Ladies and gentlemen, good day, and welcome to the Kaynes Technology India Limited Q4 and full year 2026 earnings conference call hosted by Axis Capital Limited. I now hand the conference over to Mr. Nikhil Kandoi from Axis Capital. Thank you and over to you, sir. Thank you, Sapna. Good morning, everyone. On behalf of Axis Capital, I would like to welcome you all to the Q4 and full year FY 2026 earnings con call of Kaynes Technology India Limited. We have with us management today represented by Mrs. Savitha Ramesh, Chairperson, Mr. Ramesh Kunhikannan, Executive Vice Chairman, Mr. Muthukumar Narayanaswamy, Managing Director. Participants are requested to note that Mr. Jairam Sampath, Whole-Time Director and Chief Financial Officer, will not be available for the call due to health concerns. I'll hand over the floor to the management for the opening remarks. After which we'll open the floor for Q&A. Thank you. Over to you, sir. Good morning, everyone. On behalf of Kaynes Technology team, I would like to welcome everyone to the earnings call of Q4 FY 2026. Mr. Savitha Ramesh, Chairperson of our board, our Managing Director, Mr. Muthukumar Narayanaswamy, Mr. Sumit Verma from our investor relations, and MUFG IR, our investor relations partner, are with us today. Let me begin this with a brief overview of our financial performance for the consolidated year FY 2026 period. Our total revenue stood at INR 3,602.264 crores, reflecting a year-on-year growth of 33.2%. Our EBITDA for the period FY 2026 was INR 5,741 million, registering a growth of 39.8% over the same period last year. This translates into an EBITDA margin of 15.8% for FY 2026. While profit after tax gained in at INR 3,639 million, representing a PAT margin of 10% for year FY 2026. I am also pleased to share that during FY 2026, our Mysore facility achieved a significant milestone by crossing INR 10,000 million in revenue. This achievement reflects not only the scale and maturity that the unit has attained over the years, but also strong customer confidence, execution capability, and manufacturing depth that Kaynes has built across its operations. This quarter and the full year reflect a period of consolidation as we continue to strengthen execution capabilities and prepare the company for the next phase of growth. Over the last few quarters, our focus has remained on driving consistent improvement in top line growth while maintaining healthy bottom line margin. That said, our near term top line performance did not fully meet market expectations, primarily due to. Sorry to interrupt in between, sir. Your voice was a bit little bit. Near term top line performance did not fully meet market expectations, primarily due to geopolitical disruptions, especially the West Asia conflict, which led to last-minute customer deferment, supply chain delays, and project timing shift. Similar to the earlier Russia-Ukraine situation, these events created temporary uncertainty in execution timelines, even though the underlying demand environment remains strong. Since our revenue are closely linked to customer project readiness and approval cycles, some revenue recognition has shifted despite the orders remaining valid and executable. While these factors have had a temporary impact on near-term revenue timing, our strategic direction, customer engagement, and long-term growth roadmap remains firmly aligned and Kaynes has continued to demonstrate resilience and execution strength through this period. The company has not seen a structural deterioration in demand, order book quality, or customer relevance. Our order book remains healthy, diversified, and non-cancellable in nature. We continue to see strong engagement across multiple strategic sectors. Over the last few years, Kaynes has grown rapidly and in a relatively short period of time that growth has created significant expectations from investors, customers, partners, and suppliers. We respect those expectations. We are conscious that when a company scales at the pace we have scaled, execution has to mature equally fast. That journey of institutional strengthening is underway. We remain fully committed to improving consistency, predictability, and delivery against the confidence placed in us. There has been some top management restructuring and role realignment in this phase. Such transactions naturally take some time to settle, particularly in an organization that is expanding across multiple technologies, manufacturing and strategic platform simultaneously. However, these changes are intended to sharpen accountability, deepen execution ownership, and build a resilient operating architecture for the next phase of scale. The leadership team is fully aligned to match with the market expectations. In core EMS as well, our diversification strategy continues to hold strong. As discussed in the earnings call, growth is increasingly broad-based across automotive, EV, industrial, aerospace, and railway-related segments with lower dependence on any single business line. This diversified vertical mix gives us confidence that near-term volatility is one area will not define the long-term trajectory of the company. I am pleased by the trajectory of our two new growth engines in OSAT. Unit 1 is fully operational, and Unit 2 is in commercialization by Q2 2026. This business strengthens gains further by deepening backward integration, adding technology depth, and expanding our presence in high-value manufacturing. In OSAT, the order outlook for both the current year and the medium term remains strong, with revenue visibility of over INR 25,000 million over the next five years. Similarly, in PCB we continue to see a robust and confirmed demand pipeline for the next five years, with several customers already indicating requirement for additional capacity expansion. One important point that deserves acknowledgement is that certain areas where market expectations moved ahead of actual delivery were driven not only by execution pacing, but also by the broader operational complexities associated with managing the core EMS business amid global uncertainties, while simultaneously scaling new strategic platforms such as OSAT and PCB. Going forward, our focus remains clear: improving execution in EMS, moving towards product-driven revenues, ramping up PCB and OSAT with discipline and delivering growth with stronger top line and bottom line growth and capital efficiencies. We value the trust placed in us and recognize that credibility is built through consistent delivery. With that, I would like to hand over the call to Dr. Muthukumar, Managing Director of Kaynes Electronics. Over to you, Muthukumar. Thank you, Mr. Ramesh. Good morning, ladies and gentlemen, thank you for taking time to join with us today. It's privilege to address all of you as we continue our journey of building Kaynes into a globally recognized technology-driven manufacturing enterprise. Under the leadership and vision of our Executive Vice Chairman, Mr. Ramesh Kunhikannan, Kaynes has built a strong foundation of customer trust, execution excellence, and sustainable growth. Over the last few quarters, the company has continued to deliver strong financial and operational performance, supported by a healthy order book, increasing the customer engagements and growing presence across all the high-value sectors. For Q4 FY 2026, our total revenue stood at INR 12,426 million, reflecting a year-on-year growth of 26% for this quarter. You know, on overall for the year, we've grown at 33%. While the operational EBITDA for Q4 2026 came up to INR 1,937 million, translating it in EBITDA margin of 15.6%. Reflecting our continued operational resilience and scale expansion. The profit after tax for the quarter stood at INR 912 million. Our debt-to-equity ratio stood at approximately 0.2 in FY 2026, reflecting a prudent, disciplined capital structure even during the phase of significant expansion. At the same time, earning per share basic has grown from INR 13 in FY 2024 to INR 54.9 in FY 2026, reflecting the company's consistent growth trajectory and long-term value creation for our all stakeholders. We realized our working capital days stood at around 122 days in FY 2026, primarily reflecting the business model requirements of the Smart Meter segment, which has different working capital cycle when compared to the core EMS business. On a like-to-like basis, we would like to bring it to your attention that the core EMS business has demonstrated a significant improvement in the efficiency as committed earlier, with the working capital days reducing from 83 days in FY 2024 to 53 days in FY 2026. We remain focused on further strengthening the operational efficiencies and improving project execution cycles and optimizing working capital as we continue to scale the business. One of the defining milestones in the journey has been the inauguration of the OSAT facility at Sanand by our Honorable Prime Minister, Shri Narendra Modi. This is not only the matter of pride for Kaynes, but also a strong validation of our company's growing role in India's semiconductor and electronics manufacturing ecosystem. What Kaynes has achieved in relatively a short span of time reflects the strength of our vision, execution capability, and the commitment to our teams across the organization. As we enter the next phase of our evolution, our focus will continue to be on strengthening the foundation and scaling the organization with a greater speed, agility, innovation, and operational excellence. Kaynes today stands at a very important inflection point. The industry is evolving rapidly, customer expectations are keeping more demanding, and our global manufacturing landscape is increasingly shifting towards high-value, technology-intensive solutions. The environment of our aspiration is not only to grow in scale, but also significantly enhance quality and value of our business. One of our key strategic priorities in the next few years will be to accelerate the transition from a traditional EMS-led organization to a differentiated ESDM and product-driven enterprise. A critical pillar for this transformation will be centering our new product development capabilities. We believe that innovation-led manufacturing will define our future of the industry, and our goal is to steadily increase the contribution of NPD-led and value-added solutions to nearly 30% of the total revenue in the coming years. To achieve this, we are investing on our engineering capability, customer co-development model, a digital infrastructure, and an R&D infrastructure, and an integrated product realization platform that allows us to engage in the early phases of the customer product development. This will not only improve the margins of the company, but also the customer's confidence and position Kaynes as a strategic technology partner and a original design manufacturing company rather than a manufacturing service provider. At the same time, operational excellence will remain at the core of our execution philosophy. As we scale consistently in quality, delivery, productivity, and reliability becomes even more critical. Our focus will therefore be on building deeply a process-driven organization powered by enterprise-wide digital systems, automation, and data-driven decision-making. Quality, in particular, will be a defining theme for us going forward, as we all know that quality is no more a differentiator. It's a basic ex-expectation. What differentiates the company now is the ability to deliver superior quality consistently with the speed at a competitive cost and reliability, and of course, intelligence. With artificial intelligence coming in, we are introducing artificial intelligence in various processes to make sure that we are ahead of the market. At Kaynes, we are committed to building a culture where quality is embedded into every process, every product, and every decision across the organization. We are also driving the company initiatives with total productive maintenance, advanced quality systems, Industry 4.0 integration on two of our plants as well. They done the kickoff and moving into the next phase of implementation. These initiatives across the organization are not just about improving the manufacturing metrics. These are about creating a culture of ownership, discipline, a continuous improvement, and a customer-centric across all our facilities. As the manufacturing ecosystem become more competitive globally, automation and digital transformation will become essential enablers to long-term competitiveness. Our focus will continue to be on improving productivity, reducing process variability, strengthening supply chain integration, and enhancing execution. Another important strength, Kaynes, is the quality and diversity of experience we continue to bring in our leadership and governing structure. Our board today brings together an expertise across technology, finance, law, engineering, manufacturing, automotive, and electronic and strategic operations. Leaders such as Mr. S.G. Murali, who brings deep financial leadership experience, including a tenure at the Group CFO in TVS Motor Company. Mr. Koshy Alexander, who has extensive experience in finance and public sector electronics, including serving as Director of Finance at Bharat Electronics Limited, bring significant strategic and operational depth in the organization. With Poornima Ranganath, with extensive legal and governance experience, the guiding philosophy principles in people development and in our legal framework. Dr. M. Annadurai, with deep experience from India's space and technology missions, is joining our board, will strengthen us to take it to the next levels of technological upgradation. Mr. Rajesh Mittal, with a strong expertise in engineering and automotive operations is joining our board, and I'm sure that it will strengthen our supply chain capabilities and penetrating and getting into the more into an automotive operation. Their guidance, along with the addition of strong leadership in various functions in the Kaynes continues its journey towards becoming a stronger, design-led, technology-focused and a box build solution company. Most importantly, none of this is possible without our people. At Kaynes, we strongly believe that people define our strength and future of the organization. We continue to invest in leadership development, capability building, and creating opportunities for our team to innovate, grow, and lead. At the same time, we are consciously building a strong pipeline of future leaders who can carry forward their values, culture, and long-term mission of the organization as we continue to scale in the Viksit Bharat era. Our focus remains very clear: a customer focus, innovation and quality, and people. These four pillars continues to guide our Kaynes journey as we build Kaynes into a world-class manufacturing organization that will be the new benchmark for the industry. With this commitment from our teams, the trust from our customers, and strength of our strategic direction, I'm confident that Kaynes will continue to play a defining role in shaping the future of Indian manufacturing in the global stage. With this, I complete my initial remarks. I would like to thank Axis Capital for hosting this earning call. I would also like to thank all the participants for joining us today, I'll hand it over to the Axis Capital and looking forward to answer your queries. Once again, thank you very much for joining, taking time to join this call. Over to you, Axis Capital team. Shall we open the floor for question and answer, sir? Yes, please. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star then one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants, you are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all, you may press star and one to ask a question. We will take the first question from the line of Viral Shah from Enam Holdings. Please go ahead. Yes. Thank you for the opportunity, sir. My first question is on guidance, sir. At the start of the year, sir, we had guided that we are looking to close the year with revenues of INR 4,500 crores, which was subsequently toned down to INR 4,000 crores, and we end the year with close to INR 3,600 crores of revenue, sir. Sir, how should, as investors, we look at this guidance and what is the sanctity of the guidance that we are providing, sir? Because there is a very vast variance between what was expected versus what is delivered, sir. Thank you very much for asking this question. We fully understand and appreciate your question. We did an aggressive top line growth in the year based on the order book. We thought the electrification of the vehicle and of course, the government projects where we are working is going to be at the faster pace. You know, giving a guidance of INR 4,500 crore is almost 55% growth over the previous year. In the third quarter, I think we have toned down to saying about INR 4,000 crore because of the few delays. One of the largest electric vehicle OEM manufacturers has completely dropped by about 90% of their revenue, wherein we were the single supplier which has dropped our numbers. We were quite confident in the last quarter of getting two government orders where the products have been done and the product testings have been approved. It is going to be done, but there is a delayed project. I think these are the two things that has put us. While we have delivered about 33% growth in revenue and 39% growth in the bottom line, we sincerely understand and appreciate that the guidance what we have given, we could not meet. Having said that, I think while we are looking at strengthening our execution capability, agility in manufacturing, and delivering the products on time, there are certain cases where it is beyond our situation where the customers pull and the drive which makes us to hit the numbers. That is one of the reason that why we chose to say this time that we'll be outgrowing the market and we'll be doubling the market growth so that our penetration will be much more. Hope we have answered your question, but we fully understand and we are aware of the question what you're asking and the implications of that. Sir, I appreciate this answer. Sir, 75 days into the quarter, we would be aware of how the quarter build would be looking like. The management comes on the television and gives holds on to the guidance. Additionally, even apart from the P&L side, the guidance was also that we would be just about marginal negative on the OCF side, sir. Sir, both of these guidance, 75 days into the quarter is actually a bit concerning when the actual numbers reported would be way off. Sir, how do you look at that, sir? I think the intent behind committing those numbers in the last quarter stating that is, we have based on the product sample which has been approved, we went ahead and started. Hello. Sorry for the interruption. Can you hear me well? Yes, sir. Yeah. See, what happened is while we have got the indications of an LOI from the customer, we started making the ordering the material. In fact, if you ask us, we have started even the manufacturing, pre-manufacturing activities of this. Which gave us the confidence that yes, we'll be able to deliver. If you see more than 50% of the manufacturing of those activities also has been on the pipeline. As I said, it is not a denied order, it is a delayed order. We sincerely apology for that, this has happened, I'm sure that you will all trust with me that it is beyond our control. Going forward, we will take this input in terms of committing for the future numbers. We are committing for our growth, based on what market can pull in. One of the reasons that you will see that going forward we will be better is like when our Executive Vice Chairman said, our dependency on every vertical, we are bringing it down. We are taking it to many other verticals so that the impact on one business will not have an overall impact. We will definitely keep this in mind and make sure that in future we will be better prepared for mitigating these risks. Fair enough, your answer. Sir, your answer. Sorry. Yeah, please. Our type of business, we also depend on customer inspection accepting it. I hope you all appreciate that. Sure. Sure. Sir, sir, which is a fair enough point for the P&L side of view. Sir, OCF INR 600 crores of negative, I think that is a bigger disappointment, especially when you kind of guide that you will be just about neutral or slightly negative, sir. You would have known that. I. Sir, why have we not been able to turn that around, sir? Okay. I think it's a fair question. The operational cash flow, I think there was a little, maybe, a misunderstanding. I was also in the call during that time. The two cash flows that we are talking as a standalone EMS business, I wanted to bring it to all your notice that as a standalone EMS business, our cash flow was INR 250 crore positive when compared to INR 66 crore last year. As a consolidation entry, see 65% of our revenue today comes from EMS business, where we are cash flow positive. The metering business, which is a specific model, this is the first full year we have taken, and we are getting matured into this business. One of the things that happens is, you know, this business model is a strategic acquisition for Kaynes in order to make ourselves getting matured towards a product-based company rather than an EMS assembly company. I just want to bring it to all your notice that prior to acquiring metering company, we have been supplying them the EMS business. The entire revenue is not new to us. About 50% of the revenue as an EMS business we have been supplying there. This is a unique acquisition where it is not only making the meter, but also installing the meter and also maintaining the operation maintenance of providing the software. We are the only company which has got a unique combination of all the three, and that's the reason for why Kaynes has committed and moved into this acquisition, which has definitely brought back the good amount of insights on product development as a converting ourselves Kaynes into a product company and putting it maturing into launching no more new products in that segment like whether it be a water meter or gas meter, we are on the pipeline. Having said that, we should have anticipated this well. There were a lot of government delays and the payment sums based on the installation. With various activity that the various state governments releasing the tender for supplying the meter, installing the meter, going to those houses and installing, there was a little delay. I would request you all to appreciate that as a standalone Kaynes EMS business, our networking capital has come from 64 days to 54 days. However, the total number has gone up because of this. 65% of our revenue comes from EMS business, where our receivables is only 35%. Whereas 25% of the business comes from EMS, where the receivables is 67%. We have worked out a strategy as a management team on how to mitigate this. We've been working with various organizations to see that how this business model can be mitigated. Rest assured, ladies and gentlemen, we'll be able to bring it back at least to a level of a reduction. I think the inflection point has stopped. We'll come into the reduction. We will come back in three quarters with the positive results on specific business entity. On EMS business, we have demonstrated our ability of how to bring back our next couple days by both working on supplier side and also on the customer side, brought it back. The numbers are available in this. I think, you can see from our opening receivables of about INR 399 crores in the EMS business, by end of the year Sorry, INR 379 crores, by the end of the year we have come to INR 399 crores. Even though we've grown the EMS business at 30%, our receivables has gone up only by INR 20 crores, which clearly shows how we could able to manage this business efficiently. Ladies and gentlemen, trust us, in the years to come, we will manage the metering business and demonstrate our ability to manage the product development, which is going to be a strategic shift in the Kaynes organization from moving an EMS provider to a product provider, and at the same time manage this working capital cash flows efficiently. Added to that, if you all recollect, we were very clear. Our main EMS business, we will be cash flow positive this year, whereas the entire company, we will not be able to do that. Please appreciate we have done and honored what we have said. From INR 65 crores, I want to bring it to your attention of a cash flow positive of EMS business from last year. We have migrated to INR 250+ crores, which is a significant improvement in a year where there were lot of uncertainties, including the escalations at one end, supply chain disruption in the last quarter, of course, customer pulling of the material. Our customers and suppliers have really supported Kaynes initiative in taking this commitment and moving forward. Thank you. We will take the next question from the line of Nitin Arora from Axis Mutual Fund. Please go ahead. Hi. Just, I think the call is all over the place. Going forward, given I think we are not giving guidance in the same business when you articulated it's a customer-driven business, and when you're saying demand is very good, what is stopping you of giving you the guidance? I mean, is it you see more deterioration in working capital, which will erode the revenue growth from here on also? We are very confused. If you can throw some light how the direction of revenue and working capital improvement will happen, because it has not happened so far. You're not giving any guidance, so it's very confusing for the investors. Because if you can throw on three aspects of both revenue and working capital. Okay. I think thanks for asking this and giving us an opportunity to explain our position. It is not that we are not giving a guidance for the revenue. We are not only giving guidance for the revenue numbers. When we are saying that the industry in India, the GDP growth is at 8%, the EMS space where we are playing is, has grown at about 18% last year, or is expected to grow in this year 16%-18%. We say we'll outgrow the market, we'll penetrate into each and every segment, and we'll double the growth of market growth is what the commitment that we have done. I'm sure that we'll be able to do that. Exactly we don't want to put the number because it. See, for example, the December projection of automotive industry was a mid-double-digit growth for this year, whereas the latest prediction says it will be a single digit higher or lower double digit, which may impact onto the off-take of the product. While we are trying to mitigate it by getting into the various verticals, like in fact we are going to be getting into a defense in full swing, and of course the space business, another thing. At the same time we want to be a little cautious because the market is in a highly volatile condition. Nothing to do with that. Our ability to deliver, our capacity and capabilities is always available. We are committing at doubling the growth of market growth, which we will be definitely coming back in every quarter to say that how the market has grown and how we have grown. You can rest assured that Kaynes will continue to focus on delivery efficiency and meeting the customer demand and of course making the investors' calculation. Sorry if we have made you to put it in a confusing state by not giving the exact number. Having given the exact number, we find that there are a lot of uncertainties which is beyond our control. Rather than coming and telling it and apologetically saying that it is because of this reason, we don't want to be providing a reason, but we wanted to be a solution provider in this. That is on the first revenue. In terms of working capital management, we will continue to be efficient on this area. You can rest assured that Kaynes standalone, the EMS business, will continue to be cash positive, and we'll be improving it at least by about eight to 10 days in the years to come in this segment. The metering business, which is a completed a full year, we started the metering business, which about INR 521 crores, sorry, INR 231, one minute, sorry. The receivables of, okay, INR 521 crores to INR 1,300 crores. We are putting our execution team to go and install it in every area. We will reverse the trend. That's what we can say. We have a very clear roadmap of bringing it back in three quarters to track in this metering business also. We are also working out various business. The current business models, I'm sure that most of you are aware, the business model of metering business is completely different from the EMS business. These are all some of the things. The positive thing is getting into the product, a new technology, and of course a expanded margin product, and the other side is on the working capital management. Rest assured that Kaynes management has got the capability, and we will ensure that we reverse the trend in this quarters, and quarter after quarter you will see. Within three quarters of this year, we have a very clear strategy on how we are going to come out of this cash flow issue in the metering business. Ladies and gentlemen, at this point of time, we want to bring it to your notice the working capital management will not have any impact on our growth trajectory or in terms of our execution capability. Our order books continue to be stronger at INR 9,000+ crore. What we have been talking about and executing the new product in 12-18 months, today our ability to launch the product in nine months. The product, full product has come because of the acquisition of new technology and new teams that we have got a product technology thing. You will be able to see and you'll be able to hear in more and more of our products launch in the electric vehicles base in every spectrum that we are going to work in. Wherein you will see that it gives an ability to launch the product and of course, improve the margin. We are also committing 30% of our revenue in the years to come will come from the new products, which means it gives us an opportunity to leverage our technological excellence. At the same time, getting into a better product standardization of the product to bring working capital management and of course expanding the margins. Our idea was not to give a guidance. What we are trying to tell is we will better our growth of this year, next year. We do not want to attach a number to that. That is the only consideration. I hope I have clarified this. Sir, I don't want a number. The question was more what will change suddenly which will get your INR 600 crore negative cash to break even? Business remains the same. Even Iskraemeco you moves out, which I think you have two more quarters to go. Correct me if I'm wrong. Rest of the business is not negative working capital. What will take this INR 600 crore is my was the question. Sir, the INR 600 crores by end of the third quarter will come to around. Positive. We will try to work on to positive, but we will at least 70%-80% of this will come down for sure, and by end of the year we'll be positive. Positive. We have a very clear strategy quarter on quarter. I'm sure that the next earnings call when we are going to be together because it's almost 45 days have gone in this quarter and the team is working on to put this into effect. Thank you very much, sir. Thanks. We took a little time. Thanks. On this business, because more of a product is what we were focusing and, we didn't anticipate this much of delay in the execution of the erection commissioning. Thank you. We will take the next question from the line of Renu Baid Pugalia from IIFL Capital. Please go ahead. Yeah, hi. Good morning, team. A few questions from my side. First, if you can help quantify what was the share of metering related revenues in our consolidated revenues for fiscal 2026 versus 2025, and how does the growth look ex metering portfolio? That's first question. How are we scaling up in terms of new applications on the power supplies and other aspects including EVs within the industrial business? Third is, if you can share updates in terms of ramp up of the rail portfolio with respect to Kavach solutions. Do we see any headwinds on government offtake, given that government finances this year are likely to be under stress? First these three questions, then I have two questions I'll combine. Thank you very much for listing it out. I will answer the first two questions. One is of the metering business. Our the metering business contribution to our total revenue is around 20%-25%. Okay. Having said that, it is not that the entire 25% of the revenue has come because of the metering business. I'm sure that you will all be able to recollect that we have been supplying the components and the PCB for this metering business, which is around 60% of the revenue is already coming. That's why when people say, "Oh, your growth Is it only because of metering business?" 60% of this is our EMS business which we have done, and we have added the box build softwares and O&M business onto this. The growth is, like that in that business. The second question which you ask is, yes, the company is now launching the product for EV segment. You can see our growth in the EV segment this year is about 28% growth, despite the fact that one of our largest customers in two-wheelers has dropped the production significantly by about 90%. That means, had that been in full, our penetration would have been much higher. This is one segment which is growing, which will continue to grow, and rather than supplying only PCB, we'll start working on the assemblies and products which will make our value additions much higher. Every segment, as we said, we are going to diversify to make sure that our impact is because of one business will not be there. Having talked about the first two of your questions, I will leave it to our Executive Vice Chairman to talk about our progress, what we are doing in railway business. Regarding the rail business, our Kavach product has received the initial approvals. We have got the trial orders. We are in the execution phase. We have done field survey and everything. We are expecting this year in the first half to complete all approvals. The second half to get large portion of orders. Execution-wise, yes, we will have opening order in a big number. A small portion will be out of that completed. This is the status as far as Kavach is concerned. We are developing one another two more products for the global requirement for one of the OEMs in the rail sector. That also. Rail business, I am expecting this year to grow by around 20%-25% because of these coming in. The margins are going to be north of current 30%+. I hope I have answered this. Thank you. We will take the next question from the line of Amber Singhania from Nippon India AMC. Please go ahead. I have a couple of questions. First thing is if you can share details about your metering subsidiary. What was the revenue for the full year EBITDA, and what is the total receivables in this subsidiary? You are asking about the metering subsidiary? Yes. Hello, can you repeat the question? Sorry, can you repeat the question? The metering subsidiary, what is the revenue, EBITDA and receivables at the end of the year for the full year? Okay. Metering subsidiary. Yeah. Yeah. Sir, as far as the metering subsidiary is concerned, out of the total INR 3,626 crores, Okay, it's a subsidiary, it's coming in. It's about INR 971 crores is the metering subsidiary's revenue. Receivables? Which is 24%-23%. Pardon? The metering revenue is at INR 971 crores out of the total INR 3,626 crores revenue. Yeah, how much is the receivables in this? Okay. On the receivables of the metering business is about INR 1,365 crore, including the in the total revenue, the receivables on this business. It is more than that because the first two quarters of this year, we could not able to execute While the metering we have supplied, the installation got hugely delayed, particularly in the rural states where the, s orry, rural towns where the government has given business. Our pickup has happened only in the last quarter where our installation is going. It's going to take about one or two quarters for us to complete the installation. That is why I have committed that it will take up to the third quarter for us to complete it. I'm sure that this is not only with us, it's overall the ecosystem of this is creating a problem, but we have created a pipeline of team and pipeline of equipment to make sure that this installation takes place on time. Just. The availability of people, the availability of at the location is a concern. Sir, just a clarification in this. If I'm correct, last quarter con call you mentioned that metering subsidiary receivable was somewhere around INR 1,100 odd crore, and you were supposed to receive INR 250 odd crore by securitization itself. Whereas when we are seeing now, it has gone up. If you can help me understand, was there any securitization done? If not, why not? Because you have committed that it is almost done during the last con call. Secondly, what has led to this kind of increase in receivables on the year-end this time? See, this securitization we have just started with one bank and the first lot where the installation is completed, banks have started accepting it. Bank would like to have the first month complete billing and realization. We have the sanctions everything, but we have only discounted to around INR 40 crores or so. Sir, I think this exactly same comment you have made last quarter con call. There is no progress in this quarter at all in this? No, no. Apart from last time, this quarter again we have discounted some INR 40 crores extra. See the installation and all reports after that securitization takes place. They are willing to disperse the money. Our key challenge is on the installation now, which is what we are working with the various organization, public sector enterprises and the end customers and the CE, the respective Transco or Discom to see that how we can speed it up. We understand your concern of why the revenue as in the last quarter is INR 380 crores. We almost added this as this, basically because of the delay and on the installation. Sir, just wanted a better clarity in this business going forward. Are we going to continue execute this kind of revenue with this kind of working capital? If not, what is the factor which are giving you confidence that you will be able to reduce this working capital in this business? If you can quantify something with concrete steps, it will be helpful for us to understand. No, no. In the past, we have already agreed we are not going to take any orders like this. We are only going to take meter orders, and we will be supplying to the project. Third party. Teams who are taken up orders to, for the entire execution like that. Further it will be our EMS component only we'll be taking orders. See the current business what we are taking is about INR 35 lakh. Two, three quarters we have to complete. Yeah. 35 lakh meters is what we have taken, which is the order that is being executed and all. Ladies and gentlemen, I think we need to, while I fully understand working capital is one of the key concerns and we are working on, this has brought in lot of other strategic advantage to the organization in terms of our product development capability, a software capability which no other EMS business has, and on top of this, our ability to execute the projects like this. I think these are the strengths going forward is going to come us, and you all know that this comes with a better margin than the standard EMS product. The companies when it's going to migrate from a service provider to a product company, you know the benefits of this. When we are going to be in a B2C, our brand is going to get strengthened. The people are going to look for our brand, and this is going to be. As I said, it's going to have a lot of strategic advantage. Having said that, you can rest assured that, we will come back with a quarterly progress on this and see how. Last year, yes, every four quarters we have added up the number almost more than 50% of the revenue that has come. Now that we have created an ecosystem of our ability to install the meters at the location, we will get into it. You also know that when we are doing it with the public sector enterprises and doing this, the processes is taking little more time than in normally in a tier 1 OEM or other business. Having understood this business, we are pretty confident we are going to come, and like our Executive Vice Chairman said, we'll also be cautious of taking such a huge business of INR 35 lakh-INR 40 lakh on rather than on this model to only just supplying a metering supplies and giving it to an SPV companies where they will do the installation, erection, commissioning. Thank you. Hope that answers your question, but it is a very, very valid question. Thank you. We will take the next question from the line of Dhaval Somaiya from Axis Mutual Fund. Please go ahead. Good morning. I have two questions. Firstly, this 35 lakh odd meters is broadly an INR 1,400 odd crore order. What, if you can give some quantum in terms of, how many meters are pending from this order? Secondly, like you highlighted the Smart Meter business this year did roughly INR 971 odd crores of top line. That implies that still, there is another contribution of INR 740 odd crores from subsidiaries. What is the breakup of that, if you can help us understand? Okay. Sir, in terms of the metering, we will take another two to three months to complete the entire pending order of this, and which is what we are also putting into our calculator to see. There is a small extension of this order as per the condition. It may or may not come. That is another INR 3.5- INR 4 lakh. That is why we are pretty confident in three quarters from now we'll be able to finish off this and the new businesses will be in a different model. That is on the metering business. The other subsidiary which is very prominent is the KEMPL, which is exactly the EMS business only. We are considering this EMS business there almost if you see our EMS receivable, the start of the year we started with INR 379 crores. The EMS revenue, I will just talk about it. The EMS revenue is about INR 2,655 crores, with INR 442 crores in the quarter one, INR 683 crores in quarter two, INR 667 crores in quarter three, and INR 862 crores in quarter four. We started the year with INR 379 crores of receivables, and we ended up the year with We went up. We went up to INR 466 in the quarter two and INR 437 in the quarter three, we brought it down to INR 399 in the quarter four, which sees that we have exceeded only by INR 20 crore for a revenue growth of about 26%, which means our prudent management of receivables and our shorter lead time. Actually, basically it is about how fast we can manufacture and ship it out of the plant and ensure that it gets into the factory and start consumed by the customer. Out of the INR 2,655 crore, for your other question, one is Executive Vice Chairman answered KEMPL. There are two foreign entities which put together on an average about INR 300 crore revenue. They are also EMS company. They are also EMS company in the North America and Canada. Okay. Understood. Thank you. Thank you. Thank you very much for giving us an opportunity to clarify this question. I fully understand your concerns on this, the business model of the metering business is completely different from the EMS space. While it is putting a stress onto the working capital management, ladies and gentlemen, believe us, it gives us an enormous ability to do the product development launch at the time, not only with the product development, but building our capability in erection commissioning on these type of projects. Of course, the software, which is going to really help us not only for this contract, but beyond this contract, the money is going to come back for a long term for us till the meter is up and running. Thank you. We will take the next question from the line of Jigar Shah from HSBC Mutual Fund. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity and sorry to harp on it again and again on Smart Meter business, but the communication from your side seems to be very off since last two, three quarters on Smart Meter business and has created a lot of confusion. If you see, you know, your commentary has been that, you know, this year, Smart Meter business FY 2026 would be INR 800 crore, but it has come at, you know, almost INR 1,000 crore. Going forward, you will not be taking AMISP business, you know, and hence receivables, which is current but not due, standing in other current assets or non-current assets, which is around INR 250 crore will come down. That has not also done. In fact, revenue has increased, receivables have increased. In FY 2027, I would like to know that, you know, from AMISP model, how much will be, you know, revenue and, you know, incremental other current assets but not due, you know, incremental, what will be the situation for the year? Okay. Sir, I just wanted to let you know, while we were at INR 800 crores, when we got an opportunity to grab to offset some of the business that there was a delay in automotive business or there is delay in something, we grabbed every opportunity. That is why we have grown in this. For the next year, while the INR 971 crores of sales, what we did this year, in absolute numbers, we may remain same or slightly up or down. That's not a question. Almost 50% of the business will be in the old model. The rest will come in the new model. As Executive Vice Chairman said, we have to finish some more, and there is a contract clause that if the government is going to ask for more, we may have to continue to supply. We will be definitely taking prudent, rest assured we have worked out the business model for this year. We will in next investor call, we will just make sure that we start a presentation with this, for first five minutes or something and giving the numbers to make sure that we completely keep you all in transparency on how the business is going and how we are going to collect it. We are also working out on couple of more strategies to make sure that how the non-current asset, what we are talking about, which is sitting up for a long time, how we are going to mitigate that risk and at least get 50% immediately. We will get back to you the days to come on this specific project. Rest assured that this is on top of our agenda and top of our working to make sure that how we can reverse this and then get back into towards the positive territory. Like we have closed our EMS business. Sorry, just one more question. We have improved our working capital. Please. Yeah, just one more thing on receivables. You mentioned that, you know, subsidiary is INR 1,365 crore. How much will be this, long term and, short term? I think you already estimated about INR 250 crore is the non-current assets. I think that will be there. Rest are in the current. I think our ability to now do the installation is going to be the key. There are four states where our team is working, and it is taking extremely high time for more than six zones. Six zones we are working on this. We have put enough infrastructure and team to do this, and we now got a clearance from them to do the almost from morning six to night 12. I think our team is putting efforts and we'll speed up this process. Thank you. We have been a traditionally a manufacturing company. We worked on improving the efficiency and productivity of the plant. We really understand the new model of how it takes time to do the installation at every site location or every house. Thank you. We will take the next question from the line of Sumant Kumar from Motilal Oswal. Please go ahead. Hi, sir. In balance sheet, the intangible asset in FY 2025 was INR 238, and in FY 2026 it is INR 536. What was the INR 300 crore increase? What was the key reason for that? I think, if you go back to the two quarters before, we did two acquisitions. One is in Iskraemeco and second is August Electronics, which is our in Canada and supplying in the EMS space to the big players in the North America. The intangible asset that has been capitalized from these two is about INR 320 crore, and there was a clear things in what is the order book and it's based on the current accounting standards, and we did INR 320 crore. For all of your information, even though you have not asked for this question now, I think we are committed that how we are going to do the amortization of this. Our policy was once in a year. In the last quarter we amortized these intangible assets, and that has added to our depreciation amortization to a level of about INR 32 crores. That is why the PAT in the last quarter has come down, PBT. Ladies and gentlemen, believe that the full year was around 10%. Going forward, I think we'll be doing this amortization on every quarter. This is basically from the order book and other assets that's available from acquisitions of Iskraemeco and August Electronics. Thank you. We will take the next question from the line of Sumit Sinha from Macquarie. Please go ahead. Yes, thank you very much. Apart from the Smart Metering business, I think everyone's trying to get their arms around guidance. Mr. Muthukumar, you were on TV, talking about 2x of the EMS growth. I wanted to get a sense of when do you expect to get to that double the market rate? Is it from starting now or is it going to be the third quarter is what you're referring to? Would that include OSAT and PCB as well to get to that sort of double rate, or is that just a pure EMS business? Then I have a follow-up. Okay. Sir, in the double the, 2x growth, I think we have launched three products, and which is already in production now, SOP started. We will continue to penetrate into every customer. You know, when the automotive business is growing at around 30%, share of business is the key driver for this business. We will continue to focus on not only introducing the new product but also expanding our share in the business. That is why we are confidently telling we are getting into this. The aerospace business is another one where we are substantially growing last year and we continue to grow in this year. Like, Executive Vice Chairman said, railway is another course. As I said in the earlier or to some of you when we are talking, the industry is growing at 6.5%- 7% in India. Our market space is growing at around 15%-16%, and we'll be doubling the growth. Being into the Middle East war, even in the last quarter, we have performed much, much better and our supply chain agility was good. Our strategic stocking has really helped us in this. We will be doing the double X, 2x growth from the start. When I say 2x growth, it's not the 2x growth of our last quarter comparison, but on the market growth and our growth. I just want to make myself clear. You know, if the market is going to grow at 15% and we are doubling, and then you are there with the numbers. All right. Okay. On OSAT and PCB, I'm sorry, I missed the question. OSAT and PCB, ours is a very, very strategic product. We are also evaluating how much of that is going to be consumed internally and how much we are going to give it outside. For all the product that we are making, where we are making a design specific and where we are going to offering as a solutions with the Kaynes product, we may be using our own product because of the technological advantage and the competitiveness. At the same time, we'll continue to focus with the end customer. There is a pipeline of customers that's coming in and, you know, the OSAT ecosystems and PCB systems, we are strategizing it out. At the end of the year, yes, the overall growth from those segments, we can see that either it will expand in bottom line or on the top line, depending on how we strategize to use the product. Through our own product by expanding the margin or selling it to other customers. It'll be a strategic call and it'll be moving forward. It'll be an integrated business. Thank you. We will take the last question from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead. Thank you for the opportunity. Just extending the previous question, sir. Sorry to interrupt in between, Mr. Achal. Can you please use the handset mode and speak? Better? Yeah, sorry for that. Am I audible? Yes, you're audible. Please proceed. Yes. sir, just to extend the previous question, you know, if you could talk from a production value perspective, you know, the earlier guidance was INR 1,000 crores for OSAT, INR 500 crores for PCB. Does that stay intact or, is, you know, is there any risk to that number? That's my first question. We have not given any guidance like this. This is our first year. I'm sure and certain we will do a good number of PCB of around 300-400 and OSAT of around 250-300. How much of that we are going to consume locally, how much of them we are going to sell outside is a strategy that being worked out. We'll be co-communicating to you at an appropriate time to all of you. OSAT business and all, locally there will be nothing to start with. It will be always in export mode only. All right. Thank you very much. Ladies and gentlemen, we will take that as the last question. With that concludes the question and answer session. I now hand the conference back to the management for the closing comments. Thank you, and over to you, sir. Thank you very much, ladies and gentlemen. I think, we appreciate really the opportunity that is given to us to explain about our initiatives and some of the concerns that you had. We hope that we have answered most of your queries. If any one of you have any queries, please do reach out to our investor relations, and we are here to show you. We also welcome you to visit our plants and see those facilities. Seeing is believing, and I'm sure that Thanks to every one of you for supporting us in this growth journey. I'm just handing over the phone to our Executive Vice Chairman for any closing comments. Thank you very much. I'll be shortly meeting in some conferences. If there is any clarification, please reach out to us. We will be happy to clarify all points. Thank you. Thank you very much. Thank you, members of the management. On behalf of Axis Capital Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.