Amara Raja Energy & Mobility Ltd (NSE: ARE&M) Q1 2026 Earnings Call dated Aug. 18, 2025
Corporate Participants:
Unidentified Speaker
Delli Babu Y — Chief Financial Officer
Analysts:
Unidentified Participant
Aniket Mhatre — Analyst
Raghunandhan N. L. — Analyst
Kapil Singh — Analyst
Mukesh Saraf — Analyst
Samraat Jadhav — Analyst
Girish Kumar — Analyst
Vibhav Zutshi — Analyst
Shubham Batra — Analyst
Saurabh Ved — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Amara Raja Q1FY26 earnings conference call hosted by Motilal Oswal Financial Services Limited as a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniket Mahadre from Motilal Oswal Financial Services Ltd.
Thank you. And over to you sir.
Aniket Mhatre — Analyst
Thank you Udha. Good evening everyone. Welcome to the post results conference caller for Amaraja. At the outset I would like to thank the Amaraja management for giving us an opportunity to hold this call from the management team. We have with us Mr. Vai Delhi Bapu, Chief Financial Officer of the company. I would now like to hand over the call to Mr. Delhi Bapu for his opening comments on the Company’s Q1 performance post which we’ll begin the Q and A session. Over to you sir.
Delli Babu Y — Chief Financial Officer
A very good afternoon to everyone who has logged in. Thanks for your time. During the Q1 of FY26 the consolidated revenue stood at 3,004, not 1 crores. That’s a growth of about 4% over the previous year. Whereas on a quarter on quarter the revenue growth is about 11%, about 96%. 95 to 96% of the revenue comes from the lead acid batteries and the rest is coming from the new energy batteries and chargers. The lead acid revenue per SE was around 3270 crores. And the growth of lead acid battery business on an overall basis is about on a y basis about 4.5%. And during the current quarter the OEM demand was robust and also along with the aftermarket growth growth, the four wheeler as well as two wheeler segments, the.
Four wheeler domestic aftermarket volumes growth was. Around 5% on a by basis. Whereas OEMs have grown about 12 to 13% during the current quarter. And export volumes is where we have. A challenge during the current quarter where there is a degrowth compared to the previous year by about 7 to 8%. And two wheeler volumes across all segments. Have grown about 5 to 6% over the previous year. And in the other application side the tubular batteries have shown substantial quarter on quarter growth. But whereas when it comes to VIV. Basis going to a weaker season the growth was limited to about 3 to 4% and the recently launched lubes product has continued its growth momentum and we have seen our year on year volumes getting doubled. As far as the lube sales is concerned. In the industrial segment, the telecom lead. Acid batteries volumes have degrown by close to 30% over the previous whereas we. Have witnessed a very strong growth on. The industrial UPS batteries at about 15% over the previous year. While the lead acid batteries had a challenge during the current quarter, the lithium. Pack volumes have all registered a substantial growth.
For the first time in a quarterly. Basis we have crossed almost 100 megawatt of sale of lithium packs to the. Telecom sector resulting in the VORA market share in telecom being protected over and. Above 15% that we have been having even in the lead asset side. So as far as the overall new energy business is concerned the revenue was. About 122 crores where it was aided. By a very strong growth on the. Storage side volumes particularly to telecom sector. Whereas the EV side of the business. Has slowed down during the current quarter owing to a lower demand from the OEMs that we are supplying to both on the packs as well as the charger side of it and we expect this demand to revise in the coming. Quarters and during the current quarter into the subsidiary. So far we have infused about another. 350 crores into the Amaraja Advanced Cell Technologies, the new energy business subsidiary. With that the overall investment into this. Subsidiary has reached to about 1200 crores.
On a cumulative basis the margins of. The current quarter were subdued owing to. The material cost challeng that what we have seen even in the previous year while on standalone basis they are at about 11.5%. If I adjust it for the lithium revenues that come into the standalone financials, the EBITDA margin is around 11.7% or. So and these margins are negatively again. Affected by, as I said, the material cost as well as some of the cost increases on the power and employee cost as well as some revised provisioning that we are doing for our warranty claims. The trading revenue also because our tubular. Factory has just commenced its production sometime in the month of July, so some of the first quarter requirement was still met with the trading piece. Thereby the trading revenue mix also has increased by almost 4% in Q1 on a basis what used to be a. 19% in last year, the trading revenue.
Today in this current quarter is about 23%. That also kind of have shown a bit of a dilution on the EBITDA margin. So now that the manufacturing activity is commenced in the coming quarters, I think. We Will reduce the trading of home UPS tubular batteries and then replace them with our manufactured tubular batteries. As far as CAPEX is concerned I. Think we continue to have to project about 1200-1300 crores of capex for the current fiscal substantial part of it, about 800 to 900 crores of it will be spent on the new energy projects that are currently running and for completing them and the rest will be spent on the lead acid battery side. That’s a quick brief of the Q1 results. Now I would request any questions from your side we’re happy to clarify.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Raghunandan from Nuvama Research. Please go ahead.
Raghunandhan N. L.
Thank you sir for the opportunity. Sir, firstly on the volume side you indicated that export has seen a degrowth. How do you see the outlook forward there?
Delli Babu Y
Yeah, I think see some of the additional volumes that we are expected to. Get from some of the far off markets has kind of weakened during the current quarter. We hope this revised scenario will settle down in the next one or two quarters and then we will again be back on a growth momentum. The regular markets, APAC and Middle east are also seeing some bit of competitive. Intensity going to all these tariff challenges that we are seeing and we hope to again increase the volume momentum by expanding into other markets and then revive this growth momentum in the coming quarters. I think we will have a challenge. At least for next one or two quarters and after that we expect that some of the market penetration activities that we are doing now should result in volume growth in the coming quarters.
Raghunandhan N. L.
Thank you sir. On the industrial side Telecom was 30% decline lead asset then UPS was 15% growth. How much was the growth on the total industrial side? Sir.
Delli Babu Y
With this it’s kind of negated. There is no growth on the overall volumes. In fact if you look at 30% degrowth and 15% growth in ups it will result in a degrowth of industrial lead acid volumes by about 3 to 4%.
Raghunandhan N. L.
Got it sir. And for home inverter how much has it beam on bio Y basis?
Delli Babu Y
Yeah, it was a 3 to 4%. Kind of an increase.
Raghunandhan N. L.
Increase. Okay, got it. And for my second question was on the margin Side the traded mix has increased and this you said will normalize in the coming quarter and sec within margin there is also some under recovery because of the increase in input costs like antimony. So just wanted to understand how much is the under recovery, whether more price hikes will be taken and whether traded mix will also normalize in coming quarter. So all that should lead to margin expansion ahead.
Delli Babu Y
See as far as antimony is concerned, I think it is now getting stabilized at a given level. As you know we have taken some pricing in Q4 and thereaf. The competitive. Scenario doesn’t permit us to think about a further price increase immediately. But I’m sure if it persists at this level some pricing action will be taken or there will be some improvement on the material side that we can consider. But on the other side on the expenses. Yes I am hoping in the coming quarters some of the power related issues once they get settled, I think we should see some benefit that can accrue to us in the coming quarters. While I am unable to give you a particular number on what could be. The margin improvement that I am seeing. Maybe Q1 and Q4 of last year are the worst that we have seen and it can only improve from here slowly but surely.
Raghunandhan N. L.
Thank you sir. And lastly on the lithium cell project update. So we will be investing about last year was 850 crore. Another 8900 crore is the investment this year and FY27 when the facilities are likely to be operational by FY27 how much will be the total investment and the facility which will come up, Will it be both NMC and lfp and what capacity will it be?
Delli Babu Y
Yeah, as I mentioned earlier the first capacity that will come is only of. NMC where we are going to make the 21700 cell. The initial capacity will be 1 GWh. Thereafter we will see if it needs to be expanded to 2 GWh or. Should we go with an alternative LFE. Cylindrical cell of 32,140 form factor. So that is a decision that we. Are able to take on. So for completing these three projects I think we will be needing apart from what we have invest so far we. Have invested 1200 crores into the subsidiary. Which is not only used for capex. But also used for some of the working capital requirements. So we should be required to infuse another 1200 crores for us to complete. The research lab customer qualification plant as well as the first gigafactory with about 1 gigawatt hour capacity.
Raghunandhan N. L.
Got it sir. Any update on the customer, sir, we had added earlier few customers like ATAR and all. Any further updates?
Delli Babu Y
No, no. I think there are discussions both happening. At the low voltage as well as high voltage side. So there is nothing that I can disclose at this point of time.
Raghunandhan N. L.
Thank you very much sir. I’ll fall back to the queue.
operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question is from the line of Kapil Singh from Nomura. Please go ahead.
Kapil Singh
Yeah. Hi, good evening sir. I noticed that your four wheeler OEM growth is quite strong during the quarter. Could you give some color because the industry has not grown during the quarter. So have we gained some market share from new customers that we have added here?
Delli Babu Y
No, see, as you know see, it all depends on the platform that we are participating and where we are getting a bit of a higher volume in certain OEMs. The number of customers that we are operating has not changed anything during the current quarter. But only the some of the allocation that we have received on some of. The platforms that we are participating has increased. So beyond that there is no specific reason as such.
Kapil Singh
Okay. And sir, just to refresh, like in terms of the unorganized market, now would you have an estimate like what percentage of the market is unorganized in the aftermarket in four wheeler and two wheeler.
Delli Babu Y
It still remains around 10 to 15% range depending on which product segment that we are talking about. Both in four wheeler and two wheeler. I think it is around that 15% mark.
Kapil Singh
Okay, and has it been coming down?
Delli Babu Y
I think it is being at that level of middle double digits for some time now. I think I am not seeing sharper reduction out of it still. I think at least for the last. Three years, that I am seeing some quarters. Our estimate suggests that some quarter it. Goes down to maybe lower double digits. And then again some quarters, like where there is Ericsha demand or tubular demand picks up, then suddenly it comes back also. So it is still at around that number.
Kapil Singh
So these are smaller regional players or these are like players who are unorganized players. How would you classify them?
Delli Babu Y
Both put together. Barring the four, five large players, rest of them who are very, very local. Brands and even some of the unorganized, totally unorganized players.
Kapil Singh
Okay, okay, understood. And so last time you had on the lithium ion side, last time you had mentioned that the LFP price was had dropped to closer to $50 also in some cases. How has that moved during the quarter?
Delli Babu Y
Recently we have seen some uptick at the raw material level. But we are yet to see that translating into price change at the cell level. But I think our reading at this point of time is there could be a possible upward movement at the sell prices also because some of the base raw material there is a uptick in the price. But how much of that will come. Into the market is something to be seen. But we believe the $50 mark could be the bottom most. And from there it can only move up.
Kapil Singh
Sure, sir. And lastly, just on the capacity, but.
operator
I request you to rejoin the queue for the follow up question.
Kapil Singh
Sure. Thank you.
operator
Thank you. The next question is from the line of Mukesh Sara from Amendus Park. Please go ahead.
Mukesh Saraf
Yes, sir. Good evening and thank you for the opportunity. My first question is on margins. I mean while we saw that this quarter the margins were at 11 and a half, you did mention that antimoney is now probably stabilized. And when I look at lead on an M minus 2 basis as well, it looks like it is more or less flat. We are also seeing the tubular plant up and the refinery for you on the recycling up. So is it fair to say that from here on, I mean we should go back to our typical margin range, 13 odd percent?
Delli Babu Y
Yes, Mukesh, that’s what my estimate also at this point of time. Depends on. How in the coming quarter the inverter season will behave. You know the current very, very low demand considering the way the weather is behaving. So I think with recycling, refining operations have started. So battery breaking operations will take another 2, 3 months to start because the ramp up process is currently on. So I hope we will only move. Upward movement in terms of the margin.
Mukesh Saraf
Got it. And in the last say three months, any pricing actions we have taken in the aftermarket?
Delli Babu Y
No, nothing in Q1. It was taken in Q4 last year. Nothing .
Mukesh Saraf
Q4. Okay, okay. And just lastly, Telecom now on the lead asset side. Telecom will be how much for us? About 5 by 6% of revenues. Overall revenues.
Delli Babu Y
Overall revenue will be about. Yeah, it should be around…
Mukesh Saraf
The lead acid side of it.
Delli Babu Y
6 to 7%.
Mukesh Saraf
Yeah, 6 to 7%. Okay, got it sir. Thank you. That’s it from my side. Thanks.
operator
Thank you. The next question is from the line of Samrajada from Prosperity Wealth Advisor. Please go ahead.
Samraat Jadhav
Hi, good evening. Can you please provide me an update on the ramp up facility of our tabler plant at Chitore and the battery recycling part at Chair. Any delays or challenges we are expecting there or is it on time?
Delli Babu Y
No, no. See the tubular plant is quite as expected. We are able to ramp up. So July we have commenced our commercial production. So it will take generally about two. To three months to reach its full capacity. Thereafter, it will run at its stated. Capacity of about 150,000 batteries per month. So there are no challenges as far. As the tubular battery ramp up is concerned. As far as the recycling plant, the refining operations are going smooth. We are able to ramp up the. Entire refining operations pretty nicely. But the battery breaking operations is where the general trial run term itself takes about four to five months. We are in the midst of that journey right now. So we expect that the battery breaking operations to come into full stream sometime around October, November kinds provided all the trial runs go as per our expectation. Because this being a very state of. The art missionary, we are working with the vendor from Italy very closely. So we expect this to come online. Sometime around October and November.
Samraat Jadhav
And the Giga cell factory.
Delli Babu Y
The cell factory construction has just started. So as far as the CQP and research lab is concerned, equipment orders are all done. So we have slowly started getting one. Or two equipments arriving. So we expect the customer qualification plant and the research lab to be functional by the end of this financial year. Or maybe research lab could be ready by end of this calendar year itself. And as far as the Gigafactory is concerned, just now the building construction has just commenced. Now we are discussing on the equipment side of it. So I think we have earlier said that FY27 end is when we will. See the commencement of Gigafactory first. Gigafactory as well, a quarter here and there. I think we should be fine to hit those timelines.
Samraat Jadhav
Thank you. That’s the one to draw my question. Thank you.
operator
Thank you. The next question is from the line of Girish Kumar from Valpro. Please go ahead.
Girish Kumar
Good evening, sir, can you hear me? Can you hear me?
operator
Yes.
Girish Kumar
Sir. I have one question. Given the rising demand for battery energy storage system in India, is Amaraj exploring any opportunities to participate in this space?
Delli Babu Y
Yes, very much. I think energy storage system is a very important area for our growth from a solution side because there are three segments to this market. One is the retail home level. Second is the commercial and industrial level. Third is the grid level. So all three levels. We are trying to now develop our own solutions and then see how we do. How do we go for these three segments differently? There is a separate team that is working on this and then we will be.
While I am unable to give you a very specific timeline in terms of when the revenues will kick in, I think in the coming quarters we can have Some update around it, but there is a very clear focused team that. Is working on tapping these opportunities on. All these three customer segments around this.
Girish Kumar
Oh, thank you sir.
operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Kapil Singh from Nomura. Please go ahead.
Kapil Singh
Yeah, thanks for the opportunity sir. Just wanted to check the initial capacity on lithium ion side that is coming up which will be the primary product categories that we will be targeting with that.
Delli Babu Y
As I mentioned, the NMC is the. Form factor and predominantly it will be. A two wheeler application and some of the high level power tool applications as well. But it will be a predominantly two wheeler application. There could be very small parts of storage applications where NMC sales might be required, but its predominant focus will be. On the two wheeler.
Kapil Singh
Okay. Some customers are talking about the fact that they will start shifting towards LFP in case of two wheelers. So just wanted your perspective on the same.
Delli Babu Y
Oh yes. I think that is why from the beginning we have been saying NMC will not have a very significant portion of. The total product portfolio. And then we continue to remain that stance and that’s why we are now earlier we thought of going ahead with a 2 gigawatt capacity for NMC but. Now we are saying we will go. With 1 gigawatt to start with and then see whether we should go with the same form factor or should we to the LFP cylindrical cells as well. So there is a very clear message that we are also seeing in the market even with the OEM that we are currently working on the three wheeler side as well. We are seeing that shift of chemistry from NMC to. Because LFP offers that cost advantage as well. But that’s been the way that we felt the market will behave and I think there is no change in that process.
Kapil Singh
And so lastly, I’m sure you would have been following the new slow on gst. You know, still we are not clear, you know what exactly will happen but REIT rationalization if it happens. I just wanted to understand from your perspective how would you see which are the segments where you see Amaraja could benefit. Just whatever is your perspective would like to.
Delli Babu Y
Yeah, from a traditional lead acid battery point of view it puts lead acid batteries on par with lithium because today Lithium’s GST is about 18% whereas lead acid batteries are subjected to to 28%. The first thing that will happen is both the batteries will come on to. The same tax rate level. That is number one.
Number two, the raw materials that we. Are sourcing are also taxed at 18%. To that extent the overall working capital burden that will be there on the company also will come down. That’s one advantage of GST rates coming. Down from a very, very top level perspective. But when we look at the other side of the supply chain where the scrap batteries where we are procuring, which. Are currently subjected to about 18% GST. If some rationalization were to happen on that as well, that would make our entire collection process a lot more easy. And then if the GST rates on scrap batteries also were to come down then I think that would also help the entire recycling process becoming more and more organized. Thereby the collection process will get lot more streamlined.
And then that way the presence of unorganized segment also might get a bit of a. I mean they may find it a bit difficult to source their lead given that more and more scrap players are going to come into the GST net. So that would be a very good advantage. But I don’t know whether government is thinking about reducing the scrap GST also. But at the finished product level it has only one advantage of putting it on par with lithium and also reducing. Some bit of working capital to the battery makers.
Kapil Singh
Sure. So just one clarification. Yeah. For the electric vehicle batteries what is the GST rate? And also for the scrap batteries what is the GST rate currently.
Delli Babu Y
Scrap batteries also it is at 18% and for fully finished batteries it is 28%.
Kapil Singh
And for EV batteries what is it?
Delli Babu Y
18% GST is 18%. Whereas the basic customs duty for the cells is at 5% because government is giving a 15% concession there.
Kapil Singh
Okay. Thank you sir. Wish you all the best.
Delli Babu Y
Thanks.
operator
Thank you. The next question is from the line of Vaibhav Ruchi from JP Morgan. Please go ahead.
Vibhav Zutshi
Yes. Hi. Thanks for the opportunity. I am just trying to compare the Indian lead acid battery market size from your annual reports. So it looks like it is kind. Of flatlined at that 36, 37,000 crores level. You know if I compare the FY21 annual report to the FY25 annual report. So is it true that the battery is. Battery market size is flattish over the. Last few years or there could be. Some, you know, assessment related, you know, challenges over here.
Delli Babu Y
See our estimate is, I don’t know the basis of the crore number but our estimate was around 40,000 crores. And I think we know that there is downside risks as far as storage is concerned because we are seeing what’s happening in the telecom side, whereas on the mobility side, given the OEM sluggishness that we are seeing for a reasonably good period now, that could kind of hit some kind of a platooning curve going forward. And also on the home point of. View, if even the home inverter and then home solar application, if that what.
Also get migrated to lithium, then there is a issue with it. But right now we believe the growth rates will remain strong as far as the mobility sector is concerned. Storage side, it will depend on how the lithium prices will move and then. What impact it will have on the overall cost of ownership for these. That’s how we looked at the market. And we believe lead acid battery business has overall growth potential. Including the international markets where we are. Operating, I think we should see a growth of in the range of 10% at least for a reasonable period.
Vibhav Zutshi
Okay, got it. That’s helpful. So basically probably somewhere around 4.6, $4.7 billion and probably higher export volumes could be an offsetting factor that could keep volumes higher. Like you mentioned that telecom and certain other industrial aspects are expected to be flattish. But probably export opportunity could be a. Could be a key reason. Okay, got it, Got it. Thank you.
Delli Babu Y
The penetration also is not playing in a uniform manner. Right. So in some quarters we are seeing in a very good uptake. In some quarters there is a again downtrend. So we have to establish a very clear trajectory as far as Indian market is concerned. It is same with even in some of the export markets also I think we just need to wait for some. More data before we conclude.
Vibhav Zutshi
Got it. Thank you.
operator
So, thank you. A reminder to all participants, you may press Star and one to ask a question. The next question is on the line of Shubham Batra from Ambit anc. Please go ahead.
Shubham Batra
Hi sir, thanks for taking my question. Sorry if I am repeating the same question. Firstly, when do we expect the battery manufacturing capacity to come up and what is our ramp up plan? And secondly, have we established a supply chain for electrolytes or who are we trying to procure it from?
Delli Babu Y
See if you are asking about the lithium batteries, the supply chain is clearly everything is from China only. I think except for few components that we expect that Indian manufacturing will start. But most of the basic raw materials. Of cathode and anode materials including electrolyte. It will start only from import from China. It will take some time for the Indian ecosystem to really ramp up.
Shubham Batra
Okay, when do we know manufacturing to come up? The battery manufacturing? What, what is your time limit?
Delli Babu Y
Yeah, as we said, sometime around the end of FY27.
Shubham Batra
Okay, thank you sir.
operator
Thank you. The next question is from the line of Aniket Mahatre from Motilal Oswal. Please go ahead.
Aniket Mhatre
Yeah, hi sir, just quickly on our demand outlook. Sir, could you give help us understand the outlook for your various segments, both autos and non autos.
Delli Babu Y
See on the non autos clear ups. I think as we mentioned earlier, while this quarter we have seen a very strong demand, I think our expectation is on an annualized basis it should still grow around 5 to 6% kind of a growth number. Whereas when it comes to the automotive. Aftermarket, both two wheeler and four wheeler. Four wheeler we expect the aftermarket to grow around 6 to 7% kind of a number. And whereas the two wheeler might grow around 10 to 11%. That’s the growth number that we are expecting. Exports while we expect to grow around 15%. But this year I think it may be subdued given the supply chain challenges that we are seeing across the market because of these tariffs and all. So we have to see how exports will perform. We have seen a contraction as far as the first quarter results concerned. We hope once we expand our presence.
In some of the other markets that. We are trying to penetrate, we should be able to revive our growth numbers in spite of these challenges. But this year could be a tough year for exports. Assuming things settle down towards the second half of the year. I think still we should be able to pull up. But exports is the area where I am not too very certain about.
Aniket Mhatre
Sure. And on the industrial part.
Delli Babu Y
Yeah, on the industrial I think I already mentioned telecom is anyway going to be a migration story. We continue to maintain more than 50% market share in telecom and UPS. We expect it to grow around 5 to 6%.
Aniket Mhatre
Right. And finally on this power cost issue, sir, how. I mean, by when do you expect this to get resolved for us? Any time.
Delli Babu Y
Yeah, I’m expecting this to get resolved by end of the current quarter or at the best by beginning of Q3. I think we are. There are some good developments that are happening right now. So we hope this whole issue will get settled down in the coming quarter.
Aniket Mhatre
So I mean is it fair to assume that X of the power cost, the other headwinds are largely behind the tubular battery capacity will start ramping up and even the RM is normal. So I mean X for the purpose, I think Q2 onwards we should start seeing the pickup in margins. Is that a fair assumption?
Delli Babu Y
Yeah, that’s the expectation. But obviously we have to wait and see until the Q2 gets closed.
Aniket Mhatre
Sure, sir. Got it. Thanks. That’s it from me.
operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question is from the line of Saurabh Ved from Anantia Capital. Please go ahead.
Saurabh Ved
Hi sir. My question is that as Amara Raja. Scales its new energy business and deepens. Its focus on advanced chemistry, how are. You approaching talent acquisition for the R and D center, especially in cell design, electrochemistry, battery management systems? Is the required engineering talent readily available. In India or are you building capabilities. Through global partnerships or internal upskilling? Sir?
Delli Babu Y
Yeah. There is clearly three pronged approach here. One is obviously working with some of. The talents that are available elsewhere in. The world and then understanding and then. Tapping that through our internal talent. And secondly, some expat recruitments that we. Are able to do not only in the cell design side but also on. The ESS and other packaging solutions side. And thirdly, obviously working with some of. The partnership that we have built and then absorbing the technology through the existing talent. I don’t think there is only one approach, but largely the idea. The reason why we are running behind investing good amount into the research side. Of it is precisely to develop the talent and invest in that capability for a long term. So today we have roughly about 150. To 200 engineers working on these spaces. On cell technology and design and few others working on the PAC side. But I’m sure we need to ramp. That up as and when we start our GIGA journey. As and when we ramp up the gigafactories further. There is no single solution. That can solve all the talent problems.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Delli Babu Y
Thanks everyone. Thanks for your time and questions. Hopefully reconnect with you soon. Thank you.
operator
Thank you. On behalf of Motiral OSWAL Financial Services Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.