Thank you very much. We will now begin the question and answer session. The first question is from the line of Dhanraj Kadam an Individual Investor. Please go ahead.

Sir, my question is how is company’s growth in electric vehicle segment?

Yes. we are present in all EV tyre manufacturing and have products across all product segments, we are fully ready for the EV tyres. In fact, we are supplying tyres in the electric buses, and we are the largest in the bus segment with our EV tyres. We are supplying to the leading OEMs like JBM, Tata Motors, Ashok Leyland , Switch Mobility (owned by Ashok Leland), and EKA Mobility etc. And we are continuously working with other OEMs also. We enjoy almost 70% market share across all OEs. We are supplying ty res in the replacement markets market as well. Even in the last mile connectivity of the SCV, which is small commercial vehicle, we enjoy 50% of the business with Tata Motors ACE, which is an EV variant. We are also successfully supplying our tyres to 2/3-wheeler OEMs in the EV segment including the Ola Electric, Ather and pure electric compan y. We see that the EV presence is growing in the country. EV bus es are contributing 7% in the total bus industry, and we are expecting that this will go further to 10% by intervention of various government policies. So, we are expecting a growth. Overall, in the EV space we are expecting a growth in the passenger car vehicle production, which by 2030, we are estimating around 1.33 million units, which is approximately 20% of the total passenger vehicle production in the country. And we are completely ready, and we are participating and have advanced talks with the OEM players who are into the EV.

One more last question. Sir, my question is what is the company’s outlook on raw material cost in upcoming quarters?

Raw material, we have seen right now on quarter -on-quarter basis from the previous quarter, around 2.5% decline. Going ahead, we are seeing stabilizing of raw material prices with a bias towards marginal decline in forthcoming quarters.

Okay, sir. Thank you, sir.

Thank you. The next question is from the line of Arjun Khanna from Kotak Mahindra Asset Management. Please go ahead.

Thank you for taking my question. S ir, the first question is on the Mexico business. So if you look at the revenues in Mexico, while in the opening remarks, you did comment on the depreciation of the peso versus the INR, but there would be a volume decline also. And if you look at the tarif fs, etc. that would have actually kicked in possibly at the end. So could you explain why Mexico was so weak, both in top line and margins for the fourth quarter?

Yes. So, Mexico, as you heard Mr. Bajoria, one of the reasons was the depreciation of Mexico peso vis-a-vis the Indian rupee. The other reason was that there was a complete uncertainty in from Mexico supplying to U.S. because of the Trump tariffs. There was no certainty. And every time, the dates were sort of getting shifted. So, there was a complete uncertainty in the minds of the customers based in U.S.A. So that was another major reason. But having said that, there is a good demand, which is coming our way in Mexico, the local Mexico as well. And with the uncertainty getting behind, the U.S. market is also opening up, which will have a lot of positive impact from Mexico to U.S.

So sir, just to understand this, so in the month of April and May, we have seen almost 20 days. Have we seen sort of a recovery in revenues from the fourth quarter?

Well, not yet to the extent that we are going to achieve performance because you see still the duty structure and all is all getting discussed between the Mexican government and the American government. But in the meantime, we have started selling higher volumes and quantities in the local domestic market. So that will certainly help us. And we are also now focusing much higher in terms of exports to Brazil as well as Latin America.

Sure. And in terms of the way we look at it in terms of margins in Mexico, what would our outlook be?

It would be slightly better than what we have achieved in the financial year '25. But for now, you can take that the performance in FY'26 will be better than what you have seen in financial year '25.

And just to add to what Bajoria ji said, just one very clear trend what we are noticing today is that because there is no tariff being imposed for exports from Mexico to U.S. on the t yres. So that will help us in exporting the tyres to the U.S. market in a greater manner going forward. So, this will definitely improve our profitability, the revenues and we are very hopeful that the margins can immediately improve in the next financial year as compared to what we have seen in FY '25.

And the trend of raw material also is moving positively, there is a stable guidance for that. So that will also help in margin expansion.

Sure. Sir, just to understand, if there is no tariff on sale of tyres from Tornel to the U.S. market, why haven't our sales come back?

No. Right now, there is just this clarification being ascertained recently. So, on ground in terms of the U.S. customers, it is still seeping in. And the notifications, etc. are being communicated by us to them. So there will be traction coming in going forward.

Sure. Sir, my second question is regarding the raw materials, which the previous participant also asked. Now you mentioned the first quarter FY'26 should be similar to the fourth quarter FY'25. Given that I would assume that's because we have some inventories. Given the rupee has slightly appreciated, you have seen the oil prices slightly come off. So does that mean the second quarter FY '26, we should see some margin expansion?

See, as a trend, I can tell you because there is a lot of volatility, what we have noticed in FY '25 and in the last 1 month also, again, there is a downward movement of the crude oil prices, the synthetic rubber, the natural rubber prices and all. So as of now, what we are seeing is that it is going to be stabilize over the next couple of quarters. But when it will change again, we do not know. So , giving a guidance too far beyond maybe first quarter or second quarter would be slightly difficult at this point of time. But we can say that the stabilization of the raw material prices is what we are seeing as of now. I would also like to add that the behaviour of the commodity prices is also softening. So , I don't see that there would be a sort of a surge in prices, which will come immediately.

Sure. Sir, my final question is on our debt level. So this year, we saw our debt increase on a year- on-year basis on a net debt basis. How do we look at it over FY26-27? Also, we've talked about the INR1,400 crores of projects. We spent roughly INR700 crores in FY'25. So what kind of capex do we anticipate in FY '26 and FY'27?

As you know that we had already announced our capex plans of Rs.1,400 crores, plus we spend annually Rs.200-300 crores on normal capex. All projects are progressing well as per respective schedule. At the moment, we are not embarking on any new expansion project.

To add to what Anshuman ji mentioned, we will have the capacities available from these projects in this financial year 2026.

Right. So, what would be our capex spend for FY'26? What is the remaining amount?

Yes, the outgo would be roughly around INR900 crores. Because as you would recall, last year also, we had given you a guidance that INR800 crores to INR900 crores, we roughly spend on account of the capex outlay. And for the last 2 years, we have been having the same kind of amount. This year we will be spending roughly around INR900 crores, and we will be completing all our existing projects. And then, of course, the Board may decide to go ahead with some other expansion programs.

Perfect. Thank you very much and wishing you all the best. Thank you.

Thank you. Th e next question is from the line of Abhishek Jain from Alfaccurate Advisors Private Limited. Please go ahead.

Thanks for opportunity and congrats for decent set of numbers sir. Sir, my first question on the Tornel. So, if you see that Mex ican Peso has appreciated versus INR on a quarter -on-quarter basis, that is 9% up from 3.94 to 4.28. Despite that, we have seen a quarter-to-quarter degrowth of 11%. And now the Mexican P eso has recovered to the 4.44. So, in this case, what is our revenue guidance for the next two to three quarters on a quarterly basis? Because in this quarter, we understand that because of the uncertainty, there was some issues. But going ahead, what will happen when there is appreciation of the Mexican peso versus rupee?

Yes, just now Bajoria ji mentioned that because the uncertainties on account of tariffs is behind us and also a lot of volatility we have seen in FY '25. So that is also behind us. We are expecting that there will be a good growth in the financial year 2026 on account of the larger exports and the focus, as Mr. Bajoria mentioned earlier, is more on the domestic market, Brazil and LATAM. Things are expected to improve definitely in this financial year in terms of revenue improvement and the EBITDA improvement as well.

So Mexican peso has already appreciated 12%, 13% in the last 2 months. So in this case, once that quarterly revenue of the Mexico has gone down to the INR450 crores versus that INR600 crores. So can we expect that there will be a revenue growth of 15% to 20% in the next year from the Mexico?

Two things, just to be clear that Mexican peso when it is depreciating, it is good for our exports, but when we consolidate, then actually, we have to see the movement vis-a-vis the Indian Rupee as well, which is also cross currency. So we'll have to see. But the impact of the depreciation of the peso definitely will improve the exports from Mexico. And secondly, as mentioned earlier that there are no tariffs announced for exports from Mexico to U.S. so far, this will be having a positive impact.

So how is the revenue mix at this point of time in the Mexican business? I think that 50% from the domestic and 50% from the export and out of that, the U.S. contribution is hardly 8% to 10%. So if you see the impact on the revenue, that is very much high. So just wanted to understand what happened actually?

Yes, mainly two things again. First is that the major focus would be definitely in the domestic market and then the Latin American markets and then the U.S. markets. So in this order of the focus priority, you will see the improvement. And at present, approximately 60% of the revenue is coming from the domestic markets.

And from U.S.?

You only mentioned it is about 8%. See our effort is to have minimum impact due to this tariff structure, which may again come back because right now, there is a lull for about 90 days. And our strategy for this financial year 2026 is to have minimum impact due to any exports to U.S.A.

And in this year, we will get around 10% to 12% benefit on the conversion side because appreciation of the Mexican Peso versus INR, it was hit in the last year. So , can we expect that 15% to 20% growth because of this thing in the Mexican business?

See, the depreciation or appreciation of the currency will definitely have its own impact at the time of conversion of accounts while consolidating. But otherwise, we are saying that the quantity itself because of the larger volume exports in the domestic market, larger volume sale will improve. And because there is also an expansion program, which is going on in Mexico for about USD 27 million which will increase capacities in a phased manner. So, over the next 2 years we will see a positive impact. We will have larger capacities available, particul arly for the larger rim size tyr es, which will fetch better revenues and profitability. So, things are looking up and hopefully we will see some good numbers going forward.

My next question is for Cavendish. So how is the growth outlook in the calendar? And as there is a decline in the RM prices, most probably the Cavendish will also get the benefit. So just wanted to understand what are the key figures for the growth in the Cavendish?

Cavendish definitely has done well. In the last financial year 2025, you would have noticed nearly 20% growth in the Revenue and this company has done very well in the last couple of years since the time we acquired it in 2016 from about INR1,000 crores turnover to almost about INR4,000 crores annual turnover now. This company has been turned around, making good profits. The margins are also very good on a relative basis. Also, CIL is going to get merged soon with the parent company.

With the confidence of our operational efficiency and the quality of product , we have been serving the OEMs through CIL. So that speaks about our processes and systems are right in place to cater to very stringent norms of the OEMs. Not only in the truck radial, but we are participating with the majority of OEMs who are manufacturing in India including serving to 2/3Wheeler OEMs as well.

Okay. And my last question on the working capital side. So inventory and the debtor days has gone up in this quarter because of the higher raw material prices. And that's why that short-term borrowings has inched up significantly. So just wanted to underst and what is your debt repayment plan because the inventory prices are going down and most probably this will be prevalent in the debtor days, so just if you can throw some light on the repayment?

In Q4, we have actually reduced the number of days of inventory , both raw material and the finished goods. And there has been a reduction in the bank borrowing also on the working capital side and as I mentioned earlier there is an overall reduction in the Net Debt by about INR238 crores in this quarter. But when we compare it with corresponding quarter last year, then definitely there has been some increase in the working capital requirements because of the increase in raw material prices, finished goods prices. But we are on top of it, and we are working hard to get this reduced to a comfortable level. And we can expect that there will be significant improvement in the total working capital and also the working capital borrowings will go down going forward.

Okay, sir. That’s all I have.

Thank you. The next question is from the line of Dinesh Kumar from B&K Securities. Please go ahead.

Okay. Can you share the volume growth across segments? Like what was the contribution of price versus volume to revenue growth?

Volume growth for which quarter you are saying?

Price v/s volume growth in the revenue contribution?

On a quarter-on-quarter basis, truck segment comprising TBR & TBB has grown in the range of about 7%. And our passenger line has grown around 1% quarter -on-quarter basis. But in replacement market, our passenger line volumes on a year-on-year basis have grown 23% and our truck radial has grown by nearly 18%.

Okay. Another question, how has competitive intensity been in the past quarter? Are there any signs of aggressive pricing by peers?

During the last year FY’25, barring the quarter 4, we've have increased our selling prices to mitigate the RM cost spikes and we continue to look for more opportunities to increase our prices in the aftermarket, which is the replacement market. And OEM to a large extent, it is index - based.

Okay. And how are yo u positioned for EV -related tyres demand, like any product launches or partnerships coming?

I think this we have already discussed in the call today. To reiterate, we are fully geared up for all kind of EV requirements, be it Truck and Bus or the passenger car or 2/3wheeler. We have been supplying to all the companies in this space, and we are growing with the industry. So, as the industry is growing in the respective segments, we are fully ready to cater to thi s evolving demand.

Okay. That’s it from my side. Thank you.

Thank you. The next question is from the line of Manju Choudhary from InvestSavvy Portfolio Management. Please go ahead.

I wanted to understand the risk of the Mexico supply to the U.S. Maybe somewhere it's been addressed. But when we are looking at this whole saga between U.S. and Mexico, how is that plant being affected?

You must have just heard that out of our total sales in FY'25, about 8% is the export to U.S.A. So therefore, as mentioned earlier in this call also that our strategy now is that we are increasing our sales in domestic markets, that is number one, and also to Brazil market and Latin American markets. So really speaking, if the tariffs unexpectedly did not fall in line , it will give us at least some viable alternative and we will not be affected to that extent. So you can be rest assured that the U.S. tariff on Mexican products is not going to hurt us very much.

So you'll be able to send that production at other places?

Absolutely.

Just to add to what Mr Bajoria mentioned, as we are talking about the exports from the Mexico to U.S. very broadly, I will tell you that the company as a whole on a consolidated basis is exporting to U.S. in a very small percentage, around 8% from Mexico and also similar numbers from India also. So please take note that the exposure to USA is very low.

So, 8% is from Mexico and 8% is from India?

From Mexico it is.

We are seeking all opportunities to increase our sale s into the U.S. from the Mexico facility. These tariff related uncertainties are hovering in the minds of customers , we are explaining to them, and the acknowledgment is also coming. So, going ahead we are expecting a positive wave of supplies from Mexico into U.S.A.

I just want to explain to you that effectively, only 3% of the total revenues on a consolidated basis is exposed to USA.

Sorry, so 16% is the number, right?

So what I'm trying to tell you is that the exposure to the total revenues to U.S. tariff is minimal. It may not be more than 3%.

Okay. Thank you.

Thank you. The next question is from the line of Amar Kant Gaur from Axis Capital. Please go ahead.

Thanks for taking my question. I have, first of all, a housekeeping question. Could you please tell me what were your exports for this quarter?

Export for the quarter were INR513 crores on a consolidated basis. And for the full FY2025, it was INR2,378 crores.

Now my first question is on growth in the India business, where we have seen much higher growth from Cavendish versus JK in the standalone. Could you please highlight what would be the difference that is driving that?

JK Tyre standalone caters to OEMs in large volumes and particularly to the truck radial OEMs where we are a very strong player. Last whole financial year for the truck especially in terms of the OEMs have seen very muted growth. In fact, 1% to 2% degrowth only. So this was one of the major reasons where the standalone India JK Tyre was impacted. But CIL has a mix of Truck radial and 2 /3wheeler where it performed better because it is not only catering to the OEM, but also to the replacement market at large.

Okay, from an overall India business perspective, could you highlight what would be the growth in replacement, exports and OE individually?

In Q4, India operations in terms of values, replacement market growth was 6% and OE market growth of 13%. And volumes wise, our replacement market has been 7% higher. OEM volumes has also been 7% higher, exports lower by 9% which effectively makes overall 5% growth.

So you said your replacement was up 7% Y-o-Y and OE was also up 7% Y-o-Y.

Yes.

Overall volume growth you're saying is about 6%?

No, it is 5%.

Because of the exports.

Yes, Q4.

Q4, Y-o-Y basis.

Okay. And on the pricing side, can you quantify what kind of price hikes have you taken in this quarter or the last quarter?

We have continuously taken price hikes. But in the fourth quarter, we did not take any price hike. However, in previous quarters, we were able to pass on, based on the increase in raw material, which was about 10% increase and in terms of selling price was about 7% for the full year. So we were able to pass on about 4% to 5% and the unabsorbed is still remaining around 3% for the full year.

Okay. So sir, just a clarification. Your revenue growth in the India business Y-o-Y is about 6%. Volume growth is 5% and you talked about price increases that you have taken 5% to 6%, but the ASP increase is only 1%. So could you tell me what is that I'm missing?

See, in terms of the volume growth, our OEM dependency on the truck radial, where we are having a large share of business, was quite dampened, so the volume growth was muted and our overall growth was also impacted. But as we ahead, there is a positive sentiment which is coming up in the truck buying. So there, we will be able to gain.

Okay. And sir, lastly, in terms of overall pricing environment and competitive intensity in terms of prices now that the RM is going down, do you see any changes in that? Or is it intensifying further?

No, the raw material prices, as I said, it is in a stable trajectory. Going forward, we are expecting that it should remain largely range bound only. We are not seeing anything which will impact. In fact, there has been a marginal decline in raw material prices in Q4 compared to Q3. So the trend line is looking to be good with a bias towards decline.

Okay. Thank you so much and all the best.

The next question is from the line of Abhishek Jain from Alfaccurate Advisors. Please go ahead.

Thanks for opportunity again. Sir, how much revenue from Cavendish in Q4 and FY '25?

For Q4, there was a revenue of INR1,034 crores from Cavendish. And for the financial year, it was INR3,991 crores, almost about INR4,000 crores. So the run rate quarterly as of now is about INR1,000 crores.

And will this run rate will sustain in the coming quarter?

So, can we expect that 12% to 15% growth going ahead because you are also adding the capacity in the Cavendish and you are very much positive on this so can we expect a 12% to 15% growth going ahead?

We have been talking about overall growth in the revenues in the double digit, right . So that includes, of course, the parent company, JK Tyre and all put together on a consolidated basis. So, we are seeing that there is going to be a good growth and the capacities which we have built up in the last 1 year will contribute to this growth. So those will get utilized. And also, we are in the process of implementing another project, which is yet to be completed in this financial year. We are expecting good growth, which can be like the high single digit to double digit.

Okay. Mexico revenue is a part of the export in the consolidated?

Yes, of course.

Entire number is in the export segment?

Yes, and as you must have heard Mr. Bajoria already mentioned that the total export are of about INR2,378 crores for the financial year 2025.

Okay. My final question.

INR1,800 crores of exports roughly are from India and the balance on a consolidated basis, there are some inter-company transfers for exports also. So that gets eliminated while consolidating the numbers and therefore, the total consolidated export is about INR2,400 crores out of which INR1,800 crores is from India.

Okay, sir. Thanks. That’s all from my side.

Thank you. I now hand the conference over to the management for closing comments. Over to you, sir.

Thank you so much for joining us for this Q4 earnings call. And I hope that we have replied to your questions to your satisfaction. And once again, thank you very much for joining us. Thank you.

Thank you.

Thank you very much.

Thank you. All the best.

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