Revenue surge masked by PAT stall; margin recovery timeline uncertain

Delivered 36.6% YoY; breakdown: 7% copper inflation, 30% from volume/content/premiumization/new launches

Q4 FY26: ₹450 Cr/quarter, Q1 FY27: maintained flat at ₹450 Cr/quarter = ₹1,800 Cr annualized

Broke even in Q4 FY26; Q1 margin -3% including copper lag impact; excluding lag, break-even level but not accretive

PAT growth 1.6% YoY while revenue 36.6% YoY; OPM 7.6% down ~700 bps from historical 15%+ due to unrecovered copper/wage costs

₹600 Cr employee cost; 35-40% increase in NCR region but no quantification of incremental impact given 30-40% wage rise

Q4 FY26: ₹450 Cr/qtr; Q1 FY27: maintained ₹450 Cr/qtr. No sequential improvement despite three plants operational; productivity/utilization still ramping.

Q4 FY26: 200-250 bps gross margin impact, 17% copper delta lag; Q1: 7% lag (quarterly reset happened), 6-month cohort still pending. Shows partial recovery path.

Prior calls did not flag wage inflation. Q1 saw 35-40% NCR wage hike (exceptional), said to be 'fully absorbed', but no incremental cost number vs. budget.

₹450 Cr run rate maintained from prior quarter; break-even already achieved. Some plants ramping stage, will contribute margins in 1-2 quarters.

It's a breakdown between EV and ICE vehicles, not a sub-category breakup we disclose.

Customer-specified components negotiated mutually. Wage hikes are 'constructive discussions ongoing'; we're patient, will reach agreements in mutual interest.

As on date, mandated increases fully reflected. Uncertain on other states. NCR had 35-40% increase.

7% copper inflation, remaining is volume, content increase, premiumization, new model launches, new customer ramp.

Lag still 3-6 months. We'd like to reduce it, but that's negotiation direction. Majority on 3-month basis, some on 6-month.

Increase is significant, 30-40% in NCR. Quantifying it, roughly, it's in the results. Largely QoQ increase is due to wage hikes.

Break-even in Q4 only if you remove copper lag. Margins yet to start accruing if you look at totality.

7% lag sitting in current results vs. 17% in prior quarter. Quarterly reset done, 6-month cohort pending recovery.

Fully geared for new architectures. Haven't seen de-contenting yet; content rise actual due to more features. Design partner for Japanese OEM future vehicles, no major change expected.

First endeavor is to recover all costs. Even when costs paid, sales-to-material ratio will differ. Medium to long-term, improved through new products/localization.

Yes, after time they merge into regular business and give same margin. ROCE > 40% target, committed.

Current year capex budgeted will be done from internal accruals.

3 plants simultaneous ramp complete; ₹450 Cr/qtr achieved. Fourth plant not mentioned. On track but flat QoQ growth rate.

Q1 shows 7% lag delta vs. 17% prior quarter (quarterly reset done). 6-month cohort pending Q2-Q3 reset. Wage hike pass-through timeline vague (ongoing discussions).

No new facility expansion mentioned; maintenance capex on existing + greenfield ramp-completion.

7% of revenue growth is copper inflation; 7% current lag vs. 17% prior quarter. Customers reset on 3-6 month cycles. If copper prices rise further, lag widens and margin compression sustains.

NCR region saw 35-40% wage hike (exceptional, unanticipated). Now fully absorbed in Q1 payroll (₹600 Cr). Pass-through to customers 'constructive discussions ongoing' with no committed timeline. Magnitude of cost burden vs. prior quarter unquantified.

Three greenfield plants at ₹450 Cr/qtr run rate; break-even achieved (ex-copper lag) but still negative ~3% with lag included. Depreciation load not yet offset by margin contribution. Ramp-up to 80-90% utilization and margin parity 1-2 quarters away.

Management deflected on customer concentration details. Pass-through negotiations suggest some customers have negotiation power (3-6 month lag structures). No disclosure of top-5 customer concentration or contract terms.

Zonal/48V architecture shift could simplify wiring harnesses, reducing content per vehicle. Global projects explored on harness simplification/automation. Management downplayed as 'long-term, few vehicles', but not evidenced empirically.