Shailesh, we will start with you. First set of questions from Binay Singh. Could you give us a sense of what is the kind of commodity headwind that we have seen and we are likely to see and how we are thinking of passing it on? Also, the second question is how do we see our EV volumes step up from here? It's been growing. And is it expected to improve the net pricing? And the third one is on the percentage of portfolio where we are getting PLI. I will take that at the end.

Okay. So quickly on commodity headwind, we see a nine to 12 -month kind of a picture, including how we are seeing things this quarter. The impact has been somewhere between 5% to 6% of revenue, definitely upwards of 5%. And as Dhiman already mentioned previously that we have not been able to pass it on any price increase last year because H1, there was a very low consumer sentiment and demand was under stress. And then in the second half, government's effort of bringing down the GST rates, we could not take the price increase also to be aligned with the intention of what government had brought down the GST rates to. So definitely, we have not been able to pass on this to the market. There have been intense cost reduction efforts, which has yielded us about 2% of revenue reduction. We also took about 0.5% increase in April. And , the cost reduction efforts , we are further intensifying. Having said that, there will be still residual stress of commodity impact that we are seeing. And therefore, we are actively considering some level of price increase in the coming month, but not decided as yet. So that’s on Commodity headwinds. On EV volume run rate, yes, it has been consistently around 24,000. Rather in quarter four, we were at 27,000 roughly. We are consistently hitting a monthly run rate of 9,000. Demand is extremely strong, especially after the Mid dle-East crisis unfolded. Hopefully, we'll start ramping up further beyond 10,000 from this month onwards. So, we are very optimistic about EV demand growing from here on. And that's it. These are the questions. And then you have to answer that percentage.

Shailesh if you could also, I think you spoke about Sierra volumes?

Okay. Sierra volume, as I said, that we have received tremendous response to Sierra when we had launched the car. And since then, the demand and bookings have been consistently coming very strong. For us, the challenge has been on the supply side. And particularly, this has been because of one or two suppliers, especially on the casting side. It's a new engine, as you know. And we have faced ramp-up challenge. But we have taken a series of corrective actions, including additional suppliers to overcome not only the constraint that we are facing now, but to ramp up the production of our engines. The immediate milestone for us would be to cross 10,000 and then we have plans to further increase the production of Sierra in the coming months. And next quarter, we should also be launching the Sierra.ev. So that will further require additional capacity, but all of this has been planned.

Thank you, Shailesh. Binay on your last question on PLI, almost two-third of our volumes last year was accredited with PLI. So that accounts for about Rs. 1,000 Cr accruals that we took in last year. Moving on to the next question. Richard, this is coming your way. I think there are a lot of related questions on this one and the next one. So I'll ask them one by one. One is, if you could give , I know we are not giving any specific guidance till our Investor Day, but anything you would want to mention on the demand conditions you see in your key geographies?

Yeah. I think I covered that off in my comments on the charts. I think North America as a region is still one where we have growth potential. Our brands resonate really well there. And if you look globally at where the high net worth and ultra-high net worth individuals are, it's still in the States. So the States still has opportunity for us. I think the UK and Europe are stable. And China, as everybody knows, has been through a very, very difficult period, but we have readjusted our retailer numbers and also our retailer stock levels, and we see things at least in the short term, stabilizing where they are. Obviously, the Middle East, I've also covered off in discussions, and the other overseas markets are reasonably stable as well. So, to be honest, the biggest issues that we're facing, and again, I mentioned this, are more on the supply side as a result of the conflict in the Middle East and other issues. Demand for the moment is slightly a secondary concern.

Okay, any update on the Range Rover EV launch timelines and what kind of pre-bookings you are seeing?

Yes, it's coming very, very soon. It will be the first of our EV launches, and we've got three reveals coming during the second half of this year. So we don't have pre-bookings. We have expressions of interest, and there are 78,000 of those at the last count. So that's where we stand. It's coming. I've driven it, and it is fab.

Thanks, Richard. I think another linked question to this that's coming later. Any comments on, with the expected fuel price increases we are seeing in Europe, are we seeing any shift in demand for EVs? And second is, does it have any implications on our investments or launch time lines for EVs?

Yeah. So let me take that as well. So I think we're seeing a couple of things. First of all, generally, across the market, there has been an increase in Internet search for EV vehicles over ICE vehicles as consumers are really focused on the prices that they can see at the pumps. It's affecting us a little bit less, to an extent. Our consumer base, which is more in the high net worth individuals, they are less concerned than the average about the actual price at the pumps, but they do get concerned when there are issues around supply. So where things stand at the moment, I don't think that's having a direct and significant impact on our demand. I'm sorry, there was a second part of your question as well, which I've forgotten.

Does it have any implications on our launch timelines or the investments on EVs as you're seeing?

Launch timelines, no. It in and of itself, i.e., the war in the Middle East , is not going to change our investment plans on the assumption that it is resolved in a reasonable time frame. However, the geopolitical split between markets which are continuing to accelerate fast towards BEVs, those that are starting to accelerate fast in the other direction and those that are stuck in the middle does mean that we will have to rebalance our investments over time to ensure that we have ICE offerings globally for longer. So we are in the middle of doing that. Nothing specific to announce today. But obviously, like many manufacturers, we are going to need to ensure that we can offer both ICE, PHEV, MHEV and BEV offerings in parallel for longer than we originally thought we would need to. Thank you. Next question. Richard. How are we seeing the Chinese OEM competition increasing in Europe and UK? And what does it mean for JLR and its House of Brands?

So they're definitely coming. The best plan that we have in relation to the Chinese imports is to rely on our brands, essentially to fight them where they are not. So we have vehicles that superbly embody the brands , and the brands are very strong. So, we expect to be able to use that to operate in a space where we have at least a level of protection versus these imports. Obviously, there are also geopolitical issues as to tariff structures made in Europe and various other things that are going to play into this. But at the moment, and it is working, we will use our strengths, the strengths are our brands and the products that superbly embody them.

Thanks, Richard. Shailesh, moving on to the next question. This is from Kapil. India EVs, can you talk about the demand environment? And how long-term are you thinking of EV profitability versus ICE?

Okay. So demand for EVs has significantly grown since the Mid dle East crisis started. If I have to just attribute what was the percentage of growth in the bookings, which has started flowing versus pre-Middle East crisis, which started in Feb, I think the jump is nearly 25% to 30%. Our booking jump is much stronger also because of the new launches that we have done. So , extremely strong demand. The issue is supply. It will completely depend on ramping up, how fast we are able to ramp up the volumes. But as I already mentioned, that from this month onwards, we are already trying to increase the production by additional 10%. And in future, we are also ramping up beyond that. It is all about alignment with the suppliers. The second question was more in terms of long-term profitability of EVs. Already, it's quite strong, but it is also supported with the PLI. But I would say that long term, if you see the trajectory of cost as far as ICE vehicles are concerned is inflationary because of the impending emission regulations, technology that you will have to embed in the ICE vehicle to meet continuously stringent emission norms in the future is going to make it inflationary, whereas the trend of cost is significantly deflationar y in EVs and that will continue. So therefore, strong cost reduction programs. I mean, even in the last three, four years, there has been significant cost reduction, much, much higher than ICE. And therefore, the combination of these two trends will not only give opportunity for EVs to be completely at price parity, but also from a profitability perspective, it will keep growing stronger.

So. Balaji, next two questions for you. One is the partnership with Freelander with CJLR, are we planning to take Freelander globally? And the second question is, what will be the revenue streams from JLR from Freelander? Yes. Thanks, Dhiman. Freelander is our JLR brand, and it has been licensed to Chery for manufacturing their car. And it will be manufactured in the CJLR factory, which is co-owned by Chery and JLR. And therefore, the products that we have been making in CJLR have run their course and this factory would have otherwise idled. Now we have a very extremely interesting proposition of resurrecting our brand, Freelander, which has been there with us for a long time and rebuilding it in, while using the Chinese technology. It is Chery's car other than the design aspect, which we are involved in. Thereafter, it's a Chery car, and it is going to be first sold in China, and then they'll have to make up their mind where they want to go thereafter. For our revenue stream, the main one is royalty for the brand that we have given to them. The brand is still owned by JLR, and that's the reason why we are involved in the design of it. As far as another piece that will come through is that CJLR utilization and the toll conversion will be the second revenue stream as 50% of that does come through. And those are the two fundamental ones.

Thank you, Balaji. Richard, I'll hand over the next question to you. This is from Binay again, Morgan Stanley. JLR ASPs trended down quarter-on-quarter, while the share of RR and Defender went up. If you could talk us through this. Also the gross margins went down quarter-on-quarter. And some color on inventory levels of JLR across the geographies amidst all the geopolitical issues you are seeing on freight.

Yeah, sure. So ASPs were down marginally Q-over-Q In sterling terms I think it was about GBP76,000 to about GBP72,000. Biggest individual elements in there are sterling, which got stronger against the dollar quarter-over- quarter. So in Q4, it was about $1.36, I think, and in Q3, much closer to $1.325. So that's one impact. And obviously, then there's some regional mix issues as well. But Range Rover, Range Rover Sport and Defender being stronger was the offsetting effect. Gross margins went down quarter-over-quarter. That is a little bit to do with higher VME levels and also some charges that we had to take within the warranty space. So those are the two biggest impacts there. Inventory is quite tight. So partly as a result of the lost production that we had through the cyber incident, we took retailer stocks down, particularly in the US, I mentioned this in my talk earlier on. So , we started the year with stock levels in the US that were a little bit too high, but deliberately because we had anticipated that tariffs would come in and we wanted to get the vehicles in market beforehand. And at the end of this year, they're back probably even a tiny bit below where we would normally want them to be. So we're not with excessive inventory across any region. The US is not overstocked. Obviously, MENA at the moment, we have some dealers that are actively running out of vehicles as it is more difficult to get them vehicles into their importer ships. So JLR inventory is in a better place at the end of FY26 than it was at the end of FY25.

So, Richard, just to add to that, philosophically, being a luxury OEM, we would want to keep our inventories tight, and you should expect that to continue going forward as well.

Yes.

Thank you, Richard, Shailesh, if you could take the next two questions. One is a follow-on to JLR. What is the kind of inventory levels we are seeing in India? And second, given the demand of some of the models, what's the kind of waiting period you are seeing?

Yeah, so quickly on dealer inventory, we are right now at about 20 day level. So waiting periods for us would be ranging from four to eight weeks. In general, I'm saying for certain models, of course, like Sierra and all, it is quite high and so is for certain EVs. In terms of the growth, the other question that you had asked, the growth from an industry perspective, if you see, industry will grow very strong, and I am pegging the number around 10% because the first half of last financial year was a low base. And therefore, in H1, you are going to see very strong double-digit growth coming on the back of that because let's say, first 1.5 months of this financial year, the demand remains very strong, carrying forward the momentum of GST. And that will continue with some level of plus/minus 1% or 2% depending on how the fuel prices play out in the coming months and how, to what extent the commodity prices are passed on to the market. But I don't foresee too much of an impact given that there was a 13% drop in GST, which was done. So significant headroom in terms of what can impact the consumer sentiment. So therefore, I would still bet that industry will grow somewhere around 10%, especially it will be high double-digit growth in H1, and then it will moderate in the H2 with the high base. As far as Tata Motors is concerned, I think this year is going to be more a supply challenge for us rather than demand. Demand is significantly high for us. And therefore, the effort is to ramp up, enhance capacities, both at our end as well as suppliers end. And we'll have a phenomenal industry -beating growth because this year, we already mentioned that last year, we have launched in H2, three, four models, which I talked about. But this year also, it's going to be an intense product action year for us. These two new nameplates and four facelifts that we are going to launch, both four facelifts each for ICE and EVs. So it's an intense product action year. So, we have to really work on the supply side.

Thanks, Shailesh. I'll come back to you for the next question, too. I think you mentioned about the commodity headwinds. If you could clarify whether the 5% to 7% increase in commodity prices are already in our P&L in Q4, or is it yet to come? And how should we look at the commodity headwinds going forward?

Yes. So you know, I'm just giving you a ballpark number of 5% to 6%. I would say 2%, 2.5% would have come last year and significant increase in this quarter, which is expected beyond that. So roughly, you can imagine 3.5% to 4% increase, which we are expecting this quarter.

Yes. And Nishit, just on the last part, the commodities are probably going to be elevated and also volatile. And like I said, as part of our priorities, cost mitigating actions need to be planned. We hadn't taken any price increase last year and the entire 2% input cost increase we had absorbed through cost reductions. We had announced a 0.5% price increase in April. And obviously, we'll keep monitoring the situation and see we can keep taking any measured price increases depending on how the market evolves. Second is our volumes have gone up by 50%, and there's been a massive effort in scaling up our productions and our supply chain. And as the volumes kind of normalize, we'll be able to optimize and further benefit from fixed cost leverage. Third is our cost reduction programs are very, very robust, not able to see the benefit last year because of the commodity increases that offset. But given the robust volume increases that we are seeing, we should be able to be in a good position to drive it up further. But yes, this is how to offset this would be top of our radar next year.

I just want to add, Dhiman, that just to be careful in terms of how we are going to approach this whole situation as all the cost reduction levers Dhiman talked about, including mix improvement, what we'll pass on to the market will be which does not disturb too much of value creation for the customer, but whatever we must to also protect the margin, we will do that, but it will be a very careful balance between the two. Thank you, Shailesh. Next question, Balaji, your way. Reduction of breakeven to 3,000. We've been constantly.

300,000. Sorry, 300,000. We've been constantly reducing the breakeven points for the last few years. How do you plan to do this? And in some way, does it reflect our volume outlook also?

It will be fabulous if we get to 3,000 units on breakeven, but that's for another day. But having said that, getting this back to 300K, if you recollect that we did bring this business to breakevens of 300K to 320K not so long back. But since then, there have been multiple moving parts. One, of course, is tariffs coming in, things have changed. The mix is starting to do very well for us. But of course, as we go forward, we'll need to ensure with EVs coming in, we should be able to keep the mix. Then, of course, is with the currencies moving the way they have, that has obviously meant that you also had, your main costs are in pound sterling. That's there. And lastly, of course, as commodity inflation, everything kicks in, you will have a stress on that particular part of it. So therefore, this is a number just like similar for Tata Motors, you are looking at costs everywhere. We will obviously have to do it from our end as well. We are fundamentally looking at three areas that we are going after for the GBP 1.7 billion. First is the entire end-to-end delivered cost all the way from raw materials. If you look at our organization changes that we have put in place, we have stood up procurement as a separate vertical reporting into the Board. So that's a clear move to signal the importance of st rategic procurement because in the recent past, it has also meant that because of the challenges on supply chain, we have been having consistently, it's fair to say that we haven't had the time and effort to actually focus on the strategic side of it. So t hat's one area we are looking at. And of course, as new product starts launching, we should be in a better position to manage the entire end -to-end supply chain. That is number one. Second, an area which has not delivered for us is the whole warranty space. We've been talking about it for a while. While my IPTVs are improving, quality is improving, products are actually performing to what they expected to, cost of repair has shot through the roof, particularly in markets like the US, and other OEMs are also having the same challenge. So we need to up our game on that front. That's the second area. And of course, the amount of investments that we have done on IT, digital, etc., it's an area which needs to deliver productivity for us. Cyber has shown that there are areas we could still do work in terms of simplifying our IT landscape, etc.. So that's the reason we have put a CIDO on the Board as well. So there is en ough and more opportunities to look for on this. That's the reason we have quantified it in a two -year period to deliver GBP1.7 billion. So we should start working on that and the numbers should start reflecting from the second half of this year itself. So that's the whole plan.

Thank you, Balaji. Richard, last question for the day. You spoke about VME, how are we looking at VME going into FY27?

I think generally, it is relatively stable. I think it remains to be seen in China, how the industry absorbs the extra 10% luxury tax that was implemented in the middle of last year. But we are not seeing it rise considerably from the levels that we saw at the back end of the last financial year. Thank you, Richard. I'm just waiting for one more question that has come. I'll just take that. Yeah. Raghu, is there a decline in other expenses on JLR? Richard, if you could take this and I'll take the last one. Is there a decline in other expenses for JLR year-on-year and quarter-on-quarter?

Yes, there is. You'll find that the majority of that is actually exchange-related in terms of a reasonably good hedge gain this year versus the opposite effect last year. So it's largely that. There is some central cost reductions in terms of very centralized expenses, but the biggest element within there is exchange.

Thank you. Shailesh, if you could talk about exports and what's the outlook for FY27?

So last year, we had a 4 times jump in exports to 10,000 plus units. And this year also, we are targeting anywhere between 70% to 100% kind of a growth, depending on how we are able to ramp up our production and then further add to our portfolio in South African market. So the timing will be important. So it can be anywhere between 70% to 100% growth.

Thank you, Shailesh. And the last question for the day, Raghu, the question is Rs. 471 Crs PLI that we accrued in Q4 FY26, was there any prior period item? The answer is yes. We had about Rs. 90 Crs pertaining to Q3, which -- for which the product got certified in Q4, so we claim benefit. So without that, the number would have been about Rs. 380 Cr. Thank you. And thank you, everyone, for joining our results call for Q4 FY26. Just to remind you all, our Investor Days are in June – 17th June for JLR and 23rd in India, and we look forward to seeing you there. And for any assistance that you would need, please do reach out to our IR team. Thank you, and have a great evening. Note – this transcript has been edited for readability & any inadvertent errors.