Avalon Technologies Limited (AVALON) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Avalon Technologies Limited Q2 FY '26 Conference Call hosted by Axis Capital Limited. [Operator Instructions] I now hand the conference over to Mr. Deepak Agarwal from Axis Capital. Thank you. And over to you, sir.

Thank you, Uda. Good afternoon, everyone, and a warm welcome to the Q2 FY '26 earnings con call of Avalon Technologies. To take us through the results today, we have with us from the management, Mr. Kunhamed Bicha, Chairman and Managing Director; Mr. Bhaskar Srinivasan, President; Mr. Suresh VR, Chief Financial Officer; Mr. Shriram Vijayaraghavan, Chief Operating Officer; and Mr. Venky Venkatesh, Chief Sales Officer. Mr. Bicha will give us an overview of the business performance and will be followed up by Mr. Suresh's remark on the financial performance, post which we'll open the floor for Q&A. As we move forward, it is important to bear in mind that any forward-looking statements made during this call are subject to potential risks and uncertainties, both known and unknown. Now without any further delay, I hand over the floor to Mr. Bicha for his initial remarks as CMD. Thank you. And over to you, sir.

Thank you, Deepak. Ladies and gentlemen, on behalf of Avalon Technologies, we extend a very warm welcome to our Q2 FY '26 earnings call. I would like to begin by expressing our sincere gratitude to our investors for their continued trust and confidence in Avalon. Our growth journey would not have been possible without your steadfast support. Over the past few quarters, we have delivered consistent sequential growth, with every quarter building upon the previous one and meeting or exceeding our guidance. This steady upward trajectory reflects the strength of our diversified business model and a disciplined approach to execution. Our growth continues to be broad-based across verticals, geographies and capabilities. During H1 FY '26, the India business grew 44% and the U.S. business grew 52%. Our diversified customer profile is consistently supporting our growth. This consistency even in an evolving macro environment underlines Avalon's ability to deliver sustainable and profitable growth while maintaining financial prudence. Building on this foundation, profitability has improved, further strengthening ROCE and asset turns, supported by an expanding order book. On the topic of tariffs, which has been widely discussed across the industry, we would like to clarify that it is not limited to a simple 2 or 3 rate structure. We have effectively paid 50 unique tariff rates during the last 6 months. Our long-standing presence in the U.S., deep understanding of the geography and strong customer relationships have helped us maintain tariff recoveries of over 99% from our customers, underscoring the trust and partnership we share with them. With well-diversified growth, continued demand visibility and traction from our new programs, we remain confident in the outlook of our business. Accordingly, we are revising our full-year revenue growth guidance upwards to 28% to 30% from the earlier 23% to 25%. Let me now move to the key financial highlights of the first half of FY '26. As of September 30, 2025, our order book stood at INR 1,863 crores with an average execution period of 14 months, reflecting a 25.4% year-on-year increase. In addition, long-term contracts with execution timelines of 15 to 36 months stood at INR 1,168 crores. This growth has been well balanced and diversified across industry verticals and geographies. For H1 FY '26, revenues stood at INR 706 crore, representing a 48.7% growth over the same period last year. Our core expertise in box-build and system integration solutions continues to strengthen, now accounting for 53% of our total revenue. EBITDA for H1 FY '26 is at INR 68 crores, reflecting an increase of 98.5%. And PAT is at INR 39 crores, an increase of 158.3%. ROCE improved to 18.4% from 8.2% a year ago, while asset turns remained healthy at 8.7x, indicating continued efficiency in capital utilization. Net working capital is at 131 days as of September 2025, compared with 124 days as of March 2025, mainly due to temporary inventory levels to support upcoming production and growth. On a sequential Q1 to Q2 basis, net working capital improved by 11 days, driven by a 7 day improvement in receivables, 3 day improvement in inventory and a 1 day improvement in payables. We remain focused on improving working capital efficiency and expect to bring it within 120 to 130 days in the next few quarters. Gross margin stood at 34.9% for H1 FY '24, which remains at the higher end of our guided range of 33% to 35%. For Q2 FY '26, gross margin was at 34.3%. India manufacturing operations, which continue to serve both domestic and global customers, accounted for 81% of the total revenue in Q2 FY '26, delivering a healthy, profitable -- delivering a healthy profitability with an EBITDA margin of 14.1% and a PAT margin of 10.9%. Revenue from U.S. manufacturing operations contribute to the remaining 19%. The U.S. operations scaled up further. We expect operating leverage to support margin improvements in the later part of the year. Avalon's dual presence in U.S. and India offers a unique advantage. Our U.S. facility helps customers localize production and manage tariff exposure, while our India operations offer a cost-effective and scalable manufacturing base. This geographic flexibility positions Avalon well to support customers and adapt to changing trade dynamics. As tariff-related discussions in the U.S. and India continue, we are monitoring developments closely and will stay agile and measured in any strategic adjustments. We are also seeing increasing engagement from customers in multiple geographies for Made in India products and will share more updates in the coming quarters. Now, moving on to our key growth drivers and an update on major programs. We remain encouraged by the continued momentum across our three growth engines. One, existing business. This is driven by long product life cycles, mission-critical products and steady recurring revenues. The energy storage system program is progressing well, with production ramp up underway as planned. In the aerospace vertical, cabin sub-assemblies are currently under first article inspection and progressing in line with our plan for ramp up in the first half of the next calendar year. Despite India having the largest pending aircraft order book in the world, local manufacturing content is relatively small, but is growing rapidly. Our aerospace business is benefiting from this shift. H1 FY '26 revenue grew 59% over H1 FY '25. Two, new business wins. This is built on sustained effort over the past few years. With these programs now translating into fresh orders and production ramps across multiple verticals, dual-shore model and the new Chennai export facility has supported this scale up. Production for locomotive engine subsystems will begin in the second half of this year. Our railway business continues to gain momentum with new customer additions and expanded product lines. Notably H1 FY '26 rail revenue grew 58% over the same period last year. At the same time, we are making steady progress in advanced technology segment. As mentioned last quarter, our partnership with the leading global semiconductor company for box-build manufacturing is progressing well, with the volume ramp up expected in FY '27. Meanwhile, the railway Kavach system has completed testing and is on track for commercial production in the second part of next year. These programs strengthen our market position and extend our reach. Three, opportunities pipeline. We continue to see a diverse and expanding set of opportunities progressing towards finalization, with encouraging potential in both size and scope. During the quarter, we onboarded 3 large U.S.-based customers across industrial and defense verticals. We will share more details over the next few quarters as these programs progress from prototyping to production. Manufacturing will initially commence in the U.S., followed by a transition to India, leveraging our dual-presence advantage. With all 3 growth engines at different stages, we have continued to front-load investments in capabilities, manpower, inventory to stay ahead of the expected growth. On the infrastructure front, our export-focused Chennai plant has commenced production and is ramping up steadily. To meet rising domestic demand, we are progressing well to complete Phase 2 of our brownfield expansion in Chennai by the end of Q3 FY '26. These investments are aimed at ensuring readiness for the next phase of our growth, and we remain confident that operating leverage will begin to take effect in the later part of the year. Avalon stands on a strong foundation to capitalize on vast potential emerging across our end markets. With a healthy order book, expanding capabilities and a culture rooted in operational discipline, we are well positioned to deliver the sustained growth and long-term value for our shareholders. To summarize, Avalon has started FY26 on a strong note with a broad-based revenue growth, a large order book, improved operational metrics and a healthy capital efficiency. Our diversified business model, dual-shore presence and expanding customer base provides both visibility and resilience. We are ramping up new projects across multiple industries, and our entry into the semiconductor equipment space marks a key step towards a high-potential advanced technology segment. With a stronger growth outlook and disciplined execution, Avalon is well positioned to sustain its momentum and remain focused on building long-term profitable growth rather than short-term gains. With this, I will hand over to our CFO, Suresh Veerappan, for a detailed overview of our financial performance.

Thank you, KB, and good afternoon, everyone. Thank you for joining the call today. During Q2 FY '26, our revenues were INR 382 crores, reflecting a 39% year-over-year increase from INR 275 crores in Q2 FY '25, and an 18% sequential growth from INR 323 crores in Q1 FY '26. For the first half of FY '26, revenue stood at INR 706 crores compared to INR 474 crores in H1 FY '25, representing a year-on-year growth of 49%. The growth was well diversified across verticals, geographies and customers, driven by steady execution and strong traction in both our India and U.S. operations. It also marks our fifth consecutive quarter of sequentially good performance, underscoring the consistency of execution across business segments. Over the past few quarters, our growth has remained broad-based and disciplined, supported by customer diversification and focused operational delivery. This sustained momentum, together with stronger demand visibility and a healthy order pipeline, positions us to raise our FY '26 revenue growth guidance to 28% to 30% from the earlier range of 23% to 25%. Gross margin of Q2 FY '26 was INR 131 crores, representing a margin of 34.3%. For the first half of FY '26, gross margin stood at INR 246 crores with a margin of 34.9%, which is at the upper end of our guided range of 33% to 35%. This reflects a year-on-year growth of 47%. EBITDA for Q2 FY '26 was INR 39 crores, a 28% increase from INR 30 crores in Q2 FY '25 at a margin of 10.1%. For the first half of FY '26, EBITDA stood at INR 68 crores, reflecting a year-on-year growth of 98.5%. PAT for Q2 rose to INR 25 crores, a 42.9% year-on-year increase from INR 17 crores in Q2 FY '25. We continue to invest in talent, capacity and inventory to support upcoming growth in new programs. These initiatives strengthen our foundation for long-term growth and are expected to enhance operating efficiency as volumes ramp up in the second half of the year, with this impact being more visible towards the end of FY '26 and carrying into FY '27. Moving on to the balance sheet. Net working capital days improved by 11 days from 142 days in June 2025 to 131 days in September 2025. Net inventory days improved by 3 days from 104 to 101. Trade receivable days improved by 7 days from 87 to 80. Trade payable days improved by 1 day, increasing from 49 to 50. As of September 30, 2025, total outstanding debt stood at INR 128.92 crores with cash equivalents and investments of INR 68.36 crores, resulting in a net debt position of INR 60.56 crores. CapEx for Q2 FY '26 and H1 FY '26 was INR 14.8 crores and INR 24.4 crores, respectively. For the CapEx light model, asset turns remain strong at 8.7x and return on capital employed stood at 18.4%. Our growth approach is built on a balanced mix of steady core revenues, new program ramp-ups and a healthy pipeline of prospects. While we continue to monitor global geopolitical developments, the structural EMS growth story remains intact and continues to strengthen. With a resilient balance sheet, scalable operations and strong customer trust, Avalon is well positioned to capture emerging opportunities and deliver sustained long-term value to all stakeholders. To summarize, Q2 reflects continued progress across all operating and financial metrics. Our priorities remain consistent, driving profitable growth, strengthening balance sheet efficiency and deepening customer partnerships. As we look ahead, we remain focused on sustaining profitable growth through disciplined execution and operational efficiency. Thank you.

Can we open the floor for Q&A?

Yes, please.

[Operator Instructions] The first question is from the line of Tanay Shah from DAM Capital

Congratulations on a good set of numbers. Sir, my first question is on the U.S. operations, right. Sir, if you could give any sort of update on how the offtake is improving despite the tariff implications. I mean, you did mention that 99% has been recovered in terms of tariffs. But going forward, how do we expect the U.S. clients sort of accept the tariff implications? And do we expect the manufacturing per se to improve from the current 20% in U.S., which would thereby then sort of have any sort of impact on margins?

That's a good question. So, we are seeing a lot of opportunities now with the well-sourcing model we have, where they can start in the U.S. and when the tariffs settle down the longer term, the larger customers are taking that view. Let us start in the U.S. and transfer to India when the tariff settles down because it's difficult today for customers to judge what is the tariff rate, where, but they always want to come to India. And we are offering, I would say, initial stopover in the U.S. before they transfer, so they have consistency on revenues. And saying that some of our existing customers who always wanted to make in the U.S. are ramping up, especially our battery storage, energy storage systems customer, which we've been working for the last 4 years. We are seeing a substantial ramp for them, which has already started and into the next 12 months. So, we're very positive because we have a solution for customers to come to India because otherwise it is very difficult for customers to see how can I come to India with a 50% tariff, right? So, this dual model helps us a great deal to make that happen.

Sir, with that happening, we don't expect any interim impact on our margins to that extent?

So if you look at our gross margins, we have to study what on the margin front, I would say, we are investing into the future as you have seen some of these larger ticket customers cutting in. We have a few more in the next few quarters. So, we are getting the team ready, especially in India, to get ready for the ramp.

Understood, sir. And sir, my second question would be on our domestic operations. Obviously, we've seen very strong growth over the last year in the domestic market. So if you could sort of understand -- if you could help us understand any new clients that are sort of ramping up and under what segments would that be and potentially if you could even list down the opportunities for our railway business? You did mention that it grew very sharp at around 57% in the first half. So apart from the Kavach opportunities should come in next year, any other product categories which are also scaling up well out there? Yes, that's it.

Yes. I'll answer the last part of your question first. The railway opportunity is real and it's growing. We're growing. And last year also we grew substantially. This year, we are seeing the first half growing not only with our existing customers, new customers, as well as new products from existing customers. So, we will continue to see this growth in the foreseeable future as India expands and as India grows in this segment. Apart from that, the next 3 large customers, which we are kicking off are all India-based and that gives us its -- the timing of it is perfect. So, I think our goal is always to be 50-50, 50% exports and 50% India. And today in our exports, we have started to see a lot of activity and we'll start -- the numbers will reflect in the future. Apart from U.S., the other geographies are slowly kicking in. Did I answer your question, Tanay, or did I miss something?

No, sir, that did help. Just wanted to understand any particular segments in which we're seeing this ramp up for the domestic operations apart from rail?

So it's mostly mobility and industrial.

The next question is from the line of Sameet Sinha from Macquarie.

Question regarding gross margins. So, sequentially, gross margins decreased despite the fact that the revenues increased nicely. And I think you kind of hinted at it that you're investing into it. But if you can break it down between India and U.S. operations, seems like India operations, your gross margins improved sequentially, while in the U.S. operations it went down. So, can you explain that dynamic? Because I thought for some reason that all the investments were happening in India, but seeing that maybe there's something in the U.S. as well.

You're talking about gross margin? I believe they have not changed much. Our range has always been between 33% and 35%. And we are well within on the higher side of the range. A few quarters, we may have 36%, okay, or 37% in certain times, but our guidance always been between 33% and 35%. And on H1, we are at 34.9% and Q2 we are at 34.3%. So it could be because of product mix and there is no change in gross margin guidance there.

Got it. Okay. And in terms of these -- the new business that you're seeing, kind of a broader question. So, these 3 large customers in India, can you talk about which verticals, which sectors they're coming from? And can you also kind of comment on the average ASP and order size of these new customers? Is it larger average? Any sort of context would be appreciated?

I would just say power and industrials are the 2 key areas, and we will start seeing activity maybe late part of this quarter or next quarter and substantial, there could be a top 10 in our top 10 customers by the end of this year or so. Did I answer your question, Sameet?

Yes. Absolutely.

And just to add the transition customers coming to U.S. first and then to India, one is in the power sector from Europe coming to U.S. first and then moving to India. Number 2 is industrial customer. That's again starting in the U.S. and third is a defense customer.

[Operator Instructions] The next question is from the line of Praveen Sahay from PL Capital.

Sir, my question is related to the guidance of 28% to 30% of our revenue guidance for this year. That gives me a second half growth to be in the range of around 17-odd percent. So, why in the back-to-back quarters in the past, we had seen a very good growth for the last 4 quarters at least. Now, you are saying about the lower growth for the second half with your guidance. Why is it so?

Yes. As you know, Praveen, I'm not sure we are conservative. So the reasons -- there is growth. There's multi-quarter growth. We look at -- how we look at ourselves and kind of weigh ourselves, can we double in 3 years which we are doing. And then can we further double 3 years from '27, okay? That's been our motto rather than looking at quarter-to-quarter. And as you have seen in last 5 quarters, we have delivered more than 40% growth. And we intend to continue, okay? But because of when the projects will cut in, whether it will be in December of this year or March of next year, so that's the question mark. The business is there, and we intend to exceed and excel with the expectations set here. So whatever happens, we continue with [indiscernible]

Okay. Got it. Second question related to the -- as you had mentioned about the ramping of your energy storage or battery storage clients in the U.S. do we see the contribution of the clean energy in your business to go up from here?

From year-to-year, it has grown 34%, okay? So relative to others are growing a little bit faster because some of our -- like industrial year-to-year grew 73%. Communication grew 68%. Mobility grew 59%. So related to that, it's a little bit slower. But on a year-to-year basis, it is growing at a healthy rate of 34%.

The growth is very well diversified across verticals. So, I think there is going to pick up in clean energy also, and we have already started seeing that happening in this quarter.

So, we will maintain the contribution at least at what level they are in right now?

Absolutely. And our intention always to have is between 20% and 25%. So, we are diversified.

And the next question is related to the domestic and the U.S. mix. As you had been answering to the last participant, you said 50-50, you want to be at U.S. and India label business to be. But right now, it's skewed towards in the U.S. Around 60% is the U.S. So, do we see a U.S. business growth to outperform in the coming quarter and year?

Yes. So, both sides are growing, but we feel that it's a quarter-to-quarter thing, 3 or 4 points move. I think last quarter, it was 43% India. And this year, this quarter, it is 40%. But intention is to get to 50%. I think we should get there sooner than we expect, okay? We're saying that U.S. is also growing, okay? When we say U.S., it's not U.S. manufacturing when we make products for U.S. and India. So, we categorize that also. So the 81% includes some of the manufacturing we do for U.S. and India.

The next question is from the line of Vipraw Srivastava from PhillipCapital

Last year for FY '25, our H2 was better than H1. That's why we saw inventory buildup happening in quarter 2. This year, based on the guidance, if you do the back calculation, we'll see H2 more or less being in line with H1, slight -- maybe slight upside. Then why is the case that the inventory days is so high and the cash from operation is negative?

Like what KB had mentioned earlier, some of the new programs are ramping up in Q3 and Q4. So yes, the inventory days as of June '25 was 104 and right now, it is 101. But if you look back at March '25, it was 86. But we have to upfront our investments in people and in inventory before a new large program starts in. We expect that to start some of it in Q3, some of it in Q4. What we had given as a guidance on overall net working capital for the end of the year is 120 to 130 days. I think with the way how we are looking forward the ramp-up, we are confident of getting to that range of 120 to 130 by the end of the year.

Noted, sir. And sir, for full year, the cash flow from operations will be positive?

Definitely, the increase in revenue can help in operating leverage, creating more profits from that perspective. That, in combination of reduction in net working capital can help in cash flow from operations, but let us wait for the next 1, 2 quarters and then we will see from there. We have had positive cash flow from operations in the previous 2 years. The second half did help even in the last 2 years. So, yes.

Lastly, sir, on the operating leverage part, given that based on the current guidance, Q3 and Q4 will be relatively lesser than Q2. So, do you see some margin pressure happening because of operating deleverage in Q3 and Q4?

Let's put it this way. You see the continued growth profile move, okay? It is when and how it cuts in, okay? So what you've seen in the last 5 quarters, you will see it going forward. The timing of it when each program kicks in is going to be the question, whether it's going to be this quarter or next quarter. It's either going to be December or January because these delays are not controlled by us, it's controlled by the customer. But we are very confident that we'll continue our growth profile what we had in the last 5 quarters as well as the 3-year doubling, which we have committed when we went IPO that from '24 to '27, we'll double. I think that holds true even today.

Most of our expenses below the gross margin line are semi-fixed or fixed in nature. And in the past also for us, operating leverage has played out. Right now, like what we have been highlighting in the last 6 months and even earlier in the call, we are upfronting some investments in people and inventory right now for the new programs that are kicking up in the second half. So yes, it is on the positive side of operating leverage is what we are also expecting.

Got it. And sir, lastly from my end, in the first half, roughly 81% of manufacturing has happened in India based on your presentation, 19% has happened in U.S. Where do you see this number heading for the remaining 2 quarters? Do you see this heading upwards or remaining flattish?

So, we've always guided to 80-20. And a few quarters, there will be a couple of points up or down either way. But we still, in the next -- for the next 2 quarters, we see 80-20.

Noted, sir. And this will have no impact on margins, right, increased U.S. manufacturing?

I don't believe. I think it will get better as U.S. numbers improve because our top line is increasing. So with that, the U.S. side also will increase.

[Operator Instructions] The next question is from the line of Chirag from Keynote Capital.

Congratulations for a great set of numbers, sir. Sir, my first question is, post the implication of tariffs, I just wanted to understand one thing that if someone is buying from a U.S. facility, someone is buying from an Indian facility, what is the cost differential as a client one is getting?

Okay. That's an interesting question. So, there's not a flat increase by percentage. It all depends on the labor content. So sometimes even from a $4 per hour in India to $35 per hour in U.S. is still -- is cheaper to make in India, if you have a 5-hour labor content, okay? But if you have an automated project, it may not be as simple as that. So it varies by project and complexity. Some of the products, we have 200, 300 hours of labor in each part since we make complex part. So it's difficult to move back and forth. And these are $50 billion, $60 billion companies. They are not going to change because like the textile industry or the leather industry because something is cheaper, something is higher because you've got 25% tariffs average across any country you go to, okay, in the cost-effective countries. So it's not going to change. We see like the consumer industry where it moves very quickly. You've seen it in numbers. Customers who are Make in India continue to Make in India. And these products have a 10- to 15-year life cycle. So just because of a 2- or 3-quarter change, they're not going to make the switch. And it takes a year, 1.5 years for them to make a switch even if they decide something. So, they rather wait it out and pay the -- as you see, most of our customers have paid on the tariffs.

Fair enough, sir. Sir, I just wanted clarification on one thing. Our earlier strategy was similar to what we are pining right now, where initial manufacturing for U.S. clients were done in U.S. and to showcase them some benefits of shifting it to the India facility where everything what we used to manufacture in U.S. is similar that we were able to do in India. We were able to shift certain clients from U.S. to India, which benefited Avalon from a perspective that labor cost in India was comparatively cheaper than U.S. led to a significant margin improvement on EBITDA levels. So would it be correct for me to understand when we are getting new orders or certain clients related to battery electricity storage are initially focusing on U.S.? Would be expecting to move to India when they have showcased the kind of quality of product we can deliver?

You are right and wrong in that notion. So if you look at us 3, 4 years back, we started in U.S., then brought in India for some time. But around 1.5 years back, if I recall the timing right, we started bringing customers directly to India, okay, so to kind of cost effectively reduce our overhead in the U.S. So, that was starting to work, and it was working till this tariff situation came. So, we are back to the old model where, okay, let's start building there at a higher cost. And then when it moves to India, of course, we have to deal with the labor piece. So the customers are looking at it on the longer-term perspective, okay? If you are going to tell a customer today -- a new customer saying that I'll come to India, I'll make it cheaper, faster, better, but you've got to pay 50% tariffs. That's not going to work. So, what we're saying is that let's start in the U.S. and then in 6 months, these are substantially large customers. You have an opportunity to move to India, and you will not waste the time in transferring the technology. So, that is what is working in our favor today, having the 2-plan strategy in 2 countries.

Fair enough, sir. Means this problematic situation is actually helping us to garner more clients compared to the peers...

Absolutely. We have -- like I said, we have seen more activity now than before.

Right, right. Sir, over the last 2, 3 years' time frame, where our revenue used to be around INR 200 crores, INR 220 crores annually, we have done a phenomenal job to almost shift it to INR 400 crores roughly rate. One thing I wanted to actually understand. The earlier order inflow rate on a monthly basis in last 5 to 7 quarters used to be in the range of INR 130-odd crores on monthly levels and about INR 1,600 crores to INR 1,700 crores -- about INR 1,500 crores to INR 1,600 crores on a quarterly level -- on an annualized level. But today also, I'm able to see that on a quarterly basis, our order inflow run rate is still around INR 460 crores, INR 470 crores which is monthly about INR 150 crores roughly. And our revenue has jumped from INR 200 crores to INR 400 crores. So, I'm able to -- is there any hindrance that you are facing to garner more orders? Or is there any capacity constraint that we have today, which is expected to unlock and we are expecting that order book inflow on a quarterly basis is expected to jump from current levels to INR 550 crores, INR 600 crores on a quarter basis?

So the way you need to look at it is, see, what comes as physical orders and not contracts is INR 1,863 crores for the next 14 months, okay? I've got another set of orders and contracts, which is from 14 months to 36 months. So the total is around INR 3,031 crores. And we've got orders past the 3 years. Some contracts are for 15 years. okay? Those we don't count. We don't -- we're just looking at the near term. So if you are just chasing the order book, what can be shipped in the next 12 months is what we look at, okay? So we are not taking the -- our usual contracts are anywhere from 5 years to, in some cases, 15 years in the aero industry. But we're not counting the last part of it. Did I answer your question, Chirag?

Got it. So just to clarify one, the long-term contracts, which is more than 14 months to 3 years are separate set of numbers compared to the INR 1,800 crores, INR 1,900 crores order book that we have today?

Absolutely, yes. So we have INR 3,000 crores plus, and we've got more after that.

Got it. Fair enough, sir. And sir, one thing. I'm so sorry...