Q3 25/26

Feb 12, 2026

Summary

Q3 sales rose 16.22% YoY and EBITDA margin reached a record 14.25%; PAT increased 33.83%. Management targets 15%–20% organic growth and 14%+ margins, with capacity investment and new four-wheeler and electronics opportunities.

Ladies and gentlemen, good day and welcome to Fiem Industries Limited Q3 FY 2026 earnings call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing * then 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sahil Sanghavi from Monarch Networth Capital Limited. Thank you, and over to you, sir. Thank you, Rudra. Good evening, everyone, and welcome to the Fiem Industries Limited Q3 FY 2026 earnings conference call. The disclaimer: The 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 the call. The statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand over the call to Mr. J.K. Jain for the opening remarks. Jain sir, over to you. Thank you. Good afternoon, and welcome to the Q3 FY 2026 earning call of Fiem Industries Limited. Joining me on today's call are Rahul Jain, Joint Managing Director; Rajesh Sharma, Joint Managing Director; Vineet Sahni, CEO and Director; Arvind K. Chauhan, Company Secretary; O.P. Gupta, CFO; and other members of the finance team. Our investor presentations and results are now available on our website and the stock exchange. I trust you must have reviewed the same. Let me begin with an overview of the broader economic environment. The Indian economy continues to demonstrate resilient and steady momentum in spite of the geopolitical challenges. As highlighted in the recent economic survey, India's real GDP growth for FY 2026 is estimated at around 7.4%, and the growth is expected to remain strong going into FY 2027. This reflects broad-based domestic demand, healthy investment, and stable consumption trends. Inflation has remained under control, which has supported purchasing power and consumer confidence. The recent Union Budget has reinforced fiscal discipline while maintaining a strong focus on infrastructure and manufacturing. In addition, GST rationalization has improved affordability in the two-wheeler segment. This has supported retail traction and overall industry sentiment. Overall, the macro and policy environment remains constructive for the automotive ecosystem. Coming to the two-wheeler industry, the quarter witnessed broad-based recovery. Total two-wheeler production grew by 15% year-on-year to 6.8 million units in the quarter. For the first 9 months, industry production is already at 19.6 million units. This puts the sector in a strong position going into the final quarter and expected to cross the previous peak of roughly 24.5 million units recorded in FY 2019. Leading OEMs like TVS, Honda, have reported healthy volume performance during the quarter, supported by the festival demand and improving rural sentiment. Overall, Q3 has been a balanced and healthy quarter for the industry. Against this improving industry backdrop, Fiem has once again delivered a very strong performance. Further, as part of the long-term commitment to sustainable manufacturing, we are rolling out renewable energy projects across all our plants. This green initiative will help reduce energy costs, improve operational efficiency, and is strengthening our commitment to becoming a carbon neutral company. As vehicle platforms become more advanced, the styling differentiation is gaining importance. Lighting and electronics are emerging as a key element in defining brand identity. In this environment, our focus remains clear by strengthening technology, maintaining high quality standards, driving cost efficiency, and ensuring timely delivery. In line with our state-of-art EMC and EMI laboratory in Gurgaon has started trials and product validation. This enhances our electronic capabilities and significantly is strengthening our in-house testing and validation infrastructure. Our commitment to the passenger car business continues to gain momentum. We are now supplying products such as number plate lamps, rear reflectors, and fog lamps across various models to Mahindra & Mahindra. In addition, high mount stop lamps of Bolero and Scorpio are currently under development. We continue to invest in innovation across advanced lighting and electronic technology, including laser systems, touch interface, Adaptive Driving Beam and matrix lighting solutions, et cetera. This focus on innovation will enable us to participate in higher value lighting solutions in future. As we move into the final quarter of the financial year, the overall industries outlook remains positive. With supportive macro conditions, stable policy direction, and a healthy order pipeline, we remain confident about the future 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. I am presenting quarter 3 numbers for FY 2026 in comparison to the corresponding quarter of previous financial year. The company has registered sales of INR 685.81 crore in Q3 FY 2026, against INR 590.1 crore in corresponding quarter of previous financial year, which is an increase of 16.22%. I am delighted to announce that for the first time, the EBITDA margin of company has crossed 14%, reflecting overall operational efficiency. The EBITDA for this quarter is INR 97.7 crore, which works out to 14.25% as compared to an EBITDA of INR 77.88 crore. That is 13.2% in the corresponding quarter of previous year. PAT for quarter 3 is INR 63.45 crore as compared to INR 47.41 crore in corresponding quarter of previous financial year, which is higher by 33.83%. I would like to present the 9-month numbers for FY 2026. The company has registered sales of INR 2,046.3 crore in the 9 months of current financial year against INR 1,771.15 crore in the corresponding period of previous year, which is an increase of 15.54%. The EBITDA in 9 months of current financial year stand at INR 284.16 crore, translating into an EBITDA margin of 13.89% as compared to an EBITDA of INR 236.92 crore, that is 13.38% in the corresponding period of previous year. PAT for 9 months of current financial year is INR 183.29 crore as against INR 146.44 crore in the corresponding period of previous financial year, which is higher by 25.16%. During the quarter 3, the company has made a CapEx of INR 41.02 crore and total CapEx in the 9 months of current financial year is INR 78.83 crore. With this, I end the financial brief, and now the floor is open for question and answers. 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 the 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 the moment while the question queue assembles. Our first question comes from the line of CA Garvit Goyal from Serene Alpha Analytics LLP. Please go ahead. Hi, am I audible? Yes, sir. You are. Yes. Go ahead. Good evening, sir, and congrats for a good set of numbers. The first question is on the insurance and fire incident part. Over the last two years, the company has disclosed fire incidents at more than one manufacturing unit. Can management help us understand the root cause identified in each case, and whether there are any common operational or safety gaps, and what are the permanent corrective measures have been implemented to ensure that such incidents do not reoccur? Additionally, have these incidents led to any changes in the insurance terms of the PCM or any internal safety audit across the plants? Regarding this, let me break this question into three parts. First part is about the insurance. As we already disclosed, our insurance is under process. For the Unit 7, that is the Rai unit, we already received around INR 50 crore and rest of the assessment is under process. It should be completed whatever in the due course of time. All the policies, what we are taking, and the insurance is on reinstatement basis. As you understand, in case of this kind of policy, the assessment takes time. Coming to the Unit 8, that we already informed to the exchange as well, we already filed on January 13th, INR 82.30 crore insurance claim on reinstatement basis. It will take time. About the safety aspect and all this thing, the reasons are already there with the survey, so there is nothing big issue about that. But yes, whatever the safety measures we are taking or we are doing, I think Mr. Rajesh Sharma, he can explain a little bit. Yes. There is a plant, Rai as well as Tapukara. These are all being audited on the periodical basis. This is being hired a third party, and at the same time safety team from Fiem is also auditing and regularly monitoring the situations. Rai plant, whatever fire incident has happened because of a short circuit and it is being claimed, it is being already highlighted and being presented. Similarly, all the plants, we have a full commitment and safety measures which is being necessary to run the production line and to save the human, which in all the cases is being taken care. Just to add, in both the cases, there is no injury to anybody. Whatever the safety measures existing in the company in every factory, it is appreciated by all. But this is an unfortunate event. Sometimes things are beyond control when these kind of things happen. To add this thing, there is no loss of business in any of the event. You can see the numbers. Rest of the things for future, management is taking a very serious view about the safety aspect and this is being undertaken with the help of external risk assessment agencies. This quarter on quarter, we can update you. Understood, sir. Secondly, on the four-wheeler segment, while management has been discussing this opportunity for some time, the revenue mix has not seen a meaningful shift yet. At the same time, competitors in this category are scaling up rapidly and several new players are entering into this segment. In that context, could you help us understand when you expect the four-wheeler business to start contributing meaningfully to the revenues and what timeline we should realistically factor in for that? Additionally, from an execution standpoint, will four-wheeler orders be catered from the existing manufacturing facilities only or through the dedicated plants for this segment? Yeah. I am Vineet Sahni. I am answering your second question first. We are catering the four-wheeler orders from our existing facilities only at this moment, and this we had shared in our previous calls also. Regarding the revenue, we had shared to you that we are in the process of building our credibility first, entering into small lamps. In the next investor meet, which would be in May next year, when we close this financial year, we will be sharing you business plan and the revenue impact that the four-wheeler is going to make in future. Got it, sir. I think I will join back the queue, sir. Thank you very much. Thank you. Our next question comes from the line of Anubhav from Prescient Capital. Please go ahead. Am I audible? Yes, sir, you are. Please go ahead. Hello. Yes. Congrats on a good set of margin numbers. My first question is that, gross margin this quarter showed a substantial improvement both year-on-year and QoQ and even on quarter-on-quarter sequentially. So, what drove this improvement and is this sustainable? Yeah, thanks for that question. Yes, you are right. The margins, as we mentioned, are at an all-time high for us at 14.25% at the EBITDA level. It is driven by a number of factors. There is operating leverage kicking in, there is improved efficiency. There have been some efficiency drives that have been done at the factories, which are resulting in some positive impact. And of course, there is a product mix. But also, we also got some escalations during the quarter. So that has also come in to boost the margin. From a going forward perspective, we feel confident that the efficiency parameters that we have done will keep helping the margin. We believe that we should ideally be at 14% plus EBITDA margin in future as well. That is the kind of target we are setting for ourselves. Get that. If you look at the primary sales data for all your key two-wheeler OEMs, whether it is TVS, HMSI, Suzuki, Royal Enfield, all of them have grown 20%+, but our top line growth has been slightly lower at 16%. Can you throw some light on that? There has been growth across the industry, but it's not 20%. We look at the production figures rather than sales. If you look at the production figures, TVS has grown 17%. We have outperformed that growth. Honda has grown 18%, we are broadly in line there. I think also what happens is quarter-over-quarter, there's a product mix in terms of which model is there and are we there in that model and so on. From an overall market share perspective, we continue to be right up there with our customers. Get that. Sir, please don't mind asking that question, but I think it will be on the mind of all the analysts because our listed competitor, Lumax Industries, they have also declared their results and their revenue from HMSI both this quarter and for the nine months has grown at 50%+, very strong growth. Whereas our growth has been much lower compared to that. Again, can you throw some light on what's driving this market share loss, if I may call that, in this financial year? Yeah, this is in line with the same answer is being given. This totally depends on the model mix, which are as of now, and there are few models which are exclusively with the competitor. Those are giving the right volume on the volume, which is giving this kind of. Yeah. Also, they have a large four-wheeler business, which we don't have. I think like to like from a Honda perspective, and overall numbers, if you look at, sometimes that picture also doesn't come out. But what we do like to reinforce is that our market share with Honda remains the same. So far, they specifically, clearly reported HMSI and not Honda, so I don't think that can be the reason, but I get the point on models. Yeah. Sir, any update on any new RFQ from any other passenger vehicle OEM other than M&M? Also, last quarter we had reported that we were working on an RFQ from Force Motors. So has that converted into some concrete orders? Yes. Vinit Desai, yes, Force Motors has converted. This is under development. We will be reporting that in the next meet. Also Mahindra, we are working on certain RFQs, which are at final stages. At least two major RFQs are at final stages. Hopefully, we'll be sharing that development in our next meet. Thanks. I'll get back into you. Thank you. Thank you. Our next question comes from the line of Shubham Sehgal from Simple. Please go ahead. Hello. Am I audible? Yes, you are, sir. But can you speak a little more louder? Yeah, sure. Please go ahead. Hello. Yes, please go ahead. Yes. My first question was, have we started supplies to Yamaha for their Tracer 7 model? As if I am not wrong, the model has been commercialized in Europe and U.K. Despite this model then, and also the other new models which we have for the India geography, why have we seen a decline in sales to Yamaha this quarter? The Tracer 700 is already in production right now, and we have started supplying to Europe. In last four months, it is in continuous supply. The decline in Yamaha is only because of there are few models which have been exported are always be based on the period base. It is sometimes the volume which is being inclined or sometimes volume is being always be in this condition. So period, this is quarter-to-quarter, you can see some Yamaha because export model is always been up and down and quantity is being fixed for certain models. Okay. Got it. Domestic market all. Yeah. No, go ahead. Yeah. All domestic models, whatever as of now running, is being accelerated right now, and it is being given the good business in domestic market. Okay. Got it. Just an update on two other models, I think. So one on TVS. We had mentioned for TVS, we had developed a new technology-based lighting system. Any update on that? Also for the passenger vehicle RFQ, we had also mentioned that we were in final stages for an RFQ with Mercedes. So any update on these two? Yeah. So Norton, as of now, it is being launched, and mass production will start in couple of months. We are ready and vehicle homologation is as of now on, and might be in next three months' time, we will be in position to start our supplies from here to Norton U.K. and to TVS in India too. Can you repeat your question on Mercedes, please? Yeah. We had mentioned in the last call that we were in the final stages of an RFQ for Force Motors and Mercedes. Any update on Mercedes? Yes. There is an update. Mercedes top-level team visited us in the month of January. Senior members from Germany and India, the top people. I am happy to inform that our plant and other things stand approved as a potential supplier to Mercedes globally for small lamps. Of course, we will now wait for RFQs to come in. Probably we are the only lighting suppliers at this moment to reach this place with Mercedes. This was their fifth visit to our plant. It is moving in the right direction. It takes time, but it is moving in a proper manner. Okay. When can we expect to get commercialized, like in a year or two? Any rough timeline you could share? Normally, it is very difficult to put a time to it, but we are expecting certain RFQs to come in the next financial year, and then it is their process development time is around 18 months to two years with Mercedes. But important point is to find a foothold in Mercedes, because there the potential is huge. That is what we are targeting. Okay. Got it. Thanks a lot. Thank you. Our next question comes from the line of Viraj, an individual investor. Please go ahead. Yeah. Hi, this is Viraj from Temples. Am I audible? Yes, sir, you are. Please go ahead. Yes. Yep. Yeah. Hi. Just couple of questions. One is on the gross margin. Just wanted to get your perspective. If I look at the contribution margins in this quarter, we have gone somewhere around 40.3%, which is the highest ever since March 2023 quarter. Just trying to understand what drove such high gross margin for us, and was there any element of one-off in this? Yeah. We just mentioned that it is a combination of efficiency, operating leverage, product mix, and also some escalations which had come through for the quarter. So it is a combination. Can you quantify the escalation? No. As I said, A, this is a combination, and B, going forward, we are still guiding for a 14% plus EBIT. Okay. So why I asked this is, see, we have been making investments, rightly so, in our in terms of investments in P&M towards the four-wheeler lighting business, right? And, if I were to adjust for that, then the implied margins would be upwards of 16%, 17% for us. While we are making the investments in P&M, the revenue maturity is still yet to play out. So if I look at the existing business, X of that, the two-wheeler business, that would already be above, close to 16% or above. So I am just trying to understand, considering that the community is quite positive on growth, how should one understand the sustainability of margins in terms of improvement? First, I would not agree that you can de-link the business like that, because a lot of four-wheeler projects are also working with our current CapEx and current capacities. Having said that, I think the important thing, what we are seeing is that there is a lot of efficiencies that are kicking in with the new volumes that we have overall. There is a lot of operating leverage coming in. So going forward, in spite of all the investments that are already envisaged. So next two years, for example, we envisage a INR 200 crore CapEx, which is a combination of our existing projects as well as whatever we need on the four-wheeler side. Even with that, we believe that we should be at these margins, or at least 14% plus is what we are targeting. Okay. Just a follow-up to this. If you look at some of the other players in the space, they earn somewhere close to 17%, 18% or slightly above margins in the lighting business. The mix can differ between four-wheeler, two-wheeler. But if you were to see this kind of a growth rate, say low teens or double-digit growth rate sustaining for us, then do you think that margins for us, there is scope of further improvement in margin structure in the business? No. I think it's a highly competitive market, and I don't see 17%, 18% margin coming through at all here. I think 14% plus is a very good aspiration to have, which we are focusing at least for the next 24 months. I think that's what we want to get to. Got it. Two more questions, sir. One is on, see, if I look at the two-wheeler business, we have HMSI, TVS accounting for almost 65% of the overall business. In terms of diversification, how are you thinking about it? See, I understand, there may be quarters where one customer may de-grow or not grow to the expectation we would like it to be. But in terms of if one has to look into the white spaces, and majority of those white spaces, how are we thinking about it? Great question. I think from an OEM perspective, if you see what we are, the OEM who we are not serving is only Bajaj in this matrix. Other than that, we serve everyone, and our share even with Hero is growing. On the other opportunities, what you mentioned is something that was highlighted in the Chairman's speech as well, that there is an increased focus now on electronics in the company. As we move ahead with all the OEMs that we have, there is an increased contribution coming from electronic component, which should help us drive growth much faster going forward. That has been our thrust, which is where all the investment is also going. The EMI, EMC labs and other areas which we are investing are heavily into electronics and technology. When you say electronics, is that a part of the lighting system, or this is a separate business vertical which we are kicking to, which we were not earlier? No, this will be the part of lighting system only. Okay. Any color you can give how large is Hero for us now? Hero, see, we are working already on 10 odd projects of Hero, that is for front and rear lighting both. Wherein few projects are already in mass production. Destiny is already mass production. Xtreme is also in mass production. Xtreme 440 is in production. Further on, there are a few models which will soon be launched, and we will announce those business also very soon. Okay. I will come back in queue. Thank you. Thank you. Participants who wish to ask a question may press star and one on the touchtone telephone. Our next question comes from the line of Sia Deshmukh from Pune E-Stock Broking. Please go ahead. Hello, am I audible? Yes, ma'am, you are. Please go ahead. Okay. Just from an industry understanding perspective, does the automotive lighting components industry typically face challenges around dead or slow-moving inventory? If yes, how does our company manage such risks operationally? Can you please repeat your question? This is not clear. Like, if the automotive lighting industry typically faces challenges around dead or slow-moving inventory. No. Where from you got this information? This is wrong information. Okay. Yeah. Okay. Thank you. Thank you. Thank you. Our next question comes from the line of Pawan from Ratnatraya Capital. Please go ahead. Sir, can you please outline other projects from what you are doing for Mahindra and also Mercedes? I understand we had a RFQ, which we are working for Force Motors also. Can you just outline for us when can there be products which would be in commercial production for these kinds for 4-wheeler especially at a scale? At this stage, we will not be able to divulge the actual products that we are working on. We are also working on certain new technologies with these customers. As and when they mature up and we are ready to declare, we will do that in these meets. But currently, we are not able to do this because we are under NDA with our customers. Next quarter, we will be sharing a bit more about the production plans in the future. Okay. Thank you. That was my question. Yeah. Thank you. Our next question comes from the line of Srikanth, an individual investor. Please go ahead. Hi. Good evening. Just let me know if I'm audible. Yes, sir, you are. Please go ahead. Yeah. Thank you. Good evening to the management. Congratulations for a good set of numbers. As per the last call we had discussed, we were in some proof of concept in ambient interior lighting. Any update on that? Yes. We have got some official go aheads from the customer on developing a proof of concept for the technology that you mentioned and a couple of other technologies. We are in the process of doing that. As we speak, I get a mail of RFQ also from our customer on ambient lighting, just sharing with you online. It is moving in the right direction. Okay. Going forward, can we see this contributing good to our top line, like as a product? See, we do see this contributing as a product, but still, it has a long way to go because you need to establish hardware, software, lighting solutions, and we are working actively with our customer. The proof of concept will be made, then they will prove it in the car, get the management approval. But it has a good potential of growth in the coming future, because most of the cars are going for ambient lighting. Okay. Secondly, are there any kind of plans to add any other products like we have bank angle lean sensor or canister? Any kind of that product which we are looking to add to our portfolio? Bank angle sensor, canister. Yeah, bank angle sensor we are already supplying as of now for all models of Honda. It is a basic- These are all under technical assistance, and it is being supplied to Honda only. Canister, of course, is no more right now. It is almost out, and there are a few customers only who are getting this, Yamaha or some CBS only. Okay. Do we plan to venture out in a joint venture or to produce any kind of product in future? These both are under technical assistance from Japan. One is of Toyota, another is of Aisin. So both are running under a technical assistance agreement only with the Japanese company. Okay, understood. Thank you. That's all from me. Thank you. Our next question comes from the line of CA Vansh from Serene Alpha Analytics LLP. Please go ahead. Hello, am I audible? Yes, sir, you are. Please go ahead. I have a question. From a medium-term perspective, how does management assess the industry outlook over 12-24 months? Also want to know the supply side or demand side factors which you believe could pose some risk or opportunities for us in the future. I think over the next 12 to 24 months, we continue to guide with our initial guidance, just 15%-20% growth. We have kind of always outperformed the industry, so we will strive to do the same. Industry anyway is doing very well. As we have commented, first 9 months have been very good. Even going forward, we believe the outlook is pretty positive. From a demand side, we don't see any challenges. From a supply side also, a little bit of supply shocks were there, say, 12, 18 months on some few components. That has been taken care of. So there is no specific challenges that we see right now. Okay. Sir, thank you. Thank you. Our next question comes from the line of Kush Nahar from Elektrum Portfolio Management Services. Please go ahead. Yeah. Thank you for the opportunity, sir. Just one question on the 4-wheeler side, are we open for any acquisitions or are we looking at that so that our time to market becomes a bit faster instead of putting up a greenfield facility from the start? Yeah, to answer your question, yes, we are open for acquisition and high growth route. However, we are also conservative in acquiring any organization because it has to be a right fit with our philosophy. We will see in future how it develops. Anything we are looking at currently at advanced stages for the four-wheeler or two-wheeler? No. All right, sir. Thank you. Thank you. Our next question comes from the line of Anubhav from Prescient Capital. Please go ahead. Thanks for the opportunity. Sir, apart from Mercedes, is there any international OEM that we are working with to get new volume? We have a very initial working which has started for another OEMs, which we will talk later. It is at a very initial stage, but we are talking to them. In fact, they have approached us, so we are working on that. We will get that. On the aftermarket business, is that a focus area, and are we trying to grow that? Because that has remained flat for quite some quarters. So if you can throw some light on that. See, we are working with OEM and our product, whatever is being developed, it belongs to the customer. We are bound to, as with the agreement, we cannot sell those supplies to market. Market is flat. Market is flat. But you do have a- Yeah, there are few products which is being developed by us in past, like for some specific customers wherein we are not in OEM, we are supplying and that market is very- Invested. Another point is now all the new businesses, whatever is being developed, those are all in LED, which is having no aftermarket. It is already being used only once there is accidents. Yes. Get that. I will get back into you. Thanks. Thank you. Anyone who wishes to ask a question may press star and one on the touchtone telephone. Our next question comes from the line of Vijay Kumar Pandey from Nuvama. Please go ahead. Hi, sir. Thank you for taking my question. I have just a couple of two questions. Sorry to interrupt you, sir, but can you speak a little louder? Is it okay now? Yeah. Please go ahead. First, I wanted to check in terms of our volume share with HMSI and Yamaha. Sorry to interrupt you, sir. Your voice is breaking. Hello, is it okay now? Can you move to a different environment and speak something? Is it okay now? Yeah. Please go ahead. Yeah. I wanted to check about our volume share with, market share with HMSI and Yamaha. Has it declined as compared to what it was previously? Because our growth has been slightly lower than what they have been growing. At least the production rate at which they have been growing. Just want to understand if you can throw a little bit light on that. See, it is already being replied in last question also, because this is all depend on the model mix, which model is running good, which model is doing good, which estate is good, which model, which estate is doing good. This is only the model mix, wherein overall market grew by, HMSI is 18%, we are at 14%. So we are stable there. There is no market drop. Okay. Sir, which is the model we are not present with HMSI? There are few, like H'ness headlamp we are not supplying, front lighting is not supplying, rear is not supplying. There are few products wherein we are not there, but most of the market and most of the vehicles segment, our presence is there. Okay, sir. Thank you. Secondly, sir, I wanted to understand about your plan to get into the electronic segment. How do you see that electronic segment will be developing and forward? Which are the products you are targeted to get into? Because electronics includes a variety of equipment. If you can give little bit of- See, electronic, these are the part of lighting only and what all LED business we are doing, it is being well designed and developed in-house only. All SMT, AMS processes being done in-house and additionally the testing facilities which is being under installation, commissioning, which will very soon be restart, that will also enhance our overall R&D capability, which will be kept 100% of captive uses for lighting business. Okay. As such, we will not be supplied by the external electronics product? No, as of now. Okay. Sir, thank you. And all the best for upcoming quarters. Thank you. Thank you. Our next question comes from the line of Vinay Nadkarni from Hathaway Investments Private Limited. Please go ahead. Yeah. Just wanted to check out, is there any input costs going up because of supply constraints or anything of that sort? Nothing specific, and if it does, as we mentioned, it is kind of passed on. It sometimes comes with a lag, but otherwise all the input costs are passed on a rolling basis. Okay. Secondly, can you help us with your Q3 capacity utilization of your plants? Roughly what would it be, ballpark? It's between 77%, 78% odd percent. But again, these numbers also depend on how many shifts you are running and so on and so forth. But I think, overall, we are well-positioned with our CapEx plan for the next year. We've already spent close to INR 80 crores. In 9 months, we will spend another INR 20 crores, and also setting up enough capacities for future, so that we can handle the growth going forward in the next 2 years. Okay. What are these CapEx spent on in this year? If you have covered it somewhere, I will just pick it up from there. No, there is no specific we have given the plant-wise, but this is basically on the machines and expanding the manufacturing capacities only. Some part is at the Tapukara facilities. Okay. Lastly, does this FTA with EU and U.K. open up some opportunities for exports directly to manufacturers abroad, or is that not possible? Generally, we deal with the entities here in India who then onward export. For example, a Yamaha or a Honda, they export onwards. We do not directly export except for a few cases like- Sorry to interrupt, sir, but there is some disturbance in the background. Mr. Vinay? No, there is no disturbance here. No, it is from your end, actually. Okay. Okay, please go ahead. Yeah. There's no major implication. As we explained, most of the exports that we have are in the form of indirect export, where we actually sell to the local entity, be it the Honda and Yamaha, who further export. They may get a fillip further. Similarly, Norton is being taken over by TVS, which will be indirect sales to U.K. also. The product will be supplied and manufactured here and we'll supply to TVS and TVS will forward it to U.K. No, that you had explained last time. What I was trying to understand is, for manufacturers in Europe and in U.K., two-wheeler manufacturers, would you be exploring opportunities to supply to them directly, not those who are manufacturing in India and exporting? We are already supplying. In Europe, we supply directly to Piaggio, Aprilia. We supply directly both the customers from here for their different models. So this FTA will help you? Not such. It is already in regular supply, and it will not be as such. Okay. Thank you. Thank you. Our next question comes from the line of Viraj, an individual investor. Please go ahead. Yeah, hi. Thanks for the opportunity. Just two questions. One is, balance to understand, you talked about increase in electronic content. The current lighting, LED modules which you supply to customers, if we take that as base of 100, then how much the content increases post increase electronic content? Any rough indication? It is totally dependent on product-wise. It is very difficult to say percentage, but it always varies from 30%-80%. On the existing base itself, would I be right? Yes, exactly. Okay, got it. And just one last question was, and this is to Mr. Jain. Sir, our cash levels that you are seeing, that will just keep on increasing. So despite the CapEx which we are planning and even accounting for the potential PD plant CapEx, the overall cash position in the company would just keep on increasing. So how are we thinking about utilization of this? I am just asking more from a two, three or five-year perspective. How are you thinking about utilization of this surplus cash? Yeah. So we want to be well-positioned for any growth opportunities that may come by, whether it is organic, inorganic, whether it is in four-wheeler or whether it is in our two-wheeler related space. So at this point of time, there is expansion anyway, as we mentioned, 200 odd growth CapEx going through in the next 18 to 24 months. But yes, you are right. Even then we will have some surplus, and I think we will at an appropriate time take a call. But at this time, we think business presents opportunities which we could utilize this cash at some point of time, and we are constantly looking for such opportunities. Okay. Thank you, and good luck. Thank you. Participants who wish to ask a question may press star and one on the touchtone telephone. Our next question comes from the line of CA Garvit Goyal from Serene Alpha Analytics LLP. Please go ahead. Hi. Thanks for the follow-up. Regarding the growth parts, we are guiding for 15%-20% kind of growth, right? Which is more or less equivalent to our historical average of 15%. But if I look at your competitor, they are on the higher base, and they are growing and expecting to grow. They are providing the guidance of maybe more than 20% kind of number on such higher base. I agree that right now we are into two-wheeler segment, but next year onwards, I am expecting based on your commentary, we will be getting some contribution from four-wheeler meaningfully, right? So considering that thing in mind, on a lower base as compared to the competitor, why are not we aggressive in the terms of the growth outlook, sir? On the four-wheeler side, I think we have already explained that we will kind of present you with those numbers. Those numbers are on top of this is the organic rate of growth that we are talking about, 15%-20%. And obviously, we will strive for more, but our guidance continues to be in this range at this point of time. As and when four-wheelers take shape and there is a significant uptrend there, we will add it on to this growth. Got it. Thank you for the clarification. Thank you. Thank you. Our next question comes from the line of Srikanth, an individual investor. Please go ahead. Yeah. Thanks for the follow-up. Post Q3 CapEx, what will be the current cash level? This is INR 222 crores as of December 31. Yeah. Thank you. All the best. Thank you. Thank you. Our next question comes from the line of Kush Nahar from Elektrum Portfolio Management Services. Please go ahead. Yeah. Thank you for the opportunity again, sir. My question was more on the electronic side. Like we mentioned, going ahead we focus more on electronics. I just want to understand, this will be beneficial to us more in terms of content per vehicles on the revenue side or more of backward integration, which will help in maintaining 14% plus 14%-16% EBITDA margins. Where will we get the value from? This will definitely increase the value also. Another point is like in our CMD speech, we are already working on upcoming technology, wherein laser, wherein ADB, wherein batteries. This will also give us a positive sign once you have our electronics R&D facilities in-house and testing and evaluation also. It will be both on revenue side also plus benefit of the EBITDA margins also. Sure. Okay, sir. Thank you. Thank you. Our next question comes from the line of Sahil Sanghavi from Monarch Networth Capital Limited. Please go ahead. Yeah. First of all, congratulations for very good numbers. My first question is, this year, what will be the total CapEx target, and next year, how much will be spent? This year will be INR 100 crores for FY 2026, and for the next two years, we think it could be a further INR 200 crore. Around INR 200 odd crore. So INR 200 total, right? I mean, not each, but INR 200 total for next two years, sir. Total for the next 24 months. Okay. Secondly, at the start of the call, Mr. Jain did say that there is a lot of planning going around the green energy rollouts across the manufacturing units. If you can give some more information on that, what kind of capacity of power plant are we trying to add, and what kind of savings can we expect on the power cost? Sahil, thank you for this green energy initiatives and whatever the renewable energy we are implementing across our plants. One major part is the solar. Solar in the both form, that is rooftop as well as the open access. In the south, we are also exploring the wind energy. Maybe next one or two quarter, you will get a clear picture where we are. This initiative is already, we are rolling it out, and you will see the impact in next two, three quarters. Any timeline when this can get commissioned, if you can help us with that? No. Okay, so let me clarify. This rooftop we will be implementing, so it takes around four to six months time, depending upon the capacity. Already starting. Open access is very short time. So it is around one month or two months time. I think a project. 12 months. No. To start with, we can start for the open access. It takes around 2 months time to start and then gradually it is implemented. It is okay. Maybe next- Yeah. Maybe after 2 quarters, you will get the clear picture. Okay. Thank you. That's all from my side. Thank you. Thank you. Our next question comes from the line of Vinay Nadkarni from Hathaway Investments Private Limited. Please go ahead. Yeah. Just one query. See, there is so much of dependence on one single sector automotive. You had in the past said that you are also looking at exploring other areas of indoor and outdoor applications. Any progress on that? Because today the automotive sector is doing well, so we are happy. No, we've always been automotive-focused company. Always. Yeah. That is something that we have always done, and I don't think we mentioned anything indoor, outdoor. Our focus will continue to be and our fortunes will continue to be driven by auto industry. Whether it is positive or negative, it will be driven by auto. Correct. There is no other sector specific outside of automotive that we are looking at. Okay, fine. Thanks a lot, sir. Thank you. Our next question comes from the line of CA Garvit Goyal from Serene Alpha Analytics LLP. Please go ahead. Hi. Thanks for the follow-up again. Sir, you mentioned certain products we are not providing to our end customers, Yamaha and HMSI. I just wanted to understand, what is the reason for that? Why are we not providing these products? Are these products getting provided by any other competitor of ours only, or what is the scenario? Let me clarify it again. We were explaining to one question that how we are supplying to the export and any global market. What the OEM do, they take this product from us in India, by their Indian entity only, and then onwards, they supply to their plants in Europe, in Indonesia, in Japan, wherever it is. That is the route. Otherwise, there is no such thing that we don't supply to our customers. No, sir. Let me repeat. I am just trying to understand the growth. I think our customers are growing at a higher pace in this particular quarter than the growth of ours. That is why I think you explained some of the products we are not supplying. On that part, I am trying to understand from you who is providing those products to those customers. Competitors. There may be different competitors that may be supplying, but whatever product is being supplied by us, it is totally dependent on the requirement from the individual customers from worldwide. So global requirement is not stable like domestic market here in India. It is totally dependent on the area and month-wise. There are a few products which is always be run during high winter season. So production of two-wheeler vehicles is always be reduced there. So this is a cycle only, and whatever model mix volume is being fixed at the time of RFQ, these are all being supplied by us. Understood. It is not like the demand for the models which we are catering is not getting reduced, right? No, it is not like that. Okay. Understood, sir. Thank you. Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Mr. Sahil Sanghavi for closing comments. Over to you, sir. I would like to thank- Just one time the management. Yeah, go ahead, sir. Please. Yeah. 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 Networth Capital Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.