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Here are the major questions asked during the Q&A section of the earnings transcript along with detailed answers from the management, formatted as requested:

Question 1: "If you can share a bit more color on what are we seeing on the ground in terms of the sentiment? There's clearly been a step-up in the growth guidance, right, from mid-single digit to now low double-digit. So a little more color on what we are seeing regionally and in terms of HP-wise?"

Answer: "We see an upswing in the industry, expecting low double-digit growth this year. The reduction in GST has spurred market buoyancy, aided by good rainfall and favorable macroeconomic conditions. Notably, there's increased demand for higher horsepower tractors, notably in Southern and Western India, with the Northern region also showing positive movement recently."

Question 2: "Any early thoughts on the product interventions that we've been making over the last 6 months? How has the response to those new products been?"

Answer: "We have three brands: Farmtrac, Powertrac, and Kubota. Farmtrac has seen market share growth due to the PROMAXX series. Positive initial responses have been noted for new products in Kubota. We're targeting a launch of new models for Powertrac in Q4, focusing on the Southern market, aiming for a turnaround in market share."

Question 3: "Any reason why the treasury income has gone down and what sort of yield can we expect going forward?"

Answer: "Treasury income fluctuates based on our investment structuring and market conditions. Q1 saw a gain from market improvements, while Q2's decline reflects market tightening. We expect normalcy to resume, aligning with average yield post adjustments. Our performance should stabilize over the upcoming quarters."

Question 4: "How are you seeing potential recovery in the construction equipment industry, especially in the excavator business and the PNC business?"

Answer: "We anticipate a recovery as quarter 2 shows a tapering sales decline. Extended monsoon and emission norm compliance initially slowed mobilization. However, government infrastructure announcements signal demand recovery by mid-Q3. We forecast a smaller decline year-on-year but expect resilience going forward."

Question 5: "How do you see the impact of reduced GST pricing on demand over the medium term? Will there be upgradation towards higher segments?"

Answer: "We're observing positive effects from GST reduction, enabling purchases at lower entry costs. Early signs show a shift to higher horsepower tractors. Discounts will apply seasonally, and while we expect to see some margin deflation in costs, our focus on maintaining competitiveness will drive growth."

Question 6: "What would be the inventory levels for us and for the industry after the month of October?"

Answer: "As of the end of October, we're maintaining less than four weeks of inventory levels with our dealers. This ensures we are responsive to demand and reduces holding costs, preparing us well for the seasonality in sales."

Question 7: "Can you share guidance for tractor exports in the second half of FY '26?"

Answer: "We anticipate more than 25% growth in export numbers. We are experiencing success in the European market, while new market entries like Mexico will bolster these figures. Continuous collaboration with Kubota's global network enables us to capture more growth opportunities."

Question 8: "What about the new plant? Where are we in terms of approvals?"

Answer: "We are nearing completion of land acquisition, with 5% still pending due to legal issues, which have recently resolved in our favor. We aim to finish this process within a month and subsequently complete the formalities for our new facility initiated by this fiscal year."

Question 9: "Are we planning to launch any EV tractors?"

Answer: "We have developed electric tractors but have not launched them domestically due to high costs, particularly for batteries. The market demand is also limited. For now, we continue to focus on traditional products while monitoring future developments in battery technology and infrastructure."

Question 10: "What's our updated capacity expansion after the greenfield project?"

Answer: "Current capacity is about 170,000 tractors, which will rise to 200,000 with existing facilities. The greenfield project aims to add 100,000 in the first phase, potentially doubling our output capacity in the next few years."