Ladies and gentlemen, good day and welcome to the Aditya Infotech Q1 FY26 conference call hosted by ICICI Securities 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 the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Aniruddha Joshi from ICICI Securities Limited. Thank you and over to you, sir. Yeah, thanks, Zico. On behalf of ICICI Securities, we welcome you all to Q1 FY26 Results Conference Call of Aditya Infotech Limited. We have with us today Senior Management represented by Mr. Aditya Khemka, Managing Director, Mr. Anup Nair, President, Strategy and Business Development, and Mr. Yogesh Sharma, Chief Financial Officer. Now, I'll hand over the call to the management for their initial comments on the quarterly performance, and then we will open the floor for question and answer session. Thanks, and over to you, Aditya, sir. Yeah, thank you, Aniruddha, and good evening, everyone. First of all, thank you for joining us today for this maiden earnings call. We have uploaded the investor presentation on the stock exchanges, and I hope everybody had an opportunity to go through the same. 2025 has been a milestone year for Aditya Infotech. We got listed on both NSE and BSE on 5th August this month, marking a new chapter in our growth journey, and I would like to take this opportunity to thank the entire Aditya Infotech team, our bankers, advisors, and most importantly, all our investors for the trust you have placed in us. Since this is our maiden earnings call, I'd like to begin with a brief overview of the company and the strategic direction ahead before moving to the quarter's performance. Aditya Infotech Limited was incorporated in 1995 with the vision of bringing futuristic technology products to the Indian market much ahead of time. In our earlier years, we operated primarily as a distributor of leading global IT brands before moving into the security and surveillance segment in 2007, when CP PLUS brand was born. Over the years, Aditya Infotech has undergone a remarkable transformation from a distribution company to a consumer brand-driven, innovation-focused manufacturer. Today, we stand amongst the largest providers of video security and surveillance products, solutions, and services in India, commanding a 20.8% market share in FY25 and ranking as the third-largest manufacturer of surveillance products globally in terms of units manufactured, with over 4,100 employees reflecting our sustained leadership, scale, and deep-rooted presence across the industry. In 2017, we took a significant step focusing on the Make in India journey by forming a 50/50 joint venture with Dixon Technologies India Limited, namely AIL Dixon Technologies Private Limited, to establish a domestic manufacturing for CCTV products, including cameras, recorders, and all allied security products. Last year, in September 2024, we then acquired Dixon's 50% stake in the JV, making AIL Dixon a wholly owned subsidiary, and Dixon, in turn, retained 6.6% stake in Aditya Infotech, underscoring their long-term confidence in our growth journey. Today, we operate a state-of-the-art manufacturing facility in Kadapa, Andhra Pradesh, with an installed capacity of 1.5 million units per month spread over more than 3.5 lakh sq ft. This is India's single-largest single-location surveillance manufacturing facility and the third-largest worldwide. Our manufacturing capabilities are backed by strong research and development initiatives, and we have a dedicated R&D facility with highly experienced engineers in Noida who play a pivotal role in designing and developing new products, incorporating customer feedback, and enhancing existing technologies. We have also recently just opened a second R&D center in Ahmedabad and are in the process of setting up an R&D center in Taiwan very soon. Let me now take you through our products portfolio under our brand, CP PLUS. CP PLUS has emerged as one of the largest and most trusted brands in the security and surveillance segment in India, and our offerings span a wide range tailored to meet the needs of all customer vertical segments, from government to businesses to homes. We offer all kinds of CCTV cameras, from analog HD to IP network cameras, to Wi-Fi, to 4G, to thermal explosion-proof AI cameras, and so on, backed by all kinds of recording devices like DVR, NVR, and supporting products for providing complete bill of material under the CP PLUS brand to our customers. In our professional range, we have AI network cameras with features like facial recognition, low-light capabilities, and real-time video analytics. Our NVRs deliver high-resolution recording with remote access and scalable storage. We have products like automatic number plate recognition cameras for traffic and GPS-enabled mobile NVRs for trains, buses, to law enforcement cameras for body-worn, which we have body-worn cameras for police, and interactive displays for monitoring and collaboration in the control rooms. We also do a lot of products in the consumer home IoT space, where ezyKam smart Wi-Fi cameras for home use or 4G-enabled cameras for locations without wired internet and car cam dash cams for on-road recording provide safety for the consumer segment. Supporting these solutions, we also do a lot of cabling solutions, power solutions, and all the accessories finishing the complete BOM. Finally, our services and solutions include CP PLUS cloud storage for redundancy backup and mobile accessible video storage, CP PLUS AI, which delivers video analytics and process automation capabilities, and OnVigil, which is our AI IoT platform for monitoring services. We segment our market into four key segments: government, enterprise, small-medium businesses, and home, and CP PLUS customer base is well balanced in all of these segments. Our largest pie comes from the SMB space, which constitutes 60% of our revenue, and we continue to see strong adoption of solutions in the small-medium businesses. With our expansion of our exclusive Galaxy stores, which are partner-owned franchisee stores, this further enhances customers' touch and feel to our products. Large enterprise and government projects contribute about 30% of our revenues, driven by increasing participation in critical infrastructure and public safety deployments. We are continuously investing additional manpower focused on verticals, consultants, and large SIs to further strengthen our share in the space and already seeing good traction and key wins here. The last pie of 10% comes from the consumer home segment. Here, the strong brand recall of CP PLUS is a big USP. This segment is catered to via the online marketplaces as well as the offline channel. In almost every vertical segment in the country, we have tons of wins and successful case studies, be it BFSI, retail, hospitality, smart city, manufacturing, education, law enforcement, and so on. Our competitive edge is anchored in scale, brand leadership, innovation, and customer engagement. We are the largest manufacturer of surveillance products outside China and the first player to create a true consumer brand in India's security and surveillance industry. CP PLUS has the largest distribution network comprising over 1,000-plus distributors and 2,000-plus system integrators across more than 500 cities, supported by 48 branch offices and another 13 RMA service centers, building trust and driving growth. Our marketing initiatives, ranging from celebrity endorsements and high-impact campaigns to omnichannel below-the-line marketing and promotions, reinforce our tagline, "Uparwala Sab Dekh Raha Hai," and strengthen our leadership in the security and surveillance sector. CP PLUS is also deeply committed to skill development and capacity building in partnership with the Ministry of Skill Development and Entrepreneurship and has successfully engaged over 50,000 participants until now under our Mission Tech and other training programs, strengthening the talent pool and fostering industry-wide growth. To give you a flavor of the industry overall, this industry in India is undergoing a period of strong expansion, driven by rapid urbanization, rising security consciousness, and significant government-led infrastructure spending. According to Frost & Sullivan report, the Indian video surveillance market is experiencing a surge with market value estimated at INR 106 billion during fiscal 2025. The growth is expected to continue at a CAGR of 16.5% annually until FY30. The number of video surveillance units sold is also poised for significant growth from 39.7 million now in 2025 to go to almost 75 million by FY30. This growth can be attributed to several factors, including rising awareness and prioritization of security by both individuals as well as businesses, along with government initiatives promoting advanced security infrastructure in the safe and smart city projects. Additionally, technological advancements in security and surveillance technology and advanced video analytics like GenAI further make these products and solutions increasingly appealing. One important point that resets the industry now, which I would like to highlight, is the new norm of STQC certifications under the PPO and CRO set by the Government of India. The Standardization, Testing, and Quality Certification Directorate under the Ministry of Electronics and Information Technology plays a vital role in ensuring the quality and competitiveness of India's IT and electronics industry. MeITY has mandated that from April 9, 2025, all network CCTV cameras sold in India must be STQC certified. This regulation aims to ensure that devices are trustworthy, of good quality, and protect user privacy, addressing all cybersecurity risks posed by low-cost, uncertified imports lacking even basic security features. The STQC mandate creates a competitive advantage for Indian OEMs who are developing and manufacturing CCTV products locally as their offerings are more readily compliant. For a certified domestic brand like ours, with clear differentiators, including the largest portfolio of STQC certified product lines, a consumer brand that is literally synonymous with the category, largest manufacturing backed with deep R&D investments, and an unparalleled distribution reach, means that we are best placed to gain maximum market share and beat the industry growth rate to achieve our goal of over 25% growth this year. Now, coming to the business highlights which we have done over the last quarter, CP PLUS has currently the largest portfolio of STQC and BIS certified products under the new norm. In line with our planned investments into R&D and localization, we have opened new R&D centers in Ahmedabad and shortly opening one in Taiwan. We are also working on complete backward integration of components, be it enclosures, housings, cable connectors, power electronics, and also CCTV lenses. We had a few key appointments. Upendra Shukla joined as President of Manufacturing, and Rajiv Manchanda joined as GM Credit. We reinitiated our consumer marketing campaign, especially on the out-of-home advertising at all the major airports across the nation, emphasizing the STQC certified product range backed with CP PLUS TrustCode technology. I also would like to highlight that there is always a seasonality in our business, and Q1 is generally 18%-20% of our annual business, which has been the trend over the last many years. This quarter, we have been able to still achieve this growth even with the limited supplies of STQC certified products, which came in the end of June, and also the channel stock of non-STQC was getting consumed. Let me now invite our CFO, Yogesh Sharma, to walk you through the highlights of our IPO and the financial performance. Thank you. Thank you, Aditya. Good evening, everyone. This is Yogesh Sharma. I warmly welcome everyone to our earnings call for Q1, FY26. Over the years, our business has delivered strong, consistent growth on both revenue and profits. Building on this momentum, our strong performance has continued into the first quarter of FY26 also, reflecting both the resilience of our business model and the growing opportunities in our industry. On a consolidated basis, our revenue from operations grew by 16.4% YoY to INR 740 crore in Q1, FY26. EBITDA stood at INR 64.9 crore, reflecting a growth of 47.5% YoY. EBITDA margin stood at 8.7% in Q1, FY26, as against 6.9% in Q1, FY25, which reflects an increase in 180 basis points. Our PAT stood at INR 32.9 crore, reflecting a growth of 46.1% YoY. PAT margin stood at 4.4% compared to 3.5% in the same quarter last year, which reflects an increase of 90 basis points. In August 2025, our IPO successfully raised INR 1,300 crores through a combination of cash issue and offer for sale. From the INR 500 crores cash issue, we allocated INR 375 crores towards the repayment of borrowings. As of 31st May 2025, our total borrowings stood at INR 423 crore. This repayment has reduced our gross debt by 89%, bringing it down to just INR 48 crore. This substantial deleveraging will significantly reduce our finance cost, enhance profitability, and free up internal resources to fund strategic growth initiatives, capacity expansion, and innovation programs. The remaining proceeds from the IPO will be deployed towards general corporate purposes, further strengthening our liquidity position and providing financial flexibility. By achieving this debt reduction, we have reinforced our balance sheet, improved our debt-to-equity profile, and created a strong platform to pursue long-term value creation towards stakeholders. Now, handing over to Aditya to throw some light on the full-year guidance. Thank you. Thank you, Yogesh. Building on to this strong start of the year, we are confident of delivering robust growth for the full-year FY26. On the revenue front, we expect to close in the range of INR 3,900-INR 4,100 crore, delivering over 25% annual growth, beating the industry growth of 16.5% here, thereby leading to further market share gains. The STQC guidelines have taken effect in the market, and we envisage higher growth both in terms of units as well as value in the IP camera segment and also the higher-end products used in projects. The EBITDA margin is expected to be in the range of 10%-11%, and the PAT margins are expected to close in the range of 6%-7%, which is driven by a brand mix improvement, margin expansion in the CP PLUS business, cost savings from the debt repayment post-IPO, full consolidation of AIL Dixon Manufacturing Entity, and scaled efficiencies from overall plant operations, which will further, hopefully, enhance margins. Q1, FY26 has set a strong foundation for the year ahead. With a robust balance sheet, supportive industry tailwinds, and a clear roadmap, we are well poised to deliver growth ahead of the market, supported by structural margin levers, cost efficiencies, and financial discipline. We remain committed to deliver profitable growth and creating long-term value for our shareholders. I would like to once again thank everyone for joining the call today. And we can open the Q&A session, please. 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 the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from Rajesh Kothari with Alf Accurate Advisors. Please go ahead. Good afternoon, sir. Congratulations for a good set of numbers. I have two questions. My first question is, with reference to this new norm STQC, which came into force very recently, how do you see the early trends and how do you see the overall industry environment to change? Because that means effectively the competition, particularly from Hikvision, basically will reduce. And number two, in long term, how do you see what are the levers which can help us to improve the margins, EBITDA levels from current levels? Yeah. So thank you. So I'll take the first one on the STQC, what's happening in the markets. So this went live on the 9th of April, and markets, most of the brands actually finished their inventories, last stocks in the market prior to that. So those inventories are now getting consumed. And post-STQC, like I mentioned, this is more like a reset of the industry. The neighboring country brands, because of the trusted supply chain and the various clauses which are there in the whole policy, and the semicon and the critical components cannot be from those countries or those brands. Those will generate a vacuum in the market, which is the opportunity for domestic brands or maybe global brands to capture. As we speak today, only a few Indian brands have a few models certified, where CP PLUS is the largest certified range. The global brands are still in the process. The Asian, especially the brands from our neighboring countries, are in the scaling down mode, looking at newer product categories. This quarter, we see this transition to creep in because the non-STQC inventory will dry up. We are already seeing signs of that. So I think we will start seeing the shift towards a resetting of the market share as we progress month by month. And the second question you said was the margin levers, right? So several margin levers. I don't know if you want to take next. Yeah. Yeah, hi, Rajesh. So like you were explaining on the presentation, there are multiple levers that we see for the margin expansion. One is the product mix itself. So as we grow our own brand more aggressively, the share of revenues within the company will be over almost 90% of our own brand. So that will also lead to margin expansion. Plus, the margin realizations of CP PLUS itself is increasing post-STQC. The other point is, like Yogesh was mentioning, we have retired debt in the company. So this will also lead to significant financial cost savings. And third is we are now fully integrating AI and Dixon, which was our manufacturing JV, which is now 100% subsidiary. So this is also leading to efficiencies of scale that are coming in manufacturing. And we are also increasing the localization content in our product line. This is also increasing the margin levers in the company. So would you like to quantify in terms of over the next two, three years, how do you see all these four factors leading to what kind of target EBITDA level margins you are expecting before interest and before depreciation? So Rajesh, like Aditya was mentioning, this is a transitionary year, and the next few quarters is when things will settle down and we'll get to a steady state. So in terms of guidance, at least for the year, you gave your guidance that in EBITDA levels, we'll be somewhere around 10%-11%, and PAC would be at about 6%-7%. I think it's a bit too early to give you individually how much each of these will contribute because the norms have just come in. And like we said, our own STQC product lines just started flowing in from June end. So I think it will take us a couple of quarters to see how the market settles and what kind of market share gains also we can do. So possibly we could answer this query maybe in two quarters down the line. Great. Thank you, sir. Thank you. Thank you. Our next question comes from Dhruv Jain with Ambit Institutional Equities. Please go ahead. Thank you so much for the opportunity, sir. Thanks for the opportunity. My first question is on the channel inventory. So post-STQC implementation, what we understood was there was a lot of pre-buying in the market. So just want to understand where is the market right now in terms of channel inventory? And incrementally, how are you looking at that sort of getting eased out through the year? That's my first question. Yeah. So Dhruv, right? Dhruv Jain. Yeah. So Dhruv, yeah, I think so as I just mentioned, the inventories are seeing signs of drying up. So I don't think they last beyond this quarter. Even in this quarter, many models, like there is a wide range of products, many SKUs have dried up. Certain parts of the country have already started shifting to the new norms and the new range because they are adopting faster. We are seeing good traction in South and West India already on STQC, and things are already shifting, so we believe within this quarter, the whole old inventory will literally dry up completely, and the whole market has to be fully shifted towards the STQC norms. Sure. My second question is, in this quarter, you have seen a very sharp growth, right, so I just want to understand, firstly, what was the mix between volume and value growth, and incrementally, what is the price differential between a non-STQC model or, say, an IP camera versus the other cameras? Because we've also seen a very sharp improvement in the gross margins. So Dhruv, the revenue growth for last quarter was only about 16%, which is more or less in line with the industry. So it's not been a sharp growth, especially when we are guiding for 25% plus growth in the whole year. So I think it's just been normal growth. And like we mentioned, our STQC supplies came in only towards the end of June. So the price rise was only in these STQC IP stocks. So whatever revenue growth that you have seen is purely mainly driven by the quantity because the value increase in terms of the ASP increase has not really kicked in. That impact you will see in this quarter when we will be selling majorly STQC IP stocks. So broadly, what's the pricing differential between STQC and non-STQC models? What's going to be the price hike that will come through in the market? Yeah. So I can explain it in the ASP. We segment the IP cameras into entry, mid, high, three buckets. In the higher end, the differential will be smaller, 5%-7% only, because those products were already made on a very high-end SoC with a lot of memory and security already. In the mid range, it will be probably 10%-15%. In the low-end entry level, now you can't make products on those cheaper SoCs. You need to double up the memory, put in a lot of fortifying technology inside the product to make it fully secure. There, the differential will be over 20% on the cost. I get the point. And sir, if I may, just one question. So you also, if I'm not wrong, had a Dahua business, right, in terms of distribution. So if my understanding is correct, that business will completely phase out, and you will start sort of pushing a lot more CP PLUS products. So that should be how we should think the margins, right? And if you could spell out, what's the difference between the margins for that Dahua distribution and your own margins? So that will help us in terms of understanding how this margin expansion will come through. So I think the differential is almost 3x because that's a pure distribution business, like a distribution trading business. It has been a one-and-a-half-decade relationship. But now, with the new norms, most of these brands from the neighboring country are getting disqualified. So we see a sharp decline in terms of revenue with respect to those distribution pie. And as I mentioned, the domestic brands will scale up. With CP PLUS being the largest player, we see a larger pie coming to us. So I think that shift will happen, and the differential is 3x the margin. Great. Thank you so much and all the best. Thank you. T hank you. Thank you. Our next question comes from Gokul Maheshwari with Awriga Capital Advisors LLP. Please go ahead. Yeah. Hi. Thank you for the opportunity. My first question is, how much of your business would be coming from tender businesses, and what would be the terms of the trade different than your normal other B2C business? So Gokul, we, first of all, don't participate in tenders as a company directly. So our sales and go-to-market is threefold. One is our dealer distribution and channel network, which is the distributors over 500 cities. Second is system integrators, which could be PSUs, large-scale PSUs, or large-scale system integrators or regional system integrators. And third is the online marketplace or the LFR market segments. As a brand and a company, we provide products, technology, solutions, service, support, handholding, everything, but we don't bid to the end user or don't do direct end user business. With respect to the trade terms, it's in the distribution and SI, pretty much similar. If there is a large-scale case, we also try to work on secure terms because the exposures are larger. And generally, these are sometimes large organizations picking up those large cases. Okay. Great. And my second question is on the Dahua brand. This brand is going to decline this year. So in your overall guidance, what is the growth rate which you are assuming for the core CP PLUS brand and the sort of decline which you are budgeting for the Dahua brand? Hi, Gokul. Anup. So yes, you rightfully pointed out that Dahua will slowly start declining because as the non-STQC IP stocks of Dahua that we have, that is the only IP stock that is going to sell. And if you see the overall industry growth rate also, when we are saying that the industry is growing by 16%, 17%, it's the IP portfolio which is growing almost 25% plus, where these players cannot participate. So just to give you an indication, I think this year also in Dahua, in terms of revenue, we would possibly see a decline of more than 25%, 30% in the Dahua revenues year on year. And you already have the guidance of the company revenue. So all that would be coming from CP PLUS. Great. Great. Thank you so much and all the best. Sure. Thanks, Gokul. Thank you. Our next question comes from Ram Modi from Prabhudas Lilladher. Please go ahead. Hi, sir. Thanks for the opportunity. So just in terms of you alluded for the guidance for this year, I just wanted to look at if for a three-year to five-year perspective, what kind of consistent growth we can achieve in the market and what can be the TAM as well as how fast is the market growing for if I'm looking at it for a three-to-five-year perspective? So, Raman. So when we quoted the Frost report, so in terms of units, this market is about 4.5 crore units of camera this year. And Frost is estimating that this will become almost more than double by 2030. And so in terms of the industry growth rate, this industry is growing at both value as well as quantity terms, about 16%-17% for the next five years at least. Now, our guidance is that even in the past, if you take a three or five-year period, we have always been beating the industry growth rate. And with this opportunity of STQC and with all the major modes that we spoke about in terms of R&D, manufacturing, distribution, reach, and brand, we will consistently easily beat the industry growth rate. But slightly difficult at this point in to say what would be the CAGR over a five-year period. But at least in the internal perspective, we always try to see that between 20% to 25% CAGR. And that's what our past has also been in. From the last five-year period also, the CAGR has been about 20%. And for this kind of CAGR growth, if we achieve, what kind of CapEx we would be needing to do for this kind of growth? So I think we have already budgeted our CapEx for the next two years for factory expansion and a few other needs. So it's probably about INR 200-odd crores at the moment, unless we look at more JVs or more acquisitions, which are in the future possible. But for this kind of a growth, I think in the next two years, this kind of CapEx will be there. I believe we should be able to fund it with the net free cash flows. Okay. And last question from my side. Any adjacencies for growth which you are looking at, or you will be concentrating on the security systems itself? Yeah. So yeah, there are a few adjacencies we are looking at in terms of associated product lines. And we are possibly looking at inorganic opportunities also here. We'll come back to you as and when we are sort of shortlisted on that. As of now, the growth in the core CCTV category itself is so strong, and we are at the moment putting all our energies and focus over the next few quarters to ensure that this market share gains happens and we encash this opportunity of the STQC regulation. But yeah, it's in our mind, and it's on our table plans in order to grow the categories. And we should get back to you soon on this. Okay. Thanks. Thanks for this. Thank you. Thank you. Our next question comes from Priyank Chheda with Vallum Capital. Please go ahead. So what would be the volumes that we would have sold in this quarter on a total level? And would it be possible to divide these volumes in IP and NLR cameras? Anup, yeah, I think it's slightly difficult to go into those details on this call. We can possibly get back to you on those details. So from an education perspective, I think what will give you an idea is probably in this quarter, we'll sell 3x the quantities of IP cameras that we sold in the last quarter. So last quarter is really not a benchmark, but we can get back to you with the quantity breakups. Sure. And one last question on this STQC implementation which has happened. Have you seen the final cameras that we're getting imported? I believe on a full year, India used to import somewhere around INR 5,000 crores worth of cameras from the neighboring countries, mainly. Have you seen that going down with the implementation of this STQC? Sorry, what is the figure you said? From the HSN code which I could gather, it was roughly around INR 5,000 crores. This is imports of which overall from the or what is this figure is imports of? Of the total CCTV cameras. Yeah. So basically, that has already stopped. Finished product import is literally very low now because in IP cameras, so only analog some might be doing, but that's a flat market. In the IP camera space, unless you are qualified, because see, what has happened is BIS has taken off all the old R numbers of all the brands that were registered who are not STQC qualified. So this also happened in April, end of April. And to obtain the new BIS, it has to go model-wise. You have to get the certification done and then get the R number from BIS. So it's a process which is being followed, and without that, you can't sell. So I don't know if some people doing that without the R number is a different story. That's a gray market, which might be minuscule, but largely, we see a great reduction on that. Got it. And in terms of our capacity, I suppose we had a capacity of 1.5 million cameras per month, roughly around 18 million units that we have. Would it be possible to follow the timeline? And then we are looking at the expansion, right, or nearing doubling of the capacity. So what would be the timeline by when the capacity expansions would come online? So it's already in action. So last quarter, we did not utilize our full capacity also because of the certification process and the old stocks in the market. This quarter, we are trying to scale up our capacity to almost 90%-100% level. And by next quarter, we will already be at almost 30% higher capacity build-up. And we plan to scale up to 2.3-2.4 million by Q1 of next financial year. Okay. Got it. Thank you. Thank you. Our next question comes from Anuj Kashyap with A3 Capital. Please go ahead. So congratulations on your debut, sir. I wanted to know in percentage terms how much of our supply chain is import-dependent, still import-dependent in percentage terms. So see, I don't exactly can not define percentage, but all the Semicon, because we don't have fabs in India, are coming from abroad. Semicon means semiconductor SoC, memory, DRAM, these things. And the passive electronic components are also coming from abroad because those ecosystems still do not have either quantity, capacity, or the quality or the cost capacity in India. And it's coming up. The government is pushing it, but until it comes, we are dependent on import, which is almost 60% of the BOM. The balance 40%, we are already in motion to localize, which is all the enclosures. We've already invested in most of the housings, molds, cable connectors, all those designs and everything. And it's already localized with third-party manufacturers, and the company has plans to set up in-house manufacturing also in the near future. So we'll use both in-house and third-party. Same with cable connectors. We are doing some work on that also in-house and outside. We started the lens manufacturing also in India, and that will go into the volume in the coming quarter. So those things are in motion. So right now, in fact, it might be maybe more than 70%, but it will come down to 60% until the electronic components ecosystem comes in India. And that is true for almost every electronics. Yes, the government is doing it. But sir, is it country-specific imports? Do we have diversification like Taiwan or China? Are we only dependent on a single country for that? No, no, no. See, in the new STQC norm, first of all, you can't use a Chinese SoC or a critical component. So almost out of that 60, 35% of the BOM, which is the core and the heart and the brain, cannot be from China. So that is all moved to Taiwan fabs and Taiwanese or American companies. And we have already aligned with all of them. Over the last two years, the R&D and the teams have been working on that. The passive electronics, we continue to do some from Taiwan, some from China or Singapore. Those are small passive electronics. And sir, one more question, sir. In the near future, like one to two years, the ecosystem gets developed and we have our own lineup. So are you considering export even for the CP PLUS brands? Are we taking into consideration that export? Yeah. So, see, in the past, we have sold products globally in many countries, and products have been successfully deployed and used. We could not sustain some challenges from the Chinese in the past years. But now, the whole world is changing. The geopolitics is changing. And we have a great China plus one opportunity. I think CP PLUS is best poised for that China plus one strategy. So while we have too much on our plate right now to do within the domestic market, which we will, of course, the focus will be to solidify further the home turf and gain more market shares. On the parallel, on the other side, we'll start taking baby steps on the export opportunity and the China plus one strategy. So in the next coming years, for sure, that's on the cards. And sir, sort of add-on, sir, export will be margin accretive for us. That's right? The position? Margin accretive. Yeah, yeah. Too early to say, but yeah, it should be. It should be, right? Basic logic, sir, it should be like that. Congratulations for the future, and we hope we get to see you more. Thank you so much. Thank you. Thank you. Our next question comes from Raman KV with Sequent Investments. Please go ahead. Hello, sir. Can you hear me? Yes, we can hear you, Raman. Yes, sir. Please go ahead. Sir, I just want to understand what's the production capacity of this CCTV cameras annually? Like you mentioned, it's about 1.5 million monthly, so about 18 million annually. And we are increasing it to 1.9 from next quarter, going up to 2.3 by April. That's the plan. So next quarter, investments and factory expansion is already in motion. And sir, I just want to understand the unit economics. So how much, on an average, what's your selling realization of CCTV camera? See, it depends again because this is the capacity for all camera recorders which is put together. Analog cameras realization is, let's say, INR 1,000. The IP cameras can be 3x of that value. So it depends. The consumer home cameras could be INR 1,000-INR 2,000. So that's the ASP we generally do. Of course, there are project products and all like PDVs and all which go INR 30,000-INR 40,000 also, which are in large projects and all. So it depends. So we generally don't look at unit economics because it's very diverse. Okay. And sir, I think yeah. Go ahead. Yeah. Sir, you said we don't have in-house manufacturing, right? We outsource the manufacturing part of the remaining 30% of the entire ecosystem. Is my understanding right? No, no, no. I think everything is in-house. Nothing is outsourced from outside. Earlier, you mentioned that you have a third-party manufacturer to molds and cable connections. No, no, Raman. It was at 50/50 JV, which was set up almost six years back. As of last September, we acquired the remaining 50%. So it's a 100% subsidiary. And this was 50/50 JV with Dixon. Now it's a 100% subsidiary. The name is AIL Dixon. So the whole capacity is in the 100% subsidiary, and it's completely in-house. Okay. Sir, and I just want to understand how much CapEx will be required to set up a manufacturing unit? Let's say about one million pieces per month. So see, we don't see it that way. There are other processes also. I think in terms of the further we spoke about the capacity increase that is going to happen. In terms of our CapEx over the next two years will be about INR 200 crores. So that includes the capacity expansion as well as the backward integration and the more localization that is there. And from this INR 200 crores of CapEx, which you are planning to incur over the period of two years, how much incremental revenue can we add? So Raman, we are not focusing for the year beyond, but in terms of capacity, we can say that we'll increase the capacities to almost 2.5 million. So maybe 60% further revenues growth can happen. But at the moment, we are not guided for the next year. But we think this capacity expansion will be not. I just want to understand over the period of that you said the INR 200 crores CapEx will be taking over the period of three years, next three years. Two years, Raman. Two years. So I just wanted to understand how much will be the peak revenue from this CapEx? So the CapEx that we said would be over the next two years, and that should help us grow our revenues by possibly 60% over the next two years. Okay. And sir, my final question is with respect to the recently acquired Dixon JV. How much did you pay to get the 50% of the remaining to Dixon? And does Dixon still hold any minority shares? Yeah. So all that information was there in the DRHP. So this deal happened as of September of last year. But that was based on, I think, the financials of the year before. And the deal was at about INR 4,000 crores, but it was not a cash deal because Dixon is a strategic partner and wanted to be part of this journey. So it was a share swap that happened, and they owned about 6.5% in the parent company. And that deal's valuation at that point in time was INR 4,000 crores. But it's more of a strategic deal because they have been a partner for almost six plus years, and it was, there are other parameters that. So they still hold 6.5% in the manufacturing JV, right? Yeah, almost based on whatever dilution has happened in the IPO. Okay. Thank you, sir. Sure. Thank you. The last question for today comes from Mulesh Savla from Shah & Savla LLP. Please go ahead. Thanks for taking my question, and heartiest congratulations on bumper listing and good set of numbers, and also, thanks for a very detailed and in-depth commentary on the company's business model. Most of my questions have been answered, but sir, I just wanted to have one clarification on local content in our products. You said about 40% we will reach. So this 40% of local content will be 100% manufactured by India or will be, I mean, by the company or will be sourcing it locally? Yeah. So I think the starting journey will be mixed bag. So like I said, things like housing, cable connectors, lenses, we will do in-house also and third-party also. At the moment, difficult to say whether we will stop the third-party because there are so many models, so many wide, diverse product range, and it will be new for us also. So I don't know whether we will immediately shift all in-house. Possibly, we'll keep both. And then we see the efficiencies and the optimizations, what works better for us, and take a call as we progress in the coming two, three years, whether it's all third-party, all in-house, or a mixed bag. Okay. Okay. And one last question from my side. We have a good expectation of 20%-25% CAGR for another three, five years. I just want to know, as per management's thought, what can be the challenge or negative which can restrict our growth to this level? So you see, if you look at last five, six years, we have been delivering 20-plus CAGR in the adverse situations where we were challenged by the onslaughts of some of the Chinese giants, and some of them were government-owned companies also by the Communist Party of China. So I think we have fairly done well to reach this position. Moving forward, we feel we are in an even better position with the tailwinds provided by the government to have cybersecurity norms and other things in place. And with the further actions that the company is doing on literally every front, be it R&D, manufacturing, localization, or the go-to-market different strategies in different verticals. So I think we should be able to do that. Now, whether we scale X or a Y will, I think, all depend on how well we execute it. So I think we are all day in, day out working on our people, our strengths, and our execution to see that we are able to deliver what we are talking. Good. So even EBITDA margin also in the range of about 10%-12% and PAT about 6%-10%? So our next year guidance has been 10-11 EBITDA and 6-7 PAT. Further beyond that, let's see how it goes. I think, as Anup mentioned, let the new norms stabilize the market and stabilize the new product range. Thereafter, we'll have a better visibility. Great. Great. Thank you so much and wish you all the very best. Thank you so much. Thank you, everyone. Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments. So thanks to ICICI for organizing this call, and thanks to Valorem for coordinating this. And this is our first earnings call, and we take all the wishes from everyone and hope to see you soon on the next earnings call. Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.