MV Electrosystems Limited (MVELECTRO) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to MV Electrosystems Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during 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. Akhilesh Gandhi from Stellar Investor Relations. Thank you, and over to you, sir.

Akhilesh Gandhi:

Thank you, Neerav. Good morning, everyone. I, Akhilesh Gandhi, on behalf of Stellar Investor Relations, welcome you all to the MV Electrosystems Limited Q1 FY27 Earnings Conference Call. Today we shall be sharing the key operating and financial highlights for the first quarter ended on June 30th, 2026. We have with us today the senior management team of MV Electrosystems Limited. Mainly we have Mr. Mohit Vohra, he's a Non-Executive Director. Along with him we have Mr. Pankaj Rastogi, he is our Managing Director. And with him we also have Mr. Ajay Kumar, who is our Chief Financial Officer. But before we begin, I would like to state that this call may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinions, and expectations as of today. The statements made in today's call are not a guarantee of future performance and also involve unforeseen risk and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect development that occur after the statement is made. Documents relating to company's financial performance, including investor presentation, has already been uploaded on the stock exchange. With that, I now invite Mr. Mohit Vohra to state his opening remarks for the company's performance. Post that, we'll open our floor for Q&A session. Thank you, and over to you, sir.

Mohit Vohra:

Thank you very much, Akhilesh. Good morning, everyone, and, thank you very much for joining our first investor meeting after the listing of MV Electrosystems Limited. My name is Mohit Vohra. I am among one, one among the promoter's director in the company, and as already mentioned that I have with me the Managing Director of the company, Dr. Pankaj Rastogi, the CFO of the company, Mr. Ajay Kumar, and also the Company Secretary, Mr. Sourabh Bansal. On behalf of the entire management team, I would like to begin by expressing my sincere gratitude to our shareholders and investors who have placed a lot of trust in MV Electrosystems. So as we mentioned earlier, that we are a rail-based technology company and we are actively working on 2 domains. One is rail propulsion systems, and number 2 is electrical hardware systems, systems, subsystems, components for Overhead Electrification. So both are, both are railway domains.

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August 27, 2026 September last year, we bagged our very prestigious approval for rail propulsion systems, and followed by there were series of tenders in which we bagged order book of over INR1,000 crores plus, you know, order book of 4 particular orders. For locomotive side and EMU side propulsion systems. And, after that we, we placed or we came up with our IPO requesting for the proceeds, that were required mainly for the working capital of the company to scale up operations, to scale up the manufacturing of propulsion systems. So, this, this particular, IPO or this particular request, I mean, that was, that was well accepted by the industry. And, and we had a very great bumper IPO. So once again, sincere gratitude I would like to express on behalf of the company to all the stakeholders, all, all the investors who are present today and who are present or not, also who are not present today here in this meeting, for keeping so much of trust and the confidence in the company. As we mentioned that, we, started, up, our manufacturing of propulsion system. So some of the supplies, 2 or 3 batches, small batches, have already happened. But now since we have received the proceeds, September onwards, you will see, the actual scale-up happening. You will see the propulsion systems being, being manufactured and the acceleration. You will see the acceleration month over month, quarter over quarter. And I think by the time we will reach January, you will see the scale-up, completed in the sense that we should reach something like 40, 45 propulsion systems, local propulsion systems per month, to that capacity. The factories are -- and the manufacturing facilities are already ready. Manpower is very much geared up and all the necessary ingredients are in place. The only deficiency was working capital. That is well in place now and the orders are placed on, we, already mentioned, before the IPO in our various conferences that we are an R&D-oriented company. So, we have a dedicated research and development centre. So immediately after we completed our propulsion system and received approval, this R&D centre was recognized by Department of Scientific and Industrial Research, and they acknowledged and appreciate the effort that went into it -- in having our own indigenous IPR of propulsion system. And with this, with this backing, I mean, we can, we can have, more number of programs, more number of propulsion system, more type of propulsion system for different, different, Rolling Stocks, including EMUs, including MEMUs, including specialized trains like Vande Bharat, Amrit Bharat trains, obviously locomotives of different capacities. So, all these programs you will, you will see in future. On one side, we are scaling up our operations, we are scaling up our manufacturing, our revenues. On the other side, we are working on a new program that is, that is development of MEMU train propulsion system. And I think for the next few years, you are going to witness a similar kind of methodology. On one side, we will be scaling up one program which has got approval or which has got developed.

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August 27, 2026 On the other side, you will see parallelly a new program being, being developed, being researched, researched upon, because Rolling Stock has many, many variants. So, to cater to those variants, it will require a continuous research and development, in our R&D center. And we have already expanded our R&D premises, and we are going to scale up our R&D team also for, for that matter. Parallelly, we have already started, participating in rail electrification projects because there are certain areas, there are certain systems, very specialized ones that we have developed, or, in technology tie-up with a South Korean company called PNC Technologies. And we have participated in those standards and we are very hopeful that we will win, some of those standards and this will also you know, contribute to our revenues along with our propulsion systems. So, you will see 2 very, very ambitious domains being built in the company. One would be Rolling Stock propulsion system and other would be Overhead Rail Electrification systems. And as far as economy goes and the forecast goes of the government, I mean, there is a lot of impetus on both, both the segments. We are talking about modernization of rail electrification with doubling the, 25 kV line, lines. And we are obviously installing so many systems and subsystems to, help this electrification happen. On the other side, you're talking about high speeds, you're talking about cities being, becoming bigger, we're talking about too many EMUs that are required in, in the next few years. So, both are going to be very, very ambitious, domains and ambitious applications for the products we have. So, do we say that, we are a railways company and we are a railway, concentrated company? I would say that as far as propulsion system is concerned, that is the most intricate or the most difficult subject of power electronics. And also Embedded Systems. Similarly, when we talk about, maybe automatic fault locators for rail Electrification Systems and other electrical hardware being built in the company, so that is again a subject of electrical hardware design and also embedded design. So that means, when we have done that, the company possesses very, very capable team on power electronics side and Embedded System side. So that also opens up many applications, several applications that can cater to many, many industries. So, in future, you may see a diversification happening from railways to other sectors as well. Sadly, as I mentioned that we are in the middle of very big scale-up, so, we could not participate in a very ambitious event that happens in Germany. It is a railway exhibition InnoTrans We wanted to demonstrate on a global scale that, the product we have developed and received the approval for, for the same and because of this scale-up burden, we could not do so. But next time we will be definitely participating and demonstrating our capabilities and products or rather broader range of products, in this event. And obviously this will help us take the company on the global scale. So, what do we see? We see that we have a very ambitious order book. A huge scale-up is required. On the other side, we see new programs from the railway side for different, different

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August 27, 2026 rolling stock. We see more -- many new products that will be coming in on overhead electrification side. We can see diversification, we can target diversification in different regions across the globe. We can see diversification happening in several other industries owing to our power electronics and electrification or electrical hardware or embedded system design capabilities. So hopefully, we are going to see a very ambitious company going forward in the form of MV Electrosystems. Currently, as I mentioned, that we stand on the order book of about 1,000 plus crores. And, scale up, as I've already mentioned, September -- in the month of September itself, you will see the scale up happening. And month over month, you will see a very good scale up, happening in front of you. Then I may I request our Managing Director, Mr. Pankaj Rastogi to share a few words from his side please. Pankaj Rastogi:

Good morning, everybody. Thank you very much for trusting us during IPO and of course you have trusted our technology. So I will only touching some additional parts which already Mr. Mohit Vohra has touched upon. So I will be touching that. We are touching two platforms. One will be on locomotive side. Already 6,000 horsepower platform we have cleared for propulsion systems. So we will be adding some more products into this, like hotel load converter and composite converter. So that will be on locomotive platform at this moment. And secondly, we will be upgrading this platform to rather it may be 9,000 or 12,000. That exploration we are doing anyway that study is going on. Second will be the distributed powertrains. That will be EMU, MEMU, Vande Bharat, Vande Metro and this kind of platform. Already we have backed order and already we are working on the technology. So we will be covering during design all these kind of applications because we will be designing the first time. So we will be covering the on board and underslung part also. So this will be our second one. Third thing into this, we will be targeting for high-speed trains, like we will be converting our technology from silicon to silicon carbide. We will be going for more safety-integrated levers, sill levers and then definitely we will be adding some more products through the help of our JVs or consortium, like motors. So traction motors will be adding to our portfolio also. Further, we'll be adding some more service-oriented companies with that. We will be having some more integrators who can help us for faster development of these kinds of products. And then third part will be OHE, as discussed by our Mohit Vohra ji, that in OHE we have already started one product that is AFL then new products we are exploring, and it's too early to tell about that, but we will be strongly building that OHE platform also. Third, we have DSIR approval, so we are exploring -- we have access to the government schemes also and government initiatives also to develop the new products and we can get help from the government for that also. As already mentioned that we have new R&D center in place now and then we will be soon having the expansion of R&D team.

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August 27, 2026 So we are expecting that by Q3 we will be having this team working especially for distributed powertrains. So as we are expanding also, we need some more access to the means worldwide. So that we are expanding and we are having some collaborative approach also. Like, we have for AFL, we have collaborated with BNC Technologies. For motors, we have, Hansung Motors, Korea -- South Korea. So we will be adding some more and more companies to our portfolio. We are exploring some more companies. So you will see a definitely a very good technology platform in the coming quarters. Maybe in three to four quarters you will see drastic change in our technology platform. Thank you very much. Mohit Vohra:

Yes, thank you very much from our side. And now we can come on to the question-and-answer session if you require any other information from us.

Moderator:

Thank you very much. We will now begin the question-and-answer session. First question is from the line of Vinay Chaudhary from Invexa Capital. Please go ahead.

Vinay Chaudhary:

Hello, good morning and congratulations for the blockbuster IPO. It has been a really great numbers and the trajectory what you have showcased. So, my first question is, if you can give some color on the supply chain, how are we managing the raw mat, what we are procuring, for the production what the scale-up, what we are targeting. So the inventory and what is the lead time on that note, if you can give some color.

Mohit Vohra:

Yes, thank you very much, Mr. Chaudhary. Very good question in the sense that we have a very complex product in front of us. So obviously there are thousands and thousands of part numbers. Some of them are Indian products, some of them are being imported from outside, some of them can be brought by sea, some of them by air or some of them has to be brought by sea because of their nature of heavy weight and heavy volume. So there is no common, I would say, I would say the delivery time or the procurement time. It varies from seven days and goes up to six months depending upon the commodity. But on an average, you can consider in terms of financial turnaround if you ask me. So on an average, you can say 45 days would be a nominal period that can be taken, as far as financial calculation goes on the raw material procurement side. So this is the cycle and besides that, there is a few days for manufacturing, then logistics and finally some days for the payment received from the customer.

Vinay Chaudhary:

Got it. And in terms of, like the opportunity, business opportunity for the current offerings, as a package of the propulsion system, if we want to understand per coach, how much opportunity, we can offer in terms of numbers, how should one look at?

Mohit Vohra:

It is very easy. Generally, Indian Railways is a very transparent organization. So we are right now not talking about a global railway platform. Let us talk about Indian Railways for a moment. You see that we manufacture in India, we manufacture about 1,600 plus locomotives in a year. I mean, it is not a nominal number or a particular number because right from -- since 1950, the number has been increasing consistently.

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August 27, 2026 So that graph is also available on Indian Railways website. So slowly, slowly, slowly we kept adding our capacity and Indian Railways manufacture about 1,600 locomotives. On the other hand, we would have something like, 15,000 locomotives plus population in the country and some locomotives might be very old, as old as maybe 15, 20, 25 years old also. So that will also require rehabilitation. So, a change of propulsion system. So on one side we have 1,600 locomotives, other side we have rehabilitation. We are talking about very high number of EMUs. So, at the moment what I can see, generally 300 to 500 EMUs, this year will be tendered or have already tendered, were tendered. So very big value of this thing. And then further, we have Vande Bharat trains, we have Amrit Bharat trains, we already see metros, we see RRTS programs. So, all of them are available on Indian Railways website itself with the numbers. So the total available potential that you want to estimate can be well estimated using these figures on the blog. Moderator:

Thank you. Vinay I request to come back for a follow-up. Next question is from the line of Tarun Agarwal from Tata Investments. Please go ahead.

Tarun Agarwal:

Hello, am I audible?

Pankaj Rastogi:

Very audible.

Tarun Agarwal:

Yes, hi, good morning and congratulations for the IPO, and it's always pleasure talking to you Mohit ji. I just have three questions follow-up. So my first question is related to the order tendered by PLW on 10th of August. That order got cancelled. So I just wanted to know whether we applied for the order, whether we tend -- we also tendered for the order and the order was cancelled. What was the reason? Due to some technical -- on some technical grounds and only Medha was -- Medha tendered the order. So what is the whole scenario? If you can explain in detail, that would be really helpful.

Mohit Vohra:

Actually, it is new to me also. Has our order got cancelled? No. I mean, how did you come to know about the order cancellation if it has happened? We -- none of us knows. Here sitting five gentlemen, none of us knows about any order which has got cancelled as such. Probably, maybe some wrong communication may -- you might have received because we know…

Tarun Agarwal:

I have seen this from the GEM portal, which the order was about to tender on 10th of August and it got cancelled. So just curious, was having this question.

Mohit Vohra:

New tender got cancelled or which was the tender? Which organization you…

Tarun Agarwal:

CLW.

Mohit Vohra:

CLW. And what was the subject of the tender? I mean, which kind of propulsion system?

Tarun Agarwal:

The locomotive propulsion system. It had about 127 sets,

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August 27, 2026 Mohit Vohra:

127 sets of propulsion system. The tender, then I -- we do not know but we have an active tender on CLW for 748 locomotives.

Tarun Agarwal:

Yes, which is about to be getting tender on 31st August. So I also have a follow-up question to that also. I just want to know the whole process that if the order gets on a tendering date, how long does it take to convert into an order?

Mohit Vohra:

It varies from organization to organization, I mean situation to situation. Generally, it happens within 45 days but sometimes it gets extended to 90 days also. I mean different ones.

Moderator:

Thank you, Tarun. Kindly come back for our next question. Next question is from the line of Ayush Agarwal from MAPL Value Investing Fund. Please go ahead.

Ayush Agarwal:

Good morning, sir. I hope I'm audible?

Mohit Vohra:

Yes, you're very audible.

Ayush Agarwal:

Great, sir. Congratulations on a successful listing, sir. My first question, sir, is that for the existing order book, as it was mentioned in the DRHP also the deadline to finish the order is on December 26th and we have recently only started ramping up our production. So I would first like to understand that currently what is the production per month run rate that we have come to and in case, let's say, if we are unable to deliver the propulsion sets by December 26th, what happens to the order? Do we get an extension? Under what condition? Or then rest of the order stands cancelled? So that was my first question.

Mohit Vohra:

So first of all, it is not December. I mean, the supplies has to be completed, sometimes in the month of March and some of them in next year also -- next financial year also. So, going to that, I mean, we are ramping our upper production. Probably, we have an order book, if you say in numbers, tentatively 500 plus, 564 propulsion systems in hand. Obviously, we are just starting up, so September I think we'll be able to do just 10 of them, and we will ramp it up to, 25 probably in November and then to 40 in the month of January. So, in that run rate, when we come in at a run rate 40 propulsion systems per month, I think we'll be easily able to catch up, catch up, this particular thing. However, still, if we miss the deadline, so there are always, extensions that are, that are, that are given, given to the companies because propulsion being a very important part of the rolling stock. So, the Indian Railways always try to encourage and never sacrifice with the capacity of somebody -- if somebody is trying to scale up or so. So, hopefully, hopefully we'll be able to supply. And in case it gets spillover, so then also we will get extension. And then, but however, in the due course, we already have, tenders lined up. As you have already seen, one tender is already there and due in the month of September. The order book will continue to add.

Ayush Agarwal:

That's very fair and thanks for the response. My second question, sir, is that given the way electronics costs have gone up globally and we have really fought to get the tenders like the

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August 27, 2026 current tender that we have and we have probably reduced the prices lesser than the competition, what kind of margins are we expecting on the existing order book given that electronics prices have gone up globally and I don't think we have a clause where we get a price hike. That is the first part. And second, sir, because I will not be given a chance to ask the third question, any update on what is the process and how long before we get approved as a fully developed vendor for the Vande Bharat train? That's it from my side, sir. Mohit Vohra:

So first, you talk -- you asked about the profitability, but we expected that the moment we come into the run rate, the actual the designed run rate as far as our capacity is concerned, hopefully in the month of January we can see easily, 10% plus, PAT coming in, here. Secondly, as far as prices are concerned, you, would say – you mentioned that we have reduced the prices. In case you have access to the, financial tabulations that are also very transparently -- transparent in Indian Railways, there was very, very thin, line margin between all the companies, those who have quoted, all the 6 or 7 companies that generally quote in this thing. So it is not that we have underquoted anywhere. Rather, we were L2 in, 2 of the tenders, and L1 in one of the tender. So, we will enjoy some, some reasonable amount of profit. No, absolutely no problem. But initial, 1-2 months or so or initial few months, since there will be scale-up happening, so at that time you might not see, this kind of margin coming. But the moment we are stabilized, so we'll have continuous improvement in margins month over month. This will be very, very visible to you.

Pankaj Rastogi:

One more thing I would like to add to your question, that now we are doing the bulk purchase. Earlier we were targeting the small lots. Now we have gone for 300 sets, 200 sets. So we are, we are getting some margin despite there is a change in the -- because of global situation, there is a change in the price. Thank you.

Moderator:

Thank you. Next question is from the line of Pritesh Jain from Subhkam Ventures. Please go ahead.

Pritesh Jain:

Good morning, sir. I'm audible.

Mohit Vora:

Audible, sir.

Pritesh Jain:

Yeah, good morning, sir. Congratulations on good set of listings. So my order is related -- sorry, my question is related to the MUMU developmental order which we have given around INR86 crores of amount. So just wanted to know the status on this order. When is the expected delivery timeline? And do we require separate RDSO approval for the same, or is it the same approval which we have got for locomotive is applicable on this? Product also?

Mohit Vohra:

RDSO approval is always required because these are safety-critical items, so it is always required. So, as far as, the supply is concerned, Indian -- I mean, Railways has given, 24 months to us to supply this item, and this is a reasonable time frame for EMUs. In fact, everybody, even the developed suppliers who are already approved suppliers for this thing, they also get this kind

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August 27, 2026 of time frame when it comes to when it comes to distributed powertrains, which is EMU train, MEMU train, Vande Bharat, all are same. So, within 24 months, we have an additional this thing, that assignment that we need to develop, design and develop this item and get the approval also. So, we are hoping to design and develop this, this particular product platform in next 8 months to 10 months. Further, the testing will happen, and we are -- we hope -- we see that very comfortably we will be able to supply, this, this particular quantity within the stipulated time period mentioned in the purchase order. Pritesh Jain:

So, my second question is related to the agreement we have done with South Korean company PNC Technologies.

Mohit Vohra:

Yes

Pritesh Jain:

So, this is for the...

Moderator:

Pritesh, sorry to interrupt, can you speak a little louder please?

Mohit Vohra:

Yes, yes, please, tell.

Pritesh Jain:

Yeah, yeah. So my second question was related to PNC Technologies agreement which we had signed last year for auto fault locator system. So, what kind of business opportunity and revenue potential you can see from this particular product?

Mohit Vohra:

Okay, that is a very specialized product. Indian Railways is trying to double their, lines, tracks. So obviously you require overhead electrification on that line also. So generally we call as 1 x 25 kV AC line. So, if you have 2 lines, so it will be called as 2 x 25 kV AC line. So, when, when you have this kind of infrastructure requirement, you need a very specialized fault locators. Fault locators that can immediately -- whenever, wherever there is a fault, they can immediately confirm you that after, at this particular distance, there is a fault. And so that Indian Railways can address that -- immediately, take care of that. So these fault locators obviously will be installed across India in that case, overall wherever we have electrified tracks. So, we see this happening over the next 5 to 7 years, all these fault locators getting installed. So, we saw this as a good opportunity. We then didn't want to waste time on the product development in this particular part because it was -- we were thinking that it is a time-bound activity. So that is why we tied up with a company called PNC, and I think this is one among a very, very few companies probably I would say only 2 or 3 companies globally would have this technology, and PNC is one of them, and the most competitive one, I would say.

Moderator:

Thank you. Ritesh, come back for a follow-up question, please. Next question is from the line of [Divyansh Jaju 0:32:48] from Trinetra Asset Managers. Please go ahead.

Divyansh Chhajed Jaju:

Good morning, sir. Thank you for the opportunity. So first question was around like the INR1,000 crores order book which is there. So how the revenue conversion will be there in the next quarter and the year?

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August 27, 2026 Mohit Vohra:

This year we are targeting to, achieve INR400 crores and we will achieve it definitely. Subsequent year when we will come into the run rate which I have already mentioned about 40 propulsion systems per month, which translate into something like probably INR70-odd crores. So, on the monthly basis So you can well estimate the subsequent year turnover as well.

Divyansh Chhajed Jaju:

Okay. And how the bottom line will be looking for this order?

Mohit Vohra:

We see about 10% plus PAT margin comfortably coming in from this order.

Divyansh Chhajed Jaju:

Okay. And while going through the investor presentation, I read about like MCF and Raebareli tender. So, this, in this part -- this is your new participation. So this order has been received, or like it is to be received? Like in this, we are new,

Mohit Vohra:

EMU order is already received. Sorry if I've, I've heard your questions, clearly. Can you, can you, can you, please, ask the question again?

Divyansh Chhajed Jaju:

So this question was around like in your investment investor presentation, I read about the MCF and Raebareli tender. So in this, we are the new entry picking. So order has been received in this particular segment, or it is yet to be?

Mohit Vohra:

Yeah, MCF order is already received in hand already and has to be supplied in 24 months time.

Moderator:

Thank you. Divyansh, kindly come back for a follow-up question. Next question is from line of Lokesh Surana from Sanghvi Family Office. Please go ahead.

Lokesh Surana:

Yes, sir. Hi, thank you for allowing us to ask the question. My first question is, to understand the cash flows of one order. For example, if we deliver an order today, then in how many days do we receive cash from the railway itself? And, what kind of -- have we availed any working capital facility for this?

Mohit Vohra:

As we have already disclosed in our prospectus also, we have taken a total overall time, a business cycle of 105 days. But while we have made this dispatches to the railways 3 times. So the payment is received well within 15 days timeframe always in all the 3 cases. So I think this reduces our overall working cycle in -- I think you can -- in less than -- so that it is possible in less than -- much less than 105 days. So I would say the majority of the time that will be required will be 45 days of procurement cycle. So that is the most -- this is the longest one. So when you calculate by this, so if you need to achieve a turnover of, say, about 40 propulsion systems per month, or tentative INR1,000 crores, you need a working capital of about INR200-odd crores to cater to that maximum.

Lokesh Surana:

Okay, sir. And so just if we -- if I can squeeze one more question. So for, sir, Locomotive, EMU, MEMU, and Vande Bharat, your average ticket size will be same across the 4 categories, and it -- or it would increase as we go towards the Vande Bharat? And what would be the time period that would be required for RDSO approval for each, each one, each of the categories?

Mohit Vohra:

So as far as EMU, or MEMU is concerned, as I've already mentioned, we have ordered in hand and has supplied in 24 months time frame. So, be rest assured that within that time frame we

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August 27, 2026 will develop that, get approval, and also supply the 6, train propulsion system. Secondly, when it comes to, the value of, the propulsion system, you asked me, roughly, a 12-coach EMU train is roughly INR16 crores, because it is not just propulsion system, it is complete electrics of the train here in train sets. And when it comes to Vande Bharat, at the moment it is about INR40-odd crores for the -- for how many coaches? For 16 coaches, tentatively 16 coaches. For 16 coaches, Vande Bharat train, it will be about INR40 crores when it comes to propulsion system and associated electrics. Moderator:

Thank you. Next question is from one of Deepak Poddar from Sapphire Capital Partners. Please go ahead.

Deepak Poddar:

Yeah, I'm audible, sir?

Mohit Vohra:

Yes, sir.

Deepak Poddar:

Just first up, wanted to understand, now the average, average realization per, per propulsion system is close to INR1.75 crores. Would that be right understanding? Because in your total order book, it includes 3-year AMC also, right?

Mohit Vohra:

Yeah, our supply part is INR1.67 crores. However, AMC would be roughly -- yes, we come to match this figure only.

Deepak Poddar:

Okay, so, so INR1.67 crores is the right number?

Mohit Vohra:

Yeah.

Deepak Poddar:

Okay. And my second question is on your pipeline. Can you throw some more light? So what sort of pipeline or order inflow -- I mean we have got this INR564 crores order rate. So what's the pipeline we are looking at? What sort of order inflow we are expecting for this year? Because you mentioned that for next year you are looking at 40 propulsion systems per month, so that itself amounts to around 480. And this year you are closing to do about 200. So just wanted to understand what sort of order inflow we are expecting this year.

Mohit Vohra:

Right, first of all, this is not the order value 564. This was the number; it's a number of propulsion system. The value of the order is INR989 crores tentatively for this, local propulsion. This is in hand. Over and above, there is an INR86 crores purchase order for EMU propulsion system. So, both combined together is INR1,000 plus crores, order pipeline in hand. In hand currently. So you see, you saw that this is an annual, this was an annual requirement. So, we hope to get, we are confident to get similar kind of order book from local propulsion systems very, very consistently in incoming future, every year over year. Now as far as, growth perspectives are concerned, so, on top of that, we are anyway working on EMU propulsion systems. So once this approval happens, you will see further growth on that.

Moderator:

Thank you. Next question is from line of Tushar Bohra from MK Ventures. Please go ahead.

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August 27, 2026 Tushar Bohra:

Yeah, morning. Thank you for the opportunity. Sir you mentioned the fault locator systems which are working with the South Korean company. What kind of potential exists for this technology over, let's say, a 5 year to 7-year horizon that you mentioned? What kind of tendering do you expect across years?

Mohit Vohra:

Good morning, Tushar sir. First of all, you need to understand that there are 3 components of this fault locator. One is installed at, the traction substation. Do you see substations when you are travelling in a train? So every substation will have one automatic fault locator. So between 2 automatic fault locators there is a just in the middle, there is a sectioning point. This is called sectioning point because it is bisecting that particular thing. So you need an automatic fault locator at that sectioning point also. And between sectioning point and transformer, there are 2 sub sectioning points. So there you need 2 automatic fault locators. So going by the current rate, the sectioning point, sub sectioning point, automatic fault locator is INR12 lakh per piece. Sectioning point automatic fault locator is INR24 lakh. Substation transformer is INR36 lakh. So you can well calculate how many substations are there in India, and you know a number of sections automatically, you know number of subsections automatically. So roughly speaking, between one transformer to the other It will be tentatively INR1 crores of revenue.

Tushar Bohra:

And you mentioned a few more collaborations or partnerships possible. Maybe you can just highlight which areas you're focusing on and also a bit more colour on when you mentioned global business mindset. What exactly are the steps and over what period we will start to see the results for this?

Mohit Vohra:

As far as collaborations are concerned, because these distributed powertrains are generally bigger subject because this has associated electricals also involved with that. So you need again critical components like section motors, section transformers, so, and a few, few other components like contactors, etcetera. So you need to collaborate with global or lead manufacturers who are experienced enough and have supplied them in the past in global railways. So we have tied up and we are trying to tie up, make more and more tie-ups on these product lines. Secondly, as you asked about the global stage, we will very soon, I mean immediately after the scale-up happens and we get stabilized, we would want to demonstrate these capabilities on the global stage. And generally, generally, InnoTrans or a German exhibition is a platform where it is done very widely because all the global railway players are generally present in that particular platform. So, in the next InnoTrans exhibition, you will see our stall, our exhibition there, the product exhibition there. And hopefully that will give us a good, start-up point, on, to present on the global scale.

Moderator:

Thank you. Next question is from the line of Rohit Charan from iThought PMS. Please go ahead.

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August 27, 2026 Rohit Charan:

Good morning, sir. Congratulations on the IPO. My first question is on the memu preparation propulsion system, like the after the execution of this development order, you will get large orders later.

Mohit Vohra:

Yes.

Rohit Charan:

So with this consortium continue for the future years, or you will develop the system in-house and participate independently?

Mohit Vohra:

Yes, as far as the business I would say the future of the business is concerned, you talked about the, EMU is going to be, a very great future next one decade or one and a half decade at least. You know, the small, small cities are getting very bigger, like the small cities like Chandigarh, Jaipur, or maybe several cities in South India, West India, they are exploding. And the distance between the 2 cities is also decreasing. So now we need EMUs to cater to those populations here and there. So very soon you will see very, very big amount of tenders on annual basis, regular basis coming in for EMU. We already have published, maybe, maybe 4 to 6 tenders on EMU, active tenders on the EMU. So EMU is going to be a future of Indian Railways. We, will be completing our product as, as I mentioned within, within 1 year and subsequently, approval after that and hoping to supply this within a stipulated time frame. But immediately after this approval, then we will approve for bulk quantities, bigger quantities, and we'll be participating on all the tenders that, that we will see here in India, rather on the global scale as well.

Rohit Charan:

Yes, sir. My question is that, will you make it completely in-house? That's my question sir.

Mohit Vohra:

Completely in-house. It'll be designed and developed completely with our own IPR, with our own technology in-house.

Moderator:

Thank you. Next question is from line of Vignesh Iyer from Sequent Investments. Please go ahead.

Vignesh Iyer:

Hello, hello? Am I audible?

Moderator:

Go ahead, sir.

Vignesh Iyer:

Yes, hi. Yes, so, sir, my question is, on the R&D part of it, how do we see the R&D expenses panning out every year? I mean, for, for that matter, if you could guide for the FY27 and '28 numbers?

Mohit Vohra:

The R&D expenses, annual R&D expenses, it is tentatively, INR9 crores per year, for the company. However, we may expand our R&D team a little bit, in near future to cater to, this EMU or Vande Bharat design and development requirements. So at the moment it stands at INR9 crore, I believe.

Vignesh Iyer:

Perfect. So, so considering the model we have in place where everything is done in-house and the IP is in our name.

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August 27, 2026 Mohit Vohra:

Yes.

Vignesh Iyer:

And, and, we will continue with the similar model in the future, is there any number in mind like, we will be doing like 3% or 4% of our revenue, let's say 4 years or 5 years down the line, as consistently as our R&D spend, like many of the original equipment manufacturers or a lot of, maybe not on the manufacturing side but engineering side, but on a pharma side where they have a certain percentage of their turnover fixed as an R&D expense?

Mohit Vohra:

In our case, it will be 3% to 4% roughly. You can take roughly 3% to 4% of the total revenues.

Vignesh Iyer:

Okay. And, sir, on the capex...

Moderator:

Sorry to interrupt you Vignesh, please come back for a follow-up question. Next question is from Yash from Inved Research. Please go ahead.

Yash:

Yes, hi, am I audible, sir?

Mohit Vohra:

Yes, yes, please.

Yash:

Yes, so sir, I'm very new to railways, as a market as such. So just before stepping into, MV, I just want to step, take a step back and understand the propulsion market itself a little better. So could you explain like, annually what kind of demand is there currently and in future what kind of demand for propulsion system can we see and who are the existing players supplying it and who are the new players getting into it? Like recently a listed company called Hind Rectifiersalso got some developmental orders from railways. And, existing, I know only Medha is there. So, are there any other players? And are you seeing some more players getting into it? And, can we see some cost pressure and margin pressure due to this?

Mohit Vohra:

See, adding on the propulsion system, first of all, I would say propulsion system supplier is always welcome in any country of the globe. Globally we have what, not more than 9 to 10 manufacturers of propulsion systems globally I'm talking about, and that caters to the entire railway fraternity of the world. So, fortunately we were successful and we registered our name among these 9 or 10 suppliers last year September, and I think, It is, it is very important also for a country, point of view to have our own IPRs and our own technologies because you sometimes cannot demand, you know, help from other countries on your priorities and all your platforms. So our countries have our own priorities, have our own subjects, have our own requirements. So if we have Indian-originated IPRs, indigenous players so that can support very much, to, to these platforms, and we can, we can prioritize this. Number 2, when you talk about the overall, potential of propulsion, business, so rolling stock business is very huge globally. Why do we consider only Indian Railways? We have locomotives running all over the world. You talk about USA, we have 240,000 kilometers of track as compared to 80,000 kilometers in India. We have much bigger tracks in maybe, maybe in Russia, maybe in China. So globally, if

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August 27, 2026 you talk about, there is a huge requirement of diesel locomotives, electric locomotives, metro trains, DMU trains, or high-speed trains. So it's a very big, industry or application, application you can see. Talking specifically about India, we have already mentioned we do 1,600 manufacture 1,600 locomotives every year in India. We have 15,000 locomotives already running in India that sometimes get retrofitted. And we, we do about 300-400 EMUs every year. We, we have specialized trains like Vande Bharat trains, Amrit Bharat trains now. You are talking about our RRTS, Rapid Rail Transit Systems. So these kind of corridors will come in Delhi, in Mumbai, in southern part of India. So, all these add into a very huge, total available market or the potential for propulsion industry. Moderator:

Thank you. Next question is from line of Kushal Goenka from Mangal Keshav Financial Services. Please go ahead.

Kushal Goenka:

Hi, thank you so much for giving me the opportunity. Sir my question was that we have been heavily investing a lot on the R&D since last 5 years and still expanding more. Is there any insight that you would want to share related to the same, whether we can gain some cost advantage over our peers or that our products are more specialized, or is it at par and that L1 bidder will always be the winner? That's my first question?

Mohit Vohra:

Your voice had, echo, or I don't know, I was, it was not properly audible. I mean, you will have to repeat a question probably.

Kushal Goenka:

Yes, sure, sir. Can you hear me now?

Mohit Vohra:

It is, it is not very clearly coming. Maybe please try again.

Kushal Goenka:

Is it better now, sir?

Mohit Vohra:

Okay, you carry on please. We will try to, we'll try to get it.

Kushal Goenka:

Yes, yes. My question was that we have been heavily investing a lot on R&D since the last 5 years and still expanding more. Is there any insight that you would want to share related to the same, whether we can gain some cost advantage over our peers or that our products are more specialized, or is it at par and that L1 bidder will always be the winner?

Mohit Vohra:

Very right. First of all, L1 bidder will always be the winner, but as far as propulsion is goes, Indian Railways keep everybody in business. Do you know that last time when we bidded in the tender, there were 7 winners in that? And even all 7 were given, given small quantities because it is very difficult to build a capacity, manufacturing capacity of propulsion systems. So when it is done, so, so they ensure that everybody gets sufficient amount of business so that their business gets running. So that is why that we say that it is very, very safe business in that case. Number 2, you talked about, R&D, one after the other. See, locomotive, propulsion systems, was a very consistent

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August 27, 2026 business. So we decided to start with locomotive propulsion system because we had a history from 1950 onwards. We can see till 2026 how many propulsion systems got built and how many locomotives I mean, year-over-year there was a growth. So we found it very promising so that we have a very stable order book, very stable revenues with this. And then we, when we build this R&D center, when we build these capabilities in-house, it makes all the sense to utilize these capabilities and R&D center to make more number of products, which is, which is actually required by India, our own IPAs, as I mentioned. So that is why we started up with EMUs now, because EMUs will be in very big demand, in next one decade, one and a half decades. We will see very huge number of EMUs coming in. Now subsequently, when we do EMUs, the trains like specialized trains like Vande Bharat has the same platform, same platform, only little bit of change in mechanical, mechanical systems, or maybe little bit change in electrical hardware, but the basics, basics are same. So it makes again all the sense that when you have your R&D center, why not to build more number of products, churn out more number of products so that it adds to your revenue yearover-year. Moderator:

Thank you. Next question is from the line of Tanishka Agarwal from Nivesha Investment Advisory. Please go ahead. Tanishka, sorry to interrupt, can you speak through the handset please?

Tanishka Agarwal:

Am I audible?

Mohit Vohra:

Yes.

Tanishka Agarwal:

So my first question is, what is the expected timeline for securing approvals in Vande Bharat and Metro Propulsion, and when we are expecting to apply?

Mohit Vohra:

The EMU propulsion systems, we are expecting that we should get approval,

Pankaj Rastogi:

Approval time is around 3 quarters. 9 to 10 months.

Mohit Vohra:

Over and above development time right. So you can, you can consider that it will take about a 15-month, 16-month time frame to achieve approval for EMU propulsion system.

Tanishka Agarwal:

And my second question is like post-approval, what is the number of propulsion equipment delivered and what is the EBITDA margin we have realized on it?

Mohit Vohra:

As far as, supply of propulsion system is concerned, as we already mentioned that we are scaling up currently. We will supply first 10 propulsion, I mean, 10 propulsion system in the month of September. We will scale it up in November to 25. We'll scale it up to 40 numbers, in the month of January and will remain consistently supplying about 40 propulsion system odd, every month, month-over-month. Initially, the margins were very constrained, or I would say negative margins because the quantities are very low. But the moment we reach this figure, I think we are expecting a PAT of more than 10% easily. From this revenues.

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August 27, 2026 Moderator:

Thank you. Next question is from line of Anand Modi from Finavenue Growth Fund. Please go ahead.

Anand Modi:

Hello?

Mohit Vohra:

Hello.

Anand Modi:

Hello, am I audible?

Mohit Vohra:

Yes, yes, please.

Anand Modi:

Yes, thank you for the opportunity. Mohit-ji, when are we expecting Unit 2 to be set up?

Mohit Vohra:

Unit 2 is already set up. In fact, we, are, starting, to fabricate our boxes and the assembly part Monday onwards.

Anand Modi:

Okay, okay. And how do we recognize the R&D expenditure? Like, do we capitalize or expense it out in P&L?

Mohit Vohra:

We, we do not capitalize. We have never capitalized. In future also we will not.

Moderator:

Thank you. Next question is from the line of Research Team from Elpro International Limited. Please go ahead.

Vinay Maheshwari:

Am I audible?

Moderator:

Yes, sir, please go ahead with your name first.

Vinay Maheshwari:

Yes, my name is Vinay Maheshwari from IGEs Family Office. So my question is related to the capacity. Currently in this year, we will be able to deliver approximately 200 propulsion sets, and next year, given that 20-per month propulsion set we will be making, so this comprises 480 propulsion sets. And with the order book, we are taking that we will be able to achieve the same level of the order book in the next year and the given year. So, so how do you see this capacity? Will this be capacity constraint in terms of growth from FY29? Just wanted to understand from you.

Mohit Vohra:

No, see, as far as capacity is concerned, we, we can, do, or rather we have built up a capacity to do even 55 propulsion systems per month, but we want to stand on 40 propulsion systems per month so that there is a consistent flow, there is a consistent flow of revenues, year-over-year or quarter-over-quarter and it is not disturbed. Sometimes what you do is you generally build a bigger capacity and you remain, unoccupied, so that leads to losses. So we, I mean, considering the past trends and the future projections, we see that 40 number, 40 locomotives per month is, is, is a very safe bet that will keep us occupied. And further capacity could be used for EMU propulsion system because that is also not far away from us.

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August 27, 2026 Vinay Maheshwari:

Okay, got it. And my second question is that on the working capital days, given that we have a huge days payable, approximately 238 days, so how do you see this going forward and what working capital days would be sustainable in future? And when we expect the cash flow from operation to be positive?

Mohit Vohra:

First of all, the total business cycle or payment cycle is less than 105 days. That, that's what we mentioned in our prospectus. I would say, last three dispatches that we did, production we did and the dispatches we did and the payments we received, the entire cycle got completed in 85 days. I'm not saying that it will happen every time, but last three, last three times it has happened, that we received the payment right from the start till the payment received. It was total of 85 days. So, I do not know 238 from where, you, have, seen. Probably maybe, maybe the first propulsion system, or maybe, maybe some, some other product, you might have seen, in this thing. Secondly, talking about the profitability part, We are very hopeful that in next 2 to 3 months you will see us being profitable because 25 propulsion systems per month is also substantial quantity, all quantity, and that will, that will make us comfortably profitable.

Moderator:

Thank you. Next question is from the line of Ashish Soni from MM Capital. Please go ahead.

Ashish Soni:

Sir, you said 40 per month propulsion systems capacity. But, annual tender for locomotives is just 600, 1,600, right? So how do you plan to utilize the capital and how much you can win every year?

Mohit Vohra:

This year we won, I think, about 560, locomotives. So very hopeful that, we will be able to bag beg, definitely 480 propulsion system year after year. That is, that is very much possible. And, being an Indian supplier, being -- having, having a lot of flexibility, very much possible. Secondly, there is always a growth that we have seen in the past trend in the locomotive quantities. You know, a few years ago we used to see, 1,100 locomotives being built. Today we are building 1,667 locomotives, or last year we did. So there is always increase year over year. So that also contributes to, the order book, or maybe, maybe maintaining the same level of activity.

Ashish Soni:

And second question on the Vande Bharat, train, the propulsion system, where are we statuswise and how will this propulsion system capacity be utilized? Because it's a bit different, you mentioned, right? So between the, the normal locomotive propulsion system, EMU, and the Vande Bharat.

Mohit Vohra:

First of all, the manufacturing facilities or, or the production facilities or the machines remains the same whether you manufacture locomotive or you manufacture, Vande Bharat kind of trains. Generally, we call it as distributed power propulsion system. You know, there are 2 types of propulsion system. One which is used in locomotive is called concentrated propulsion system because it is concentrated within one locomotive. And when, you have trains like Vande Bharat, EMUs, MEMUs, it is distributed.

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August 27, 2026 So as a layman, you can say you, cut this propulsion system into, or divide this propulsion into small, small pieces and attach this below each and every coach of, the train. So you have distributed the propulsion in that case. So that is why EMU work on the same platform, Vande Bharat work on the same platform, MUMU work on the same platform, Metro train work on the same platform. So, once we do EMU train, then, doing all these other trains would be -- would be -- would not take much time, much time to complete. It will be just a little bit of iteration in mechanical, little bit in iteration in the software we have, and having our own IP, it will be even quicker. Operator

Thank you. Next question is from line of Darshan Darshit Shah from Nirvana Capital Group. Please go ahead.

Darshan Darshit Shah

Thanks for the opportunity. Sir, in terms of the capacity you mentioned, so do we intend to do two shifts, from next year, and hence, 4,500 systems we intend to manufacture?

Mohit Vohra

Yes, we have made -- already made 2 units, and we will be running further 2 shifts also on top of that, in our existing factory.

Darshan Darshit Shah:

Got it. And sir, in terms of, capex, how -- is there any capex that we now intend to do for a year or 2, or there is no further capex required from the company, you know, at least for this year and next year?

Mohit Vohra:

No capex required on machinery, production, etcetera. Only capex required will be the testing machines or test setups. And, I think we have already ordered three more test setups so that we can test more number of propulsion system and supply faster. And hopefully we'll be completing the installations in next 45 days' time, 60 days' time or so.

Darshan Darshit Shah:

Sure. Thank you, sir.

Moderator:

Thank you. Next question is from line of Ankur from Genuity Capital. Please go ahead.

Ankur:

So, if you can help us, the, the deliveries you have done in Q2 so far, that will get us some more color on the run rate for this quarter or whatever guidance you have given in the presentation.

Mohit Vohra:

Q2 is how many, how many, how much quantity? Q2,

Ankur:

Yeah, this quarter, let's say the two months almost which are over.

Mohit Vohra:

We have only one month left, so in 1 month we'll be able to supply 10 propulsion systems. That's what we are targeting.

Ankur:

Okay, so sorry, for the first two months there is no delivery so far, right?

Mohit Vohra:

No, no, devliery no, in past 2 months. September, it will be 10 numbers.

Ankur:

Okay, sir, all the best. Thanks.

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August 27, 2026 Moderator:

Thank you. Next question is from line of Darshil Jhaveri from Crown Capital. Please go ahead.

Darshan Darshil Jhaveri:

Hello, good afternoon, sir. Thank you so much for taking my question, sir. A lot of my questions have already been answered, so just wanted to know, right, so I think we said that, you know, around 1,600 locomotives you know, new orders come in. So when does the order inflow start, right? Like, I just wanted to understand, like, currently we are fully booked in our capacity, right? But the new order that, you know, annual order, so when can the new order start coming in? Like, what is our target for, you know, the order book during the year end, sir?

Mohit Vohra:

Generally, you can see in the month of September the tenders start happening. I mean, don't quote me, but little bit here and there, one month here.

Darshan Darshil Jhaveri:

Yeah, yeah, some range is okay.

Mohit Vohra:

Nominal month wherein the tendering process starts happening. So, obviously in line with that, CLW tender for I think about 748, if I'm not wrong, locomotive propulsion system is already published. And, subsequently we see, CLW is always the first one, followed by Banaras Locomotive Works, followed by Patiala Locomotive Works. So those two tenders will all also be coming in next, next few weeks, weeks timeframe. So by the end of the calendar year, we will have these orders finalized and orders given to the suppliers.

Darshan Jhaveri:

Okay, okay. So, by the end of the calendar year, we'll also have those orders in hand, right? I just wanted to know, like, who are the other players you're competing with, right? Because with our current capacity, we can serve nearly one third of the market, right? So is there like a high competition in this place, or, you know, how do we manage that part, the competitive intensity, sir?

Mohit Vohra:

As far as, the competition is concerned, we have global players, like Siemens, Alstom, ABB, and Indian players like Medha. You have already mentioned BHEL. So we could manage to bag beg, as I mentioned, about 25%-26% of the total quantity that was tendered. And we are very hopeful to maintain this particular percentage in the coming times. And that is why I mentioned, I mean, we can increase our capacity also, absolutely no problem. That we have a capacity of 55 local propulsion system per month, but we want to keep it very consistent. So that is why we chose 40 propulsion system, per month, to do so that, so that, we are very stabilized in this, in this process.

Moderator:

Thank you. Next question is from the line of Rahul Yadav from Motion City. Please go ahead.

Rahul Yadav:

Hi, congratulations once again, like everybody has done, and most of my questions have been answered. I just have one question, that, you know, what is the kind of, bidding pipeline? How much have we built, bid as on date for which we haven't received orders? And what is the likely, amount of number of, tenders expected before March so that we can have a little visibility beyond what order book we already have?

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August 27, 2026 Mohit Vohra:

So, as I mentioned that the tendering cycle has just begun in the month of September, so we have an open tender. We will be bidding in that tender for 648 748 locomotives. Further, subsequent months, I think we will have tender from Banaras and Patiala Locomotive Works that will collectively, again fall into something like 1,600 to 1,700 locomotives. Besides this, we have, I think, about 100 plus EMU propulsion system tenders published by ICF Chennai, and further 200 train sets electricals published by ICF Chennai once again. So these are all open tenders till now. I mean, these are not closed. We have not bidded. None of them is bidding till now. So, we are preparing our documents, and hopefully, yeah,

Rahul Yadav:

Right. Thanks, that gives a good amount of visibility that beyond this present order book also we have, visibility for the production lines to remain active beyond that. Now second question is that as of now we saw that, there was one competitor, Medha, in the particular segment we are talking about. Now, next year, are you expecting any third player to come in this domestic player, or this is about it for the moment?

Mohit Vohra:

I cannot comment on any other company. However, in case somebody is competent, wants to come, they are most welcome because we need to build our own capacity in India. We need to give priorities. You know what happened, you all know that what happened on in, in, bullet train project, we, we got delayed a little bit on rolling stock, rolling stock side. If we had our own, technology, had it been delayed, we would have been operating our bullet trains by now. So, so that is why it is required to build -- it's the time to build capacity in India so that we -rather, I would say we should work in collaborative approach. That's, that's what we say in our company. I mean, between the companies also, so that so that we can, we can contribute better, towards, towards modernization, towards the requirements that Indian Railways has and other industries has. So, we would welcome those IPRs, those engineered technologies, in case they come through.

Moderator:

Thank you. Next question is from line of Prateek Shrivastava from Nivesh Wisdom. Please go ahead.

Prateek Shrivastava:

Sir, again, congratulations on a good future prospects. So, my question again, you in the beginning of the call you mentioned about the optionality, right? And of course, we as an investor like optionality. So can you, throw some three to four year vision on renewable energy, industrial power systems, energy storage where your technology is also relevant?

Mohit Vohra:

We see, in electrical transmission and distribution or electrical sector I mean, we have a very good role of power electronics and definitely we are going to participate in that process. We see marine or naval as a very potential industry for that matter. We definitely would want to -- love to participate in that process. As you already mentioned on renewable side, obviously there is also a very big need of this power electronic sector.

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August 27, 2026 Converter inverter system, etcetera. UPS. So there also, we will remain very much busy in railway systems for the time being. But however, we are planning somehow to get into electrical and marine sectors also, primarily. As far as renewable is concerned, we have not planned Moderator:

Thank you. Next question is from line of Tushar Bohra from MK Ventures. Please go ahead.

Tushar Bohra:

Yeah, thank you for the follow-up opportunity, sir. First, quickly, if you can highlight, given that marine propulsion systems is an area of interest for us, my sense is it would be a few years for you to even build that out. So even if you're assuming, let's say, a 3-year, 4-year out opportunity, the initial preparation work should already have started, or may -- I expect it should start soon. Maybe you can just highlight what, what is the plan of action, how we want to build that vertical out. And second, you mentioned silicon carbide technology, you know, the propulsion systems will move to that. If you can maybe give more qualitative details around that and what work we are doing and how that may be relevant, say, from a 2-3 years out perspective.

Pankaj Rastogi:

Okay, first thing is the marine converter, that already the technology is analogous, means it is a similar kind of platform, or in terms of ratings and in terms of voltage class. So, it looks similar, but it's still, as mentioned by Mohit ji, that at present we are fully occupied with this MEMU and our existing propulsion systems. Anyway, we are exploring this market, but initially we will be targeting the 500 kilowatts system, which we are developing for total load converter also, 500 kilowatts system. So, it will be matching with this, that kind of basically modular-based concept on that. So, this is the first thing regarding marine. Only thing which we are doing right now is because we are developing the hotel load converter that is also having the same capacity electricity, and same modular structure we would like to use for marine application. But still, we are studying more and more on that. Second thing you asked me, the silicon carbide. Since the train speed is the major concern right now, so if you can reduce the size and the weight of the converter inverter systems then it will be helpful because more lighter, then you can go at higher speed easily. So first we are targeting with the auxiliary converter, the silicon carbide, and on the auxiliary converter level. And once we will demonstrate this to Indian Railways, and Indian Railways also want for propulsion system that you should, include the silicon carbide development into as a that. So, first application will be our auxiliary converter, and second, at traction level, we are also searching some better device because worldwide the device is very, very expensive and is still under development phase. So, we are also means having eye on that.

Moderator:

Thank you. Next question is from the hand of Bharat Sharma from Three Sigma Asset. Please go ahead.

Bharat Sharma:

Thank you, sir. All my questions have been answered, right? And congratulations on a successful IPO and best wishes for a great future ahead. Thank you.

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August 27, 2026 Mohit Vohra:

Thank you so very much. Thank you.

Moderator:

Thank you very much. Next question is from the line of Ayush Agarwal from MAPL Value Investing Fund. Please go ahead.

Ayush Agarwal:

Yeah, thanks for the opportunity, sir. What I would like to understand is, you know, for the Vande Bharat propulsion system, exactly which stage are we in, and, you know, what are the next steps in terms of becoming a fully approved vendor there? Yeah,

Mohit Vohra:

So, as I already mentioned that Vande Bharat propulsion system is a distributed power propulsion system. This is, similar in principle to EMU propulsion system. So we are developing our EMU or MEMU propulsion system. We are hoping that we will complete our product in next 10 months time frame. And once, once we do so, then I think little bit of iterations here and there in mechanical, software, power hardware, Vande Bharat propulsion system can also be built. Even metro train propulsion system can be built. Even any other distributed powertrain propulsion can be built. So just wait, 10 months or so, we will, we will have this distributed power propulsion system, ready with us.

Ayush Agarwal:

And what kind of trials will we have to undergo after that?

Pankaj Rastogi:

If I talk about the MEMU train, so there are two, three, stages they are validating the product. One will be in the commissioning shed or commissioning depot because MCF, or we will be supplying to MCF, so they will be validating there for three months. So, there is a protocol is there. So, after that validation, it will be validated, some performance trials will be there on the field. So, they will be validating from Delhi to Ambala Road that they have mentioned it, and there is a different kind of trials on different speeds and different distance acceleration and decelerations are calculated and verified with the whether the supplied product has that kind of capacity or not. After that, there is a trial for 4 months' time, and which normally goes -- they normally see whether it is 30,000 kilometers or 4 months' time. Then after that, the, the approval is given.

Moderator:

Thank you very much. Thank you very much, ladies and gentlemen. We'll take that as the last question. I'll now hand the conference over to Mr. Mohit Vohra for closing comments.

Mohit Vohra:

Is there any question or --

Moderator:

No, sir, we'll take that as the last question. We can proceed for the closing remarks.

Mohit Vohra:

Okay, great. I, once again, express -- I want to express a lot of gratitude to all, all, all the participants, all the investors, all the stakeholders, for, for participating in this, in this conference call. And thank you, thank you very much. In case anybody desires, you are most welcome to visit our R&D center, our factory. You are most welcome, to, to see the infrastructure that we possess and the way we are progressing. Thank you so very much. Namaskar. Thank you very much.

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MV Electrosystems Limited

August 27, 2026 Management:

Thank you.

Moderator:

Thank you very much. On behalf of MV Electrosystems Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines. Thank you.

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