Ladies and gentlemen, good day, and welcome to the Q3 FY 2026 Harsha Engineers International Limited earnings conference call. As a reminder, all participant lines will be in a 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. Please note that this conference is being recorded. I would now hand the conference over to Mr. Vishal Rangwala, CEO of Harsha Engineers International Limited. Thank you, and over to you, sir. Hello, all. Warm welcome to our Q3 FY 2026 investor call. As usual, I will ask Mr. Maulik Jasani, our CFO, to take us through numbers in greater detail later on. However, I'm assuming that you would have had a chance to look at that already. First and foremost, let me start with, you know, overall, I'm really happy to note that, you know, macro level, quite a few positive events have happened, which has definitely improved overall market sentiment. This would include India-UK FTA, followed by FTAs with few other countries, and a very positive India-EU FTA recently concluded. And to top it all, much awaited India-US trade agreement. Again, with some strong directional push in CapEx, plus long-term tax holidays announced in certain key segments in the last budget, we are all fairly confident that India can sustain a good GDP growth rate of around 7% in coming years. As you would have observed from our numbers, at the outset, I'm happy to report that Q3 FY 2026 performance is broadly in line with our expectation, except for a slight blip in the form of below par performance in Romania. Our India engineering business, comprising of our company plus our wholly owned subsidiary, Harsha Advantek, has continued to show a strong performance, both in top line as well as bottom line, notwithstanding the fact that Harsha Advantek, which has commissioned its greenfield facility in current financial year, has reported losses at the PAT level, primarily owing to impact of higher interest and depreciation. Further, as you would have seen, we had to make a one-time provision of around INR 5.97 crore in Q3 in India for additional gratuity and leave encashment, to give effect of the changes made by the new labor code, made effective by the government in Q3 FY 2026. This is a one-time exceptional provision required to be made retrospectively in Q3. Our India engineering business has reported a 17.4% revenue growth in Q3 on a YOY basis. If we normalize the effect of one-time exceptional provision, then our India engineering business operating EBITDA margin has shown a healthy 23.8%, though the reported EBITDA is at 21.7%. As mentioned earlier, this is after absorbing net loss of INR 3.7 crore in Harsha Advantek in Q3. We expect a much stronger revenue performance in Harsha Advantek subsidiary in Q4, which should increase the EBITDA and reduce the Q4 loss in Advantek subsidiary. Talking of outsourcing of cages in our India engineering business, we are steadily growing in this segment owing to a combination of favorable factors. If I talk of a cage demand in India, the same is on rise, and we continue to have a dominant market share across variety of customers. We have started supplies to a lot of our customers' new facility in India, which caters to various world markets. Our export from India are also gradually going up, with EU continuing to show revival in industrial demand for cages, though wind demand is still not picking up in Europe. I believe that with the favorable FTAs, the demand should go up in Europe in coming quarters. In this regard, large size cages have continued to show a strong performance, having achieved sales of around INR 39 crore in nine months period to December 2025, as against INR 31 crore achieved in the corresponding previous year, nine months. Pace of new product development continues to be strong at around 123 SKUs up to Q3 or only in Q3, resulting at 382 SKUs for the nine-month period ending December 2025. Again, if you see our other growth drivers, I'm happy to report that bronze bushing business has continued its strong growth trajectory, reaching a record sales revenue figure of about INR 92 crore in nine months ending in December 2025. Thus, as per our earlier estimate, we are on track to achieve about 30%+ growth YOY basis in this segment. If I talk stamping, while there was a blip in Q2 due to some seasonal impact on consumer goods segment, they are again catching up in Q3, and stood at the overall revenue for nine months stood at INR 41 crore up to December. I expect stamping sales to further grow in coming quarter due to few new stamping components which are under development, which are likely to be commercialized in next financial year. Lastly, while sales growth to Japanese customer is slow, it is still a positive direction. We are confident that though this is taking longer time, there is no dilution in our efforts, as well as the opportunity for a significant growth in our market share with our Japanese customers. Talking about overseas subsidiaries, I'm glad to state that Harsha China has continued to report a consistent, steady performance, resulting into maintaining a decent profitability and a growth trajectory. In fact, you would have seen in our disclosure made by us to the stock exchanges, we have formed up a brownfield expansion plan in China at the outlay of approximately $9.94 million for expanding cage manufacturing capacity in China, with primary focus of steel cages. The logic of this expansion is that there is a good demand for steel cages in China, primarily in the industrial segment. We believe that we can significantly improve our market penetration in this segment in China, as we increase our cage manufacturing capacity in China as a local player, which is essential not only for our existing key MNC customer present in China, but also for local Chinese bearing manufacturers who can be serviced if we have adequate steel cage capacity in China. We will fund this expansion primarily through not debt, and then up to maybe 70%-80%, or rather, we will fund this by borrowing locally, and balance of it will be funded through equity contribution from Harsha India. The expansion will be implemented at our existing site as a brownfield expansion, and we intend to make this operational before end of financial year 2028. In this quarter, we again saw Romania's performance coming under pressure, primarily owing to a steep increase in copper prices globally, which could not be passed on to the customer immediately as there is a lag. This has resulted into an operating loss at Romania, and the combined net loss of our foreign subsidiaries stood at around INR 3.98 crore or INR 3.98 crore in Q3. For nine months, it stood at INR 6.09 crore in nine months or year to date. However, we still remain confident about Romania likely to do better in coming quarter because of our consistent and conscious shift and focus on the finished cage business, customer diversification, as well as cost control strategies under implementation. Talking of our solar business, the solar division has reported a strong performance in Q3, reporting a top line revenue of around INR 59 crore, and EBITDA of around 9%. However, as I mentioned earlier, this is an order-driven business, and the overall performance in the current financial year will be, you know, it's good and continuous positive contribution, this division is continuing the positive contribution to overall business. Lastly, I feel very confident that we'll continue to perform well in Q4 in this segment as well, and we should be able to achieve overall guidance we've given for financial year 2026. More importantly, we feel that we are on a good trajectory for next financial year and hope to continue this direction. However, we would prefer to give our overall guidance, for FY 2027 at the time of Q4, FY 2026 annual result call. Now I transfer it over to Maulik, who will take us through numbers in a little bit more detail. Over to you, Maulik. Thank you, Vishal, for the overall business overview. Good afternoon, everyone. As you would have noticed, for the quarter ended December 2025, at consolidated level, have achieved a top line of INR 350 crore, against the INR 363 crore top line in the immediate previous quarter, and INR 302 crore top line in the same quarter last year. We have achieved consolidated EBITDA for engineering segment of INR 58.6 crore, against the reported EBITDA of INR 63 crore in the last quarter and INR 48.2 crore in the previous quarter. However, adjusted EBITDA is of INR 64.3 crore in this quarter, after adjusting the one-time provision impact of the new labor code. Increasing trend in metal prices, especially copper and lag in raw material pass-through, has impacted our EBITDA margin and that compared to last quarter. Also our new greenfield sites, Bavla, at Bavla has reported a net loss, as Vishal has mentioned, due to the first year operations. We also capitalized the second building in our Bavla site in the last quarter. Both foreign subsidiaries have jointly contributed EBITDA not also of around INR 58.1 lakhs, at a total level of both foreign subsidiaries. Solar business, as mentioned, has achieved a revenue of INR 59.7 crore, with an EBITDA of INR 5.5 crore. Overall working capital cycle at consolidated level is around 140 days, against 146 days in the previous quarter, and 145 days in the last year same quarter. We have incurred CapEx of INR 32 crore in the last quarter, and cumulative CapEx of around INR 100 crore in the last three quarter in the current financial year. With this brief note on the financial numbers, I request operator to take the Q&A from the participants. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchtone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are requested to use handsets for asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Harshit Patel from Equirus Securities. Please go ahead. Hi, thank you very much for the opportunity. Firstly, on the India engineering business, this was the second consecutive quarter of a very strong growth, wherein we have done a mid double-digit to a high double-digit kind of a growth in this business. So could you highlight which are the factors, some of the end user industries, which have drove this performance? Also, if you could give us a flavor on pricing versus volume growth mix within this 17% growth that we have posted in this quarter, that will be very helpful. So one, Harshit, from our point of view, for us, the geography point of view, India is doing very well, as well as Europe, as I mentioned earlier, and both are driving overall growth for us, being a very big segment for us. This growth is primarily. It's purely quantity-driven growth. And we are seeing a volume growth, as yet, I think in the last, I mean, Q3, we don't see any you know material impact or pass-through, which has materialized, so which will happen in the current quarter. And overall, we are seeing India, we are seeing you know strong demand across all segments, industrial as well as automotive. Overall, globally, we are seeing industrial segment slowly improving, which was in a negative cycle over the last year and a half, too. Which is recovering is how we look at it, and so that's how we are seeing it. And for us also positive is bushing growth and stamping business growth, which are largely domestic focused. So that also supports India growing overall very well. So that is also supporting. Just to quickly add, one thing. This year, if you see, there is also a growth in exports. So last couple of years that India was growing domestically, but exports were pulling us down a bit. Now, export is also showing about 10% growth. So that is helping us, you know, showing a much better growth number at India level. Understood, sir. Secondly, on the CapEx that you have announced in China, we have announced a CapEx worth about $10 million, which is a pretty significant number. Now, given that we are still operating at about 55% capacity utilization over there, so do you see that the demand is going to be very strong in the near term, and that is why we are expanding, we are sort of trying to preempt the demand over here? So also, if you could give some flavor on when we would have expanded this capacity? So on that new scale and size of the plant, what would be the maximum revenues we can do at the China level? Maybe in FY 2029, because FY 2028 is where your expansion will get completed. At that scale, what kind of revenues and EBITDA margins we are aiming to do? Slightly, longer term, broader question, but any outlook on that will be very helpful. Yeah. So, again, we are in China. There are a couple of things happening as I mentioned. We have a significant brass capacity located locally in China. However, when it comes to industrial steel cages, we don't have any local capacity. And we are seeing industrial segment grow, and our ability to participate and get some share of business significantly changes when we are a local manufacturer there. So that's what is primarily driving this capacity expansion. Within China, what we are doing is so there is some amount of brass capacity also expansion, part of this expansion plan. Now, in this investment, a big chunk, about 40%+ is, you know, infrastructure, which includes building and a few basic infrastructure we need to build, to actually house a lot of our dedicated capacity there. So that is a big chunk of this investment. And then we are adding, you know, cage capacity, as I mentioned, primarily in the steel industrial side, where we are seeing a good demand and growth and opportunity to penetrate local markets. So that's the rationale. From a number point of view, it will be very difficult to give you a very precise number. Having said that, we are looking at for the piece or for the equipment, which we are going to install, we are expecting at full maturity, it should give- Around 2 X, yeah. Yeah. Around 2x turnover at the peak. Current revenues will be double. And, yeah. Correct. So, we are looking at the 2x overall revenue in China when the full maturity of all this capacity takes place. Now, that, that still leaves us with additional infrastructure for further expansion because we are doing a full infrastructure expansion right now. So then we are kind of keeping space to accommodate any, any growth opportunity comes our way in a different segment and so on. That's good, sir. Thank you very much for answering my question. I will come back in the queue. Thank you. Thank you. Thank you. The next question is from the line of Amit from PL Capital. Please go ahead. Hi, sir, thank you for the opportunity. Sir, my question again on China, what is the, like, kind of understanding the rationale to expand? So, will it be, you're penetrating completely local, this 2x sales which, which you're trying to achieve by FY 2029, FY 2030? So it's a combination of our existing customer as well as local. We are seeing opportunity to get better market share through localization even in our existing customer base, as well as some of the access to customer is not available if we are, you know, supplying out of India. So we are kind of creating that. So it's a combination of both local customer as well as our global MNC customer, increasing the wallet share with them. Just to add there, Amit, is that in the specific industrial segments, there are areas where, in China, there is only one or two local suppliers, and there is no major suppliers available. And hence, even the local bearing manufacturers need reliable and consistent suppliers as alternate suppliers, and there where we have a great opportunity to even capture the local manufacturing bearing companies in the industrial segment of the steel cages. Right. But is there anything, like, with the existing customer you'll be able to utilize maybe 50%-60% of what you're installing? Any ballpark or it is still open that once the factory is- Yeah, there is definitely, there is definitely great dialogue. So no, we don't have a clear commitment. However, we have a good engagement and discussion going on, and we are, some portion of capacity will definitely go towards supporting our existing customer in a bigger wallet share of their demand. All right. And are we, like, kind of confident of margins, having you know, from the past experience in China? So what, what is we are looking for in terms of margins or something, probably looking at the past, we have seen challenges with our international subsidiaries anyways, yeah. Yeah. So we will definitely, we are confident that at the right revenue level, we will improve our existing EBITDA in China. We are definitely trying to see a better margins possibility here, and that's also one of the incentive for, you know, us to go there. Also, there is a scale, need of scale at China level, which will also help us. Operating leverage. Or create operating leverage, improve our margins even on the existing portfolio as well, so. All right. Sir, again, on this thing, you said somewhere in your commentary, wind demand is not picking up in Europe. So, I think, is there any implication for bushing business that there might be some challenge or...? Because I think you have written it is going strong, but I am just trying to understand- Mm. from what you mean to say by wind demand. Yeah. So, yeah, so, I think our bushing business is focused on replacement driven concept. So that's why that is continuing to grow in spite of, you know, Europe wind not doing as well as we expect. However, we are some significant portion of our Romania facility is supporting wind market, so which is not as a wind market overall, and, Europe is not doing that great, and that's the reference I was kind of mentioning there. So, we don't see that as correlated. At a full conversion majority, the bushing business will follow the wind market, what is going on in wind market. But having said that, right now we are in a very different phase when it comes to bush, where the focus is on whatever is the existing, wind application converting into bushing, and that will drive the bush. All right. So lastly, on Romania, you said, this quarter was impacted by commodity prices, and probably that might continue in focus. So what is that you are looking at now, Romania? Last time, I think there was some recovery there, and you highlighted, that time. So, now with this challenge, what's the outlook for next, one or two quarters in Romania? So, I think I will not be able to exactly say how it's going. There is a lot of volatility in the commodity market. We do have a pass-through mechanism, so we have a quarter-to-quarter impact and correction. But, as... I mean, not knowing future, but what we have seen so far, so there is a significant volatility. So that, that there is a risk and a concern remains. Having said that, as I mentioned earlier, that our improvement program is going on. We are improving the revenue and the product portfolio, doing more cages and so on, which is taking traction. So, apart from this specific challenge, I think if you look at comparison on the revenue side over last year, similar quarter, we have grown and we have improved our product portfolio. We are not at all where we need to be, so we are continuing to work on that and evaluate the situation, engage with customer and see where we what's the right path going forward on this. Thank you, sir. Thank you so much. Thank you. Thank you. The next question is from the line of Saket Kapoor, from Kapoor and Company. Please go ahead. Yeah. Namaskar, sir. Hope I'm audible. Namaskar. Yes, sir. Yeah. Thank you, sir. So firstly, if you could just reiterate for the sake of repetition also, on the guidance front on what is the likelihood for us to exit, FY 2026, firstly? So we had, Saket said that we will be, in terms of growth, a little over 10% overall. So this Q4 should also continue the same run rate with maybe a little bit marginal improvement. So let's see. So that's what the guidance was. So we are on track. We should be okay. On the margin front also, on the standalone business, the reported 23- Margin growth will be better. Margin will be better, and we are aiming at, you know, in the EBITDA range, as we had talked about, and the PAT range, reaching, taking the last Q3 run rate and then slightly improving our Q4, we should have a much better bottom line growth in FY 2026 as compared to FY 2025. No, sir, the EBITDA margin we have for the standalone business for that 23%, 23.4, that is what we have reported. So, so we are confident on- I have been maintaining. No, no, see what happens, there is always a quarterly lag between the commodity prices and the selling prices. हमने बोला है कि at India level, consistently, we should be in the range of 20%-23%, बाईस-तेईस टका की range ही चलेगी. And then a little bit of impact of Advantek will be little lower, as compared to Q3 this year in terms of loss. तो थोड़ा loss तो आएगा Advantek में, it will not completely break even, it should break even from next year. So the turnover is steadily increasing, Advantek में और भी turnover बढ़ेगा Q4 में, as Vishal said. There are quite a bit of moving pieces, but मैं ये मानता हूँ कि we should be reaching the targeted PAT level in the range of around, say, maybe INR 145 or so. Let us see. Okay. Sir, अगर हम हमारे तीनों इकाइयों को split करें, if you could just give the nine-monthly performance for sales and profitability for Romania, China, as well as Advantek, separately, just if you could give the number. And then, sir, on the Romania part of the story, if I remember correctly, we were about to discuss and articulate the strategy or restructuring for the unit, wherein better deliverables from the same can be derived. So where are we, sir, in terms of that? On the numbers, we have already given numbers in our investor presentation for India engineering business and foreign subsidiaries performance. So you may refer our investor presentation, there you will find the numbers. And on the Romania story, yes, our focus is still on the same side, on enhancing our cage proportions compared to our current casting proportions, and the dialogue is already on with the customer. Sir, I was looking for the split between the China and the Romania business separately, and the Advantek. Can you have that all three separate numbers? So I tell you, as a matter of strategy, in the past, we are always giving a combined number at the foreign subsidiary level. So you will see that the loss was about INR 6 crore in the nine-month period in the foreign subsidiary level. मैं मानता हूँ कि there could be a little reduction in Q4 in terms of combined loss, but you may take a combined loss in the range of maybe around INR 8 crore for the year end, for the foreign subsidiaries. Advantek में हमने आपको बताया है कि Advantek का loss का figure भी we have already given, it was INR 370 lakhs in the Q3. It should reduce in Q4, but it will still be at a loss level. So I think exact number, we will not be able to give, but this is already given, the way we have explained, actually. Okay. Sir, two small points. Sir, in your presentation, you had mentioned about, and earlier also, about this lower offtake from your Japanese customer. So, if you could just allude to us, where are we in terms of the deliverables and the order booking from the Japanese concern? And, then, sir, when we in the slide, we have mentioned about this diversification in precision stamping and bushing components. So this stamping is also attributed to the bushing part of the story, or we are separately doing stamping of other tools also? So, yeah, we are doing beyond the bearing cages and bushing, we also supply stamping components to our customer, which are automotive, as well as consumer goods, and some industrial goods and so on. And what was about- Stamping is separate than bushing. Yeah, stamping is a very different... Yeah, it is an extension of our capability for manufacturing steel cages, which is a stamping process. But we have developed some very special components like, you know, railway, it's, steels or compressor, special type of compressor stampings, et cetera, which is extension of our technology skill set into a little diversified field, but keeping the same value addition in mind, कि हम 20%-31% से नीचे धंधा नहीं करना चाहेंगे। So we are not doing me-too kind of a situation. But bushing is a replacement for bearings in, the gearbox, windmill gearbox, so it's a very different application. Okay, sir. Just, just to hasten about the stamping part, sir, this will be in the Advantek unit we are doing, or it is in the older component plants only? Both, both. We have existing maybe here, and we may have created additional capacity for bushings and large-size cages. Okay. And lastly, sir, lastly, if you could just give us your message for your investors. I mean, we got listed in 2022, so, we were spared from what happened in COVID in terms of valuation. But even, even if we had taken into account, the vagaries of the market, the business environment, geopolitical issues, every aspect, shareholder have no... Value creation has not happened for your investors, that is including the promoters, who hold three-fourth of the equity. So, we have seen on the deliverable front, what else and, how quickly would this translate into value creation for us in terms of, consistent, profitable, predictable growth for the organization? So- ... if sir would just throw some insight on the same. Yes, Saket, you are right in what you have observed, but also please appreciate that macro level factors are beyond our control. At every single point in time, we have been very transparently communicating with the shareholders and investors that what is the current status. With 35% of my business coming from Europe globally, and Europe going down, and then the geopolitical tensions, with all this, I think we have done very well in terms of quickly, you know, going to the drawing board, reworking our strategies, and trying to grow and trying to maintain a decent growth. I think I don't want to speak more, but it seems that this year was much better than last year, and now next year will still be better. Our job is to be transparent about what the current state of affairs is, what is our strategy, and how we want to keep the company on the growth path. Market is something which nobody knows, and we can't control. That's all. We'll be very communicative about what we want to always transparently feel as correct. Right, sir. I join the queue, sir. This is Saket, yeah. Yeah. Thank you. Yeah. Yes, I'm Yes, I'm joining the queue, ma'am. Thank you. Thank you. Thank you. The next question is from the line of Manish Goyal from ThinkWise Wealth Managers. Please go ahead. Yeah, thank you so much, and congratulations on very good set of numbers, sir. Sir, couple of questions. First, if you can give us the revenue breakup for your new businesses, bronze bushing, stamping, large size, and Japan-based customers, for nine months current year and comparable numbers of last year. Yeah, I think, Manish, that was covered in Vishal's commentary. Let me repeat it for your- Yeah, please, you can. Easy reference. Yes. Large size cages, we did nine months, around INR 39 crore, versus last year, same nine months, it was around INR 31 crore. Right. Japanese customers is around INR 51.5 crore or INR 50 crore, against INR 50 crore roughly in the last year, so almost stagnant. Stamping, we did around 39 crore and 41.2 crore in this year, while the bushing, around INR 74 crore -INR 75 crore last year, versus INR 92 crore this year for nine months. Okay. And so related question is that, roughly, if I do the math, it is contributing 21% of your revenue, all these three, four categories. So how do we see this going forward over a period of next two years and three years? Or maybe, what kind of visibility we have? Can it, probably, this business can develop in two years? That was first question. And second, also question is on the cages business, that independently, how do we see growth rate in the cages business? So, I don't have a very precise double up number like that, but, all we are—these are our focused, growth drivers, where we see good opportunity, and that's why we keep on mentioning the numbers, and sometimes we don't do as well as we expect. Having said that, we see, we expect a very good growth all, in all this segment. It may happen that one segment may kind of, falter, for a while or something like that. But, you know, across all this segment, we have, signed a lot of, new supply agreements with our customers, and we feel that, they are on a good growth trajectory and, realization will happen soon. And on the cage side, we see that as a product, a very strong growth, continuing. It's basically what we offer to our customer in terms of cages is a very unique proposition, and we are fairly confident that what we bring to the table will bring us that additional growth. We are seeing also, you know, that is also driven by our existing business, which was supplied into Europe or U.S. or other locations, how those, you know, clients are doing. However, in India, it is doing very well, continues to grow, and we feel fairly confident overall about cage business as well. So just to add, large size cage actually is a subset of our cage outsourcing for the simple reason. It's carved out separately because it was a relatively low volume share before 5 years, just 0.5%, 1%. Now we are targeting it maybe at least 5%-7%, and that's one area which is growing very well. So that's very much a part of outsourcing. And I think overall, all the Japanese customers are also saying, our volume share with them was 1% or 2%. We are targeting at least 5%-10% in next 2-3 years. So, you know, these are within the bigger subset of outsourcing, these are the carved-out subsets with specific focus. Sure. And sir, so like, you did mention that the new product development is gaining pace. Would like to get a perspective as to are we gaining market share with your customers and, and, and the resourcing, like you said, started supplies to the customers, new facilities in India. So how should we look at it? That probably next year we can look for a double-digit growth overall for the company. So, see, for us, product under development or development is a leading indicator. What that means is that customer is continuing to give us product which we will develop, and commercialization of such product may take anywhere between six months to two to three years, depending on how customer is approaching. In case customer will decide sometimes that only when you complete the complete portfolio, that we will start commercialization, and so on. So, basically, we mentioned that as a kind of an indicator that, you know, our pipeline is strong, and that's the case. Now, in terms of, you know, doubling the growth, I think it depends on variety of factors. It depends on how the industry is doing, as well as how the new projects come online. We are very hopeful and confident that good, good revenue growth is in pipeline, but it depends on all those factors, so it's difficult to exactly put a number to all that. No issue, sir. On the margin front- Your question was whether next year we will go for a double-digit growth, correct? So as I said, definitely that is the target, but we want to give you a little more precise guidance based on certain new developments, so we'll come back to you at the end of Q4. Okay. Sir, particularly on the margins, like what, India, the standalone engineering margins, what we have seen, for engineering business at roughly 25% for this quarter, is this sustainable, going forward? Also in context with now that steel prices have started inching up, copper prices are inching up, so how should we look into it, sir? So usually, Jamie, sorry, Manish, we have said that, our margins should be tracked on the absolute front, considering there is a material path for impact, impacting the percentage, either on the upward side or downward side, as the case may be, or, according to industry cycles we are going into. So our, our suggestion is the same. Please track our absolute margin improvement, and we are confident to improve that margin, definitely year over year as well as quarter over quarter. So Maulik, sir, like, what is the time lag for you to pass on the cost? Is it on monthly basis or- Usually we see it as a three months is the period, and we have one month as a lagging, so four months total lag. But again, customer to customer, it varies, so on average, you can consider as a four months. Right, sir. And, are we seeing any immediate benefits from the FTAs that India has signed with U.K. and E.U., E.U.? And also now with tariff coming down in U.S., how should we see the prospects going forward? Obviously, the export demand will pick up. That's our expectation. There is no direct linkages, but definitely there is a linkages, and considering that our product is a multi-usage product and multi-industries usage product, we can't identify the exact end-to-end benefit. But yes, we see that as a positive outcome for our business line. Okay. Last question, Just to add on the US front, our share was not very big anyway in US, around 8%-9%. So to that extent, we were rather, you know, sort of neutral or agnostic to that. Yeah. Sure. Last question, sir. On the new facility now, we have started the second building, we capitalized the second building as well. So, what kind of ramp-up we see, what kind of, utilization visibility we see from it, next year? And, can it revert to, company-level margins, next full year? Our anticipation is to do it early, but as we have committed, any new CapEx usually takes two years to reach to the peak, and we are on the same track. We don't see anything lagging there. Sure. Thank you so much for all the answers. And hello. Thank you. Yes. No, just one question, just want a clarification. This Q3 presentation, the international revenue share, has been restated for Q2, FY 2026. So any reason for that? Was there a typo there or? We observed some arithmetical error. In the last quarter, we made some arithmetical error. We have just corrected it. Okay, because even Q1 has a very higher share of international revenue, so maybe if you can provide that clarification. See, yeah, that's what, Q1 and Q2, there was an arithmetical error. The base number has been corrected now, and that's the reason. The previous years were correct. Okay. Fine, Maulik, I'll get the numbers from you. Yeah, I'll get the numbers from you. Thank you so much. Sure. Thank you. Thank you. The next question is from the line of Jaymin from Ardeko Asset Management. Please go ahead. Yeah, I heard. Thanks for taking my question. When you say your European demand piece, how do you, I mean, how do you currently inquire partner in European VM? And color of RFQ advancing to all the I'm sorry to interrupt. Your voice is not audible properly. Hello. Can you hear me now? Yes, sir. Yeah, sir. Just, just wanted to understand on the European, on demand front, any new program for the RFQ advancing towards the prototype or the validation stage, or any new program wins, for the global sourcing mandates, which provides comfort for, I mean, our sustainable double-digit growth for the year term. On Europe. Yeah. So, we from a customer engagement and all those point of view, I mean, we continue to respond to RFQ. But, for us, the RFQ to, you know, realization cycle is pretty long. What we see is, what our customer is asking us to develop, which becomes a more better benchmark, in terms of, you know, how growth is coming, how things look like. And that has remained strong, in spite of, you know, whatever we have seen last 1-2, 1.5 year, that part of it has remained strong. We are engaged on few additional RFQs, additional opportunities, but, they depends on, you know, those projects get decided based on variety of factors, and it's not just in our hand or our competitiveness. It's a macro, big level, big projects, which depends on how our customers are approaching variety of things. But overall, I would say it remains positive, without you know saying that, no, that's not a very accurate indication for us. Got it. Sir, on the sales to your Japanese customer, I mean, it should be segment or a YTD basis. Is it more of, I mean, your slower program ramp from the customer side, or is it like a technical delay from our side? It's a little bit of both. As I was mentioning that there were last quarter, I mentioned that, you know, there were some programs which got delayed at our end. And then some of it was demand, and delay from customer and so on. So it was combination, and we are very hopeful that we'll come back on track. And also adding, Jaimin, there are also the global queues add over there. Because of the global uncertainty, customer was also delaying the their long-term calls of transferring or enhancing their supply chain outside their comfort zone. So we see that the things are settling down in global side. These things will ramp up now. Got it, sir. Got it. And we understand, I mean, you know, Advantek front, I mean, it's gonna take two years to reach an optimum mix. With the help of, I mean, how your scale-up looks like for the next year, I mean, your, for the next year itself. I mean, how should we think about that? I mean, is there any delay on a customer validation front? Anything on that color front? No, things are online, Jaimin, but, considering this is a new plant and at an early stage, give us, quarter or two quarters more, where we will be able to give you better guidelines, considering the customers', acceptance and approval stage over there. But yes, as we said, we see that we are on the same track of achieving the optimum level within two years or around in two years, from our capitalization. And, we see the ramp-up will comes, and it will come faster stage once we get the approvals. Got it, sir. Got it. Yeah, that's it for my turn. Thank you so much. Thanks. Thank you. The next question is from the line of Jason from IDBI Capital. Please go ahead. Yeah, sir, thank you for taking my question. I'm audible, right? Yeah, yeah. Yeah, Jason. Yeah, yeah. Yes, sure. So, so first question just pertains to, you know, when I just take this, the consolidated minus standalone, so you get the subsidiary numbers. So when you look at it, the loss is around INR 157 million. Now, I understand even this quarter, INR 4 crore loss is from the Advantek and INR 4 crore loss is from the overseas subsidiaries. That is how it is panning out. So, sir, just in light of the same, just wanted some color on... 2026 is almost done. So 2027, how should it look when you look at, you know, even you look at Advantek and you look at the overseas subsidiaries, how do you look at it? How does this loss thing should go ahead or some profitability, just some color on these, these two aspects wanted, I wanted from you. Jason, I think some arithmetic I want to clarify before. Mm-hmm. - Vishal or Maulik moves on. So at the subsidiary level, as I said, the loss for nine months is about INR 6 crore. Correct? And Advantek, as you could see- Mm. We have already given the figure that Advantek was around INR 9 crore. That is how you are looking at 15, right? For 9 months. INR 15 crore, right. No, no, no, sir, see, when you look at the complete subsidiary loss, okay, just for... So my number, what I said was INR 157 million was for nine months, okay? So that's a PAT number I'm looking at. Right. 157 loss.... Okay, simple consol minus- Ah, yeah. Huh. Reported. Yeah, yeah. So- Correct. Yeah, yeah, reported PAT. Yeah. So now this, this quarter—now let's not confuse, but I understand it's a combination of Advantek loss and the subsidiaries loss. This is what predominantly is 80, 90% of the thing. Yeah. So just wanted to know how this should go to 2026 and 2027—2026 is almost done, 2027. How do you look at these two factors playing out? How should it—how should we look at it? So, that's what we said. We will give a better- Yes -guidelines on 26 in the, quarter four year-end. But just to- Okay give you some heads up. Yeah Is that, obviously, Advantek has turned positive, and Okay -China continues to grow in the same territory, with a better margin. And Romania- Yeah Our intention is to make it break even, first at EBITDA level, followed by at a profit level. That's, that's the major intent. Okay. Okay. Sure, sir. So I'll look forward to the Q4 guidance. Sure. And, sir, on... In terms of the standalone revenue, we should be able to track, I mean, you did mention standalone engineering revenue. Just would want to know, 10% revenue growth should be a fair assumption for 2026, 2027 going ahead. We, we should be able to do this 10% revenue growth, at least? Jason, same answer. Wait for Q4 end. Yeah, but yeah, I mean, you may. Yeah. Yes, yes, yes, yes. Okay, okay. And, sir, just, in terms of this ramp-up, you mentioned Advantek will take two years, okay, to ramp up. I understand. So peak revenue, again, probably 2x is a fair assumption. So, how much of investments are in Advantek? Just wanted to know, so I mean, just a calculation of peak revenue. On the plant and machinery investment, yes, you can consider 2x. Yeah. 2x. So how much would that be, sir? Huge infrastructure and land and building. Yeah, yeah, correct. Currently, investment is around INR 210 crore+. Okay. I don't have precise numbers on hand. Okay. Majority of that is also infrastructure and land and building. Okay. While machinery is around INR 100+ crore, INR 150 crore, something. Okay, so- INR 150 crore is machinery, that will be 2x. Okay, so we have to take the 2x on the machinery, right? Okay, fine. Right, right, sir? Okay, okay. And the main products are from Advant- Sorry, Jason. We will also have incremental machinery coming up, and that will be still in the pipeline, and we will give that also in guidelines. Sure, sure, sure. Of course, of course. This has to be on the plant and machinery only. So other infrastructure is common infra. Get it, sir. And so the main products from Advantek you have mentioned before, but just wanted to clarify. The bushings, stampings and the large-size bearings, large-sized cages, these are the main products from Advantek. Is that right? You are right. Yeah. The incremental growth and new businesses of these three lines. Right. Sure. Sure, sir. That's, that's all from my side. Thank you. Thank you so much for answering my questions. Thank you. Thank you. The next question is from the line of Saket Kapoor from Kapoor and Company. Please go ahead. Just a follow-up on what the participant just mentioned. Sir, for Advantek, the product profile would be, skewed towards, bushings and large-sized cages? Right. Yes, and stamping a little bit. Okay. Sir, I think for the large-sized cages, you did elaborate earlier about the market, and there were some deterrents which we were trying to resolve. Currently, what's the business environment or the demands pertaining to the large-sized cages? What are the feelers? I think a couple of quarters back, two quarters back, we did mention that, you know, market for industrial products was very sluggish, and that was the reason for very moderate or not much growth in large size. We might have mentioned that. I think we are seeing that turning around, over and above the fact that we are looking at more additional product development and orders for future in this. So, yeah, with those factors are somewhat improving what we had mentioned earlier. Okay. Sir, total investment for Advantek, are we done with the entire CapEx? Also for the commercialization part, what is any closing or capital work in progress? Is there? No, as I just said in the previous question, Saket. I already said in the previous question, Saket, the incremental plant and machinery will continue in Advantek. Considering that, wherever there is a requirement of additional capacity and wherever we see the incremental growth can come, we will continue to have a plant and machinery spending there. Correct, sir. But still, sir, we have something to commercialize. I want to... If you could give the, as on date, how much have we invested, including the land, for this unit? Or if you could give the bifurcation, I'd say. No, to answer your question, yes, there are few work in progress in CapEx side also, including on the building side, there are some other buildings like Admin and others are under capitalization, yet to be capitalized, and some plant and machinery under installation. So around INR 40 crore is the rough number, top of my head. Okay. Sir, what should be the total investment for this unit as a whole? Around- As on date. So it's an ongoing thing, but yes, we expect it to end this year around INR 250+ crore. 250 crore plus. And, and the peak revenue for this also will be 2x or will be different to assume today because of the large size cages and the bushing part. What should be the peak turnover that we may expect or the asset turnover ratio? 2x of the plant and machinery, and but you also have to keep in mind the incremental plant and machinery to be in pipeline. But yes, 2x of the plant and machinery, not of the full CapEx. Okay, sir. Right, sir. Thank you for all the elaborate answers, sir, and all the best to the team. Thank you, sir. Thanks. Thank you. Thank you. you. The next question is from the line of Jason from IDBI Capital. Please go ahead. Yes, sir, thanks for taking my question again. Sir, just one last question. I just wanted to know, sir, in terms of CapEx, what we are guiding for 2026 and 2027 on a consolidated level? Wait, wait for Q4, Jason, same answer. Okay. Okay, sure, sure, sure, sir. Okay, okay. Thank you. Thank you, Jason. As there are no further questions from the participants, I would now hand the conference over to Mr. Vishal for closing comments. Over to you, sir. Thank you. Today I would like to thank you all for, you know, continued confidence and support for Harsha Engineers, and then I wish you all very good evening. Thank you very much. Thank you. Thank you, everyone. Thank you. On behalf of Harsha Engineers International Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.