Ladies and gentlemen, good day and welcome to the Tube Investments Q1 FY 2026 earnings conference call hosted by IIFL Capital Services Limited. Please note all participants are currently in listen-only mode. There will be an opportunity for you to ask questions following the conclusion of the management's opening remarks. Please note this conference is being recorded. I now hand the conference over to Mr. Anupam Gupta from IIFL Capital. Over to you, sir. Thanks, [Anupam]. Welcome everyone to the First Quarter FY 2026 Results Conference Call for Tube Investments of India. From the management, we have Mr. Arunachalam, Executive Chairman for TI India, Mr. Vellayan Subbiah, Vice Chairman, Mr. Mukesh Ahuja, Managing Director for TI, Mr. Meyyappan, Chief Financial Officer, Mr. Shivdeep Singh Jammu, Representative for the Division Head for TPI, Mr. Sivakumar, Division Head for Metal Form Products Business, Mr. Rajag opal, Division Head for the Cycles Business, Mr. Jalaj Gupta, CEO of TI CMPL, and Mr. Govindarajan, CEO for 3xper Innovation. To start off, I'll hand it over to the management for the opening remarks, post which we'll have a Q&A. Over to you, sir. Yeah, good morning everybody. The Board of Directors of Tube Investments of India Limited met on Friday and approved the financial results for quarter 1, 30th June 2025. Just maybe give a glimpse of standalone results for the quarter. Revenue in Q1 was at INR 2,007 crores compared with the INR 1,960 crores of same period previous year. EBITDA was at INR 222 crores as against INR 208 crores in the same period previous year. ROIC at 39% for the quarter ended 30th June 2025 compared with 47% in the previous year for the same period. Free cash flow for the quarter was INR 82 crores. I'll give you an idea about the various businesses. Engineering division revenue for the quarter was INR 1,298 crores compared with INR 1,265 crores in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was INR 153 crores against INR 157 crores in the corresponding quarter for the previous year. Metal Form Products, the revenue for the quarter was INR 366 crores compared with INR 358 crores in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was INR 37 crores against INR 36 crores in the corresponding quarter of the previous year. Coming to the Mobility division, revenue for the quarter was INR 198 crores compared with INR 181 crores in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was INR 7 crores against the profit of INR 2 crores in the corresponding quarter of the previous year. Others, the revenue for the quarter was INR 236 crores compared with INR 247 crores in the previous year. Profit before interest and tax for the quarter was at INR 17 crores against INR 15 crores in the previous quarter of the previous year. Coming to the consolidated result, TI consolidated revenue for the quarter was INR 5,309 crores against INR 4,578 crores in the corresponding quarter of the previous year. The profit before share of profit on associate and joint venture exceptional item and tax for the quarter was INR 449 crores against INR 470 crores in the corresponding quarter of the previous year. CG Power Industrial Solutions, a subsidiary of TI, where we hold 58% stake, registered a consolidated revenue of INR 2,878 crores during the quarter against INR 2,228 crores in the previous quarter of the previous year. Profit before tax for the quarter was INR 364 crores against INR 336 crores in the corresponding quarter of the previous year. Shanthi Gears Limited, a subsidiary in the gears business in which the company holds 70.46% stake, registered a revenue of INR 135 crores during the quarter against INR 139 crores in the corresponding quarter of the previous year. Profit before tax for the quarter was at INR 31 crores as against INR 29 crores in the corresponding quarter of the previous year. Thanks and happy to take questions from the investors' side. Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may click on the raise hand icon from the participant tab on your screen. We will wait for a moment while the question queue assembles. We request our participants to please click on the raise hand icon. We also request our participants to restrict our questions to two, and you may then return to the queue for more questions. To rejoin the queue, you may click on the raise hand icon again. We will wait for a moment while the question queue assembles. We will take the first question from Rajat Aggarwal from Nilgiri Investment Managers. Please go ahead. Mr. Aggarwal, your audio is muted. Could you please unmute and ask your question? Yeah, hi, good morning. Am I audible? Yes, sir. Yeah, hi. I have a few questions related to the e-truck and the electric vehicle division. If I were to look at the EBIT of electric vehicles, it has increased compared to Q1 and Q4 as well. Which particular division has the losses increased? If you can share the volume for three-wheelers, SCV, and e-truck for this quarter. We don't give a divisional level within TI. Hello? Management team, we are unable to hear you. Ladies and gentlemen, we request you to please remain connected. [Audio distortion] for quarter one. Sorry to interrupt. Management team, may we request you to repeat the response because we couldn't hear you for a few seconds. Yeah, is it clear now? It's better, sir. Could you please repeat the response? Yeah, we said we don't give EBIT level broken down into the four parts of TIP Mobility. We just give it at an aggregate level. On the specific numbers, Jalaj can give more details. Yeah, the numbers for quarter one were 1,791, which included 45 e-trucks, 1,668 three-wheelers, 44 small commercial vehicles, and 34 numbers of e-tractors. Right. Thank you, sir. Just continuing on the e-truck, there is a PLI which was announced by the government recently. Do we stand to benefit from it? If I were to look at the FY 2025 cost of goods sold for the e-truck division, the gross margin was almost nil. What's the plan here? How do we propose to increase the gross margin, especially in light of the increasing competition? If indigenization is one of the strategies, do we have internal targets to reach a certain level of indigenization by end of FY 2026 or FY 2027? Thank you, sir. On the PMV drive, which was your first question, the scheme has been announced. It calls for various eligibility criteria in terms of various components which have been prescribed by the government and indigenization at various levels of those particular components, towards which we are working. We are very, very confident that in quarter two, we will be applying for the eligibility of the same. I think by the time we meet for the next investor call, our application would be underway for the qualification under PMV drive. Although the scheme does have its own challenges in terms of certificate of deposits, which makes the customer eligible for the same, it has its own set of challenges also. As far as our product qualification is concerned, we are on our way. Hopefully, in quarter two, we will be there. In terms of gross margins, obviously, when we look at the product, the two things that we're focused on are on cost reduction. Some of that is through indigenization, but also on overall cost reduction on the truck. The second element is that basically, as our volumes pick up, that also helps take cost out of the whole process. That will help us as well. Those are the two focuses there, which will continue. Right, sir. Thank you. Thank you. Thank you. Before we take our next questions, we'd like to remind participant. To ask a question, you may click on the raise hand icon from the participant tab. We now take our next question from Mr. Anupam Gupta of IIFL. Please go ahead. Yes, good morning. Firstly, on the core business, what was the sort of volume growth that we saw for the engineering segment and the metal form product business in this quarter? Have you seen the entire steel price movement passed on fully, or do we still have further downsides from the possible steel prices in the next few quarters? Thanks, Anupam. In terms of the volume growth, the Engineering division is around 10% and the Metal Form division, it is about 3%- 4%. Coming to your question on the steel prices, as you're already aware, we have mentioned in various calls, it takes about one or two quarters lag, which we'll be able to recover fully in the coming quarter or next quarter. It'll be full recovery happening from the customers. Anupam, I think your question was whether there'll be downside from the steel prices. There's not a downside. No, what I referred to was, basically, your revenue growth appears low because steel prices are being passed on. [You're right.] That's what I was referring to in terms of downsides on the reported revenue growth. That's the question. Yeah, yeah, yeah. You're right. OK, yeah. Secondly, just following on there, ideally, given that these prices are being passed on, our margins optically should look higher in both the segments. We are not at least seeing that in the reported numbers. What's keeping the margins not allowing them to expand effectively? As I said earlier, the steel price increase is already factored in the financials. Recovery from the customers is yet to happen, which will be happening in the current quarter and the next quarter. After that, margins will look like what we used to maintain earlier. Understood. The next question is on the mobility business, cycles business. Basically, this quarter, we saw sort of a revival after a lot of quarters of weak performance, both in terms of growth as well as margins. What are you seeing there? Anything that can be, let's say, extrapolated to being sustainable? Is it just a spike? Anupam, as you're aware, the quarter one is generally when the schools and colleges are opening. It is a good quarter always for mobility division, in which we have fully participated in the growth. Rather, growth maybe after a long time, growth is very, very positive for mobility division. Otherwise, focus on other, like we are into e-bike now, and which is going full hog. The focus on the fitness as well as spare part business is also contributing to the growth of mobility division. OK, understood. One last question on the EV business. What we have seen is clearly a significant competition which has come in. We have seen our volumes, at least in the three-wheeler side of it, being very weak in the last four or five months. What sort of levers are there which can help us reverse this sort of decline, which we are seeing, especially in terms of, let's say, a product refresh, which we had talked about in the past? What's the plan for the three-wheeler side of it where competition is very intense? Yeah, thanks, Anupam. You're right. There is increased competition coming in in the three-wheeler business. There are three or four levers that we are planning to work on. One is, as you rightly said, the refresh model, which is we are well on our way, and quarter two will see the launch of the same. That is one. Second is that one new subsegment seems to have emerged, which is on the higher battery pack side of it, which is offering higher range to the end customers. Very clearly, three subsegments are emerging. One is a lower, around 9 kW battery. Second is about 10- 11 kW battery. Third one is about 12- 13 kW battery. In the previous call, if you recall, we talked about us evaluating which are the other subsegments we will play. As of now, we play in the 10 kW segment. We are also contemplating getting into some of the other subsegments of the passenger auto. That's the second lever, and should we decide to do that, that will happen somewhere in maybe Q4 or so. That's the second lever. Third is that to improve our volumes, we are also planning an entry into the other segment, which is the L5N, which is the cargo segment. In fact, the product at select dealerships has been introduced in the market, and Q2 will see those volumes also coming in. We are actively evaluating the entry into the EV segment, which is the L3 segment, with somewhere in Q3 of this year. Last but not the least, there is a full-fledged front-end plan in terms of number of dealerships, our own manpower, and how do we scale up. That plan is in place. These are the four or five levers which will be played to increase our volumes. Sure, that's helpful. I'll come back in the queue. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, you may click on the raise hand icon again. We take the next question from Gnanasundaram S. from Avendus Spark. Please go ahead. Hi, hello. Thanks for the opportunity. My first question is with regards to the E- business again. Is that we've indicated that we're looking for operational break-even in the three-wheeler or passenger segment, as well as in terms of FCV by the end of the year. Going by what first quarter has delivered, are we aligned for that particular target? It's unlikely to happen. I think it's been so from our perspective, I think we've seen. Management team, we cannot hear you right now. We've lost your audio. Management team, are you still connected? Ladies and gentlemen, we request you to please remain connected while we check the connection for the management team. I don't know when we dropped there. Yes, sir, now we can hear you. OK. You'll have to repeat the response again, sir. Yeah. Thank you. No. Gnana, I said that, no, it doesn't look like we will hit operational break-even this year. That's been predominantly based on our volumes not getting to the estimates that we thought that we could basically deliver. At this stage, this is kind of a fairly dynamic market. At this stage, I would say that, though we did give that guidance, I don't believe we will hit it. Thank you, sir. Sir, just a continuation to that. Do you think there is any macro-level trigger that is required for us to really hit the volumes that we've been targeting? Or do you think internally what we are doing should get us to the numbers? No. There are two things, right? In terms of macro level, obviously, one of the things has been that the government policy has not been, I mean, I would just say that we expected that we would have FAME II or whatever it was after FAME I. Obviously, that has not played out, which is basically the, so now the thinking is different across whether they should, how they should be subsidized. That obviously has a big factor from a macro perspective that plays into this. Otherwise, I think the good thing is because now it's clear that we're not getting that, it's just increasing our impetus and all the other actions we need to take. Those are internal actions, and we need to take them, which is good. That is basically pushing us both on the cost focus and what else we need to do to pick up adoption, I mean, adoption in trucks and market share in three-wheelers. That's what our focus is moving to now. Fair and clear. One other one is in terms of my favorite always is what has been or how was your capital allocation strategy now? Has it changed in terms of the opportunity? Just Just seeing in terms of market, something on the electronics side. Last time, we briefly hinted that we might invest more into TI Medical. Where are we on that aspect? What are we going to do with the cash flow generating over this year? Yeah. Nana, obviously, the first thing is that we're doubling down on these three businesses, which is basically TI Clean Mobility, TI Medical, and the CDMO 3xper business. That's basically the three areas that we've taken. We have to show that we can deliver on those. If you take it in terms of sequencing, we've got the requirements of the core business, then we've got doubling down on these three businesses. The next step, like we've articulated, is that if we grow into anything now, it will be only on the back of partnerships that allow us to ensure that there's a quicker go-to-market opportunity and a more identified market to go to. I'd say these are the three stacks as a core. No, has there been a change in strategy? I remember you indicating that TICMPL, there wouldn't be any more funding needed right now. Now you're saying you're going to double down on TICMPL. Are we going to fund more of TICMPL going forward? Right now, obviously, TI CMPL is fine and doesn't have cash needs. All I'm saying is that we have to first, if your question is how are we going to allocate towards newer areas, I'm saying the newer areas are basically, the first focus is to ensure that we're successful in these three areas, right? After that, if we look at any areas, it will be based on partnerships that give us the confidence that there's a quicker path to profitability in the new segments we get into. Right, Vellayan. Perfect. Now, one last one is that there have been media news that have been coming up about regarding a family issue within the Murugappa Group. Would you like to say anything to the minority shareholders of Tube in terms of how this could affect the business? No, I don't think there's anything to discuss from that perspective, right, which is like, you know, I mean, I think broadly the point is that, you know, we don't first anyway discuss any of the family issues in the public domain. Whatever comes out in media has come out, right? I don't think there's anything more to articulate about that. Can we roughly assure the minority shareholders we know will be impacted because the ownership change or anything of that sort? I don't think that, you know, the group has ever taken an action that affects one group of shareholders negatively. It is not in kind of our ethos or the way we work with things at all. I can't see any issue in kind of, I cannot see a situation where we would take actions that would harm one group of shareholders in a process. Perfect. It was something that I was articulating, but I just want the articulation from you. Thank you again. Sure, sure. Thank you. Our next question is from Salil Desai of Marcellus Investment Managers. Please go ahead. Thank you. My question, two of them. First was on this e-rickshaw entry plans. Now, you know, given that we want to double down on EVs as one of the three segments, but we're already kind of struggling with the macro that's policy-wise not supportive, competition increasing, market share, you know, not growing in three-wheeler N5s, why distract yourself and get into a space which is more crowded, more competitive, very little product differentiation? How are you thinking of the e-rickshaw business? We'd love to hear your thoughts. Yeah. There are certain markets, especially North and East, if you look at where we already have a network in place. We plan to have increased our further network in those particular areas, which are very strong markets for e-rickshaw. In terms of our network strategy, we see a clear sync as far as that particular category is concerned. That is number one. Number two, increasingly, government is also making the regulations stringent when it comes to that particular product category in terms of safety and some of the other norms, where we feel could be a differentiator between an unorganized player versus players like us and some of the other competition. That is number two. Number three, we are also seeing the migration and the upgradation of the industry happening from a typical lead-acid battery upwards. That's the other. Combination of all these three things, we see a market over there. Will we be an absolute mass player in that particular segment? Answer may be no. We will continue to maintain our premium positioning the way we have been doing in terms of three-wheeler auto. That's the plan, that it's going to give us incremental volumes. Also, it will be another line of revenue generation for our dealerships in the context of the dealership viability and also very, very applicable for North and East-specific markets. I see. Thank you. The second question is, you know, when we go out in the market and we get some feedback from users, then for the three-wheeler, we consistently are told that it's a great product and very different from what competition has. The translation of that into market share gains, there seems to be some gap there. Where do you think you might be missing out versus what some of your larger competitors are doing, who have been kind of traditionally players for a long time in the ICE side of three-wheelers? You are right. The observation is right that from a product acceptance, from a customer point of view, from that perspective, we should have, you know, the volume should have scaled much higher than as compared to what the volumes have been. Two, three challenges which we are facing in the market, of course, is the established network of the competition, which is the established ICE network versus the network which we are trying to establish. That is number one, especially in the, yeah. That's number one. We are planning to increase our network and scale up our, for example, we are now 91 dealers. Our plan is to have about 125 dealerships by the end of this year so that our volumes increase. That is number one. Number two, this particular segment has seen a lot of product evolution. As I was saying in response to the previous question about lower battery pack and a higher battery pack, we are also planning to spruce up our existing product, which was a product, a segment leader when we launched it. Over a period of time, the competition caught up. We are now trying to, we will upgrade our product. We'll be launching the upgraded product in quarter two and also enter into the other subsegments. The third one has been our local tie-ups with the financials, et cetera, which again seems to be one area which we have to work on and which we are working towards to increase the sale of our vehicles. These are two, three things that we are planning. Salil, you're right. Basically, what we're doing is getting much more aggressive in terms of go-to-market now, right? I mean, I think that I do believe that this is going to start yielding results, right? That's what I'm confident of. Great, great. All the best for that. Last question was, this is a kind of a follow-up to, I think, one of the first questions asked on gross margins at IPL Tech. I understand that, you know, operating margins will improve as volumes increase. On the gross profit basis, what was [F25] all about in the sense that could you not get enough pricing for the cost of raw materials? Was it competitive or discounted volumes or something like that? What would have been the reasons for low gross margins? OK. See, from the gross margin perspective, you know, I think there are two things, right? One is, as our volumes go up, our capability to buy, you know, components and aggregates at kind of better prices is kind of a huge driver for us, right? Right. I think that is the situation we're in, Salil, where basically, as volumes go up, aggregate costs and component costs will start coming down. The second part, obviously, is that we're also working on the electronics side to bring down the components of each of the, which is also significant, right, as a portion of the overall buy here of all the components there. The third part, of course, is battery, where, as we start packing our batteries here, which will happen towards the end of this year, that will also bring down prices more, cost more. Of course. Thank you. Thank you so much. All the very best. Yeah, thanks, Salil. Thank you. Our next question is from Vipulk umar Shah from Sumangal Investments. Please go ahead. Hi. Thanks for the opportunity. Sir, would you repeat all the electric vehicle side figures? Can you do the comparative figures for the last quarter as well? In view of lower volumes, should we expect substantially higher losses in this division this year? Thank you. In terms of losses, right now, we won't kind of share whether it will be significantly higher or not. In terms of the numbers, you want the quarterly? OK, can you just repeat it? It'll be there in the transcript anyway. Yeah. The big trucks, I'll first state the quarter one number and then state the quarter four of last year. Big trucks were 45 versus 65. Three-wheeler was 1,668 versus 1,662. Small commercial vehicle were 44 versus 4. Tractor were 34 versus 2. In terms of. Yeah. Sorry, please continue, sir. No, that's fine. In terms of your query, I mean, this financial year, the volume is still targeted and definitely, it will be higher as compared to the previous year. OK. Thank you, sir. Thank you. Our next question is a follow-up from Rajit Aggarwal of Nilgiri Investment Managers. Please go ahead. Good morning, sir. Just a clarification. You mentioned the battery packaging plant. This is the same plant as Manesar, right, which will operationalize by end of FY 2026? Yes, that's correct. OK. If you can provide quick updates on the Nashik plant, has it started to contribute revenues? There was a reference to TI Medical's greenfield plant in Noida. Any other update that you can share on TI Medical or CDMO if there are any orders you received during this quarter? Especially on the export side of TI Medical. I'll take one by one. CRS' Nashik plant has already started commercial production. In Q1, in terms of taking approvals from the customers, I'll say a majority of the customers have given the approval. We are in the ramp-up phase and expect by the same period in the next year, we'll be fully able to utilize the capacity. Coming to TI Medical exports order, happy to share there is a good maybe because all the CE certifications of the majority of the country work is almost over. However, there are a few countries which are still awaiting to get the CE certification. Whatever CE certification is over, with that, in Q2, we are fully booked with the export orders. The Greenfield plant, we have yet to take a decision. We are studying it and will come back to the investor community whenever we decide on that particular piece. CDMO, Govind, you would like to take? Yeah. On the manufacturing facility, we got the environment clearance for the commercial facility. As far as the semi-commercial plant is concerned, at this juncture, they are doing validation batches for the first DMF, which is likely to come up in the next two quarters. Right. Thank you. Thank you. Our next question is from Abhishek Ghosh from DSP Mutual Fund. Please go ahead. Mr. Abhishek Ghosh, please go ahead with your question. There seems to be no response from this connection. If he joins back, we will unmute his connection. In the meanwhile, we'll move to our next participant. That's Amar Kant Gaur of Axis Capital. Please go ahead. Yeah. Hi, sir. This is Nishit from Axis Capital. Sir, I have basically one fundamental question on EVs. We are trying to disrupt this segment by entering and trying to take market share away from incumbents, right? I just wanted to understand how are you thinking in terms of our right to win in this business? Just to elaborate it a little bit further, initially, when we entered the business, incumbents were not present. We had some head start. Now we are seeing incumbents kind of coming into this business. Incumbents will have inherent advantage in terms of cost, distribution, brand, right? Ideally, we are left with only technology and innovation in terms of disrupting the segment. Here also, we have not yet started too much in terms of developing products on our own. Even in the three-wheeler segment, we are trying to catch up in terms of offering products which others have already offered, right? Obviously, incumbents will have more resources, which we will always lack, right? I just wanted to understand top down, how do you think what will customers get if they buy TI EV products versus the well-established players for which they have been buying for many, many years now? Thank you so much. Nishit, I think, even when we could talk about even on this call, I don't know if you heard it, when people are talking about the three-wheeler, the general view on the product is that the product is far more innovative than what is there in the market today, right? It is more spacious, more comfortable, and has higher power. In a lot of situations, what we're seeing is the incumbent models are the existing ICE model that's been transformed, just been electrified, if I were to call it that, right? We do believe that there is going to be enough room for product differentiation and innovation in all the segments we're going to, right? If you see the small commercial vehicle, the reviews we've got on our product are that it is significantly differentiated and very innovative. Even from a performance perspective, it's rated much higher than, in terms of all of the consumer studies we've done this far, it's rated as a real leader in its space. I do believe that new entrants have the opportunity to look at a space very differently from the incumbents. That's what gives us the opportunity. OK, thank you so much. Thank you. Thank you. A reminder to our participants, if you wish to ask a question, you may click on the raise hand icon from the participant tab or the reactions tab on your screen. We will wait for a moment while the participants join the queue. We take the next question from Anupam Gupta of IIFL. Please go ahead. Yeah. Sir, a couple of questions. Just following up on the previous question on the viability. You said the product differentiation has been obviously a key strategy. Do you think that it should be augmented by a much faster expansion of the distribution? Maybe the lag, which happens in terms of distribution expansion, allows the competition to come in with a similar product or better pricing. Do you think that part is lagging and can be worked upon in a much better way than what is happening at this point of time? Yeah, I think it's a good question. I think the answer, Anupam, will be different for different verticals. This is something we're contemplating for the three-wheeler vertical, how aggressive we go. If you take the truck vertical, basically, that is not using distribution channels. It's a direct go-to-market product. I think definitely your point is very relevant on three-wheelers, and it's something that we're basically internally discussing. Small commercial vehicle is a mix right now, and we're seeing very good traction on that product. I would say that it's an answer that's vertical-specific, Anupam. Sure. OK. One more question on the truck side of it. As of now, given the sort of range which it offers, it is sort of a point-to-point transportation niche segment, which we are seeing traction in. Have you seen traction in the fleet side of it so far? Is it mostly the corporate side which is driving it? How fast can you, let's say, launch a product which can target the fleet side of operations for truck users? Anupam, by the end of this year, definitely, we should have battery swapping available on the truck, right? I think that that is a solution that will then allow for fleets to also start using this, especially if we can start looking at battery swapping infrastructure as well. I'd say, yes, the target will be by the end of this year that we're able to kind of go after that segment as well. OK. All right, sir. I'm done. Yeah. Thank you. Thank you. The next question is from Gnanasundaram S. from Avendus Spark. Please go ahead. Thank you, [Gnana again]. This question is very specific for Mukesh. I just want to understand as to what's the KPIs that you plan this year for the standalone business. It's about INR 350 crore. Can you please specify into which division investments are going into? It will be a combination of Engineering and Metal Form division. OK, I'll take that. On the Metal Form side, we were talking about the revenues last year. Has there been any progress on that front? Like we shared in the previous call, like you're already aware, Hyundai is coming in the Western region. They are our plant in Pune is under commissioning. We expect that volume to kick in from October. Right. My question is very specific on the railway order that we have spoken about last quarter. Railway, like what we shared in the previous call, is spread over about seven years. This year, particularly, we'll be completing the sample approval and maybe have to sort out the logistics because ultimately, supplies are going to be in Latur. Next year onwards, we will see volumes ramping up for the railway division. Perfect. Thank you. Thank you. Our next question is from Niket Shah from Motilal Oswal Asset Management. Please go ahead. Thanks for the opportunity. I just had one question. On 1st of July, 2025, China has announced an anti-inflation policy, which basically means that a lot of products where there used to be meaningful cut in prices or significant competition intensity within China will be streamlined. In that context, if lithium-ion prices had to move up, would it be possible for us to take a price increase on our final product and yet protect our margins? Do you think in that kind of situation, there would be headwinds on margins? I think if lithium-ion starts, Niket, you know, nice question. If lithium-ion starts moving up, everybody will increase prices, right? Because it is the largest component of everybody's cost structure. That would just, I mean, the pragmatic response to that will be that everybody will increase prices. I don't think anybody can be in a situation where they don't. Got it. OK. Perfect. Thanks. Thanks. Thank you. Our next question is a follow-up from Rajit Aggarwal of Nilgiri Investment Managers. Please go ahead. Thank you again, sir. Just a quick question on the models that were launched for the e-truck business. Currently, we only have a 55,000-ton truck, ton truck, right, sir? There was a plan to launch a 28,000 tipper as well. Is that on road? The 28 is later in our sequencing. The first was after a 55-ton tractor-trailer. We've now got a that was a 6x 4. Now we've got a 55 4x 2, and the next will be a tipper product. That is the first three in the sequencing right now because those are the three largest markets. Right. Thank you, sir. Thank you. Our next question is from Gnanasundaram S. from Avendus Spark. Please go ahead. Thank you for the follow-up. Mukesh, I just want to understand as to what are the kind of growth rate that we should assume for the standalone business, excluding the EV and the rest of the kind of macro situation that you see ahead of us? In addition to that, is that with largely the export component, will we have an impact because of the tariffs in the U.S.? What is the outlook on the exports specific to the standalone product business? Thanks for the question. Coming to the exports piece, our next immediate quarter, maybe orders are intact. You are aware that the U.S., the way it is becoming uncertain, a longer period of time, it is difficult to comment as of now. Coming to the guidance for the future, maybe we have said in the previous calls, double-digit growth, we are confident. If exports become a little bit offhand with your two devices strategy, how to mitigate that, that's how we are working on internally. Is double-digit growth, we're referring from an EBITDA perspective, assuming certain cost efficiencies also kick in? Yes. OK. Just in terms of numbers, what would be the current exposure to the U.S. market? At the TI level, it is about 4%. Right. Exports, the percentage would be roughly about 13%, 14%? 15%. 15%. Target 25%, are we still sticking to that number? Very difficult to comment as of now given the circumstances. If things go well, that is the target we are still sticking to. It is uncertain as of now given the macro environment. Right. One final one just on the exports again is that, you know, there's been a target that we indicated for FY 2025 also. Looking back at the last two years, if something did not go right between the exports part of the business, what was it? We have done a product development in one or two categories, which were the newer market we're supposed to participate. There was a bit of delay on those things from our end, which has given a bit of delay in that. On top of that, this environment in which everybody is getting protected, whether it is Europe or whether it is U.S., is adding a little bit of challenge to that. Perfect, sir. Thank you, sir. Thanks, and yours. Thank you. As there are no further questions from the participants, I now hand over the floor back to the management team for closing comments. We thank all our investor partners. Nothing to add from our side. Thank you very much. Thank you, ladies and gentlemen, on behalf of IIFL Capital Services Limited, that concludes today's conference. Thank you for joining us. You may now click on the leave icon to exit the meeting. Thank you all for your participation.