# 1. Financial Performance ## A. Key Figures * **Revenue:** **₹3,497.9 Cr** FY26 (+16%) · **₹998.7 Cr** Q4 FY26 (+28%) * **EBITDA:** **₹632.1 Cr** FY26 · **₹192.9 Cr** Q4 FY26 (+52%) * **EBITDA Margin:** **18.1%** FY26 (+100 bps) · **19.3%** Q4 FY26 (+300 bps) * **PAT:** **₹326.9 Cr** FY26 (+51%) · **₹123.1 Cr** Q4 FY26 (+108%) * **Return Ratios:** **18.0%** ROCE (vs 16.2% FY25) · **11.1%** ROE (vs 10.5% FY25) * **Cash Position:** **₹397.2 Cr** Cash Balance · **₹387.1 Cr** Operating Cash Flow ## B. Revenue Growth * **Record Top-Line Momentum:** Achieved highest-ever annual and quarterly revenue, underpinned by robust performance in the Aerospace & Defense (ADS) and Sweden business units. * **Domestic Outperformance:** Strong double-digit growth with key 2-wheeler OEMs, specifically **29.9% with Bajaj** and **13.3% with TVS**, outpacing broader market trends. * **Mix-Driven Scaling:** Growth was characterized by a favorable revenue mix and significant operating leverage as the company scaled. ## C. Margins & Profitability * **Sequential Margin Expansion:** Profitability improved consistently throughout the fiscal year, peaking in the final quarter due to a structural shift toward higher-margin ADS revenue. * **Operating Leverage:** Revenue growth significantly outpaced the rise in employee expenses, demonstrating efficient cost management during the scale-up phase. * **Non-Operating Boost:** Bottom-line results were further supported by a substantial increase in other income, totaling **₹59.6 Cr** for the year, driven by forex gains and interest. ## D. Cash Flow & Capital Allocation * **Liquidity & Leverage:** Maintained a healthy cash position to fund expansion with minimal debt reliance, though finance costs rose slightly to support **working capital borrowings**. * **Working Capital Dynamics:** While the Auto segment saw improved efficiency, the rapid growth in the ADS segment necessitated a new capital buildup, slightly moderating operating cash flow as a percentage of revenue. * **Strategic Prioritization:** Capital allocation is strictly focused on high-ROCE segments, specifically targeting PV exports, Aerospace & Defense, and Agriculture. --- # 2. Segment & Product Performance ## A. Key Figures * **ADS Product Sales:** **₹315.5 Cr** (Annual Guidance Met) (+155%) · **₹349.8 Cr** (Incl. Scrap) * **Non-Auto Revenue:** **₹173.6 Cr** (Quarterly Record) (+70.5%) * **Auto ICE Revenue:** **₹642.6 Cr** (Quarterly Record) (+21.6%) * **xEV & Tech-Agnostic Revenue:** **₹121.7 Cr** (Quarterly Record) (+19.8%) ## B. Aerospace & Defense (ADS) * **Exponential Scaling:** Segment delivered triple-digit growth, underpinned by a doubling of ADS sub-segment revenue and a strong pipeline of secured business. * **Technical Capability Expansion:** Significantly enhanced manufacturing envelope from **1.5m to 4m** using 5-axis machining, enabling production of complex structural parts and engine casings for Boeing and Airbus. * **Pioneering Technology:** Set to deliver India’s first fully machined engine blisk (approx. **600mm** diameter) within two months, positioning the firm as a domestic pioneer in complex rotating sections. ## C. Auto ICE Business * **Record Core Performance:** Achieved highest-ever quarterly revenue fueled by robust momentum in PV and CV segments across North America, Europe, and India. * **Strategic Outsourcing Tailwinds:** Anticipates a major shift in the domestic 2-wheeler market by **FY27** as OEMs transition from in-house crankshaft assembly to outsourced models. ## D. xEV & Tech-Agnostic * **EV Traction:** Record performance driven by rapid 2-wheeler EV adoption; seeing strong demand from traditional OEMs and a leading exclusive EV player. * **Content Value Strategy:** Targeting content per vehicle between **₹5,000 to ₹10,000**, with upside potential from hybrid platforms, flex-fuel engines, and Nichidai program integration. ## E. Semiconductor Division * **High-Growth Pivot:** Emerged as a primary annual growth driver following the commencement of mass production in **late Q2/early Q3**, aligned with India’s Semiconductor Mission 2.0. * **Capacity Constraints:** Global AI and data center demand has led clients to aggressively block machining capacities to secure supply chains. --- # 3. Manufacturing & Capacity ## A. Key Figures * Forging Capacity: 120 million components p.a. (current) · 40% planned increase (next 2 years) * **Automation Ratio:** **80%** robotics/automation vs. **20%** human labor on new lines * **JV Capex:** **₹50 Cr** Sansera contribution for FY ## B. Facility Expansion * **Strategic Infrastructure Growth:** Completed Pantnagar facility inauguration and secured a long-term lease in Manesar to support 2-wheeler and PV demand. * **Aerospace & Defense (ADS) Scaling:** New building construction completing by **July/August** with immediate full occupancy expected; revenue contributions slated for **H2 FY25** following FAI deliveries. * **Proactive Capacity Management:** Prioritizing long-lead-time capex for forging and leveraging Tier-1 supplier relationships (DMG Mori, Makino) to accelerate equipment deliveries. * **Future Readiness:** Board-approved land acquisition targets accelerated growth in high-margin **aerospace and semiconductor** sectors. ## C. Automation & Robotics * **Labor Mitigation Strategy:** Shift toward high-density robotics and deskilled operations to counter labor shortages and wage inflation. * **Operational Efficiency:** Implementing skill-based incentives and multi-manning systems, particularly within the complex aerospace division. ## D. Joint Venture Progress * **Portfolio Diversification:** Partnership with Nichidai (Japan) enables entry into new driveline and steering system segments via precision forging. * **Commercial Timeline:** JV facility expected operational by **Q3 FY26**, with machinery installation beginning **September** and RFQs already in progress. * **Asset Readiness:** Initial capital deployment includes the procurement of a specialized forging press already situated in India. --- # 4. Order Book & Customer Metrics ## A. Key Figures * **New Business Peak Revenue:** **₹1,920 Cr** annual potential * **ADS Lifetime Order Backlog:** **₹4,460 Cr** unexecuted 5-year cumulative * **Long-term Revenue Visibility:** **₹8,000 Cr - ₹8,200 Cr** by end of decade · **₹10,000 Cr** long-term target * **US Auto OEM Opportunity:** **2M - 3M units** per year for specific connecting rod programs ## B. Order Book & Market Momentum * **Strategic Revenue Visibility:** Robust long-term order book provides a clear path to significant scaling by 2030, contingent on macro stability. * **Export Resilience:** Non-auto export growth to the U.S. is driven by genuine demand rather than inventory cycles, signaling sustainable momentum despite historical tariff pressures. * **Conversion Timelines:** While inquiry-to-order conversion is at **100%** in high-precision segments, broader export order inflows face a **1-2 quarter** gestation period due to ongoing client negotiations. ## C. OEM Wallet Share & Expansion * **Aerospace Scaling:** Increasing wallet share on flagship platforms (A350, B737) as global OEM production rates accelerate. * **Domestic & Global Auto Growth:** Expanding production lines for Tata Motors and Maruti while targeting new domestic MHCV OEMs beyond current partners Daimler and Volvo Eicher. * **Strategic Outsourcing:** Focused on capturing larger component packages from major American OEMs (Ford, Stellantis, GM) through increased outsourcing of core engine parts. ## D. New Business & Technical Capabilities * **High-Complexity Wins:** Secured a prestigious contract for engine blisks and rotating components, showcasing advanced precision engineering for large engine manufacturers. * **Portfolio Diversification:** Transitioning North American OEM projects into production, including a strategic entry into the **energy storage solution** segment. * **Two-Wheeler Pipeline:** Final-stage discussions with major 2-wheeler OEMs (existing and new) suggest imminent production starts for upcoming programs. --- # 5. Strategic Initiatives & M&A ## A. Key Figures * **Revenue Mix Target (Auto ICE):** **60%** of total revenue (vs. **88%** historical high) * **MMRFIC Equity Stake:** **45% - 50%** projected holding by FY26 * **Machine Building Order Book:** **1 year** visibility ## B. Revenue Mix Diversification * **Aggressive De-risking Strategy:** Significant pivot away from ICE dependency through ADS division expansion and non-auto sector penetration. * **Segment Re-alignment:** Non-automotive revenue is trending to exceed the initial **20%** target, while maintaining a disciplined **20%** focus on xEV and tech-agnostic components. ## C. Strategic Partnerships & M&A * **Semiconductor Expansion:** Progressing toward a second major global partnership; business model remains flexible with no exclusivity constraints. * **Automation Scaling:** Seeking a strategic automation partner to alleviate capacity bottlenecks at the in-house machine building plant. * **Deep-Tech Integration:** Increased commitment to MMRFIC underscores a long-term "Make in India" play, targeting large-scale government and aggregator contracts. ## D. Technology & Innovation * **Aerospace Technical Milestone:** Secured a full blisk machining award following the "first time right" delivery of a partially machined component. * **Strategic Alignment:** Investments are increasingly focused on deep-technology capabilities to support long-cycle market opportunities. ## E. Board & Leadership * **Executive Realignment:** Elevation of Rahul Kale to CEO of the Automotive division to spearhead operational scaling and capacity management. * **Governance Succession:** Appointment of **three new Independent Directors** and the scheduled departure of Director Ashok in **July 2026** as part of a formal board transition. --- # 6. Risks & External Factors ## A. Key Figures * Other Expenses: ₹953 million Q4 (+28%) [Page 5] * **Semiconductor Lead Times:** **7 to 9 months** for specialized machinery * **Workforce Diversity:** **65%-70%** women-employed at Pantnagar plant (Target: **100%**) ## B. Geopolitical & Macro * **C. S. Strategy:** Discussions for a domestic U.S. plant have accelerated following a tariff reduction to **10%**, though final commitments are stalled pending tariff stability. * **Global Volatility:** Management maintains a cautious outlook on overseas demand sustainability due to ongoing conflict, price escalations, and rising fuel costs. * **Order Book Softness:** International order bookings were muted this quarter as global uncertainty offsets the high historical demand in the aerospace sector. ## C. Labor & Inflation * **Cost Pressures:** Significant rise in "Other Expenses" driven by business scaling, elevated logistics, and inflation in steel, aluminum, energy, and freight. * **Labor Mitigation:** Persistent labor availability and attrition challenges are being countered through motivation schemes and a strategic shift toward workforce diversity. * **Seasonality Outlook:** Management projects a stronger H1 FY27 relative to H2, primarily due to a favorable base effect. ## D. Supply Chain & Operations * **Semiconductor Constraints:** While margins in the semiconductor segment are highly attractive, growth is currently bottlenecked by extended lead times for critical "mother machines." * **Working Capital Optimization:** Plans are underway to improve ADS working capital through the **localization of raw material sources**, aimed at reducing holding periods and lead times. --- # 7. Guidance & Outlook ## A. Key Figures * **Long-term Revenue Target:** **₹8,000 Cr – ₹9,000 Cr** Group Total · **₹1,300 Cr – ₹1,400 Cr** ADS Segment * **ADS FY27 Guidance:** **₹550 Cr – ₹600 Cr** Revenue * **Order Backlog (ADS):** **₹4,500 Cr** Confirmed through 2031 * **Capex:** **₹509.7 Cr** FY26 Actual · **~₹510 Cr** FY27 Projected * **Segment Mix (Non-Auto/xEV):** **40%** Long-term target · **32%** Q4 FY26 Actual [Page 5] ## B. Revenue Strategy & Segment Mix * **ADS Portfolio Expansion:** Management anticipates the Aerospace and Defense revenue share will scale significantly from current levels to **15%-20%** within two years. * **Diversification Milestones:** The transition toward a technology-agnostic profile is accelerating, with non-ICE and xEV segments already nearing the long-term contribution target. * **Energy Storage Entry:** Initial programs in energy storage are projected to contribute **INR 80 Cr – INR 100 Cr** annually, serving as a bridge to high-tech aluminum product opportunities. ## C. Capex & Capacity Utilization * **Infrastructure Investment:** Sustained capital expenditure levels in FY27 will focus on dual-track expansion: bolstering ICE capabilities while establishing dedicated new ADS facilities. * **Backlog Execution:** An incremental **INR 250 Cr** investment is earmarked specifically to liquidate the multi-year ADS backlog, supported by a high **2x asset turnover** profile. * **Scalability:** While current spending covers visible orders, management signaled a readiness to increase capex further as new high-value opportunities materialize. ## D. Margin Outlook * **Profitability Drivers:** With ADS facilities currently at peak utilization, the execution of the higher-value order book is expected to drive segment margins toward a robust **25% to 30%** range.