New CMD Ravi Kota replaces D.K.

What is the status of the start of delivery of LCA Mark-1A to the Air Force? When can we expect the Air Force to accept the first lot? And what is the revenue growth and EBITDA margin guidance for FY '27?

We have 6 engines received from GE now, and all these aircraft are flying. There are few tests still undergoing, and we are going to discuss the same with the Air Force in the coming months. So we are hoping to resolve everything and stabilize by August or September. As far as revenue growth is concerned, we are hopeful that we'll be maintaining a double-digit growth in the current financial year '26-'27. And the EBITDA margin, we have always maintained around 30%, 31%, and it will be maintained.

What are our action plans in terms of mitigating execution risks in other programs like HTT-40 or LCH? And execution timelines for LCH and Sukhoi 12 Mark-1A aircraft?

Whatever risk mitigation, we are trying to identify more than one vendor for the supply of items, whether it is indigenous or from a foreign source. As far as Su-30 or the HTT-40 is concerned, all the purchase orders required are already placed with the vendors. There is a little bit of a difference between LCA and LCH. LCH is our own design product. HTT-40 is our own design product. And LCA, it's a joint production between ADA and HAL. So we are confident this helicopter, LCH, and HTT-40, is on the right track. LCH, hopefully, as per contract '27-'28, and we'll be able to deliver in time.

Quantify revenue growth — where exactly is this growth expected to come from? How much increase over INR9,200 crore manufacturing in '27?

When I said double digit -- see current year, if you see it is around 7% growth. So double-digit means you cannot expect a significant increase like 15% to 20%. Yes, it will be in the range of 10% to 12% minimum. Manufacturing 30%, if you see, if hopefully, our LCA program and HTT-40, if we are able to deliver, manufacturing sales will play a dominant role.

On Tejas Mark II, when do you expect the ground testing and prototype rollout? And on UCAVs, any update?

The assembly of these structures is going on for Tejas Mark II. So we are expecting in the last quarter of this year, for the rollout of Mark II. These are all joint designs between us and ADA. So we are expecting that by March, we should be able to roll out Mark II. We are doing a rotary UAV, which is -- the prototype is already built, and we are doing the ground test now. The CATS Warrior, which we did the ground run last year, it was successful. Now we are actually building the actual UAV. That we are expecting next year, not this year.

In our guidance, how many Mark-1A have we considered?

Actually, what is happening now, this time, we have received 6 engines. So GE is committing another 20 engines -- 15 to 20, he is telling, but not the exact number. So we are expecting around 20.

On ROH revenue — the growth seems to have come off compared to what we used to guide earlier. Any colour there?

Spares sales have actually come down by around INR500 crores to INR600 crores in the current financial year compared to the last financial year. But the repair and overhaul are almost at the same level because we have not added any new platform to our repair and overhaul activities. When the LCA will come up for repair and overhaul, maybe next year, and more of LCH, if it comes, then only it will be a significant increase in repair and overhaul we may have in the next financial year.

Margins — 30%, 31% — with manufacturing share increasing and supply chain disruptions, how do you plan to deliver similar margins? Is there a cost pass-through process with regard to commodities?

For '26-'27, already we have the inventory. The inventories are there, and only some components may come, for which the purchase order has already been placed 1 year back or 2 years back. So there will not be any cost increase as such for '26-'27. As the purchase orders have been placed for 83 LCA long back, our inventories have been purchased. And as far as the ERV exchange rate, this is already mitigated. It is factored into the contract. So we are not affected. So our cost of production will not increase. ERV clause is there in each and every contract, and even in the repair and overhaul contracts. Other input costs mean only the material. Labor escalation is already factored. And material escalation is already factored into the contract itself.

On the 12 Sukhoi-30 aircraft order, what is the expected execution timeline? When are deliveries likely to commence?

The Su-30 MKI, as per contract, starts from '27, '28, that is, in that year, there is only 1 aircraft due as per contract. And next year, we are going to complete all 11 In 28-29.

On Sukhoi-30 upgrade program, what is the likely timeline for contract signing and execution? Margin profile?

It's the Su-30 upgradation design program now. The design program will go on up to maybe 5 to 6 years. We are expecting the CCS approval for the current financial year. So the design will take probably 5 to 6 years. Then only the upgrade program will start, production will start after 5 to 6 years.

How many LCAs are you factoring into the 10% to 12% revenue growth in second half? And what percentage of your inventory unbilled revenue is for the LCA program now?

Since we are getting around 20 engines, we are planning to deliver around 20 LCA. I'm not telling that it may happen in this quarter, next quarter, or the last quarter. But this financial year, we are planning to deliver this many aircraft. Inventory for LCA is around INR7,500 crores. For non-delivery of LCA, our inventory is around INR8,100 crores, if you include raw material and WIP.

Quantify your export and development orders and sales for FY '26?

The export order right now, the export order book is around INR400 crores, and the development order book is around INR3,000 crores.

Have we completed all legacy ALH contracts including army contract for 24 members? And execution schedule for the 143 ALH?

The deliveries of ALH, we have no issues. We have delivered everything as per contract. As far as the new one is concerned, now we have augmented the facility in the current helicopter division. And outside, private vendors are also helping us in making the structure. So we are confident that ALH, because it is our program in a sense, designed by HAL, we will be ahead of schedule.

HTT-40 program — any supply chain issues with Honeywell engines? Execution strategy? Did you say FY27 or FY28 for delivery? How many units in FY27?

FY'27. The supply chain of Honeywell engines, it was there a few months back. Then we have continuous review, and now it is stabilized. So the engines will start going to come from next month. And we are planning around 20 plus this year to deliver. And every year, it continues because now we have 2 lines, one in Bangalore, another one in Nashik. So we should be able to ramp up faster and deliver.

Status of Uttam Radar integration? Earlier plan was to start from the 41st unit. Is that still intact?

Because this is controlled by the DRDO. So we are only a production agency. Once they give the production clearance, we will go to the DCPP partner and we'll buy it. So as of now, it is not coming in the 83 program. So in the 97 program, we are planning to integrate this.

If growth of manufacturing revenue is faster than ROH, could this impact 30%-31% EBITDA margin?

Current year, if you see our revenue growth is around 7%. As we grow, manufacturing sales will grow. Then definitely, the composition, what is there right now, is around 28% to 30% to 70%. So it will be in the range of 50% to 50%. There is no reduction in the repair and overhaul sales. Repair and overhaul sales will also grow. We don't see any stress on the manufacturing sales also in terms of profitability. And that 30% will be maintained.

GE engine supply schedule — what is the understanding now? Targeting 2 engines per month?

June, we are expecting 1 engine now. Then afterwards, it is going to August. From August, they have committed 2. And then by end of this year around 15 to 20. So that's why I told 20 LCA we will deliver this year.

Engine delivery to final IAF delivery — how much time?

Around 30 to 45 days.

What is the core reason for GE's supply variability? AL-31FP and RD-33 engine targets?

The supply chain issue is global. There were some casting issues that they had. Now they have found an alternative. Our target is around 32, 35 engines per annum of AL-31 FP. And RD-33, only 15 engines are left, and those 15 will be delivered in the current financial year, '26, '27. ALH, Army, the 10 numbers are left out, and then we are going to deliver those 10. There are the other 5, and Pawan Hans is 8.