Ladies and gentlemen, good day and welcome to TD Power Systems Limited Q1 FY 2027 earnings conference call. Before we begin, I would like to point out that 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 the 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. Nikhil Kumar, Managing Director of TD Power Systems Limited. Thank you, and over to you, Mr. Kumar. Good morning and thank you for joining us on this call today to discuss the financial results of TD Power Systems Limited for the quarter ended 30th June 2026. I trust all of you would have received our results in the investor presentation. I'll start with the discuss with you the financial performance of TDPS for this quarter ended 30th June. Standalone. Total income for Q1 on a standalone basis was INR 6.3 billion versus INR 3.63 billion over the same period in the previous year, an increase of 74%. EBITDA for the quarter is 19.34%, including other income, excluding exceptional and treasury income, versus 18.7% over the same period in the previous year. Profit after tax and comprehensive income for the quarter is INR 853 million, versus the profit of INR 471 million for the same period in the previous year, an increase of 81%. Order book for the manufacturing segment is INR 22.08 billion, out of which INR 19.29 billion is the generator and motor manufacturing business, INR 2.11 billion is railway business, spares and aftermarket is INR 0.22 billion, and INR 0.46 billion is the turnkey business. Export and deemed export, excluding railway order for both domestic and exports is 57%. Order inflow statistics. Order inflow during the quarter is INR 7.34 billion, an increase of 87% on a Q1Q basis. Order inflow from direct and deemed exports is INR 6.84 billion compared to INR 2.57 billion. 93% of our quarterly order inflow is exports, while 7% is domestic. Consolidated. Our total console performance for Q1 is sales of INR 6.43 billion versus INR 3.76 billion, an increase of 71%, and profit after tax and other comprehensive income for the quarter is INR 860 million versus a profit of INR 500 million, an increase of 72%. We continue to maintain a strong cash position of $2.4 billion. Coming to the order book, market situation, and guidance. Market conditions and guidance. In general, we see a very buoyant market for TDPS in all segments of the business. The basic factors that are driving growth continue to play out. AI data centers, grid stabilization, basic power generation, push towards renewables, which drives demand for geothermal, hydro, waste to energy, et cetera. With all sectors in full force, we see strong order inflow, the strong order inflow situation continuing and the focus is still heavily on execution. Despite differing views on the sustainability of this buoyancy in the media, the ground reality is that there is a tremendous shortage of power generation equipment, specifically in gas turbines, gas engines, transformers and generators. The forecast of demand at the moment are very strong and TDPS is taking the position to maximize the order inflow and on the capacity side, we are focusing on efficiency as well as debottlenecking to increase output for FY 2028. We will most likely go in for another round of capacity addition for generators below 100 megawatt design. We will inform the market about these investments and plans in the next earnings call since we are still in the process of assessing which products and which capacities need to be enhanced. As mentioned above, at the moment we have sufficient capacity for FY 2028 around INR 32 billion and although we will need some debottlenecking with investments around INR 500 million. Next, we are looking at what we should be doing for FY 2029 and FY 2030 to move the capacity to INR 40 billion and above. Regarding the opportunity in the large generator segment, we are close to signing agreement with the relevant parties and we will inform the market most probably in the month of August about these unique opportunities. These opportunities are over and above current business of the company which is generators below 100 MW Now that we come to the segments one by one. The steam turbine market continues to grow at the rate we predicted with no surprises on the upside or downside. The market is steady with around 10%-12% growth taking place in the captive power plant business, biomass, waste to heat recovery. Gas engines and gas turbines. This growth still continues to be massive and grows on without pause. As mentioned in the investor presentation, we are getting large volume orders and forecast for next year continue to show strong upward growth. Hydro, we have a busy year ahead of us. This year will be one of the highest for TDPS in Hydro. TDPS is very active in the refurbishment business in India and abroad. This segment will result in some high value orders for TDPS in this quarter. Motors, it remains a key area of our business and teams are working on increasing the footprint. In railways, we are not taking any fresh orders in this segment and we will review the sustainability of this segment at the end of this year. Once the Indian Railways contract is completed, the production space and capacity that we have will be used for generator and motor products. Guidance. We revised our guidance for FY 2027 at INR 2,600 crores with a small chance that we may even cross this number. This brings me to the end of my initial remarks. I will now be happy to address any queries that you may have. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone 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 comes from the line of Mohit Surana with Monarch Networth Capital. Please go ahead. Sir, first of all, congratulations on the great set of numbers. You continue to outwit the street expectations. My first question is with respect to the peak revenue potential without incurring any new growth CapEx. Last time you mentioned we can reach somewhere around INR 3,000 crores of top line. At this point, do you think we can exceed that with using our current base? That is my first question. I would rather look at it how we are gearing up to meet the demands of the market and matching our capacities on a year-on-year basis, which we expected demand from the market. As I mentioned in my earnings call speech a few minutes ago, we are building our capacity with some debottlenecking for INR 32 billion next year. That is the capacity we would like to have, plus, minus. Then we certainly need to make another round of capacity additions for FY 2029 and FY 2030, and then we will be looking at how do we create the capacities for beyond INR 40 billion. But for that, we said that we would provide more details in the next earnings call. But this is the direction in which we are going in right now. We need to be careful about which products, which capacities, what kind of capacities, how to make them fungible across different businesses that we have. There's a lot of analysis going on right now. We need another three months time to finalize our plan. But as I said, this is the direction in which we are going. We are aligning our capacities with the market demand. Understood, sir. Sir, just one more question as a follow-up. The larger capacity generator manufacturing, can you give us some understanding of the TAM of this market, say, beyond 100 MW compared to what we are currently below 100 MW? How big is that compared to the current segment that we are in currently? No, it's a very large segment. I don't have the exact market size information with me, but it's a very large segment. It's dominated by very large players, and I can't give you any further information right now. As I said during the earnings call speech, we will be announcing something in the month of August. Once we make the announcement, obviously at that time, I will have to answer all these questions, and then once the details of these things are out in the market, we'll definitely provide more information. Understood, sir. Thank you so much. That's all from my end. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Nishita with Sapphire Capital. Please go ahead. Yes. Hello, am I audible? Yes, Nishita. My question is on the order book. We've had a very good order book growth year-over-year in Q1. Just wanted to understand, what will our closing order book look like? What sort of growth can we expect in the order book for the full year? Yeah. We are expecting around INR 700 crores per quarter. Okay. INR 700 per quarter order inflow. Yeah, something like INR 2,800 crores+ we'll have for the whole year, order inflow. Okay, understood. My next question is on that earlier you had mentioned that by doing the debottlenecking, which will require CapEx of around INR 100 crores, we can reach the revenue potential of INR 32 billion in FY 2028. Yeah. When do we expect to incur this CapEx? Have you already started the CapEx? That's an ongoing process. Okay. What sort of total CapEx do we anticipate in FY 2027? INR 50 crores. INR 50 crores. Okay. With this debottlenecking, do we expect in FY 2028 we will have around INR 32 billion of revenue, or can we see some upside potential to that also? Yeah. It is not a hard and fast number. If there is an upside potential, we will have to find ways to make it happen, and we will make it happen. So, it is not written in stone that it is 3200, and it ends over there. If it goes to 33, then we do 33. If it goes to 34, we do 34, but it is around that number. Okay. Understood. My last question would be on, you mentioned that in FY 2029 we will do fresh capacity expansion, which will take our capacities to around INR 40 billion. So, when can we reach that INR 40 billion number? Look, Nishita, Are we going to start the- I've tried to make this as simple and clear as possible. I've said that we are going to invest INR 50 crores to have a capacity around 32 billion for FY 2028. I've said that in three months' time, when we have the next earnings call, we will give an indication of what kind of investments we need to gear up to meet the demand for FY 2029 and FY 2030. Okay. We would be looking at taking the number to around 40 plus. Which specific year it's going to happen, I can't say that right now. Okay. That's the direction in which we are going in. Understood. Yeah. We cannot write everything. It is a dynamic situation. We are looking at things which are going to happen two, three years from now, right? We have to have flexibility in the plan, and we have to be open to see how the market develops, which kind of products are going to be dominating the demand situation, align ourselves to that, and be flexible. Nothing can be written in stone about what is going to happen in FY 2029 and FY 2030 in FY 2026. That is not how it works. Okay, understood. Thank you, Sir. Yeah, thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Soumil Jain with Lucky. Please go ahead. Hi, thanks for the opportunity, and congrats on a very strong performance. Sir, I wanted to understand, you spoke about pricing increase last quarter. Have those been put in place this quarter already? We have contracts with our customers where we have price variation clauses, and wherever we have price variation clauses, those are implemented, yes. Okay. Last quarter's gross margin, we see improvement from last quarter's gross margin. That is reflective of the pricing uptick or the price clauses that you are talking about, right? Look, I cannot tell you. We have guided in the last call that we will maintain our approximately plus or minus 1% here and there. We will maintain the gross contribution margin for the company. Part of it will come from price increases, part of it will come from cost reductions, part of it will come from product mix, part of it will come from exchange rate gains. So I cannot give you the exact breakup of how much is the contributing factor from each of these things. But overall, the company will be able to maintain plus or minus within a certain tolerable range, the gross contribution margin, which we have guided the market. Understood. Okay. On the revenue guidance for the full year, does that include any revenue from large turbine generators? No. Okay. Just for your information, it takes within 18-20 months to make a big generator like that. Okay? So there is no way it is going to happen- Right In six months from now. Got it. All right. That is all the questions that I have for now. Thank you so much. Thank you. Next question comes from the line of Gazal Gupta with ASK Wealth Advisors. Please go ahead. Hi, Nikhil and team. Thanks a lot for taking my question. Firstly, congratulations on good set of numbers. I just have one question on the margin front. We have always guided for 18%-19% EBITDA margin, and in such a global situation as well, firstly, I wanted to understand how are we able to manage and maintain our margins. As I understand that there would be some impact which would be coming from the increase in logistic cost, et cetera, which is probably getting offset by higher margin export orders. What would be the quantum of these two? Just wanted to understand that if the situation improves, can we expect any inch up on the margin front? That is my question. I cannot commit to that any range. How we hit, I have already kind of answered in the last question. There are a number of factors that drive margins. One is pricing, one is cost reductions, one is exchange rates, raw material prices. Then there is also EBITDA margins, also dependent on the factory loading capacity utilization. There are a number of factors that drive this, and as a management, we need to have certain levers that we can work on to achieve the numbers that we commit to the market. How much of it is going to contribute to each of these things? I am sorry, I am not in a good position to answer that. Sure, Nikhil. That was all from my side. Thank you. Thank you. Thank you. Next question comes on the line of Alisha Mahawla with Trust Mutual Fund. Please go ahead. Hi, Nikhil. Good morning. Congratulations on great set of numbers. Just wanted to refer to something you mentioned in the opening commentary that while demand is exceedingly buoyant, on ground there is a shortage of our equipment and there are some delays. Also, considering the current geopolitical issues, there is a little bit of supply chain disruption. Are we seeing the impact of that in any segment, any market? Are any steps you are taking to ensure that it doesn't delay us? While you're sounding very confident to achieve the guidance, it would be helpful to get some qualitative color also. Yeah, we don't see any disruption in our order inflow from the market side. Also, we see no letup in the demand situation. The forecast that we have from our customers is still extraordinarily strong, continues to be so. We are always in very close contact with all our customers since there's huge amounts of co-dependency that we have with each other. It's very important that we stay very deeply connected with them. Deliveries and capacities is always the number one and number two topics on the agenda when we meet these customers. At the moment, whatever guidances that I have provided to the market, are guidances that we will be able to achieve. Upside potentials or whatever will be announced as and when we see that actually materializing. I have not yet given the guidance for next year, for FY 2028. I'm only simply building up a capacity for that. I've not yet given the guidance for FY 2029 and FY 2030. I've only said we're building the capacity in that direction. I think when we take certain decisions to add capacity and when we gear ourselves up towards certain capacity number, it provides an indication of which direction we're going in. I think more than that, I can't really say. No segment or order is probably facing any kind of slowdown because of this shortage or because of shipping related delays? No, I don't think- Because there are projects- I don't think the shipping delays will cause disruptions in the demand situation. No. The question is that while the demand is there, and I think you've spoken extensively about it, there is delayed execution. On ground projects are getting delayed. And what I'm trying to understand is, are we seeing a slowdown from an execution perspective in any of our segments, in any of our markets? All our products are just going straight from our factory gate, straight onto ships, and going to the U.S. Now, they may not be commissioned immediately. There could be execution delays. But all customers are taking the products as ordered. Okay. Understood. Great. Thanks. It's not that all the generators or all the turbines or all the engines are going into only one single customer, one single project who's not able to digest, and then he then starts asking us to start holding back shipments because he's not These are going to multiple sites, multiple data centers, multiple customers. And everyone's taking delivery. I don't see a problem with this at the moment. We move on to the next question. Miss Mahawla, are you done with your question? Yes. Thank you. Thank you. Next question comes on the line of Kunal with 360 ONE. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. My first question is, would you be able to share out of the current order book how much actually is contributed by data centers for both gas engines and gas turbines? No, we don't give the split up of applications with our order inflows. Okay. You don't. Sure. My second question is around, as data center campuses move to higher 1,500 MW kind of a configuration, are you seeing customers increasingly talking about combined cycles? If yes, does that meaningfully increase the TAM for TD Power? There are noises about combined cycle, for sure, and I think there will come a point of time when all these open cycle gas turbines will start moving towards combined cycle. But as Alisha pointed out a little bit earlier, there are execution delays on the data center side. So by the time that these projects actually go on stream and projects running with open cycle, then they start planning combined cycle, then it gets installed. It could be years from now. It will happen, but my opinion, it is not going to happen immediately. It is going to take some time. But it is going to happen. Sure. If and when that happens, is the understanding correct that that will improve the opportunity size for TD Power? Yeah, naturally. We work with all the major steam turbine companies in the world, so we are well-connected with them and we will get a certain proportion of that business for sure. Sure. Thank you so much. Thank you. Next question comes from the line of Mythili Balakrishnan with Alchemy Capital Management Private Limited. Please go ahead. Thank you for the opportunity. I just wanted to get a sense of the market share which we now command in the export market. How much have we increased our wallet share with our OEM customers? Also, any client additions or anything else that you want to point out in that direction? Mythili, we don't have that number where we can pinpoint and say this is our market share. We don't have that number. In terms of client addition? We don't have any major client addition at the moment. We have a couple of smaller client additions which are in the pipeline, which we are hopeful to close in this quarter. All the major clients, major engine makers, major turbine makers, we're already working with them very closely. We don't see a big opportunity to increase client addition, which can dramatically change the business outlook. It's more about cutting deeper with them and more about the market itself growing. That's where our biggest opportunity is going to be. Got it. In terms of the Turkey subsidiary, could you just indicate what is our thought process on it currently, and what are we going to do about it? It's a- Yeah. We have about EUR 3.5 million worth of orders for execution this year, and we will execute that 3.5 million EUR this year. We don't see a big pipeline for business for next year right now, but the Turkey facility still continues to be an insurance facility in case we have to do major work for service. For insurance, you have to pay a certain amount to keep it alive, and it will probably be useful. It'll play in that role even next year. Got it. Thanks. That's all from my side. Thank you. Next question comes from the line of Salil Desai with Marcellus Investment Managers. Please go ahead. Hi, Nikhil. I think six months back on one of the calls, you mentioned that you guys are looking at the refurbishment opportunity in India. If there has been any progress on that, you could update on that, please. Yeah. We have won a few hydro refurbishment orders. It is already in the order book for in the last quarter, Q1, and there are a few more jobs in the pipeline for Q2 and Q3, and we are very active in the hydro refurbishment market in India. Great. Any plans of when will you be in a position to take it global? At the moment, we are not looking at taking it global. Understood. Second question is, going back on some questions on demand. In your experience, if you could just give some picture on how elastic is demand to prices or costs, given that commodity prices are increasing, metal prices are up, freight costs are up, plus there is a shortage of all equipment in the power value chain, and prices are going up there too, of the base product. When you talk to your customers, do you sense that there could be a point where they might start rethinking the scale of projects or the timing of projects or something like that? The power plant forms a very small percentage of the overall project cost. If you look at data centers and things like that, it is less than 5%. So the demand elasticity is very high. They need electricity, and there is no choice. They need to have behind the meter power generation equipment, and they have to pay for it if the commodity prices go up. This market is— There is no choice. They need electricity to run the data centers. It is not just data centers, it is also grid stabilization. You need to have equipment for grid stabilization. There is a push towards renewables. There is a certain mix that all utilities have to have in terms of renewables. So these are all factors that are driving compulsive buying power. You have to do it. Understood. Great. Very helpful. Thank you so much. Thank you. Next question comes from the line of Amit Anwani with PL Capital. Please go ahead. Hi, Nikhil. Thank you, and congrats for the very strong set of numbers. My first question, again, on this service business. Since the installations are growing so rapidly for you, what is the service revenue contribution, and can it scale up in next two, three years? If so, probably that can aid the EBITDA margin higher. So why are we still guiding that 18%-19% if the installations have gone up and probably we have a better service revenue also, apart from the product demand? Generators, electric generators do not require service for the first 10 years. Should not require service, let me put it this way, for the first 10 years of their operation, if they are well, good manufactured, high-quality machines, and they are reasonably well-maintained. There is almost zero service potential from the first 10 years. That is the reason why we have not. Understood. But what is the proportion now? Earlier, the proportion used to be 5%, 6%, and now since the sales is it still remains around 5%, 6% of our overall sales. The sales are also growing at 30%, 40% per year, so our service business is also still growing at that rate, keeping the place, the percentage remains the same of our overall business. Right. Second question on Turkey. Last financial year, because of the tariff uncertainties, we decided to, because of the advantage we were getting, utilize Turkish factory for the export. Now again, we are hearing that probably there could be more tariff, 100% tariff on oil-imported nations. What are your thoughts? How are we now thinking and utilizing the Turkish factory amid? I do not know. I have not heard about this 100% tariff on it. That is it is in the media. In general, what is your sense now on the factory? I do not have an answer for that right now since I am not aware of this 100% duty. None of our customers have talked to me about it so far, as recently as two days ago, so I do not think anyone is taking that threat very seriously at the moment. Understood. From Turkey, like you have started selling again, we were cutting down the operations there, so how are we utilizing that factory now? I just said five minutes ago, it is about EUR 3.5 million of sales for this year. We do not have an outlook for next year. That facility will still be used as a service backup, and it will have a certain cost to keep it alive. It is not a big cost, but it will be there as an insurance for our service for the European market, where we have a big population of machines. That is the strategy at the moment. Right. Lastly, on your CapEx, you did highlight a INR 50 crore investment probably will get you to close to INR 3,200 crores by FY 2028. Just wanted to understand, and probably you are adding capacity beyond that, will it be also driven by the demand for you will be driven by more customer additions or any other verticals? Or this is the pure play demand which is coming, and that is where you will be expanding because of the demand? Or there is other thought process also for the capacity expansion over three, four years? Partly new customers, partly new products, and partly existing products and existing customers. I cannot give you the mix, but it is going to be driven by both. Understood. Thank you, sir. Thank you so much. Thank you. Thank you. Next question comes from the line of Aman Agarwal with Nuvama AMC. Please go ahead. Thank you. Many congratulations to Nikhil sir and team for the strong thread. Yeah. Just a small understanding on larger generators. You are saying it takes 18-20 months to make a large generator. Just want to understand, add to this the time to get the plant up and ready. When should we start the When should the revenue be impacted because of the larger generators? When should we start thinking about additions from that? I have no comment. I cannot answer any of these questions. I do not have any I cannot, unless I announce the exact deals with the market, like what exactly we are going to be doing. Unless I come to that stage, I cannot answer this question. I am really sorry. You will have to wait until we announce it sometime in August. At that point of time, we will happily answer all these questions. These are pertinent questions, but it cannot be answered today. No problem, sir. Sir, just second thing, on the CapEx side for the already existing capacity, if I remember right, you are planning to do a INR 50 crore CapEx both in FY 2027 as well as FY 2028. Just to understand, is there a debottlenecking scope beyond INR 3,200 crore as well that you can do in FY 2028 sometime? This is a dynamic situation that keeps changing. Nothing is written in stone over here that we can't change. We have to adapt to the different kinds of demand for different kinds of products, and we have to adapt our capacity to be ready to manufacture what the market wants. If I had said earlier that we need 50+, now I'm saying we need 50 for FY 2028 and for 2029 and 2030, we're looking at a larger situation. What do we need for meeting the demand to push the capacity to beyond 40? I'm saying the same thing again and again and again, and we will get back to you about it in three months' time. Got it, sir. Bye. Thank you. Thank you. Next question comes from the line of Ganesh Ram with Unifi Capital. Please go ahead. Thank you for taking my question and congratulations, Nikhil and team. Hello, Ganesh. Hi Nikhil, mine is more strategic and high level. I have been looking at the commentary of some of these global OEMs, and recently, I think there is a lot of discussions around what is the ROI that these data centers are actually making on the CapEx. In the four to five year sort of backlog that they have, visibility they have, a large proportion of it seems to be slot reservation agreements, which do not seem as secure as orders, although there definitely is a tie-in. When we start thinking about FY 2029 and 2030 from here, what is the confidence that you are getting that this CapEx is going to continue to stay and there will be sufficient demand to absorb the capacity? Our OEM customers have taken significant amounts of non-refundable advances. From people who want to buy their equipment. And that is the reason why we have confidence, and they have confidence that the demand will be there in the years ahead. Yeah. Makes sense. All right. Thanks, Nikhil. Thank you. Thank you. Next question comes on the line of Suraj Malu with Catamaran. Please go ahead. Hello, sir. Thank you for this opportunity. Sir, in the last quarter, you had mentioned that we have largely employed people we wanted to. Now we see 20% quarter-over-quarter employee expense increase. Can you help understand this? The number of employees have increased. You see that the business is also increasing. We have almost 75% growth over the last quarter. I think there could be some more additions to the employees list because we are scaling up from 1,750- 2,600. It is but natural that the expenses will go up. Got it. Can we understand how many employees have we added in this quarter? No, we don't share that kind of information, sir. All right. Thank you very much. Okay. And this includes the wage hike as well for this year, or that is the- No. Additional portion. No, that is already built-in. Okay. Thank you very much. Thank you. Next question comes from the line of Vince with PhillipCapital. Please go ahead. Yeah, hi. Thank you for the opportunity. I had a question regarding the TAM, Nikhil. In your annual report, you have mentioned that USD 52 billion is the global generator market. So what would be the relevant TAM for us, specifically in the sub 200 megawatt and the zero to 50 MW range? How big is that TAM for that particular range? I do not have the latest number with me, but sometime back it was something like $ 5 billion-$ 10 billion. Okay. Under 50 MW. Yeah. Okay. In the 50 MW-100 MW range, how big is that market? I do not have the latest number with me. There is no place where you can get this kind of data that someone is tracking this. Yeah, exactly. That is the difficulty even we are having, in terms of. Yeah. We do not have that number. Okay. Thanks, Nikhil. Thanks for the reply. Thank you. Next question comes from the line of Samdit Patel with dT! Partners. Please go ahead. Yeah, hi. Thanks for taking my question, Nikhil. You mentioned our customer OEMs get advances from their customers. Just wondering for us, do we also get advances from our customers when we book orders, or how does our working capital work for them? With certain customers, we get advances. If possible, can you quantify how much would that- No. Be in the overall value of the generator or We can't do that, sorry. We can't do that. Okay. No worries. Thanks. Thank you. Next question comes from the line of Dipen Shah with Six Senses. Please go ahead. Yeah. Thank you for the opportunity. First of all, many, many congratulations for great execution. I just had one question on the domestic business, Nikhil. It is mentioned that the domestic quarter book was only 5%- 6% of what we got during the quarter. Can you just give us some more insights, which are the sectors which are holding it back, and whether data center business in India does provide some scope for further ordering in the next few quarters? Something on that will be helpful for us. In India, the demand is fairly subdued. It is in the region of 10%, 12% like what I have landed now. I have been saying this not just now, but I have been saying this for the past five, six quarters, and that is what it is, and please don't expect anything more, and it is correct what I am saying. It will continue to be this way. The demand is being supported by metals and across the board, but there is no explosive growth taking place in the economy, so there is no explosive demand for power generation. India is putting up a lot of capacity right now in large coal-fired power plants, it is 600, 800 megawatt sets. So there is a huge demand in those larger sizes. All the players in that segment are completely booked out for the next three, four years, including people like BHEL, L&T, and Mitsubishi. There is massive power generation capacity which can be added in the larger sizes, but that is still not going to be enough for India. This power shortage is going to continue for at least some more time. Second part of the question, AI. We do not see any meaningful AI when it comes to things like hyperscalers and everything being put up in India. We are still of the firm belief that unless there is an availability of gas and lots of water, it is difficult to have a hyperscaler kind of facility in India. They are talking about renewables and everything, but you need to have baseload power for data centers, and that has to come from gas. Diesel engines is not a solution for large scale 500 MW to 1 GW hyperscalers. I do not think we are going to see a widespread demand for this in India at the moment. Okay. Understood. Thank you very much and all the very best to you and your team. Thank you. Thank you. Thank you. Next question comes from the line of Prathamesh Rane with PhillipCapital. Please go ahead. Hi, sir. Congratulations on a stellar quarter. Just one question from my end. Your gross margins were stable year-over-year, was it because of the mix or you are able to pass on commodity price hikes? I answered this question a number of times and I will answer it once again. When we give a guidance on gross contribution, gross margins, we have certain levers that we have. Levers are cost reduction, price increases, capacity utilization. Capacity utilization, of course, will not come in the case of gross contribution, and exchange rate. These are the levers that we have. As a company, we have these levers and sometimes something goes up, sometimes something goes down. But overall, we try to keep the balance and try to maintain the numbers that we commit to the market. I have answered this question a number of times, and I am saying the same thing again and again and again. Got it. Thank you. Next question comes from the line of Vivek Gautam with GS Investments. Please go ahead. Congratulations once again on the great set of numbers being consistently given by the company under your leadership. There was recently a sort of a meltdown in Korean market of the AI, and India sort of getting benefit, National Payments Interface trade and IT services also is getting benefit of it. Is it sort of a temporary blip adding to some issues at Oracle and OpenAI data center plants in U.S. also or any impact on our services? Second question was about when you expect to do the QIP complete and deploy the funds, sir? Thank you. First question, I have absolutely no idea how to answer it, and I am not in that market to give you an educated answer on that question. The second part of the question also, I am not in a position to be able to answer any questions about it right now. Largely, the opportunity size remains quite large and TAM remains quite okay for the next few years at least, sir. That is for sure. Yes. That is for sure. Thanks a lot. Thank you. Thank you. Next question comes from the line of Juili Baviskar with Ashika Institutional Equities. Please go ahead. Hello, can you hear me? Yes, I can hear you. Yeah. So hi, and congratulations on the great numbers. My question was around the number of generators. On the 320 additional generator this quarter, should we see the growth going forward as continued unit count expansion or is it even bigger driver that value per megawatt will increase? The question is, it will be a volume story or realization per unit story from here? It will be both unit as well as realization. Okay. So can we see around 13,000- 15,000 units as a total generators in FY 2030, 2031? That FY 2030, it is quite a distance that we can give answer to this. We will take it year on year. Okay. But the run rate can be similar to this quarter? Yes. With the growth in the revenue, definitely this also will grow. It will be a play of both. With larger generator size, the per megawatt also increase, megawatts per generator also increase. Yes, obviously. Okay, thank you for this. Thank you. Next question comes from the line of Arpit Tapadia with IGE India. Please go ahead. Yeah, hi. Thank you for the opportunity and congratulations on great set of numbers. Thank you. My question is, since we have announced about our capacity increase up to, let's say, INR 32 billion crores in 2028, should that be treated as ceiling for that year? Or has there any kind of bottleneck opportunity within that to, let's say, increase it further? I have already answered that question. I am sorry, I do not want to answer it once again, but I have already answered that question. When I said maybe 200, it is an approximate number, plus, minus, we can do. If the opportunity is there on the market side, we are not going to turn away from it, we will do it. Okay. Thank you. Thank you. Next question comes from the line of Abhishek Kamdar with Value Plus Advisors LLP. Please go ahead. Yeah. Hi, thank you for the opportunity and congratulations on a great set. Thank you. My question is around working capital. Do we expect this to remain in line with what we have currently? Second is the other current liabilities have increased significantly this quarter. Is this predominantly customer advances? Yeah, actually working capital will continue to remain on the same line because we see a significant growth from last year to this year. On the current liabilities, yes, there are customer advances and also the provision for taxation because of the increased volume of business. Okay. Thank you and all the best. Thank you. Next question comes from the line of Kushal Goenka with Mangal Keshav Financial Services. Please go ahead. Yeah. Hi, Nikhil. Hope you are doing well. My question was again on the trade receivables part. It is around close to INR 785 crore. Now, I understand that we have been growing at a very high speed. However, we do have around INR 240 crore of money in the balance sheet, and in spite of that, we are doing a fundraise. What efforts are we putting to better our working capital and particularly the receivables trade, so we can generate more internal accruals and would not need a lot of external funds to grow at a higher speed? We have payment terms fixed with our customers, and we are not going to be able to alter them dramatically to be able to do what you are saying we should do. We need to make sure that our business continuity with our customers is a number one priority. Commercial terms and conditions can be changed a little bit here and there, but they cannot be altered significantly because otherwise we will lose business. We have to keep in perspective that we have to keep the business, keep our customers, grow the business with them. Working capital needs may increase, funding requirements may increase, in which case we will have to look at ways to fund the entire company. Everything is a balance of a little bit of this, a little bit of that. In the end, we have to make sure the number one priority always is our customers have to be happy and have to continue to buy generators from us. Theoretically, what you are saying is possible, but practically it is not possible. Okay. Thank you so much. My second question is just a clarification on the fundraise. I hope we would also consider debt as compared to equity because we are debt-free and the cost of equity is always higher than the cost of debt. Just wanted your thoughts on that. I am not going to be able to talk about any fundraise issues. We have issued a notification to the exchange that we will be having a board meeting on Friday, and I cannot discuss anything before the board meeting takes place on Friday. After Friday, after we finish the board meeting, naturally we will have to disclose to the market what we plan to do. Then after that, once that has been disclosed to the market, I will be happy to answer questions to whatever questions you may have about our plans. Yeah, okay. Thank you so much. Thank you. Next question comes from the line of Mohit Surana with Monarch Networth Capital. Please go ahead. Thank you for the opportunity again. Just one question on the tariff refunds. Some of the Indian companies have started receiving the refund of tariffs that they have paid to the U.S. So are we seeing similar inflows? All our products are Ex Works India, so we are not the importer on record, so we will not get any refunds. Understood. Thank you, sir. That is all from my end. Thank you, Mohit. Thank you. Ladies and gentlemen, that was our last question for today. We have reached the end of question and answer session. I now hand the conference over to the management for closing comments. Thank you everybody for joining us on this call today. I will be in an investor conference next week where I hope to see many of you, and I look forward to the future interaction together. Thank you. Bye-bye. Thank you. Thank you. On behalf of TD Power Systems Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.