Strong growth momentum offset by margin pressures from large deal ramp-up

33.8% YoY in reported INR; 25.2% CC implies ~8.6% currency tailwind

Delivered OPM 16.1%, EBITDA grew 6.1% sequentially to ₹267 Cr; 10 bps improvement stated

Operating expenses +5.8% QoQ, revenue +5.9% QoQ; EBIT +8.3%; margin leverage weak YoY

Stated in call; Services revenue +6.3% QoQ INR, +4.3% CC; mix improved

Margin flat QoQ at 16.1%; PAT up only 6.1% YoY vs 33.8% revenue growth; explicit hedging on 18% Q4 target

Q1 growth at 4.3% QoQ, 25.2% YoY CC; large deals won but in mobilization phase; claims acceleration but can't quantify quantum

Q4 call: 2 full vehicle programs in next 8-12 weeks. Q1 delivered: 1 (Japanese OEM) closed, additional business momentum entered Q2; confidence increased.

Q4 call: 18% EBITDA margin by Q4 FY27 implied. Q1 call: Uttam explicitly hedged 'rather than focusing on any specific margin milestone'; prioritizing growth over margins.

Q4 call alluded to investments; Q1 call detailed: several large programs in mobilization phase Q1, requiring talent, ramp-up, capability development upfront before revenues reach steady state.

Q1: $10.2M quarterly revenue, 38% YoY, targeting $100M in 2-3 years on Airbus inclusion, Tata Group investments, SE Asia demand tailwind.

Q1 new disclosure: navigating temporary headwinds as German OEM customers work through restructuring, cost optimization. Q2 wage increase will absorb associated cost.

Our confidence has only grown through deal signings and momentum. We do not see tapering in H2; we expect growth accelerating as we move through quarters.

EV investments tapering, balanced propulsion focus now. We're agnostic on propulsion. Tariff-driven pause ending, clarity returning, investments resuming. We've been on the right side.

Thesis: customers outsourcing complete products to firms like us. C-suite relationships (CEO, CTO, Head of Eng) drive full-vehicle decisions. Broad-based improvement in engineering, embedded software, digital—proof points of principles.

AI is force multiplier for productivity, not deflationary. We deliver China speed/cost at global quality. AI accelerates us further. We develop full vehicles in 18-24 months vs 36-48 months for Western OEMs. No pricing pressure.

Mix impact. Education business grew faster than higher-margin product business. Disproportionate growth mix change led to margin declines.

We closed additional business and taken momentum into Q2. Not at liberty to share customer names/sizes. Deal momentum continues to build, giving renewed confidence in guidance.

Scaling faster than auto. Airbus strategic outsourcing list secured, Tata Group investments, SE Asia air-travel demand, MRO/assembly infrastructure. 40% CAGR prior 4-5 yrs sustainable. $100M target in 2-3 yrs achievable.

Double-digit guidance maintained. Growth in Q2-Q4 will be driven by large-deal ramp-ups, customer readiness, infrastructure investments. Expect much greater growth in H2 than H1, but timing per quarter depends on factors mentioned.

Rather than focusing on specific margin milestone, we emphasize greater confidence in growth trajectory. Q2 profitability will continue to see QoQ growth, taking care of wage-increase impact. QoQ expansion would continue.

Yes, pleased with momentum at both BMW and VW. Es-Tec acquisition only completed Nov; cross-selling early-stage vs BMW. Due diligence with leadership gave us access/influence; BMW TechWorks standing affords doors and influence we're harvesting.

Milestone transaction. Working with Tenneco in engineering for 6 yrs; pandemic-forged relationship; Apollo restructuring accelerated. Engagement spans engineering, program mgmt, supply chain, digital. New business majority. Will discharge internal capacity; additional headcount needed = additional cost. Ramp Q2, scale through year.

2,000 engineers at BMW TechWorks (milestone crossed). Q1 share of profit: ₹9.5 Cr (43.5% QoQ growth). With deferred income ₹8.3 Cr, total contribution ₹17.8 Cr.

Won't discuss specific customers. Growth outside anchor accounts scaling/expanding faster than anchor growth—part of diversification. Automotive non-anchor grew 6.7% QoQ, 56% YoY—testament to teams, relationships, persistence during customer pause.

Full-vehicle work with VinFast/NIO exposed us to innovation/speed. Space volatile, demand inconsistent. Last 2 yrs shifted to traditional OEMs—demand stable, predictable, ability to move headcount across programs easier. Quality of revenue improved via this shift.

Non-anchor ~49% of services, ~36% of total auto. Growth broad-based across both, geographically balanced (Asia, Europe, North America). Tenneco (US) will contribute significantly. Japanese OEM (white space) strategic. Volvo (Scandinavia) scaling. Germany uptick despite challenges.

Don't break it out at sector level. Revenue mix today balanced across three major regions: Asia, Europe, North America.

Q1 delivered 25.2% YoY CC growth (double-digit met). Management states 'confidence has only grown' through deal closures and momentum. Expects acceleration H2 vs H1.

Q1 margin flat at 16.1% despite revenue growth +5.9% QoQ. Large-deal upfront investments, Tech Solutions mix headwind, Germany wage hikes noted as near-term headwinds.

Explicitly hedged in Q1 call. Uttam: 'Rather than focusing on specific margin milestone, we emphasize growth trajectory confidence.' Indicates 18% Q4 unlikely; QoQ progression vs absolute level now the focus.

Significant investments in talent, infrastructure, capability development for large deals ongoing; no capex number disclosed. Es-Tec acquisition already closed.

Multiple large programs (Tenneco $100M, Japanese OEM full vehicle, industrial equipment OEM, etc.) entered mobilization phase Q1. Ramp-up dependent on customer readiness, infrastructure investments, talent deployment. Parallel execution of multiple large programs creates operational risk.

Q1 margin flat at 16.1% despite 5.9% QoQ revenue growth. Large-deal upfront investments (talent, infrastructure, ramp-up) creating near-term margin dilution. Q2 annual wage increase will add cost impact. Technology Solutions -250 bps margin decline from unfavourable business mix (education outgrowing product).

While anchor account exposure in services reduced to 48.9% (down 150 bps QoQ), large-deal concentration is emerging. Tenneco ($100M), Japanese OEM full vehicle, and other large programs now key growth drivers. Failure to deliver on even one major program could derail FY27 growth targets.

Management called out 'temporary headwinds within parts of our Germany business as certain customers work through restructuring and cost optimization initiatives.' Germany is key growth market post-Es-Tec; VW and other German OEMs undergoing major restructuring (electrification delays, cost pressures). Prolonged headwinds could slow Germany ramp-up.

Q1 reported revenue growth 33.8% YoY includes ~8.6% currency tailwind (25.2% CC growth). Significant portion of revenue is export-oriented (USD, EUR). INR appreciation or dollar weakness could reverse FX benefit, materially reducing reported growth. Large deals (Tenneco USD, Japanese OEM JPY, European customers EUR) create ongoing FX exposure.

Technology Solutions segment (22% of total revenue) saw 250 bps margin decline Q1 due to education business outgrowing higher-margin product business. Education business saw +9.1% QoQ growth, product -2.6% QoQ (seasonality). Mix volatility could persist; no clear management focus on restoring product business margins.