Q1 2027 Arvind Ltd Earnings Call

August 13, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Arvind Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 3: Ladies and gentlemen, good day and welcome to the Arvind Limited Q1 FY27 earnings conference call. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Satya Prakash Mishra. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Arvind Limited Q1 FY 2027 Earnings Conference Call. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Satya Prakash Mishra. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Satyaprakash Mishra. Thank you, and over to you, sir.

Speaker #2: Good morning, everyone. A very warm welcome to the Arvind Limited earnings call for the quarter ended June 2026. The financial results and investor presentations have been uploaded to our website, and I hope you have had enough time and opportunity to review them.

Satya Prakash Mishra: Good morning, everyone. A very warm welcome to Arvind Limited earnings call for the quarter ended June 2026. The financial results and investor presentations have been uploaded to our website, and I hope you have had enough time and opportunity to review them. Before we begin, let me introduce the leadership team. Joining me today, Mr. Puneet Lalbhai, the Vice Chairman, Mr. Jayesh Shah, Whole-time Director and Group CFO, Mr. Nigam Shah, Executive Director and CFO of Arvind Limited, Mr. Gurpreet Singh Bhatia, CEO and President of Advanced Materials business, Mr. Karan Ojha, CEO of wovens business. The first quarter of the year was an action-packed one for the company. We begun FY27 with encouraging momentum supported by a robust demand across our key businesses.

Satya Prakash Mishra: Good morning, everyone. A very warm welcome to Arvind Limited earnings call for the quarter ended June 2026. The financial results and investor presentations have been uploaded to our website, and I hope you have had enough time and opportunity to review them. Before we begin, let me introduce the leadership team. Joining me today, Mr. Punit Lalbhai, the Vice Chairman, Mr. Jayesh Shah, Whole-time Director and Group CFO, Mr. Nigam Shah, Executive Director and CFO of Arvind Limited, Mr. Gurpreet Singh Bhatia, CEO and President of Advanced Materials business, Mr. Karan Ojha, CEO of wovens business. The Q1 of the year was an action-packed one for the company. We begun FY 2027 with encouraging momentum supported by a robust demand across our key businesses.

Speaker #2: Before we begin, let me introduce the leadership team joining me today: Mr. Puneet Lalbhai, the Vice Chairman; Mr. Jayesh Shah, Whole Time Director and Group CFO; Mr. Nigam Shah, Executive Director and CFO of Arvind Limited; Mr. Gurpreet Singh Bhatia, CEO and President of Advanced Materials Business; and Mr. Karan Ojha, CEO of Owens Business.

Speaker #2: The first quarter of the year was an action-packed one for the company. We began FY27 with encouraging momentum, supported by robust demand across our key businesses.

Speaker #2: During the quarter, the business environment was influenced by evolving geoeconomic developments, realignment of global trade flows, and elevated input costs across several raw material categories in our businesses.

Satya Prakash Mishra: During the quarter, the business environment was influenced by evolving geoeconomic developments, realignment of global trade flows, and elevated input costs across several raw material categories in our businesses. Notwithstanding these external headwinds, demand across all our core businesses remained very healthy, reflecting strong customer partnerships and sustained market engagement. Coming to the operational performance during the quarter. The quarter witnessed healthy volume momentum across our core textile businesses, supported by robust demand conditions, higher vertical integration, and higher investment in product innovation. Denim fabric volume reached 17.5 million meters, the highest level in 16 quarters, registering a growth of 34%. Woven fabric volume stood at 31.2 million meters, up 7% despite the seasonally weaker quarter. While the garmenting volume crossed 11 million pieces for the first time, recording a growth of 13%, supported by a healthy demand and higher verticalization.

Speaker #2: Notwithstanding these external headwinds, demand across all our core businesses remained very healthy. Reflecting strong customer partnerships and sustained market engagement, coming to the operational performance during the quarter, the quarter witnessed healthy volume momentum across our core textile businesses, supported by robust demand conditions, higher vertical integration, and higher investment in product innovation.

Speaker #2: Denim fabric volume reached 17.5 million meters, the highest level in 16 quarters, registering a growth of 34%. Woven fabric volume stood at 31.2 million meters, up 7% despite the seasonally weaker quarter.

Speaker #2: While garmenting volume crossed 11 million pieces for the first time, recording a growth of 13%, supported by healthy demand and higher verticalization. On the strategic front, we have strengthened our global footprint by establishing a physical presence in the UK through a design gallery cum marketing office in London.

Satya Prakash Mishra: On the strategic front, we have strengthened our global footprint by establishing a physical presence in the UK through a design gallery cum marketing office in London, supported by a dedicated on-ground representative to enable deeper and more consistent customer engagement throughout the year. We have also partnered with a garmenting manufacturing unit in Bangladesh and Egypt to diversify our manufacturing base and enhance supply chain resilience. Together, these initiatives will deepen customer proximity, broaden our global capabilities, and further strengthen our international presence. Advanced Materials business also delivered a strong quarter, with India business reporting a robust growth of 40%, supported by a broad-based growth across key segments. The Human Protection segment benefited from normalization in defense procurement activity in India and easing off of tariff related pressure in US to help increase demand from that geography, resulting in a strong growth during the quarter.

Speaker #2: Supported by a dedicated on-ground representative to enable deeper and more consistent customer engagement throughout the year. We have also partnered with garment manufacturing units in Bangladesh and Egypt to diversify our manufacturing base and enhance supply chain resilience.

Speaker #2: Together, these initiatives will deepen customer proximity, broaden our global capabilities, and further strengthen our international presence. Advanced Materials Business also delivered a strong quarter.

Speaker #2: The India business reported robust growth of 40%, supported by broad-based expansion across key segments. The human protective gear segment benefited from the normalization in defense procurement activity in India, and the easing of tariff-related pressures in the US helped increase demand from that geography.

Speaker #2: Resulting in strong growth during the quarter. The composite business continued its positive momentum, supported by increased demand from renewable energy and mobility and mass transport applications.

Satya Prakash Mishra: The Composites business continued its positive momentum, supported by increased demand from renewable energy and mobility and mass transport applications. The mobility segment, in particular, witnessed a strong traction driven by new customer additions. The industrial segment experienced relatively lower growth during the quarter due to a higher capacity utilization. Higher capacity utilization is on account of some of our incoming CapEx programs has not come online yet. This is expected to go better in coming quarters. The underlying demand environment, though, remains very healthy, and we continue to see encouraging opportunities across the segment. Overall, the Advanced Materials business maintained a healthy growth trajectory, supported by operating leverage and improved business mix and broad-based demand across key markets. Now, coming to the financial performance for the quarter. Consolidated revenue stood at INR 2,501 crore, with EBITDA of INR 258 crore, representing a growth of 25% and 39%, respectively.

Speaker #2: The mobility segment, in particular, witnessed strong traction driven by new customer additions. The industrial segment experienced relatively lower growth during the quarter due to higher capacity utilization. Higher capacity utilization is on account of some of our incoming capex programs not having come online yet.

Speaker #2: This is expected to go better in coming quarters. The underlying demand environment, though, remains very healthy, and we continue to see encouraging opportunities across the segment.

Speaker #2: Overall, the Advanced Material Business maintained a healthy growth trajectory, supported by operating leverage and improved business mix and broad-based demand across key markets. Now, coming to the financial performance for the quarter, consolidated revenue stood at ₹2,501 crore, with EBITDA of ₹258 crore.

Speaker #2: Representing growth of 25% and 39%, respectively. Excluding the contribution from Dalco GFT, revenue and EBITDA stood at ₹2,344 crore and ₹234 crore, respectively, reflecting very healthy growth of 17% and 26%.

Satya Prakash Mishra: Excluding the contribution from Dalco-GFT, revenue and EBITDA stood at INR 2,344 crore and INR 234 crore respectively, reflecting a very healthy growth of 17% and 26%. EBITDA margin during this quarter improved by 104 basis points to reach 10.3%, supported by operating leverage, improved business mix, and continued execution discipline. At the segment level, the Textile division reported a revenue of INR 1,735 crore, with a growth of 13%, with an EBITDA of INR 139 crore. The Garmenting division reported a revenue of INR 497 crore, supported by 13% volume growth, and revenue growth was moderated by higher contribution from value segment products during the quarter. The Advanced Materials business reported its highest ever quarterly revenue and EBITDA of INR 650 crore and INR 97 crore respectively, maintaining an EBITDA margin of 15%. The India business delivered revenue of INR 493 crore and EBITDA of INR 74 crore, reflecting robust growth across key segments.

Speaker #2: EBITDA margin during this quarter improved by 104 basis points to reach 10.3%, supported by operating leverage, improved business mix, and continued execution discipline.

Speaker #2: At the segment level, the textile division reported revenue of ₹1,735 crore, with growth of 13%, and an EBITDA of ₹139 crore. The garmenting division reported revenue of ₹497 crore, supported by 13% volume growth, and revenue growth was moderated by a higher contribution from value segment products during the quarter.

Speaker #2: The Advanced Materials Business reported its highest-ever quarterly revenue and EBITDA of ₹650 crore and ₹97 crore, respectively, maintaining an EBITDA margin of 15%.

Speaker #2: The India business delivered revenue of ₹493 crore and EBITDA of ₹74 crore, reflecting robust growth across key segments. With respect to Dalco GFT, the business contributed revenue of ₹157 crore and EBITDA of ₹24 crore during the quarter.

Satya Prakash Mishra: With respect to Dalco-GFT, the business contributed revenue of INR 157 crore and EBITDA of INR 24 crore during the quarter, representing approximately 1.8 months of operation post-acquisition. EBITDA margin stood at 15.1%, impacted by elevated raw material costs during the period. Full quarter Dalco-GFT delivered a revenue of INR 244 crore and EBITDA of INR 40 crore, translating into an EBITDA margin of 16.3%. Profit after tax for the company stood at INR 80 crore, registering growth of 47% during the year. In terms of capital allocation and balance sheet, we continue to maintain a disciplined and prudent approach over the past several years. The company has materially strengthened its balance sheet through focused capital allocation, a rationalized debt profile, efficient capital structure, and consistent free cash flow generation.

Speaker #2: Representing approximately 1.8 months of operation post-acquisition. EBITDA margin stood at 15.1%, impacted by elevated raw material costs during the period. For the full quarter, Dalco GFT delivered revenue of ₹244 crore and EBITDA of ₹40 crore, translating into an EBITDA margin of 16.3%.

Speaker #2: Profit after tax for the company stood at ₹80 crore, registering growth of 47% during the year. In terms of capital allocation and the balance sheet, we continue to maintain a disciplined and prudent approach over the past several years.

Speaker #2: The company has materially strengthened its balance sheet through focused capital allocation, a rationalized debt profile, and an efficient capital structure, along with consistent free cash flow generation.

Speaker #2: During the quarter, we have invested roughly about ₹98 crores across various growth-oriented capital expenditure programs, in line with our long-term strategic priorities and future growth plans.

Satya Prakash Mishra: During the quarter, we have invested roughly about INR 98 crore across various growth-oriented CapEx programs, in line with our long-term strategic priorities and future growth plans. Very happy to inform you all that we have successfully completed our maiden QIP of INR 500 crore, which witnessed strong investor interest and was oversubscribed multiple times. The issue saw participation from several market institutional investors, further strengthening company shareholder base and reflecting confidence in our long-term strategy and value creation potential. The proceeds from the QIP are being primarily utilized towards debt reduction and balance sheet strengthening, which will further enhance financial flexibility and support future growth initiatives. Looking ahead, the implementation of UK-India Free Trade Agreement and the gradual improvement in domestic demand are expected to create incremental growth opportunities for the textile sector.

Speaker #2: Very happy to inform you all that we have successfully completed our recent QIP of ₹500 crore, which witnessed strong investor interest and was oversubscribed multiple times.

Speaker #2: The issue saw participation from several marquee institutional investors, further strengthening the company's shareholder base and reflecting confidence in our long-term strategy and value creation potential.

Speaker #2: The proceeds from the QIP are being primarily utilized towards debt reduction and balance sheet strengthening, which will further enhance financial flexibility and support future growth initiatives.

Speaker #2: Looking ahead, the implementation of UKSTA and the gradual improvement in domestic demand are expected to create incremental growth opportunities for the textile sector. Demand remains resilient across both textile as well as advanced materials, supported by healthy order books and sustained customer engagement despite the prevailing uncertainties in the operating environment.

Satya Prakash Mishra: Demand remains resilient across both textile as well as Advanced Materials, supported by healthy order book and sustained customer engagement despite the prevailing uncertainties in the operating environment. Within Advanced Materials, the defense-allied segments continue to gain traction, and we maintain focus on expanding our presence in high-value customer programs and differentiated applications. At the same time, elevated raw material costs and supply side challenges continue to exert pressure on profitability. We are actively pursuing mitigation initiatives, including strategic sourcing and customer-led pricing intervention, to maintain margin resilience. To conclude, we are pleased with a strong start to FY27, marked by broad-based growth across our businesses, continued momentum in Advanced Materials, and successful acquisition of Dalco-GFT, which further strengthens our technical textile platform.

Speaker #2: Within Advanced Materials, the defense allied segments continue to gain traction, and we maintain focus on expanding our presence in high-value customer programs and differentiated applications.

Speaker #2: At the same time, elevated raw material costs and supply-side challenges continue to exert pressure on profitability. We are actively pursuing mitigation initiatives, including strategic sourcing and customer-led pricing intervention, to maintain margin resilience.

Speaker #2: To conclude, we are pleased with a strong start to FY27, marked by broad-based growth across our businesses, continued momentum in Advanced Materials, and the successful acquisition of Dalco GFT, which further strengthens our technical textiles platform.

Speaker #2: While the operating environment remains very dynamic, our diversified portfolio, strong customer relationships, and disciplined execution position us well to capitalize on growth opportunities and create long-term value for stakeholders.

Satya Prakash Mishra: While the operating environment remains very dynamic, our diversified portfolio, strong customer relationships, and disciplined execution positions us well to capitalize on growth opportunities and create long-term value for stakeholders. I will now hand over the call to Mr. Puneet Lalbhai to give his opening remarks.

Speaker #2: I'll now hand over the call to Mr. Puneet Lalbhai to give his opening remarks.

Speaker #1: Good morning, everyone. It's a pleasure to be here and interact with all of you. Sathya has mentioned all the events that happened in Q1 in great detail.

Punit Lalbhai: Good morning, everyone. It is a pleasure to be here and interact with all of you. Satya has mentioned all the events that happened in Q1 in great detail, so I will not dwell on the same. I would like to say that this quarter, from a qualitative lens, was extremely challenging and action-packed at the same time. I think the team has done fantastically well to deliver the kind of volumes that we have delivered, both on the fabric side and the Advanced Materials side. We have historic high levels of production, which took some very strong execution to deliver. Only for that reason are we in such a great position because if you look at the war impact this time, it has been quite significant and almost INR 100 crores worth of inflation in input cost happened in a very short period of time.

Speaker #1: So I won't dwell on the same. But I'd like to say that this quarter, from a qualitative lens, was extremely challenging and action-packed at the same time.

Speaker #1: And I think the team has done fantastically well to deliver the kind of volumes that we've delivered, both on the Fabric side and the Advanced Materials side.

Speaker #1: We have historic high levels of production, which took some very, very strong execution to deliver. And only for that reason are we in such a great position.

Speaker #1: Because if you look at the war impact this time, it has been quite significant. And almost ₹100 crore worth of inflation in input costs happened in a very short period of time.

Speaker #1: So, about ₹100 crores in H1 would be the overall impact in just cotton and yarn. And on top of that, there would be the impact of all the petrochemical-related chemical costs.

Punit Lalbhai: About INR 100 crores in H1 would be the overall impact in just cotton and yarn. On top of that, there would be impact of all the petrochemical related chemical costs. Therefore, it was essential to do a high volume to keep our absolute EBITDAs where we are very close to our budgeted range. I think the teams have done a fantastic job in ensuring this happens. Of course, we are extremely excited with Dalco-GFT becoming a part of the Advanced Materials business. The more we learn about that business, the more we are excited about its future, and the more opportunities we see to cross-pollinate and make the overall business a lot stronger with that US base now within the business. I think that is enough for the general commentary as of now.

Speaker #1: And therefore, it was essential to do a high volume to keep our absolute EBITDAs very close to our budgeted range. So, I think the teams have done a fantastic job in ensuring this happens.

Speaker #1: Of course, we are extremely excited about Dalco GFT becoming a part of the Advanced Materials business. And the more we learn about that business, the more we are excited about its future.

Speaker #1: And the more opportunities we see to sort of cross-pollinate and make the overall business a lot stronger with that U.S.-based now within the business.

Speaker #1: So, I think that's enough for the general commentary for now. I'd like to throw open the floor for questions, and we can answer them to the best of our ability.

Punit Lalbhai: I would like to throw open the floor for questions, and we can answer them to the best of our ability. Thank you.

Speaker #1: Thank you.

Speaker #3: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator 3: We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 comes from the line of Aradhana Jain with 361 Capital. Please go ahead.

Operator: We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 comes from the line of Aradhana Jain with 361 Capital. Please go ahead.

Speaker #3: 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.

Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Aradhana Jain with 361 Capital.

Speaker #3: Please go ahead.

Speaker #4: Hi. Thank you for the opportunity, and congratulations on the good set of numbers. First, I wanted to understand the textile side. The textile revenue grew 21%, but we saw margins declining to around 7.5%.

Aradhana Jain: Hi. Thank you for the opportunity, and congratulations on the good set of numbers. First, I wanted to understand on the textile side. The textile revenue grew 21%, but we saw margins declining to around 7.5%. Could you help us understand the margin bridge, why there was a decline in the margins, and quantify how much was due to the higher raw material cost versus the product mix or, say, other factors? More importantly, how should we think about the textile margin over the next 2 to 3 quarters as the raw material pass-through catches up? That is my first question.

Speaker #4: Could you help us understand the margin bridge? Why was there a decline in the margins? And could you quantify how much was due to higher raw material costs versus the product mix or, say, other factors?

Speaker #4: And more importantly, how should we think about the textile margin over the next two to three quarters, as the raw material pass-through catches up?

Speaker #4: That's my first question.

Speaker #1: So, I think the first thing to understand is, Q1 is always a lower-margin quarter. So, compared to Q4, the margin will always look—so last year, we were at an 8.4% EBITDA margin.

Punit Lalbhai: I think the first thing to understand is Q1 is always a lower margin quarter. Compared to Q4, the margin will always look. Last year, we were at an 8.4% EBITDA margin. This year it is an 8% EBITDA margin across the textile verticals. It could have been close to double digits, but for the sort of raw material escalations that happened within a short period of time. You see, our order books fill up 3, 4 months in advance of the business. The pricing gets fixed. It is then very difficult to change that, and we would not want to let market share go down, especially when we are on the growth trajectory. So we traded growth for margin, you could say. I think this is a temporary phenomenon.

Speaker #1: This year, it's an 8% EBITDA margin across the textile verticals. And it could have been close to double digits, but for the sort of raw material escalations that happened within a short period of time.

Speaker #1: You see, our order books fill up three to four months in advance of the business, and the pricing gets fixed. It is then very difficult to sort of change that.

Speaker #1: And we wouldn't want to let market share go down, especially when we are on the growth trajectory. So we traded growth for margin, you could say.

Speaker #1: And I think this is a temporary phenomenon. As the year progresses, we have passed on and are in the process of passing on some of the price escalations.

Punit Lalbhai: As the year progresses, we have passed on and are in the process of passing on some of the price escalations. That said, of course, it is an uncertain environment, and the world is still not conflict-free, and till that happens absolute certainty on the future is very difficult to predict. All else being equal, as we progress towards the future, we should be able to improve these margins as the market catches up to the raw material escalation. Our product prices catch up to the escalation and things normalize. So I would say we are about 1.5 basis points off because of the overall war impact. There is nothing more than that. The order book is extremely healthy. The demand scenario is holding up quite well. The teams have executed excellently.

Speaker #1: That said, of course, it is an uncertain environment, and the world is still not conflict-free. Until that happens, absolute certainty on the future is very difficult to predict.

Speaker #1: But all else being equal, as we progress towards the future, we should be able to improve these margins. As the market catches up to the raw material escalation, our product prices catch up to the escalation.

Speaker #1: And things normalize. So, I would say we are about one, one and a half basis points off because of the overall war impact, and there is nothing more than that.

Speaker #1: The order book is extremely healthy. The demand scenario is holding up quite well. The teams have executed excellently, so I wouldn’t read too much negativity into the set of textile margins that you see reported in this quarter.

Punit Lalbhai: I would not read too much negativity into the set of textile margins that you see reported in this quarter.

Speaker #4: And sir, on the garmenting side, our margins have been in the high single digits, and we are aspiring to move towards the low double digits.

Aradhana Jain: And sir, in the garmenting side, our margins have been in the high single digits, and we are aspiring to move towards low double digits. By when can we expect that margins to move towards the low double digits number?

Speaker #4: By when can we expect the margins to move towards the low double-digit numbers?

Speaker #1: I think that will still be a journey of, say, 18 to 24 months, because we are constantly adding capacity at the same time. So while the older plants are scaling nicely, and some of the plants are already at double-digit margins, there are more plants moving from low single digits to high single digits. There will be plants that are coming in that will be at negative margins also.

Punit Lalbhai: Well, I think that will still be a journey of, say, 18 to 24 months, because we are constantly adding capacity at the same time. So while the older plants are scaling nicely and some of the plants are already at double-digit margins, whereas there are more plants moving from low single digit to high single digits. There will be plants that are coming in that will be at negative margins also. So because we are expanding rapidly, the margins will take, say, 18 to 24 months to cross into double digits.

Speaker #1: So, because we are expanding rapidly, the margins will take, say, 18 to 24 months to cross into double digits.

Speaker #4: Understood. My second question is on the denim side. Your denim volumes have significantly increased this quarter. How much of this reflects an improvement in the underlying industry demand, versus how much could be because of, say, the market share gains or verticalization that we are doing?

Aradhana Jain: Understood. My second question is on the Denim side. Your Denim volumes have significantly increased this quarter. How much of this reflects an improvement in the underlying industry demand versus how much could be because of, say, the market share gains or verticalization that we are doing? And can we expect this current run rate to sustain over the next couple of quarters? And where exactly is our capacity utilization in Denims?

Speaker #4: And can we expect this current run rate to sustain over the next couple of quarters? And where exactly is our capacity utilization in denims?

Punit Lalbhai: In Denim, we are also sort of creating some new capacity through an asset-light model where we are tying up with sort of non-functional assets that are available in the market, and running them ourselves. In fact, demand we see robust going forward. I think the current trajectory looks quite positive, and at least till the end of the year, we do not see any pressure on volumes. The opportunity is to utilize. Our asset base is already at 100%, and we are also working on increasing our sort of leased assets where we will take over management of a few assets and run them as if they are our own assets. Currently not much of that has happened, but in the future we are also exploring those options as well.

Speaker #1: So in denim, we are also sort of creating some new capacity through an asset-light model, where we are tying up with sort of non-functional assets.

Speaker #1: ...that are available in the market and running them ourselves. So, in fact, the demand we see is robust going forward. I think the current trajectory looks quite positive.

Speaker #1: And at least till the end of the year, we don't see any pressure on volumes. So, the opportunity is to utilize—so our asset base is already at 100%.

Speaker #1: And we are also working on increasing our leased assets, where we will take over management of a few assets and run them as if they are our own.

Speaker #1: So currently, not much of that has happened. But in the future, we are also exploring those options as well. So it's a good demand cycle.

Punit Lalbhai: It is a good demand cycle, and we are trying our best to take advantage of it. So far we are proving to be reasonably successful.

Speaker #1: And we are trying our best to take advantage of it, and so far, we are proving to be reasonably successful.

Speaker #4: Understood. Just one last question from my side. On the AML India business, two things that catch my eye: one was your Human Protection growth.

Aradhana Jain: Understood. Just last question from my side. On the AMD India business, two things that catch my eye was one was your Human Protection growth and the second was Composite growth. If you could just help us understand what led to that kind of growth. While I understand that there was some defense orders that normalized and easing off US tariff pressures also helped us to get to that 39% kind of growth that we delivered in Human Protection. If you could help us understand how the order book pipeline looking like and what sort of growth should we expect for the rest of the year? Similarly for Composites also, how much of the 76% growth came in because of the Q4 shipment spillover that happened? How much is a sustainable rate that we can expect in the Composite side as well? Yeah, that is it.

Speaker #4: And the second was composite growth. If you could just help us understand what led to that kind of growth. While I understand that there were some defense orders that normalized, and easing of US tariff pressures also helped us to get to that 39% kind of growth that we delivered in human protection.

Speaker #4: But if you could help us understand how the order book pipeline is looking and what sort of growth we should expect for the rest of the year?

Speaker #4: And similarly, for composites also, how much of the 76% growth came in because of the Q4 shipment spillover that happened? And how much is a sustainable rate that we can expect on the composite side as well?

Speaker #4: Yeah, that's it.

Speaker #3: So, hi. Morning to Gurpreet. The way to look at it is, last year, our Q1, amidst all the tariff uncertainty, was the softest quarter in the last five quarters.

Punit Lalbhai: Hi, morning, Gurpreet. The way to look at it is, last year, our Q1, amidst all the tariff uncertainty, was the softest quarter in the last five quarters. If you normalize that softness, we are in the ballpark 25% to 30% kind of a growth. Coming to your specific question on the accelerated high growth on Human Protection and Composites. Last year, for six months, we had very high softness because of the external environment on defense in India, which started to normalize in Q3 onwards. We started investing efforts to broad base our customer base in defense and paramilitary during that period last year. We are seeing that benefit accruing to us as commercial and business benefit in this quarter. Our customer base across all defense services and paramilitary services has expanded and we are on that path.

Gurpreet Singh Bhatia: Hi, morning, Gurpreet. The way to look at it is, last year, our Q1, amidst all the tariff uncertainty, was the softest quarter in the last five quarters. If you normalize that softness, we are in the ballpark 25% to 30% kind of a growth. Coming to your specific question on the accelerated high growth on Human Protection and Composites. Last year, for six months, we had very high softness because of the external environment on defense in India, which started to normalize in Q3 onwards. We started investing efforts to broad base our customer base in defense and paramilitary during that period last year. We are seeing that benefit accruing to us as commercial and business benefit in this quarter. Our customer base across all defense services and paramilitary services has expanded and we are on that path.

Speaker #3: If you normalize that softness, we are in the ballpark of 25–30 percent kind of growth. Coming to your specific question on the accelerated high growth in human protection and composites, last year, for six months, we had very high softness because of the external environment on defense in India.

Speaker #3: Which started to normalize in quarter three onwards. We started investing efforts to broad-base our customer base in defense and paramilitary during that period last year.

Speaker #3: And we are seeing that benefit accruing to us as commercial and business benefit in this quarter. So our customer base across all defense services and paramilitary services has expanded.

Speaker #3: And we are on that path. Some of the investments we made in defense to upgrade our portfolio to superior products are also going to see commercial realization in the coming quarters.

Punit Lalbhai: Some of the investments we made on defense to upgrade our portfolio to superior products are also going to see a commercial realization in the coming quarters. The third area on defense as a focus area is global defense. We started to look at that business quite seriously, and that would be another development over the next 12 to 18 months. Composites again had a very soft last year Q1. Due to the uncertainty in Middle East, because Middle East is one of our focus markets for infrastructure development, we had delayed execution of some Q4 orders. I would say that number is about 10% of the revenue for the quarter, which got implemented in Q1. We still have some pending orders to execute, which we are hoping to execute in Q2.

Gurpreet Singh Bhatia: Some of the investments we made on defense to upgrade our portfolio to superior products are also going to see a commercial realization in the coming quarters. The third area on defense as a focus area is global defense. We started to look at that business quite seriously, and that would be another development over the next 12 to 18 months. Composites again had a very soft last year Q1. Due to the uncertainty in Middle East, because Middle East is one of our focus markets for infrastructure development, we had delayed execution of some Q4 orders. I would say that number is about 10% of the revenue for the quarter, which got implemented in Q1. We still have some pending orders to execute, which we are hoping to execute in Q2.

Speaker #3: The third area on defense as a focus area is global defense. We have started to look at that business quite seriously, and that would be another development over the next 12 to 18 months.

Speaker #3: Composites again had a very soft last year Q1. Due to the uncertainty in the Middle East—because the Middle East is one of our focus markets for infrastructure development—we had delayed execution of some Q4 orders.

Speaker #3: I would say that number is about 10% of the revenue for the quarter, which got implemented in Q1. We still have some pending orders to execute, which we are hoping to execute in Q2.

Speaker #3: Overall, normalized, I would say on revenue, high teens to 20%—thereabouts—for the full year, is what we will look like. However, on margins, the EBITDA margins, we will deliver a growth higher than the 18–20% on revenue.

Punit Lalbhai: Overall normalized, I would say on revenue, high teens to 20% thereabout for the full year is what we will look like. However, on margins, EBITDA margins, we will deliver a growth higher than the 18% to 20% on revenue because of all the operational efficiency programs that we've implemented over the last three, four quarters. In summary, I would say that the growth rate is a result of hard work. I think it is very high in Q1 because the comparative quarter last year was lower than normal. I think the way we should think about this performance is that things are going in the right direction, and we are on track to achieving that 18% to 20% medium-term growth target that we've been constantly guiding towards. We can say that our efforts are paying dividends in that direction.

Gurpreet Singh Bhatia: Overall normalized, I would say on revenue, high teens to 20% thereabout for the full year is what we will look like. However, on margins, EBITDA margins, we will deliver a growth higher than the 18% to 20% on revenue because of all the operational efficiency programs that we've implemented over the last three, four quarters.

Speaker #3: Because of all the operational efficiency programs that we've implemented over the last three to four quarters.

Speaker #1: So, in summary, I would say that the growth rate is a result of hard work. I think it is sort of very high in Q1 because the comparative quarter last year was lower than normal.

Punit Lalbhai: In summary, I would say that the growth rate is a result of hard work. I think it is very high in Q1 because the comparative quarter last year was lower than normal. I think the way we should think about this performance is that things are going in the right direction, and we are on track to achieving that 18% to 20% medium-term growth target that we've been constantly guiding towards. We can say that our efforts are paying dividends in that direction.

Speaker #1: And I think the way we should think about this performance is that things are going in the right direction. And we are on track to achieving that 18 to 20 percent medium term sort of growth target that we've been constantly guiding towards.

Speaker #1: So we can say that our efforts are paying dividends in that direction.

Speaker #4: Understood. Just one last bookkeeping question, if I may. Your net debt has increased this quarter to around ₹2,100 crore, following the acquisition. After applying the ₹500 crore of QIP proceeds, with a part of it towards your debt reduction—

Aradhana Jain: Understood. Just one last bookkeeping question, if I may. Your net debt has increased this quarter to around INR 2,100 crores following the acquisition. After applying the INR 500 crores of QIP proceeds, a part of it towards your debt reduction, where should we expect the net debt to settle for the full year? If you could just highlight on that.

Speaker #4: Where should we expect the net debt to settle for the full year? Yeah, if you could just highlight that.

Speaker #1: So, it will settle exactly ₹500 crore below where it is today. But the way to think about it is that the ₹450-odd crore that we've taken in the US will get serviced by the US entity.

Punit Lalbhai: It will settle exactly INR 500 crores below where it is today. But the way to think about it is that the INR 450 odd crores that we've taken in the US will get serviced by the US entity. The India business will come very close to the debt levels before the Dalco-GFT acquisition. This INR 500 crores essentially cancels out the additional debt that we've taken on the India entity to finance the acquisition. Broadly, our debt levels are back to historic levels, and Dalco-GFT has a healthy cash flow generation in the US, which will be able to more than service its debt and its higher growth ambitions, and CapEx, for that purpose. I would say we are very comfortable on debt, especially after the fundraise.

Speaker #1: And so, the India business will come very close to the debt levels before the DALCO acquisition. So, this ₹500 crore essentially cancels out the additional debt that we've taken on the India entity.

Speaker #1: To finance the acquisition. So broadly, our debt levels are back to historic levels, and DALCO has healthy cash flow generation in the US, which will be able to more than service its debt and support its higher growth ambitions.

Speaker #1: And capex for that purpose. So I would say we are very comfortable on that, especially after the fundraise.

Speaker #4: Understood. I'll join back with Q for follow-ups. Thank you so much.

Aradhana Jain: Understood. I will join back the queue for follow-ups. Thank you so much.

Speaker #2: Participants, in the interest of time and fairness to others, please restrict yourselves to two questions. For any additional questions, you may rejoin the queue.

Operator 3: Participants, in the interest of time and fairness to others, please restrict yourselves to two questions. For any more questions, you may rejoin the queue. The next question comes from the line of Soham Samanta with Motilal Oswal Financial Services. Please go ahead.

Operator: Participants, in the interest of time and fairness to others, please restrict yourselves to two questions. For any more questions, you may rejoin the queue. The next question comes from the line of Soham Samanta with Motilal Oswal Financial Services. Please go ahead.

Speaker #2: The next question comes from the line of Soham Samantha with Motilal Oswal Financial Services. Please go ahead.

Speaker #5: Yeah, thanks for the opportunity. I just wanted to check on our garmenting target, because we are expecting 15% growth in FY27, but obviously, this quarter we couldn't achieve that.

Soham Samanta: Yeah, thanks for the opportunity. Sir, just wanted to check our garmenting target because we are expecting 15% growth in FY27, but obviously this quarter we couldn't do that. I just wanted to check on a full year number how we are looking the garmenting growth for FY27.

Speaker #5: So, I just wanted to check on our full-year numbers—how are we looking at the garmenting growth for FY27?

Speaker #1: We should come close to that. If not 15, it will be in the high—I mean, close to that. It should be close to that.

Punit Lalbhai: We should come close to that. If not 15%, it will be close to that. It should be close to that. See, the first quarter was a quarter that was heavily indexed towards a niche product. Though we did a high number of pieces, the ASP was small and Denim, which is our highest ASP product, a lot of those dispatches sort of shifted to Q2. I think rather than looking quarter to quarter, we should look at the yearly journey. You are asking the right question, and we should be close to the number where we want to be on current visibility. I would not read too much into this quarter.

Speaker #1: See, the first quarter was a quarter that was heavily indexed towards the needs product. So, though we did a high number of pieces, the ASP was small, and Denim, which is our highest ASP product—a lot of those dispatches sort of shifted to Q2.

Speaker #1: So, I think rather than looking quarter to quarter, we should sort of look at the yearly journey. So you are asking the right question.

Speaker #1: And we should be close to the numbers where we want to be, based on current visibility. So I wouldn't read too much into this quarter.

Speaker #1: It's just.

Soham Samanta: And sir, one follow-up in this garmenting. So when we are talking this 7.5% margin this quarter, assuming the raw material is where it is right now. So if we take the raw material right now and if we take next three quarters, is it fair to assume that high single digit or maybe low double-digit margin will exit by Q4?

Speaker #5: Until what? One follow-up in this garmenting. So, when we are talking about this 7.5% margin this quarter, assuming the raw material is where it is right now.

Speaker #5: So, if we take the raw material right now, and if we take the next three quarters, is it fair to assume that high single-digit or maybe low double-digit margin will exit by Q4?

Speaker #1: I think it will take one more year to get into double digits, or at least one and a half years from today to get there. So, the middle of next year is when you should start looking for that double digit in garments.

Punit Lalbhai: Well, I think it will take one more year to get into double digits, or at least one and a half years from today to get into. So middle of next year is where you should start looking for that double digit in garments. Our focus more is to ensure that our growth hits where it needs to hit, our execution is on point, customers are happy, and our new factories are coming on stream at the speed at which they need to. So I think that's the heavy lifting that needs to be done in garmenting, and I am happy to report that the trend line is positive. We are doing better than last year in terms of margin as well. Slightly, but it is better than last year, and our plans are going according to how we have budgeted internally.

Speaker #1: Our focus is more to ensure that our growth hits where it needs to hit. Our execution is on point, customers are happy, and our new factories are coming on stream.

Speaker #1: At the speed at which they need to. So, I think that's the heavy lifting that needs to be done in garmenting. And I'm happy to report that the trend line is positive.

Speaker #1: We are doing better than last year in terms of margin as well—slightly, but it is better than last year. And our plans are going according to how we have budgeted internally.

Speaker #5: Answer last question on AMD business. So when you're expecting the 18 to 20 percent kind of growth. So this is the India business. I'm assuming.

Soham Samanta: And sir, last question on AMD business. So when you are expecting 18% to 20% kind of growth, this is the India business I am assuming. So what is the Dalco-GFT number we are looking and overall margin, if I compare AMD plus Dalco-GFT, what are the margin we are looking in the range of 15% to 17%? That is the number we are looking for FY27?

Speaker #5: So, what is the DALCO number we're looking at? And overall margin, if I compare AMD plus DALCO, what are the margins we're looking at—in the range of 15 to 17?

Speaker #5: That is the number we're looking for, FY27?

Speaker #1: It will land there, right? DALCO will see slightly lower growth, especially this year, since our first order of business is to integrate the business.

Punit Lalbhai: It will land there. Dalco-GFT will be slightly lower growth, especially this year since our first order of business is to integrate the business, and we will have to start up the higher CapEx cycle. So we are taking those decisions now. So this year should be in that 9% to 10% growth, but next year we are trying to push it into the teens with higher CapEx. So I think Dalco-GFT will start going towards that mid-teen level sometime next year because we are doing those CapExes now, and there is some lead time for that to come on the stream.

Speaker #1: And we will have to start up the higher capex cycle, so we are taking those decisions now. So, this year should be in that 9-10% growth range.

Speaker #1: But next year, we are trying to push it into the teams with higher capex. So, I think DALCO will start going towards that mid-teens level sometime next year.

Speaker #1: Because we are doing those capexes now, there is some lead time for that to come on stream.

Speaker #5: What's the combined margin for this AMD plus DALCO?

Soham Samanta: And sir, combined margin for this AMD plus Dalco-GFT?

Speaker #1: It will be similar, right? So, I mean, DALCO is in that 16–17% range, which has come down slightly because of the petrochemical-linked raw material.

Punit Lalbhai: It will be similar. Dalco-GFT is in that 16%, 17%, which has come down slightly because of the petrochemical-linked raw material, similar problem as our textile business. So it should come back to that 16%+, as our pricing to our customers catch up to the levels required. Right now, we had rapid raw material increase and already fixed pricing. So that normally takes a couple of quarters to catch up once the escalation is through and the new cycle of orders come in at the higher prices.

Speaker #1: Similar problem as our textile business. So, it should come back to that 16-plus percent as our pricing to our customers catches up to the levels required.

Speaker #1: Right now, we had a rapid raw material increase and already fixed pricing. So that normally takes a couple of quarters to catch up once the escalation is through and the new cycle of orders comes in at the higher prices.

Speaker #5: Okay, thank you. Thank you so much.

Soham Samanta: Okay, sir. Thank you so much.

Speaker #2: The next question comes from the line of Surya Naik with Sunidhi Securities. Please go ahead.

Operator 3: The next question comes from the line of Surya Nayak with Sunidhi Securities. Please go ahead.

Operator: The next question comes from the line of Surya Nayak with Sunidhi Securities. Please go ahead.

Speaker #5: Yeah, thank you for the opportunity, and congrats on the great numbers. So, just a couple of questions. One is that, as we discussed last time, there were some lines to be added on the DALCO side.

Surya Narayan Nayak: Yeah. Thank you for the opportunity and congrats on the numbers. Puritai, just a couple of questions. One is, as we discussed last time, there were some lines to be added in the Dalco-GFT site. If you can give some status as to what set of lines we are currently operating and what set of CapEx lined up under Dalco-GFT site this year. Maybe termly, we have the terminal period, we could be ending these lines. You said the

Surya Nayak: Yeah. Thank you for the opportunity and congrats on the numbers. Puritai, just a couple of questions. One is, as we discussed last time, there were some lines to be added in the Dalco-GFT site. If you can give some status as to what set of lines we are currently operating and what set of CapEx lined up under Dalco-GFT site this year. Maybe termly, we have the terminal period, we could be ending these lines. You said the

Speaker #5: So, if you can give some statuses to what set of lines we are currently operating, and what set of capex is lined off on the DALCO side this year.

Speaker #5: I mean, maybe terminally we have terminal period. We could be ending the lines. You said "the."

Operator 3: Sorry to interrupt, Surya. Your voice is not audible. Are you using a hands-free device?

Operator: Sorry to interrupt, Surya. Your voice is not audible. Are you using a hands-free device?

Speaker #1: Very clear.

Speaker #2: I'm sorry to interrupt, Surya. Your voice is not audible. Are you using a hands-free device?

Speaker #5: Just. How clear?

Surya Narayan Nayak: Just hold on a minute. How is it clear?

Surya Nayak: Just hold on a minute. How is it clear?

Speaker #2: A little better. You may go ahead. We'll let you know.

Operator 3: A little better. You may go ahead. We can hear you.

Operator: A little better. You may go ahead. We can hear you.

Speaker #5: Okay, okay, okay. Thank you, thank you, thank you. So Michael, my question was—my question was—now, we discussed last time that we are actually about to increase certain lines in the DALCO.

Surya Narayan Nayak: Okay. Thank you. My question was, we discussed last time that we are actually about to increase certain lines in the Dalco-GFT. If you can quantify the kind of CapEx we are actually going to implement in Dalco-GFT site. Secondly, what is the utilization level there at the moment, and up to what level? My understanding is that with the current running rate, you will be hitting around close to INR 900 crores of revenue there. Whether we will be increasing the to what level going forward? You just indicated that now we are increasing the CapEx lines from below.

Surya Nayak: Okay. Thank you. My question was, we discussed last time that we are actually about to increase certain lines in the Dalco-GFT. If you can quantify the kind of CapEx we are actually going to implement in Dalco-GFT site. Secondly, what is the utilization level there at the moment, and up to what level? My understanding is that with the current running rate, you will be hitting around close to INR 900 crores of revenue there. Whether we will be increasing the to what level going forward? You just indicated that now we are increasing the CapEx lines from below.

Speaker #5: And if you can, could you quantify the kind of capex we are actually going to implement on the DALCO side? And secondly, what is the utilization level there at the moment?

Speaker #5: And to what level? Because my understanding is that, with the current running rate, we'll be hitting close to ₹900 crore in revenue there.

Speaker #5: So, whether we will be increasing the process to what level going forward? You just indicated that we have increased the carrier line carrier from below.

Operator 3: You are still not audible, Surya. I would request you to change your location.

Operator: You are still not audible, Surya. I would request you to change your location.

Speaker #2: Audible, Surya. I would request you to change your location. Management, were you able to get his question?

Surya Narayan Nayak: Hello?

Surya Nayak: Hello?

Operator 3: Management, were you able to get his question?

Operator: Management, were you able to get his question?

Speaker #1: Let me answer that. The question is, what is the capacity at DALCO? And we were planning to increase that capacity. And how is that capacity increase going to happen?

Punit Lalbhai: Let me answer it.

Operator 3: Okay.

Operator: Okay.

Punit Lalbhai: The question is that, what is the capacity at Dalco-GFT, and we were planning to increase that capacity and how that capacity increase is going to happen.

Speaker #1: We are already functioning at high levels of capacity utilization. There might be some capacity that can come on stream through good work on efficiency improvement, which the team is doing.

Surya Narayan Nayak: Correct.

Surya Nayak: Correct.

Punit Lalbhai: We are already functioning at high levels of capacity utilization. There might be some capacity that can come on stream through good work on efficiency improvement, which the team is doing. There are two things that are happening. We have already invested in the upgradation of two of our seven lines. So those CapExes should come on stream within the next 3 to 4 months. That will give us a little bit of capacity starting towards Q4. Then the bigger decision is firing line 8, which is under evaluation right now, and we are positively viewing it, but that decision will be taken in the next month or two. That will add significant capacity. That will increase the capacity by almost 7% to 8% overall.

Speaker #1: But there are two things that are happening. We have already invested in the upgradation of two of our seven lines, so those capexes should come on stream within the next three to four months.

Speaker #1: That will give us a little bit of capacity toward starting Q4. And then the bigger decision is firing line eight, which is under evaluation right now.

Speaker #1: And we are positively viewing it. But that decision will be taken in the next month or two. That will add significant capacity, so that will increase the capacity by almost 7-8% overall.

Speaker #5: So overall, what kind of peak revenue can we expect from FY20?

Surya Narayan Nayak: What kind of peak revenue we can expect from FY2021?

Surya Nayak: What kind of peak revenue we can expect from FY2021?

Speaker #1: '27 will be about between $100 million and $110 million—somewhere in that range we should land.

Punit Lalbhai: Twenty-seven will be about between USD 100 and 110 million, somewhere we should land.

Speaker #5: Okay, okay. And regarding the debt repayment strategy there, whether—because we can pay within three to four years, as last time said.

Surya Narayan Nayak: Okay. Regarding the debt repayments that are scheduled there, because we can pay within three years, three to four years as last time said. Are we on track to reduce the debt of the Dalco-GFT there or it will delay?

Surya Nayak: Okay. Regarding the debt repayments that are scheduled there, because we can pay within three years, three to four years as last time said. Are we on track to reduce the debt of the Dalco-GFT there or it will delay?

Speaker #5: So, are we on track to reduce the rate of the DALCO there, or will we delay?

Speaker #1: We will repay the debt in five years, and there is enough cash flow to service the interest. We'll repay the debt in five years and do the capexes that we want to do.

Punit Lalbhai: We will repay the debt in five years. There is enough cash flow to service interest, repay debt in five years and do the CapExes that we want to. We don't want to reduce our CapEx, because that is very important for growth. We will pay the term loan back in the term that it is required to pay back.

Speaker #1: We don't want to reduce our capex, because that is very important for growth. So, we will pay the term loan back in the term that it is required to be paid back.

Speaker #2: The next question comes from the line of Prerana Junjunwala from LRR Securities. Please go ahead.

Operator 3: The next question comes from the line of Prerna Jhunjhunwala from LRA Securities. Please go ahead.

Operator: The next question comes from the line of Prerna Jhunjhunwala from LRA Securities. Please go ahead.

Prerna Jhunjhunwala: Thank you for the opportunity. Congratulations on strong QMD performance. I had a question on this partnership model that you are pursuing in the garmenting business. How should we look at it in terms of capacity addition, balance sheet investment, and revenue and margin opportunity that it would unfold for us?

Speaker #4: Thank you for the opportunity, and congratulations on strong AMD performance. I had a question on the partnership model that you are pursuing in the garmenting business.

Speaker #4: How should we look at it in terms of capacity addition, balance sheet investment, and the revenue and margin opportunity that it would unfold for us?

Speaker #1: So, it will require some investment. But it will require only a fraction of what it would require for a whole plant, because we will be making only strategic investments to improve the functioning of those plants.

Punit Lalbhai: It will require some investment, but it will require only a fraction of what it would require for a whole plant, because we will be making only strategic investments to improve the functioning of those plants. Right now it is quite early days, so you can say that it is an exciting opportunity. But I think this year we will sort of go conservative to ensure that we are able to execute before we try and scale it up to a very large level. It is important to establish it well, and I think the important thing is that our first efforts have been quite successful. So I'm optimistic about this becoming a model that we will use, and sometimes we may also strategically invest something in these factories. But it will be a fraction of the overall balance sheet impact that a new plant would have.

Speaker #1: Right now, it is quite early days. So you can say that it is an exciting opportunity. But I think it will take maybe this year, we will sort of go conservative to ensure that we are able to execute before we try and sort of scale it up to a very large level.

Speaker #1: It is important to establish it well. And I think the important thing is that our first efforts have been quite successful, so I'm optimistic about this becoming a model that we will use.

Speaker #1: And sometimes, we may also strategically invest in these factories. But it will be a fraction of the overall balance sheet impact that a new plant would have.

Speaker #1: This gives us capacity from multiple regions of the world, which is globally optimized. Each country has its strengths, and we would like to leverage that.

Punit Lalbhai: This gives us capacity from multiple regions of the world, which is globally optimized. Each country has its strengths, and we would like to leverage that. Plus, our customers appreciate that we don't have all our eggs in one basket, so this ticks many boxes. However, the important thing is to do it right so that we don't make mistakes and all the benefits that we think we will get through this actually accrue and are not spoiled by execution-related failures. So we are going in a conservative yet optimistic way on this model, and I think as we go forward, more and more clarity will emerge on exactly how much of this will be. But it can easily, in my mind, be 20% of the overall business in the medium term.

Speaker #1: Plus, our customers appreciate that we don't have all our eggs in one basket, so this ticks many boxes. However, the important thing is to do it right so that we don't make mistakes, and all the benefits that we think we will get through this actually accrue.

Speaker #1: And are not spoiled by execution-related failures. So we are going in a conservative yet optimistic way on this model. And I think as we go forward, more and more clarity will emerge on exactly how much of this will be.

Speaker #1: But it can easily, in my mind, be 20% of the overall business in the medium term. I don't want to give a fixed timeline by when it will reach that.

Punit Lalbhai: I don't want to give a fixed timeline by when it will reach that, but that's the kind of scale we are thinking overall. Maybe 30% if we are very successful. So that's how you should think about it, and I'll keep giving an update on how we are doing here overall.

Speaker #1: But that's the kind of scale we are thinking overall—maybe 30 if we are very successful. So that's how you should think about it.

Speaker #1: And I'll keep giving you an update on how we are doing here.

Speaker #4: I was just—actually, I was not looking at what kind of scale you will be achieving through this model. I just wanted to understand how we should look at it again.

Prerna Jhunjhunwala: Actually, I was not looking at what kind of scale you will be achieving through this model. I just wanted to understand how should we look at it against the investment that you're doing in your own capacity. So what kind of return ratios you can make, and what kind of margin should we look at it? Because it will not be similar to what you make in your own factory because it is shared or leased.

Speaker #4: The investment that you're doing in your own capacity—so, what kind of return ratios can you make? And what kind of margin should we look at?

Speaker #4: Because it will not be similar to what you make in your own factory, because it is shared.

Speaker #1: Our factories, but there are no— it is coming at marginal fixed cost, right? So there is a much smaller fixed cost associated. So the return metrics will be very high on this sort of model.

Punit Lalbhai: Our factories, it is coming at marginal fixed cost, right? There is much smaller fixed cost associated. The return metrics will be very high on this sort of model because capital employed is very low. So return on capital employed will be high. Maybe margin will be 2, 3 percentage points lower because two people's margins have to be accounted for. But it gives the customer de-risking, and it gives us the advantages of a new geography. As I mentioned, each geography has its own strengths and own product signature, which we can also benefit from. So overall return metrics, it will actually improve from a return on capital employed perspective. EBITDA margin will be slightly lower, and it can be in that high single digit type 2 level if all goes well.

Speaker #1: Because capital employed is very low, the return on capital employed will be high. Maybe the margin will be two or three percentage points lower, because two people's margins have to be accounted for.

Speaker #1: But it gives the customer derisking, and it gives us the advantages of a new geography. And as I mentioned, each geography has its own strengths.

Speaker #1: And our own product signature, which we can also benefit from. So, overall, return metrics will actually improve from a Return on Capital Employed perspective.

Speaker #1: EBITDA margin will be slightly lower, and it can be in that high single-digit type level if all goes well.

Speaker #4: Okay, my second question is on Denim. You are already at 17.5 million meters, and you mentioned you're running at almost full utilization.

Prerna Jhunjhunwala: Okay. My second question on Denim. You are ordered with 17.5 million meters, and you mentioned you are running at almost full utilization. Is it ideal to assume that your capacity is improved to 70 million meters currently from 60 million earlier, or it is staying disconnected?

Speaker #4: So, is it ideal to assume that your running capacity has improved to 70 million meters currently, from 60 million earlier? Or is there any disconnect?

Punit Lalbhai: In some way or form, we are doing some debottlenecking type CapEx that will help us do that. Karan, you want to give a perspective on the overall market and demand scenario and where do you see Denim orders being now and in the medium term?

Speaker #1: In some way or form, we are doing some de-bottlenecking-type CAPEXes that will help us do that. Karen, do you want to give a perspective on the overall market and demand scenario, and where you see denim orders being now and in the medium term?

Speaker #5: Sure. Thank you for that, Pureshbai. Let me talk a little bit about the denim business first. As we all see, the denim business is at its all-time high in the last so many quarters.

Karan Ojha: Sure. Thank you for that, Kunal. Let me talk a little bit about the Denim business first. As we all see, the Denim business is at its all-time high in last so many quarters. The main reason for that is, first of all, geographical expansion that we have done. Verticalization that has played into the Denim space, that has been extremely important. Third is we going into multiple geographies through differential routes, giving customers the country of origin that they want. So we are going more closer to the customers. That gives them flexibility. That gives us flexibility of offering different kind of products from different geographies. Third is we are able to capitalize on the scale of the region.

Speaker #5: The main reason for that is, first of all, the geographical expansion that we have done, and verticalization that has played into the denim space. That has been extremely important.

Speaker #5: Third is, we are going into multiple geographies through differential routes, giving customers the country of origin that they want. So, we are going closer to the customers.

Speaker #5: That gives them flexibility, and that gives us flexibility in offering different kinds of products from different geographies. Third, we are able to capitalize on the scale of the region.

Speaker #5: Fourth is that we have started to open up design hubs globally, which connects us better to the customer, and in real time we are able to service the customers and close our development process, which is extremely important.

Karan Ojha: Fourth is that we have started to open up design hubs globally, which connects us better to the customer, and in real time, we are able to service the customers and close our development process, which is extremely important. So these design hubs coming up in multiple geographies. We are strengthening our design hub in the US. We have added in UK. We are also looking at one or two locations in Europe, looking at the EU FTA coming in place. You put all of these together, your verticalization happening, your product development is happening. We have gotten Japanese consultants and designers on board, so the product has become a little premium. With our design hubs coming in, verticalization strengthening, I think all of this gives us very positive momentum for the next couple of quarters, I would say.

Speaker #5: So, these design hubs are coming up in multiple geographies. We are strengthening our design hub in the US. We have added in the UK and we are also looking at one or two locations in Europe.

Speaker #5: Looking at the EUFPA coming in place. So, if you put all of these together—your verticalization happening, your product development happening—we have gotten Japanese consultants and designers on board.

Speaker #5: So, the product has become a little premium. With our design hubs coming in and verticalization strengthening, I think all of this gives us very positive momentum for the next couple of quarters, I would say.

Speaker #5: Till the year end, we have very good visibility on our Denim business. Likewise, on the wovens business, also, this is typically a lower quarter.

Karan Ojha: In the year-end, we have very good visibility on our Denim business. Likewise, on the wovens business also, this is typically a lower quarter, Q1. But if you see, we have clocked the highest ever numbers in Q1, which are typically seen in H2. So the volume has been extremely good. We have been taken a little bit on the lower side because of the sudden spike in raw materials. But that also is pretty much the strategy in place, how we will be back to our numbers in the medium term, but it will take some long-term time to get back to where we were. But yes, we see a very strong order pipeline, so that gives us sufficient, enough confidence.

Speaker #5: Quarter one. But if you see, we have clocked the highest-ever numbers in quarter one, which are typically seen in H2. So the volume has been extremely good.

Speaker #5: We have been taken a little bit on the lower side because of the sudden spike in raw materials. But that also is pretty much the strategy in place for how we'll be back to our numbers in the medium term.

Speaker #5: But it will take some time in the long term to get back to where we were. But yes, we see a very strong order pipeline, so that gives us sufficient confidence.

Speaker #4: This is helpful. Just a follow-up on this. I wanted to understand, what is the role of Bangladesh here? Because Bangladesh is also facing issues with respect to power and other issues.

Prerna Jhunjhunwala: This is helpful. Just to follow up on this, wanted to understand what is the role of Bangladesh over here, because Bangladesh is also facing issues with respect to powers and other issues. Is that also helping our Denim business procurement as their capacities run below normal utilization levels? What is our export share to Bangladesh currently?

Speaker #4: Is that also helping our denim business procurement, as their capacity runs below normal utilization levels? And what is our export share to Bangladesh currently?

Speaker #1: In denim, it is quite high. So, maybe 50% of our denim goes to Bangladesh. Bangladesh is doing quite well, and we've entered a reasonably stable period.

Karan Ojha: In Denim, it is quite high. Maybe 50% of our Denim goes to Bangladesh. Bangladesh is doing quite well. We have entered a reasonably stable period. Our virtual sort of partnerships are also, there is one of them is in Bangladesh. The advantage that Bangladesh has is the garmenting capacity and the ability to scale that up a lot faster because of readily available labor. So that is the strength of Bangladesh, and we have been able to use that to our advantage. So Bangladesh will be important now and in the future. Of course, lot of brands want to de-risk Bangladesh because their sourcing footprint is very high in Bangladesh.

Punit Lalbhai: In Denim, it is quite high. Maybe 50% of our Denim goes to Bangladesh. Bangladesh is doing quite well. We have entered a reasonably stable period. Our virtual sort of partnerships are also, there is one of them is in Bangladesh. The advantage that Bangladesh has is the garmenting capacity and the ability to scale that up a lot faster because of readily available labor. So that is the strength of Bangladesh, and we have been able to use that to our advantage. So Bangladesh will be important now and in the future. Of course, lot of brands want to de-risk Bangladesh because their sourcing footprint is very high in Bangladesh.

Speaker #1: And our virtual sort of partnerships are also—there's one of them in Bangladesh. And the advantage that Bangladesh has is the garmenting capacity and the ability to scale that up a lot faster because of readily available labor.

Speaker #1: So, that is the strength of Bangladesh, and we have been able to use that to our advantage. So, Bangladesh will be important now and in the future.

Speaker #1: Of course, a lot of brands want to de-risk Bangladesh because their sourcing footprint is very high in Bangladesh. But because we will be multi-country, brands are willing to give us a higher ranking in terms of priority for what business they want to do through Bangladesh.

Karan Ojha: But because we will be multi-country, brands are willing to give us a higher ranking in terms of priority of what business they want to do through Bangladesh, because we give them Bangladesh plus India plus maybe Egypt. So having that three-country kind of go-to-market, it puts you out of the quota system in a way, because it helps the customer reduce risk.

Punit Lalbhai: But because we will be multi-country, brands are willing to give us a higher ranking in terms of priority of what business they want to do through Bangladesh, because we give them Bangladesh plus India plus maybe Egypt. So having that three-country kind of go-to-market, it puts you out of the quota system in a way, because it helps the customer reduce risk.

Speaker #1: Because we give them Bangladesh plus India plus maybe Egypt. So, having that three-country kind of go-to-market is the... it puts you out of the quota system.

Speaker #1: In a way, because it helps the customer reduce risk.

Speaker #4: Understood. Thank you. I'll come back to the question queue for follow-up. Thanks so much for the detailed answers.

Prerna Jhunjhunwala: Understood. Thank you. I will come back to the question queue for follow-ups. Thanks so much for your answers.

Speaker #3: The next question comes from the line of Rajat Badeva with Kizuna Wealth. Please go ahead.

Operator 3: The next question comes from the line of Rajat Badewa with Kizuna Wealth. Please go ahead.

Operator: The next question comes from the line of Rajat Badewa with Kizuna Wealth. Please go ahead.

Speaker #6: Yeah, hi sir. Thanks for the opportunity. My first question is on the demand side of the AML business in India versus Bangladesh. What are the management's thoughts regarding increasing the market share of Delco, given that currently it's at 4%?

Rajat Badewa: Yeah. Hi, sir. Thanks for the opportunity. My first question on the demand side of the AMD business in India versus in Bangladesh. What are the management thought process regarding to increase the market share of the Dalco-GFT given that currently it is 4%? So how are thought process going on the Dalco-GFT side, and what the demand outlook in the US in mobility and in the filtration business?

Rajat Baldewa: Yeah. Hi, sir. Thanks for the opportunity. My first question on the demand side of the AMD business in India versus in Bangladesh. What are the management thought process regarding to increase the market share of the Dalco-GFT given that currently it is 4%? So how are thought process going on the Dalco-GFT side, and what the demand outlook in the US in mobility and in the filtration business?

Speaker #6: So, how is our thought process going on the Delco side, and what is the demand outlook in the US in mobility and in the filtration business?

Speaker #1: So, if I understand—your line wasn't very clear—but if I paraphrase your question, you are asking about demand in India and the US, especially on Delco.

Karan Ojha: If I understand, your line wasn't very clear, but if I paraphrase your question, you are asking about demand in India and US, especially on Dalco-GFT.

Punit Lalbhai: If I understand, your line wasn't very clear, but if I paraphrase your question, you are asking about demand in India and US, especially on Dalco-GFT.

Speaker #6: Yeah.

Speaker #1: Which is the—what is our growth plan there? So, I'll answer the Delco question first. Our plan is to maintain our leadership in automotive.

Rajat Badewa: Yeah

Rajat Baldewa: Yeah

Karan Ojha: Which is what is our growth plan there? I will answer the Dalco-GFT question first. Our plan is to maintain our leadership in automotive

Punit Lalbhai: Which is what is our growth plan there? I will answer the Dalco-GFT question first. Our plan is to maintain our leadership in automotive

Rajat Badewa: Correct

Rajat Baldewa: Correct

Speaker #1: And bring new growth through the new capacity that is coming, which needs to come through the geotextile business, where there is a lot of potential growth that will happen in the US market because the infrastructure bill has been signed and there is a good amount of development happening.

Karan Ojha: and bring new growth through the new capacity that is coming, needs to come through the Geotextile business, where there is a lot of potential growth that will happen in the US market because the infrastructure bill has been signed and there is good amount of development happening on roads and products where Geotextiles are consumed. The growth will come through Geotextiles, and we have to maintain leadership in auto, and we have to start the process of taking our filtration business, which is India-centric today, and use the Dalco-GFT base to sort of increase that business in the US. These would be the strategic priorities. India demand remains robust for Advanced Materials.

Punit Lalbhai: and bring new growth through the new capacity that is coming, needs to come through the Geotextile business, where there is a lot of potential growth that will happen in the US market because the infrastructure bill has been signed and there is good amount of development happening on roads and products where Geotextiles are consumed. The growth will come through Geotextiles, and we have to maintain leadership in auto, and we have to start the process of taking our filtration business, which is India-centric today, and use the Dalco-GFT base to sort of increase that business in the US. These would be the strategic priorities. India demand remains robust for Advanced Materials.

Speaker #1: On roads and products where geotextiles are consumed, the growth will come through geotextiles, and we have to maintain leadership in auto. We also have to start the process of taking our filtration business, which is India-centric today, to the next level.

Speaker #1: And use the Delco base to sort of increase that business in the US. So, these would be the strategic priorities. And India demand remains robust for advanced materials. India continues to develop as a strong—every quarter, the legislation is getting stronger.

Gurpreet Singh Bhatia: India continues to develop as a strong. Every quarter, the legislation is getting stronger, the government procurement is increasing, and there will come a time when India will be a very large market for these products. We are well-positioned to take advantage of that because we already have a strong base across two continents.

Punit Lalbhai: India continues to develop as a strong. Every quarter, the legislation is getting stronger, the government procurement is increasing, and there will come a time when India will be a very large market for these products. We are well-positioned to take advantage of that because we already have a strong base across two continents.

Speaker #1: Government procurement is increasing, and there will come a time when India will be a very large market for these products. So, we are well positioned to take advantage of that.

Speaker #1: Because we already have a strong base across two continents.

Rajat Badewa: Good. Okay. My second question is that what was our export mix from the Europe?

Rajat Baldewa: Good. Okay. My second question is that what was our export mix from the Europe?

Speaker #6: Okay, and for my second question, what was our export mix from Europe?

Speaker #1: Exports to Europe are quite small today. It will be at that 8% to 10% margin across the group. Both in textiles and garmenting, it is slightly higher.

Karan Ojha: Exports to Europe is quite small today. It will be at that 8% to 10% margin across the group, both in textile. In garmenting, it is slightly higher, but our fabric would be about 8%, 9%, and Advanced Materials also, we are at that 8%, 9%, 10% range. The FTA will help a lot, I think, going forward, but it will take maybe 18 to 20 months to actually convert the

Punit Lalbhai: Exports to Europe is quite small today. It will be at that 8% to 10% margin across the group, both in textile. In garmenting, it is slightly higher, but our fabric would be about 8%, 9%, and Advanced Materials also, we are at that 8%, 9%, 10% range. The FTA will help a lot, I think, going forward, but it will take maybe 18 to 20 months to actually convert the

Speaker #1: But our fabric would be about 8–9%. And advanced material, also, we are at that 8–10% range, which the FTA will help a lot, I think, going forward.

Speaker #1: But it will take maybe 18 to 20 months to actually convert the initial promising conversations to any significant business. But as you mentioned, currently we are investing.

Punit Lalbhai: initial promising conversations to any significant business. As you mentioned, Karan, we are investing. We started the UK studio on the textile business side. We are looking at one or two other locations in Europe to open design studios, have a larger sales and marketing presence. For our Human Protection business in Advanced Materials, we have sort of done some hiring to have a local presence in the UK, and we are currently looking at Europe there also. So we are strengthening our base in Europe so that it can become a larger percentage of our business going forward, and we can take full advantage of the free trade agreement going forward.

Speaker #1: We started the UK studio on the textile business side. We've started and are looking at one or two other locations in Europe to open design studios.

Speaker #1: We have sales and have a larger sales and marketing presence. For argument, in the protection business in advanced materials, we have done some hiring to have a local presence in the UK.

Speaker #1: And we are currently looking at Europe there also. So we are strengthening our base in Europe so that it can become a larger percentage of our business going forward.

Speaker #1: And we can take full advantage of the free trade agreement going forward.

Rajat Badewa: So, is it fair to assume that our realization in the garment business, it will be in a moderate range? Because in Europe the realization is quite lower as compared to the US.

Rajat Baldewa: So, is it fair to assume that our realization in the garment business, it will be in a moderate range? Because in Europe the realization is quite lower as compared to the US.

Speaker #6: So sir, is it fair to assume that our realization in the garment business will be in a moderate range, because in Europe the realization is quite lower as compared to the US?

Speaker #1: No, I don't think that is true. I think it depends more on the customer than the region. So I don't think there will be any change in realization.

Punit Lalbhai: No, I don't think that is true. I think it depends more on customer than region. I don't think there will be any change in realization. The way to think about our garmenting business is that it will be a medium teens growth and we have to get to double-digit EBITDA, whether it's coming from the US or Europe. There will not be much difference in realization and margin. But we want Europe to be an overall larger percentage of our portfolio because it is an important region into which we are currently under-penetrated.

Speaker #1: And the way to think about our garmenting business is that it will be a medium-term growth. And we have to get to double-digit EBITDA.

Speaker #1: Whether it’s coming from the US and/or Europe, there will not be much difference in realization and margin. But we want Europe to be an overall larger percentage of our portfolio.

Speaker #1: Because it is important, it is an important region into which we are currently under-penetrated.

Speaker #6: Okay, sir. Great. Thank you very much, sir, and best wishes for the future.

Rajat Badewa: Okay, sir. Great. Thank you very much, sir. And best wishes for the full year.

Rajat Baldewa: Okay, sir. Great. Thank you very much, sir. And best wishes for the full year.

Speaker #1: Thank you.

Punit Lalbhai: Thank you.

Speaker #3: The next question comes from the line of Vishal Mehta with IIFL Capital. Please go ahead.

Operator 3: The next question comes from the line of Vishal Mehta with IIFL Capital. Please go ahead.

Operator: The next question comes from the line of Vishal Mehta with IIFL Capital. Please go ahead.

Speaker #5: Yeah, thank you for the opportunity, and congratulations on a strong set. My questions are more on the AMD side of the business. While we get from the presentation that the end-use applications of defense and renewables in composites and mobility have done well, could you give—

Vishal Mehta: Yeah. Thank you for the opportunity and congratulations on a strong set. My questions are more on the AMD side of business. If you could give, while we get from the presentation that the end-use applications of defense and renewables in composites and mobility have done well, but if you could give more color on what sort of products are we doing in each of these segments and what sort of products are having such a high demand that we are serving. And second part to this question would be, out of the three sub-segments, probably industrial seem to be one where we probably don't have exposure to these high-growing end-use applications as such.

Speaker #5: But if you could give more color on what sort of products we are doing in each of these segments, and what sort of products are seeing such high demand that we are serving.

Speaker #5: And the second part to this question would be: out of the three subsegments, probably industrial seems to be the one where we probably don't have exposure to these high-growing end-use applications as such.

Speaker #5: So, would it be fair to assume that Industrials would probably grow at a stable growth rate of 8% to 10%, and the other two subsegments—HP and Composites—which have the tailwinds of Defense, Mobility, and Renewables, continue the higher growth trajectory?

Vishal Mehta: So would it be fair to assume that industrials probably would grow at a stable growth rate of 8% to 10% and the other two sub-segments, Human Protection and composites, which have the tailwinds of defense mobility and renewables, continue the higher growth trajectory? Yeah.

Speaker #5: Yeah.

Speaker #1: Thanks for the question. I wouldn't agree with that statement. The lower growth in industrial is purely a function of challenges in getting the capex off the ground in Q1.

Punit Lalbhai: Thanks for the question. I wouldn't agree with that statement. The lower growth in industrial is purely a function of challenges on getting the CapEx off the ground in Q1. We had shipping delays, we had execution delays, we had even flooding. So, we are one quarter late in our capacity expansion in industrial, and we have not invested in the last year significantly in industrial. The investments are going in this year. So this year you may be right that the growth will be slightly lower compared to Human Protection and composites, but I don't see any challenge to the medium-term growth and why industrial cannot grow at 20%. As I've consistently mentioned that we are in an execution-constrained environment rather than a market-constrained environment. So there are enough opportunities to grow in industrial, and in the medium term, it will catch up as our CapExes are catching up.

Speaker #1: We had shipping delays. We had execution delays. We even had flooding. So, we are one quarter late in our capacity expansion in industrial.

Speaker #1: And we have not invested significantly in industrial in the last year. The investments are going in this year. So, this year, you may be right that the growth will be slightly lower compared to HP and composites.

Speaker #1: But I don't see any challenge to the medium-term growth, and why industrial cannot grow at 20%. As I've consistently mentioned, we are in an execution-constrained environment rather than a market-constrained environment.

Speaker #1: So there are enough opportunities to grow in industrial, and in the medium term, it will catch up as our capexes are catching up. Referring to your question around the composite business and which are the segments to which our products go.

Punit Lalbhai: Referring to your question around composite business and which are the segments to which our products go, you kind of answered it yourself. The mobility, renewable energy, and infrastructure, those would be the three big areas. We have our pultrusion business that makes profiles for building and construction industry and infrastructure industry. We have our roll good reinforcement business, which mainly goes to where renewable energy is a big end-user market, among other industrial uses as well. And then we have the molding business for mobility. Those would be the current volume drivers. The future, of course, is aerospace, defense, and a carbon-led future, which of course is in its very nascent stages, and it may take some years before it becomes a large part of the business. But we are putting in efforts to scale that business up.

Speaker #1: You kind of answered it yourself—the mobility, renewable energy, and infrastructure. Those would be the three big areas. We have our Protrusion business that makes profiles for the building and construction industry.

Speaker #1: And infrastructure industry. We have our roll good reinforcement business, which mainly goes through — goes to where renewable energy is a big end user market.

Speaker #1: Among other industrial uses as well. And then we have the molding business for mobility. Those would be the current volume drivers. The future of course is aerospace defense and a carbon led future which of course is in its very nascent stages and it may take some years before it becomes a large part of the business.

Speaker #1: But we are putting in efforts to scale that business up. So that's where we are in terms of products and where our composite products go.

Punit Lalbhai: So that is where we are in terms of products and where our composite products go. As far as industrial is concerned, it is a filtration business mainly, and that is a very large market and a very profitable market. On a run rate basis, our growth will be okay in the medium term, and we have ample opportunity and we are investing significantly. So this year, there is a disproportionate allocation of investment towards industrial. Also, one other thing happened, there is some common infrastructure between industrial and Human Protection, especially our yarn creation capacities. A lot of them got diverted towards the Human Protection business because there was a sudden spike in orders there. To that extent, we could not support the industrial business to some extent. So many reasons why the industrial growth is not there, but none of them are market driven.

Speaker #1: As far as industrial is concerned, it's a filtration business mainly. And that is a very large market, and a very profitable market. So, on a run rate basis, our growth will be okay in the medium term.

Speaker #1: And we have ample opportunity, and we are investing significantly. So this year, there is a disproportionate allocation of interest investment towards industrial. Also, one other thing happened.

Speaker #1: There is some common infrastructure between industrial and human protection, especially our yarn creation capacities. A lot of them got diverted towards the human protection business because there was a sudden spike in orders there.

Speaker #1: So, to that extent, we couldn't support the industrial business to some extent. There are many reasons why the industrial growth is not there, but none of them are market driven.

Speaker #1: It is more of our internal capacity-driven reason, and we are correcting that quickly. So, the growth rate will catch up there.

Punit Lalbhai: It is more our internal capacity driven reason, and we are correcting that quickly, so growth rate will catch up there.

Speaker #4: And if I may just add, on the industrial, with the strengthening of emission norms, we are well prepared with the portfolio to lead and deliver solutions for high-temperature applications and reduced emissions for the next three to four years.

Gurpreet Singh Bhatia: If I may just add on the industrial, with the stringening of emission norms, we are well prepared with the portfolio to lead and deliver solutions for high temperature solutions and reduce emissions for the next 3, 4 years. That is a portfolio we have been working on over the last 12 months, which will get our portfolio from mid-tier to top-tier products. India strengthening its norms is another great opportunity that the team has been working on to expand. The last is the verticalization from felt to bags. We are enhancing our end user complete solution for installation, especially in the NN context. So very bullish on both profitability and growth once the CapEx comes on stream in this quarter. We should see mid-teens to high teens growth in Q4 onwards, when the utilization of new CapEx scales up.

Speaker #4: That's a portfolio we've been working on over the last 12 months, which will get our portfolio from mid-tier to top-tier products. India strengthening its norms is another great opportunity that the team has been working on to expand.

Speaker #4: And the last is the verticalization from felt to bags. We are enhancing our end-user complete solution for installation, especially in the inland context.

Speaker #4: So, very bullish on both profitability and growth once the capex comes on stream in this quarter. We should see mid-teens to high-teens growth in Q4 onwards, once the utilization of new capex scales up.

Speaker #5: Sure. Thanks. Thanks for that. Just a follow-up on this—if you can also help with some color on what product types in defense, especially on the Indian defense side, that we are catering to.

Vishal Mehta: Sure. Thanks. Thanks for that. Just a follow-up on this, if you can also help with some color on what product types and defense, especially on the Indian defense side that we are catering to. Another one on the Composites. I was probably reading somewhere that there seems to be some application of glass-based composite material in semiconductors and wafers. So, is that an opportunity that we are participating in or do we have the capability of?

Speaker #5: And another one on the composites. I was probably reading somewhere that there seems to be some application of glass-based composite material in semiconductors and wafers.

Speaker #5: So, is that an opportunity that we are participating in, or do we have the capability for it?

Speaker #4: So let me answer the defense question first. Our whole philosophy is around co-creating solutions for our customers. And when we look at the defense segment, there are three sets of bodies that we work on.

Gurpreet Singh Bhatia: Let me answer the defense question first. Our whole philosophy is around co-creating solutions for our customers. When we look at the defense segment, there are three set of bodies that we work on. One is the product development, which are the agencies like DPAS, DRDOs, and the research agencies. Second is the user themselves, which is the forces and the paramilitary, the Indian Navy, Indian Air Force, and the Ministry of Home Affairs services. Third is us as a partner for us. We start our development journey right at the basic requirement stage that our forces need. We have been doing that work now for offering solutions from innovative fabrics and designs for uniforms to higher requirements of FR or fire resistant coveralls and products for the Indian Air Force and Indian Navy. Moving upwards to extreme cold weather clothing and NBC suits type of clothing.

Speaker #4: One is the product development, which includes agencies like DPAS, DRDO, and the research agencies. Second is the users themselves, which are the forces and the paramilitary.

Speaker #4: The Indian Navy, Air Force, and the MHA serve us. And third is us as a partner for us. We start our development journey right at the basic requirements stage that our forces need.

Speaker #4: We have been doing that work now, offering solutions with innovative fabrics and designs for uniforms, to meet the higher requirements of FR, or fire-resistant, coveralls and products for the Indian Air Force and Indian Navy.

Speaker #4: Moving upwards to extreme cold weather clothing and NBC suits—these are the types of clothing. So, virtually everything that we do is built on this platform of working quite closely for the requirements of our troops.

Gurpreet Singh Bhatia: It's virtually everything that we do is built on this platform of working quite closely for the requirements of our troops. The second philosophy we work on is offering solutions which can be substituting for imports for our defense services. That's the broad-based portfolio that we are working on, and we are continuously looking to enhance the solutions that we provide to the forces. On the glass fabric side, on the composite side, our focus is on solutions for renewables, building and construction, and mobility. I don't think we have anything to offer on the semiconductors.

Speaker #4: The second philosophy we work on is offering solutions which can be substitutes for imports for our defense services. So that's the broad-based portfolio that we are working on.

Speaker #4: And we are continuously looking to enhance the solutions that we provide to the forces. On the glass fabric side, on the composite side, our focus is on solutions for renewables.

Speaker #4: Building and construction, and mobility. I don't think we have anything to offer on the semiconductors. You read right.

Punit Lalbhai: You read right that semiconductors do use composites, but currently in our Indian context, the customer base is quite limited there, and the technology platforms required for that are very different from the ones we have currently invested in. Electronics and composites is a good space to look at, and I think if we have to enter it, the first place we will enter it is in the reinforcement side, where currently we do a lot of roving-based reinforcement fabrics that go into, say, wind energy. There are yarn-based reinforcements that go into printed circuit boards, et cetera, which could be the first place where we start to experiment. As of now, it's not a very large segment for us. We are focused on the three, four segments that I mentioned earlier.

Speaker #3: Semiconductors do use composites. But currently, in our Indian context, the customer base is quite limited there. And the technology platforms required for that are very different from the ones we have currently invested in.

Speaker #3: So, electronics and composites is a good space to look at. And I think if we have to enter it, the first place we will enter is on the reinforcement side.

Speaker #3: Currently, we do a lot of roving-based reinforcement fabrics that go into, say, wind energy. There are also yarn-based reinforcements that go into printed circuit boards, etc.

Speaker #3: This could be the first place where we start to experiment, but as of now, it's not a very large segment for us. We are focused on the three or four segments that I mentioned earlier.

Speaker #5: Sure. Very detailed and helpful. Just one last question from my side on the garmenting piece. What are the capacities that we currently have, and what sort of expansions are we planning outside of the partnership model that we are seeking?

Vishal Mehta: Sure. Very detailed and helpful. Just last question from my side on the garmenting piece. The capacities that we currently have, and what sort of expansions are we planning outside of the partnership model that we are seeking? That would be my last question.

Speaker #5: Yeah, that would be my last question.

Speaker #3: I don't want to give a very detailed answer on the partnership model until I'm fully confident that we are on firm ground. So, I think I'll wait a couple of quarters before finalizing that medium-term view on the partnership model.

Punit Lalbhai: I don't want to give a very detailed answer on the partnership model till I'm fully confident that we are on firm ground. I think I'll wait a couple of quarters before finalizing that medium-term view on the partnership model. As far as our own capacities are concerned, we are getting a factory started in Varanasi, next month in fact, and we are debottlenecking two or three of our brownfield factories through automation and starting of second shift. Capacity addition is on pace with our long-term objective to grow 15%. I think number of pieces and all, as you saw this quarter, number of pieces went up, but revenue didn't go up much. I think focusing on number of pieces may not be the right way to look at this business.

Speaker #3: As far as our own capacities are concerned, we are getting a factory started in Varanasi—next month, in fact. And we are debottlenecking two or three of our brownfield factories through automation and the starting of a second shift.

Speaker #3: So, capacity addition is on pace with our long-term objective to grow 15%. I think the number of pieces and all—as you saw this quarter, the number of pieces went up.

Speaker #3: But revenue didn't go up much, so I think focusing on the number of pieces may not be the right way to look at this business.

Speaker #3: Are we achieving a mid-teens kind of growth in the medium term? That is what we should look at, and we are on track with the capacities to reach that going forward.

Punit Lalbhai: Are we achieving a mid-teens kind of growth in the medium term is what we should look at. We are on track with the capacities to hit that going forward.

Speaker #5: Sure. Fair enough. Thanks. Thanks for those.

Vishal Mehta: Sure. Fair enough. Thanks for those.

Speaker #1: The next question comes from the line of Mithun Ashwath with Kiva Advisors. Please go ahead.

Operator 3: The next question comes from the line of Mithun Aswath with Kivah Advisors. Please go ahead.

Operator: The next question comes from the line of Mithun Aswath with Kivah Advisors. Please go ahead.

Speaker #5: Yeah, just want to understand about the Advanced Materials division. Now you've made this acquisition as well, and the business is scaling up quite well.

Mithun Aswath: Yeah. I just want to understand on the Advanced Materials Division. Now you've made this acquisition as well, and the business is scaling up quite well. Would there be some point where you would want to de-merge this business and grow it individually? Or do you would remain as a division of the business because there are some benefits also that you accrue because of being one entity. Just wanted your thoughts on that.

Speaker #5: Would there be some point where you would want to demerge this business and grow it individually? Or would you remain as a division of the business because there are some benefits also that you have proved because of being one entity?

Speaker #5: I just wanted your thoughts on that.

Speaker #3: So we've housed the advanced materials business as a separate entity, as a wholly owned subsidiary of the parent. And that is with a view to doing some sort of capital action in the future.

Punit Lalbhai: We've housed the Advanced Materials business as a separate entity, as a wholly owned subsidiary of the parent. That is with a view of doing some sort of capital action in the future. What nature that is not yet decided upon. Whether it remains to be under the parent entity or separately, we will think about that at the right time. Right now, our focus is on growing the business at close to 20% and achieving the kind of return profile that we have sort of set ourselves to achieve. So the focus right now is on building the business, and I think in the next couple of years, we will figure out if and when some capital action is required.

Speaker #3: What nature that is, is not yet decided upon. Whether it remains under the parent entity or separately, we will think about that at the right time.

Speaker #3: Right now, our focus is on growing the business at close to 20%, and achieving the kind of targets that we have set for ourselves to achieve.

Speaker #3: So, the focus right now is on building the business, and I think in the next couple of years we will figure out if and when some capital action is required.

Speaker #3: But I don't think anything is in the offing for the next couple of years. We will have to keep our heads down and just focus on growth and winning in the market.

Punit Lalbhai: But I don't think anything is in the offing for the next couple of years, as we will have to have our head down and just focus on growth and winning in the market.

Speaker #5: Thank you.

Mithun Aswath: Thank you.

Speaker #1: The next question comes from the line of Shirish Pardesi with Motilal Oswal Financial Services. Please go ahead.

Operator 3: The next question comes from the line of Shirish Pardeshi with Motilal Oswal Financial Services. Please go ahead.

Operator: The next question comes from the line of Shirish Pardeshi with Motilal Oswal Financial Services. Please go ahead.

Speaker #5: Hi team, good afternoon. Thanks for the opportunity, and really impressive performance—congratulations on that. I am reading slide 15, where we have given the capital employed in the AMD business.

Shirish Pardeshi [Head of Research: Hi, team. Good afternoon. Thanks for the opportunity and really impressive performance. Congratulations for that. I am reading slide 15, where we have given the capital employed in AMD business. AMD India is INR 853, Dalco-GFT is INR 326. I am little curious, if the business growth is executed well, how this number should look like for next one year?

Speaker #5: So, AMD India is 853. Dalco is 2,326. I'm a little curious: if the business growth is executed well, how should this number look over the next one year?

Speaker #3: I think both businesses are very high return on capital employed businesses. And yes, there is always some headroom to improve. So it can go up by a few percentage points in terms of ROCE. If we are very efficient, we can maybe squeeze out 30–40 crores of capital employed.

Punit Lalbhai: Well, I think the both businesses are at very high return on capital employed business. Yes, there is always some headroom to improve. So, it can go up by a few percentage points in terms of ROCE. If we are very efficient, we can maybe squeeze out INR 30, 40 crores of capital employed. But right now we are doing actually the opposite because of the uncertain raw material environment and price fluctuations happening. We are actually going longer than normal on raw material just so that we can protect our customer commitments. Availability and price both become an issue in such a geopolitically uncertain and shipping availability cost. To be able to service the business well, we have actually sacrificed some working capital efficiency, and focused on having high reliability and performance for our customers' expectations.

Speaker #3: But right now, we are actually doing the opposite because of the uncertain raw material environment and price fluctuations happening. We are actually going longer than normal on raw material.

Speaker #3: Just so that we can protect our customer commitments. Availability and price both become an issue in such a geopolitically uncertain environment—shipping, availability, cost.

Speaker #3: So, to be able to service the business well, we have actually sacrificed some working capital efficiency and focused on having high reliability and performance for our customers’ expectations.

Speaker #5: That's helpful. I just wanted to be doubly sure. Is this the optimum level, or can this go up more substantially?

Shirish Pardeshi [Head of Research: That is helpful. I just wanted to re-double sure. Is it this optimum level, or this can go up more substantially?

Speaker #3: We are at around 90, between 90 and 100 days of working capital in the Advanced Materials business. Dalco is slightly less.

Punit Lalbhai: We are at around between 90 and 100 days of working capital in the Advanced Materials business. Dalco-GFT is slightly less. Dalco-GFT would be around 60 days. I think Dalco-GFT is more like closer to 50 than 60.

Speaker #3: Dalco would be around 60 days. I think we will be Dalco is more like closer to 50 than 60. We will we feel that overall the business can improve by one turn if we are very efficient.

Shirish Pardeshi [Head of Research: Yeah. Right. Got it.

Punit Lalbhai: We feel that overall the business can improve by one turn if we are very efficient. But right now is not the time to focus on that efficiency. Right now the time is to focus on going from six turns to seven is not the focus. Having 95% plus OTIF on time and in full, that will keep the business growing at the levels that we want it.

Speaker #3: But right now is not the time to focus on that efficiency. Right now, the time is to focus on taking—going from six turns to seven is not the focus. Having 95% plus OTIF—on time and in full.

Speaker #3: That will keep the business growing at the levels that we want.

Speaker #5: Okay, that's helpful. My last question on the same slide: there is a goodwill and intangible setting of 853. How should we think about this number for the next 15, 18 months to two years?

Shirish Pardeshi [Head of Research: Okay. That's helpful. My last question, on the same slide, there is a goodwill and intangible setting of INR 853. How this number we should think about for next 15, 18 months, two years?

Speaker #3: That number will be there for the next four or five years at least. And the way to think about it is that we don't have to pay tax because of it.

Punit Lalbhai: That number will be there for the next four, five years at least. The way to think about it is that we do not have to pay tax because of it.

Speaker #5: Okay. Okay. Thank you, and all the best.

Shirish Pardeshi [Head of Research: Okay. Thank you, and all the best.

Speaker #1: The next question comes from the line of Bemal Sampath, an individual investor. Please go ahead.

Operator 3: The next question comes from the line of Bimal Sampath, an individual investor. Please go ahead.

Operator: The next question comes from the line of Bimal Sampath, an individual investor. Please go ahead.

Speaker #2: Yeah. Good afternoon. So now just a broad question: seeing this, we are turning more and more into a product company, having tie-ups like asset-light raw material sourcing and asset-light manufacturing.

Bimal Sampath: Yeah. Good afternoon. Just a broad question. Seeing this, we are turning more and more into a product company, having tie-ups like asset light, raw material sourcing, and asset light manufacturing. Going down four, five years down the line, we will be like a multinational and more of products rather than fabrics. Is my judgment correct? We will be more of a product company than a-

Vimal Sampath: Yeah. Good afternoon. Just a broad question. Seeing this, we are turning more and more into a product company, having tie-ups like asset light, raw material sourcing, and asset light manufacturing. Going down four, five years down the line, we will be like a multinational and more of products rather than fabrics. Is my judgment correct? We will be more of a product company than a-

Speaker #2: So, going down four or five years down the line, I mean, we will be like a multinational—and more of products rather than fabrics.

Speaker #2: Is my judgment correct? Will it be more of a product company than a...

Speaker #3: Right now, our sort of asset-light model is tiny. We are still primarily a manufacturer, and I think manufacturing will remain a core strength, because this is the capability that this group has acquired over 100 years.

Punit Lalbhai: Right now, our asset light model is tiny. We are still primarily a manufacturer, and I think manufacturing will remain a core strength because this is a capability that this group has acquired over 100 years in the space of textiles. I don't think we will, at least on current visibility, I don't see a manufacturing free kind of go-to-market strategy that we adopt. Manufacturing will remain a very important part of what we do. But yes, we are in the process of globalization, and particularly because there are country risks and all those kind of considerations to think about, and also limited pool of capital needing to go as far as it can go. We are exploring more and more asset light models going forward. So asset light as a strategy will go up as a part of the portfolio. But we will still remain a manufacturing-heavy company.

Speaker #3: In the space of textiles. So I don't think we will at least on current visibility I don't see a manufacturing free kind of go to market strategy that we adopt.

Speaker #3: Manufacturing will remain a very important part of what we do. But yes, we are in the process of globalization, particularly because there are country risks and all those kinds of considerations to think about.

Speaker #3: And also, with a limited pool of capital, we need to ensure it goes as far as it can. We are exploring more and more asset-light models going forward.

Speaker #3: So, asset-light as a strategy will go up as a part of the portfolio. But we will still remain a manufacturing-heavy company. The nature of our manufacturing is also different.

Punit Lalbhai: The nature of our manufacturing is also different and evolving as we go forward. We are focusing on digital transformation. We are adding a lot of automation. We are bringing in more and more innovations in terms of technology. We are bringing in a more multi-product sort of go to market where we are adding MMF capabilities. We are adding newer lines of business in Advanced Materials. So our material diversity is going to increase. Our manufacturing platforms are going to be more diversified. Our footprint is going to be more global, and asset light is going to become a higher proportion of the overall business. But we are still going to be predominantly a manufacturing company.

Speaker #3: And evolving as we go forward. So we are focusing on digital transformation. We are adding a lot of automation. We are bringing in more and more innovations in terms of technology.

Speaker #3: We are bringing in a more multi-product sort of go-to-market, where we are adding MMF capabilities. We are adding newer lines of business in advanced materials.

Speaker #3: So, our material diversity is going to increase. Our manufacturing platforms are going to be more diversified. Our footprint is going to be more global.

Speaker #3: And asset-light is going to become a higher proportion of the overall business. But we are still going to be predominantly a manufacturing company.

Speaker #2: And our size, I think, in about five years will be at least double what we are now in terms of turnover.

Bimal Sampath: Our size, I think, will be in about five years, at least double of what we are now in terms of turnover.

Vimal Sampath: Our size, I think, will be in about five years, at least double of what we are now in terms of turnover.

Speaker #3: So, you can think of, on a ₹10,000 crore base: if Advanced Materials grows at close to 20%, if Garments grows at mid-teens, and if Fabric grows at high single digits.

Punit Lalbhai: You can think of on a INR 10,000 crore base, if Advanced Materials grows at close to 20%, if garments grows at mid-teens and if fabric grows at high single digits, overall company will grow in the teens, early teens. Plus, there might be one or two inorganic along the way, which we cannot predict sitting at this point in time. I would say, you're not very far off from our desired trajectory would be something similar to what you're saying.

Speaker #3: Overall, the company will grow in the teens, early teens. Plus, there might be one or two inorganic moves along the way, which we cannot predict sitting at this point in time.

Speaker #3: So, I would say you're not very far off from our desired trajectory. It would be something similar to what you're saying.

Speaker #2: Okay. Thank you sir.

Bimal Sampath: Okay. Thank you, sir.

Vimal Sampath: Okay. Thank you, sir.

Speaker #1: The next question comes from the line of Roshan with Antique Stockbroking. Please go ahead.

Operator 3: The next question comes from the line of Roshan with Antique Stock Broking. Please go ahead.

Operator: The next question comes from the line of Roshan with Antique Stock Broking. Please go ahead.

Speaker #2: Yeah, thanks for the opportunity. So, you emphasized the fact that you have been focusing on verticalization to improve economics across the segments.

[Analyst] (Antique Stock Broking): Yeah. Thanks for the opportunity. You emphasized on the fact that you have been focusing on verticalization to improve economics across the segments. Now going forward, how should we look at it? The next phase of growth will be dependent more on capacity addition or extracting value from the existing integrated model. Your comments would be helpful on that front.

Speaker #2: So now, going forward, how should we look at it? Will the next phase of growth be more dependent on capacity addition, or on extracting value from the existing integrated model?

Speaker #2: Your comments would be helpful on that front.

Speaker #3: Can you repeat the question? I'm not sure I understood it clearly. Sorry.

Punit Lalbhai: Can you repeat the question? I am not sure I understood it clearly. Sorry.

[Analyst] (Antique Stock Broking): I'm saying, you have been emphasizing on verticalization across the segments. How should we look at the next phase of growth would be more capacity addition driven or extracting value from the existing integrated model? Your comments would be helpful.

Speaker #2: I'm saying you have been emphasizing verticalization across the segments. So, how should we look at the next phase of growth? Would it be more capacity addition-driven, or focused on extracting value from the existing integrated model?

Speaker #2: So, your comments would be helpful.

Speaker #3: No. So for the model to get integrated better, we need to increase the capacity. So the two are linked, right? You cannot integrate if you don't have the garmenting.

Punit Lalbhai: No. For the model to get integrated better, we need to increase the capacity. The two are linked, right? You cannot integrate if you don't have the garmenting. Right now our garmenting is operating at 100% capacity utilization. We will need to have more garmenting capacity, and hence we are adding factories, we are adding automation, we are doing this kind of partnership model. All of that is there to be able to verticalize our very large, we make more than 300 million meters of fabric. With our current garment capacity is only 15% to maximum 20% of it can be vertical with the existing capacity. Capacity has to go up to be more vertical. It will be both. We will try and leverage more value through verticalization, but to do that, we will have to add capacity. Both will happen.

Speaker #3: So right now, our garmenting is operating at 100% capacity utilization. So we will need to have more garmenting capacity, and hence we are adding factories.

Speaker #3: We are adding automation. We are doing this kind of partnership model. All of that is there to be able to verticalize our very large—we make more than 300 million meters of fabric.

Speaker #3: And with our current garment capacity, only 15% to a maximum of 20% of it can be vertical with the existing capacity. So, capacity has to go up to be more vertical.

Speaker #3: So, it will be both. We will try and leverage more value through verticalization, but to do that we will have to add capacity. So, both will happen.

Speaker #2: Understood. That's helpful. And next, you alluded to the fact that the textile EBITDA margin has improved despite a ₹19 crore impact on higher raw material cost.

[Analyst] (Antique Stock Broking): Understood. That's helpful. Next, you alluded to the fact that the textile EBITDA margin has improved despite INR 19 crore impact on higher raw material cost. How much of this pressure can realistically be recovered through pricing, product mix, and sourcing? How much could remain structural?

Speaker #2: So, how much of this pressure can realistically be recovered through pricing, product mix, and sourcing? And how much could remain structurally?

Speaker #3: I would like to correct you. The margin hasn't improved; it has gone down from Q1 to Q1. It has gone down significantly from Q4 to Q1.

Punit Lalbhai: I would like to correct you. The margin hasn't improved. It has gone down Q1 to Q1. It has gone down significantly from Q4 to Q1, but that is reflective of Q1, Q4 regular dynamics.

Speaker #3: But that is reflective of quarter one, quarter four regular dynamics. So, normally, quarter four is a higher margin quarter than quarter one. So if you compare quarter one to quarter one, we have reduced by half a percentage point on the overall textile margin.

[Analyst] (Antique Stock Broking): Right.

Punit Lalbhai: Normally Q4 is a higher margin quarter than Q1. If you compare Q1 to Q1, we have reduced by half percentage points on the overall textile margin. That should be gradually recovered as, imports are still high as we speak because they started going down, then the whole Middle East thing flared up again. Again, there is still a reasonably high level of stress on raw material prices. It is a constant effort to pass on as much as we can to customers and do our best there. It is going to be a gradual process to creep back to the old margins. The timeline cannot be predicted because the conflict is still ongoing.

[Analyst] (Antique Stock Broking): Right.

Speaker #3: That should be gradually recovered, as you see imports are still high as we speak, because they started going down, then the whole Middle East thing flared up again.

Speaker #3: So, again, there is still a reasonably high level of stress on raw material prices, and so it's a constant effort to pass on as much as we can to customers.

Speaker #3: And do our best there. So, it's going to be a gradual process to creep back to the old margins, and the timeline cannot be predicted because the conflict is still ongoing.

Speaker #2: Understood. That's helpful. And I wish you all the best for the coming quarters.

[Analyst] (Antique Stock Broking): Understood. That is helpful. Wish you all the best for the coming quarters.

Speaker #3: Thank you. Thank you very much.

Punit Lalbhai: Thank you. Thank you very much.

Speaker #1: Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Sathya Prakash Mishra for the closing remarks.

Operator 3: Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Satya Prakash Mishra for the closing remarks.

Operator: Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Satya Prakash Mishra for the closing remarks.

Speaker #4: Once again, thank you, everyone, for joining today's call. We trust that the discussion addressed most of your questions. Should anything remain unanswered, or if any questions arise going forward, please do not hesitate to reach out to us.

Satya Prakash Mishra: Once again, thank you everyone for joining today's call. We trust that the discussion addressed most of your questions. Should anything remain unanswered or if any questions arise going forward, please do not hesitate to reach out to us. We are just a phone call or an email away, and we will be happy to assist. We look forward to engaging with you at an upcoming conference. Thank you, and wish you a good day ahead.

Speaker #4: We are just a phone call or an email away, and we'll be happy to assist. We look forward to engaging with you at an upcoming conference.

Speaker #4: Thank you, and wish you a good day ahead.

Speaker #1: Thank you sir. Ladies and gentlemen on behalf of Arvind Limited that concludes this conference call. Thank you for joining us and you may now disconnect your lines.

Operator 3: Thank you, sir. Ladies and gentlemen, on behalf of Arvind Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you, sir. Ladies and gentlemen, on behalf of Arvind Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

Browse all earnings call transcripts

Q1 2027 Arvind Ltd Earnings Call

Request TrialDemo

Arvind

Earnings