We will now begin with the question -and-answer session. The first question is from Aditi Prajapati from Shah Capital. Thank you. Please go ahead.

Hello, sir. Congratulations for a good set of numbers. I want to understand the market mix for Q4 and category mix for Q4?

Okay. In terms of category mix?

Truck and bus was around 56%, PLR is about 27%, and non-truck bias is about 13% and remaining is 2/3wheeler approx. 4% in Q4FY26.

This is on the basis of consolidated revenue?

Yes, it is on consolidated basis.

And what was the mix on standalone terms ?

On standalone basis, Truck and bus is 59% and PLR is at 25% and non-truck bias is about 12% and 2/3W is about 5%.

And on standalone basis, what is our replacement & OE share ?

On standalone basis, replacement is 61% and OE is 30%

Thank you so much, sir.

The next question is from the line of Vijay Pandey from Axis Capital. Please go ahead.

Hi, sir, thank you for taking my question. Sir, a couple of questions. I wanted to check about the Mexico business. So, I see quarter-on-quarter there was a significant decline in the number. So, just want to understand what is the driving factor because EBITDA you said in the opening remarks that it was going good. So, was there any impairment or anything that led to a decline in EBITDA, if you can comment about Mexico.

Yes, our Mexican subsidiary did witness a little sluggish growth this quarter. This was mainly due to the heightened geopolitical volatility and trade uncertainty owing to US tariffs. But despite the challenging environment, the revenue of JK Tornel for FY26 remained steady at Rs.2,138 crores v/s Rs.2,147 crores in FY25.

Okay and for the domestic India business, what was the price increase and were they taken in the 4th Quarter or it mainly came only from April’26 onwards?

But all of this came in the 1st Quarter or was some part of it in the 4th Quarter as well?

Mainly in the 1st Quarter.

Okay. So, about the capex plan, what is your expectation for the next two years , because this Rs.50 billion capex, this will be including Rs.11.3 billion capex already announced in Q3? And also, if you can give a guidance about FY27 capex guidance and how do you plan to fund it like will it be totally debt-funded?

Vijay, Sanjeev Aggarwal this side and maybe I can guide you. See, we had declared about Rs.1,130 crores of expansion plans in Q3 for TBR mainly and PCR as well. And this was done because we are running at almost full capacity utilization as we mentioned earlier. And now seeing the momentum in the demand growth we have announced another Rs.50 billion expansion plans, to be completed in three phases over the next three to four years. So, these total expansions of Rs.6,110 crores will be completed by FY29. Total cash outlay on yearly basis would be roughly around Rs.1,200 crores and this will not put any dent on the cash availability with the company, which is going to be even much more stronger. To answer your next question, y es, we are going to take debt, but this debt will be supported by a higher amount of the EBITDA, which we are expecting to generate over the next three to four years. So, the leverage situation of the company will remain quite comfortable , and the leverage ratios as well will remain as what we have seen in the last 2-3 years.

Okay. Just wanted to check on the other income. So, other income was down for the 4th Quarter. So, just want to understand if there’s any specific reason.

So, the other income is down because, as I mentioned earlier, we had some Rs.700+ crores available earlier, which was invested in fixed deposits and we raised this fund through QIP in Dec'23, marked only for the purpose of expansions. So, at that time we invested that fund and now we have gradually withdrawn that fund from the fixed deposits for deploying it for the expansions purpose for which it was actually raised. So, that is the reason why the other income (interest income) is appearing down compared to last year.

Okay. Thank you, sir.

Hello, sir. A very good evening to the team and congratulations on a good set of performance. So, the first question from my side would be on the demand front. So, if you could shed some color on how the demand is trending in the underlying markets across CVs, PVs, what are you hearing from the fleet operators? How is the order book coming through for the OEMs?

So, the demand in the tyre industry is expected to remain buoyant for FY27 on the back of healthy growth in both the replacement and OE markets. We have not seen any order books getting cut from any of the OEM, be CV s, passenger or any other line. However, o n account of geopolitical uncertainties, definitely there has been a little bit of uncertainty in the market , some supply chains have disrupted, but the underlining structural demand remains intact, and we continue to be optimistic about FY27. Though the auto industry ha d a double-digit growth overall in FY26, going ahead in FY27 we see a strong and a mid -single digit in some categories. I think there is a very good momentum and expect it to continue.

Thank you, sir. And the second question would be on the capex. I mean, as you mentioned about Rs.1,200 crores of outlay every year, so, this Rs.5,000 crores essentially also involves the Rs.1,130 crores that we had already announced and would be underway at the moment?

Yes, the Rs.5,000 crore worth of capex is in addition to Rs.1,130 crore expansion plan.

Okay and that Rs.1,130 crores is getting completed this year?

No, this Rs.1,130 crores will get completed by Q3 of FY28. We started working on it and it is under implementation.

Understood. Got it, sir. And lastly, like you mentioned on commodities, we do see some pressure. So, how are we looking at in terms Q1 and Q2, I mean, just to give some context, I think a peer had highlighted that there could be some demand moderation because of the price hikes that are being taken, so, if you could share your thoughts on the same in Q2 or H2?

On the raw material prices, we are seeing an increase of nearly 18% to 19% in Q1FY27, and going forward, actually, it will be depending on the war, but we are seeing some softening to an extent in the crude oil prices. This may have a positive impact on bringing down the overall raw material prices as we go forward beyond Q2 onwards.

Thank you, sir. That is it from my side.

Good evening, sir. Sir, just wanted to understand the pricing action. You mentioned about close to 5% price hike we have taken in the domestic market. How the overall industry has responded? Have the other players also taken sort of similar price hike? Any thoughts on the competitive scenario on the ground?

Yes, the competition has also taken price hikes, and I would say they are also in the same range as what we have taken.

Understood. And we have seen one or two large players looking to enter the tyre industry; one of the off-highway players has announced big plans over the next few years with respect to TBR, PCR and two wheeler. So, how do we defend our competitive positioning over the next three to five years, can you share some thoughts over here?

In the CV segment, we are serving approx. all the large OEMs and fleets in India, and we have a very strong share of business with them, plus, we are commanding a lot of premium positioning in terms of innovative products which we have given to the market. We are very successfully running a fleet management program, and we call it selling miles, which is the mobility solution business, that is a star product and offering to the consumer. And there we have definitely created a lot of strong boundaries and walls for the other players to duplicate that. And we are actually accelerating that offering in the market with lots of digital interventions. So , I think this is the piece of the CV. And in the passenger car, we are serving all large OEMs, and their norms are quite stringent, so you have to invest in technology across the products actually to come to their norms. There we have also given the market a lot of innovative products like puncture guard, smart tyres and even our premium offering Levitas Ultra , and we are well established in the domestic market , and are continuously investing in our brand as well. So , I guess these are some of the areas in which we are definitely having a leadership position and have created a significant entry barrier.

Understood. And just lastly, our expansion plan for the next five years, as you highlighted, has been largely centered around TBR and PCR, which is obviously our core areas. But , any thoughts on the two-wheeler space or on the off-highway space, do we have any major plans to ramp up that part of the business?

Yes, sure. We are growing steadily in the 2/3W category. Right now , w e are increasing our productivity in our given space, and also we are outsourcing tyres in the 2/3W segment, and we plan to expand our outsourcing further to increase our presence in this space in the coming quarters.

Understood, sir. Thank you so much.

I just want to clarify that you mentioned cash outlay for this year will be around Rs.1,200 crores, but like the capex plan for the next three years comes out to be around Rs.6,000 crores. So just want to understand how do you plan to do this?

I mentioned Rs.1,200 crores for FY27. And of course, if there is a requirement to spend more, that is definitely possible as you can very well see the kind of cash generation which we have today. And even in FY26, we had cash generation of more than Rs.1,600 crores. Seeing all that, we expect this cash generation over the next 3-4 years to increase further. Please note that the total amount of outlay also includes the loans which we will take. So , the total amount of Rs.6,110 crores of projects will have the debt-to-equity which we have announced of about 2:1. So, we have to take the funds from the bank plus our internal accruals , and therefore, the total amount of the cash outlay of about Rs.6,000 crores is definitely possible in the next three to four years.

Okay, thank you very much.

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

Yes, thank you. I think we have been able to resolve and address all your queries, and this has been a very good interaction. And I would like to thank you once again for all these questions and you can get back to us in case of any further clarification required through e -mail which is already in the public domain. Thank you so much and I would now close the call.

On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.