Aartech Solonics Limited (AARTECH) Q4 2026 Earnings Call Transcript

Good morning, ladies and gentlemen. On behalf of Artex Solonix Limited, I warmly welcome all investors, analysts, shareholders, and participants to the company's first ever virtual earnings conference call to discuss the financial results for the fourth quarter and financial year ended March 31st, 2026. We appreciate your participation and continued interest in the company. The Board of Directors of the Company, at its meeting, held on Tuesday, 26th May, 2026, approved the audited financial results for the quarter and financial year ended March 31st, 2026, which have already been submitted to the stock exchanges. Before we begin, I would like to share a few points for the smooth conduct of the call. Number one. All participant lines shall remain muted during the management commentary. Second, following the management discussion, we shall open the floor for a question and answer session. Point number three. Participants are requested to use the raise hand feature or pose their questions in the chat box, depending on the meeting protocol. Point number four. Kindly identify yourself and the organization you represent before asking your question. Point number five. In the interest of time, we request participants to restrict themselves to limited questions at a particular time. Please also note that this conference call is being recorded. Before proceeding further, I would like to draw your attention to the safe harbor statement. Certain statements made on today's conference call may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on management's current expectations and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances. Participants are therefore advised to exercise caution while interpreting such statements. It is now my pleasure to introduce the members of the senior management participating in today's call. We have with us Mr. Amit Anil Rajay, Chairman and Managing Director, Mrs. Aarti Naath, CEO and Director, myself, CSKR Tanuj Reddy, Company Secretary and Compliance Officer, and my colleague and Assistant Company Secretary, CS Garima Shukla. I now invite Mr. Amir Dhanil Rajay, Chairman and Managing Director, to deliver the opening remarks and provide an overview of the company's performance during the quarter and financial year ended 31st March 2026. Over to you, sir.

Thank you, Tannoch. I hope I'm audible to... All the members here, it gives me great pleasure to welcome all of you at this first virtual online interaction with investors. Altech got listed on the SME exchange in 2019 and on the main board in 2023. So in terms of the history and the roadmap that we have followed, I would I would still say these are very early years for us. But as a company, I think it gives us great deal of satisfaction that we have been progressing organically while reaching out to bigger and very interesting opportunities, not just in India and overseas. In general, you know, as we all know, we are living through very interesting times and not just as a society, but as a nation and globally, there is tremendous turmoil that is impacting business operations in micro as well as macro manners and keeping our focus on energy applications. We have always seen that we can add a lot of value by creating value propositions that serve various customers with their pain points. So I look forward to more on this as we address your questions and answers. But I think you would all be interested in a summary of some numbers and some more details, I really look forward to, you know, various questions that are in your mind, and I hope to get a chance to meet all of you in person in the time to come. By and large, when we are looking at, you know, our performance in 2526, and the way we are looking to take things forward, by and large, if there is a sentiment I wish to express, I think it's very positive. We have a lot of things going on. Some of them are below the radar, and some of them reflect in terms of the numbers and other things that ultimately get reported and evaluated. So with all that context, Arti, if you are there, can you take it up with respect to the presentation?

Thank you so much for sharing the business and strategic overview. I now invite Mrs. Aarti Naath, CEO and Director of the company, to take us through the financial performance and key financial highlights for the financial year and quarter-end debt, March 31, 2026.

Thank you. Thank you, Tanuj, and thank you, Amit, for a wonderful introduction. And I would like to welcome everyone, all the investors and the potential investors who would be on this call. I'm happy to share not just the financial overview, but otherwise all the developments as well. And questions are most welcome. After the presentation. So let me begin this conversation by sharing that Artec has been doing a lot of groundwork in critical energy applications, particularly, and we have been incorporated since 1982. And got listed in 2019 on the SME platform, and three years later, we got listed on the main board of BSE and NSC. Our tech has always been trying to solve the real-world problems in the field of energy applications, particularly, and over a period of time, we have also diversified ourselves into various other segments, which are catering to, again, very, very typical and, I would say, focusing on very particular pain points of the customers. In last financial year, we actually revised our vision and mission along with our shared values. And as you can see that the vision is to become a globally recognized Indian multinational, multi-domain, multi-technology-oriented enterprise, delighting every associated stakeholder. So, as we can see that clearly, we are... Aiming for becoming the first Indian multinational to be globally recognized. Maybe we are not the first, but definitely we would be contributing a large part of our organization's life into various, various problem solving into critical energy related applications. We have also formed the vision of our company and along with that the mission which is to solve the real world problems primarily in the field of energy applications by providing specialized products, services, and solutions to the end user. Now, this is where we are really considering ourselves to be a little different by taking the entrepreneurial risk in newer technologies. Over a period of time, we have realized that to be a value-added organization, We just cannot keep ourselves satisfied and limited to only few technologies in which we are dealing with. And constantly looking forward for newer technologies by understanding any problem which is coming in the real world is to take the entrepreneurial risk. If we don't take this risk, then it would be very difficult. To get a newer solution, which will satisfy all the customers. So we have taken this leap into the vision and mission for the coming years. And hopefully, we will be able to successfully meet the mission and the vision appropriately. Tanush, can you take it ahead? Just a small brief about the company that we have two manufacturing units plus one upcoming in our wholly owned subsidiary unit with around 10 plus product lines and around 150 plus employees, including contractual employment. We have two onshore locations, which are currently not our subsidiaries in UK and US, dealing in 15 plus more countries. And we have a DSIR-approved R&D center. which is the Department of Science and Technology. It's a central government approved R&D center. Two patents are currently in RKT, although they are presently in the application stage and review stage. Just a deep understanding of our tech. That Artec actually stands for Always Apply Right Technology and apply all the available techniques to solve the real problems at hand. So particularly the initials of AAR are actually of the promoter Anil Anantarajay, and we have actually acronymed it as Always Apply Right Technology. The promoters have given their whole life and actually building this thought and imbibing it in the second generation, which... Amit and me are following it up. Always try and put this perspective in place for any solution that we are offering in the form of product or service or any solution to our customers. A brief snapshot of the company. In 1982, it was incorporated. And in 1988, we had our first operations at Mandideep, which is around 20 kilometers from Bhopal. In 1992, we became a public limited company. It was a closely held public limited company. 2000, early 2000s, we actually formed one more location at Parvanu, Himachal, Pradesh, and a few... I would say important milestones from an investor perspective were that we did a bonus issue of 1s to 6 in 2009. In 2010, we got approved by DSIR. And particularly, that was an important milestone for us because we have always emphasized ourselves into innovation and R&D. In 2010, again, we did a bonus issue of three years to one. As we can closely, if we follow this journey, we would see that investors have always been a priority. And the prerogative of actually giving such kind of bonuses, or, you know, having these as major milestones in the company's journey, does emphasize the fact that even though we actually came on the listing pretty later, Thank you very much. But whoever were our investors right from the beginning were ensured that whatever benefits that we are getting in terms of our profits do get distributed to the investors. In 2016, we got approved by Neeti Aayog, and we formed the first Atal Incubation Center in Central India. This was also a major milestone for us, and under the able leadership of the present CMD, we could get some good traction in understanding the incubation culture, not just in Central India, but in the whole of India. And overseas market also to understand where this whole startup culture is going. We also got a good first-hand experience in understanding the incubation culture because we were ourselves the incubators. And in certain incubations, we also invested some part of our equity to, I mean, in their equity to actually get into the business. In 2018, we actually applied ourselves for the SME platform. And in 2019, we got an IPO launch. At a very first-hand stage, we got ourselves into the SME platform because we were pretty novice at it. And in three years, we actually could understand that what the IPO market is all about. And, you know, getting ourselves publicly listed did give us not just an overview of... The compliances, but also what are the expectations of investors at all levels. In 2021, we again got a bonus issued of 1-2. 2022 was actually a good and an important year. It was just post-COVID. And we were also trying to imagine ourselves into various other domains, which could actually serve the larger purpose of our tech. And in 2022, we actually were the IDEX winner, which was the Innovative Defense Challenge, which the defense throws challenges with a particular problem statement in mind. And we got ourselves, fortunately, we were considered to not just apply, but also win this challenge and a particular problem statement, we were able to actually give our contributions. In 2023, because it was three years down the line that we got ourselves on the SME exchange, we got ourselves migrated to the main board. However, this IPO was not for fundraising. It was just a migration that we did on the BSC and NSC. As I mentioned before that we have two onshore locations, one in UK and one in US. In 23 and 24, we actually tried to have some exposure of the international markets from a company standpoint. Although much way before that, we had already started some exports in terms of our revenues. There were some exports that were going in such markets. And therefore, we decided to take some leap forward by incorporating a company over there. In 2024, we actually did a split and a bonus of 1s to 2, and our face value from 10 rupees, we cut it to 5 rupees face value, and also gave a bonus of 1s to 2. 2024, we again, again an important milestone in our history, because we again applied ourselves for another defense innovation challenge. And we were again the winners in that particular opportunity. Work is still in progress in terms of the problem statement. And in 2025, we were actually awarded by the MP government in a renewable and power equipment cluster, one parcel of land, where we would be doing manufacturing of particular power equipments and also understanding the renewable markets. And this is around 90 kilometers from Bhopal, close to Narmadapuram. Work is still in progress and we are doing the civil infrastructure right now as a progress there. So overall, as we can see, that every year has been very, very... I mean, not just, I would say, adventurous in that sense, but we have also tried to apply ourselves in all directions, whether it is in terms of new segments, whether it is in terms of new geographies, or whether it is in terms of new problem statements, which are coming across the globe to us. We are trying to understand them, work on them, and provide solutions. A small snapshot of the geographies where we are. And this is particularly where our products and services have gone. As we can see that mostly we started off with Southeast Asia and progressing to Middle East and also to certain geographies in Europe and Africa. So, a very interesting combination in which we are actually serving our customers. Particularly, the new sunrise industries, which everyone is calling them as the most interesting, I would say, industries, our defense and explorations, doing some work in renewables. We have been, you know, possibly, I would say, vintage in oil and gas, steel and petrochemicals through our flagship product. Also in power gen course transmission and distributions. Certain services we have also provided in heavy engineering industries. Waste management was also one thing that some of our products have gone in various regions with waste to compost machines. And of course, transportation, healthcare, and IT also come up with a variety of our products and services which we are providing as of now. Good morning, everyone. So a brief understanding about our products, our portfolio, or our kitty actually includes various... Energy applications, which include the control and relay panels and the BTS bus transfer system. BTS 2000 is actually the name of our product, which is actually serving many, many process industries, oil and refineries, and PowerGenCos. Fault Current Limiter is also a wonderful product, which is in collaboration with our US partner, and we have applied and served a lot of our customers with these products. AAPM, of course, is one of the highest curiosity that our investors have always posed in front of us that how we are coming up with that. And so alternative adaptive power module is picking up very well in the defense markets particularly. And of course, we are constantly working and developing newer and advanced versions in that. Cranking ultracapacitors, aux to flywheel, and best case. These are also a few of our products, which are doing relatively well in their own sphere of... Applications and Flywheel is still under development, but we are getting good traction in particular industries like data centers, etc. Best case is, again, one of our trademark. And brand, which is actually serving industrial plastic enclosures across various industries. This is one product which is actually serving the maximum level of industries right from retail till B2B. So, as you can see that the five-year performance in terms of revenues and in terms of debt equity, certain parameters have been mentioned here. Revenues have steadily grown year on year, and as of 25-26, we stand at 40 CR. In five years, we can see that we have actually, you know, doubled, more than doubled ourselves. And it is progressively growing on an organic rate of around 12 to 15% every year. We are happy to share that in terms of debt is to equity. We are doing much better than the industry standards as of now. In terms of long term debt, we really do not have debt on our books, except for some cash credit facilities that we are availing for working capital. And that actually makes us a very debt free company on our books. And also, relatively, we are able to accrue a lot of cash reserves in the The formal form. Short-term and long-term investments. Equity has been stable since 2019. And when we got ourselves on the main board, we actually increased the authorized share capital. Issued share capital or subscribed share capital remains the same. Return on equity. That is something which all of us are keen to see, and over a period of time, the returns on equities have also been steadily increasing, and we can... Our purpose of, you know, understanding the investors and serving them through any kind of returns that we are able to offer, whether it is in terms of bonus shares or whether in terms of dividend, has always been our priority. And we have focused to give steady returns of around between 5 to 10 percent every year. EPS seems to be drastically improved in 2026, and we can see the detailed financial breakup in the next slide. But overall, we can see that five-year earnings per share have been steady and good. So, as we can see, that if we compare year-on-year, FY25 and FY26, we are definitely at a much better page than what we were last year, because we have not just achieved a record turnover. In this year, but we have also tried to minimize our expenses and try and discipline ourselves, which is easily visible in PAD. And of course, EBITDA has grown. EBITDA definitely seems to be, you know, 3x times higher because in 2025, we had incurred an exceptional expense of around 4 CR. which resulted in a low PAT and a low EBITDA. Just a brief snapshot, everyone can just go through it, and if there are any questions that can be answered by the end. So, Consolidated Balance Sheet includes our two subsidiaries, Faradim Ultracapacitors Private Limited and AIC-RTEC Solonix Private Limited, which the first one is actually in the manufacturing of ultracapacitors and all such related solutions that we are offering. And AIC-RTEC Solonix Private Limited is now into... Making some innovative products and solving some of our in-house developments that are required. Yes, earlier it was an incubation center, but now we have pulled ourselves out of that after five years of continuously serving the incubators. Now, we are basically doing some in-house developments, and which we will be, I mean, most of these are on the prototyping stage, and then we develop them, and then... Through our principal company, we actually sell them in the market. So consolidation basically includes all these three companies. Next slide, please. So as we can see that on the cash flow side, we have, you know, there are periods which are cyclical in nature, where the cash generated from operations. Do send us a negative number. But of course, because we have some long gestation projects, typically most of our orders are actually 122, 150, 180 days projects for five months. Once we, you know, get orders, we typically have to take this much of time and possibly executing and Actually, invoicing them, so... As we can see that the changes in working capital is a pretty significant number, and because of the kind of industry that we are in, it requires high working capital. Cash flow from investing activities have been a positive sign, and we have always, you know, asked ourselves about how to discipline and use the best of the market techniques to earn more from there. As we can see that by the end of it, the cash and cash equivalents were a healthy number of 328 lakhs, and vis-a-vis 168 lakhs last year. Okay, so now we come on some major breakthroughs and some. Good order wins that we consider ourselves fortunate enough that we could work on these. First of all, on the global expansion side, we got a good break in Indonesia on the bus transfer system project. It was one of the most trickiest and difficult projects that we actually got in place as a competitor. ABB was there. And we could actually win that against them. That was a good project. Also, strategically, we have made our entry into various Middle East markets, particularly in Qatar and Oman. We have got some good breaks from... Utilities of Jindal and, you know, certain engineering companies like Traggs in Qatar. We have actually tried to not just do a BTS bus transfer system from these utilities, but also fault currently emitter, which is one of our... A very, very, I would say, specialized product was executed for such companies. One of the major strategic breakthroughs that we could get was for our traditional business control and relay panels, we were able to export them to Africa. And this is just the starting point which we actually could get last year. There are certain more potential opportunities, and our entry into Africa is now possibly at the right time when the whole geopolitical situation is not doing very well, but Africa is one country where we are hopeful that we will be able to put our foot in the door and get more markets attracted towards us. Of course, on the expanding presence across Middle East, Southeast Asia, and Africa have always been one of our forays. And to actually, why is it considered so special is because this whole market where right now I'm talking about is influenced by all the European companies, including Siemens, Schneider, ABB. And therefore, to beat them and to get our name, not just to prove our credentials, but also to do the supply, commissioning, and satisfactory performance has been one of our major breakthroughs. In energy storage and renewables, as I just mentioned, that we were selected in the renewables and power equipments cluster close to Narmadapuram, we laid our foundation stone over there, and we are expecting our first operations to begin by early next year. The civil and infrastructure work is underway, and we are expecting that that should be done in the next 9 to 10 months. Facility aligned with Make in India and Atmanirbhar Bharat initiatives. We have always tried to put India first, and I'm very happy and proud to say that Artec is one of its kind who has... Particularly given a lot of contribution in the defense sector by doing some import substitutions in establishments like Army and Navy. We are constantly working and making new developments and providing the customer with Some good products, which were never actually ever manufactured in India. Focused on next generation energy storage systems for renewable energy, defense and transportation. These are one of the major objectives of our... New factory, which would be based out of Narmadapuram, and as I just mentioned that commercial operations are targeted by the end of 26-27 or early 27-28. As you can see that we are serving all the major refineries and process industries, also some major utilities. Some of the names are just mentioned there. Particularly now, what we are keen in doing is working on advanced SaaS and SCADA systems, and we are also targeting to enter into the 220kb market. For control and relay panels, we are constantly working on understanding the utilities and their problem areas and serving them from here, from Central India. Defence and technology innovation, as I mentioned that there were two defence innovation challenges that we won, which was Disc 5 and Disc 11. We are also into the innovation of delivering rugged defence mill grade solutions to Air Force and Indian Navy. We are happy to share that in the last financial year, we executed few orders for the Indian Navy and also for Indian Air Force. So, EMLS for next generation defense application, which are the electromagnetic launch systems, which are basically the launch pads that are used by aircrafts from a small runway, particularly from defense ships. We have contributed, we have done some meaningful contribution in developing these systems, and last year our product was approved by R&D Pune, and this year also we are in talks for some advanced systems and some higher-end products that they are interested to get from us. Adaptive Alternative Power Module. Successful validations and trials have been done at all commands, including Northern, Western, and Southern Command of Indian Army, and inquiries are underway, and we are expecting some good traction in this. There is also a patent that we have filed for this particular product under the Civil-Military Collaboration. We are expecting it in the next 12 to 18 months for the patent to come in our books. Continued focus, that has always been the mantra for Artec. And we have yet still developed many products which are under the development stage right now. Thank you. Focusing on getting them out to the real customer in the times to come. Just a few credentials which are laid down here. Just a handful of our customers, which we proudly have served, include many, many, I would say, who's who in terms of energy and utilities, including NTPC, NPCIL, Adani, Haldia Petrochemicals, ONGC, on the utility side and on the Genco side, we have done for Mahagenco. BHEL, and AP Genco. And of course, Schneider, Siemens, CVRD, State Electricity Boards, Indian Railways, of course, has been one of our major customers. A few of our overseas clients. As you can see that some of them are from Middle East, some of them are from Southeast Asia, and Dangote is from Africa. That's our team. And thank you for being a part of this presentation. I look forward to interact with you individually or collectively at any point of time. Thank you, Tanuj.

Thank you, ma'am, for the detailed financial overview. We shall now move to the question and answer session. Participants who wish to ask questions may kindly use the raise hand feature, post their names in the chat box. Our first question is from Mr. Shailesh Jain. Yes, sir, you can put forward your question.

Can you hear me, sir?

Yes, sir.

Sir, I am Shailesh Jain. I am an individual investor. I'm new to the company. I want to ask, like among BTS 2000 ultra capacitors, control and relay panels, and defense energy application, which segment does management believe has the highest long-term scalability and margin potential? Also, what kind of revenue scale can these businesses realistically achieve over the next two years, and which product will give maximum revenue in this financial year? This is the first part of my cursory.

Possibly, I would take that question. Thank you, Shaileshji, for being a participant in this discussion, and I'm happy to answer your question. Particularly, how I would like to answer this is that every product has its own life cycle and its own trajectory. In the last, in early 2000s, I would say that BTS 2000, when it was just... Uh, introduced in the market, it was, uh, definitely at its, uh, it was getting good traction and was at its peak. Now, having done several installations, uh, domestically and in the overseas market, and where we ourselves call that our product is, uh, you know, extremely, extremely rugged and it would, uh, there would nothing that would happen for it in the next 10 years. Definitely, you know, on the revenue part or on the business segment, the lifecycle changes from the product supply to retrofitting. Similarly, on the control and relay segment, which traditionally has been our bread and butter product. Since the 80s, now advanced systems are now actually being procured by the... Not just the utilities, but by the PCs. And therefore, this particular product goes in volumes. But there is very, very tough competition in terms of margins. And it's a very price sensitive product. So, the only way to enter and stay in this market is to provide more and more advanced technologies in the product and be very, I mean, the end customer should be very satisfied with the service that you're providing along with the quality of the product. So, what I'm trying to say here is that there are different products who have different life cycles and different demands and at different times. Today, when we are sitting here, we all see that defense is one of the most sunrise sectors and because a lot of emphasis is being given by our government for making India. Definitely, this sector looks very, very good in terms of, or potentially good in terms of revenues and margins. However, the entry barriers are very high in this particular segment, and a long gestation period is there for, which includes the trials, validations, and performance metrics need to be very, very strong. So, now, this definitely is a good segment, but it takes a long time. There are good margins, but you need to be totally, totally atmadirbhar. These products need to be made in India and therefore it might take time. So for us, the strategy as an organization is that we need to have a mix of all these products and use, you know, and give the right solution at the right time to the customer. The same customer might have the same product being used but in different applications and therefore to customize it and to provide him the right technology is what we basically focus on. Thank you.

I just want to know, like, some number value can be provided for these, like, for defense, how much you are expecting. Like you said, the defense is going to be a very high growth area for the company. So any number you can provide, like, two years down the line, how much revenue we can make from defense segment, something like that. I want some kind of numerical value, if it is possible to give for the money.

So the estimates, if I have to give any number, would sound very difficult at this point of time. But the projections that we have done for the entire market at this point of time, the potential market size is more than 500 crores. But let's say even if we are looking at 1% of it, then obviously the numbers are in front of you. Also, we need to keep in mind that the technology is changing very fast and we need to actually understand the pulse of the customer and the need and the requirement which is there at that point of time and to serve it. But yes, broadly, I can say that for Artec and to serve its customers with the kind of size Artec has right now, the market potential looks somewhere around 50 to 100 crores.

Okay, my last question is like, as you mentioned that we are getting some Middle East orders and we have one against ABB also. So like, I want to know what sort of margins are we getting on those orders? Do we have to compromise in the margins to win those biddings? And also like, as you say, the focus is on export. So how much percentage of revenue will come from export in this financial years in numerical terms?

So, sir, to actually understand the export markets and with the current geopolitical situations, it's very unpredictable. However, from a target point of view, when I'm talking about our flagship product, BTS 2000, average margins are somewhere around 35 to 40 percent. And that is where the technology, our technology, our platform, which is getting used, is the plus point that we are encashing right now. In this year, if I have to talk about the export percentage, vis-a-vis the total revenues, it would be somewhere around 10%. Still 90% of it, we are focusing from the domestic markets. However, the merrier, the better, but it practically looks very difficult considering the present situation.

Okay, thank you. Thank you. I will be in the tune.

Thank you.

Thank you, sir. Any more questions from someone else?

Yeah, hello, I have joined through call. Am I audible?

Yes, sir, you are audible. Please go ahead.

Yeah, hi. Thank you for a detailed presentation. It was quite helpful. And if you could sort of talk about a trajectory of our growth, both in terms of revenue, EBITDA, and the growth of... The quality of growth, right? Wait for FY27 or next three years. If you could give a view in terms of how do you see company growing over next two, three years in terms of CAGR and the margin range, that would be helpful.

Amit, would you like to take this up, or should I take it?

Sure. Happy to answer. May I have your name, please, sir? Yeah, my name is Devesh. Devesh. Okay. Thank you for your question. I mean, I would like to, you know, I can, on one hand, of course, we understand that it's natural that as investors, one is trying to understand the trajectory and build their thesis on it. Where we are at Altec is, I mean, I believe we are at... Multiple inflection points. When I say multiple inflection points, what I mean by that is that in this process of trying to build these very niche solutions that we have, we have always found that there is a certain bit of serendipity involved in how we find our sweet spots. So, to take an example, you know, our bus transfer systems, you know, traditionally, they served power plants, you know, in India. Later on, they started experiencing a pool in petrochemical and process industries and the water industry. And each of these opportunities have a certain breadth and a certain amount of depth. We are trying to basically work on a principle of under committing and over delivering. So, you know, we don't like to throw a lot of numbers trying to make things look very, but we have experienced traction, as you could see from the numbers, let them speak for themselves. So what we are doing right now is a twin prong strategy. On one hand, we are ensuring that whatever we have built for ourselves, where we are finding customers, we are increasing the width and the depth so that organic traction can be more or less ascertained. And you can see that with respect to the year-on-year growth, etc., that you observe even in the face of some difficult situations. On the other hand, we are also building our thesis on some very special maverick opportunities, and those maverick opportunities are coming our way quite speedily. We hope to catch hold of them, convert them. We're building our strengths and are building our muscle to address them. So I would say to answer your question specifically, as far as the CAGR is concerned, whatever organic The economic traction you can see from our numbers is most definitely likely to continue because these are, while it is diversified, it's across various domains which are all progressing reasonably stably. But I would definitely, you know, we are training our eyes on getting some inorganic growth opportunities, and I'm sure that would be really something that all the investors would also want to ultimately experience at our hands. So, I hope I could answer your question. Although, a little bit too broadly.

I've got the gist of it. So, if we were to go back and look at our company in 2003, we were doing about 20 crore, and in the next three years, we are at 40 crore. So, broadly, is it fair to say that a similar trajectory would continue?

The factors that have resulted in this growth from 20 to 40 in the past few years is a mix of multiple issues. So I'm trying to make sure that we don't oversimplify what we are observing. What we have seen is that let's say there has been a lot of investments from the government side in the power sector, which trickles down to investments in transmission and distribution. And that pulls our CRP in a certain direction. There's also when the government makes an emphasis on local manufacturing, that gives us an edge. When overseas customers, particularly, let's say, Middle East, etc., have only started to build a level of receptiveness to Indian OEMs, the traction has begun to show up. So, you know, if one were to just linearly extrapolate, you know, what we have seen in the two years, that's what I call organic extrapolate, you know, organic growth. And I feel that we are certainly working hard towards achieving that. But I wouldn't be surprised, and I've seen that in my lifetime as my hair has grayed over the decades, some tremendous inorganic expansions that Artec has demonstrated from time to time, just by the virtue of finding the sweet spot in terms of a product market fitment.

Okay, that was quite helpful. And also one last question on the capability side. So it definitely seems that, you know, we have IP or credible solutions that are demanded either horizontal or industry vertical side. Now, as the growth happens, both organic and inorganic. Do you see the operating leverage playing out and our margins expanding? What I'm trying to ask is this year we did about 15% EBITDA. So whatever number you think would be appropriate for 27-28, as we grow, do you see these margins expanding and the growth quality, which is cash flows coming in as well?

Yeah, by and large, you know, like I said, the growth happening in each different product segment reflects itself very differently in terms of, you know, working capital, cash flow margins, and so on and so forth. So, Arthi just mentioned that our flagship product enjoys a 35-40%, you know, margin. Obviously, that tapers down to a net of 10-15% because of other more competitive products. So, yes, there would be, you know, the point is, we have to understand under what situations are we able to find these opportunities to serve the markets at very healthy margins, you know, what is the leverage? We believe very clearly and strongly that innovation Innovation is the leverage. And we have led this innovation-led entrepreneurship value very dearly through the decades. What happens, therefore, is that typically when some opportunities emerge, most people may not even take those opportunities with a, you know, keep a distance from it simply because it's a very wicked problem to solve. And we still don't have enough confidence building in our ecosystem to invest in the kind of things that need to be really invested in, things like R&D, things like patient capital, to build on these technologies. However, since we have tasted those concepts to commissioning life cycles, we have many such investments in our pipeline, which we are actively surveying and building. And once they mature, and they come on top of the radar, they are expected to play out very differently than what has happened in the past. So that's going to be the continuous cycle that we have designed. It's an innovation engine that ultimately leads to product realizations. And once we find the product to market fitments, that will lead to scale. Obviously, there are many, many challenges in making that happen. But we are piecing each of those challenges together. And addressing them in priority.

Okay, sounds good. Thanks a lot. I mean, just a feedback if it's okay to share. I think what is clearly coming out is our capability, our innovation, our R&D, the ability to take risk. All those are very clear the way you are articulating. What is not clear as an investor to us is the trajectory of financial, why we are not asking short term picture. But as of now in this entire call, I'm not able to understand that what is management aspiration in terms of becoming 100 crore company at two, three years down the line. So, I mean, you know, please try to understand the other side context also. Just take this as a feedback if you can, right? Thank you. Sure, sure. I appreciate that.

And, you know, in the past, we have done that. And I believe in the future, we will do that in the very same way, we will cross the bridge when we get there. And it will be all for all of us to take a look at and sever. Thank you, sir.

The next question is from Mr. Shailesh Jain. Please proceed, sir.

Sir, is it possible to share the current order book in numerical terms and like major orders is from which areas are tech is in multiple verticals. So like major order is coming from which area and the current order book in numerical terms and if possible to share execution timeline I know soon.

Arthi, can you take that, please?

Yeah, thank you, Shaleshji, for this question. So, as of... At the beginning of the financial year, we had around 10 CR of order book in hand, and as far as the number of bids that we have right now participated in are approximately 15 CR. So the results, obviously, the timelines vary. But by the end of June, we are expecting that our order book should, you know, come to somewhere around 25 CR.

Okay, thank you.

Any more questions? Well, since there are no further questions, I now invite Mr. Amit Anil Rajay, Chairman and Managing Director of the company, for closing remarks.

Thanks, Tanuj. And congratulations on hosting our first maiden investor meet. I think we have a long distance to cover. And, you know, in R-Tech, we run a very popular tagline, which says, once an R-Techie, always an R-Techie. In the past, we have always extended that to our employees and our team members. But, you know, the feeling and the sentiment that we carry is that we are all one big family trying to make things work out. And ultimately build a thesis and execute that thesis, unlock value for our ecosystem, and in that process, unlock value for ourselves. So I'm very happy that we could all get together here, get this going. I think the feedback has been lovely. We understand everyone would like to see things working out in terms of projections, in terms of numbers. Because my personal belief, and that is something that our team also understands and works on, is that, you know, let's focus on the process, you know, the numbers follow. So, what I would invite everyone to reflect on is how many companies of our size and shape within our ecosystem in India are looking to take a long-term call on focusing on innovation-led entrepreneurship. And is it not true that that is the very essence that ultimately enterprises need to build their strengths on, build a solid foundation, build a big structure on top of it, and then win the world. Wherever across the world these theses have been truly owned and operated and have enjoyed investor support, the results are there for all of us to see. If you look at Taiwan, if you look at Israel, and more recently, China, because there's a lot of government backing that comes there, you know, these are essential elements that are needed to really get to the next orbit of growth. So I want to just close with this very clear, you know, statement on behalf of everyone here at Artec, that we are definitely working to the nail to go to the next orbits. And I hope to see all of you there. Thank you, sir.

Thank you, everyone, for joining us today and for your continued trust and support towards Artex Solonix Ltd. We hope the discussions provided useful insights into the company's performance, business outlook, and strategic directions and decisions. In case of any further queries, Participants may reach out to the investor relations team or the company secretary's office to the contact details available on the website. Before closing, I would request Aarti ma'am to provide some closing remarks.

Yeah, thank you. Thank you, Tanuch. And thank you to all the investors and participants who have joined in. And what I would just like to say in the end is that Artec and all its... Colleagues, including the senior management, middle management, and all our techies stand committed for the betterment of the, not just the enterprise, the society at large, but also the products and solutions that we are offering. We stand committed to it till the end of our lifetime and there on. So I would also like to take this opportunity to thank all the investors and their families who have. Thought about our company and invested their hard-earned money, thinking that this company is, you know, of some importance to them. So I would also like to thank all the family members of our organization and the employees who stand committed to us all the time.

Thank you, ma'am. Thank you once again to all the investors. Stay safe and have a wonderful day ahead. Thank you.