Ladies and gentlemen, good day and welcome to the Hindustan Aeronautics Limited Q4 FY 2026 Earnings Conference Call hosted by Ambit Capital. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Sameer Thakur from Ambit Capital. Thank you and over to you, sir. Good afternoon, everyone. On behalf of Ambit Capital, I thank the management of Hindustan Aeronautics Limited for the opportunity to host their Q4 FY 2026 earnings conference call. To discuss the results, I am pleased to welcome Shri Ravi Kota, Chairman and Managing Director, Shri Barenya Senapati, Director Finance and CFO, Shri Shailesh Bansal, Company Secretary. Now I invite Shri Ravi Kota to take us through the key highlights of the quarter, post which we will open up for Q&A. Thank you, and over to you, sir. Thank you very much. Good afternoon, ladies and gentlemen. At the outset, I would like to thank all of you for taking the time to join us today and for your continued confidence in HAL. This interaction is particularly significant for me personally, as I assumed charge as Chairman and Managing Director of HAL on 1st May 2026. It's a huge responsibility to lead one of India's most strategic aerospace and defense organization at a time when Indian aerospace and defense ecosystem is undergoing transformational growth. Today, I have with me Dr. Barenya Senapati, Director Finance and CFO, and Shri Shailesh Bansal, Company Secretary, to answer any question that you may have. We have declared our results for FY 2025-2026 yesterday and posted the results in our website as well as filed with the stock exchanges. Hope you had opportunity to see the same. I would like to highlight some of the physical milestones that we achieved during 2025 and 2026 before discussing the financial numbers. Some of the major achievements during the year are production capacity of eight LCA Mark 1A per annum established with inauguration of the third production line at HAL Nashik in presence of Honorable Raksha Mantri on 17th October 2025. Indigenously designed and developed ALH Dhruv-NG took maiden flight in presence of Honorable Minister of Civil Aviation on 30th December 2025. Maiden sortie of first series production Hindustan Turbo Trainer HTT-40 aircraft successfully completed on 24th October 2025. HAL received the certification of indigenous manufacturing of Shakti civil engine from the DGCA on 30th December 2025. As part of the diversification, HAL signed the SSLV technology transfer agreement with ISRO, IN-SPACe, and NSIL on 10th September 2025, securing a non-exclusive license to manufacture the SSLV. For production of commuter aircraft SJ-100 in India, HAL and Public Joint Stock Company United Aircraft Corporation, Russia, signed an MOU on 27th October 2025. HAL contributed to ISRO's successful launch of LVM3 mission on 2nd November 2025 and LVM3 M6 mission that deployed the massive BlueBird Block II satellite on 24th December 2025 by on-time supply of space-worthy hardware. To position HAL as key player in global aerospace supply chain, HAL has signed an agreement with Safran Aircraft Engines in June 2025 for the industrialization and production of rotating parts of LEAP engines, which powers the single-aisle civil aircraft such as Airbus A320neo, Boeing 737 MAX, et cetera. Indigenization success stories, advanced manufacturing capabilities, and opportunities for MSME partnership showcased during the National Defence Industries Conclave, 19th to 20 March 2026, inaugurated by Honorable Raksha Mantri. Now, I would like to discuss few financial highlights for FY 2025-2026. We have achieved revenue from operations of INR 33,050 crore for financial year 2025-2026, in comparison to INR 30,981 crore in financial year 2024-2025. This is an increase of 7% despite global aerospace supply chain disruptions. Deliveries of ALH helicopters, AL-31FP engines, RD-33 engines, and ROH revenues helped offset delays in Tejas Mk 1A and HTT-40 programs. Our diversified portfolio has enabled balanced growth across segments. Our manufacturing revenue was INR 9,227 crore, and ROH revenue was at INR 20,524 crore, sorry. The manufacturing revenue increased from INR 7,057 crore to INR 9,227 crore with the help of delivery of ALH helicopter, AL-31FP engines and RD-33 engines. The manufacturing revenues are expected to grow further on commencement of delivery of LCA Mark 1A and HTT-40 during the current year. During the year, we also achieved export revenue of INR 501 crore as against INR 400 crore of the previous year. The profitability remained robust during the year. Our EBITDA grew by 11% to reach INR 13,472 crore as against INR 12,168 crore of previous year. Operating EBITDA was at 30% of the revenue and was maintained at that levels of previous year. We reported a profit before tax of INR 12,112 crore as against INR 10,820 crore reported in the previous year. This is an increase of 12%. Coming to CapEx and R&D expenditure, we are continuously investing in our future through investment in building capabilities in the form of CapEx and in our future capabilities through R&D expenditure. During the year, we have crossed INR 2,386 crore as CapEx and INR 2,794 crore in R&D activities, which is our around 8%-4% of our revenue. Considering the major orders in hand, envisaging new orders and to ensure timely delivery to the customers, production capacity ramped up of the following major projects, namely LCA and HTT-40 manufacturing at Bengaluru and Nashik plants. LCA's manufacturing at Bengaluru and Tumkur plants will be the focus areas going forward. Additionally, we plan to develop manufacturing infrastructure for LCA Mark 2, GE F414 engines, and IMRH engines, infrastructure facilities for manufacturing SSLV, indigenization of aero engine projects, et cetera, along with facilities to support design and development activities for IMRH and other projects. We plan to invest around INR 12,000 crore in these projects by 2030. During the year, HAL has filed 223 IPR application, which make cumulative number of 2,842 IPRs filed by company. 84 IPRs have been granted during the year, taking cumulative IPRs held by organization to 1,226. Coming to order book. The order book of the company further improved to INR 2,54,538 crore against the previous year order book position of INR 1,89,302 crore as on April 1, 2025, and after liquidation of current year turnover of INR 31,792 crore. During the year, the fresh order received by the company were INR 97,028 crore, which includes the manufacturing orders of INR 69,668 crore and ROH orders of INR 26,539 crore. Major orders bagged include contracts for supply of 97 LCA Mark 1A to IAF, quantity six ALH MK- III (MR) to ICG, quantity eight Do-228 to ICG, quantity 10 ALH Dhruv-NG to Pawan Hans, quantity two Hindustan-228 to Guyana. The order for pipeline looks even more promising with additional anticipated contracts of 143 ALHs for Army, IAF Su-30 upgrade of 40 Do-228, et cetera, are at various stages of approval. In total, we expect to receive orders of INR 90,000 crore, including the ROH orders during the next two years. I would like to conclude and say that these results represent not just numbers on the balance sheet, but the culmination of dedicated efforts by our 24,000 plus employees, the trust of our armed forces, and collective aspirations of a nation building self-reliance in aerospace and defense. While this past year has presented significant challenges, it has also demonstrated HAL's resilience and our unwavering commitment to national security. Thank you, and [Non-English content]. You can now start, question and answer session. 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 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. First question is from the line of Atul Tiwari from JP Morgan. Please go ahead. Yes, sir. Thanks a lot. Sir, what is the status of a start of a delivery of LCA Mark 1A to Air Force? When we can expect Air Force to accept the first lot? That is the first question. What is the revenue growth and EBITDA margin guidance for FY 2027? Thank you, Mr. Atul. This is CMD here. As you are aware that we have six engines received from GE now, and all these aircrafts are flying. There are few testings still undergoing now, and we are going to discuss the same with Air Force in the coming months. We are hoping to resolve everything and stabilize by August or September. I just hand over to director of finance to give the guidance. As far as revenue growth is there, we are hopeful that we'll be making a double-digit growth in the current financial year, 2026-2027. EBITDA margin always, we have maintained around 30%-31%, and it will be maintained. Okay, sir. Sir, because these timelines of LCA delivery have gotten stretched, you know, multiple times. Is there a risk that the delivery schedule spills well beyond August and possibly only in the very fag end of FY 2027? No, this time, because, GE has committed more engines, in this year. With that, we are hopeful now that by August, September, we should be able to start the delivery. Since the delay in the delivery of the first six aircrafts appears to be beyond engine, because those aircrafts are ready. Based on media reports, and we don't know the reality, it looks like that there is some software issue, et cetera. Could you throw some light what is holding it up and how big the issue is and, you know, what are you doing to resolve those issues? I'm asking it because in the market it is causing fair bit of anxiety in the investor base. There are question marks whether any aircraft can be delivered even in FY 2027. See, these, the testing whatever has been done is only for refining whatever has been already tested. This is a continuous process. Since there are more technicalities involved in that, I will restrict to tell that we are moving in a very positive direction, and we are hopeful that by August, September, we should be able to start the deliveries. Okay, sir. Thank you. Thank you. Thank you. The next question is from the line of Amit Dixit from Goldman Sachs. Please go ahead. Yes, Amit. Mr. Amit Dixit, please go ahead with your question. There is no response from the line, we'll move to the next speaker question, which is from the line of Umesh Raut from Nomura. Please go ahead. Yeah. Hi, sir. Good, good evening. Congrats for strong operational performance in full quarter. My first question is again on LCA program. If you can articulate us in a better way, what went wrong in terms of execution delays apart from engine supplies from GE? What is exactly left in terms of testing, where we can get confident of deliveries by probably second quarter in this financial year? Thank you very much. Again, as I told Mr. Atul, see, these, the refinements whatever, because I cannot get into the details of it. We, these refinements, we need to meet certain parameters. These refinements is because these are all design and development projects, which it has to go through iterations. We are going through iterations of that and we will be. We are confident because now it is going in the right direction. The results are very promising. Still some refinements are required, so which HAL is working on that. We are confident that we will be able to meet the September deadline. Got it, sir. Sir, if I understand correctly, we are doing lot of these platforms after design and development for the first time in terms of execution and indigenization as per se for us in terms of scope has also increased. What are our action plans in terms of mitigating these execution risk in terms of other programs, whether those are in terms of, say, HTT-40 or LCH on the helicopter side? What are our plans in terms of mitigating these execution risks? At the same time, if you can guide us in terms of execution timelines for other larger programs like LCH and Sukhoi 12 Mark one aircrafts. You please. One thing is, see, the other programs. Yeah. First of all, risk mitigation what you are telling. See, what we are trying to do is we are trying to identify more than one vendor for the supply of items, whether it is indigenous or from a foreign source, so that we have an alternate available for us. That is one thing. As far as Su-30 or the HTT-40 is concerned, all the purchase orders required is already placed on the vendors. Now we are in the receipt of these items. Even though it is slow because of the geopolitical situation, we will still be able to maintain the deliveries of the other platform what you mentioned in time, because all the structures, everything we are going at as per plan. To supplement CMD, there is little bit difference between LCA and LCH. LCH is our own design product. HTT-40 is our own design product. LCA, it's a joint production between ADA. So we are confident this helicopter, LCH and HTT-40, it is on the right track. As per the contract, it will be delivered. LCH, hopefully 2027, 2028, we'll be able to deliver in time. Got it, sir. My second question is pertaining to supply chain risk that we have in the business. Where, if I look at beyond, probably engine supply from GE, in case of other programs, are you seeing any kind of supply disruption, whether it is for radars or engines, for that matter in programs like Sukhoi, LCH helicopters, HTT-40 aircrafts. Any kind of supply chain risk over there where vendors are delaying any major components to you? Yeah. See, if you see now, the current global situation, whatever is there, I will not say disruption, but slowness is there. There is a slowness. When we have discussion with them and now with their, we have started discussing with their tier one, tier two vendors also. We are getting confident that we should be able to get the items. Maybe minor delays will be there, but we are confident that it will reach within that the time required for me to complete the platform and delivery. Because the current situation is like that. Some delay is expected from few places. Got it, sir. Sir, my last question is on the guidance side. If I look at your guidance for revenue growth of double-digit, if you can quantify relatively in a better way, where exactly this growth is expected to come by, how much increase over and above INR 92 billion-INR 93 billion that we reported on manufacturing side we can expect in 2027? See, when I said double digits, see current year, if you see, it is around 7% growth. Double digit means you cannot expect a significant like, 15%-20%. Yes, it will be in the range of 10%-12% minimum. Got it. particularly in case of manufacturing where we have seen- Uh, manufacturing- -30% year-on-year growth. Yeah. Manufacturing 30%, if you see, hopefully our LCA program and HTT-40, if we are able to deliver, then manufacturing, if you see in the composition, manufacturing sale will play a dominant role. Got it, sir. Thank you so much for these answers. I'll get back into the queue. Thank you. Thank you. Thank you. The next question is from the line of Saif Sohrab Gujar from ICICI Prudential Asset Management. Please go ahead. Thank you for the opportunity, sir. If you can highlight on the upcoming program like Tejas Mark 2, when do you expect the ground testing and prototype rollout of, say, Mark 2 program? Also on the other future programs like the UCAVs, any update on that expected on next funding? Sorry, what is the second program you talked about? The unmanned aircrafts and all those. Other programs beyond that, right? Maybe first on the Tejas Mark 2, when do you expect the prototype rollout? The assembly of these structures are going on for Tejas Mark 2. We are expecting in the last quarter of this year, for the rollout of Mark 2. See, again, these are all joint design between us and ADA. There are few things which has to be resolved by them also. We are expecting that by March we should be able to roll out Mark 2. Other than that, as you said, unmanned vehicles, we are doing a rotary UAV. Which is, the proto is already built and, we are doing the ground test now. The CATS Warrior, which we did ground run last year, it was successful. We are actually building the actual UAV now. We are expecting next year, not this year. Next year, maybe it'll have the flight. Sir, second question is on the Mark 1A platform. In our guidance, how many Mark 1As have we considered? Actually, what is happening now this time, we have received 6 engines. GE is committing another 20 engines. 15- 20 he's telling, but not the exact number what he's telling. We are expecting around 20. Sure, sir. Thanks for all the help. Thank you. The next question is from the line of Mohit Pandey from Citigroup. Please go ahead. Yeah, good afternoon, sir. Sir, first question is on the ROH revenue. The growth seems to have come off compared to what we used to guide earlier. Any color there, sir? That would be question number one. No. If you see, the payers actually there is a little bit, spare sales has come down by around INR 500 crore-INR 600 crore in the current financial year as compared to the last financial year. The repair and ovehaul, it is almost at the same level. Because we have not added any new platform to our repair and overhaul, I mean, activities. It's all the same platforms like ALH and maybe when Su-30, I mean, this one, our LCA. When the LCA will come up for repair and overhaul, maybe next year and more of ALH if it comes, then only it will be a significant increase in repair and overhaul we may have in next financial year. Otherwise, if you see platforms are same and then at the same level only, except the escalation part and other things, that would be there. Understood, sir. Sir, secondly, on margins, your guidance, of 30%-31% margins, sir, with manufacturing share increasing, and with, some supply chain disruptions that you highlighted, input costs going up. How do you plan to, deliver similar margins at 30%-31%? Are there, cost pass-through process, with regards to commodities in your contract, with the end users? I didn't get you. No. These that, disruption whatever, or the delay or slight delay what I told you in the beginning, these purchase order is already placed. See, for 2026, 2027 already we have the inventory. Yeah, we have. The inventories are there and only some components, it may come for which the purchase order has already been placed one year back or two years back. There will not be any cost increase as such for 2026, 2027 cost of production. I don't think, there'll not any increase. As the purchase orders have been placed for 83 LCA, long back, our inventories were purchased, and we have built up the inventory. We'll get that advantage. Then we had negotiations and all those things. Increasingly, we have already produced the aircraft like which you have seen around almost more than 30-plus aircraft is already produced. For example, LCA is produced means all the items are fitted and it is in ground run has also happened. As far as ERV exchange rate is concerned, this is already mitigated. It is factored in the contract, so we are not affected. Our cost of production will not increase. Understood, sir. Sir, from, say, next year perspective when the older inventory gets used up. Just to understand, are there similar to the exchange rate variation clauses also commodity linked of cost pass through? Yeah. ERV clause is there in each and every contract. Yes. Even in the repair and overhaul contracts also. Yeah. That is clear, sir. Yeah, on the commodity and other input costs also, are there pass throughs available? Other input cost means only material. Labor and all those things, this escalation is already factored. Material escalation is already factored in the contract itself. Based on our negotiation and the clubbing of the material and then LTBA and all those things, we don't see any significant increase in the material cost also in our future program. 97 LCA already we have placed purchase orders. Understood, sir. Very clear on that. Sir, one more question. Now that next two years we'll be working on five, six programs parallelly with LCH Prachand and also coming up for delivery and Su-30. While we have mentioned about CapEx and all, with regards to manpower and other resources, how are we placed? What could be the peak aircraft and helicopter delivery that we could do, say, in 2028 or 2029? Any color on that? Because we understand there is increasing private sector, you know, competition also for manpower and all. All the deliveries for the next year will be as per the contract. You touched upon the manpower and other things. If you see now, we are trying to increase our efficiency inside, and we are trying to outsource because we have partnered with so many people outside to do the main full structures, so that I will be the core integrator. We are trying to insource as much as possible so that my manpower cost remains as low as possible, so that I can use insourcing and outsourcing so that I get a better efficiency and the better costing for the product. Still we are open. This will be a balancing thing. 2028, 2029, we're talking about two to three years down the line. We have not closed our recruitment process also. It will be a balancing one. More of outsourcing, insourcing and some recruitment will also be there in the due course. Understood, sir. For all your manufacturing, just one clarification. All the manufacturing projects, revenue recognition is only at the time of delivery, right? It is not on percent of completion method. No, no. It's a as delivery. It's a delivery. We will have, possibly a lumpy year, two years down the line. Okay, sir. And, yeah. And sir, just one follow-up to the previous participant. We have read about press reports about the GE F414 engine. Right. The MK2 prototype you mentioned by next year and the order by when it could come, sir? Any sense on that? That will be by end of maybe next year because it has to fly. Parallelly Air Force will start pushing the paper. We are expecting by end of maybe another two years. Two years down the line, we can expect the order. Understood, sir. Thank you so much, and I will come back into queue. Yeah. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your question to two per participant. If you have a follow-up question, you may rejoin the queue. The next question is from the line of Kavish Parekh from 360 ONE Capital. Please go ahead. Hi, sir. Thanks for the opportunity. On the Sukhoi program, I have two questions. On the 12 Sukhoi 30 aircraft order, what is the expected execution timeline and when are deliveries likely to commence? How many aircrafts should we expect to be delivered annually over the next three years? Okay. The product, as per contract, it starts from 2027, 2028. That is, in that year, there's only one aircraft as per contract. Next year we are going to complete it. All 11 will complete. 2028, 2029. We will complete all. 11 units in FY 2029. Yeah. That is we'll complete. Second, on the Sukhoi 30 upgrade program, what is the likely timeline for contract signing and subsequent execution of the same? How should we think about annual revenue recognition from this program once execution begins? What will be the margin profile for the Sukhoi 30 upgrade revenues? Will it be closer to manufacturing margins or ROH margins? No, no. See, Sukhoi 30 upgrade program is an designed program now. The design program will go on up to maybe five to six years. We are expecting that CCS approval, we're expecting the CCL approval current financial year. The design probably five to six years. Only the upgrade program will start. Production. Production will start after five to six years. The margin, design margin, as usual it is in the range of 10% to 15%. Thank you. The next question is from the line of Sumit Kishore from Axis Capital. Please go ahead. Good afternoon. My sincere regards and best wishes to Mr. Ravi for shouldering this huge responsibility for the nation on heading HAL. My first question is, you know, the 10% to 12% revenue growth numerically in the second half of the year, how many LCAs are you factoring in terms of dispatch? Because it appears to be a single digit number given the value per LCA. And when I look at the inventory plus contract assets, that's almost INR 490 billion. What percentage of your inventory unbilled revenue is for the LCA program now? Maybe if you could address these two points as the first question. As I initially explained, also since we are getting around 20 engine, we are planning to deliver around 20 LCA. I'm not telling that it may happen in this quarter or next quarter or the last quarter, but this financial year we are planning to deliver this many aircraft. The 20 LCA we are planning to deliver. As regard to the, what is the second question? Which is the other part? Okay. You can answer. The inventory for LCA is around INR 7,500 crore. If you see about the unbilled revenue, unbilled revenue is against the delivery already happened. It's not against the inventory. Whatever we have delivered, because of the documentation and all those things, the non-receipt of documentation that we could not bill it. That is nothing to do with the LCA, I mean, non-delivery of LCA. Non-delivery of LCA, our inventory is around INR 8,100 crore if you include the raw material and the WIP. Thank you. The next question is from the line of Shirom Kapur from Jefferies. Please go ahead. Hi, sir. Thanks for the opportunity. I'm gonna start with the bookkeeping question. If you could quantify what was your export and development orders and sales for FY 2026. The export order, right now the export order is around INR 400 crore, and the development order, is around INR 3,000 crore. Okay. Got it, sir. Secondly, just want to understand, you know, on this pipeline that you mentioned of INR 900 billion orders over the next two years, including ROH. If we keep ROH of, you know, about INR 20,000 crore a year on the side, that leaves about INR 50,000 crore. You mentioned 143 ALH and 40 Dornier aircraft. Could you quantify, you know, how much these programs are worth and what other programs are in the pipeline beyond these, you know, such as the UHM aircraft and, you know, any other LUH, 12 LUH, limited series production that was pending. What are the timelines and, you know, quantities and values of those? These are the since these contracts are not yet 100% finalized, that's why I did not give the number, detailed number for each contract because it takes time. On the like a ballpark figure, I have just explained what are the numbers the services are expecting. We have started discussing with them with these numbers, with the with the top-level cost with them. However, it is not finalized. That's why we have not given any numbers to you. The major contributor will be the ALH 137 program, and as usual, your ROH program will be at the same level. Got it, sir. Thank you so much. Thank you. Next question is from the line of Harshit from Elara Capital. Please go ahead. Thanks for the opportunity and congrats for decent results and to CMD for having this role. Just a few questions. One is there was a news that there will be a penalty on GE for the delay in engines. Would that be from you or that would be from the Ministry of Defence? If that is true, how do you recognize that? Any quantum that you can share. No, these are all commercial activity as per the purchase order with GE, whatever is there. That we are talking about only the penalty. There are so many terms and conditions which is available in the contract. These terms and conditions are already available in our website also. No, it's not there. It's as per the procedure we apply not only to GE. This is applicable for all the purchase order we place on the vendors. Okay. Any amount that you can suggest, sir? It depends on the contract. That's why we don't want to give any number. It depends. When the delivery will happen, when the payment will be made, at that time we will decide. It's not the right time to tell what will be. We cannot quantify the penalties right now. Let the delivery happens, then we'll. Okay. Sir, lastly, just wanted to check on the AMCA program. I know you are not part of it, but is there a possibility during the production time, you know, HAL could be involved? Secondly, is there a possibility of you getting orders for a Su-57? First, let me answer about AMCA. This we have made clear last time also because the current tender whatever or the tender that is going to come is that RFI which was placed is for the D&D program only, that is to build prototypes. They have not indicated that the same person will do production. We are hopeful that we will participate in that. As far as Su-57 is concerned, it's the government's call, we cannot comment on that right now. Thank you. The next question is from the line of Harshit Patel from Equirus Securities. Please go ahead. Thank you very much for the opportunity, sir. My question is on the ALH. Have we completed the execution and delivery of all the legacy contracts, including the Army contract for 24 numbers? What will be our execution schedule for the contract of the 143 ALH that you are mentioning that we will receive in next couple of years? The deliveries of ALH, we have no issues. We have delivered everything as per contract. As far as the new one is concerned, now we have augmented the facility in the current helicopter division. Outside private vendors also are helping us in making the structure. We are confident that ALH, because since it is our program, in the sense, designed by HAL, we will be ahead of schedule. Just a clarification on HTT-40 program. I just wanted to check on any supply chain issues with the production, especially on the Honeywell engine. Also, if you can share the execution schedule, that will be helpful. Did you mention we will start in FY 2027 or FY 2028, the delivery? 2027. 2027. FY 2027. Uh, and how much- Sorry. Sir, how much units we are planning for FY 2027? I think we should be able to complete it by FY 2030. Is that the right understanding? You are right. You are right. The thing is, as you said, the supply chain of Honeywell engines, it was there a few months back. We have the continuous review and now it is stabilized. The engines will start flowing from next month. We are planning around 20 plus this year. To deliver, and every year it continues. Now we have two lines, one in Bangalore, another one in Nashik, so we should be able to ramp up faster and deliver. Can I ask one more question, if that's okay? Yeah, please go ahead. Yeah. Sir, what is the status of Uttam radar integration? By when we will start producing Mk1A with the Uttam integrated on them? I believe the earlier plan was to start from the 41st unit. Is that still intact? No. It's this is because it's by DRDO. We are only a production agency. Once they once they give the production clearance, we will go to the DCP partner, whoever it is, and we'll buy it. As of now, it is not coming in the 83 program. In the 97 program, we are planning to integrate this whatever. Thank you. Thank you very much, sir, for answering my question. Thank you. Thank you. The next question is from the line of Chaitanya Iyer from Goldman Sachs. Please go ahead. Hi. Am I audible? Yeah. Please go ahead. Yes. Hi. Thank you so much for the opportunity. Wanted to ask provisioning as a percentage of revenue was on the lower end this year. Can you please elaborate on that? What would be the stable state guidance that we can consider for the same? The provision is based on the any happening of an event. Last time the provision we made because one Su-30 aircraft got into an accident. For the replacement purpose, we made a provision of INR 800 crore. That situation is not there current year, so it's not comparable. Provision is based on any happening or not happening. For that reason, last year that INR 800 crore was there, and that INR 800 crore is not there current year. There cannot be any guidance, percentage of revenue, I mean, provision. Understood, sir. Sorry if I missed this, but, could you give the exact numbers for the manufacturing, ROH, development and exports for all four of these? Manufacturing, see, at the current year, if you see, manufacturing, is around 28%, and then repair and overhaul, 60%, 62%, and others, 10%. Okay, thank you so much. I'll get back in queue. Thank you. The next question is from the line of Neelotpal Sahu from JM Financial. Please go ahead. Good evening, sir. Thank you for the opportunity. Just wanted a clarification. Can you help quantify the manufacturing share of revenue for the INR 48,000 crore of this 83 LCA Tejas Mk1 aircraft? That would be the first question. Can you please repeat? It was not clear. INR 48,000 crore, I assume includes some ROH component and some of the payments to ADA as well. Can you help us understand what would be the share of purely the manufacturing part of revenue that would accrue to us? INR 48,000 crore. Where'd you get that number, INR 48,000 crore? It is the order book position you have. Yes. The complete order is for INR 48,000 crore. This complete order is on HAL. The entire contract is with HAL, and whatever supply will be made by HAL, entire thing will be revenue for HAL. Oh, understood. Understood. Thank you, sir. That was my only question. Thank you. The next question is from the line of Sanjeev Zarbade from Antique Stock Broking. Please go ahead. Thanks for taking my question. Sir, there were predictions that in the future, the growth of manufacturing revenue would be faster than ROH, and it could be probably, you know, impact margin going ahead. Your guidance of 30%-31% EBITDA margin. How should we, how do we respond to that? Your manufacturing, your repair and overhaul also. What we said, now current year, if you see, your revenue growth is around 7%. As you grow, if manufacturing sales will grow, then definitely composition what is there right now is around 28%-30% to 70%. It will be in the range of 50-50. There is no reduction in the repair and overhaul sales. Repair and overhaul sales will also grow by addition of the new platforms and all those things. The manufacturing will as well, manufacturing sales will grow. The composition only it will be now 37, it will be in the range of 50-50. Your revenue growth will also be there. With that, we don't feel And there will not be any stress on the profitability from the manufacturing contract, though revenue, there is a, I mean, the profitability on repair and overhaul little bit higher than manufacturing. repair and overhaul, growth will be there as well and manufacturing there, and there we don't see any stress on the manufacturing sales also, I mean, in terms of profitability. Okay, sir. Thanks. Certain that the 30% will be maintained. Okay, sir. Great. Thanks and all the best. Thank you. Thank you. The next question is from the line of Dipen Vakil from PhillipCapital. Please go ahead. Thank you for the opportunity, and congratulations on the great margin. First question is, I want to understand your order book position with respect to the projects which are currently under execution. Like, what is the pending order book for engines and ALH helicopters. Can you help us with the amount breakup for the order book currently under execution? Currently, as you see, LCA is one of them. We have 230, 12,230 we are doing, AL-31FP engine we are doing. Dornier 228. ALH again, 16, 21 ALH we are doing. LCH as usual, for this year, we are doing. HTT-40 and RD-33. These are the major platform which is already going on, which I told in my opening statement that around INR 2,84,000 crore order is there. Thank you. The next question is from the line of Amit Anwani from PL Capital. Please go ahead. Also thank you. Am I audible? Yeah, please go ahead. Yeah. My question again on LCA. You did highlighted that, I think there is a final leg of iteration and probably six by September we can deliver. I think so far in April, May, we may not have received the engine. What is the understanding now? Are we still targeting to get at least two engines per month from probably next month till March? No, no, Mr. Amit. Again, thanks for your question. June we are expecting one engine now. Afterwards it is going to August. From August, they have committed two. At by end of this year, around 15- 20 he has told. 15 he's telling, "Yes, I will give," but the balance one he may get more, which he's still not committing. That's why I told 20 LCAs we will deliver this year. At least 15 additional, and that will be largely starting from August to March. August, yeah, correct. Exactly. Deliveries will slip to next financial year. Is it correct? How much time it takes for engine to be received after you start delivering till the final delivery happens to the IF? How much time it is going to take after. It's around 30 -45 days. 30-45 days. Understood. Sir, what is the core reason that last financial year also, you guys received a commitment of at least two engines per month, but nothing of that sort materialized. Is it the issue at the GE end in terms of supplies or, s o what is the core issue that so much of variability is happening in terms of delivery from GE, despite now things have been okay versus the COVID time? What is the core issue at their end? Yeah. See, supply chain issue is global. It's, it has not spared anybody. Even the big players like GE or Honeywell, everybody are impacted with the supply chain. They also has gone through that cycle. There were some casting issues what they had, because we, as I explained earlier, we went to the tier two, tier three suppliers also to understand the real issue. They had real supply chain issue. It is again supply chain. As I told that disruption is, hit GE also. Now they have found a alternate for that. That's why we, he is committing the numbers what I explained to you. Understood, sir. Finally, you mentioned about the ongoing projects. Wanted to understand in terms of numbers, how much, for example, the engines, RD-33 and AL-31FP, how much numbers you are targeting for deliveries across different platforms? That would help. See, our target is around 30 to 35 engines per annum. AL-31FP. RD-33, only 15 engines are left, and those 15 will be delivered in the current financial year, 2026-2027. Right. What's the target for HTT, ALH? ALH Army, the 10 numbers are left out. Then we are going to deliver those 10. [audio distortion] is another five and- [audio distortion] [audio distortion] is eight. These are our target. These are all on track, and we'll be able to deliver. LCA, you said, probably we are targeting 15-20 deliveries this financial year. Yeah. That's right? Yeah. You are right. Understood, sir. Thank you so much, sir, and all the best. Thank you. Thank you. Thank you. The next question is from the line of Shreya Agrawal from Asian Markets Securities. Please go ahead. Hi, this is Mayur Milak. First thing, you've added about INR 9,000 crore into your inventory this year, and you've said bulk of that is the LCA inventory that you've carried. This is all the bodies that you had made, the airframes and the engines received, all of that is sitting in inventory, is it? Yeah, yeah. That is a WIP what we have built up for. Thank you. If you are only talking about LCA, many programs are going on. The inventory, repair, out of INR 33,000 crore, INR 20,000 crore is towards repair and overhaul and supplier spares. We built up inventory for repair and overhaul also, spares supply. We have Su-30 kits, AL-31FP engines, RD-33 engines, LCH to some extent, ALH. This inventory is for all those platforms. HTT-40. LCA is a part of it, as I said, out of INR 33,000 crore, LCA is around INR 8,000 crore. Sure, sure. Sir, the second thing, we've had capacities of 24 LCAs, and assuming that these deliveries begin as and when in this fiscal, will it be fair to assume that we should start having a better operating efficiency and some recovery in margins because of that as well, since most of that facility would be lying idle as of now? No. Why, why they are not idle because, you see, production is happening. We have three lines now, one, two in Bangalore and one in Nashik. Not a single production line is idle because we are continuously building the structures, equipping them. Everything is being done. It's not that these facilities are idle. That is why we were able to do what we showed at the March end 2021, 2022 structures ready. Those structures are fully built, I'm sorry, fully built and, engine ground run completed. Means all the systems are working fine. There's nothing called idle capacity as of now. Okay. 97 order also coming, so all these facilities will be 100% utilized throughout the year. Okay. Sir, just, since you've been mentioning it, time and again that there is an ongoing process of, you know, the checking and the facilities on the LCA and approvals are expected once we complete most of these parameters. I'm just trying to understand, let's say as and when the first round of deliveries happen, will that mean that all other, dedicated numbers will have the same software or there will still be upgrades coming in on the pending, volume that needs to be delivered to the armed forces? No, because once the certification happens, all aircraft will be with the same software. Minor modification will be there. That's always continuous improvements will be there. That will not delay. That will not be like a huge jump. Minor updates will be there because once they fly, few improvements will be required. So that we will take- Done on the field. Yeah. Most of the run take is done in the. Okay. That is why you're saying that once those deliveries happen, we should expect better returns on the spare part use and the ROH income. Will all of those changes be part of the service income? The LCA will not be, because these deliveries are happening now. These ROH will come after some time. Already, 38 LCAs we have delivered from earlier contracts. Those things will come now. With ALH continuously we are supplying 20, 25 every year. Those things will come. There will be addition in the quantity, repair and overhaul quantity. These LCAs what we'll be delivering right in the current finance year, maybe like three years, two to three years after that, this will come. ROH cycle will start for the average. Okay. Okay. Sure. That will be all. Thank you so much. Thank you. Thank you. The next question is from the line of Sagar Dhawan from ValueQuest. Please go ahead. Yeah, thank you for the opportunity. Sir, just wanted to understand on the ROH side, typically in the LCAs, like you said, you delivered 38. In the INR 100 of the value of the equipment, what is the relative ROH portion in that? I mean, if INR 100 is the equipment, then is there a thumb rule that this much would be the ROH component in terms of value? No, no. ROH, you see, repair and overhaul has nothing to do with the sale of the equipment. See, after that, it depends on the what type of repair, whether it is a repair or it's a full overhaul. If it is a full overhaul, now we have a separate kind of mechanism, pricing mechanism. 10- 15 will be on cost-plus basis. It will come for the overhauling and whatever will be the cost, actual cost in terms of component, material, labor. The selling price will be decided on that basis. Based on the sample, then the overhauling cost will be fixed. Okay. It's a, it's a, it's a procedure, a repair and overhaul procedure. We call it PPRC, Pricing Policy Review Mechanism. It is done in that way. Understood. There is no fixed percentage that ROH will be a fixed percentage of the equipment cost. Got it. Sir, one more clarification. When you receive an order for a new aircraft, let's say Tejas LCA order you have received, couple of years back, you know, in 97 plus 83, did that order inflow include the R&D portion in that or that order is only for the equipment? It's only for production. It's only for the delivery of the quantity along with the spares. That will be a separate order later. Thank you. The next question is from the line of Shubham Dalia from Nirmal Bang Institutional Equities. Please go ahead. Hi. Thank you for the opportunity, and congratulations on the great set of numbers. Thank you. My question is on the, on the number of deliveries that we are expecting and the guidance, that is there. We're expecting around 20+ HTT- 40, then we're also expecting, LCAs to go. The guidance is 10%-12%. Are we seeing some risk in any of these programs? That's my first question. Risk, when we tell 10% to 12%, then hopefully we have taken all these things. Into factor while we compute our the revenue target for the current financial year. Hopefully we expect that whatever we have told right now, we'll be delivering. We have our own ways and means to see that if something goes wrong. We will always have our plan B in here that we cannot tell you right now. We are confident that LCA and HTT-40 will be delivered, and whatever guidance we are giving, 10% to 12%, we'll be able to maintain it. Thank you very much. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments. This is Ravi here, CMD again. I just want to thank each one of you for taking your time and asking us questions regarding all the questions. We at HAL are continuously working towards meeting the targets what we set. I, again, once again, thank each one of you for participating in this call. Thank you very much. Thank you. On behalf of Ambit Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you. Thank you.