Ladies and gentlemen, good day and welcome to Tempsens Instruments (India) Limited Q1 FY 2027 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Now on the conference, over to Mohit Kumar from ICICI Securities. Thank you, and over to you, Mr. Kumar. Thank you, Niro. Good afternoon. On behalf of ICICI Securities, I welcome you all to the Q1 FY 2027 earnings call of Tempsens Instruments Limited. Today, we have with us from the management, Mr. Vinay Rathi, Managing Director, Mrs. Priyanka Menaria, CFO, and Mr. Aryan Rathi, Head Global Sales. We will begin with the opening remarks from the management, which will be followed by Q&A. Thank you, and over to you, sir. Yeah, thank you. Before we begin, just a brief note. Some of the statements what we are making on the call today, including our outlook for the year, may be forward-looking and are based on our current expectations. They are subject to risk, uncertainty, and actual results may differ materially. The Q1 FY 2027 financial results are unaudited and subject to limited review by our statutory auditor. Where we refer to peak revenue potentials of new capacity, these are indicative revenues at full utilization. It is neither a forecast nor guidance. All figures are consolidated until we say so otherwise. Please refer to the disclaimer in the investor presentation filed with the exchanges. Yeah, thanks. Since this is our first call, I will start with a framework on how we think about Tempsens, and Priyanka would then guide you through the quarterly results, and then Aryan and me would come back on the business and the growth levers. So almost every industrial process runs on heat. Be it steel, glass, petrochemical, energy, nuclear, heat is to be measured precisely. It has to be generated and increasingly electrically generated. And the signals and the power have to be carried reliably through some of the harshest environment in the industry. Tempsens does all three. We measure, we heat, and we connect, creating a thermal loop for our customers. What we make is engineered and made to order, built to customers' processes rather than off-the-shelf products. And it is engineered, made in India for the world. This quarter is about a third of our product revenue coming from outside India. That gives us three verticals. The first vertical is Temperature Sensing Solutions, which is 45% of our FY 2026 revenue. In this we have contact sensors such as thermocouples, RTDs, and non-contact sensors such as infrared pyrometers and online thermal imagers. According to F&S, we are the largest manufacturer of contact and non-contact temperature sensors in India, with about 10.5% and 21% in contact and non-contact sensors. We are the only Indian manufacturer of non-contact temperature sensors. The second product, what we have is Specialised Cables. This is about 35% of our revenue. High temperature instrumentation and control cables, LV power cables, mineral insulated metal sheath cables, and nickel alloy conductors engineered for elevated temperature hazardous environments. These are not commodity cables. The third product in our basket is Electric Heating Solutions, which is 21% of our revenue. Process heating solutions, component heating solutions, laboratory and process furnaces, and now we are getting into medium voltage heaters. There is a reason why these three belong together. The first reason is thermal loop. We are one of the very few companies worldwide that can sense temperature, heat up the process, and connect for the same customers. Often the same plant and the same purchase is the decision maker. The refinery that buys our sensors would also need our cables to connect it and also need our heaters for its processes. In FY 2026, the cross sale is almost INR 267 crore, which is 16% of our revenue, which is a growth over 30% from the last year. The number two reason is backward integration. We are among the few companies worldwide with backward integrated manufacturing across thermocouples, cables, and heaters. We make our own alloys and the mineral insulated cables that go into our sensors, heaters, and Specialised Cables. One base is serving all three verticals. This gives us control over quality, delivery, and cost. Third is qualification. Our products go into blast furnaces, reactors, pressurizers, fuel cells, space applications, where approval takes multiple years. One of our Indian PSUs started buying our temperature sensors in 2004, but today they buy our cables, pyrometers, furnace monitoring cameras, heaters. The one approval makes it easier for the next approval. One of the most important change, and which is also responsible for the future growth, is we are increasingly supplying our products to OEMs. This OEM program give us immense volume, visibility, and scale. In fuel cells, we will be supplying both our temperature sensors and cable harnesses. In automotive sector, we have a joint venture with Victura Technologies that takes us into electrical heating cables to reduce emission in commercial vehicles. We are also private labeling our laboratory furnace for a life science company, which is a long-term contract. We are building similar relationships with other OEMs across sectors, and with this, we see that this would materially change the scale of the company in future. About 2/3 of our revenue is coming from projects and OEMs, and one-third is coming from the replacement business, which is recurring in nature. No end market is more than 22% of our revenue. Our top 10 customers today are 19% of our revenue in FY 2026. Our top 20 customers have been with us for over 10 years. We export to over 80 countries. Export has grown 46% CAGR between FY 2024 and FY 2026. We operate 15 manufacturing plants, five of them outside India, backed by 83 R&D engineers and global certifications like UL, ATEX, and ASME stamp. Coming to the financial profile, between FY 2024 and FY 2026, we have grown with a revenue CAGR of 27% to INR 445 crore last year. EBITDA has grown 36% to INR 113 crore and adjusted PAT at 35% to INR 75 crore. Our gross margins have been in the range of 46%-47% in the last two years, reflecting engineering content. EBITDA margins would move because of, one could be timing of large specs, second could be that particular state, and third could be we are investing for the future of the organization. Finally, we believe that the opportunity is much bigger today than it has ever been. Our products are essential for industry. They sit in every furnace, reactor, kiln, turbine, molding machine, processing and heating matters. Yet, each one is engineered for a specific purpose, which keeps us our niche, our make to order market rather than a commodity market. Four tailwinds are now working for us at the same time. First is electrification of process heat as industry is replacing fuel fire with electrical heating. Second is alternative energy, fuel cell, green hydrogen. Third is China Plus One factor. A lot of global players are coming to us. A continued investment in oil and gas heat. Globally, F&S sizes the market for the temperature sensors about $4.3 billion, for the heating solutions about $13.2 billion, and for the specialized cable about $33 billion. Together it is over $50 billion in FY 2025, growing about 7%-8% to about $75 billion up to 2030. We are a small share of that today. While the market is large and the part we are playing is not crowded, critically make to order applications demanding qualifications, engineering, certification, and that take years to earn. With that, I would like to hand over to Priyanka for the results of Q1. Effect manager. Thank you, Vinay sir, and good afternoon, everyone. I will cover revenue growth, margins, ISO process utilization, and other outlooks. Revenue from operation for Q1 FY 2027 grew INR 118 crore, up by 33% from INR 89 crore a year ago. Q1 FY 2027 includes Tempsens Germany, Tempsens Polska, and Tempsens Measurement and Control revenue as well. Temperature sensing grew by 42% to INR 60 crore, about 51% of our total product revenue. Electrical heating grew 148.8% to INR 25 crore on a low base as the heater facility commissioned towards the end of Q1 last year. The specialized cables declined by 8.8% to INR 32.5 crore, reflecting the timing of export order execution. Domestic revenue by 18.5% to INR 78 crore. Export revenue grew by 78.3% to INR 39.8 crore. Rising to about 34% of total revenue from about 25% a year ago. This increase is on account of addition of Tempsens Germany, Tempsens Polska, along with sustained growth in key geographies like Southeast Asia and North America. EBITDA grew INR 26.6 crore, up by 15.7% at a margin of 22%, against 25.3% last year. The roughly 330 basis point decline has two clear parts. First, gross material margin was 47.4%, broadly in line with our full year levels of 46.9% in FY 2025 and 46% in FY 2026. Q1 last year at 49.3% was a high base. Second, employee cost rose by 44% to INR 20.4 crore, taking about 140 basis points. This increase reflects the company's continued investment in strengthening organizational capability and expanding headcount to support future growth, and also includes an ESOP charge of INR 57 lakhs in Q1 FY 2026, with no comparable charge in last year. Other expense grew slower than the revenue. In addition, recently acquired business contributed a relatively lower revenue base while adding employee costs, further influencing the cost structure during the integration phase. Profit before tax rose 16.2% to INR 21.4 crore and profit after tax grew INR 16.3 crore up by 15.6%. Adjusted PAT, which excludes amortization of acquisition and intangible assets, was INR 17.3 crore, up about 15%. Our IPO included a fresh issue of INR 95 crore, of which INR 55 crore has already been used to repay borrowings against total borrowings of INR 78 crore at March 2026. The lower finance cost should be visible from the coming quarters. During the Q1, we also acquired land for about INR 25 crore for the expansion of our Specialised Cables business from internal approvals. Two points on the year ahead. First, we expect revenue growth to be in line with our blended growth over the last three years. Secondly, we expect margin to remain broadly similar to last year margin profile as the projects we have seeded start to take off and the investment in this quarter begins to pay back. After this, I will hand back to Mr. Aryan Rathi. Thank you, Priyanka. Good afternoon, all. I'll briefly cover the three verticals, what we've been up to during Q1 this year, and also the growth levers for each segment. For temperature sensing, the organic growth was led by thermal power and by OEMs, including CVD equipment manufacturers. The pipeline remains healthy across thermal and nuclear power in India, also steel and glass worldwide. We are also launching a new series of next generation pyrometers, the H series, which is co-developed by our partner, Micro-Epsilon, which should start dispatches Q3 this year. These products will mostly be aimed at the OEM industries, and it will give us a new lever to pull, especially for the non-contact temperature sensors. We are also building a brownfield plant of about 50,000 sq ft within unit one for OEM contact sensors, which is expected to be commissioned by Q3 FY 2028, which will have a peak revenue potential of about INR 120 crores, with the availability to add further revenue potential in the same facility as well. Onto the Electric Heating Solutions. The growth largely came from significant oil and gas dispatches in India, Southeast Asia, and Middle East. We have also signed a five-year supply contract with a licensed OEM for standard furnaces. In addition to that, we plan to add about 25,000 sq ft of space for custom-built furnaces this year as well. In heating, one of the major products that we are working towards are the medium voltage heaters up to 50 MW for process heating. This will mostly be used in industries like carbon capture, battery storage, and green hydrogen. This is not a crowded space, and we believe we have a very good right to win in this particular segment. These heaters have already been tested up to 7.2 kV, and we are targeting explosion-proof certification by Q4 FY 2027. This product will play a pivotal role as the industry replaces fuel-fired heaters with electrical ones. The new products will be supported by a new 50,000 sq ft plant within unit six that is expected to be completed by Q1 FY 2028, which will carry a peak revenue potential of about INR 200 crores. Onto Specialised Cables. We do not see Q1 as a major problem. It was mostly based on the timing of export orders. In all, we executed orders for thermal power, oil and gas in Africa for a new customer, and chemicals in India. We also are foraying into cable harnesses that we have already gotten the UL certification for OEM customers. These are not standard cable harnesses. These are made for extreme temperatures for very hazardous environments. We believe this new product line will help us get into newer use cases as well. For cables, we have also started construction for unit eight. It is a greenfield project and should be complete by Q2 FY 2028 with a peak revenue potential of INR 60 crores. And again, we can ramp the capacity here as well very quickly, as we already have the base ready. For the joint venture with Victura Technologies, we have signed an agreement to acquire an 80,000 sq ft facility that already has a shed built on top of it. Production should commence by Q4 FY 2027 with a peak revenue potential of about INR 120 crores. In total, the four projects commissioning between Q4 FY 2027 to Q3 FY 2028, has an aggregate peak revenue potential of about INR 500 crores at full utilization, against a FY 2026 revenue base of INR 445 crores. As mentioned, this is potential, but this just goes to show how we are ramping up facilities faster and investing for the future, as we execute on major projects that we have in hand right now. On the growth levers, we believe there will be four significant levers for Tempsens' growth across the three verticals in the near future. First is OEMs. As you might see in the FY 2026 numbers, OEMs contribute an insignificant part of the revenue. But we believe, going forward, these will be pivotal for our growth, where we are working in new energy, automotive, plastics, CVD equipment, and with distribution platforms as well, where we supply products at scale, giving us operational leverage as well. Second is international geographies. We have entered into new markets like Mexico, Poland, and South Korea, and ramping up our existing presence across Middle East, Southeast Asia, and Europe, which will play out in the near future. Third is customer approvals and certifications. We are targeting global vendor approvals for oil and gas and domestic approvals in defense and aerospace. As mentioned earlier, every approval that we get makes it easy for us to get further approvals as well for that particular segment. And lastly, fourth is new products and partnerships. So examples are the Victura joint venture, the H series with Micro-Epsilon, medium voltage heaters, as well as our foray into cable harnesses. To sum it up, Q1 was a strong quarter for us. Revenue is up by a score. Exports close to about 80%, and heating more than doubled. Profits grew about 16%, but we believe we are investing ahead, and we expect the profit growth to be in line with the revenue growth by the end of this year. So in summary, we are engineered, we are made to order, made in India for the world, and we believe the opportunity in front of us is larger than ever. We are working hard to execute on the opportunities we have in hand right now. Thank you, and we are happy to take any questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. First question is from the line of Pratik Dharmshi from Union Mutual Fund. Please go ahead. Yeah. Thanks for giving the opportunity. Many congratulations, Vinay, and the team for a solid set of numbers. My question revolves around the new product launches or the newer segments you are trying to get into. The recent partnership with Micro-Epsilon, getting into a newer range of pyrometers, and in terms of end user industries like fuel cells, semiconductors also you mentioned in the presentation. Can you just elaborate a bit on the opportunity in this all newer segments in terms of addressable market, how much share we can grab? How should one see these newer segments and newer products evolving over next, say, three to five years' time? Right. Hi, Aryan here. On the new products, what we are trying to do is address markets where we see an immense potential to grow, be it the data centers or let's say, companies coming to India for their OEM needs. Especially with Micro-Epsilon, we believe for the newer product that is in itself about a INR 60,000 crore market. Till now, we are only, let's say, addressing around 1% of that market. We are actively working towards the product launch. As we launch the products in Q3 this year, through both the Micro-Epsilon channels as well as the Tempsens channels, we believe we should have a better idea of the arc trajectory in that particular market. On the medium voltage heaters as well, this is not a crowded market. There are only a handful amount of players here. We believe we have a solid right to win given our backward integration, as well as our process expertise. As we certify our products, we see a very long runway starting FY 2028 for these products as well. For fuel cells and automotive, we are generally working on our existing product lines, but newer avenues or newer industries where we slightly modify the product to fit the kind of reliability needs there. We believe we are very well-positioned here as well, because with OEMs, what you look for is scale. Us, plus being in India, we are uniquely positioned for that, and that is why we are getting the preference there. All in all, we expect, especially the OEM part as a new product part, to start contributing significantly, more than 25% of our revenue, starting FY 2028. Got it. Aryan, that was very helpful. In terms of margin profile, these are all newer industries, like you mentioned, data center, fuel cell, semicon, et cetera. Is the margin comparable to the- Yeah. Core business or is it better? The model which you will adopt is tying up with, so partnering, this will be the model you will adopt, right, in getting into newer businesses? Right. Broadly, on the margin, they will broadly remain similar across these newer products and newer segments. It really depends on the kind of product as well. So what we would say is broadly similar margin profile. On partnerships, we take it case to case. In, let's say, industries or products that we have a right to win or we have the right competencies, we would do it standalone. But in markets or in products where we see it beneficial both for us and our partners to tie up and attend the market together, we would tie up with incumbent players or with players that want to enter those markets. Got it. This was very helpful. Thanks and all the best. Thank you. Thanks a lot. Thank you. Next question is from the line of SR, from Sandhya Capital. Please go ahead. Hello. Go ahead, sir. What is your name? Please go ahead with your name first. I'm [inaudible] from Sandhya Capital. Hello. Go ahead, sir. Yeah. Sir, you have called out that fuel cells is a growth vertical within that temperature sensing part. Could you share how this order trajectory from those OEM customers has evolved in quarter one of this year? Yeah. Temperature is a very basic parameter to be measured in any kind of process. In fuel cell also, it is very important to get the right efficiency and the output of these fuel cells, it has to operate in a particular temperature. We have tied up with OEMs to supply our temperature sensors for this particular market. That is what it looks like. To add onto that, we are in pretty advanced stages here with the field trials and the run-up. Now, what we are focusing on is executing at scale. That is broadly where we are at in this segment, and we are also attempting other products as well, but they might have a little ways to go in terms of the full scale. Can you quantify the run rate and the volumes that you expect to ramp up fully for the exit of FY 2027, which you expect to ramp it up? This is like a work in progress, and we will come back with the exact results as we execute these projects. All right. The specific OEM clients that we are targeting in the geographies of Mexico and South Korea, as you mentioned in the opening remarks. What are these OEM clients like? In which verticals are these OEM clients connected to? Specifically in these geographies you mentioned, Mexico and South Korea, we are not just targeting OEM clients, we are also targeting process industries. When you see the industry makeup of these two geographies, it is broadly similar to the kind of industries we are already serving. There is a lot of steel, there is oil and gas, there is cement. These are the key verticals that we are targeting in these two geographies. Most of the OEM play is domestic. Understood. Thank you. I will get back in. Thank you. Thank you. Next question is from the line of Arman from Blue Sky Fintech. Please go ahead. Yes. First of all, congratulations on good set of numbers, sir. I have two basic general questions for your industry. First of all, how is the competition density in your business? Secondly, how difficult it is for a new entrant to enter into your market? Also, at the same time, how difficult for an existing client to shift to other? So overall, how is the competition intensity and what's the basic moat in the industry? Yes. So temperature sensors, electrical heaters are specialized cable. These form a small cost, but they are very critical for any industry, be it power industry, be it petrochemical industry. The cost of these equipment could be less than 1% of the whole plant. But they are very critical. In case a temperature sensor malfunctions, it could cause a safety hazard. Otherwise, it is very important for productivity and efficiency of the product it makes. So, the customers are very choosy in terms of choosing the right vendors for such kind of products. So these are pretty critical products. So in terms of their limited number of players in critical industry. The criticality would change on the application of the product. So for a nuclear power plant or a petrochemical plant, they would be very choosy in choosing the customers. But for a plastic industry, it could be a lot of players. That is how the competition could vary from industry to industry. More critical the applications, more certified products. For example, in petrochemical, you are using explosion-proof products. In some other case, some other certifications are there. Pressurized vessels are there, then you used to have pressurized vessel certification. So it changes from industry to industry, and that is why also it is difficult to get in with such kind of vendor approvals. So for getting a vendor approval, you should have a proven track record with the same kind of industry. You should have the right set of certification. Then you should have the right processes, right people, right machine, and then only the customer might visit you, and then would certify you. So this is long cycle. It may take, for the first time, three to five years for the first approval. But once you approve this one set of product, the next set of products is a compatibly easier approval. But I would say there is a big roadblock for anyone to get into such kind of customers. Okay. Okay, sir, just a last question. So what percentage of our current revenue is coming from those critical industries in which getting into it is, like you already said, industry to industry, it varies, right? So what percentage of the current revenue comes from that critical segment? Most of our revenue is coming from the critical segment. I would not say exact percent. It could be maybe 75%-90% would be coming from these critical kind of areas. And there would be maybe 10%-20% would be from regular industry where the competition could be high. But that is just a very broad estimate. Okay. Thanks a lot, sir. That is it from my side. Thanks. Thank you. Next question is from line of Naman Parmar from Niveshaay Investment Advisory. Please go ahead. Yeah. Good afternoon, sir. Thanks so much for the opportunity. My question is regarding the new age industries and how big will be the industry- Naman, sorry to interrupt you, but your voice is breaking. Can you please come in a better reception area? Now it's all good? Yes, go ahead. Yeah. I was asking about in new age industry, how the new semiconductor, like you mentioned about, you have the products, right? The Cartridge Heaters, heating solution, and they have applications in this. If you can help me understand overall, how big will be the market in the overall Tempsens? You have already mentioned about the global market size for the Temperature Sensing Solutions. It will be around INR 40,000-INR 43,000 crore. And similarly, for the Electric Heating Solutions, it will be INR 132,000 crore. So if you can help me understand how big will be the contribution for this new age industry, and how you are going to take up this new age industry on your portfolio side. Right. Broadly, new age industry is a very broad definition, if I am being honest. We are working across several new age kind of industries, be it energy, be it, let's say, energy storage, or, let's say, decarbonization. So it is an ever-evolving kind of industry, so it is hard to put a number on it. Because essentially, as you mentioned, temperature is ubiquitous across these industries. So what we believe the industry in general, I mean, the process industries are growing at about 8%-10% given the geography, and these industries would be growing at a much higher clip. But it would be hard to put a number on it as we are diversified across a lot of these newer kind of industries. But definitely, there is a huge potential, and we are a very small percent of the pie. We believe TAM is not going to be a limiting factor. It is just for us to address the market with the right kind of products. Okay, got it. But if you can help me understand how much percentage would be contribution from this cell type, like you are telling about semiconductor going forward. You are able to correct the existing industry, right? Petrochemical, metals, steels, and all you have already planned. Now you are trying to enter this very high growth industry. How much contribution that this investment going forward? Tempsens has typically been a heavy industry player, but the new age industry, the same products can find application in this new age industry. For example, our Korean joint venture is supplying for the battery manufacturing, which is like a new age industry. We don't have an exact number, so we have not really discerned the exact number. But the growth, I would say, for the new age industry or the new kind of products would be much faster, and we expect this to be in a double-digit number or maybe in the high 20s or 30s in the next few years, next maybe two, three years. Okay, got it. Secondly, on the replacement side, if you can help me understand how frequently the replacement used to come for these temperature sensing product and Electric Heating Solution product. Like your 30% of the revenue used to come from MRO. If you can help me understand how is the replacement market for you and going forward, how you are able to cater this market. The replacement depends on where the application of these kind of temperature sensors or electrical heaters take place. The harsher the environment, the harshness could be because of the high temperatures, aggressive nature of the material, because these are going into furnaces, reactor. I would say, for example, in molten aluminum, it could be just 30 dips, which can happen maybe in a few hours. The temperature sensor may last just a few hours, or maybe for a nuclear power plant, it can last 20 years. So there's no real thumb rule on what exactly. It depends on the application to application, the life cycle. But as of today, 30% of our business is coming from this replacement business. And this replacement business is because of the project business, what we are doing. Like for example, we do a project for a power plant, so mostly the customer would come to us for a replacement. Secondly, for a new customer, we might come to them for a replacement product, and then once they are happy, they could also approve us for the project business. Because these are all make-to-order kind of products. The players, like the suppliers from U.S. or Europe, they are not interested in smaller supplies. And where we come into the play and with our six location outside India, we kind of try to be close to the customer to supply initially for the replacement demand and then get into the project demand. Okay. That's very helpful. Lastly, on the revenue potential, like you mentioned, INR 500 crore of revenue. So it's add-on to existing revenue that you are currently doing for INR 445 crore, so almost INR 1,000 crore of revenue you can do, or it's only total hundred of revenue only? We are adding in capacities which will be online by Q3 FY 2028 of about INR 500 crore of additional revenue. Of course- Okay. That capacity will take up some time to ramp up. But essentially, that would be on top of our existing base. Okay. Got it. And lastly, can you give the margin profile of all the three segments? What is for the temperature sensor, what is for- Naman, sorry to interrupt. We are again losing your audio. Yeah. Sorry. Now it's audible? Yeah. Yeah. Just asking about the margin profile in three different segment and extending it. We have not really differentiate on the margin profile on the different segments, but the blended margin is already available with you. Overall, I would say that the margin profile in Temperature Sensing Solutions and Electric Heating Solutions is slightly more than the Specialised Cables. Okay. Got it. Lastly, how much inventory you used to have to maintain? Because you have lots of SKUs, right, in all the three segments. So I think your raw material would be different for three segments. So how you try to manage that particular because current scenario with changing raw material prices significantly, so how you are coping up with this? Yeah. Priyanka this side. Approximately we have INR 110 crore or INR 120 crore of inventory. Out of this inventory, 65%-70% is lying in our raw material, and the balance is either in work in progress and finished goods. Regarding the inventory price fluctuations, actually we book the orders at the time of if we have received the-- We book the raw materials at the time of receiving the orders. So we pass through the fluctuations to the customer. Thank you. Naman, I request you to come back for a follow-up question. Yeah. Thank you. Thank you. Next question is from the line of Jinesh Karia from Union AMC. Please go ahead. Yes. Thank you for the opportunity. Sir, while we are very diversified in terms of end industry and regions, we have sizable exposure to petrochemical industry, and we are awaiting approvals for cables in Middle East. For Africa and MENA region also, we have around 10% exposure. Do you see any interim challenges in the short term and any long-term growth challenges within the region and segment? Sir, like during this political situation also, the exports have increased tremendously for us. We feel that this would be giving us even more opportunity. Because of this political situation, we think that lot of people would be moving towards electrification of their processes. That could fuel up even our heater business and also all the three businesses that we are into. Maybe in the very short term, this could be a little bit impacted. We have not seen any impact as of now. I think in mid-term, it will be a positive thing for the company. Got it. So no revenue impact as such for the upcoming quarters or this year as such. Is my understanding correct? For the next quarters, I do not think there is any negative impact. For maybe next year, it would be a positive impact. Understood, sir. Sir, next question is on the order book. So we mentioned a lot of new age industries that might aid in acceleration of growth going forward, data centers, semiconductors, and many other industry. So are these industries order book based, or do we have a visible order book for a couple of months, or are they just-in-time delivery basis? So how is the business over there? Our typical customer base, which is based on heavy industry, the order book is four and a half months. That is a typical order book for us. But these kind of OEM players, they have a much larger visibility. So there, the order cycle visibility could be maybe for 9- 12 months visibility is there. That we have seen with Victura and other players as well. Like also for our furnace, we have got a contract for five years now. So the visibility is much larger for these kind of OEM players. Understood. For fuel cells also, when we will be supplying to fuel cells, you mentioned in one of your remarks. There also, we have a visible order book, contracted order book, or you have visibility of order book building up going forward? We have got a clear visibility on that front too. Would you like to guide on the size of order book that we might receive? I think as we execute, we would be disclosing to the market. As of now, I would say that we have got a solid order book, but we are in the execution phase. Understood. Just one last thing from my side. I missed your comment on margin recovery. Could you just help me understand the breach of margin recovery? 200 basis points was on gross margin, which was coming on a high base, and around 100 basis points was on employee cost. How would the margins from the employee cost side recover going forward? Yeah. As already I mentioned in my commentary, we are expanding in these new areas. We are seeding few of the projects, so we are ramping up our headcounts for future growth. That's why this is increasing. Once the full year will be executed, this margin, this cost will be absorbed by the revenue. Okay. FY 2028, we should see margin recovering from FY 2028 onwards, right? Yes. No, in 2027 also, you can see the recovery of the margin in next half year. Understood. Yeah. Thanks. Absolutely. Yeah. And all the best for the future. Thank you. Next question is from the line of Parag Agrawal from Second Theory Capital. Please go ahead. Hi. Yes. Am I audible? Yes, sir. Yeah. Hi. My question was, your presentation says sensing is shifting towards OEMs in fuel cells, injection molding, and CVD. On fuel cells, I first wanted to understand, what do you actually supply? Is it the temperature sensors and thermocouple assemblies themselves, or other items like cable, wiring, or heaters? We are mostly supplying them temperature sensors. As mentioned, these fuel cells, they have to work in a very tight temperature band. We make these, let's say, critical sensors to map the temperature across the fuel cell. That is where we are working on, and we are also exploring other opportunities there as well across our product line. Okay. I wanted to understand about qualification. You had mentioned the qualification process is a bit more rigorous. Once an OEM has qualified you, do you typically keep supplying that customer for life on their product, or is there a rebidding process every year? Are you seeing more of the OEM business moving into an annual contract basis? I am just trying to understand how contracting with the OEMs work. When you are qualified as a vendor for an OEM, you are built into their spec as well as their machinery. Usually they would be a lot more sticky than the usual process industries, which are more project to project based. Of course, there is not 100% guarantee that they will work with you all the time. But you have a very good, let us say, stickiness with these kind of customers. Usually, even for these projects other than the furnace contract that we have for five years, these are PO to PO. They would give us visibility and then give us POs based on milestones. That is usually how we are working with these kind of OEMs. Okay. All right. That is it from my side. Thanks. Thanks. Thank you. Next question is from line of Gaurav Jawalkar from JM Financial. Please go ahead. Yeah. Hi, sir. First of all, congratulations for a great set of numbers. Just few numbers that I'm working on. First is employee cost, as you mentioned that it will come down and your margins will be at the same level as FY 2026. Fair to assume that the revenue growth should be anywhere above 25% for FY 2027, at least? The growth should be in line with the historical numbers. A blended three-year growth is, I think, a good number to look at for FY 2027. Should be around the number that you suggested, but we'll get better visibility as we get into each year. Okay. Second question specifically is in terms of exports. Now you have tapped into Mexico. I'm assuming it is to target the U.S. market. You have also shared some progress in the Middle East in terms of approvals. In terms of U.S. markets, can you quantify what is the growth opportunities in the region? What are the areas that you are focusing on? Secondly, in the Middle East, can we see any breakthrough order in FY 2027, given that there is some progress which is going on? Can you share any timeline or something on these fronts? Right. We are targeting markets across the world, essentially through these newer companies set up in Mexico, Poland and in South Korea. These markets will remain in focus. Within our existing geographies, we are seeing a pretty good traction in the Middle East. Mostly targeting our existing set of industries. It is around oil and gas, steel, cement, also energy, of course. We are bidding a decent amount of projects throughout these geographies. We should see some positive things throughout the year as well. The Middle East is opening up significantly. Let's say the quoted pipeline has, of course, increased dramatically as that happens. But the firm orders, there is still some runway there till the time we get those. Okay, thank you so much, sir. That is it from my side. Thank you. Next question is from line of Pujan Shah from Molecule Ventures. Please go ahead. Hi, sir. Thanks for the opportunity. First question pertains to the fuel cells, as you are mentioning about our product offering for the fuel cells, and we have seen in U.S. due to grid infrastructure issues, there is a rapid pace growth in fuel cells and adoption of fuel cells. Just wanted to understand on that pie. In terms of thermal sensing as well as there are couple of products which have been used, let us suppose thermocouples and et cetera. Are we seeing increasing RFQs can ultimately convert into revenue for the next year, and we see a visibility of 25%-30% of the total pie can be coming from fuel cells because this seems to be a rapid pace and it might be a new technology adoption going forward. Yeah, I would say that is one area that we are working. Exact numbers we would see as we kind of execute these things. But we are working towards this direction and we are looking at the execution and this is a critical area that we are working for. Got it, sir. Sir, just to understand as we might be starting with them. Are there any complementary products like Specialised Cables or like thermal sensing solutions which we can provide, which can help us to get and address to their demand constantly? Yeah. All these kind of, it is not just in this industry, most of the industry that we are working. These temperature sensors go into high temperature area, and they have to be connected with some special cables which can work with the high temperature side. It could be maybe 500 degrees Celsius, 800 degrees Celsius. So surely there is a scope, and we are working also with the customers for cross-selling of other products. Got it, sir. Sir, just to understand the competitive scenario. What are the competitive landscape in terms of at the current situation? Do we see Chinese are being present over there? Who are key in terms of trying to tap in the new markets or trying to enter, being our key competitor? Sir, as I told you that these are all engineered products make to order and the customers need according to their fit and size. There are not many Chinese players who have this kind of engineering, and heavy engineering requirement is there. So we think that we are in a unique position to serve this kind of market, and we don't see much of Chinese competition in most of the products or maybe the customers with whom we are working. Also, I would say because of some political reason also, people would like to move to India. We have seen a few customers not choosing China for some of the product ranges and coming to us. Got it, sir. Just to get a sense on the alternative fuel cell or hydrogen cell, do we see the order book can be mix of INR 250 crore-INR 300 crore in next one to two years? We wish it will happen, but we cannot comment on what could be the order book. Got it, sir. Thank you so much. I will join the telecall. Thanks. Thank you. The next question is from the line of Vedant S. from Mars Investments. Please go ahead. Hi, sir. I wanted to check the guidance that you have given about the run rate, sorry, about the uptake capacity expansion, INR 500 crores, that additional that you can do. When can we expect that run rate? By the end of FY 2028 or maybe starting FY 2029, can we achieve that full capacity utilization? If not, then when? We have started construction on some of the projects. These projects should come online starting Q1 FY 2028, and a lot of the construction should have stopped by FY 2028, Q3. To fully realize that, let's say, utilize these kind of capacities might take a little time. What we are seeing is that we are just building these capacities ahead of time. I think you can get a good estimate on the historical growth rates. We believe this will sustain those kind of growth rates going three years down the line as well. Okay. For next three years, you are building, right? By FY 2029 end, starting FY 2030, we can have full utilization. Yes. Broadly. Okay. Thank you. Usually, yes, full utilization for us, we usually have some spare capacity. Usually we run these plants at about 80% at max yearly and have some headroom as well. Currently, existing capacity is running at what for the year, run rate is what utilization? About 80% you could say. Okay. Thanks. Thank you. Thank you very much. Ladies and gentlemen, we will take that as the last question. I would now like to hand the conference over to the management for closing comments. I think as you have seen with the results, we think that the company has got a good, strong quarter Q1, and the revenue is up almost 30%+, and the export is close to 80%+. Heating has more than doubled. The profit grew 16% because we have invested ahead of time, and we expect the results of this investment to come from the second half of this year. We are engineered, made to order, made in India, made for the world, and we believe that we have got a tremendous opportunity in front of us, larger than ever before. Thank you. Thank you very much. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.