Ladies and gentlemen, good day and welcome to Jyoti CNC Automation Q1 FY 2026 earnings conference call hosted by Equirus Securities Pvt. Ltd. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company. As of the date of this call, these statements do not guarantee the future performance of the company and may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing *0 on the touch-tone phone. Please note that this conference is recorded. I now hand the conference over to Mr. Harshit Patel from Equirus Securities. Thank you and over to you. Thank you. Good evening, everyone. On behalf of Equirus Securities, I welcome you all to the first quarter FY 2026 earnings call of Jyoti CNC Automation. We are pleased to have with us Mr. Parakramsinh Jadeja, Chairman and Managing Director of the company. We will have opening remarks from Jadeja, sir, followed by a Q&A session. Thank you and over to you, sir. Thank you, Harshit. Good evening, everyone, and a very welcome to our first quarter FY 2026 earnings conference call. Along with me, I have a senior management team and SGA, our investor relation advisors. Results and presentations have been uploaded on the stock exchange. I hope everyone has had a chance to go through the same. I will begin my remarks with a brief update on the economy, followed by key operational and financial highlights for the first quarter of FY 2026. The global economy is going through a tough time. Many developed countries are still dealing with high inflation and slow growth. There is also uncertainty due to new tariffs and trade-related issues. But India continues to stand out. Our economy is expected to grow at 6.4% in both FY 2025 and 2026, which makes us one of the fastest-growing economies in the world. One positive sign is the manufacturing PMI, which measures how fast the manufacturing sector is growing. In July 2025, it stood at 59.1. Anything above 50 means the sector is expanding, and India has been consistently above that mark. This shows that India is becoming a strong base and a manufacturing hub for global economies. While India's overall outlook is strong, we need to keep a close eye on the geopolitical situation and ongoing tariff-related situation. Since we have a manufacturing presence outside of India, we will be in a better position to navigate the situation. However, it is still evolving and needs close monitoring. Now, let me talk about Jyoti CNC. We are one of the top 10 CNC machine manufacturers in the world, with manufacturing facilities in Rajkot, in France, with an annual capacity for manufacturing of over 6,000 machines. With over decades of experience in R&D, we have been able to develop world-class machine manufacturing capabilities, which is at par with the global standards. We at Jyoti are proud to play a key role in supporting India's vision of becoming a global manufacturing hub. With our strong manufacturing capabilities and world-class infrastructure, we are well-equipped to meet the growing needs of the industry. Our machines are used across a wide range of sectors, including aerospace, defense, automotive, electronics, general engineering, and many more, showcasing our ability to cater to diversified applications. Our partnership with Huron, a global leader in high-precision machining, has further strengthened our technological edge and helped us expand our footprint across international markets. We continue to see a steady demand for our product, both in India and globally, driven by a focus on quality, innovation, and timely delivery. Over the period, we have been able to penetrate into wide industries, including high-growth industries such as aerospace, defense, and EMS. We have been able to acquire customers with high repute and have been able to add a valuable share among the marquee, domestic, and global clients. We remain positive on our end-user industry growth, and with our expertise in machine manufacturing and strong relationships across customers, we are optimistic of growing our revenues and profits going forward. As we look forward, we remain committed to investing in new technologies, building a strong customer relationship, and supporting the growth of India's manufacturing sector. Speaking of a few specific highlights which I want to share, in July 2025, our board approved the purchase of 20 acres of land in Tumakuru Machine Tool Park in Karnataka. This is part of our long-term growth plan. The idea is to set up support centers, technological centers, and a warehouse closer to our customers, especially those in Electronic Manufacturing Services called the EMS sector, which is mainly based in southern India. The strategy is to move closer to the customer cluster and diversify our manufacturing presence. Further opportunities in the EMS segment are promising. We are in active talks with multiple customers, and the initial assessment looks very promising. We are still in the early evolution stage and will be able to share more insights once we form some decisions. As part of EMS-related PLI, the government has acknowledged that the companies in the entire supply chain of manufacturing will be eligible for PLI. We are in active discussion. Nothing has been finalized yet, but we will definitely submit our proposal and await positive responses there. We are also seeing increased inquiries from our European customers, especially from the defense and the allied sectors. We are hopeful that this can, in turn, convert into large orders going forward. Our current capacity utilization is close to 75%. With current order pipeline and order inquiries, we will need additional capacity to cater to this high-demand scenario. Our plan to increase capacity to 10,000 machines per year is in progress well and will be completed by September 2026. Lastly, I would like to highlight that we continue to follow a careful and disciplined approach when it comes to investing in our future growth. Currently, we are planning to fund all the related organic CapEx by a mix of internal accruals and debt, and we do not envisage any need for external capital. We remain committed to maintaining a healthy financial position while making the right investment to support our long-term strategy. Coming to the financial and operational performance for the first quarter of 2026, we reported a very strong consolidated revenue growth of 13.4%. Our consolidated revenues to date were INR 410 crores in the first quarter of FY 2026, compared to INR 361 crores in the first quarter of FY 2025. Historically, the first quarter tends to be a seasonally soft period for our industry, as order activity is usually lower during this time. Our business typically sees a strong second half of the year, and we expect this trend to continue this year as well. Revenue split across the industries is 30% contribution from aerospace and defense, 36% comes from auto and auto components, 26% contribution from general engineering, and 8% from other sectors. Our first quarter FY 2026 order intake stood at INR 451 crores, which consists of 33% of aerospace and defense, 31% of auto and auto components, 29% of general engineering, and 7% from the others. Our current order book remains healthy and well-diversified, standing at INR 4,412 crores, reflecting a steady growth and customer trust. Industry-wise, order book breakup stands at 39% from aerospace and defense, 19% from general engineering, 17% from auto and auto components, 16% from EMS, and 4% from dies, molds, and rest coming from the other segments. Our gross margin for the first quarter of FY 2026 stood at 55.9% as compared to 53.2% on FY 2025, a growth of 270 basis points over there. EBITDA for the first quarter of FY 2026 stood at INR 100.2 crores, a growth of 6.5%. Our EBITDA margin stood at 24.4% this quarter, as against the 26% in the first quarter of FY 2025. EBITDA was primarily impacted on account of an increase in our employee cost, and the same has been balanced out over the year with an increase in revenue and operating leverage playing out over here. Profit after tax for the first quarter of FY 2026 stood at INR 71.2 crores as compared to INR 50.9 crores in the first quarter of FY 2025, a growth of 40.2%. Our PAT margins for the quarter stood at 17.4% as compared to 14% in the first quarter of FY 2025, a growth of 340 basis points on a year-on-year basis. To conclude, we have made a strong start to FY 2026 backed by solid revenue growth, a healthy order book, and continued demand across the key sectors. Our strong manufacturing basis, focus on technology through our partnership with Huron, and commitment to supporting India's manufacturing vision position as well as for the future. We remain financially disciplined with a balanced approach to investment and are confident of delivering a sustained growth in the coming quarters. We may now open the floor for questions and answers. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Manish Ostwal from Nirmal Bang Securities. Please go ahead. Yes, sir. Thank you for the opportunity. And I have a question on the current quarterly performance compared to the earlier quarter trend. So if I look at the original softness of the quarterly revenue in last year, this quarter, the decline compared to March quarter is slightly higher compared to quarter one of last year. So can you explain anything which has impacted the more moderation of growth in the revenue compared to the seasonal pattern? So basically, Manish ji, I see the first quarter is a little bit always softer after the stretch of the last quarter. And even our reflections also, let's say, once every year all of our customers are closing their financials and audit numbers, and always they are reaching to, again, to budget approvals and getting the funds and everything. So first quarter always in industries are like that, okay? And this is seasonally what we have seen, and things are here. There is no other than any significant change we have been addressed over here. Secondly, sir, the end-user industry where you indicated the order book in terms of end-user industry. So those industries are growing much faster than the current quarter growth rate. So in terms of yearly performance, where the revenue growth we can anticipate on a yearly basis compared to FY 2025, given the very strong order book position we have? So particularly, I'll tell you this aerospace and defense, this area, okay? There we are looking at a very strong wind still there, okay? And in this area, we have a very, let's say, very large machines and everything, that the value addition also is much better there. And we are looking furthermore in the coming next two to three years, this scenario is going to be happening there. Lastly, sir, recently filed filing where you mentioned that the board has approved purchase of 20 acres land in Karnataka. So what kind of CapEx, what size of CapEx we have invested over there? So we have not made any final footprint over there because just it's beginning. So the idea being that we would like to develop a very supportive thing to our customers there, basically. So we will do our tech centers, we will do our demo centers, and we'll do all the supporting, the qualifications, and all to our customers there, okay? So we are going near to the customers for servicing supports, spare parts, and all like that. So we are not looking at large anything, a CapEx kind of things like that. It's just a kind of a sales and service offices and the support systems to be developed over there in the initial stage. And all our customers were demanding, especially on all this electronic manufacturing customers based in our southern area. So there were always the push was that you should come over near to us over here. So we are going there, basically. In terms of CapEx, I'm not able to tell you anything today because it's not in plan. It's not been made out of that. We will see in a couple of quarters, and we'll update you on that, basically. All right, sir. I'll call back with you after the question. Thank you. Thank you. The next question comes from the line of Nidhi Shah from ICICI Securities. Please go ahead. Thank you so much for taking my question. So my first question is, and the other expenses, they have grown reasonably this quarter. So I was just wondering if this is a new level. The other expenses that we can expect, even Q4, other expenses were a little bit on the higher side. And what are the drivers for this level of other expenses? So basically, in other expenses, generally, see the way we have increased our manufacturing capacity, okay? And let's say this quarter, whatever the parts and everything we are manufacturing, we have a long manufacturing cycle there. So in the coming quarter, these are all the components and everything is going to be consumed over there. So this is all our manufacturing activities have been increased. That's why this kind of expenses have been increased there. And so can we expect a similar level of capital involved? And then that will be balanced. It will be sustained into balance there, and it will be equally divided there, basically. And also, the other income this quarter is also quite high. So what is the reason for that? So basically, this is a forex gain that came over here in terms of debtors and receivables there, basically. How much would you be able to quantify the forex gain? So it's INR 16 crore there. And we are in a Eurozone, okay? And euro has been appreciated very largely in the last couple of months. So that has been converted over here, basically. Could you please call out what was your revenues and PAT for Huron for Q1? And also, we've spoken multiple times about how we want to shift most of our high-end manufacturing to Huron so that to gain a better market share in Europe. So what is the progress on that front? So basically, today, whatever this order intake and everything what we are seeing in aerospace and defense, this is the total area we have a client base from the Huron side only, okay? So in terms of in Huron, we have done around INR 70 crores as in revenue this year, compared to the last year was INR 67 crores there, okay? And at PAT level is close to around INR 2 crores there, basically. There we have, let's say, our new facilities are coming in operations from this month end, okay? They have handed over and final everything is going on. So here, already there also we have increased the manpower there a lot because the new facilities are going to start now. So almost in terms of expenses, it's INR 8 crore that's been added on because the people we need to be trained and to be ready with there, okay? So these are the things. Otherwise, there also we have sustainable margins and all are very well there now. So, given that the new factory is going to come up over there, new setup, they're hiring people there, what is the kind of revenue and path that we can expect from Huron in, say, by the end of FY 2026? So in Huron, let's say until today, our capacity has been fully utilized, okay? So this year, and still it is, let's say, four months, it's going to be almost gone, okay? From the fifth month is coming. It means half year is available with us. And whatever the machines we are making there, it's a long-lead manufacturing machine. So we see the revenue growth on a last quarter, even for next year first quarter only to be a large growth we are able to see that thing, okay? All right. Thank you so much for answering my question. Thank you. The next question comes from the line of Adil from ICICI Prudential Life. Please go ahead. Hi. Hi. Good evening, sir. Thank you for taking my question. I have two questions. One is, what percentage of our total sale is exports to U.S.? And the second one is that do you see any impact of this global uncertainty on EMS orders that we can get in India? Those are my two questions. So first of all, in today's revenue, we are not having any export sales to U.S. there, okay? We are mainly on a euro zone there. So U.S., today, we are not directly as an affected any tariff time because we are just going and establishing our more sales networks in coming quarters there, basically, okay? And your second question is about the EMS. See, all the situation is lucid. Today, all our customers are basically going on a very hefty growth levels and all, and manufacturing is going to be in the coming times, all electronic manufacturing is going to grow furthermore. We are not seeing any adverse effect on the investment cycles, and we are not feeling anything over that to be stopped in India today over here. In fact, there are many more customers coming in India that I have covered in my initial remarks. So we are seeing much more opportunities on this sector because this is just a beginning over here there. Understood, sir. Thank you so much for taking my question, and all the best. Thank you. Thank you. The next question comes from the line of Ishita Lodha from SVAN Investments. Please go ahead. Yes, Ishita, your line has been unmuted. You can go ahead. Can you hear me? Sorry to interrupt. You are not audible. Your voice is breaking. Okay. Can you hear me now? No, we are unable to hear you. Hello. Hello. Am I audible? Yeah. Yes, you are audible. For the land acquisition in Karnataka, how much have we spent only for the land? It's close to INR 20 crore. It's a government land. The government has allotted this land, and it's in a specific machine tool park, okay? The Indian government has made this special park, and it's been developed very specific machine tool activities over there, basically. So it's in park, and it's INR 20 crore there. Okay. Yeah. Yeah. Thank you. Thank you. The next question comes from the line of Aniket Jain from YES Securities. Please go ahead. Sir, I wanted to take that you have quite a good margin increment this year, one of the best over the last few quarters. So do you expect to maintain? I'm talking about the gross margins. So do you think we'll be able to maintain those gross margins? And this time, it did not flow through a bit because of higher employee and other costs, other expenses. So once that normalizes, can we see margins increasing to probably 27%-28%? That is my question number one. Okay. So basically, in terms of a margin, so we are not seeing any pressures because the way we know what is our order book today, we are executing from them. So we know what is the price as the machine has been sold, and we know the today's material cost and all, okay? So today, we are not seeing anything on any cost pressures there. I think we will be maintaining margin growth very well in this year also. Sure. And the second one is, would you be able to provide any guidance, revenue guidance for this year, any growth guidance, or any absolute number that you are targeting for this year? So I'll generally have maintained the momentum. I never made a guidance, but I'll tell you one thing. We will maintain the growth trajectory nicely, and momentums will be maintained there. The way our execution will improve. See, the challenge is part what we are saying is not in business because we are on a huge order book, and still the pipes are coming bigger and bigger, okay? Challenge still is in part of execution because the people, the way we are increasing the team size, people and all. And this is not just commercial manufacturing activities over here. It's a very high precision. Skill base has to be in place first, and that's the always in my call I have maintaining since last four calls that we are working more and more onto that, and based on that, our execution will improve, and we will include more and more growth to be there. In fact, all our order book, we have committed to our customers very on a short times and all, okay? So we also are looking to be a very growth trajectory in coming quarters to be there. Just last one, if I can squeeze in. So due to this execution risk or the execution issues that you're currently going through, are you saying no to any orders, or are you deferring the orders to probably after two years or after two and a half years? So that would be my last. See, basically, we are not doing this kind of a thing, but yes, the customers have not been pleased. Now, if I commit the delivery more than two years, no one's ready to wait for up to two years, basically, okay? So we are also into so right now, whatever the things we are expanding, we are running behind all our, let's say, the CapEx, what we are doing. Every day, we are chasing them and increasing the people and the skill up of the people. Our center of excellence are working fully, and we are focusing on more and more to increase the team size and to better execution over there, basically. Understood, sir. Thank you so much for the answers. Thank you. The next question comes from the line of Mayank Chaturvedi from HSBC Mutual Fund. Please go ahead. Yeah. Hi. Good evening, sir. Hi, Mayank. Sir, just one. Firstly, on the board meeting approval that has come in to acquire entities in USA and China, can you please elaborate more on this? Have you identified any entities, I mean, to which part of the production will it cater to, etc.? Thank you, Mayank. You have read the board notes, so. Yeah. Yeah, Mayank, we took a decision to go to China because China is the world's largest market today, okay? And we are so cost competitive and compete to the global market over there. And in China, Huron has a very long customer base. Basically, all of our government customers are there, okay? And we are now aggressively looking to expand the geography China there. So we took a decision in this board. And in the first phase, we would like to go and sales and services network our own people and all. And the second, there are our existing client as well as this new area where we are entering in electronic manufacturing. The largest consumers are sitting over there, basically, okay? So it's a great opportunity, and all the customers also wanted us to go there. So we are going there. Is there a customer overlap between your EMS customers in India and in China? Yeah. So a similar customer base also there, so we are going there. Okay. Great, sir. Great to hear that. The second, on your existing order book for EMS, when do you expect that to get liquidated? And when do you expect? Yeah. Just now, all the customer client, okay? Their supply chains have been developing in many more plants under construction there, okay? So we have not received the schedule when it is to be happened, but any moment we are looking and seeing their construction activities and all. Hopefully, in the third and fourth quarter, it's going to be a good lifting that is going to happen for there. Okay. Okay, sir. And just last, bookkeeping, like you give every quarter, can you give a breakup of the machine we sold in entry level, mid-level, and high-level, high-end level machine? Yes. So this quarter, we have sold 1,117 machines, okay? And entry-level product is 994 machines, okay? In average of INR 20.52 lakhs, okay? And mid-level is around 104 machines at INR 71 lakhs. And the high-end machine is 19 machines at an average value of INR 5.6 crores. Okay. Okay, sir. Great. Great. Thank you for answering my question. So the last year, last year, first quarter, we sold 788 machines. In terms of numbers, this quarter, we sold 1,117 machines, okay? So this is how total scenarios are here. And I see the average price realization for high-end machine has also gone up significantly, I think. Yes. Basically, these are the long-lead manufacturing machine. So some of the machine, the last year, first quarter, has gone up more. This quarter, two, three machines, let's say, is also making the impact of INR 50 crore-INR 60 crore of revenue, okay? So that will come in the coming quarter then. Okay, sir. Great. So great. Thank you for answering my questions. All the best. Thank you. The next question comes from the line of Pratik Dharamshi from Union Mutual Fund. Please go ahead. C ongratulations, Jadeja, for a good set of numbers. Couple of questions on my side. Thank you. Yeah. Couple of questions. Thank you, Pratik. Yeah. One on margins. Structurally, how should one see your margins evolving over, say, the next two to three years? Considering you mentioned aerospace and defense will take more share of business going ahead, which mainly will be driven by Huron. So how should one structurally look at the margins? Will it hold around this level, or is there scope for improvement over the next two to three years' timeframe? Yeah. So again, in my answer, I've given you in part, in a differently asked this question in the first time. Let's say the people, let's say we have an order book close to if today's run rate, if we see that, is two years, okay? So the margin is clearly visible there. We are not going to down below this, basically. Understood, and the second question I missed out. You mentioned something you would be applying for some PLIs. I missed out. What was it, Jadeja? Yeah. So great, Pratik. Thank you for that. See, now the government has come out with the new scheme. All the supply chain on a PLI has been eligible, okay? And Jyoti has also been identified and, let's say, approved eligible. Let's say we are also eligible to get this PLI scheme. And whatever the CapEx we are doing, okay? And some part of these CapEx, we'll see that how they have been approving and all. So there we have one of the support systems are in a CapEx. They are giving us a 25% of a subsidy, okay, from the central government. And similarly, if central government gives us X, similar amount is given by the Gujarat government there, okay? So it's close to 25% other there. And additionally, whatever the machines and this kind of a thing, so that we are just discussing with the government there and it will not be clarified that how we can be able to get the production linked incentive there. Right now, the scheme is for the 6% on the sales, but how we are going to be eligible and all that is unclear things are there. That's why I've not given the numbers to you there. But yes, we are eligible, and we have approached the government. Very soon, we'll come to know how much we are able to get these support systems over here. Got it. Thanks a lot, and all the best. Thank you. Thank you. The next question comes from the line of Venkat from Mirabilis Investment Trust. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. Venkat Rakesh, this is from Mirabilis. Hi. Yeah. Hi. Sir, I have just one question. Given that we have these capacity constraints and we plan to increase the capacity, how do you usually go about planning of this capacity? In terms of if you were to prioritize this capacity between the sectors, EMS, auto, general engineering, how does that decision basically work out? Is it based on the margin profile of that order or the visibility of that sector or the customer, the bargaining power or the, let's say, the customer concentration within that sector? How do you go about prioritizing these three sectors? Yeah. First of all, let's say your first question about the planning, okay? Generally, we see there is a model mix of a business there, okay? See, the size of the machines has been different in every different segment. In an entry-level product, the machines also go to a size of the machines also goes to aerospace, so there is not much direct connectivity on a capacity planning on a sector-wise there. It's basically a frame size of the machines, basically. What kind of machines we are able to build? What is the frame size available? What is the biggest part we are able to do it? And that's all our planning directions and lead time based on that, basically. All the capacity is based on a smaller machine, medium-sized machine, or a large machine, basically. All these three categories have been distributed over all the manufacturing sectors to be there, okay? That's your first question answer to be there, okay? What was the second? Can you repeat that so I can give you the more better? Yeah. I mean, that's pretty much clear that it's largely differentiated between small, medium, large categories of the size of machines. Yeah. It's an annual of the machine, basically, there. Yeah. Okay. And given the current situation, which sectors then within the three, let's say, you see would be growing faster than the others given the capacity constraint again? So the reason again I have to ask is that how much flexible are you in terms of the delivery timelines of these products within sectors? So which sector would be the most, let's say, flexible if you were to, let's say, delay or postpone that delivery timeline? Today, I have only this by large machines. And particularly, large machines today want the order book we have received and going to receive there and getting more and more inquiries from Europe now today is on a large machine. Large machines, let's say, in terms of today's our plant capacity, it's not interchangeable then. All large parts cannot be produced in a small machine there on that area, okay? So small machines, I can produce in a large assembly area, but large machines, I cannot produce on a smaller machine area. So you can consider there is a large area that we are willing to be constrained to be there. Re st are fungible there, yeah. Okay. Then in that case, how to think about the growth for the, let's say, next two years of small versus medium versus large? So based on this model mix and seeing the scenario, our capacity we are expanding accordingly there, basically, okay? Already is planned out, and we are increasing similar level to be there. Right, sir. But which sector of these three? Which category of these three would be, let's say, the fastest growth and? So, let's say today, what is our 10,000 machine capacity we are expanding, okay? Even the highest growing area we are seeing in coming next two to three years is going to be electronic manufacturing. And even that is more comfortable for us because all EMS and other sectors are very fungible. So we can do with the auto, auto component, general engineering, everywhere the same capacity will be utilized there. So full, these expansions are going to come on an entry and mid-level machine there, basically. Okay. So this 10,000 capacity would largely restrict between medium and small? Yeah. Yeah. Yeah. Okay. And that is a fastest growing area also there. Great, sir. Again, let's say 50/50 broadly or, let's say, 60/40, 60 between small and 40 between medium? So this additional 10,000 machine is going to be dedicated to the entry and mid-level. So before that, let's say while we have made this 6,000 machine capacity, we have almost a large machine capacity we already increased there. And in Huron also, whatever the capacity we are expanding, it is basically for a large machine only there. Got it. Yeah. Thank you. That's it. Thank you. The next question comes from the line of Sandeep Jain from Baroda BNP Paribas Mutual Fund. Please go ahead. The line has been unmuted. Please go ahead with the question. As there is no response from this line, we will move towards the next question. The next question comes from the line of Ashish Kumar from Ampersand Capital Investment Advisors. Please go ahead. Yeah. Thanks for the opportunity. Any kind of color you can give on you have said that H2 will be significantly better than Q1, but Q2, can we see a higher revenue growth compared to what we have seen in Q1? And second question is on EMS. In past few calls, we have mentioned that the supplies will start from, let's say, later part of this year. What's the update on that? And when we start supplying EMS machines, what kind of impact will it have on our margins? Yeah. Those are my questions. So basically, let's say always first half and second half is a 40/60 kind of a thing like that, okay? And Q1 to always Q2 always to be better. Q3 is much better, and 4 is a greater than. That is the way we are going ahead there. So I can say there's only color. More color, I'm not able to tell you there, okay? Regarding this, let's say in EMS, so people have feared that, let's say, EMS as a margin is gross margin is less than competitive area. It is not like that. Overall, our entry-level product and this combination of this is all entry-level product and EMS on a similar level only there. So it is not going to be impacted anything while EMS execution is going to be increased there. It's on a similar set of margins to be there. T hank you. And EMS supplies will start from second half. We are sticking to that, or is there any delay in that? So we are also looking to be eagerly to supply them. So the facility will be ready there. Hopefully, we'll start from a third quarter. We hope if someone will put up early so we can deliver them faster there. Okay. Thanks. Thanks. That's all from my side. Thank you. The next question comes from the line of Sandeep Jain from Baroda BNP Paribas Mutual Fund. Please go ahead. Yeah. Hi, sir. Sorry, I got disconnected last time. Just one question. Hi, sir. Hi, sir. So just one question. I joined late, so if you can clarify that. In Huron, our capacity expansion plan was got delayed in Q4 and all. And it was supposed to get started probably by Q2, if I remember it correctly. So is it online, or there is further delay? How we can look at it? Sandeep Jain, it's online. Just three days back, I come back from there. The facility has been finally handed over to us as a final now our equipment installations and everything is going on. From September onwards, we are starting assemblies over there. Okay. We already move into there in the plant, and all the activities have been started there. There is no delay now. Revenue booking and all those things will start from Q2 or Q3 kind of? No, because you know that manufacturing cycle is longer there, okay? If I start any machine assembly, it is also going to be a longer period there, basically. Got it. Yeah. From September, if you will start assembly and all, okay, so probably by the end of. We will see in the last quarter some colors, but the better is from the. Yeah, yeah, yeah. You know that now, boring. Yes, yes, yes. All the facility in Huron is high-ticket size machinery, right? Yes. All are high-ticket size machinery. High-ticket size machinery. Fine. That's it. That's my question. Thank you. Thank you so much. Thank you. Thank you. The next question comes from the line of Jayesh Shah from OHM Portfolio Equi Research. Please go ahead. Thanks for the opportunity. Sir, I had a question on your overall growth rate. Do I understand correctly that you have a capacity utilization constraint till the new capacities come in? So your growth is basically back-ended, basically from, say, second half of FY 2026 or actually FY27. Because if I annualize your current first quarter growth rate, even on the basis of 40/60 for first half and second half, your FY 2026 revenues will be around close to 2,000 crores, which only gives you 10%-15% growth rate at the top line level for the current year. You are putting me in a difficult situation because I'm not any time to give any forward to you. No, no. I understand, but see, the first quarter. I'll tell you one thing. No, no. A little bit, your calculation is a little bit here to correct. See, already the first quarter growth has been close to 15%. Okay. And always I said there is a second, third, and all will be having a good, and today, our capacity is close to 6,000 machines, okay? Right. And right now, let's say we have, based on this quarter, is 1,100 machines with them. So close to this year, we are expecting to almost 90% utilization. And 90% utilization, you can now make a match and all, so you will reach a nice number there, okay? Okay. Do you have different margins in your these segments like EMS, aero, and defense, or the margins more or less similar? Basically, a gross margin. Yeah. Yeah. In terms of we measure on a gross margin. So in the past also, I have been mentioned many times, maybe you have not been aware, so I'll let you know that. We have an entry-level product, what we call an entry-level product, okay? There we have a gross margin is close to 35%-40% in between there. Then we have a mid-range machine. There we have around 40%-47% of the gross margin there. And then we have the high-end machines, okay? There we have close to 55%-57% over there, okay? Right. Right. Right. Sir, how is the working capital cycle now? So now, let's say last year, we have reached close to 175 days. And this year, we are slightly going to improve from that now, okay? Okay. In my early call, so we said that this year and we are on the way, and nicely, we are on the way. We are going to touch in between 150-160 days over there. I see. I see. Got it, sir. Thank you very much, Christopher. Thank you. Thank you. The next question comes from the line of Kamlesh Bagmar from Lotus Asset Managers. Please go ahead. Yeah. Thanks for the opportunity, sir. If I see last year, we had a bit of a machine of roughly around INR 12 lakh. If I see this quarter, we have done on the gross margin INR 20.5 lakh, which is down 16% year-over-year. Can it be the case that in order to push our volumes, we may take a hit on the margins, and the margins could be much lower, which we were expecting around INR 12 lakh? Just a query on that. Kamlesh Bagmar, you are the only person who is able to reach out to a per machine like that, okay? Basically, margin, I say that as a combined EBITDA level margin, we are going to have close to a—let's say this year in first quarter itself is 24.4%. It's come down 1.5%, and that's only due to the people increase in the last one year, okay? So we are comparing to last year first quarter to this quarter, okay? And almost 15 crore rupees of additional manpower cost we have incurred from last year first quarter to this year first quarter. This is the only difference that has come over here. And that's how we are able to maintain number of machines. Model mix may change, okay? Sometimes we make larger machines with less volume. Sometimes we make more machines with less value, but number of machines to be more. We are on a track to maintain on an EBITDA level, and we will be on that, basically. So I was just referring to the gross margin. So it's down 16% year-over-year in rupee terms. So last year, it was 24.5 lakh, and it is now 20.5 lakh. You are calculating per machine, basically, okay? Yeah. Per machine. Yeah. So basically, the per machines is not in parameters because this quarter, the number of machines we made more, that's why the per machine average is 36.72, okay? So end of the year, we will be having a, let's say if I reach to a INR 50 lakh average, so automatically, it will be set right over there, okay? But sir, do we expect, like I said, last year, it was INR 44.6 lakh. So do we expect. No, it's a some quarter. Let's say in this quarter, what I told you, around two, three machines has been coming on in next quarter more. The value of the machine is very high, so you will see the next quarter maybe or third quarter maybe more jump, okay? Sir, lastly, you had, like I said, you are not giving us a guidance, and you have maintained that for the last many of the concalls. But as you are saying that you will maintain the momentum, and over the last three years, we have grown 35-odd% CAGR. So what do we see? Like I said, would we be able to maintain that particular momentum? So I'm just referring to that particular part. So basically, I said we will maintain the momentum. It means we maintain the momentum. It's very clear. No, but on and there is a great opportunity in front of us. Definitely, we will maintain the momentum. Okay. Lastly, sir, sorry to interrupt. Yeah. Just a follow-up to that. So sir, you have clearly articulated that you are not going to have any external capital. So does it mean that there will not be any fundraising to fund the capital? No, we are not going to come to take any capital on the market in a, let's say, organic growth. What I say is an organic growth, okay? So let's say today, we are growing organically in the next two years. So there is no need of extra fund because our all internal accruals and our cash flows and everything, you will see improving in this coming quarters very nicely. So we are able to fund it very well, our own growth over here and there. Thanks. Fantastic. Thank you. Thank you. The next question comes from the line of Dipesh Kashyap from Invesco. Please go ahead. Yeah. Hi, sir. Thanks for taking my questions. Hi, Dipesh. Yeah. Hi, sir. How are you, sir? Fine. Fine. Sir, I just wanted to understand how to think about the capacity and capacity utilization. So as I understand, we have 6,000 machines capacity right now. So that means 1,500-odd machines per quarter, right? But this quarter, we did around 1,100-odd machines. And you talked about 75%. Yeah. So my question is, you talked about that you have capacity for small, mid, and large machines, which are not fungible. So based on your order book, what kind of capacity utilization can we reach? Because we were already at 90-odd% in the last quarter. Has the order book kind of changed? Because I think you have done more auto and general engineering this quarter. So how should we think about going forward in the remaining nine months? Yes, because nicely, let's say I'll tell you one thing that what I say is that many of the machines, large machines, my manufacturing time is longer, okay? So sometimes it's not falling into a quarter on quarter there, okay? Sometimes, let's say in this month, as June has been not finished, some machines are falling into a July there, okay? So definitely, that kind of things will and let's say some of the large machine manufacturing time is 12-15 months, okay? Correct. Correct. So coming onto direct in production, so it's not directly measurable quarter on quarter there, basically, okay? Okay. So that's the challenge I'm not able to satisfy you there. But no, just want to understand because the year yeah. Sorry. Yeah. End of the year, let's say we will reach 90% utilizations over here. And that's why I'm on track there completely there. Okay. Understood. Understood. And then your capacity, which is going to come on September 26, that is on track right now. That is no further delay that you. Absolutely. There is no delay. We may hope we can do something better, but it's not. And there is no delay at the customer, and also, they are also on track with their. Absolutely. Absolutely. Already, we have taken orders, and we want to execute it there very fast, basically. Understood, sir. Secondly, I think in the board decision, you have taken a decision to set up acquired entities in U.S. and China. So it is just a sales network, or you are going to set up a manufacturing also there? Any thoughts about that? So right now, in a first phase, we are looking to set up the sales and services there, okay? And then if we required to have some more, let's say, the opportunity there and to do some assembly plan over there, the way we have a Huron, okay? All the components have been manufactured, subassembly done over in India, and very near to customers in Europe the way China and the U.S. also. And if the U.S. increase the tariff and the opportunities are people are moving there for manufacturing, we'll do some small assembly and then maintain the good momentum there. Okay. But for sales network, you need not acquire, right? That is like one or two people you can put. No, no, no. We are going to increase only sales network right now. There are not acquisitions or any, not any company. We are not any large CapEx or any kind of anything like that. Understood. And lastly, sir, the total CapEx that we were supposed to do this year and the next year was how much? If you can just remind us. So basically, our CapEx, what we have decided, is close to INR 400 crores-INR 450 crores, okay? INR 450 crores. That's the only right now it's the things are going on there. And this will be done by September of 2026. That is what. September 2026. We will do before that, basically. But the last is till 26. Understood, sir. Thank you, sir. Thank you very much. Thanks. Thank you. Thank you. The next question comes from the line of Priyosh Babaria from Mahindra Manulife Mutual Fund. Please go ahead. Sir, thank you so much for the opportunity. Sir, just wanted to ask on, just like you mentioned, the gross margin with respect to, let's say, based on the level of machines, entry-mid or high, would you be able to throw some color on as per the end-user industry? See, I'll tell you, in terms of entry-level product and, let's say, the value, what I say is entry-level product is up to INR 50 lakhs, okay? So it's not like that as an end-user fit on always in these three categories, some industries like that. Every industries are having all three kind of products are required there, okay? Largely, I can say only one thing. Today, aerospace and defense all are in a high-end machine there. But in aerospace and defense, we have an entry-level product also there as an industry right there, okay? There are some non-complex parts that are being machined, and they use the entry-level product there. Okay? I'm not able to because all the areas are not being specified based on the industry spectrum there. Yeah. Understood. Understood. And I'll tell you one thing that we are so diversified, okay? We have close to now 14,000-plus customer base now, okay? To explain to you all my investors like you and all people, I have put into this main category and combined them, okay? But there are many manufacturing areas, okay? Like today, the railway is one of the biggest growing areas for us, okay? Like a medical implant is going to be one of the biggest areas for us there, okay? So that's all our field under other categories. So there are many of these kind of things are there in subcategories to be there. Perfect. Perfect. And we have also a second question is on we also hired two people, which is basically senior management personnel. This is with respect to U.S. and China only, or something? How do they see that? I'll tell you that the way we are growing, so we are making our management bandwidth is we are increasing, okay? So two years back, we were at less than 1,000 crore company, and we are growing now every year 30%-35%. So let's say strategy and operations are two different areas. So today, everything was in one basket over here. So we are made one vertical on a strategy. So one of the gentlemen we have hired, he looks to take care about the entire strategy there. Another person we have hired into operation, that is on an operation head over here. That's on a manufacturing and looking is to here. And many more people we are still taking in in the near term to expand our management bandwidth over here there. Yeah. Sure, sir. Thank you. Thank you so much for answering all the questions. Best of luck. Thank you. Thank you. Thank you. Ladies and gentlemen, in the interest of time, that was the last question. I now hand the conference over to management for closing comments. Thank you, and over to you, sir. Thank you very much to all of you for joining us today. I hope we have addressed all your questions. We remain committed to keeping the investment community informed with regular updates on any development in the company. For any further information or inquiries, please feel free to reach out to us as well as our SGA, our investor relations advisors. Thank you very much to all of you. Thank you. On behalf of Equirus Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect the line. Thank you.