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Key Conference Call Highlights

* Strong overall performance: Consolidated revenue grew 29% YoY, and PAT increased 42% YoY in Q4FY26, whereas FY26 revenue rose 25% YoY and PAT increased 35% YoY

* Broad-based growth across segments (FY26): Auto (+33% PAT) and Farm (+13% PAT) drove overall performance, supported by strong volumes and margin expansion

* Key drivers of growth: Performance was led by a robust SUV and tractor demand, improved product mix, EV scale-up and strong execution

* Near-term headwinds remain: Commodity inflation, supply constraint, and geopolitical risk continue to pose challenges, although they are being actively managed

Auto Segment

* Auto volumes grew 19% YoY in Q4FY26, supported by strong demand and continued market share gains

* Core auto PBIT margin improved to 10.9% (+190 bps) in Q4FY26 and 10.4% in FY26, reflecting an expansion of 80 bps YoY

* The EV business turned PBIT-positive, delivering INR 2,450 Mn (~5% PAT margin) in Q4FY26 and INR 2,870 Mn for FY26. EV penetration improved to 9.6%, crossing 10%+ in the last two months of FY26

* Owing to strong demand, key models such as XUV 7XO (~9.5k/month) and Scorpio/Bolero range are witnessing capacity constraints, indicating strong demand

* ICE capacity is being ramped up to 60k/month, with additional +10k ICE and +4k EV capacity planned by FY28E

* The Nagpur greenfield plant is progressing as planned and is expected to be operational by CY28E

* Commodity cost pressures remain, but are being managed through calibrated pricing and cost control measures

* The management expects mid–high teens SUV growth in FY27E, supported by strong demand and capacity expansion

Farm Segment

* Tractor volumes grew 24% YoY in FY26, with a strong 36% YoY growth in Q4FY26

* The company achieved a record-high market share of 43.6% in FY26, reinforcing its leadership position

* Core tractor margin remained strong at ~20.4% in Q4FY26 and 20.8% in FY26

* Margin expansion was supported by operating leverage and disciplined cost management

* Farm machinery revenue grew 32% YoY in FY26, reflecting a strong traction in the segment

* The company is undertaking international restructuring by exiting underperforming subsidiaries to improve profitability in the next ~2 years

* Key product upgrades include the launch of Protech transmission and new tractor platform enhancements

* The company plans 19 launches and enhancements in FY27E, covering 7 new products and 12 upgrades

* Tractor margin is expected to remain within a ~18–21% range across cycles

* The management expects mid-single digit (~5%) industry growth in FY27E, contingent on monsoon conditions and a high base

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