Ladies and gentlemen, good day. Welcome to Raymond Limited Q4 FY 2026 and FY 2026 earnings conference call hosted by Anand Rathi. As a reminder, all participant lines will be in the listen-only mode. There'll be an option there 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Valecha from Anand Rathi. Thank you. Over to you, sir. Thank you. On behalf of Anand Rathi, I would like to welcome all the participants in the Q4 FY 2026 and FY 2026 conference call of Raymond Limited. We have with us from the senior management of Raymond Limited, Mr. Rakesh Tiwari, Group CFO, Mr. Gautam Maini, MD Engineering Business, Mr. Sanjeev Sharma, Joint MD and CEO, JKMPTL, Mr. Navin Sharma, CFO, Engineering Business, and Mr. Sunny Desa, Head, Investor Relations. Without taking further time, I would like to hand over the call to Mr. Gautam Maini. Over to you, Mr. Maini. Thank you. Good evening, everyone. Thank you for joining us today for our Q4 FY 2026 and FY Q4 results as well as the FY 2026 results conference call. I hope everyone has had an opportunity to go through our financial results and investor presentation, which have been uploaded on the stock exchanges as well as on the company's website. Moving ahead, let me start by talking about the broader macroeconomic landscape that has influenced our performance and strategic decisions. India concluded FY 2026 with a robust real GDP expansion of 7.6%, underpinned by a significant base year revision and resilient industrial activity. While the manufacturing sector remained in expansionary territory throughout the year, the manufacturing PMI moderated to 53.9 in March, which was a 45-month low, reflecting the impact of energy shocks and the rising input costs from Middle Eastern conflicts. Despite this late quarter cooling, the fiscal year benefited from structural GST 2.0 reforms and the RBI's managed policy rate of 5.25%, which helped contain March CPI inflation at 3.4% and supported overall domestic demand. If we look at the automotive industry, it hit a historic milestone in FY 2026 with domestic passenger vehicles, which is the PV sales, reaching a record 4.64 million units, a 7.9% year-on-year increase. Q4 momentum was particularly strong, with volumes climbing to 13.2% to 1.32 million units, driven by a structural shift towards utility vehicles, which now dominate the market. Total industry dispatches, including two-wheelers, which was 21.71 million, and commercial vehicles, 1.08 million, reached a combined seven-year peak. Complementing domestic strength, exports touched a record of 0.91 million units, which was 17.5%+, reinforcing India's role as a critical global manufacturing node. Looking at the aviation sector, it has maintained significant momentum in FY 2026 with global OEMs tripling India sourcing compared to 2019 levels to reach INR 1.5 billion annually. This expansion is fueled by the deepening of Tier 1 manufacturing roles for Indian firms and a global airline transition towards fuel-efficient next -generation fleets offering 25% gains in fuel burn efficiency. Despite a record backlog of 17,000 commercial aircraft representing over a decade of revenue visibility, actual conversion remains hampered by engine shortages and supply chain friction. Q4 was specifically impacted by a contraction in aerospace-grade titanium and aluminum alloys following logistic blockades in the Gulf. These persistent inflationary pressures have accelerated a strategic pivot towards domestic input localization to insulate margins from geopolitical activity. The aerospace component ecosystem remains highly resilient due to extreme barriers to entry. Suppliers who have cleared rigorous certification hurdles are protected by a compliance moat that insulates them from low-cost competition. For the component and hardware ecosystem, this record high order book provides unparalleled long-term revenue stability, provided that domestic localization can successfully mitigate ongoing material cost premiums. Raymond Limited on its consolidated performance continued its growth momentum, delivered a resilient quarterly performance, reporting a total income of INR 613 crore, reflecting a 2% increase compared to the same quarter of the previous financial year. EBITDA stood at INR 85 crore with an EBITDA margin of 13.9% in Q4 FY 2026 versus total income of INR 601 crore in Q4 of FY 2025, delivering an EBITDA of INR 99 crore with an EBITDA margin of 16.4% in Q4 of FY 2025. Q4 FY 2026 performance was anchored by the aerospace, defense, and Precision Technology divisions, reflecting the structural integration of Indian suppliers into global high-tech value chains. We are observing a significant migration of domestic vendors from basic component manufacturing towards high complexity subsystems and precision engineered assemblies. This transition has secured a robust multi-year order pipeline for Tier 1 and Tier 2 export partners, enhancing both revenue visibility and contract stickiness amid broader global supply chain realignments. During FY 2026, total income stood at INR 2,312 crore, a 10% year-on-year growth from INR 2,105 crore in FY 2025. EBITDA was flat at INR 335 crore in FY 2026 compared to the same number, INR 335 crore in FY 2025. The EBITDA margin stood at 14.5% in FY 2026 versus 15.9% in FY 2025. While operational performance remains strong, EBITDA margins face pressure due to a reduction in non-operating income. INR 600 crore of cash was transferred to Raymond Realty post the demerger, hence the difference. Going forward, we continue to remain optimistic about the future growth trajectory given our expansion strategy in new product categories and new geographies. I'd like to move on to the segmental performance to give more clarity on the operations. We look at the aerospace business first, which is through the company JK Maini Global Aerospace Ltd. At this segment level, the aerospace and defense business reported robust performance with revenue of INR 119 crore, which is 11% year-on-year growth, and an EBITDA of INR 3 crore, which is again 11% year-on-year growth, and an EBITDA margin of 25.5% in Q4 of FY 2026, versus a revenue of INR 107 crore and an EBITDA margin of INR 27 crore and an EBITDA percentage of 25.5% in Q4 of FY 2025. In FY 2026 full year, this segment generated INR 392 crore in revenue, which is a 26% year-on-year growth from INR 311 crore in FY 2025. EBITDA also grew by 25% year-on-year, reaching INR 88 crore compared to INR 70 crore in FY 2025. The EBITDA margin stood at 22.3% in FY 2026 versus 22.4% in FY 2025. Q4 FY 2026 performance was driven by a dual strategy of portfolio expansion and increased volume allocations from core OEM and Tier 1 partners. Forward-l ooking indicators remain robust, characterized by a steady rise in the RFQ activity, which is a request for quotation, and the pursuit of new global strategic ventures. This healthy demand supports continued capacity scaling and deeper integration into the high-tech supply chain. While internal growth indicators remain strong, the near-term outlook is currently influenced by external macroeconomic factors. Precision Technology and Auto Components, which is the JK Maini Precision Technology company, is at this segment level. This Precision Technology and Auto Components company reported a revenue of INR 442 crore, which is a 5% growth and an EBITDA margin of INR 67 crore, which is a 26% year-on-year growth and an EBITDA margin of 15.2% in Q4 of FY 2026 versus a revenue of INR 421 crore, an EBITDA of INR 53 crore and an EBITDA margin of 12.7% in Q4 of FY 2025. In the full year of FY 2026, this segment generated INR 1,667 crore in revenue, which is a 10% year-on-year growth from INR 1,513 crore in FY 2025. EBITDA also grew by 34% year-on-year, reaching INR 223 crore compared to INR 167 crore in FY 2025. The EBITDA margin stood at 13.4% in FY 2026 versus 11% in FY 2025. The EBITDA margin improvement was also on account of higher sales volumes, favorable product mix, but also included a one-time gain of INR 13 crore from the sale of land in Q2 of FY 2026. We continue with our strategy to expand into new international geographies and industrial sectors. We are observing business momentum across domestic and international markets, supported by the China Plus One strategy, integration synergies, and focused operational efficiencies across all segments. However, global trade pressures stemming from U.S. tariffs have introduced logistical complexities, resulting in some temporary rescheduling and delays across the industry. Let us come and look at the debt and cash position at Raymond Limited. We continue to remain a debt-free business with net cash surplus of INR 68 crore in March 2026. Raymond is embarking on a transformative INR 930 crore CapEx program over the next five years to meet surging international demand. This includes INR 500 crore dedicated to aerospace, projected to scale current capacity significantly and INR 430 crore for precision technology and auto components. The integration of advanced multi-axis machining systems is already enhancing turnaround times and enabling the execution of complex high-value projects in aero engine, landing gear, and structural segments. Our operational reputation is reinforced by consistent NPD approvals and successful audit outcomes, accelerating the conversion of RFQs into multi-year contracts. We are strategically pivoting beyond build -to -print services towards co-design and value engineering collaborations with global OEMs. This shift into sophisticated subsystem manufacturing deepens our integration into the global supply chain and enhances long-term contract stickiness. As global OEMs increasingly look to India for supply chain diversification, Raymond Engineering's business is uniquely positioned to capitalize on this structural tailwind. With a record RFQ pipeline, robust operational readiness, a clear focus on high-precision innovation, we remain committed to scaling exports and reinforcing our status as a trusted global manufacturing hub. I'd like to thank you all once again for your continued interest in Raymond. We are now happy to take your questions. Thank you very much. We'll now begin with the question and answer session. Anyone who wishes to ask a question may press star one to ask a question. Anyone? You may press star one to ask a question. The first question is from the line of Balasubramanian from Arihant Capital. Please go ahead. Good evening, sir. Thank you so much for the opportunity. Bala, sorry to interrupt, but your audio is not clear. Right now it's clear, sir? Yes, go ahead. Good evening, sir. Thank you so much for the opportunity. In the aerospace side, we have added 100+ new SKUs in this year. What is the R&D expense in this financial year? Are these development costs are contractually reimbursable by the customers? Basically, it's a mixed question, but let me try and answer that. Most of the R&D costs are written off as operational costs. It's between 3%-5% of your cost, but we write it off in the same year because we are considering it as part of our business model to grow aggressively. In some cases where the projects are very complex, you can get some development costs, but in a lot of cases it is included in the prices that you quote, and therefore you build them into your price. The clear answer is that we do not separately record these costs, and we write them off in the same year, like operational costs. In a way, the more products you develop, the more you write off that particular year. Yes, sir. Sir, out of our current order book, like we could share the breakup between LEAP programs, GTF and other platforms. Well, I don't think we go to the extent of sharing exactly on all platforms, but I just want to tell you that we are basically present on several platforms across all the possible engine OEMs globally, both in Europe and U.S. We are significantly looking to continuously increase our market share with them. Therefore, our goal is to de-risk that whichever whether it's a narrow body aisle aircraft or a wide body aircraft or whether it's in Europe or whether it's in U.S., we are part of those markets, and we have de-risked ourselves to make sure that we are part of most of these programs. Yes, sir. Sir, on the tariff side, I think it's been reduced from fifth month onwards. How do you look at from Q1 onwards? Sorry, can you repeat that question? Sir, tariff impact has been reduced from fifth month onwards. Yeah, so- It's a mid of the quarter. How do you look at from Q1 onwards? Are you asking this question for aerospace or automotive? Just to clarify, in aerospace there were no tariffs. Okay. In automotive, the tariffs are definitely down to 18% now, so it's definitely better than what it was. I think slowly customers are getting used to the new normal and therefore slowly business will start coming back and is coming back. It's taken some time, but I think it will only get better. In the meantime, because of the war, you had disruptions on supply chains, et cetera. It will just be a little bit more time, but it will slowly come back. Yes, sir. My last question, I think we are in the auto side, we majorly doing for IC engines, EV hybrid. On the EV side, which are the components we are doing right now, and what is the target in the coming years? We make some complex assemblies as well, completed fully transmission gearboxes as well. We also do some very critical components that fit into the hybrid transmissions globally in Europe. Those also get exported to all over the world. I would say we are in a good space in terms of both hybrid and EV, and we are trying to horizontally deploy this across our customer base over the next couple of years. We would definitely focus on that. We did see that the hybrid market grew in the last two years compared to the EV global market, and therefore we focused a lot on the hybrid market and captured a major market share. Thank you, sir. All the best. Thank you. Next question is from the line of Niraj Mansingka from White Pine Investment. Please go ahead. Yeah. Thank you for the opportunity. You have this order book of INR 2,350 crore on the aerospace side. Wanted to know how much can you know, facilitate from the existing facility, not including the greenfield one that's putting up? We are, we have planned it in such a way that we will, you know, we will not run out of space till we grow. We will continue to keep our trend of 25% growth till we reach the new greenfield facility. Nothing will stop us in the meantime to continue to keep the growth that we have. In fact, we will also continue to develop new products here itself, which will then be transferred to the new facility when it gets ready to shorten the lead time of customer approvals in the new facility. A detailed, seamless plan is being made to ensure that there is a continuous growth in the new facility when it comes out, without running short of capacity in our current facility. Okay. Sorry I'm extending the same question. Your current yearly revenues for aerospace and defense is almost INR 400 crore, and you're talking of a 25% CAGR. You are talking of almost, you know, run rate going to INR 506 crore, around INR 800 crore-INR 900 crore run rate in FY 2028. That's when you're expecting the new facility to start. Is it the right way to look at it? Well, we are starting the new facility by the end of, calendar year FY 2027, right? We're talking about a 18-month period, first of all, and therefore, we would be closer to a number much lower than what you said. We will definitely have capacity to reach that number before we move to the new facility in Andhra Pradesh. Right. Sir, the last question. I'll come back on the queue. There is lot of shortage of machinery for machines, like the, like of Grob and other machines in the global market. Are you fully ordered for the machines for your facility and or it's just a step up on the gradual side? First of all, we don't depend on one manufacturer. I think, we must be having within our group at least 15 different manufacturers. We look at what machines are required for what operations, what complexity, based on that, we buy our machines. We plan our machines' lead times well in advance to make sure that we don't lose out on any of our projects, that will be the plan going forward as well. We also buy from all over the world, it's not restricted at all. No, Mr. Maini, my question is more specific to you. Have you completely ordered all the machines or you are yet in the process of doing it? We continuously have a capacity plan that we order in times of lead time. If our lead time, we believe is, let's say, six to eight months, just to give you an example, we plan six to eight months in advance to make sure. You have to understand, we are growing almost on a weekly, monthly basis. It's not like a project like a cement plant or some other plant where, you know, you put a big project and you expect it to grow. Ours is a modular growth, which happens every month. Let's say you develop 15 new components this month. You know six to eight months from now, you have a ramp-up plan for them. You already plan those machines, and based on the lead times you have committed to the customer, you then plan to buy those machines. You'll practically have machines coming in every quarter for continuous expansion on growth. Right now also, we have several machines that are on order, which we will receive over the next three to six months, and then we will keep ordering based on what new products are being developed and the ramp-up plan of those products. It's a continuous process. Yeah. Got it. I'll come back to the queue. Thank you. Sure. Thank you. Thank you. Next question is from the line of Sanjeev Zarbade from Antique Stock Broking. Please go ahead. Yeah, sir. My question is regarding the commissioning. In the presentation, we have seen that the commercial production will start by late of 2027. Sorry, can you just I can't hear you very clearly. Can you just either come closer to the mic or just speak a little louder, please? Yeah, yeah. Sir, audible now? Yes, yes. Yeah. Sir, regarding the commercial start of the new units in Andhra Pradesh, the presentation is mentioning 2021, late of 2027. It means that probably it was the, you know, end of FY 2028, the commercial production will start. Correct? Is that reading right? Yes, it'll be in the second half. Like, it'll be like second half or towards the last quarter of FY 2028. You're right. Correct. Towards calendar year 2027. Yes. Yeah, yeah. How would be the CapEx planned for 2027 and 2028 towards these units as well as for the existing units? Yeah. Basically, in each of the businesses we will approximately be spending about INR 100 crore each to build capacities w hich will be consistent, yes. INR 200 crore per year for both the units. Yeah for FY 2027 and 2028. Yeah. Okay. Sir, in the aerospace side, what further industry developments you are seeing which could be kind of a tailwind for our growth? Well, we have, quite a few strategic, plans which I can't disclose fully at this stage till they concluded. I can tell you that we are involved at a strategic level with both OEMs and Tier 1s, with some long-term large businesses, which only once they conclude I can bring to the notice. There's a lot in the pipeline. There's a lot of effort being put to move up the value chain, which we've been talking about, and also add more, value-added work also in terms of sub-assemblies and then final assemblies. We've also, like I mentioned before, we're doing some, you know, design-to-build work. On all the fronts we are trying to expand the value creation. Okay. Great, sir. Just one last question on the other income side. On the consolidated basis, the other income has fallen sharply. Is that probably some dividend that you would have received in the fourth quarter of last fiscal, which is, which was not there in this quarter or something else? No. There are two parts to the other income. There is other income which we get because there's a surplus fund or surplus corpus available in Raymond Limited, which is the parent company. There's also other operating income, which is, you know, essentially generated from, let's just say, a sale of scrap and all, because more particularly in the aerospace business, there's a lot of scrap which gets generated, you know. It has both elements. Okay. right, sir. I think, I'll stop here and if further questions are there, I will come back to you. Thank you. Thank you. Next question is from the line of Aman Baheti from InCred Capital. Please go ahead. Hi, sir. Thank you for the opportunity. I hope I'm audible. My first question was in the line of our precision auto business. The EBITDA margins expanded around 250, 260 basis points. The top line growth was only like 10% on a yearly level. What really drove the EBITDA margin expansion? Is it fair to assume that these kind of margins are sustainable? First of all, there was an exception of INR 13 crore, which I hope you're aware of, which you have to take out from the equation, which was a one-time cost from the land sale that we had. Once you remove that, basically, you know, we implemented SAP in August. We did a lot of work on integrating all of the companies. We did a lot of synergies across the companies. All of this, I would say, came together, you know, before the start of the last quarter, synergies from the companies, cost reduction activities, improvement in efficiencies, consolidated buying, all of those had a role to play in margin expansion. The margin will continue going forward as well because these are permanent synergies and cost reduction programs that we've put in place. This year there's going to be some amount of pressure because certain raw materials have gone up, but normally these are pass-through, so there will be a lag. In effect, the margins should remain where they are. See, there is a big, you know, strong cost consciousness mindset, which is why, you know, we are running a formal cost reduction program this year. Clearly the focus on improving margins, not just from the growth, but also from cost efficiency remains a priority. All right, sir. In our segmental performance also, we have some other operating income or losses there. We incurred around INR 13 crore of, you know, loss in the other segment. Could you give a breakup of that? Yeah, I'll just, See, you know, the Raymond, the Raymond Corporate, essentially, which is the, which is the holding company, has other income which comes in in the form of interest income that it generates from the corpus it has. Obviously it has some expenses as well. More or less, you know, of course, you know, you can't measure that on a quarterly basis, but I guess the best thing is to look at it on a full year basis. On a full year basis, the income more than offsets the expenses, and therefore, to that extent, you know, it could be one quarter here, there, but broadly, the way you have to look at this business is that Raymond Corporate will be more or less even Steven. There could be some marginal loss some quarter or some year, and there could be positive some year, et cetera, but broadly neutral. The way to kind of look at this business is you have to look at the aerospace and the auto segment and then really focus on those two segments and not on the corporate. That you can assume will be always even Steven, with some marginal loss or profit. All right, sir. Got it. Lastly, on our aerospace business, we have highlighted our order book. This order book is largely from Safran or are we taking in any other customers? What is the concentration? You have to appreciate that we have over 25 customers and one of our strategies has been to de-risk our customers. Even when you talk about the OEM you mentioned, they have more than seven different legal entities, so we are working with many of them. The point is to de-risk our business across several customers with whom we already have approvals and that puts us in a very good position to scale business. All right, sir. I mean, so my direct question was, can you give a breakup of how much would be LEAP engines from the total order book? Only LEAP engines. Well, I don't think it's okay for me to give you a direct breakup, but let me tell you that, over 75% of the products that we make are for the engine segment across the OEMs, you know, globally, which should be a good direction for you to know. All right, sir. Lastly, I mean, I'll join back with you after this. We have guided that we'll be adding around 300 - 350 new components every year. How has that been playing out till now? Are we in line to, you know, ramping up those things? Yeah. I talked about one component a day that we will start to do. This year we should manage that, but I don't count your, you know, all the days in the year. I would say 250 is possible to be made this year, and we should be on track for it. All right, sir. All right. Thank you so much. I'll join back. Thank you very much. Next question is from the line of Adhiraj Singh from Amicus Capital Partners. Please go ahead. Hello. Firstly, congratulations on a good set of numbers. I have a couple of questions. First, on the net cash number that you have presented, which is INR 68 crore, if I look at the balance sheet, right, I see borrowings of around INR 1,000 crore and some cash of INR 200 crore. Can you please provide the reconciliation for the same? Sorry, which page are you referring to? I mean, the numbers that you- So- ... are correct are around INR 1,000 crore. Borrowings is, if I look at the consolidated balance sheet, borrowings comes to about INR 1,000 crore. The net, if I look at the cash and bank balance, it's around INR 200 crore. I was just trying to understand what else is included in the cash line item. Yeah. There are investment in other marketable securities, right? You, I mean, you, I mean, you have lots of, let's say instruments in which you invest to optimize your yield when you are sitting on a large corpus. I mean, there's been a variety of instruments there. Okay. These would be liquid instruments, right? That's- marketable. That, that's correct. Yeah, largely liquid. I mean, some may have two, three-year kind of timeframe, but largely liquid. Okay. Okay. Okay. That helps. That helps. Sir, second question is more along the lines of, you know, on the aerospace business. So right now we are primarily into engines, but as we scale, right, is there any plans to get into, let's say, aerostructures or landing gear? So if you can, help me understand if there's any strategy around it. Yeah, like I said, before, it's 75% in engine, obviously that other 25% we are in landing gears, we are in hydraulics. We are in other accumulators, we're in auxiliary engines. We are not restricted ourselves to any. The idea was to create enough relationship with the aerospace industry as a whole, and then depending on where the opportunities were, we would take them. We will definitely be taking opportunities in all areas. Obviously, keeping in mind our growth rates, our ROCEs, our returns, and wherever we find them to be the best, we will pursue those on priority. Like we said, the market is so large that it's more limited by what you can execute rather than market. It's very important to execute right, and that is the focus of the company now, is to make sure that we can, we can grow our execution base. See, the critical thing is that, you know, I mean, the biggest opportunity for us is when we start setting up Andhra. It's a clean slate for us. On a clean slate, Gautam alluded to it, but maybe I'll make it more specific, that, you know, the kind of conversation we are doing with most of our partners are basically to say, "Well, you tell us what you want us to put," you know, kind of story, so that we can become more strategic with them. Obviously we want to, A, you know, make it kind of one-stop shop for the customer, so that will help the business trajectory. As well as, I think one of the other participants had also pointed on 250 parts and those kind of things. I think it's not the 250 which is more important. What is important is that how do you go up the value chain on those 250 parts. That's also part of that Andhra strategy, because A, you know, there's no baggage. I mean, it's a total new parcel of land. You, I mean, you have about 45 acres for aerospace. We can do what we like to do there. Therefore, we would rather take the try to reshape the trajectory of the business, you know, versus doing more of the same. Those are the kind of things we are trying to work on now. Of course, they'll happen when they happen, but that's the thought process. Understood. Thank you so much, and, all the best for FY 2027. Thank you. Thank you. Thank you. A request to all the participants, kindly limit yourself to two questions per participant so the management can address all the questions. Next question is from the line of Rakesh Roy from Boring AMC. Please go ahead. Hi, sir. My first question regarding, sir, your aerospace business. As you mentioned, this will grow 25% year -on -year. This means, sir, for FY 2029, how much revenue we expect from your Andhra plant for aerospace? Yeah. Obviously the Andhra plant in the first few months where you can't expect any revenue because you will have customer approvals and stuff like that. We will grow in a very small way in FY 2028, which is your calendar year ending FY 2027 and last quarter of FY 2028. In FY 2029, you will see the real growth. Let me try and address this question separately without getting into specific numbers. See, we have the capacity to grow this business by 25% for next year within our existing system. To that extent, whatever growth will happen will happen in the existing unit to a large extent. Then Andhra really starts kicking in towards the end of FY 2028. FY 2029, I mean, the next 25% has to come from Andhra. Okay. Yeah. The next 25 has to come from Andhra. It can't come from anywhere else. Okay, okay. The assumption for existing business, Yes. Your business grew for FY 2028 by INR 650 crore from this one. For FY 2029, again, we take 25% growth from existing plant. For Andhra, is that 25% of INR 700 crore-INR 800 crore or just again you have to add INR 200 crore? I tried this mathematics, sir. I mean, you can do your maths as much as we can do, no. All right. Okay. All we can say at this stage is that, you know, we are targeting a 25% growth year on year. Right. For the first year growth can be taken care of by the existing plant. The second year will have to be taken care of by Andhra. I mean, math may, it will be some number between INR 150 crore-INR 200 crore. Whatever that number is. Right. Okay. Okay, my next question regarding your auto business, especially EV side. Sir, the demand for EV is increasing in Europe. Any outlook from your side, how the demand or how is your product for Europe? Any export to Europe also? I would say that the demand for hybrids has been much higher than just the demand for EVs, where we have been spending a lot of time as well. That demand looks very strong for us. In fact, the volumes are increasing, and it's helping offset some of the other issues that are there with markets. I would say the hybrid market will continue to be very strong. The EV market we have to still watch because the governments in Europe have moved the dates out by four, five years. To that extent, the EV market is not as strong as the hybrid market, but as a percentage, they continue to grow. Thank you. Rakesh, I'll request you to come back for a follow-up question. Participants kindly limit yourself to one question per participant and rejoin the queue for a follow-up question. Next question is from the line of Deeya Jain from Sapphire Capital Partners. Please go ahead. Hi, sir. Thank you for taking my question. For FY 2027, what kind of growth do we expect with and what kind of EBITDA margins are we expecting? I wouldn't give numbers. Yeah. You've seen us historically grow at a certain pace, and we're gonna keep that growth rate constant, you know. I feel that there's a positive signal and we will move in that on that basis. Thank you. Also with the margins? Yes, also with the margins. Sir, can you also provide the breakup of the CapEx that you are planning to do over the next five years? Each year, almost you can take approximately INR 100 crore from each company. Over five years, we will probably spend INR 1,000 crore. Okay, sir. Got you. Thank you so much. Thank you. Thank you. Next question is from the line of Naman from Sanghvi Family Office. Please go ahead. Hi. Hi, team. I hope I'm audible. Yes. Yes, you are. Great. First of all, congratulations on a very strong set actually. It's getting disguised because of the other income bit of it. There are a couple of questions. First is, one, you know, you said that we have a very interesting pipeline of product developed and products that are under development. Could you tell me, or would it be able, would it be possible for you to share status on, say, total number of products developed and total number of products commercialized? What would be the proportion of it, and how do you see that ramping up? Could you throw some light on that? That's just first question. Yeah. Yeah. Yeah. The second question is Okay. Okay, go ahead. Yeah. Answer the first and then maybe it'll be easier. Basically, see if whatever you develop, depending on the timeline that you have from the customer, certain products can ramp up between three months, some will take six months, some will take nine months, depending on the complexity, depending on the customer's order, depending on the contract the customer wants with you. You have to work everything backwards from what the customer wants as a portion of ramp up. Basically, you have to appreciate, if you take an average period of about six months, right? You will maybe have 125 parts that are not yet in ramp-up, but are in a process where you've developed the samples. That's a cycle, because those parts will then come into your ramp-up. They will then go into production, and then you'll have new parts that come into your new product development. It's a continuous cycle that runs, and that could be the gap. As you increase your new product development, you'll have more and more parts in the pipeline before they ramp up. That's what the number looks like today. Thank you, Naman. I'll request you to come back for a follow-up question. The next question is from the line of Pankaj from Affluent Assets. Please go ahead. I'm audible? Yes, sir. Go ahead. Good. Sir, you mentioned about the CapEx plan you have for your company, for both the companies. Just wanted to understand what are the plans for funding the same. Secondly, the growth rate of the auto components segment which you, which is part of our company, I just wanted to understand what is the growth rate for next few years. Basically, you know, at the Raymond Limited, we are sitting with INR 1,000 crore of cash, right? There's enough sitting there, plus the internal generation. Based on that, we don't see any problem in funding the CapEx. Due to that, will the parent company increase the stake? Pankaj, sorry, you're not audible. Due to that. Let me respond to this. I guess I think the critical thing is that the balance sheet of the engineering business itself, with the kind of earning growth trajectory that we are estimating itself has strengths to take care of the growth plan. It doesn't need to actually draw upon the parent company for any capital for its organic needs. To that extent, you know, we can continue to grow the business while strengthening our balance sheet also. On top of it, the safety net is that the parent company has liquidity. Therefore, which is why if you see on an overall basis, you know, we have a pretty much almost zero net debt, you know. That's something which will continue. Due to that, will the parent company increase the stake in the Raymond Limited? No, because if the businesses can self-fund itself from its cash flows and the cash flow generation and the earning growth trajectory, then you don't have to really draw on capital from parent company for the organic needs. Of course, if something inorganic happens, depending on the size, scale, et cetera, then at that stage maybe parent company will have to chip in. That is how we anticipate at this point in time, having done the long-term projections, you know. For doing INR 200 crore of CapEx, I really don't need INR 200 crore, right? It always a mix of accrual and debt. Our cash flows are supporting us. Thank you very much. Pankaj, I will request to come back for a follow-up. Next question is from Ma'am Tanya Singh, Individual Investor. Please go ahead. Hi. My question is regarding the recent order win in the build-to-spec domain. Could you throw some more light on this, please? Actually, we are not able to disclose that right now due to confidentiality, but, this is a product that we've developed for a customer, which is also designed completely by us. It's the first time we did a build-to-spec, so our goal is to look at how we can take it. It's a slower process. It's not immediate results. I'm glad that we've got our first order and, therefore, we will be spending more time on this as the years go by. No, congratulations on that. Could you throw light on how this would position us to move up the value chain? Obviously today we make components based on, and assemblies and subassemblies based on customer drawings. This would be our own product, so obviously it makes a big difference. You have to start small, so it takes time. You know, the aerospace industry is not an industry where you can just get in and do something. You'll take a few years to establish yourself into the build-to-spec area. We've just made a beginning there as one part of our value addition that we intend to bring in different parts of our business in aerospace. Got it. Thank you and all the best for the new exercise. Thank you. Thank you. Next question is from the line of Midhun Jain from Moore PMS. Please go ahead. Hi. Am I audible? Yes, sir. Go ahead. Hello. Yes. Sorry. I'm particularly new to this company. I had a doubt on the shareholding pattern. When as an investor I'm invested in Raymond Limited, what do I get? As in I actually get a share of the parent company, right? The Raymond Limited company, which has got two subsidiaries. The parent company has got about 66% shareholding in the two subsidiaries, if I'm not wrong. Can somebody please clarify, as in the minority interest gets subtracted from my, I mean, how does it work out? See, I think the very simple way to look at it is that it's a INR 300 crore broadly EBITDA company, and you own as a shareholder 2/3 of that EBITDA, so it's a INR 200 crore EBITDA that you own. There's a debt at the businesses, but as there's more than sufficient liquidity at the parent company which offsets that debt. To that extent, if you have to just simply look at the company, then you have to say it's a INR 200 crore EBITDA that you own. In a very, very simple way. About 65% of, whatever EBITDA that the company generates, right? 66.3. At the annual level. 66.3%, no? 66.3% is two-third. If company does INR 300 crore EBITDA, then you own INR 200 crore of that EBITDA, because at 66.3% is roughly two-third. I'm just making it simple for you. Of course, you know, you have to multiply by 66.3% if you want to be precise. Got it. My another question would be, since we are in our aerospace business, since we are into, turbine vanes and all that, do we have a play in the gas turbine segment as well, other than the aerospace business? Are we looking into that as a possible segment? We have looked at it, and we don't rule it out in the future because there are similarities. We have some RFQs in that direction. We are definitely looking at it. It will be very natural for our own production as well. Thank you, Midhun. I'll request you to come back for a follow-up question. Next question is from the line of Sawan Thakkar from Chris PMS. Please go ahead. Hi, sir. Across our raw material mix, so across Inconel, across stainless steel, titanium, aluminum, how much do we import and what do we import and how much is sourced from India? Yeah. Typically as of today, you import 100%, right? We have just started development of few of the materials, which are hopefully over the next six to eight months we will see some progress. In auto we don't, but I am talking specifically on aero, right? On aero, we import 100% today because you need approvals, et cetera. Slowly over the years, as we localize these materials and as the OEMs give approvals, this will actually be in the favor of not only us, but all Indian companies to get more competitive in the future, as these raw materials get localized in India. Okay. In terms of your SKUs and components, you said that you'd add about 200-250 components this year. What is the mix between assembly and components? Like is there a mix that can be defined on that side? Yeah. I would say probably 20%-25% of them would be sub-assemblies. Some would be main assemblies, and the rest would be components that you would use for those sub-assemblies or some components you would use, which are complex components you would use on your own. Typically, in the engine side, you will have a lot of sub-assemblies all on their own. Thank you. Unlike structures and systems where you could have more number of assemblies. Thank you. Sawan, I'll request you to come back for a follow-up question. Next question is from the line of Reuben from Equity Intelligence. Please go ahead. Yeah. Hi, sir. I just want to know, in aerospace, what is your current utilization? Is the growth more constrained because of the capacity or is it because of the orders? The growth will always, I don't think it is either. It is a question of execution. When you say execution, you got to have the right engineering, you got to have the right process, you got to have the right tools, you have to have the right fixtures, you got to have the right systems. It's the entire supply chain process end to end that you deliver a product and the pace at which you can do it and the speed and accuracy with which you can do it. It's a question about having the entire delivery process, smoothened out rather than just saying is it capacity or is it, you know, orders. It's definitely not orders. It's the ability to execute, and capacity is only one issue of the entire supply chain. You know, you need to get the whole story right? It works. Okay. See, we've been hearing about this huge order backlog by, you know, various, you know, bigger OEMs and all. Right now, when we're looking at this order book of INR 2,300 over five years, it's just INR 460 crore a year. Help me understand what is holding back this revenue expansion. You know, why isn't growth growing as much as the order backlog conversion? You know, I'm just trying to understand that. Yeah. You need to understand that these orders are for products that you've already made, not for products that you're making, because they are not in the contract yet. When you make, let's say, the 200 products we would make this year, those are not in the contract. Almost on a monthly basis or a quarterly basis, your order position keeps increasing based on all the new products you keep adding. This is the current situation. The situation is changing every day, every week, every month. Thank you. These are just orders that you've had in the past. This is like if we stop taking new orders, then how big the order book is. We'll not stop taking orders, right? Thank you. Reuben, I'll request you to come back for a follow-up question. Next question is from the line of Sahil from White Pine Investment. Please go ahead. Hi. Thank you for the opportunity. I just wanted to ask, what will be the capacity utilization of the current 8,000 units for a year, and what would be the incremental capacity for this vanes in the Andhra plant? The vanes, we have enough capacity in the current plant, and we've just doubled our orders. We'll be adding it in this plant itself, before we go to the Andhra plant. What was the second question? You asked two parts. The incremental capacity in the Andhra plant for these vanes. There are different kinds of vanes. The ones we do today are cast iron. They're out of titanium, they're out of steel. Some of them are machined, some of them are you can't even machine because they're made out of hard metal. There are many varieties of vanes, and depending on which variety we will get how much order, then we will, based on that, we will do our Andhra plant. We will also fill up first our current capacities here, and then based on whatever new orders come, we will move them to Andhra. Thank you. Sahil, I'll request you to come back for a follow-up question. Next question is from the line of Harsh from Toro Wealth. Please go ahead. Harsh, may I request you to unmute your line and proceed with your question? Due to no response, we move to the next participant. Next question is from Shashi Kant from Brighter Mind. Please go ahead. First of all, congrats for the good set of numbers. I have one question that, one of our peer group has recently won order from Rolls-Royce. Were we participating the, you know, the similar program? Hello? Hello? Yeah. What was the last part of your question? You know, one of our peer group or company has recently won order from Rolls-Royce. Were we participating in that program also and in the bidding and all? No. See, it's not an order win per se. There was an acquisition opportunity of an asset, which came with a lot of its own set of complexities, which is why what they have acquired. What they acquired, had a contractual term as part of the acquisition. They have just aggregated the entire contractual term of the current size of the business. It's not a new win that they have. Having said that, you know, there are lots of RFQs that we are participating with, I mean, not just Rolls-Royce, but many other customers. As we keep winning them, we will keep reporting them. Okay. just an extension of that question. What is the timeline, gap between the RFQ and the real order placements from the OEMs? Again, it depends. Like I said, you know, if you take the OEMs, they have different complexities. If the parts are very simple, then the turnaround time is very quick. In some cases, we have self-approval process, so they don't even check our parts. They trust us to do the right job. In some cases, the medium complexity, it could take three to six months. In very complex, it could go 12 months. If it needs validation, it can go even further. I think each part is on its own, but that's the reason why you have to make a lot of parts because each one will follow its own path, which will have its own ramp-up plan, will have its own growth strategy. The ability of a company to continuously make new product, continuously scale up and ramp up, that's what we are looking at. Thank you. Shashi Kant, I would request you to come back for next question. The next question is from line of Mr. Parekh from LS Finance. Please go ahead. Hello? Yes, Mr. Parekh. Go ahead. Hello. Yes. My question is for Mr. Gautam Maini, I read the call you had, I think, last year, where you mentioned that there are four levels of critical components, N1 to N4, and we work at N2. I think that tech was at least partially transferred to us by Safran. Are we planning to get into N1 level of components, the rotating components? Do we have the capability? If we are not planning to do so, why is that? Definitely, I think the wish list is definitely N1. It takes time. It took us five years to go from N4 to N3. It took us another five to go from N3 to N2. These are long-term programs where the customers really test you out and make sure that you are a really reliable supplier. You know, you have to carry heavy insurances. You have to do a lot of things and which we've done right. Therefore, there's no reason why we would not want to do an N1. We definitely are pitching, and we hope that the customers, you know, one day will buy our pitch and we can do N1 parts. That's definitely part of our wish list. Awesome. That's great to hear. Can I squeeze in one more question, please? Go ahead. This might be for the CFO. The depreciation is very high for our EBITDA, right? Like, how does the company generate cash flow? Like the CapEx, I think you mentioned in the past that the CapEx will come from internal accruals and debt. If the depreciation is so high, how do we generate internal accruals? Maybe I'm not very bright here, so maybe please enlighten me. We also have significant intangibles in our books, to the tune of around INR 800 crore. On that, we have a significant part of depreciation coming, which though in terms of calculation appearing into depreciation, but that's more of, you know, it's not really impacting our cash basically. It's rather helping us in a way. The depreciation number which seems very high to you, that's largely coming because of, you know, the intangibles that we have in our books. Our actual gross block is not that big. I'll again stick to the same statement that we have enough cash flow which is getting generated into our business for funding our further expansion. You have to understand this, depreciation is a non-cash charge. To that extent, because there are intangibles which, you know, got created out of the merger, so those intangibles and depreciation on that in some sense is actually helping the cash flow because of the, you know, the tax advantage that you get on the depreciation. It's actually helping rather than hurting. Thank you very much. Next question is from line of Vasu, Individual Investor. Please go ahead. Hi. Hello, am I audible? Yes, Vasu, go ahead. Okay. Yeah. Thank you. I just want to know, as of today, we are not interested in moving towards surface treatment, right? I mean, scaling up vertically, rather we are more interested in scaling up horizontally, right? To maintain a trade-off between ROC or margins, which we explained in previous calls. It's still that stand or we are looking for getting into surface treatment or the margin accretive processes? Obviously, we were constrained also with a lot of other things where we wanted to grow top line, we wanted to grow with customers, and we had limited space in our current location. Now that we have Andhra, definitely our plans have changed. We are discussing with all of our customers in a strategic manner to understand what will be their surface requirements over the next five years, heat treatment requirements. We're willing to be vertically integrated where it's needed. We are moving to a much more strategic level with the customers, where they can depend fully on us as a one-stop shop, and we don't have to depend for all cases outside. Obviously, this will be done with a lot of prudence not to carry on with surface treatments where there's a lot of capacity in the country, but rather to go after those surface treatments that would build a business case for us in the next three to five years. This is definitely on the cards, and we are aggressively pursuing information from all our customers as to where we should look to invest. Okay, perfect. The last one, a short one, is, can you please let me know, like, what are the steps we are taking to reduce the audit or clearances process for the new greenfield? I think when I was reading it takes two to three years to get it approved from the, I mean, various kind of certifications, right? If we are targeting by end of FY 2027 calendar year or Q1 FY 2028 kind of, I mean, we can kick off the production. Is it feasible considering the audit and clearances will be done, or it's more on the lines that we will produce the self-certified things which doesn't need external approval as such? No. It will be a combination of things, but mostly since this is a new plant and our customers would want us to make at the new plant because it will have a lot of things that they will like, including, you know, sustainability, mechanization, automation. There will be a lot of stuff that they would love in that new factory. In fact, they will actually push for us to move our products there. It would not be something painful because it's, you know, the company is already approved. It's only a question of second location. That is not a very difficult thing. It's if you're not approved by a company and you want to go and get approval for the first time, then it takes two years. In our kind of situation, that will not be the case. That will be managed very well and very much in advance. In fact, all of our customers already know about our plan, you know, 16 months in advance. Okay, thank you. with every customer how to do that. Yeah. Okay. Thank you, sir. Sir, any plans to get into single crystal materials as of now? Right now, no plans, you know, because that's not our core business. You know, that could become a supplier for us when we need to get in there. We'd like to start with the heat treatment, surface treatment, finishing, assembly, et cetera, and give a complete sort of a value-added product to our customers at this point in time. Cool. Thank you very much, sir. Good luck. Thank you. Thank you very much. Ladies and gentlemen, we will take that as our last question. I will now hand the conference over to Mr. Gautam Maini for closing comments. Thank you very much, for the, you know, for the many interesting questions, and thank you for all your support for recognizing that the sectoral performance has been great. We look forward to seeing you all in the next quarter. Thank you once again. Thank you very much. On behalf of Anand Rathi, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.