Q2 25/26

Nov 12, 2025

Summary

Q2 revenue rose 11% YoY, while gross profit and EBITDA grew 4%; catalyst pass-through costs and growth investments weighed on margins. Lightweighting orders, the Donghee technology agreement and export wins underpin expansion plans.

Ladies and gentlemen, good day and welcome to the Sharda Motor Industries Limited Q2 FY26 conference call hosted by Equirus Securities Private 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 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. Mihir Vora. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. On behalf of Equirus Securities, I welcome you all to the Q2 FY26, which is a conference call of Sharda Motor. From the management side, we have with us Mr. Aashim Relan, CEO; Mr. Ashwani Maheshwari, Deputy MD; and Mr. G.D. Takkar, Group CFO. Without further ado, I would now hand over the call to management for the opening remarks. Over to you, sir. Thank you. Thank you very much, Mihir. Thank you everyone for joining today. I extend a warm welcome to all the participants on today's call. I am joined by our Group CEO, Mr. Aashim Relan, and Deputy Managing Director, Mr. Ashwani Maheshwari. I trust you have had the opportunity to review our Quarter 2 and H1 results and investor presentation, which are available on the stock exchanges as well as on the company's website. Before I move to the financials, let me briefly touch upon the Indian automobile industry's performance during Q2 FY26. During this quarter, the Indian automobile industry continued to post healthy growth across all vehicle categories, supported by steady demand momentum, GST relaxation, easing supply chain constraints, and festive season tailwinds. Passenger vehicle production rose by 4.2% year-on-year to 13.26 lakh units. Light commercial vehicle production grew by 11.9%, reaching 1.71 lakh units. Three-wheeler segment witnessed a strong over 18% year-on-year increase, with production rising to 3.58 lakh units. Two-wheeler production expanded by 10.6% to 69.26 lakh units, while tractor production registered a robust 14.6% growth to 3.24 lakh units. The Indian automobile industry maintained its strong growth trajectory in Q2 FY26, underpinned by robust consumer demand, a favorable festive season, and continued improvement in supply chain conditions. The industry's growth and performance across passenger vehicles, commercial vehicles, two-wheelers, three-wheelers, and tractors reflects a healthy mix of urban and rural demand drivers. Structural factors such as rising disposable income, sustained infrastructure investment, and the growing penetration of electric mobility continues to support medium-term growth prospects. With macroeconomic stability, improving financing conditions, and government focus on manufacturing and green mobility, the industry outlook remains positive for the coming quarters. Let me now move to the operational and financial performance for the quarter and half year ended September 30, 2025. For the quarter ended Q2 FY26, on a consolidated basis, we reported revenue of INR 787.2 crores, reflecting a year-over-year growth of 11%. Gross profit, which is a better indicator of our performance for the quarter, came in at INR 194.9 crores, up 4% year-over-year, which is in line with the industry growth for the same period. EBITDA for Q2 FY26 stood at INR 101 crores, translating to a year-over-year growth of 4%, and EBITDA margins stood at 12.8%. Profit before tax for the quarter stood at INR 101.9 crores after accounting for our share of profit from joint ventures and associates. Same quarter last year, PBT stood at INR 106.1 crores. Profit after tax, PAT, was INR 74.7 crores for Quarter 2 FY26. For the half year ended September 30, 2025, our total revenue stood at INR 1,543.5 crores, a growth of 11% over the corresponding period last year. Gross profit came in at INR 384.4 crores, up 4% year-over-year, in line with industry growth. EBITDA stood at INR 199.4 crores, largely in line with last year's same period, and EBITDA margin of 12.9%. Profit before tax stood at INR 232 crore after accounting for exceptional gain of INR 22.4 crores on sale of one of the idle industrial parcels located at Haridwar, Uttarakhand, and our share in profits from joint ventures and associates. H1 last year, PBT stood at INR 208.6 crores. PAT for this half year stood at INR 174.6 crores versus INR 155.5 crores in the corresponding period last year. In October 2025, that is last month, we entered into a Technology Licence Agreement with Donghee Industrial Company Limited, Republic of Korea. To further strengthen our advanced suspension portfolio, under this collaboration, Donghee will transfer its proven chassis and suspension technology, particularly of control arms and subframes, enabling Sharda Motor to manufacture these critical components locally for Indian and global OEM platforms in India. We are happy to announce two new orders in lightweighting verticals for control arms and links having combined annual value of US $14 million and lifetime value of US $70 million with SOP expected in Quarter 1 FY28. These orders are a significant milestone and a testament to our strategy of growing in lightweighting verticals. Our global business vertical established last year also continues to gain traction with another order with annual value of US $4.8 million and lifetime value of US $24 million from a customer added in Quarter 1. SOP expected in Quarter 4 FY27 with gradual ramp-up over two years post SOP. Additionally, we have further strengthened our innovation pipeline by filing one more patent during Quarter 2 FY26, taking the total to 60 patents filed to date. With that, we can open the floor for Q&A. Thank you very much. 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 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 questions are assembled. We take the first question from the line of Amit Hiranandani from PhillipCapital. Please proceed. Yeah, thanks for the opportunity. Sir, the first question is basically, in this quarter, the input cost looks to have inched up a lot. Wanted to understand any one-offs or delay in getting price revisions. Hi. Maybe, Jitendra, you can take this question. Yeah. Thank you, sir. Thanks, Amit, for this question. Basically, you are referring to the overall gross margins. Input cost has gone up. If you see, the top line is made up of catalysts, which also reflects in the RNP, and the prices of catalysts have gone up due to the increase in prices of the underlying metals, which is the primary reason for increase in input cost. Having said that, as previously also shared, that we should look at the growth of gross profit in absolute numbers. That is the right indicator of our performance. Sure, sir. Sir, secondly, wanted to understand how is the traction with your top three key clients and how do you see the demand momentum in the near term? Also, if you can let us know which models we are winning in the passenger vehicles and small commercial vehicle case. Yes, Jitendra, you can. Yes. Good evening. Good evening, everyone. We can't give specific models as well as customer-related information because of confidentiality. But in general, after the GST cuts and this festive season, the momentum looks very good and the sentiment in the market is very positive, especially after the festival season. Specific models and specific customer-related information, we don't give. Sure. Sir, just wanted to, if you can give a flavor basically where do you see major traction like the PV, CVs, if you can broadly select something. Yeah. Our standalone results would have PV and LCV only because CV goes into the joint venture. However, we see across segments that there is a good positivity in the market. Noted. Sir, lastly, where do you see the new businesses revenues, say by next five years, by FY 2030, and how are the margin profiles into this? Sure. On the business side, on our growth areas, I will pass it to Ashwani for the next five years. Margin profiles is something which we will keep for later. Ashwani, over to you. Mr. Amit, are you on the line? Sorry, can you hear me? Yeah, we can hear you now. We can hear you now. I think you are on mute. Okay. We can hear you now. Okay. For the next five years, our strategy is going to be scaling up the lightweighting vertical, of which we have spoken about earlier. Essentially, it will come through market share plus customer gains in the various products we have launched. We will also look at M&A for localization of powertrain agnostic components and entry into some export markets. There is an export growth. The team is already set up, and we are already seeing some traction, which will happen in not only emission components but also in adjacent fields such as temperature control tubes and heat shields. There is going to be growth in the domestic emission reduction business, in the temperature-controlled pipes and ECUs. The related growth on the norms, which will increase the content in some fashion, that will also guide for our next five years. Margin profile, it is too early. For some of the components, it is too early to say how the margin will pan out. But as said, we are going to be maximizing the margin. Also, we are going to be staying in a healthy ROCE level. Sir, basically, my question was, in the new business vertical like lightweighting, export, and other things, presently, what is the contribution of the total revenue and how do you see it growing by FY 2030, next five years? Sure. Maybe I take this one. Exports, as we speak today, is a very small percentage of overall revenue. The lightweighting part of it is roughly 10% of revenues. As you will see from the order wins that we have already had now in exports, the previously announced plus the one announced right now in this quarter, plus lightweighting, both would become more significant as a percentage of the sales. Exact number in terms of guidance, I think it is too early to share at what proportion they will be. How are the margin profile on these new businesses? On the export side, the margin profiles are definitely very good. At the same time, exports is also going to have a lot of working capital involved. So on a ROCE level, it should be neutral. On the lightweighting side, I think we are just getting going. It is too early to indicate yet. As the business matures, we will discuss it on the lightweighting. Just a quick one question, if I can squeeze in. Just an update on the TREM V and anything on the table for M&A next. Sorry, the voice is a little bit distorted. If you can just repeat the question, please. Yeah. Any update you want to give on the TREM V regulations and anything on the table for M&A opportunities? Sure. TREM V, the notification remains to be first April 2026 by the government. However, a change seems very likely given that we are less than a quarter or maybe four months away from that. So I think a change is very likely. The nature of the change is very difficult to price right now because there is no formal communication. Even we are awaiting on the communication as well. And on the M&A, sir? M&A, maybe Ashwani sir, you can take the M&A side. As we stated, in terms of we are always open towards an M&A. Specifically, as I said, for the next five years we spoke about, we are talking about a preferential M&A in the lightweighting vertical. That is where we will be. But we are going to be very mindful of the ROCE and the margin percentages which we get into. But anything on the table at the moment? There are multiple conversations which are happening. But since these conversations are not at a stage of maturity which we can disclose for confidentiality purposes, we would stay away from making a comment. But there are multiple conversations which are going on. I will just add to this point as well. Mr. Ashwani. I will just add to the point and then we can move to the next question. But as we have already made our first significant technical agreement, very similarly, there are various other conversations and it is best to update once it gets concluded, given that sometimes it takes time with similar conversations are ongoing. Understood, sir. Thank you so much. Thank you. We take the next question from the line of Rakesh from Axis AMC. Please proceed. Yeah. Hi, team. My question is regarding the Donghee tech transfer. I just want to understand how are we looking at the value add proportion. I understand we have highlighted that there's a 3x jump in the content per vehicle for the suspension business from the existing scale where we are. If you can little bit highlight, beyond that tech transfer, how Sharda Motor can enable value add for the customer in India in terms of the be it manufacturing or premiumization or the content addition. If you can just highlight one point over there. A sub-part to this question is, how will we be accounting for this particular revenues? Will this go directly under a standalone business or we will have as a form of a share of JV, if you guys figured out that till now. I'll come back on the next question. Sure. I'll take the latter part first. In terms of revenue, this will all come into the standalone. This is a technical agreement. This is not a joint venture. All the revenues that we gain from this agreement will be in the standalone business. Now I take a brief about the Donghee agreement and the value proposition for the customers. That's something Ashwani sir, maybe if you can just take through the brief on the Donghee. Sure, Ashwani. Thanks. Just to give a brief on Donghee. Donghee is a global tier 1 auto component player. They specialize in chassis suspension systems, amongst others. The TLA which we have will essentially strengthen our existing control arm and links business with quite cutting-edge technology, and will also add subframes and torsion beams in our product portfolio. Donghee is a $2 billion revenue, worldwide presence, and has strong R&D capability in all powertrains. It supplies to many leading global OEMs. It has technological expertise and also is successful in China with new age OEMs. What Donghee brings onto the table is this cutting-edge technology and a vast global experience. We at SMIL have deep customer relationships, our ability to localize R&D, and a strong local manufacturing strength. This put together, we are going to provide the customers a product portfolio spanning from control arm, links, subframes, torsion beams with Donghee technology localized in India, and with our manufacturing expertise, wherein we have the capabilities spread across and customer relationships. Okay. I will just add. Sure. Maybe I will just add to this also. I think one part of your question, what is the overall opportunity and what is happening in the market? One trend that we are seeing, and I think all of us are seeing maybe, that the market is moving towards a multi-powertrain environment. That means ICE, hybrid, EVs, all of them will coexist, and the mix will keep changing. One priority by all our customers is to standardize and commonize as much as they can across these platforms and powertrains. That requires a lot of technology and experience. In addition to that, lightweighting has become a key priority for all our customers because, one, it drives total cost of ownership reduction, and second, because of the various norms such as CAFE as well as safety, it has become a very strong requirement. In ICE vehicles, it's as simple that if the car is lighter, the mileage becomes better. In EVs and hybrids, it supports in range extension and/or by cost reduction, because the lower the weight of the structure, the smaller the battery that's required. There's a very big opportunity to bring in technology into this traditional space because OEMs in India are looking to commonize, standardize, as well as lightweight all their suspension systems. That's where Donghee has a very key strength, where it's been successful, not only in South Korea but the rest of the world, and especially with a lot of these new age OEMs in China as well. No, thanks, Ashwani, that helps. There's a sub-part question over there. When you look at your overall CapEx number now, with this coming into the picture, where do you see your overall CapEx momentum shape up? Just one more thing on what you said, that there is a powertrain-agnostic approach which is required and hence the technology comes into the picture. Are we right now able to categorize the order which we have in hand? Is it more ICE focused today or is it a mix of ICE and EV products? Yeah. First, on the CapEx side, that CapEx will be dependent and linked to new order wins, right? As we win new orders, we keep updating, and we'll update the CapEx figure. Currently, what we've guided for CapEx is INR 70 crore to INR 75 crore. That's, of course, excluding any further new order wins. As maybe it's too early right now to guide on an additional CapEx number. Your second question, if you can repeat again? The second part of the question. As we have highlighted the order value as a lifetime value, and what we are co-joining is that it's a multi-powertrain approach where this is a strategic business which we are winning. What is the current order book content? Is it purely ICE focused, or it's a mix of ICE and EV or hybrid, if you can highlight that? Yeah. So in the lightweight vertical, whatever we have shared is powertrain agnostic, right? So they sometimes use the same parts for ICE, EV, and that is interchangeable. That strategy at the OEM end is also evolving. But whatever we have in this product portfolio of lightweight, that is all powertrain agnostic. Okay. Just one last thing. You have in the suspension side of the business for an existing customer also, right? So how is this going to differentiate from your existing business? Just the sub-parts are different or from the customer standpoint of view, how does this change in terms of our capability? Yeah. So we have a suspension, first of all, to clarify, is very broad term. So it is best to talk about the sub-parts within suspension. So our current business is control arms and links. That is the business which we have with our three customers now in India. That business was mostly build to print. Maybe last one or two years, we augmented our R&D to put in some R&D capabilities into that. A little bit of augmentation of our R&D also has given us scale effect results. So if you see our market share is increasing, and it will continue to increase in that. In this part of the business, now, there is a big technology gap that existed, that we did not have global-level technology. With Donghee coming in, we would have global-level technology into control arms and links. In addition to that, currently we have no subframe or torsion beam business. These are new products which get added to our product portfolio, and now we can offer that to the OEMs and the technology as well as the manufacturing know-how, processes, experience, et cetera, we get as part of this agreement. So we strengthen our links and control arm business, plus we add more products and more content products as a result of this agreement. Got it. If we can, you know, give some color on some of the- Mr. Rakesh, I would request you to join the queue. Sure. Thank you so much, Ash. Bye. Thank you. Thank you so much. Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to two per participant. We take the next question from the line of Sanket Kearskar from Ashika Stock Services Limited, Institutional Desk. Please proceed. Thank you for the opportunity, sir. My first question is on basic financials. In this quarter, our GP growth for the company is 3.5%, whereas production growth for passenger vehicles as well as light commercial vehicles have exceeded 4%-5%. I want to understand where the growth has been lagging. Also, if you can shed a light how the content per vehicle is shaping in this quarter in comparison to the last quarter. At the same time, if you can explain us how the EBITDA margin contraction had happened and what are the factors which have led to this. That's my first set of questions. I think GB, sir, will be able to take this. Yeah. Thank you, Ash, sir. Thanks, Sanket, for your question. First, on the gross profit growth. First of all, one individual quarter is not the right indicator. Having said that, if you look at the overall growth in gross profit, that is broadly in line with the industry at 4% put together. This is broadly moving in line with the industry. However, overall sales is on higher side due to the catalyst element, which I just explained in response to one of the other questions. In terms of EBITDA margins, sir, these are broadly in the range of 13%-14%. In Q2, these were at 12.8% and in first half, if you look at, these were 12.9%. Now, this appears slightly lower, primarily due to product mix and higher prices of bricks, which were as a result of upward movement in the prices of the noble metals, which are the underlying content of these catalysts. Therefore, overall margin percentage gets impacted due to higher denominators and therefore you would see top-line growth 11%, gross profit growth 4%. Additionally, we have also augmented our global business development team and team for lightweighting. Plus, there were marginal increments also, which have resulted in a rise in the overall employee cost and other expenses also went up slightly with the investments done in M&A teams and strategy teams and also business development consultants, besides increases in various other items which are part of other expenses, which are partly variable and partly fixed. These put together are contributing to the compression in the margins. That briefly responds to your questions. Sure, sir. Thank you, sir. Sir, from what I understand regarding this company, the catalyst part is often passed through, so it does not come into the EBITDA margin. Secondly, if you can quantify the one-offs which are there in this quarter. First of all, you are absolutely right. Catalyst is a pass-through element. It does not affect our profitability. However, it affects the margin percentage. If you have a higher denominator because of higher catalyst sales, either as a result of those products which have catalysts with them or if the price of the catalyst goes up, as a percentage, purely mathematically, the margin percentage appears lower. That is one clarification. What was your second question? Can you come back? What was the other part of the question, Sanket? Mr. Sanket, I would request you to unmute yourself and then speak. Sir, it was regarding the margin contraction and one-offs. If you can quantify the number of, I mean, in rupees, what is the one-off in quarter 2? No. It is very difficult, Sanket, to quantify a particular number for a particular quarter because this is a combination of many cost heads which are fixed as well as variable, and some are semi-variable. It is very difficult to quantify. But primarily these were on account of expenses in the areas of M&A strategy, business development for the growth of the business. Broadly, probably if you see the overall long-term data for these expenses, you will get the clear idea. Very difficult to carve out any specific item because each quarter is different from the other quarter. Sure, sir. Thank you, sir. My second question is on our technology partnership with Donghee. I wanted to know where are we planning to manufacture these products, and what are the financial terms, as in any royalties do we plan to give to that company. Also, at the same time, do we have any territorial restrictions with respect to the technological partnership we have with Donghee. Because there are some existing customers which are there in India as well. Yeah, I'll take that question. Thanks. Regarding the terms, it's a general TLA which has a royalty percentage and a one-time payment. The exact numbers, of course, we can't share. Coming to the manufacturing, we want to really look at our entire manufacturing footprint wherever we can co-use the facility. If an order wins, which is significant, requires a new facility, we can look at it based on the customer that we win from. These products are very heavy, so you need to be close to the customer. The good part is our manufacturing facilities are close to most of our target customers. In terms of restrictions, there are no restrictions. It's an India-based agreement, of course, so the focus is on India and on the PV market. Sure, sir. Thank you, sir. I will come back in the queue. Thank you. Thank you. We take the next question from the line of Mr. Mihir Vora from Equirus Securities Private Limited. Please proceed with your question. Just one question from my side. Basically, in terms of exports, we had mentioned in our previous PPT that we have a new order which will be ramping up from Q4 FY 2026, basically North American engine manufacturer. I just wanted to know where are we on that ramp-up part, and do we expect it to start on time, or because of tariffs, we are seeing some challenges there? Regarding the order, which is the previous big win that we had in the export segment, we expect that order to start two quarters after previously announced. There should be around a two-quarter delay. That is not much to do with tariffs. The end product SOP is going to start two quarters later than planned by the end customer, and that could be the cause of pre-buying in the U.S. for old model inventory, and they have indicated that they have to dilute that before they start the SOP for the new model where our products will go. All right. But the overall traction in terms of exports continues to be decent in terms of the RFQ side and how we are seeing- Yeah. It is surprisingly good, and that is indicated that we just got another big order, which we announced as part of this call. Even we have gotten confirmation for the previous order that the customer is going ahead. A lot of good traction is there in terms of RFQs and so on. This is, of course, not limited just to the U.S. market, also the Europe market. Now Middle Eastern market, there is a lot of interest also that has started coming in. All right. All right, sir. Okay. That's all from my side. Thank you. Thank you. We take the next question from the line of Ankur Bodar from Swan Investments. Please proceed. Hi, sir. My question is related to our partnership with Donghee. The two new products that we are developing with them are the subframes and the torsion beams. Can you share the timeline by when will the products be developed, number one? Number two, could you also tell us what would be the opportunity size in India, and who are our main competitors for these products? Sure. The two products, in terms of technology now, we have accelerated the timeline to get the technology, of course, as part of this agreement. We are already offering it to our customers and are in the process of the business development cycle. As it is too early, it just happened maybe a couple of weeks ago only, the Donghee agreement, so it is too early to indicate on a timeline right now. However, the process of business development has already started, and we have the capability technology already with us as a result of this agreement. The second part of your question, if you can just repeat, please. What is the total opportunity size, and who are our competitors for this? Yeah. The opportunity size now, the kit value from these newer products is INR 4,000-INR 10,000. If you add in the previous products, which was our links and control arms, the total kit value of content per vehicle is between INR 6,000-INR 18,000 per car in India. The target is, of course, the PV market, so that would be the opportunity. Okay. Are we also looking at exports for these products or as of now, it is only for the domestic market? The focus is on the domestic market. At the same time, with this technology partnership, we get much more confidence, especially on control arms and links, because we already have a decent sized business from control arms and links before. This partnership gives us much more confidence, so we could approach for control arms and links, some export opportunities. However, this TLA is fully focused on the Indian market. At this stage, it would be for the domestic market. All right. Thank you. Thank you. Thank you. We take the next question from the line of Ganesh Ram from Unifi Capital. Please proceed. Thank you for taking my question. Apologies, I am not very familiar with the company. I have two broader questions. The first is to understand that your strategy you have outlined is to increase the contribution of CVs and also reduce the dependence on the emission systems, right? Over the next three to five years, if you have to double that share, exactly how much would be the opportunity size from these new products and how are you addressing the export market? That is the first question. If you can just repeat your question. Your voice is coming very muffled. If you can just repeat the question, please. Yes. Just a minute. I was just stating that when I looked at your filings, you indicate that you want to increase the contribution coming from commercial vehicles in your business, and also that you are focusing on exports incrementally. On the product side, lightweighting seems to be a critical focus of yours. The sense I am trying to develop from you is what would be the quantity of the opportunities that you are pursuing in the next three to five years, and where would be the source of these opportunities? Sure. Thanks for the question. For the next five years, the focus is first to scale up the lightweighting vertical, and within that is to gain market share plus customers in the existing business that we have of control arms and links. Now with the further strengthening with the Donghee TLA, we have added more products to the portfolio, and we are hopeful to gain business from these products. Plus, within this vertical only, we are in talks for various other additions in terms of offerings. This is a very vast space, lightweighting, and we want to keep adding content to our offerings, and this could be a big growth engine for us. In addition to that, we are also actively looking at M&A opportunities in the powertrain-agnostic components area, and specifically in areas where OEMs may need some support in localization. This would be another lever of growth in the next five years. On the export side, export, we are focused on the U.S. market, the Europe market, and now even the Middle East market, as there is a lot of traction coming out of the Middle East, especially in the last six months. Within exports, we have a focus on CV emission components, temperature control tubes, heat shields, tractor and genset emission components. The individual size of the export market or our serviceable addressable market, at the end, I will request G.D. sir if you can share the numbers. But before that, I will go to the next growth lever, which is within domestic emissions, we see a very good opportunity on the adjacencies, which is again, temperature-controlled pipes and heat shields. As we move forward within domestic emission norms, there will be new norms coming up in the future, which will keep adding content, and some of those norms, like BS7, which we have already spoken about. Now coming to the export opportunity that, G.D. sir, if you can just share the serviceable addressable market for our audience. Sure. Thank you. In terms of global opportunities, if you look at the investor presentation, we have summarized the target addressable market for various product categories. CV emission components, we have assessed that opportunity to the tune of $1.1 billion. Then tractor emission and muffler systems, $85 million, genset emission and muffler systems, $225 million, heat shields, $100 million, and temperature-controlled pipes, $310 million. This adds up to roughly $2 billion coming both from U.S. and European markets. These are the select product categories being targeted for the growth of the global business. Thank you. That is a very clear answer. If I may just follow up on the same. When it comes to the new lightweighting technology that you've gotten into a technological agreement, currently, what is the supply chain for it in India and what is the pitch that you're making to customers? The same question for exports as well. When we're going to Europe, U.S., Middle East, and we're focusing on machine components, what is the pitch that you're making to customers? Sure. First I'll go over the lightweighting opportunity. Lightweighting is such a vast area that there would be many players in it. I'll go into the subsections of lightweighting. In the subsections right now, the field that we are playing in is control arms, links, and now we've added subframes and torsion beams. Torsion beams, in fact, there are many kinds of beams also. That is the field we are currently playing in. What is happening is that this market is evolving very quickly. This market and these products had very traditional players and very traditional stamping kind of businesses which were build to print. As I mentioned before in one of the questions, with the market in general shifting to multi powertrains, lightweighting becoming a huge priority because of reducing the TCO as well as various norms such as CAFE that are coming up, there is a need for technology in these products. With Donghee, we are able to now provide the technology that is required to make these products lighter, stronger, as well as harmonize and standardize them across power plants to the OEMs locally. That's our clear pitch, that we are able to bridge this gap which exists in the market due to the evolving dynamics of the PV industry in India. Now coming to the export side. Export side, if you see the subsections that we have highlighted in terms of our target areas, these are places where we already have a lot of strengths. We are one of the very few companies in the world which has experience as well as global-level technology for emissions. In PV emissions, we are very comfortable, and we are very used to these products, and that is our pitch to the customers. Similarly, in temperature-controlled pipes, we've already now started temperature-controlled tubes, pipes for the Indian market, and we are the second company in India and probably the third or fourth globally that is now having experience in these products. For things like heat shields as well as insert emissions, et cetera, we have already been manufacturing them for a very long time in India. Part of our backward integration when it comes to heat shields and with insert that already we have some exports. That is our pitch, that we know these products very well, and we are one of the few companies which has their own technology as well as experience of that. Thank you. That was very clear. If I can just ask one or two clarifications. There is a lot of work done. Mr. Gansh Rao. Yeah. Sir, could you please repeat? Could you go back to the queue, as there are several participants waiting for their turn? Yeah. All right, sir. Thank you. Thank you. We take the next question from the line of Preet from InCred AMC. Please proceed. Thank you for the opportunity. Sir, I would like to ask on the control arms. This quarter, our gross profit growth was around 4%, but last year we had around 10% market share of control arms, which has currently grown to 12.5%. So if you can just highlight why this growth is not reflecting in Q2 numbers. Was this quarter we had a less control arm business, or what was the exact? If you could mention something on this. Sure. The control arm business, one, is still just about 10% of our sales. In terms of the growth in Q2, last year also, we indicated that the businesses that we won are coming in Q3 and Q4, not in Q2. The SOPs are in Q3 and Q4. These businesses, maybe VBSan will share the exact numbers, are also starting in these quarters. Today, the new business wins that we have announced, those will move on to Q1 FY28. This will gradually start becoming a larger part of the revenues and will also then positively show up. Got it, sir. Under this technology arrangement which we have with Donghee, recently you mentioned that we are targeting the PV market. On the other side, we are focusing to double our revenues in CV side, and we are continuously great collaboration which will add a lot of revenue for us. Our PV is getting expanded. Just wanted to understand what exactly it and also that you mentioned the market side. If you could mention something about the competitors. Who will be our competitors from whom we will be winning this market share across on control arm side as well as these new products which we are getting from that? Sure. I think there are many parts to your question. If you could just repeat the parts to your question as your voice is muffled. I am asking about the control arms business, like whom we are gaining market share in that. Who could be the competitors from whom we are gaining market share? Other, on the side that now which we have a technology agreement with Donghee. The product which we will be manufacturing now, who are the competitors in that particular product like torsion beams, which you mentioned? Who would be the competitor for us in that particular segment? Okay. Understood. First, we don't directly name competitors, and in this case, the market itself is evolving. So a lot of the control arms and links from being completely traditional steel are moving into high tensile strength steel, and these are new products. So in the new products we are gaining business. The existing products we are not taking away because they are generally in traditional steel. However, if the existing product is also shifting and some OEMs are doing that, then we gain market. There are a lot of players. On the traditional steel side stamping, there would be a lot of players. However, in the high-strength steel side, there would be fewer players. We wouldn't be able to name competition, of course, at this stage. Similarly, for subframes as well as beams, there is a different set of competitors, and that is a combination of traditional players, wherever this traditional steel is being used, and there are some multinationals who are also present in India, so we'll be competing with them. Got it, sir. Sir, first question was on control arms. My second question is in the JV side. We have booked a loss in the current quarter. Also, how to read the order book which you have given. It is showing that every order you have given annual revenue and lifetime value. So is it something that we have a five-year agreement with the particular customer and every year we would be supplying same amount, same revenue, or how is it? How to read that particular thing? Sure. First, the JV question, I think the JV that you're mentioning is the commercial vehicle emission, the ETPL JV. Right? The Donghee is not a JV. Donghee is a technical- Yeah. Yeah. On that front. I got it. Got it. On that front, maybe G.D. sir, if you can just share the answer for that, then I will come back to the balance questions as well. Yeah. Thanks, Ashim sir. You are absolutely right. There is a marginally negative contribution from the JV for this particular quarter that was primarily on account of certain delays in onboarding by the end customers towards the end of the quarter. This was marginal only. Otherwise, overall, this is positively contributing to the results of the company. As such, this is a very small amount either way, it does not really impact us much. But this is one-off, right? Or this is for the Yeah. This is one-off. Of course, based on the business situation, we would know the exact results going forward. But given its size with respect to Sharda Motor's numbers, it is a very small number. And there was an order book. Yeah, the order book question. The way to read the order book is annual business will be projected, annual business based on the order we have gotten. Generally, there is a ramp-up, and then there is a peak, and then there is a ramp-down. However, you can look at it that on an average, the annual business should be for what is being stated. And sir, you missed my one question of CV. We are targeting to increase our CV share, but this new suspension product, new technology collaboration, everything is on the PV side. Just wanted to understand something, some light on this. Yeah. So a clarification that when we are looking for CV, that is from the emission control vertical. Right? And what we are doing in lightweighting has nothing to do with the CV market. That is focused on the PV market for the time being. Right? So in CV, we are looking to gain market share via our JV because our JV is about 4 liters on commercial vehicle emission controls. That's the emission control product, and that is our goal over there, to gain market share. Now, coming to lightweighting, it's a separate product, and in that product, of course, we are looking first at the PV market as it is the largest part of the market. Okay. Just to get my understanding straight. Sorry to interrupt. No, I do not have any question. Just wanted to clear. I just wanted to have my understanding here. Our CV share would substantially increase only after new regulations, right? No, there are no new regulations per se that could come in CV immediately. However, the CV emission share is something above 4 liters. We are working with our joint venture partners to gain market share, and 3 to 4 liters is something that we are doing independently. That is again, on the emission control side. For the lightweighting vertical, we first focus on the PV market. Yeah. What understanding I have is, on emission side, no one changes its supplier regularly. Only when there is an upgradation of the regulation or when there is a new regulation update, then only the OEM changes their supplier. Is my understanding correct? Not exactly. However, it is a sticky product, and it is based on new models and new regulations. Okay. Thank you, sir. Thank you. Thank you. We take the next question from the line of Devers Shah, an individual investor. Please proceed. Yeah. Thank you for the opportunity, sir. Could you give a revenue bifurcation for the emission control and lightweight segment? Also, if you could give the capacity utilization for the same. Sure. We give it on an annual basis. For the last FY 2025, I think the numbers are readily available. In fact, G.D. sir, you can share as well as the capacity. Sure. Overall in FY 2025, if you see, the overall contribution of emissions business was to the tune of 68%. 9% came from suspension, 2% from supply chain management, and 1% from other miscellaneous. In terms of sharing more details with respect to either the sales or the verticals, as shared in last call, we are currently implementing SAP in the company, and have a pleasant evening. Thanks a lot. Thank you so much. Thank you, everybody. Thank you. On behalf of Equirus Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.