Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Nitij Mangal from Jefferies. Please go ahead.

Hi, thanks for taking my questions. I have a couple of questions. Firstly, Swastid, you talked about margins staying broadly stable on a full -year basis. But can you talk about two things . One, how do you see that trajectory, let's say, through the quarters? And secondly, when you think of different cost impacts in terms of commodities, fuel, and labor, which of these are easier to pass on, which ones do you think you'll be able to absorb? So how do you get to a stable full-year margin despite all the cost pressures?

Thank you so much for the question, Nitij. So when I think about stable margins, I think there's two particular factors that affected us for our Q4 performance of FY26. The first thing was, as my father mentioned, the one-time loss in our aerospace and defense segment of around INR94.7 million. We expect, as we mentioned before, this loss to be one-time and hence we expect Belrise SDM as a subsidiary to be EBITDA positive going forward, so that gives us increased confidence. And in the ongoing oil crisis, we're getting affected by around four unique factors. One is the inherent increase in fuel cost, two is the increase in transportation costs, third is our labor costs, and fourth is the related personnel costs. I think when it comes to passing these on to customers, we'll be looking to pass on the fuel costs and labor costs over a period of time to our customers, while on the transportation costs, we're still in discussions with a couple of our key OEMs and that is something that we'll get more clarity on going forward. So while this current situation may still persist, we again, as we mentioned before, expect this situation to be short-term and as we mentioned, maintain our guidance for the full year. Another cost that particularly affected our performance in Q4 was that we did two acquisitions, SDM and Chester Hall, both of which required legal and professional fees which were paid out in Q4. Again, we expect these to be one -time expenses. Of course, if there's any further acquisitions, then we'll again incur these expenses, but this is something that we don't believe will be recurring on a quarter-to-quarter basis.

Thanks, Swasti d. And secondly, on the new OEM orders that you have gotten on the two - wheeler space, can you talk about how can we scale up? Is there opportunity to supply a lot more to these models ? Because it seems you have gotten orders from two of the largest selling vehicles? And let's say over the next two, three years, how big can these two OEMs become for you?

Yes, so I'll go one by one. Firstly, talking about the customer who is the fastest -growing two- wheeler and three-wheeler OEM. So the engagement with this customer on a meaningful level started around 18 months ago, as I mentioned earlier. First, we supplied steering columns to them, which for the full industry was a monopoly product. There was only one supplier over three decades supplying the steering column to all of the three- wheelers as well as the scooters in the industry. We broke the monopoly with our superior engineering advantage as well as our manufacturing capability, and we were able to give a product to the customer which had much lower quality rejection and much higher automation. I think this was the first element in which they gained trust on not only our manufacturing capability, but more importantly, our engineering capability. Following this, they also invited us to quote for their suspension program for the three -wheeler, again an engineering product that we were offering them which was as good or better than their existing OEMs. So we were able to give them a product at a decent price, again with sustainable engineering advantage. So both of these products, as you'd imagine, are challenger products for us. These products are not our bread and butter, these are products that we're still scaling in. And for this OEM to trust us in these products was a massive vote of confidence. Once we have proven ourselves, and now that we have proven ourselves in both steering columns and suspensions, the discussion right now is on a much larger basis where now, as I mentioned, we are starting with exhaust systems and fuel tanks for one of thei r highest-selling models. And over the next one to two years, to your question, we'll build a complete basket with them where our content per vehicle will go up sharply and again we'll penetrate across multiple different models. Right now, we're talking about a brownfield facility in Bangalore, which I would like to reiterate is one of our sharpest ramp-ups that we've seen over the past three years. We expect this ramp -up to happen quickly and based on that, expect this customer to become very large for us over the next two to three years. On the second customer, which is a large Japanese two -wheeler OEM customer, again we've been in discussions with them for a while. I think again the trigger for them to give us more business was the crisis that they faced in Q3 and Q4 while the complete supply chain was reeling with challenges related to labor, fuel or transportation, we were largely able to control our supply chain and manufacturing well. Seeing our confidence, we were able to in a span of eight weeks, take over the parts of one of their smaller Tier 1 suppliers, and this imbibed a lot of confidence in them. They saw the agility in which Belrise moved, and based on that, they've given us an order for the exhaust systems and other metal parts for their highest-selling model, which we believe will allow us to generate revenues of excess of 2,000 million or aroun d INR200 crores annually. Again, this was a customer where our presence was negligible. And this, again, is a very fast-growing customer. So both of these customers put together their contribution to our current revenues are negligible or minimal. With these two wins, we expect them to become very large for us over the next two to three years.

Got it. Thanks. And third is on aerospace. So let's say when you think of next -- I know these businesses are so small, but when you think of next four, five years, how much can aerospace start to contribute to your revenues? And are there opportunities to also start manufacturing in India?

Right. So aerospace and defense, as we've mentioned previously as well and on today's call, fundamentally it is an area of focus for us. We want it to be a meaningful contributor to our revenues, growing upwards of 10%. And if I can just elaborate on how we plan to get there and why it makes a lot of sense, there are four specific points. Number one, it's a market with unprecedented demand. India is one of the largest procurers of aircraft. The order pipelines are upwards of a decade. So if you were to order a new aircraft, for example, today, it would take about 10 to 11 years to get a new delivery. And the largest airlines that are ordering aircraft are based in India. So there's a massive captive demand. Number two, the current manufacturing that is localized in India at the moment is very limited, but there is a massive growth that is coming in this space. As I'm sure you've seen, there are the aircraft OEMs as well as the engine manufacturers have publicly announced their ambitions and targets of setting up manufacturing in India, localizing a large portion of their business in India. And unfortunately, the current ecosystem doesn't exist . But we're building that ecosystem for them in India. We currently have those relationships with the customers given our acquisitions in Europe, and that is the target for us going forward. Number three, specifically with respect to India, the OEMs and the aircraft engine manufacturers are not looking at India as a low-cost manufacturing base, but as a best-cost manufacturing base. There are those engineering capabilities which fortunately we 've built at scale, and given our acquisitions, we're very fortunate to have those capabilities in place already, and we're currently engaging with them. Beyond that, in the short-term, they are looking at transferring and shifting or giving us new orders to move from UK or from Europe to India as well. That's in the short -to-medium term. Lastly, there's a lot of government tailwinds, which is very positive. Overall, with these M&A acquisitions, we're able to very drastically reduce our time to entry into the market, gain capabilities, and most importantly, gain certification qualification, which would take a very long time to get organically. And we have those customer relationships that we've built with marquee customers in Europe, which is going to allow us to grow that significantly and capitalize on that in India as well.

Thanks, Sumedh, and thanks, Swastid. Wish you the best.

Thank you.

Thank you. Next question is from the line of Vipul Agrawal from HSBC. Please go ahead.

Hi team, thank you for taking my questions. Actually, I have a few questions, starting from your plan for QIP. You just announced that you'll be doing a QIP of INR2,000 crores. So is it for the repayment of debt or some new acquisition, or what's the plan if you can help us understand?

So Vipul, thanks for your question. At this point of time, it's only an enabling resolution. I would also like to clarify that up to INR2,000 crores, we will come back to you on the right time if there's any further progress on this.

Okay, makes sense. My second question is on the exhaust system. You talked in details in the previous answer. Just a few things over here. Like, is it a, given that exhaust systems are pretty, the segment is pretty competitive. So how do you see margins there? Do we have a , like I've seen your plants and you have a pretty good vertical integration over there. So what is the competitive edge, like you could turn around the whole project in just eight weeks? So what was the competitive edge over there? And how do you see, like, maybe if you're getting a pretty big order from a big OEM and that's a INR400 crores is a pretty big revenue. So how do you see this segment growing for you in terms of margin or maybe getting more business in this segment?

Right. Just like to clarify a couple of things. The product that we, you know, turned around in eight weeks was not the exhaust system itself, but there were a few smaller metal components that we were able to turn around. And this INR400 crores figure, I don't think I quoted that. What I did mention was there's a INR220 crores order from one of the OEMs and a INR90 crores order from another OEM. So put together, that would be around INR310 crores of peak revenue. Now to answer your question more specifically on exhaust system itself, it is one of our largest products and we have a market leadership in this product itself. I think as you've seen our plants, I think the amount of automation that we're able to deploy in exhaust systems is second to none. So we're able to use our robots very effectively. As a company, as a whole company, we have more than 850 robots, so we are able to have much higher automation as compared to our peers. Second, as you mentioned, we also have much higher verticalization. So we're able to do all the processes in -house, right from the tooling , the stamping, to the fabrication to the robotic fabrication, painting, coating, and assembly. So most of these processes are done in -house, while a lot of our peers do it outsourced, due to which we're able to build a competitive advantage. And third and fourth, I think are more potent reasons. Third, I would say in terms of engineering capability, I think exhaust systems are known for NVH, which is noise, vibration, and harshness. We have a lot of metallurgical understanding of how to assist OEMs in the design and development of these exhaust systems based on NVH. As we have done this product for a better part of three decades today, the kind of learnings and, you know, horizontal d eployment of practices that we have allow us to learn the best practices from unique OEMs and to understand how we can contribute that across multiple different OEMs. And fourthly and lastly, if I could just point out about one technology that is unique to us and that cannot be emulated or is very rarely emulated by our peers. Since the exhaust system is a very glossy part, it's a part that is immediately attractive in a bike, it requires plating. This plating actually has to be done on stainless steel for a lot of the premium models. We are the only or one of the only players in the country to have this capability to surface coat on a stainless steel, and this again allows us to have a competitive advantage over our peers. So all of these factors put together, right from the verticaliz ation, to the automation, to the design and unique processes, allow us to have a competitive edge in the exhaust system manufacturing.

Thank you for the detailed answ er. My next question is on the capex. You talked about that capex would be around 6% to 7%. But now understanding that you are also entering into products which are more sophisticated, they would need more R&D. And so if you may some , give some idea about like what can be your R&D expense going forward? What was it in like two to three years before these acquisitions? How is it moving right now? And how do you see it planning out maybe next three to four years? How are you placed over there in R&D terms?

Yes, so this R&D expense will be inclusive in the 6% to 6.5% of manufacturing revenue that we spoke about. Ofcourse capex as a percentage of revenue has grown over the past few years and we expect it to grow going forward. If you look at our R&D team, there's more than 163 people that we have in our R&D team and they're able to drive deployment of engineering across suspensions, steering column, high-tensile products, braking, and so on and so forth. So these are the four or five products that we're working on initially. Of course, we have other products that we are, you know, in the design and development phase of and over the next 12 to 18 months we will launch. So sufficed to say, I think R&D is a core capability for us, which is why our two-wheeler content per vehicle has gone up by 60% to 65%. If you look at this increase of 60% to 65%, around 80% of this 60% are all proprietary products, which have all been developed in -house and in partnership with an Italian as well as Japanese Tier 1. So I think proprietary products will be a core part of our strategy and we'll continue to execute on that area.

Just one follow-up on this one, that on R&D, like you have around 150 people right now. And again, I'm just repeating my question, a part of my question, like since you are into steering columns, you are into high-tensile steels, then you'll also be getting into aeronautics. So I would assume that these things need far more aggressive R&D expansion. So if you have some targets, maybe to increase your team by some, like any thought you have given around it? Maybe if you are? And I would understand it's in a nascent stage right now because the things are still moving in a good momentum, but any thoughts around that?

Directionally, I think we're both on the same page. We will look to hire more, get into more partnerships, acquire other aerospace companies. So all of these directionally are the correct things to look forward to. Exact specifics about how much it would r ise, I do not have with me at the moment or I cannot comment at this moment, but it's definitely the direction in which we're heading towards.

That makes sense. My another question is , if I may ask a couple of more questions . Just one question is on your trading business. Earlier, Shrikant sir talked about like maybe you might localize some products in India or maybe a spin off of the whole entity because again it's on a consolidated basis it is margin dilutive. So any thoughts on that? Any plans on the trading business about localizing or what's the future of that part of your business?

Yes, we have not commented on hiving off this business in any format. As we think more about this business, we'll keep you updated.

Okay, makes sense. Yes, I guess that was all from my side. Thank you so much.

Thank you, thank you.

Hi sir, thank you for the opportunity. Sir, I wanted to understand in suspensions, do we have any customers in the domestic passenger vehicle OEM space? And where do you see the suspension business in the next three years in terms of what percentage of rev enue would this be in your target?

Thank you, thank you for your question, Radha. So right now, we're not catering to the passenger vehicle space; we're only catering to the two -wheeler and three -wheeler space, where as we mentioned earlier, we have four marquee customers, three of which ha ve been onboarded over the past 18 months. These are all very large two-wheeler and three-wheeler OEMs.

Understood. And sir, second ly book keeping question, what is the absolute revenue from suspension and polymer division in FY 26? And if you could highlight the same for H -One revenue and PAT for FY26?

We do not have those figures handy at the moment, we're happy to, you know, let you know that offline.

Okay sir, thanks so much and all the best.

Thank you. Next question is from the line of Jyoti Singh from Haitong Securities. Please go ahead.

Yes, thank you for the opportunity. Sir, two, three questions from my side. One is on the current this acquisition we have done on the H-One, Mag Filter, and Chester Hall. So should we expect more inorganic growth going forward in FY27? And if you can tell us like which area are the priority , auto component, EV system, aerospace, or international manufacturing? And another, like you have clearly mentioned on the content per vehicle side that we have grown. So what was the two years ago and now if we can give us average view on that? And what is the medium-term content per vehicle opportunity from premiumization and EV transition? And third, on the several facilities that commenced production across Chennai, Pune, Bhiwandi. So could you just share current utilization level across these new plants and expected break-even timeline for each? Thank you.

Sure, so those were a few questions, so I'll try to answer them one by one. I think on your first question about how we'll think about inorganic acquisitions, let me just maybe over a couple minutes paint the picture of how we want to go ahead doing inorga nic acquisitions. These are the three dimensions that we focus on when going after inorganic targets. One is customers, second is capabilities, and third is verticalization. So, if I was to just relate them to the acquisitions we've done recently. When we did the Chester Hall acquisition, we got access to customers like the world's largest aircraft OEM as well as one of their premier engine suppliers. For us to have attained these relationships organically would have easily been a two -to-three-year journey, and even after that, the revenues that we would have been able to get out of this would have been fairly low. So, getting access to customers which otherwise would take us a long time would be the first tenet of our inorganic story. Second would be capabilities. Maybe now I can take a brief of the H-One acquisition, where we got access to the high -tensile capability over there, where now we're able to go from 600 megapascals, which is the average in the industry, right up to 1,200 megapascals organically within India and 1,700 megapascals through our part nership with H- One globally. So, with this increase in tensile strength, we're able to achieve a lot of lightweighting as well as increase the safety of our key components. So, we'll look to acquire new capabilities that otherwise would take us long to build, and that's how we'd like to enter new OEMs as well as cross-sell our products. And third would be verticalization. And I think this is also an important tenet. I think if we're able to invest more in backward integration, that would mean for us to increase our gross margin per rupee of product that we're shipping out and hence increase our return profiles. So, we might also look for backward integrated facilities where the ready -made customer would be us, and that would allow us to scale these products fairly quickly and over a short period of time. If you think about the four acquisitions we've done, Mag Filter, H-One, SDM, and Chester Hall - two of them, Ma g Filter and SDM, were done at book value, while Chester Hall and H-One were done at a mid -single-digit EV/EBITDA. So, all four of them have been EPS and ROCE accretive since day one. We really want to focus on doing acquisitions which are mild in terms of the valuation we're paying. We're not a company who would go after expensive acquisitions at all. And even when we think about our aerospace ambition, we will not go ahead and do expensive acquisitions in the future. Instead, we'll focus on meaningfully scaled companies which are sta ble and have strong cash flows. And the real benefit we'll look to get out of these aerospace companies would be getting those capabilities and customers and moving those to India, which we believe is a far larger opportunity as compared to paying an expensive multiple in India or abroad . Right. Can you please repeat the remaining questions?

Yes, sure, understood. And sir, second question is on the content per vehicle side. So, if we compare as per today and versus two years ago, what is the -- and also what is the medium-term content per vehicle opportunity we are seeing from the premiumization and EV transition?

Right. So, content per vehicle, as we mentioned, in two -wheelers around 18 months ago would have been INR 12,000 optimum and now it's gone to INR 20,000 if I include the merger of our two related parties, Badve Auto comps and Eximius. So that's a what, 60% to 65% increase in content per vehicle. I think more than comment on further increase in content per vehicle, which is of course a priority for us, what would be more relevant for us at this point of time would be to cross-sell more. So, for this INR7,000 to INR8,000 of new content per vehicle that we've added, if we can get three to four unique OEMs for each of them, that would allow us to really broad-base our growth going forward. We don't want to introduce a product and only have it selling to one customer. We really want to make sure that it is penetrated across the industry, and that's the only way in which it will become relevant to our revenues going forward. Same way in four -wheelers, we were at close to a INR 25,000 content per vehicle maybe 18 months ago, which has gone up to INR 40,000 to INR 45,000 with the acquisition of H -One. Again, over there, four -wheeler and commercial vehicle, as we mentioned, is a very small category for us. So rather than increase content per vehicle, I think we're just looking to enter as many new models as possible since it's a blue ocean for us. We want to keep on winning new models across new OEMs, and that's why to double our revenue as compared to our FY25 revenues in this fiscal year, we will have to grow at close to 40% to 45%, which is our endeavor and which is what we're confident about doing. In terms of a near -term guidance of where content per vehicle can be, nothing that we can, you know, comment on at this point of time, but we'll expect content per vehicle to continuously go up going forward as well.

Okay sir. And another, could you just share current utilization level across these new plants and what is expected break-even timeline for each?

We are unable to comment on plant-specific questions on utilization and break-even. Thanks.

Okay, sure. So just one more question on the aerospace side. So, what kind of market size we are seeing in India? And another, earlier waiting period was too high, more than six months. So now a lot of companies entering into aerospace, so what kind of wai ting period we are looking to reduce further if you can comment?

So, I'm not sure what waiting period you're talking about, six months.

If we are ordering a new aircraft?

No, it's significantly higher. It's 8, 9, 10 years in certain cases as opposed to six months. So that is essentially if you were to order a new aircraft today, you'd have to get in line. There is significant backlog with both the aircraft manufacturers in the world, and there are significant supply issues. On a demand side, it is very solid, it's phenomenal. On a supply side, there are significant constraints. Again, like I mentioned, India is one of the largest aircraft procurers or acquirers in the world. And compared to that, aerospace market size in terms of aircrafts, the manufacturing that happens locally is significantly, almost negligible. As a result of that, the aircraft OEMs as well as the engine manufacturers are looking at India to increase localization, predominantly also to protect from a China -plus-one policy. And in that sense, there is a massive market that exists in India. The second lead time that is even more stark is actually qualification certifications. As you can imagine, everything in aerospace is extremely mission -critical, safety-critical. So, anything you have to get into the supply chain, the qualification certifications are extremely, extremely important. In certain cases, they can take up to 12 months, 18 months, up to 24 months for certain processes. And in that sense, that is where our acquisition strategy comes in. We're able to get access to customers, get into existing supply chains, and most importantly, get access to those qualification certifications with those specific OEMs and decrease time to get into that supply chain and ecosystem.

Okay, thank you so much, sir, for detailed explanation.

Thank you. Due to time constraints, that was the last question of the day. I now hand the conference over to management for closing comments.

I would like to thank everyone for their time, interest, and questions. I hope we've been able to address most of your queries. We remain confident in our growth trajectory, both near-term and long-term. For any further queries, please reach out to us or to Strategic Growth Advisors, SGA, our IR partners. Thank you once again for joining. Thanks.

Thank you. On behalf of Belrise Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.