Q4 25/26

Jun 10, 2026

Summary

FY26 revenue grew 10% and Q4 EBITDA rose, while labour-code charges reduced reported profit. Management expects strong home-appliance momentum and engineering growth, but commodity and forex costs remain a margin risk.

Ladies and gentlemen, good day and welcome to the IFB Industries Limited Q4 FY 2026 earnings conference 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 the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ravindranath Nayak from Nirmal Bang Institutional Equities Private Limited. Thank you, and over to you, sir. Thank you, Steve. On behalf of Nirmal Bang Institution Equity, I welcome you all to the Q4 FY 2026 earnings call of IFB Industries Limited. I thank the management team for giving us the opportunity to host this call. From the management side, we have with us Mr. Sandeep Joseph Abraham, Managing Director and CEO, Home Appliances Division, Mr. C.S. Govindaraj, Executive Director, Manufacturing, Home Appliances Division, Mr. Soumitra Goswami, Chief Financial Officer, Mr. Jayanta Chanda, CFO, Engineering Business, Mr. Shantanu Chakraborty, Plant Head, Engineering Business, Mr. Kartik Muchandi, Head, Finance and Accounts, Home Appliances Division, Mr. Ranjan Mohan, National Sales Head, Home Appliances Division. Without taking much time, I would now like to hand over the call to the management for their opening remarks. Following the management commentary, we will open the floor for a question and answer session. Over to you, sir. Thank you. Good afternoon, everybody. I am Soumitra Goswami. I welcome you all for IFB Industries Limited investors call for fourth quarter of FY 2025, 2026. Firstly, I will be informing you about the quarter four results. Revenue for the quarter was INR 1,456 crores against last year's INR 1,312 crores, which is a growth of 11.03%. EBITDA for the period was INR 80.7 crores and its percentage to revenue is 5.5% as compared to last year's INR 69.4 crores, which was 5.3% on revenue. There is an increase in PBDIT amount by INR 11.3 crores, which is a growth over last year by 16.3%. Fixed expenses for the quarter were well behind budget. PBT before exceptional items for the period was INR 46.05 crores, which is 3.2% on revenue against last year's figure of INR 29.3 crores, which is 2.2% on revenue. In this quarter, an incremental liability of INR 0.58 crores has been recognized as an exceptional item. This is in line with Labour Codes notified by the Government of India on 21st of November 2025. This charge has reduced PBT amount to reach INR 45.47 crores, which is 3.1% on revenue as compared to last year's INR 29.3 crores, which was 2.2% on revenue. Quarter four PAT was INR 33.72 crores, which is 2.3% on revenue against last year's INR 22.29 crores, which is 1.7% on revenue. Now, YTD March 2025 figures are like this. Revenue for the period was INR 5,476 crores against last year's INR 4,977 crores, which is a growth of 10%. EBITDA for the period was INR 334 crores. Its percentage to revenue was 6.1% as compared to last year's INR 325 crores, which was 6.5% on revenue. Fixed expenditures for the quarter were well within budget. However, in case of some of the expenditure heads, expenditure has increased over last year. PBT before exceptional items for the period was INR 193.57 crores, which is 3.5% on revenue against last year's figure of INR 171.26 crores, which was 3.4% on revenue. In YTD period, an incremental liability of INR 13.96 crores has been recognized as an exceptional item. This is in line with Labour Codes notified by the Government of India on 21st November 2025. PBT after exceptional items from the period was INR 179.61 crores, which is 3.3% on revenue against last year's figure of rupees INR 171.26 crores, which was 3.4% on revenue. PAT for the year was INR 133.34 crores, which is 2.4% on revenue against last year's INR 128.79 crores, which was 2.6% on revenue. Before we start the question and answer session, I'd like to introduce Mr. Sandeep Joseph Abraham, MD and CEO of our Home Appliances division, who has recently joined on 8th of April in our company. He will take all the calls, all the questions today, which are pertaining to Home Appliances division. Our chairman, Mr. Bikramjit Nag, is unwell today. He's not joining the call. With this, I will request to start the question and answer session, please. Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking the question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Lakshminarayan K G with Tunga Advisors. Please go ahead. The current participant has been disconnected. We'll move on to the next question. It's from the line of Mahek with NV Alpha Fund. Please go ahead. Hi, sir. Thanks for taking my question. My first question is, if you could give us a breakup of the sales that we have done in the quarter from AC, from front load, from top load. Mr. Mattoo, can you please take this question? Yeah. Basically, you wanted to know what is the percentage of sale to the total sales. Yes. Or the numbers you wanted. We don't give. Numbers. Product sales. We don't give the numbers, but we will just tell you that in front loader, we had a good double-digit growth in this quarter, and top loader has been good for us. And we have been able to improve our market share. Again, a very good double-digit growth. In microwaves, also the growth was in quarter 4, and a very good growth over last year. Then if I further move on to ACs growth was muted. The growth in quarter 4, we were able to recover something which because of in first quarter, because of this early monsoons, et cetera, the AC industry showed a major dip. We were able to recover in quarter 4 a bit, but the growth was not very good. That's how it is. I think the other thing that we have done is that we have actually relooked at our product portfolio, and there's considerable amount of simplification of our product portfolio that has been done. We have reduced our number of models that are there in each one of the categories. That has been a very conscious effort from our side to simplify the entire process. And as a result of which, what we are finding is that our revenue growth is significantly higher than our volume growth in most of the segments. That's a conscious call that we are doing. We did a portion of it towards the end of Q4, and we are continuing it in Q1, and that is going to be an ongoing process. The idea is to simplify our product portfolio and sort of make it easy for everyone, including the dealers who are dealing with our products. Right. This simplification, basically where should it be seen in terms of numbers, whether the inventory would reduce or you would see increased revenue contribution or growth, or do you see cost savings? How can we sort of see this flowing into numbers? Yeah. There are multiple things that would happen. One is because the portfolio is simplified, therefore it should definitely help us in our numbers because from a dealer point of view, from a stocking point of view, from a forecasting point of view, the chances of modules going out of stock and all become that much better. So simplification of the product portfolio will definitely help us as far as sales is concerned. It will also mean that the portfolio being simple, the kind of focus that would be provided by everyone in the sales system, right up to the person who's at the outlet, would also increase because he's got lesser number of products to detail, and therefore it becomes that much more easier. From other point of view, simplification would also mean manufacturing should get the benefit out of it because lesser number of SKUs to be made as a result of it, the change over time and all those things get impacted. So it will help us in all ways. What we also therefore are able to do is that we are able to push this whole entire thing of premiumization, because now the number of SKUs are lesser and therefore at various levels in our sales system, we are able to ensure that the necessary incentives are provided to ensure premiumization is also happening. So in my opinion, rationalization of products would have impact on everything. It would have an impact on sales, it would have an impact on factory production, RM, everything. Got that. Sir, one clarification I needed. If I look at your presentation on slide 13, what we have mentioned is that number of front load units has increased from 1.46 lakh to 2 lakh. Now, I wanted to know this is our sales or what? Because if I just back calculate, 50,000 units addition QOQ, that would give me at 40,000 months of realization. That would give me roughly INR 200 crores of delta QOQ in terms of revenue. While our revenue in home appliances has increased only by INR 50 or INR 60 odd crores. So is the math correct first, or is the understanding correct? If not, then what exactly is this number? The volume growth in FL is 7% for the entire year. It is 20% for the quarter, and the revenue growth in front loader is 11% for the full year. Karthik here. I will just clarify. The numbers what we have given is the industry number for 12 kg and above. It is not our number. Got it. 12 kg actually is a new emerging segment that is there. Today it contributes to almost 13% of the overall. If you look at 2025, 2026, it is about 13% of the overall market, 12 kg and above. That is a new segment that has come up. It has really come up in the last couple of years. Got it. The 11% you mentioned is YOY growth in our front loaders. Just confirming. For the quarter we've grown by- Yeah. What is it? Please continue. I didn't get it. You said- The quarter we have grown by 21% and YOY it is around 7%-8%. Got it. Mr. Mathur and one minute. Mr. Mathur and Sandeep Joseph Abraham, you will have to tell your name before answering the question. Otherwise, they will not be able to track it. Sure. Got it. The next question is, we have spent, give or take, close to INR 500 crore in terms of CapEx in the last six odd years. And the last two years especially have been INR 100 odd crore of CapEx per year. Just wanted to understand broadly what categories have we spent this INR 500 odd crore in the last five, six years, and what is the sort of revenue that this CapEx can give us? Govindaraj. Yeah. It's Govindaraj here. In home appliances, whatever investment we have done, about 50% of the investment, whatever we are doing, is on the new platforms, like what Mr. Abraham was telling on the higher capacity machine. So we are putting investment into 13 kg and 14 kg segments in front loader. The second thing is, we have put in some about INR 20-30 crore on the capacity expansion of front loader, top loader, and AC line. Your question on the segment of 12 kg, we currently don't operate in the 12 kg. As Mr. Govindaraj said, that we will be launching after 12 kg, but we'll be launching a 13 kg and a 14 kg in the front loader this year. Right. How much have we spent in home appliances in the last five years in terms of CapEx out of this roughly 500? Mithun here. I am telling you the figure for current year. Current year, total company-wide number is INR 89 crore. Okay? INR 88.69 crore to be precise. Out of that, home appliance division is, I'm telling you, around INR 43 crore. Home appliance division alone is INR 43 crore, total is INR 89 crore. Got it. The rest would be the automotive division. Engineering division, motor division. All these segments are there. Also, Home Appliances division branch is there. Kolkata engineering, Bangalore engineering, and also Sri City. Got it. My last question is, if not for the volatile forex movement where we lost almost INR 50 crore-INR 55 crore in the adverse movement, our margins, safe to assume that our margins would have been higher by that INR 50 crore-INR 53 crore that we lost due to forex? Definitely. Kartik, you can answer this. Yeah. Sandeep here. Basically, if you look at the full year, the impact on commodity as well as forex was about 59 odd crores. What we were able to do is because of a program that we are running on cost optimization. Sorry, 32 and 52 is 84 crores, but 67 crores of that we were able to make up because of our cost optimization program that we are currently running. There were a lot of other initiatives like increase in prices and things like that. A large portion of the commodity and forex we were able to make up because of the other activities that we had done. If we had not started that program on cost optimization, then I think we would have got very badly impacted because the P&L would have been hit by about 84 crores because of commodity and forex. So taken the entire impact, now we have mitigated the entire 84 crores impact. If things stay as is, that 84 crores should come back to profitability, right? In the next year, if the commodity price don't increase and the forex also does not increase that much. Yeah. There are two things that are there. One is ideally, we would have liked to pass on everything to the customer. But today, that's not possible because of competitive and our related position in the market. Therefore, we are looking at opportunities to increase our prices wherever it is possible. We did something in Q4, and Q1 of this year, we've already taken price increases in almost all our categories. So some amount of that, we will have to make up with price increases, and our cost optimization programs would continue. For example, we have already seen about, if you look at April and May, we have got about 29 odd crores. This has come because of the cost optimization. So 67 for the full year of last year, and in April and May, we've already got about 29 odd crores. There are new ideas that are coming in. We would like to believe that in the next 10 months, another 120 odd crores would come in the form of CI 13. That should help us. A combination of cost optimization ideas, any opportunity of a price increase, all that should help us to take care of any further impact because of commodity and forex. If commodity and forex does not gets better, then it should start flowing into the P&L. Because the CI programs that are there, in many cases, it's been horizontally deployed, so the benefits continue. Therefore, a softening of commodity and forex would have a positive impact on the P&L. Got it. This year, total, we are expecting INR 150 crores cost initiatives impact to- Yeah. That's what we are expecting. INR 30 odd crores has already been realized into the P&L, and we would like to believe that in the next 10 months, another INR 120 odd crores would come in. It also depends on the season because the CI programs are different for different categories. Almost. Therefore, it's got that seasonal impact because today, if you see the AC season is more or less over. It'll come up only in Q4. So there are those seasonalities that are there. But we would expect another INR 120 odd crores to come in because of CI. How much of that will come into the P&L will depend on how forex and commodity actually move in the months to go. Yes. Got it. Sir, just last question. So in terms of AC, has our OEM sales completely dropped? Because in the base quarter, Q4 2025, it was almost INR 100 crore. So has that completely dropped off? So it has not completely dropped off. There are a few OEMs that we are supplying. But it is not completely dropped off. But a couple of OEMs, I wouldn't want to name them, but who used to pick large volumes from us, have stopped. I'm presuming they're getting better options from somewhere else. But it is not completely stopped. This year also, we are doing, but some of the big OEMs, which used to pick up big volumes from us earlier, have more or less stopped. Got it. Got it, sir. That's it from my side. Yeah, Kartik here. I'll just add one point. During last year, there was a 5% degrowth in OEM, not a substantial degrowth. Last year as in FY 2026, you are saying? Yes. Full FY 2026. Got it. Yeah. Got it. Thank you, and all the best. Thank you. The next question comes from the line of Vinod Krishna with Avendus Wealth. Please go ahead. Sir, am I audible, sir? Yes, you are. Sir, can you share with us market shares in top load and front load and what stage we are in filling this product gap? Because if you see from especially last three years, we have been continuously talking in our presentation because that is our primary product, continuously filling the gaps in products. So how far has that journey come, and what are our market shares in both front loader and top loader? Sir, if you can share, please. Our front loader is about 23% odd, is what our front loader market share is. As I said in the earlier thing, this is despite not operating in the 12kg category, which is now 12% of the market. If you were to remove that 12kg, we are at about 25% and up to 26%. That would not be right because at the end of the day, 12kg is part of the market. Therefore, if you look at it, we are at about 23% odd. However, we would be plugging the gap this year by launching suitable products in the 13kg and 14kg, which should also then give us a play in the 13kg, 14kg. We are at about 23% odd overall. If you look at our addressable without taking 12kg, we will be at about 25% and up to 26%. Top loader, we are currently 9%. We are growing in top loader. Our market shares have gone up. If you actually look at our volume growth, for the full year, we have grown by about 19% in top loader. Sir, these product gaps, are we at the end of this or is it a continuing? How should we understand? Because continuously we are seeing every presentation, especially in the washer segment, that we are plugging in this, we are into this kg, that premium offering and all. Can you name, if you are 25%, how many other people? Is it like another two, three people occupying 22%, or is there any big guy? Sorry to ask, because is there any other big competitor who is much larger? Or is it like all other people are around 15%, 20% only? No. There are people at different categories. I do not want to name it, but there are people who are in different categories. We are currently number two in this. But there are people, different categories. There are perhaps two or three who are major players. The others are fringe players. Got it. This product is a continuous process? It is a continuous process because as you would see, the 12kg as a segment was not there. Today it is contributing to about 12%-13% of the entire volumes of the market. Therefore, there definitely seems to be a customer movement towards larger capacity. Is it commercial laundry or is it because of double income? Hello? Hello? Gaurav, definitely we are seeing a movement towards larger capacity. Answering your question, there will be a continuous and Sir, I am not able to hear. Is it the same for everybody, or I am the only person who is not able to hear properly? Mr. Abraham, your line is not clear. Soumitra Goswami, you hear? I am also not hearing what you are actually talking. Sir, he got disconnected. I will just reconnect him. Okay, sir. Sorry, I got disconnected, Soumitra Goswami, again. I will just continue from where I am saying that it is going to be a continuous process, not just on the kg. As I said, we are now 13, 14. We may need larger capacity washing machines. Also, there could be newer features that are coming in because people are looking at new features that are coming in. That is also an option. So it will be a feature improvement as well as perhaps looking at different categories and higher capacity of washing machines. Thank you, sir. Just a follow-up question. Sir, you first spoke about INR 120 crore or INR 150 crore. Just in my understanding, there is a limit to the cost reductions that we can do in the long run, because ultimately it will start affecting the product quality and the brand. Mr. Bikramjit Nag has been always telling us about we should minimum grow by 20%, and we have the gaps in distribution, sales channel, and the product total having ACs, refrigerators being present. Yeah across all. How far are we in this journey that we can start kicking in this 20% growth in home appliances? Because you have got the presence in ACs and refrigeration now. How should we think? Because this last 2, 3 years, if you remember, sir has always been saying that we should minimum grow at 20% even. Yeah if you fix this distribution and product gaps. Yeah. If you looked at last year, we grew by 10.5%, and what you has pointed out is right. There's only limited that you can do as far as CI is concerned. That's also a continuous process. We have to keep finding out newer things. But the brand that we are, cost optimization cannot be at the cost of features and by reducing the quality of the brand, because that would kill IFB as a brand per se. Yeah. We cannot do cost optimization at the cost of the current price positioning and our brand is concerned. We can't be doing that. However, there are definitely process improvements that are there, so that is one way by which we would do it. Answering your question on distribution, yes. If you actually look at it, this is our data, we have identified around 10,000 odd outlets, which we believe are contributing to about 80% of the volumes. We said that we need to concentrate on those counters. All our efforts are to ensure that we get placement and extraction from these outlets, and that is what it is. Therefore, some of it has started kicking in and the first 2 months of the year, how it did, is looking really good. It's somewhere close to the number that you're talking. So sir, our market share in ACs and how are you looking at ACs and refrigerators going forward and at what growth rates and what product positioning and what are you seeing your success or what is your learning in these two newer segments that we have entered? Yeah. So it is breadth. Obviously, we are Hello? Hello? Yes, sir. Just a second. It is much more fragmented than in the case of a washer. We are currently at about 3%, 3.5% is what our market shares are. That is something that we have to grow significantly, and our aspiration is to get into double digits as far as our market share is concerned. By when, sir? By when in double digits? Is there any timeline on? Our aspiration is this year, but that is going to be a tough ask. But yeah, we are working towards that. Sir, just for my understanding, when you have seven to eight players, how do we think about getting and just help me understand how we can, as IFB, go ahead and become a 7%, 8% or 10%? What are the factors that give us the confidence that we have the right to go and gain that market share, if not this year, next year, or in the near future, okay. I am not saying timing is a thing, but what are the factors that are giving us that confidence that we can definitely go there and have a portion of 7% to 10% or 8% to 10% in the long run? How to think about it? What are the assumptions that you are making? Yeah. Basically, the most important and the biggest factor is IFB as a brand. In the categories that we have operated in and in categories where we are entrants, we have significant market share, and more importantly, our products are doing the talking. Therefore, IFB as a brand has got a standing in the market, as far as quality of our products are concerned, quality of our service is concerned. So that umbrella effect of IFB as a brand is definitely our biggest asset. Point number two is that because we are very strong in many of the categories that we are operating in, we already have our relationships with outlets where people are there. Therefore, it's now a question of ensuring that all the tie-ups are done and our placement is done and our extraction happens. But answering your question, IFB umbrella brand acceptance in the market as a product which delivers is definitely our biggest strength. If we have done it for washing machine, and we have done it for microwave, we have done it for dishwasher, and all the things for all the places that we are operating in, we have done it. Therefore, we believe a customer would say that an IFB AC is a great investment to make. So we are confident of growing north of 20% from this year, sir, in home appliances? Is what we are aspiring, yes. Sir, on engineering division, can you give a three-year outlook on the growth, sir? Now we are around INR 1,000 crore. What is our engineering division outlook? Because you are doing a lot of CapEx there. So what is the sales growth outlook there over three years? If you can share with us. Because Mr. Vikramjit Nag was saying that we see higher growth now in engineering and a lot of opportunities. So Jayanta, can you take this question, please? Jayanta? Jayanta here. Jayanta Chanda. Yes, sir. I will take this question. If you look at the revenue trend of engineering division over the last five years, it has a revenue growth of CAGR is about 13%. Over the next 2-3 years, what we have planned is a 20%-25% growth on the existing business. We are also in the process of adding new revenue streams to our business. For example, EV battery packs, motorcycle chains manufacturing, and brake disc, which has become compulsory under the new legislation. We are getting into these businesses also. With these two combined, we have a business forecast of 20%-25% growth over the next 2-3 years. Mm-hmm. Even without the new verticals, you will be able to grow 20%, 25%? Sorry, say it again, please. Even without the new verticals you are talking about this Yeah. -packing part. Yes. On the existing business, we will grow by 20%. We have recently added some capacity to both our plants in the last one or 2 years, and we are in the process of adding some more during this year. Our schedules are good. We are a B2B business, so our schedules look good. We are confident of hitting this. So any target EBITDA margins, sir, at the end? I am not saying because in the middle, you may have a lot of ramping up cost, but at the end, what would be the target EBITDA margin? Target EBITDA margin is 17%-18%, and we already do about 15%. There is a 17%-18% EBITDA margin we are targeting. Sir, so from here, because I am your shareholder from last seven years, can we assume that IFB will grow at north of 20% over the next three, four years, sir? Because, sir, I think we have started that journey inflection point. Can we assume that, sir? Yes. Shareholders trust us? Sure. Thank you then. All the best, sir. Thank you. Thank you very much. The next question comes on the line of Chirag Gandhi with Astrolabe Investments. Please go ahead. Yeah. Hi, can you hear me? Sir, your voice is coming very low. Could you speak a bit louder? Hello. Oh, yes, sir. Better now. Please proceed. Sure. First of all, thank you for the opportunity. I have a question on your home appliances division. While we understand in second half of last year, we had a negative impact of RM cost inflation and Forex movement. Do you see, at least in Q1, any further impact of increase in RM cost? Yes. Sandeep here. RM cost is increasing further, both commodity and forex. If you look at our April to May, is having a negative impact on us. That negative impact currently has not been made up by the cost initiatives that are there. Answering your question, April, May is also showing a negative as far as commodity and forex is concerned. Will you be able to quantify how much of that will have a negative impact on the data for? If you look at between commodity and forex, the negative is about INR 49 crore for April, May cumulative. Understood. How much of that can we offsetting with the cost measures that we have taken? The cost we have offsetted about INR 29 crores in April and May. Out of INR 49, INR 29 has already flowed into P&L. Now we'll have to see how much we can make up with the price increases. I don't know whether you We have already taken some price increases in Q1, and we should start seeing the benefit of that in the next few months. Also, we'll have to constantly look at opportunities depending on the market and our relative position in the market. We'll have to continuously look at ways by which we can take it up further. Ideally, if we could have passed on the entire commodity and forex as a price increase, that would have been ideal. So that the cost impact, cost initiatives flow into the P&L as a benefit. Unfortunately, we are not in a position to pass the entire thing to the customer. Understood. Within cost measures, can you highlight two to three key areas where we are able to save cost? For the target that we're given for another INR 120 crores for the next 10 months, what are two to three key areas where we'll be saving the cost? Mr. Govindaraj, you would want to take. This is Govindaraj here. We will not be able to tell the specifics, but it will be basically designed to value and focus on cost innovation ideas in electronics. Understood. As far as our cost initiatives are concerned, we are also seeing that some of the benefits that we would get is on tightening up our cost to serve. That's something that we would look at. And some benefit coming out of because of better management of our trade schemes is also somewhere where we should get some benefit coming into the P&L. Understood. In terms of the components that we import, what will be the share in overall RM cost? Component. Component what is the import content. Import is about 30 odd percentage is what the import content is. We also import some units per se. If you take our manufacturing imports is about 30 odd percentage. But if you take other imports or everything put together, currently it's about 39 odd percentage. The 30 percentage, some of those items are now going to get indigenized. Therefore, the 30 percentage, we are expecting it to come down to about 25 odd percentage. The 39 percentage, which is our overall import, would come down to somewhere around 30% to 32% is what it would come down to. So there is some indigenization that will happen. Understood. Just last couple of questions from my end. One is on the engineering business. In the presentation, we have mentioned that we have missed the order wins target that we had for FY 2026. We achieved, I think, around INR 150 crores versus target of INR 250 crores. So any particular reason in terms of miss on that target? Yes. Sir, could you repeat the question, please? Sure. My question is on the engineering division. We had set a target of INR 250 crores of new order wins for FY 2026, and we achieved around INR 153 crores, right? Can you explain the gap? Yeah. See, the order maturity in the engineering business takes a long time. When we say the order wins, that means the PO has been issued to us and supplier. But before that, there is a 7-8 months validation time where parts of drawing is approved, parts are approved, the samples are given and all that. While the marketing department is actively working on a large RFQ base, the actual conclusion of these orders was INR 153 crores. The pipeline is alive, and we are hopeful of closing all these orders by Q1 or early Q2. Also any target for FY 2027, and what is the order pipeline that we have, if you can quantify that? Mr. Ananth, are you there? Can you give a Yeah, Ananth is here. Actually, this FY 2027, we are finalizing INR 350 crore additional. With the 13th including all the previous add-ons. These are new orders that we are chasing. Once all parameters are closed, then we will be getting the PO from the OEMs or Tier 1s with whom we are negotiating basically. Understood. The last question is on the BLDC motors. Within BLDC, we were facing some challenges in AC motor segment. Any update on that? Anand, are you there? Anand Reddy? Anand Reddy, are you there? I don't think he's there, Soumitra. Mm. Will we- They have resumed the supplies to Home on the washing machine motors in a large scale. The AC is still going through some trials because I think there were some. It's not fully resolved yet, but we're very close to solution. That's the information I have from motor division. Okay. Just a clarification. This entire AC motor sale is internal, right? We are right now not supplying anything to the external OEMs. Up till now, yes. But there is an active hunt for external customers also. Company is looking- Right now- Yeah. Understood. Okay. Thank you so much for answering all my questions. Thanks. Thank you. The next question comes from the line of Saket Kapoor with Kapoor & Co. Please go ahead. Hello? Hello? Oh, yes, sir. Please proceed. Yeah. Namaskar, sir, and thank you for the opportunity. Hello? Hope I am audible, sir. Yes, please. Yes, sir. Welcome, Sandeep sir, joining the organization. We hope for the organization scaling new heights under your leadership. Thank you very much. Yes, sir. Sir, firstly, I have a question firstly for the engineering segment. As the person outlined to us that we are expecting a 25% growth in our revenue growth for the current year with the vertical, with no addition in vertical. What kind of capacity utilization levels are we running the division? What is our CapEx that we are augmenting in our existing facility to ramp up the volume that we have envisaged? Last year, sir, in the engineering division, had got approval of nearly INR 100 crores of CapEx, basically. Now, we have been able to implement only INR 63 crores in the April-March, and it is being carried over this year because some of the projects took time to materialize. After sanction, we initiated the finalization of the chain plant manufacturing site, took some time to identify. Out of that INR 100 crores, we added capacity in our stamping division. There were 3 presses added to our stamping division. That has given a revenue, excess capacity about INR 40-50 crores in this stamping division. Both the plants in Kolkata and Bangalore have opted for a fine blanking press each. That will easily give about INR 30-40 crores each to the plant. And some auxiliary machines and furnaces have been added. All these to balance the line and keep the graph. And looking at the schedules and new orders, this year, our target is about 23% of what was our last year's revenues. That's how we are proceeding in the engineering division, sir. Okay. Sir, firstly, if you could just explain to me what exactly goes into consolidation when we look at our standalone numbers and in the consolidation, both for both the segment of home appliances as well as engineering, there is an increase in the top line and also it is positively also impacting the bottom line. First explain the consolidation there, and then when we speak on the growth aspect, it should be on the consolidated number or what to factor into it. Soumitra Goswami, you hear? Soumitra, you hear? I have not understood the question. Sir, when we look at our revenues on a standalone basis, the number is INR 1,447 crores for the quarter. When we look at our consolidated number, it is INR 1,498. I would like to understand- Consolidated What exactly- Yeah. What goes exactly into the consolidation? That is the question firstly. We have subsidiary apart from the standalone division, which we have, like home appliance division, like engineering division, motor division, steel division. We have some subsidiary. One subsidiary is situated in Thailand, one subsidiary is situated in Singapore. Their revenue is getting added. You are seeing that the consolidated revenue is some marginally higher than the standalone revenue number. Yes. Understood? Yes. That is the reason. Okay. Got it, sir. And sir, thirdly, we have also, I think, sir, established a new subsidiary in Switzerland. If you could just explain the merits and how the organization is going to benefit from this. I think it will be advanced tooling subsidiary in Switzerland, equipment automatically. Jayant Chanda can take this question. Yeah, I will take this question. Tooling is very central to the engineering business. Whether it is stamping or fine blanking, tooling is the core of the engineering business. Whenever we make components, we need to manufacture the tool first, which will produce the components when it is put on the press. So a good tool produces components in much more efficient way. By efficient way, the strokes that the press can deliver can improve the tool is better, and the secondary processes that a component needs to undergo after the blanking reduces if it is produced through a good tool. So the tooling capability in fine blanking, Switzerland is a host to a company called Feintool, which is considered to be the father of fine blanking, basically. And there is a lot of tooling talent available there. The intention was to set up a company there, basically, which will focus on tooling, tool designing and better tool designing, complex tools, and using transfer technologies and all that. With that intention, we have set up this company there. It's about 5-6 months old, and they are already involved in designing and feasibility study. Many of the tools that we are in our pipeline now and improvement of our existing tools, they are also into external businesses. The brief to them is they should not be dependent only on IFB. They will do the independent business also. They have got some orders from a Spanish company. That is the background of it. It has just started. I think December it was incorporated, and it has just started operations. Sir, it is to be considered as both a technology transfer R&D unit as well as a unit that would be contributing to the revenue. That understanding is correct, sir? It's an independent company from where we will source tool design and by whatever name you may call it, but the nature of transaction will be this. Okay. What kind of investment have we envisaged currently for the same? See, there will be no heavy equipment there. It will be a design unit, so basically, it's a low. I wouldn't like to immediately give out the figures, but investment is not very much because it will be a design company practice for the time being. Okay. Lastly, when we look at the current environment in terms of supply chain issues, in terms of the inflationary impact, then the rupee dollar movement, and also the steps that the company has taken to reduce the cost on the logistics cost, how are we looking at the current year and also already we are into 2 and a half months into the business. How is the working environment, especially in terms of our home appliances category? What kind of pulse of the market you can share with us? Yeah. So from a revenue point of view, the first 2 months have been very good. As said, we've always been talking about 20% growth and all. We are on track as far as the revenue side is concerned. However, on the bottom, there is this issue, as I said, that our cost optimization has not been able to recover the negative impact of commodity and forex. So that's not been recovered. But overall, when you look at it, we are quite bullish on our revenue should really start kicking in. We should get a lot of cost optimization, one, but we are looking at various other ways by which we sort of tighten our operations, stop all leakages if at all there are any. So we are very constantly looking at it, whether it be schemes, whether it be anything, productivity of our manpower. All those things are being done. If over a period of time, if other elements of commodity and forex sort of ease out, then a lot of the activities that we are doing will remain. If commodity and forex eases out, then you'll get the benefits of that. So from a market and from a sales revenue point of view, we are quite bullish. We are only hopeful that some of the negatives impact, if it can cool off, then our P&L will be much stronger than what it is now. Okay. Lastly, just to conclude that, the buoyancy in the market is there, but on the margin front, we are not able to fully recover the cost inflation. We will be able to be there in the same margin which we have quoted, but incremental margins are not possible because of the pass on impact. That understanding is correct, sir? Yeah. For us, the buoyancy is there because we are seeing increase in market share. Right. It is not necessarily because penetration of white goods is increasing. Yeah, there could be some improvement because of that. But we are definitely seeing a buoyancy which is resulting in market share increases, which is good for us. But yeah, overall, I think, bar for the negative impacts, there is no reason to believe that 2026, 2027 will be a muted year. There is no reason to believe that, at least from a revenue and sales and volume growth are concerned. Then some of the new categories that we are getting in will give us the traditional benefits. Okay. Lastly, sir, on the share of profit or associate, I think so it is the refrigeration portfolio that is contributing and that has positively contributed to the tune of INR 4 crore for the quarter. So how is the performance for the IFB Refrigeration going ahead and for the value unlocking part also in terms of the refrigeration unit, any roadmap or if you could outline to us, how are we looking at that segment? No, sir, volume growths have been good because, as I said, our shares are low and therefore from an absolute volume and value growth, both refrigeration and AC, refrigeration has been good from both volume and value growth, but it is still not where we would like to be. And from a margin point of view, our washer segment is definitely something. So growth in the washer segment will definitely have a positive impact in the future. Okay. So the share of profit from the associate is for the refrigeration business only. Yes, yes. That does not take into account the other. Yes, for material year, share of profit 1.4 crore, I believe. It is from refrigeration business only. Okay. Yes, 1.4 crore. It is from refrigeration business only. Correct. What is the outlook, sir, for this category? Refrigeration is a separate business. It is a separate company. We will not be talking on the refrigeration business here. If you have any question, whatever refrigeration we are selling from IFB Industries, that Mr. Abraham can discuss. But for the refrigeration unit as a whole, it is a separate company. We will not be talking on this company. No, sir. My point was that for this quarter it is INR 4 crore of profitability, not INR 1 crore for the quarter ending March. No. Share of loss is INR 1.4 crore. Yes, sir. That is for the entire year you are mentioning. I am just mentioning the quarter contribution. Yes. The quarter contribution has gone up to INR 4 crore. I was just trying to understand the outlook on the same. Earlier also, the management has spoken about how they can potentially create value from the same segment since it is being held by two of your group companies. That was my entire question, sir. You talk to me separately on this, sir. Okay. All the best to the team, sir, and thank you for arranging the call and Sanjeev ji and entire team, hope for further discussion going on. Thank you. Thank you. Thank you very much. Thank you. The next question comes from the line of Lakshminarayan with Tunga Investments. Please go ahead. Yeah. Thank you. Hope I am audible. Right? Yeah. Am I audible? Yes, you are. Yeah. My question is to Mr. Abraham. Sandeep, you have spent over a decade ensuring that vehicles stay firmly gripped to the Indian roads with MRF, and now you're looking at inside of the Indian homes with IFB. You're coming from a company that has aggressive cost control and incredibly tight predictive supply chain management and has set up an incredibly good, robust, exclusive dealer network, right? From that vantage point and when you evaluated, I think you would have evaluated the IFB by working around in the last 2 months, what would be your immediate 3 or 4 priorities maybe in the next 1 year to 3 years, right? Just want to hear your thoughts. Yeah. I think as I said, the company that I came in from, the brand is very strong. It is well accepted, like my previous company, it is well accepted by the customer, and therefore, half the battle is won when you don't have an issue of acceptance of the brand and the fact that the brand is a higher price as far as the customer's consideration is concerned. What could definitely improve is that a lot of processes, Mr. Nag and the team has already put in place. Some of it I had already started having conversations with him. I'm in the company only for 2 months, but I've been talking to him prior to that also, and a lot of those things have been already put in action. When it comes to improving our cost to serve, the way we manage our dealer network, plugging any leakages that are there when it comes to the way we operate our schemes. A lot of those things can be done. The process is already in place. Many of it the company has already done. But I think my expertise over the last 4 odd years across industries, starting from FMCG to the last one that I had. I hope to be able to bring in a lot of that expertise and bring in a much more tighter management of the ship. Any 3 or 4 key priorities you have, qualitatively or quantitatively, for the nearest or long-term maybe? Yeah. Definitely, when you look at our distribution reach, we have already identified the outlets that we would want to be presented. That exercise is already completed. We are keeping close to about 10,000-10,500 of outlets, which we believe are the ones who are contributing, and therefore, that exercise is over. How do I get maximum out of it, whether it be placement as well as extraction from there. That is one key thing that is there. Point number 2 is this industry depends a lot on the person who is in the store. We may call it in-store promoter or whatever. He has a very active role to play, and therefore, a lot of time and effort is being made, one, to bring more number of our dealers under the coverage of these in-store promoters. Increasing the number alone will not work, but how do you bring in tighter controls over productivity. So there is an exercise that we are doing, which is measuring productivity of these people. Number 3 is, we need to look at the profitability of our products. So we are currently looking at profitability at an SKU level. As I had mentioned earlier, this has been an eye-opener, and there have been large scale portfolio rationalization that has been done. For example, in front loader, at one point of time, we had 58 models. Then I brought it down to 25. Similar exercise has been done for top loaders and all our categories, and therefore, looking at products at an SKU level and seeing what needs to be done on simplifying our portfolio, making life simpler for everybody is the third thing that we are concentrating on. The beauty is that the brand is very strong, and I firmly believe that we have got a wonderful team of people who are veterans in the industry, and therefore, they have the relationships. Somebody from outside can put some tighter controls on the ship so that we get the maximum out of the brand, the team, and the products that we have. Got it. Thank you so much. My second part is that, if I look at the previous presentation, there are two data points which were there. One is in terms of the average. What is the inventory holding base of the home appliances division and also the split of home appliances across various product categories. So these two information is actually is not present in this presentation. I just want to understand whether any of that information can be divulged in this call or this is the new normal. Yeah, Kartik here. We can provide it separately to you, but as we have already shown to you, the channel inventory, last year, there was an issue in March that the channel inventory for AC was very high. This year, those issues are not there. The inventory is at a healthy level, and our holding also has come down. Okay. The third- That we will work on very soon. We do not want old stocks to remain in the system, so that is constantly being looked at, so that our endeavor would be to try and get as fresh as a product that is possible to the customer. Yeah. The third is in terms of the cost optimization. There is a plan of INR 200 crores, which was outlined. I think we are on track, as you mentioned. Now, in addition to it, I believe there is a fixed cost optimization plan that was being undertaken. Can you just help me understand where we are on the journey, what has happened in the last financial year, and what is the total amount you think you can actually save? An update would be helpful. I think there is not much that has moved into the P&L. That is something that we are looking at with a hawk eye, because as I said, there is only a limit to which process and CI can bring in. Therefore, all our cost elements we will have to look at and prioritize. It is something that we are looking at, ways and means by which something can be done on that. Sorry, if I just paraphrase you, what I can interpret is fixed cost savings have not materialized in FY 2026. Nothing- Substantial. substantial to report. Nothing substantial. Okay. Do you anticipate any fixed cost reduction in FY 2027? Is that a plan or you are actually focusing on the variable cost reduction as of now? No, fixed cost also, we are definitely looking at one of the things that one element would be our advertising and sales promotion. That is something we will have to look at various things, I am saying, right up to even travel policy, everything needs to be looked at. But if you were to look at it currently, it is lesser a priority because the bigger tickets are being addressed at this point of time. Got it. Last, in terms of your ad spend as well as the spending for having the promoters— Yeah. what has been the increase or a number of FY 2026 versus FY 2025? Because I remember in the Q1 or Q2 call, you mentioned that you have actually recruited some people and you want to actually have rationalizing the salary structure of promoters and their incentives. Just want to understand those two things. The numbers are going up. If you actually look at it, I think we increased our numbers by about 400 odd people at in-store. So it does not mean that 400 more outlets have come under the coverage because there are a lot of these key accounts which have got multiple floors, and therefore, if I have got X number of promoters, it does not mean that the same number of outlets are being covered. Certain outlets, depending on the footfalls and depending on the number of floors, might have multiple promoters out there. So absolute number-wise, it increased by about 400 to 500 numbers. We intend to further take it up, because we are finding that dealers. Now, there are two things. One is, if you put the resource at the right outlet, then you get the benefits out of it. And therefore, as I said, we have identified the outlets where we need to open up. We definitely want to increase the number of outlets which are covered by these in-store promoters. The challenge is to ensure that we put them in the right outlets, and we get the maximum. So all productivity and those things have to be measured, and there is a program that is being run as far as that is concerned. So we will increase the number. We are predominantly a variable pay. There is a fixed component, but we would like to remunerate our in-store promoters mainly on the variable component of it. Therefore, we just rolled out a new incentive policy for them which should simplify their process of trying to find out how much they earn. It will simplify it, but try to ensure that premiumization happens at outlets and things like that. So a lot of work is happening on the in-store promoters, increasing their numbers, incentivizing them properly, governing them properly, ensuring that their productivity is being tracked, and things like that. And last thing on the credit card tie-ups. One of the feedback which was there earlier was that our cash back or the tie-ups with the credit card has scope of improvement, and there was an action taken against it as per one of the con calls we heard. So want to understand whether that particular thing has been fully addressed, that you have actually tied up with all the credit cards so that the cash back, whatever it is at par with what our competitors give, or there is still more action to be taken. Yeah, Kartik here. Yes, those gaps in terms of being available on most of the cards are now fixed. Today, our customer offers in terms of no-cost, low-cost EMIs and the tenure is similar to the competition. Most of the cards, similar to the competition, free products are available. Yeah, but at the end of the day, it is a cost. Any cash back that is given, a portion of that is a cost to us, and therefore that is something that we have to be cautious about and how we manage that. Got it. Have you increased your ad spends per se? Just a second asking, what is the ad spends FY 2025 to 2026? We have not really increased our ad spends. It is more or less the same. We are strengthening our digital portion of it because we believe that digital is a way forward. We have a large base of our own loyal customers, and therefore, rather than going through any other route, we believe that digital is a great way to reach out to these customers, whether it be a cross-sell or upsell. Therefore, we are strengthening our digital wing to make it much more effective, and we are communicating with our customers. At the same time, we are looking at plugging any leaks that are there. All those elements of click-through rates and all those things are being looked at. We are getting some external help to help us manage that. That is something that we are doing now. In terms of the energy rating related stuff, which of our product categories actually got affected, and therefore, what is the cost escalation? Second, in terms of e-waste program, what is the kind of provision you have taken? Yeah. Energy was actually on the AC. It was effective from 1st of January, which is when the new energy rating came in. It had two impacts. One is obviously the cost went up to be able to maintain the same thing. The cost per machine did go up. Also, as a company, when the market moved to a new energy rating, we did not want to hold on to old energy rating products in the market, and therefore, we had to do a liquidation drive also. So it impacted us in two ways. One is the fact that the cost per unit has gone up, and two is temporarily, we had to ensure that we do not carry too much of the- What is the cost you can quantify. Because there has been some liquidation or discounting you have done. Any cost for the full year or for the fourth quarter on account of this? I think it was about INR 7 crores was the impact because of that. INR 7 crores for the full year. Okay. Obviously, everything came into Q4, so about INR 6 crores out of that came into Q4. Okay. That is only for ACs, right? That is only for air conditioners. Yeah. That was- That was effective 1st of January is when the new energy rating came in, and therefore, all the cost came into Q4. Thank you, sir. Ladies and gentlemen, in the interest of time, that was the last question for today. I now hand the conference over to Abhinav for any closing comments. Thank you. Thank you to the management for the call. Sandeep sir, do you want to have any closing remarks, sir? I think having this interaction, it is the first time that I am doing this interaction on behalf of IFB. Very glad to be able to answer the questions. They show a genuine interest of our investors in our business, and we are thankful to that. I hope we have given you enough confidence that home appliances is expected to do better than, and we see a buoyancy in the market, and we should get to capitalize on that. We are only glad that investors are asking us these questions and keep the customers on our toes. Thank you very much, and it has been a pleasure interacting with all of you. Thank you, sir. Thank you. Thank you. On behalf of Nirmal Bang Equities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.