Q4 25/26

Jun 1, 2026

Summary

FY26 delivered record sales and PAT, with a 14.09% EBITDA margin and rising LED mix. Guidance remains 15%-20% revenue growth and 14%+ EBITDA margin; four-wheeler revenue is expected to scale materially in FY28.

Ladies and gentlemen, good day, and welcome to the Fiem Industries Limited Q4 FY 2026 earnings conference call, hosted by Monarch Network Capital Ltd. 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 guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all the 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 this 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 Sanghi from Monarch Network Capital Ltd. Thank you, and over to you, sir. Thank you, Ritesh. Good evening, everyone. On behalf of Monarch Network Capital, I welcome you all to the Q4 and FY 2026 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 Q4 FY 2026 and full year FY 2026 earnings call of the Fiem Industries Limited. Joining me on today's call are Rahul Jain, Managing Director, Aanchal Jain, Joint Managing Director, Rajesh Sharma, Joint Managing Director, Arvind 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 have reviewed the same. Let me begin with the macro environment during FY 2026. Geopolitical tension, currency fluctuations, and cost pressure continue to shape up the operating environment for business across the world, yet the Indian automotive industry remained resilient, driven by strong fundamentals and continued innovation. Against this backdrop, Fiem delivers its strongest performance to date. This achievement reflects the strength of our customer relationship and resilience of our business model and enduring value of and the capabilities we have built over the years. Let me now turn to the two-wheeler industries. FY 2026 marked an important milestone as industries production exceeds the pre-pandemic peak achieved in FY 2019. Production volumes for the year grew about 12% to an all-time high of roughly 26.7 million units. Growth was driven by improving rural demand, shift towards premium vehicles, and the steady adoption of the electric vehicle. Coming to the Fiem performance, I am very pleased to report that FY 2026 has been a record year for the company on every key measure. We delivered strong revenue growth and all-time high profit and our best-ever margins. For the full year, our revenue grew by about 16%, and the profit after tax grew even faster by 24%. Our EBITDA margin also reached a record level, supported by operating leverage and the benefit of our integrated manufacturing model. Let me share a few highlights of the strong progress with our key customers. At TVS, we remain a trusted partner across major platforms, including the iQube, Jupiter, moped, and motorcycle. This reflects the depth of our long-standing relationship. With Honda, our relationship continues to expand, including on Activa EV platform and several new models under development. At Royal Enfield, we support key models such as the Classic and are also participated in the emerging EV initiatives. We also recorded healthy growth with Suzuki and Yamaha during the year. At Hero, we achieved an important milestone with approval for a new upcoming EV platform, creating opportunities to further expand our presence in the fast-growing electric mobility segment. Importantly, most of the new business we are winning in LED lamps. This reinforce both the industry's technology transition and the Fiem leadership in advanced automotive lighting. Alongside growth, we continue to invest in the future. As a part of our long-term commitment to responsible manufacturing, I am pleased to share that we have started our journey into green power. We have commenced the rollout of the rooftop solar and open access renewable energy across our plants. At our Hosur facility, around 65% of our energy needs are already met through solar power, with a further 20% being added through wind energy. We intend to roll out this model across all our other plants over the coming years. This will help reduce our energy costs, improve operational stability, and advance our goal in becoming a carbon neutral company. Now turning my attention to the four-wheeler segment. We continue to see significant traction in the business, and will start fulfilling key orders for clients like Mahindra and Mahindra starting this year. As you know that Mr. Vineet Sahni has stepped down as CEO to pursue another opportunity. This transition has been smooth and well planned. The leadership responsibilities have been assumed by our Managing Director, Mr. Rahul Jain, who will continue to drive the company's growth agenda with particular focus on expanding our four-wheeler business. I am also delighted to share that Ms. Aanchal Jain has been appointed Joint Managing Director. She will work in tandem with Mr. Rajesh Sharma, our existing Joint Managing Director, who has vast experience in the automotive industries. Their combined experience and leadership will further strengthen the company's management team. As we look ahead to FY 2027, I remain confident about the opportunities before us. The industries continue to benefit from healthy underlying demand, while the shift towards premium technology-rich vehicles align closely with our strength and capabilities. Supported by a strong order book and a robust customer pipeline, we are well-positioned for the next phase of the growth. With this, I now hand over to Mr. O.P. Gupta and the finance team to take you through the detailed financial performance. Thank you, sir. Good afternoon to everyone. First, I will present Q4 numbers, after which I will cover the full year FY 2026. The company has registered quarterly sales of INR 744.35 crore in Q4 of FY 2026 as compared to INR 633.8 crore over the same quarter last year, registering a growth of 17.44%. The EBITDA in Q4 was INR 109.18 crore, translating into an EBITDA margin of 14.67%, as compared to INR 83.81 crore over the same quarter last year, with EBITDA margin of 13.22%. The PAT of the company has also increased to INR 70.59 crore as compared to INR 57.69 crore in Q4 of FY 2025, representing an increase of 22.36%. Now, I will briefly cover the numbers of full financial year 2025-2026. During FY 2026, the company has achieved net sales of INR 2,790.65 crore as compared to INR 2,404.96 crore in FY 2025, representing a growth of 16.04%. EBITDA stood at INR 393.34 crore, translating into an EBITDA margin of 14.09%, as compared to INR 320.73 crore during FY 2025, translating into an EBITDA margin of 13.34%. As a percentage of total automotive lighting, the LED lighting stand at 60% in comparison to 16% during last three year. PAT of the company stood at INR 253.87 crore as compared to INR 204.14 crore during FY 2025, which is higher by 24.36%. I am also pleased to share that the board has recommended a final dividend of 400%, that is INR 40 per share, amounting to INR 105.28 crore. During the year, the company has made a CAPEX of INR 108.31 crore. With this, I end the financial brief, and now the floor is open for question and answer. 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 one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset 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 Arun Agarwal from Kotak Securities. Please go ahead. I am sorry, the line got disconnected. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead. Anubhav sir. Anubhav sir, can you hear me? I would request you to disconnect the line and please rejoin, we are not audible. The next question is from the line of Dilip Verma, an individual investor. Please go ahead. This year, the receivable amount has just jacked up. I just wanted to know what caused it and are we liable to get that money back from our customers? Sorry, your voice is not clear. Can you speak loudly? I had a question regarding receivables. Sorry to interrupt, sir. The receivables are- Sir, your voice is very low, sir. Okay. Is it better now? Can you please raise your handset because we can hardly hear you. Okay. I am speaking into my handset. What I wanted to ask Yes. This is better. was that the receivables are jacked up this year versus last. I was just wondering if there was a problem with any of our customers, and are we liable to get our money back? Yeah, this is Arvind. You are seeing the numbers, you are right. There is some increase in the number of debtors. But please understand there is no change in the payment terms. Earlier, we used to discount the bills from our two major customers, one is the TVS. Now company has good cash flows and cash available. So we discontinued the bill discounting, and this is the only difference of the numbers. Otherwise, there is no difference in the terms of the payment. Good to know that. Thank you. Thank you. Thank you. The next question is from the line of Kush Nahar from Electrum PMS. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. A couple of questions. First, on a yearly basis, the other expenses and employee cost has increased in comparison to the revenue. What would be the reason for that? Are we front-loading any CapEx that we are planning? Accordingly, could you give us more color on the four-wheeler CapEx that we were deciding, what is the amount, and is there any greenfield according to the RFQs and interest that we are seeing in the product? Yeah. Let me answer your first question, that is about the employee cost. As a percentage of sales this year, for full year, this is 13.80%, and earlier also, this is the same, it is 13.62%. There is no major change. Some of the difference you will see is because of the increase in the labor cost notified recently. Okay. On the other part, you asked on the four-wheeler CapEx. As we have highlighted in the past, our CapEx program, if you look at it, we look at it at a company level. We have projected CapEx of INR 200 odd crores, over the next two years. Last year, we did approximately INR 108 crores. We will continue to invest in our facility. Some of the four-wheeler initiatives that we are doing will only already be covered in this INR 200 crore. If any greenfield project is put up, either for two-wheeler or four-wheeler, we will advise you well in advance. At this point of time, that is not the case. This INR 200 crore takes care of everything. Okay. All right, sir. In terms of RFQs, I think you were sitting on around INR 700 crores of RFQs. Any update on that in terms of conversion into business and what kind of pipeline or traction we are seeing in the four-wheeler business? Yeah. As we already informed the last call also, it is already there, and we have already converted 70% of those RFQs into a business, which will be under development right now. Okay. All right, sir. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead. Am I audible now? Yes, sir. Yeah, yeah, sure. Okay. Firstly, congrats on a very good set of numbers. Sir, you mentioned about new business from Mahindra. Can you share some color on did we bring some business on new models, and what type of ramp-up can we see, like in FY 2020? Some color on that will be very useful. Yeah. We were continuously informing about our business, what we did and what we are doing as of now with Mahindra. We started our business one and a half year before, and we are slowly and gradually being increasing one to other part, which are as a second source, and there are few projects which are being coming as a first source also. We are working and we have already possessed in pipeline, which will be soon. Once this will be launched, we will inform you in advance. Okay. And sir, my second question is, what type of ramp-up are we seeing in Hero MotoCorp? You had, in the previous call, mentioned about some new model launches in which we are present. Can you share some more details on that? Yeah. There are two models which is being launched in last two quarters. These all models are running well. Further on, EV models, which is already being included in our CMD speech. EV model also being awarded to us, and we will soon give you the feedback once these models will be in the market, once it will be launched. Okay. Just a small follow-up. I think Hero launched a new recreational version of Splendor, I think Super Splendor XTEC. Is that a model for which we are a supplier? As of now, we are not with the Splendor, but we have other model which is being launched, and are working for new models. As of now, we cannot disclose it. Get that. And sir, for Xpress, we were doing some product development for Mercedes-Benz, and they had, I think, visited our plant. Any new business win in that area? Yeah. As we had already informed that Mercedes-Benz has given us a business which will be a testing and validation project. This model is being well-developed, and we had submitted our samples for their testing and validation. Once their testing will be over, the final RFQs will be given to us for the next model development. Sir, final question before I get back in the queue. Sir, given the commodity inflation and, I think we have some import of LED chips, and given the INR depreciation, could you give some perspective on where will you see the margins in the coming financial year? Yeah, you are right. There is obviously, in the market, this whole supply chain disruption, which is causing price escalation in a number of our products. We also have some imports that we cater to. What we have kind of explained it in the past, for us, these are all pass-throughs. It is all very well known and understood by the customers. These are passed on. This price escalations, any increase or decrease, both ways, is passed on to the customer. It may happen with a lag of quarter or here and there, but over a period of time. For the full year, we continue to maintain our guidance that we will be in the current margin, which is a 14% EBITDA plus, is what we target for. Thanks. I will get back in the queue. Thank you. The next question is from the line of Arun Agarwal from Kotak Securities. Please go ahead. Yeah. Thank you for the opportunity, sir. My first question is on the four-wheeler business. One of the early participants talked about RFQs of around INR 700 crore, and we are talking about 70% of that getting converted into business. That could mean around INR 500 crore possibly. Is it possible for you to help us understand how the scale-up of revenues in this would happen, say in the first year or second? It is just a tentative understanding, sir, on this part. No, thanks for that question. Yes. First of all, let me just clarify. That 70% RFQ going is into the next phase. That is not converting into an order. Let us not read it as conversion into a fixed order. Now, specifically, over the last two, three years, we have explained to you individual details in terms of how we have progressed with Mercedes, how we have progressed with Mahindra and several other customers. The order book is starting to come in, but it is still relatively low. But if I have to give you a broad guidance for the year, our current four-wheeler business could be in the range of INR 100 crore to INR 150 crore for the current year. Going forward, we definitely expect this to move up significantly faster, INR 200 crore to INR 250 crore for the FY 2027, 2028. We have explained to you these are kind of hardworking businesses. It takes a while for these orders to come through. We will see a limited impact coming in this year, and I would say more meaningful impact in financial terms starting next year. Sure, sir. Thanks, sir. Just to clarify, you said INR 100-INR 150 crores for FY 2027, correct, sir? That's right. For FY 2028, sorry, I missed the number you said. It will move to? INR 200-INR 250 crore range. Okay, INR 200 crore to INR 250 crore. Also just one small thing. Did we also give the cash balance at the start? Sorry, I missed that part in case. It is around INR 260 crore as of today. INR 276 crore as of today. Okay. INR 270 crore rupees. My other question is on the revenue growth, what you have talked about in the past. We should be growing by say 15%-20% and outperform the industry growth. Going by the current scenario, where currently, the two-wheeler industry is doing well, but then there are talks about some moderation in growth that could happen because of El Niño or weaker monsoon. Do we still maintain that annualized revenue growth of 15%-20% going forward? Margins you already guided just on the revenue plan. Yes. We continue to be optimistic for the year. We believe that the year and the subsequent year look okay, and we continue to maintain 15%-20% growth. Sure, sir. Thanks. Sir, just one more thing. At the start, I think we talked about the LED penetration. For us, I think from the auto revenues right now, almost around 63%, 64% comes from the LED and then 36%, 37% possibly comes from the halogen side. Just wanted to understand if you can guide us, sir, for the two-wheeler industry I am talking about, not necessarily for Fiem. But for the two-wheeler industry, as per your understanding, what would be the current LED penetration, if you could just help us, possibly both in value and volume terms, if possible? Very tough to give a specific number because there are just too many models, and they keep changing back and forth. We have seen some move into LED and then come back to halogen. The only thing we can give you a specific, well-revised number is that our pipeline is almost 100% LED. Going forward, this number, which is 63%, will progressively keep moving up. Now, whether it happens to go to 80% in three years or 75% or 82%, we cannot predict, but this number is going up. That actually. All right. Thank you so much. I will get back in the queue. Over. Thank you. The next question is from the line of Yash from Avka Capital Advisors LLP. Please go ahead. Hi. Thank you for taking my question. Am I audible? Yes, sir. My question is on the four-wheeler strategy. Under Mr. Vineet Sahni, you were to talk about the four-wheeler strategy on this call. Can you throw some light on it, and is there any delay on the strategy? Also, Mr. Vineet Sahni was supposed to talk about the strategy on this call. What can be the reason for him resigning, because he was also offered an extension, I think, in March or January. Yeah. So two, three different points there. First, let's address the point. Mr. Vineet Sahni has left and has decided to pursue other interests. He served with us for three years, and at an extension time, we mutually decided that it is something that he wants to pursue other opportunities. Now, what he's done is that we've sort of put together a very solid base for our four-wheeler business. We've worked hard over the last two, three years. We've got talent, we've got teams, we've got all the organization structure in place now to accelerate this business. To your other question, the strategy will be put forward. The new leadership team of four-wheeler is Mr. Ajay Sharma and Rahul Jain, who are personally seeing both the businesses. And of course, Mr. J.K. Jain is also now personally taken this on. We will present to you a more detailed strategy on this shortly. But under no circumstances should you think that there is any derailment in any way. We are moving forward, and we've also given you a little bit of revenue guidance today in terms of what numbers we can produce here. But a more detailed strategy we will produce at a future date. We are very bullish. We continue to be very bullish in terms of what we can do in this segment because we are starting from a low base, so we will do very well. Okay. Thank you. Thank you. The next question is from the line of Akshay Shah from Ashika Investment Managers Private Limited. Please go ahead. Yeah. Hello. Thank you for taking. Am I audible? Yes, sir, you are audible now. Thank you. You can go ahead. Yeah. Thank you for taking my question. Congrats on a great set of numbers, first of all, and most of my other questions have been answered. I will ask you this. If you could just help me with the average price of a halogen lighting setup versus, say, LED. Just maybe average figures. It is very difficult to reply the answer of, because it is totally dependent on the product wherein front lighting, rear lighting, what all kind of operations, what all kind of systems will you be adding there. The product is not only headlight, this is not high beam, low beam. There is a sequential lighting also. There is a position light, there is a DRL. It is very difficult, but conventional to LED, it is 3 to 4 times. 3 to 4 times. Okay. All right. Since we expect the current LED penetration of 63% to keep inching up, can we see more uptick in margins due to that, due to higher LED share? No, we have always maintained that the margins are, I mean, across, it is at the product level, pretty much constant. Similar. Our margin take into account everything, and our margins will be similar to what we are guiding towards, 14%. Around 14%. Okay. Fine. Thank you. I will get back in the queue. Thank you. The next question is from the line of Kush Nahar from Electrum PMS. Please go ahead. Yeah. Thank you for the follow-up, Akshay. Just one question. Are we still so, Sorry, sir, your voice is breaking up. We can hardly hear you. I am audible now? My question was regarding a new CEO. Are we still looking out for a new CEO to head the four-wheeler division, or are we confident that we will be able to drive the growth ahead since all the strategy is in place? No, we have enough management bandwidth within the company. The point we had made is Rahul Jain has taken over as the Managing Director. What we are trying to explain is that to give particular focus to this new segment, besides the normal operation, he along with Mr. Rajesh Sharma will also personally look into growing four-wheelers so that it gets the desired attention. But we are not looking for a specific CEO for that division. We have enough management bandwidth. All right. Just to get a confirmation, you said the EBITDA margins consolidated will be around 14%, including the four-wheeler business. It is in a similar line, right? That's right. Okay. All right, sir. Thank you. Thank you. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead. Sir, in the four-wheeler business, we have mentioned that obviously, we are trying to scale up our business with Mahindra and Mahindra, and also, I think we have started some supplies to Force Motors. Do we see an opportunity to work with other OEMs like Tata Motors or Maruti? What will it take to penetrate these other OEMs? Yes. Of course, we are bullish about 4-wheelers, as we have already communicated in the past, and now also. We are working very closely with all the customers, especially Mahindra, Force Motors, and Tata Motors too. Slowly and gradually, once these models will be launched and the market will gain and have confidence in our technology, we will slowly and gradually start with Maruti also. Okay. Sir, for HMSI, our revenue growth for this financial was around 2%-5%, which seems to be lower than the wholesale volumes for HMSI. In the previous call, we had mentioned that it's mainly a product mix issue, and we are looking to supply to some of the new models. Sir, can you share some color on what type of new model brings in HMSI are we getting now? The new business we are getting continuously, but the launch will be, of course, decided by the company. We are ready with the product, which will be launched soon, and you will know once this will be launched, because before that, we cannot announce. Whatever business share as of now, we are maintaining the same. Sir, final question before I get back in the queue. Sir, for Yamaha, what type of scale-up do you see in the coming financial year? Because for Yamaha also, you have mentioned some new model builds. Have they gone into production? Yeah, there are a few models which are already being started, which are all export models, exported to Europe as well as Brazil. Further on, 8 or 9 models are under development, which will soon come into production. Those are for domestic as well as global models. Compared to this year, do we believe a further better growth in Yamaha in the coming financial year? Yes. Okay. We are bullish for that. Okay. Thanks. That's all from me. Thank you. Thank you. The next question is from the line of Mr. Sahil Sanghi from Monarch Network Capital Limited. Please go ahead. Yeah. Congratulations again on very good results. My question is, you are also working on some projects with respect to the ambient lighting and some new age lighting products. So what happens about that, and how do we take that ahead, if you can help us understand that? Sorry, one time again, Sahil. Yeah. So you were working on a few products on the ambient lighting side and other new age front lamps and all of that. What happens on that front, the fog lamps and a few other things? Do we continue working on that? How do we think on those things? Yes. We are continuously working on that, and there are a few products which are under POC as of now. Once proof of concept is ready, we will be again visiting our customers to show them the technology, which is being discussed and validated at the time of initial developments of meetings. Right. We are closely working with our partners. Okay. Got it. Thank you. Thank you. The next question is from the line of Rahul Majethia from ER. Please go ahead. Hi. Thanks for taking my question. My question is more on our insurance costs. After our Tapukara fire and insurance claim, do we expect upwards pressure on our insurance and renewal costs or perhaps on our borrowing costs because of this? Yeah. Let me split your question in two. One is about the borrowing. We already have a very healthy cash in our hand. There is no question of borrowing cost in our company. Now, coming to the insurance, when you seek the renewal for any insurance policy, dynamics at that time works. Maybe this year we paid some higher premium. Next year, that will be again negotiated with the players. It is decided on that time only. Okay. That's understood. That is all. Thanks. Yeah. Thank you. The next question is from the line of Vinay Nadkarni from Hathway Investments Private Limited. Please go ahead. Yeah. I have just one question. When I see your Q4 results, your automotive lighting, not the LED part, the other automotive lighting, has actually shown a growth. Now, is this a one-time thing, or is this something which is going to be sustained going forward? LED is going to be future. As already explained, our LED lighting share within the automotive lighting is increasing. So in some quarter, if you see some increase in non-automotive, I don't know from where you are reading, but we continuously increasing 1% or 2% every quarter in LED lighting only. Last year it was 60%, this year it is 63%. No, I was talking of the non-LED automotive lighting. Decreasing. This is decreased. Naturally, it is increasing the LED to No. Non-automotive. Non-lighting maybe. Are you referring some slide in the presentation? Yeah. I am basically referring to your slide number 4, where you talk of Q4 28.26% Okay as automotive lighting, which stands Okay at INR 212 crores as compared to Q4 INR 171 crores. There is a 24% growth in automotive lighting and LED growth is 19%. I was just thinking, is this a one-off thing or maybe some models which came about for example No. Okay. This slide you please see. It is here the total sales of the company split it into the LED and non-LED, as well as the plastic and rearview mirrors. When we talk about the automotive lighting only, the split is between the LED and non-LED. The chart you are referring, it is actually showing the whole percentage. Whole percentage. Yeah. Rearview mirror as well. Okay. If anything clarification required, you can come on offline. Yeah, I'll get it. Yeah, offline. Yeah. Thank you very much. This is already there. Yeah. Thank you. The next question is from the line of Akshay Shah, from Ashika Investment Managers Private Limited. Please go ahead. Yeah. Thank you for taking my question again. Could you please help me with the current capacity utilization that we are working with? Yeah. Current capacity utilization is in the range of 75%. We have done a CAPEX of INR 108 odd crores this year to debottleneck some of the lines. We continue to invest over the next two years as we see the demand going up. From a capacity perspective, we are well geared to handle our growth. Okay. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Aditya Srinivasan, an individual investor. Please go ahead. Hi, sir. I hope I am audible. Congratulations on a good set of numbers. I am just trying to look at the products other than the auto lamps, the rearview mirrors, plastic molded parts. The revenue share has been marginally decreasing year over year. I just want to understand the outlook for the next year and if it is going to continue to decrease. If you can help me understand that, this is the only question I had. Okay. Our main product line is the automotive lighting, and this is increasing very good way. You are just seeing the percentage terms. The total amount is also increasing in the rearview mirror as well as the other parts, but this is very slow in comparison to the lighting. This is the difference actually. Just to explain, this is not a standalone product, so to speak, which we pursue too much. It goes to the same set of customers where lighting is going. Yeah. It is kind of ancillary to the main lighting product, and it continue to be sort of in the similar direction. Our aim always has been to be a leading automotive lighting company, which is where our focus has been forever. Understood. Okay. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Shubham Saigal from SIMPL. Please go ahead. Hello, Shubham. Can you hear me? Yeah. I am audible. Yes. Yes, you are audible. You can go ahead. Thank you. Okay. Thank you for the opportunity. I just had one question. All of the 4-wheeler orders that we are pursuing, as you mentioned that we are targeting around INR 100 crore to INR 150 crore for FY 2027. I just wanted to get an idea regarding the margins. Are we expecting our 4-wheeler business overall to be margin accretive, or will it be similar margins as we are earning right now? See, I think the way we look at this business is at a holistic level. Right now, that business is too small to look at individual margin. Overall, we can continue to guide even while we grow this business. It will be at similar margins. This is the margin range that we think we can follow for the next 2, 3 years. Okay. Got it. My next question was, could you just go a little bit in-depth and elaborate about the advanced EMI-EMC validation facility that we have opened up, and will it support more of the current product development, or is it for newer products? Could you just give some color about it? EMI-EMC facilities, which is being installed by us, which is one kind of facilities, which is being installed by only a lighting company wherein Fiem is. This will support us in reducing the overall development time, validation of product during the development back to our proto to the mass production, which will give us engineering strength of Fiem with a product which will be not only used for domestic, for global market too. Okay. Got it. Yeah. Overall, electronics is beginning to be a very critical component, and all this will happen in-house here. It will help the EMI-EMC lab, will really help us accelerate. Okay. Got it. Yeah. I think you earlier also mentioned that we would be supplying to Norton as well, a different kind of a lamp, right? With a different kind of technology. Yes. It will help with this, right? Yeah, it will help. EMI-EMC is being required any kind of lamp which is being used as semiconductors. Any electronic component is being used, this test suite is being done outside by each and every component. This is being installed inside, so to reduce the overall development time and not to wait for the time which is being taken from our outside testing agencies. Okay. Got it. And just one more update, I think in the last year or last to last year's annual report, and earlier we had even discussed that we were currently developing new products. Not a different technology for the current products, but a new product entirely. Like, the touch capacitive, the laser technology or something other. Yes. So any update regarding these new products? When can we expect to launch them? We are ready with the POC. Proof of concept is most important, first of all, and we are discussing with all the customers. These all facilities and technology is being introduced first by the Indian government, wherein safety norms is being introduced. We are just waiting for those norms to be introduced, and we are ready for adopting this kind of technology with the proof of concept and with the engineering, which is being already taken and proven at our end. Okay. Will these new technologies be more for the four-wheeler or two-wheeler, or nothing any specific? This is in two-wheeler, four-wheeler, both. Not only for specific any segment. This will be implement with all the segments. Okay. Got it. It would be for newer models only itself, right? Yes. Can we expect it to be in the market in the next two or three years or something like that? Or you have no idea when the norms would be introduced? As of now, no idea, because it's totally dependent on the customers when they will adopt this kind of technology. Okay. Sure. Got it. Thanks a lot. Thank you. Thank you. The next question is from the line of Deep Chandan from Equity Research Analyst, Individual Investor. Please go ahead. Hello, sir. Can you hear me? Deep, sir? Yes, please. Deep sir, can you hear me? No. You are not audible, sir. Your voice is breaking up. Hello, Deep sir. I would request you to fall in the queue again. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead. Thanks for the follow opportunity. Sir, will it be possible to share our R&D expenses for the financial year 2025, 2026? Yes, this is more than 2%, around 2%. It will come in the full annual report. You will see it. Great. Sir, and congrats on the substantial spend on R&D, especially in the auto company sector. Can you give some color on what are the key focus areas or KPIs for the R&D effort? Please get some time. See, there are few benefits which are mostly required to set up this kind of R&D. We are always the first to adopt such kind of technology within our organization. EMI-EMC, this is being required mainly for any kind of electronic component which is being used in automotive industries or in any industries. This will be reducing the overall development time and giving the quality product to the customer in first attempt and first go and first try. There is a major attempt which is being required. Great. Thanks. Thank you. A reminder to all the participants that you may press star and one to ask a question. A reminder to all the participants that you may press star and one to ask a question. As there are no further questions from the participants, I now hand the conference over to Mr. Sahil Sanghi for closing comments. Just wanted to thank the management for patiently answering the questions. Please go ahead, sir, for the closing remarks. Thank you. 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 very much, members. On behalf of Monarch Networth Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.