Q1 2027 Jyoti CNC Automation Ltd Earnings Call

August 7, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Jyoti CNC Automation Q1 FY27 Earnings Conference Call, hosted by Anand Rathi. Before we begin, a brief disclaimer: this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call.

Operator: Ladies and gentlemen, good day, and welcome to Jyoti CNC Automation Q1 FY 2027 earnings conference call hosted by Anand Rathi. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance. It may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniket Jain from Anand Rathi. Thank you. Over to you, sir.

Speaker #1: These statements are not guarantees of future performance, and may involve risks and uncertainties that are difficult to predict. 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.

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

Operator: Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniket Jain from Anand Rathi. Thank you. Over to you, sir.

Speaker #1: I now hand the conference over to Mr. Aniket Jain from Anand Rathi. Thank you, and over to you, sir.

Speaker #2: Thank you. Good evening, everyone. On behalf of Anand Rathi, I welcome you all to the Q1 FY27 earnings conference call of Jyoti CNC Automation Limited.

Aniket Jain: Thank you. Good evening, everyone. On behalf of Anand Rathi, I welcome you all to Q1 FY27 Earnings Conference Call of Jyoti CNC Automation Limited. We are pleased to have with us management represented by Mr. Parakramsinh Jadeja, Chairman and Managing Director. We will have opening remarks from the management, followed by a question and answer session. Thank you. Over to you, sir.

Aniket Jain: Thank you. Good evening, everyone. On behalf of Anand Rathi, I welcome you all to Q1 FY 2027 earnings conference call of Jyoti CNC Automation Limited. We are pleased to have with us management represented by Mr. Parakramsinh Jadeja, Chairman and Managing Director. We will have opening remarks from the management, followed by a question-and-answer session. Thank you. Over to you, sir.

Speaker #2: We are pleased to have with us management represented by Mr. Parakram Singh Jadeja, Chairman and Managing Director. We will have opening remarks from the management, followed by a question-and-answer session.

Speaker #2: Thank you, and over to you, sir.

Parakramsinh Jadeja: Thank you, Aniket. Good evening, everyone, and a very warm welcome to our Q1 FY27 Earnings Conference Call. Along with me, I have a senior management team and SGA, our investor relation advisor. Results and presentation have been uploaded on the stock exchange. I hope everyone has had a chance to go through the same. I will begin my opening remarks with an overview of the economy, followed by industry and company's operational and financial performance. The global economy has witnessed a challenging FY26, with the geopolitical tensions creating uncertainty across markets for significant part of this year. The conflict in the Middle East disturbed global supply chain and energy markets, leading the volatility in crude oil price, raw material cost, and inflation. These developments have created an uncertain operating environment for businesses across the industries. FY27 has begun on a relatively stronger footing.

Parakramsinh Jadeja: Thank you, Aniket. Good evening, everyone, and a very warm welcome to our Q1 FY 2027 earnings conference call. Along with me, I have a senior management team and SGA, our Investor Relation advisor. Results and presentation have been uploaded on the stock exchange. I hope everyone has had a chance to go through the same. I will begin my opening remarks with an overview of the economy, followed by industry and company's operational and financial performance. The global economy has witnessed a challenging FY 2026, with the geopolitical tensions creating uncertainty across markets for significant part of this year. The conflict in the Middle East disturbed global supply chain and energy markets, leading the volatility in crude oil price, raw material cost, and inflation. These developments have created an uncertain operating environment for businesses across the industries.

Speaker #4: Thank you, Aniket. Good evening. Good evening, everyone, and a very warm welcome to our Q1 FY27 earnings conference call. Along with me, I have the senior management team and SGA, our investor relations advisor.

Speaker #4: Results and presentation have been uploaded on the stock exchange. I hope everyone has had a chance to go through the same.

Speaker #4: I'll begin my opening remarks with an overview of the economy, followed by industry, and the company's operational and financial performance. The global economy witnessed a challenging FY26, with geopolitical tensions creating uncertainty across markets for a significant part of the year.

Speaker #4: The conflict in the Middle East disturbed global supply chains and energy markets, leading to volatility in crude oil prices, raw material costs, and inflation.

Speaker #4: These developments created an uncertain operating environment for businesses across industries. FY27 has begun on a relatively stronger footing. Geopolitical tensions in the Middle East have moderated, with greater restraint being shown by all countries.

Parakramsinh Jadeja: FY 2027 has begun on a relatively stronger footing. Geopolitical tension in the Middle East have moderated with greater restraint being shown by all countries. While the outlook has improved, the global environment continue to remain sensitive, and any fresh geopolitical or trade-related disruption can once again impact global supply chains, commodity prices, and cross-border trade. In today's interconnected world, no economy remain insulated from global events. India had to witness the impact of higher crude oil prices and supply chain disruptions during the past year. At the same time, these events have reinforced the importance of building the resilient and self-reliant manufacturing ecosystems.

Parakramsinh Jadeja: Geopolitical tension in the Middle East have moderated with greater restraint being shown by all countries. While the outlook has improved, the global environment continue to remain sensitive, and any fresh geopolitical or trade-related disruption can once again impact global supply chains, commodity prices, and cross-border trade. In today's interconnected world, no economy remain insulated from global events. India had to witness the impact of higher crude oil prices and supply chain disruptions during the past year. At the same time, these events have reinforced the importance of building the resilient and self-reliant manufacturing ecosystems. While India has traditionally have been recognized as a service-led economy, there is now a clear policy focus on strengthening our domestic manufacturing as a long-term driver of economic growth, employment generation, and global competitiveness.

Speaker #4: While the outlook has improved, the global environment continues to remain sensitive, and any fresh geopolitical or trade-related disruptions can once again impact global supply chains.

Speaker #4: Commodity prices and cross-border trade—in today's interconnected world, no economy remains insulated from global events. India will witness the impact of higher crude oil prices and supply chain disruptions during the past year.

Speaker #4: At the same time, these events have reinforced the importance of building the resilience and self-reliance of manufacturing ecosystems. While India is recognized as a service-led economy, there is now a clear policy focus on strengthening domestic manufacturing as a long-term driver of economic growth.

Parakramsinh Jadeja: While India has traditionally have been recognized as a service-led economy, there is now a clear policy focus on strengthening our domestic manufacturing as a long-term driver of economic growth, employment generation, and global competitiveness. The Government of India continues to accelerate the country's manufacturing ambition through initiatives such as Make in India, the PLI schemes. Higher infrastructure spending and the development of industrial corridor, sector-specific policies are also driving investment across key industries, including PLI, incentives for mobile and electronics manufacturing, increased private participation in the space sector, continued focus on to defense indigenization, and policy support for automotive industry through EV and advanced manufacturing initiatives.

Speaker #4: Employment generation and global competitiveness. The Government of India continues to accelerate the country's manufacturing ambition through initiatives such as Make in India and the PLI schemes.

Parakramsinh Jadeja: The Government of India continues to accelerate the country's manufacturing ambition through initiatives such as Make in India, the PLI schemes. Higher infrastructure spending and the development of industrial corridor, sector-specific policies are also driving investment across key industries, including PLI, incentives for mobile and electronics manufacturing, increased private participation in the space sector, continued focus on to defense indigenization, and policy support for automotive industry through EV and advanced manufacturing initiatives. Together, these measures are strengthening India's manufacturing ecosystem, attracting investments, and reinforcing the country's position as a preferred global manufacturing hub. As a company, we are closely aligned with this structural growth opportunity. Our businesses is a direct reflection of manufacturing activity across the country, as our CNC machines enables customer to expand capacity, improve productivity, and manufacture with greater precision.

Speaker #4: Higher infrastructure spending and the development of industrial corridor sector-specific policies are also driving investment across key industries. This includes PLI incentives for mobile and electronics manufacturing, increased private participation in the space sector, continued focus on defense indigenization, and policy support for the automotive industry through EV and advanced manufacturing initiatives.

Speaker #4: Together, these measures are strengthening India's manufacturing ecosystem, attracting investments, and reinforcing the country's position as a preferred global manufacturing hub. As a company, we are closely aligned with this structural growth opportunity.

Parakramsinh Jadeja: Together, these measures are strengthening India's manufacturing ecosystem, attracting investments, and reinforcing the country's position as a preferred global manufacturing hub. As a company, we are closely aligned with this structural growth opportunity. Our businesses is a direct reflection of manufacturing activity across the country, as our CNC machines enables customer to expand capacity, improve productivity, and manufacture with greater precision. Speaking about the machine tool industry, the global market today is estimated around $85 to 90 billion. China remain the largest consumer of machine tools, followed by the United States, reflecting the scale of their manufacturing ecosystems. India's machine tool market, while currently estimated at around $4 billion, is at an inflection point, as manufacturing investment accelerate across the sectors.

Speaker #4: Our business is a direct reflection of manufacturing activity across the country. As of our CNC machines, they enable customers to expand capacity, improve productivity, and manufacture with greater precision.

Speaker #4: Speaking about the machine tool industry, the global market today is estimated at around $85 to $90 billion. China remains the largest consumer of machine tools, followed by the United States, reflecting the scale of their manufacturing ecosystems.

Parakramsinh Jadeja: Speaking about the machine tool industry, the global market today is estimated around $85 to 90 billion. China remain the largest consumer of machine tools, followed by the United States, reflecting the scale of their manufacturing ecosystems. India's machine tool market, while currently estimated at around $4 billion, is at an inflection point, as manufacturing investment accelerate across the sectors. We believe the domestic market has potential to grow multiple times over the next decade. Despite this opportunity, India continues to depend heavily on imports, with nearly 60% of domestic machine tool demand being met through imports, primarily from Japan, Europe, and South Korea. This presents a significant opportunity for import substitution, as Indian manufacturers increasingly look for reliable, technological advanced, and locally supported solutions.

Speaker #4: India's machine tool market is currently estimated at around $4 billion. It is at an inflection point as manufacturing investment accelerates across the sectors.

Speaker #4: We believe the domestic market has the potential to grow multiple times over the next decade. Despite this opportunity, India continues to depend heavily on imports.

Parakramsinh Jadeja: We believe the domestic market has potential to grow multiple times over the next decade. Despite this opportunity, India continues to depend heavily on imports, with nearly 60% of domestic machine tool demand being met through imports, primarily from Japan, Europe, and South Korea. This presents a significant opportunity for import substitution, as Indian manufacturers increasingly look for reliable, technological advanced, and locally supported solutions. Domestic machine tool companies are well-positioned to capture larger share of this market, while contributing to India's vision of becoming a global manufacturing powerhouse. Coming to the key updates during the quarter for standalone businesses. During the quarter, for Jyoti in India, we continue to witness a strong demand from general engineering, automotive, EMS, defense, and other precision engineering sectors.

Speaker #4: With nearly 60% of domestic machine tool demand being met through imports, primarily from Japan, Europe, and South Korea, this presents a significant opportunity for import substitution.

Speaker #4: As Indian manufacturers increasingly look for reliable, technologically advanced, and locally supported solutions, domestic machine tool companies are well positioned to capture a larger share of this market while contributing to India's vision of becoming a global manufacturing powerhouse.

Parakramsinh Jadeja: Domestic machine tool companies are well-positioned to capture larger share of this market, while contributing to India's vision of becoming a global manufacturing powerhouse. Coming to the key updates during the quarter for standalone businesses. During the quarter, for Jyoti in India, we continue to witness a strong demand from general engineering, automotive, EMS, defense, and other precision engineering sectors. This reflects increasing capital expenditure by manufacturers, rising localization initiatives, and continued investment in expanding domestic manufacturing capabilities. The demand environment remains encouraging, with customer increasingly looking to automate operations, improve productivity, and enhance manufacturing precision. We recently launched a new product, ENEC, a high-precision double-column machine. The product is targeted to cater primarily to the railway sector, along with commercial vehicles, infra, power, and heavy engineering. These types of machines were largely imported previously, and we are confident we will receive encouraging response from our customers.

Speaker #4: Coming to the key updates during the quarter for standalone businesses. During the quarter, for Jyoti in India, we continued to witness strong demand from general engineering, automotive, EMS, defense, and other precision engineering sectors.

Speaker #4: These reflect increasing capital expenditure by manufacturers, rising localization initiatives, and continued investment in expanding domestic manufacturing capabilities. The demand environment remains encouraging, with customers increasingly looking to automate operations.

Parakramsinh Jadeja: This reflects increasing capital expenditure by manufacturers, rising localization initiatives, and continued investment in expanding domestic manufacturing capabilities. The demand environment remains encouraging, with customer increasingly looking to automate operations, improve productivity, and enhance manufacturing precision. We recently launched a new product, ENEC, a high-precision double-column machine. The product is targeted to cater primarily to the railway sector, along with commercial vehicles, infra, power, and heavy engineering. These types of machines were largely imported previously, and we are confident we will receive encouraging response from our customers. India demand is reflected in our standalone performance. Q1 FY2027 revenue grew at a robust growth of 37% to INR 107 crores as compared to the same period of last year.

Speaker #4: Improve productivity and enhance manufacturing precision. We recently launched a new product, NX, a high-precision double-column machine. The product is targeted to cater primarily to the railway sector, along with commercial vehicles, infrastructure, power, and heavy engineering.

Speaker #4: These types of machines were largely imported previously, and we are confident we will receive an encouraging response from our customers. India's demand is reflected in our standalone performance.

Parakramsinh Jadeja: India demand is reflected in our standalone performance. Q1 FY2027 revenue grew at a robust growth of 37% to INR 107 crores as compared to the same period of last year. The profitability front as well at Q1 FY2027, EBITDA adjusted for Forex losses stood at INR 145 crores compared to INR 99 crores in Q1 FY2026, with margin of 28.4%, an increase of 190 basis points. Reported EBITDA stood at INR 137 crores with margin of 27.2%. Q1 PAT stood at INR 88 crores, growing by 21% over the same period previous year, with margin standing at 17.2%. Speaking of the global operation at Huron. Globally, demand continued to be led by defense, aerospace, and general engineering. As customers globally continue to invest in advancing their defense and manufacturing capabilities, we believe the long-term demand outlook for high technology CNC machines remains robust.

Speaker #4: In Q1 FY27, revenues grew 37% to ₹107 crores compared to the same period last year. On the profitability front, Q1 FY27 EBITDA—adjusted for forex losses—stood at ₹145 crores compared to ₹99 crores in Q1 FY26.

Parakramsinh Jadeja: The profitability front as well at Q1 FY2027, EBITDA adjusted for Forex losses stood at INR 145 crores compared to INR 99 crores in Q1 FY2026, with margin of 28.4%, an increase of 190 basis points. Reported EBITDA stood at INR 137 crores with margin of 27.2%. Q1 PAT stood at INR 88 crores, growing by 21% over the same period previous year, with margin standing at 17.2%. Speaking of the global operation at Huron. Globally, demand continued to be led by defense, aerospace, and general engineering. As customers globally continue to invest in advancing their defense and manufacturing capabilities, we believe the long-term demand outlook for high technology CNC machines remains robust.

Speaker #4: With margin of 28.4 percent, an increase of 190 basis points. Reported EBITDA stood at ₹137 crores, with margin of 27.2 percent. Q1 PAT stood at ₹88 crores, growing by 21 percent over the same period previous year, with margins trending at 17.2 percent.

Speaker #4: Speaking of our global operation at Huron, globally, demand continued to be led by the defense, aerospace, and general engineering sectors, as customers globally continue to invest in advancing their defense and manufacturing capabilities.

Speaker #4: We believe the long-term demand outlook for high-technology CNC machines remains robust. Speaking about the operation at Huron, I am pleased to share that all operations are running smoothly and are in full swing.

Parakramsinh Jadeja: Speaking about the operation at Huron, I'm pleased to share that all operations are running smoothly and are in full swing. There have been no disruptions to order intake, project execution, or overall operations at Huron Factory, reflecting the resilience of our team and process. We're also witnessing steady improvement in demand.

Speaker #4: There have been no disruptions to order projects, push, or overall operational resilience of our team and processes. I am also witnessing steady improvement.

Speaker #2: Ladies and gentlemen, the line for the management has been dropped. Please stay connected while we reconnect them. Ladies and gentlemen, the line for the management has been reconnected.

Operator: Ladies and gentlemen, the line for the management has been dropped. Please stay connected while we reconnect them. Ladies and gentlemen, the line for the management has been reconnected. Thank you, and over to you, sir.

Speaker #2: Thank you, and over to you, sir.

Speaker #4: We are also witnessing a steadily improving demand environment across multiple industry sectors, which gives us confidence in healthy order inflow over the coming quarters.

Parakramsinh Jadeja: We are also witnessing a steadily improving demand environment across multiple industry sectors, which gives us confidence in healthy order inflow over the coming quarters. Based on current market trends and customer engagement, we remain optimistic about building a strong order book for Huron. Huron continued to be a key pillar of the company's long-term growth strategy. Its advanced technological capabilities, strong engineering expertise, and established global presence significantly enhance our ability to serve customers worldwide. As we continue to leverage Huron's strength, it will play a critical role in expanding our global reach, accelerating innovation, and delivering world-class CNC machine solutions to customers across diverse industries. Our financial front at a consolidated basis. Revenue for Q1 FY2027 stood at INR 508.5 crores compared to INR 410.2 crores in Q1 FY2026, a growth of 24%. The console number also includes INR.

Speaker #4: Based on current market trends and customer engagement, we remain optimistic about building a strong order book for Huron. Huron continues to be a key pillar of the company's long-term growth strategy.

Speaker #4: Its advanced technological capabilities, strong engineering expertise, and established global presence significantly enhance our ability to serve customers worldwide. As we continue to leverage Huron's strength, it will play a critical role in expanding our global reach.

Speaker #4: Accelerating innovation and delivering world-class CNC machine solutions to customers across diverse industries. On our financial front, at a consolidated basis, revenue for Q1 FY27 stood at ₹508.5 crore compared to ₹410.2 crore in Q1 FY26, a growth of 24%.

Parakramsinh Jadeja: Revenue for Q1 FY2027 stood at INR 508.5 crores compared to INR 410.2 crores in Q1 FY2026, a growth of 24%. The console number also includes INR 35 crore in revenue from Jyoti CNC to Huron, which gets netted off in consolidation. Further, Q1 FY2027 and Q1 FY2026 are not strictly comparable as in Huron. We have moved away from our accounting method, which led to lower revenue recognition in Q1 FY2027 as compared to Q1 FY2026. At which time we are following a percentage completion method on certain terms and conditions on a like-to-like basis, our consolidated revenue should have been higher by more than INR 30 crore. Q1 FY2027 adjusted EBITDA stood at INR 119 crore compared to INR 100 crore. The adjustment was an account on unrealized Forex losses to the tune of INR 10 crore.

Speaker #4: The console number also includes Rs. 35 crore in revenue from Jyoti CNC to Huron, which gets netted off in consolidation. Further, the Q1 FY27 and Q1 FY26 are not strictly comparable, as in Huron.

Parakramsinh Jadeja: INR 35 crore in revenue from Jyoti CNC to Huron, which gets netted off in consolidation. Further, Q1 FY2027 and Q1 FY2026 are not strictly comparable as in Huron. We have moved away from our accounting method, which led to lower revenue recognition in Q1 FY2027 as compared to Q1 FY2026. At which time we are following a percentage completion method on certain terms and conditions on a like-to-like basis, our consolidated revenue should have been higher by more than INR 30 crore. Q1 FY2027 adjusted EBITDA stood at INR 119 crore compared to INR 100 crore. The adjustment was an account on unrealized Forex losses to the tune of INR 10 crore. Adjusted EBITDA margin stood at 23.4%. Reported EBITDA stood at INR 109 crore with a margin of 21.4%. Q1 tax stood INR 57 crore in a margin standing at 11.2%.

Speaker #4: We have moved away from our accounting method, which led to lower revenue recognition in Q1 FY27 as compared to Q1 FY26. At that time, we were following a percentage completion method on certain terms and conditions. On a like-to-like basis, our consolidated revenue should have been higher by more than ₹30 crore.

Speaker #4: Q1 FY27 adjusted EBITDA to debt is ₹119 crores compared to ₹100 crores. The adjustment was on account of unrealized forex losses to the tune of ₹10 crores.

Speaker #4: Adjusted EBITDA margin to debt 23.4%. Reported EBITDA to debt ₹109 crore, with a margin of 21.4%. Q1 PAT stood at ₹57 crore, with a margin standing at 11.2%.

Parakramsinh Jadeja: Adjusted EBITDA margin stood at 23.4%. Reported EBITDA stood at INR 109 crore with a margin of 21.4%. Q1 tax stood INR 57 crore in a margin standing at 11.2%. Overall, both our standalone and consolidated businesses continued to benefit from a healthy demand environment. Historically, the Q1 has been seasonally a softer period for machine tool industry, with customer ordering activity generally picking up in the H2 of the year. We expect a stronger H2 this year as well, supported by a healthy demand pipeline across both domestic and international markets. In addition, our new manufacturing facility is scheduled to commence operation by the end of September, which will significantly enhance our production capacity and enable us to better cater to the strong demand environment. As a result, we expect the H2 of FY2027 to be particularly robust for the company.

Speaker #4: Overall, both our standalone and consolidated businesses continue to benefit from a healthy demand environment. Historically, the first quarter has been seasonally a softer period for the machine tool industry.

Parakramsinh Jadeja: Overall, both our standalone and consolidated businesses continued to benefit from a healthy demand environment. Historically, the Q1 has been seasonally a softer period for machine tool industry, with customer ordering activity generally picking up in the H2 of the year. We expect a stronger H2 this year as well, supported by a healthy demand pipeline across both domestic and international markets. In addition, our new manufacturing facility is scheduled to commence operation by the end of September, which will significantly enhance our production capacity and enable us to better cater to the strong demand environment. As a result, we expect the H2 of FY2027 to be particularly robust for the company. Overall, the demand environment today is so strong that we are running at close to our full utilization. Our plant operation is at 86% capacity utilization in Q1 FY2027.

Speaker #4: Customer ordering activity generally picks up in the second half of the year. We expect a stronger second half this year as well, supported by a healthy demand pipeline across both the domestic and international markets.

Speaker #4: In addition, our new manufacturing facility is scheduled to come into operation by the end of September, which will significantly enhance our production capacity and enable us to better cater to the strong demand environment.

Speaker #4: As a result, we expect the second half of FY27 to be particularly robust for the company. Overall, the demand environment today is so strong that we are running at close to our full utilization.

Parakramsinh Jadeja: Overall, the demand environment today is so strong that we are running at close to our full utilization. Our plant operation is at 86% capacity utilization in Q1 FY2027. Underscoring the need for the capacity expansion that we had announced earlier, I am pleased to share that our expansion project, which will add the capacity for 10,000 machines annually, is progressing as planned. Installation of machinery is well underway. Our operating teams have already been put in place, and we have proactively built up raw material and inventory over the past 9 months to ensure a smooth production ramp-up. We remain on track to commission the new facility by the end of September, following which we will be positioned to cater to strong domestic and international demand pipeline while supporting our next phase of growth.

Speaker #4: Our planned operation at 86 percent capacity utilization in Q1 FY27 underscores the need for the capacity expansion that we had announced earlier. I'm pleased to share that our expansion project, which will add capacity for 10,000 machines annually, is progressing as planned.

Parakramsinh Jadeja: Underscoring the need for the capacity expansion that we had announced earlier, I am pleased to share that our expansion project, which will add the capacity for 10,000 machines annually, is progressing as planned. Installation of machinery is well underway. Our operating teams have already been put in place, and we have proactively built up raw material and inventory over the past 9 months to ensure a smooth production ramp-up. We remain on track to commission the new facility by the end of September, following which we will be positioned to cater to strong domestic and international demand pipeline while supporting our next phase of growth. Our revenue continued to be well diversified across the end user industries, reflecting the strength of our business model.

Speaker #4: Installation of machinery is well underway. Our operating team has already been put in place, and we have proactively built up raw material and inventory over the past nine months to ensure a smooth production ramp-up.

Speaker #4: We remain on track to commission the new facility by the end of September, following which we will be in a position to cater to strong domestic and international demand in the pipeline while supporting our next phase of growth.

Speaker #4: Our revenue continues to be well diversified across the end user industries, reflecting the strength of our business model. During the quarter, 37% of revenue came from aerospace and defense.

Parakramsinh Jadeja: Our revenue continued to be well diversified across the end user industries, reflecting the strength of our business model. During the quarter, 37% of revenue came from aerospace and defense, 35% from automotive and auto components, 17% from the general engineering, 6% from electronic manufacturing services. The balance 5% came from other industries. Moving to our order book, we continue to maintain a healthy and diversified order pipeline. As of today, our order book stands at INR 4,848 crore, providing a good revenue visibility for the coming quarters. The industries wise order book comprised: 38% of order book is from aerospace and defense, 20% from general engineering, 19% from automotive and auto components, 13% from electronic manufacturing services, and 4% from die and molds, and with balance coming from the other sectors.

Parakramsinh Jadeja: During the quarter, 37% of revenue came from aerospace and defense, 35% from automotive and auto components, 17% from the general engineering, 6% from electronic manufacturing services. The balance 5% came from other industries. Moving to our order book, we continue to maintain a healthy and diversified order pipeline. As of today, our order book stands at INR 4,848 crore, providing a good revenue visibility for the coming quarters. The industries wise order book comprised: 38% of order book is from aerospace and defense, 20% from general engineering, 19% from automotive and auto components, 13% from electronic manufacturing services, and 4% from die and molds, and with balance coming from the other sectors. For a detailed update on order inflow during the quarter, you can refer to our investor presentations. On machine sales front, we sold 1,406 machines during Q1 FY2027 compared to 1,117 machines in Q1 FY2026.

Speaker #4: 35 percentage from automotive and auto components. 17 percentage from the general engineering. 6 percentage from electronic manufacturing services. The balance. 5 percentage as claimed from came from other industries.

Speaker #4: Moving to our order book, we continue to maintain a healthy and diversified order pipeline. As of today, our order book stands at ₹4,848 crores, providing good revenue visibility for the coming quarters.

Speaker #4: The industries wise order book comprise a 38 percentage of order book is from aerospace and defense, 20 percent from general engineering, 19 percentage from automotive and auto components, 13 percentage from electronic manufacturing services, and 4 percentage from dye and molds and his balance coming from the other sectors.

Speaker #4: For a detailed update on order inflow during the quarter, you can refer to our inverter. On the machine sales front, we sold 1,406 machines during Q1 FY27 compared to 1,117 machines in Q1 FY26.

Parakramsinh Jadeja: For a detailed update on order inflow during the quarter, you can refer to our investor presentations. On machine sales front, we sold 1,406 machines during Q1 FY2027 compared to 1,117 machines in Q1 FY2026. The product mix was as followed: entry-level machine sales stood at 1,349 compared to 994 last year. Mid-range machine sales stood at 33 compared to 104 last year. High-end machine sales stood at 24 compared to 19 last year. Overall, we have started FY 2027 on a strong footing with healthy revenue growth, improving profitability, and robust order book. Demand continues to remain encouraging across key sectors while our upcoming capacity expansion will further strengthen our ability to capitalize on the opportunities ahead.

Speaker #4: The product mix was as follows. Entry-level machine sales stood at 1,349, compared to 994 last year. Mid-range machine sales stood at 33, compared to 104 last year.

Parakramsinh Jadeja: The product mix was as followed: entry-level machine sales stood at 1,349 compared to 994 last year. Mid-range machine sales stood at 33 compared to 104 last year. High-end machine sales stood at 24 compared to 19 last year. Overall, we have started FY27 on a strong footing with healthy revenue growth, improving profitability, and robust order book. Demand continues to remain encouraging across key sectors while our upcoming capacity expansion will further strengthen our ability to capitalize on the opportunities ahead. With a strong manufacturing base, continued investment in technology, our partnership with Huron, and a clear focus on supporting India's manufacturing transformation, we remain confident of sustaining our growth momentum while creating a long-term value for all our stakeholders. With that, I would now like to open the floor for question and answers.

Speaker #4: And high-end machine sales stood at 24 compared to 19 last year. Overall, we have started FY27 on a strong footing with healthy revenue growth, improving profitability, and a robust order book.

Speaker #4: Demand continues to remain encouraging across key sectors, while our upcoming capacity expansion will further strengthen our ability to capitalize on the opportunities ahead. With a strong manufacturing base, continued investment in technology, our partnership with Huron, and a clear focus on supporting India's manufacturing transformation.

Parakramsinh Jadeja: With a strong manufacturing base, continued investment in technology, our partnership with Huron, and a clear focus on supporting India's manufacturing transformation, we remain confident of sustaining our growth momentum while creating a long-term value for all our stakeholders. With that, I would now like to open the floor for question and answers.

Speaker #4: We remain confident of sustaining our growth momentum while creating long-term value for all our stakeholders. With that, I would now like to open the floor for questions and answers.

Speaker #2: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may please press star and one on their touchtone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is on the line of Harshit Patel from Equirus Securities. Please proceed with your question.

Speaker #2: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #2: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is on the line from Harshit Patel of Aquarius Securities.

Speaker #2: Please proceed with your question.

Harshit Patel: Thank you very much for the opportunity, sir.

Speaker #3: Thank you very much for the opportunity sir. Sir, firstly I sir firstly on your capex as you mentioned that the additional 10,000 machine capacity will come on stream in September 26.

Parakramsinh Jadeja: Hi.

Harshit Patel: Sir, firstly, on your CapEx, as you mentioned that the additional 10,000 machine capacity will come on stream in September 2026. What will be our overall CapEx outgo for the full year FY27? Because there will be some maintenance CapEx as well. Just a follow-up to that, on our relevant backward integration, foundry, sheet metal fabrication, machinery, all those things, they will also come on board in September 2026?

Harshit Patel: Sir, firstly, on your CapEx, as you mentioned that the additional 10,000 machine capacity will come on stream in September 2026. What will be our overall CapEx outgo for the full year FY 2027? Because there will be some maintenance CapEx as well. Just a follow-up to that, on our relevant backward integration, foundry, sheet metal fabrication, machinery, all those things, they will also come on board in September 2026?

Speaker #3: What will be our overall capex outgo for the full year FY27? Because there will be some maintenance capex as well. And just a follow-up to that, all our relevant backward integration—foundry, sheet metal fabrication, machinery, all those things—they will also come on more in September '26?

Speaker #4: Thank you, Harshit. Let me come back to your questions one by one. So, we targeted close to ₹450 crores of capex for this new capacity over there.

Parakramsinh Jadeja: Thank you, Harshit. Let me come back to your questions one by one. We targeted it close to INR 450 crore of the CapEx for our new capacity over there. Until today, we are on to the same target line. We are on the track, absolutely on that. Another of your questions about the detailing. Today, almost 80% of our machine shop, the factory has been constructed, machine has been put up. Already we started to partially machining and everything has already started. Only the part of automation that we are going to do it now and then it will improve our more and more manufacturabilities over there, about the machine shop there. Sheet metal shop, the building is about to finish now. All the machines we have already received.

Speaker #4: And until today, we are on the same target line. We are absolutely on track with that. Now, regarding your question about the details...

Speaker #4: So today, almost 80 percent of our machine shop is already constructed, the machines have been put up. Already we have started partially machining, and everything has already started.

Speaker #4: Only the part of automation that we are going to do now, and then it will be improved more and more—there will be more manufacturability over there.

Speaker #4: About the machine shop there. Sheet metal shop the building is about to finish now. And all the machines we are already received. And once the building has been handed over from this days within a week time and all our installations and everything is going to Parallelly our paint shop also the building is getting ready in this week.

Parakramsinh Jadeja: Once the building has been handed over from these days, within a week's time and all, our installations and everything is going to start. Parallelly, our paint shop also, the building is getting ready in this week. Basically all the equipment, everything is put into inside and to installation is going to start from this. Only the foundry part, that is running little late. We are expecting this foundry to be finished in October there. Right now the foundry equipment and everything is going to come in September, and we may take at least 1 month additional time to that. Apart from that, assembly building is also ready now. Assembly building is ready, machine shop is ready, sheet metal is ready. Only in foundry, we will have a 1 month to wait over there.

Speaker #4: So basically, all the equipment, everything, is put inside, and the installation is going to start from this. Okay? Only the foundry part. Okay.

Speaker #4: That is running a little late. We are expecting this foundry to be finished in October there. Okay. So right now, the foundry equipment and everything is going to come in September.

Speaker #4: And we may take at least one additional month for that. But apart from that, the assembly building is also ready now. The assembly building is ready, and the machine shop is ready.

Speaker #4: Sheet metal is ready. Only in foundry, we will have one month to wait over there. So, almost you can say that 99 percent we are on time there.

Parakramsinh Jadeja: Almost you can say that 99% we are on time there.

Speaker #3: Understood, sir. Perfect. Secondly, on our working capital position—as you mentioned in your opening remarks—our current inventory levels are slightly elevated because we are planning for the upcoming execution run from the second half of FY27 onwards.

Harshit Patel: Understood. Perfect. Sir, secondly, on our working capital position, as you mentioned in your opening remarks, our current inventory levels are slightly elevated because we are planning for the upcoming execution ramp-up from the second half of FY27 onwards. How this inventory position along with both receivables and payables, how these metrics will look like at the end of FY27? Here I'm trying to understand how will our working capital and the operating cash flow generation will look like for the full year.

Harshit Patel: Understood. Perfect. Sir, secondly, on our working capital position, as you mentioned in your opening remarks, our current inventory levels are slightly elevated because we are planning for the upcoming execution ramp-up from the second half of FY 2027 onwards. How this inventory position along with both receivables and payables, how these metrics will look like at the end of FY 2027? Here I'm trying to understand how will our working capital and the operating cash flow generation will look like for the full year.

Speaker #3: So, how will this inventory position, along with both receivables and payables—how will this metric look at the end of FY27? Here, I'm trying to understand how our working capital and the operating cash flow generation will look for the full year.

Speaker #4: So basically, last year, Harshit, we started to ramp up. See, today you see that we have close to now ₹5,000 crore order book.

Parakramsinh Jadeja: Basically, last year, Harshit, we started to ramp up. Today, you see that we are close to now INR 5,000 crore order book. Okay. We have ramped up every procurement and all since last nine months there. With this new facility coming up and execution will set right nicely after the new facility, we are expecting the working capital in inventory stage is drastically removed. Improvement we will see. In terms of operating cash flow, we are expecting to very positively surprised to be seen there.

Speaker #4: Okay. So we have ramped up the other procurements and all since the last nine months there. And with this new facility coming up, execution will be set right nicely after the new facility.

Speaker #4: We are expecting the, let's say, walking capital in the inventory stage is drastically removed; let's say, improvement we will see. In terms of operating cash flow, we are expecting to see a very positive surprise there.

Speaker #3: Understood, sir. Perfect. Thank you very much for answering my questions. I'll come back to this.

Harshit Patel: Understood, sir. Perfect. Sir, thank you very much for answering my questions. I will come back in the future.

Speaker #2: Thank you, sir. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your questions to two per participant.

Operator: Thank you, sir. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to two per participant. The next question is from the line of Rabindra Nath Nayak from Nirmal Bang Securities. Please proceed with your question.

Speaker #2: The next question is from the line of Ravindranath Nayak from Nirmal Bang Securities. Please proceed with your question.

Speaker #3: Hello. Good evening, sir. Thank you for the opportunity. Yeah, thank you, sir.

Rabindra Nath Nayak: Hello. Good evening, sir. Thank you for the-

Rabindra Nath Nayak: Hello. Good evening, sir. Thank you for the—

Parakramsinh Jadeja: Good evening, Rabindra Ji.

Rabindra Nath Nayak: Thank you, sir. Sir, congratulations for good gross margin. There is a significant growth in gross margin, despite very low sales in Suran. The other figures like the staff cost and also the other expenditure and quarter-to-quarter basis has increased. Also whether it is due to the new capacity that we are building, whether it is relating to that, the interest cost which also has gone up. You mentioned that with the foreign exchange loss, our EBITDA is around 23%. I'm referring to your past call that you mentioned that whatever may be the realization, INR 34, INR 36 or INR 37, realization go to around INR 30 lakhs, our margin will remain 24% and 25%. How will you reconcile all these things to actually to a 23% margin in this quarter?

Speaker #4: Sir, congratulations or good gross margin with a significant growth in the gross margin. Despite you know very low sales in Suram. But the other figures like sir the staff cost and also the other expenditure and quarter to quarter basis has increased.

Speaker #4: You know, and also whether it is due to the new capacity that you have built—so whether it is relating to that, the interest cost has also gone up.

Speaker #4: So you mentioned that with the foreign exchange loss the our EBITDA is around 23 percent. So you I am referring to your past call that we mentioned that we whatever maybe the realization 34 36 even realization go to around 30 lakhs our margin will remain 24 25 percent.

Rabindra Nath Nayak: I'm referring to your past call that you mentioned that whatever may be the realization, INR 34, INR 36 or INR 37, realization go to around INR 30 lakhs, our margin will remain 24% and 25%. How will you reconcile all these things to actually to a 23% margin in this quarter? Whether there is some capacity cost we have built in in this quarter, that our margins are low. Can you comment on something on this? Thank you.

Speaker #4: So how will you reconcile all these things to actually to a 23 percent margin in this quarter? So whether there is some capacity cost we have built in in this quarter so that our we have in our margins are low.

Rabindra Nath Nayak: Whether there is some capacity cost we have built in in this quarter, that our margins are low. Can you comment on something on this? Thank you.

Speaker #4: So, can you comment on something regarding this? Thank you. I will come to the next question.

Speaker #3: Thank you Ravindra.

Parakramsinh Jadeja: Thank you, Rabindra. See, Rabindra Ji, basically, if you look at that, our standalone margin has improved very well. Okay? It means we are completely on a cost and everything is nicely being there. Even though, let's say, individually we have a 27% plus. We always guide it to the people to at 25%. Right now, what we are seeing is the difference are coming basically in Huron. We have made the revenue close to INR 35 crore in quarter. Compared to the last year quarter, it was close to INR 70 crore. We missed this INR 35 crore additional revenue. Due to this, our new accounting structures and all. We have produced, but we are not able to bill them. The cost and everything has been loaded there. Okay? That's how it has been look like.

Speaker #4: Thank you, Ravindra. See, Ravindra bhai, basically if you look at that, our standalone margin has improved very well. Okay. It means we are completely on cost and everything is nicely been there.

Speaker #4: Even the let's say the the individually we have a 27 percentage plus. And we always guided to the people to at 25 percentage. Okay.

Speaker #4: Right now, what we are seeing is the differences are coming basically in Huron. We have made the revenue close to ₹35 crore in the quarter.

Speaker #4: Compared to the last year quarter, it was close to ₹70 crore. We missed this ₹35 crore additional revenue due to our new accounting structures and all.

Speaker #4: We have produced, but we are not able to build them. But the cost and everything has been loaded there, okay? So that's how it has been looking like.

Speaker #4: And compared to, let's say, even if we have ₹35 crores of material that has been transferred from India to there, so in the consolidated revenue, it has been netted off.

Parakramsinh Jadeja: Compared to, let's say even we have INR 35 crore of material has been transformed from India to there. In consolidated revenue, it has been a net off, and that's why this revenue has not been seen to be higher there. Okay. In terms of a margin, we are absolutely on track. Once the revenue comes in coming quarters, been booked in Huron, it will be restated to all the margin to be there.

Speaker #4: And that's why this revenue has not been seen to be higher there. Okay. But in terms of margin, we are absolutely on track.

Speaker #4: Once the revenue comes in, in the coming quarters, been booked in Huron, it will be restated to all the margin to be there.

Speaker #3: Okay. And sir, interest cost has gone up. Are we booking the interest because—why are you not capitalizing the interest for the new capacity that is going to be built?

Rabindra Nath Nayak: Okay. Why we are not capitalizing the interest for the new capacity that you're going to build?

Rabindra Nath Nayak: Okay. Thanks sir. In this quarter, going up whether we are booking the [inaudible] why we are not capitalizing the interest for the new capacity that you're going to build?

Speaker #4: So basically, we have fully booked into cost over here, and anyhow, this capacity is going to start in this year. We are going to utilize from September onwards.

Parakramsinh Jadeja: We have fully booked into cost over here. The capacity is going to start in this year. We are going to utilize from September onwards. Partly already we started using the building up of this all our components and all.

Speaker #4: And partly, already we started using the building up of all our components and all. Already, we have put to use; there are many things we have put to use there.

Rabindra Nath Nayak: Okay.

Parakramsinh Jadeja: Already we have put to use. There are many thing we have put to use there. Okay. That's how we are able to improve from our Q3. If I have not put to use, and if I start everything from October onward, then I can capture the revenue from next year onwards there. Already we started, so we put to use, and then cost has been incurred. We cannot push into any capitalization over there.

Speaker #4: Okay. And that's how we are able to improve from our third quarter. If I have not put to use, and if I start everything from October onward, then I can capture the revenue from next year onwards there.

Speaker #4: So already, already we started, so we put to use and then cost has been anchored, so we cannot push into a capitalization over there.

Speaker #3: Okay. And if we compare this on a like-to-like basis, is it right to estimate around Rs. 20 to 25 crores of additional cost that we have built into our cost, which is why the margin is down?

Rabindra Nath Nayak: Okay. If we compare this of like-to-like basis, whether it is right to estimate it up around INR 20 to 25 crore of additional cost we have built in our cost, for which the margin is down?

Speaker #4: So basically, if you look at that, see the margin. I told you that revenue has not come from Huron at close to ₹35 crore.

Parakramsinh Jadeja: No. Basically, if you look at that, see the margin I told you that revenue has not come from Huron at close to INR 35 crore. That is supposed to come as compared to the last year Q1. Okay? If you calculate this margin, we miss the margin of INR 20-22 crore. Exactly over the same margin we miss there.

Speaker #4: That's supposed to come as compared to the last year's first quarter. Okay? And if you calculate this margin, we miss the margin by ₹22 crore.

Speaker #4: Exactly over the same margin, we miss there.

Speaker #3: Okay. Okay. Okay. And sir one suggestion you know because if you give the Huron's you know say you know performance and a quarter to quarter basis that would be helpful because you know instead of you know discussing in the conference call if you can give it explicitly that would be helpful for the investors to actually analyze the things properly.

Rabindra Nath Nayak: Sir, one suggestion, because if you give the Huron's performance on a quarter-to-quarter basis, that would be helpful. Instead of discussing in the conference call, if you can give it explicitly, that would be helpful for the investors to actually analyze the things properly. That is a suggestion. Last year.

Rabindra Nath Nayak: Okay. Sir, one suggestion, because if you give the Huron's performance on a quarter-to-quarter basis, that would be helpful. Instead of discussing in the conference call, if you can give it explicitly, that would be helpful for the investors to actually analyze the things properly. That is a suggestion. Last year—

Speaker #3: So that is a suggestion. And last year, there was a forex gain that we have not, you know, accounted for, because if you could have accounted for that in this quarter, then, you know, why—why things would be better.

Parakramsinh Jadeja: Sure

Parakramsinh Jadeja: Sure.

Rabindra Nath Nayak: There was a Forex gain that we have not accounted. If you could have accounted for that in this quarter, then why the things would be better? We have got INR 10 crore loss. Last year it was INR 20 crore of gain for us in the Forex gain. Like-to-like basis it would be. Performance would be compared properly. Sir, the new machines that you have just discussed in the opening remark, what type of machine and what is the realization and also what is the market, what is the import currently India is doing for this import machine?

Rabindra Nath Nayak: —there was a Forex gain that we have not accounted. If you could have accounted for that in this quarter, then why the things would be better? We have got INR 10 crore loss. Last year it was INR 20 crore of gain for us in the Forex gain. Like-to-like basis it would be. Performance would be compared properly. Sir, the new machines that you have just discussed in the opening remark, what type of machine and what is the realization and also what is the market, what is the import currently India is doing for this import machine?

Speaker #3: Because we have got, you know, ₹10 crore loss last year. It was ₹20 crore of gain, perhaps, in the forex time. So, like to like basis, it would be, you know, performance would be compared properly.

Speaker #3: And sir, the new machines that you have, you know, just discussed in the opening remark, is it—what type of machine, and what is the realization? And also, what is the market? What is the import currently India is doing on this—for this import machine?

Speaker #4: So basically this large size of a machine are coming from the mainly from this Taiwan Korea are the main supplier this particular machines. The machines are more than five meters range we have built up this six meters the new first model then another machines we have put up in a right now under development is a eight meter and 10 meters also.

Parakramsinh Jadeja: Basically this large size of a machine are coming mainly from Taiwan, Korea are the main supplier of this particular machines. The machines are more than 5 meters range. We have built up this 6 meters, the new first model, then another machines we have put up, right now under development is 8 meter and 10 meters also. Particularly for the heavy engineering. Last year, India has import more than 300 machine of this categories there. Value for this machine is close to INR 3 to 5 crore in between over here. We have just been developed, and the target industries is right now the railway is also expanding big way there. We have received some of the orders in this quarter also against this machine for the railway component suppliers over there.

Speaker #4: Particularly for the heavy engineering last year India has import more than 300 machine of this categories there. And value for this machine is close to three to five crores in between over here.

Speaker #4: So, we have just been developed, and the target industries right now—the railway is also expanding in a big way there. And we have received some of the orders in this quarter also against this machine for the railway component suppliers over there.

Speaker #3: Okay. Okay. And is it a 3X machine or...

Rabindra Nath Nayak: Okay. Is it a 3X machine?

Operator: Sorry to interrupt. Rabindra sir, may we request that you return to the question you asked?

Speaker #2: Sorry, Ravindra sir, may we request that you return to the question?

Rabindra Nath Nayak: It's actually last question. Okay.

Speaker #3: Last question. Okay.

Speaker #4: Yeah. So Ravindra this is a this is a three plus one yani this machine is a five sided machine but not in a five axis simultaneously there.

Parakramsinh Jadeja: Yeah. Ravindra, this is a three plus one. This machine is a five-sided machine, but not in a 5X is simultaneously there.

Speaker #3: Okay. Okay. Thank you, sir. Thank you.

Rabindra Nath Nayak: Okay. Thank you, sir. Thank you.

Speaker #4: Thank you. Thank you.

Parakramsinh Jadeja: Thank you.

Speaker #2: Thank you, sir. The next question is from the line of Seth Saurav Guzar from ICICI Prudential AMC. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Saif Saurabh Gujjar from ICICI Prudential AMC. Please proceed with your question.

Speaker #4: Yeah. Good evening, sir. One question around the Huron thing which you mentioned—the technician part of the call—is regarding one of the machines where I think the approval was pending, because of which it is in inventory, right?

Saurabh Gujjar: Yeah. Good evening, Girish sir.

Sourav Gurjar: Yeah. Good evening, Girish sir.

Parakramsinh Jadeja: Yes.

Saurabh Gujjar: One question around the Huron thing which you mentioned at initial part of the call regarding one of the machineries where I think the approval was pending because of it is in inventory, right? Is that correct, Girish sir?

Sourav Gurjar: One question around the Huron thing which you mentioned at initial part of the call regarding one of the machineries where I think the approval was pending because of it is in inventory, right? Is that correct, Girish sir?

Speaker #4: Is that correct, what I know? Correct. So, because comparing it to the last call, which you had highlighted, it is about the licenses, which I remember right.

Parakramsinh Jadeja: Correct.

Saurabh Gujjar: Because comparing it to the last call which you had highlighted, it is about the licenses which I remember, right? Like, for each machine-

Sourav Gurjar: Because comparing it to the last call which you had highlighted, it is about the licenses which I remember, right? Like, for each machine—

Speaker #4: Like for each machine, I think the controller has to issue approvals. So, is that approval received now? Is it a timing issue, or is it still due, even past due, for this specific machine?

Parakramsinh Jadeja: Correct

Parakramsinh Jadeja: Correct.

Saurabh Gujjar: I think the controller has to issue approvals.

Sourav Gurjar: —I think the controller has to issue approvals.

Parakramsinh Jadeja: Correct.

Saurabh Gujjar: Is that approval received now, is it a timing issue or is it still due even post release of it for this specific machine?

Sourav Gurjar: Is that approval received now, is it a timing issue or is it still due even post release of it for this specific machine?

Speaker #4: No particularly is not in a one machine but specifically all the export license is right now they are taking longer time there. Okay. So we are in a in a waiting mode there.

Parakramsinh Jadeja: No, particularly it's not in one machine, but specifically all the export license is right now they are taking a longer time there. Okay. We are in a waiting mode there. Once we will receive the license, it means there is a certainty for the machine to be dispatched, and then only we can able to book this into our revenue to be there. This is the method, very conservative method, being adapted by the local authorities and local auditors over there. That we have adapted over here, basically. We are in a very strong position. Our two to three meeting our management has done with the authority there, and they are very much positive. They are looking to the end user client and all, and they will clear very soon there.

Speaker #4: Once we receive the license, it means there is a certainty for the machine to be dispatched, and then only we can be able to book this into our revenue to be there.

Speaker #4: This method has been a very conservative method adopted by the local authorities and the local auditors over there. So, we have adopted it over here, basically.

Speaker #4: And the we are in a very very strong positions our two to three meeting our management has done with the authority there. And they are very much positive.

Speaker #4: They are looking to the end user client and all and they will clear very soon there. Got it. That's it from my side of.

Saurabh Gujjar: Got it. That's it on my end.

Sourav Gurjar: Got it. That's it on my end.

Parakramsinh Jadeja: Awesome. Yeah.

Speaker #4: Yeah. Yeah. Yeah.

Speaker #2: Thank you, sir. The next question is from the line of Bajrang Bafna from Sunidhi Securities. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Bajrang Bafna from Sunidhi Securities. Please proceed with your question.

Speaker #4: Sir, congratulations for a decent set of numbers on standalone. Of course, there is—

Bajrang Bafna: Sir, congratulations for the recent set of numbers on standalone.

Bajrang Bafna: Sir, congratulations for the recent set of numbers on standalone. Of course, there is—

Speaker #3: Thank you.

Parakramsinh Jadeja: Thank you.

Speaker #4: Some ambiguity on the Huron side. So I'll be little more specific to get the clarification done from you. So since you already pointed out I'm just putting in perspective earlier we were we have adopted percentage completion method and now we are booking revenues on Huron once the machines are dispatched.

Bajrang Bafna: Some ambiguity on the Huron side. I'll be little more specific to get the clarification done from you. Since you already pointed out, I'm just putting in perspective. Earlier, we have adapted percentage completion method, and now we are booking revenues on Huron once the machines are dispatched. Since the complete dispatch was not there in this quarter on the Huron side as compared to what we have exported some material to Huron, we have seen the revenue dip. If you would have adapted the earlier method, then revenues would have been higher by close to another INR 30 to 35 crores, which would have flown to EBITDA, and the comparable EBITDA would have been much better than what it looked like in this quarter. Is my understanding right, sir, to understand?

Bajrang Bafna: —some ambiguity on the Huron side. I'll be little more specific to get the clarification done from you. Since you already pointed out, I'm just putting in perspective. Earlier, we have adapted percentage completion method, and now we are booking revenues on Huron once the machines are dispatched. Since the complete dispatch was not there in this quarter on the Huron side as compared to what we have exported some material to Huron, we have seen the revenue dip. If you had adopted the earlier method, then revenues would have been higher by close to another INR 30 to 35 crores, which would have flown to EBITDA, and the comparable EBITDA would have been much better than what it looked like in this quarter. Is my understanding right, sir, to understand—

Speaker #4: So, since you know the complete dispatch was not there in this quarter on the Huron side as compared to what we have exported, the some material to Huron, we have seen the revenue dip. And if we would have adopted the earlier method then revenues would have been higher by close to another 30–35 crores, which would have flown to EBITDA, and the comparable EBITDA would have been much better than what, you know, it looked like in this quarter.

Speaker #4: So is my understanding right, sir? To understand... Absolutely, absolutely. You have understood it perfectly right, and I already stated in the past two questions also, so absolutely, absolutely. Let's say if this method had not been set, then my top line should be ₹35 crores more and ₹22 crores margin should be more there.

Parakramsinh Jadeja: Absolutely. You understood as perfectly right. I already stated into all past two questions also. Absolutely. Let's say, if this method has been not set, then my top line, which should be INR 35 crores more and INR 22 crores margin should be more there.

Speaker #4: Correct. So now sir going into Q2 precisely can we expect you know that some dip that we have seen in Q1 in terms of you know dispatches of machines can they pick up in Q2 or we have to wait for the second half.

Bajrang Bafna: Correct. Now, sir, going into Q2 precisely, can we expect that some dip that we have seen in Q1 in terms of dispatches of machines, can they pick up in Q2 or we have to wait for the H2? Can we expect some sort of pick up in dispatches of machines in Q2? Q2-

Speaker #4: So can we expect some sort of pick up in dispatches of machines in Q2 so Q2. Yeah. Basically yeah. Basically we are looking to be see this this particular things has been changed in last only in the last three months.

Parakramsinh Jadeja: Basically, we are looking to be. This particular thing has been changed only in the last three months. Okay. It started from Q1. Okay. Now we are expecting Q2 is much better. We have a local machine. Those are the machines are going to be prepared and going to dispatch. We are not waiting for the end user certificate also. We are significantly, we are expecting Q2 numbers to be improved there first. Okay. Gradually, I'll tell you one thing. These are the long-term, long, large machines, and the manufacturing times are longer. The lumpy things are coming up. One Q3 and Q4, we will see the bunch will come. Ultimately, we are producing and keeping there into WIP there. One day it will go out, and we will see the nice results on the coming quarters to be there.

Speaker #4: Okay. It started from Q1. Okay. And now we are expecting Q2 is a much better we have a local machine those are the machines are going to be prepared and going to dispatch even not we are not waiting for the end user certificate also.

Speaker #4: So we are significantly we are expecting to Q2 numbers to be improved there first. Okay. Gradually I'll tell you one thing. These are the long term long large machines and the manufacturing times are longer.

Speaker #4: So, lumpy things are coming up. So, in the third quarter and fourth quarter, we will see the bunch will come. Ultimately, we are producing and keeping there into WIP there.

Speaker #4: So one day it will go out, and we will see the nice results in the coming quarters to be there.

Speaker #3: Okay. So sir, I'm just trying to conclude it. You know, the earlier practice was that, since the lumpiness was not of percentage completion method...

Bajrang Bafna: Okay. Sir, I'm just trying to conclude it. The earlier practice was that since the lumpiness was not there, numbers were looking smooth because of percentage completion method.

Bajrang Bafna: Okay. Sir, I'm just trying to conclude it. The earlier practice was that since the lumpiness was not there, numbers were looking smooth because of percentage completion method—

Parakramsinh Jadeja: Absolutely.

Speaker #4: Absolutely.

Speaker #3: A few quarters might see more dispatches, and a few quarters might see lower dispatches on the Huron side. So it is better for us to look at the yearly picture, rather than, you know, quarter-on-quarter EBITDA margins.

Bajrang Bafna: few quarters might see more dispatches, few quarter might see lower dispatches on the Huron side. It is better for us to look at the yearly picture rather than quarter on quarter EBITDA margins. Is that understanding right?

Bajrang Bafna: —few quarters might see more dispatches, few quarter might see lower dispatches on the Huron side. It is better for us to look at the yearly picture rather than quarter on quarter EBITDA margins. Is that understanding right?

Speaker #3: Is that.

Speaker #4: Absolutely. Absolutely. Machine tool company we need to see a yearly basis only there.

Parakramsinh Jadeja: Absolutely. Machine tool company will need to see a yearly basis only there.

Speaker #3: Okay. And sir still we stand by with our earlier guidance of close to you know 25 to 30 percent growth on top line and maintaining the EBITDA margins in the range of 25 percent.

Bajrang Bafna: Okay. sir, still we stand by with our earlier guidance of close to 25% to 30% growth on top line and maintaining the EBITDA margins in the range of 25%.

Bajrang Bafna: Okay. sir, still we stand by with our earlier guidance of close to 25% to 30% growth on top line and maintaining the EBITDA margins in the range of 25%—

Speaker #4: Absolutely. We are we are fully fully committed. We are on way and we have demonstrated if you look at that even this situation also we are close to 23.4 percent as margin and growth also is close to 24 percentage at at consolidation level also.

Parakramsinh Jadeja: Absolutely. We are fully committed. We are on the way, and we have demonstrated, if you look at that, even this situation also, we are close to 23.4% margin and growth also is close to 24% at consolidation level also. We are on track, and we are absolutely going to deliver 25% to 30% as guideline has been given and margin also to be maintained there. We are fully confident on that and will deliver that.

Speaker #4: So, we are on track, and we are absolutely going to deliver 25 to 30 percent as the guideline has been given, and margin also to be maintained there.

Speaker #4: We are fully confident in that. We'll deliver that.

Bajrang Bafna: Thank you, sir, and wish you all the very best. Thank you very much.

Speaker #3: Thank you, sir, and wish you all the very best. Thank you very much.

Speaker #4: Thank you. Thank you. Thank you.

Parakramsinh Jadeja: Thank you.

Operator: Thank you, sir. The next question is from the line of Aniket Jain from Anand Rathi. Please proceed with your question.

Speaker #2: Thank you, sir. The next question is from the line of Aniket Jain from Anand Rathi. Please proceed with your question.

Speaker #5: Hi sir. I wanted to check on the EMS market. Is the demand environment improving there? Can we see some good ordering in the couple of quarters that are yet to come in this year?

Aniket Jain: Hi, sir. I wanted to check on the EMS market. Is the demand environment improving there? Can we see some good ordering in the couple of quarters that are yet to come in this year? Maybe that's question one for EMS ordering.

Speaker #5: So maybe that's question one for EMS ordering.

Speaker #4: Okay. What is question number two?

Parakramsinh Jadeja: Okay. What is the question number two?

Aniket Jain: Sir, question number two is also on the accounting change that you have done. If I understand correctly, there will be some huge lumpiness in the revenues, basically 30 to 35 crores. We may see 30 crores for Huron in one quarter and that may increase to 100 crores in next quarter. Eventually the run rate was about 70 crores that was historically done. Doesn't that create a lot of lumpiness in the EBITDA margins also?

Speaker #5: Sir question number two is also on the accounting change that you have done. So if I understand correctly there'll be some huge lumpiness in the revenues basically 30 to 35 crores.

Speaker #5: We may see 30 crores for Huron in one quarter, and that may increase to 100 crores in the next quarter, because eventually their 100 was about 70 crores that was historically done.

Speaker #5: So does that create a lot of lumpiness in the EBITDA margins also? It can go to probably 30–31 percent when the revenues are higher, and can come down to 23–24 percent.

Parakramsinh Jadeja: It can go to probably 30%, 31% when the revenues are higher and can come down to 23%, 24%.

Speaker #5: So, how do you look at the margins and the sustenance of margins, then?

Aniket Jain: How do you look at the margins, the sustenance of margins then?

Speaker #4: So, I always say that, Aniket, first of all, as a machine tool company, we are not a quarter-to-quarter company, okay? But anyhow, we are here.

Parakramsinh Jadeja: I always say that, Aniket, that first of all, the machine tool company, we are not a quarter to quarter. Okay? Anyhow, we are here. We manufacture the very large machines and also it will going to happen and we will see that things. People, you will also able to understand the complete cycle to be there.

Speaker #4: So, and we manufacture the very large machines, and also it will be going to happen, and we will see those things. And people will also—you will also be able to understand the complete cycle to be there.

Speaker #4: So that is a there is a part on parcel of the business. So we will we will see that things typically. Regarding the EMS we are fully busy right now.

Parakramsinh Jadeja: There is a part and parcel of the business, we will see that things basically. Regarding the EMS, we are fully busy right now. It's not converted into a order, because all my customers also are developing their own capacity. Many customers are waiting. Now there is a new electronic manufacturing component, PLI scheme and the enhancement up to INR 40,000 crores. Many of customers are waiting and they get the clearance. Right now, we are fully more than 200 of our people. Those are working with our customers and developing each new processes, toolings, the programming, and supporting them. We are fully equipped to support to them. Once they are ready, we are also ready. Basically right now our capacity also will come up. They all are looking to us over here also. Today we are almost 90% utilization level are there.

Speaker #4: It's not converted into an order because all my customers are also developing their own capacity. Many customers are waiting; now there is a new electronic manufacturing component PLI scheme, and the enhancement is up to ₹40,000 crores.

Speaker #4: So many of our customers are waiting, and then they get the clearance. Right now, we are fully more than 200 people—those are working with our customers and developing each new process, tooling, the programming, and supporting them.

Speaker #4: So, we are fully equipped to support them. Once they are ready, we are also ready. And basically, right now our capacity also will come up.

Parakramsinh Jadeja: We are fully equipped to support to them. Once they are ready, we are also ready. Basically right now our capacity also will come up. They all are looking to us over here also. Today we are almost 90% utilization level are there. Already we have a big order book are in our pipe, we first like to execute all these things first.

Speaker #4: They are all are looking to us over here also that today we are almost 90 percent utility level utilization levels are there. So and already we have a big order book are in our pocket and we first like to execute all these things first.

Parakramsinh Jadeja: Already we have a big order book are in our pipe, we first like to execute all these things first.

Speaker #5: Understood, sir. Very clear. Thank you so much for answering. I'll get back into it.

Aniket Jain: Understood, sir. Very clear. Thank you so much for answering. I'll get back in queue.

Speaker #2: Thank you, sir. The next question is from the line of Arafat from Daulat Capital. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Arafat from Dalal Capital. Please proceed with your question.

Speaker #3: Yeah. Hi sir. I'm audible.

[Company Representative] (Dolat Capital Market): Yeah. Hi sir. I am audible?

Arafat Saiyed: Yeah. Hi sir. I am audible?

Speaker #4: Thank you. Yeah. Absolutely.

Parakramsinh Jadeja: Hi. Yeah, absolutely.

Speaker #3: Yeah, sir. Thanks for taking my question and congrats on a strong performance. So, my first question is on your realization. If you look at the realization per machine, the blended amount has come down from around 26 to around 38 lakh.

[Company Representative] (Dolat Capital Market): Yeah, sir. Thanks for taking the question and congrats on strong stand on to Soman. My first question is on your realization. If you look at the realization per machine blended, it has come down in FY 2026 to around INR 38 lakh from INR 45 lakh in FY 2025. If you look at actual number, what you discussed in the Q1 FY 2027, it is further down to INR 36 lakh. Just want to understand, mainly due to the, let's say, machinery or the factor or which has drive this lower realization for the 2026 and also Q1 FY 2027?

Arafat Saiyed: Yeah, sir. Thanks for taking the question and congrats on strong stand on to Soman. My first question is on your realization. If you look at the realization per machine blended, it has come down in FY 2026 to around INR 38 lakh from INR 45 lakh in FY 2025. If you look at actual number, what you discussed in the Q1 FY 2027, it is further down to INR 36 lakh. Just want to understand, mainly due to the, let's say, machinery or the factor or which has drive this lower realization for the 2026 and also Q1 FY 2027?

Speaker #3: From 40 to 45 lakhs in the upper 25. And if you look at the number that you discussed in the one QF at 27, it's further down to 36 lakhs.

Speaker #3: So just want to understand, it's mainly due to the, let's say, machinery or the sector, or which has driven this lower reaction for the '26 and also one Q4 at '27.

Speaker #4: So basically, see, if you look at that, last year in the first quarter there were 1,100 machines. This year, we have increased the number of machines to close to 1,406.

Parakramsinh Jadeja: Basically, see if you look at that, the last year, the Q1, was a 1,100 machines are there.

Parakramsinh Jadeja: Basically, see if you look at that, the last year, the Q1, was a 1,100 machines are there. This year, we have increased the number of machine to close to 1,406. Okay. The last year, the Q1 average was 34.41. Okay. This year it's close to 34.56. It's almost similar there. Okay. We will be in a range in coming days, because the way number of machines and capacity on entry-level and mid-level machines are increasing. We will be in a range of similar in coming quarters or one or two years to be like this.

Parakramsinh Jadeja: This year, we have increased the number of machine to close to 1,406. Okay. The last year, the Q1 average was 34.41. Okay. This year it's close to 34.56. It's almost similar there. Okay. We will be in a range in coming days, because the way number of machines and capacity on entry-level and mid-level machines are increasing. We will be in a range of similar in coming quarters or one or two years to be like this.

Speaker #4: Okay. So the last year the first quarter average was 34.41. Okay. And this year is close to 34.56 is almost similar there. Okay. And we will be in a range in coming days because the way number of machines and capacity on a entry level and mid level machines are increasing so we will be in a range of similar in a coming quarters or one or two years to be like this.

Speaker #3: Okay. Got it, sir. Got then, sir, next question—bookkeeping question. You said the total capex for this 10,000 machine goes to ₹43 crore.

[Company Representative] (Dolat Capital Market): Okay. Got it. Got it, sir. Next question, a bookkeeping question. You said the total CapEx for this 10,000 machine goes to INR 4 to 5. I think if you look at for the 2026 CapEx, I think it's somewhere close to INR 300 crore. Just want to understand what CapEx you have done till now in FY 2026 and what would be your CapEx for FY 2027, in terms of number.

Arafat Saiyed: Okay. Got it. Got it, sir. Next question, a bookkeeping question. You said the total CapEx for this 10,000 machine goes to INR 4 to 5. I think if you look at for the 2026 CapEx, I think it's somewhere close to INR 300 crore. Just want to understand what CapEx you have done till now in FY 2026 and what would be your CapEx for FY 2027, in terms of number.

Speaker #3: So I think if you look at for the 26 capex I think it's somewhere close to 300 crore rupees. So just want to understand what capex we have done till now in upper 26 and what would be your capex for upper 27 in terms of number.

Speaker #4: So in terms of this year we are going to do a close to 200 to 225 crores. Balance balance of this 150 plus some maintenance capex and all kind of the things.

Parakramsinh Jadeja: In terms of this year, we are going to do up close to INR 200 to 225 crore. Balance of this INR 150 plus some maintenance CapEx and all kind of things.

Speaker #3: Okay, so can we assume ₹300 crore capex for this year as well?

[Company Representative] (Dolat Capital Market): Okay. Can we assume again INR 300 crore CapEx for this year as well?

Arafat Saiyed: Okay. Can we assume again INR 300 crore CapEx for this year as well?

Speaker #4: No, it is not going to touch 300. I told you that it will be between 200 and 250.

Parakramsinh Jadeja: No. It is not going to touch INR 300. I told you that INR 200 to 250 in between.

[Company Representative] (Dolat Capital Market): Okay, fine. Thanks. Got it. Thanks. That's it from my side.

Arafat Saiyed: Okay, fine. Thanks. Got it. Thanks. That's it from my side.

Speaker #3: Okay, fine. Thank you. Got it, thanks. That's it from my side.

Speaker #2: Thank you, sir. The next question is from the line of Shweta from I Thought PMS. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Shweta from iThought PMS. Please proceed with your question.

Speaker #6: So firstly a clarification. In the beginning you said that this quarter's capacity utilization is 86 percent. Can you tell me what's the capacity was for that utilization only?

Shweta: Sir, firstly, a clarification. In the beginning you said that this quarter's capacity utilization was 86%. Can you tell me what the capacity was for that utilization number?

Shweta S.: Sir, firstly, a clarification. In the beginning you said that this quarter's capacity utilization was 86%. Can you tell me what the capacity was for that utilization number?

Speaker #4: So basically, it is a 6,000-machine-a-year.

Parakramsinh Jadeja: Basically, it's a 6,000 machine a year.

Speaker #6: Okay. Because if I am not wrong, earlier for FY26 we said around 90% utilization. That's why I wanted to confirm that number.

Shweta: Okay, because if I was not wrong earlier, for FY 2026, we said around like 90% utilization. That's why I wanted to confirm that number.

Shweta S.: Okay, because if I was not wrong earlier, for FY 2026, we said around like 90% utilization. That's why I wanted to confirm that number.

Speaker #4: Yeah correct. So the last year let's say at the end of the year we built 5,000 500 50 machines there.

Parakramsinh Jadeja: Yes, correct. The last year, let's say at the end of the year, we built 5,550 machines there.

Speaker #6: Okay. Okay, sir. Thank you. My question is, even though the ASB declined this quarter, we saw an improvement in the gross margins. So, is that how it is going to be going forward, even as the entry-level machines ramp up with the new capacity?

Shweta: Okay.

Shweta S.: Okay.

Parakramsinh Jadeja: Yeah.

Shweta: Okay, sir. Thank you. My question is, even though the ASP declined this quarter, we saw an improvement in the gross margin. Is that how it is going to be going forward even as the entry-level machines ramp up with the new capacity?

Shweta S.: Okay, sir. Thank you. My question is, even though the ASP declined this quarter, we saw an improvement in the gross margin. Is that how it is going to be going forward even as the entry-level machines ramp up with the new capacity?

Speaker #4: So that's why I am telling you, let's say this: the gross margin, ultimately with all model mix, I have always guided like that. We will be at EBITDA level at 25 percent.

Parakramsinh Jadeja: That's why I'm telling, let's say the gross margin ultimately with all model mix, I always guide it like that. We will be at EBITDA level at 25%. We may sometime go plus, our business model has been ensured like that, we'll be nearby that.

Speaker #4: We may sometimes go plus, but our business model has been ensured in such a way that we'll be nearby that.

Speaker #6: Okay, sir. Lastly, one structural question. Are you seeing any signs of replacement demand, like machines that were imported 20 years back or so, that are now getting swapped with Indian machines?

Shweta: Okay, sir. Lastly, one structural question. Are you seeing any signs of replacement demand, like machines that were imported like 20 years back or something that are getting swapped with Indian machines now?

Shweta S.: Okay, sir. Lastly, one structural question. Are you seeing any signs of replacement demand, like machines that were imported like 20 years back or something that are getting swapped with Indian machines now?

Speaker #4: Yeah there is a lot of new demand are coming. Particularly in the last July we have seen a historically highest order book today now.

Parakramsinh Jadeja: Yeah, there is a lot of new demands are coming, particularly in the last July. We have seen historically highest order book today now. Every area is demand is coming up. We first time in a local market, local equipment is in India, we crossed more than 1,000 machine in one month. Specifically, every industrial area is growing, but particularly the area I'm coming from, let's say Rajkot alone, Jyoti has booked more than 250 machines in July there. It's a massive demand and all day now, we have been witnessing the people, those have been used our machine in 2000 to 2005, they are replacing even new capacity been add on and then many new things are coming there. See, the last year, none of the Indian machine tool company, we were having the capacity. Import has surged. Okay?

Speaker #4: Every every area is is demand is coming up. We first time in a local a local market local it means is in India. We cross more than 1,000 machine in one month.

Speaker #4: And specifically even the every industry area is growing but particularly the area I'm coming from let's say Rajkot alone Jyoti has booked more than 250 machines in a July there.

Speaker #4: So, it's a massive demand, and all. Now, we have been witnessing that the people who have been using our machines from 2000 to 2005, they are replacing, even new capacity being added on, and then many, many new things are coming there.

Parakramsinh Jadeja: It's a massive demand and all day now, we have been witnessing the people, those have been used our machine in 2000 to 2005, they are replacing even new capacity been add on and then many new things are coming there. See, the last year, none of the Indian machine tool company, we were having the capacity. Import has surged. Okay? Import has increased to now, in the last year, has reached to 62% of total India's consumption there.

Speaker #4: See the last year none of the Indian machine tool company we were having the capacity. So import has surge. Okay. Import has increased to now in the last year has reached to 62 percentage of a total India's consumption there.

Parakramsinh Jadeja: Import has increased to now, in the last year, has reached to 62% of total India's consumption there.

Speaker #6: Okay sir. Got it.

Shweta: Okay, sir. Got it.

Shweta S.: Okay, sir. Got it.

Speaker #2: Thank you, ma'am. The next question is from the line of Saurabh Vyas from Systematics. Please proceed with your question. Mr. Saurabh, your line has been unmuted.

Operator: Thank you, ma'am. The next question is from the line of Saurabh Vyas from Systematix. Please proceed with your question. Mr. Saurabh, your line has been unmuted.

Saurabh Vyas: Hello.

Speaker #2: Please proceed with your question.

Operator: Please proceed.

Operator: Please proceed—

Saurabh Vyas: Am I unmuted?

Operator: with your question.

Operator: —with your question.

Speaker #4: Hello sir. Yeah hello. Hi sir. Thanks for the opportunity. So first question regarding the wrong wrong accounting one. So we as of now we took this chance because of the going on investigation in the wrong capacity.

Saurabh Vyas: Hello.

Operator: Yes, sir.

Saurabh Vyas: Hello. Hi, sir. Thanks for the opportunity. First question regarding the Huron accounting one. We, as of now, we took this stance because of the going on investigation in the Huron capacity. I just wanted to understand that if we get this investigation concluded, and if this kind of investigation comes into our favor. Going forward in the next year, we will be again going back to the percentage of completion method or the Huron facility specifically will be accounted as on the basis of deliveries.

Speaker #4: I just wanted to understand that if if we get this investigation concluded and if this investigation comes into our our favor so going forward in the next year we will be again going back to the percentage of completion method or of the wrong facilities specifically will be accounted as on the basis of deliveries.

Speaker #4: No. Basically until that is the now see the principal of account is no more no more connectivity with the today our investigation and all.

Parakramsinh Jadeja: Basically, until that is now, see, the principle of account, is no more connectivity with the today our investigation and all. Basically, the uncertainty is happening due to geopolitical situation and end user certificate is an important parameter there. Previously, it was not that important there. Now, they consider this is the uncertainty of the deliveries. Until that certainty will not been come over there, they will not book. If I get the, let's say, the end user certificate within three months after my order, I can able to book a POC in there also.

Parakramsinh Jadeja: No. Basically, until that is now, see, the principle of account, is no more connectivity with the today our investigation and all. Basically, the uncertainty is happening due to geopolitical situation and end user certificate is an important parameter there. Previously, it was not that important there. Now, they consider this is the uncertainty of the deliveries. Until that certainty will not been come over there, they will not book. If I get the, let's say, the end user certificate within three months after my order, I can able to book a POC in there also.

Speaker #4: So basically the uncertainty is happening due to geopolitical situation and end use of certificate is a important parameter there. Previously it was not that important there.

Speaker #4: Now, they consider this is an uncertainty of the deliveries, so until that certainty will not come over there, they will not book.

Speaker #4: If I get the, let's say, the end-use certificate within three months of my order, I can also book a POCM there.

Speaker #4: Got it. Got it. Got it. And just sir one more question on the on the new capex. Basically we will be adding around 10,000 of machine capacity in in the coming quarter by September.

Saurabh Vyas: Got it. Just, sir, one more question on the new capacity. Basically, we will be adding around 10,000 of machine capacity in the coming Q by September. What number of machines that are we looking from this incremental capacity to be booked by FY2027?

Speaker #4: What what number of machines that are we looking from this incremental capacity to be booked by FY 27? So what I said that we will we will be grown up by 25 to 30 percent this year.

Parakramsinh Jadeja: What I said that we will be grown up by 25% to 30% this year. Okay? That already we have estimated, and we have been given the guideline there. You can make calculation based on that because right now, last year, we have built almost 90% of the capacity. You can say that we are going to cross more than 8,000 machines this year.

Speaker #4: Okay. That has already been estimated, and we have been given the guideline there. So you can make the calculation based on that, because right now, last year, we have built almost 90% of our capacity.

Speaker #4: So, you can say that we are going to cross more than 8,000 machines this year. 8,000 machines. Perfect. All right, sir. Thank you so much.

Saurabh Vyas: 8,000 machines. Perfect. All right, sir. Thank you so much. Thank you.

Speaker #4: Thank you.

Speaker #2: Thank you sir. The next question is from the line of Verak Gandhi from Povilio Investment Managers LLP. Please proceed with your question.

Parakramsinh Jadeja: Thanks.

Operator: Thank you, sir. The next question is from the line of Tarak Gandhi from Portfolio Investment Managers LLC. Please proceed with your question.

Speaker #4: Yes, hello, sir. Thank you for taking this question, and thank you for addressing all the questions very clearly. I just had one question on the supply and subsidiary.

Tarak Gandhi: Yes. Hello, sir. Thank you for taking this question, and thank you for addressing all the questions very clearly. I just had one question on the foreign subsidiary. First, can you just explain me the rationale behind changing the accounting policy? Secondly, the total loss that the subsidiary has recorded, approximately of INR 30 crores. Can you just give us the bifurcation of how much that loss has occurred due to operational and probably delay in sales issues and how much is purely due to accounting purposes?

Prerak Gandhi: Yes. Hello, sir. Thank you for taking this question, and thank you for addressing all the questions very clearly. I just had one question on the foreign subsidiary. First, can you just explain me the rationale behind changing the accounting policy? Secondly, the total loss that the subsidiary has recorded, approximately of INR 30 crores. Can you just give us the bifurcation of how much that loss has occurred due to operational and probably delay in sales issues and how much is purely due to accounting purposes?

Speaker #4: First, can you just explain to me the rationale behind changing the accounting policy, and secondly, the total loss that the subsidiary has recorded—approximately 30 crores.

Speaker #4: Can you just give us the bifurcation how much that loss has occurred due to operational and probably you know delaying sales issues and how much is purely due to accounting purposes?

Speaker #4: So, basically, I'll tell you that, let's say this year—the first year—last year, first quarter, we did close to $7 million turnover.

Parakramsinh Jadeja: Basically, I tell you that, let's say this year, the first year, last year, first quarter, we did close to INR 7 million turnover. This year also, we have manufactured the machine up to INR six and a half million, but we are able to build up to INR 3 million there. Additional INR 35 crore revenue we have missed. But all the cost has been incurred there. Okay? That is the difference have been seen into a INR 30 crores of a gap there.

Speaker #4: This year also, we have manufactured the machine up to 6 and a half, but we are able to build up to 3 million there.

Speaker #4: So, additional Rs. 35 crore revenue we have missed. But all the cost has been anchored there. Okay. That is the difference you are seeing; there is around a Rs. 30 crore gap there.

Speaker #4: Okay. And so the rationale behind changing the accounting policy? See the rationale behind the accounting policy is that today now this end use of certificates okay is getting too much late there.

Tarak Gandhi: Okay. Sir, the rationale behind changing the accounting policy?

Prerak Gandhi: Okay. Sir, the rationale behind changing the accounting policy?

Parakramsinh Jadeja: The rationale behind the accounting policy is that today, now this end user certificate is getting too much late there. This investigation has been started. The auditor has taken a very conservative steps and based on the accounting standard and French GAAP over there, any percentage of completion method, if any of your dispatches, if there is uncertainties are there, you are not able to book those revenues. Uncertainties means that you have received the order, even you have received the funds also, but your government authorities, they will not clear, you are not able to dispatch. You are not able to book this revenue to be there.

Speaker #4: Okay. And with this investigation has been started so the auditor has taken a very conservative steps and based on the accounting standard and French gap over there any percentage of completion method if any of your dispatches is there is uncertainties are there you are not able to book those revenues basically and all uncertainty means that you have received the order even you have received the funds also but your government authorities they will not clear you are not able to dispatch.

Speaker #4: So you are not able to book this revenue to be there. Okay. So just one clarification. So we are just awaiting the certification and you know completion of this investigation.

Tarak Gandhi: Just one clarification. We are just awaiting the certification and the completion of this investigation. Once these two things get sorted out.

Prerak Gandhi: Just one clarification. We are just awaiting the certification and the completion of this investigation. Once these two things get sorted out—

Speaker #4: Once these two things get sorted out, we'll just—see, both are—both things are different. You remember one thing: investigation is a different parameter, and the end use of certificates is different there.

Parakramsinh Jadeja: Both things are different. You remember one thing. Investigation is a different parameter and end user certificates are different there.

Speaker #4: Yes, okay. And so any time an end-use certification or dual-use end-use certification is required, we need to take that for any exports from Huron to there.

Tarak Gandhi: Okay.

Prerak Gandhi: Okay—

Parakramsinh Jadeja: End-user certification and dual-use end-user certification, we need to take any exports from Huron to there. Not today, even in past also. Previously, we used to get the certificates very fast. Today, the timeline has increased there.

Speaker #4: Not today even in PAC also. Okay. But previously we used to get the certificates very fast. Today the timeline has increased there basically. So any reason for the timeline to stretch?

Tarak Gandhi: Sir, any reason for the timeline to stretch?

Prerak Gandhi: Sir, any reason for the timeline to stretch?

Speaker #4: Geo, geo, geopolitical situation. Those guys are all there. There is a Defense Ministry. They check every individual user. Let's say today, if I receive a machine order from HAL, okay, and if I have to export, let's say, give machines to HAL, I need—and I'm using a Siemens controller.

Parakramsinh Jadeja: Geopolitical situation.

Tarak Gandhi: Okay.

Prerak Gandhi: Okay.

Parakramsinh Jadeja: Those guys are all there. It's a defense ministry. They check every individual user. Let's say today, if I receive the machine order from HAL, and if I have to export, let's say give machines to HAL, and I'm using a Siemens controller. Siemens has to take this permission for HAL from German defense government there. From government defense there. They will give the clearance based on the users of these machines. Every time they ask something, we go to our customer. Let's say we are right now waiting for many of our Chinese customers and Turkish customers to getting the clearance over there. Once the authority ask something, questions, we have to go again to that customer and getting the documents and going back. This is how the process has been increased there.

Speaker #4: So Siemens has to take this permission for HAL from German defense government there. Okay. From government defense there. Okay. They will give the clearance based on the users of these machines.

Speaker #4: Okay. So every time they ask something we go to the customer. Let's say we are right now waiting for many of our Chinese customers and Turkish customers to getting the clearance over there.

Speaker #4: Okay. So once the authority ask something questions we have to go again to that customers and getting the documents and going back. So this is how it's a process has been increased there.

Speaker #4: Okay, that is quite insightful, sir. Thanks a lot. Just one thing—one more thing. On the investigation side, can you give any timeline as to when you know this entire thing will get sorted out?

Tarak Gandhi: Okay. That is quite insightful, sir. Thanks a lot. Just one, if I may squeeze one more thing. On the US release side, can you give any timeline as to when this entire thing will get sorted out?

Prerak Gandhi: Okay. That is quite insightful, sir. Thanks a lot. Just one, if I may squeeze one more thing. On the US release side, can you give any timeline as to when this entire thing will get sorted out?

Speaker #4: It's we will be normalize these things basically. I I don't think so we are not seeing very near future to be let's say they are not geopolitical situation is such that the we don't see that it has been finished in the one month or two months like that.

Parakramsinh Jadeja: We will be normalizing things, basically. I don't think so. We are not seeing very near future to be, let's say, Geopolitical situation is such that we don't see that it is being finished in one month or two months like that. We are sure the way authorities have been responding to us about the licensing and all, our team went and meet them. Definitely, they are going to improve the timeline over there.

Speaker #4: Okay. But we are sure the the way authorities are been responding to us about the licensing and all they are also we also our team and went and meet them definitely they are going to improve the timeline over there.

Speaker #4: Got it. Thank you so much. That is very insightful. All the best. Yeah. Yeah. Yeah.

Tarak Gandhi: Got it. Thank you so much. That is very insightful. All the best.

Prerak Gandhi: Got it. Thank you so much. That is very insightful. All the best.

Parakramsinh Jadeja: Yes.

Speaker #2: Thank you sir. The next question is from the line of Aniket Jen from Anand Rathi. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Aniket Jain from Anand Rathi. Please proceed with your question.

Speaker #3: Hi, thank you for taking my question again. I wanted to check whether these export licenses are required when we are manufacturing the machines in India and exporting from India as well.

Aniket Jain: Hi. Thank you for taking my question again. I wanted to check whether these export licenses are required when we are manufacturing the machines in India and exporting from India as well. Is it just a Huron-specific issue?

Speaker #3: Or is it just the Huron-specific issue?

Speaker #4: No. It's every every machine to company. Let's say today I'm in India and whatever the machines I'm manufacturing the machines are simultaneously five axes and if I have to supply to any of the customers okay and the the license let's say right now I'm buying this controller from Siemens.

Parakramsinh Jadeja: No. Every machine tool company. Let's say, today I'm in India, whatever the machines I'm manufacturing, the machines are simultaneously 5-axis. If I have to supply to any of the customers. The license, let's say right now, I'm buying this controller from Siemens. If tomorrow I buy controller from Fanuc or Siemens anywhere, they have to obtain this license from their authority to be there.

Parakramsinh Jadeja: The license, let's say right now, I'm buying this controller from Siemens. If tomorrow I buy controller from Fanuc or Siemens anywhere, they have to obtain this license from their authority to be there.

Speaker #4: If tomorrow I buy controller from Fanuc or a Siemens anywhere. So they have to obtain this license from their authority to be there.

Speaker #3: Understood. So.

Aniket Jain: Understood.

Aniket Jain: Understood—

Speaker #4: So right now Huron Huron is in Huron is in Europe. So they are making a machine. So they have to take there. Okay.

Parakramsinh Jadeja: Right now, Huron is in Europe, they are making a machine, they have to take there.

Speaker #3: Okay. Okay.

Aniket Jain: Okay.

Aniket Jain: Okay—

Speaker #4: So I'm buying a controller from Siemens. So Siemens is taking this basically India for first there.

Parakramsinh Jadeja: I'm buying a controller from Siemens, so Siemens is taking this basically, India purpose there.

Speaker #3: Understood, sir. Got it. This was the question.

Aniket Jain: Understood, sir. Got it. That's all the question.

Speaker #2: Thank you, sir. The next question is from the line of Abhishek Jen from Chris PMS. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Abhishek Jain from Crisp PMS. Please proceed with your question.

Abhishek Jain: Thanks for opportunity, sir. Sir, as you mentioned that you are not able to book around INR 35 crore revenue in this quarter, otherwise revenue to be around INR 65 crore.

[Analyst]: Thanks for opportunity, sir. Sir, as you mentioned that you are not able to book around INR 35 crore revenue in this quarter, otherwise revenue to be around INR 65 crore.

Speaker #4: Thanks for opportunity sir. Sir as you mentioned that you have you are not able to book around 35 crore revenue in this quarter. Otherwise revenue to be around 65 crore.

Speaker #2: Sorry to interrupt Abhishek sir. May we request? Sorry to interrupt Abhishek sir. Your voice is very low.

Operator: Sorry to interrupt, Abhishek, sir. May we request? Sorry to interrupt, Abhishek, sir. Your voice is very low.

Speaker #4: Hello are you able to hear me now?

Abhishek Jain: Hello. Are you able to hear me now?

[Analyst]: Hello. Are you able to hear me now?

Speaker #5: Yes. Now it's correct.

Parakramsinh Jadeja: Yes. Now is correct.

Operator: Yes, sir.

Speaker #2: Yes sir.

Speaker #4: Sir, as you mentioned, you were not able to book around ₹35 crore of revenue in this quarter. Otherwise, revenue would have been around ₹65 crore for the Huron.

Abhishek Jain: Sir, as you mentioned that you are not able to book around INR 35 crore revenue in this quarter, otherwise revenue to be around INR 65 crore on the Huron. Just wanted to understand what is your full year guidance for the revenue of Huron in FY2027 and what EBITDA margin can we expect from this year?

[Analyst]: Sir, as you mentioned that you are not able to book around INR 35 crore revenue in this quarter, otherwise revenue to be around INR 65 crore on the Huron. Just wanted to understand what is your full year guidance for the revenue of Huron in FY2027 and what EBITDA margin can we expect from this year?

Speaker #4: So just so just wanted to understand what's your full year guidance for the revenue of of Huron in FY27 and what margin EBITDA margin can we expect from this year?

Speaker #5: Okay, so basically that's the correct question now. So, Huron, we are expecting close to ₹300 to ₹325 crore of revenue this full year.

Parakramsinh Jadeja: Okay. Basically, that is the correct question now. Huron, we are expecting to close to INR 300 to 325 crore of revenue this full year.

Speaker #4: And on the margin side, what margin can we make on the Huron in this year?

Abhishek Jain: On the margin side, what margin we can make on the Huron in this year then?

[Analyst]: On the margin side, what margin we can make on the Huron in this year then?

Speaker #5: So basically, at the EBITDA level, we will reach the Huron level at close to 8 to 10 percent.

Parakramsinh Jadeja: Basically, at EBITDA level, we will reach at Huron level at close to 8% to 10%.

Speaker #4: 8 to 10 percent.

Abhishek Jain: 8% to 10%?

[Analyst]: 8% to 10%?

Speaker #5: Yeah.

Parakramsinh Jadeja: Yeah.

Speaker #4: Okay, sir. And my next question is on the CNC controller. As you are developing your own CNC controller, I just wanted to understand what the progress is right now and when we can expect the commercial deployment of the CNC controller.

Abhishek Jain: Okay, sir. My next question on the CNC controller. As you are developing your own CNC controller, just wanted to understand what is the progress right now and when we can expect commercial deployment of CNC controller.

[Analyst]: Okay, sir. My next question on the CNC controller. As you are developing your own CNC controller, just wanted to understand what is the progress right now and when we can expect commercial deployment of CNC controller.

Speaker #5: So basically, we are manufacturing, let's say, designing and developing drives, motors, CNC. Today, our HMI is ready, and I think commercialization will happen in the next two years' time.

Parakramsinh Jadeja: Basically, we are manufacturing, let's say, designing and developing drives, motors, CNC. Today our HMI is ready, and I think commercialization will happen in the next two years' time.

Speaker #4: So when can we expect the CAPEX for this commercial production of the CNC controller?

Abhishek Jain: When can we expect the CapEx for this commercial production of the CNC controller?

[Analyst]: When can we expect the CapEx for this commercial production of the CNC controller?

Speaker #5: So, right now we have already applied for the PLI, okay, and we are eligible and we have applied there. And already now, plans are ready.

Parakramsinh Jadeja: Right now we have already applied for the PLI. We are eligible, and we have been applied there, and we already now our plans are ready. Once we will get the clearance, we will make a plan to commence there.

Speaker #5: Once we will get the clearance we will make a plan to to commence there.

Speaker #4: And what would be the incentives for the PLI, sir, in terms of the percentage?

Abhishek Jain: What would be the incentives for the PLI, sir, in terms of the percentage?

[Analyst]: What would be the incentives for the PLI, sir, in terms of the percentage?

Speaker #5: So today in terms of a capital subsidy is close to 25 percentage from the central government and similar whatever the central government are giving is the same amount made by the state government.

Parakramsinh Jadeja: Today, in terms of a capital subsidy, is close to 25% from the central government. Similar, whatever the central government are giving is the same amount matched by the state government. You can consider close to 50% there.

Speaker #5: So you can consider close to 50 percent there.

Speaker #4: Got it, sir. And my last question is on that customer qualification program which you are running with the semiconductors and with the Apples. I just wanted to understand what is the progress over there.

Abhishek Jain: Got it, sir. My last question on that customer qualification program, which you are running with the semiconductors and with the Apple. Just wanted to understand what is the progress over there.

[Analyst]: Got it, sir. My last question on that customer qualification program, which you are running with the semiconductors and with the Apple. Just wanted to understand what is the progress over there.

Speaker #5: So already many customers, we have been qualified, and for many, we are designing and developing the processes for them. Yeah. So it is going greatly. In the beginning, I also said that we have more than 100–200 people connected with them and developing many more products for them, basically.

Parakramsinh Jadeja: Already many customers we have been qualified, and many we are designing and developing the processes for them. Yeah. It is going greatly. In beginning also, I said that we have more than 100, 200 people are connected with them and developing many more product for them, basically.

Parakramsinh Jadeja: Already many customers we have been qualified, and many we are designing and developing the processes for them.

[Analyst]: Yeah.

Parakramsinh Jadeja: It is going greatly. In beginning also, I said that we have more than 100, 200 people are connected with them and developing many more product for them, basically.

Speaker #4: Okay, sir. Thank you, sir. That's all from my side.

Abhishek Jain: Okay, sir. Thank you, sir. That's all from my side.

[Analyst]: Okay, sir. Thank you, sir. That's all from my side.

Speaker #5: Thank you.

Parakramsinh Jadeja: Thank you.

Speaker #2: Thank you, sir. The next question is from the line of Kamlesh from Lotus Asset Managers. Please proceed with your question.

Operator: Thank you, sir. The next question is on the line of Kamlesh from Lotus Asset Management. Please proceed with your question.

Speaker #3: Yeah, thanks for the opportunity, sir. Sir, I'm apologizing for the question. Sir, what processes are we taking up in terms of improving our HR and our financial operations, particularly on the CFO side, and our audit system? Because, you may be looking at a lot of these things circulating in the media and social media as well.

Kamlesh: Yeah, thanks for the opportunity, sir. Like, I'm apologizing for the question. Sir, what processes we are taking up, like, in terms of improving our HR, our financial operations, particularly CFO side, and our audit system. You may be looking at a lot of these things circulating on the media, social media as well. What steps we are taking to improve our systems, internal systems? Like, given the fact that we are in such a good position and we are doing remarkably well, like, 10% market share in terms of CNC market. Like, internally, what we are doing better on improving the processes. I really believe that you should change the auditor. These steps should be taken because it will further improve our visibility in the investor community, because these are literally dragging our overall perception.

Kamlesh Bagmar: Yeah, thanks for the opportunity, sir. Like, I'm apologizing for the question. Sir, what processes we are taking up, like, in terms of improving our HR, our financial operations, particularly CFO side, and our audit system. You may be looking at a lot of these things circulating on the media, social media as well. What steps we are taking to improve our systems, internal systems? Like, given the fact that we are in such a good position and we are doing remarkably well, like, 10% market share in terms of CNC market. Like, internally, what we are doing better on improving the processes. I really believe that you should change the auditor. These steps should be taken because it will further improve our visibility in the investor community, because these are literally dragging our overall perception.

Speaker #3: So what steps we are taking to improve our systems internal systems because on the on the like say given the fact that we are in such a good position and we are doing remarkably well like say 10 percent market share in terms of CNC market.

Speaker #3: So what like say internally what we are doing better like say on the on improving the processes I I ideally believe that you should change the auditor.

Speaker #3: These steps should be taken because it will further improve our visibility in the investor community because these are literally dragging our overall perception.

Speaker #4: So first of all Kamlesh ji I will tell you one thing. The improvement is there always is an continuous improvement. Okay. And this is the this is the ongoing process all the time.

Parakramsinh Jadeja: First of all, Kamleshji, I'll tell you one thing. The improvement is always a continuous improvement. Okay? This is the ongoing process all the time. Every company has been growing from small to mid-size to bigger size, and they evaluating and, let's say, improving every day by day there. Okay? You look at with your perception, and we are also taking into account on this area. We are very much, let's say, always in improvement side in terms of the quality, in terms of the processes. We are an ISO 9000 company. If we are not in a good, in terms of these HR best practices and all this, we cannot have a work with the world's largest and biggest customers to be there. They will not qualify to work there.

Speaker #4: Every company is is been growing from small to meet size to bigger size and they evoluting and let's say improving every day by day there.

Speaker #4: Okay. So you will look at with your perception and we are also taking into account on this area but we are very much let's say always in improvement side in terms of a quality in terms of a processes we are ISO 9000 company is a fully and if you are if we are not in a good in terms of a this HR best practices and all this so we cannot have a walk with the word largest and biggest customers to be there.

Parakramsinh Jadeja: If we are not in a good, in terms of these HR best practices and all this, we cannot have a work with the world's largest and biggest customers to be there. They will not qualify to work there. If you look at that as a customer base and all, if our processes are not into place, none of the customers. Your suggestion, we will take into consideration, and we will see that where we can have. Always we are improving, and we will further improve to be more there.

Speaker #4: They will not qualify to work there. If you look at that, our customer base and all of our processes are not yet in place. None of the customers—but your suggestion we will take into consideration, and we will see where we can—always we are improving and we will further improve to be more there.

Parakramsinh Jadeja: If you look at that as a customer base and all, if our processes are not into place, none of the customers. Your suggestion, we will take into consideration, and we will see that where we can have. Always we are improving, and we will further improve to be more there.

Speaker #3: Yeah. I appreciate that sir. And secondly and and we really look forward to that because despite having such a strong performance we continue to hear like say lot of complaints on that front.

Kamlesh: Yeah, I appreciate that, sir. Secondly, we really look forward to that, because despite having such a strong performance, we continue to hear, like, a lot of complaints on that front.

Kamlesh Bagmar: Yeah, I appreciate that, sir. Secondly, we really look forward to that, because despite having such a strong performance, we continue to hear, like, a lot of complaints on that front.

Speaker #4: Kamlesh Kamlesh bhai without a without a people performance never comes understand that.

Parakramsinh Jadeja: Kamleshbai, without a people, performance never comes. Understand that.

Speaker #3: Yeah. Yeah. I do appreciate that.

Kamlesh: Yeah. I do appreciate that, sir.

Kamlesh Bagmar: Yeah. I do appreciate that, sir—

Speaker #4: Okay. Without good quality—without the good quality work of the people, we should not have been able to reach this position there.

Parakramsinh Jadeja: Okay. Without a good quality work of the people, we should not able to reach on this position there.

Kamlesh: Okay, sir. Sir, on the Huron side, you told that you would be doing INR 300 odd crore in this year and 10% to 11% margin. I believe that is on the Huron side only.

Kamlesh Bagmar: Okay, sir. Sir, on the Huron side, you told that you would be doing INR 300 odd crore in this year and 10% to 11% margin. I believe that is on the Huron side only—

Speaker #3: Okay sir. And sir on the on the Huron side you told that we would be doing 300 odd crore in this year. And 10 to 11 percent margin.

Speaker #3: So I believe that is on the Huron side only and the.

Speaker #4: I said 8 to 10 up. 10 to up, 10 to 12 करके बढ़ा मत दो. I said 8 to 10, very clear.

Parakramsinh Jadeja: I said eight to 10. 10 to 12

Parakramsinh Jadeja: I said eight to 10. 10 to 12 [Foreign language]—

Kamlesh: No, I'm trying to understand that. That is only on the Huron standalone basis. Whatever components which we are sending from India, that would be having their own 20% to 25% margin built in that.

Kamlesh Bagmar: No, I'm trying to understand that. That is only on the Huron standalone basis. Whatever components which we are sending from India, that would be having their own 20% to 25% margin built in that.

Speaker #3: No no I'm I'm trying to understand that. That is only on the Huron standalone basis. So whatever components which we are sending from India so that would be having their own 20 20 25 percent margin built in that.

Speaker #4: Absolutely.

Parakramsinh Jadeja: Absolutely.

Parakramsinh Jadeja: Absolutely—

Speaker #3: For a company for a company as a whole on 300 crore would we be making like say 25 30 percent margin because the machines in Huron are.

Kamlesh: For a company as a whole, on INR 300 crore, would we be making, like say, 25% to 30% margin.

Kamlesh Bagmar: For a company as a whole, on INR 300 crore, would we be making, like say, 25% to 30% margin because—

Parakramsinh Jadeja: Absolutely

Parakramsinh Jadeja: Absolutely.

Kamlesh: The machines in Huron are.

Kamlesh Bagmar: —the machines in Huron are—

Parakramsinh Jadeja: Absolutely.

Speaker #4: Absolutely.

Speaker #3: Yeah. So 10 to 10 odd percent is primarily on the Huron. Standalone basis.

Kamlesh: Yeah. 10 odd % is primarily on the Huron standalone basis.

Kamlesh Bagmar: Yeah. 10 odd % is primarily on the Huron standalone basis.

Speaker #4: I said I said that Huron that someone has asked to Huron performance. So I say that Huron level there.

Parakramsinh Jadeja: I said that Huron. Someone has asked to Huron performance, so I said at Huron level there.

Speaker #3: Okay. And so secondly, on this one, the percentage of completion method—when I go to your annual report for FY25, we used to have been following that practice in accounting treatment as well.

Kamlesh: Okay. Sir, secondly, like on this one, percentage of completion method. When I go to your annual report for FY 2025, we used to have been following that practice in accounting treatment as well, revenue recognition. I'm really confused that whether it was adopted in FY 2026 itself or because it has been the practice in the previous year as well. I'm really confused on that part, whether we have followed now or it was there in earlier years as well.

Kamlesh Bagmar: Okay. Sir, secondly, like on this one, percentage of completion method. When I go to your annual report for FY 2025, we used to have been following that practice in accounting treatment as well, revenue recognition. I'm really confused that whether it was adopted in FY 2026 itself or because it has been the practice in the previous year as well. I'm really confused on that part, whether we have followed now or it was there in earlier years as well.

Speaker #3: Revenue recognition. So, I'm really confused about whether it was adopted in FY26 itself, or if it has been the practice in the previous year as well.

Speaker #3: So I'm really confused on that part whether we have followed now or it was there in earlier years as well. So

Speaker #4: Kamlesh bhai this this practice is in Huron since last 20 years.

Parakramsinh Jadeja: Kamleshbai, this practice is in Huron since last 20 years.

Speaker #3: Yeah.

Kamlesh: Yeah.

Kamlesh Bagmar: Yeah.

Speaker #4: Okay. And that is a this is still exist only one condition has been aid. Okay. And that is I I I'm telling you that only once uncertainties that to be end user certificate.

Parakramsinh Jadeja: Okay? That still exists. Only one condition has been aid. Okay? That is, I am telling you that only once uncertainty is that to be end user certificate. Okay? Once the end user certificate given by the government, we will add on to a POC in there. It will be continued there. It has not been closed. Okay? This has not been changed anything. It has been modified. The accounting team has been modified there.

Speaker #4: Okay. Once the end user certificate is given by the government, we will add on to a POCM there. So it will continue there.

Speaker #4: It is not been closed. Okay. And this is not been change anything. It is in modified the accounting team has been modified there.

Speaker #3: Okay. Great sir. Thanks a lot.

Kamlesh: Okay, great, sir. Thanks a lot.

Kamlesh Bagmar: Okay, great, sir. Thanks a lot.

Speaker #4: Okay.

Parakramsinh Jadeja: Okay.

Speaker #2: Thank you sir. The next question is from the line of Sanjay from Bastion Research. Please proceed with your question.

Operator: Thank you, sir. The next question is on the line of Sanjay from Bastion Research. Please proceed with your question.

Sanjay: Thank you so much, sir, for the opportunity. Sir, I wanted to understand that, what are we expected since our new facility is going live in Q2 FY2027. Q1 FY2027 should see the jump in order intake, while sequentially from Q4 FY2026 to Q1 FY2026, when we see the order intake fell by 15%. Can you please throw some light on that? How should we view this?

Sanjay Ladha: Thank you so much, sir, for the opportunity. Sir, I wanted to understand that, what are we expected since our new facility is going live in Q2 FY2027. Q1 FY2027 should see the jump in order intake, while sequentially from Q4 FY2026 to Q1 FY2026, when we see the order intake fell by 15%. Can you please throw some light on that? How should we view this?

Speaker #3: Thank you so much sir for the opportunity. Sir I wanted to understand that you know what are we expected since our new facility is going live in Q2 FY27.

Speaker #3: So Q1 FY27 should see the jump in order intake. While sequentially from Q4 FY26 to Q1 FY26 when we see the order intake trail by 15 percent.

Speaker #3: So so can you please throw some light on that how should we view this?

Speaker #4: So basically we are already having a stretch order book. We have a very large order book compared to the our execution today. And every quarter let's say today if you see that in a last couple of quarters we are consciously let's say what we are dispatching we are increasing more than that.

Parakramsinh Jadeja: Basically, we are already having a stretch order book. We have a very large order book compared to our execution today. Every quarter, let's say today, if you see that in the last couple of quarters, we are consciously, let's say, what we are dispatching, we are increasing more than that. Okay. Even this quarter also, we have close to INR 510 crore is dispatched, and we have INR 600 crore is the order book there. Our customer also look at that. Once our execution capability will increase, we can book further more then. Definitely we will see in the last quarter to be more order intake, because that will be our customers also become very confident, then only they will place us to order on time deliveries to be there.

Speaker #4: Okay. Even this year this this quarter also we have a close to a close to 510 crores is a dispatch and we have a 600 crores is a is a order book there.

Speaker #4: And our customer also look at that once the our execution capability will increase we can book further more then. So definitely we will see in a last quarter to be more order intake because that will be our customers also become a very confident then only they will place us to order on on on time deliveries to be there.

Speaker #3: Okay. Sir my another question would be as you as you said that Q1 to Q1 should not be a comparison I understand that. But on a sequential basis we are comparable and the and the capacity is already being live going live on you know building up.

Sanjay: Okay, sir, my another question would be, as you said that Q1 to Q1 should not be a comparison, I understand that. On a sequential basis, we are comparable and the capacity is already going live on, building up. The cost on that front is already building up, right. When we see on sequential basis, our margin has been down by 320 basis points. This reflects some of the point you said that because of EUR on INR 35 crore. That's attributed primarily to EUR. Otherwise, our margin would intact on that basis. Is that understanding right?

Sanjay Ladha: Okay, sir, my another question would be, as you said that Q1 to Q1 should not be a comparison, I understand that. On a sequential basis, we are comparable and the capacity is already going live on, building up. The cost on that front is already building up, right. When we see on sequential basis, our margin has been down by 320 basis points. This reflects some of the point you said that because of EUR on INR 35 crore. That's attributed primarily to EUR. Otherwise, our margin would intact on that basis. Is that understanding right?

Speaker #3: So, the cost on that front is already building up, right? But when we see on a sequential basis, our margin has not been down by 320 basis points.

Speaker #3: So this reflects some of the some of the point you said that because of Huron 35 crores. So that's that's attributed primarily to Huron.

Speaker #3: Otherwise, our margin would intake on that basis. Is that understanding right?

Parakramsinh Jadeja: Absolutely. You can see, let's say, on the same standalone business, I have a 27.5% margin to be there in this quarter itself.

Speaker #4: Absolutely. You can see the my let's say the on a same standalone business I have a 27 and a half percentage margin to be there.

Speaker #4: In this quarter itself.

Speaker #3: Okay, sir. Thank you so much. I really appreciate that.

Sanjay: Okay, sir. Thank you so much. I am

Sanjay Ladha: Okay, sir. Thank you so much. I am

Operator: Thank you, sir. The next question is on the line of Amit from Clear Blue Capital. Please proceed with your question.

Speaker #4: Thank you.

Speaker #2: Thank you sir. The next question is from the line of Amit from Clear Blue Capital. Please proceed with your question.

Speaker #4: Hi. Am I audited? Yeah.

Amit: Hi, am I audible?

Amit Thawani: Hi, am I audible?

Parakramsinh Jadeja: Yeah.

Speaker #2: Yes sir.

Operator: Yes, sir.

Speaker #4: Just trying to understand this end user certificate. It is only for 5-axis, right? Absolutely. So it is not just for 5-axis. For 5-axis also, there are many, many conditions there.

Amit: Just want to understand this end user certificate. It is only for 5 axis, right?

Amit Thawani: Just want to understand this end user certificate. It is only for 5 axis, right?

Parakramsinh Jadeja: Absolutely.

Amit: So it is not-

Amit Thawani: So it is not—

Parakramsinh Jadeja: Five axis also, there is many conditions are there. Let's say first is the five axis simultaneously or, let's say, there are many long guidelines by you and all. Certain precision also is in part of that.

Speaker #4: Let's say first is a five access simultaneously. Or any let's say there are there are many long guidelines by EU and all. Certain precision also is an part of that.

Speaker #3: So none of our standalone sales require any kind of end user certificate right?

Amit: None of our standalone sales require any kind of end user certificate, right?

Amit Thawani: None of our standalone sales require any kind of end user certificate, right?

Speaker #4: Standalone in India?

Parakramsinh Jadeja: Standalone in India?

Speaker #3: Let's see Jyoti sales to some some of Jyoti.

Amit: Let's say, Jyoti sales to some of

Amit Thawani: Let's say, Jyoti sales to some of Jyoti—

Parakramsinh Jadeja: We also required.

Speaker #4: We also we also required. We also required.

Amit: Okay. Is there some kind of, there also, is there some lag in the revenue recognition?

Amit Thawani: Okay. Is there some kind of, there also, is there some lag in the revenue recognition?

Speaker #3: Okay. Okay. So is there some kind of there also is there some lag in the revenue recognition? Or there no we have a we have a we have a all this in India particularly we are having a India and Germany we have a very good repo systems and all.

Parakramsinh Jadeja: No. In India particularly, we are having India and Germany, we have a very good repo systems and all. We are able to get it very fast over there.

Speaker #3: So we are able to get it very fast over there. Understood. Understood. That is my question.

Amit: Understood. Thanks. That is my question.

Amit Thawani: Understood. Thanks. That is my question.

Parakramsinh Jadeja: Okay.

Speaker #4: Yeah.

Speaker #2: Thank you sir. The next question is from the line of Ravindranath Nayak from Nirmal Bank Securities. Please proceed with your question.

Operator: Thank you, sir. The next question is on the line of Rabindra Nath Nayak from Nirmal Bang Securities. Please proceed with your question.

Speaker #3: Thank you sir. Thank you for the opportunity again. Sir I actually and the plant visit you mentioned that 200 crores of order is expected from NBDA.

Rabindra Nath Nayak: Thank you, sir. Thank you for the opportunity. Sir, actually, in the plant visit, you mentioned that a INR 200 crores of order is expected from MBDA. What is the status of that now?

Speaker #3: What is the status of that now?

Speaker #4: So already out of that few orders we have received in this quarter. And and many are are are in coming quarters we are expecting there.

Parakramsinh Jadeja: Already, out of that few orders we have received in this quarter. Many are in the coming quarters we are expecting there.

Speaker #3: Okay. Okay. And sir NBDA is also standing here in with L&T they have already set up the capacity in Coimbatore so whether we have actually can the opportunity there to market our product?

Rabindra Nath Nayak: Sir, MBDA is also presenting here in with L&T, they have already set up the capacity in Coimbatore. Whether we have actually the opportunity there, to market our product?

Speaker #4: Absolutely. Many European companies are coming into India and we are all on the preferred supplier to Dell list—not only this one. Many more are coming in the aerospace and defense area to be there.

Parakramsinh Jadeja: Absolutely. Many European companies are coming in India, and we are all in preferred supplier to their list. Not only this one, many more are coming in aerospace and defense area to be there.

Speaker #3: Okay. And sir again sir the BFW is already set up with 10,000 machine capacity in Hosur what is the you know how the competitive scenario is going to shape up because we are also developing let's say at the same time so can you please throw some light on that what is the competitive scenario is going to curb up?

Rabindra Nath Nayak: Sir, again, sir, the VFW is already set up with 10,000 machine capacity in Hosur. How the competitive scenario is going to shape up? Because we are also developing at the same time. Can you please throw some light on that, where the competitive scenario is going to crop up?

Speaker #4: Right now, Ravindraji, in every business there is competition, and we are coming up here always—we have a very tough fight and tough competition always.

Parakramsinh Jadeja: Right now, Rabindra ji, always every business, there is a competition, and we are coming up here with always we have a very fight and tough competition always. Okay? Yeah, it is a part and parcel of the life.

Parakramsinh Jadeja: Right now, Rabindra ji, always every business, there is a competition, and we are coming up here with always we have a very fight and tough competition always. Okay?

Speaker #4: Okay.

Speaker #3: Okay.

Speaker #4: So yeah it is it is it is a part and parcel of the life.

Rabindra Nath Nayak: Okay sir.

Parakramsinh Jadeja: Yeah, it is a part and parcel of the life.

Speaker #3: Okay. And sir, are they also manufacturing the 3X machines in this new facility, or are they manufacturing something else?

Rabindra Nath Nayak: Okay. Sir, they are also manufacturing the TH machines in this new facility or they are manufacturing something other lower category?

Parakramsinh Jadeja: I cannot tell about the strategy of my competitors there.

Speaker #4: I I I can I cannot I cannot tell about the strategy of my competitors there.

Speaker #3: Okay. Okay. Okay sir. Thank you very much. Thank you.

Rabindra Nath Nayak: Okay. Okay, sir. Thank you very much. Thank you.

Speaker #2: Thank you sir. The next question is from the line of Simran Kumari from Narnolia Financial Services Limited. Please proceed with your question.

Operator: Thank you, sir. The next question is from the line of Simran Kumari from Narnolia Financial Services Limited. Please proceed with your question.

Simran Kumari: I see. Good evening. I have two questions.

[Analyst] (Narnolia Financial Services Ltd): I see. Good evening. I have two questions.

Speaker #5: I have two questions.

Speaker #2: Sorry to interrupt. Simran ma'am. Your voice is very low. Can you speak little louder?

Operator: Sorry to interrupt, Simran ma'am. Your voice is very low. Can you speak little louder?

Simran Kumari: Hello. Yeah.

[Analyst] (Narnolia Financial Services Ltd): Hello. Yeah.

Speaker #5: Hello?

Speaker #4: Yeah.

Speaker #2: Yes, ma'am. Please proceed with your question.

Operator: Yes, ma'am. Please proceed with your question.

Speaker #5: Yeah. Good evening sir. Thank you for the opportunity. I have two questions. Like first one is on a debt outlook. Could you just provide an outlook for the debt for the fiscal year of 27?

Simran Kumari: Yeah. Good evening, sir. Thank you for the opportunity. I have two questions. First one is on debt outlook. Could you just provide an outlook for the debt for the fiscal year FY27 and walk us through the drivers behind the increment in the interest expense during the quarter? The second question is regarding the order book. What is the current visibility for the order book for the current fiscal? Those are my two questions.

[Analyst] (Narnolia Financial Services Ltd): Yeah. Good evening, sir. Thank you for the opportunity. I have two questions. First one is on debt outlook. Could you just provide an outlook for the debt for the fiscal year FY 2027 and walk us through the drivers behind the increment in the interest expense during the quarter? The second question is regarding the order book. What is the current visibility for the order book for the current fiscal? Those are my two questions.

Speaker #5: And and walk us through the drivers behind the increment in the intake systems during the quarter. And the second question is regarding the order book.

Speaker #5: What is the current visibility for the order book for the current fiscal? Those are my two questions.

Speaker #4: So in terms of a right now we are in a debt situation we are very much comfortable situation that it is we are not seeing further debt to be increased from this year.

Parakramsinh Jadeja: In terms of right now, we are in a debt situation. We are very much comfortable situation that we are not seeing further debt to be increased from this year. Because already, we have taken term loans and everything to be there. Once, let's say, any further CapEx in next future, we will think over there. Okay. Still our balance sheets are allowing us to go up to, and we have made a discipline parameter inside that will not grow more than, let's say, our debt should be one into two to EBITDA level there. Well, we are within debt limits, and we're not going to increase to be there. This year, we are in the similar level to be there. It is not going to increase there. What was your second question? I missed that.

Speaker #4: Because already, we have taken term loans and everything is there. Once, let’s say, any further capex comes up in the future, we will think over it then.

Speaker #4: Okay. And still okay our balance sheets are allowing us to go up to and we have made a discipline parameter inside that we will not grow more than let's say our debt should be one is to two to a bidder level there.

Speaker #4: And we are we are within that limits and we will not going to increase to be there. So this year we are in a similar level to be there.

Speaker #4: It is not going to increase there. What was your second question? I missed that.

Speaker #5: Sir second question is regarding the order book visibility. Like what?

Simran Kumari: Sir, second question is regarding the order book visibility, like for FY25.

[Analyst] (Narnolia Financial Services Ltd): Sir, second question is regarding the order book visibility, like for FY25—

Speaker #4: Yeah. So order book order book let's say we are very much clear that this year the first quarter we took almost 600 crores. And we are expecting to finish this entire year in between 2,500 to 3,000 crores there.

Parakramsinh Jadeja: Order book, let's say we are very much clear that this year, the Q1, we took almost INR 600 crores, and we are expecting to finish this entire year in between INR 2,500 to 3,000 crores there.

Speaker #5: Okay. Thank you so much.

Simran Kumari: Okay, sir. Thank you so much.

[Analyst] (Narnolia Financial Services Ltd): Okay, sir. Thank you so much.

Speaker #2: Thank you ma'am. The next question is from the line of Jayeshah from Januti Capital. Please proceed with your question.

Operator: Thank you, ma'am. The next question is from the line of Jay Shah from Jenuty Capital. Please proceed with your question.

Speaker #6: Hello sir. Good evening and congratulations for a good set. Sir I just wanted to ask on Huron basically just one question. You said that around 300 325 crores of revenue and if I'm not wrong our capacity there is 240 machines.

Jay Shah: Hello, sir. Good evening and congratulations for a good set.

Parakramsinh Jadeja: Thank you.

Jay Shah: Sir, I just wanted to ask on, overall, just one question. You said that around INR 300, INR 325 crores of revenue, and if I'm not wrong, our capacity there is 240 machines. What would be approximately the number of machines for this revenue, if you can say? You said around 8% to 10% margins, would it be PAT positive this year? Do you think so?

Speaker #6: So what would be approximately the number of machines for this revenue if you can say? And and you said around 8 to 10 percent margins.

Speaker #6: But would it be packed positive this year? Do you think so?

Speaker #4: Yeah. And so first of all 8 to 10 percent EBITDA yes we are a positive there. Okay. In terms of effect passive there. Okay.

Parakramsinh Jadeja: First of all, 8% to 10% EBITDA, yes, we are positive there. In terms of a PAT positive there. In terms of, let's say, the 240 machine is a capacity based on the model mix. Today, what we are receiving the orders is all are large machines. The machine value is more than EUR 1 million to be there. That's why this manufacturing time and everything is longer there. For a larger machine, in our capacity, we are able to execute in terms of a value-wise, close to EUR 75 million there. It's close to INR 750 crores there.

Speaker #4: If you think in terms of, let's say, the 240 machine is a capacity based on the model mix. Today, what we are receiving—the orders are all large machines.

Speaker #4: The machine value is more than €1 million to be there, and that's why this manufacturing time and everything is longer there. So, for larger machines in our capacity, we are able to reach close to €75 million there.

Speaker #4: It's close to ₹750 crore there.

Speaker #3: So let me see the full.

Jay Shah: When we see the full capacity realization.

Speaker #6: Full capacity realization.

Parakramsinh Jadeja: Full capacity utilization like that.

Speaker #4: Full capacity utilization like that.

Speaker #6: Okay. So eventually we will reach there.

Jay Shah: Okay. Eventually we will reach there.

Jay Shah: Okay. Eventually we will reach there—

Parakramsinh Jadeja: We have just expanded last year in December. Okay. November, December, we add on the capacity. We have now capacity up to INR 750 crores to be there.

Speaker #4: That that we have just just expanded last year in December. Okay. November December we had on the capacity. So we have enough capacity up to 750 crores to be there.

Parakramsinh Jadeja: We have just expanded last year in December. Okay. November, December, we add on the capacity. We have now capacity up to INR 750 crores to be there.

Speaker #6: Understood. Understood. And just sir last question to understand this license and end user certificate better. So is it that even from France if you have to locally sell in the European Union like to Germany or Spain Portugal even there do you need certificate or this is only to export out of European?

Jay Shah: Understood. Just, sir, last question to understand this license and end user certificate better. Is it that even from France, if you have to locally sell in the European Union, like to Germany or Spain, Portugal, even there, do you need certificate or this is only to.

Parakramsinh Jadeja: No

Parakramsinh Jadeja: No.

Jay Shah: export out of European Union?

Jay Shah: —export out of European Union?

Speaker #4: No. No. After out of European Union I don't need a license there for the Germany for the Italy for the Spain.

Parakramsinh Jadeja: No. Out of European Union. I don't need a license there for the Germany, for the Italy, for the Spain.

Speaker #6: Okay. Understood, sir. Understood. And just one last question, sir. You said a lot of replacement demand and a lot of local demand is also coming in, in response to one of the previous participants.

Jay Shah: Okay. Understood, sir. Just last question, sir. You said that a lot of replacement to one of the previous participants, a lot of replacement demand and a lot of local demand is also coming in. If I have to, I've visited Rajkot a couple of times, so just trying to connect these two things. Is it that you are finding a lot of component guys who are now getting into aerospace or precision engineering, even at a local level, tier 1, tier 2 suppliers? Are they also upgrading? Is it fair to say that they are upgrading to a certain level of machinery and that's why in the future our realizations can go up? Because it feels that now since with the new capacity, Jyoti can take a lot of import share Because you said 62% is import as on today.

Speaker #6: So if I have to I mean I have visited Rajkot a couple of times. So just just trying to connect these two things is it that you are finding a lot of you know component guys who are now getting into aerospace or precision engineering even at a local level you know tier one tier two suppliers.

Speaker #6: Are they also upgrading can is it fair to say that they are upgrading to certain level of machinery when that's why in the future our realizations can go up because you know it feels that now since with the new capacity Jyoti can take a lot of import share.

Speaker #6: Because you said 62 percent is import as of today. So, are these guys also upgrading because India is seeing so much manufacturing, and like you said, all Europeans are coming here?

Jay Shah: Are these guys also upgrading because India is seeing so much manufacturing, and like you said, all Europeans are coming here? People would need some better capability machinery, right? If Jyoti-

Speaker #6: So people would need some better capacity better capability machinery right. And if Jyoti can deliver would our realizations go up with time because people have to also upgrade if they have to work with Europeans and US companies.

Parakramsinh Jadeja: Yeah

Parakramsinh Jadeja: Yeah.

Jay Shah: can deliver, would our realization go up with time because people have to also upgrade if they have to work with Europeans and US companies?

Jay Shah: —can deliver, would our realization go up with time because people have to also upgrade if they have to work with Europeans and US companies?

Speaker #6: Absolutely. Absolutely. You see, the face is changing, the entire India there. India is moving more and more—this, this one—the maturities are coming.

Parakramsinh Jadeja: Absolutely. You see, the face is changing the entire India. India is moving more and more. One, the maturities are coming, is all the manufacturing company is expanding their core competencies to produce a very high-precision component there. Okay? Recently, we have supplied some machines in our town, and those guys are supplying parts to Airbus or Dassault into these programs also. Based on that, all these Indian manufacturing capabilities are increasing. Second, people are looking more and more on automation on a machine there. Okay? That's another area is opening up, and we are forefront to substitute to import substitutions. Yes, in coming days, we are looking to on a higher and higher manufacturing, the larger machines to be there, basically. On high-tech machines to be there.

Speaker #6: Is all the manufacturing company is expanding their core competencies to produce the very high precision component there. Okay. Recently we have supplied some machines in our in our town and those guys are supplying a parts to Airbus or Dassault and to these programs also.

Speaker #6: And based on that, all these Indian manufacturing capabilities are increasing. Second, people are looking more and more at automation on the machines there. Okay.

Speaker #6: So that's the another area is opening up and we are we are forefront to substitute to import substitutions. Yes in a coming days we are we are looking to on a higher and higher manufacturing the larger machines to be there digitally.

Speaker #6: On a high tech machines to be there. Understood. Sir sir just to end this when you say high tech machines or higher range machines is it basically that your customers are also moving from components to a system supplier and hence they also need more advanced machineries or is it that they are getting into more technical components and that's why they need advanced machines or it is a mix of both?

Jay Shah: Understood. Sir, just to end this, when you say high-tech machines or higher range machines, is it basically that your customers are also moving from components to a system supplier and hence they also need more advanced machineries? Or is it that they are getting into more technical components and that's why they need advanced machines? Or it is a mix of both?

Speaker #4: All, all, all mix. Basically, they are, they are moving there on high value chain, basically. India's manufacturing is going more and more on high value manufacturing to be there.

Parakramsinh Jadeja: All mix. Basically, they are moving their own high-value chain, basically. India's manufacturing is going more and more on a high-value manufacturing to be there. That's why the precisions are required more and more there.

Speaker #4: And that's why precision is required more and more there.

Speaker #6: Understood. And this is all what's coming from China, Taiwan, Korea. The business that India is now getting. Would it be fair to say?

Jay Shah: Understood. This is all what's coming from China, Taiwan, Korea, the business that India is now getting? Would it be fair to say?

Speaker #4: Yes. Yeah, absolutely. Absolutely. China plus one is a real thing that is coming up. I'll even tell you a simple example. Earlier, our Indian Railways—what the speed was there and what it is now, with Vande Bharat and all the new trains coming.

Parakramsinh Jadeja: Yeah, absolutely. It's in China plus one, is a real things are coming up. I'll tell you simple example. Earlier our Indian Railways, what the speed was there and what are the now Vande Bharat and all the new trains are coming. Once we need to produce the high-speed trains and all, you need a higher precision components and more technology-driven parts to be there. Those are the things are everywhere is improving there, basically.

Speaker #4: So the the once we need to produce a high speed trains and all you need a higher precision components and more technology driven parts to be there.

Speaker #4: So those are the things are everywhere is improving there basically.

Speaker #6: Understood. So this this NX machine that you put in the presentation sir what is the use in Indian railways if you could just spend one minute on this?

Jay Shah: Understood. This NX machine that you've put in the presentation, sir, what is the use in Indian Railways? If you could just spend one minute on that.

Speaker #4: So to manufacture the bogie.

Parakramsinh Jadeja: To manufacture the bogie.

Speaker #6: Okay.

Jay Shah: Okay.

Speaker #4: Vehicle. Vehicle bogies. Yeah.

Parakramsinh Jadeja: Wagon. Wagon bogies. Yeah.

Jay Shah: Understood. Okay. Thank you so much, sir, and all the best, sir.

Speaker #6: sir and all the best sir.

Speaker #4: Thank you. Thank you very much.

Parakramsinh Jadeja: Thank you. Thank you very much.

Operator: Thanks. Thank you, sir. The next question is from the line of Depesh Kashyap from Invesco AMC. Please proceed with your question.

Speaker #5: Thanks. Thank you, sir. The next question is from the line of Deepesh Kashyap from Invesco MF. Please proceed with your question.

Speaker #7: Yeah. Hi. Hi sir. Can you.

Depesh Kashyap: Yeah. Hi, sir. Can you hear me?

Speaker #4: Hi Deepesh. Yeah Deepesh.

Parakramsinh Jadeja: Hi, Depesh. Yeah.

Speaker #7: Hi sir. Hi. Hi. Sir just one more question on wrong thing. Sir I think last year last quarter we reversed from 67 crore revenue from Huron and this quarter we are talking about 35 crore.

Depesh Kashyap: Hi, sir. Hi. Sir, just one more question on Huron thing. Sir, I think last quarter we reversed around INR 67 crore revenue from Huron, and this quarter we are talking about INR 35 crore. Total around-

Speaker #7: So total around.

Parakramsinh Jadeja: It's not reversed. This quarter is not reversed yet.

Speaker #4: It's not reversed. This quarter is not reversed, that.

Speaker #7: Oh it is not. It is it is not recognized. So so so almost 100 crore of revenue which has to be recognized right. So I just wanted to know like how many machines are we talking about in this number and and is this a single order or these are multiple orders?

Depesh Kashyap: It is not recognized. Almost INR 100 crore of revenue, which has to be recognized, right? I just wanted to know how many machines are we talking about in this number, and is this a single order or these are multiple orders?

Speaker #4: It's a multiple order and around 7 to 8 machines.

Parakramsinh Jadeja: It's a multiple order and around seven to eight machines.

Speaker #7: 7 to 8 machines multiple orders. So so there's a different time in like when you have applied for the license. So will it all come in a single quarter single month or it will like be spread out how do you think?

Depesh Kashyap: Seven to eight machines, multiple orders. There's a different timing when you have applied for the license. Will it all come in a single quarter, single month, or it will be spread out? How do you think?

Speaker #4: No, no, no. The ones that is clear I think they will clear everything there.

Parakramsinh Jadeja: No. Once they will clear, I think they will clear everything then.

Speaker #7: Okay. So the entire thing may happen like in a single time in a single. Okay. But generally I think you said like whenever you're near completion to the machine right two three months before that you apply for the license.

Depesh Kashyap: Okay. The entire thing may happen in a single time.

Parakramsinh Jadeja: Yeah.

Depesh Kashyap: Okay. Generally, I think you said whenever you're near completion to the machine, 2, 3 months before that you apply for the license.

Depesh Kashyap: Okay. Generally, I think you said whenever you're near completion to the machine, 2, 3 months before that you apply for the license—

Speaker #7: So.

Parakramsinh Jadeja: Earlier it was our practice. Now we will start from day first now. Already we have received some of the orders in this Q, we already applied for that.

Speaker #4: Earlier it was our practice. Now we will start from day first now. Already we have received some of the orders in this quarter we already apply for that.

Speaker #7: Okay. Okay. But is this typically towards a particular geography that is taking time from you, or is it anywhere outside of you that is taking time, sir?

Depesh Kashyap: Okay. This is typically to a particular geography that is taking time from you, or it is anywhere out of you that is taking time, sir?

Speaker #4: Every everywhere. See. Basically particularly our customers are all into China Turkey so these are all are a sensitive areas typically. Today's timeline there.

Parakramsinh Jadeja: Everywhere. See, basically, particularly our customers are all into China, Turkey. These are all our sensitive areas basically, today's timeline there.

Speaker #7: Okay. Got it, got it. And sir, what is the debt level right now? I think last year we closed at around ₹700-odd crore net debt levels.

Depesh Kashyap: Okay. Got it. Sir, what is the debt level right now? I think last year we closed at around INR 700 odd crore net debt levels. With the inventory building up, how is the debt level right now?

Speaker #7: So, with the inventory building up like still, how is the debt level right now?

Speaker #4: So today, our March and today's level is almost the same.

Parakramsinh Jadeja: Sir, today our March and today's level is almost same.

Speaker #7: Okay, okay. So we are still confident that the OCF generation that we talked about in the last quarter will continue for this quarter and this year also.

Depesh Kashyap: Okay. We are still confident that the OCF generation that we talked about in the last quarter, that will continue for this year also.

Parakramsinh Jadeja: Absolutely. We'll build up a good OCF this year.

Speaker #4: Absolutely. Absolutely. We will build up a good OCF this year.

Speaker #7: So 200 220 crore of capex you talked about. And like like you said that debt will be at similar level. So you you expect to generate a similar OCF kind of a number?

Depesh Kashyap: Sir, INR 200, 220 crore of CapEx you have talked about. You said the debt will be at similar level. You expect to generate a similar OCF kind of a number?

Speaker #4: Yeah. Basically this year we are expecting close to a 50% of a EBITDA level there.

Parakramsinh Jadeja: Yeah. Basically this year we are expecting close to a 50% of EBITDA level there.

Speaker #7: 50% of EBITDA conversion. Okay. Got it. Thank you so much sir. Thank you for your time. Thank you.

Depesh Kashyap: 50% of EBITDA conversion. Got it. Thank you so much, sir. Thank you for your time.

Parakramsinh Jadeja: Thank you.

Speaker #4: Thank you. Thank you. Thank you.

Operator: Thank you, sir. The next question is from the line of Saurabh Vyas from Systematix. Please proceed with your question. Mr. Saurabh, your line has been unmuted. Please proceed with your question.

Speaker #5: Thank you sir. The next question is from the line of Saurabh Vyas from Systematics. Please proceed with your question. Mr. Saurabh your line has been unmuted.

Speaker #5: Please proceed with your question.

Saurabh Vyas: Am I audible now?

Speaker #7: Am I audible now? Yeah, sir.

Operator: Yes, sir.

Parakramsinh Jadeja: Yes Saurabh.

Speaker #4: Yeah. Just one last question. In just wanted to understand that in case the investigation the entire investigation that is going on in the Huron would there be any going forward in the coming quarters in in if it does not get concluded is there any impairment loss we supposed to be booking by end of FY27 in case if this gets drag along by at least Q4 of FY27?

Saurabh Vyas: Yeah. Just one last question. Just wanted to understand that in case the entire investigation that is going on in the Huron, going forward in the coming quarters, if it does not get concluded, is there any impairment loss we are supposed to be booking by end of FY27, in case this gets dragged along by at least Q4 of FY27?

Saurabh Vyas: Yeah. Just one last question. Just wanted to understand that in case the entire investigation that is going on in the Huron, going forward in the coming quarters, if it does not get concluded, is there any impairment loss we are supposed to be booking by end of FY 2027, in case this gets dragged along by at least Q4 of FY 2027?

Speaker #4: Yeah.

Speaker #7: Not at all. Not at all.

Parakramsinh Jadeja: Not at all.

Parakramsinh Jadeja: Yeah. Not at all.

Saurabh Vyas: Hello.

Parakramsinh Jadeja: Not at all.

Speaker #4: Not at all. Okay. Thank you sir.

Saurabh Vyas: Not at all. Okay. Thank you, sir.

Speaker #5: Thank you sir. Ladies and gentlemen in the interest of time that was the last question for today. I would now like to hand the conference over to management for closing comments.

Operator: Thank you, sir. Ladies and gentlemen, in the interest of time, that was the last question for today. I would now like to hand the conference over to management for closing comments.

Speaker #4: Thank you all of your all of you. For joining us today. I hope I have addressed all your questions. We remain committed to keeping the investment community informed with the regular updates on any development in the company.

Parakramsinh Jadeja: Thank you all of you for joining us today. I hope I have addressed all your questions. We remain committed to keeping the investment community informed with the regular updates on any development in the company. For any further information or queries, please feel free to reach out to us or SGA, our investor relations advisor. Even I'm inviting all of you, all this expansion and everything is going on. Come over here, witness, see how we are growing, and welcome to all of you over here. Thank you very much to joining in this call.

Speaker #4: For any further information or a queries please feel free to reach out to us or SGA our investor relation advisor. Even I am inviting all of you all these expansion and everything is going on.

Speaker #4: Come over here, witness how we are growing, and welcome to all of you over here. Thank you very much for joining this call.

Speaker #5: Thank you sir. On behalf of Anand Rathi that concludes this conference call. Thank you for joining us and you may now disconnect your lines.

Operator: Thank you, sir. On behalf of Anand Rathi, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Jyoti CNC Automation Ltd Earnings Call

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