Q1 2027 Subros Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Subros Limited Q1 FY27 post-results earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to the Subros Limited Q1 FY27 Post-Results 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 this conference is being recorded. I now hand the conference over to Mr. Annamalai Jayaraj from 360one Capital Market Private Limited. Thank you. Over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Subros Limited Q1 FY 2027 Post-Results 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 this conference is being recorded. I now hand the conference over to Mr. Annamalai Jayaraj from 360 ONE Capital Market Private Limited. Thank you. Over to you, sir.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note, this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Anamalai Jayaraj from 361 Capital Market Private Limited. Thank you, Anu. Over to you.

Speaker #2: Thanks, Tim. On behalf of 361 Capital Market, welcome to Subros Limited Q1 FY27 post-results conference call. From Subros Limited management, we have with us today Mr. Pramod Kumar Duggal, Executive Director and CEO.

Annamalai Jayaraj: Thanks, Dave. On behalf of 360one Capital Market, welcome to Subros Limited Q1 FY27 post-results conference call. From Subros Limited management, we have with us today Mr. Parmod Kumar Duggal, Executive Director and Chief CEO; Mr. Hemant Kumar Agarwal, Chief Financial Officer and Senior Vice President Finance; and Mr. Sukhvinder Singh Gill, Vice President Finance. I now hand over the call to Mr. Parmod Kumar Duggal for the opening remarks, to be followed by question and answer session. Over to you, sir.

Annamalai Jayaraj: Thanks, Dave. On behalf of 360 ONE Capital Market, welcome to Subros Limited Q1 FY 2027 post-results conference call. From Subros Limited management, we have with us today Mr. Parmod Kumar Duggal, Executive Director and Chief CEO, Mr. Hemant Kumar Agarwal, Chief Financial Officer and Senior Vice President Finance; and Mr. Sukhvinder Singh Gill, Vice President of Finance. I now hand over the call to Mr. Parmod Kumar Duggal for the opening remarks, to be followed by question and answer session. Over to you, sir.

Speaker #2: Mr. Hemant Kumar Agarwal, Chief Financial Officer and Senior Vice President – Finance; and Mr. Subindran Singh Gill, Vice President – Finance. I now hand over the call to Mr. Pramod Kumar Duggal for the opening remarks.

Speaker #2: This will be followed by a question and answer session. Over to you, sir.

Speaker #3: Thank you, Mr. Jayaraj. Good morning, ladies and gentlemen, and a very warm welcome to all of you on the Investor Conference Call of Subros Limited for Quarter 1 of 2026–27.

Parmod Kumar Duggal: Thank you, Mr. Jayaraj. Good morning, ladies and gentlemen, and a very warm welcome to all of you on investor conference call of Subros Limited for Q1 of 2026-27. The first quarter of FY27 has been an eventful one. While the Indian economy continued to demonstrate resilience, the global business environment has once again reminded us how quickly the external conditions can change. During the quarter, we witnessed heightened geopolitical tension in the Middle East, volatility in crude oil prices, disruption in shipping routes, fluctuation in foreign exchange, and continued uncertainty in global trade. These developments have impacted the cost, material availability, and supply chain planning across the automotive industry. Further adding to the volatility, the industry also faced a significant manpower challenge.

Parmod Kumar Duggal: Thank you, Mr. Jayaraj. Good morning, ladies and gentlemen, and a very warm welcome to all of you on investor conference call of Subros Limited for Q1 of 2026-27. The first quarter of FY 2027 has been an eventful one. While the Indian economy continued to demonstrate resilience, the global business environment has once again reminded us how quickly the external conditions can change. During the quarter, we witnessed heightened geopolitical tension in the Middle East, volatility in crude oil prices, disruption in shipping routes, fluctuation in foreign exchange, and continued uncertainty in global trade. These developments have impacted the cost, material availability, and supply chain planning across the automotive industry. Further adding to the volatility, the industry also faced a significant manpower challenge.

Speaker #3: The first quarter of FY27 has been an eventful one. While the Indian economy continued to demonstrate resilience, the global business environment has once again reminded us how quickly external conditions can change.

Speaker #3: During the quarter, we witnessed heightened geopolitical tensions in the Middle East, volatility in crude oil prices, disruption in shipping routes, fluctuations in foreign exchange, and continued uncertainty in global trade.

Speaker #3: These developments have impacted the cost, material availability, and supply chain planning across the automotive industry. Further adding to the volatility, the industry also faced a significant manpower challenge: trade elections in several regions, seasonal labor migration from Western India, and increasing wage expectations, leading to a shortage of skilled and semi-skilled manpower across the manufacturing sector.

Parmod Kumar Duggal: State election in several regions, seasonal labor migration from Western India, and increasing wage expectation leading to shortage of skilled and semi-skilled manpower across the manufacturing sector. The addition of wage increase in UP and Haryana has added people expectation across other regions, further increased employee costs, and created pressure on manpower availability. Rising labor costs remain an area that require a continued attention as we move forward. The automation is the only long-term solution to this. Despite these external headwinds, the automotive industry delivered an impressive performance during the quarter, registering approx 24% growth, with the passenger vehicle segment growing above 23% against the corresponding quarter of last year. Strong rural demand, improving consumer sentiment, and continued momentum in utility vehicle and electric mobility continued to be the robust growth driver.

Speaker #3: The addition of wage increases in UP and Haryana has raised people's expectations across other regions, further increasing employee costs and creating pressure on manpower availability.

Speaker #3: Rising labor costs remain an area that requires continued attention as we move forward. Automation is the only long-term solution to this. Despite these external headaches, the automotive industry delivered an impressive performance during the quarter, registering approximately 24% growth, with the passenger vehicle segment growing about 23%.

Speaker #3: Compared to the corresponding quarter of last year, strong rural demand, improving consumer sentiment, and continued momentum in utility vehicles and electric mobility continued to be robust growth drivers.

Speaker #3: At the same time, customer expectations continued to rise, with faster model changes, increasing localization requirements, and greater emphasis on technology, quality, and cost competitiveness.

Parmod Kumar Duggal: At the same time, customer expectation continued to rise with the faster model changes, increasing localization requirement, and greater emphasis on technology, quality, and cost competitiveness. Against this backdrop, our team at Subros responded with agility and commitment. We remain closely engaged with the customer and suppliers, strengthening the supply chain coordination, accelerated localization initiative, and maintain a sharp focus on operational excellence. We at Subros have recorded a healthy revenue growth of 17.5% during the quarter, reflecting the confidence of our customer and dedication effort of our team. While our top-line performance has been encouraging, the profitability remained under pressure. Escalation of commodity prices, industrial gases, logistic costs, manpower expenses had made an adverse impact approximately more than 1% on our EBITDA margin during the quarter.

Speaker #3: Against this backdrop, our team at Subros responded with agility and commitment. We remain closely engaged with the customer and suppliers, strengthening supply chain coordination, accelerating localization initiatives, and maintaining a sharp focus on operational excellence.

Speaker #3: We at Subros have recorded a healthy revenue growth of 17.5% during the quarter, reflecting the confidence of our customers and the dedicated efforts of our team.

Speaker #3: While our top-line performance has been encouraging, the profitability remained under pressure. Escalation of commodity prices, industrial gases, logistics costs, and manpower expenses had an adverse impact of approximately more than 1% on our EBITDA margin during the quarter.

Speaker #3: Coming to the financial performance, as we reported, the total revenue from operations was ₹1,032 crore during Q1, representing a growth of 17.52% over the corresponding quarter.

Parmod Kumar Duggal: Coming to the financial performance, as we reported, the total revenue from operation INR 1,032 crore during the Q1, represented a growth of 17.52% over a corresponding quarter. Share of business of Subros in passenger vehicle stood at 41% in passenger vehicle cars. In truck segment, 41%, and bus segment it is 16%. Despite elevated commodity price and inflationary pressure during the quarter, the company has improved the profitability through aggressive cost optimization. Although there is impact on EBITDA. EBITDA during Q1 was INR 86.99 crore, approx INR 87 crore. Profit before tax is INR 55.59 crore, while the profit after tax is INR 41.38 crore. From the strategic perspective, company continued to strengthen its presence in emerging mobility technologies. Besides from hybrid, electric and CNG vehicle thermal system, which contributes now around 25% of our total revenue and has grown 9% over last year.

Speaker #3: The share of business of Subros in the passenger vehicle segment stands at 41%, in the truck segment at 41%, and in the bus segment it is 16%.

Speaker #3: Despite elevated commodity prices and inflationary pressure during the quarter, the company has improved profitability through aggressive cost optimization. Although there is an impact on EBITDA, EBITDA during Q1 was ₹86.99 crore, approximately ₹87 crore.

Speaker #3: Profit before tax is ₹55.59 crores, while the profit after tax is ₹41.38 crores. From a strategic perspective, the company continued to strengthen its presence in emerging mobility technologies.

Speaker #3: Besides hybrid, electric, and CNG vehicle thermal systems, which now contribute around 25% of her total revenue and have grown 9% over last year.

Speaker #3: Our non-passenger vehicle diversification strategy is also yielding encouraging results now. The commercial vehicle business, which is mainly from the truck aircon side, has grown 77% during the quarter.

Parmod Kumar Duggal: Our non-passenger vehicle diversification strategy is also yielding encouraging results now. Commercial vehicle business, which is mainly from the truck Aircon side, has grown 77% during the quarter, and bus AC also has grown by 6% during the quarter. The railway business in particular continued to emerge a significant growth vertical for us. We have increased our investment in railway infrastructure and also the product availability. We will see the results in coming tenders which are planned in subsequent periods. Let me now elaborate you about the ongoing expansion project. Our Kharkhoda greenfield project is progressing well. Construction activities are almost at advanced stage of completion. The facility has started taking shape. Machine readiness is underway. We are hopeful now the SOP of this project will be in the Q3 of this financial year.

Speaker #3: Bus AC also grew by 6% during the quarter. The railway business, in particular, continued to emerge as a significant growth vertical for us.

Speaker #3: We have increased our investment in railway infrastructure, and also the product availability. We will see the results in the coming tenders, which are planned in subsequent periods.

Speaker #3: Let me now elaborate on the ongoing expansion projects. Our Karkhoda Greenfield project is progressing well. Construction activities are almost at an advanced stage of completion.

Speaker #3: The facility has started taking shape. Machine readiness is underway, and we are hopeful that now the SOP of this project will be in the third quarter of this financial year.

Speaker #3: In addition, we have initiated another greenfield project at Garchanpura, Gujarat, focused on compressor manufacturing. This facility will be supporting the growth of the EV and hybrid ecosystem, while we are also expanding the mechanical compressor for ICE engine from this facility.

Parmod Kumar Duggal: In addition, we have initiated another greenfield project at Karsanpura, Gujarat, focuses on compressor manufacturing. This facility will be supporting the growth of EV and hybrid ecosystem while we are also expanding the mechanical compressor for ICE engine from this facility. We are happy to inform that in last week only, we have signed a technology assistance agreement for local manufacturing of e-compressor between Denso Corporation, Japan, Toyota Industries Corporation, Japan, and Subros. We have updated this news to the stock exchange as well. Before I conclude, let me briefly summarize the key financial highlight of Q1. Revenue from operations showed at INR 1,032 crore, registering a growth of 17.52%. EBITDA of approx INR 87 crore with a marginal decline of 0.82%, primarily reflecting the impact of cost escalation.

Speaker #3: We are happy to inform you that, just last week, we signed a technology assistance agreement for local manufacturing of e-compressors between Denso Corporation, Japan; Toyota Industries Corporation, Japan; and Subros.

Speaker #3: We have updated this news to the stock exchange as well. Before I conclude, let me briefly summarize the key financial highlights of Q1. Revenue from operations stood at ₹1,032 crores, registering a growth of 17.52%.

Speaker #3: EBITDA is approximately ₹87 crore, with a marginal decline of 0.82%, primarily reflecting the impact of cost escalation. Profit before tax is ₹55.59 crore, showing a growth of 2.11%.

Parmod Kumar Duggal: Profit before tax is INR 55.59 crore with a growth of 2.11%. Profit after tax is INR 41.38 crore, recording a growth of 1.76% during that quarter as compared to the previous corresponding period. While the operating environment continued to remain challenging, particularly due to geopolitical uncertainties resulting into cost pressure, the strong growth in top line provides us the ability to absorb these temporary pressures. As long as we are growing our revenue and maintain operational discipline, we believe this situation will be manageable until unless there are certain extraordinary events occur. Thank you very much. Now we are happy to take questions.

Speaker #3: And profit after tax is ₹41.38 crores, registering a growth of 1.76% during the quarter, as compared to the previous corresponding period. While the operating environment continued to remain challenging, particularly due to geopolitical uncertainties resulting in cost pressures, the strong growth in top-line provides us the ability to absorb these temporary pressures. As long as we are growing our revenue and maintain operational discipline, we believe this situation will be manageable unless certain extraordinary events occur.

Speaker #3: Thank you very much, and now we are happy to take questions.

Speaker #1: 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 touch-tone telephone.

Operator: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 1 on their touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star 2. Participants are requested to use handset while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Sukrit D. Patil with Eyesight Fintrade Private Limited. Please go ahead.

Speaker #1: If you wish to withdraw yourself from the question queue, you may press star two. Participants are requested to use a handset while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Sukrit D. Patel with Eyeside Fintrade Private Limited.

Speaker #1: Please go ahead.

Speaker #3: Good morning to the team. I have two questions. The first question to Mr. Duggal is: I just want to understand the forward guidance from an operations point of view.

Sukrit D. Patil: Good morning to the team. I have two questions. The first question to Mr. Duggal is, just want to understand the forward guidance from operations point of view. What are the key priorities you are driving in terms of manufacturing efficiency, supply chain strength, and compliance? What risks do you see in global sourcing or industry dynamics, and how are you preparing to mitigate them? Just want to understand forward guidance on this. Thank you. That's my first question. I will ask the second question after this.

Speaker #3: What are the key priorities you are driving in terms of manufacturing efficiency, supply chain strength, and compliance? What risks do you see in global sourcing or industry dynamics, and how are you preparing to mitigate them?

Speaker #3: I just want to understand the forward guidance on this. Thank you. That's my first question. I'll ask the second question after this.

Speaker #2: Okay, thank you so much. It's an interesting question. So, there are three key drivers within the organization now. One, to manage the disruptions, because these disruptions will now be the new normal.

Parmod Kumar Duggal: Okay. Thank you so much. It's interesting question. There are three key drivers within the organization now. One, to manage the disruptions, because these disruptions will be now new normal. We need to prepare ourselves from three aspects. One, our plant has to be more automated so that the dependency on human side should come down, and there has to be a balance between man and machine efforts. Point one. Point two is to push for localization so that we are insulated from global disruptions. That's how the localization push, which we did last three years, has started resulting, at least not significantly becoming a risk element for them. The third element, which is more on the global side, which is contributed through the foreign exchange or the raw material availability.

Speaker #2: So, we need to prepare ourselves from three aspects. One, our plant has to be more automated so that the dependency on the human side should come down.

Speaker #2: And there has to be a balance between man and machine efforts—point one. Point two is to push for localization so that we are insulated from global disruptions.

Speaker #2: And that's how the localization push, which we did over the last three years, has started resulting—at least not significantly—becoming a risk element for them.

Speaker #2: The third element, which is more on the global side and is influenced by foreign exchange or raw material availability—in that area as well, we are working aggressively along with the collaborator as well as the OEM.

Parmod Kumar Duggal: In that area also, we are working aggressively along with the collaborator as well as the OEM to start developing raw material locally, so that not only are de-risking from the material availability point of view, also there would be substantial saving on the foreign exchange spend, which can de-risk us from the economic condition variation. Hope I am able to answer that.

Speaker #2: To start developing raw material locally, so that not only is there de-risking from the material availability point of view, but also there would be substantial savings on the foreign exchange spend, which can de-risk us from economic condition variations.

Speaker #2: I hope I am able to answer that.

Speaker #3: Yeah, thank you. My second question to Mr. Agarwal is: from a financial point of view, what key risks or challenges do you anticipate in the coming quarters?

Sukrit D. Patil: Yeah. Thank you. My second question to Mr. Agarwal is, from a financial point of view, what key risks or challenges do you anticipate in the coming quarters, and what specific measures are being taken to manage margin, cash flow, and strengthen the balance sheet, especially in areas like raw material cost volatility, receivables, and compliance? Thank you.

Speaker #3: And what specific measures are being taken to manage margins, cash flow, and strengthen the balance sheet, especially in areas like raw material cost volatility, receivables, and, again, compliance?

Speaker #3: Thank you.

Speaker #2: Okay, I'll answer that also. From a financial prudence point of view, there are three actions which are very important for us. While this disruption or volatility in the geopolitical subject is a temporary phenomenon, our investment for building up capacity and engaging with the customer for long-term business engagement is ongoing.

Parmod Kumar Duggal: Okay, I'll answer that also. From financial prudence point of view, there are three actions which are very important for us. While this disruption or volatility in the geopolitical subject is a temporary phenomenon, our investment for building up capacity, engaging with the customer for long-term business engagement is ongoing. To insulate the margin side on foreign exchange, we have consistent hedging policy, which is not significantly impacting us on day-to-day volatility. Our cash flows are intact. Whatever internal accruals we are doing, we are reinvesting into the business, except for the strategic project where we have already taken approvals for long-term funding for Kharkhoda as well as Karsanpura projects, so that once these projects will be operational, the cash flow to support the repayment of loans, et cetera, can be worked out.

Speaker #2: To insulate the margin side, on foreign exchange we have a consistent hedging policy which is not significantly impacting us on day-to-day volatility. Our cash flows are intact. Whatever internal accruals we are generating, we are reinvesting into the business, except for the strategic projects where we have already taken approvals for long-term funding for the Karkhoda as well as the Garsonpura projects, so that once these projects are operational, the cash flow to support the repayment of loans, etc., can be worked out.

Speaker #2: On the receivable side, there is no challenge because all our customers—there is no threat to the cash flow availability, and we are getting all our payments as per the agreed terms.

Parmod Kumar Duggal: On receivable side, there is no challenge because all our customers, there is no threat on the cash flow availability, and we are getting all our payments as per the agreed term.

Speaker #3: Thank you. And best wishes.

Sukrit D. Patil: Thank you, and best wishes.

Speaker #2: Thank you.

Parmod Kumar Duggal: Thank you.

Speaker #1: Thank you. Participants who wish to ask a question may press star, then one. The next question comes from the line of Mayur Pakeria with Wealth Managers.

Operator: Thank you. Participants who wish to ask a question may press star and one. The next question comes from the line of Mayur Parkeria with Wealth Managers. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Good morning, sir. Thank you for taking my question. Sir, with this, you know this quarter marks the fourth quarter in a row where our margins have not kept up to what is normally expected. While we understand that there are a lot of global situations which are panning out, when we look at many companies otherwise around, it has not been as severe as what particularly Subros has gone through.

Mayur Parkeria: Good morning, sir. Thank you for taking my question.

Parmod Kumar Duggal: Good morning.

Mayur Parkeria: Sir, this Q4 marks the fourth quarter in a row where our margins have not kept up to what normally was expected. While we understand that there are a lot of global situations which are panning out, when we look at many companies otherwise around, that has not been as severe as what particularly Subros has gone through, and surely because of the situation in Haryana and north, the labor cost which we see across sector and across companies impacting. Couple of things coming in for us.

Speaker #3: And surely, because of the situation in Haryana and the North, the labor cost, which we see across sectors and across companies, is impacting. So, a couple of things coming in for us.

Speaker #3: I just wanted to understand one more detail if it is possible that while global and certain external situations have been not in our favor, is it that the composition, the fact that aircon have also started during the same period, I just wanted to understand that is it possible that the segment growth which we are seeing in that, that has also the mix has an impact on the margins.

Mayur Parkeria: Just wanted to understand one more detail, if it is possible, that while global and certain external situations have been not in our favor, is it that the composition, the fact that Aircon have also started during the same period, just wanted to understand that is it possible that the segment growth which we are seeing in that, the mix has an impact on the margins, which is slightly more structural in nature as we go ahead. Does that have also a role over here?

Speaker #3: Which is slightly more structural in nature as we go ahead. Does that also have a role over here?

Speaker #2: I would say partially, but as you said, there are four elements which have impacted the margin, and in the last three to four quarters we have seen only upside.

Parmod Kumar Duggal: I will say partially, as you said, there are four elements which has impacted on the margin, and last three to four quarters, we have seen the upside only. If, for example, we have indexation formula with all of our customer for commodity and foreign exchange on a quarter lag. Now, if it is a quarter lag and the trends are up and down in a mix, that means within two to three quarter, the impact will be nullified. Last three quarters, the trends are only on the upside. Whatever recovery we did in subsequent quarter related to previous quarter, the impact of increase is much higher than that recovery. That's why it is not reflected in the ratios which we could see on material and other ratios.

Speaker #2: And if, for example, we have an indexation formula with all our customers for commodity and foreign exchange on a quarter life. So now, if it is a quarter lag and the trends are up and down in a mix, that means within two to three quarters, the impact will be nullified.

Speaker #2: But in the last three quarters, the trends are only on the upside. So whatever recovery we did in the subsequent quarter related to the previous quarter, the impact of the increase is much higher than that recovery.

Speaker #2: That's why it is not reflected in the ratios, which we could see on material and other ratios. On manpower cost, this change was sudden, and this change reflected in quarter one of this year only, when Haryana first announced an increase of wage of roughly 30 percent, 32 percent, and followed by UP matching that with around 26, 28 percent.

Parmod Kumar Duggal: On manpower cost, this change was sudden, this change reflected in Q1 of this year only when Haryana first announced increase of wage, roughly 30%, 32%, followed by UP matched that with around 26%, 28%. This was extraordinary impact, this was not budgeted for or not part of any planning ever, because this was more driven from a political side. Still now we are working very aggressively to counter this situation, working on productivity enhancement, cycle time improvement, also going for automation in a gradual way, so that impact on cash flow as well as investment is not extraordinarily high.

Speaker #2: This was an extraordinary impact, and this was not budgeted for or part of any planning ever, because this was more driven from a political side.

Speaker #2: So, still now, we are working very aggressively to counter these situations: working on productivity enhancement, cycle time improvement, and also going for automation in a gradual way, so that the impact on cash flow as well as investment is not extraordinarily high.

Speaker #2: But addressing your second part, in the aircon thermal business, there would be an impact from the model mix, there would be an impact from the segment mix, and also because the raw material for thermal is mostly coming from the import cycle.

Parmod Kumar Duggal: Addressing your second part in Aircon thermal business, there would be impact of the model mix, there would be impact of segment mix, and also because the raw material for thermal is mostly coming from the import cycle, that would be impacting if the geopolitical issues are not settled or they are becoming more risky to the business.

Speaker #2: So that would be impacting if the geopolitical issues are not settled, or if they become more risky to the business.

Speaker #3: Right, right. Sir, I have one request, and you know, while again reiterating and clearly understanding there are things which are there outside our, you know, area. But from an internal perspective, as far as communication and guidance, is there— we have been maintaining a double-digit margin for quite some time.

Mayur Parkeria: Right. Sir, I have one request and while again reiterating and clearly understand there are things which are there outside our thing. From an internal perspective as far as communication and guiding is there, we have been maintaining of a double-digit margin from quite some time. Can we clearly say that is something which is still off the table at least for next 12 months, at least that much can we say? What happens is the expectation continues to remain high because as you rightly said, while there's a trending market as far as commodity pressures and other things are going up, the expectation is that we would recover many of those in the next quarter or post that quarter. It continues to lag the expectation for quite some time now.

Speaker #3: Can we clearly say that that is something which is still off the table, at least for the next 12 months? At least that much can we say, because what happens is the expectation continues to remain high. Because as you rightly said, while there's a trending market as far as commodity pressures and other things are going up, the expectation is that we would recover many of those in the next quarter or, you know, post that quarter.

Speaker #3: But it continues to lag the expectation for quite some time now. And, you know, it's been almost two, two and a half years now that, you know, our 12 percent aspirational margins continue to get pushed out.

Mayur Parkeria: It's been almost two and a half years now that our 12% aspiration margins continues to get pushed out. I understand you had mentioned it is a medium to long term, but can we say that outlook it is pushed out by another 12 months so that the expectations are quite reasonable in that? Do we believe that the worst is behind us and now we should see improvement?

Speaker #3: I understand you had mentioned it is a medium- to long-term outlook, but can we say that that outlook is still the same, only pushed out by another 12 months, so that the expectations are quite reasonable in that?

Speaker #3: Or do we believe that the bottom—the worst—is behind us, and now we should see improvement?

Speaker #2: No, I'll say with the current circumstances and the conditions we have as of now, this will take time. If the situation recovers, politically still it will take time, between three to six months, to streamline the whole ecosystem.

Parmod Kumar Duggal: No, I'll say with the current circumstances and the condition what we have as of now, this will take time. If the situation recover politically, still it will take time between 3 to 6 months to streamline the whole ecosystem, and the supply chain disruptions get eased out. Of course, we are not seeing in a short term, moving to the double digit, whatever aspiration was available, it is slightly pushed out for further period.

Speaker #2: And as supplier supply chain disruptions get eased out, of course, we are not seeing, in the short term, moving to the double-digit—whatever aspiration was available.

Speaker #2: It is slightly pushed out for the period.

Speaker #3: Sir, just a small last clarification from my side. When you mentioned the aspect of increase in wages on the Haryana side and, on the other side, the UP side—and your commentary, if I'm reading it right—does it also mean that the cost indexation, the understanding we have, that this particular element of such a sharp rise is not going to be recovered anytime soon because this was not an even base? And this is going to be more structural, and now this has to be recovered only by way of our productivity and internal measures?

Mayur Parkeria: Sir, just one last clarification from my side, sir. When you mentioned the aspect of increase in wages on the Haryana and other side, UP side, and your commentary, if I'm reading it right, does it also mean that the cost indexation understanding which we have, this particular element of such a sharp rise is not getting recovered anytime soon because this was not an even base and this is going to be more structural and now this has to be recovered only by way of our productivity and internal measures. Does that mean that it will not be getting reflected in the pricing for us?

Speaker #3: Does that mean that it that does that mean that it will not be getting reflected in the pricing for us?

Speaker #2: No, it will be because our discussion with all our customers is to compensate for this sharp increase, because the business cannot absorb this 25% to 35% wage increase in the short term.

Parmod Kumar Duggal: No, it will be because our discussion with all our customer to compensate this sharp increase because business cannot absorb this 25% to 35% of wage increase in a short term. Our discussion with our customer to compensate that is ongoing, and there are certain positive signals to settle this very quickly.

Speaker #2: So, our discussion with our customer to compensate for that is ongoing, and there are certain positive signals to settle this very quickly.

Speaker #3: Right. Okay, sir. Thank you. And wish you all the best in income.

Mayur Parkeria: Okay, sir. Thank you and wish you all the best, and I'll come back with the question.

Speaker #2: Thank you.

Parmod Kumar Duggal: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question comes from the line of Mir Vorah with Aquarius Securities.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question comes from the line of Mir Vora with Aquarius Securities. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Yeah, so thanks for taking my question. My question is basically on our overall revenue growth. If we look at the last four quarters, and compare production for the PV industry, or production for Maruti, which is one of our bigger customers, we have been slightly underperforming on that front.

Mir Vora: Yeah. Thanks for taking my question. Sir, my question basically was on our overall revenue growth if we see. In the last four quarters, if we compare production for the PV industry or production for Maruti, which is one of our bigger customer, we have been slightly underperforming on that front here. Can you just throw some more color whether it is more of, because the product mix changing or is it that there is slight shift into the market share here? Sir, just some color on that.

Mihir Vora: Yeah. Thanks for taking my question. Sir, my question basically was on our overall revenue growth if we see. In the last four quarters, if we compare production for the PV industry or production for Maruti, which is one of our bigger customer, we have been slightly underperforming on that front here. Can you just throw some more color whether it is more of, because the product mix changing or is it that there is slight shift into the market share here? Sir, just some color on that.

Speaker #3: So can you just throw some more color on whether it is more, you know, because the product mix is changing, or is it that there is a slight shift in the market share here?

Speaker #3: So, just some color on that.

Speaker #2: So, there are two distinct points which we need to understand. When Maruti announced their results, in terms of quantity or the revenue, it is on the sales basis.

Parmod Kumar Duggal: There are two distinct points which we need to understand. When Maruti announced their results in terms of quantity or the revenue, it is on the sales basis. Whereas what we respond is on the production basis of our customer. If you follow SIAM data on the production basis between April to June, the overall growth is around 16.8% and from them only, the reason is on production basis, in June, there was 8 days of shutdown by our largest customer, Maruti. That is on the last week of June for the annual maintenance. We always track on production basis, KPI, and also, there would be slightly impact of the model mix, model which we are servicing to the customer and model which our competition is servicing to the customer. There would be a slight impact of that as well.

Speaker #2: Whereas what we respond is on the production basis of our customer. If you follow SIAM data on the production basis, between April to June, the overall growth is around 16.8%.

Speaker #2: And the reason is, on a production basis in June, there were eight days of shutdown by our largest customer, Maruti. That was in the last week of June for their annual maintenance.

Speaker #2: So, we always track on a production basis KPI, and also there would be a slight impact of the model mix—the model which we are servicing to the customer and the model which our competition is servicing to the customer.

Speaker #2: There would be a slight impact from that as well. But if we see, the dealer inventory during the quarter has also come down because of the higher retail sales or wholesale sales that have happened in the market.

Parmod Kumar Duggal: If we see, the dealer inventory during the quarter also has come down because of the higher retail sale or wholesale sale, which has happened in the market. This whole impact is a cumulative, say reflection of all these key drivers.

Speaker #2: So this whole impact is accumulative, a reflection of all these key drivers.

Mir Vora: Right. Sir, when I see the SIAM data itself, the production mix for total PVs, that roughly shows a year-on-year increase of around 20%. Maybe I'll check my data, that is which is in front of me, that is the reason I was asking this. That said, sir, in terms of content, what would be the sort of difference between a small car and an SUV right now in the current circumstances?

Mihir Vora: Right. Sir, when I see the SIAM data itself, the production mix for total PVs, that roughly shows a year-on-year increase of around 20%. Maybe I'll check my data, that is which is in front of me, that is the reason I was asking this. That said, sir, in terms of content, what would be the sort of difference between a small car and an SUV right now in the current circumstances?

Speaker #3: Right. Sir, but when I see the SIAM data itself, the production mix for total PVs, so that roughly shows a year on year increase of around 20 percent.

Speaker #3: Maybe I'll check my data, but that is what is in front of me. So that is the reason I was asking this. But that said, sir, in terms of content, what would be the sort of difference between a small car and an SUV right now, in the current circumstances?

Parmod Kumar Duggal: Maybe between 8% to 10%.

Speaker #2: Maybe between 8 to 10 percent.

Speaker #3: Okay. Okay, sir. Got it. Secondly, on the segment-wise revenue mix which you give every quarter, can you share that?

Mir Vora: Okay. Okay, sir. Got it. Sir, secondly, it's on the segment-wise revenue mix, which you give every quarter. Can you share that?

Mihir Vora: Okay. Okay, sir. Got it. Sir, secondly, it's on the segment-wise revenue mix, which you give every quarter. Can you share that?

Speaker #2: Yeah, sure. I will do that. So, overall, out of a total of ₹1,032 crores, ₹695 crores is coming from the AC products which we are supplying to Maruti.

Parmod Kumar Duggal: Yeah, sure. I will do that. Over a total of 1,032 crores, 695 crores is coming from the AC products which we are supplying to Maruti. ECM products is around 135 crores and 200 crores plus is for other segment, which is, other than Maruti, that is Mahindra, Renault, and all others. This is on overall revenue split. If you talk about the segment part, passenger vehicle has contributed roughly 930 crores, and 100 crores is coming from other segments, which include buses of 12 crores, trucks of 75 crores, and rest is to other segments.

Speaker #2: ECM products are around ₹135 crores. And ₹200 crores plus is for the other segment, which is other than Maruti—that is, Mahindra, Renault, and all others.

Speaker #2: This is on overall revenue split. But if you talk about the segment part, passenger vehicle has contributed roughly ₹930 crore. And ₹100 crore is coming from other segments, which include buses at ₹12 crore, trucks at ₹75 crore, and the rest is other segments.

Speaker #3: All right. Okay. Okay, sir. So I think that's all from my side. I'll fall back in. Thank you.

Mir Vora: All right. Okay. Okay, sir. I think that's all from my side. I'll follow back with you. Thank you.

Mihir Vora: All right. Okay. Okay, sir. I think that's all from my side. I'll follow back with you. Thank you.

Speaker #2: Thank you.

Parmod Kumar Duggal: Thank you.

Speaker #1: Thank you. A reminder to all participants that you may press star one to ask a question. The next question comes from the line of Anamala Jayaraj with 361 Capital.

Operator: Thank you. A reminder to all participants that you may press star one to ask a question. The next question comes from the line of Annamalai Jayaraj, with 360one Capital. Please go ahead.

Operator: Thank you. A reminder to all participants that you may press star one to ask a question. The next question comes from the line of Annamalai Jayaraj, with 360 ONE Capital. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Yeah, this was a concern too. I have another question, sir. So now Maruti is increasing the capacity. They have already gone for two new plants.

Annamalai Jayaraj: Yeah. Before somebody comes on queue, I have one or two questions, sir. Now Maruti is restricting the capacity, already they have gone for 2 new plants. One more, they are coming up, I think, in Q4. Whatever our capacity coming up, we'll be able to meet those Maruti requirements, sir?

Speaker #3: And one more is coming up, I think, in Q4. So, whatever our new capacity coming up, we'll be able to meet those Maruti requirements.

Speaker #2: So Mr. Jayaraj, two aspects to that. One is Maruti capacity increase—one plant coming up or already there in Sonipat, which has an overall plan of four lines, but right now we are with two lines.

Parmod Kumar Duggal: Mr. Jairaj, two aspects to that. One is, Maruti capacity increase, one plant coming up or already there in Sonipat, which has an overall plan of four lines, but right now we are with two lines. To match this capacity requirement in north side, especially in Sonipat, we are coming up with a new plant at Kharkhoda, where we are starting with around 4.75 lakhs of capacity as phase I, and then another 4.75 means a total capacity of around 9.5 lakhs in phase I and phase II, to match the requirement of Maruti Suzuki in the north side. In the west side, another announcement of Maruti to come up with a new plant of 1 million somewhere around Sanand area.

Speaker #2: So, to match this capacity requirement in the north side, especially in Sonepat, we are coming up with a new plant at Karkoda, where we are starting with around 475,000 of capacity as phase one.

Speaker #2: And then another 4.75, so total capacity of around 9.5 lakhs in phase one and phase two, to match the requirement of Maruti Suzuki in the north side.

Speaker #2: On the west side, there was another announcement from Maruti to come up with a new plant of one million, somewhere in or around the Sanand area.

Speaker #2: So we are also in discussion to finalize the timing of the SOP and the line installation in that area, and making our plan to set up one more, another plant on the west side.

Parmod Kumar Duggal: We are also in discussion, to finalize the timing of the SOP and the line installation in that area and making our plan to set up one more another plant in west side. This is at very initial stage, matching it with the customer plan and completing the feasibility, and finally taking the necessary approvals. We will let you know as and when this is fixed up.

Speaker #2: But this is at a very initial stage. Matching it with the customer plan and completing the feasibility, and finally taking the necessary approvals—we will let you know as and when this is fixed up.

Speaker #3: Okay, very helpful, sir. On the railways, of course, you briefly touched upon it. So can you just explain a bit more? I mean, what is our current order, and how is it likely to shape up going forward, sir, in the railway business?

Annamalai Jayaraj: Okay. Very helpful, sir. The railways, of course, you briefly touched upon. Can you just explain a bit more on what is our current order and how it is likely to shape up going forward, sir, railway business?

Speaker #2: So, railway business is our key focus as of now. We have been gradually increasing our footprint in railways. Last year, we completed a large order of around ₹32 crore.

Parmod Kumar Duggal: Railway business is our key focus as of now. We have gradually increasing our footprint in railways. Last year, we completed a large order of around INR 32 crores. This year, we already have one firm order of around INR 31 crores, and in addition, INR 50 crores of AMC business, which will spread into three years, four years' time. A few large orders are in pipeline right now. Our guidance on railway segment to cross INR 100 crore in next three years' time, still we are pushing very aggressively on that because this segment, government is also laying down a lot of investment on modernizing the railways and also to making Aircon coaches, Aircon driver cabin, et cetera. We are very aggressively pursuing this sector.

Speaker #2: This year we already have one firm order of around ₹31 crore. And in addition, ₹50 crore of AMC business, which will be spread over three to four years.

Speaker #2: A few large orders are in the pipeline right now. So, our guidance on the railway segment to cross ₹100 crore in the next three years—still, we are pushing very aggressively on that because, in this segment, the government is also laying down a lot of investment on modernizing the railways.

Speaker #2: And also to making air-con coaches, air-con driver cabins, etc. So we are very aggressively pursuing this segment.

Speaker #3: Got it. Okay, sir. Thank you, sir. Very helpful. You can go to the Q operator.

Annamalai Jayaraj: Okay, sir. Thanks, sir. Very helpful.

Parmod Kumar Duggal: Thank you.

Annamalai Jayaraj: You can go to the queue, operator.

Speaker #1: Yes, sir. The next question comes from the line of Mayur Parkeria with Wealth Managers. Please go ahead.

Operator: Yes, sir. The next question comes from the line of Mayur Parkeria with Wealth Managers. Please go ahead.

Mayur Parkeria: Thank you for taking my question. Actually, last time I missed asking this. Sir, this recent, obviously, it was in the pipeline, the electric compressor technical assistance, which we had just signed. I just wanted to understand and maybe what kind of timeline we are looking for the actual commercial operations to start first. What would be the initial import content which will be there for this? Or let's say reverse, what would be the localization content over here? Second. Thirdly, what would be the broad expectation for this commercial operations to stabilize and start giving us company level or higher level of margins as we anticipate the three things on this side, if you can.

Speaker #3: Thank you for taking my question. Actually, last time I missed asking this. So, this recent—obviously, it was in the pipeline—the electric compressor technical assistance which we had just signed.

Speaker #3: I just wanted to understand, and maybe, you know, what kind of timeline we are looking at for the actual commercial operations to start first. What would be the initial import content that will be there for this?

Speaker #3: Or let's say the reverse, what would be the localization content over here? Second and thirdly, what is the what would be the broad expectation for this commercial operations to stabilize and start giving us, you know, company level or higher level of margins as we as we anticipate?

Speaker #3: The three things on this side, if you can?

Speaker #2: Sure. Regarding the electric compressor business, we received an order from our largest customer, Maruti, for three variants. This will have a phased SOP. The first SOP will be in November 2027.

Parmod Kumar Duggal: Sure. Electric compressor business, what we got from our largest customer, Maruti, for three variants. This would be SOP in phase-wise. First SOP would be in November 2027, subsequently February 2028, and the Q1 of 2028 subsequently. As we did mention before also that we are going in three phases for this project. First phase would be where we are getting the CKD parts and doing the assembly in India because it's a very highly technological product. In phase one, our import content would be around 80% to 85%. Second phase, when we'll start localizing, this will reduce to around 55%. The final phase, what we'll be establishing would be around 70% of localization. This is our broad plan.

Speaker #2: Then subsequently, February 28, and then the first quarter of '28 subsequently. So, as we did mention before also, we are going in three phases for this project.

Speaker #2: First phase would be where we are getting the CKD parts and doing the assembly in India because it's a very highly technological product. And in phase one, we'll go almost in first phase, our import content would be around 80, 85 percent.

Speaker #2: And in the second phase, when we'll start localizing, this will reduce to around 55. And in the final phase, what we'll be establishing would be around 70 percent of localization.

Speaker #2: So this is our broad plan. We have our engagement with customers to increase the utilization of this capacity over the next three years' time, so that the product will be stable for the India market.

Parmod Kumar Duggal: We have our engagement with customer to increase the utilization of this capacity by next three years' time, so that the product will be stable for India market, and we'll be able to recover all our investment from this project substantially in next three to four years' time.

Speaker #2: And we'll be able to recover all our investment from this project substantially in the next three to four years' time.

Speaker #3: Okay. So sir, will it be fair to say that FY 29 will be the year from where we will see even this project to come to the current company level margins of, you know, close to whatever they are.

Mayur Parkeria: Okay. Sir, will it be fair to say that FY29 will be the year from where we will see even this project to come to the current company level margins of close to whatever they are. Obviously, they might also increase after the current situation settles off, around between 9% to 10%. Will it be fair to say that FY29, or you believe it is before that?

Speaker #3: Obviously, they might also increase after the current situation stabilizes. So, you know, around 9 to 10 percent—would it be fair to say that’s for FY29, or do you believe it will happen before that?

Speaker #2: No, it would be between 28 and 29.

Parmod Kumar Duggal: No, it would be between 2028, 2029.

Speaker #3: Between 28. Okay, sir. Thank you, sir. Thank you for taking that. Thank you.

Mayur Parkeria: Between 2028. Okay, sir. Thank you, sir. Thank you for taking my question.

Speaker #2: Thank you.

Parmod Kumar Duggal: Thank you.

Speaker #1: Thank you. Participants, if you wish to ask a question, you may press star and one. Thank you. As there are no further questions from the participants—

Operator: Thank you. Participants, if you wish to ask a question, you may press star and one. Thank you. There are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.

Speaker #1: I would now like to hand the conference over to management for closing comments.

Speaker #2: So thank you once again for showing confidence.

Parmod Kumar Duggal: thank you once again, showing confidence in Subros.

Operator: Sorry to interrupt, sir. There's actually a question. It's from the line of Deepak Ajmera with Ajmera Group. Please go ahead.

Speaker #1: Sorry to interrupt, sir. There's actually a question. It's on the line of Deepak Ajmera with IG India. Please go ahead.

Speaker #2: Okay.

Parmod Kumar Duggal: Okay.

Speaker #3: Hello. Am I audible?

Deepak Ajmera: Hello, am I audible?

Speaker #2: Yes, please.

Parmod Kumar Duggal: Yes, please.

Speaker #3: Government has mandated that the drug requires cabin AC. So, what's the growth over there? And I would like to know how much growth we will be projecting in the future?

Deepak Ajmera: Government has mandated the truck require cabin AC. What's the growth over there, and would like to know how much growth in future we will be projecting?

Speaker #2: So truck AC mandate has happened on I think specifically June 8 of 25, 26. And after that, it is all end to end three category of trucks have started using mandatory air con.

Parmod Kumar Duggal: Truck AC mandate has happened on, I think specifically 8 June 2025, 2026. After that it is all N2, N3 category of trucks have started using mandatory air-con. If you follow our result last year, 2025, 2026, the total revenue from this segment was roughly INR 260 crore. As the growth of truck segment or CV segment, if we take a normal growth of 8% to 10% in next three times, this segment definitely will contribute substantially to our overall revenue pie. Our first target is to reach to INR 300 crore, which is likely to happen in this year itself, then to take this to INR 400 crore, INR 450 crore in next two to three years.

Speaker #2: If you follow our results, last year '25-'26, the total revenue from this segment was roughly ₹260 crore. And as the growth of the truck segment or CV segment—if we take a normal growth of 8 to 10 percent in the next three years—this segment definitely will contribute substantially to our overall revenue pie.

Speaker #2: Our first target is to reach ₹300 crore, which is likely to happen in this year itself. And then, to take this to ₹400–450 crore in the next two to three years' time.

Speaker #3: And what is our revenue guidance, if you can just direct it?

Deepak Ajmera: What is our revenue guidance, if you can just highlight it?

Speaker #2: What? This segment?

Parmod Kumar Duggal: For this segment?

Speaker #3: What's our revenue guidance for the next year?

Deepak Ajmera: What's your revenue guidance for the next year?

Speaker #2: And that's what I said. Approximately ₹300 crore we will go in this year only. In 2026-27, around ₹400-450 crore in the next two to three years' time.

Parmod Kumar Duggal: That's what I said. INR 300 crore approx, we will go in this year only, 2026, 2027, and INR 400 to 450 crore in next two to three years.

Speaker #3: Yeah. I'm, I'm, I'm, I'm, I'm asking on the company-level guidance. I mean.

Deepak Ajmera: Yeah. I'm asking on the company level guidance.

Parmod Kumar Duggal: No, that would be difficult to spell out any number as of now in the current geopolitical subject. We'll be aligning to the market growth. Whatever projection industry is putting up for overall industry growth, earlier it was in very early single digit, now I think it would be in moderate single digit, we'll be following the industry growth.

Speaker #2: No, that would be difficult to spell out any number as of now in the current geopolitical context. So, we'll be aligning to the market growth.

Speaker #2: Whatever projection the industry is putting up for overall industry growth—earlier, it was in very early single digits. But now, I think it would be in moderate single digits.

Speaker #2: So, we'll be following the industry growth.

Speaker #3: Yeah. And secondly, which are the other companies that they compete with on cabin AC in the commercial vehicle segment?

Deepak Ajmera: Yeah. Secondly, which are other companies to whom they compete on cabin AC over the commercial vehicle segment?

Speaker #2: In commercial vehicle?

Parmod Kumar Duggal: In commercial vehicle?

Speaker #3: Yeah.

Deepak Ajmera: Yeah.

Speaker #2: There are companies like Mahle, Sanden, Air International—there are so many.

Parmod Kumar Duggal: There are companies like Mahle, Sanden, Air International. There are so many.

Speaker #3: Okay. And how much could be, let's say, the total addressable market in India for cabin AC for TVs?

Deepak Ajmera: Okay. How much could be, let's say, total addressable market in India for cabin AC for CVs?

Speaker #2: Right now, our share of business is around 41 percent. As I said, we clocked around ₹260 crore last year. So if you extrapolate, that would be around a ₹600–700 crore market as of now.

Parmod Kumar Duggal: Right now our share of business is around 41%. As I said, we clocked around INR 260 crore last year. If you extrapolate, that would be around INR 600, INR 700 crore market as of now. Going forward, CV segment growth, I think it would be in the range of INR 800 crores approximately.

Speaker #2: And going forward, CV segment growth, I think, would be in the range of ₹800 crore approximately.

Speaker #3: Got it. So, we are, let's say, likely to grow in line with the market.

Deepak Ajmera: Got it. We are, let's say, likely to grow in line with the market.

Speaker #2: Yes, of course.

Parmod Kumar Duggal: Yes, of course.

Speaker #3: Okay. Thank you.

Deepak Ajmera: Okay. Thank you.

Speaker #1: Thank you, sir. Yes, sir. You can go ahead with the closing. There are no further questions in the queue.

Operator: Thank you, sir. Yes, sir. You can go ahead with the closing. There are no further questions in the queue.

Speaker #2: Okay. Thank you so much. Thank you so much for showing confidence in Subros. As we have been constantly mentioning about our alignment with the industry, not only limited to passenger vehicles but also to bus air conditioning, EV buses, trucks, and railways. These are the segments where we want to grow and establish ourselves as market leaders.

Parmod Kumar Duggal: Okay. Thank you so much. Thank you so much for showing the confidence in Subros. As we have been constantly mentioning about our alignment with the industry, not only limited to passenger vehicle, but also to bus air con, EV buses, trucks, railways. These are the segments where we want to grow and establish ourself as a market leader. These disruptions are short-term. We are not sure the end time of this, but of course, whenever the market will revive back to its new normal, the things will be much more productive for us because our efforts are ongoing. We are not stopping any effort in terms of investment, in terms of automation, in terms of productivity improvement. Whatever is required to keep the business sustained for long-term, we are proceeding with that.

Speaker #2: These recessions are short-term. We are not sure of the end time for this. But of course, whenever the market revives back to its new normal, things will be much more productive for us because our efforts are ongoing.

Speaker #2: We are not stopping any effort in terms of investment, in terms of automation, or in terms of productivity improvement. Whatever is required to keep the business sustained for the long term, we are proceeding with that.

Speaker #2: And hopefully, when things are normal, you will start seeing the results in a short term on these sections. Thank you so much.

Parmod Kumar Duggal: Hopefully, when things will be normal, you will start seeing the results in the short-term on these sections. Thank you so much.

Speaker #1: Thank you, sir. On behalf of 361 Capital Markets Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you, sir. On behalf of 360one Capital Market Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you, sir. On behalf of 360 ONE Capital Market Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Speaker #1: Thank you.

Speaker #2: Thank you.

Deepak Ajmera: Thank you.

Parmod Kumar Duggal: Thank you.

Deepak Ajmera: Thank you. Thank you very much.

Annamalai Jayaraj: Thank you. Thank you very much.

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Q1 2027 Subros Ltd Earnings Call

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