Ladies and gentlemen, good day and welcome to the Q1 FY 2026 Conference Call of Amber Enterprises India Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that your conference is being recorded. I now hand the conference over to Mr. Jasbir Singh, Executive Chairman and CEO and Whole-time Director of Amber Enterprises India Limited. Thank you and over to you, sir. Hello and good morning. On the call today, I'm joined by Mr. Daljit Singh, our Managing Director, and Mr. Sudhir Goyal, our Group CFO. We have uploaded quarterly presentations on the exchanges, and I hope everyone had an opportunity to go through the same. I am pleased to report robust performance during the quarter driven by growth in all the three divisions, despite a challenging season for the Room AC industry. The consolidated revenue grew by 44%, reaching INR 3,449 crores for the quarter, and operating EBITDA grew by 31% to INR 263 crores and a PAT of INR 106 crores, recording a 42% growth over the previous year. The operating EBITDA margin was impacted due to divisional mix and product mix. However, we expect the consolidated margins to be in the range of 8%- 9% by FY 2026's end. Let me now take you through the divisional performances. On the consumer durable, this division continued the growth momentum in line with our earlier guidance of outpacing the industry for the year. The growth is driven by the following factors: a diversified product offering, adding wallet share in some customers, expanding component business, conversion of earlier gas charging customers into full ODM customers, and robust growth in our Commercial AC vertical. We also onboarded one more multinational customer in Commercial AC vertical during quarter one, which will contribute to a decent growth in quarter four and thereafter. Further, we have signed a strategic cooperation agreement with GMCC, the largest compressor manufacturer of the world, ensuring compressor supplies for three years as per our plans. Based on our cooperation agreement, GMCC is expanding its capacities in India. This expansion will be operational by November of this year. We continue to remain optimistic about outperforming the RAC industry growth by a factor of 10%- 12% for the year, supported by our strong portfolio of finished goods and components to a diversified customer base. Additionally, on the washing machine front, quality control orders are getting implemented by October 2025 on this product. We are now revisiting the strategy, considering the CapEx required due to this quality control order of washing machines. Coming to the electronics division. T he division continued the stellar growth trajectory, almost doubling the revenues to INR 766 crores, reflecting a growth of 97% and a resultant operating EBITDA of INR 49 crores, with a growth of 62%. The performance is driven by both printed circuit board assemblies and bare PCBs verticals spanning across the customer segments in consumer durables, wearable and hearables, telecom, automotive, energy meters, and defense. On the strategic front, we have filed two applications under the electronics manufacturing component scheme, one for multi-layer PCBs through Ascent Circuits of INR 990 crores to be spent over the span of the scheme. Second, HDI high-density interconnect PCBs through Korea Circuits JV for INR 3,200 crores to be spent in a phased manner over the scheme. The JV will cater to HDI and flex PCBs, bringing advanced technology in the country which so far has heavily relied on imports and t he buyback arrangement with Korea Circuits offers us early visibility on the revenue. On the strategic front, I am pleased to share that IL JIN Electronics has signed two definitive agreements, one with Power One Microsystems Bangalore and second Unitronics Israel, strengthening the industrial segment of the electronics portfolio. Talking about the Power One first. I t's a prominent player in rapidly growing battery energy storage systems, solar inverter space, including on-grid, off-grid, and hybrid solar inverters, EV chargers, and industrial UPS, catering to customers in large public sector units and large corporates. The industrial segment complements our well-spread portfolio of the electronics division. From the financial standpoint, it's a net debt-free company and clocked an impressive EBITDA margin of 17%- 18% on the revenue base of approximately INR 245 crores in FY 2025 and is expected to reach INR 325 crores in revenue in FY 2026. This partnership enables the following: direct synergy to our electronics division. It adds a portfolio of high-margin power electronics and energy sector modules. Given the multi-billion dollar TAM of this sector, it is a highly scalable business. We shall be leveraging the group's purchasing power and also the capabilities of the component ecosystem, such as printed circuit board assemblies, bare PCBs, and sheet metal fabrication, enabling it to backward integrate and manufacture at scale. In tranche one, we will pay INR 262 crores plus a deferred consideration based on FY 2026 numbers. We expect the closure of this transaction within the next 15- 20 days. Moving to Unitronics Israel, it's an Israel-based listed company and a prominent lead player offering comprehensive solutions in industrial automation and control systems, such as programmable logic controllers, human-machine interface, HMIs, PLCs integrated with HMIs, VFDs, and software solutions. On the financial front, Unitronics commands an impressive EBITDA margin profile of about 30% on the revenue base of approximately $57 million, deriving almost 95% of the business from the U.S. and European region. Furthermore, it is a dividend-paying company, almost a debt-free company, and generating a business ROCE of 60%. This partnership enables the following for us: entry into a rapidly growing sector of industry automation and control systems, access to global markets like the U.S. and Europe, expansion of Unitronics products in the Indian market, leveraging backward integration of printed circuit board assemblies and bare PCBs, and leveraging the purchasing power of the group. The total consideration converted into Indian rupees is expected to be around INR 403 crores for approximately 40.24% controlling stake. We plan to close the transaction in the next 60- 75 days. To sum up, both the companies operate in fast-growing niches of industrial electronics applications, complementing with the strategy of strengthening the industrial portfolio, and have a rich margin profile which will enhance the divisional profitability and returns. These partnerships will augment the domestic manufacturing in the country, aligned with the Atmanirbhar vision. Both these add-ons balance volume and value play in our electronics division. The electronics division began by addressing the shift from fixed-speed to inverter air conditioners in 2018 and is now evolving into a full-stack EMS company. It features printed circuit board assemblies vertically, serving diverse customer segments, and a bare printed circuit board vertically, offering a range of products, including HDI flex PCBs and substrates. Furthermore, the division has expanded its capabilities to include complete box-built products into multi-billion dollar power electronics, energy market, and automation market for industrial applications. With all the add-ups, we intend to take the electronics division to a billion dollars by the next three years, with a target EBITDA of 11.5%- 12% range. Coming to the railway division, this division delivered a strong performance due to offtake in the metro projects. The division recorded a revenue of INR 123 crores, registering a strong growth of 29%, and operating EBITDA of INR 22 crores, reflecting a growth of 8%. On the expansion front, the construction is progressing well for Sidwal's greenfield facility for HVAC, pantry, doors, and gangways, and is expected to commence operations by quarter four of financial year 2026. With regards to Eugene Machinery joint venture, the new facility for pantographs, driving gear, couplers, and brakes is to begin product trials by September of 2025. Our data center products developed by this division have also started gaining traction. Special cooling products for missile launchers and other defense applications are also gaining traction and are expected to contribute meaningfully in the coming years. Backed by the strong order book and product portfolio expansion, we remain optimistic about doubling the division's revenue over the next two financial years. Now, let me hand over to Sudhir Goyal, our CFO, for financial highlights. Thank you. Hello everyone, good morning. I am pleased to report a strong performance for quarter one financial year 2026. Let me first take you through the quarterly consolidated financial highlights. The consolidated revenue for quarter one 2026 grew by 44% year-on-year, to INR 3,449 crores compared to INR 2,401 crores in the same quarter last year, and operating EBITDA increased to INR 263 crores for the quarter compared to INR 200 crores in quarter one financial year 2025, reflecting a significant growth of 31% year-on-year. Please note operating EBITDA is before the impact of ESOP expenses and other non-operating income and expenses. INR 106 crores, reflecting a growth of 42% year-on-year. Now, let me take you through the divisional performance overview. Firstly, revenue and operating EBITDA details of the divisional performance are not comparable with published segmental results. The consumer durable division reported a revenue of INR 2,560 crores in quarter one financial year 2026 compared to INR 1,918 crores, reflecting a growth of 33% year-on-year. Despite the challenging season for the RAC industry, strong performance was achieved on the back of a strong product portfolio, including RAC and CAC, and continued traction in component verticals. Operating EBITDA for the quarter increased by 28% year-on-year and stood at INR 192 crores compared to INR 150 crores in quarter one financial year 2025. Coming to the electronics division performance, the revenue for the quarter increased to INR 766 crores compared to INR 388 crores in the same quarter last year, reflecting a robust growth of 97% year-on-year. Operating EBITDA for the quarter increased by 62% year-on-year and stood at INR 49 crores compared to INR 30 crores in quarter one financial year 2025. If we look at the performance of Ascent, it recorded a revenue of INR 100 crores in quarter one 2026, highlighting a growth of 37% against quarter one financial year 2025. Moving to railway systems and defense divisional performance, the revenue for the quarter increased to INR 123 crores compared to INR 95 crores in quarter one financial year 2025, reflecting a growth of 29% year-on-year, and the resulting operating EBITDA of INR 22 crores, translating into a growth of 8% year-on-year. The business delivered strong performance, particularly in metro projects, with a robust order book and an expanding product portfolio. We remain confident in doubling the division's revenue over the next two financial years. In summary, with all the key divisional performance strongly, consumer durable delivering robust growth driven by deepening customer engagement and traction in new categories, electronics continuing its strong growth trajectory, and the railway subsystem and defense division portfolio expansion, the company is well-positioned for a strong growth phase. This growth momentum, coupled with steady actions like bare PCB expansion and inorganic growth, is expected to drive significant growth and lead to a structural improvement in our margin profile over the coming years. Thank you. I request the operator to please open the floor for the Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have follow-up questions, we would request you to rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dhruv Jain from Ambit Capital. Please go ahead. Hi, sir. Thank you for the opportunity and congratulations on a good set of numbers. First question on your opening remarks, you mentioned that you're looking at the electronics business touching a billion dollar revenue in the next three to four years. Just wanting to understand how much of it would be driven by acquisitions or how much by the bare PCBs and PCBA. Broadly, just want some color on how I'm thinking about the individual scalability of these different components of the electronics segment. That's my first question. Dhruv, good morning, and thanks for the compliment. On the electronics division, see, it's a very big TAM today. If I tell you about the manufacturing footprint TAM of the Room Air Conditioners industry, that is about $5 billion today as a current tier, right? When we talk about PCB TAM, which is about $4 billion, PCBA is about $12 billion- $15 billion today under the $135 billion of electronics getting consumed in the country. We have added, you know, UPS inverter and battery storage space, which is another TAM of $4.75 billion. Plus, we have added VFD drives and HMIs and PLCs, which is about $6.5 billion TAM. We've jumped into the ocean on the addressable market side for the products which we are offering now in the electronics space: PCBA, PCB, the industrial parts of HMI and PLCs and drives, and the UPS and battery energy storage. It's about $22 billion- $25 billion TAM. I think looking into that whole number of today, going to the next three to four years, this will be almost double. Out of that, billion dollar achieving, and, you know, I think it's very much visible the kind of customer profile which we have built. On a billion dollar kind of a thing, we should be about INR 2,200 or 2,500 crores in the PCB front by that time, and largely driven by PCB applications. The industrial portfolio, which is HMI, PLCs, and inverters, plus the other one, should be contributing around INR 1,300-INR 1,400 crores by that time. Okay. I think my second question is on the consumer durable verticals. We have seen that Amber has significantly outperformed the industry in this quarter. While you maintain that 10%- 12% outperformance for the full year, some brands are talking about inventory build-up in the channel at this point of time. Do you see that business in the durable segment sort of slows down in the second and third quarter, given the fact that there is still some inventory in the system? Dhruv, on the inventory numbers, generally, the inventories are INR 1.4 million-INR 1.5 million. That's the standard inventories which the industry carries on. Now, the numbers which we have are about INR 2.5 million-INR 3 million. I mean, different research reports are stating different numbers, but that is the inventory. It's almost double the inventory what is normally kept by the brands because of the bad season or things. What we are saying is that whatever the industry will be, you know, normally, quarter two and quarter three are anyway the lean season for this industry. That's a historic trend. Quarter one and quarter four are the large quarters which contribute about 65% of the revenue. I think, depending on how the offtake will be in the festivities and in the quarter three, that will define where the industry is going to head towards. Whatever the industry will have, if it is flattish, we expect that we should be about 15% growth level. If it is negative, we will outnumber that number. If it is positive by 10%, we should be there because nobody can predict where the, you know, quarter four and how good or bad the season will be. What I would like to tell all of you is that in the last 25 years of my experience, we have seen seven bad seasons plus two COVID seasons which were impacted in March 2020 and March 2021. We have witnessed the disruption because of bad season plus COVID, nine years, nine seasons out of 25. Twenty-five years back, the industry was half a million mark. Today, the industry is 15 million mark. Despite all this, I would only request all of you not to see the Room Air Conditioner stocks from the quarterly numbers. You will end up buying at the wrong quarter and selling at the wrong quarter. It is to be seen from a long-term perspective. You know, one bad season is not an impediment for the longer-term outlook of this sector. We are very bullish. We are very optimistic. I believe, personally, and my team also believes, and if you map the number of current households, the division of HNIs, middle class, lower middle class, and BPL families, this complete curve is shifting in the next five years in the households. You can map the number. The number of 15 million should be about 35 million by 2030. That talks about 2.5X kind of a thing for, of course, there will be one or two bad seasons during their time. On the longer outlook, we are very optimistic. Wait, sir, if I may, can I speak to one small thing? Sorry. Sure, I'll get back. Thank you so much. We will continue in that you return to the question queue for follow-up questions, as there are several participants waiting for their turn. The next question is from the line of Praveen Sahay from Prabhudas Lilladher Capital. Please go ahead. Thank you for the opportunity and many congratulations on a good set of numbers. Sir, first question related to the consumer durable. In the consumer durable, you had also an indication of a commercial AC. There is a good expansion. Is it possible to quantify, like for any indication, how much of the contribution that has reached to? Second question is, sir, related to the acquisition of Power One. If you can give a 30-odd crores of revenue bifurcation in terms of the product mix, where it's largely coming from? On the commercial AC front, we don't want to give a number because, you know, it keeps on changing, but it's growing pretty well. It has grown more than 40% for us because we've added a product line. Now we can cater the entire range from 3 ton to 17.5 ton, both in the deductibles and the packaged parts. Plus, we've also added cassette air conditioners and, you know, tower air conditioners, which are add-on. We are now launching two more products by quarter four. It is growing pretty well. I think that's given us a good growth story for a good add-on that we have done in the sector. On the Power One front, your second question, basically, we will not be able to give the whole bifurcation of this. What we have, the number is that they are targeting INR 325 crores. Last year, it was INR 245 crores. It's going on a good, good growth. Looking into the solar installations and the requirement for battery energy storage space, I think this company has a very big potential of growing almost more than 40% for the next three, four years. It is largely in the solar segment only, whether it's solar inverter or EV charger kind of. Sorry to interrupt, sir. We request that you return to the question queue for follow-up, as there are several participants waiting for their turn. Thank you. Our next question is from the line of Vipraw Srivastava from Philip Capital. Please go ahead. Hi, sir. I'm audible, right? Yes, you're audible. Yes, sir. You're audible. This question is firstly on the EMS industry. Obviously, the long-term growth trigger is there, and we remain bullish in that. For this year, FY 2026, what kind of growth are you seeing? Should we continue with the quarter one run rate, or are you seeing any ramp-up in the coming quarters for the electronics division? In the electronics division, largely right now, if you see the split, we are about 60%, 58% to 60% is still the consumer durable. In consumer durable, the quarter two and quarter three are generally the lean seasons. I don't think that we will be able to maintain this run rate of 100% growth for quarter two. On the overall year basis, yes, we are heading towards a very, very good growth because the automotive segment has started kicking in. Telecom has gained traction. Air variable has gained traction. The smart meters is up and running. We believe that by year-end, we should be bringing the banking of consumer durable to as low as 45% and in the next three years to as low as 25% while growing the other segments. Got it, sir. Sir, the second question could be on the financials. In the segmental breakup, the other unallocable expenditure has gone up. What are the reasons for that? Secondly, why is the tax rate so high? Unallocable expenses have gone high. Oh, it declined, sir. Sorry. My bad. Okay, I think we'll talk on this separately. I need to check on this. Okay. Sir, why is the tax rate so high, 30%? Since we have some MAT credit available with us, in the main entity, we are still using the old regime of the taxation, which is 35%. Plus, we are getting some additional benefit on the additional depreciation. We are largely calculating our taxes based on the actual net cash outflow in taxes. We will shift to the new regime once all that benefit has gone away. Got it, sir. Thank you. Thanks. Thank you, sir. The next question is from the line of Sonali from Jefferies. Please go ahead. Sir, thank you for the opportunity and a big congratulations to the team for such a stellar set of results. My first question is regarding the two applications that you have filed under the electronics manufacturing component scheme, one worth about INR 10 billion, one worth about INR 32 billion via JV. Could you please help us understand the CapEx requirements for this over the period of the next five to six years? Also, how much of that do you expect to be subsidized from both the central and the state governments? In that end, I want to understand what's our CapEx outlook for FY 2026-FY 2027. Thank you, Sonali. Basically, on the two applications, the first one is Ascent Circuits. We filed INR 990 crores to be spent over the period of the scheme, out of which the first phase we've already announced last year, INR 650 crores, which is getting implemented and executed this year at a new facility in Hosur. The second is the remaining portion of that we will be investing after three years. The second application we have filed is the joint venture with Korea Circuits, which is INR 3,200 crores. In that, the first phase will be INR 1,200 crores in the very first year. We expect that the scheme, the announcements of the approval from the applications filed, will be done by maximum October or November by the government, and then 15 more months for the start of production. The real, I think, output, tangible output from this new JV will start coming in maybe quarter four of FY 2027. This is the first phase, INR 1,200 crores. Then after two years, another INR 1,200 crores, and then the last year, which is about the fifth year, will be another remaining portion. Now, coming to the incentive scheme, in HDI, 48% will be given back by the Ministry of Electronics and IT. We have negotiated 42% of the incentives by the state governments, which is to be reimbursed over the period of the scheme. There is a catch here. The MITI scheme is only applicable on the plant and machinery. The state government schemes are available only on building, plant, and machinery. On a net basis, if you will see, we will be able to get back almost about 70% of the net invested capital. This is not a pari-passu scheme. First, we will have to arrange funds and organize and implement, execute, and then apply for this. Out of 48% from MITI, 25% is the capital subsidy, which will be given after the start of commercial production. The remaining 23% is to be spread like it's a hybrid of top-line incentive and employee-linked incentive. It's a hybrid of TLI and ELI, which will be given in a span of six years. The cases with the state governments are similar. Their incentive also starts from the third year and spreads to the next five years. That's how we will get about 70% back. Sir, that's very clear. Is it fair to understand that per annum over at least the next two years, our CapEx in our consolidated balance sheet could be about INR 5 billion-INR 7 billion per annum and not more than that? If you see on the net CapEx side, I think it will be a little more because INR 650 crores is being spent this year in Ascent. We are putting up INR 150 crores out of the INR 350 crores announced in the railway division. There is a further expansion of the Sri City plant in this. Korea Circuits JV will be buying the land piece in this financial year. These all CapEx will come here. The remaining portion of the Korea Circuits JV will come to next year. Understood. Got it. Sir, and just one last question. What is the reason for the decline in the margins in the railways? Because last year's base was low, which is why we are checking. This is basically because of the product mix. Because Metro, we have sold more in Metro. We have a little less margins in the Metro. In railway, we have a little more. Nothing changes on the outlook of Sidwal for the financial year. You have seen these margins getting dipped because of commodity issues and because of the product mix. Even our bus air conditioning division is a little bit at a less margin, whereas our defense is at a high margin. Generally, in quarter four, defense, our AMC business, and our railway business is more. That's what brings the whole margin of the railway division back to the 20% + range. Got it. Sir, very clear. Congratulations again and all the best. Thank you, Sonali. Thank you. The next question is from the line of Nirransh Jain from BNP Paribas. Please go ahead. Yeah. Hi, sir. Good morning and congratulations again. Sir, my first question is on the double-digit margin guidance for the electronics division by next year. Is it fair to understand that this would primarily come from the uptake in the Ascent's new facility and the consolidation of the two acquired entities for whose benefit we might start seeing from third quarter this year itself? I also wanted to check on the Power One margin guidance. Till FY 2024, on the reported financials, the margins used to be in the range of 7%- 8%. What is leading to the 17%- 18% guidance on the Power One Microsystems? On the electronics margin guidance, you see, I'll just take you all through the journey of electronics, which is very important for all of you to understand. When we acquired IL JIN Electronics, this was a INR 300 crores company manufacturing printed circuit board assemblies for LG and IFB with 2.8% EBITDA. This was what we started and inherited. For the first three years, we were very focused on air conditioners and refrigerators and washing machine space. By 2021, the company grew to INR 500 crores, and the margins went to 4%. We were struggling to see why we are not being able to cross 8%, 9% of the range. We realized that we need to balance the volume and the value play. The large part of the printed circuit board assembly, if you want to be in the highest range of the margins, you need to be in the defense and aerospace. That is a high entry barrier business, very sticky business. Networking capital is a little stretched in that business, but margin profile is very good. Second comes the industrials, which is again in the range of 15%- 20%. Industrial itself is a very big ocean. You can divide it into the power electronics part, like Power One Microsystems products, starting from UPS, battery energy storage space. You can divide it into HMI, PLCs, automation-related products. Even the smart meters come into that. Even railway signaling also comes under industrial. These are large portions which are in the range of 15%-2 0%. Again, high entry barriers, sticky businesses, a little networking capital stretched, but good, decent ROCs. Third comes the medical sector, which is again 12%- 14% range. Then comes the automobile sector. Automobile can be further divided into four categories: EV, non-EV, two-wheeler, four-wheeler. With two-wheeler non-EV, which is like a high-volume business, it's about 7%. If you can go for four-wheeler EV, you can make about 8%, 9%. Then comes the telecom. Then comes air variable. The lowest is the consumer durable and appliances. When we realized this, that we are not doing anything wrong. If we continue to be in consumer durable, our margins will be in the range of 4%, 4.5% range. We have to balance the volume and value play. That's where the strategy of bringing new applications started. In 2022, we added air variable. In 2023, we added automobile. In 2024, we added smart meters and defense. Now we have added defense applications, these industrial applications by inorganic growth. We are taking gradual steps, careful steps, bringing the portfolio very cautiously. Then we backward integrated it into PCB to give more solutions and increase our TAM while being focused in the electronics space, which is into the PCB sector, which is a business of 15%- 20% range, depending on what kind of PCB you deliver. This is our journey. That's why we are confident that we will be able to deliver you a double-digit number by next year. On the Power One margins, I think, Sudhir, I'll ask Sudhir to answer that. Yeah. Hi. On the Power One, if you see their declared results of financial year 2024, they used to give their revenue, including the GST. GST gets adjusted in the notes to the accounts. If you eliminate that, then it is around 9%- 10%. Plus, there is some more salary they used to take, which is not maintainable after this transaction. They normally draw the larger salary before the transaction. That will become a maintainable salary, and that will bring the EBITDA level to around 17%- 18%. Sure, sir. Lastly, on the funding plans, out of INR 4,200 crores of CapEx plus another INR 700-INR 800 crores outlay for the acquisitions, have we been looking at the current funding plans, especially for the time gap before we start receiving the subsidies? You must have seen that we've filed an enabling resolution for the AGM for INR 2,500 crores of QIP. Our AGM is on August 11th. We believe that after the clearance, that is one direction we can take. The second direction is a lot of private equity funds who are choosing to invest in the electronics division, and that could be the second portion to begin with. We will see. We will take the right step at the right time. We'll keep you updated as any event happens. Sure, sir. Thank you and all the best. Thank you. Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead. Thank you for the opportunity. I wanted to get a sense, how is your RAC component mix right now? It keeps on varying, RAC components and the finished goods, because we don't define the demand side from the customers. We give solutions to whatever is demanded to us. Sometimes it is 60/40. Sometimes it is reverse, 40/60. Very difficult to predict and even give the number. Understood. Got it. Sir, last question on the unit run. What sort of growth are you looking for the next two to three years? Whenever we required the companies in the last seven acquisitions which we have done, our trend is that for the first six quarters, which is about 18 months, we generally get into the company. We integrate our systems, our cultures, we understand the company and the possibilities, and then drive the growth from there onwards. I believe currently, the situation in Israel, they have just moved out of the war. There are still tariff issues happening. I believe it will be going muted this year while maintaining their EBITDA margins. Yes, the very big TAM, they don't have a presence in India. We've already hired a very dedicated team for bringing those products in India. India itself has a $6.5 billion total addressable market for the products of Unitronics Israel. Secondly is the backward integration in the printed circuit board assembly and PCB. These two things we will start early, but the larger tangible output of the growth, you will see after about six quarters. Understood. Got it. Just a follow-up on this, the Power One is a different case. That way, we continue to grow upwards of 40% from acquisition only, what I understood. Power One is a growing company. They have all the required eligibility criteria for participating in the government tenders. Their customer profile is very niche, like Power Grid Corporation of India, BML, BHEL, NTPC, all of them, and the large solar installations. I believe that they will continue to grow in about the 40% range. Understood. Very helpful. Thank you so much. Thank you. Our next question is from the line of Mr. Achal Lohade from Nuvama Institutional Equities. Please go ahead. Good morning, sir. Thank you for the opportunity. Congratulations for fabulous growth. Just on the margin part for the consumer durable, if you could give us something, you know, for the quarter, we have seen a substantial revenue growth, but actually a margin contraction. If you could explain for the first quarter and also give us some sense about the direction, just the way you kind of highlighted for the electronics business. On consumer durable margins, we have a profile of business starting from 6% EBITDA to about 9% because some of the components are higher range. The assembly part is at a little lower range, but on the mid-level. We have also non-Room Air Conditioner components, which are at 10% EBITDA also. That's the range. It's very difficult to predict the mix of the components and the finished goods. Within the finished goods, there's a big range, starting from 1 ton to 1.5 and 2 ton plus all the star rating components. I think it's very, very difficult for us to give any number here. Yes, we should be in the range of 7% - 8% range in the consumer durable side of the business. On the electronics, we have already explained why we feel that we should be hitting the 10% + range next year. Our railway segment is already at about 20%, which we continue to maintain. On an overall basis, we are very confident that the control balance sheet will move towards about 8.5% to the 9% range. Got it. Just one more question, if I may, with respect to the accounting part of this, for these new ventures. Will this, the depreciation, be on the gross spend or will it be only on the net spend? If you could give us some sense. Depreciation will be on the fair valuation of all the assets. There will be a PPA, which will be done for both the acquisitions, as per the NDAs. Whatever is the real value comes, the fair value comes based on that definition will be charged at the console level. At the standalone level, the same definition will continue. Understood. Just on these HDI PCBs, where the subsidies are available, the depreciation will be on the gross value or the net of subsidies? It will be first on the gross value. As and when we are getting, there are two types of subsidies. One is CapEx subsidy, one is OpEx subsidy. CapEx subsidy will be reduced from the gross block, and then definitely charged after the adjustment of the subsidy. On the OpEx, OpEx will be routed through the P&L account. Understood. Perfect. This is very helpful, sir. Thank you and wish you all the best. Thank you. Thank you. Our next question is from the line of Vishal from Trinitra Asset Managers. Please go ahead. Am I audible? Yes. You're audible. Thank you for the opportunity and congratulations on a good set of numbers. I have just one macro question. Amber today supplied 20% of India's R&D inverter boards. With India's EMS industry growing at a good pace, what local bond shares are you planning for your inverter AC assembly by upcoming years? If you're asking only about the inverter air conditioners PCB applications, we are serving too many customers in inverter PCB applications. On the industry side, if I see, I think we are controlling about 18% to 20% of India's inverter PCB board requirement. No, I was asking, like, your bill of material you will source in a local way, like as the PLI scheme is promoting it. Yeah. Right now, there's applications going on. Factories are yet to be established. Once the component ecosystem starts getting available from here, we will be more than happy to source it locally. Like in the air conditioners case, because of PLI, cross-flow fans, inverter PCB boards, motors, valves, copper tubes, they have started, even compressors, they have started getting available from India. We have started sourcing from India. I believe that is one of the most successful PLIs of the government because the main objective was to increase the value addition. In 2020, it used to be 25%, and now it has touched almost about 68% local value addition in the air conditioner space. We are buying locally. Similarly, as the PLI scheme has been announced for the component in the electronics space, the moment factories are up and running, we will definitely assess them. Okay, thank you. That's it from my side. Thank you. The next question is from the line of Arafat Saiyed from Reliance Nippon Life. Please go ahead. Yeah, hi sir. Thanks for taking the question. I hope I'm audible. Yes, sir. You're audible. Yeah. Yeah, sir. If you look at, let's say, now we are serving almost 70% of bond for Room AC. The only thing missing was compressor. Now with the GMCC coming in also, as you said in the opening remarks, what kind of arrangement do we have with the GMCC, and how do you see, let's say, can we supply overall compressor in the next couple of quarters or how would that be? Our relation with GMCC was a very old relation. When we saw some of the noise on the shortage coming, though we were not convinced with the market's noise, we thought that it is better to stitch the deal. We signed a cooperation agreement with GMCC, giving them our core plan of compressor requirement for the next three years. They've agreed to expand their capacities in India. The expansion is going on right now. I think that new lines which they are putting up, which is not only exclusive, it is not exclusive to us. They will be serving other customers also. They are putting up this expansion based on these strategic cooperation agreements that will be up and running by November. Till three years, we don't anticipate any shortages now. Overall, from 70% bond, yes, we don't have compressor with us. We don't have refrigerant. We don't have copper tubes and aluminum and wiring harness. These are the new categories which we don't have right now, which contributes another 30% of it. As we move ahead and as the markets are moving ahead, we will do some, we are currently doing some feasibilities of increasing our bill of material. As soon as the decision is arrived and the feasibility reports are positive, we will definitely let all of you know. Thanks, sir. The second question is on, again, let's say, outsourcing versus insourcing. In the last couple of quarters, many, many brands now are focusing on in-housing insourcing. To some extent, I think that is now backseated. How do you think that insourcing and outsourcing play for the next couple of quarters? I have seen this strategy being shifted by customers three times in the last 20 years. Those markets saw it for the first time. Our business model is that we have mitigated two broad risks in our, as a B2B company. One is brands changing their strategies of insourcing and outsourcing. The second is brands exchanging market shares between them. We have seen earlier, you know, Korean companies were the leader. Then one Indian brand became the leader. In the future, we don't know how that will pan out. We are suppliers to everybody in the market. We are the integrated solution providers. Whenever the insourcing or outsourcing shift happens, we shift our strategy by supplying components to them. That's our mitigation strategy. We have 24 plants in India supplying components and finished goods, out of which 4 are finished goods and the remaining 20 are component plants which are located in the vicinity to all the customer clusters. That's what Amber has developed in the last 15 years, and that's what is paying dividends to us today. Thanks, sir. That's it from my side. Thank you. The next question is from the line of Madhav from Fidelity. Please go ahead. Hi. Good morning. Thank you so much for your time. I just wanted to understand the unit economics for the two CapEx, especially the Korea Circuits one. We've been investing INR 3,200 crores. Could you give some sense in terms of the revenue potential and the margin profile, and also the working capital required for this business? By when do you think, you know, we can ramp up this fully? I know it's coming up in phases. For phase one, if you could give us some color, that itself would be great. Madhav, on the Ascent Circuits in Hosur, INR 650 crores is getting invested this year. I believe by quarter four or maximum by quarter one of the next financial year, the plant will be up and running. That is for multi-layer PCBs. For HDI, which is going to be put up in UP, we are waiting for, we have applied to MITI. I think they will take another 60- 90 days' time to assess the applications and then approve the applications. After that, we have 15 months for our implementation and execution of the plant. FY 2028, first quarter, is when we expect this plant to be up and running. The asset turns in this business are close to about 0.75 to 1, different ranges. We have an offtake arrangement with Korea Circuits already signed up. The moment we sign, we expect that the very first year, we should be able to reach at least 0.75 x of the asset. In the first phase, we are going to implement INR 1,200 crores investment. You can say that in the very first year, we should be getting a top line of almost about INR 750-INR 800 crores from the time it begins the production. What about the margin profile and the working capital cycle for this kind of business? Margins normally in the multi-level PCB board is somewhere about 15%- 20% range. On the HDI side, depending on applications which you serve, it ranges from 15%- 30% also. If you are catering to defense applications, aerospace applications, you can go to 25% +. If you are serving to the IT laptops or telecom products, it is in the range of about 15%- 20%. The working capital cycle is almost about 60 to 70 days in this case. Okay. Basically, of the INR 1,200 crores, just to. We have a request. It's just for a short session. We'll rejoin the question queue for the follow-up questions. The next question is from the line of Samyak Jain from Marcellus. Please go ahead. Good morning, sir. Sir, my question is on the two acquisitions that we have made. On the face of it, it appears that it's a product company, whereas in our electronics, we are mostly contract manufacturing or supply components in our electronics division. Do you see any gaps in the capabilities that we currently have to grow the business, to both the businesses that we have recently acquired? I'll give you a little brief of Amber's history. We started as a component manufacturer of air conditioners. The first component we produced for air conditioners was the outside sheet metal box for window air conditioners. That's where our journey began. That's when we started assembling the boxes for air conditioners. Gradually, we backward integrated to create modes in the industry. Plus, we coupled up from 2012 onwards the R&D capabilities also. While you see the whole ocean of electronics getting consumed, you know, it doesn't or it is semi-knocked down or just the assembly is part of it. Yes, you're right. We started our journey from printed circuit board assembly. First, we grew different applications in that assembly business. We backward integrated into PCB. Now we have started coming into fully box-built capabilities also. Within the PCB, I would like to highlight that we are already doing box-built for telecom. We are doing 4G and 5G equipment. We are doing box-built for smart meters. We are doing full box-built for Bluetooth speakers and smartwatches. This is already in line. Nothing new. It is just the addition and the type of business which we have added. What I meant was currently, it's more of a contract manufacturing that we are doing. Whereas in these businesses, it would be a customer-facing B2B kind of wherein we would be directly dealing with all the customers who are consuming these products. Is there any difference or any understanding gap in my understanding? No. You see, like in railways, it is a B2G business we have. Then we have a business with OEMs such as Alstom, Bombardier, Siemens, GE, Thetagard, Bemel, and all. In air conditioners, we have business with OEMs such as Daikin, Panasonic, and all. Here, the unit electronics products, they largely have a business relation with companies like Ingersoll Rand, who are manufacturing compressors, companies who are manufacturing machines. They are their users. It's not a consumer-facing box-built business. Similarly, when you come to Power One Microsystems, it's a combination of B2G business plus projects business. On B2G business, they apply for the tenders. They give solutions for airports. They give solutions for Power Grid Corporation, for BEML, for BHEL. On the other side, on the solar panel installation, they take tenders for that. It's a B2G and B2B business, not directly B2C. There is no business which we have added that is directly consumer-facing. Got it, sir. My second question is on the consumer durables. While there is a slowdown in the AC business, a lot of OEMs, as well as your peers, have reported a worse set of numbers while we have grown at a healthy pace. Request you to rejoin the queue for the follow-up questions. The next question is from the line of Deepak from Sundaram Mutual Funds. Thank you for the opportunity. I'm audible? Yes. Yes. Jaspreet Ji, could you please highlight what was our YOY growth rate in RAC and RAC component and non-RAC component within the consumer durable segment for Q1? It's about 30%. Sorry, it's about. Okay. RAC has grown by 40%. RAC and RAC components both put together have grown by 40%. The non-RAC component within that number has grown by around 10%. The balance is the motors and the injection molding for the various other applications. That has also grown by like 10%- 15%. Okay. RSE component is 40%, and the remaining non-RSE component is around 10%- 15%. Is that understanding correct? Yes, yes. Okay. Sir, the second question is on CapEx. I just want to double-click on that because earlier, I thought we were spending around INR 350 crores on the Hosur project in FY 2026, and then again half of it in FY 2027. Now you're talking about spending INR 650 crores on the Hosur project in FY 2026 itself, right? Subsequently, around INR 1,200 crores in phase one for that Korea Circuits JV in FY 2027. I just want to double-check, what is our consolidated CapEx plan for FY 2026 and FY 2027? Could you please break it down by segment within consumer durable, EMS, and railway? No. Let me give you a clear picture on the Hosur project. Out of INR 650 crores, the land parcel was acquired last year. The remaining portion is getting spread into the financial year. The large part of the building and some part of the machinery will come this year, which will be around INR 350 crores or maximum INR 400 crores. The remaining portion of the CapEx, which will be the last payments of the machines when the machines arrive, will be in quarter one of the next year. Technically, it got spread in three financial years. The land came last year, building and some part of machinery this year, and the remaining part of the machinery next year. Okay. INR 350 to INR 400 this year, and the balance would be in next year, correct? That's right. Yes. Okay. Sir, on this Korea Circuits, how would that be? Thank you, sir. We request you to rejoin the queue for the follow-up questions. The next question is from the line of Rahul Agarwal from Ikigai Assets. Please go ahead. Hi, Jaspreet Ji. Very good morning. Congratulations for a good set in a weak environment. Sir, two questions. One is, you know, it looks like very hyper growth for Amber in electronics and windows ahead. You know, my sense was, you know, you're also getting into larger mergers and acquisitions now. The challenge Ascentially going forward could be managing people, you know, having heads of department, and then integrating, you know, all of this into, you know, Amber's culture. As of now, I just wanted to understand what are the gaps you've filled, you know, to handle such a large, you know, revenue. The P&Ls are going to be, you know, very big going forward. What are the gaps, you know, which are still left to be addressed? That's the first question. Secondly, on cash flow, I think there are a lot of questions revolving around, you know, how much is going to be the CapEx purely because there are going to be timing mismatches. Once you raise the funds, whenever in case the board approves that, you know, I just wanted to be double sure that what is the peak debt Amber plans, you know, over the next, let's say, just by March 2026? You know, how does the balance sheet shape up for Amber? If you, if Sudhir Ji, can help us on understanding the overall cash outflow for the business over the next nine months and what could be the peak debt, that will actually calm down the nerves a bit, purely because till then, we'll have full clarity on what is the equity funding plan. Then we can, you know, work around the further numbers. Those were my two questions, sir. Thank you. For the first question regarding the management bandwidth, what we do at Amber is, the moment we start the due diligence process of any prospective company to be acquired or to be partnered with, we first of all onboard who's going to lead that portion and who's going to integrate those companies after we acquire. That is a proactive approach which we take. Just to give an example, when Ascent Circuits was acquired, parallely, Santosh was onboarded, who was MD and CEO of the company, large company catering in India, multinational company. Parallely, Mr. Agarwal joined us, who was taking care of the electronics division with Sanjay Rohra. Now, since Power One Microsystems and Unitronics Israel have been onboarded, already the team leaders who will be heading this have been onboarded from large multinational companies. They have already joined. In fact, most of the vetting of the products and also the technical due diligence has been done by our own team now. This is a proactive approach which we take, and a good part of these both two acquisitions is that both the promoters are traveling our journey further with us. They will be with us for the next five years, and we don't think any big change coming in. The large part of the CEOs of the company, they have agreed to continue with us. We don't see any big change and challenge on the management bandwidth. As far as the Korea Circuits JV's CapEx is concerned, and the numbers on the debt levels, what you were asking, I would like to tell all of you that at Amber, I would, in fact, like to guide this to all of you that at Amber, we have taken a very strategic decision that we should be a net debt-free company by next financial year's end. That is our plan. In case, we have, though we have a policy and principle approved at the board level that we will never, ever cross two times of debt EBITDA, but looking into the current situation and the CapEx plans, we will be raising some funds. We'll keep you all posted. I think we are aiming to be a net debt-free company by next financial year. Jaspreet Singh, thank you so much for clarifying that, and all the best for the rest of the year. Thank you. Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to management for closing comments. Thank you, everyone, for joining on the call. For any further information, kindly get in touch with our Head of HR, Mr. Ravi Karbanda, or Rohit Singh from his team, from our HR team, our Strategic Growth Advisor, or our Investor Relations Advisors. Thank you very much. Have a good day ahead. On behalf of Amber Enterprises India Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.