Ladies and gentlemen, good day and welcome to Uno Minda Limited Q1 FY26 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sunil Bohra, Group Chief Financial Officer, for his opening remarks. Thank you, and over to you, sir. Good afternoon, everyone, and a warm welcome to all the participants. On the earnings call today, I am joined by my colleague, Ankur Modi. We have uploaded our financial results and investor presentation for Q1 FY26 on the stock exchanges and our company's website. We hope everybody had an opportunity to go through the same. I would like to begin by giving some insights on the economy, followed by the current scenario in the auto industry and our financial and operational performance for the quarter, post that we will open the floor for Q&A. The global economy has shown remarkable resilience in 2025, though it faces increasing headwinds from trade tensions and geopolitical instability. The IMF projects global GDP growth at approximately 3% in 2025 and 3.1% in 2026, modestly higher than earlier forecasts. However, growth remains below pre-pandemic averages, and there are risks of further trade escalation loom large. One of the main sources of disruption has been the sharp escalation in U.S. tariffs, especially on imports from China, Canada, and Mexico. According to a CEPR analysis, these measures could reduce U.S. real wages by 1.4% by 2028 and shave about 1% off GDP. Similarly, Citi Research and Morgan Stanley warn that elevated U.S. tariffs are inducing structural distortions in the global economy and dragging on the long-term growth expectations. Major economies are now diverging in momentum. U.S. growth is weathering the storm but slowing, with projected real GDP at around 1.5% in 2025, down from nearly 2.8% in 2024. Europe's growth is weak and fragmented, while China is decelerating to approximately 4% in 2025, constrained by both external and domestic structural factors. In contrast to global moderation, India's economic growth remains robust, standing out as the fastest-growing major economy. The IMF projects GDP growth at 6.4% in both 2025 and 2026, well ahead of global peers. The RBI also maintains a bullish outlook, projecting around 6.5% growth for FY26, supported by strong domestic demand and prudent fiscal management. India's continued outperformance is anchored by several factors: a demographic dividend, rising urbanization, and a concerted push on Make in India infrastructure investment and digital transformation. These structural strengths are reinforcing its macro resilience amid global uncertainty. Moving on to the automotive industry, for the quarter ending June 2025, the Indian automobile industry recorded a year-on-year volume growth of 2%, with total production reaching around eight million units. The growth was largely supported by record export volume growth, while domestic consumption has declined year-on-year basis. Moving on to the PV industry, in Q1 FY26, the total PV production volume registered a year-on-year growth of around 3%, reaching 1.24 million units. Within this, the utility vehicle segment stood out, underscoring continued strong consumer preference in this category. Contrary to domestic market, export grew by 13% to 2.04 lakhs. Looking ahead, the segment remains cautiously optimistic. Gradual recovery is anticipated in the coming quarters, driven by the upcoming festive season and expected improvement in rural incomes following a favorable monsoon. Export momentum supported by international demand is also expected to play a vital role in the sector's performance moving forward. In Q1 FY26, the two-wheeler segment recorded a year-on-year margin growth of 1%, with total production reaching approximately 5.9 million units. The bright spot was export of two-wheelers for the quarter, reaching 1.1 million, growth of around 23%. The growing exports for both PV and two-wheeler reflects our competitiveness, quality, and technological competence. The three-wheeler segment recorded a robust growth of 10.4% in Q1, primarily driven by strong demand for passenger carriers. The EV segment continued its upward momentum in June 25 quarter, with volumes sitting around 5 lakhs units. Strong consumer adoption, supported by a wider range of models and improving access to charging infrastructure, has been a key driver of this growth. Electric two-wheeler registration during the quarter was estimated to be around 2.98 lakhs. The electric three-wheeler reported record growth in registration of 27%, reaching 1.9 lakhs units, while electric passenger vehicle quarter registrations were around 38,000. Looking ahead, the automotive industry looks cautiously optimistic. Key macroeconomic indicators such as anticipated above normal monsoon, which are expected to bolster rural incomes, and the cumulative 100 basis points cut in the repo rate over past six months offer meaningful tailwinds. The India-U.K. Free Trade Agreement offers significant opportunities for the Indian automotive and auto component industry, while FTA also opens up the India market for U.K. imports. However, we don't foresee significant competition as domestic manufacturers remain cost competitive. Moving on to financial and operational performance for the quarter, you can refer to slide numbers 7 and 8. Uno Minda delivered a strong financial performance in the first quarter FY26, driven by broad-based growth across multiple product segments. Consolidated revenue from operations for the quarter stood at INR 4,489 crore. This includes certain incentive incomes amounting to around INR 69 crore pertaining to the prior period. However, for the purpose of line-to-line comparison from corresponding quarters, we have excluded the same from revenues due to impact to derive normalized growth. Consequently, revenues from operations excluding such prior period income was INR 4,420 crore, registering a robust 16% year-on-year growth compared to INR 3,818 crore in Q1 FY25. This performance reflects healthy traction across four product lines such as switches, lighting, acoustics, and casting systems, along with accelerating momentum in emerging segments including sensors, mirrors, and controllers. Adjusting for the prior period income, normalized EBITDA stood at INR 474 crore, broadly in line with the revenue growth while maintaining stable EBITDA margins of around 10.7%. It is worth noting that these margins were achieved despite the impact of annual cost escalations and manpower cost increases, which are above industry averages during the quarter. Finance costs rose to INR 44 crore, primarily due to increased borrowing undertaken to fund ongoing CAPEX and working capital requirements. Depreciation expenses also increased by INR 18 crore, reaching INR 159 crore, reflecting the commissioning and capitalization of new facilities over the past year, including the full lighting plant at Khed City and the additional 2 million capacity expansion at the two-wheeler facilities in Supa. Share of profit from associates and joint ventures rose to INR 47 crore in Q1 compared to INR 37 crore in the corresponding quarter last year. This improvement was primarily driven by the strong performance of TG Uno Minda and Uno Minda, while results from Roki and TRMN remained steady. Profit after tax attributable to shareholders stood at INR 291 crore. On a normalized basis, that was INR 239 crore, reflecting a healthy year-on-year growth of 21% over INR 199 crore in Q1 FY25. Coming to the business segment-wise performance, you can refer to slide number 11. The switching system business continued to deliver an outstanding performance in the quarter, contributing significantly to Uno Minda's overall revenue mix. The segment reported revenues of INR 1,111 crore during the quarter, marking a 16% year-on-year growth and accounting for a substantial 25% of company's consolidated revenues. The growth was fueled by multiple drivers. Export performance remained particularly strong in the two-wheeler switch category. Export in this category reached new quarterly run rate of INR 68 crore, reflecting our globally competitive and robust switch systems. We are pleased to report a new export order from a U.K.-based motorcycle manufacturer for supply to their France plant, further validating our global capabilities. The relocation and expansion of a four-wheeler switch operation under Mindarika from Manesar to Farukhnagar is progressing as planned and is expected to be commissioned by Q3 FY27. During the transition, we anticipate a temporary overlap of costs as we manage operations across two plants. Nonetheless, this move will enhance our operational efficiency and capacity over medium to long term. The lighting system business continues to be a cornerstone of Uno Minda's growth trajectory, delivering another robust performance during the quarter. The segment reported revenues of INR 1,013 crore, contributing a substantial 23% to the company's consolidated revenues. This reflects a healthy 13% year-on-year growth compared to INR 894 crore in Q1 FY25. The strong performance was primarily driven by ongoing transition to LED technology and increasing customer demand for advanced aesthetically appealing lighting solutions, particularly in the front and rear lamp applications. Our European lighting operations continue to elevate their position as a technology leader and have recently secured an order from their next-generation dynamic logo projectors from a leading luxury automotive OEM. Looking ahead, the business remains sharply focused on expanding its portfolio of next-generation lighting solutions, which includes projector headlamps, dynamic logo projectors, ambient lighting, and adaptive lighting systems. The casting business delivered a robust performance in the quarter, generating revenues of INR 824 crore, which accounted for 19% of the group revenues. This included INR 431 crore from the four-wheeler alloy wheel business, INR 243 crore from two-wheeler alloy wheel, and INR 149 crore from aluminum die casting. This growth was driven by commissioning of new capacities, including a 30,000 wheels-per-month line at a four-wheeler alloy wheel facility in Bawal, and an additional 2 million wheels-per-annum capacity at a two-wheeler alloy wheel plant in Supa. Construction of a greenfield four-wheeler alloy wheel facility at Kharkhoda is progressing well. The first phase with a capacity of 60,000 wheels per month is expected to be commissioned in Q2 of the current fiscal year. Our seating system business continued to contribute meaningfully, recording revenues of INR 320 crore in Q1 FY26, which represents 7% of consolidated top line. The segment delivered a strong year-on-year growth of 18%, primarily driven by diversification of customer base for two-wheeler seats. Looking ahead, we expect the seating division to maintain its growth momentum, backed by exports to new customers, supply of suspended seats to more customers in the domestic market, and volume growth from newly added customers into the seat business. Acoustic segment reported revenues of INR 187 crore in the quarter, contributing a steady 4% to consolidated top line. The European automotive market continues to experience volatility, with muted demand impacting the acoustic segment. The decline is attributable to both softening end-market demand and shifting OEM preference from dual-horn to single-horn configurations, which has resulted in overall content per vehicle. We are actively pursuing multi-cost strategies, including improving efficiency and productivity and driving cost optimization across manufacturing and sourcing in an effort to revive the profitability of our European acoustic business. Moving to other product segment, which delivered a strong performance, generating INR 966 crore in revenues during the quarter, registering year-on-year growth of 30%, contributing 22% to the consolidated top line. Within this, controllers contributed INR 147 crore, sensors and ADAS INR 215 crore, blow molding INR 110 crore, Uno Minda FRIWO JV around INR 78 crore, and the alternate fuel business around INR 110 crore. The remaining revenue was driven by aftermarket trading, external sales from Uno Minda Katolec, engineering services in Europe, and battery sales in the aftermarket channel. The controller business, primarily supplying wireless chargers and EV components for electric two-wheelers and three-wheelers, continued to grow due to increased penetration of wireless chargers and rising EV fuel volumes. Notably, during the quarter, we commenced commercial sales of EVSE, i.e., home charging solutions for electric four-wheelers. These units are currently being supplied to dealer kits to build market inventory ahead of the model launches. OEM deliveries are expected to commence in the next three-to-four months, in line with the associated model launches. At present, EVSE production is managed under the controller division. Our sensors and ADAS business also performed exceptionally well, driven by increasing demand and localization efforts. A key highlight during this quarter was the commissioning of our new camera module production line. We are proud to share that Uno Minda has become the first company in India to localize camera module production for RPAS, SPAS systems, components that were previously fully imported. Commercial supplies have begun, and we anticipate a ramp-up in volume in the coming quarters. Electric mobility remains a central pillar for our growth strategy. Our integrated EV offerings for electric two-wheelers, including chargers, BMS, controllers, sensors, continue to gain momentum. During the quarter, we completed the acquisition of the remaining 49.9% stake in EVSPL, our joint venture with FRIWO. Additionally, Uno Minda acquired the IPR R&D team and technical know-how related to e-Drive technologies, including control hardware and software for FRIWO operations in Germany and Vietnam. This strengthens our in-house capital capability to scale and innovate across the electric drivetrain value chain. We would also like to inform you that the Board of Directors has granted in-principle approval for the acquisition of remaining stake in our JV, Uno Minda Bühler Motor Private Limited. The acquisition will be executed in one or both phases, subject to mutually agreed terms. The Board has authorized an M&A committee to determine and approve the final purchase considerations and other agreed terms of the target fund. Discussions with our joint venture partner, Bühler Motor, are currently underway, and we expect to finalize the agreement over the next few months. While our direct dependence on rare earth magnets is limited, we have witnessed some indirect impact due to reduced volume from OEMs, specifically in the EV two-wheeler segment. Nevertheless, we are mitigating this through alternative sourcing and close collaboration with our OEM partners. We are pleased to inform you that the construction work has commenced on our new greenfield facility for high-voltage EV powertrain components under our JV with Inovance Automotive. Phase I is expected to be commissioned by Q2 FY27. However, to cater to OEM demand, we may commence usage supplies via imports from our joint venture partner ahead of the plant's commissioning. As previously communicated, the JV with Uno Minda requires regulatory clearance. We have now formally applied for various approvals and are actively engaging with the regulatory authorities to address any queries and expedite their approval process. Moving to the aftermarket industrial revenue, I think you can refer to slide number 14. For the quarter ended June 25, our aftermarket business reported revenues of INR 329 crore, contributing approximately 7% of consolidated revenues. In addition to these direct aftermarket sales, several of our business verticals also provide components to the spare parts division of OEMs, which has seen notable growth in recent years. With OEMs increasingly focusing on strengthening their aftermarket presence, our SPD-linked sales have scaled up significantly. During the quarter, the SPD sales stood at INR 248 crore. The combined revenue from aftermarket and SPD channels amounted to INR 577 crore, reflecting the growing importance of these segments in our overall business mix. Our industrial business contributed approximately 11% of total revenue during Q1 FY26. While sales from certain geographies, such as Europe, witnessed some decline, this was effectively offset by robust growth in exports from India. The B2B business share of international business and the percentage of total revenue is largely attributable to the stronger growth momentum in the domestic market, even as international sales remains relatively steady. We would like to clarify that the ongoing U.S. tariff situation has no material impact on our operations, as export to U.S. constitutes less than 2% of our total revenues. In fact, we have witnessed growing demand from Iran and the U.S. for our two-wheeler products, reinforcing our competitiveness growth in the global market. Moving to our debt levels, our net debt as of June was at INR 2,228 crore compared to INR 2,091 as of March 31, 2025. The net debt has increased on account of expansion CAPEX as well as expenditure of INR 130 crore for land at Chhatrapati Sambhajinagar. While sustaining and growth CAPEX has been largely financed from business cash flows, the capital expenditure primarily on land bank has resulted in incremental debt. Our net debt to equity as of 30 June stands healthy at 0.34. As we look ahead, Uno Minda is firmly positioned for sustained and long-term growth. Our strong fundamentals are backed by a well-diversified growth portfolio, deep customer relationships, and continued investments in emerging technologies, including electric mobility, ADAS, advanced electronics, and automotive lighting. Our consistent track record of outperforming the industry, delivering 1.5x volume growth over market averages, demonstrates the strength of our OEM partnerships, our innovation-led approach, and our operational discipline. We remain focused on enhancing both our capacities and capabilities. Currently, we have approximately 13 ongoing expansion projects across multiple key product lines. Among these, several are slated for commissioning during the current financial year, including Phase I of the four-wheeler alloy wheel plant at Kharkhoda, the lighting manufacturing facility in Indonesia, and the die casting capacity e xpansion at Hosur. In addition, the full year ramp-up of recently commissioned projects, including the four-wheeler lighting plant at Khed City and Manesar, the expanded two-wheeler alloy wheel plant at Supa, and the four-wheeler alloy wheel plant at Bawal, are expected to further support growth in FY26. We enter the next phase of our growth journey with confidence, agility, and a clear strategic vision. We remain committed to delivering long-term value to all our stakeholders and are optimistic about the opportunities that lie ahead. With this, I would now like to open the floor for your questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 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 Chandramouli Muthiah from Goldman Sachs. Please go ahead. Hi, good evening, and thank you for taking my questions. My first question is just on the castings business, which is well levered to SUV growth in India. So, after a very strong run of consistent SUV growth, I think June 2025 seems to be the first month where SUV growth sort of became flat after a period of almost three successive years of strong sort of high single-digit to mid-digit growth. I just want to understand, near term over the next two to three quarters, how you're thinking about castings growth. Is this having some impact on the pace at which alloy wheels and castings might grow in the near term? Yeah. Any other questions, Chandu? Yeah. So, the second one is just around disclosure in the annual report. I think you have disclosed that roughly 4% of revenue is being spent on R&D. But I think at the standalone level, it seems to be more like 1.7%. I just want to understand the gap there. And lastly, I just wanted to request that you could repeat the split of other segmental revenues across controllers, sensors, ADAS, and so on, and also the split of the castings business between alloy wheels and other castings. We can get that up. Okay. So, thanks, Chandu. Sorry, good evening to you. So, starting from bottom, split of others, I think I did give both others and castings, so maybe you can take it offline. Disclosure in annual report, you mentioned standalone at 1.7%. I think this can also be taken offline. In terms of casting business, we remain very, very optimistic, Chandu, as you know, that we have currently significant investments going on in both two-wheeler alloy wheel business and four-wheeler alloy wheel business. And both the expenses are obviously linked to some customer intents or POs in hand. As you know, we don't normally commit any CAPEX unless we have a PO in hand. So, from that perspective, we are quite optimistic. I think the only challenge or the part which we are not able to comment on is that the application ratio. So, while the application ratio has improved significantly over the past few years, currently, it is little more stabilizing at current levels of around 43%-44%, which, as we have been talking globally, it is more than 2x of this. Obviously, India will also have this run-up, but it's very difficult to say when this run-up, which quarter this will happen. We have to be ready to catch that upside. That's number one. Number two, in the past, we have actually been doing small, small expansions like sequentially, one phase and another started. There has been a consistent feedback that we should look at larger platforms. That's why it was in Kharkhoda. While we have eventually sort of blocked capacity multi-fold, first phase we are doing only 60K, and then gradually it can be taken on in a multiple of 60K, which again needs to do smaller 30K multiples. From that perspective, we are quite optimistic on the application ratio. While you mentioned SUV sales is maybe taking a low growth or whatever number you said about June 25, but this is, I think, just an aberration, we believe, because application ratio only speaks of what is of naturally only SUV. It goes through the sedan or the compact cars or the luxury cars everywhere, right? So, application ratio is not something which we keep closely track on, and it's not actually necessarily have only alloy wheels. They also have steel wheels. So, from that perspective, we need to keep track of application ratio, how it stands out, and how we can see the opportunity. And same in terms of two-wheeler alloy wheel also, recently in this last quarter, the application ratio has moved a little bit towards steel wheels, which, as we hear from our customers, they do expect to move back to the alloy wheels in the coming quarters. So, from that perspective, we are quite optimistic, and as we move forward, and if we have to reach global levels of application ratio, I think there is a huge upside from where we are today. All right. That's helpful. Thank you very much and all the best. Thank you. Thank you, sir. The next question is from the line of Mukesh Saraf from Avendus Spark. Please go ahead. Yes, sir. Thank you. And good evening. My first question is on the new plant that you're looking to set up for EV castings with INR 210 crore of investment there. Could you give some more sense? Would this focus on both two-wheelers and four-wheelers? And also, what kind of order book we might have in hand, and what kind of peak asset turns we can do on this kind of investment on these castings? Right. That's number one. Any other question, Mukesh, you have? Secondly is on the acquisition of stake of JV that you have with Bühler. So, now that we have done FRIWO, we are also doing this. So, just want to understand the thought process there. Both the JVs that we had focusing on two-wheeler and three-wheeler EV components, we have acquired or we are looking to acquire the stake there of the JV partner. So, just trying to understand the thought process there as to is there a change in approach from the management side based on what your OEM customers are now doing with respect to in-housing or outsourcing? So, some more sense there would help. Right. So, these are the two questions. Yes. Yes. So, good evening, Mukesh. So, new plant for EV casting, as we said, this is primarily a backward integration for our upcoming EV plant in Chhatrapati Sambhajinagar at GF for EV four-wheelers. And this casting, as you would have seen, they are very different castings than the normal castings which we do for like engine cover or crank case or pillion rider cover or lever. They're very simple things. This is a very, very complex 2,500-ton castings. So, this plant is in first phase directly sort of dedicated towards the EV four-wheel casting. So, if you see the big drive train under the hood, it comes with complete aluminum casing. So, this is about that aluminum casing. Obviously, we do have flexibility to, once we set up, flexibility to sort of see if we can get any other components, but that's the first phase. In terms of asset turn, since it's a high CAPEX business, the asset turn definitely is going to be lower. It's actually less than one in terms of the expected asset turn. And acquisition of stake of Bühler and FRIWO, I think they are two different things. So, FRIWO, what we have got is entire not only the stake but also the technology piece of it. So, we got all the hardware, software, all the people, entire setup in Germany and Vietnam. So, from technical technology perspective, it's completely now on Uno Minda. There is no dependence on any third party, but with Bühler, this is a little different because our JV partner here was obviously this business. They were wanting some capital, and JV partner was having cash crunch even in Germany, and they were very keen to run the partnership. But because of lack of capital, it was felt the board said, "Why not we sort of take over the company and then convert JV into a TLA?" Unlike FRIWO, where there is no TLA, technology will be fully ours. Here, we will continue to have a TLA with Bühler. Otherwise, there is no change in approach, as you have said. We are fully committed to all our partnerships. Got it. Understood. Because the two-wheeler business, we haven't really seen a scale-up there. I think it started about three, four years back. We haven't seen much of a scale-up, so that's why the question there. But understood. You're right. Thank you. You're right, Mukesh. That's we all know. This was the challenge we have faced, one of the exceptional cases which we have come across in terms of getting a business. We are trying to work on this. Thank you, sir. Thanks for that. I'll get back with you. Thanks, Mukesh. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions, may please press star and one at this time. The next question is from the line of Aditya Jhawar from Investec. Please go ahead. Hi. Thanks for the opportunity and congrats on a good set of numbers. My first question is, clearly, it was a very good all-round performance across businesses, and Harita has also started contributing well in growth in the last couple of quarters. So, the first question is, if you can give some color in terms of what kind of business mix we are having in terms of customers, what kind of customers, two-wheeler CVs and geographic split, and incrementally, how should we think about growth in Harita? That is question number one. And the second question is, you answered partly the FRIWO part, but Sunil, this is just about four years where we are taking over from a joint venture, it is becoming a subsidiary, 100% subsidiary. So, is there a change in thought process from FRIWO side, or is there a conflict of interest with other JVs like Inovance? Incrementally, what about the technology sharing that we would have got from FRIWO? How should we think about it? You mentioned that you're procuring the current assets, but throw some light on that. And the final question is on our margins. While we have seen consistently, our top-line growth has been quite healthy in the last couple of years, but somehow we are not getting the full benefits of operating leverage. Now, as a lot of the growth is expected to come from new ventures, like the other segment which has new products, how should we think about margin targetry, keeping into mind the change in product mix and the benefits of operating leverage? That's it from my side. Thanks, Aditya. Let me go one by one now to your questions. First is what kind of business means in seating? As we have said in the previous quarters also, in seating, there has been a significant success in terms of getting the suspended seat business, both in India and also exports. And also, we have been able to get into one of the incumbent two-wheeler OEMs with a significant share of volume, and both of them have started playing part. And as we move forward, these are also still in the ramp-up phase. We are very, very optimistic in terms of the seating business. Like we said, we will double this business in five years. We are almost there, and let's see if we can replicate that in the another five. We are very, very aggressively working on this seating business. And in terms of FRIWO, yes, you are right. There is a change in FRIWO side because FRIWO, if you go through their complete what we call website and announcement, they are also suspended seats. They have actually been exiting businesses in the last couple of years because of their own internal issues. It's run by a core set of promoters, etc. So, they have their own compulsions, and they have been sort of exiting the businesses. And we saw an opportunity there because here, it was not only the equity stake, but we got the entire technology part also. So, in terms of the motor controller software, which is the key here, in terms of all the technical know-how, in terms of all the people, and the entire setup which is there in Germany and in Vietnam, we sort of took control of everything. So, nothing is now left with FRIWO. And yes, you are right. This has happened in four years, but we actually saw it more as an opportunity than anything else. In coming to margin, yes, you are right, and we have been consistent. I think last year also we spoke about next two to three years is where we are in a super growth phase. We have like 13, 14 projects ongoing, and a lot of these costs nowadays, actually, if I capitalize, they are all charged up to revenue. And all these projects, as and when they come into operations, they don't generate revenues or profitability. So, even if they generate some revenue, it takes roughly a couple of years to turn to profitability, and our target normally, as you know, is third quarter of production to achieve the target returns. So, there are initially a drag, and despite so much of investments ongoing, we are able to maintain our margins or our guidance margin. But as we move forward, if you split this into two, you see the business which are stable versus businesses which are either at the incumbency stage or in the ramp-up phase, you'll see that difference. So, the early ones are actually growing, but because of this, it has actually been pulling down. So, in maybe short to medium term, maybe a couple of years, we do expect these things to stabilize, and you will see some, hopefully, the margin expansion as well. Yeah. That's quite helpful. Thank you. All the best. Thanks, Aditya. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions, may please press star and one at this time. The next question is from the line of Siddhartha Bera from Nomura. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. Sir, a couple of questions. First, on this camera module localization. So, can you just throw some more color on this? How much are we actually investing? And in terms of ramp-up, will this be visible in the revenues? Because we probably are already importing this, so the benefits may be more from a margin perspective only. So, some thoughts there. What are we doing there? Second, on the lighting segment. So, like you have also talked about a lot of things in terms of utilization and new orders. And we have opened a new plant also. So, how should we think about the ramp-up here? How is the order book? Can we expect the growth of 13% which we have done in the current quarter to accelerate further given these tailwinds? And if you have the four-wheeler, two-wheeler mix of lighting, that will also be helpful. And some clarification on this PLI incentive. What was this exactly? Why did we get it now? These are some of the questions, sir. Yeah. Thanks for that. So, going in the same sequence, I do have to ask some questions. So, camera module localization, as we said, which has just started, this is an in-house camera development at our R&D center. And this is just the startup. As of now, it's both import also and local manufacturing also. And as I said, in the next couple of quarters, we'll see a complete ramp-up. Overall, you will not see a significant delta in terms of top line because it's basically localization. So, imports will be substituted to your own manufacturing. But there will be less, obviously, trading as we move forward. And moving to the next, which is lighting segment, FRIWO initial new plant ramp-up. Can we expect 13% growth? You said one three or three zero? One three. So, this quarter growth was, I think, 13%. So, can we expect acceleration there? Yeah. So, definitely, we are quite optimistic, and we are actually planning for a significant growth. But as you always know, the growth is dependent on the industry volumes. So, if industry volumes and that too the model we supply, if they go, definitely, we will continue to grow. But to answer straight to your question, 13% growth possible or not? I'm sorry, I will dishearten you in commenting on the numbers per se, but I can assure you we will definitely outgrow the industry growth and continue to do so in this segment. In terms of two-wheeler and four-wheeler mix for the quarter, roughly our Indian. So, overall, the sales was around INR 1,013 crores for the quarter. And Ankur, do you have two-wheeler and four-wheeler split? Yes, sir. We have. So, domestic four-wheeler market did somewhere around INR 450 crores of revenue, whereas domestic two-wheeler did somewhere around INR 390 crores of revenue. Got it. And in terms of incentives, Siddhartha, you know that wherever we are putting these expansions and based on these ideas and so on. S o, there are certain government incentives which you are entitled to and which helps you sort of remain competitive initially because the incentives are also for a very limited period. We have been able to get certain approvals within this quarter, which was sort of pending. That's why then that income of around 68-70 crores has been booked during the quarter, which was relating to period prior to 31st of March. We thought it's important to sort of highlight because it's not for the current quarter. This is part of the plant incentive and not the PLI? Is that the right way to look at it? Yeah, you are right. Okay. Okay. Sir, lastly, on this project expansion which you have put out in the PPT, I think there are some segments like two-wheeler motor and EV systems, which probably are for the prior period and not for this period. Just. No, it was put up because earlier, when you said, if you see, it says to be spent over five years and six years. So, earlier, only Phase I was commenced, and we are still not invested full money. Like UMBM is sort of 110 crore. The investment today is only 20-25 crores. And same for EV systems, 1,390, which is, I think, 150 or something like that. So, it is not fully done. Yes, Phase I is commenced. Okay. Because, sir, startup production also looks like it's FY24, it is mentioned. So, I thought it was probably something in the past. Yeah. SOP is done, but the CAPEX has not fully been spent. Okay. Okay. Understood, sir. And lastly, sir, on this EVSE segment, how much was the contribution in the current quarter, and how do you see the ramp-up for this segment? So, as I said, as of now, it's very, very small volume because it's primarily going into the dealerships and the setup there. The SOP is roughly around three to four months view, which is linked to the OE launch of vehicles. So, maybe that time is a better place to give you some numbers. Understood, sir. Okay. Thanks a lot, sir. I'll come back and tell you. Thanks, Siddhartha. Thank you, sir. The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead. Yeah. Thank you, sir, for the opportunity. And congrats on continuing the robust performance. Thank you. Sir, first, on the order books, any update for the EV powertrain Inovance JV and the Sunroof JV? And on the camera module, sir, do you see more opportunity outside the localization part? Like there are also CV regulations coming with ADAS in trucks and buses. So, do you see that kind of opportunity also going ahead? This is the first question, sir. And the second is on that we've seen a very strong growth in the aftermarket this quarter. Any specifics to call out, sir? And the third question is, sir, just on the Clarton Horn, sir. It's loss-making as of last year. Just want to understand over the medium term, what's the plan there for that business? And lastly, sir, CAPEX guidance for this year, sir. Thanks, Mumuksh. I think a lot of questions. Let me try and go one by one. I hope I will please answer. So, first question you said was order book for the known JVs, EV products and sunroof. As you know, we have said in the last call also that we don't start a project unless we have order in hand. For EV, we do have a PO in hand. We can't comment on the value because value, again, is linked to the quantum and the number of vehicles being made by the customer. Sunroof, also, I said last time that we have started with one order, and we already got the second model order, which is the same carryover model to another vehicle. In terms of camera module and localization and ADAS, etc., yes, the camera module, what we are manufacturing, is actually part of ADAS business, which is currently going into the reverse parking assistance system, etc. The same camera shall be used for the surround view 360 degrees, etc., etc. Aftermarket strong growth, yes. We have been aggressively working on our aftermarket strategy in terms of branding. A couple of years back, we have initiated a complete branding exercise across various regions and onboarded our expert in terms of branding. That has started reaping some sort of positive impact. Clarton Horn, the medium-term plan, definitely, as I said, our first objective is how do we consistently bring down the costs and make the business viable at the volumes currently we are today. At peak, if you remember, Clarton Horn used to do 21-22 million horns, whereas today we are at somewhere around 15-16 million horns. There is a significant drop in volumes there, and we are trying to re-engineer the business so that it does not lose money at these current volumes. CAPEX guidance, as you said in the last call, which is roughly around INR 350 crore, INR 200 crore of sustaining CAPEX and around INR 1,300 crore of growth CAPEX. Ankur, I hope my numbers are right. Yes, sir. This is correct. Got it, sir. Just one more, sir. On the airbags, sir, because now recently, Maruti has launched a lot of models with the airbags. Just want to see, want to understand how do you see the growth there, sir? How do you see what we see growth? Airbag growth? The airbag business, sir. So, I mean, recently, Maruti has come with a lot of updates on the airbags for most of t he models. No, so airbag is a business which has, I think, already taken up a significant jump in the last few quarters. If you remember two years back, there was likely to be a mandatory six airbags, which was later withdrawn, and it was linked to the Bharat NCAP ratings, and today, as we speak, I think majority of the models do have four airbags, so from that perspective, the airbag business has actually seen a significant growth in the past few quarters, and we have also put in a new plant, if you remember, in Neemrana, so that also is doing pretty well. Got it. I mean, any broader numbers, sir? What kind of growth would be there, sir, on the airbags, sir? You are looking for revenues of airbag business? Yeah, revenues, revenues, sir. Maybe that we can take it offline if you don't mind. Sure, sir. Sure. And if you can answer the last question, sir, on the sensor, sir. I mean, sorry, on the rare earth part, sir. Any impact on the sensor business because of that, sir? Yeah, that's what I said in my commentary that while we do not have any sort of rare earth magnets in a big way, it's only sensor business where we use some of these magnets. And so far, we have been able to manage our business through sourcing of these magnets from various parts of the world. And we have ensured that our customer lines are not impacted. Got it, sir. Thank you so much for the opportunity. Thanks, Mumuksh. Thank you, sir. The next question is from the line of Basudeb Banerjee from CLSA. Please go ahead. Thanks, sir. A couple of questions. Just to reiterate the last question, you said INR 350-400 crore of maintenance CAPEX and growth CAPEX amount. I couldn't hear properly, sir. 1,300? Around 1,300 to 3. Yeah, you are right. So, combinedly, it should be INR 1,600-1,700 crore for FY26? That's right. And second thing, if you can slightly explain on that incentive part, which you said this incentive is for fiscal 25 or accounted for March quarter, which came into the P&L this quarter. So, this INR 69 crore is for the whole FY25 and would be sort of recurring in FY26? Let me clarify. I didn't say whole of 25. I said it is for the period prior to 31st March 2025, which is not only one year. It's actually a longer period. So, what happens, Basudebji, is that whatever state incentives you are eligible for putting a plant, normally you get a final eligibility certificate, which ensures or confirms that now the incentives will get disbursed. So, for one of the business, this was long pending, and we have finally got in this quarter, and that's how this income has been recognized in the current quarter, which does not relate to the current quarter, and that's why we highlighted it. And because so many new projects are also coming and many states give local incentives, so any such incentive on a recurring basis for the next few years, or this is complete one-off and nothing like that will recur back? No, no. There are these new projects which are coming. So, every new project will have some incentive, which only that lumpsiness comes in case there is a delay. Sure. And as I said, these incentives is what something which makes it competitive. Otherwise, at today's costs, it's very difficult to compete with a plant which is depreciated plant. And you know how competitive environment we work in. So, we do factor these incentives when we approve these projects or CAPEX, etc., etc. And any specific aspect other than, say, seasonality for staff cost, where sequentially revenue is flattish and staff costs up because of salary high quarter? Like your margin, which was hovering around 11.5% and marching towards 12%, that came back to sub-11% if I remove this incentive as you highlighted. So, anything other than that staff cost seasonality aspect you would like to mention that commodity pressure or competitive pressure, pricing pressure, or other expenses? Nothing which is out of normal. So, that's why we always say that our business is not a linear business. There is a seasonality involved. And also, seasonality involved in the way the business is being done. So, if you see last many years, eight, 10 years history, you'll find Q4 margins tend to be on the higher side and Q1 tend to be on the lower side. The Q3 and Q4, you normally get closure with your customers on various price escalations, discussions, settlements, etc., etc. So, comparing Q4 to Q1 is not something we would encourage because Q4 will have some of that factors playing a role, which does not play in Q1. So, that's why it's important to see Q1 to Q1 and Q4 to Q4 or Q2 to Q2. Sure. And last quick question, like many new foreign EV makers are now planning to set up or expand capacity in India. So, how are you placed to supply components to them? Because within EV, other than Tata, Mahindra, most of them are foreign makers, maybe the likes of MG, etc. So, how are you placed to take demand from those OEMs? So, difficult to comment, Basudeb, right now in terms of how the new players will work on in terms of their models. Because initially, whoever sets up a base in the country who already has operations globally tends to sort of bring their existing CKD and start with that. Because on a small volume, it is not possible even for them to localize everything. And these things take time to localize and sort of create some meaningful base. In terms of new suppliers, like you took some names, definitely we are in touch with those customers, but it's a little premature to talk because even from their side, the plant is yet to come up, which is still maybe like two, three years away. Sure, sir. Thanks. All the best. Thank you, Ji. Thank you, sir. Before we take the next question, we would like to remind participants that you may please press star and one to ask questions. The next question is from the line of Abhishek Jain from AlfAccurate. Please go ahead. Thanks for the opportunity, sir. Sir, as EV penetration is increasing in passenger vehicles, how much benefit do you see in terms of the content per vehicle? If you can explain it to difference in the content per vehicle in Grand Vitara versus e-Vitara. Basically, I can't talk about model to model model, Grand Vitara, e-Vitara. We don't talk about customers and their models. What I can share is that if you see our presentation for last quarter, we have given a separate kit value for separate segments. You see A segment, B segment, C segment, D segments. What is our potential kit value if we have to supply all our products? And these are primarily products which are agnostic to EV. On top of it, the EV kit value, what plant we are setting up in Khed, that itself will be around INR 100,000 plus kind of a number per vehicle. Okay. And in other product segments, we have seen a very strong growth. How is the outlook for the growth in the controller, sensor, and EVSE? And what is your plan for the e-Axle? e-Axle, basically, I just spoke about, which is the new plant which we are setting up in Khed. Probably the SOP is expected to be middle of next fiscal year. And in terms of controllers and sensors, we have been working very, very aggressively. You see, a lot of our EV products are in controllers, and I already shared some of the information. In case you have any questions on that, you can please ask. In terms of sensors, we have consistently been increasing our application ratio and also the quantity or the quality or even the type of sensors which we have been working on. The sensor business, which was maybe INR 100 crore business, only sensor and control was INR 100 crore business sort of, what you call, five years back. Today, itself, it's more than INR 250-INR 275 crore business per quarter. So, from 100 crore revenue, it is already a 1,000 crore revenue for you. Okay. Thank you, sir. That's all from my side. Thank you, Ji. Thank you, sir. As there are no further questions from the participants, I now hand the conference over to Sunil sir for closing comments. Yeah, thanks, Palak. So, at the end, I would like to thank everyone for joining the call. I hope we have been able to respond to most of your queries adequately. For any further information, we request you to please do get in touch with us directly. Thank you. Thank you, sir. On behalf of Uno Minda Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.