Good afternoon, everyone. On behalf of ICICI Securities, we would like to welcome you all to Apollo Tyres Q3 FY 2026 earnings conference call. Today we have with us from the management team Mr. Neeraj Kanwar, Managing Director and Vice Chairman, Mr. Gaurav Kumar, Chief Financial Officer, and the Investor Relations Team. We will start the call with a brief opening remarks from the management team about the quarter gone by, and then we'll proceed with a Q&A session. Thank you, and over to you, sir. Thank you. Good afternoon, and thank you for joining us today. I welcome you all to the Apollo Tyres Q3 FY 2026 post-results conference call. We closed Q3 with consolidated top-line growth of nearly 12% and an EBITDA margin of 15.3%. I am pleased to share that in Q3 we have recorded our highest-ever quarterly revenue both on standalone and consolidated basis. On the domestic front, we saw robust double-digit growth in all channels. All our three product categories saw very, very strong growth. In contrast, in Europe the demand environment continued to be muted across key categories. We registered a flattish top-line Y/Y in line with the subdued market scenario. As we track evolving market dynamics, our focus remains on delivering profitable growth supported by new product introductions, premiumization of the portfolio, and disciplined cost initiatives. We expect to sustain and accelerate our top-line growth in India and in Europe. Let me now talk about key pillars of our vision FY 2026. Starting with R&D, we continue to secure additional model approvals from marquee PV passenger vehicle manufacturers across India and Europe, reaffirming our strong product competencies and accelerating our premiumization journey. We have also consistently achieved podium positions in independent European tests, underscoring product excellence, strengthening partnerships with premium OEMs, and expanding our OE footprint. On the digitized front, we continue to invest in artificial intelligence to improve customer service, drive efficiencies in our plants, and at the same time help in cost optimization. Moving to the branding side, we continue to demonstrate strong brand equity anchored in superior product quality and customer satisfaction. Our sponsorship of the new official Indian cricket team jersey has garnered us extensive media attention and coverage, driving unparalleled brand reach and visibility and adding distribution. This landmark association is a source of pride for all the Apolloites, has boosted dealer morale, and is already translating into positive business outcomes. Finally, sustainability has always been a key pillar for us. I am happy to share that we have won multiple accolades during the quarter, including first prize by our Chennai plant in the sixth National Water Awards in the Best Industry category, recognition from ASSOCHAM with the prestigious Water Management Award, and at the Indian Water Leadership Conclave and many others. These achievements reflect our unwavering commitment to environment, health, safety, and our sustainable growth. As part of Apollo's healthcare initiative, we have recently inaugurated our 35th healthcare center in Rajasthan, enhancing healthcare access for the trucking community. We have also partnered with the UN Development Programme to advance biodiversity conservation. With this, I conclude my opening remarks. But as we closely track market dynamics and our cost structures, our focus remains firmly on sustainable and profitable growth. We are proactively preparing for emerging challenges and opportunities, and I am confident that our strong fundamentals and strategic direction will support long-term value creation across our markets. Thank you for listening to me. I am handing over to Gaurav. Thank you. Thank you, Neeraj. Good afternoon, ladies and gentlemen. Continuing from where Neeraj left, let me share further details of our operations for the last quarter. The consolidated revenue for the quarter stood at INR 77.4 billion, a very strong growth of almost 12% over the same quarter last year. The consolidated EBITDA for the quarter stood at INR 11.9 billion, an improved margin of 15.3% compared to 14.9% in the last quarter and 13.7% in the same quarter last year. Coming to the balance sheet, our consolidated net debt level stood at a level of INR 13 billion as at the end of this quarter, substantially lower than the INR 26 billion at the end of previous quarter. The sharp decrease in net debt was driven by reduction in short-term borrowings as a result of strong operational cash flows. The net debt to EBITDA for the consolidated operations dropped to 0.4x at the end of December 2025 compared to 0.8x at the end of September. We witnessed robust demand momentum in Q3, leading to the highest-ever revenues on both standalone and consolidated basis. We registered double-digit Y/Y growth in our standalone and consolidated revenue, the highest growth over the last 12 quarters. The momentum was driven by a more positive demand environment in India, coupled with the added boost from the reduced GST rates for the industry. As Neeraj mentioned, enhanced brand visibility through our strategic sponsorship has also led to the strong performance, especially in the consumer tires category. In India, the revenue for the quarter was INR 51.4 billion, a growth of 13%+ over the same quarter last year. The EBITDA for the quarter stood at INR 7.5 billion, a margin of 14.5% compared to 15.3% in the last quarter, but significantly higher than the 11.1% in the same quarter last year. The profitability was impacted, as we have discussed over various calls and meetings with you people, by the timing of the spend on the sponsorship, which started in this quarter relative to our other A&P spends, and is only a near-term impact. The A&P spend would normalize from next year onwards. We witnessed that Q3 volume growth Y/Y was in mid-teens, led by a strong double-digit growth across all categories, replacement OE, and exports. Our premium brand Vredestein continued to get good traction and achieved highest-ever volumes in this quarter. On the demand outlook, we anticipate healthy momentum to continue into Q4 of the fiscal year. We witnessed continued strong demand during the month of January with double-digit growth. Moving on to the raw materials side, we expect the raw material cost to be steady in Q4. On the balance sheet for the India operations, the net debt level stood at INR 18 billion in India, significantly lower as compared to the September level. The net debt to EBITDA for India operations reduced to 0.7x from the 1.1x at the end of previous quarter. In our standalone results for this quarter, the exceptional item below the EBITDA includes a one-time charge of INR 259 million on account of the estimated obligation under the new Labor Code. This is based on actuarial valuation and best estimates in accordance with the accounting standards. Coming to Europe, the revenue for the quarter was EUR 180 million, flattish compared to the same quarter last year. The EBITDA for the quarter stood at EUR 32 million, a margin of 17.9% compared to the 17.7% for the same quarter last year, and substantially higher than the 12.7% for the last quarter. Continuing with our premiumization journey, the UHP mix for the quarter increased to 52% compared to the 48% for the same quarter last year. Our PCR capacity expansion in Hungary is progressing as planned, and we expect an acceleration in demand momentum going forward as we ramp up this capacity. Over the last four or five years, our strategic intent around the judicious use of CapEx in an effort to sweat our assets, prioritize deleveraging, and return on capital via pursuit of profitable growth has borne fruit. As seen in our strong balance sheet, we have had low levels of growth CapEx over this period and substantial improvement in our underlying operating metrics. We remain committed to this strategic intent while also ensuring that we are making the right investments for continued profitable growth in our core categories, particularly to capitalize on the demand environment as our capacity utilization has continued to increase through the year. Our current capacity utilization level in India is in the high 80s, and given our growth expectations for the near future, as seen by the current demand momentum, we would start hitting capacity limitations soon, and hence it was prudent for us to plan investments in our core categories for the next three, four years. Taking this into account, the Board of Directors in the recent meeting approved INR 5,800 crore CapEx for our AP plant for expanding both the PCR and TBR capacities spread over the next three financial years, that is FY 2027, 2028, and 2029. As part of this, there would be a growth CapEx of about INR 2,000 crore in FY 2027. Our CapEx guidance for FY 2026 remains as such. We will continue to provide you a clear picture of future CapEx plans as done over our calls over the last few years. Our strategy would continue to be focused on profitability, free cash flow generation, and return ratios. With this, I would conclude my opening comments. Thank you, and we would be happy to take your questions. Thank you. Participants, we'll begin with the Q&A session. If you have any questions, you can click on the raise hand button. We'll take the first question from Raghunandan NL from Nuvama. Raghu, you can go ahead. Congratulations, sir. Congratulations, sir. Thank you, Raghu. Good afternoon. My first question, sir, on the capacity increase. Roughly, if I calculate, there would be about 370 tons per day getting added because of the PCR and TBR addition, and the CapEx per ton seems to be around INR 16 crore-INR 17 crore. I was trying to understand, this is further higher compared to the previous CapEx which we have done, so I was trying to understand what has led to this increase in CapEx per ton. Sure, Raghu. Your calculations are broadly correct. It is about a 350 tons capacity addition leading to about INR 17 crore per metric ton of CapEx. The increase comes as a result of both the inflationary pressures, and you would see that our last big CapEx was back in FY2021, and also because the technology keeps moving. The capacities that we have set up have always been state-of-the-art, not just catering to a small segment of the market. It caters to the global OEMs, both in India and also the overseas developed markets of Europe and the U.S. Got it, sir. Sir, my second question was on the India volume growth, and if you can give a break-up between OEM, replacement, and export, and also your thoughts on how do you look at the outlook for replacement and exports for FY 2027. Sure. Our volume growth for OEM and replacement was in mid-teens, and in exports it was just short of 20%. So we've had a healthy growth, as I mentioned, across all the three channels. Got it, sir. How do you see the outlook, sir, for FY 2027? Outlook as of now, Raghu, seems to be very good. As I mentioned, even January has seemed good. As of now, the expectation is that this demand momentum will continue. Understood, sir. And last question before I fall back to the queue: on A&P spends, how much was A&P in Q3 as percentage of your standalone, and how do you see this ratio panning out over a year period? Because I think you have a tie-up with BCCI for a period of three years. Sure. So Q3, Raghu, would be an anomaly, given that there was activation apart from the usual sponsorship fee, so it would have jumped up. We used to be roughly around 2% spend of A&P as a percentage of sales. In a normalized scenario, we would be upping it to about 2.5% to drive the top-line growth, and that is where it should settle as we go forward. Thank you, sir. Thank you so much. I'll fall back to the queue. Thank you, Raghu. Next question is from Basudeb Banerjee. You may unmute your line and go ahead. Yeah. Thanks, Gaurav. A few questions here. To continue with Raghu's question, 2.5% would be the A&P ahead. How much was the A&P this quarter, exactly? Just one minute, Basu. It is clubbed with a little bit of other expenses, but A&P, along with certain sales promotion, was of the order of INR 150 crore. You were saying that elevated number will last till Q4? Yeah. In the short term, because even as we take our call on what are the A&Ps we want to continue, what are the ones we would reduce, it will take some time, Basudeb, because of existing contracts. And that's why I said the FY 2027 scenario would be a more normalized scenario for our A&P spend. Sure. Second things, as you typically give out your raw material basket prices, and from an outlook perspective, as you said, steady. So if you save currency on one side, crude and natural rubber price, international prices slightly inching up, so all those things, how to look at that? Whether gross margin can play spoilsport as such, or you don't think there is any chance of that under current outlooks? See, the international volatility, and we continue to live in times where some of these global events are very difficult to predict. Even within a week, two weeks, we have seen the rupee swing very sharply both ways. Middle of the quarter, we were looking at some further tailwind from the raw materials. Based on the international scenario, the current outlook given by our procurement team is a flattish scenario. So as of now, that's the best estimate we have. On your first part of the question, the prices for some of the commodities: natural rubber was around INR 195 per kg, synthetic rubber at INR 170/kg, carbon black at INR 115/kg, and steel cord at around INR 155/kg. Sure. Last question: so it's good to see a massive debt reduction, but in the P&L, if I see QOQ standalone interest outgo was, in fact, higher. So when should we see the reflection of the reduction in debt at the P&L level? It should start coming in because of a large part of the inventory, because the long-term debt repayment, Basudeb, was happening as per schedule. The big reduction was on some of the working capital borrowings as inventory reduction happened, and that may have happened in the last one month or 45 days. So it will start reflecting fairly in the next quarter. Sure, sir. Thanks. All the best. Thank you, Basu. We take the next question from Amyn Pirani. Amyn, you may unmute your line and go ahead. Yes. Hi. Thanks for the opportunity. Hi. Hi. My My question is on this capacity expansion. So first, a clarification: the capacity utilization that you mentioned in your release of 82% for PCR and 89% for TBR, is it just the Andhra capacity that you're talking about, or is this your full company capacity in India, capacity utilization in India, right? The release that was there, because there is a certain format, Amyn, and very valid question, was for the AP. For us, what is more relevant is the overall India operations capacity utilization. That, as I mentioned, is in the high 80s, both for car tires and truck tires. Okay. Okay. And so just a follow-up on that, you mentioned 7 million and 1.6 million that you have in Andhra, and you mentioned how much you will add. Just want to get a sense that including Chennai and everything else, how much will the addition be? Do you have that number handy? How much PCR do you have vis-à-vis the 3.7 being added, and how much TBR you have vis-à-vis the TBR being added? Sure. I mean, then let me talk of the capacity in terms of number of days. So our India capacity is a little short of 60,000. So let's say about 58,000, and we are adding 10,500. So we are adding about 17%-18% of capacity to our India PCR capacity. Similarly, our existing TBR capacity is 15,000+, and we are adding 3,600 tires per day capacity, so about a 20%. Okay. That's helpful. Just on the CapEx number itself, so I'm guessing this year we will be at less than INR 1,500 crore for the full year on a consolidated basis, given that we've done INR 1,000 crore. That's correct. Next year, you've talked about a growth CapEx of INR 2,000 crore. So then would it be fair to say that overall CapEx, including maintenance and everything, could inch in excess of INR 2,500? Because there's a PCR expansion ongoing in Hungary as well, right? So how should we put all that in context? So I would put the overall CapEx number for next year closer to INR 3,000 crore, Amyn. As you rightly said, there is the PCR expansion in Hungary, which was already underway. Some of it is coming in this year, some of it in next year. And then our usual maintenance operational CapEx across different functions always totals up to about INR 700-odd crore. So I would put that number at INR 3,000 crore for next year. Okay. I know it's a bit early in the day, but then in this 2027-2029 cycle, would 2027 be the peak year, or will 3,000 on an overall consolidated basis be the number that we should assume for this cycle? 29 would be a much more tapering-off, but 27 and 28, both years would be high CapEx. 28, in fact, might be even higher than the INR 3,000. Because that's the mid portion of that CapEx. Okay. Just one last thing on this: what is your ROCE right now? As we're getting closer to the end of the 26th plan period, any initial thoughts on how we should think of ROCE? Because on the one hand, growth is picking up, but CapEx is also picking up. Our current year ROCE, we are running at 13.5%, Amyn. It is in the band where we had set out our targets, but still not reaching that 15% target where we wanted to be. I think we crossed that number or at that number for two out of the five years. As we are finalizing the budgets, we are also on the drawing board for our five-year vision from April 26th to March 31. We would definitely be looking at ROCE leveraging and the free cash flows, taking into account the operational metrics, but also the fact that CapEx is kicking in. We'll have to come back to you on that. Sure. Sure. Thanks. Look forward to that, and I'll come back again. Thank you, Amyn. We take the next question from Joseph. Joseph, you can unmute your line and go ahead. Okay. Thank you. I have two or three questions. One is on the income tax. The standalone entity has been at about 33%-34% tax for some time. We haven't moved to that 25% tax. Now, with the changes that have happened in, I think, the MAT this year's budget, do you expect to go to a 25%-26% tax soon? Yes, Joseph. The tax team is examining, and with the change, most probably we would be moving to that tax bracket. So, effective 27? I think so. Sure. The second question that I had was on CapEx. So over the last three, four years, I think you also mentioned this in your opening remarks. Last three, four years, the focus was on bite-sized CapEx and debottlenecking, etc. And if I remember, pre-COVID, tire companies, including ourselves, used to announce INR 3,000 crore, INR 4,000 crore, big lumpy CapEx. But for the last three, four years, we have not seen tire companies do that. And in that sense, this is a change. So I want to understand what takes us away from the practice that we have had for the last three, four years and coming and announcing a very big CapEx. So, Joseph, it's not moving away from that intent. There are also times when, within the same building, you can do marginal increases in capacity with few equipment ordering, as we would call in manufacturing parlance, as line balancing. But we reached a stage where we could not further increase the capacity by line balancing, and hence, any further increase in capacity needed civil. And the moment you go reach that stage, it has to be of a certain quantum. Now, also, to be fully transparent about the CapEx, we could give you just an FY 2027 CapEx and say another nine months down the line that we'll give you the FY 2028 CapEx because that's when it is being incurred. But the fact is that the CapEx plan that we have needs to be of a certain quantum to be optimizing on the manufacturing capacity, the civil construction. Hence, it is better that we are transparent about the overall plan that is there in the mind as we kick off this CapEx. It's not moving away from that. This can then be followed again by the small bite-sized CapEx because, within that same building, if it is possible. It is not dictated by a change in strategic intent, but more as to where we stand vis-à-vis our capacity and capacity utilization cycle. And just to add to that, Joseph, we are also seeing shortages in TBR and passenger car and in farm. Given what we have been able to do with BCCI, we are seeing a lot of traction coming from the rural market, specifically in three categories, which are PCR, two-wheeler, and in-farm category. And that's where the growth is coming. In our estimates, in TBR, we are running at close to 100% utilization. So we need expansions coming. And like I said in my opening remarks, it's all towards a profitable growth. And Gaurav has already explained to you the fundamentals behind a factory. Understood. Just the last one, just some clarifications. One is the INR 3,000 crore that you mentioned. It is at the consolidated level, right? It includes growth, maintenance, and the European CapEx. That's correct, Joseph. And the last thing was, if you can share the numbers for reifencom for the quarter, that would be good. Thanks. You mentioned reifencom, Joseph? Reifencom revenue and margin, if you can share, which we typically do every quarter. Reifencom revenues for the quarter were EUR 82 million with an EBITDA margin of 8%. This is their best quarter, but yet the markets were weak, so. Okay. Thank you. Thank you, Joseph. We take the next question from Arvind Sharma. Arvind, you can unmute your line and go ahead. Hi, sir. Good afternoon. I hope you can hear me. Thank you. And thank you And thank you for taking my question. The first question is on the pricing environment. You alluded to a very strong demand growth. How is the pricing, especially in the replacement market? Pricing has largely remained stable, Arvind. It's held up. We haven't taken any pricing action. And people have been competitive, but the raw material tailwind has played into the margins, as you would see, for all the players. Got it. Thank you so much. And just one question more on the accounting purpose. You alluded to a fairly strong CapEx for the next three years. Will it be a bifurcated CapEx, i.e., some lines, as you said, some lines start coming in earlier, so the revenue starts accruing in parts over this period, or do you believe that the entire revenue, hopefully the demand, that is, comes only in FY 2029? No, Arvind, we will start seeing some revenue flow into FY 2028. And the reason for taking these approvals and starting next year itself is we see that we will start hitting capacity constraints towards the end in FY 2027. So we will have some capacity coming on stream in FY 2028, which will play into the revenue. And then it will ramp up. And only towards the second half of FY 2029 will all of the capacity be on stream. So actually, the full benefit of these CapExes will be there in FY 2030. Got it. But FY 2028 onward, given demand remains where it is, you would see some revenue start accruing? Yes, sir. Thank you so much for taking my question. That's all from my side. Thanks again. Thank you. Next question is from Kapil. Kapil, you may unmute your line and go ahead. Yeah. Good evening, sir. This is Kapil from Nomura. Good evening, Kapil. Yeah. My question is on Europe. When will the labor restructuring that you've had in the Netherlands plant start getting visible in terms of benefits, and how much benefit do you expect from that? Sure. So Kapil has announced the plan remains on track. The Enschede plant in the Netherlands will stop production end of June 2026, one quarter into FY 2027. The transition of the various product categories to the plant in Hungary and India is already underway. And we think that in the second half of FY 2027, you would start seeing the benefit of that flowing through. I would hold on to giving a margin guidance as we do not do across, but we think there will be a definite boost-up to the European operations profitability with that. Sure, sir. Thanks. And second question was, we've recently seen the India-Europe and India-U.S. trade deals getting announced. If you could share some of your broad thoughts on how the company can take advantage of these in terms of export potential, how are you looking at competitiveness of Apollo Tyres now after these deals become effective from this year or next year? So Europe is a very strategic and almost a home market for us, so a deal is welcome. The duty levels were anyway small. But with this announced closure of Enschede, the exports to Europe would even increase. So any kind of FTA is welcome. We would not have the details right now as to quantifying the benefits. U.S., of course, with the duty reductions, would further sort of, let's say, provide a boost. Our revenues had not suffered, but profitability had definitely taken a bit of a beating in the current year. That would start going up. Do you see a potential that we could gain a market share significantly in either Europe or U.S. after this? I'm not talking of short term, but maybe in the next 2-3 years. See, in both these geographies, we'll still continue to be a small player. Will we gain market share? Yes. But in the Europe replacement market, we are all of under 3% market. Our gaining of market share, also given the market size, would still be in decimals. We will gain market share. We expect both these geographies to keep growing at a significant pace for us. But within an overall context, India is and will remain our largest market. Sure, sir. Thank you. That's it. Thank you. Okay. We We take the next question from Yash Agarwal. Yash, your line is unmuted. Please go ahead. Thank you for the opportunity, sir. Congratulations on your results. Thank you, Yash. You highlighted that the domestic demand is really strong. So can you just, on each segment level, can you say which segment is having a better demand, like PV versus truck, and what is the channel energy level as of now? So right now, Yash, we are seeing a strong demand across categories. For example, even in Q3, the only area in the domestic market where we had a slow growth for us was PCR OE, which was more a result of some of our past actions of not taking up certain accounts because of profitability reasons. Otherwise, the growth across replacement and OEM for all product categories was very strong. As Neeraj mentioned, also with the Jersey sponsorship, we are seeing very good traction on the passenger car, two-wheelers, and farm, including in the rural segment. But even the truck demand has picked up very strongly, both from OEM and replacement. Okay, sir. And second question, on the channel inventory level? Inventory levels are fairly normal. There is no abnormality in that. My last question is on the Europe demand scenario. What's the outlook for Q4 as few of the other players in the industry highlighted pickup in the demand and things getting better at the back end of the FY 2025? Do we also see similar trends? Right now, Europe continues to be a weak market. Even in Q3, the quarter gone by, the passenger car Europe market, which is our most relevant category, the market growth was -1%. It sort of improved from a mid- to high single-digit negative to these levels. But it continues to be in the low single digit. I am, in fact, sorry. The Europe market was -4%. So there are signs of it improving, but still not to a point that it is getting into the positive zone, Yash. Okay, sir. Thank you from my side. Best of luck for the quarter. Thank you, Yash. Okay. We take the next question from Mihir Vora. Please unmute your line and go ahead. Yeah. Hi. Am I audible? Yes, Mihir. Yeah. Thank you for taking my question. So sir, basically, if we go through the CapEx, currently, you mentioned that it is around INR 17 crore per ton per day. And previously, when we had done this FY 2020, Andhra Pradesh CapEx at around INR 11.5-INR 12 crore ton per day. So this sort of an increase into a CapEx, so how are we seeing the pricing in a longer term in our products, basically, that how will the pricing move up going ahead in terms of realization because the CapEx cost has gone up? Mihir, I won't have the data readily right now, but we can come back to you as a team. The pricing does move up. Year to year, it doesn't seem evident. But each time the raw material cycle kicks in, the pricing moves up, even though there is pricing pressure. And then it sort of is sticky as the raw material cycle goes down. So we can present that data to you as to how it has moved over the five-year period. Right. But just apart from that, just an idea from you that if the RM stays stable where it does not, but if it stays stable, then what kind of hikes do we need to take to maintain that return levels on a plant? I wish we had this nice stable scenario of RM remaining constant. But we would probably need to take a mid-single-digit kind of price increase every year. Okay. All right. Sir, secondly, on the debt levels, what are we seeing in terms like right now, we are at a INR 1,300 crore net debt. But going ahead with the larger CapEx, how do we see our debt in FY 2027 going there? We will take on some debt as we go through FY 2027 CapEx and even FY 2028. In our estimate, with a normalized industry scenario, we would still be below our long-term stated goal in this vision period of below 2.0 net debt to EBITDA, even at the peak levels. Okay. Okay, sir. That's all from my side. Thank you. Thank you, Mihir. Okay. We take the next question from Naveen Baid. Naveen, you may unmute your line and go ahead. Yeah. Thank you for the opportunity. Just to confirm, the volume growth that you highlighted, which was in mid-teens, that's only for the standalone business? That's on the standalone business. Europe was. Yeah. Europe was? Europe was flattish. Okay. Thank you. Okay. We take the next question from Vijay Pandey. Vijay, you may unmute your line and go ahead. Hi. Thank you, sir, for taking my question. Thank you. I have a couple of questions. First, I wanted to check if you have any raw material hedging and currency hedging policy, especially connected to the global rubber tire prices. We've looked at raw material hedging, Vijay, and we came to the conclusion that we would rather not get into this speculation because very little of this also comes with delivery of the product. So after looking at it for quite some time, we came to the conclusion to stay away from rubber or crude oil hedging. On the currency side, all our borrowing, if it's in a foreign currency, is fully hedged 100% on both principal and interest. And even on our operational exposure, we are a net importer in India. Our hedging ranges between 75%-100%. Okay. So sir, because currently, the global rubber prices have been increasing over at least four weeks, what is the time frame after which we start seeing the impact on the P&L? Or is it like a quarter or two quarters? For our India operations, it's maximum a quarter, sometimes even lesser than that because what is sourced from the local sources pretty much starts sitting within a month. For European operations, the lag is about a quarter. Okay. And lastly, sir, just a note. So our standalone other income was pretty significant this quarter. Is it anything related to something significant? Again, it came at around. Yeah. It was a one-time dividend that was received through the overseas subsidiaries. That's why the number is significantly higher. This is just for this year, or does it come every third quarter? No, no. This is only for this year. Okay. Okay. Thank you. Thank you, Vijay. Okay. We have a follow-up question from Naveen Baid. Naveen, you may unmute your line and go ahead. Yeah. Thank you for the opportunity. Just wanted to check in terms of the pecking order of margins, especially for the domestic market. What would be the differential of margins between exports and the aftermarket business? Some color. So replacement always remains as the most profitable category. Exports is usually much lower than that. Of course, it can depend on the currency part of it. So TBR is wherein exports may inch up closer to the domestic replacement. But in general, domestic replacement would be always higher margin than exports. Got it. Got it. Thank you. Thank you, Neeraj. We have the next question from Nitin Agrawal. Nitin, you may go ahead. I think he's dropped from the line. Okay. A reminder to the participants, if they have any questions, they can click on the raise hand button. Okay. So we have a question from Mumuksh. Mumuksh, your line is unmuted. Please go ahead. Yeah. Thank you, sir, for the opportunity. Sir, I just wanted to understand, on the Europe side, on the demand there and over the next few years, I mean, what kind of capacity expansion where we need to expand considering the demand there? And any further updates on what kind of savings we can see with the Enschede plant closure, how it can positively the margins get impacted? Thank you. So Mumukshu has mentioned earlier, the Netherlands demand for the last 1 year has been in the negative zone. It's improved from where it was, from significant negative to slight negative across product categories. But it is still negative: PCR, agri, truck, all of them. Long-term trend of the European market is generally 1%-2% growth. So that should remain. As of now, apart from the capacity expansion, which is underway in Hungary, in near term, there are no plans of any further capacity expansion unless something very different plays out on the market demand scenario. As of now, the current expansion we are uqndertaking is good for us for a few years. Sorry if I missed on the savings, how the closure can help on margins, sir? On the closure side, again, as I mentioned, we will start seeing the results playing into our P&L numbers from the second half of FY 2027. There would definitely be a boost. At this stage, we would refrain from giving out specific margin guidance. Got it, sir. And sir, if I mean, you may have covered. Just on the advertising spend on sponsorship side, how are you seeing the impact on the ground in terms of brand recall or how you are benefiting from this new initiative? Neeraj also mentioned very strongly, we are seeing a very strong brand pull, and we stand committed to this sponsorship and the fact that the positive impact it is doing. Both in the rural areas on the consumer tires, we see a very strong impact of this A&P spend. Got it, sir. Sir, on the cost side, if you can mention, how would the Q3 RM break up there? And just recently, the natural rubber has gone up. I mean, how do you see the trend there in terms of cost side? Mumukshu, I'm not sure if you missed out some of the earlier question answers. So you joined late or what? Yeah. Okay. Okay. I'll note it down, sir. I just joined later, sir. Yeah. Thank you. Thank you so much for the opportunity. Thank you very much. We have the next question from Nitin. Nitin, you may go ahead. Also on the market share trend that we are seeing in both TBR and PCR and along with your OEM and replacement because last time you indicated that we've lost some market share in the PC segment primarily because of low margin bids that we avoided. So your thoughts there? So in terms of market share, we believe we have either maintained or gained market share in the current quarter. So some of that reversal has started. We still need to regain some of the lost ground on the PCR/OEM side, Nitin. As I mentioned, some of the decisions on account of profitability that were taken one or two years back. In OEM, it always plays out longer. So we are taking strategic calls on OE business. We will not, again, completely swing ignoring the profitability aspect. But we are recovering some of the market share that has been lost. Okay. So can you put a number on your market share for TBR and PCR in the replacement segment if possible? There is no official data available. We would put our TBR replacement share close to 30% and our PCR replacement close to 20%. Okay. Okay. Okay. Thanks. That was from my side. Thank you. Thank you, Nitin. Okay. I guess there are no further questions in the queue. I'll hand it over back to the management for any closing remarks. It's only to say thank you for joining our call and hope to see you in the next quarter. All the best. Thank you. Thank you.