Q1 25/26

Aug 14, 2025

Summary

Q1 FY26 sales grew 13.16% and PAT 13.92% YoY. Management maintained 15%-20% organic growth guidance, with rising LED penetration and four-wheeler expansion as key drivers.

Ladies and gentlemen, good day and welcome to the Q1 FY 2026 earnings conference call of Fiem Industries Limited, hosted by Monarch Networth Capital Limited. Kindly note 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 during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I would now hand the conference over to Mr. Sahil Sanghi from Monarch Networth Capital Limited. Thank you, and over to you, sir. Yeah. Thank you, Muskan. Good evening, everyone. On behalf of Monarch Networth Capital, I welcome you all to the Q1 FY 2026 conference call of Fiem Industries Limited. We will start the call with the initial comments about the results and the future outlook of the company, and then we will open the floor for question and answers. Now I will hand over the call to Mr. J.K. Jain, Chairman and Managing Director of the company. Over to you, Jain, sir. Thank you. Good afternoon, and welcome to the Q1 FY 2026 earnings 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 Chauhan, Company Secretary, O.P. Gupta, CFO, and other members of the finance team. Our investor presentations 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 a brief overview of Indian economy. India remains the fastest growing major economy in the world, forecasted to grow at 6.4% in FY 2026. This strong performance is driven by the robust. However, the recent imposition of the steep U.S. tariff, now totaling up to 50% on Indian export, is creating near-term headwind for some sectors. Fiem remains unaffected with this challenge. The long-term outlook remains optimistic and strong. India's strong economic fundamentals, low inflation, healthy government finances, and ongoing reforms will continue to boost the sentiment. Efforts to expand export market and build new trade agreements, like the recent U.K. FTA, should keep the country on a steady growth path. Now let me turn my attention to the domestic automotive industries. The Indian two-wheeler industries began FY 2026 on a soft note with domestic production volumes of 5.9 million units, which is flat over last year. This is largely seasonal, and demand typically soften in the early months of this fiscal year. With the festive season kicking in, supported by a good monsoon, the industry is poised for a healthy rebound. Against this backdrop, Fiem has been able to post a very strong performance for Q1 FY 2026. Our sales have grown more than 13% to INR 649 crores, and we were able to deliver a PAT of INR 56 crores. This growth was fueled by the robust demand from our key OEM customers like TVS, Royal Enfield, and Yamaha, which has contributed to this significant growth. Let me now turn my attention to the four-wheeler segment, which continue to move forward. Our first AL- Ladies and gentlemen, we have been disconnected the management line. Wait until we connect to the management. Ladies and gentlemen, we have been connected to the management line. Yes sir, please go ahead. Going on? Yes sir, go ahead please. Hello? Hello? Sahil? Yes sir, go ahead with the opening remarks. We are also very pleased to share that we have received development orders for three additional products from Force Motors. Our engagement with the customer on new technology is progressing well. This successful entry into the four-wheeler space marks a significant leap forward in our journey to become a multi-segment global player. Building on this performance, Fiem remains well-positioned to capitalize on industry's recovery through our technology investment and customer partnerships. One such investment is our state-of-art EMC/EMI electronic validation laboratory, now under installation and set to be the first of its kind in the Indian automotive lighting industries. This facility will unite our mechanical, optical, and electronic capabilities under one roof. As lighting become increasingly integrated with electronics and communication features, this lab will be a game changer, strengthening our technological edge and reinforcing Fiem's leadership in performance and quality. Looking ahead to FY 2026, I am confident in both the industry's growth potential and that Fiem is in a strong position to capitalize on it. With this, I hand over to Mr. O.P. Gupta and the finance team to update on operational performance. Thank you, sir. Good afternoon to everyone. I would like to present the Q1 numbers for FY 2026 compared to Q1 of FY 2025. During the quarter, the company has registered sales of INR 649.07 crore as compared to INR 573.61 crore over the same quarter last year, registering a growth of 13.16%. LED lighting share in total automotive lighting stands at 63.92%. The EBITDA in Q1 is INR 87.36 crore, translating into an EBITDA margin of 13.46%, as compared to INR 78.77 crore over the same quarter last year, with EBITDA margin of 13.73%. The PAT of the company has also increased to INR 56.05 crore as compared to INR 49.2 crore in Q1 of FY 2025, representing an increase of 13.92%. During the quarter, the company has made a CapEx of INR 16.53 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 question may press star and one on the touchtone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shubham Sehgal from SiMPL. Please go ahead. Hello, am I audible? Yes, sir. Yeah. Thanks for the opportunity. My first question is, we are with our non-LED portfolio with around INR 170-180 crore. Do you see this scale further going down or the market in terms of supply and positioning stable and do you think that this number can sustain at these levels? Can you please repeat this question? We lost you in between. Yeah. Mr. Shubham, I am sorry to interrupt. Sir, your audio is not clear. We cannot hear you properly. Hello, Mr. Shubham. Hello. Sir, I think we can hear you today. Yes, now you are clear. Go ahead. Hello, am I audible? Yeah. Yes, sir. Yeah. My question was that our non-LED portfolio has been stable around INR 170-180 crore. I just wanted to ask that, do you see this scale further going down? Or should we sustain at these? Yeah. Is there any second part? On the LED, what we maintained is that we are currently at 64% as our total automotive sales, and this will continue to go up. Over the next couple of years, this number should increasingly go up because our pipeline is 100% LED. All the new models that we are doing is LED. Okay. Got it. My next question was, with our LED business scaling pretty strongly as you mentioned, how many and how many do we plan to add over the next two years? What percentage of regular CapEx will be behind molds? You may want to just repeat that question. Operator, if you could sort of help with the line. We are getting a lot of wide in between. We can't hear this. If you could repeat that question. Yeah. I will repeat it. Yes, definitely. I was saying that our LED business has been scaling pretty strongly. How many SMT lines do we have as of now? And how many do we plan to add over the next two years? And what percentage of regular CapEx will be behind molds? We are looking to add another 10 SMT lines over the next couple of years. How do we have currently? To that, we have 10 assembly SMT lines in our company, and we are planning for another 10 machines in next one year. Okay. What percentage of regular CapEx will be behind molds? See, the total CapEx, if I was to highlight for the current year, is around ₹75 crore to ₹100 crore. This includes everything. There is a new facility that is being planned, new CapEx on SMT lines and so on. So that is a composite figure. Okay. Got it. My next question was about our key customer, HMSI. Some growth that we have achieved would be due to the better realizations from the shift to LED. Apart from this, if we see that growth with HMSI, versus their production rate, it has been at par or even lower at times. Would you be able to provide any color on this? Our growth is largely in line with how much growth HMSI is showing. HMSI has almost had a flat quarter this year. Marginal 1% or 2% point here and there is basically a result of a specific product mix. There are one or two models that will go up. They could be non-LED that could result in a lower realization and so on. But largely our wallet share with the customer is absolutely the same or better, and our production is in line with their own production. But sir, on this, if we see about our competitors, they have been winning major business from HMSI, and you could say example, Iaxtiva, and they also have a further pipeline built. And we also have been a major supplier to HMSI. So considering our growth versus our competitor's growth with HMSI, is there any share that we have lost? No, we have not lost any share from HMSI. And wherever there are few products which are already in development as of now at our end, will be launched during next year. Few products which was together with our competitor, it is already being launched. That is the only difference. Okay. But would you be able to say that in volume terms, how has our performance been with HMSI? If we have not lost any share, what would be the performance in volume terms? It’s a flat only. There is no change of volume, no change of share of business. Okay. Got it. Just one request from my side. If you could start providing the wallet share figures that we used to provide. As investors, we get a better understanding on this. See, the practical issue around wallet share is that you would appreciate there are thousands of models now. Every day there’s a new model, there’s a new variation. There could be one model with LED, one without LED. It’s very difficult to compile it. We try and compile as best as we can to give you a direction in terms of our overall market share, what it is. But model-wise, and you know the vagaries that you’re talking about are all model-wise. One model has gone and done slightly more or less. Directionally, we want to tell you that the business is intact. Okay. Your business, it seems to scale up. I just want to know what is the- Sir, your voice is interrupted. Sir, your voice is not audible properly. Slight breaking. Hello? Yes, sir. If we look at our Hero business, it does not seem to have grown much. I just wanted to know with regard to this, is there a challenge that we are facing here? Is it a challenge because of the new launches or any delay from the customer side that we are not seeing the Hero business scale up that much? Voice is breaking in between, but about Hero business, whatever business is being taken by us from Hero, as per their launch plan is on track. Yes, sir. But we have not seen the scale-up happening. Are we facing challenges there? No, there is no challenges from our side or no challenges from customer side also. There are a few projects which are being launched as of now under Harley Davidson flagship, are going very slow pace, and it is being recent. Very soon we will start the export also. You will see some of the pace in near months. Okay. Got it. Largely with new. We have explained to you that with Hero, we have a lot of new orders that we are doing. New orders, obviously, new projects, they come in, they take time for volumes to ramp up. That will happen. Okay, got it. Thank you. I will get back in the queue. Thank you. The next question is from the line of Karwit Goyal from Invest Analytics Advisors. Please go ahead. Hello, am I audible? Yes sir. Good evening sir, and congrats for recent acquisition. My first question is on the tariff part. You mentioned tariff is not going to affect us. Can you put some color on that, like, why we are thinking in that way? Because maybe our customers are into export as well, right? Doesn't affect us, going forward? Yeah, tariffs are only applicable to U.S. and our business directly with U.S. is very marginal, not significant. Even where there is that business, our contract terms are FOB, where we are not impacted. The tariffs or any other levies that may arise in future is to be borne completely by the customer, so we are not impacted. No, I am not speaking about the direct impact. I am trying to understand about the indirect second-order effect. Maybe your customer may be exporting to U.S., right? So in that case, what kind of impact can Fiem have going ahead? No, our direct or indirect order book is not intended to America at all. The American lighting systems that eventually end up in America is very insignificant, what I highlighted. Okay. Secondly, on the four-wheeler part, I missed the opening remarks. Actually, there sir was speaking about some updates. Can you repeat that? Secondly, did you mention anything on the Force Motors? Yes, we did mention in the CMD's speech, in Force Motors, we have got orders for three products which are now under development. That is the next entry we have made. That was the information shared by CMD in his speech. What are those products and what is the size of business are we looking to do with Force Motors? Can you share the details? No, at this moment, we will not be able to share the type of products. We will share it in due course of time and also the revenue. Understood. Is it the only customer that we onboarded in 4-wheeler in this quarter or any other customer also? No, this is the only customer we onboarded in this quarter. Got it. Lastly, on the rare earth metals side, are we seeing any challenges to our customers because of unavailability of rare earth metals? Rare earth, eventually, there is some exposure on the EV side only, and EV, as you know right now, is fairly small component of the industry. We are not seeing any major impact specifically around it right now. Understood. Two-wheeler, specifically around two-wheeler, because our positioning is right now more two-wheeler, two-wheeler is not being impacted right now. Understood. As the Chairman had mentioned in opening remarks as well regarding the good monsoon, along with the festive season we are entering into, do you see any kind of challenges in the terms of consumer sentiment because of the global headwinds currently going on, that can affect the positivity coming out of these two drivers? Or do you think that demand is pretty decent only, and we will be able to grow decently in the coming months? Overall, what we see on the ground, the demand seems to be fairly robust. Festive season is coming on, monsoon has been good. While you see all the headlines on tariffs and all, we have got upgraded recently by rating agency as India. So I think structurally we are fine. We are not seeing any challenges on the ground. Got it. Thank you very much, sir, and all the best for the future. Thank you. The next question is from the line of Rachna from SCIL Ventures. Please go ahead. Hello, am I audible? Yes, ma'am. Yes. I have two questions. First question is, in your growth trajectory, there is some benefits due to the realization improvement due to shift to LED lighting. But just to understand better and clearer, what kind of growth has there been in terms of volume? Hello? You will have to repeat your question. I am sorry. We are not able to hear it very well. Am I audible now? Hello? Yes, go ahead. Yes. I am repeating the question once again. In our growth trajectory, there has been some benefit due to the realization improvement due to shift to LED lighting. To understand better, what kind of growth has been in terms of volume? LED, as what we always say, LED is 64% of our total sales right now. That shift is prominent. That will keep growing. As LED grows, the realization on LED is much more. At a margin level, we are going to be at similar level, be it LED or non-LED products. Margins have not changed, but sales velocity definitely increases. Okay. If you can give color in terms of volume? Volume growth, what we have said will be translated into our sales growth forecast, which we continue to guide for 15%-20% sales growth forecast. The industry obviously is not growing at 15%, 20% in volume term. It is lower. Hence, that volume growth and value growth is both factored in sales. We don't give specific volume rate. Okay. My second question, our other segment has been flat. If you could give any color, what are the key reasons behind this? What was the question? Other segments, did you say? Just repeat that. Yes. Our other segment has remained flat. If you could give any color, what are the reasons behind it? Okay. I think your question is that this is other products other than the lighting, right? The rear view mirrors and the plastic moulded parts. Yes. Yeah, you are right. Around 10% is the rear view mirrors and the plastic parts, again, because the value and the realization increase in the automotive lighting is disproportionately high. Definitely there is a change in the percentage. But otherwise, the supply and the percentage of the business is growing. Okay. Ma'am, one more question. The other expenses, they have seen a very sharp jump. Are there any one-offs or other expenses which are driving this? What kind of run rate we can expect? I do not think there is any sharp jump or something exceptional. There is some expenses in one quarter may not be in the other quarter. You have to see on a yearly annual basis what is the percentage. That is almost remaining in line with the normal percentage. If you could further quantify, are these expenses related to sales or any future investments? Yeah, these are majorly related to the development cost and the sales also, yes. Okay. Just wanted to know what is our cash balance as of date. At the end of quarter, the cash balance is INR 341 crore. Okay. Any change in our CapEx plan? We had an ambition of incurring INR 200 crore of CapEx over two years. Any change or is that plan going well? No, the CapEx plan of INR 200 crore over the next three years, excluding anything that we do for 4-wheeler, remains intact. That's the plan for CapEx. 4-wheeler, as we have mentioned in the past, is yet to be finalized. That number could be on top of this. Will be on top-up. Okay, thank you so much. I'll get back. 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. Am I audible? Yes, please. Yeah. My question was more on the growth side. Since we are facing this geopolitical issue and the magnet issue that was happening, considering obviously our order book, but this overall macro situation, could you guide us in terms of what kind of growth we are seeing for this particular year, that is FY 2026, and over broader term, over the next three to five years, what type of growth are we looking at? See, organically, we've always maintained that we will grow at 15% to 20%. That's the benchmark that we have set for ourselves. This does not take into account any positive upside that will come from a significant ramp-up in our 4-wheeler business, which is why we've not given that number to you. Without that number, we will aspire to grow at 15% to 20%. Even in this quarter, we had grown around that figure, but this is a seasonal quarter, so we will make up for that. 15% to 20% remains our sales growth rate. All right, sir. Also, I think last quarter we mentioned that we had around RFQs worth INR 700 crores for the 4-wheeler side. Any update on that in terms of conversion to orders or any new RFQs that you received in the past quarter or the current quarter till date? We continue to work on those RFQs, and they have moved to the next step. The technical studies are on alongside the customer. We hope to convert a few of them in the coming quarters. We did work on Force Motors RFQ which got converted into order for us on which we are working for development. Today, could you confirm what kind of RFQs are we looking at? Has it increased or how is it? The RFQ value as of now remains the same because some have got converted into orders to us. Other values, we are working on them technically. At this moment, we cannot divulge the details of the products on which we are working. All right, sir. And sir, just one last question, if I can squeeze in. I think last concall, we spoke quite a bit on the technological side in terms of that we are focusing on electronics and that kind of technology. Any update in terms of any backward integration or a new category that we are thinking of in terms of product basket? Yeah, interestingly, the RFQs that we are working on, a few of them are on technology front, and that's why it is taking a bit of time. We have also announced, in the CMD's speech, the setting up of EMC/EMI laboratory, which is the first of its kind in lighting, which is enhancing our strength in electronics. In next quarter, we should be commissioning this facility. Integration of electronics, optics, thermal, mechanical, all at one location. That is basically to serve our customer in a much better and faster way and gain market share in the industry. All right, sir. Thank you so much. Yeah. Thank you. Thank you. The next question is from the line of Girish Kasnava from Mirae Asset Capital. Please go ahead. Yeah. Thank you for the question. Girish Kasnava here from Mirae Asset Capital. Sir, my question is on the gross margins and we have seen a very steady improvement in gross margins in the last three, four quarters. I just want to understand what kind of localization we are doing, how we are able to achieve this. Are you talking about EBITDA margins? Gross. EBITDA margin. Gross. Gross margin. Gross margin. They've been largely stable and we've been able to manage with any vagaries with the customers. We've kind of told you in the past as well that any cost increase, decrease, is all passed on to customers. The margin has been fairly stable and will continue to be so. Okay. On the run rate of the 4-wheeler vertical, it is around INR 18-20 crore in last quarter also, and this quarter also around INR 18 crore, I think. I just wanted to know from which quarter we should expect any initial increment in these numbers for the 4-wheeler side. So- Or it will remain largely same throughout the year. In the previous investor meet also, I have maintained that at this moment we are focusing more on penetration with the customer development of technology. The revenue portion we will address by the end of this year for the next year budget. Okay. Thank you, sir. Thank you. Thank you. The next question is from the line of Shubham Sehgal from SiMPL. Please go ahead. Hello. Am I audible? Yes, sir. Go ahead. Yeah. In 2-wheeler business, what scope do we further see to grow with our existing or new customers? Yeah. We are working with all the customers to go into details with the electronic items which is already being included in CMD's speech. We are working to be majorly on electronics. One is of lighting with LED and further electronic components like controller and others. That is a growth we are looking for into the electronic area. Okay. As you mentioned, the other electronic components, have we started working on this? Could you just give more color on this? Yeah. We have already generated two modules which are already being presented to our customer, and our dialogues with the customers are on. We are discussing with all the R&D's level and very soon will be implement into production line. Okay. Got it. My next question was, except for lighting business, what has been the growth in our key customer volumes? Like all of the other products other than the lighting business, what growth has there been with our key customers in terms of volume? We give value data, not volume. The key growth for the current quarter has been driven by TVS, Yamaha and Royal Enfield. I don't mean that. I mean except for lighting business, how are we seeing the growth for our key customers? Except for lighting business, other products. Okay. Except for lighting, for other products, we see stability. Our main focus from Fiem Industries remains on lighting. Lighting is undergoing technology changes and we are focusing on lighting. So there we see a stability in other products. In lighting, we want to grow. That is our core business. Okay. Got it. Just last question. If we see in the last five years, I wanted to ask, has our LED realization remained stable or has it fallen? Because if we see our revenue run rate of quarterly, it was INR 180 crores around calendar year 2023, and now it is around INR 300. So have we seen our volume growth better than this overall sales growth number? See, there is no yes or no answer to this. This is a product mix issue. For example, if you were to sell a significant part of an export model, say to Yamaha at very high realization, that will be very different from another LED being sold here. To give a generic answer, no. I think what we have seen over the last five years is that definitely products are getting slightly more premiumized and hence generally realizations are going to increase because the product complexity, the product demand from the customer is of a better product. So that trend is happening, but then it really depends on which model is doing well in the market and which one is producing large volume. Okay, got it. Thank you. Thank you. The next question is from the line of Devesh Kal from Monarch. Please go ahead. Yeah. Just want to understand. So in Yamaha, sequentially over Q4 FY 2025, it seems our content per vehicle has gone up. Is it just the higher export mix or product mix in the overall pie or we have added some one or two models in this quarter? Yeah. During last quarter, CMD's speech, I think it is being announced there are two models which is being launched for the global, are doing well. And of course, domestic model also doing good, like Xpulse. These are the few models which are doing good and volumes are increasing and that is also giving positive growth for us also. Okay. So it is primarily higher mix of export models- Yeah Yeah, domestic and export, both models. Understood. Similar on the TVS side, not to be similar exchange like Yamaha, but there also it seems like content per vehicle has gone up. Any color on that? Yeah. There are few models in TVS if you see recent launch of Jupiter wherein they have added front lighting and rear lighting additionally are giving us a very good volume which is almost double the first quarter of last year. This is one and Apache is also doing good wherein three-wheeler is also being doubled if we see from first quarter last year to this year. These are the few things which is being almost triple the overall volume. Understood. And sir on the Hero side, besides Xtreme 250R, do we also supply to Xtreme 125R or it is just Xtreme 250R for now? This is 250 and 125 will also be launched very soon. Okay. 125. Yeah. Sorry? Product will be added into 125 very soon wherein 250 is already being started adding. Okay. Understood. Okay. Yeah. That's it from my side. Thank you. Yes. Thank you. The next question is from the line of Anupama from Ratnatraya Capital. Please go ahead. Sir, this is Pavel. I just wanted to understand, in 4-wheelers are we going to limit ourselves to passenger vehicles or are we also looking at the commercial kind of space because we seem to have added an RFQ from a slightly larger kind of vehicle class. Secondly, what should be our expectations on the margin trajectory going forward since we are I mean do we expect the margins to improve from here? Okay. From our side at Fiem Industries our focus remains on passenger vehicles, commercial vehicles and all 4-wheelers. The complete market is important to us so we are not limiting us to any particular segment. Second question, we see quite a bullish trend in 4-wheeler and also in the off-road segment. We remain focused on all segments of 4-wheeler and we see a very positive growth in future. Okay. One more question from my end. On the 4-wheeler side, beyond what volumes would we require a separate plant dedicated to the 4-wheelers and by when do we expect to do a CapEx on that? Normally a plant is viable at a revenue of around INR 200 crores and because the initial investment in lighting is high, it is a capital intensive product. Normal viability is around a revenue of INR 200 crores and it also depends on the product mix. Like certain products we are able to service from our existing capacity and facility so it does not make sense to invest again. We are constantly reviewing the need and we will take the appropriate decision based on the order book. So we are saying, sir, below INR 200 crores kind of revenue we can serve from the existing plant itself. Is that right? No, I didn't say that. Your question was when do we need a new plant? Right. For an independent plant it is a INR 200 crores but we have to make certain investment in our existing facility to serve the growth from zero to 200. Got it. Yeah. Got it. On the technology side are we developing new products or are these traditional products for 4-wheelers that it is taking time for us to actually get through with the RFQs? I just wanted to have an understanding on that. As explained in the previous calls we are working on three pillar strategy in 4-wheelers and one of the pillars is new technology which is more robust and long. It takes time because you are positioning yourself as a new technology player and it is making a good progress as far as we are concerned. The second is for the current models, that is the second pillar, we have to develop products. We enter as a small lamp player and here we got success. We explained last time we got three products for Mahindra Bolero which is their flagship model. The first pillar is also on the standard product that we have that can be applied to any other model. These three pillars we are tracking. Each have their lead time, which are different. But normally in 4-wheelers, it takes easily up to 2 years to develop a product and take it to start a production. Okay. For us, of that 2 years, I am assuming around 6-8 months has already passed, correct? Yeah. The technical reviews of the products and the RFQs are in progress, and we will keep you updated in the next quarters. Okay. Thank you, sir. Thank you. A reminder to all the participants, you may press star and one to ask questions. The next question is from the line of Vijay Pandya from Nova. Please go ahead. Thank you, sir, for taking my question. I have a couple of questions. First on, the Yamaha sales. Yamaha sales has declined in the first quarter, and generally the feedback at the global level from Yamaha was that the sales will be weaker in calendar year 2025. Are you expecting any decline? And if also you can quantify what is our exposure to Yamaha export market and Yamaha domestic market. That will be helpful. Our Yamaha sale in Q1 as compared to Q1 of last year is almost up. For us, there is an industry decline in domestic that you are talking about, but we have not seen that. We are, in fact, ramping up sales from Yamaha. They are both for some of the domestic models as well as a large portion to export orders. Okay. My understanding was that they have suggested that export market for them will be weak, for Yamaha. Are you seeing any changes in scheduling or any production disruption coming or any order cancellation? No. As I said, this quarter has been very good for us for Yamaha, and we continue to see good traction. Okay. Secondly, sir, if you can just confirm about the orders from Mahindra that we got, Mahindra and Mercedes, which you spoke about in the last quarter. When is the commercial production that we can expect? Is it this year, next year? You can just give us a timeline and what is the order book for peak revenue, how should we look into it? That will be pretty helpful. As shared earlier, we have commenced our commercial production for Mahindra in this quarter, the quarter that has just gone. Our first product, which is LED license plate lamp, is already getting applied to almost all models of Mahindra, step-by-step basis. Happy to announce that we have had zero concerns on quality or delivery and have got appreciation from our customer. For other product that we have, Bolero, that will follow the launch plan of Mahindra, which we are not able to disclose now because this remains confidential. But the development of the products are happening. Regarding your query on revenue, as explained earlier, at this moment, we are focusing on entry into the 4-wheeler market. For the next year budget, we would like to convert this into revenue and share with our investors. Okay. Lastly, sir, I just wanted to check in terms of the realization. The LED as a percentage of sales is definitely increasing. Just wanted to check how much is this contributing to the revenue growth. We are guiding for 15%-20% revenue growth. If you can help us understand what will be coming from the LED mix, that will be pretty helpful. Our 15%-20% takes into account the fact that LED will continue to go up. From a proportion of what we have right now, which is 64%, we believe that this number should gradually move up, 75%, 80% over the next couple of years. That will drive this revenue growth because at the industry level, we are taking the industry benchmark of 6%-8% growth, which is what the industry is projecting. Okay. Lastly, just wanted to check if you are seeing any impact from the supply chain issues in terms of importing of the glasses. Because we use the glasses for our LED lights. Are we seeing any impact in terms of raw material impact or anything that may hamper our production or hamper our supply chain? No, we are not seeing any such impact. Is the raw material magnet used in glasses? I am not sure. But we have heard the news. We are not using glasses in our lamps. It is all being polycarbonate and PMMA material is being used, not the glass. This is outdated already. Okay. Thank you. Thank you. The next question is from the line of Saurabh from Multi-Act. Please go ahead. Yeah, thank you for the opportunity. So couple of questions on Hero. You mentioned that you would be entering into the 125cc segment. So is it the existing refresh model or the upcoming new launches that Hero would be doing, which you have won? This will be a new model launch, which will be soon, might be in couple of months, it will be launched. Upcoming models. Upcoming models. Okay. The development phase has been done, and soon it will be in the commercial production phase. Right. Very true. Will this be LED lighting or a mix of both halogen and LED? No, this is all LED lighting. Okay. Other question I had was on other operating income, which used to be around INR 4 crore-INR 5 crore a quarter, and it has jumped to around INR 9 crore. What is that with respect to? Yeah, you are right. It has marked an increase. The INR 4 crore-INR 5 crore is the regular income, which you are aware, which is testing fees, scrap sales and so on, which is regular. This quarter includes a INR 4 crore odd design fee for a project that we specifically ran. That is a separate one-off. If you see, even when we report our EBITDA margin, this is excluding that number. Including this, our margins would have been high. Okay, so this is like a reimbursement of design expense that we would have incurred in the quarter or in previous quarters, right? It's a culmination of a few things for a couple of clients for the year, which has been sort of now passed on. That's it. Okay, sure. Yeah. Thanks. Thank you. The next question is from the line of Satyajit Singh from Value Research. Please go ahead. Hello. Yes, go ahead. Am I audible? Yes, sir. Hi. I just had a simple query. Across the board, domestic sales of many OEMs have been declining or shown a negative growth. You have consistently grown your sales by about more than 14%, 13%, 14%. What kind of industry demand are you seeing in the market? If you look at the industry reports and the trends that are published, I think generally, the 2-wheeler demand seems to be robust for the year. As per projection, the range is anywhere from 6%-10% of what you grow is what is being projected by the industry. All right. Just wanted to know, is there any demand shortage coming forward? Since there has been a trend for last couple of quarters that domestic sales have not been performing well. Is the export side performing well for you? How is demand coming up for you from the direct OEMs? No, I think you are mixing up a couple of industries. Two-wheeler industry has done well last year, and two-wheeler industry, we believe, will regain new high numbers this year. Overall, if you see even the constituents, there could be quarter here and there, but if you see annual growth, we are on a good growth path. All right. Thank you. Thank you. A reminder to all the participants, you may press star and one to ask questions. Ladies and gentlemen, as that was the last question for the day, I would now hand the conference over to Mr. Sahil Sanghi for closing comments. Over to you, sir. Yeah. I just want to thank the complete management of Fiem Industries for patiently and very elaborately answering all the questions. Also, I would want to thank all the participants for joining the call. Jain sir, would you like to give any closing comments? 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. 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. Thank you.