops them completely competing with us directly hands-on in the M&HCV market? Because globally, even if you look at the kind of portfolio they have, they have other than M&HCV, they have a good coverage in M&HCV as well. Yeah. Probably Kishan can add to that. The current sale agreement, what we understand from the published sources, is it is focusing only on one set of India business and that too only domestic business. And this is not the entire global business. Right. Second question is on the e-A xle setup. Any colors you can give whether that would be rooted with a listed entity and similarly into the new technology or product interventions in the future from Meritor? Maybe in the interest of time, I'll just take it quickly. As we have mentioned earlier, at this point of time, the current domestic requirement, we already have a mechanical axle which has been fine-tuned and updated to meet the electrification requirement. This is basically most of the electric vehicles what we are seeing, not just in India, but rest of the world is remote-mount type. So we already have a product for that. And then when the new technology comes in, at that point of time, again, it is going to be a decision. We'll be looking at how efficient or how easy for us to get the technology and then deliver it to the customer. So at this point of time, I would say that it may be a little bit premature because it is not just the axle. It is a much bigger piece, including controllers, battery management, and a lot of modules. So we kind of look at it where we can be more efficient with our current capabilities and also the potential future capabilities that we are trying to build. So I think we need to wait for some time before we can correctly answer those questions. Thank you. Good luck. Thank you. Thank you. Thank you. Ladies and gentlemen, we will take that as the last question. I would now like to hand the conference over to Mr. Nagaraja for closing comments. Again, thank you very much. I really appreciate all of you taking time and then joining this conference call. And then it is also helpful for us to know your concerns and then also how we can continuously formulate our strategies so that we can always meet your expectation and, in fact, try to exceed your expectation. So like we said, the last year, we ended on a good high note. And this year, we have a very clear plan, both in terms of product and capacity readiness, but also on the journey that we have taken to transform our operation to become kind of a best in the class or world class in the next five years, and then also delivering on the promise of achieving INR 5,000 crore revenue. Once again, thank you very much, and have a great day. Thank you. Thank you. Thanks. On behalf of Automotive Axles Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.