Q2 25/26

Nov 8, 2025

Summary

Q2 revenue rose 171% YoY, with EBITDA of INR 31cr and PAT of ~INR 19cr; H1 revenue reached ~INR 277cr. DLM expansion and phased capacity investments support momentum, while no formal forward guidance was issued.

Ladies and gentlemen, good morning, and welcome to the ASM Technologies Limited Q2 FY26 earnings conference call. 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 the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rabindra Srikantan, Managing Director of ASM Technologies Limited for opening remarks. Thank you, and over to you, sir. Thank you very much. A very good afternoon to everybody, and a very warm welcome to ASM Technologies Limited Q2 FY26 earnings call. I am joined today by members of our senior leadership team, Mr. Renan Rathore, our CFO, Mrs. Ramishi Sulkani, our Company Secretary. We have Mr. Rajeev, our Finance Head, and we have SGA, our investor relations advisor. As this is our first call, I will start with a very short introduction of our company, our various business segments, and then move on to our financial performance. We are about 30 years old. We were founded about three decades ago, and over the years we have grown into a leading end-to-end Engineering R&D, ER&D, and a Design-Led Manufacturing, which is called DLM company, providing solutions across the entire product life cycle from concept design to engineering using precision manufacturing. When we say precision manufacturing, we are not into mass manufacturing. Everything we do is very custom and relatively complex and high precision. This is something which differentiates us. We serve customers across the globe in the U.S., U.K., Singapore, Japan, and many other geographies. We operate from four manufacturing facilities, one in Davanagere in Karnataka, second one in Sriperumbudur in Tamil Nadu, and two in Chennai. Apart from that, we have six global development centers and ten offices across the globe. We broadly operate in two business verticals. One is the high-tech segment and the other is broadly in the engineering segment. In the high-tech segment, we specialize in providing systems, subsystems, precision parts for complex equipment, mainly for the semiconductor equipment, consumer electronics equipment, industrial electronics, and solar equipment. Industries in this vertical, as we know, are undergoing global supply chain realignment, with India rapidly emerging as a preferred design and manufacturing hub. We see this transformation coming alive with significant investments being made in India by both global leaders and the Indian government. Our deep engineering expertise strategically positions us as a critical partner to global OEMs looking to localize high-value manufacturing. In this regard, we also have set up a joint venture called ASM HHV to focus on the solar equipment segment, and we are well on track, and we expect to start doing some amount of delivery later this year. In the transportation sector or engineering sector, we again work both on the ER&D and the DLM. Here our focus is industrial and large vehicles and off-highway vehicles. Here again, we work with global OEMs and next-generation companies for mobility and for engineering. Across both our verticals, that is the high-tech and the engineering, we use a significant amount of Industrial AI. This is our digital layer to enhance operational outcomes and drive efficiency. We use some proprietary AI frameworks to increase our yield throughput for performance monitoring and for predictive maintenance. We are very consciously investing in infrastructure, people, and capacity to meet our growing demand. We have recently signed an MoU with the government of Karnataka to invest INR 510 crores to expand our ER&D-focused DLM and precision engineering capability. We have also signed an MoU with the government of Tamil Nadu to invest INR 250 crores to further enhance our DLM capacity. Once operational, these facilities will significantly enhance our capacity, supporting growth in both our verticals. Now moving on to our financial performance. We are pleased to report a quarter of strong growth and margin expansion. Our Q2 for this current fiscal, our revenue has grown by 171% year-over-year. The strong growth has been driven by execution across both our segments. EBITDA was INR 31 crores against INR 7 crores with margins at 19.7%, supported by operating leverage and an improved mix. PAT was around INR 19 crores, growing from INR 2 crores year-on-year. In terms of our half-yearly performance, six-month performance, revenue stood at about INR 277 crores compared to INR 110 crores during the H1 of the last financial year, FY 2025, a growth of 163% year-over-year. EBITDA was INR 56 crores with a margin of 20.3%. PAT stood at INR 35 crores compared to INR 5 crores in the same period last year. DLM contributed to 63% of total revenues, while our ER&D accounted for 37%. CapEx for the half year stood at about INR 11 crores, and the net cash position was INR 77 crores as of September 2025. We believe that we can continue the growth momentum in the second half of the year. I would also like to add a few points. First of all, once again, thank all of you for joining the call. We are now open for questions. We would like to mention a few things. One, we will not take up any customer names. We request all the speakers to refrain from referring to any customer names, which will be very speculative for us. Also, we will refrain from any guidance. These are some of the things, and we will not give any forward-looking guidance. Please avoid any customer-specific or account-specific details. With this, it is open for Q&A. We request you to go ahead. 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 their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to unmute themselves while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Nilesh Jain from SQ Investment Management. Please proceed. Hi. Thank you for the opportunity, and congratulations for a great quarter. My first question is, I want to understand on the manufacturing side, which industry has helped us to drive this growth, at least for the first half, if you can share by industry, focusing on the manufacturing side. Sure. Thank you very much. For us, we are not providing specific segmentation. For us, both high-tech and the engineering segments have contributed to the increase in our DLM. Right. Right. Like I said, we are in all the four segments when it comes to high-tech. It is semiconductor, solar, consumer, and industrial electronics. All of them have contributed. Also on the engineering segment, it has been across all these segments. Sure. Second question is, if you can share the CapEx plan for at least FY 2026 and FY 2027. Okay. I am going to request Rajesh to answer that. Just please speak up a little loudly where people Yeah, hi. During 2025, 2026, we have CapEx addition will be another 30-35 crores is the minimum what we are expecting. It may go up depending on the MoU signed. We are in a discussion with the government for the allotment of the land. If the land comes through, this CapEx will go up, depending on the availability of the land, the allotment of the land. For FY 2027? FY 2026, 2027, we are still working on it. Depending on the land availability, we have a sort of plan over the next development. Sure. My third question is on the MoU which you have shared. Can you probably talk about the timelines and how it will be about the funding and everything? Yeah, I can answer that. So, like Rajesh said, both the MoUs are signed. We are in the process of acquiring the land. So timeline-wise, it will be about the next 18-24 months is what we are planning once the land is acquired. Yeah. That was the second question. Funding will be a combination of accruals, combination of some debt, and we needed some additional equity. Fine. We also have some potential incentives, both from the central government and different state governments. Sure. The last question is, we have been seeing a lot of multinational companies setting up R&D centers in India through GCC. How do you see competition from them? Can you repeat? What is the last part? How do you see competition from them on the design side? There is a lot of multinational companies are setting up GCC in India for their R&D centers. Got it. Sorry. We understand. See, we don't necessarily. I mean, GCCs are growing a big way. For us, ER&D, we have two things. One is we have ER&D as a business. Also, our ER&D supports our DLM. What you would have seen over the years, we are pivoting very rapidly into DLM. For that, the ER&D is a very, very key part of the DLM initiative. That's kind of where we are heading. Okay. I'll exit back in the queue. Sure. Thanks. Thank you. The next question is from the line of Neel from Leshan. Please proceed. Yes, sir. Hi, Ravinder and team. Congratulations on such a strong set of numbers. Kudos to everyone for achieving such great milestones in the last 32 years. Wishing you continued success. Sir, towards the manufacturing, right? 58% of the revenue from manufacturing in H1 FY 2026 versus 30% in H1 FY 2025. This is letting the gross margin a bit. Service is not the growth driver for this quarter. There is a slight decrease in the revenue also and much more decline in margin. Sir, just want to understand, could you explain what we should expect for FY 2026 and FY 2027 between manufacturing and service, and there too, Neel, what kind of margin profile we should expect? Okay, Neel. Thank you very much. Like I said, we are not giving any forward guidance. But one of the things is, as we have seen over the years, we are very progressively moving into DLM. I think that momentum will continue. We will be having more and more DLM. That is where all our bigger investments are going in. For that, we will also continue to invest in our ER&D. We expect right now the momentum is very robust in both the verticals we operate in, both the high-tech and the engineering. Right. We expect this kind of momentum to continue. Today, given that there is a lot of friend-shoring and there is a lot of interest to a lot of global countries to both coming to India and also develop from India. We expect this momentum to continue in the years itself. So like, sir, if the momentum continues to increase, will we maintain the range of 20% or there will be lower than that? Last quarter, we have done the INR 60 crore from manufacturing side, and this quarter was very good due to INR 95 crore. Right. Still, what kind of margin profile, at least could you arrange or if you cannot specific number, I also agree that you cannot share the bad number. Any range would be helpful, sir. Range also we will not be able to share. But let us say that the last three quarters are quite representative. So you will have to- Okay kind of use that as a reference. Because just for everybody's benefit, this is something, I mean, some of you have met us in earlier calls and all that. Yes. This company we have very consciously worked for the last eight years. Where we moved from a pure ER&D to start getting into DLM. In between, we had two years of COVID. A lot of this work started eight years ago and we've invested, we have grown, we have got a lot of traction into DLM. Now slowly those things are beginning to come out and is more visible in the last few years. Understood. Sir, second question would be, sir, also what is your view on the competition, specifically like more global players wanting to invest in India and manufacture this equipment, right? These players are making much more critical machinery, and maybe we are also developing these kind of machines. Is there any chance of losing our share in terms of market share or what's your view on the competition? We've been working in this segment for many years, for about 20 years. We shifted from pure ER&D to DLM. This is industry-wise, business-wise, is not new to us. It is just that we have started scaling into DLM. India will continue to grow. This is the fastest-growing economy, large economy in the world today. We will expect more and more players, and with that we will grow, and so will others. We expect the entire both our verticals to significantly scale in the coming years. Understood. Sir, when one should expect the scaling in semiconductor equipment manufacturing side. Another like maybe INR 50 crore-INR 100 crore spend in the manufacturing from semiconductor equipment. Like I said, we are not giving segment-wise information. Okay. DLM will continue to scale. You've seen the things over the years, over the quarters. We will continue to be more DLM going forward. Okay. And sir, one last question- Sir, may we request you to join the question queue? Okay, thank you so much. Thank you. Ladies and gentlemen, in order to ensure that the management is able to answer questions from all participants in the queue, please limit your questions to two per participant. The next question is from the line of Rajarat Agrawal from C.J. Shah Family Office. Please proceed. Hello, sir. Congratulations on good set of numbers. Sir, I have two questions. Sir, you have committed big CapEx in Karnataka and Tamil Nadu. Just wanted to broadly understand, out of the INR 750 crores that we have committed, how much would be incentives and land provided by the government, and how much would we have to put in business? Okay. You had another question or? Can I ask after you answer this? Okay, sure. Thank you very much. Broadly, we are still working out the incentives which are available. But as we know, there is about 25% which is publicly announced by the central government. Yes. At the state government level, there is an additional 25%. This is definitely for CapEx, in some cases it is a few other things. Yeah. And- Mainly for the machinery part of it. Mainly for the machinery part. Yes. We are in the process of finalizing our applications at both the central level and at the state level. We should know that maybe in the next month or so on how much would be incentive and how much would be our contribution. Okay. Got it, sir. Second question on the solar side. We are doing this work in our JV. Are you planning a separate plant for this? How fast would be the ramp-up? Just want to broadly understand your thoughts on the solar side. Sure. We have a separate plant, which should be in place in the next few months and has a separate plant for that. We expect some of the deliveries to happen later this year or definitely early part of next year. Most probably later this year. Okay. Got it, sir. Those are my questions. Thank you so much, sir. You are welcome. Thank you. Thank you. The next question is from the line of Ayush Agarwal from MAPR Value Investing Fund. Please proceed. Good afternoon, sir. Thanks for the opportunity. Sir, in DLM, within the consumer electronics division, without naming any customers or the value of machinery or anything, would just like to understand the scope of machinery that we are currently doing, number of machinery that we are doing, and how many do we plan to add? If you can give some numbers. Sure. We will not be able to quantify the number of machinery, but I can tell you what kind of machines they are. Across our sectors, whether it is industrial, consumer, solar or in semiconductor, we do a lot of automation-related work, which includes visions, which includes robotics, which includes lasers and a lot of testing. These are all the different areas we cover across in the high-tech. We will not be able to quantify and tell you it boils down to segmentation, which right now we have agreements not to disclose some of this information. Understood, sir. Just trying to understand the scope of work. Typically, given India now is manufacturing a lot of consumer electronics, including smartphones and other things. If you can help us understand whenever any manufacturer smartphone assembly is putting up a capacity, whether it be the INR 10 million line or INR 50 million line, whatever that amount is, are we catering to 10% of their needs, 20% of their needs? If you can comment something on that, because that will help us understand how much of the value chain we are covering. That also, let me answer it in a more broad way. If you take the total addressable market which is available to us across all our sectors, it is somewhere about, say, annually, and this is a global requirement, it is not necessarily India. It would be at least about $40 billion per annum. It is the total addressable market by us and the total market itself in the segments we play in is about $130 billion-$140 billion globally. That is one part. In the $40 billion is where we have capability to address some of it. There are some areas, like I said, those five, six areas where we are working on. We will continue to do more and more of that and also add some more adjacent capabilities to that. Whether it is opportunities in India or outside India, wherever in the world, we should be able to address them. By and large, what we do is not necessarily an India play. We work with lot of global majors and with whom we have been working for quite some time. While I understand that we work with a lot of global customers, majorly it is at least as we segment it in our quarterly reviews, is that under DLM also it is majorly domestic. Even though if they are global customers, we are supplying to their domestic needs. Just if you can segment it further, like you have already segmented from the 130 billion-140 billion opportunity. 40 billion is where we have capability. Within the 40 billion, how much would be that done in India? Something which you can let me know about that. How much is India currently and where you are playing? No, that also is very difficult. In terms of the global customers, whether it is in India or somebody is exporting from India or it has gone to some global location, we don't segment it in terms of geography as much. We're not very concerned about it. We don't look at it that way. Because today every major global player has presence in India one way or the other. In many cases, they will engage with the local entity, even if it is for a global delivery. Understood, sir. Thank you so much. You're welcome. Thank you. Participants who wish to ask a question may press star and one now. The next question is on the line of Sandhya from Ampersand Capital. Please proceed. Yes. Thank you, sir, for the opportunity. Thanks for organizing your maiden analyst conference call. I just want to know that you have announced this massive CapEx of some INR 750 crore with Karnataka and Tamil Nadu government. How important, how critical these are for your sustaining the growth that you said that you will be doing? Because this government, their approval et cetera can be up and down. If you can just give a sense of that. Also in that context, will your asset turn ratios or return on capital employed et cetera will be different with this kind of CapExes? Are you getting into a new area of businesses or you are maintaining and you are continuing in the same area of business in these two states? I will answer the second part first. Broadly, we will continue to focus on what we are currently doing, and we will continue to look for anything which is adjacent to our capabilities. Whatever we feel is adjacent. That is one. The reason we are looking at these geographies is that is where the current ecosystem is in terms of suppliers, in terms of skilled people, in terms of manpower. Right now, because of what has been happening over the years, whether it is in terms of defense tech or aerospace and all these areas, there is a lot of maturity in terms of supply chain and skilled people in these parts of India. That is the reason we are expanding in these two areas currently. Understood, sir. Sir, if you can just tell me, when you mentioned that you will sustain the growth momentum, do you have any particular kind of rate that you wanted to highlight? We can't give forward guidance, but normally we have visibility of at least 18 months and in some cases 24 months, because we are always working on something which we build. It has to go through qualification, and only then can we make and deliver. So we typically have a rolling meaning at any point of time, we would have at least an 18-month forward visibility on what we are doing. It is based on that we can say that we can maintain the momentum. Thank you. You're welcome. Thank you. The next question is on the line of Aman from Institute Invest Managers. Please proceed. Good afternoon, sir. My first question is on employee count. If you can talk about what is the number as of today in services as well as what is the number today in manufacturing, and where do we see this number in the next 1-2 years? Sure. We are a little over 2,000 people, broadly, at a very high level. In the 2,000 people, about 40% would be what we call manufacturing. That is DLM and people who are full-time supporting DLM. This is what we call manufacturing engineering. The ER&D would be about 1,200. In the ER&D, they also support DLM, broadly, if you look at it. You can take it as a 60-40, 40 dedicated to DLM, and in the 60%, some of them also support some of design activities to the DLM. That's where we are on the employee front. And sir, the question was also where do we see this number for both the segments in the next 1-2 years? We will see this probably, again, it goes down to guidance. This number will continue to grow. We've grown substantially if you look at the last 2-3 years, there's been a substantial growth. It will be probably like I said earlier, if you look at the last year or 2, if you've seen the scale-up in our DLM. I think that would also have an impact on the employee growth in the same ratio. So, if the number of employees double to 4,000 in the next 1, 2 years, you think the ratio will be 60/40 only or the ratio will switch? Yeah, it will be somewhere there because since it is basically very high mix manufacturing, it has a lot of design and engineering content. So we expect that 60/40 or maybe a 50/50 kind of a mix. Sure sir. My next question is, as of today, we have expanded our DLM facility in the last few months and few quarters. But without the MoU land and without the MoU capacity, what is the peak capacity, peak revenue we can do from the current facilities in DLM? Since we are also adding some other facilities, we are adding one more facility in the next few months in Karnataka. This will be very similar to the one we already have. We should have that up and ready in the next couple of months to add to our capacity. In terms of capacity utilization, I will let Rajit answer that. Respecting the capacity utilization, it is currently about 80%-85%. Similar growth we are expecting in the coming quarters as well. Sir, we are still up-selling in DLM, whatever number. Then 80%, 85% means obviously new plant will get added, but peak revenue is maybe INR 600 crore-INR 700 crore in DLM is the understanding, right? Again, that is leading to forward guidance. What we are trying to say is we are adding one more capacity which should be up and ready very soon. Very soon as in maybe end of December or maybe early January. That will be a substantial increase in our capacity. That would effectively mean in 12 months, we would have added three facilities. And we will continue doing that while the larger one happens. Sure sir. Final question is on senior management hiring. We recently added a couple of senior people in our team. If you can talk about how the integration process is happening and what is the plan of hiring more people in the organization? Sure. We have a lot of senior people joining us very strategically. We are hiring both in India and outside of India, and we continue to do so in both our segments. Again, like I said, we are very design and engineering heavy for the DLM. So we look for people, and it is not something which is very commonly available. So we are very actively looking. We have added quite a few, and we will continue to keep adding the senior management. Okay. Thank you, sir. You're welcome. Thank you. The next question is on the line of Anuj Jain, an investor. Please proceed. Thanks for the opportunity, sir, and congratulations on a good set of numbers. One question that I have is we haven't seen service revenue growth in this quarter, so when do you think our service revenues can start growing again? My second question is, most of whatever you're saying, we understand that you can't say client names, but the kind of information, for example, a company of our size doing around INR 500-600 crores in revenues, it becomes very difficult when you say INR 40 billion is our addressable market size. Can we just try to be more precise about what we are trying to address here? You are not even ready to bifurcate between engineering and IT. I just don't know how can one appreciate the work that we are doing if we can't even give the level of details which are expected. Finally, a feedback on presentation. You could have just given a statement and not given a presentation, because the presentation was just presenting numbers in a different way, which I think there are a lot of websites which can do better than that. If you can give qualitative data, share qualitative data in the presentation, that would help investors understand what we are doing, the way we are doing. Finally, on this CapEx of INR 500 crores and INR 300 crores that you have announced. Can you share in terms of segments or rather phases, when can we see these different phases of these CapEx coming in? When can we see, do we expect revenue recognition or revenue realization from the CapEx happening once the INR 500 crore is completely deployed or the INR 300 crore is completely deployed? Or can we see it in phases, the revenue to start flowing from this? If you can answer that. From the current set of, the management indicated that we are at 80% utilization levels now. With the new facility that is coming up, which is outside of this CapEx, what can be the peak lane utilization? Got it. Okay. So feedback taken on the presentation, we will work on that going forward. In terms of the ER&D revenue, some of these are fixed bid projects, so we will hope to finish them in the early part of Q3. So some of those revenues will reflect in Q3. Then in terms of the additional capacity, what we are adding, the incremental one which we are adding in the next few months, that should probably give us some ease in Q4 and going beyond that. In terms of incremental on the larger ones, they will definitely be in phases. We will be probably doing it across three phases, and as each phase is implemented, the revenue will be accredited. The other question you had is in terms of giving you data on how to understand it. I think, like I said, segmentation is difficult for us and we are also trying to see what is the best way to communicate this. We will also see if there a better way to communicate in terms of segmentation. Sir, one question is on the service side, growth on the services side, from when can we expect to see that? Services growth is also happening. It is not like it is not happening. You will see that in the coming quarter. We will continue to grow on that side as well. But we are very consciously using some of our ER&D capability to drive the DLM. That is where we see more, because like Satish saying, we are very rapidly switching into DLM, so we use our ER&D also to help us design and engineer newer products. So that becomes our priority. For us, priority means if we need capacity to drive DLM, we will use our ER&D capacity to drive our DLM, and ER&D will continue to scale in its normal way. Thank you, sir. Thanks for responding. Welcome. Thank you. The next question is on the line of Adil from Hedgehog Investments. Please proceed. Thanks for the opportunity. I just wanted one clarification, because in the manufacturing division, like you mentioned that we have visibility for next 18 to 24 months. I just wanted to understand the current run rate which we have in the manufacturing business. Was there any one-off large order which contributed to this or should we expect this run rate to sustain? Just one clarification on this. Also, the larger part of the question on the CapEx side, we have INR 300 crore to INR 500 crore CapEx which we have. On the current new manufacturing plant, which is going to start by this maybe Q4 of FY 2026, and it is also progressing as per schedule. How much of that CapEx has been deployed in this plant, and how much should we expect going forward? Second question is on the services. Sir, services revenue has been somewhat lumpy, in my understanding. If maybe you can explain the nature of this business and what drives this variation. How should we expect going forward this lumpiness and also on improvements here, how should we look at that? Any comments on that will be really helpful. Got it. Again, when we said we have 18 to 24 months visibility, these are also industries and customers we've been engaged for a while. It's just something which is lumpy and which will like a spike and it will not like your question is over the one off. Like I said, these are things we've been working on and in our business, you have to design, engineer, prototype, qualify, and then start getting into volume production. That momentum will continue. That was one with your question. The other one was on the CapEx. This CapEx basically will be like Rajesh has already explained how much we are investing in the immediate few months. That simply accelerates from later part of Q4 into the following year and- The major part is coming in the coming year. In the coming year, major part is coming. Your other question is on the services revenue. Services revenue, like I said, there are some fixed bid projects and so on. We need to wait for some acceptance. You will see in the Q3, Q4, there will be some momentum on the R&D side as well. Understood, sir. Sir, one last question, because you cannot take maybe customers' names and all, but maybe if you can elaborate on the customer diversification, like how much of our revenue is currently concentrated and when the current new cases which we are going to deploy. Are we seeing traction from new customers across maybe new geographies or sectors or is it just getting concentrated into the existing customers? Maybe if you can elaborate on the customer diversification part that will be really helpful to understand the growth process going forward. Sure. We have existing customers and new customers. With the existing customers, we are always looking to, one, go to new geographies, also going to new product lines because many of our customers are large customers across both our verticals. It's also geography, additional product lines, and new customers. It's a combination of all of that which we continuously do. Mm-hmm. Got it, sir. Thank you. Thank you. All the best. Thank you. Thank you. The next question is from the line of Srikanth from Tam Capital. Please proceed. Am I audible? Yes, please. Thank you for the opportunity, sir. My question is relating to aerospace industry. We are providing services to aerospace companies, so whether the company is planning to provide components to the same clients. Is there any plan going on? Yeah. Thank you. We are working with a couple of aerospace companies, and we have been engaged with them for a few years, and we hope in the coming years that business would scale, because it is also very adjacent to what we are currently doing in the high-tech industry in terms of capability. Next question is relating to medical device. We are in the segment of industrial electronics. Whether this caters to medical device or something is going to happen, sir? When we say industrial, it also includes medical. Anything which we classify that under industrial electronics. That is an opportunity. Again, we have been working on that for several years. One final question is, we have collaboration with IISc Bangalore relating to nanoscience and engineering. Can you give business update, what is happening? What is the growth happening there? What is the future aspect, sir? Sure. We work with several academia. IIT, the TRENT, which is TRENT-II from Amazon, we have been working with them. We have been working with a couple of other educational institutions. We do couple of things. There are some very fundamental research projects where we are working on where it is a new process or a new technology. We do that. In some cases, if we are developing something and we need some assistance, especially in terms of materials, in terms of testing, in terms of what we call calibration and so on, we do work with academia wherever that capability and those facilities are available, including what we call standardization. We use some of their labs wherever they are, and we work with them. One final question relating to cybersecurity. We have collaborated with EclecticIQ, so can you see whether there is a new order coming or a new order pipeline to us? We work in that as part of our high-tech vertical. We do have some customers in the cybersecurity space, and we also use some of the technologies in what we develop, because a lot of what we develop has to have a security layer. We not only work with them, we also use some of these technologies within what we are building. Thank you. You are welcome. Thank you. The next question is from the line of Rupesh from Longequity Partners. Please proceed. Yeah. Hello, sir. Thank you. Thank you for the opportunity. I think my first really comment is follow on from the previous participant. I think Icon Engineering and Automation Limited is I think one of our competitors. I do not know if it is a competitor, but at least in the same field. When I go to their website, I, sir, I can see vision-based inspection systems. I can see photos of so many products. I can look at their assembly lines. There are so many more details, right, which kind of give the feel of the business, the complexity of the business. I think Titan Steel is significantly larger company than us, and if they are willing to share, then I think I would request you to re-look at our policy of not sharing some of these details, because I am sure they also have customer NDAs and other things. That is just the first sort of comment. My questions are, in export markets, right, because some of these customers you have said that your geography is not fixed. Where are we on the qualification processes for, let us say, semiconductor customers or consumer electronics customers? Some idea you can give that we will get most of the qualification in, let us say, 6 months, or it will take 1 year or 2 years, most of our offering will be qualified. Some qualitative comment around that. That would be one question. The second question, sir, is, a lot of these products that we supply, what is the replacement cycle for these products. I mean, are they linked when our customers do CapEx, like when they set up new lines or new fabs, or some of these products can also be linked to the production volume. As the production volume grows, there is a wear and tear and some of the other things, and then we also get repeat orders. Something about that. If you can address these two questions first. Sure. Your feedback taken. We will also see how best we can give more information. We will work on that for sure. Your other question is in terms of qualification. Qualification is a continuous process. It is not a one time. As and when you come up with newer fabs, products, subsystems, systems, anything, it has to get qualified, it has to get accepted. That is not a one time, it is a continuous process. Like I said, we have visibility for 18 to 24 months. In that, part of that is also getting qualification. The fact that we are working with this industry for about 20 years, and many of these customers also for a long time, and a lot of this process is known. Our learning process of this was many years ago. This continues on a continuous basis. Second is, you are basically talking about what is the life cycle or what is the life of these things. Different industry is different. If you go to something in consumer electronics, which is very fast-changing, this could be something which could be every year or maybe every year and a half, could be sometimes even less than a year, depending on the product. If you take semiconductor, it is a very long life cycle. It could be 15, 20, 25 years. But in that long life cycle, there is a lot of refreshment, there is a lot of upgrade, there is a lot of opportunity during that long life cycle. If you take industrial, it could be somewhere in between. It could be anywhere from, sometimes it is 5 years, sometimes it is 8 years. It comes somewhere in between in terms of the product life cycle. Each of them present a different opportunity. Semiconductor, of course, is a very high value and that is why it is a very long life cycle equipment. There, during the life cycle, there is a lot of opportunity to work with that equipment. Okay. Just one clarification, sir. Export manufacturing revenue is not much. It's like some, I think, half yearly 7 crore. Is qualifications holding back the growth in exports or still that is still in business development? That is one. The second question is, in the semiconductor, are we in the front-end manufacturing or we are in the back-end manufacturing? Most likely we should be in back-end. Some idea there around. I know there are a lot of semiconductor manufacturing capabilities are going on in India, but some idea about some sub-area of back-end line that you are focusing on. Sure. I'll answer the second one first. There is no back-end equipment being made in India. What you're referring to is probably OSAT, where they're using back-end equipment to package and bond and so on. That is the differentiator. We're not an OSAT company. We are at the equipment level. Almost everything we do are for global customers. We don't differentiate whether it's export or we domestically supply to any of the global majors within India, and whether they use it in India or take it wherever in the world, we don't really differentiate too much because today everything is very globalized. What you're telling about export revenue where something actually got shipped outside India for a non-rupee denomination versus supplying to a global major within India, we don't differentiate too much. That is kind of one distinction. I think I answered all the questions. Yeah. Okay. I mean, sorry. Are you in the wafer-growing part of the- Yeah. Are you in the machine. Okay, so you are in the wafer-growing part of the business. Yeah. We do both. We are both on the front-end and on the back-end. This is something we've been working on in semiconductor engineering for over two decades. So we've been on both the sides. These are all mostly global. I mean, there is some of our customers' equipment, as they go all over the world, some of that comes back to India as well for what is happening in India. Okay. I'll have more questions, and I'll come back in with you. Thank you. Sure. Thank you. Thank you. The next question is from the line of Anand Reddy from Nipank Capital. Please proceed. Yeah. Hi. My question is regarding your INR 760 crore CapEx over the medium term. Given the current cash flow from the size of your company, it is a very large number. Could you talk a bit about what is the means that you are thinking about financing this? Sure. Like I said earlier, it would be a combination of debt, accruals, incentives, and some equity, which we are working on, and this would be over three phases. Over the three phases, we will evaluate as and when it progresses on how much of debt, how much of equity, how much of incentives and accruals. There will be a combination of all four of these. Okay. Just to clarify, at this stage, you are still not clear how much equity will be required, right? We have a broad understanding. Depending on the phases, we will decide how we want to do this. Like I said, over the three phases, we will decide on how much we want to do. Okay, got it. Thanks. You're welcome. Thank you. The next question is from the line of Dev from Diamond Capital. Please proceed. Yeah. Am I audible? Yes, please. Go ahead. Yes. Thank you so much for the opportunity. Earlier, one of the participants asked about customer concentration. If you could put a number to it. How much would be the top one customer contributing to the revenue? Or probably if not top one, what would be the top three clients contributing to the revenue? And if you could provide this for both of the segment, manufacturing as well as service. This is first question. Okay. So roughly 60% is from 10 customers. That's what we can share. Individually, number one or number three or the top three will be difficult. So 60% will be from top 10 customers. This is for the overall business? Excuse me. This is for the overall business, manufacturing plus service? Overall business, yes. We do have customers for whom we do both DLM and ER&D as well. Got it. One more question. I know you are not giving any specific information, but if you could help us understand. I know one of the participants has brought up this point, but if you could just broadly help us understand. One of the participants also mentioned name of the competitor, but if you could help us understand, let's say, the manufacturing clients that you have today. How much portion of their capital, machinery requirement would you be meeting? I don't want any exact number, but if you could help us understand with the range, maybe, let's say, less than 10%, less than 5%. What is the number today, and what's the plan ahead? Are you developing new products for them? If you could just broadly help us understand this. To follow up on this, today, for your major clients in the manufacturing business, of the total portion of the line, how much is today indigenized? How much of the line is made by Indian players, and how much is still dependent upon, let's say, non-Indian players, in particular the Chinese players? If you could help us understand this part. Yeah. This last part will be difficult to answer for a number of reasons on how much is coming from India and non-India. See, for us, it's very difficult to give one number on what is our share in the CapEx, right? There are different types of technology, different types of equipment, where there is a different share. So it's not easy to give that answer. Since we work on a variety of technologies and a variety of equipment, each one is varied. So it's very hard to come up with a single number. Okay. But- That is also constantly changing given the momentum in India. Got it. I get that, but I just wanted the range of the total portion. I know you probably might be catering to different equipment of a different whole line, but just wanted a broad range of the total CapEx of the whole line, if you could give that number. See, there are places where we would be the sole supplier, there are customers where there will be other incumbents globally. So it is very difficult. It can go from- Okay single supplier to maybe four or five suppliers, some global suppliers. So it is hard to say that. Got it. No problem. One more question on the solar business. Have you supplied to any clients in India or globally for the solar business? If you could just help us understand, you are also talking about putting a plant for solar, right? If you could just help us understand, how are you expecting this business to scale up? Because we see a lot of capacities coming in cell plus panel in India at least. If you could just help us understand this part of the business. Sure. Solar today for us is an India play. Solar is not just a global play. As you know, there is a lot of solar happening in India, and India is probably the second-largest solar destination in the world. India is big for us as far as solar goes. Got it. Any clients have you already supplied to? One minute please. This is just a completion. We have of that question. Yeah, we have. We have. We have supplied, yes. Is it possible to name or? No, we are not naming, but I think the large solar players in India are known. They are handful of them, so we work with some of them. And our equipment is for the panel part or is it mostly for the cell equipment? It's at the cell level. Okay. No problem. Thank you. You're welcome. Thank you. The next question is from the line of Atinki Radha from Crisport Folio. Please proceed. Yeah, thanks for the opportunity. My question is regarding the semiconductor part. Given the move from the central government for the semiconductor industry, how our total addressable market will evolve given the opportunities that will be unfolding in the coming years? If you can delineate that, because what I understand, you have been supplying to the global players. As the industry evolves in India, how are roles getting involved? India, definitely there's a lot going on. The PLI scheme has been very helpful, and we've seen almost 10 or 12 different large investments being announced and all are being implemented. Like we told earlier, this is something we've been doing for a long time globally. Some of our customers' equipment are in India, and they'll continue to come back into India on the investments which are going on in India right now. It definitely helps the global semiconductor ecosystem and helps us as well, because anything happens here for any of our global customers, automatically a lot of the local support and all that would come to ASM. We'll get a big benefit with that. As of now, is there any semiconductor equipment manufacturing happening in India? Equipment manufacturing, I'm asking. No. Okay. That will come in, you are saying, correct? Yeah. Okay. That answers my question. Thank you. Thank you. Due to time constraints, that was the last question. I would now like to hand the conference over to the manager for the closing comments. Over to you, sir. Thanks, everyone, for joining us on the call today. What we would like to say is that these are very exciting times for ASM Technologies. We are operating in a very growing environment and have strengthened our own manufacturing ecosystem like we spoke about, and will remain focused on scaling both our engineering and our design and manufacturing value. Our focus will continue to be on profitable and sustainable growth driven by operational excellence, client partnerships, and disciplined capital allocation. For any other queries or clarifications, feel free to reach out to SGA, our investor relationships advisors. Once again, thank you very much for all your time, and wish you all a great day or the week ahead. Thank you. Thank you. On behalf of ASM Technologies, that concludes this conference. Thank you for joining us and you may now disconnect your lines.