Ladies and gentlemen, good day, and welcome to the Aditya Infotech Q4 FY 2026 conference call hosted by ICICI Securities. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniruddha Joshi from ICICI Securities. Thank you, and over to you, sir. Yeah, thanks, Alaric. ICICI Securities is pleased to invite you all to Q4 FY 2026 and FY 2026 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, Mr. Yogesh Sharma, Chief Financial Officer, and Ms. Deepika Dubey, Head of Investor Relations. I congratulate the management for posting stellar set of numbers and solid increase in guidance amid such steep volatility in the business environment and markets. Now I hand over the call to Aditya Ji for his initial comments on the quarterly and annual performance. Thanks, and over to you, sir. Thank you, everyone, and good afternoon to all. Thank you for joining us today for our Q4 and full year FY 2026 earnings call. Financial year 2026 has been a defining year for Aditya Infotech and the Indian video surveillance industry, marked by regulatory transformation, market consolidation, accelerated localization, and the emergence of AI-led surveillance ecosystems. Amidst these industry shifts, we strengthened our market leadership, expanded our manufacturing footprint, enhanced our technology capabilities, and laid a strong foundation for the next phase of long-term growth. At the outset of this journey, we held approximately 30% market share in the Indian video surveillance market, with almost 25% in our own brand CP PLUS. At the time of our IPO, we projected that our own brand market share could expand to nearly 36% post STQC implementation, assuming a meaningful consolidation of the Chinese players' market share among the Indian manufacturers. The industry transition unfolded more favorably than anticipated. Our preparedness, robust localization strategy, manufacturing scale, and one of the industry's largest STQC-certified product portfolios enabled us to significantly exceed expectations. As of Q3 FY 2026, our market share reached approximately 45.4%, establishing us as the clear market leader in the India's organized surveillance industry. The global semiconductor and memory industry continues to face significant disruption due to ongoing supply-demand imbalances, geopolitical uncertainties, and manufacturing constraints. Critical components such as SoC, DDR, flash, and sensors remain under severe supply pressure, resulting in extended lead times and rising procurement challenges across industries. Furthermore, the US dollar continues to remain at historically high levels, increasing the landed cost of imported part of electronic components and the raw materials. The ongoing geopolitical tensions and conflict in the Middle East have also led to a sharp rise in global insurance premiums and freight costs, adding further pressure to the overall supply chain and operating environment. To mitigate these risks, we have proactively adopted a multi-SoC product strategy, along with a diversified multi-supply chain procurement strategy to strengthen flexibility, reduce dependency risk, and ensure business continuity. We are also focusing on forward procurement and long-term planning to secure component availability well in advance and minimize future disruptions. Nevertheless, given the sustained pressure on the global electronics ecosystem, the price escalations remains inevitable. Industry trends indicate that costs are likely to continue rising until 2027. Despite these challenges, we remain committed to managing the impact responsibly by implementing price increase in a phased and gradual manner, ensuring long-term sustainability while continuing to support our customers and partners effectively. Let me now take you through our financial FY 2026 strategic alliances and partnerships that are key to securing our supply chain and integrating advanced technologies into our products. We have strategically partnered with Qualcomm Technologies to develop AI-enabled, insight-driven video security solutions for industrial, enterprise, and public safety applications. This partnership represents a significant transition from traditional hardware-led surveillance towards AI-powered analytics and intelligent edge computing ecosystems. The platform is currently in advanced trial and testing phases, and we expect commercial rollout in a phased manner going forward. We have partnered also with L&T Semiconductor Technologies to focus on the supply of 9 million next-generation CCTV IP cameras over the next three years, powered with LTSCT's indigenously designed vision system-on-chip technology. This represents a major step towards building India's indigenous semiconductor and intelligent surveillance ecosystem. As part of our backward integration strategy, we entered into a joint venture agreement with Orient Cables for LAN and CCTV cable manufacturing. We plan to set up a manufacturing facility in Rajasthan, which will span approximately 1 lakh sq ft, with commercial operations expected to commence between quarter two and quarter three FY 2027. The SoC partnerships, we have built strong partnerships with six leading non-Chinese SoC companies, including Ambarella, Qualcomm, [Auantic], InnoFusion, Novatek, and Realtek. The diversified strategy has strengthened our supply chain, reduced dependency risks, and improved our ability to deliver products consistently despite the global semiconductor challenges. Strong alignment with the top three sensor players, namely SmartSens, Sony, and SOI, has also ensured technology and supply continuity. Our R&D capabilities continue to strengthen with our DSIR-certified in-house labs and our rapidly expanding innovation ecosystem. We are making strong progress in AI-powered video analytics, unified platforms, mobile applications, and multi-brand product development under the CP PLUS portfolio. Alongside strengthening our presence in Noida and Ahmedabad, we are also expanding with an upcoming Bangalore center and have successfully kick-started our Taiwan office and R&D operations. To support this growth, we are rapidly scaling our R&D teams and bringing in experienced global talent with over 20 years of expertise, further enhancing our technology leadership and innovation capabilities. On manufacturing side, we are steadily advancing our localization and manufacturing initiatives to strengthen supply chain independence and operational efficiency. Significant progress has been made in localizing coaxial Cat6 camera and recorder cables, while our housing manufacturing capabilities, supported by an in-house plant with 50 machines, along with strong partner ecosystems. We also plan to kick-start CCTV lens production very soon in our Kadapa facility. Our manufacturing capacity has now reached 2.5 million units, marking a significant milestone in our operational growth. While manpower and supply chain challenges continue to evolve, we are actively improving efficiencies and strengthening execution across the ecosystems. We are targeting 90%-100% capacity utilization to maximize productivity and meet growing market demand. In line with our expansion strategy, HD analog job work is being planned to be moved to EMS players for further enhancing scalability and operational flexibility, with a proposed capacity of half a million units per month and scalable further subject to future growth requirements. In parallel, we are also evaluating further land acquisition opportunities in the north of India to enable our long-term growth strategy. In Quarter Four and full-year, the CP Plus brand continued its strong trajectory, contributing 86% of overall AIL revenue. IP products made up 73% of CP PLUS portfolio, underscoring the sustained shift towards higher-value IP solutions. Let me now briefly walk you through our financial performance for the quarter and the full-year FY 2026. On the quarterly side, revenue grew 45.5% year-on-year to INR 1,422 crore, driven by strong demand from our expanding portfolio of CP PLUS CTC Technologies products across all segments from retail to projects and government. EBITDA increased 162% year-on-year to INR 258.3 crore, with margins improving by eight basis points to 18%, primarily due to favorable product mix, product and brand mix, higher localization, and better operational efficiencies. Adjusted PAT stood at INR 169.1 crore, up 207.7% year-on-year, attributed to lowering of finance costs by 38% and better cost efficiencies. On the full-year performance, revenue went year-on-year to INR 4,220.8 crore, driven by market share gains across geographies. EBITDA increased 124.1% to INR 579 crore, with margins expanding by 540 basis points to 13.7%. Adjusted PAT rose to INR 368 crore, reflecting 166.1% year-on-year growth, aided by disciplined cost management and a 27.8% reduction in finance costs following debt repayment from IPO proceeds. On FY 2026 growth and expansion timeline, we continue to make strong progress on our capacity expansion roadmap. The housing plant development is progressing as planned, with phase I expected to become operational by quarter two FY 2027, and phase II by quarter four FY 2027. With the housing plant, we have targeted to achieve a production capacity of 30 million housing and enclosures per year. We are also commissioning a new lens assembly line with an initial capacity of 5 lakh lenses per month, scalable up to 1 million lenses monthly to support future growth. At Kadapa, we propose to acquire additional land parcel and added another shed of 50,000 square feet of manufacturing space to further strengthening the manufacturing infrastructure. In Noida, we have proposed to secure a 3 lakh sq ft facility in Sector 68, expected to be operational by quarter four FY 2027. Looking ahead to FY 2028, our vision is to expand overall production capacity to 2x of the existing capacity, achieve complete backward integration across key components, and establish a fully functional global R&D presence, including our Taiwan operations, in order to drive innovation and long-term growth. Our brand-building initiatives have strengthened our presence across India through celebrity partnerships, sports sponsorships, and high visibility campaigns. Consumer engagement strengthened significantly with the launch of new brand campaigns featuring South superstars Vijay Sethupathi and Prithviraj Sukumaran, deepening our audience across South India. Title sponsorship of Punjab Kings in the Indian Premier League, along with major airport campaigns and our largest ever presence in IFSEC India 2025, and title sponsorship of PACC 2025, has further strengthened our market presence and brand leadership across the country. Currently, we have 141 CP PLUS Galaxy stores across PAN India operational. These are exclusive CP PLUS stores dedicated to sell and promote our camera and security equipment portfolio, operating under a co-funded business model to strengthen market reach and customer engagement. On the profitability front, given an uncertain geopolitical environment coupled with persistent inflationary pressures which have resulted in elevated raw material costs, the benefit of company's earlier low-cost inventory has now been exhausted and replacement inventory is being procured at a higher cost. While the company is passing on these increased costs to customers, there is an inherent time lag in the transmission of such price revisions. Therefore, profitability growth may not mirror the pace of the revenue growth. Nevertheless, the company remains focused on improving operational efficiencies, maintaining cost discipline, and sustaining its long-term objective of enhancing profitability performance. We announced a price hike of 6%-8% in January 2026, and further price rise is expected to keep continuing in this financial year. On the utilization of cash, the company continues to follow a prudent and value-oriented capital allocation approach. Our key priority is to deploy available funds through CapEx and selective inorganic growth opportunities that align with our long-term strategic objectives and have the potential to be EPS accretive. We are exploring opportunities that can further strengthen our technological expertise, broaden our product offerings, and enhance our positioning in fast-growing markets. In particular, the company intends to focus on investments that bolster our research and development capabilities, as we believe continuous innovation and product enhancements are essential to sustaining long-term growth, improving differentiations, and reinforcing our competitive advantage in the industry. We have announced a dividend of INR 1.6 per equity share on equity shares of face value of INR 1 each. The CCTV market is expected to show robust growth in terms of units in the range of 15%-16%. We intend to surpass the industry growth rate and aim to grow in the range of 25%-30% in the coming year. With the continued price rise, the market ASP, and the shift in the product mix, the average per unit camera recovery is expected to rise by 20%-25%. Looking at the current market and the stability of the CCTV industry post STQC ban date, we would like to set the tone for the upcoming financial year by upping our initial guidance for FY 2027 on the revenue side to INR 6,000 crore-INR 6,500 crore, which is almost 50% growth over the last year, EBITDA margin to 14%-15%, and PAT around 8.5%-9.5%. We remain confident, optimistic, and committed to building a stronger, more innovative and future-ready organization. I would like to thank all our employees, partners. customers, investors, and stakeholders for their continued trust and support throughout their journey. Thank you, and we are now open for Q&A. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ankur Sharma with HDFC Life. Please go ahead. Hi, sir. Good morning. Congratulations on a great set of numbers. I had a couple of questions. One on the gross margins, for Q4, where we've seen a very sharp, almost a 900-basis plus increase in the gross margins to almost 31.8%. Just trying to understand, is this primarily driven by better mix, more share of IP cameras, or is there also an element of maybe low-cost inventory there, which also would have helped you expand margins and Yeah. Was there also an element of low-cost inventory which was utilized and maybe we don't get that benefit as we start procuring inventory, obviously, especially the memory side, at much higher prices? Just trying to understand what led to this big surge in gross margins and where do you really see this kind of settling down. Thanks. So, Ankur. Thanks for the question. This is Anup here. Ankur. You're right, it's been a combination of stuff. Like you said, we took a price rise in Q4, and we had, of course, low-cost inventory that was lying with us. Like I had mentioned in our earlier calls also, project SKUs got STQC certified in H2. The more high-end SKUs started coming in the Q3 and Q4. It's been a combination of all the factors that you said. Of course, inventory, which was there with the price rise in Q4, as well as the SKU mix that has happened. The second part of your question, in terms of the margin sustainability, I think we already called that out in the call saying that we have almost exhausted all our low-cost inventory and there is price increases in our raw material. In this year also, starting Q1, there is price rise, which is already happening, and this is a tapered price rise happening across the months. There might be a time lag in terms of how it is happening, but we thought it's our responsibility as market leaders to ensure that there is no sudden price rise and there is a gradual price rise which is happening into the market, and there is acceptability on this. We think the margins are sustainable, but if you see our guidance, we have factored for that. Our guidance for the whole year is higher than our last year guidance, but slightly lower than the Q4. We have factored for that, and we are fairly confident of delivering the same. Just on the price hike, on the last call, you did say about 6%-8% was taken in January. I'm assuming you need another 25% odd. Is that correct? I'm just trying to understand how much of price hikes have already been taken and how much more, assuming a status quo right now, on the RM and the Forex front? Ankur, I think what we have decided is we're doing it on a monthly scale instead of abrupt price rise. We've been securing semiconductors and memories much ahead of competition as better cost optimization. We continue doing that. It's not that There are two things we are focusing, supply continuity as well as cost optimization, and much ahead of the competition to source the semiconductors from different chipset makers as far as possible. We are doing monthly price rise of few basis points every month. What this is helping us is that market is not getting a sudden shock, and each month in this quarter also, and maybe in the coming quarter, we will see a price rise happening. People are able to pass it on gradually, and there is no shock given to the customers in a very big way. It will be a single-digit price rise every month sort of a thing. Again, it depends on product category to product category, depending upon the input cost rise. Ankur, we have actually flagged it as an ASP increase, so that will also be contributed by SKU mix further enhancing as further projects come in too, and also as the CP PLUS portfolio continues to expand. It's not 100% driven by only price rises. It's also being driven by brand mix and also by the SKU mix within the brand. Understood. Perfect. Okay. Just on the memory side, specifically, given the global shortages and a lot of that memory being diverted away to AI data centers, how well-placed are you say, in terms of memory SoC, when you look at, say, the next six, nine months? Is it because we are the largest player, we actually have a competitive advantage over some of the smaller players, and we can actually increase our share gains, given the smaller guys would typically struggle to get that? See, what has happened is, memory DDR, there are six, seven large global manufacturers. I'm talking about outside China. Half of them have stopped making DDR3 because of the major AI demand, leading them to shift all their capacities to DDR5 and above. That is where the gap of memory is coming up. Any situation where there is a demand-supply imbalance, I've seen, and we are seeing in our industry even now, that the big get bigger and the smaller tail is the largely affected one. That's what is happening here also. We are actually With the strong purchasing power that we have, the volume we have, and the relationships we have with all these guys are securing our supplies much ahead of, as I said, competition. We are securing it from multiple supply chains, direct from the fab makers, the fab guys and the chipset guys, the distributors, open market, all kinds of places. Ensuring that we have enough supplies at the right cost to provide in the market. I think that will be probably one of our advantage in this year because of the share, market size, and the volume that we have. Perfect. Just one last one, if I may. With the market share itself, so you said you're close to 46% market share, which I think is brilliant given where we started off maybe a couple of quarters back. One, how much more do you think, with your target in mind, where you can go? Who are the other sizable players? I'm trying to understand, except you, who are the other Indian large players? Obviously, Chinese share has come down significantly, but something on that. Yeah. There are about 30 brands across, as per the current certified list. 12 of the global brands are certified, but their share overall is about 10% of the market, which is all the big names of the global brands. There are about 18 domestic brands. Nobody out of that plays in all the vertical market segments of home consumer, small-medium businesses, enterprise, government, all the sectors. In every sector, we have different competition, and most of them are probably one-tenth of our size at the moment, or even lower. They are all evolving, they're all scaling up, but I think it'll take their own time to scale up on all fronts of R&D, manufacturing, localization, organization. Supply chain is again now a bit different in the current demand-supply situation because of the semiconductor and the memory. I think if you ask me a single large number two, I can't think of one single large number two across the sectors. Just to add, we are not targeting any specific market share. Like we called out, we are planning to outgrow the industry growth rate. Of course, there will be a market share change. Yeah that will happen naturally, and we are focused on more of building our capacities and ensuring supply. We are not targeting any specific numbers in terms of market share, that will happen automatically. Perfect. Got that. Great. That's very helpful and all the best. Thank you. The next question comes from the line of Dhruv Jain with Ambit Capital. Please go ahead. Thanks a lot for the opportunity. Congratulations to the team for great numbers. My first question is on margins. With respect to backward integration, whatever initiatives that you're doing, my guess is that most of the full year annualized benefits will come in FY 2028. Just wanted to understand what kind of benefits, in terms of margins, we see in FY 2028 with respect to the housing plan and various other initiatives that you have. Dhruv, I think valid point. We are right now investing heavily. In terms of housing enclosures right now is on third-party supply chain. With our own plan coming in, of course, there will be some addition to the bottom line. I can't peg exact overall basis points, but I'm sure there will be enough contribution on the housing cost itself. Does the cable, because same, we are right now sourcing third-party or importing once we make in-house. There are three things we achieve when we do this localization in-house. One is quality consistency, second is supply consistency, third is contribution to the EBITDA basis points. All these things and then the lens. These three things will definitely contribute in FY 2028. Marginal impact may come in later part of this year, but early times what level of contribution will come. Yeah, I can say yes, there will be contribution. Sure. Okay. My second question is on market demand. In your presentation, you mentioned that you're expecting market volumes to grow by 15%-17%. In categories like, say, mobile phones, laptops, we've seen that the demand has fallen off because the ASP hikes have really hurt the end market demand. Just wanted your sense in terms of what is the level of confidence or what are the factors that you still see that despite the sharp inflation, we will see that kind of demand growth in the market. Again, very good question. I think we were expecting a high pent-up demand in this year post the transition last year, because we believe last year the growth wasn't that great in terms of market. We as a company grew our market share, but the overall market consumption was muted because of the transition which happened from the pre-STQC to the post-STQC era. This year, we were expecting a much higher market growth because of the shift of the last year pent-up demand coming in this year. We again brought it to a muted level of 15% in our planning and guidance, factoring the ASP cost rise on the products. Here again, you'll see what is going to happen is the ASP cost rise on medium to higher end is on the percentage side is not that high. In enterprise project sector, it's not going to be that bad. There will be rise, but not that bad. The entry-level market and the network cameras and recorders are higher. I think it will be a mix. Some places there will be some reduction in consumption, shifting to maybe some analog cameras where the cost price is much lesser compared to the entry-level IP. We did all that simulation and then figured out that overall quantity of 15% may grow, which earlier we were expecting more than 20% with keeping the pent-up demand in mind. We have factored that a little bit in our plan. Talking about mobiles and Dhruv, when you talk about mobiles and all, you're talking about generally the entry-level consumer spends. In our category, the consumer purchases are still less than 10% of the overall business. This is still essentially a B2B-led businesses where, like Aditya was mentioning, there is pent-up demand from last year and there is still supplies which have not been done. We believe that will still be strong on the commercial sides with the new projects coming up and what we see the vacuum, the consumption will still be there. Our growth is factored in at almost 25%, 30% kind of unit growth and rest is due to the ASP rise. We believe the industry will still grow in units in about 15%-16%, which like we just mentioned, should have been higher considering the pent-up growth if you consider the last year and this year. In that context, if I'm not wrong, there should also be value growth which also helps our margins because I'm guessing there will be some bit of migration that happens from IP-level cameras to premium-end cameras because the ASP hikes, if I'm not wrong, in the premium end will be more. Yeah. When we are saying that the ASP will be higher by about 25%, it's not coming all from price rise, it's coming from what you just mentioned. It's coming from the portfolio mix as well and the overall IP percentage of the portfolio constantly going up. Got it. Sir, if you could, just last question, if you could just call out the CapEx numbers for FY 2027 and FY 2028? We had planned for INR 200-odd plus or minus few numbers. I think as we have upped the guidance, we feel we might require a little more. Plans are being worked upon compared to the new expansions that we are planning. I think it will fall in that range of INR 200 crore-INR 300 crore kind of thing, and we will largely be funding it from internal accruals or some debt maybe, say, for the plant and machinery. All right. Thanks a lot, sir and Aditya. Thank you. The next question comes from the line of Nikhil Kale with Invesco Mutual Fund. Please go ahead. Thank you for taking my question. Firstly, Aditya, congratulations on a very strong set of numbers and upping the guidance. My question was more on the cash flow generation. Obviously we have had a stellar year and with the significant growth that we've seen, we've also seen increase in working capital, which has impacted our cash flow generation. Going forward, how should we think about it? Especially you alluded to the fact that you might be procuring components in advance, so probably inventory days might inch up. You might also need to pay creditors more, or you might need to pay your suppliers more quickly so your payables might also kind of get impacted. Considering these two aspects, how should we think about cash flow generation for the next year and then will that be enough to kind of fund our CapEx plans and also the land acquisition that we are thinking about? Yeah. Nikhil, you're right. We have been laser-focused on our operational efficiencies and we have improved on our inventory levels and the debtors have also improved gradually. Yes, the cash conversion cycle has slightly increased and like you rightly pointed out, that has mainly got to do with us having to procure the chips and memory. Some of it we are blocking and we are having to make some possibly advanced payments. The cash conversion cycle has essentially slightly gone up due to the creditors coming down because of what we are doing in terms of securing our supplies. At least in the shorter term we see this growing because our first priority is ensuring supplies and that we, from the supply side, we are consistent and we are secured. This will sort of continue, but we have factored that in our working capital working for this year. We have already called out your CapEx numbers and yes, we have upped our guidance in terms of revenue. Yeah, there will be a working capital needs, but at the moment I think it's sort of pretty okay. We will see if there are further growth possibility then if there's further CapEx requirement how to fund it. At the moment we are looking at funding it with mostly from internal accruals and some debt and we are pretty comfortable. All right. Thanks a lot. Those were my questions. Thank you. Thank you. The next question comes from the line of Neel with Equirus Securities. Please go ahead. Yeah. Hi, sir. Congratulations for a solid set of numbers. Sir, I have a couple of questions. Sir, first is that related to the chipset that we have almost now six suppliers on board. How are our agreements made? It's more of a volume-bound agreements or a time-bound agreements and if the prices of chipset, let's say, increases, how much time it takes to pass on to the customers? What's your name, sorry? Neel. Neel. Yeah. Hi, Neel. Neel, the agreement, you normally have supply agreements only and right now the situation is most of the agreements which we talk about across the industries are going haywire because the supply demand is totally going haywire. The cost is rising on every fortnight, weekly basis. It's a question of even if you pay advances sometimes, the contract gets invalid sometimes because of the very sort of a force majeure kind of a situation. This is a very unprecedented times. I have not seen these kind of things in the last two, three decades of my business career. We are mitigating it, and we are mitigating it, I think so far, so well, touch wood. We hope that we can be with this multi-supply chain, multi-sourcing strategy, multi-products R&D, we will be able to mitigate this risk. The price rise is a decision we are doing on a gradual phase. Again, we are averaging our sourcing and averaging the price rise. Like I said, we are passing it on a monthly basis, every month raising it. Over the quarter, I think the price rise can be easily passed to the market. What we are more conscious of right now is that we don't want a shock in the market and the consumption or the flow of material and the sales out cash flow, all that get affected too much. I think we are more bothering that than the market share, and then managing the cost optimization and passing of the price. Okay. Sir, last question is, let's say in a total FY 2026, if we were to bifurcate the volume-led growth and value-led growth, what would that be ratio? You're talking about FY 2026? Right, sir. Yeah. We think the volume growth would be about roughly 18%-20%, and rest would be the ASP growth. That is again, majorly driven by the mix. The price rise was essentially only in Q4. The other three quarters, the post-STQC materials were at a higher price, and the mix of CP PLUS, too, internally, that mix has changed. IP to HD, the mix has changed. If there's a 33% growth, almost 18%-20% would be volume growth and rest would be the ASP growth. Okay, sir. In FY 2027, I know, sir, it's very difficult to say, but any kind of ballpark number you would like to put, what kind of grossly price hikes we can see in FY 2027? We have called out that the ASP growth will be roughly about 25%, and the volume growth will be roughly between 25% and 30%, but it's difficult to do it category-wise. That's why we just called out the general ASP growth and the quantity growth. Perfect, sir. Thank you so much, and congratulations again for a solid set of numbers. Thank you. Thank you. The next question comes from the line of Naushad Choudhary with Aditya Birla Mutual Fund. Please go ahead. Yeah. Hi. Thank you, and congrats on a very good set of numbers. Just one clarification. On the margin side, sir, till last quarter, we had a view of this business is expected to do 12%-13% kind of margin for us. Within a quarter, it has moved up to 14%-15% expectation. In last one year, just wanted to know, last one to two quarters, what has changed which is leading to this kind of expectation? This 14%-15% is a new normal for your business or could FY 2028 be different? I would say, Naushad, this should be the new normal for this business. You see, we were working on this only. We didn't want to speak early ahead of the situation. Many things of localization, cost optimization, the shift towards medium to higher end products, enterprise business, premiumization, all that gradually was contributing and inching us towards this direction. Q4 was a little higher than this, but that was a one-off. I think 14%, 15% should be the new normal FY 2027, FY 2028, as we move forward. Perfect. Last, initially on the export side, we had a view that our hands are full and tight for the domestic demand. We may think after two, three years, we may think of export opportunity. Any thoughts in development of that side and how it could look like in next three years, four years? I think we will start some action hopefully in this year. At the moment, with so much happening, Naushad, in capacity, R&D, localization, inorganic options that we are working on, and in the supply chain disruptions, I think the energies are all moving here to ensure that we first feed the demand which is in the domestic market. Export will be the focus. The timing is something we had thought of doing it in the coming year, but let's see if we can kick off some actions in the coming year. Some parts are underway, but how much will materialize is early times to make a statement. Sure, Aditya. Thank you. All the best for the future. Thank you. The next question comes from the line of Anuj Kashyap with A3 Capital. Please go ahead. Hello, I am audible? Yeah, Anuj. Hi, you're audible. Yes. Congratulations for your good set of numbers. My question is with a caveat, it's forward-looking in nature, sir. I just wanted to know your head, what do you think, what is your thought process regarding the cameras have become from omnipresent to omniscient. Like your integration with the Qualcomm or your partnership with the Qualcomm is about AI or the cameras becoming the active decision-makers down the line. As an organization, how do you look at it? Just I want to know your thought process. [Non-English content] You're asking about the AI cameras? AI going into cameras, is it? Yes, sir. Like omnipresence, sir. [Non-English content]. Camera has become decision makers also, sir, in some ways, like due to the data processing. Let me explain. See, basically the industry started as just a viewing. It went into recording. It went into intelligence, a little bit of video analytics, which is already part of our current system that we offer. Moving forward, more and more video analytics and AI will come in. Let's say you are in a hospital or an education institute or a building. In that the guys need a report. What are imminent triggers, call to actions. A camera is a sensing device which can capture the metadata. The AI on the other device can process the data, trigger an action, and similarly call to actions can happen or a report can be generated. You can say they are the eyes, ears, and sound now because the camera can have audio out. You can talk from the camera. You can hear the sound also, you can view. It has become eyes, ears, and mouth in a way. The brain has to be the AI, which is the edge boxes and the recorders and the processing of that, and then take the action with your arms and legs. That's how the whole system will prevail. Cameras will be the integral part of the whole AI ecosystem as we progress. Sir, you have given the exact answer that I wanted. Sir, I wanted to ask that for us as an organization, our service component, today we are the only hardware company. Will there be some revenue that we can hope to get from our service components? We are working on two things. We already announced cloud for our home market. Like today you record on-premise, but if someone takes your recorder, then all your data is gone. One is a redundancy backup on the cloud. Like you do your data backup for ERP, similarly video storage also. We are optimizing to make that a mass market. We are optimizing our platform to make it more and more cost-effective and affordable before we go mass scale to offer that as a redundancy backup. Post that, AI as a security and service model, SaaS model. Once you have that data, you can start working and giving AI intelligence with edge devices on-premise and cloud AI on the back. We are working on this SaaS model as well, which is where the Qualcomm partnership is working on. As I mentioned, the platform is under trials and development, and hopefully this year we might go to market very soon. Sir, just to add on to it, will that be marginal? Of course it will be margin accretive. Do you have the numbers in your mind how much margin accretive that component will be? Too early. It's a new market creation. It's too early. That market is going to boom, sir. That market is going to boom. Absolutely, it'll going to boom. We are investing on that cloud also and the AI SaaS model also. If I look at five years hence, yeah, that is an investment we are doing today. It will pay off in the near future. Okay. Sir, just one more question. Sir, out of the total revenue, what percentage do you have the breakup? What is the B2C or what is the government business we are getting? Is there some breakup we can get? I think maybe later the IR team can pass you some information on that. They will share you. Okay, sir. Thank you, sir. Sir, best of luck for the new future. Thank you. The next question comes from the line of Vedanta Badani with Canara Bank Securities. Please go ahead. Hello, sir. Sir, first of all, congratulations for great set of numbers. Thank you. I have two questions. First question is regarding the two other brands which we launched. What is the status on that, and whether we have received the STQC certification on those brands or not? We announced two brands, NEXIVUE and EYRA. NEXIVUE is already certified for the first set of products, and more are underway. We've already started shipping those products in the markets from last month, April. End of April, we started shipping post-certification, this month more products are getting produced and launched. As we now progress month on month, more certifications will happen and volume will keep growing. EYRA, due to the supply chain disruption, some reworking in the R&D had to happen. Hopefully we'll get certified in another two months, and next quarter that may go to market. Understood, sir. The second question is regarding what kind of demand you are seeing from government-backed projects? Very good, sir. It's very difficult to say. Suddenly things happen, suddenly things go slow. I think the market is 15%-20% government. We plan in our business also similar, nothing, no rockstar situation on the government side. 15%-20% of our revenue come through GeM or large government projects or through tenders via the System Integrators or PSUs. I think that should be the situation this year also. Okay. Thank you, sir. Thank you. The next question comes from the line of Udit Gajiwala with Motilal Oswal. Please go ahead. Yeah. Hi, sir. Good afternoon. Congratulations on a great set of numbers. Thank you. Just one question. In terms of competition, I believe that you'll be ahead of the curve. Just wanted to understand that the certification process, which was going on very slow around October, November, that seems to have picked up for even some of your peers who have been pointing it out. Do you see any threat or any such thing, maybe not this year, but from 2028 onwards or something like that? I think we are preparing ourselves for any eventual competition. This year seems slow because one is, people are slowly getting certified. They have to scale up, as I said, on various fronts. We are far ahead than most of them, be it localization or capacity or R&D or product range or supply chain. Second is the supply chain itself this year is a big deterrent for anybody to compete really. I think they were unable to feed their own demand at the moment. I think that's another one, and I believe this will continue till the next year. We have a good head start with respect to our preparedness. We are further consolidating on all fronts. We are further expanding on all fronts. Multi-brand strategies, further augmenting market share growth, and we are positioned at different price positions so as to take on any possible threat competition which comes on any level. I think we are fairly poised and we are quite cognizant of possible competition coming in. We have some head start of information, thanks to our connects with all the SoC guys of who's preparing products or not. I think we're fairly poised with respect to competition, I believe. Fair enough, sir. Yeah, that's it, sir. Thank you and all the best. Thank you. The next question comes from the line of Vivek Gautam with GS Investments. Please go ahead. Congratulations, sir, on an excellent set of numbers. Big wealth creation for the lucky investor who got the allotment in the IPO. I just wanted to know about the opportunity size for us and the expected growth rates and the differentiator for our company, especially dash cams and other being made compulsory as sort of, not compulsory at least, but preference-wise also, sir. Vivek. Yeah, the industry, like we said, has been growing at generally about 15%, 16% CAGR. We as a organization, if you see before 2025, we have been growing at a CAGR of almost 21%, 22%. We have almost beat the industry growth rate consistently. As per all predictions, this industry should continue to grow at 15%, 16% in quantity terms easily. I think last year was slightly muted, essentially due to the transitions to STQC and supply side issues. Most of the market research agencies were factoring that this year and next few years should be higher than 20% in terms of quantity growth. The supply side constraints still continue. We don't see any challenge in terms of the industry sustaining growth rates because these growth rates are, I don't think, as factored in the upgrade markets from HD to IP and also the penetration, still there is a long way to go. We believe that we will always beat the industry, and in line with that, for this year, we have factored in a 25%-30% quantity growth. I think this should continue. The industry growth rate as well as us beating the industry should continue. A few words on the differentiator for us, sir. Differentiating factor for us. Again, I think there are a lot of factors, but mainly I would say first and foremost is the brand. Even if in this segment, if you still go out and check, I think now we have become sort of synonymous with the brand CP PLUS. Earlier also it was, but now with our advertising campaigns on the airports, on IPL and the film stars, I think this would possibly be the only brand which is there right at the end consumption level. Even in the other segments, which is the consultants, large customers and SIs, there also we have been doing a lot of work doing B2B shows. Clearly the brand's recall and presence is a big differentiator. Of course, then the other modes that we spoke about, the manufacturing. I don't think anybody has such a large-scale integrated manufacturing setups. Product range across all segments. The market is a mixture of SMB, large enterprises, government, consumer. Again, when you map out the competition, you will not see anybody relevant across all these segments. That's again a big factor for us. We are possibly one of the only brands which are across all these segments. We have been in business for almost two decades, and most of the teams have been with us for a long time. Experienced teams who are ground connected. R&D, I don't think anybody's invested such deep into R&D, whether it's in India or offshore. There's a multiplicity of factors. Our distribution reach, relationship with partners. All that is playing out. This is the tip of the woodwork. Thank you. The next question comes from the line of Darshil Jhaveri with Crown Capital. Please go ahead. Hello. Yeah, hi. Thank you so much for taking my question. Firstly, congratulations on a great set of results. A lot of my questions have already been answered. I just wanted to get your view, like we think we are doubling our capacity by FY 2028. By when will we be at full utilization? If you are saying industry is growing at 20%, but if you're doubling it by next year only, are we expecting a much higher growth than the 15%-20% that's happening? That will only help us to utilize our capacities better. What are your views, sir? See, we are building the capacity in next three years. By 2028, not FY 2028, but 2028, we plan to double. Right now we are in 2026, so 2028 we plan to double. Looking at a three-year horizon, we will see how much growth we will do in our quantity. Should we continue to grow at 25%, 30%, we will see what capacity utilization will come, and we are building it should tomorrow our export market comes up or ODM, OEM market comes up. People have been approaching us to make products for them. Right now we are saying we are utilizing the semicon for our own needs rather than making it for them because of the shortage. I think we're just building that capacity, keeping that in mind. We will see by when the whole thing will get into full utilization. Is that you are targeting over the next two years, like the amount of money that you are investing in this, sir? [crosstalk] We mentioned INR 200 crores to INR 300 crores this year. The next year ones are still the plans are underway. The strategy is what I said, what we are doing. We feel that the CapEx plans should be good enough to, and the growth plans should be good enough to fund from our internal accruals, and largely the company is at a very minimal debt equity ratio. Even if some requirement is there, we could look at some debt and fund it on a temporary basis. Okay. Yeah. That's it from my side. Thank you so much, sir. Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for their closing remarks. Just want to thank everyone for joining the call, and hope we have sort of met up to the expectations, and we look forward to all of you guys joining the next call. Thank you. Thank you, sir. Ladies and gentlemen, on behalf of ICICI Securities, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.