Ladies and gentlemen, good day, and welcome to Olectra Greentech Limited Q3 FY 2026 Earnings Conference Call, hosted by Nomura. 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 the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Siddhartha Bera from Nomura. Thank you, and over to you, sir. Yeah. Thanks. Good afternoon, everybody, and thanks for joining the call. We have with us Olectra Greentech's management, Mr. Mahesh Babu, the Managing Director, Mr. B. Sharat Chandra, CFO, and Mr. Hanuman Prasad, the Company Secretary and Legal, with us to address your queries. So I'll pass on to the management for some initial opening remarks, and then we can open the floor for question and answer. Over to you, sir. Okay. Good morning. My name is Mahesh Babu. I'm the Managing Director of Olectra Greentech. Good afternoon to everybody, and I would like to give you a global brief of what is happening on the EV industry, both globally as well as in India, and particularly what's happening in commercial EV segment, and before I give my views on the Olectra Greentech performance. So globally, EV fleet is projected to be about 115 million vehicles by 2026. It's growing at a 30% CAGR year-on-year. The global commercial EV CV market is also growing at about 20% CAGR in the past few years and expected to keep up that pace in the future as well. The EV adoption is expected to displace about 5 million barrels of oil demand per day globally by 2030. That's overall a positive news of electric adoption, both in all the segment as well as commercial vehicle segment globally. In India landscape, Indian EV industry is expected to grow at a 45% CAGR, much higher than global average, up to 2030. In India, the EV volumes are expected to reach about 5 million units by 2026 and about 15 million units by 2030. EV adoption will reduce about $14 billion of import. It will offset, if we continue to grow at this rate by 2030. The commercial EV segment have been clearly growing spurt in India, fast-growing segment, particularly EV buses are fast growing. Today, we have about 16,000 electric buses already deployed in India, and the electric commercial vehicle segment has grown about 120% year-on-year. The policy support from government of India, like PM-eBus Sewa and also PM E-DRIVE schemes launched by the central government, have given multiple tenders on electric buses to be bought by state transport undertaking. And that is one of the business where we are in, and that plays an important role. Where we stand as Olectra, Olectra so far from inception, deployed about 3,600+ buses on roads, and 116 tippers. We still have a very high order book in hand. We have run about 500 million+ green kilometers, reinforcing our sustainable leadership in this segment. We have been number one in the market last financial year. Recently, CESL have released a tender, and we have become L1 in 1,785 vehicles. We are working with the authorities to convert this into order in the coming months. And if you look at Olectra's performance, we have been in the last two quarters consistently delivering quantity. Our numbers have gone up by 37% from Q3 previous year to this year Q3, from 282 to 385 vehicles. Our revenues have gone up by 30%. Our EBITDA has gone up by 17%, and our PBT is about 5%, and so on. So I would say that we have a strong delivery performance as well as financial performance in Q3. The key is consistent quarter-on-quarter delivery profitably. If you look at the market share of our products, in the electric bus segment, in Q3, we have about 29% market share, with the number one position of 399 vehicle registered in the market. Year to date, we have about 912 vehicle registered in the market, with a market share of +24%. So we continue to be number one in the electric bus segment. And we are, if you look at our EBITDA margins, are around to the tune of 14.1%, which is the best in the EV industry so far. And we continue to grow consistently quarter-over-quarter, and we look forward to improve going forward as well. So with this, I hand over the financial performance to Mr. Sharat Chandra, our CFO. Good evening, everyone, and thank you for joining us. We are pleased to report that the company has continued to deliver steady growth in consolidated revenue and profitability for the Q3 and the nine months ended December 2025, as compared to the previous fiscal year. Before I take you through the financial performance, let me briefly highlight a few key developments. As indicated in our earlier earnings call, we began to see strong, strong traction from Q2, with a meaningful ramp-up in Q3, and this momentum has continued into Q4. The company has delivered healthy operating margins across both business segments. The EV segment, the ramp-up in deliveries has driven year-on-year top line growth of approximately 23%. Margins in this segment have seen some compression, primarily due to product mix changes. As we had highlighted earlier, with increasing volume, historical margin percentages are not sustainable, though we continue to maintain healthy absolute margins. Fixed costs, particularly employee costs, have increased in line with the scale-up of operations. The financial highlights for Q3: electric vehicle deliveries stood at 385 units, compared to 282 units in Q3 of last year, representing a growth of 37%. Revenue for the quarter stood at INR 663.6 crore, registering 29% year-on-year growth, driven by strong performance across both segments. EBITDA is at INR 97.1 crore, reflecting a growth of 19% year on year. PBT was INR 64.1 crore, up by 3% compared to INR 62 crore in the corresponding quarter last year. PAT, at INR 46.7 crore, is broadly flat year on year. Earnings per share for the quarter was INR 5.65, compared to INR 5.64 last year's Q3. For the financial highlights for nine months, our revenues stood at INR 1,667.5 crore, reflecting 23% year-over-year growth. EBITDA increased to INR 246.1 crore, up by 13% compared to the same period last year. PBT was INR 166.3 crore, a growth of 5% year-over-year. PAT stood at INR 122.1 crore, registering 3% increase over the previous year. Overall, our performance reflects strong execution, improving scale and sustained demand, particularly in the EV segment, even as we consciously invest in people and capacity to support future growth. Thank you for your time. I will now hand over the call to Nomura team for the Q&A session. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. 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. Our first question comes from the line of Aniket from C.R.Kothari & Sons Stock Broking. Please go ahead. Thank you for letting me into the queue, sir. Hello. My question is regarding to working capital cycle and how we can expect it going ahead into Q4 and for FY 2026. Yeah, the working capital cycle, we have been working consciously and it is improving quarter-on-quarter. The net cap, the net working capital days is around 42 days, with a good improvement compared to the previous quarter of the corresponding year. We are working to reduce inventory levels, optimizing the stock levels. We are-- The receivable position is improving as our associate companies have got financial sanctions for the major projects. So we are working on all aspects of working capital, and we keep improving on the working capital cycle, and consistently we are looking at about around two months is what the cycle we are looking at overall in the mid-term. Okay. And my, my second question is regarding to the delivery of the buses. We are on track to deliver 2000 buses for FY 2026, whereas currently the nine months number is only around 881. So any suggestions regarding to the 2000 mark delivery? Any changes to that number, sir? Okay, we-- this is Mahesh Babu here. So we have taken a very ambitious target of 2,000 vehicles. As I told you, we are already number one in the market. The delivery of vehicle depends on market absorption, our capacity, and also other ecosystem development. So we continue to aspire to deliver so much vehicle, looking forward. But as you know already, I have given an interview in the media telling that we are looking at between 1,500-2,000 vehicles. That would be the reality, in the last quarter. Thank you. And, if I may ask, one last question, is that okay? Yeah, please go ahead. So it is regarding to the supply chain issues. Are we facing currently any supply chain issues rather than the ecosystem issues which you are already highlighted in the previous quarter? At least in the last quarter, we have not had any supply chain issues, and we don't expect that to happen in the coming quarter as well. Understood, sir. Thank you so much for the input, sir. Thank you so much. Thank you. Thank you. Our next question comes from the line of Preet from InCred AMC. Please go ahead. Good evening, sir. Thank you for the opportunity. Sir, first, I would just like to understand more about the business. I just want to understand how does SPV actually works? What would be the unit economics for the SPV? And there are different percentage ownership in the different SPV. So what determines exactly how much percentage will you keep in that particular SPV? See, as far as SPV is concerned, generally, our philosophy is to manufacture, supply, and take care of the maintenance of buses. But in certain tenders, the conditions are that where OEM are also required to have a stake. So accordingly, in such scenario, we invest. So we have about eight associates, where about we are having a 26% stake, and one subsidiary where we have 51% stake, and one JV where we have 100% stake. Other than this, we continue to work on this model, unless there's a necessity in the tender where Olectra is required to participate in the SPV. About unit economics, are SPV profitable, or how is the typical U.S. unit economics for the same? Generally, as a group, we, unless it is profitable, we don't enter into any new tenders. With a minimum IRR of more than 15% is what we look at, at the SPV level. Okay, thank you. And next question is on the numbers. I'm seeing that your insulator business is growing rapidly, and margins of the same, EBIT margins which you report, it was earlier 26%, which has increased to 32%-33%. So just wanted to have what kind of growth do you expect, coming forward, and are this 30%-33% sustainable? See, basically, insulator division, again, the margins, we have concentrated on exports. So, exports are giving healthy margins. So, due to product mix, in this quarter, the margins have improved, but, we continue to strive to improve margins. Consistently, we are seeing growth, and, I think it will stabilize around these levels. Margins, again, it depends on the mix between domestic and export. What is the difference between domestic and export in insulator business? So, about currently about 40% is export now in the turnover, what we have done. About margin-- To the top line. Insulator division. So I don't have the breakup of. I'm not able to well into the details. So I've given a. Generally, what the CFO is saying is, the margins on this quarter are helped due to some export specific, because it comes under tender and we win with competition. So it goes by competition to competition. So between last quarter and this quarter, our, our margins will remain between the two quarters. It's not expected that it will go further, and will not be retained the same, margins on insulator quarter on quarter. So, we are very happy this quarter. We are able to realize good, EBITDA margins, due to some few, export, margins. So we will strive towards it, but the expectation would, that, we will-- the market is, give margin between the 25%-30% region. Got it. And what would be your order book in the insulator business? And what kind of growth do you expect in the next two years? Yeah, about INR 300 crores plus is the order book as of now. We are continuing to grow in this business. Compared to last year, we did about INR 180 crores top line. This year, we are expecting about INR 300 crores top line. With a 15%-20% growth year-on-year is what we are targeting. Thank you, sir. I'll join back in the queue. Thank you. The next question comes from the line of Aniket Madhwani from Steptrade Capital. Please go ahead. Hello, sir. I'm audible? Yes, sir, you're audible. Please go. Yeah, so firstly, I just want the clarification on the financials. So here I can see, despite growing 28%-29% top line year-on-year, if we compare to the last quarter of the sorry, same quarter last year. And coming down to the bottom line, we can see here the numbers are flat. So what are the reasons behind? Are you facing any challenges to maintain the margin, so? Now, see, I think, this is Mahesh here. I'll explain the business strategy perspective. So last year, if you look at it, we were primarily being in the 12-meter bus segment. And if you look at this year, we are entering into 9-meter. We are, we have delivered about trucks. So this quarter, we have about 24 trucks delivery, 50+ 9-meter delivery, and remaining is a 12-meter bus. While the primary product last FY 2024 was related to 2025 was related to QT, was related to 12-meter bus. So basically, what happens is, in a stabilized segment, while you look at bus segment, bus or the division has 12-meter, 9-meter, and you have now trucks on pilot basis, we have deployed. So each one will have different margin. So some of the products are for the future. It is just entering into the new segment of EV, so the margins will be less. When it is stabilized like the 12-meter bus product, then we will get a reasonable margin. So that's why I would say that we are still growing at 30% revenues. EBITDA is good, 17% for us, growth in EBITDA, while--y eah. So that's what 19%, almost 20% growth in EBITDA is there. While the bottom is we have to work on new products, then hence depreciation will come into picture, and we borrow for the plant, what we have to do, and then interest get into it. Okay. Okay. So, can you just give me the bifurcation of 282 buses delivered? I mean, I just wanted to know how many 9-meter buses are delivered, how many 12-meter buses are delivered, and the margins that you maintain in each of your products. So, very specifically, I don't—I will not have in hand, but generally I'll tell you, out of 282 last quarter, 272 was 12-meter bus. Only 9-meter was 10. Whereas this quarter, out of 385, 24 truck and about 51 9-meter was delivered, apart from 300 12-meter. So that, that make the proportions differently. Just to give you reasonable thumb numbers right in front of you. Okay, got it. Got it. That works. And, Thank you. One just last question. Previously, you mentioned that you have around 10,900 bus tender. So, is there any date on regarding that? So the 10,900 bus tender was were already concluded, and we have become L1 in 1,785 buses. That's what I have told in the brief. And this we'll have to work with the authorities to convert into orders. It is expected another three months this process will continue, and we hopeful that we'll get that order going forward. What is your current capacity? See, you know, we have declared the DCCO for our phase I of the plant. It is for 2,500 vehicles per shift, per year capacity, and we can do double shift to achieve about 5,000 per annum. If needed, we can, in fact, increase the capacity as we need to higher numbers, depending upon the market absorption, we can do that. Okay. Done, yeah. That's it for me. Thank you. Thank you. Thank you. The next question comes from the line of Akash Srivastava, an individual investor. Please go ahead. Yeah, hi, sir. Good afternoon. Thanks for giving me the opportunity. I just want to understand, is there any specific reason why deliveries in Jan was only 55 numbers, as is what, shown in the Vahan portal app? See, the Vahan portal alone is not the number we are delivering, because Telangana is not part of the Vahan portal. January, we delivered, we built around 115 vehicles, and many of them are Telangana. So, you have to look at Vahan plus Telangana, that is available in a separate site. That depends on, where the other competitors deliver the vehicle. That is okay. But still, if you are saying that we are having a capacity of 200+ numbers, none of the months that I've seen, you've been able to reach even 150. So is there any specific reason why? I mean, you may say that, yeah, the market is not absorbing and all those things, but any other reason, I mean, that you want to share with us, except this? See, I just want to give you, first, we'll have to understand that we are number one month-over-month, quarter-over-quarter, year-over-year for the last two years. So that means we are very clearly, market can absorb. If you look at the market size of electric vehicles, buses, last year was about 3,800 vehicles, right? So, market can absorb only that much, depending upon electricity, finance availability, depot readiness, STU route finalization, plus our manufacturing capacity. So what I can tell you is, we are number one in terms of delivery of electric buses in the market. If market can absorb more, we are also driving like you. We are also driving the market to absorb more, and when we drive it, we are number one, and we wish that they will be able to deliver more. So while the capacity is for the future, coming when the market is ready to absorb, our efficiency still remains at optimum, that we are able to deliver when we want it, because our pipeline is less than 15 days in terms of vehicle finishing to the deployment into the depots and to the operations. That's where we are still at, number one in terms of delivery, operations, and optimization of the operations, which market can absorb. Sure, sir, but, frankly, I mean, with respect to what, the markets have told today, you might have understood how the investors are feeling about the results that we have. Right? Nonetheless, my second question is with respect to Q2. I, I suppose we delivered around 330, 340 odd buses, right? In Q3, we have delivered around 385 numbers. That's what we have been told. But in terms of top line growth, I can see just maybe INR 6 crore -INR 7 crore difference. So is it because of the product mix between Q2 and Q3? 50 numbers difference, but the, top line is only maybe INR 6 crore. The other Q3, we have delivered 375 vehicles. Okay. Q4-- we, Q2, we have delivered 375 vehicles, and Q3, we have delivered 385 vehicles, so it's only a 10 vehicle. Okay. I mean, then my mistake. Sorry. Yeah, that's it from my side. Thank you. Thank you. Thank you. The next question comes from the line of Shubham Tamrakar from Alturas. Please go ahead. Hi, sir. Am I audible? Yes, please. Yes, sir. Yeah. Thank you. Sir, I have a question regarding operational cost. So given that we are making investment and we are expecting revenue growth over the period of time, how are operational costs will change? Will it increase the same as revenue will increase, or will have a cost advantage? See, till now, we have been investing in the plant, and our operational cost is to make this monthly production. We are optimizing manpower and other services to the tune of what we are making. Going forward, capital investment will not be very intensive till we achieve 5,000 vehicle per annum. It's only a variable cost which will increase. We have to increase manpower into shifts and deliver the products and other things. Capital will not be exponentially required or proportionately required. We need only to maintain that and deliver. And CapEx investment will be not needed much till we achieve 5,000 products, but variable cost of manpower increase and others will be, like, electricity, manpower, water consumption, will be proportionate to the number we are making. Okay, that was helpful. Do we have any CapEx plan regarding for CapEx in the next one, two years? Yes, of course. Automotive industry is capital intensive, you all know that. We are developing products. As you know, we are developing new platform, 12-meter. We are developing new platform, 9-meter, and we are entering into the truck segment, so we have done a pilot with 116 vehicles now. But the market is going to grow, so we have to get prepared with multiple products in products. So the CapEx would be for developing new products, for increasing the new markets and entering into new segment and increasing our volume. Because if we continue to sell in the same segment, we will not have much growth, and you all want exponential growth, so that will come from new products, and we continue to invest on our new products technology in the coming next two years. Yeah. Do we have any numbers, sir, regarding CapEx like this? See, I, we are working on it, so what I can tell you is, we will be investing about INR 300 crore-INR 350 crore in terms of CapEx for new product development in the coming year. Okay. How we'll capitalize this over the period of time? It will be over a period of two years. Okay. And, sir, regarding the I just request one thing that it would be great if you share in your presentation also regarding the auto mix between 9-meter, 12-meter, and truck, which we deliver every quarter. That would be very helpful for us to understand also. Okay, we will try to add that in the future. Do you have any visibility right now, like, in the next, like, next year, how the mix will change? Depending upon which STUs, which depot getting ready. But I can tell you that, in the Q4, we will have a reasonable mix of, coach and 12-meter. That's what we are expecting, as per our plan, but if any STU suddenly asks 9-meter, we can't say no, so we'll have to get prepared for that as well. Okay. Yeah, thank you. Thank you, sir. That was from my side. Okay. Thank you. The next question comes from the line of Sunil Parvathaneni, an individual investor. Please go ahead. Hi. Am I audible? Yes, sir, you're audible. Yeah. So actually, like, we have a plan of deploying the robotics, right? So by when we can complete the robotic deployment for production? See, we have decided to do a semi-robotic line. The semi-robotic line will be ready by end of this calendar year, and which will be last quarter of the coming financial year. The phase one, whatever we have declared capacity, is without the semi-robotic line. The semi-robotic line will come as part of our new products, which are coming to handle the 12-meter, 9-meter, truck, everything together. We need that for that, and that will be ready by last quarter of the coming financial year. Any new product launches like trucks and cars, anything? See, we will come back to you. It will be too premature to tell what it is now. So, you know, as per guidelines, we'll come back to the market whenever we are ready with the products, in the future. Okay, thank you. Thank you. Thank you. Your next question comes from the line of Gaurang from Utility Unified. Please go ahead. Good afternoon. Am I audible? Yes, sir, you are. Yeah. Thank you for giving the opportunity. So, with reference to the Indian Express article, which is dated October 30, 2025. Mumbai BEST is exploring legal route for non-delivery of electric buses. So can the management on record confirm that it's BEST which is not handing over the depot, or is there some other issue with respect to the two orders? The first order, which is of 2,100 buses, and the second order, which is of 2,400 buses. And why I'm asking this question is because, as far as I know, there in the last six months, we have hardly done any deliveries to BEST. Approximately, say, 200 or 300 buses in the last six months, which is a little bit disappointing and concerning as well. Just want to hear from the management about this issue. Okay. Firstly, we have not got any legal notice from BEST. BEST, we have engaged on two, three fronts. It's not about depot readiness or something. On the BEST front, there is a request from us to BEST that the electricity consumption and the loading pattern of the vehicle is much, much higher than the tender requirements. Assume tender is asking for 58 people, that we are seeing 100+ people coming into the one, because of which there is a substantial electricity consumption, which we have represented to them to compensate, by which we will be able to improve our delivery. So that discussion is going on with BEST. I hope they will resolve that quickly, because as an entity, as an investor to you also, we will not be able to do any order which is not as per tender and which is loss to the company. So we are continuously engaging with BEST to highlight this issue, and they recognized and accepted, yes, the consumption is higher due to utilization of the bus with higher capacity than the tender requirement. We are only finding it how to resolve it within the legal framework. Once they resolve it, our number, delivery will be faster than expected, because we don't want to lose money without this resolution. Thank you so much, sir, for the clarification. My only other question is: so there's an upcoming CESL tender of 3,000+ buses for various cities like Mumbai, Pune, Hyderabad. So is Olectra going to participate in that tender as well? Yes, we are right now planning to participate in the coming CESL tender. Okay, sir. Thank you for the clarification. Wishing you all the best for the final quarter and the years coming. Thank you. Thank you. Thank you. Your next question comes from the line of Sandeep, an individual investor. Please go ahead. Sir, considering our long order book, how is our capacity creation planned in future? Because still we have not achieved this 2,500 completely. Hi, thanks for the question. Right now, we said we are, we have a capacity about 2,500 per shift. While the investment and the civil and the equipment are prepared for 2,500, we have manned only to the requirement of the capacity which we are producing. So we will utilize the full capacity of 2,500 per shift, according to me, when the market can absorb in the coming financial year, and the FY 2027. That's what we are expecting. And as you know, any auto industry capacity, gross capacity is ex. Normally, industry works around 80%-85% of the net capacity, because there will be day-to-day supply chains and matching and things like that. Normally, auto industry works on the gross capacity to the tune of about 85% of net capacity. Okay, sir. Thank you. Okay, thank you. The next question comes from the line of Preet from InCred AMC. Please go ahead. Thank you for the opportunity once again. Sir, you have mentioned in the annual report of around INR 750 crores of CapEx, which we were planning. Out of which, how much has been done, and how much we are, we are planning in next two years? And is this apart, other, apart from the INR 350 crore CapEx, which we have mentioned to the previous participant? Okay, just to clarify, the INR 750 crore was the intent to invest for the complete capacity to achieve 10,000 volume in the production capacity. However, as I said, we have decided to optimize the investment, and we have already achieved phase I, so we have decided to do in phase I, phase II. Phase I of 2,500 into II, which is 5,000, is achieved now and it's getting into production. We will only kick off the next phase of investment, of the remaining investment, only when we achieve this 5,000 in the market, net, gross, and then, because we need only... The land is available, we can have, we can build additional line within a period of 12 months. We'll kick off that once we see the market in the future. Okay, got it. How much CapEx you have done till now, till first nine months in FY 2026? It's about close to about INR 400 crore. How much? Sorry, I missed. About INR 400 crore. Okay. My next question is on the line of quarter three numbers. We have seen that the employee cost has been reduced drastically from INR 25 crore - INR 30 crore to INR 20 crore. What was the reason behind the same? The manpower cost, you are asking? Yeah, yeah. See, what we have done is, see, earlier, we used to pay for the service manpower, which used to be available in the market. Now, we find that there are technicians available in the depot, and by our customer directly paying for such technicians, we are able to save some GST. So we have asked the customer to directly pay such technicians in the depot. So are we giving that money or they are bearing, the customer is bearing that money? No, whatever they were supposed to, customer is supposed to pay us for this employee. Now they are paying directly for this technician, so that we will get, we'll not have any GST impact on that. So, it will come, it will go from our one, it will go to customers, pay out there, and they will pay the remaining to us. So net-net, there is no impact to us. It is a payment method directly by our customers to technicians in the respective depots. Got it, sir. And my another question-- Hello? Yes. Hello. Yeah, my other question is on the line of debt. Despite having lower debt on the balance sheet, we have a higher finance cost of around INR 20 crore -INR 25 crore per quarter, INR 20 crore, INR 15 crore, INR 20 crores per quarter. Can you explain the nature of this payment? Basically, we have availed term loan, so those interest costs are now coming in. So, pre-capitalization, interest has been capitalized. Now, post-capitalization, the interest cost is coming to the P&L. That is one aspect. And then, one of the primary interest cost is all the LC discounting and BSS discounting. So we are working on it to reduce those costs. In the near future, we are trying to optimize the mechanisms, and we are expecting at least some improvement in the interest cost in terms of rate. What is the average rate on which we get a term loan? It's about 9+. Okay. Thank you, sir. Thank you. Thank you. Your next question comes from the line of Aniket from C.R. Kothari & Sons Stock Broking. Please go ahead. Hello, thank you for having me once again. My last question would be regarding to the, Hello? Yes, please. Please, go ahead. Hello? Yes, please, go ahead. Aniket, sir, please go ahead. You are audible. Yeah. So my last question would be regarding to the facility coming online. What would be the expected increase, tentatively regarding the depreciation in the next few quarters? Tentatively, it is likely to be this quarter. We have a depreciation about, on a standard basis, about INR 9.2 crore. So, it will be slightly 10% growth, the depreciation, once we complete all the capitalizations. Thank you so much, sir, for the-- Thank you. Your next question comes from the line of Rishabh Sanghvi from Oaklane. Please go ahead. Thank you so much for taking the time. I had a question on the private sector participating in the electric bus movement. So far, most sales we are seeing is with the public sector. Can you comment on why the private sector has been a little slow to adopt electric buses so far, despite favorable TCO? Yeah. So that's a very good question, because right now, the PM E-Drive, PM-eBus Sewa, everything is favored towards subsidy towards state government undertaking. There is no subsidy from for the private sector. However, TCO for private sector, which is intercity, is very favorable. You know, intracity is not privatized so much in many cities. Intercity is privatized. Intercity, there are customers in private. For example, the Fresh Bus is running our vehicle in Hyderabad to Bangalore, the route, and they are successfully running. They have run about 800,000 kilometers already with our vehicle. They are profitable. And, one of the challenges, what I understand from them, is private players who are in the operations of the buses are not worth enough to take bank loans to-- for a large number to fund the EV buses. So we are also working with the government as well as some private entities who will fund them. For example, there are players who are NBFCs, who are non-NBFCs, like, Macquarie Capital, have given about some line of credit for EVs. So we are working with them. Slowly, the shoot is coming. We have delivered about eight buses to Microsoft for employee transport for a private player in this quarter. There are some minor shoots. I am seeing it will take about a year or so, as per me, to, for this finance sector to gain confidence on the private players, and hence it will become a adoption kickoff. Thank you, sir. And one last question from my side. In the recently announced budget, it seems like only 1,500 buses are accounted for in PM-eBus Sewa in FY 2027. Given that naturally more than that number of buses have been tendered in the last year, can you comment on why this budget allocation is so low? See, the budget allocation is for 1,400 buses, which they have tendered in PM-eBus Sewa. PM E-DRIVE is different. That 10,900 is the PM E-DRIVE. PM E-DRIVE will get a direct subsidy of INR 35 lakh or INR 25 lakh, depending upon the vehicle, when STUs deploy the buses. PM-eBus Sewa, they will get about INR 24 per kilometer, approximately, I think so. Every month, every year for 12 years. So it's two different schemes. Got it. Even in PM-eBus Sewa, there's also a PM payment security mechanism, right? So is there a separate budget allocation f or this, for payment security mechanism? No, there is no need for a separate budget allotment, because the payment security mechanism is, if the state government doesn't pay, central government has the authority to intervene through RBI from the central government allotment to the state and deduct the fund and pay it to the operator. That's the security mechanism. It's mainly a mechanism for giving confidence to the financiers who are financing these projects for our operators. I don't think I have any case where STUs have never paid any operators. They only delay it, but default I have not heard in my lifetime. Got it. Government defaulting anybody, anywhere. Thank you so much. Thank you. Your next question comes from the line of Rahil S from Sapphire Capital. Please go ahead. Good evening. Can you hear me? Hello? Yes, sir, you're audible. Yes, hi. So firstly, Yes, hi, sir. So I'm not able to understand. So you say you have an order book in hand of 9,400+ buses, correct? Yes, please. So, if these are confirmed orders, I'm just trying to understand, then why is there no, you know, why are we not selling as much in each quarter to complete a target of, you know, like the 2,000 units in FY 2026, which you had given? And if you're still guiding for the same, like around 1,500 to 200,000 vehicles in the year, then are you very confident that you will be able to cover up in quarter four? I'm just trying to understand how it works, you know, in the deliveries. Yeah. So I have answered this earlier. I will again answer it because I would request all others to hear as well. See, the order book gives you that if the depots and the ecosystem is ready, then we'll be able to deliver to that extent. So if you say 9,000 order book, that means we have 2-2.5 years order pipeline available, one. Second, you can't deliver 9,000 immediately. There are cases where our competitors had 600 buses waiting for six months in Delhi for deployment. 600 buses is close to INR 750 crore -INR 800 crore. We can't afford, as Olectra Greentech, to keep INR 800 crore wait for six months, and then our working capital and all this will become a headache. So the reality is, we have to make the vehicle what market can absorb, and if market can absorb more, we will make more. So we are prepared from plant perspective that we can serve the market to the need, what they want. And we are also prepared from front end that we have enough orders, so we don't struggle for next one or two years to get more orders, to deliver what plant capacity needs to be there. So again, that's why I said we are number one in bus registrations in India, year to date. That means we are delivering more buses than any competition, e-buses, electric buses, than any competition in India. So that clearly says that we are efficient, better, and working, managing working capital well, and also serving the market well. This is how you should take, not just go by the order book number. So if you say, so- It's like, it's like airline industry. Boeing has a 7,000 order. They will deliver for next 15 years. They can't deliver, they can't increase the capacity and deliver Boeing in 15, in 1 year. So that's, that's how we have to look at. Okay. So for quarter four, you are saying you'll be able to complete the yearly target. Is that because of the market, you know, acceptance of deliveries? Or is this just your, it's still just your, you know, view that if the market gets better and is able to absorb, then only we deliver, or is that a surety? So, our view is right now, we'll be able to finish about between 1,500-2,000 buses this year. That is the target, which market will observe in this quarter. But still, our aim is always we want to be number one in the country. Okay. With regards to the insulator business, you said, this year you plan to achieve or you expect to achieve INR 300 crore top line, correct? That. Yeah, that is the expectation, yes. Expectation. And what about, like-- So the yearly growth, how much did you say, which you can do year on year in that business? See, about 10%-15% is what the growth we are expecting this. Because there's still a government push on electrification, so we see good potential. And on a consolid-- Yeah. Please, please. Yeah. Please, yeah. Okay, and overall consolidated margins, any range you would like to give? Steady state. I think we have mentioned in the past, we have mentioned in the past, we are basically working on healthy operating margins. We continue to deliver, healthy operating margins. Over the long term, we expected to, stabilize around 10%-12%. Currently, we are at +14%. Okay, sir. Thank you, and all the best. Thank you. Thank you. Your next question comes from the line of Gaurang from Utility Unified. Please go ahead. Hi, am I audible? Yes, sir, you are audible. Okay. Yeah, so my question is with respect to the evolving electric vehicle technology, sir. So there are largely four things which I can think of. Firstly, there are solid state batteries which are coming, second is sodium batteries which are coming, then third is megawatt charging, which is already established in China, and then there is battery swap, which is now quite, getting quite trendy in China. So my question is, sir, how is Olectra foreseeing these four things, especially in the commercial EV segment? Yeah, thank you for the question out of investments and financials. Actually, you are right. The EV industry has a lot of innovations going on parallelly while the product production of existing technologies continue. So we are closely monitoring three, four technologies. As you said, solid state battery, sodium ion battery. We know that CATL has productionized sodium ion battery for commercial applications, but most of them are in a pilot stage, and most of them are in a stage where it is at primary production stage. It has not reached the mass production stage. So we are closely monitoring this technology. We have now-- Sorry to interrupt, Gaurang sir. The line for the management has been dropped. Please, please stay connected while we reconnect the line for the management. Ladies and gentlemen, thank you for patiently holding. The line for the management has been reconnected. Yes, sir, please go ahead. Hi, this is Mahesh here again. Sorry, I don't know what happened technically, the line got cut. So I was talking about sodium ion, I'm talking about this solid state battery. We have a very clear technology evaluation process, where we evaluate technology, at what stage they are in, whether it is in primary stage, pilot stage, pre-production stage, and mass production stage. So right now, lithium-ion batteries are in mass production stage. Most of the other technologies you said are in pre-production stage or at pilot stage. So we will constantly monitor, and we can plug in and change them as we want, and clearly, we will have a plan to de-risk our business in case of any change in technologies or change in systems. We are well prepared to handle it. Hello? Thank you, sir. The line for the current participant, Mr. Gaurang, has dropped from the queue. We'll move on to the next question. Our next question comes from the line of Shubham Tamrakar from Alturas. Please go ahead. Hi. Thank you for giving this opportunity once again. Sir, I just wanted to understand again on CapEx. I just have a little bit—I want some little bit clarity more on that. So you said INR 300 crore -INR 350 crore in CapEx in the next two years, right? Yes. On the new products, almost. On the new products, okay. Our capitalization plan for the same? Yes, yes. We'll capitalize it year on year. O kay, and sir, one more thing. Given that our product mix is changing, like we are changing our product mix, so how this will affect our EBITDA margins in the next two, three years? As CFO has already said, the auto industry has had, is at a 10% EBITDA level, and you know, most of the EV in the EV, our players are much lower than that. We are very happy because of our product. We are able to maintain about 14%. In long term, we are looking between 10%-12% as margin and as a business. When we grow high, we can't expect high volumes and high margin business. There is no such business available. So we'll be more and more closer to the industry or better than industry. All that I can tell you is we'll always be better than the industry. But going forward, when the volumes grow up, when we become main players, like diesel vehicles, if your diesel vehicle is selling about 100,000 vehicles, we will inch towards it as industry. When we go towards it, the margins will shrink, but absolute numbers will be very high. Okay, thank you. Thank you. The next question comes from the line of Preet from InCred AMC. Please go ahead. Thank you for giving me opportunity once again. My last question will be, one more question would be on the line of the, buses guidance for the delivery and next year, what we are expecting. Like, for example, now management has guided of around 1,500 to 2,000 buses delivery by the end of--b y FY 2026, and in 10 months, we have done around 1,700 buses. So are we expecting more than 200 buses delivery per quarter, per month, in next two months? That is our aim. We are looking at something like that, what you are speaking for, next year. What are we guiding for next two years, 2026 and 2027? What are our estimates? See, I told you the EV industry is at a CAGR of +30%, and we will be better than that. As Olectra, in the last three years, we have been outperforming the EV industry in terms of the segment where we are in. Our aim is to continue to do that. Exact number, I don't want to put some number on the table, because there are a lot of research work goes on market adoption and how we are going to position. We'll continue. Our aim is to continue to be number one and outperform market in terms of CAGR growth. Thank you, sir. That was helpful. Okay, thank you. Thank you. Your next question comes from Gaurang, from Utility Unified. Please go ahead. Am I audible, sir? Yes, sir, you're audible. Hello? Yeah. Yes, sir. In the recently conducted a Telangana Rising Summit, we have seen, like, Olectra or the MEIL Group showcasing a car, and that car was very much similar to a Chinese car called a Skywell ET5. So my just my request is that if Olectra or MEIL Group is venturing into EV, we can explore more key important key OEMs like Xiaomi, then there is NIO, then there is Xpeng, and then there is BYD. These are, like, top four of the Chinese OEMs. So my request to you to, sir, is that we can explore partnership with these four companies. So, sir, any comments on that? No, thanks for your suggestion. There is no comment on it. I only thank you for giving such suggestion. Okay, sir, thank you. Thank you. The next question comes from the line of Aniket from C.R. Kothari & Sons and Stock Broking. Please go ahead. Thanks for giving me a chance once again. My final question would be regarding to the current nine months order book. What are the numbers which are--w here are we standing right now in terms of order book? In terms of order book, we have 9,000+ orders, pending orders. We have delivered till now more than 6,000, 3,600 numbers. So, and as already clearly given, message by our MD, so the deliveries will be in line with the adoption, in line with the readiness, in line with the depot infrastructure, everything ready. So we are capable of delivering as per the market adoption. Thank you so much for the prompt answer, sir, and wishing Olectra the best quarter ahead. Thank you. Thank you. Thank you. As there are no further questions from the participants, I now hand the conference over to the Olectra management for closing comments. Yeah. In conclusion, we would like to thank all our shareholders and stakeholders for their continued support, patience, and confidence in the company's growth journey. As we move into quarter four, we continue to see healthy demand momentum, particularly in the EV segment, supported by the ongoing ramp-up in deliveries and stable order visibility. We expect this momentum to translate into strong sequential performance and revenues, while margins are likely to remain broadly stable, factoring in product mix dynamics and operating leverage from higher volumes. Overall, for financial year 2025, 2026, we remain cautiously optimistic and expect to deliver healthy growth in consolidated revenue and profitability, driven by execution discipline, improving scale, and sustained demand across our key segments. Before we close, I would like to highlight that some of the statements made today are forward-looking in nature and are based on our current expectations and assumptions. Actual results may differ materially due to various risks and uncertainties, including market conditions, supply chain dynamics, regulatory changes, and other factors beyond the company's control. Thank you once again for your continued support. Thank you, investors. Thank you, thank you for your continued support to the company and the management. Thank you. On behalf of Olectra Greentech Limited and Nomura, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.