Ladies and gentlemen, good day and welcome to Jyoti CNC Automation Q3 and nine-month FY 2026 earnings conference call, hosted by Equirus Securities Pvt. Ltd. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. Before we begin, a brief disclaimer: this conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on 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. I now hand the conference over to Mr. Harshit Patel from Equirus Securities. Thank you, and over to you, sir. Thank you. Good evening, everyone. On behalf of Equirus Securities, I welcome you all to the third quarter and nine- month FY 2026 earnings conference call of Jyoti CNC Automation Ltd. We are pleased to have with us management represented by Mr. Parakram G. Jadeja, Chairman and Managing Director of the company. We will have opening remarks from the Jadeja sir, followed by a question-and-answer session. Thank you, and over to you, sir. Thank you, Harshit. Good evening, everyone, and a very warm welcome to our Q3 and nine-month FY 2026 earnings conference call. Along with me, I have a senior management team and SGA, our investor relations advisor. Results and presentation have been uploaded on the stock exchange. I hope everyone has had a chance to go through the same. I'll begin my opening remarks with an overview on the economy front, followed by highlights on the company. India's economy continues to show a strong growth momentum, supported by healthy domestic demand and steady policy reforms that improve competitiveness and boost investors' confidence. The Union Budget 2026-2027 has reinforced this direction by focusing on long-term investment and structural growth. A key highlight of the budget is the continued emphasis on public capital expenditure as a main driver of growth. With an allocation of INR 1,220,000 crore for FY 2027, around 9% higher than the previous year, this sustained a CapEx boost expected to strengthen infrastructure, encourage private investment, and provide long-term visibility for the manufacturing sector. The budget has also announced focus measures across sectors Jyoti CNC is catering to. The launch of India's Semiconductor Mission 2.0 aims to expand domestic semiconductor and equipment manufacturing, along with chip design capabilities which will drive demand for high-precision machining. Electronics manufacturing has been further supported through a INR 40,000 crore outlay under the Electronics Components Manufacturing Scheme, helping scale up EMS and component production. In defense, higher capital allocation to domestic aerospace and defense manufacturing strengthens the push for self-reliance, where precision engineering plays a critical role. Similarly, continued policy support for the automotive and auto component sector through PLI schemes and duty reforms reinforces India's position as a preferred manufacturing hub. On the global front as well, greater clarity around tariffs, supported by a free trade agreement signed with the EU and the U.S., is expected to provide a meaningful boost to our export-oriented end-user industries. This improvement in trade visibility should support demand across global markets and create additional opportunities for companies like ours. Overall, the current environment places both the country and Jyoti CNC in a strong position, driven by a clear and sustained focus on manufacturing. In this context, the role of mother machine manufacturers, companies that build precision machines used to produce other machine tools, becomes especially critical. As manufacturing activity expands across sectors, the demand for reliable, higher-quality CNC machines is expected to rise meaningfully, creating long-term opportunities for players like Jyoti CNC. Now, speaking of Jyoti CNC, as highlighted earlier, the Indian CNC machine tools market continues to be largely served through import, presenting a significant opportunity for domestic players. To strengthen our presence and capitalize on the opportunity, we are undertaking a large capacity expansion in India, increasing our manufacturing capacity from current 6,000 machines to 16,000 machines by September this year. I'm happy to announce that the CapEx is progressing as planned, and we will be able to ramp up sooner than expected on the back of huge industry demand and our products in India and globally. Alongside capacity expansion, we have also made investments in talent development, including upskilling our workforce and setting up an in-house training institute to build up a pipeline of over 1,000 skilled engineers. These initiatives form a critical part of our long-term growth strategy to deliver high-precision machines across diversified sectors and support sustained growth. At the same time, R&D and innovation remain a key strategic priority. We continue to advance our product development efforts through initiatives such as the Huron Control Panel, along with plans to integrate proprietary controllers, drives, and motors. These steps will strengthen our product offering, technology capabilities, and reduce import dependencies over a period. In parallel, we are actively exploring next-generation products for high-precision applications, including semiconductor equipment, which we believe can become a meaningful growth driver for the company in the coming years. In summary, we are expanding capacity, strengthening our talent base, depending on our capabilities, and preparing to serve a much larger and more global customer base. We remain financially disciplined and future-focused, and we are confident in delivering sustainable growth in the years to come. Now, I will share with you the key updates of the company. In November 2025, we expanded our capacities at Huron, a facility in France, almost double in line with our growth plans. This expansion strengthens our manufacturing capabilities and positions us well to meet rising global demand. Huron continues to serve as a key technology hub for the company. With a strong focus on high-end machines catering to global customers, with the increased capacity, we are better equipped to address growing demand from the aerospace sector and expand our global footprint. We have commenced assembly operations at the facility and are seeing a healthy ramp-up with material traction expected to reflect from FY 2027 onward. We are seeing strong traction from the defense sector, both in India and across global markets. We have a healthy order book of aerospace and defense of close to 41% and around INR 1,900 crores, reflecting growing confidence in our capabilities and the increasing demand for high-precision machining solutions in this segment. With the ramp-up of our capacity at Huron, capacity expansion in India coming live in September 2026, and a strong growing order book across sectors, we expect the coming period to be significantly stronger, supported by improved execution, higher deliveries, and sustained demand across key markets. Before I begin my update on the operational and financial performance, I would like to briefly explain the nature of our business and the reason behind our higher inventory days so that everyone has the right context. Ours is a manufacturing business with a long production cycle, and the working capital requirement is largely driven by inventory. We operate across three broad product categories: entry-level machines, which are largely supplied to EMS, automobile, auto component, and general engineering. The manufacturing cycle is around three to six months for mid-range machines to low-level machines. The cycle extends to about nine months. For large and complex machines, the manufacturing cycle can range between 12-18 months. Given this long build cycle, inventory naturally remains on the balance sheet for an extended period. Historically, our inventory days were much higher than the current level. Over the last few quarters, through better planning, execution, and process improvements, we have been optimizing our working capital cycles and seeing positive trends which will reduce and shorten the intensity of working capital requirements. We are on a trajectory of that. Speaking of the financial and operational performance for the quarter and nine-month-ended FY 2026, we reported strong consolidated revenue growth of 28.1% for the quarter, standing at INR 576 crores. In line with our internal expectations, our performance for the nine months was also strong, with consolidated revenue of INR 1,494 crores in nine-month FY 2026 compared to INR 1,242 crores in nine-month FY 2025, reflecting a growth of 20.3%. With a strong order book, stable economic, and geopolitical situations, capacity in place, and execution rigors, we are optimistic about a stronger Q4 in FY 2027. Historically, we have witnessed that Q4 is among the best-performing quarters across the financial year, and we anticipate the trend to continue this year as well. Speaking of segment revenue for nine-month FY 2026, 42% came from aerospace and defense, 28% from auto and auto components, 22% from general engineering, and the remaining 8% from other sectors, including EMS and dies and molds. Our order intake for nine-month FY 2026 stood at INR 1,661 crores. This includes 46% from aerospace and defense, 30% from auto and auto components, and 17% from general engineering. Speaking of our current order book, it remains healthy and well-diversified at INR 4,585 crores, reflecting steady demand and continued customer confidence. Industry-wise, the breakup is as follows: 41% from aerospace and defense, 19% from general engineering, 18% from auto and auto components, 14% from EMS, and the balance from other sectors. Coming to the margins, EBITDA for quarter three FY 2026 stood at INR 155 crores, a growth of 37.3% compared to the same period last year. EBITDA margins were 26.8% compared to 25% in Q3 FY 2025, a growth of 180 basis points year-on-year. EBITDA for nine-month FY 2026 stood at INR 379.4 crores, a growth of 21.1% year-on-year. Profit after tax for Q3 FY 2026 stood at INR 89 crores compared to INR 80 crores in Q3 FY 2025, reflecting a growth of 10.3% for nine-month FY 2026. It grew by 18.5%. Lower growth in PAT is largely attributed to increased finance costs on account of capacity expansion plans. As this capacity is coming live and will start contributing to revenue and profitability, we will see interest burden being absorbed and reduction in debt, which will enhance the overall profitability significantly. As we enter FY 2027, Jyoti CNC is well-positioned with stronger order book visibility and key capacity expansion, a project nearing commissioning. With sustained demand across sectors and improving execution, we remain confident in our growth outlook. We look ahead with optimism supported by our manufacturing scale, technology focus, and long-term commitment to value creation. We may now open the floor for questions and answers. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aniket Jain from YES Securities. Please go ahead. Good evening, sir. Congratulations on posting a really good set of numbers. So my first question is on the India-E.U. as well as U.S. trade deal. So I think India is reducing the tariffs, at least for the European Union, from probably 18%-20% to near zero now, while the E.U.'s tariffs are already in probably low single digit. So are we anticipating any kind of competition from the European Union suppliers? What are your views on the E.U. as well as the U.S. trade deal? So thank you, Aniket. Basically, I'll let you know that in machine duty today, the machines are coming from the EU. Its duty was only 7.5%. And all these machines, customers were importing against the exports license there. So almost every customer today, what the machines are coming from Europe and the USA, machine tool industries are almost at zero duty there. So there is no significant change in terms of competition over there. Rather, we are feeling a little bit better there now because all our import content, like we were importing the controller from Siemens, Germany, and all, our duty was 7.5%. This is going to be zero for us. So basically, that will be a cost advantage that is going to come to us. So we are looking very happily to see this deal there, basically. Understood, sir. And sir, for the U.S., I think we had plans to set up a sales office there. So is there any progress on that? Yeah. Yeah. Thank you, Aniket. Basically, we were just looking at the appropriate time. So let's say the last two to three months, we already progressed all the company registration legalities and all is over now. And within one quarter now, we are, let's say, appointing all of our sales teams and our tech centers and all. Hopefully, this operation will start within the next two to three months. Very aggressively, we are going ahead in the U.S. there. Understood, sir. Sorry, if I can squeeze in one more. So we are nearing production. So basically, we are nearing the capacity expansion for our Rajkot facility. But we are yet to receive any material orders for EMS. So I just wanted to check if we are anticipating any kind of orders during this quarter or maybe in Q1 of next year. So that our capacity, as when it comes online, we have ready orders in hand so that it is optimum utilization. So what are your thoughts on orders as well as? Yeah. Yeah. Yeah, Aniket. Everyone is looking to answer this. Basically, we are fully prepared. Even our capacity is also coming up. And we are fully booked with the order book back to back to them. And right now, we are working with many more suppliers, many more manufacturers, and approving their process and all. Basically, all this, the future customers, they also are expanding their capacity. They are all on execution level there. Once their plants and things are ready, I think they need the further machines and all. And we are very much hopeful to get the few orders in the coming quarters there. So basically, in Q4. So this quarter, maybe in Q1. Maybe. Maybe on Q1 there. Maybe on Q1 there. Thank you so much for answering the question, sir. All the best. I'll get back into the queue. Thank you. Thank you, sir. The next question is from the line of Yash Patel from Kotak AMC. Please go ahead. Hello, sir. Hi, Yash. Sir, I wanted to ask you about the cash flow situation this quarter. Can you throw some light on what were the cash flows this quarter? Yes. We are on, let's say, the end of the year, what we are discussing in the past also. So we are on a very positive trajectory on the cash flow side there. So we are moving ahead, very positive cash flow in a direction in Q4 there. You saw that in quarter two, on a half-yearly, we were at break-even level. Let's say it was positive there. Similarly, we are at a similar level. And we are hopeful that the last quarter is always to be a better quarter for us. So we are looking very positive cash flow over here. Okay, sir. Thank you. Thank you. Thank you, sir. The next question is from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please go ahead. Yes, sir. Thank you for the opportunity. I have listened to your initial commentary on the industry, and we all understand the industry is a very strong outlook in terms of growth. But when I look at, sir, our order book position, especially this year compared to the last year's performance, last year at 25, we started an order book of INR 34 crores-INR 38 crores and ended up at INR 43 crores-INR 46 crores, 26.4% growth. Whereas in this YTD basis, in this particular financial year, order book growth is only 5.5%. So order book growth has disappointed materially. So can you make a detailed comment on why the order book growth is not happening? And what is our current capacity utilization in the business? So Manishji, thank you very much. See, basically, now today, we have reached the order book is almost one and a half to two years. These industries are not ready to listen to us for the longer delivery period. So there is not any you are able to see that numbers are growing higher there. Let's say this year, our capacity utilization has touched almost 90% now. Once our new capacity comes in the picture and we deliver the old order book there, we will see the traction to be more over there today. And we will build a new order book on a bulky order book on that, then after only that, once the capacity expansions are going on. So today, let's say once it is on there, today, we are at almost INR 4,600 crores. It's a very heavy order book. No more customers are ready to wait more than 18 months delivery commitment there. Basically, sir, because of supply costs on our end, we are not taking the new order or customers are not placing new orders to us till our new capacity comes on stream. That is the way I should understand it? Absolutely. Absolutely. Absolutely. Because if I get any new orders from very bulk orders and all, my delivery period is going to be more than 18 months there. No customers are willing to wait for two to three years there. So 4,000, let's say if you look at that, an 18-month order book is a very hefty order book for our industries there. Understood, sir. The second question on our CapEx plan on the new capacity, I believe we have taken a loan of 300 term loan of INR 300 crore from Union Bank of India. So how much do we use it for this capacity expansion program and how much do we need to spend more term loans? So basically, this year, you know that we have earlier announced that we are going to do INR 400 crore-INR 450 crore CapEx. And we are behind that very aggressively to finish as early as possible because today, our growth has been constrained based on the capacity today now. So we have used almost INR 200+ crore from Union Bank. And we will use this financial year aggressively as soon as possible to finish the CapEx over there. Right. And the last question on the supply chain situation because a lot of components we import from Japan. So how is the supply chain situation? Is it stable? Is it volatile? Or currency impact? Can you talk about that thing? That will be my last question, sir. Thank you. Today, our supply chain is very stable in terms of internationally. Japan and Germany are well supply chained. There are not many issues over there. It's a very stable supply chain. We are seeing that. All right, sir. Thank you very much. Answered all my questions. Thank you. All the very best for the coming quarter. Thank you. Thank you very much. Thank you, sir. The next question is from the line of Balasubramanian from Arihant Capital. Please go ahead. Good evening, sir. Thank you so much for the opportunities. Sir, we are planning to develop proprietary controllers, drives, and motors under the PLI. We are going to see 4%-5% of gross margins. I just want to understand these proprietary controllers, it's meaning we are going to place CNC controllers like Fanuc and Siemens, which is widely used in the industry. I think we are taking with HMI as a front-end HMI. Moving to full-stack controllers involves decades of cumulative software stabilities and servo tuning expertise. I just want to understand beyond prototype, what specific milestones we are planning to achieve under the PLI schemes, whether we are developing entirely to use Fanuc or Siemens, and how it will be reliable compared to those softwares, and if we are able to make it reduce royalty or import cost at the component levels. If you share more details about the controller part? Thank you, Bala. See, particularly on the journey of Atmanirbhar Bharat, there is a background noise coming. Please ask someone to mute. Bala, sir, can you mute yourself? Yes, sir. Yes, sir. Yeah, yeah. Thank you, sir. Yeah. So basically, for this journey of CNC controller development and Atmanirbhar Bharat over here, see, in decades, this Japanese and German manufacturer has developed this product. And they have made mastery. And let's say today, they are driving the world, the motion control over here. Our journey is starting now. But we have now experience of our now Jyoti has completed almost 30 years +. And Huron, we have 190 years+ experienced people available there. So we have a very in terms of drive tunings and fine-tuning the parameters and all on the control design sides, we have very experienced, knowledgeable people available. Plus, in our country today, very youngsters, the new people and all our institutes like IITs and the CMTI and all, all these people together, we are quite confident that we are able to manufacture, design, develop, manufacture reliable products, not only the reliable products in terms of a technological forefront over there. So let's say today, any new technology commerce coming, they will always be one step ahead in terms of more advancement because those guys are not able to change the platform very easily once the product has been developed. So we are very much confident in terms of that and looking forward to developing one of the best controllers on this earth there. Okay, sir. I think I have given you the one part of that. What was your next question inside that? Sir, if you could explain the PLI scheme for proprietary controllers, drives, and motors. So basically, the Electronics Components Manufacturing Scheme, what you have already, the government has expanded the budget also from INR 20,000 crore to INR 40,000 crore. So we are eligible over here to be on a capital subsidy over there. And there is a specific mark out there for capital subsidy. The amount that has been disbursed by, let's say, been granted by the central government, the same amount will be in the Gujarat government also. So we are expecting to be a very large number of this scheme advantage going to be received to manufacturing these controllers, drives, and motors, and sensors there. Okay, sir. Sir, another part, 4%-5% gross expansion, it's entirely dependent on replacing Fanuc or Siemens controllers entirely, or it's reducing royalty or import cost at the component level. Just a follow-up. Basically, these are the very high-value import items. Particularly, on high-end machines, the cost of these controllers is very high there. Definitely, we are able and once we are manufacturing in India and now, all electronics components manufacturing ecosystem also has been developing so nicely in India. Even the microchips and all are also going to be available, made in India chips only. We are no more dependent in the future on that. Our cost controls will be very much in our hands there. Okay, sir. Sir, my last question, we are designing products for semiconductor manufacturing machine builders. I think it requires extreme precision, even nanometer range. I just want to understand what kind of market we are targeting. It's majorly for front-end fabrications or back-end OSAT assembly side. If you could add more color on that. So basically, yeah. Thank you, Bala. Basically, in the semiconductor side, you are right there. It's required nano precision. Based on this experience at Huron as well as Jyoti, we are now entering into nano precision over there. We are going to create the infrastructure to produce the nano precision over there. And particularly, we are targeting equipment to build semiconductor chips there. So we are designing and developing many different processes from casting, foundry, to inspection units, and many, many more equipment are there. Around 8-10 different technologies we are developing over here in the equipment side to serve our Semiconductor Mission 2.0 there. Got it, sir. Thank you. Thank you, sir. The next question is from the line of Kamlesh Bagmar from Lotus Asset Managers. Please go ahead. Yeah. Thanks for the opportunity. Sir, just one question on the part of, let's say, if we deduct standalone from consolidated. So if I see the revenue, so it is down 7% or 8% year-over-year. So it may be because of a ramp-up in Huron. So can you highlight, let's say, because on a consolidated basis, our margins are looking lower or the growth in EBITDA is looking much lower, while on the standalone, it is looking very strong. So because on standalone, we have done INR 165 crore of EBITDA, while on consolidated basis, it is INR 155 crore. It may be because of a ramp-up in the expenses at the Huron operations, while the revenue has not reflected yet. So can you share some highlight or insight into the Huron operations and the gap between the earnings? Already. Already, what you are saying is absolutely right. You answered yourself only, Kamleshbhai. Definitely, the revenue has not come over here. The cost has been incurred. Now, with our new facility coming on the pictures, we have added on around 27 more people in manufacturing in France to ramp up our production furthermore now there. Even in terms of inventory building up, also, we have started very aggressively and supplied material from Jyoti to there. We started all floors and everything like that. So you will see these very normalized things number-wise in the next year. Quarter-on-quarter, you will see more and more Huron numbers coming very positively on the growth side there. Once the growth we will be able to execute there, all these costs will be absorbed. You will see the EBITDA level will increase 1 + 1 like that. Okay. Thanks, sir. And sir, if I see margins, if I just do the math, EBITDA per machine, let's say it is roughly around INR 10 lakh in these nine months. So going forward, as our education improves and the new capacity comes in Huron, further complements the expansion in the growth, so where do we see our margins? Let's say, do we see a significant jump in the margins because the scale and large capacity expansion comes into play? So that would get absorbed over a larger base in terms of fixed costs. So where do we see our margins? Because in the industry, there is some concern that the margins are not there because year-over-year, our margins are at INR 10 lakh, which was INR 11.5 lakh a year back on a nine-month basis. Thank you. Kamleshbhai, I'm answering to you on a consecutive last six calls on the same question. My answer is the same. Let's say we are delivering, we are committed, and we are seeing that there is no margin pressure we are seeing at a 25% of EBITDA. If someone, let's say, if it is increasing, it is okay. We are not seeing any pressure below that. We are fully committed in the next coming two years. The way we have an order book with us, we are very much sure that our margin parameters will be maintained very strongly for the next coming two years. That's the visibility we have today there. Great, sir. And sir, you have highlighted in your presentation with regard to the semiconductors. So are we catering to the semiconductor sector as of now, or we are developing the machines to cater to that? We are developing the technology today. Once the technology, we will reach out and reach out to that same level of requirement, then we will launch our product there. How much time lag could be there, let's say, from the current date or what time period we would be able to have the product? I think we are seeing that in the next two years. Definitely, we will come with the commercial product to be launched there. And lastly, sir, can you give the breakup of machines, let's say, entry-level, mid-level, high-end, and the commensurate revenue to those machines? Yeah. So let's say quarter three, the entry-level machines are 1,207 at a value of INR 247 crores. The average is INR 20.46 lakhs. Mid-level, we have 128 machines. And value is INR 83 crores. Average is coming to 64.84. Around 23 machines at a value of INR 221 crores. The average is coming to INR 9.6 crores. So the total number of machines is 1,358. And the average is coming to 40.5. Great, sir. This is okay, Kamleshbhai? Yeah. Thanks a lot, sir. Thank you. Thank you. Thank you, sir. The next question is from the line of Shrenik Mehta from Indo-Alp Wealth India Limited. Please go ahead. Hello, sir. I had a couple of questions. One, I wanted to ask you, you had almost INR 4,600 crore of order book. What is the advance that we take when we do this order book? So let me tell you, while we take any entry-level product, okay, and in entry-level, we have a common, let's say, around 5% is a minimum advance to be with us there. And while the high-end machines, okay, while high-end machines for exports and all, so there, we are able to get a milestone payment also. And we are getting around 10%-15% advance. But in government orders, let's say we have many government defense orders, there, we are not getting the advance there. Government doesn't give the advance there. Yeah. Okay. Because this will be always your key concern when it comes to the operating cash flow. As you are seeing the trend, you are making a lot of net profit or the operating profit, but your net cash from the operating activities has been negative. There is a big difference. On one side, you earn almost INR 500 crore. On the other side, you have a negative INR 100 crore net cash from operating activities. Going forward with the expansion of the capacity, your requirements of the inventory will remain quite high even in the next few quarters. I don't know if you have some idea about when you expect this cash flow from operating activities to be in line with the operating profit that you make. Yeah. So already in my first question, I answered to Aniket there. My answer is the same that you will see the things see that we are on a growth trajectory. One side, we are capacity expanding. Second side, we are expanding. But our overall inventory days, we are reducing from very large to that. Once the scale-up has reached on an economic scale, has reached that, our inventory days also will reduce that. So you will see quarter-on-quarter very significant improvement from the next year. Even you will look at that end of the year, you will see positive operating cash flows to be there. Okay. We have very much worked on that. We are on line with them. Okay. For your French Huron capacity expansion, which has happened sometime in November, when can we expect the sales to start showing in our quarter-over-quarter results? So the growth we are going to see from first quarter onwards because there is a manufacturing time, manufacturing time for the machine is longer there. So we will see the good numbers. The first time, we will see the numbers. You will see the growth trajectory from quarter one onwards there. Okay. Thank you so much. Thank you. Thank you, sir. The next question is from the line of Jenish Karia from Union AMC. Please go ahead. Yes, sir. Thank you for the opportunity. Good evening to everyone. Considering that the private capex will pick up going forward, should we see a growth accelerating? And can we guide for a 25%-30% growth in FY 2027 and northward of 30% in FY 2028? Yes, absolutely. FY 2027, you can consider the same numbers, 2027 as well as 2028. Understood. And you mentioned in your opening remarks that aerospace, defense, and auto ancillaries are some of the sectors you are seeing incremental growth coming from an order book building up. But apart from that, are there any specific sectors you would highlight both on India and global perspective where the growth you see accelerating not in the current order book but in the upcoming order book? So basically, the entire manufacturing is growing. I'm always very much difficult while I'm presenting numbers to you to combine the general engineering and auto and all like that, okay? So many manufacturing sectors are growing: oils, pumps, domestic, and every area. Today, I have a 14,000-plus customer base in India. We are consolidating and bringing this number into four sectors front of you there, basically. It's exploding completely on manufacturing. If you look at that, the Viksit Bharat India's target is to be a $30 trillion economy and 25% of manufacturing. 25% of manufacturing, today, we are at 13% and growing this economy at 6%-8% in between. You can understand every sector is going to grow there, every sector. Railway, apart from what we are not discussing over here, we are seeing very traction on the railway. The railway component manufacturing is increasing. We are supplying many machines to them. This falls under a category we call general engineering. If you see that every quarter-on-quarter, our general engineering baskets are increasing there. Understood, sir. Just one last thing. What would be the revenue mix from exports currently? And do we see that changing, materially improving on the export side going forward, or will we be majorly focusing on the domestic growth story? So Jenishbhai, we are very much focused to maintain around 35%-40% is to be exports and 60%-65% to be domestic. And this is in line. We are looking for the next couple of years, it is going to be maintained similarly like this. Perfect, sir. Thank you. Thank you for the opportunity. All the best for the future. Thank you. Thank you. Thank you, sir. The next question is from the line of Aniket Jain from YES Securities. Please go ahead. Thank you for taking my question again. So I had two more questions. So number one is on the material cost inflation. So I believe there is probably 20%-30% of your total costs could be coming from the raw materials, maybe steel and aluminum, copper. So are we hedging those? How are we protecting our margins? Is there any price escalation clause included in the contract? Aniket Jain, we are in an absolutely natural hedging scenario. See, every order is a fixed order. We are not having a long-term contract to repeat the same price to give the next machines to those customers there. And you know that our inventory cycles are almost 200-240 days of our manufacturing. Whenever there's commodity prices plus and minuses, okay, we are transferring on the same next month to the new customers. And we are able to balance these things there. Got it, sir. And probably one more on Huron. So I did some reverse calculation. I think one more participant asked a question. So on Huron, what are the revenues? Because on my numbers, I think it is coming between INR 45 crores-INR 50 crores versus probably around INR 60 crores in the last quarter. So why is there a decline on Huron? No, it's not decline. I'll tell you one thing. It's because of a consol level. I told you that we are now increasing the new inventories and everything there. So there is a in the consol level, there are more materials being dispatched from Jyoti to there. So in the console, it has been reduced there, basically. Otherwise, right now, there is almost it is a little bit higher than the quarter two numbers to quarter three numbers there. By any chance, are you able to share the number? Not sure if you're comfortable doing that. But what is the Huron's revenue, and how much are we sending from Jyoti to Huron? Yeah, absolutely. I'll just find out. Not in front of me there. I'm right now in Huron right now. Awesome. Yeah. Okay. I'll share with you the detail there. Sure, sir. And probably last one. So our gross margins increased to 57% now. So what kind of margins are we making on the high-end machines? And probably, is there any increase in the margins for low-end, mid-end machines as well? And are we able to sustain these kinds of margins, or is there a one-off or probably a temporary situation, although it has been? See, basically, Aniket bhai, we are always working more and more to be our value addition program, okay? Based on this, our complete back-end manufacturing cycle and whatever the critical sub-assemblies and all, we were importing. We are adding more and more. Even our local entry-level product, also, we are expanding the margin. Of course, our margins are much better on the high-end machines. And we are executing like that. In between, I'll tell you the FY, this is our quarter three. In Huron, my sales are INR 80 crore, not INR 40 crore-INR 45 crore. Okay. Huron is INR 80 crore, okay? Yeah, yeah. And then total together in three months is close to INR 222 crore in nine months there. Okay, okay. So how much is then out of INR 80 crore? So probably INR 30 crore-INR 35 crore is being exported from Jyoti to Huron. Am I correct in my understanding? Yeah, yeah. So basically, at consol level, let's say whatever the manufacturing is going to increase there, the 70% goods are going from here to there. Okay? So if you look at that this year, we are close to INR 85 crores' worth of material has already been supplied to them. Okay? And that's how we are going to see the future expansion growth there, okay? Right now, it is affecting us. In the consol level, it has been removed, okay? And once it will be executed from Huron, that number will come in the picture there. Got it, sir. Very clear. Thank you so much for taking my question. Thank you, sir. The next question is from the line of Keshav Bharadia from Wallfort Financial. Please go ahead. Hi, sir. Congratulations on a great set of numbers. So just one question I had. You mentioned that we were trying to get our working capital cycle more in control by various efforts that we're taking. So could you talk a little bit about how we're trying to get those inventory days down and optimize working capital? That is first. And so second, we've seen a lot of tensions between the EU and U.S. And that has led to the new uptick in defense spending globally. So is there anything that we are looking at inorganically to kind of increase our wallet share with European customers or get access to newer customers to kind of capitalize on that opportunity? Thank you, Keshav. Basically, about the inventory optimizations, see, Jyoti is having more than 200+ product variants. In the last three years, we have reached out to almost 2.5x-3x on similar SKUs. So based on these SKUs, our optimizations are coming more and more. Scale will increase. Furthermore, optimization will come on the same set of SKUs. We are delivering more. So my inventory is becoming optimized there. That's one. Second, now in a new plan, we are doing a lot of automations over there, okay? Those are our general. Some of the manufacturing processes were manual. That's where putting into very sophisticated automations is going to be in a place to be there. So we are seeing further optimizations are going to be seen over there in terms of flexibility on manufacturing, easy setup change, and everything like that. That's the one part. That's how we are looking to be growing forward. Going forward, we are looking to be more and more optimizations on there. Your second question about the EU and this area, yes, there is a lot of now, after the EU deal, we are seeing a lot of already, delegations have came. I met many people over there and all. We are seeing that more and more investments are going to happen in Europe there. And particularly, Germany has taken a lead in terms of defense manufacturing. They are going to spend more than $500 billion. And the rest of all the other people together, they will invest close to $1 trillion in the coming days. And already, our salespeople are working with them very closely. We are seeing that aerospace defense as well as very high-precision manufacturing in the EU zone is increasing dramatically there. Got it, sir. Wish you all the best. Apart from that, I remember just now, apart from that, I'd like to tell you one thing more that now, we started our China operations also there. We are going furthermore on China with our sales activity there. And all these geopolitical situations, every country has started investing there. So in this quarter, we got good numbers, orders from China as well there. Got it, sir. That's very helpful. So sir, as part of our efforts to get more automation in the general manufacturing processes of the new plant, do we expect that to kind of help margins more from the 26%-27% level we are at right now once that? I think here, I'm always giving one simple answer, okay? So yeah, there are possibilities there. We will improve some margin. But I would like to be very, let's say, conservative over here. And I would not like to guide you from 25%-30%, okay? We'll be in a range in between 25%-27%. Already, we are one of the best industries we are serving over here there. Great, sir. Thank you so much, sir. Wish you all the best for the future. Thank you. Thank you. Thank you. Thank you, sir. The next question is from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please go ahead. Sir, I have only one question. Of the total inventory which we have, what is the breakdown of RM versus WIP as of 31st December, 2025? One second. So I think I have given numbers on a half-yearly. I need to take from this number because I'm sitting in France right now. I can send you the details. Yeah. All right. I connect to your offices. Thank you. Yeah, definitely. We'll send you there. Thank you, sir. Ladies and gentlemen, due to time constraints, we'll take this as a last question for today. I would now like to hand the conference over to management for closing comments. Thank you all 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 developments in the company. For any further information or queries, please feel free to reach out to us or SGA, our investor relations advisor. Thank you very much to all of you there. Thank you, sir. On behalf of Equirus Securities Private Limited, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.