Q1 26/27

Aug 13, 2026

Summary

Q1 FY27 sales rose 18.62% YoY to ₹759.9 crore, with EBITDA margin at 13.52% and PAT up 16.31%. FY27 guidance is 15%-20% revenue growth and ~14% EBITDA margin, while four-wheeler scale-up shifts into FY28.

Ladies and gentlemen, good day and welcome to the Q1 FY 2027 earnings conference call of Fiem Industries Limited, hosted by Monarch Network Capital Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 joining 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. Sahil Sanghvi. Thank you, and over to you, sir. Thank you, Anushka. Good evening, everyone. On behalf of Monarch Network Capital, I welcome you all to the Q1 FY 2027 conference call of Fiem Industries Limited. We will start the call with the initial comment about the results and the future outlook of the company, and then we will open the floor for question and answers. I hand over the call to Mr. J.K. Jain, the Executive Chairman of the company. Over to you, Jain, sir. Thank you. Good afternoon and welcome to the Q1 FY 2027 earnings call of Fiem Industries Limited. Joining me on today's call are Rahul Jain, Managing Director; Rajesh Sharma, Joint Managing Director; Aanchal Jain, Joint Managing Director; Arvind K. Chauhan, Company Secretary; O.P. Gupta, CFO; and other members of the finance team. Our investor presentation and the results are now available on our website and the stock exchange. We trust you must have reviewed the same. Let me start with the broader economic backdrop. Geopolitical conflicts continued, trade and tariff tensions remain elevated, and the global supply chain faces fresh disruption. At the same time, we saw significant increase in the input costs and continued pressure from the weaker rupee. Despite these headwinds, the Indian two-wheeler industries delivered a record first quarter. Industry's volume reached 7.25 million units, the highest ever for a first quarter. Growth was supported by GST rationalization, easier retail financing and strong rural demand, while export and electric vehicles grew even faster. For us, this is an important signal. It demonstrates the underlying strength and resilience of the Indian automotive market, even when the global backdrop remains uncertain. Against this backdrop, Fiem had a strong start to FY 2027. Our sales grew 18.6% to INR 770 crores, while margins remained stable at 13.5%. TVS had an excellent quarter. The iQube crosses 1 million cumulative sales and the second model of the Norton Manx was launched for export to U.K. We are proud to be the part of this program, with more projects expected to launch in the coming quarters. Honda remains a valued and long-standing partner. Our business grew in line with their volumes, with several new models in pipeline. Hero remains our fast-growing customer, with our business growing strongly, led by Vida EV platform. From next quarter, we will supply all Vida lamps for Hero new plant in Andhra Pradesh from our Hosur facility. The recent launch, X440, which Hero is exporting to U.S. market, also features Fiem front and rear lighting. Now let me turn my attention to the electric vehicle segment. The EV account for more than 9% of the two-wheeler volume in Q1, up from around 6% a year ago. We believe EV adoption is a structural shift and an important opportunity for Fiem, because EV platform typically carries higher LED-intensive lighting content. As we are participating across the EV ecosystem, during the quarter, we commenced supplies for Ather new model, 450. We are also supplying to River for their new launch, RX zero two model. In addition, we have also commenced supplies for Royal Enfield EV Flying Flea model. Our customer have also announced significant enhancement in their capacities. TVS is expanding two-wheeler capacity from 6.8 to 8.3 million unit by year end. Hero is tripling Vida's capacity from 15,000 to 45,000 units a month. These investments give us the confidence about the underlying growth opportunities. We are also enhancing our capacity by expanding our Hosur footprint at both our plants situated at Kelamangalam and Thally Road. While two-wheeler remains our core growth engine, we continue to focus on building the four-wheeler industry business. Supplies to Mahindra & Mahindra, we are scaling up as planned while several other projects are progressing well. Our development program with Force Motors and other leading OEMs are also moving forward. As we look ahead, we see strong momentum across the industries and a healthy opportunity for Fiem. The festive season is starting on a strong footnote, and the shift towards the premium and electric vehicle is increasing the content opportunity. With a strong order book and pipeline, we are well-positioned to deliver the next phase of growth. With this, I now hand over to Mr. O. P. Gupta and the finance team to take you through the detailed finance proposals. Thank you, sir. Good afternoon to everyone. I would like to present the Q1 numbers for FY 2027 in comparison to the corresponding quarter of last year. The company has registered quarterly sale of INR 759.9 crore in Q1 of FY 2027 as compared to INR 649.07 crore over the same quarter last year, registering a growth of 18.62%. The EBITDA in Q1 is INR 104.06 crore, translating into an EBITDA margin of 13.52%, as compared to INR 87.36 crore over the same quarter last year with EBITDA margin of 13.46%. The PAT of the company has also increased to INR 65.19 crore as compared to INR 56.05 crore, representing an increase of 16.31%. The LED lighting share in total automotive lighting remained at 63% during the quarter. During the quarter, the company has made a CapEx of INR 41.15 crore. With this, I end the financial brief, and now the floor is open for question and answers. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of CA Garvit Goel from Serene Alpha. Please proceed. Hi. Am I audible? Yes, please. Thanks for the opportunity. I have two questions. One is on the cost side of it. Like you mentioned, there is a significant given the cost due to slight adverse currency at the moment. How do you see margins for rest of the quarters, sir, for this financial year? Yeah. So the margin guidance for the year is approximately around- Your voice is low, sir. Hello. Yeah, the margin Can you hear us now? Yeah. It's good. Okay. The margin guidance for the year is around 14%. You would see that the first quarter has been generally a quarter where there is cost increase around employee costs and so on. But for the full year, we believe that we should be averaging around 14%. The cost increase that you witnessed in Q1, are we able to pass on the same to the customers? If yes, then how many months it usually takes, sir? Yeah. There is two kinds of cost increase in Q1. One is employee cost and the other is raw material cost. The raw material cost, we believe is something that we will be able to pass on to customers. It does happen with a lag, with a couple of quarters it happens. That's why we said over the full year, we should be able to realize this raw material costing. Got it. And sir, in this quarter, what was our revenue contribution from four-wheeler, sir? Four-wheeler revenue contribution is similar to what it has been over the last one year, which is around 2.5%. It is not significant at this point of time. We believe that our four-wheeler business will really start being meaningful over the next two years. This year as well, we believe that it should be around a similar level, but next year onwards, we should see some significant increase. Sir, I just wanted to understand more on four-wheeler side. As far as I remember, last year you said we will see meaningful contribution in four-wheeler from April 2027 onwards. The reason I am asking this question is, if you look at your peers, they are growing significantly better, and I raised this point earlier also in the concall. So the point here is, what kind of challenges are we facing in the four-wheeler segment to scale up? Because now we are further delaying it by one year, right? We are saying we will be growing April 2028 onwards, right? So can you help us to understand what kind of challenges are there? We understand this is a new segment we enter. Yes. You are absolutely right in asking the question. The four-wheeler business is something that we have embarked upon. We do have a meaningful target in mind. We do have a business strategy. However, just as we look to scale up, there are a lot of initial sort of checklist. There are many processes to be followed, which is taking longer than what we would have expected. We would have ramped up, as you rightly said, in FY 2027, to a significant number, and that number will probably come next year now. But we continue to work very hard, we continue to put a lot of resources, and we continue to be very hopeful. It is just that the conversion cycle with customers is taking longer. Okay. Just last thing, what kind of growth- The way we look at this business is we actually look at it from a 10-year lens. Whether it is another 12 months or 18 months- Why I am asking this is, see what is happening, LED penetration in the every industry level is rising, right? If a competitor will keep on increasing the market share, over the period of time it will be becoming difficult for us to get those market shares from them, right? Is what I am understanding. You can correct me if I am wrong, sir. Again, you are right. It is never going to be easy. When we entered, we knew it is not going to be an easy market to get into. But I think our last three years of work will help us. Whether it takes another one year or 18 months, we are committed to work hard in this segment. But it is challenging and yes, you are also right that competition does keep, there are more capacities coming and so on. So those are challenges which we will be able to handle. Got it. And full year top line target will be for this year? Just say that again. We couldn't hear. Top line target for this year, sir. We look at an overall revenue guidance of around 15%-20%. Okay. Got it. Thank you, sir. All the best for the future. I will join the meeting. Thank you. We take the next question from the line of Anubhav Mukherjee from Prescient Capital. Please proceed. Congrats on a decent set of number. My first question is that in the Q4 FY 2026 earning call, just the previous quarter, management had given a guidance of INR 100 crores-INR 150 crores of revenue from the four-wheeler lighting segment. Has there been any significant changes because we are downgrading that guidance in just one quarter. If you could give some color on that, what has changed in just one quarter that we are sort of decreasing that guidance? Okay. I think in some part we answered that question in the last question as well. What we are saying is that our revenue target is perhaps pushed out by 2 quarters. What we expected for it to fully materialize in FY 2027 will spill over in 2028. Which is why we believe that 4-wheeler business at a headline level will still be around 2.5% of our revenue. Which is slightly lower, but again, the way to think about it is that what is the long-term trajectory? What are we doing over the next 2, 3 years? Which we believe that we still have, we are in a well position to capture market. You must appreciate that some of these orders are going to be lumpy. At one point of time we will end up with a large order. Sometimes it takes more time. We do expect FY 2027 to be slightly lower than what we had indicated. That's on the 4-wheeler. Get that. HMSI has announced a very solid launch pipeline of 10 models, including 7 models. Can you give some color onto ongoing product development for these new models? Also how do you see your share of business in this new model compared to your existing share of business in HMSI? Yeah. Our overall wallet share, if you see the current quarter, overall wallet share remains same or better and in line with the customer requirement. We are working on few models which are launched, and there are few models which will be launched in near future. We are into pipeline, but of course there are projects which are coming out with the LED lamps are under development and as of our are a few stages. We are together with HMSI, and we are working very closely with them. Do we see ourselves maintaining our wallet share in HMSI in all of these new models as well? We are very hopeful, and we are working on that. Good. And sir, for Mercedes we were doing some prototype development work. Can you share some progress on that? Has that progressed into actual order win? Yes, see Mercedes prototyping is already being done. The samples we have submitted for their testing and evaluation. This is almost one and a half year or 2 years' time to need for their testing and validation at the vehicle level. Thereafter, they will issue the actual RFQ, RFI to proceed further on this actual product for mass production. Okay. And sir, you mentioned Ather. Are we the sole supplier of auto lighting for Ather? Yes. The project which is being launched, we will be the sole supplier for that model. And for earlier existing models? No. Existing models were with some other competitors, but this is a model which is being gained by us with the latest technology, whatever is being required for the real market. Okay. And sir, Yamaha this quarter was flat year-on-year, and in the previous quarter we had mentioned that we have a very healthy pipeline with Yamaha for 8, 9 models. Can you give some color on how do you see revenue with Yamaha in the rest of the financial year? Yeah. Yamaha, this financial year, we hope we will be the same and with the growth, whatever is being presented during our last quarter. We have export model as well as domestic model. And during last quarter, export model is being reduced little bit off and there are models which did good during domestic market. Our presentation was little less on that. If we ask clearly the Fascino model, we are not there, which is being done well. Wherein R15 and XSR, Aerox, these were the models which were launched last to last quarter, little bit slow during this quarter. And we hope the time to come, these all models will run good and we will be achieving the target which is being required for this financial year. Thanks. I'll get back in the queue. Thank you. Thank you. We take the next question from the line of Viraj Kesaria from SIMPL. Please proceed. Yeah. Thanks a lot. Sorry to interrupt, Mr. Viraj. We are not able to hear you. Am I audible now? Hello? Yes, please. Yeah. There's a couple of Is it better now? Hello. Yeah, better. Please. Yes. Yes, go ahead. Market share. Sorry to interrupt, Mr. Viraj, but your voice is breaking. I would request you to join back the queue. Yeah. Is it better now? Hello? Hello. Actually, your voice is breaking when you are speaking. Okay. Hello? Yeah. Is it better now? Can you speak again? Hello. Okay. Can you please join back the queue till then? Till then we proceed with the next question. It is from the line of Arun Agarwal from Kotak Securities. Please proceed. Yeah. Thanks for the opportunity, sir. My first question is on the auto lights revenue. Now, the share of the LED lights, when we look at your auto lights revenue, for the past seven quarters, they have been ranging in a band of 61%-64%. But in the previous few years, we had seen a very sharp acceleration there. Now we understand one reason would be the improved demand for the entry-level two-wheelers that have halogen lamps. But again, simultaneously, we have also seen EVs doing very well. They are growing and outperforming the industry. Just wanted to understand, how do you see this transition happening over the next two to three years? How the shares do you see moving this year, next year based on the order books that you have? See, now the market is moving towards LED and in all the customers, whosoever is introducing new models are coming with LEDs only. Further on, EV market is being growing from 6% to 9%, wherein LED is mandatory and we are working together with them. We hope this is what being declared, by market is by 2030, market will be almost 90%, 95% will be with LED only. Okay. Even lot of your- We are working on that and our share of business with respect to that will remain increasing trend only. We should understand that possibly you are saying that by 2030, 90%, 95% of our auto revenue should come from the LED side. Am I understanding correct? No. No. Let me rephrase that. Sure. LED will progressively move higher. In the last two years, you are right, it has stagnated because some models have continued to do well. That trend should go towards more LED as we move forward in the next few years. By 2030, it is not like that everything will move 100% to LED, but the new models are increasingly moving there. The old legacy model might remain. If you see the next 24-month trend, we think we should move towards the 70 kind of a figure going forward in the next 24 to 30 months towards LED. Another point is like aftermarket, if you see spare market, spare market is being liable to be together with them for 15 years or more. Right. We have to be run both models also and cater the market, aftermarket business of all the OEM customers. Mm-hmm. Yeah, I understand that. The question was that in the last two years it has been a bit stagnant. So I just wanted to understand if there is anything we are missing out on. Anyway, sir, next question is on the employee cost. Now we saw a pretty sharp jump. I think a part of that would be the minimum wage hike that we have seen. We also had the annual increments as well in this, right, sir? That's right. In this quarter. Sure. Sir, this minimum wage hikes have been done across all our plants in all the states or there are some more we can expect in the coming quarter? No, Arun, this is Arvind. Yeah. See, the first state who implemented this revision in their minimum wage is Haryana. There were 2 factories in Haryana, Rai and Kundli. This is progressively done by other states also, but it is not in that state. Almost 35% increase in Haryana, and other states are also following the same. Okay. Yeah. Yes, sir. That's what I was trying. Tamil Nadu and Yeah, but that impact has come in Q1 or we'll see a little bit still over in Q2? Just trying to understand that part. Sir, let me put the question in another way. The run rate of employee cost this quarter, will that be similar in the next 3 quarters, or we could see a bit of increase in second quarter as well from what we saw since Q1? Yes. You are correct in the reading. It will remain in the same range in the next three quarters. Okay. Thanks. My last question is with respect to Yamaha. I understand you have already answered that question, but just wanted to understand that any specific reason for why the exports suffered for Yamaha, because we have seen a very huge variation. The domestics are up by 40, 50%, but exports were sort of 2, 3% up. Based on the current monthly production schedule, do you see that trend improving immediately in the coming quarters, or there is some more time for exports to improve? Sir, I think, we had already replied this answer. Another point is export model is based on the cycle which is being required by the continents. Europe will always be going during winter seasons, wherein others are going during summer seasons. This is a cycle wherein we see always six months is very good for export market, another six months for Europe and U.S. is always a little less. Similarly, like in India market as of now, XSR, FZ, Aerox, wherein we are 100%, is little bit low during this quarter. Yeah. Wherein model R15 and Fascino did well. We are very much bullish about Yamaha business, and we hope we will be recovering each and everything during next quarters coming in. Sure, sir. Thanks. Just one last thing. Full year CapEx will be how much? We did INR 41 crore in Q1. So full year? This year we showed the target around INR 100 odd crores. We did about INR 110 odd crores last year. This year again, should be INR 100 crores. This would include the capacity increase in Hosur plant we are talking about? Yeah. Large proportion of it is going towards South India, Hosur, where there is a significant capacity requirement for EVs for TVS and many other OEMs that we deal with. Most of this CapEx, some part of it is also in Tapukara, but most of it is towards the south, Hosur. Got it, sir. Thank you so much. Thank you. We take the next question from the line of Viraj Kesaria from SIMPL. Please proceed. Yeah. Hi, Amar. Are you well? Yes. Much better. Yeah. Just two questions. Most of my question have been answered. See, if we look at the competitive space for two-wheeler lighting, especially the top four customers we cater to, what we've been seeing is that the competition has been having a very high win rate, be it with Hero or now similarly with TVS or Suzuki. Just kind of perspective in terms of market share, if some color, have you seen any share erosion or any color you can give on that? That is one. Second is, see in the annual report, we talked about us launching this kind of detection system with sensors and small ECU. Is it something, a new product initiative which we have come up with or any color you can give or the thinking and could we see something similar range being expanded and launched into the market? Yes. So, the wallet share with all customers, whatever top line four customers are similar, and we are growing together with them in the same pace what we did in last so many years. We are very closely working and all new models which is being required, which is coming out with all customers like Honda, Yamaha, Suzuki or TVS, we are together with them or more than 100 models are together with us. Okay. Can I just make one small request? See, I think two, three years back, we used to share this segment Viraj, your voice is breaking in between. Am I on now? Hello. Yes, go ahead. You share this segment-wise market share with the top four or five customers, headline, tail ends, our market share. Maybe on an annual basis, you could share something similar. Why I say that is because it gives an impression when we scan the competitive environment and we keep on mapping our segment sales versus customers' production monthly, somewhere it gives an impression that there has been a share loss, say, with SSMI. I think if you can give some color on an annual basis, what is our market share, it will probably give more concrete relevance to our positioning. Just a suggestion, if you can probably start with that practice again, that will be quite helpful in getting clarity with a lot of other investors as well. That is one. Second, on the question which I asked on this hands-off detection system with sensors and small ECU. Any color you can give? Is this a new initiative we are starting with, or? Yeah. I'll just first of all reply your second question. Hands-off detection POC is being already done, and it is being presented to almost all the customers, and very closely we are working with them. Other than that, LCM, the light control module, which is all very closely we are working with two or three customers, which will be launched soon, which will give the additional enhancement of our technology which is available as of now. That is being supported by the system which is being created in-house, especially the EMC/EMI lab, which will really be giving us a boost wherein we can do the testing and validation quickly and reducing the overall development times as per the customer requirements. The second point is because highlighting the wallet share in advance really be difficult because of customer confidentiality. It is very difficult for us to explain the additional models which are coming in the near future, because customer is launching first, thereafter we are declaring our volumes and models. Maybe in advance. Say, maybe it gives perspective. That's a suggestion. On the light control module or the hands-off detection, we've started this EMI/EMC lab, right? And there's a lot of capability which we have invested and developed in-house. What kind of properties Sorry to interrupt, Mr. Viraj. Your voice is breaking a lot while speaking. Is it better now? Hello. Yes, it is better now, but when you are speaking, your voice is breaking. Can you please- Yeah. What I was asking is, we've invested a lot in the EMC/EMI lab and other capabilities we have developed in-house. Based on these capabilities, what other product categories you think we can leverage, in addition to lighting, for supply to existing customers? We are, as of now, focusing on our core business, which is lighting. Together with that, the LCM is again with the light control module, which is as of now with the individual lamp. It is being consolidating in the module, which will be reducing overall development time of individual customers and individual models. We will be focusing this and parallelly we are working for other segments also. As and when it will be discussed, and we'll definitely be close and disclose these all kind of business further. Okay. Thank you. Good luck. Yeah. Thank you. Thank you. We take the next question from the line of Jinesh Chopra from Chaitra Capital Partners. Please proceed. Hello. Thank you for the opportunity. I just wanted to ask, I can see a lot of cash and cash equivalents in balance sheet, roughly around two to three years. We effectively don't have any debt in the balance sheet. So what is our capital allocation priority here? Are we looking for more ramp-up of four-wheeler CapEx or maybe an acquisition or CapEx of any other sort in businesses? Yeah. There are many opportunities in pipeline, both organic and inorganic. There is a normal CapEx that we are undertaking. There could be potential CapEx at some point when four-wheeler business may require. All of that plus opportunities around electronics and other segments. Because of that, at this point of time, we would like to evaluate that and be ready when that opportunity arises. Okay. From that perspective, we would like to focus on using this cash for growth going forward. Okay. Sir, I just wanted to know that, if you compare with peers, they are funding similar type of growth through debt, and they are expanding. They are doing CapEx very rapidly. What are our plans with regards to, would we be raising debt in the future? We are also undertaking the CapEx that is required for our business. I think it has been highlighted that most of our OEMs are expanding, and we are also expanding alongside that. Under no scenario will we have a scenario where there is a demand and we don't have the capacity. I think, CapEx we will do judiciously, not over-CapEx. Given that the internal accruals right now are strong, we would like to use that. But at some point of time, if this cash is utilized for other organic, inorganic or other electronics-related activities, then we might go debt. If that is required, we shall absolutely raise it. Okay. Thank you. Thank you. We take the next question from the line of Kush Nahar from Electrum. Please proceed. I would request Mr. Kush to unmute and then speak. As there is no response from Kush line. Yeah, now you are audible. Yeah. You may proceed. Yeah. Thank you. Thank you for the opportunity, sir. My question was, could you give us a mix of motorcycle and scooter in terms of our revenues and the current order book that we have? What is the market share that we have with the OEMs in the particular segment? Kush, as of now, we don't differentiate in the motorcycle and scooters. Whatever is given in the overall two-wheeler pie, you can see in the presentation. Right. This is needed to better understand the growth because I think in Q1, motorcycles underperformed versus scooters. I just wanted to judge the growth of the company in that respect. No, we do cater to the customers as per their requirement. All right, sir. Secondly, these new products that you're working on, which will be the LCM and the hands-off detection. What kind of content for vehicle increase we can see going ahead, and what is the additional value that you can provide for the vehicle, any sense on that? The hands-off detection is very much on preliminary stages right now. It is being discussed with the customer. It is being integrated with the vehicle to the component. It is very premature as of now. There are sensors, there are different technology which is being adopted based on the customer input received from their ECU or from other resources. We have already developed our POCs. It is being presented, but we are just waiting for the feedback from our customers to implement in our development stages. All right, sir. Thank you. Thank you. The next question is from the line of CA Garvit Goyal from Cirrus Alpha. Please proceed. Hi. Thanks for the follow-up. Sir, two more questions. One is on, I think few years back you were speaking about initiatives like hub motor, right? Are we looking to enter into any other areas to increase our content for vehicle in two-wheelers? It is what, this hub motor we initiated with Gogoro, together with them, hub motor and motor controller. But Gogoro is no more in India right now, and we have also stopped, and we are not working as of now for NOx and any of our model for this segment. Okay. And I think in response to my earlier question, sir has mentioned that there were some procedural delays and because of that, 4-wheeler segment business is getting delayed. Can you put some more color on that? What kind of delays are these? There are no procedural delays. Getting a new order has its own timeline, has its own cycle, and you can't predict that cycle. Sometimes you'd like it to The development time of an average 4-wheeler new thing would be 3 years. Since you are starting afresh, plus you're getting a new client onboarded. So there are many processes, and which we've highlighted in the past that it's going to be a long-term business for us. So there is no one procedural delay or any other thing. I think it's an ongoing sort of a journey for us, which is taking longer than what we had thought. Got it, sir. Thank you, sir. Thank you. We take the next question from the line of Akshat Shah from Ashika Investment Managers. Please proceed. Thank you for taking my question, sir. My question is regarding the two-wheeler industry production volumes this quarter. Please correct me if I am wrong, but in your opening comments, you had said that 7.25 million units were produced in Q1. I am just curious to know, were we able to outperform the industry volume growth, or how was it this quarter? Yeah. The total industry volume is 7.25 million, which at a production level is approximately at 22.8% growth. If you look at it client by client, whether it is TVS, whether it is Honda or Suzuki, we are in line with those volumes. Yamaha is different because Yamaha India volumes are significantly higher than what our volumes are, and we have explained why that volume gap is there and why that is contributing for us not to be able to match up to that. Okay. Got that, sir. Second question. What raw materials are we primarily using and what sort of pricing pressure do we see over here? Because quarter-on-quarter, we go to see there is a compression of about 130 basis points. Yeah. If you see the current prices, the input cost, almost any other input cost, we have a 20% of input content. There is a lot of input, be it- Currency difference. Yeah. All of that along with currency difference. There is an input cost pressure across the industry, not just us. Across the industry, across various industry beyond automotive also. But for us, the good news is that we should be able to pass this on with a lag and which is what has happened in the past. So there is this 80 basis point of raw material cost increase, an overall increase like you mentioned of 120. All of that we should be able to hopefully pass on and recover over the next few quarters. So at a normalized full year level, we should be able to meet through this difference. Okay, sir. Fine. Thank you for that. All the best. Thank you. Thank you. The next question is from the line of Aditya Kondawar from Complete Circle Capital. Please proceed. Hi, team. Sorry, I joined a bit late, so please excuse me if this is a repeated question. Just wanted a revenue and PAT guidance for this year and what kind of a growth projection are we seeing for the next three to four years? Our guidance remains the same. The top line, we guide around 15%-20% top-line growth and an EBITDA margin of around 14%. The same guidance stays for this year and the years to come, right? That's right. Thank you. We mentioned that till the time we do anything significant in any other business, be it four-wheeler or any other business, till that Sure in our two-wheeler business, we continue to maintain this. Sure. All the best. Thank you. Thank you. Participants who wish to ask a question may press star and one on their touchtone telephone. We take the next question from the line of Kush Nahar from Electrum. Please proceed. Yeah. Thank you for the opportunity. Just wanted to understand about the new tech apart from the LCM. I think previously we have spoken about focused lighting and projection light, et cetera. So any update on that in terms of development time, in what stage are we in? We have told you this. Can you repeat once again? Yeah. My question regarding the new technology that we were talking about in the last couple of quarters, which is the focused lighting and the projection lighting that is there. So any update on that in terms of product development or customer approval expansion, and what stage are we in? Yeah. These are all business which is being introduced to the customers who are available in India, and we are just waiting for their feedback to implement those things. It's more on the approval stage from the customer. Yeah, we are closely working, and we are presenting the data which is being required, and we are waiting for their feedback to proceed further. This is a new technology. Yeah. The next step in this ideal process would be in the RFQs only for mass production or is there something in between? In between. Every customer needs their POCs, some proto samples to be implemented, to be checked at their end. Because every lens is being integrated with the mechanical, optical, and electronics. Everything should be aligned with their requirement and their system. That is most important to be done and to be finalized with RFQ stage. Right. But for sure, that is exactly the stage we are in today, and after that, what we will be waiting for is the mass production only, is what I am trying to understand. What will be the next step? Is that only? Next step will be RFQ. RFQs will be converted into the cost factor, valuation at vehicle level, valuation at product level, and the product which is being launched together with this kind of technology is again be adding the cost. These are the few factors which is definitely being come out in front of customers, and it is totally dependent on the customer when they will implement this kind of technology. Do we think that this will first go more on the premium models and then flow down on the mass market? That is what we are targeting. We are, of course, hopeful, and we are working closely with customers. All right, sir. Thank you. Thank you. We take the next question from the line of Kushar Verma from SDG Investments. Please proceed. Yeah. Thank you for the opportunity. Good evening, sir. My question is on the LED penetration. When you say LED share is 63% in total lighting and it will go up directionally, I want to know, is this at company level or industry level and is it on value basis or volume basis? Yeah, first of all, this is on company level and this is on value basis, not the volume basis. Okay. What is the industry level penetration for the two-wheeler industry, LED penetration? It is very difficult to give the estimate on the volume level. Okay. This is enough for my side. Thank you. Thank you. We take the next question from the line of Akshat Shah from Ashika Investment Managers. Please proceed. Yeah, thank you for the follow-up. My question is regarding the ambient lighting. I think a couple of quarters back, we had mentioned that we have this technology that we are looking to develop, et cetera. Just in the broader scheme of things, if we look at the opportunity, this was a feature I think that was largely for premium cars, but now even we're seeing cars that are around INR 15 lakh-INR 20 lakh come with these features. I think this can also be a way to premiumize, et cetera. What are our plans now and what stage are we at currently? We are working as of now with ambient lighting, the project which is being initiated by us with the optical fiber, wherein as of now is very nominal technology being used, which is not giving the uniformity in the ambient lighting. We are working and we hope very closely we are working together with customer and it might be in this next year or so, we will be able to crack the business on that. Okay. So sir, is it possible we see inroads over here before we see it in lighting equipment, compared to lamps? Is it possible we see it here first? It totally depends on the customer's requirement, customer input, which is being needed inside the lamp, inside the vehicle, which is being designed based on the vehicle performance, vehicle requirement only. Okay. And it's specific demand of the customers also. Okay, got it, sir. Thank you. Thank you. Participants who wish to ask a question may press star and one on their touchtone telephone. As there are no further questions from the participants, I would now like to hand the conference over to the management for the closing comments. Over to you, sir. I would like to thank everyone for participation in today's conference call. I hope that we have adequately addressed all your queries. If you have any further questions, please don't hesitate to contact us. Thank you and have a good evening. Thank you. On behalf of Monarch Network Capital Ltd, that concludes this conference. Thank you for joining us. You may now disconnect your lines.