Fiem Industries Limited (FIEMIND) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Fiam Industries Limited Q4 FY26 Earnings Conference Call, hosted by Monarch Network Capital Limited. 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. Please state, these statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all the participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then view on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sahil Sangvi from Monarch Network, Capital Limited. Thank you, and over to you, sir.

Thank you, Gitesh. Good evening, everyone. On behalf of Hoonath, Newport Capital, I welcome you all to the Q4 and FY26 conference call of Fiam Industries Limited. We will start the call with the initial comment about the results and the future outlook of the company, and then we will open the floor for questions and answers. Now, I hand over the call to Mr. J.K. Jain, the Executive Chairman of the company. Over to you, Jain, sir.

Thank you. Good afternoon and welcome to the Q4 FY26 and full year FY26 earning call of the Fyam Industries Limited. Joining me on today's call are Rahul Jain, Managing Director, Achal Jain, Joint Managing Director, Rajesh Sharma, Joint Managing Director, Arvind Chohan, Company Secretary, Opie Gupta, CFO, and other members of the finance team. Our investor presentation and the results are now available on our website, and the stock exchange, we trust, you have reviewed the same. Let me begin with the macro environment during FY26. Geopolitical tension, currency fluctuations, and cost pressure continue to shape up The operating environment for business across the world. Yet the Indian automotive industries remain resilient, driven by strong fundamentals and continued innovation. Against this backdrop, Fiam delivers its strongest performance to date. This achievement reflects the strength of our customer relationship and resilience of our business model and enduring value of and the capabilities we have built over the years. Let me now turn to the two-wheeler inductees, FY26. Marked an important milestone as industry production exceeds the pre-pandemic peak achieved in FY19. Production volumes for the year grew about 12% to an all-time high of roughly 26.7 million units. Growth was driven by improving ruler demand, shift towards premium vehicles, and the steady adoption of the electric vehicle. According to the PM performance, I am very pleased to report that FY26 has been a record year for the company on every key measures. We delivered strong revenue growth and all-time High profit and our best-ever margins. For the full year, our revenue grew by about 16% and the profit after tax grew even faster by 24%. Our EBITDA margin also reached a record level supported by operating leverage and the benefit of our integrated manufacturing models. Let me share a few highlights of the strong progress with our key customers. At TVS, we remain a trusted partner across major platforms, including the iCube, Jupiter, Moped, and Motorcycle. This reflects the depth of our long-standing relationship. With Honda, our relationship continues to expand, including on Activa EV platforms and several new models under development. At Royal Enfield, We support key models such as the classic and R also participated in emerging EV initiatives. We also recorded healthy growth with Suzuki and Yamaha during the year. At Hero, we achieved an important milestone with approval for a new upcoming EV platform, creating opportunities to further expand our presence in the fast-growing electric mobility segment. Importantly, most of the new business we are winning in LED LED. This reinforces both the industry's technology transition and the FIAM leadership in advanced automotive lighting. Alongside growth, we continue to invest in the future. As a part of our long-term commitment to responsible manufacturing, I am pleased to share that we have started our journey into green power. We have commenced the rollout of the rooftop solar and open access renewable energy across our plants. At our Hossur facility, around 65% of our energy needs are already met through solar power, with a further 20% being added through wind energy. We intend to roll out this model across all our other plants over the coming years. This will help reduce our energy costs, improve operational stability, and advance our goal in becoming a carbon-neutral company. Now, turning my attention to the four-wheeler segment, we continue to see significant traction in the business and will start fulfilling key orders for clients like Mahindra and Mahindra starting this year. As you know, as you know that Mr. Vinithani has stepped down as CEO. To pursue another opportunity, this transaction has been smooth and well planned. The leadership responsibilities have been assumed by our managing director, Mr. Rahul Jan, who will continue to drive the company's growth agenda with particular focus on expanding our four-wheeler business. I am also delighted to share that Ms. Achal Jain has been appointed Joint Managing Director. She will work in tandem with Mr. Rajesh Sharma, our existing Joint Managing Director, who has a vast experience in the automotive industry. Their combined experience and leadership will further extend the company's management team. As we look ahead to FY27, I remain confident about the opportunities before us. The industries continue to benefit from healthy underlying demand, while the shift towards premium technology-rich vehicles align closely with our strengths and capabilities. Thank you. Order book, and a robust customer pipeline, we are well positioned for the next phase of the growth. With this, I now hand over to Mr. O.P. Gupta and the finance team to take you through the detailed finance performance.

Thank you, sir. Good afternoon to everyone. First, I will present Q4 numbers, after which I will cover the full year FY26. The company has registered quarterly sales of Rs. 744.35 crore in Q4 of FY26 as compared to Rs. 633.8 crore over the same quarter last year, registering a growth of 17.44%. The EBITDA in Q4 was Rs. 109.18 crore, translating into an EBITDA margin of 14.67% as compared to Rs. 83.81 crore over the same quarter last year with EBITDA margin of 13.22%. The fact of the company has also increased to Rs 70.59 crore as compared to Rs 57.69 crore in Q4 of FY25, representing an increase of 22.36%. Now, I will briefly cover the numbers of full financial year 2526. During FY26, the company has achieved net sales of Rs. 2793.65 crore as compared to Rs. 2404.96 crore in FY25, representing a growth of 16.04%. Avita stood at Rs. 393.34 crore, translating into an Avita margin of 14.09% as compared to Rs. 320.73 crore during FY25, translating into an Avita margin of 13.34%. As a percentage of total automotive lighting, the LED lighting stand at 60% in comparison to 60% during last three years. Pet of the company stood at Rs. 253.87 crore as compared to Rs. 204.14 crore during FY25, which is higher by 24.36%. I am also pleased to share that the board has recommended a final dividend of 400 percent, that is rupees 40 per share, amounting to rupees 105.28 crore. During the year, the company has made a capex of rupees 108.31 crore. With this, I end the financial brief, and now the floor is open for questions and answers. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question is from the line of Arun Agarwal from Kotak Securities.

Please go ahead. I'm sorry, the line got disconnected. The next question is from the line of Anubhav Mukherjee from Presiston Capital.

Please go ahead. I know what's up. Anubosa, can you hear me?

I would request you to disconnect the line and please rejoin. We are not audible. The next question is from the line of Dilip Burma, an individual investor.

Please go ahead.

Here, the receivable amount has just jumped up. So I just wanted to know what cost it and are we liable to get that money back from our customers?

Sir, your voice is not clear. Can you speak loudly?

I had a question regarding receivables.

Sorry to interrupt, sir. Sir, your voice is very low, sir.

Okay.

Can you please raise your hand, sir, because we can hardly hear you.

Okay, speaking into my handset, what I wanted to ask was that this lever boost shot up this year versus last. I was just wondering if there was a problem with any of our customers and are we allowed to get our money back?

Yeah, this is Arvind. You are seeing the numbers, you are right. There is some increase in the number of debtors, but please understand there is no change in the payment terms. Earlier, we used to discount the bills from our two major customers, one is the TVS. Now, company has good cash flows and cash available, so we discontinued the bill discounting, and this is the only difference of the numbers. Otherwise, there is no difference in the terms of the payment.

Oh, good to know that. Thank you.

Thank you.

Thank you. The next question is from the line of Kush Naha from Electrum PMS.

Please go ahead. Yeah. Hi, sir. Thank you for the opportunity.

So, a couple of questions. So, first, I think on a yearly basis, the other expenses and employee cost has increased in comparison to the revenue. So, what would be the reason for that? Are we front-loading any KPIs that you're planning? And accordingly, Could you give us more color on the four-wheeler capex that we were deciding what is the amount and is there any green field according to the RFQs and interest that we've seen in the product?

Yeah, so let me question, let me answer your first question, that is about the employee cost. So as a percentage of sale this year, for full year, this is 13.80, and earlier also, this is the same as 13.62. So there is no major, you know, change, and some of the difference you will see this because of the increase in the labor cost notified recently.

Okay, and on the other part, you asked on the formula of Capex, you know, as we have highlighted in the past. Our CAPEX program, if you look at it, we look at it at a company level. We have projected CAPEX of 200-odd crores over the next two years. Last year, we did approximately 108 crores, and we will continue to invest in our facility. Some of the four-wheeler initiatives that we are doing will only already be covered in this 200 crores. If any greenfield project is put up either for two-wheeler or four-wheeler, we will advise you well in advance. At this point of time, that is not a visa. This 200 crore takes care of everything.

Okay, all right, sir. And in terms of RFQs, I think we were sitting on around 700 crores of RFQs, so any update on that in terms of conversion into business and what kind of pipeline or traction we are seeing in the four-wheeler business?

Yeah, as we already informed the last call also, it is already there and we are converting, we have already converted 70% of those RFQs into a business and which will be under development right now.

Thank you.

A reminder to all the participants that you may press star and 1 to ask a question. The next question is from the line of Anubhav Mukherjee from Pressing Capital. Please go ahead.

Am I audible now?

Yes, sir.

Okay. Firstly, congrats on a very good set of numbers. Sir, you mentioned about new business from Mahindra. So can you share some color on like, like did we bring some business for new models and what type of ramp up can we see like in the fight or some color on that to be very useful.

Yeah, we were continuously informing about our business, what we did, and what we are doing as of now with Mahendra. We started our business one and a half year before, and we are slowly and gradually being increasing one to other part, which are as a second source, and there are few projects which are being coming as a first source also. And we are working, and we have already projects in pipeline, which will be soon, once this will be launched, we will inform you in advance.

And sir, my second question is like, what type of ramp-up are we seeing in Hero Motocorp? You had in the previous call mentioned about some new model launches in which we are present. So can you share some more details on that?

Yeah, there are two models which is being launched in last quarter, two quarters. These all models are running well, and further on, EV models, which is already being included in our CMD speech, EV model also being awarded to us, and we will soon be, give you the feedback once these models will be in the market, once it will be launched.

Okay. This is one follow-up. I think Hero launched a new refresher version of Slender. I think, Super Splendor X-Tech. So, is that a model for which we are like a supplier?

As of now, we are not with Splendor, but we have other model which is being launched, and are working for new models which will, as of now, we cannot disclose it. Exactly.

And so for exports, we were doing some product development for Mercedes-Benz and they had, I think, visited our plan. So any new business win in that area?

Yeah, as we had already informed that Mercedes-Benz has given us a business which will be a testing and validation project. So this model is being well developed and we had submitted our samples for their testing and validation. Once their testing will be over, the final RFQs will be given to us for the next model development.

Sir, final question before I get back in the queue. Sir, given the commodity inflation, and I think we have some import of LED chips, and given the INR depreciation, could you give some perspective on where do you see the margins in the coming financial year? Yeah, you're right.

Yeah, you're right. There is obviously in the market, there is this whole supply chain disruption, which is causing price escalation in a number of our products. We also have some imports that we cater to, but what we've kind of explained to you in the past, for us, these are all pass-throughs. It's all very well known and understood by the customer. So, these are passed on. This price escalation, any increase or decrease, both ways is passed on to the customer. It may happen with a lag of quarter here and there, but over a period of time. So, for the full year, we continue to maintain our guidance that we will be in the current margin, which is a 14% EBITDA plus is what we target for.

Thank you.

The next question is from the line of Arun Agarwal from Kotak Securities. Please go ahead.

Yeah, thank you for the opportunity. So, my first question is on the four-wheeler business. Like, you know, one of the early participants talked about, you know, RFUs of around 700 crore, and we're talking about 70% of that getting converted into business. So, that would mean around 100 crores, possibly. So, is it possible for you to help us understand how the scale-up of revenues in this would happen, say, in the first year or second year? Just a tentative understanding on this one.

No, thanks for that question. Yes. See, first of all, let me just clarify that 700% RFQ going is into the next phase. That's not converting into an order. So let us not read it as a conversion into a fixed order. Now, specifically, over the last two years, we've kind of explained to you individual details in terms of how we have progressed with Mercedes, how we have progressed with Mahindra and several other customers. So, the order book is starting to come in, but it is still relatively low. But if I have to give you a broad guidance for the year, our current four-wheeler business could be in the range of 100 to 150 crores for the current year. And going forward, we definitely expect this to move up significantly faster, 200 to 250 crores for the FY2728. So, we've explained to you these are kind of hard-working businesses. It takes a while for these orders to come through. So, we will see a limited impact coming in this year and I would say more meaningful impact in financial terms starting next year.

Sure, sir. Thanks, sir. Just to clarify, you said 100 to 150 crore for FY27, correct, sir?

That's right.

And for FY28, sorry, I missed the number you said, it would move to?

200 to 150 crore range.

Okay, 200 to 250 crore range. So also just one small thing, did we also give the cash balance at the start, sorry, I missed that part in case?

It's around 260 crores as of today. 276 crores as of today.

Okay, 270 crore rupees. Okay, so my other question is on the, you know, the revenue growth, what we have talked about in the past, you know, so we should be growing by, say, 15 to 20% and outperforming industry growth. So, you know, going by the current scenario, you know, where currently, well, the tool industry is doing well, but then there are talks about, you know, some, you know, moderation growth that could happen because of, you know, or the monsoon. So, do we still maintain that annualized revenue growth of 15 to 20% going forward?

Yes, we continue to be optimistic for the year. We believe that, you know, the year and the subsequent year look okay, and we continue to maintain to 15 to 20 percent growth.

Sure, sir. Thanks. So, just one more thing. At the start, I think we talked about the LED penetration. For us, I think from the auto revenues right now, almost around 63-64% comes from the LED and balance 36-37% possibly comes from the halogen size. Just wanted to understand if you can guide us, sir, for the two-wheeled industry, I'm talking about not necessarily for PM, but for the two-wheeled industry, as per your understanding, what would be the current LED penetration if you could help us, possibly both in value and volume terms if possible?

It's very tough to give a specific number because there are just, you know, too many models and they keep changing back and forth. We have seen some move into LED and then come back to lighting. The only thing we can give you a specific, you know, well-regard number is that, you know, our pipeline is almost 100% LED. So, going forward, this number, which is 63, will progressively keep moving up. Now, whether it happens to go to 80% in three years or 75% or 82%, we can't predict. But this number is going up directionally.

All right. All right. Thank you so much. I'll get back in the queue.

Thank you. The next question is from the line of Yash from Avrica Capital Advisors, LLP. Please go ahead.

Hi. Thank you for taking my question. Yes, sir. So, my question is on the four-wheeler strategy. Under Mr. Vinitani, you were to talk about the four-wheeler strategy on this call.

So, can you throw some light on it and is there any delay on the strategy?

And also, Mr. Vinitani was supposed to talk about the strategy on this call. So, what can be the reason for him resigning because he was also offered an extension, I think, in March or January?

Yeah, so two, three different points there. First, let's address the point. Vinit Sani has left and decided to pursue other interests. He served with us for three years to do. And, you know, at extension time, we usually decided that, you know, it is something that he wants to pursue other opportunities. Now, what he's done is that we have had a, we sort of put together a very solid base for our four-wheeler business. We've worked hard over the last two, three years. We've got talent, we've got team, we've got all the organizational structure in place now to accelerate this business. So, to your other questions, a strategy will be put forward. The new leadership team of four-wheeler is Mr. Rajesh Sharma and Rahul Jain, who are personally seeing both the businesses. And of course, Mr. Jain is also now personally taken this on. So we will present to you a more detailed strategy on this shortly. But under no sort of circumstances should you think that there is any arrangement in any way. We are moving forward, and we've also given you a little bit of revenue guidance today in terms of what numbers we can produce here. But a more detailed strategy we will produce in the future. We are very bullish. And we continue to be very bullish in terms of what we can do in this segment because we are starting from a low base, so we can do very well.

Okay. Thank you.

Thank you. The next question is from the line of Akshay Shah from Ashika Investment Managers Private Limited. Please go ahead. Thank you for taking my question.

Congrats on a great set of numbers, first of all, and most of my other questions have been answered, but I will ask you this. If you could just help me with the average price of a halogen lighting setup versus, say, LED, just maybe average figures.

It is very difficult to reply the answer because it is totally dependent on the product wherein front lighting, rear lighting, what all kind of operations, what all kind of systems will you be adding there. The product is not only headlight, this is not high beam, low beam, there is a consequential lighting also, there is a position light, there is a DRL, so it is very difficult, but conventional to LED, it is three to four times.

Three to four times. Okay, right. And since we expect the current LED penetration of 63% to keep inching up, can we see more uptick in margins due to that, due to higher LED share?

Now, we've always maintained that the margins are, I mean, across, it is at the product level pretty much similar, so our margin take into account everything, and our margins will be similar to what we are guiding towards, 14%, around 14%.

Okay. Okay, fine. Thank you. I'll get back in the queue.

Thank you. The next question is from the line of Kush Nahar from Electrum PMS. Please go ahead.

Yeah, thank you for the follow-up opportunity. So just one question.

Are we still...

Sorry, sir, your voice is breaking off. We can hardly hear you.

Yeah, I'm audible now. Yeah. So my question was regarding a new CEO, are we still looking out for a new CEO to head the four-wheeler division or are we confident that we'll be able to drive the growth ahead since all the strategy is in place?

We have enough management bandwidth within the company. The point we have made is Rahul has taken over as the managing director. What we are trying to explain is that to give particular focus to this new segment, he decides the normal operation. He, along with Mr. Rajesh Sharma, will also personally look into growing four-wheelers so that it gets the desired attention. But we are not looking for a specific CEO for that division. We have enough management bandwidth.

All right. And then just to get a confirmation, you said the EBITDA margins consolidated will be around 14% including the four wheel of business. It is in a similar line, right?

That's right.

Okay. All right, sir. Thank you.

Thank you. The next question is from the line of Anubhav Mukherjee from Preston Capital. Please go ahead.

So, in the four-wheeler business, we have mentioned that, obviously, we are trying to scale up our business with Mahinda and Mahinda, and also, I think, we have started some supplies to force motors, but do we see an opportunity to, like, work with other OEMs, like Tata Motors or Maruti, like, what will it take to, like, penetrate these other OEMs?

Yes, we are, of course, we are bullish about four-wheeler as we have already communicated in the past and now also. We are working very closely with all the customers, especially Mahindra, Force Motor, and Tata Motors 2. And slowly and gradually, once these models will be launched and the market will gain and confident on our technology, we will slowly and gradually start with Maruti also.

And for HMSI, our revenue growth for this financial was around 2-5%, which seems to be lower than the wholesale volumes for HMSI. And in the previous call, we had mentioned that it's mainly a product mix issue, and we are looking to supply to some of the new models. So, sir, can you share, like, some color on, like, what type of new models in HLSI are we getting now?

The new business we are getting continuously, but the launch will be, of course, decided by the company. We are ready with the product, which will be launched soon, and you will know once this will be launched, because before that we cannot announce. But whatever business share as of now, we are maintaining the same.

And, sir, final question before I get back in the queue. Sir, for Yamaha, what type of scale-up do you see in the coming financial year? Because for Yamaha, you had mentioned some new model wheels. So, have they gone into production?

Yeah, there are a few models which are already been started, which are all export models, export to Europe as well as Brazil. And further on, eight or nine models are underdeveloped, which will be soon come in the production. Those are called domestic as well as global models.

So compared to this year, do we believe further like better growth in the Armaghap in the coming financial year?

Yes. And we are really spotting.

Thank you. The next question is from the line of Sahil Sangwi from Monarch Network Capital Limited. Please go ahead.

Yeah, congratulations again on very good results. My question is, we were also working on some projects with respect to the mid-lighting and some new age lighting products. So what happens about that and how do we take that ahead if you can help us understand that?

Sorry, one time again, Sahil.

So, we were working on a few products on the ambient lighting side and other new age, you know, front lamps and all of that. So, what happens on that front, the fog lamps and a few other things? Do we continue working on that? How do we think on those things?

Yes, we are continuously working on that, and there are a few products which are under POC as of now. Once a proof of product will be ready, we will be again visiting our customers to show them the technology which is being discussed and validated at the time of initial development of meetings.

Right.

And we are closely working with our partners.

Okay, okay. Got it. Thank you. Thank you.

Thank you. The next question is from the line of Rahul Majitia from ER. Please go ahead.

Hi. Thanks for taking my question. My question is more on our insurance costs. After our Tapukara fire and insurance claim, do we expect upwards pressure on our insurance and renewal costs or perhaps on our borrowing costs because of this?

Yeah, so let me split your question in two. One is about the borrowing. We already have a very healthy cash in our hand. So there is no question of borrowing post at our company. Now coming to the insurance, see this, when you see the renewal for an insurance policy, dynamics at that time works. So maybe this year we paid some higher premium. Next year that will be again negotiated with the players. So it is decided on that time only.

Okay, okay. That's understood. That will be all. Thanks. Thank you. The next question is from the line of Vinay Nadkhani from Hathaway Investments Private Limited.

Please go ahead. Yeah, I have just one question. When I see your quarter four results, your automotive lighting, not the LED part, the other automotive lighting, has actually shown a growth. Now, is this a one-time thing, or is this something which is going to be sustained going forward?

LED is going to be future.

So, as you already explained, our LED lighting share within the automotive lighting is increasing. So, whatever you mention. In some quarter, if you see some increase in non-automative, I don't know from where you are reading, but we continuously increasing 1 or 2 percent every quarter in LED lighting only. Last year, it was 60 percent. This year, it is 63 percent.

No, I was talking about the non-LED automotive lighting.

Decrease.

This is decrease, means naturally it's increase in the LED, so no not in... Non-automal, non-lighting maybe. Are you referring some slide in the presentation?

Yeah, I'm basically referring to your slide number 4, where you top off Q4 28.26% as automotive lighting, which stands to around 412 crores, as compared to Q4 171 crores. So there's a 24% growth in automotive lighting, and LED growth is 19%. So I was just thinking, is this a one-off thing, or maybe some models which came about?

No, no. Okay, so this slide you please see, it is here the total sales of the company splitted into the LED and non-LED, as well as the plastic and rear view mirrors. So when we talk about the automotive lighting only, the split is between the LED and non-LED. So this, the chart you are referring, it is actually showing the whole percentage, the whole rear view mirror as well. If anything, clarification required, you can come online. I'll get it offline. Thank you. This is already here.

Thank you. The next question is from the line of Akshay Shah from Ashika Investments, Managers Private Limited. Please go ahead.

Thank you for taking my question again. Could you please help me with the current capacity utilization that we're working with?

Yeah, current capacity utilization is in the range of 75%. We have done a capex of 108-odd crores this year to decostal next some of the lines, and we'll continue to invest over the next two years as we see the demand going up. So, you know, from a capacity perspective, we are very geared to handle our growth.

Okay, thank you.

A reminder to all the participants that you may press star and 1 to ask a question. The next question is from the line of Aditya Shunivasan, an individual investor. Please go ahead.

Hi, sir. I hope I'm audible. Congratulations on a good set of numbers. So I'm just trying to look at the products other than the auto lamps, the radio mirrors, plastic molded parts. The revenue share has been marginally decreasing year over year. So I just want to understand the outlook for the next year and if it's going to continue to decrease.

So if you can help me understand that, this is the only question I had.

Okay, so again, this, because our main product line is the automotive lighting, and this is increasing very, you know, good way. So, you are just seeing the percentage terms. The total amount is also increasing in the rear view mirror as well as the other parts, but this is very slow in comparison to the lighting. So, this is the difference, actually.

Just to explain, this is not a standalone product, so to speak, which we pursue too much. It goes to the same set of customers where lighting is going. So it's kind of ancillary to the main lighting product. And it continues to be sort of in the similar direction. Because our aim always has been to be a leading automotive lighting company, which is where our focus has been forever.

Understood. Okay. Thank you.

Thank you. A reminder to all the participants that you may press star and want to ask a question. The next question is from the line of Shubham Sehgil from SIMPL. Please go ahead. Hello, Shubham. Can you hear me?

Yeah, I'm audible. Yes.

Yes, you're audible. You can go ahead. Thank you.

Okay. Yeah. Thank you for the opportunity. I just had one question. So, all of the four-wheeler orders that we are pursuing, and as you mentioned that we are targeting around 100 to 150 crore for FF27. So, I just wanted to get an idea regarding the margins. So, are we expecting our four-wheeler business overall to be margin-accretive, or will it be similar margins as we are earning right now?

See, you know, I think the way we look at this business is at a holistic level. Right now, that business is too small to look at individual margin. Overall, we can continue to guide even while we grow this business. It will be at futile margins. This is the margin range that we think we can follow for the next two, three years.

Okay, okay, got it.

My next question was, could you just go a little bit in-depth and elaborate about the advanced IMC validation facility that we have opened up, and will it support more of the current product development, or is it for newer products, and could you just give some color about it?

So, EMI, EMC facilities, which is being installed by us, which is one kind of facilities, which is being installed by only a lighting company, wherein PM is, and this will be support us in reducing the overall development time, validation of product during the development, that too, of proto to the mass production, which will give us engineering strength of PM. With the product which will be not only used for domestic, for global market too.

Okay, got it. You know, overall, electronics is beginning to be a very critical component, and all this will happen in-house here in the, will help the MINC lab, will really help and accelerate.

Okay, okay, got it. Yeah, like, I think you've earlier also mentioned that, you know, we would be supplying to Norton as well a different kind of a lamp, right, with a different kind of technology.

So, it will help with this, right? Yeah, it will help. EMI, EMC is being required. Any kind of lamp which is being used as semiconductors, any electronic component is being used. This test is being done outside by each and every component. This is being installed inside, so to reduce the overall development time and not to wait for the time which is being taken from our outside testing agencies.

Okay, got it. And just one more update, I think in the last year or last year's annual report and earlier we even discussed that, you know, we were currently developing new products, not a different technology for the current products, but a new product entirely, like, you know, the touch capacitive, the laser technology or something other. So any update regarding these new products, when can we expect them, when can we expect to launch them?

We are ready with the POC. Proof of concept is most important, first of all, and we are discussing with all the customers. It is these all facilities and technologies being introduced first by the Indian government wherein safety norms is being introduced. We are just waiting for those norms to be introduced, and we are ready for adopting this kind of technology with the proof of concept and with the engineering, which is being already taken and proven at our end.

Okay, and will these new technologies be more of for the four-wheeler or two-wheeler or like nothing, any specific?

This is in two-wheeler, four-wheeler, both. Not only for specific any segment, this will be implemented with all the segments.

Okay, okay, good. And it would be for newer models only itself, right? So can you expect it to be in the market in the next two or three years or something like that? Or you have no idea when the norms would be introduced?

I have no idea because it will totally depend on the customers when they will adopt this kind of technology. Okay, sure.

Got it. Thank you a lot. Thank you.

Thank you. The next question is on the line of T. Chantan from Equity Research Analyst, Individual Investor. Please go it. Hello, sir. Can you hear me? Deep, sir? Yes, please. Deep, sir. Can you hear me?

No, all the time.

See, you're not audible, sir. Your voice is breaking up. Hello, pizza. I would request you to fall in the queue again. The next question is from the line of Anubhav Mukherjee from Present Capital. Please go ahead.

Thanks for the follow-on opportunity. Sir, will it be possible to share our R&D expenses for the financial year 26 to refer to basics?

Yes, this is more than 2%, around 2%. So it will come in the full annual report. You will see it.

Great. And congrats on the substantial spend on R&D, especially in the auto-component sector. Can you give some color on what are the key focus areas or KPIs for the R&D effort?

You have to get some of that.

See, there are few benefits which are mostly be required to set up this kind of R&D. And we are always the first to adopt such kind of technology within our organization. So EMI, EMC, this is being required mainly for any kind of electronic component which is being used in automotive industries or in any industries. And this will be reducing the overall development time and giving the quality product to the customer in first attempt and first go and first ride. This is a major attempt which is being required.

Great. Thanks.

Thank you. A reminder to all the participants that you may press star and want to ask a question.

A reminder to all the participants that you may press star and want to ask a question.

As there are no further questions from the participants, I now hand the conference over to Mr. Sahil Sangvi for closing comments.

I just want to thank the management for patiently answering the question. Please, please go ahead, sir, for closing the mask. Thank you.

I would like to thank everyone for participation in today's conference call. I hope that we have adequately addressed all your queries. If you have any further questions, please don't hesitate to contact us. Thank you, and have a good evening.

Thank you very much, members. On behalf of Monarch Network Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.