Q1 25/26

Aug 11, 2025

Summary

Q1 FY26 revenue rose 10% YoY, while gross profit increased 5% and EBITDA margin was 13%. Growth plans center on lightweighting, exports and emission adjacencies, amid uncertain tariffs and TREM V changes.

Ladies and gentlemen, good day and welcome to Sharda Motor Industries Limited Q1 FY26 conference call hosted by Equirus Securities. 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 and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mihir Vora from Equirus Securities. Thank you and over to you, sir. Yeah. Thank you. Hi, good afternoon, everyone. On behalf of Equirus Securities, I welcome you all to the Q1 FY26 post-result conference call of Sharda Motors. From the management side, we have with us Mr. Aashim Relan, CEO, and Mr. GD Takkar, Group CFO. Without further ado, I will now hand over the call to management for opening remarks. Thank you very much, Mihir. Thanks a lot. Good afternoon, everyone. 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 earnings results and investor presentation, which are available on the stock exchanges as well as on the company's website. Before going into the financials, I would like to give you a brief overview of the Indian automotive industry's performance in Q1 FY26. The sector continued to exhibit steady performance across various segments, reflecting strong growth prospects. In first quarter of this financial year, Indian automobile industry witnessed growth across most segments. Passenger vehicle production reaching 1.44 lakh units, reflecting continued demand resilience in the segment. Light commercial vehicle production stood at 158,000 units, which is broadly in line with last year, same quarter. Two-wheeler production inched up by close to 1% YOY, totaling 59 lakh units, indicating a stable demand environment in both urban and rural markets. The three-wheeler segment maintained its upward trajectory, with production rising by close to 10% YOY to 2.56 lakh units, driven by increasing adoption for shared mobility and last-mile transportation. Tractor production stood out with a strong 12.7% YOY growth, reaching 2.94 lakh units, underpinned by favorable monsoon patterns and improved rural sentiment. Overall, the industry is expected to continue its growth in FY26, driven by stable macroeconomic conditions, government spending, normal monsoon, improved vehicle financing and sustained export momentum. That said, the sector remains alert to global economic and geopolitical uncertainties. Now I will shift focus to the operational and financial performance of the company. On a consolidated basis, we reported revenues of INR 756.2 crores in first quarter, with a YOY growth of 10%. Our gross profit for the quarter came in at INR 189.5 crores, reflecting a growth of 5% over Q1 FY 2025. Gross profit is the better indicator of our growth performance, and the company outperformed the industry in Q1. EBITDA Q1 FY 2026 stood at INR 98.4 crores, showing 3% growth compared to the one in the same quarter last year, with an EBITDA margin at 13%. Profit before tax for the quarter stood at INR 130.1 crores, after accounting for exceptional gain of INR 22.4 crore on sale of one of the idle industrial land parcel situated at Haridwar, Uttarakhand, and our share in profit from joint ventures and associates. Same quarter last year, profit before tax stood at INR 102.4 crore. Our PAT was INR 99.9 crores for Q1 FY 2026 as against INR 76.8 crores in quarter one of FY 2025. Building on the momentum from previous quarters, we continued to make strong progress on both organizational and business development fronts during first quarter of FY 2026 as well. Following the successful establishment of our global business and lightweighting verticals in financial year 2024 and 2025 respectively, we have further strengthened our leadership team by onboarding Mr. Ashwani Maheshwari as Deputy Managing Director of the company. We have also been progressing well on building partnerships in key focus areas of growth. We will share further updates in this regard as we move forward. Additionally, we have strengthened our innovation pipeline by filing a total of 15 patents to date, up from 13 previously. With this, we can open the floor for Q&A. 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 question queue assembles. The first question is from the line of Preet from Incred AMC. Please go ahead Thank you for the opportunity, sir. My first question would be line on the revenue. If you could give the breakup of segment and industry-wise revenue breakup, and also if you can mention how much was the export revenue for Quarter 1. Thank you for the question. This is Aashim, and good evening to everyone. On a quarterly basis, we don't give out segment-wise revenues. The last year, FY 2025, I think Judisan should have the breakup. Judisan, you can just share on FY 2025 just as guidance numbers. Sure. Thank you very much. Overall, in FY 2025, our emission control vertical contributed 88% of the top line, followed by suspension vertical, which contributed 9%, then supply chain management vertical 2%, and rest 1% from others and miscellaneous items. This was the breakup of segment-wise contribution to the top line last year. Okay, sir. My next question would be on the line of, I can see there is a quarterly depreciation rate decrease. Apart from land, which you have shown in the exceptional item, have you sold any other assets in current quarter? No. In the current quarter, in terms of land parcel, that was the only sale which happened. If you could let us know why was there a dip in the depreciation for this quarter? No. In terms of depreciation, if you look at quarter, the depreciation amount stands at INR 13.5 crore in the quarter versus INR 12.9 crore last year. This is on account of the overall increase in CapEx and net of definitely a small marginal depreciation on the asset which has been sold. Okay. No, actually it was INR 16.6 crore in March quarter. That's why I was asking. Yeah. So INR 16.6 crore was on the March quarter because of the additions which were done towards the end of the year. This quarter's number is net of the depreciation, which has been removed on account of the disposals which have been done. Then there is small portion of tooling sale also, which gets reported in other income and corresponding depreciation on that also gets moved. Therefore, this is a combination of many factors and therefore looking lower, but overall basis, you should look at yearly numbers, which gives the right indication of how much will be the overall annual depreciation. Okay, sir. Got it. Next question was there was a 10% year-on-year jump in the revenue, but on gross margin upfront, there was only 5% jump. So your volume growth will be around 5%, or was there any product mix difference that's why we had a dip in the gross margin? Aashim, sir, should I take this question? Yeah, you can go ahead. Take this question. Sure. You are right. Our top line was higher by 10%, whereas our gross profit was higher by 5%. The right way of looking at our growth is the gross profit, which is the better indicator. There is an impact of product mix of higher sales with brick and therefore, top line is higher, whereas gross profit margin in absolute terms are at 5%. If you compare this growth with the industry growth, then you would get the better idea of how the company is performing as top line will have many other components, including product mix plus brick sales, which is one of the component of our top line. Okay, sir. I'll join back in the queue, sir. Thank you. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead. Hello, am I audible? Yes, you are. Please go ahead. Yes. What I understand is that the TREM V implementation date for tractors is till April 2026. How are you viewing this opportunity? Do you think that the deadline will hold or will there be some extension? Can you give some color on it, because what I understand is that TREM V can be a big opportunity for us. What's your take on this? Yeah. The formal date so far has remained to be the same. However, a change seems likely from customer feedback and now we are in August, but the nature of change is very difficult to guide because there's no formal communication as well as the notified date still remains as 1st April 2026. Our readiness is there, but we do anticipate some change. We don't know how and what kind of change. As we learn more from the government side, we will keep updated on this. Do you have some view on what the change will be? Will they exempt 25 to 50 horsepower tractors which can reduce the opportunities for us significantly? Do you have a sense of the kind of change that can come in? No, I don't think we would be the right people to be able to guide that, because there's no direct contact with the government, because we are just making one part, and this is of course, much larger. The tractor makers are the ones who are taking the lead on this. So our knowledge on this is not so up-to-date as it would be on the tractor makers. So I think it's best to just look out for how the government goes about it, and best to stick to government guidance. Right? As for now, there's no change in guidance, but we're also sensing some kind of change. Hard to really estimate what it could be at this juncture. Okay. And sir, on the export side, can you share, sir, if there are any new developments in terms of any new order win or product development that we should be aware? Sure. So this quarter's been very good for us. We've added two new customers. In fact, one customer we were in touch with for almost three years now, and we finally got the first business. This is a leading Japanese construction equipment company, so falls right in our focus area, and it was one of our focus customers to acquire. As well as we've added another customer who is a large heavy industry emission company. These are first orders that we've received, so they are on the smaller side, pilot side, as the first order, first relationship is generally on the smaller side, and we do expect the SOP to be between 12 to 18 months from now. And we continue to have a good RFQ pipeline. I think good work is being done on the export front, and we do expect good momentum to pick up there. At the same time, I think all of us are aware that currently the geopolitical tensions are very high, and there is a lot of volatility around the world. However, we are really optimistic that this should settle down and stabilize further. Great. Sir, you also had an order win from one of the largest genset manufacturers, and my understanding is that this is U.S.-based. Does this new tariff that is coming very suddenly, does it change anything on that order win? Yeah. Just one thing, that that is not from the biggest genset maker, the biggest engine maker. It is a very large company. Okay. Right. Yes, it is U.S.-based. It has just happened, I think it has just been a couple of days and I think, this whole geopolitical thing that has happened in the last couple of weeks, it is very hard to see the impact of it, and we are very hopeful that there should be some stabilization in the overall global scenario also. I think it is too difficult to guide because it just happened, very recent, and our SOP is for the early calendar year next year. I think everyone is in wait and watch, and everyone is hoping that there should be some stability, and I think as things stabilize, it would be better to guide on that. Okay. I will get back in the queue. Sure. Thank you. The next question is from the line of Vasant Patil NP from TCG AMC. Please go ahead. Hello, sir. Thanks for the opportunity. Sir, can you elaborate on the content per vehicle, how it moves up actually, what kind of the roadmap one we could sense actually by implementing BS 7 or TREM V, even CV emission norms? What kind of the realization per unit enhancement you will see actually? If you give some color on that part, that would be more helpful. Sure. Thank you for the question. I will just go one by one. First, we will just be getting from BS 7. Right now, BS 7, the norms, the way they are drafted would be an indicator. We can look at what is happening in Europe as a reference point. In Europe, there is a content increase, and it really varies depending on the engine strategy. Giving a number on BS 7 will not be apt for now. I think it would be better to wait for the guidelines as well as the strategy before we give a content reference point. However, it would increase. How much it would increase? I think let things materialize and then we will talk more on that. On the CV side, we have two products now. We have begun or we are beginning with your temperature control pipes. That is an adjacency, and that is our first focus area. We feel that by getting into these products, which we have successfully now done, we will be able to not only sell this adjacency to the construction equipment industry, but there is also a use of this in the commercial vehicles as well as a big export market. For this, the number ranges a lot because as we have seen, different construction vehicles have different piping and so on. A reference point as a fixed number is not there. Now coming to TREM V. TREM V what we had guided before is anywhere between INR 5,000-INR 15,000, depending on the engine size and depending on, again, the OEM strategy. Lastly, for our current lightweighting content, which is mainly control arms, it is between INR 2,000-INR 8,000. Okay. Sir, and one more thing. Because of this rare earth metal, which is now around the corner, will this impact on our procurement for catalytic converters, so that will lead to any deterrence to OEMs? Yeah. Nothing that we have seen so far. Also, the procurement of a catalyst is done directed by the OEMs only. We are not much involved in it, and we haven't heard of anything. I am not sure if the same metals are used in these catalysts, but not heard anything, so it seems unlikely. Okay. Just one last question. If you allow me, sir, what is your thought on deploying your cash? Actually, you are sitting on a huge amount of cash, almost INR 800 odd plus crores, hunting for acquisitions quite a long time. As an investor, what we should look into, what kind of stability is unclear or how one should take away? Yeah, sure. Our cash surplus, our first preference is to utilize it for augmenting our lightweighting vertical. We see a very huge opportunity there, and we also see a very good opportunity in M&A for powertrain agnostic. When I say M&A, I must emphasize that I mean technical agreements, joint ventures, and acquisitions, not just acquisitions alone. That is definitely the first preference, and we would be focused on that. In terms of acquisitions, there is no fixed timeline. We just want to be very careful with the deals, valuations, and would want to be conservative here, because for the long term, I think it is better that we get the right fit. We do have many talks and interactions ongoing, and we will keep updated as something materializes. Till then, we have already expanded also the dividend policy, and we would keep focused on having a balance between return to shareholders as well as investing in future areas, and that would continue. This surplus also we are seeing that at the right time would become a strength where we could maximize many opportunities when the private markets are just a little bit. So this may turn out to be a very big strength also in the future. Okay. Thank you, sir. I will come back in again. Thank you so much. Thank you. Thank you. A reminder to the participant, anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Kartik from Suyash Advisors. Please go ahead. Yeah. Hi, good afternoon, Ashvin. Just wanted to clarify a couple of things. One is on these export orders that you won, the engine maker that you spoke about. Would any of it be covered under USMCA? What would be the, maybe just for the record, just to clarify, please. Sure. So you are referring to the last export business that we won. You are referring to that? Seven million plus. The 7 million plus. So I think there are so many changes that are happening. So it is very hard to even keep up with the changes. Especially because this is not active, this is still six months out. So when we also now reach out to the customer, they say that we have many other things going on, and clarifications and so on would be better either once there is more clarity and stability. It is closer to SOP. Especially the way that this year has gone globally, every time these tariffs are changing, rules are changing, that all of us are aware. It will be difficult to guide on specific things regarding this. It keeps changing all the time. The only reason I ask is in case you want to estimate, would this be on an FOB basis, bill of lading basis? How exactly should one think about? That is the only thing. I am trying to understand the mechanic rather than the final implication. I understand that if it is Yeah 50%, there will be some hit everywhere. I think that the customer is very adaptable. It has production facilities everywhere in Europe, U.S., Mexico, everywhere, right? Sure. Everyone will adapt to the optimal closer to time. What the optimal will be, we also don't know. We've got the indication that they are also going to adapt based on how the rules pan out. It will be better to look at it closer to time given the dynamic nature of the geopolitical tariffs, rules, regulations that we are all seeing in the news. Perfect. Got it. So adapt is the keyword here. The other thing that I wanted to understand slightly better from you is that we are seeing a lot of senior hires now. The Deputy Managing Director is one more interesting one. Some thoughts on how exactly are you visualizing the future going ahead with all these leadership level additions? Our goal is to now execute on all growth levers. We have so many growth levers ahead of us. We have the lightweighting vertical, we have M&A, we have exports, as well as domestic emission adjacencies. There is so many growth levers, and the idea is to strengthen the senior management as well as processes to execute on all of them. The senior hires are all focused on exactly executing on these growth levers because we are very excited on the opportunity. Now we need more hands-on deck really to get this done, and that's the thought process behind it. Is the mandate new customer additions also? Would there be something possible on that side? Because there are certain gaps on your customer metrics, if I may put it like that. Absolutely. All growth levers. The way I said it, this is how we look at it. We have to expand on lightweighting, we have to execute on M&A, we have to build up exports, we have to get into domestic emission adjacencies, and all of that if you see that good momentum is there, and we will keep building on that, for different senior people have joined for different things. Fair. Thanks for answering. I will get back in the queue. Thank you. Thank you so much. Thank you. The next question is from the line of Sanket Keluskar from Ashika Stock Services. Please go ahead. Thank you for the opportunity, sir. My first question is on our non-PV segment. We expect our non-PV to contribute 80% on our revenue share. I wanted to understand, like, Sorry, I think did he get cut off? Can you just repeat? Yes. Mr. Sanket? The current participant has got disconnected. Ladies and gentlemen, a reminder for the participants. Anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Manpreet Arora from Arora Wealth Advisors. Please go ahead. Thank you. Am I audible? Yes. Yeah. Thank you very much. Ashim, on the gross profit side, we have grown 5% this quarter and we have outperformed the industry in some ways. What is driving this outperformance? Is it because we are part of some models that are selling more or are some of the other verticals that we are trying to scale up are doing better? Or are we gaining market share? What is exactly driving this outperformance, if you can help there? Sure. I think in one quarter, and especially because outperformance is literally 2%-3% for this quarter, diagnosing a specific reason that this is why there is 2%, it will not be right for me. However, in general, if I was to look at the rest of the year and then five years, I can guide on a few points that the rest of the year now our new suspension plant has started, so as it ramps up and the lightweighting programs that we had announced last quarter. As they come in, there would be, of course, some benefit from that, as well as our first temperature control pipes which are going into CV. The SOP is expected in Q3, so that is going to be something on top of what we are already doing. Hopefully, if the export business starts in Q4, then that could be something on top of that. The rest, minor outperformance here and there can always be that some models are doing better or some slight gains on PVs, LCVs and so on, but not worth getting into the details of that. Now, for the next five years, where we see outperformance is definitely scaling up this lightweighting vertical, and that we are hopeful to gain market share, which already we have been gaining market share in control arms as well as customers, and adding content into what we can do in lightweighting via internal R&D as well as joint ventures, technical agreements. Then, of course, the M&A for localization, exports growth, domestic emission adjacencies growth, and all of this is something that would come on top of the underlying growth. Yeah. Thank you. The reason I was asking was because primarily on the passenger vehicle side, we are hearing about slowdowns and inventories in the channel. Therefore, we are seeing muted numbers reported by passenger vehicle OEMs. But still, we have done a growth. I was trying to understand more from that aspect. Understood. No, understood. I think looking at it on a quarter-by-quarter basis is not the most accurate for components, especially like us, because there is such a long value chain also. Our key markets right now are PV and LCV. LCV, I think is roughly flat or slightly down year-on-year as a market. PV would have, I think 1%, 2% or 3% growth. So a little bit of outperformance is there. But best to look at the long-term annual as well as going forward to get a better feel. Sure. Thanks. My next question is on the lightweighting vertical. Our current focus is on the suspension arms side. Is that correct, on the lightweighting side? Yeah. Our current business is on control arms, where we have added one customer. Now we have also started the SOP, which is going into one of the leading EVs, as well as that same product will be used in ICE. So it is a classic powertrain agnostic product, what we have been going for. At the same time, we see a very large opportunity in lightweighting and to add various more products and content within the car. That is where most of our time is going to build on the lightweighting vertical. Lightweighting as a theme is just becoming stronger and stronger due to the requirements in weight reduction, whether it is EVs, whether it is ICE, whether it is hybrid, for range costs, for safety, for mileage, everything put together. The technology has sharply evolved across the world, but especially in China and Korea. There is a lot that needs to change right now for the Indian market also. So we are very excited about that, and that is where a lot of time and work is going in so that we can offer even more content. Yeah. Thanks. Just to understand this a bit more, Ashim Relan. Let's say on the control arm side, what exactly are we offering or doing on the lightweighting side? Is it just a new material that we specialized steel that we use that makes it lighter? Is that the skill that we bring in, or are there other complexities to this whole lightweighting thing that we bring in as an expertise? Yeah. Our current internal capabilities lies in high tensile strength steel and the stamping welding of that. Second is on quality controls for safety products, where this is a safety product, very similar to how we have quality control in some of our other products. As well as we have internal R&D capabilities. That's the differentiator. Now we are augmenting this with new processes and newer technologies, and I will share more of that as we are successful in winning some business in those areas, which would enable much more lightweighting, not just in control arms and other areas as well. That would be a vent right. All right. Thanks. This second- Sorry to interrupt but I request you to come back for the follow-up question. Sure. No problem. Thank you. Thank you. The next question is from the line of Sanket Keluskar from Ashika Stock Services. Please go ahead. Thank you for the opportunity, sir. I might have lost connection before, so my question may feel a bit repetitive to you. It was on a non-PV segment. We have a guidance that our non-PV side may contribute 80% in our revenue mix. I want you to understand what is the timeline when we will achieve this? Second is, what are the initiatives we are taking? Sure. Okay. I think the spirit of the 80% guidance is to de-risk from potential EV penetration into PV, right? That was the thought process of that. We have already made substantial progress. About 40% now comes within emissions from CVs, plus 5% is from a mix of off-highway tractors and exports, and roughly 9%, 10% is coming in from lightweighting now. The initiatives that we are taking, if you see almost everything that we are doing for the future is centered around this only. If you go into lightweighting could come from PV as well, but it is powertrain agnostic. If you are going to exports and you look at our export focus areas, it is on the off-highway side as well as on the commercial vehicle and the genset side. So as that starts coming in, it is of course going to outpace the base that we have right now, and that is also going to add further to it, as well as the adjacencies now that we've gotten into are applicable on CV and off-highway. That is the CV pipes that we've started. Those will also be applicable in commercial vehicles and so on. In terms of the timeline on when this would be 80%, I think the goal is not to have a fixed timeline, but to grow in areas which have less EV risk, right? And there's a continued effort to do so. Sure, sir. So my second question is on our various JVs. So one of the prominent ones being Abhaz Pressure. So I want to understand when do we expect these JVs to contribute significantly on PAT level, and what is the contribution from Abhaz Pressure as well? Yeah. So I think it remains to be from a profit standpoint, fairly small, right? It would be 1% or 2%. Maybe it's around 1.5% of our consolidated profit. And our goal was to stabilize it. The mechanics of the JV such that we, of course, are not in management control. So from a consolidated, PAT bases only come into our PAT and the revenues don't come into our P&L. And here, there is a new program that has been awarded to the JV, and this is in fact a localization program for an international OEM. And utilizing India as the base for one engine. And that should come in somewhere towards the Q4 of 2026. And our focus is to look at various options on how we could get better contributions from this JV. And this is the only large active JV that we have. Okay, sir. On our export side, which countries are we looking for as export potential on emission side besides U.S. and Europe? I mean, which are we actively looking at as an active opportunity? Currently, the core focus is on U.S. and Europe. Given how things are panning out, the Middle East has started sharing a lot of inquiries. That is something that we were not proactively going for, but just how the geopolitical situation is changing, the Middle East market has started sharing a lot of queries as well. Apart from that, it remains to be U.S. and Europe. Okay, that is great. Lastly, on TREM V, I am assuming if everything goes as planned, with respect to timeline as well as with respect to nature, how much market share are we aiming for in the tractor segment if TREM V resumes? Yeah. We will always be aiming, as I have said, for market leadership there. However, we are also looking out for the government to guide on TREM V, so it will be better to look forward to the guidance on that. Okay, sir. Thank you, sir. Wishing you the best. Thank you. Thank you so much. Thank you. The next question is from the line of Satya from International Clothing House. Please go ahead. Hi, sir. Am I audible, sir? Hello. Hello. Hello. Yeah, yeah, you're audible. Yeah. I just want to understand what kind of growth are we expecting going in. We are doing approximately INR 2,800 crores for last year we did. Do we expect crossing INR 3,500 crores this year? Sorry, can you just repeat your question, please? One thing. Hello. Hello. Yeah, I can hear you. Please go ahead. Yeah. Asking, like, we did a revenue approximately INR 2,800 crores last year. How much growth can we expect? Can we expect crossing INR 3,200? Sure. We do not guide particularly in the short term and for annual basis. At the same time, especially given the global scenario as well as the domestic scenario, it would be very difficult to guide on anything as a firm number, given the dynamic nature of the industry as well as largely what is happening on the geopolitics. In general, as a philosophy, we do not give firm guidance on annual numbers. Even on the margin front as well, like the margin improvement that we expect to come in? Yeah. No guidance numbers. We would continue to be on the range that we are, but no general guidance like that. One more thing, we started with the Chakan plant in July or June, I guess. So when can we expect the contribution from that contributing to the revenue? Yeah, already it started. Of course, the SOP starts with low volumes and there is a gradual ramp-up. As the models that it is catering to, as they perform, the revenues would be linked to that. So giving a specific number in the first year would not probably be correct. But yeah, it started and there would be a ramp-up and revenues would grow as the models, because it is linked to 2, 3 models, it would go in line with that. Any idea on the capacity utilization that you are working on the overall level for the plants? Yeah. We generally work around 80% of capacity utilization. Maybe GD, sir, would have the latest number. GD, sir, over to you. Yeah. Thank you. Overall, capacity where we are operating at is roughly 80%. You are right. Are we expecting it to ramp up further because the festive season is coming up and everything is there in the quarter 2 and quarter 3? Do we expect this to maybe go from 80% to 85%? I think that is generally an average number. It is seasonal, like how the auto industry goes. Definitely the festive seasons have larger volumes and, yeah. So as the industry goes. We do not look at capacity per se so closely, because our capacity gets augmented fairly easily. Yeah. Okay. Thank you. Thank you. The next question is from the line of Mihir Vora from Equirus Securities. Please go ahead. Yeah. Hi. Ashim, my question was basically, say hypothetically, if the tariffs remain high from U.S. So U.S. currently would be importing a lot from China as well. Is it possible for U.S. in terms of, do they have that capacity to manufacture the exhaust systems in U.S. itself, or they are dependent on other countries? How to look about that? Yeah. I don't think that so much capacity would be available in the U.S. because all our focused products, they don't make in America as of now. Right? These are not even products that would be first, second, third priority when I look at it from the Make in America or make in U.S. drive that is there. However, this is so dynamic right now. How this changes and how it moves forward, we have to see. Currently, of course, with the very high tariffs which are there, it looks like there is some kind of disadvantage. However, that can change very quickly also. Right? As we've seen. So best to wait and look at it once things stabilize. Right? Then adapt and remain flexible and center the strategy around that. Right? Internally also, when we discuss this, we have to adapt with how the geopolitical situation settles. I think this opportunity would remain open. They have to source most of it from China, India, whichever other country that they go from. Sir, basically when we are talking about starting the exports from quarter 4 onwards for the emission components to the North American player, are we hearing that there is any kind of delay yet or it is status quo right now? Right now, the customers guided us just to wait for stabilization. This is all so recent that there's no firm guidance, and once things stabilize, I think that would be better to wait and watch kind on that. All right. The second question is on this domestic suspension business where major of the orders which you have won is for the suspension control arms part. Apart from that, what other product are we in terms of, say, in an advanced stage with OEMs where we believe that product will also be added, say, in a 1 or 2 year kind of a time frame? Yeah. These products have a shorter lead time from RFQ to production. Then of course, emissions. Emissions begins many years before, and it has a huge test cycle. Our first focus is on augmenting our technology, because while we are playing in the lightweighting space, we want to play in areas which are technology-centered and not just any traditional stamping kind of businesses. We are working right now on the technology front. Once that is done, I think the opportunity size that would open up is going to be very large. All right. Currently, it would be only control arms which will be the priority? Yeah. Currently, the priority is to gain market share on control arms. Already we've gained market share, and we are very hopeful that we'll continue on that journey and parallelly to focus on the technology that is required to change the products on the Indian market right now from a lightweighting perspective. All right. Thank you, sir. Thank you. Ladies and gentlemen, we will take this as the last question for today, and I will hand the conference over to the management for closing comments. Thank you very much. Thanks a lot. We appreciate the participation of all the participants in our earnings call today. We trust that we have addressed all your queries. Should you have any further questions, please feel free to reach out to our investor relations advisors, E&Y. Thank you very much and you have a pleasant evening. Thanks a lot. Thank you. On behalf of Equirus Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.