Aimtron Electronics Limited ($AIMTRON)

Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the H2 and FY '26 Post Earnings Conference Call of Aimtron Electronics Limited. Today on the call from the management, we have with us Mr. Mukesh Vasani, Chairman and Promoter; Mr. Sneh Shah, Whole-Time Director; and Ms. Nikita Shah, Chief Financial Officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to briefly run us through the investor presentation and the business and performance highlights for the period ended March 2026, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.

Good afternoon, everyone, and thank you Vinayji. On behalf of Aimtron Electronics Limited and our Board of Directors, I warmly welcome all our investors, analysts, shareholders, advisers and stakeholders in today's call. Please welcome. We sincerely appreciate your continued trust, support and interest in Aimtron's journey. Last 2 years -- almost, actually, we are only a few days away, a few weeks away from our -- to finishing the second year. So last 2 years, Aimtron journey, your confidence encourages us to keep building Aimtron with a long-term vision, strong governance and disciplined execution. At Aimtron, we are moving forward with our Aimtron 2.0 vision, with strengthening our core electronic manufacturing capabilities, expanding our global presence. You see that we have already acquired a company in Decatur, Illinois, and building a deeper customer relationship like a stickiness of the customer and creating a more professional, scalable and future-ready organization. We remain focused, as we promised previously also on sustainable growth, operational excellence, innovation and long-term value creation for all stakeholders. Again, thank you so much for taking the time today. As you know, we are only 1 year away from main board entry, and we are very prepared. I guess, all the check boxes already checked off, except we have a 3 years' time line. So with your support, once we finish 3 years, we'll move forward on that also and we started the preparation. I think today, your interest is more on question, answers and results. So, I will hand over to Sneh and Nikita to just give a little overview about Aimtron and results, and then we'll go for question and answer. Again, thank you so much. Really appreciate it.

Thanks, Mukesh, for the brief. So, utterly, I think it has been a great story like past few years to what trajectory we have changed. So, considering that as Aimtron, so initially we used to be more on like PCB assembly, more of an EMS, which we redirected towards ESDM, ODM-led manufacturing, design-led manufacturing kind of an activity. And that is now getting surfaced in the last couple of quarters as well. So as Aimtron, basically, we are termed as an ESDM, electronics system design and manufacturing. So, we are in like manufacturing facilities in [Technical Difficulty]. One is in U.S., which we recently acquired one company that is renamed as Aimtron International Controls and we do have our presence in Bangalore as well. And the sectors, we will go more into it later on which are the sectors. We are already there. So this year, we added more. One was agrotech. In aerospace and defense where we got qualification under certification of AS9100D. Hello?

Yes, Sneh. Please continue.

So this year like we gained trusted telecom partner. And railways also, we started encountering the orders and our DSO approvals will take place in the next couple of quarters and [Technical Difficulty] So, these are the global certifications that we have in place. For instance, 13485 makes us visible globally for MedTech products along with CDSCO, which are now mandatory for Made in India equipments. So, we do several things under MedTech. 1694 (sic) [ 16949 ] is approved for specific to automotive. AS9100, as we stated, we recently got approval last year, trusted telecom partner that also got approved. We are already approved under that last year. And RDSO is coming, that is under progress and probably this year by first half or probably by third quarter, we expect an closure on that part. Next? So, probably, this is more on the -- Aimtron Electronics India is a holding company. So, we created one subsidiary called Aimtron Mechatronics. That's a greenfield project. We acquired a space here in Vadodara itself, where down the line we are expecting to have injection molding, sheet metal and all that in-house. And then we created a wholly owned subsidiary, Aimtron Electronics LLC that is in Texas. And that is basically a wholly owned subsidiary of Aimtron India itself. And then Aimtron International Controls is like AEL, probably falls under AEL LLC. AIC falls under AEL LLC, Texas. Next? PLI, we applied for ECMS under SME segment, small fiber optics. So just to give a more brief like small form-factor pluggables that comes from 1G to 50G. Probably, India demand is getting aggregated and it's expected like to go up to 40G capacity range. And that is what we are also advancing in that direction. So, we are working on TOT as of now, transfer of technology with one of the international players that is in progress as of now. And once we get that POD signed and probably down the line, we'll be eyeing on how do we have more rollover on that part. So, that will be under Aimtron Mechatronics. So, this is like more often solutions that we provide, product engineering solutions, PES, we call, so that includes like hardware, software, firmware, mechanical. And if you see last half of the year, proud to say that our PCBs were like trialed in 26 January to what parade it was being displayed. Drones were displayed for [Technical Difficulty] complete China Plus One kind of a story because it was more of a defense level. Then we entered railway where we are providing like SIL-4 level integrated systems that is an anti-collision advanced collision system along with a couple of signaling orders that we have started getting in. Data centers story, probably the market has started now. We have been working on this since almost a year where we got one order of $12 million where we are designing from scratch, starting from 1 kV, 2 kV, 3 kV with battery, without battery and [Technical Difficulty] where we are as of now going with 3 variants, 6 SKUs of it and probably down the line, we are expecting to go more. And then our AI dashboard camera, it's as of now getting used in GSRTC, local bus, Gujarat State Road Transportation. And down the line, it is expected to get rolled over in pan-India, again, not immediately, but down the line, that's what -- so this all are getting manufactured at Aimtron itself, Vadodara factory. Next, please? Next?

Maybe Nikita, you can take this.

Hello, everyone. A warm welcome for the financial discussion regarding the 31 March, 2026. For H2 2026, Aimtron Electronics reported consolidated revenue from operations of INR 1,786 million and EBITDA was INR 369 million and profit after tax was INR 257 million. H2 FY '26 revenue grew at 45.7% over H1 FY '26. Over a full-year basis, FY '26 consolidated revenue from the operations grew at 89.2% year-on-year that is INR 3,012 million compared with the INR 1,592 million of FY '25. Profit after tax increased at 79.4% to INR 460 million compared with the INR 256 million in financial year '25. EBITDA margin stood at 22.6% in FY '26. PAT margin stood at 15.3% in FY '26. This is after the consolidation of the subsidiaries and for the current financial year.

Next slide?

Yes.

I think, Sneh, you want to take the order book.

Certainly like -- if we combine all group of companies, probably we stand at somewhere around INR 600 crores kind of an open order book that includes Aimtron India as well as AIC in total. And geography-wise, probably it's more of an India, it's more of an international clientele with around 20%, 25% as an export. And when it comes specific to AIC's, it's all domestic that is specific to U.S. market.

Thank you. Next? Yes. I think we can move to Q&A. Vinayji, you have any more slides otherwise we can start the question, answer.

Yes. I think we will move to Q&A.

Yes. Because that is the main. Thank you to Vinayji and thank you to Nikita and Sneh. Sneh, we have some voice little bit breaking, but hopefully our investor will see that. Maybe you can see under that side and you will get the full presentation and see whatever...

So, we'll take the first question from [ Ashutosh Shukla ].

Sir, can you tell me the impact of PCB price increase and DRAM shortage impact in the business?

So, EMS business, currently, we have already some of the locking price and so we do not have that much impact directly indirectly at this point. And because we are not the end user. And what we do, we communicate with our customer and make sure they are prepared. So, we transfer that cost to our customers. So at this point, Aimtron's book, yes, we have some semiconductor shortage, but we do not have any pricing impact at this point on our EBITDA or on our PAT.

Okay. And one more question.

Sure.

With L&T recently entering in electronic manufacturing services and ESDM space and commissioning its PCB assembly and manufacture facility in Coimbatore, how do you see this development impacting your competitive positioning, pricing environment and overall growth prospect?

So, I think we already in the previous call, we already shared some of the information that this is a huge pie, $1 trillion pie, a pizza. It's not -- even L&T can eat everything. So, there is always a way if you have a niche market, if you have a specialty business, you have a hard electronics, you have some special things, then there is no way they can beat us. So, I think there is enough business. And if you look at our open order book and pipeline right now is almost $70 million, $80 million worth of pipeline we have. So, I don't think it might hurt us. And also when bigger company comes, they have a bigger overhead and it's very hard to move Titanic versus speedboat. So, Aimtron's goal is to be a speedboat versus Titanic. Thank you.

We'll take the next question from the line of [ Amit Jain ]. I think we'll take the next question from the line of Mr. [ Priyanshu Jain ].

Congratulations on good set of results. Every quarter we come and like you surprise us with the results. I have a few questions, sir. First is on the top line basis. So for this year, sir, what is the internal target, which we are targeting for this year?

Sneh, you will take?

Probably we'll keep our strategy in line with 40%, 50% CAGR growth because next couple of years with this year, I would say, next couple of years, we eyeing on INR 1,000 crores kind of a journey. That is what our ultimate goal is. So, you can keep intact with 40%, 50% CAGR kind of growth that we will try to continue to deliver.

Okay, sir. Sir, second question is on the EBITDA margin side. Sir, recently, we acquired like the ICT one. So due to that, we are seeing some impact on the EBITDA margins on consolidated levels around 22%, 22.5%.

So probably, we already have stated, so that company AIC now, Aimtron International Controls, so if you see when we bought in that phase of time, it was kind of early double-digit EBITDA itself. And it's hardly 2 months. We already have started activities on that part. So, ultimate goal is like slowly and gradually, probably in this financial year, it will get consolidated full year. So, you will see the scope of improvement on what it was there before and what it is now because we do have expertise on that ESDM market. And best part is we are seeing the synergies and already transition phase has started and completed. So, we know now where exactly to tap and where exactly we can make the bottom line out. So, that is where we have started working on that part. And probably down the line, you will see the desired results. Probably like a couple of years down the line, we are even eyeing on how do we take it up to the Aimtron kind of a margin -- Aimtron level margin for EBITDA as well as PAT.

Okay. Sir, so like on consolidated levels, we can assume 22% is the conservative, like the most least EBITDA margins we can see going forward, right?

Couple of years down the line, not immediately. This year, it was early double digit, kind of 11 -- somewhere around 11% EBITDA.

Sir, on consolidated levels, you are saying?

Standalone. Specific to AIC.

Okay. Sir, I'm talking about on consolidated levels like. So...

Consolidation, we will be intact to what PAT margins and EBITDA we are into. So that PAT 15%, like a couple of percentage, 1 or 2 percentage here and there. EBITDA 20% to 22% kind of a range will be intact on the consolidation mode. :p id="A01" name="Unknown Analyst" type="A" /> Okay, sir. Sir, third is on the like top line, as we are aiming for INR 1,000 crores. So, I think for the next 2 years, we don't require any kind of a CapEx. But after that, we are planning. Is there anything, which you want to disclose right now?

So, I think you can see that our mechatronic facility is coming out and there is -- some capacity will be there also. So right now, we don't need to spend any more unless you have, say, INR 5 crores, INR 10 crores here and there, minor tools upgrade or maybe small machines upgrade. But we are not seeing another huge expansion cost in the existing setup. But mechatronic will have another setup with 2 assembly lines to start with and 4 assembly lines over there. If you look at this, you don't need that much because we already have 9 assembly lines right now. So in 9 assembly lines, we can easily go up to INR 800 crores, INR 900 crores. So, I think at this point, we don't need any other CapEx at this point. Thank you so much. We can take the next.

[Operator Instructions] We will take the next participant, [ Rushin Shah ].

Sir, could you please clarify that how much percent of IPs are developed in-house? And how much of that is sourced externally or externally acquired? How is the company able to manage its design function with relatively low employee benefit cost, especially given that design-led businesses typically incur higher talent costs?

Okay. So, we do have like a design team in-house where we have hardware, software, firmware, mechanical everything. So, we have somewhere around team of 45 to 50. And then we do have design partners. So including that, we have a team of around 150 team members. And IP typically remains with customers. We don't own the IP. So, we try to be built from scratch and take the manufacturing licensing kind of an activity. And we do support them from stretch -- from concept to design to prototype to production and that too for a complete box build system integration.

With that said, we have about -- our customers' requirement to get to the market easy, we have about 80 platforms ready. That means those are the IPs. We have got a number of IPs in the IoT, other areas, controls or storage, power storage. In those areas, we already have a basic design configuration is ready. Whenever a customer comes in 3 to 4 months, here's the product, so you can take it. And if they pay, then they own it. If they don't pay, then we'll take the royalty or contract for 5, 7 years.

Okay. Sir, management is guiding roughly around 40%, 50% -- sorry?

Yes. Please continue.

Yes. Sir, management was guiding roughly around 40%, 50% revenue growth. In FY '27, if we consider the numbers of consolidated ICS business, there seems almost no growth in ex-ICS business. So, can you please throw some light on that?

Sure. So specific to ICS, we have clearly stated, growth definitely is there. So, growth here. Focus is more on EBITDA and PAT level. Revenue, definitely, it is not going to be same as India like 40% to 50%. So, growth over there would be in double digits specific to revenue. But here, the main focus is on how do we take it up for double-digit kind of PAT and double kind of an EBITDA.

We'll take the next question from [ Akash Shrivastava ].

Congratulations on delivering very strong results. Sir, actually, I have got all my answers and all the questions of my -- I have received answer to all my questions. So, I don't have anything further to ask.

We'll take the next question from [ Pratik Bagadia ].

First of all, congratulations for a great set of numbers. I have a few questions. First, can you take me through the revenue split between India versus abroad? And also, if you could split between different sectors like railways, defense and so on?

Sure. [ Kamlesh ], if you can just open up the presentation, I don't have the numbers handy, but if you can just open up the slide. So if you see like probably like this year as well, 70 -- approximately around 70% kind of an activity was more towards domestic customers with international clientele. And focus was more on a box build, we have stated before as well. So if you see like major industrial, telecom and power and IoT/robotics were the top 5 contributing sectors in terms of industry. And if you see geography like India and U.S. were the top 2. And almost split of PCB to box build was 70-30 kind of a ratio. And ODM model because it's like design cost is generally less as compared to the overall project size. So, ODM model, that is end-to-end solution gets splitted to less than 5%.

So the new addition of clients happened basically in which sector in the last 6 months?

It has been a combination of all. Just an example, new sector, if I say, then aerospace and defense, we added somewhere around 2% overall. Railway, we started entering into that around with oil and gas. So oil and gas, probably now we are looking at something on a higher side because last year, if I see -- just giving you a number, we did almost 424 prototypes. So considering that number, like oil and gas, we are seeing a good traction. And considering to what geopolitical situations are, it seems to be on a better side to be on that spot as well. So overall, if you see like telecom sector, power sector and robotics is something that we added in the second half of the year.

So, do we foresee the same tailwinds in the similar sectors in the next 1 or 2 years? Or do you see railways or defense coming up as bigger players?

Railways and defense, definitely, we are eyeing on it. But as it is more like -- like more, I would say, conversion cycles are too high. So it's not that it is -- these 2 sectors are going to dominate it. We are going to be part of the sectors, where again, we would be focusing on more of a niche market segment kind of activity to what typically we do because as we stated like this 26th January parade to what drones were displayed, we supplied the PCBAs. So, we want to like to continue with same kind of a project, same kind of a momentum. But other sectors, apart from these 2 to what we have stated, probably we'll try to dominate for this year as well, this current financial year as well.

Okay. Fair enough. And my second question would be, what would be the top 3, 4 risk that you see in the coming 2 years in terms of execution?

So majorly, as of now, if you see, like inventory levels, if you see, has moderately increased like due to 3 reasons. One was more of -- if you see like what global situations are going around, chips are getting on like shortage and price are getting increased. So, that supply chain side is the only factor we see can be a challenge. Rest all, I don't think so apart from that -- and that is where we started -- we already like start taking the annual orders with like monthly and quarterly split deliveries based on customer requirements. So to what all inventory we carry, probably it's more of customer projects oriented only, where we have minimal or we don't have any impacts from our side at least.

I think if we have a very niche market, people has to use it or take it, correct? So, even corona time, Aimtron did not have any problem. So, I think if we continue focusing on the niche market, the complex parts, we will not have that much problem because there is always need and there is always requirement for those kind of products. And we always ready to go one step beyond, and that's how we prepare for that. Also very strong infrastructure we have. So something happened, let's say, in a geopolitical situation and all these buildings, all these properties, even U.S. facility, Aimtron International Controls, we have 4-acre land and we have about 58,000 square foot building also. So, we have land and building every single place. So, we don't have to worry about any kind of a turmoil. So as Sneh said, mainly supply chain, but we are communicating with the customers and make sure -- I think that's what the main -- we see the mitigation for risk.

Do you have any further question? We'll take the next question from [ Tahir ].

Congrats on the good set of numbers, sir. First question from my side will be, can you please provide -- on the operational SMT lines, we had for the entire FY '26 and the plans which we had to expand our SMT lines greenfield expansion, like where we have planned to add one more line in FY '27. So, what are the updates on that part?

So currently, we have Fuji platform, [Technical Difficulty] as Bangalore. And the new greenfield project that we are coming up with also will be the same Fuji platform itself that's in Japanese made. And as of now, like collaboration is completed and constructions are ongoing. So, that facility construction is done. Probably it will be Q3 and Q4. Probably it will be Q4 this financial year. And post that, at that phase of time, we'll be having that setup up and running. And initially, we'll be having mechanical setup up and running. And then as Phase 2, we'll be having this electronics or PCB or assembly lines commissioning done.

Okay. So, we are planning to get it operational by Q3 FY '27 for the mechanical part and assembly line will be after that in Phase 2. And what is the time line for that?

A quarter more or an addition of Q4.

Okay. So we are planning to add 1 SMT line by end of FY '27?

FY '27 or Q1 calendar -- Q1 next financial year, latest by that time.

Okay. Okay. And second question was on the margins front. Our gross margins has decreased from around 31% in H1 FY '26 to 28% in H2 due to the increase in CUMC. Was there any raw material price impact during this period?

Probably I would request or suggest that if you can compare year-on-year because if you see always first half to second half, there is always going to be a change because I would prefer to go on the year-to-year basis because if you see year-on-year, probably we are in line. And the quarter -- first half to second half, we have scaled up. And initially, like there are a couple of orders from ODM models which got -- from ODM got shifted to manufacturing and a couple of reasons where -- geopolitical reasons where shipment costs were on higher side, supply chain constraints were there. So considering all that aspects, there are going to be minor fluctuations here and there. But if you see the complete year, then probably we are going to be in line with what we have been projecting.

Also, if we remember, we discussed also last call also and previous a couple of times that Aimtron's journey is still -- compared to like INR 1,000 crores is still INR 300 crores is like sometimes it's going to be -- all the ratios will not meet. I hope I'm communicating it. So because sometimes one customer, one sector, one area is going to be up and down a little bit. So hopefully, if you have a -- maybe a year after you can ask that question, we'll have a better answer for you. So, that's where you will see a real result year-over-year and quarter-over-quarter. So once we enter the main board, you will see a better -- by the time -- at least our revenue will be more than INR 500 crores. I think that's what I'm just adding to what Sneh said.

Sir, we'll take the next participant, Mr. [ Akshay Kalia ].

Congratulations on the great set of numbers. My first question is regarding the cash flow. So, we have generated INR 40 crores negative cash flow this financial year. And by when can we expect to generate positive cash flow? And what percentage of EBITDA can we convert over the next 2 to 3 years? And also, there is one line item of INR 70 crore loans and advances given to other parties. So, can you please elaborate on that part?

Sure. So, we'll take second question first. Nikita, if you can take that up because that's more of an internal just an example, like acquisition done for AIC and projection for construction of Aimtron Mechatronics. So, we can give more brief on that part. Nikita, if you can just add that?

Yes. Regarding the consolidation figures, I can say that loans and advances that is showing at INR 8.3 -- sorry. So, are you referring to the consolidated value or a stand-alone value?

Ma'am, I am referring to the consolidated cash flow at one line item is the INR 16.8 crores of the loans and advances. I'm referring to that only. Just a second.

You are muted, Mukesh.

We can take the other question in the meanwhile, Akshay. Do you have any other questions?

Sure. Not an issue. We can also connect offline.

Yes. Akshay, INR 60.8 crores is given to Aimtron LLC in Texas -- Aimtron Electronics LLC in Texas to acquisition. And that is the part of the payment we did from our acquisition from Aimtron International Controls. So, that is the money you see over the cash flow. But yes, take the next question by the time Nikita will come back then.

Okay, sir. Okay. Understood. So yes -- so my second part on that question was to when can we generate the positive cash flow and by what percentage of EBITDA we can generate over the next 2 to 3 years?

Probably, if you see, we are in an aggressive growth trajectory, and that is where like these impacts have been there. So if we see like once we reach to the stable phase of INR 1,000 crores, so we may continue with this kind of a momentum because of aggressive growth that we are eyeing into 40%, 50% and above. Because even if you see past 2 years, it has been 60% to 70% and even above when it comes to the growth trajectory. So initially, to accommodate that growth, we may need to accommodate on that part. But once we reach INR 1,000 crores kind of a journey, post that, we'll be able to see the stabilization on that part.

We'll take the next question from [ Deepak Poddar ].

Am I audible?

Yes. You will have to speak a bit louder.

Okay. Great. So just a few things from my side now. ICS, what's our current revenue and this INR 280 crores to INR 300 crores target that we have is over the next 3 years, right? I mean, I believe that INR 1,000 crores, we are targeting, out of the INR 1,000 crores, INR 300 crores we are expecting to come from ICS?

Yes. So on peak, we can take it up to INR 25 million to INR 30 million. That is what we are eyeing on from -- specific to AIC, Aimtron International Controls. And this year will be somewhere around INR 17 million approximately. That is what we are eyeing in to.

The 17 million, FY '27?

Yes.

So, INR 17 million effectively means around INR 170 crores, something like that, right?

Approximately.

Okay. Okay. So ideally, when we say 45%, 50% growth, so from INR 300 crores, even if I take 50% growth, we are reaching from INR 300 crores to INR 450 crores, right? So, that is an increase of INR 150 crores. But INR 170 crores is coming from this new facility only, right, new acquisition?

So definitely, you are good in math. No doubt with that. But I would say on INR 300 crores, we are still coming up with 40% to 50% because there would be organic growth as well as a part of India. So if you see on the consolidation mode, like inorganic as well as organic, probably would be in that range.

Okay. So this 40%, 50% is conservative, right? Because if you see organic growth as well plus the acquisition, so ideally, your growth profile would be much higher, right? I mean, historically, I found you guys to be very conservative, right? So, would that be the right assumption this 40%, 50% is a conservative number?

So, Deepakji, I think we don't know the geopolitical situation. Is that correct? I think we are very conservative and we are very transparent in numbers and commitment. If I say, okay, I'm going to do 70%, 80% compared to last year and I can't do it, then I don't want to make that mistake. So, we would like to go with conservative. That's the growth we are eyeing on, 40% to 50% because we are seeing the open order book. We are seeing the pipeline. And if we can get more, it's good for everybody. Is that correct? So, that's what -- we are looking for more. We are looking triple, but it may not be possible. Tomorrow, what happens in the White House, tomorrow, what happens in the world, we don't know. So at this point, with the current open order book, we are eyeing on 40% to 50% growth.

And we do expect organic growth as well, right? That's what you mentioned. Yes. So, I was asking you do expect the organic growth as well, right?

Yes, definitely.

Okay. So, my second question is on your RFQs. I mean, you mentioned around INR 900 crores to INR 950 crores of RFQs we have, right? So, what sort of conversion we are expecting and by when? And we have around INR 240 crores of inventory of money -- locked in inventory and receivables. So, how should one look at that? I mean it's a substantial number.

Sneh, it's a sales question for you.

So, we'll take second question first. Specific to inventory, as now we are more focused on ODM model. So, one of the prime reasons where you see that inventory numbers are increasing. It's not to that spike, but there is a moderate increase. And first is like to see, if you see our ODM business has grown to almost 2x as compared to the last year. And ODM business naturally requires higher inventory as we need to manage components of assemblies and product readiness at our end compared to pure EMS players. So if you see secondly, the strong growth visibility and customers' order pipeline for FY '27, that's also one of the important reasons that considering the current geopolitical issues, we are -- because we have to stock up certain critical components proactively to get avoid getting stuck in supply chain uncertainties. So, considering that, inventory is moderately high. So that's one part. Receivables, if you see like a couple of payments are -- if you see this is more of a 31st March result. So out of which, almost 40% -- 30%, 40% has already been received because some are 60 days, some are 75 days kind of a story. So, we have started receiving that payments and not worried because that conversion cycle keeps on rotating around.

We'll take the next question from [ Surendra Reddy ].

Congratulations on a good set of numbers. So, my first question is, like you mentioned in the last call, like we have received like order in the defense from a Miniratna. So, are we expecting more kind of orders for that segment and may I know the margins on that front?

Certainly, yes, because a couple of Navratna PSUs like we already started working with them. They are of low or mid-level kind of quantities, where like prototyping and pilot phases are already done. And now we are trying to see on how can we scale that project. So, we are working with different, different divisions of it and margins probably will be at Aimtron level when it comes to aerospace and defense. Somewhat, I would say, a bit on higher side as well. But when it comes to consolidation, like we generally eye on 15% kind of PAT margins that we typically look into.

Okay. Yes. Okay, sir. And the second question is like, is there any acquisitions going? Or like is there any under developments like under final stage kind of thing like just like ICS or something?

I think it's too early to say. The reason is current geopolitical situation is kind of a vulnerable. So, we look at it a couple more. But right now, we put on a hold right now. But ICS is called AIC now, but AIC is already up and running, and we start making money on that and start spending. So it's a good thing that -- so we are settled down now for that one. We put new ERP system. We put new index system. We put all this whatever requirement. But coming back to your questions, yes, we are looking a couple of places. One of the design-led companies we are looking in North America and in European market. So, we are just in a wait and watch kind of situation right now.

We'll take the next question from [ Sumit Chopra ].

Yes. I just need one clarification to the question of previous participant. So, any specific percentage you would like to guide or comment upon from the organic growth point of view because those numbers are not reconciling because like he was also quoting 40%, 50% growth with the [Technical Difficulty]. There would be any organic growth from Aimtron Electronics. So, I got you that you are guiding this percentage number from a conservative point of view. But anything -- any color you would like to throw from Aimtron without AIC, if you want to comment upon?

This is an EMS business. You look at it every single company. There's tons of orders and tons of materials that works in the pipeline for everybody. So considering that, we are seeing organically also 40% to 50% growth plus additional AIC. So, we gave you a range for INR 450 crores to INR 550 crores at the end of the year. So, you never know what's going to happen in this geopolitical situation. So again, you could have a INR 550 crores, then your math will be right, is it correct? If you go, let's see, if I say our next year will be around INR 550 crores to INR 600 crores, then everybody will be happy. But let's see tomorrow happens, something happened in Iran or Iraq or somewhere, then we're going to be screwed up again. So however, you do mathematics, our end goal is to get INR 1,000 crores journey. If you're going to do either with 40% to 50% growth or inorganic, that's our goal and that we are prepared for that. We cannot give you exact numbers or a very close number because we do not know the situation. So that is the reason. Yes, mathematic doesn't fit in my mind also. But right now, my goal is, let's see, if I give you INR 550 crores to INR 600 crores for end of next year, I think you'll be happy and your math will fit in that. But something happens, then you will be unhappy and I'll be unhappy. So that is the reason. Thank you.

Also, I think we need to clarify in the presentation, what we have given is CAGR, which is a 3- to 5-year trend that we are talking about and not just a 1-year growth number.

Thank you, Vinayji for correcting.

Sumit, do you have any further question?

Yes. Sir, my second question is regarding the mix of box build and PCBA. So as we can see in H2, this mix has improved from the H1, but the same is not visible in our EBITDA margin. So any specific reason for that?

It's more of a combination of that mode itself because that is getting more of a value addition chain. So, for instance, initially, with our existing customers, we were just doing PCB, just an example I'm giving, where from there, we shifted back to complete box build or complete system integration. So for instance, initially, the PCBA value would be INR 1,000, which has now increased that turnaround to INR 2,000 or INR 1,500. So, bottom line still remains the same to what we stood before or it has rather been on the positive side, where even it has helped us for top line as well. So it is a combination of top line as well as bottom line.

We'll take the next question from [ Anuj Hariya ].

Congratulations on a great set of numbers. Just following up on the previous participant's question, right? I mean, ideally, we've spoken that box build has a higher margin, higher set of margins compared to PCBA. So Sneh, what you just said doesn't make sense, right? I mean, if you're earning the same percentage of margins by expanding the order value, that just doesn't fit in the logical framework from what was commented earlier.

So if you see like along with that, there has been a change in order trajectory as well. So initially, if you see, it used to be like INR 5 crores, INR 10 crores kind of an activity for a single order, which trajectory has now changed to INR 25 crores to INR 40 crores to INR 50 crores kind of a single order. So, that is also a part of it, where it's a combination of all factors, not only just for PCBA to box build. Because if you see ODM model, then ODM model probably would have a higher margin as compared to box build as well. But if you see what we try to do is we try to combine all the factors and try to see on how do we maintain the PAT at Aimtron level and EBITDA around 20% and above.

Understood. So for the coming year that's FY '27, we expect the same split, that is 70% of box build and approximately 30% of PCBA? Or do you expect the percentage of box build and ODM to rise up to nearly 80%?

It is going to be more or less the same activity where box build is going to be around 65% to 70%, and PCBA is going to be in that 30% kind of a range itself.

I think I will add a little bit to Sneh here. Every company has to start with the PCBA, is it correct? You cannot have 100% box build directly. But what Aimtron is looking for, where is the complex PC board, where is a very high mix, high dollar. Those we forecast and those we target. So in our dictionary, we don't separate too much as a box build versus PCBA versus design. We look at first -- and our team is prepared, hey, if it fit in our range 13% to 15% or 20% to 24% EBITDA range. If not fit, then it doesn't matter for us is a box build or as a PCBA only, or it's a defense or it's an IoT or the telecom. So, we are a little different in EMS trend right now. We would like to be a role model to set up a new trend versus separating everything. Find a medical customer, they are doing X-ray imaging, find a medical customer, they are doing defibrillator, find a drone who is working as a surveillance. So, find those kind of customers or a Mercedes car or somebody Tesla or somebody find those customers, they have either a PC board or Caterpillar. They don't care if it's a PC board or it is just the metal part, still is the same margin. So that is something we are eyeing on, and that is something our DNA. I think, again, I'm not just discouraging you. But those are the thoughts we had -- a lot of question we had in 3 years, your machine -- how many -- per hour how many we can place, how many parts they place? It doesn't matter now. What is our EBITDA and bottom line? I think that's what we focus, and that is our DNA and that's our goal also. Thank you.

We'll take the next question from [ Sachin Gulati ].

Congratulations for a good set of numbers. So before asking question, I have 1 or 2 suggestions. One is if we can share this PPT a little bit in advance just so that we can come prepared and go through in advance. Second, till we migrate to main board, can we consider some quarterly business update?

Very good question. And first question will be -- me and Vinayji will work together and see next time. Our goal was to set a trend to give early results. So, my goal is to give every first -- last Monday of every year or every quarter, I would like to give the results. So, that is the reason we have to rush a little bit here and there. But we are setting the trend, and we will go from there. And then next time, we'll make sure we'll give you that in advance. So that is our goal, and we'll do it for sure. Next question yours is...

Yes, yes, please go ahead.

Yes. So quarterly, we are ready for the quarterly. I think this new auditor system, we will try to do a quarterly. But at least we would like to give you a quarterly update for sure. And we have only 3 quarters left. And then we have to go quarterly anyway. So, we are preparing our team to start quarterly. Let's see how it goes. Our goal is to give you quarterly, but maybe anyway, we have to learn that anyway. So, I think we are ready for that. We'll let you know, and we'll announce accordingly when the time comes.

Yes. And second is, our PCB was used in drone showcased in Republic Day parade. So, what is further progress update as far as this drone segment is concerned?

Sales question for Sneh?

So basically, we are regularly doing monthly shipments for specific to drone for domestic as well as international market. And down the line, we are even eyeing on how do we enter to box build space like, just an example, camera box build assembly and somewhat of that kind of payload and all that. So, that exploration is already going on. But as of now, PCBA, we are already supplying them on a regular basis. Wire harness, we have recently started encountering on that part too. And down the line, we are exploring on how can we do like payload systems, camera module assemblies and all. And apart from that, we are also exploring if we can do a complete box build system integration as well.

We'll take the next question from Rushin Shah.

Sir, can you please explain the difficulty level of designing a PC board? Like how difficult it is to design a PCB board? Is it very -- like the difficulty level is very easy that everyone can do or there are any levels to difficulties that we do some very high difficult task, which is reflected in our margins compared to other peers?

You want to take, Sneh, or I take?

Certainly, like it can be defined to different levels of difficulties, different stage of it. Just an example like video game, every layer or every stage you clear that comes, the criticality increases. So, we are into that niche market kind of an activity where just an example where someone is making just to say a PCB of fan or tubelight, that's too easy to do get things done. But to make this 1 kV, 2 kV, 3 kV UPS, you need an expertise for specific to power electronics, high-voltage kind of an activity where instrument cost itself is around INR 30 lakhs, INR 35 lakhs to test that equipment. And for battery load testing and all specific to UPS, I'm saying as of now, just on power electronics subject. If you see like we -- it took us 4 to 6 months just to develop one category of product. So that, too, because we have an expertise or else it takes years and years of time and still people are not able to get the products ready.

So Vinayji, in the interest of time, can you take a shorter question and shorter answer. Maybe one question from everybody. Only one question.

Yes. Let's finish this first, sir.

Sir, can I ask one last question?

We have covered. Last time also Rushin already asked 2 questions before also, Rushin, if you don't mind. Let have other people -- please take a listen and we'll take it.

Sure. We'll take the next question from [ Darsheel Shah ].

Only one question from participant, please.

Sorry, I couldn't go to the presentation properly. So, can you let me know how much was the consolidation that happened from the acquisition in the current financials?

$1.6 million, and it was specific for 2 months. Specific to AIC, I'm talking about.

We'll take the next question from [ Saumil Jain ].

Congrats on strong FY '26. One question on the order book and revenues. Telecom as a segment, which is, if I remember correctly, not a large contributor to revenues last year. By last year, I mean, FY '25. But in FY '26, it has been a significant contributor. And also as a part of the order book, it's a significant part of that. And similarly, power and data center segment is, again, a significant part of the order book. Can you talk about products here that ramp-up within these products? Are these led by single order, single customer, single products and with the potential scale that we can get with these products?

Sure. So if you see specific to like power segment and data centers, so power electronics, like there are a couple of customers in there, but of which one of the biggest contributor is S&P 500 company, Fortune 500 company, Ohio-based company, which are a leading player in data centers. So as of now, we are working with them on 1 kV, 2, 3 kV kind of 6 variants of it, where we do have a visibility of going up to 20 kV kind of an opportunity just from that one customer, Fortune 500 customer I'm talking about, which can be like kind of this year revenue size as well. So it can be that big opportunity. Again, not immediately, but down the line once we are going ahead in this journey. And specific to telecom, we are doing Wi-Fi 6, Wi-Fi 7 kind of an equipment. And apart from that, SFP and all that, fiber optics or optical transceivers and all that are also going to be part of it down the line. So it is going to be a combination of all factors and multiple orders. It's not only one customer contributing to all the complete sector.

We'll take the next question from [ Rohan ].

My question was with respect to Saumil just mentioned. On the data center, I think we received some INR 100 crores order. And just wanted to have some more light on that. What is the sort of product and what is the opportunity? What is the revenue that we foresee in the coming future?

So as I stated, we are making UPS for that. There are 6 variants, 3 subcategories, 1 kV, 2 kV, 3 kV with battery, without battery that are going to be used in data centers, EPC and commissioning as a backup. And as of now, it's a Fortune 500 company. And certainly, if you see can be as big as like last year's revenue as well. But again, it is not going to be immediate and one shot. It is going to be a long-term association.

We will first give a chance to participant who have had not a chance to ask any question. We'll take the next question from [ Aryan Bhatia ]. I think there's a problem in his line. We'll take the next question from [ Jigar Jani ].

First of all, congratulation on a great set of numbers once again. I hope it continues for a long time. Just one question, which is related to the acquisition. So could you -- if I heard it correctly, the ICS or AIC is doing 11% margins as of now on EBITDA level. And large part of your growth, say, next year will come from this business and the full consolidation of this business, and it will take some time for this to ramp up to stand-alone margins, which are about 20% odd. So, do you foresee some margin pressure on a near-term basis till this gets kind of coming down to our levels of 20% on a stand-alone basis? And just on a data keeping one, what is the execution time line for the order book that we have of about INR 570 crores? By when, can we see the execution of this?

Let me just give you a little heads up on this or an answer on this. So if you see, Jigar, after we acquired, we almost slashed a lot of expenses. We're using a lot of Indian -- our Indian talents over there in the back end. Let's say, we have -- they have 4 people in purchasing. Now we have only 1% in purchasing and 3 people over here. So from 11% to jump to already 15% right there. I should give a range, but just give you 11% to -- let's say, 11% to 12 double digit, we had some low double digit. So, now we are in mid-double digit now. Also, all the machines, all these efficiencies, they didn't have that much. Capacity-wise, they have only 55%. So, we are adding more that way, saving some overhead. So it's easy to get from lower double-digit to higher double digit by mid this year. And even the later this year, it will be very close to a lower double digit to higher double digits, let's say, 18% to 20%. So, that's our accomplishment will be. Even though, let's say, our purchasing power is going to be increased. Let's say, we used to buy only INR 200 crores worth of material purchase. Now, we are buying INR 300 crores now. So, that way is going to be also 2% to 3% saving right there. So, those are the things in acquisition. We are getting talent. We are getting a lot of other stuff. So, that is the reason from low double digit to higher double digit will be very easy to go. And it will be within a year or 2 as we promise it will be an Aimtron level margin.

Sir, his other question was on the execution time line of the current order book.

So, execution is always 12 to 18 months. Normally, we take order only 12 months. But some customers, let's say, well set of customer like ABB, Schneider, over there is Caterpillar. So, those customers, they are very stable and they want to buy some of the parts for longer. So, we give them 6 months extra. But otherwise, normally in the EMS industry, 12 months is the blanket order. So, current open order book is 12 to 16 months.

Sure. We'll take the next question from [ Shaurya Sajwani ].

Just first of all, congratulations on a fantastic set of numbers. I honestly just wanted to fundamentally understand the rationale behind the ICS acquisition, more on the product, the market size, the competitive positioning, what synergy it has with our Indian Aimtron? Is it different? Just fundamentally understand what value add is it providing to the company other than the top line and bottom line addition? Like what efficiencies we can achieve, et cetera?

So if you find some time, go to Aimtron Media page. Nirmal gave us about 15 minutes just for this. What we are getting out of this acquisition? He gave also 10 other comparison and why we selected ICS, we call AIC now. In the essence of time, I'm not going to go too much in depth, but you need to really need to see the video. And that video has every single answer of your questions about how -- what kind of mindset, of the ownership, what kind of system they have, why we select ICS and whole 9-ER we call in technical American language. So coming back to -- main is rugged electronics. Rugged electrics means a lot of is indoor work? Is it correct? We are doing indoor. Let's say, a home automation is an indoor, but we are doing outdoor, out to the sun over there. Let's say farming equipment. The equipment is kind of more moisture or rugged or cooling or powering. So, those are the expertise they have, plus they have some agritech IP. Also, they have -- that means we have now agritech IP. We have also -- agritech means agriculture technology. It's another subject. We don't have that much over here because we are doing a simple farming with tractor only. But if you look at that, all these tools over there is very, very advanced in agriculture also. So, those are the scenarios we had, and that's why we selected. But if you have sometimes, please visit Aimtron and we can give you more in-person demo what is beneficiary. And you are most welcome to visit our ICS or AIC facility over there when you are in State. So, most welcome to see that also. And next call, I will bring some videos also, so you can see that differentiation.

And due to shortage of time, we'll take the last question from [ Surendra Reddy ].

Like all come together, like organically, inorganically and SMT, like defense, everything, like what is the top line and bottom line we can expect for FY '27, please?

Sneh, sales question?

We already gave that update. Probably, we are eyeing on 40% to 50% CAGR kind of a rollover year-on-year. So, that's the strategy we are building, and that's the platform we are trying to build for both top line. And specific to bottom line, if you see that it is more of a 15% kind of a margin with a few percentage or a few basis points here and there, that is what we are eyeing on.

Sure, sir. Since that was the last question for the day, would you like to give any closing comments before we end this call?

I really appreciate this investors community. And sometimes we have to say a little different. So sorry, Shaurya or somebody I said no second question. But in the essence of time -- but our goal is to be transparent. Our goal is to bring American quality with Indian talent, and that is scalability we have. We do have a differentiator is we are American company, means American mindset company. And if you look at our building, if you look at our -- here or floor over there, you will see the differentiator. So, let's hope to get INR 1,000 crore journey as soon as possible, and that's our goal. With that, I really appreciate everybody's time, and thank you so much.

Thank you, sir. Thank you for joining on the call, and thank you to all the participants for joining on the call. This brings us to the end of today's conference call. Thank you.