Thank you very much. We'll now begin the question and answer session. The first question is from the line of Sucrit D Patil from Eyesight Fintrade Private Limited.

I have questions. The first question is Mr. Singh, I just want to understand for guidance on what type of strategic levers are you prioritizing in FY27 to expand Schneider's footprint in smart grid and digital solutions and to accelerate renewable integra tion and manage risk from regulatory transactions and global supply chain volatility. That's my first question. I'll ask my second question after this?

So thank you for asking this. I'm -- I don't know whether you are aware, but I think the first solution, which is towards modernization of grid in the country is by us, which has been running in one of the South states since 2012. And I think what we see a s where India is moving to is driving robustness and modernizing grid. And that also has become very pertinent and important now because the amount of integration of renewable power is likely to happen on the grid, which has been conventionally very robust in the country. The second aspect, which is extremely important, where we have a right solution is the multidirectional flow of power or energy between multiple widespread sources. The scheme which has been launched of by -- people are putting solar rooftop solar and other things, which are eventually leading them to behave like what we call consumer, which buy and sell power both. So we have software, which we call as microgrid solutions, which actually takes care of that flow. It is nothing but it really showcases you the fiscal flow of power and how do you manage it. That's one solution which we have. Another solution we have on the software, which I was explaining you if you might have understood is the One Grid Platform, which integrates 3, 4 elements which comes together on the grid solution, I think, which is primarily a SCADA or an ADMS solution or we have a DEM solution and DEM is nothing, but how do you manage a distributed energy resource and the outage management system and a maintenance system. So all this actually is likely to happen. And as a matter of fact, government by itself is trying to set up now training centers in the country where the intention is to train the DISCOM people as to how to perhaps upskill themselves in terms of using the grid and the tools to manage the grid more efficiently. And we are also in process of setting up one of the such skill center in North India to -- which will be used by PFC to train people.

My second question to Mr. Prasad, again, a forward-looking one. Just want to understand what type of capital allocation and risk management frameworks have been applied in 2027 to balance dividend payout with funding for grid mod projects. Any hedge agains t forex and commodity volatility any liquidity buffers that will be put into place to sustain for the large -scale infrastructure contract?

Yes. So 2 things. I think I will take the first coverage against the hedging forex -- we have both. And -- but as a policy, we have a certain policy. We don't know one cover 100%. So commodity hedging is completely covered up to the 50% to 60%. And forex hedging for any dependency on the import, we do 2 type of hedging. One is also the PO hedging particularly on order by order and then we also have a net ARAP forex hedging. So that is covered. And what you see the impact in the P&L, and that's why I see that impact is lesser in our P&L because the hedge benefits also has given some good positive in the GM revenue impact would have been more in the quarter 4. The second thing you were asking about more on large infrastructure projects. Mostly what we try to do the large infrastructure project, which is more than 6- month delivery period, which always with the customer with some variable contract. It means what it means we make sure that we give the price today. But if price may go up, we try to negotiate that differential has to be recovered from the customer. So that pattern most of the apply in the large infrastructure project, which takes more than a year and all. So that process is already there. What you see here, but if you look at in terms of our contracts, it's a mix. We do have -- we call big projects more than 1-year execution period. That's there. But the impact which you see here is more the contract which was supposed to be delivered and booked in somewhere in the Q2 and we have to in this quarter. That impact is more the delivery period is less than 6 months. I hope I answered your question.

Yes, yes.

Sir, during the quarter, the revenue growth was almost flat, I think in terms of around 1% growth. So in the presentation, we have mentioned that delivery deferrals and external factors impacted the quarterly sales. So could it be possible to share more details on this?

Sure, sir. So if you look at the revenue, as you see our backlog was very strong. So it was not a challenge in making the deliveries to customer push and get the hit in the quarter, okay? So we are trying to, first of all, deliver wherever we have a material ready. And second, the customer is also willing to pay and did the delivery this quarter. What we observed many of the customers who had a dependency on their end customer ultimate use. They also started saying that because of the order dependency and they also got impacted with this crisis, they are asking us to hold the deliveries. And that's why the revenue has been moved from this quarter to next quarter. And when I say external factor, that was very cautious because we also don't want to take every hit in this quarter and were only prioritizing the customer delivery where the material and everything is ready and with the all impact, which can impact less rather than get all the deliveries made and then get the higher impact. That was the idea. So the team has turned the company I think very well to manage the customer expectation and trust at the same time, making sure that we get minimum rent in this quarter.

So the delay, I mean, from an end consumer point, are they private companies or is it that they were public sector undertakings or SEBs?

Sir, earlier, I think we clarified in terms of GTM, we have a different GTM. So if I'm going through the EPC or if I go to the even to large infrastructure in other company, both state is impacted. Largely, it's EPC because we go to EPC and EPC has a customer. So there, I have a larger dependency.

Okay. And do you think that will get rectified in this quarter?

Finger crossed, sir. I think that's why we are looking at and I heard the news yesterday again that there's some -- again, some prices going to come from U.S. So I don't know. I'm that's keep the finger crossed that all the essential LPG copper issues are getting solved. So I hope that will recover in Q1.

Sir, last question from my end. Sir, Udai sir just mentioned about the solution in battery storage, energy that segment. So do we have that technology? Or is it that we will get it from the parent? I mean, how are we placing that?

So a good question, sir. Thank you for asking this. We do not make batteries, okay? And -- but the rest of the items, either we make by ourselves or we are trying to partner with somebody who can give a piece of it. So essentially -- and battery is -- I would say, battery is something which is also -- the technology has been evolving. The advanced chemistry cell technology has been actually being worked out. So -- and we are not a master in making battery by ourselves for sort of large -scale stationary usage. So the entire portfolio, which you see, which comprises of many things, which is AC and DC power equipment and alongside it, which was a software -led arrangement, which manages this flow of power is something which is done, which is inherently our own to a large extent. There is some alliances and partnership, which is happening on some convergent systems to make the entire offering done. So long and short answer, we are making the entire system. We are getting battery from somebody who's actually good in making batterie s because battery is not our forte. The rest of it is primarily us. The entire solution design is Schneider.

The next question is from the line of Anirudh Agarwal from Valuequest Investment Advisors.

A couple of questions from me. First is on the data center opportunity, right? So you spoke about the multiple products that we now have which go into data centers. If you could give us some sense of the kind of opportunity that you see from data centers in quantitative terms with all the products that we have. And we obviously also mentioned that 3 gigawatts of capacity is kind of getting signed up for the next couple of years. What sort of revenue uplift or order uplift, whatever you can share on that will help us quantify the opportunity better for the company?

See, data center is something which is going to be incremental to us because of the rate at which it is going to go up. Now depending on the location, depending on the arrangement, depending on the class, depending on the redundancy level of data center, the volume of equipment which we can supply to a data center typically varies. Now we can supply equipment right from the receipt of power at 132 kV and then go down to a level to what we call as a low voltage level, which is 415 volts. And anything in distribution at multiple floors fiscally, we can do it. Now to answer you whether it's A or B is actually difficult because the design of these hyperscalers, which they want to implement and roll out in India typically is different. The level at which they want to make redundancy as they call it, is also different. The requirements coming up by colos who make keeping in mind some arrangements they tie up with these hyperscalers is actually dependent mostly on the hyperscaler design. So it is nothing which can be quantified because of one basic fundamental reason that they are not alike. Now -- but what it promises is that in different formats, we will have something or the other for the company to really supply and leverage this data center.

Sir, if you could help us with the current order backlog that we have, what percentage would be from data centers?

Maybe if under control of my CFO, maybe typically about 10% to 12%.

Should go up.

Got it, sir. And final thing, if you could broadly quantify the amount of orders that have got shifted for delivery from Q4 to further quarters, what is the broad quantum of the delivery deferrals that we've seen in this quarter?

About 10% to 12%.

I'm not sure we can take the numbers in this call. But I think a couple of orders we can consider.

The next question is from the line of Ashish Ajit Golechha from Bee Ventures LLP Fund.

Sir, are you able to hear me?

Yes, sir.

Yes. Sir, my first question is your gross margin consistently from 39.1% in FY25 to 37.5% in FY26. And now it is 36.6% in Q4. Multiple calls, the management has said mix improvement will drive margins. services has gone from 12% to 15% of the revenue book 300 bps improvement can happen in services, what produces this 160 bps deterioration in gross margins? Can you tell that when the actual margin recovery thesis happen? This is my first question. And then second question, I will ask the first question is completed?

Okay. So the Q4, I suggest that don't benchmark with the usual gross margin because that was largely impacted because of many factors. But if you look at drop in the margin in FY26 versus FY25, there was -- when you talk about the mix and services growing in services also, sir, we have 3 components. We have a spare and then we have revenue at AMC. And then we also have a modernization projects where we say that either more on revamp where we call projects mostly what happened the third category is growing compared to other 2. Other 2 has better margin than third one, which is modernization and RA. Unfortunately, the last for the renewable and brownfield projects will also go as a capex model of many of the industry and they again go for L1, okay? So there is a competition happening even in that segment is not based on the, you can say, margin very intensive. And there also the pen end users and the company decide based on the L1 or what you call the capex model. And there, while revenue is increasing our service, but when you look at the mix of even service within modernization has actually margin-wise, it's dropping. But if you look at the whole story and the whole story, I think the revenue we are trying to capture and then improving the margin we are working in all 3 ways. I think this -- if you look at it in this year, which was unprecedented in terms of the commodity market because this -- if you discount it, okay? And if you remove that, we have not dropped the margin. And that's why we gave a reason that when commodity even in this year, almost close to 1% is just because of the commodity, which are -- cannot be benchmarked like-to-like. And if you remove that factor, the margin it from the company side that we are focusing how to improve and further bring some efficiency in terms of design and in terms of the customer and negotiations on the customer. So like-for-like is not there, sir, that's why...

Okay. So second question is, you always position feel as a premium technology different center player in EcoStruxure, GMT, digital SCADAs but Udai sir was saying that we have also basically launched new products in the PT the market has not expanded. Can you tell us how would we basically go about basically winning the market share and how we are going about basically translating this into commercial because commercial are not reflected. Even who was asking questions on data center from value, the management answers were very opaque. It has been now nearly 2 to 3 years. The management is giving go l – gol answers. At least we accept from the investor community, we expect some clarity and some answers which are very straightforward?

Point noted, sir, to whatever I could hear, I mean you are unfortunately not absolutely clear. We try to tell as to what is seemingly possible and direction. We are not in a position to really quote an absolute and an exact number in percentage because the dynamics keeps evolving. We keep on deciding things which are in favor of the company. Like, for example, you said that there's a market share and there is a market, how much market share will it come. So we may decide in certain areas, in certain operations and certain solutions not to chase the market because we are trying to also maintai n the point which you pointed out in your question one. We are absolutely and equally sensitive about profitability. So we are not chasing. We are selective in certain areas. We try to chase and be the market leader in certain areas. And that's a combination, and that's what we do by managing product mix, which also you mentioned in your question. So I and my colleagues from the management hear you. But unfortunately, we'll not be able to give you an absolute percentage number as what you have been asking.

Please rejoin the queue for more questions as we are not able to hear you. The next question is from the line of Deekshant, DB Wealth.

Sir, firstly, we understand that the commodity prices is not on our hands, and we are trying to do our best on profitability and operating leverage will take a hit if commodities are going up. But sir, last quarter was a really good order inflow. And going forward, what do you think we can do on our operating leverage, which will be also our margins. But the whole year this year, one thing that makes us wonder is our sales growth for the whole year, except for the December quarter was in single digits. Y-o-Y basis? So December was a good quarter where we were hoping that now we will see an acceleration, but it doesn't seem to be. So can you just highlight that what is now the next growth catalyst for us that the company is positioning itself towards because we clearly are really good at what we are doing. Customers are loving us. That's why they're rewarding us. But could you give us some clarity?

2 questions. I think you asked about the Q4 order intake. The Q4 order intake because of uncertainty in commodity market, we were very, very selective. Were only selecting the orders where we can get certain leverage in terms of whether I can realize the price even with the price increase, so variable clause. So these are certain controls we put into when we book the order with the customer and negotiate with the customer. Still in Q4, when we're booking the order, any customer was not very keen to pay based on the variability and all, okay? And that's the reason that we took that call, okay, let's hold it, okay? So that's the reason you see that selectivity made the reasoning to have a low order booking in the Q4. Operating leverage, sir, obviously, this Q4 is pure seasonality, I can tell you. If you look at in terms of the numbers, I'm talking of the absolute number, if you look at, is not that significantly increased as we are looking in terms of the percentage. So if you look at -- if my -- obviously, sales grow and this operating leverage, it's a seasonality. And over the year 12 months, you saw that it's making sense in terms of the percentage. So that's only I can just want to clarify on the operating leverage. On sales side, you are saying about the single digit in the 3 quarters and then quarter 4 was in double digit. This is again, we said in the earlier earnings calls, it depends on the customer prioritizations. And since our projects are more engineering based customer clearance and depending on there to give clarity and to dispatch. So many things what happen when things are getting deferred, while we have a very strong pipeline, but it also depends more on the customer side to get the clearance to dispatches. So then as far as if you ask me that as far as the order is there, we will definitely execute it. It's just the customer giving credit. I just also want to tell you that even sales, we are also very careful in terms of not only clearance, but also with the cash. We don't want to give open credit all the customers. So we are very mindful that when we dispatch, we have only a credential-based customer where we keep the open credit. Otherwise, we always try to make and secure the cash. And the cash, sometimes the customer delays in making the payment. So that's why we try to hold deliveries. So those all actions we take make sure that in the safeguarding the interest of the company that while we make profit, but also we should not lose cash. At the same time, we should also keeping momentum on the revenues and all.

I would request you to please rejoin the queue for more questions. The next question is from the line of Abhijeet Singh from Systematix.

So it's a combination, sir. Like, for example, the entire structure will be made in India. The switch gear will be made mostly here and then the few which we do not make, especially in the DC range, we will get in from other sites. So it's a combination. And it depends on the sizing of BESS system, the modularity of the system and the way we are going to combine them together. That will quantify the amount of work which will be done by us here and amount of work which will be asked, but we'll be sourcing it from outside.

Right, sir. And what is our scope in our BESS project, let's say, of INR100 project, what is our addressable market?

Sir, not a very straightforward answer because we will not be -- because there are various, as I think Omkar was mentioning about it. The BE SS go-to-market is slightly different. There are people who actually have been buying on capex model. There have been people who have been buying on the opex model. We are trying to see as to which fits us best and to which customer do we supply so that the continuity and our -- eventually, the cash is secured in terms of getting it on time. So it's very difficult to quantify the market. What I can again say that in times to come, there will be a great need of BESS. There are so many people who will start making BESS, and we are trying to create a niche for us by giving something which is 2 notches more than what actually is given by a normal BESS integrator or supplier.

Exactly that is what I was trying to understand because there are a number of players who are talking about visibility and integration visibility. So how competitive would we be in comparison to those players? There are 20, 30 players talking about present ing this in manufacturing or software. But there is -- it is really hard to assess the competitive advantage that we have. So that is what the question aiming -- and sir, are we looking at export also for data center products? Are we already do -- have done it already in kind of order for data center and exports?

We are exploring about the export piece. And in terms of competitiveness, we are not the best, of course, we are not the cost leaders because we really retain and deliver quality. And the certain USPs which we drive is consistent quality and backed up by a dvisory software, which makes BESS system operate and run more efficiently for longer duration of time. And out of those 15, 20, 25 players, we are not stacked in top in terms of cost competitiveness, but then there are many customers who really come to us because of the other merits which they see what is coming up from SEIL.

[inaudible 1:03:31] to host this call. We would also like to thank all the investors and analysts for joining this call. Udai, sir, would you like to give any closing remarks to the investor.

Yes. So first of all, thank you so much for really coming and asking these questions, which we'd love to clarify. You can understand that we, at times, are not able to really answer all your questions and cite you some numbers, which perhaps you are interested in knowing because we ourselves are perhaps not in a position to really give you an accurate number, so to say. What we tell us, what we tell you is a directional number, which your company actually is trying to work along and make it happen. So thank you so much for being with us in this call and hearing us out, asking questions, which were very pertinent and important, which gives us direction and also sort of gives a queue as to which are the areas which perhaps is you are very inquisitive about. Thank you, and all the best for time to come. Thank you.

Thank you. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.