Ladies and gentlemen, good day and welcome to SPR Auto Technologies Limited Q1 FY 2027 earnings call. As a reminder, all participants and clients will be in listen only mode, and there will be a pause for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please press star then zero on your touch-tone phone. Please note that this conference is being recorded. Today from the management, we have with us Mr. Krishna Kumar Srinivasan, Managing Director and Chief Executive Officer, and Mr. Prem Raj, Executive Director and Chief Financial Officer. Before we begin, let me remind you that this discussion may contain forward-looking statements that may involve known and unknown risks, uncertainties and other factors. It may differ in valuation, discuss business risks that could cause future results, performance and achievements to differ significantly from what is expressed or implied as the forward-looking statements. I now hand the conference over to Mr. Krishna Kumar for his opening remarks. After which, we will open the floor for an interactive question and answer session. Thank you, and over to you, sir. Thank you, Sonia. Hope you can hear me well. Yes, sir. Please go ahead. Okay. Thank you. Good evening, everyone. Thank you for joining us for this Q1 FY 2027 earnings call. We hope you have had an opportunity to go through the financial results, the investor presentation and the press release, which are published on the stock exchanges and the company website. I am really pleased to share that SPR Auto Technologies has commenced the financial year 2027 on a very strong note and delivered an encouraging performance during Q1 FY 2027, as the company delivered a 51% year-on-year growth on a consolidated total income and a 27% year-on-year growth in unconsolidated EBITDA. A strong performance is particularly noteworthy, given the challenging industry backdrop characterized by elevated commodity prices, supply chain disruptions, and broader macro economical uncertainties stemming from heightened geopolitical tensions. Moreover, commodity cost adjustments normally have a time lag of a quarter for regularization customers, thereby presenting a temporary gap in the margins. Even with the above impacts, the company has delivered a strong financial performance during the quarter. Consolidated profit before tax grew by 7% year-on-year in Q1 FY 2027, while profit after tax increased by 9% year-on-year. The growth is after reflecting the flow-through impact from EBITDA, primarily contributed by higher finance costs to fund the acquisition of the automotive interiors and lighting businesses. These elevated finance costs are expected to be temporary and should normalize as the related debt is repaid. Post the GST 2.0 reform, we are seeing a phenomenal growth in both the two-wheeler and the passenger car markets. We expect this volume momentum to continue for the above segments and also for the commercial vehicle and tractor segment throughout the year. Our strategy to invest in technology and capacity ahead of time has really helped us to cater to these increased demands. This performance underscores the strength and resilience of our diversified business model, our continued focus on operational excellence, and the effectiveness of our strategic initiatives. We remain focused on driving cost efficiencies, streamlining the supply chain, integrating the low-cost automation and digitization programs across all our manufacturing operations, and optimizing inventory and logistics planning. These initiatives are aimed at strengthening the structural resilience across the business and form the foundation of our established and growing presence in the auto components industry. We continue to build on our strong leadership in legacy products while steadily scaling our powertrain agnostic businesses, which further enhances the future readiness of our portfolio. In the legacy business, we achieved a key milestone during the quarter with the successful completion of the acquisition of the piston manufacturing plant and machinery from Sunbeam Lightweighting Solutions Limited. This acquisition strengthens our piston manufacturing capacity and also enables us to meet the growing demand for all our products. I am happy to state that we are continuing to win new programs for hybrid and flex fuel applications from all our customers in the legacy business. The integration of the recently acquired automotive interiors and lighting businesses progressed very well during the quarter. These businesses continued to deliver a strong performance, reinforcing the strategic rationale for the acquisition. We remain focused on aligning the operating processes, leveraging cross-selling opportunities, and unlocking cost and operational synergies across the group. Post our acquisitions, the auto interior business has also won some very important customer programs to fuel the future growth of this segment. The electric motor and controller business has continuously exceeded all the targets that we have set for the businesses at the beginning of this year. Also, the high-precision injection molded components business has also witnessed a very significant growth during the quarter. We also continue to make a very steady progress on all our group-wide capacity expansion programs. These investments are designed to support customer programs, enhance capacity availability, and create a stronger platform for future growth across all our products. All our businesses, including the legacy engine components business, automotive interiors, lighting, the high-precision injection molded components, and the EV motors and controllers, continued to perform very well during the quarter. The power agnostic business now contributes over 35% of our consolidated income, while nearly 50% of the overall business is positioned to remain relatively insulated from the impact of EV penetration. This reflects the steady progress of our diversification strategy and the increasing strength of our group. We continue to strengthen our ESG credentials through focused investment in renewable energy and broader sustainability practices. ESG remains a very strategic priority for the company, and we are pleased to report that we achieved a CDP B rating for climate and water disclosures. We obtained our TUV certified sustainability assurance. We secured certifications under ISO 14064, ISO 50001, ISO 46001, ISO 17029, and ISO 27001. We were also recognized with an EcoVadis bronze medal, putting us in the top 35 percentile globally on sustainability achievements, Standard & Poor's highest ESG rating of 2 in India, and the CII Award for Corporate Sustainability, further reaffirming our commitment to responsible business practices and long-term sustainable value creation. We have also continued our journey of winning many awards from all our customers across the country. We have also got our TISAX certification done and are happy to state that from a cybersecurity angle, we are completely well-positioned to be able to counter any possibilities in the future. Looking forward, we remain focused on disciplined execution, strategic investments, and sustained operational excellence. Backed by a diversified product portfolio, long-standing technology partnerships with global industry leaders, and deep customer relationships, SPR Auto Technologies Limited is now well positioned to drive its next phase of growth and create sustainable long-term value for all our stakeholders. I thank you all for all your continued support, and I am looking forward to taking your questions and request the moderator to open the floor for question and answers. Thank you once again. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star then 1 on your telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handcuffs while asking a question. Ladies and gentlemen, please wait for a moment while the question queue assembles. The first question is from the line of Radha from Motilal Oswal Financial. Please go ahead. Hi, team. Congratulations on the half improvement and actual performance. My first question is, Antolin- Sorry to interrupt. Sorry to interrupt. Your voice is not clear. Yeah. Yeah, it's better now. Yeah. Yes, sir. Antolin Global has introduced several next-gen interior technologies over the past few quarters, like electrochromic sun visors, proximity solutions integrated with human machine interface, emotional lighting, et cetera. To what extent does SPR Auto Technologies India have access to these technologies today, and how are they being localized for the Indian market? Do you see these differentiated capabilities becoming a competitive advantage in getting new businesses with customers? Yeah. Thank you, Radha. We have an access to all the technologies that are globally available and tested within the Antolin portfolio. As you all know, we have already signed a long-term TLA, which is a complete licensing agreement. We have all the solutions available. In fact, we are working on a number of programs with end customers for various HMI initiatives, as well as newer programs for headliners, dimming visor technologies, and others, which is all being tested with customers. We are looking forward to, once they fructify, then we will be in the right position to come and inform all of you with regards to all the new businesses that we are working on. We are happy to state that we are working on all the technologies. All the technologies are seamlessly available to us. We will be probably amongst the frontrunners to introduce some of those technologies which have been time-tested elsewhere in the globe with Indian customers. We are already working on it. All right, sir. Let us keep it here. Second question, sir. Eaton U.S.A. has shut down its engine valves plant in the last calendar year end. Are you witnessing a boost in exports due to this? Apart from this, what are the other key growth drivers in the export segment for business? Yeah. Eaton is basically mostly in the engine valve segment. They do not operate on the piston side. As far as the engine valve segment is concerned, we do have the growth. We are working on number of initiatives to be able to meet our customer programs. The mobility solutions of Eaton has been now sold to Dana, as you might have heard. We have to see as to what exactly is the strategy of Dana to grow the business here in India. So far as India is concerned, I think we lead the stack with a fairly good market share across all customers and across all industry segments. We are fairly well-entrenched with most of our customers to be able to cater to their demands. Understood, sir. Sir, last question is, Global has a lot of products in non-auto, like office automation, measuring instruments, et cetera. Are we supplying these components from the Indian entity to our customers as well? What can be the scale of non-auto portion of the business in the next three to four years as compared to where it is today? What are the delta in margins of non-auto compared to auto? We already supply to non-auto components. We also make non-auto components in India. We already supply to medical industry, we supply to sports industry, we supply to music industry. As you know, these segments do not have very high volumes. They are all low volume segments. That way for example, the music industry, we supply the complete keyboard for some of our customers like Yamaha and others. The keyboards, et cetera, they are not sold in millions. It is not like in automotive, so it will be on a lower side. We do not normally give the breakup of this segment, but it is a sizable segment for us, and it is a good margin business for us. Thank you. Understood, sir. Thanks and all the best to the team. Thanks a lot, Shail. Thank you. The next question is from the line of Gokul Maheshwari from Anvika Capital Advisors. Please go ahead. Thank you for the opportunity. PK, sir, if I may ask, on the what kind of opportunity do you see for our legacy business once we cap on our interiors? Does this increase our realization or a chance to consolidate our market share in this product line? Yeah. See, we are already working with our customers on the CAFE norms, and based on the new CAFE norms that have been released, they have already submitted products which are under testing and validation with the customers. Most of these products require a different kind of an approach with regards to frictional reduction as well as reduction of exhaust gases and others, for which completely new technology has been introduced in terms of coating and in terms of the piston ring manufacturing strategy. All this has already been done. We have already invested ahead of time, and the technology is all available within our manufacturing setup that we have in Ghaziabad and Patparganj. Our engineering teams have well progressed with development of these technologies. So we are well-entrenched with all our customers. But does this increase the realization for the same product which we were supplying earlier? Yeah, to some extent, yes. Because with all the new technologies, the cost is also more, the realization is also more. Okay. Is our competition also following us by offering this to their OEM customers? I would say that we are leading the game. Okay, great. Secondly, sir, just on the M&A front. In the past call, you have mentioned that you would want to look to expand our scope of offerings and look for M&As. Just a question, given where we are in the automotive cycle, how are you protecting yourself? Because the industry is doing very well in the last 12 months or so, more specifically after GST cut, and this could be possibly closer to peak sales or peak profitability from a cycle perspective. So how are you safeguarding yourselves when you are looking at potential opportunities over there? Well, if I've understood your question right, you are asking me how we are safeguarding with regards to newer M&As and doing it at the right deal price and all that, right? Right. Right time and right price, actually. Yeah. We have a very detailed working that we do with our M&A team. The M&A team looks at multiple angles. It's not only the angle of multiple on the purchase, but it's a very detailed exercise that we do with regards to the overall strategy of investment. Of course, take all the future outlooks in place, and we look at the current situation of the industry as well as look at the situation of how the industry is growing over the next 5 to 10 years' time. Then do a lot of forecasting to be able to take a decision with regards to our M&A selection. Okay, thanks. Just lastly, in the non-auto business, in the annual report, there is a mention of systems for railways, snowmobiles, compressors, et cetera. What could be the contribution of this segment to our current size, current business, and how do you see this business shape up over the next 2 or 3 years? It has been a sizable business because this is, again, as I said, this is a segment which is growing for us. If I give one figure, it will change tomorrow morning because it is a continuous growth that we are having, both in terms of the compressor industry, the marine defense, and the various other applications like snowmobiles and others. At this stage, to give any number percentage to this will not be correct because we expect this percentage to go up. It's a sizable business now. Over the last four years, I think we have grown almost at the rate of 15%-20% in this particular segment. We have entered into various applications, including lawn-mowing applications and others, and all this has really helped us to maintain our growth trajectory and also maintain continuous growth, which is better than the market growth. We have always maintained that we want to outgrow the end markets. Great, sir. Thank you, and all the best. Thanks a lot, Gokulji. Thank you. Next question is from the line of Vijay Pandey from Axis Capital. Please go ahead. Hi, sir. Thank you for taking my question. Sir, just a couple of questions. Firstly, if you can give some breakup between the plastic business, the interiors business, and EMFI, the revenue and EBITDA for the first quarter. Normally, within the quarter, we don't give the breakup. In the first half, you will get the breakup. But you have the breakup of the end of last year. You can see that more or less that kind of a trend is being maintained even today, because we see an all-round growth across the auto industry, thanks to the GST 2.0. As a result, we see that the end markets are really doing well, and we are seeing a full growth across all the segments that we operate in today. Also, actually, just want to understand how the margin profile is looking for the plastic and interiors business. So I think it is around 18%-19% EBITDA margin, and I'm sure that was at around 7, 8. So just want to see has this- We have significantly improved the CES business also. That has come with a lot of synergies coming out, as well as we have streamlined a lot of things with regards to the fixed costs, and we have taken a lot of actions with regards to improving the cost structure of the company, which has really helped us to improve the margins. As of now, I can say that we have crossed the double-digit figure, and we are in the early mid-teens, I should say. Okay. That's good to hear. Thank you, sir. I want to know, the industry has definitely grown at 20% in Q1. But I would like, especially our standalone business, legacy business, where the growth was around 20%. Just want to know any reason for lower performance versus industry? If you can throw some light. Yeah, I will quickly attempt to answer your question. Basically, if you see, the industry was also carrying a good amount of stock. If you go by the manufacturing that has been done, not by the sales, because sales normally carry a lot of stock coming from the previous year. So if you really see the manufacturing, the manufacturing growth has been in the region of around 12%-14%, and our growth has been over 16%. So we have actually outgrown the industry, even as we speak. Within the mix, if you see, the two-wheelers have grown by almost 20%. The passenger car has probably grown by around 11%, from a manufacturing number. 19% and 11%, to be exact, from a manufacturing number. The commercial vehicles and the tractor industry have grown by somewhere around 7%-8%. The other industries have grown by something like 4% or 5%, including the compressor industry. As a result, you'll see a mix of all this coming into the end product, this segment. Overall, considering that the exports got affected because of the war situation, where there was a tremendous impact on the export side. Also, because of this sudden rise in the two-wheeler and the passenger car industry, the manufacturing had to be a little bit tight towards the OE industry. As a result, you will see that the growth impact is fairly significant considering that we have grown at this percentage, which is better than the market percentage, even after considering all these segments of the market. I'm happy to state that we have actually satisfied all the segments of the market with regards to our supply. And sir, over last one month or last one and a half months, when the concerns started to normalize in the situation, did the exports pick up? Did we see some pickup in exports in this quarter? Exports are still quite affected, especially in Europe and in America. Both U.S., America, and the Middle East markets, including Egypt and others, KSA, Egypt, and others, have been badly affected. They have not still picked up, and it is quite slow, I would say. There are still a lot of ambiguities in the overall supply chain with regards to what will happen with regards to a very seamless supply chain situation that we had earlier. I personally think that it will take some more time for things to normalize. Commodity prices have gone to unprecedented levels. We have had to face a very unprecedented increase in the commodity prices. But we have been able to manage it, and we see it is now slightly coming down. Hopefully it should all normalize within this fiscal year. Lastly, sir, just if you can probably give us some of the technologies and some of the management business, some technologies which we could see over the next one or two years, that would be helpful. I think I spoke in the earlier question. The number of technologies on which we are working on, including HMIs as well as the immersive technologies, the technologies with various kind of pillar trims, backlit pillar trims, the floor consoles, et cetera. A number of areas on which we are working on. Okay. Thank you, sir. Now I will just open the floor. Thanks a lot. Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants and sponsors, please limit your questions to one participant. The next question is from the line of Harsh from Seven Rivers Holding. Please go ahead. Yeah, go ahead, Harsh. Mr. Harsh? Current participant has been disconnected from the call. We will take the next in queue participant. The question is from the line of Sanjeev Prasad from Kotak. Please go ahead. Sir, am I audible? Yeah, loud and clear. Go ahead. Sir, this EBITDA impact of 300 million INR that was mentioned in the investor presentation, are we able to foresee price hikes from the OEMs to cover this on, and any timeline by which our margins can normalize? No, as I said, this is the impact which has happened because of commodity prices and also the impact of our interest costs that we have paid. To a fair extent, it has been covered up, as you can see from our financial results. It's certainly better than if you really discount the fact that we have had to pay the interest on our NCDs. If you really take that out, then you'll see that our performance has been really in line with our previous quarter's performances, and we continue to maintain those performances, and I don't see any reason why we will drop further. Sir, my question was more on the, not on the finance part, but more on the EBITDA impact because of budget rates and commodity inflation. Do we need to ask for price hikes from the OEM or like We have a contract with most of our customers. It has a timeline delay. Normally, there is a delay of a quarter with most of the customers. That's how the industry operates. That's why what will happen is whatever is the commodity increase that we have had this year, based on the average commodity prices, we get the pricing freeze for the next quarter, and that gets covered in the next quarter. So we already have a back-to-back arrangement with all our customers. Not only for our filter business, even for our plastics business as well as our motors business and the interiors business. Okay. And sir, for the motor controller business and plastics business, can you kindly share what kind of revenue growth have you witnessed year on year in these two segments? Last year, we grew by double. I am hoping that we continue that trend. I am pushing my team for that. Then we will certainly continue to outgrow the markets. Yes, sir. Sir, the last question is for the customer engineers and join business. Do we have a margin target that we want to achieve? Can we bring it to the standalone kind of margin initiative? Are you focused on that? No, I already replied this to the earlier question. Yes, we have improved the margin and we have improved from the earlier 17% that they were operating on to almost, let us say, the early teens. Okay. Thanks. That is enough information. Thank you. The next question is from the line of Harsh from Seven Rivers Holding. Please go ahead. Good afternoon, sir. Am I audible? Harsh, go ahead. Sir, I was referring to slide 8 of our presentation wherein it is mentioned that production volumes have grown by 22%. When I compare that to our standalone revenue, which has grown around 12.5%, how do we reconcile it? Normally what happens is volume needs not necessarily, because the mix changes in the industry. Even if you see our end customers. Overall, post GST 2.0, what has happened is the mix has changed. They have gone in for more production of low-end cars. Let me not put it as low-end cars. It is basically smaller-sized cars, smaller-sized vehicles, because the demand for that is more both in the rural and the urban segment. Automatically, the realization price per piece changes as we have those kind of products going in more. You will find that by value, the realization could slightly vary because the mix changes drastically. Okay. Another one. What is important is to maintain the certain margins that you want to maintain, which we have been able to do that. Another question is on the margin side. Sir, if you look at the standalone business. Now I am comparing the HCF in Q4 FY 2026 with Q1 FY 2027. Speaking of business performance and gross margins have gone up on standalone business. EBITDA margins have come down by 200 basis points. What explains that? That's what I explained. The commodity prices. You have a quarter delay in the commodity prices, and you'll see that No, the gross margin has improved. Between Q4 FY 2026 to Q1 FY 2027, gross margins are almost intact, yet the EBITDA margins have come by 200 basis points. No, that's what I said. It's a multiple combination of mix plus volumes. Also the fact that when I say mix, it also means the mix of our overall business within our portfolio, the kind of mix that we have. So overall, it shows that some of our areas of, let's say, aftermarket business and other things have. Normally in the first quarter, we always have a lag. In the first quarter, if you really compare the first quarter of last year, you'll always see that lag. Okay. Last question. Is any update on the railways and any acquisitions that are in tandem? Our team is working on the acquisition part and there is a lot of work going on there. We will inform all of you guys at the right time. As far as railways is concerned, I think we are progressing as per target. Sure. Thank you so much. Thank you. Thank you. The next question is from the line of Sanjay Shinh from ICICI Prudential Financial Services. Please go ahead. Yeah. Hi. Good evening, sir, and congratulations on a great set of results. I hope I am audible. Yeah, Sanjay. Yes, sir. Good evening. I think just following up on the questions from the previous participant, I think what we are trying to understand is our gross margins are intact. Sequentially, our stock costs as well as our OpEx has gone up. I understand there is probably some impact from the minimum wage hike as well here, right? Just on that, and also those other expense would include some sort of one-off expense, because since we are just integrating Antolin, and do we consider this as a new normal or do we expect this mandate to go down as we get the synergies kicking over the coming quarters? That would be the first question. No, I think, again, the overall mix impact has an impact. While the gross margin could show the improvement, you cannot compare it sequentially with quarter four of last year. Those mixes are completely different. So you will have to see it with the mix of Q1. The mix of the market also makes a big difference. Both the things come together. Of course, we have our normal wage increases that we have every year, which happens normally during the first of April. That has a small impact on the employee costs, that is the base that you see. Otherwise, we are well within the targets. Got it, sir. Also, just across until the wage hike has seen an impact, and since we are also in the northern region, could you broadly give directionally some idea about how much the wage impact has been this quarter, and how are we seeing the impact of- Look, those internal figures we do not normally give, Sanjay-ji. But the good part is that we have been able to retain the team. The team is doing a fantastic job. All of them are very motivated to work in the kind of atmosphere that we are presenting to them. The team is doing a fantastic job. Okay, sir. Thank you so much, sir. Good luck. Yeah, thanks a lot. Thanks. Thank you. Next question from the line of Divyansh Gupta from Latent. Please go ahead. Hi, sir. The first question is to just understand the timeline from when we supply, let's say, pistons to our OEMs to their production timeline, what is the typical gap? Come again. There was a small drop in your voice. I will repeat the question. Basically, let's say we supply X number of pistons to, say, Maruti on 1st of April. How far ahead in their production line will that be? In their production line? I mean, what is the timeline? It varies. Product to product, it varies. Some of the products, when the demand is very good in the end market, then those products go within maybe less than a month's time. But if the products are depending on the kind of stock levels that they operate across various operators across the country, it varies. It varies from time to time. But on an average, you can see the kind of volume growth that Suzuki is having, and we are going quite well with it. We have a fairly good market share. No, I wasn't specifically asking for Maruti. I just took Maruti as an example, as a name, as a case. Even others. Everywhere it is the same story. On average, the product when we supply, we, of course, do a lot of things to supply them. There are also requirements that we should supply just in time as the manufacturing takes place. Of course, their manufacturing, how much time they will take to supply to the end market, that is a question that you have to probably ask their customers there. Got it. The second question was, just if you can say what would have been the growth of our consolidated business fix of Antolin, excluding the put and not Maruti. If excess Antolin would have, what would have been our growth? Top line only. I think it's over 16%. One six. Got it. And sir, the last question, with the government trying to push in higher blends of ethanol, we have realized that the E85 is what we understand. Yeah. The question that I have is, what are the kind of conversations we are having with our clients? Let's say we actually build these levels, would it lead to more CapEx just to support higher blending, or currently we can also support higher blending? How far ahead or how far we are- See, what happens is, when the blending goes on a higher side, the product undergoes a change. Because of more water content and carbon content, you have to improve the kind of coatings that we have on the piston as well as on the ring. We have already tested all the products that is required by our customers right up to E85. Now, the strategy of what they want to introduce into the market will depend on various geopolitical situation-- Sorry, political situation in the country as well as the end customer's market needs. As far as we are concerned, we are ready with the products. Every segment of the product, whether it is for E20, or whether it's for E40, or whether E85, will undergo a change, and the price is different because of the content change that happens. With most of the customers, they have already signed up. The products are all tested for our products. We don't know about what other products has an impact because of E20 or E40. We feel that this situation should get addressed quickly, and hopefully, the customers will start going full business. As far as we are concerned, on the flex fuel side, we are completely ready. My question was. My question was, let's say I supply 100 pistons to Maruti. If we are doing for E20 versus, let's say, E40 or E85, to provide the same volume, do we need to do certain CapEx? That's what I said. I think I answered this question. I think it requires different kind of plating, and we have enough capacity for that. Understood. My fault. Not on my side. Thank you. We'll take the next question from the line of Pravesh Varma from BOI AXA Investment Managers. Please go ahead. Yeah. I just want to understand our gross margins on the standalone products have been around, the past two quarters have been around. This was what we have seen historically. Is this just a commodity set or any other product mix or lower export share? If you can just throw some color here. Niraj, I think I answered this question. It is a mix of both the product mix as well as commodity set. Okay. We have normally a gap in our recovery with our customers, as far as I explained. I think I explained this in the earlier question. Okay. We can try to assume that we will see recovery in this and it's such a normalized scenario. We are not going to lose on our margins. What would be our gross debt currently? If you can tell again. Net debt is around INR 550. Sorry? Our net debt is around INR 550. You can see it on our balance sheet that we have declared also. Okay. This is as of June and not March. As of June, yeah. As of this month, it will be even better. Okay. Yeah, that should come, I think. Yeah. Thank you. The next question is from the line of Raj Desai from FIML. Please go ahead. Yeah, thanks for the opportunity and congratulations on good set of numbers in this challenging environment. Three, four questions, sir. First is, this particular order will eventually, if you look at annual basis, we will recover this from the customer, right? Normally, you have a gap of a quarter. We are hoping that it will all get normalized in this quarter. Okay. Second question is, if you look at exports, I understand the environment outside India is pretty bad in terms of market not recovering on the bottom though. What if one is to understand, over next three, five-year kind of horizon, how should one understand export play for us, especially in the legacy business, right? Because especially as market is getting consolidated. What are we doing? If you can give some more detail, how are we approaching this over three, five, or 10 years? It is a mix of end market that is happening in exports and also the issue of some of the people reducing capacities. As you heard in the previous question, Eaton has closed down some of their plants, Indian plants in the U.S. It's a mix of both. What we see as a possibility for us is that the end markets will recover because once the geopolitical situation improves, it will suddenly recover. The possibilities of markets opening up for us is always there and we are already working on it. Both the things seems to be quite positive for us moving forward. I don't see any major issue. If you see, even under a very tough geopolitical situation, the whole of last year, we delivered almost 2%-3% better results in exports coming out of different segments of the market that we have been able to develop. That also was for partial of the year. For this year, I hope that we will get the full year benefit. At the same time, we are continuing to grow into newer segments and newer areas and with newer customers which will really help us to grow the exports. Frankly, I see there is a very, very positive side for us. Just one follow-up on this. See, technology partners also have their own customer base and market policies. When we are looking at business, say in U.S. or Europe, is there a limitation for us to explore and go and approach for new business wins in those markets or how I can get on it? We have had clear agreements with our technology partners and we have always worked within those precincts of those agreements that we have in the previous years also. Whatever you see is always relative to the previous years and I am seeing that this is going to be positive going ahead. I do not see any issue there. Okay. Just last question, sir. If you look at the Tata subsidiary, for FY 2026 we had seen a margin moderation and a price drop, right? What really happened there? If you can give some color. It is purely a market mix situation there and the product mix also. That always, if you really compare, you have to compare it to the first quarter of last year. Do not compare it on a sequential because always in April we do have a drop in the mold sales and others. It always happens that way. No, I was actually asking about FY 2026 as a whole for Tata. Yeah. There was a drop and there was a margin moderation and there was a de-growth in profitability on a full year basis. Yeah, it is purely a sales mix. I do not think there is a major issue on any drop in prices. Okay. Last question was on EMFI business. I think we have now commissioned the capacity and based on your earlier communication, capacity can go up to a peak sales of INR 108 crores. So where are we in that process of ramp up and any color on new order wins? It was only because of the ramp up, because of new investments that we have done in Coimbatore that we have been able to double the sales last year. That is only for part of the year, because we commissioned it sometime by end of December only. So this year, we get the full benefit of the full capacity that we have created there. We are really progressing very well. In the very first quarter itself, we have done quite well. Okay. Thank you. Thanks, Veeraji. Thank you. The next question is from the line of Preet Johny from Care PMS. Please go ahead. Preet. Yeah, Preetji. Please go ahead. Hello, am I audible? Yeah, Preetji. Please go ahead. Yeah. My first question is on the line of margin. Like we have said that of all the acquisitions we have done, we have transferred margin from single-digit to low double-digit, and we are aiming to a higher double-digit. I wanted to know what are the margin drivers. Is it by price, which we are getting to decide? Or is it from the operating leverage? Or is it from the expenses which earlier, pre-acquisition, they were into the place which we have removed? If you could give some highlight on the same. Thank you, Preetji. There are many actions due to which this starts happening. It is not only related to actions on the shop floor, actions on improvements on operations, improvements on supply chain, improvements on some of the insourcing that we are planning. Lot of actions. So it has a time period for that, and over a period of time, you will see the improvements happening further. Thank you. Second question is on the line of with the current capacity utilization, what peak revenue can we expect? See, capacity is something that we continue to keep on investing. As I said, we bought the Sundram lines, which are a fantastic capacity for the short distance. So the capacity is a dynamic number. They will keep on changing. So we have to continue the investment. We will continue to ensure that we are able to meet our customers' demands. So we are putting all the money at the right place and ensuring that we are able to meet the customer demands. Happy to state that in the first quarter, we have met our customer demands and have maintained a fairly good mix so that we are able to maintain our margins. Not on piston. On the three acquisitions that you did- All What would be the- Everywhere we are putting in a lot of money. That is what I said in my speech, that there are capacity expansion programs going on almost in every place, right from our plastics business to motor controllers to even our interiors business and also our legacy pistons business. Thank you so much. That is it from my side. Yeah. Ladies and gentlemen, in order to make sure that the management is able to answer questions from all participants, please limit your question to two participants. The next question is from the line of Varun Arora from Safe Enterprises. Please go ahead. Thanks for the opportunity. My question is regarding Antolin India. You mentioned about some new wins. It will be great if you can give some customer-wise idea in terms of share of business. My understanding is really that Antolin India was probably not investing prior to being acquired, and customers wanted them to make certain investments. Under now SPR, you also mentioned that you have made some investments. Now, can you give some idea in terms of how our share of business could improve with existing OEMs? See, if you really see Antolin's business, Antolin's business has been quite strong. They have a fairly good market share with all the other customers. All the customers. We have maintained those market shares, and we are seeing how we can go further. As far as we are concerned, we have opened up all the possibilities to invest, and all our customers know that. Customers know us right from the beginning. Almost all the customers are similar. We have contacts with all the levels of the customers, both for our legacy business as well as all our other businesses. So we have a fairly good confidence. The customers have a good confidence on the SPR Auto Technologies that we will continue to invest and make the right investment for them. So we do not give the exact figures, but we are continuing to invest. At the end of the year, you will see all the details. Sure. On subsidiaries, we have seen a good margin improvement. You mentioned quickly into Antolin margins have come to early teens. I think competitors are operating at early teens to mid-teens. Is it fair to say that SPR, our profitability, generally we do a good job across the businesses. Is it fair to say that we can kind of get to mid-teens level even for Antolin? Well, I hope we can. We are pushing the teams, and we will continue to see how we can make further progress on our margins. We have number of actions lined up, and I think all of them are working, which is seen with the result. I do not see any reason why it should not further improve. Just to follow check, related to margins. Is margins improvement also driven by EV subsidiary or just absolute Q1Q margin improvement? No, all the subsidiaries have done well on the margins. Right. Because EV subsidiary would have got the maximum operating leverage, right? With the volume ramp-up. Yeah. Everybody has got a good margin improvement. So I must say that all the companies have done really well. Okay. Thank you, sir. Yeah. Thank you. The next question is from the line of Nikunj Mehta from Padma Ventures. Please go ahead. Yeah. Hi. Thanks for the opportunity. Am I audible? Yeah, Nikunj. Please go ahead. Yeah. Just a couple of questions from my side. One is that from the fundraise which we have taken the board approval from, I just wanted to understand how much is going to be used for acquisition and how much will be used for debt repayment. I don't normally give this breakup. We are looking at various things. See, money is completely fungible. We already have money sitting on the balance sheet. We do have plans for further investments. We have plans for the repayment of debt. At the same time, we also have to continue to invest on all our businesses. It's a mix of everything. And good part is that it will be put to very good use, and it will be put to the areas of growth. And we continue to look at excellent business opportunities ahead, and we are quite confident of using the money well. Okay. Just a follow-on question on this one, that from an acquisition perspective, now as we have moved over the last two years, our acquisition size has clearly increased with Antolin being the largest one which we have acquired. How should we look at now going forward? Because at the console level, our size and scale is increasing. Is there any threshold in terms of acquisition amount or the business which you want to acquire? Is there any threshold or something like that which you have in your mind? No, Nikunj, normally the acquisition has to stand on its own legs with regards to all the parameters that we have in our evolution. We completely ensure that it falls into the respective parameters that we check on. Only after we tick mark on all the issues related to technology, future growth, markets, and so many other possibilities that we really assess. It could be INR 300 crore or it could be INR 500 crore or INR 1,500 crore. We can't really go by that. The good part is that the company now has a good appetite, and it has a good means of managing a fairly good appetite in terms of managing their money. We'll continue to do till the time we know that for sure we are able to service it well and- Okay for all our stakeholders. From a balance sheet perspective, is there any metric like a net debt to equity or a net debt to EBITDA which you would want that this other threshold we will not cross this? We have very clear parameters on that. Very clear parameters internally. We can always work out the net debt to the equity that we have. It is fairly very low. Is it fair to say that we would like to keep it at one as a higher side net debt to equity? It could even be lower than that. I do not think we will ever Fairly less. At present it is only 0.2, so we do not see any reason why we have to go even up to one. Okay. The last question from my side- In our balance sheet, yeah. Last question from my side that you have mentioned that you want the consolidated margins essentially should over the time kind of merge with what we are doing on the standalone side of the equation. In that journey, how much time do you see that you will be able to kind of meet that? You mean investment in CG business? No. The margins in the consolidated level to reach at the- Sorry to interrupt, Mr. Nikunj Mehta. Please press half to queue for any follow-up question. No, this was just the last one from my side. Just to answer this question, Nikunj, we are continuing to grow our margins. You can see that our consolidated level, if we are able to maintain the high teens, I think it is excellent possibility and it gives us a lot of opportunity within the group to do many things, both in terms of growing capacities as well as in terms of investing for the future in future amendments. Okay. Thank you so much. Thanks. Next question from line of Ravi Purohit from Securities Investment Management. Please go ahead. Yeah. Hi. Thanks for taking my question. Just two questions. One is on this EMFI business which we have. If you could just kind of give us some color on what kind of capacities have we created and what kind of product. Because when we go on the Okay. Website of SPRMCI. We see products like axial flux motors or drone motors or electric marine motors. There are quite a few interesting products that are there listed on the website. This business does not really get too much spoken about either in our presentations or on calls. If you could just spend some time, and I think we have commissioned a capacity like you had mentioned in December last year. If you could just share some insights as to what this business is, how scalable it is, what kind of products are we doing? How big can it be over a period of time? What are the industries it is addressing? We put our electric motor and controller facility. We are probably one of the very few who make both the motors and controllers together. We have a couple of lines for electric motors and controllers. Electric motors standalone and controllers also. As far as electric motors is concerned, we make traction motors. We can make PMSM motors, non-PMSM motors, ferrite motors, as well as the synchronous motors, as well as others for the two-wheeler industry, the car industry, that is the passenger car industry, and also the truck and bus industry. We already have products which are under various stages of validation with various customers. I would like to state that we have really grown very well in this, and we have almost become a very sizable player today as a motor and controller supplier across the industry. We don't normally give the market share, obviously because this is changing by the day. We are getting new customers, it's changing by the day, and it's really not right to give one number and then tomorrow say a different number. We are as yet not giving any kind of those details because it's evolving, and I am very happy to state that last year we doubled the turnover and we continue to grow very fast in this segment. What kind of capacity do we have right now? At peak capacity utilization levels, what kind of turnover can this business do? Is it like a what kind of Is it a INR 10 million- I will tell you, Ravi-ji. If I add one winding machine, capacity will increase by more than 15%. I cannot give the capacity number. It is a figure which will keep changing as we keep putting a little bit of investment here and there. Normally we are not giving that because then it restricts our growth targets. Neither do I want to tell the team that we are not going to invest. For me, it is important to get the business and meet those businesses, and we will continue to grow. Okay. Because some of the products like the axial flux motors, not many companies actually do it in India. I was wondering as to what kind of R&D work is being done, what kind of technology do we have there, and what is the source of the technology for this business? I think I have answered in my previous calls. We have a good technology partner, EMFI International, based out of Singapore. We have a fairly good technology availability. We have also tie-ups with Linyuvo for our controller, and we are able to cater to all the requirements that is there for the Indian market as on date. Okay. Would you, now we have. Sorry to interrupt, Mr. Rahul Raw hit. Yuki, please we can put you on for any follow-up questions. Okay, thank you. The next question is from the line of Vijay Kumar from Axis Capital. Please go ahead. Yeah, Vijay. Just want to understand about the capacity expansion which we were discussing for Jhajjar and TGPL. How is it looking and when can we expect revenues from there? Phase four expansion in Jhajjar has already started, and we are building up a new plant just adjacent to our existing plant. We have another five acres of land which is adjacent to that piece of land, the factory that we had where we have got three phases of expansion already done. Now we are planning for a fourth phase of expansion in Jhajjar. Similarly, in TGPL, we already have the two plants in Noida, and in the second plant, we have completed the capacity available, and we are getting These plants will start generating revenues over next three years or would it be faster? As far as the new business in Jhajjar is concerned, I think we are expecting it to start generating revenues by next year, early next year. TGPL is already on the process. Okay. Just to follow up on the previous question, if you can help us understand the key OEMs or key OEMs that we supply, because even in the EV segment- Almost on a monthly basis, we've got addition of new customers happening. So it's very difficult for me to give any particular names and miss out the others, which would be impacting my business. So kindly believe in us that it's not that we have doubled the volume just by talking. It is double the volumes just by getting new customers. So we are growing the business and it's doing very well. Like Even if you could give a bit of color- Mr. Vijay Pandey, sorry to interrupt. Sorry to interrupt, Mr. Vijay Pandey. We may request you return to the question queue for any follow-up questions. The next follow-up question is from the line of Gokul Maheshwari from Anvika Capital Advisors. Please go ahead. Yeah. Thanks for the opportunity again. Just one question, sir. Just if you could comment on the Antolin business, how does our current business or standalone, or whether it's Aath or TGPL, work along with the Antolin business with respect to providing synergies or certain products, et cetera, which can be catered by, or providing raw materials, et cetera, to the Antolin business. How does operational synergies come in play? Yeah, it's going quite well. And we are looking at, all this takes a lot of time with regards to approvals, getting the clearances, getting the dies, tools, and then getting the end customer approval. All this takes time. We are progressing quite well. And already the synergies have started. And the teams have started collaborating quite well. Overall, let me put it this way, the integration of the team within the overall SPR management has been extremely good. And that's what is showing in the results. Okay, sir. Thank you so much. Thank you so much, Gokulji. Thank you. The next question is from the line of Ajay Prakash Ahuja, individual investor. Please go ahead. Hello, am I audible? Hello. Yeah, please go ahead. Please go ahead, Ajayji. My question is regarding the Antolin integration. Three years from now, what has to be true for you to say that this acquisition has been truly successful? Beyond the financial metrics I am asking, what would be the early strategic indicators that tell you the integration is progressing in the right direction? This is my question. Yeah. It's a very interesting question. From my standpoint, at least from the standpoint of the management, I can tell you that we have four or five clear parameters based on which we say that it has been successful. I already say that it is successful because the integration of the teams have happened well. Teams are working together quite well. There's a good collaboration. There's a good amount of culture that is getting developed across all the companies that we have done M&A. Almost all of them we are trying to build in the same kind of culture in terms of how we work. It's going to be more about people that I'm going to say, because automatically then once we know that our people are all aligned, businesses start thriving. So we are quite confident of getting that to happen. We provide a very professional management, and that really helps everybody to grow within the umbrella of SPR. Thank you, sir. Thanks a lot. Thanks, Ajayji. Thanks. Thank you very much. We will quickly take this last question to conclude the question and answer session. I would now like to hand the conference over to Mr. Krishna Kumar Srinivasan for closing comments. I know we have overshot the time. I know that some of the people have also not been able to complete all their questions. I really request all of you to reach out to our so that we can answer back one on one. Please do not feel otherwise that we have not been able to take all the questions because time-wise we were limited. We have already overshot by almost 15 minutes. Very happy to see the amount of questions that we have had and the kind of questions that we have had, which really talks about how deeply people are really analyzing the company. That gives us a lot of confidence that we have great stakeholders who are supporting the business to actually grow. We thank you once again for all that support that you are giving. Thank you for joining us today and for asking such valuable questions. We hope that all your queries will get answered, even if some of them have not been answered so far. You can reach out and we will answer it back. Thank you once again for the Secretariat Cell and the investor relationship partners at Ernst & Young who have given the full support. Thank you once again for everybody who have joined the call, and thanks a lot.