Q1 2027 Uflex Ltd Earnings Call

August 17, 2026

Operator 3: Ladies and gentlemen, good day and welcome to the Uflex Limited Q1 FY27 results conference call hosted by Arihant Capital Markets Limited. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal an operator by pressing star and then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashvath Rajan from Arihant Capital. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Uflex Limited Q1 FY27 results conference call hosted by Arihant Capital Markets Limited. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal an operator by pressing star and then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashvath Rajan from Arihant Capital. Thank you, and over to you, sir.

Speaker #1: There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal an operator by pressing star and then zero on your touch-tone telephone.

Speaker #1: Please note that this conference is being recorded. I now hand the conference over to Mr. Ashwath Rajan from Arihant Capitals. Thank you, and over to you, sir.

Speaker #2: Thank you. Good evening, everyone. On behalf of Arihant Capital Markets, I would like to thank all of you for taking the time and joining us on the Uflex Q1 FY27 results conference call.

Ashvath Rajan: Thank you. Good evening, everyone. On behalf of Arihant Capital Markets, I would like to thank all of you for taking time and joining us on Uflex Q1 FY2027 results conference call. From the company's leadership team, we have with us Mr. Arun Kumar Sharma, President, Finance and Accounts and CFO, and Mr. Surajit Pal, Vice President, Head of Investor Relations. We will open the call with opening remarks by the management, followed by a Q&A session. I would now like to hand over the call to Mr. Surajit Pal to make the opening remarks. Over to you, sir.

Speaker #2: From the company's leadership team, we have with us Mr. Arun Kumar Sharma, President of Finance and Accounts and CFO, and Mr. Surajit Pal, Vice President and Head of Investor Relations.

Speaker #2: We will open the call with opening remarks by the management, followed by a Q&A session. I would now like to hand over the call to Mr. Surajit Pal to make the opening remarks.

Speaker #2: Over to you, sir.

Speaker #3: Thanks, Ashwath. Good evening, everyone. Thank you for joining us today for the Q1 FY27 earnings conference call of Uflex Limited. Before we begin, I would like to briefly introduce Mr. Arun Kumar Sharma, our President, Finance and Accounts, and Chief Financial Officer.

Surajit Pal: Thanks, Ashvath. Good evening, everyone. Thank you for joining us today for the Q1 FY2027 earnings conference call of Uflex Limited. Before we begin, I would like to briefly introduce Mr. Arun Kumar Sharma, our President, Finance and Accounts, and Chief Financial Officer. We are pleased to have him with us and look forward to his perspectives on the company's financial performance and outlook. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are predictions, projections, and other estimates about future events. These estimates reflect management's current expectations about the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied. Thank you. Over to you, sir.

Speaker #3: We are pleased to have him with us and look forward to his perspectives on the company's financial performance and outlook. Let me draw your attention to the fact that, on this call, our discussion will include certain forward-looking statements, which are predictions, projections, and other estimates about future events.

Surajit Pal: Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are predictions, projections, and other estimates about future events. These estimates reflect management's current expectations about the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied. Thank you. Over to you, sir.

Speaker #3: These estimates reflect management's current expectations about the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied.

Speaker #3: Thank you. Over to you, sir.

Speaker #4: Thank you, Surajit. A very good evening to everyone joining us today. On behalf of the entire Uflex team, I extend a warm welcome to all our shareholders, analysts, and other stakeholders on this call.

Arun Kumar Sharma: Thank you, Surajit. A very good evening to everyone joining us today. On behalf of entire Uflex team, I extend a warm welcome to all our shareholders, analysts, and other stakeholders on this call. I am pleased to report that we have started fiscal 2027 on a strong note, delivering a clear acceleration in our overall growth trajectory. Building on the momentum established in Q4 FY2026, this performance reflects the resilience of our integrated global business model and operational execution. Now we discuss on Uflex Q1 FY2027 performance. Top line and earning momentum. Consolidated revenue for Q1 FY2027 grew 38% YOY to INR 53,972 million. EBITDA rose 92% YOY to INR 9,198 million, with EBITDA margin expanding 480 basis point YOY to 17%, marking our highest EBITDA performance in the last 21 quarters.

Speaker #4: I am pleased to report that we have started fiscal 2027 on a strong note, delivering a clear acceleration in our overall growth trajectory. Building on the momentum established in Q4 FY26, this performance reflects the resilience of our integrated global business model and operational execution.

Arun Kumar Sharma: Building on the momentum established in Q4 FY2026, this performance reflects the resilience of our integrated global business model and operational execution. Now we discuss on Uflex Q1 FY2027 performance. Top line and earning momentum. Consolidated revenue for Q1 FY2027 grew 38% YOY to INR 53,972 million. EBITDA rose 92% YOY to INR 9,198 million, with EBITDA margin expanding 480 basis point YOY to 17%, marking our highest EBITDA performance in the last 21 quarters.

Speaker #4: Now we'll discuss Uflex Q1 FY27 performance. Top-line and earnings momentum: consolidated revenue for Q1 FY27 grew 38% year-over-year to ₹53,972 million.

Speaker #4: EBITDA rose 92% year-over-year to ₹919.8 million, with the EBITDA margin expanding 480 basis points year-over-year to 17%. This marks our highest EBITDA performance in the last 21 quarters.

Speaker #4: With 80% of revenue contributed by overseas operations and 20% by India, our incremental revenue was ₹14,753 million. In this, chips contributed ₹12,093 million of the incremental revenue, while ₹1,988 million was contributed by the packaging business.

Arun Kumar Sharma: With 80% revenue contributed by overseas operations and 20% by India, our incremental revenue was INR 14,753 million in Q1. Packaging films, including chips, contributed INR 12,093 million of incremental revenue, while INR 1,988 million was contributed by the packaging business. Normalized EBITDA post-adjustment of INR 825 million on Forex derivative transactions reached INR 8,373 million, which is 78% growth year-on-year, expanded to 15.5%. Our overseas operations contributed around 91% of the INR 4,410 million incremental EBITDA, reflecting a significant improvement in overseas profitability and driving the consolidated EBITDA growth. Consolidated net profit after tax and non-controlling interest was INR 4,233 million with a net margin of 7.8%, compared to INR 518 million at a net margin of 1.5% in Q1 FY2026. Now we discuss on the drivers of growth. Overseas operations drive Q1 FY2027 growth and profitability.

Speaker #4: Normalized EBITDA, post-adjustment of Rs. 825 million on forex derivative transactions, reached Rs. 8,373 million, which is 78% growth year-on-year. EBITDA margin expanded to 15.5%. Our overseas operations contributed around 91% of the Rs. 4,410 million incremental EBITDA.

Arun Kumar Sharma: Our overseas operations contributed around 91% of the INR 4,410 million incremental EBITDA, reflecting a significant improvement in overseas profitability and driving the consolidated EBITDA growth. Consolidated net profit after tax and non-controlling interest was INR 4,233 million with a net margin of 7.8%, compared to INR 518 million at a net margin of 1.5% in Q1 FY2026. Now we discuss on the drivers of growth. Overseas operations drive Q1 FY2027 growth and profitability.

Speaker #4: Reflecting a significant improvement in overseas profitability and driving consolidated EBITDA growth. Consolidated PAT, consolidated net profit after tax and non-controlling interest, was ₹4,233 million, with a net margin of 7.8%, compared to ₹580 million and a net margin of 1.5% in Q1 FY26.

Speaker #4: Now we'll discuss the drivers of growth. Overseas operations drove Q1 FY27 growth and profitability. Margin expansion was driven by operational leverage, stronger realizations, pass-through of higher raw material costs, currency tailwinds, and localized sourcing premiums.

Arun Kumar Sharma: Margin expansion was driven by operational leverage, stronger realizations passed through of higher raw material cost, currency tailwinds, and localized sourcing premiums. Overseas operations, particularly in Egypt, Mexico, and Nigeria, alongside our India freight business, served as a key growth driver of our profitability. Total sales volume for the quarter reached 173,471 metric ton, which is 1.7% year-on-year growth. The expansion of volume by 136,186 metric ton, which is 4.9% year-on-year growth, supported by preference of sourcing by the converters from local regional producers of film across international markets. Overall packaging volumes shipped 8.4% year-on-year to 37,285 metric ton, primarily due to strategic shift towards high-margin products in India, flexible packaging business and softer aseptic packaging due to duty-free import at aggressive prices in Indian market. While overseas volumes were impacted by larger pack sizes mix and delayed ship disruptions in consignment deliveries due to West Asia crisis.

Speaker #4: Overseas operations, particularly in Egypt, Mexico, and Nigeria, alongside our India PET chip business, served as a key growth driver of our profitability. Total sales volume for the quarter reached 173,471 metric tons, which is 1.7% year-on-year growth.

Speaker #4: The expansion of volume by 136,186 metric tons, which is a 4.9% year-on-year growth, was supported by the preference of sourcing by the converters from local regional producers of film across international markets.

Arun Kumar Sharma: The expansion of volume by 136,186 metric ton, which is 4.9% year-on-year growth, supported by preference of sourcing by the converters from local regional producers of film across international markets. Overall packaging volumes shipped 8.4% year-on-year to 37,285 metric ton, primarily due to strategic shift towards high-margin products in India, flexible packaging business and softer aseptic packaging due to duty-free import at aggressive prices in Indian market.

Speaker #4: Overall packaging volume slipped 8.4% year-on-year to 37,285 metric tons, primarily due to a strategic shift towards high-margin products in India, the flexible packaging business, and softness in aseptic packaging due to duty-free imports and aggressive pricing in the Indian market.

Speaker #4: While overseas volume was impacted by larger pack sizes, mix, and delayed stock disruptions in consignment deliveries due to the West Asia crisis. Next, I will provide some inputs on geography-wise volume split.

Arun Kumar Sharma: While overseas volumes were impacted by larger pack sizes mix and delayed ship disruptions in consignment deliveries due to West Asia crisis. Next, I will provide some inputs on geography-wise volume split. In India, packaging film sales volume increased 9.1% quarter-on-quarter to 29,323 metric ton. On the domestic front, packaging films demand improved sequentially as converters and brand owners gradually resumed purchases since price normalization in May and June.

Arun Kumar Sharma: Next, I will provide some inputs on geography-wise volume split. In India, packaging film sales volume increased 9.1% quarter-on-quarter to 29,323 metric ton. On the domestic front, packaging films demand improved sequentially as converters and brand owners gradually resumed purchases since price normalization in May and June. Our demand softened year-on-year as Q1 FY26 at a higher base due to temporary supply shortage in the industry. America film volume increased 18% YOY to 31,724 metric ton. This was supported by the US government push for domestic production and onshoring amid evolving trade policies. Thus, trade imports from West Asia and India are expected to sustain the positive volume growth outlook ahead. In Europe, sales volume was flat YOY and stood at 35,653 metric ton amid continued pressure from low-price imports, with demand expected to moderate next quarter due to seasonal holidays.

Speaker #4: In India, packaging film sales volume increased 9.1% quarter-on-quarter to 29,323 metric tons. On the domestic front, packaging films demand improved sequentially as converters and brand owners gradually resumed purchases since price normalization in May and June.

Speaker #4: Our demand softened year-on-year as Q1 FY26 had a higher base due to a temporary supply shortage in the industry. America sales volume increased 18% year-on-year to 31,724 metric tons.

Arun Kumar Sharma: Our demand softened year-on-year as Q1 FY26 at a higher base due to temporary supply shortage in the industry. America film volume increased 18% YOY to 31,724 metric ton. This was supported by the US government push for domestic production and onshoring amid evolving trade policies. Thus, trade imports from West Asia and India are expected to sustain the positive volume growth outlook ahead. In Europe, sales volume was flat YOY and stood at 35,653 metric ton amid continued pressure from low-price imports, with demand expected to moderate next quarter due to seasonal holidays.

Speaker #4: This was supported by the US government push for domestic production and onshoring amid evolving trade policies. US trade imports from West Asia and India are expected to sustain the positive volume growth outlook ahead.

Speaker #4: In Europe, sales volume was flat year-over-year and stood at 35,653 metric tons, amid continued pressure from low-priced imports, with demand expected to moderate next quarter due to seasonal holidays.

Speaker #4: CIS BOPET film sales benefited from steady demand, while BOPP volumes were impacted by increased low-price imports. Middle East and Africa region volumes increased 16.5% sequentially and 14.9% year-on-year to 39,486 metric tons, primarily driven by strong local and regional sourcing, as customers decreased their supply chain trade claims amid the West Asia crisis.

Arun Kumar Sharma: CIS BOPP film sales benefited from steady demand, while CPP volumes were impacted by increased low-price imports. Middle East and Africa region volumes increased 16.5% sequentially and 14.9% year-on-year to 39,486 metric ton, primarily driven by strong local and regional sourcing as customers derisk their supply chain claims and West Asia crisis. Egypt led the growth while Nigeria benefited from robust export opportunities and improving domestic demand. On a strategic expansion and CapEx front, we have incurred INR 4,782 million in CapEx in Q1, primarily allocated across four key projects. Egypt Asepto facility, INR 1,236 million. Mexico WPP bags, INR 205 million. Noida Sector 155 recycling unit in India, INR 320 million, and Dharwad BOPP line India, INR 215 million. We are making steady progress on key projects. 39,000 metric ton per annum recycling plant at Noida Sector 155 was successfully commissioned on 30 April 2026.

Speaker #4: Egypt led the growth, while Nigeria benefited from robust export opportunities and improving domestic demand. On a strategic expansion and capex run, we have incurred ₹4,782 million in capex in Q1, primarily allocated across four key projects.

Arun Kumar Sharma: On a strategic expansion and CapEx front, we have incurred INR 4,782 million in CapEx in Q1, primarily allocated across four key projects. Egypt Asepto facility, INR 1,236 million. Mexico WPP bags, INR 205 million. Noida Sector 155 recycling unit in India, INR 320 million, and Dharwad BOPP line India, INR 215 million. We are making steady progress on key projects. 39,000 metric ton per annum recycling plant at Noida Sector 155 was successfully commissioned on 30 April 2026.

Speaker #4: Egypt aseptic facility, Rs 1,236 million; Mexico WPP packs, Rs 205 million; Noida Sector 155 recycling unit in India, Rs 320 million; and Harvard BOPP line India, Rs 215 million.

Speaker #4: We are making steady progress on key projects. The 39,000 metric ton per annum recycling plant at Noida, Sector 155, was successfully commissioned on April 30, 2026.

Speaker #4: The 80-million-unit WPP bags plant in Mexico was commissioned on July 31, 2026. Work on our greenfield aseptic project in Egypt—12 million packs—remains on schedule for commissioning in H1 FY27.

Arun Kumar Sharma: 80-million-unit WPP bags plant in Mexico was commissioned on 31 July 2026. Work on our greenfield aseptic project in Egypt, 12 billion packs, remain on schedule for commissioning in FY27. We enter FY27 with multiple growth levers getting traction, including headroom for incremental production in India, Nigeria, CIS, and Mexico. Additionally, we recently commissioned 39,600 metric ton per annum recycling facility in Noida, Sector 155, and 80 million units WPP bag facility in Mexico, which progressively contribute to revenue and EBITDA as they ramp up. High utilization led by localized sourcing to de-risk the unscheduled supply chain disruptions, and a shift towards value-added packaging films will remain our key growth themes, supporting sustained profitable growth. While Q2 is expected to see some normalization from the exceptionally strong realization in Q1, our underlying growth trajectory remains intact, positioning us for FY27 growth and continued improvement in earnings quality.

Speaker #4: We enter FY27 with multiple growth levers getting traction, including headroom for incremental production in India, Nigeria, CIS, and Mexico. Additionally, the recently commissioned 39,600 metric ton per annum recycling facility in Noida Sector 155 and the 80 million unit WPP bag facility in Mexico will progressively contribute to revenue and EBITDA as they ramp up.

Speaker #4: Higher utilization, led by localized sourcing to decrease unscheduled supply chain disruption, and a shift towards value-added packaging films will remain key growth themes.

Arun Kumar Sharma: High utilization led by localized sourcing to de-risk the unscheduled supply chain disruptions, and a shift towards value-added packaging films will remain our key growth themes, supporting sustained profitable growth. While Q2 is expected to see some normalization from the exceptionally strong realization in Q1, our underlying growth trajectory remains intact, positioning us for FY27 growth and continued improvement in earnings quality. Now, we open the line for Q&A session.

Speaker #4: Supporting sustained, profitable growth. While Q2 is expected to see some normalization from the exceptionally strong realization in Q1, our underlying growth trajectory remains tight.

Speaker #4: Positioning us for FY27 growth and continued improvement in earnings quality. Now, we open the line for the Q&A session.

Arun Kumar Sharma: Now, we open the line for Q&A session.

Speaker #1: Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter 'star' followed by 'one' on the touch-tone telephones.

Operator 3: Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star followed by one on the touchtone telephones. If you wish to remove yourself from the question queue, you may enter star followed by two. Participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. The first question is from the line of Kashmira from SM Advisory. Please go ahead.

Operator: Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star followed by one on the touchtone telephones. If you wish to remove yourself from the question queue, you may enter star followed by two. Participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. The first question is from the line of Kashmira from SM Advisory. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may enter 'staff' followed by '2'. Participants are requested to please use only handsets while asking a question.

Speaker #1: We will wait for a moment while the question queue assembles. The first question is from the line of Kashmira from SM Advisory. Please go ahead.

Operator 2: Hi, am I audible?

[Analyst] (SM Advisory): Hi, am I audible?

Speaker #2: Hi. Am I audible?

Speaker #1: Yes, ma'am.

Operator 3: Yes, ma'am.

Operator: Yes, ma'am.

Speaker #3: Yeah, yeah.

Arun Kumar Sharma: Yeah.

Speaker #2: My first question is: How are the price realizations shaping up in India and the export market?

Operator 2: My first question is, how are the price realizations shaping up in India and the export market?

[Analyst] (SM Advisory): My first question is, how are the price realizations shaping up in India and the export market?

Arun Kumar Sharma: To give you a very specific price will be difficult, but I can tell you that price realization is up 30% as compared to when the war started in West Asia. Our BOPET prices as well as BOPP prices have gone up almost. BOPP prices have gone up by 25%, and BOPET prices have gone up by almost 30%, 35%. To be specific, from 26 February level to now, it is 25% higher on BOPP, and BOPET it is around 35% higher.

Speaker #3: It's price gives you a very specific—it's a little bit difficult, but I can tell you that price relation is up 30% as compared to when the war started in West Asia.

Speaker #3: So our BOPET prices, as well as UP prices, have gone up. UP prices have gone up by 25%, and BOPET prices have gone up by almost 30–35%.

Speaker #3: To be specific, from the February 26 level to now, it is 25% higher. On BOPP and BOPET, it is around 35% higher.

Operator 2: Okay, got it. My second question is, how are the raw material price trends expected to move in the future? How correlated is that with the film spreads going forward?

[Analyst] (SM Advisory): Okay, got it. My second question is, how are the raw material price trends expected to move in the future? How correlated is that with the film spreads going forward?

Speaker #2: Okay, got it. And my second question is: How are the raw material price trends expected to move in the future, and how correlated is that with the film spreads going forward?

Speaker #3: The raw material prices are also moving up, but not to the extent that the finished product prices are moving up. Because it is being normalized now, and prices are, I think, getting normalized as of now.

Arun Kumar Sharma: The raw material price is also moving up, but not to that extent what the finished goods prices are moving up because it is being normalized now, and prices are, I think, getting normalized as of now.

Operator 2: Okay. Are we planning for any new geographies, product lines, or M&A opportunities beyond the current CapEx pipeline?

[Analyst] (SM Advisory): Okay. Are we planning for any new geographies, product lines, or M&A opportunities beyond the current CapEx pipeline?

Speaker #2: Okay. And are we planning for any new geographies, product lines, or M&A opportunities beyond the current CapEx pipeline?

Speaker #3: See, right now we do only Greenfield projects, and our project in Egypt, the aseptic plant, is up for commissioning, which will be done in H1, like you said.

Arun Kumar Sharma: Right now, we do only greenfield projects. Our project in Egypt, Asepto plant, is up for commissioning, which will be done in H1, like we have said. We are hopeful that we will be able to announce it very soon, that project coming on stream. That will give us a big flip on our revenue as well as on our bottom line.

Speaker #3: And we are hopeful that we'll be able to announce it very soon, that project coming on stream. That will give us a big lift in our revenue as well as on our bottom line.

Speaker #2: Got it. And my last question from my side would be: Given the relatively higher margin profile of liquid packaging, with a pure reporting improvement from, like, 5% to 6%, do we see an opportunity to further scale its presence in the segment to support our overall market expansion?

Operator 2: Got it. The last question from my side would be, given the relatively higher margin profile of liquid packaging with the peer reporting improvement from 5% to 6%, do we see an opportunity to further scale its presence in the segment to support our overall margin expansion?

[Analyst] (SM Advisory): Got it. The last question from my side would be, given the relatively higher margin profile of liquid packaging with the peer reporting improvement from 5% to 6%, do we see an opportunity to further scale its presence in the segment to support our overall margin expansion?

Speaker #3: Yeah, aseptic has been a little slower in expansion in this quarter, but going forward, that will be a key driver because once our line comes up in Egypt, that will be a big revenue generator for us.

Arun Kumar Sharma: Yeah, aseptic has been a little slower in expansion in this quarter, but that will be a key driver going forward, because once our line comes up in Egypt, that will be a big revenue generator for us. Thus, we are also purchasing decent capacity in our existing Indian plant. So the aseptic plant will, I think, have a good revenue and good EBITDA margin going forward from there.

Speaker #3: Thus, we are also purchasing decent capacity in our existing Indian plant. So the aseptic plant will be, I think, we'll have a good revenue and good EBITDA margin going forward from that.

Operator 2: Okay, got it. Thank you so much, sir.

[Analyst] (SM Advisory): Okay, got it. Thank you so much, sir.

Speaker #2: Okay, got it. Thank you so much, sir.

Speaker #1: Thank you. The next question is from the line of Ranbir Kumar Singh from Ranbir HUS. Please go ahead.

Operator 3: Thank you. The next question is from the line of Ranveer Kumar Singh from RanveerHUS. Please go ahead.

Operator: Thank you. The next question is from the line of Ranveer Kumar Singh from RanveerHUS. Please go ahead.

Speaker #4: Thanks for taking my questions. Sir, मैं ये जानना चाहता हूं कि 527 as a whole year, क्या ये जो top line है और EBITDA margin जो आया है, वो sustainable है सर?

Ranveer Kumar Singh: Thanks for taking my questions. Sir, I want to know if the top line and EBITDA margin for FY27 as a whole year are sustainable?

[Analyst]: Thanks for taking my questions. Sir, I want to know if the top line and EBITDA margin for FY27 as a whole year are sustainable?

Arun Kumar Sharma: Yes, it is absolutely sustainable because the revenue growth and margin that has come is not because of the efforts of one quarter or two quarters. It is the efforts of last two, three years CapEx, what we have done. Because you would know that CapEx takes time to come. It takes a lot of time in CapEx ramping up because any CapEx you put up, it takes three years to get to 100% potential. So whatever CapExes we are putting up now, you can see how those will unfold going forward. So whatever numbers we have achieved in Q1, they are very much sustainable. Going forward, I think the momentum is very strong, and we will continue to show better results because our CapExes are coming on stream now, and more and more capacity utilization is getting in business now.

Speaker #3: हाँ, देखिए, बिल्कुल sustainable है because जो revenue growth आया है और जो margin आया है, it's not because of efforts of one quarter or two quarters. यह efforts of last two-three years' capex का नतीजा है जो आपने किया है, क्योंकि आपको पता होगा capex आने में time लगता है, it takes a lot of time in capex ramping up. Because any capex you put up, it takes three years to get to 100% potential. So, whatever capexes we are putting up now, you can see how those will unfold going forward. So, whatever numbers we have achieved in Q1, they are very much sustainable going forward. I think the momentum is very strong and we'll continue to show better results because our capexes are coming on stream now and more and more capacity addition is getting in business now.

Arun Kumar Sharma: So whatever CapExes we are putting up now, you can see how those will unfold going forward. So whatever numbers we have achieved in Q1, they are very much sustainable. Going forward, I think the momentum is very strong, and we will continue to show better results because our CapExes are coming on stream now, and more and more capacity utilization is getting in business now.

Speaker #4: सर, यह 527 as a top line और EBITDA margin का कुछ guidance बता सकते हैं?

Ranveer Kumar Singh: Sir, can you tell us some guidance on top line and EBITDA margin for FY27?

[Analyst]: Sir, can you tell us some guidance on top line and EBITDA margin for FY27?

Speaker #3: Generally, we should not give guidance because guidance in today's market scenario is very difficult. Things change very fast because of this geopolitical situation.

Arun Kumar Sharma: Generally, we should not give guidance because guidance in this today market scenario is very difficult. Things change very fast because of this geopolitical situation. But you are asking a specific question to just respect as an investor. I think we are expecting 35% growth in our top line in this financial year. Similarly, EBITDA also, we will see the same growth coming up in this financial year as compared to last financial year.

Speaker #3: But you are asking a specific question purely as an investor. I think we are expecting 35% growth in our top line in this financial year.

Speaker #3: And similarly, EBITDA also—we'll see the same growth coming up in this financial year as compared to the last financial year.

Speaker #4: Okay. Thank you.

Ranveer Kumar Singh: Okay. Thank you.

[Analyst]: Okay. Thank you.

Speaker #1: Thank you. The next question is from the line of Saqib Kapoor from Kapoor Co. Please go ahead.

Operator 3: Thank you. The next question is from the line of Saket Kapoor from Kapoor & Co. Please go ahead.

Operator: Thank you. The next question is from the line of Saket Kapoor from Kapoor & Co. Please go ahead.

Speaker #3: Yes, sir. Sir, in continuation to the earlier participant question, so जैसे आपने ये बताया कि quarter two with three normalization so if you could just dwell better that means what are we anticipate what should be a work on in terms of normalization going ahead for Q2?

Saket Kapoor: Yes, sir. Sir, in continuation to the earlier participant question, as you said, Q2 will see normalization. If you could just dwell better, that means, what should we work on in terms of normalization going ahead for Q2?

Arun Kumar Sharma: See, it is very difficult to benchmark anything quarter on quarter because a lot of things change in a quarter. But if you benchmark against year on year, like I just said that whatever revenue we achieved in FY2026, we are going to achieve at least 35% more revenue in FY2027. Similarly, EBITDA also will be higher by the same margin in FY2027. So you should look more year on year basis because quarter on quarter frustrations can be unpredictable also sometimes. Year on year gives a better perspective how the company is growing. So both top line and bottom line is an expected decent growth 30% plus in coming year. Same growth will continue in FY2028 also because these capacities, what are coming on a stream this year, two have come on stream. One is coming up in H1.

Arun Kumar Sharma: See, it is very difficult to benchmark anything quarter-on-quarter because a lot of things change in a quarter. But if you benchmark against year-on-year, like I just said that whatever revenue we achieved in FY2026, we are going to achieve at least 35% more revenue in FY2027. Similarly, EBITDA also will be higher by the same margin in FY2027.

Speaker #3: It's very difficult to benchmark anything quarter on quarter because a lot of things change in a quarter. But if you benchmark against year on year, so like I just said, whatever revenue we achieved in FY26, we are going to achieve at least 35% more revenue in FY27.

Speaker #3: And similarly, EBITDA also will be higher by the same margin in FY27. So, you should look more on a year-on-year basis because quarter-on-quarter fluctuations can be unpredictable also, sometimes.

Arun Kumar Sharma: So you should look more year-on-year basis because quarter-on-quarter frustrations can be unpredictable also sometimes. year-on-year gives a better perspective how the company is growing. So both top line and bottom line is an expected decent growth 30% plus in coming year. Same growth will continue in FY2028 also because these capacities, what are coming on a stream this year, two have come on stream. One is coming up in H1.

Speaker #3: Year on year gives a better perspective of how the company is growing. So, both top line and bottom line are expected to see decent growth of 30% plus in the coming year.

Speaker #3: And the same growth will continue in FY28 also, because these capexes that are coming on stream this year—two have come on stream, and one is coming up in the first half—they'll have a decent capacity utilization going forward.

Arun Kumar Sharma: We will have a decent capacity utilization going forward, so they will give a very high margin and revenue in FY2028 as well as in FY2029. So you should look at a long-term perspective till FY2029. We are seeing a visible and a very decent growth coming up because all the ingredients of growth are in place now. Capacity is in place, capacity utilization is increasing, our operational efficiencies has come up. So all these factors will deliver a very decent growth to the company in next 2 years' time. So FY2027 will be a good year for the company, 2028, 2029, we see decent growth margins coming up all these 3 years.

Speaker #3: So, they'll deliver a very high margin and revenue in FY28 as well as in FY29. So, you should look at a long-term perspective; till FY29, we are seeing visible and very decent growth coming up because all the ingredients for growth are in place now.

Speaker #3: Capex is in place. Capacity utilization is increasing. Our operational efficiency has improved. So, all these factors will deliver very decent growth to the company in the next two years.

Arun Kumar Sharma: Capacity is in place, capacity utilization is increasing, our operational efficiencies has come up. So all these factors will deliver a very decent growth to the company in next 2 years' time. So FY2027 will be a good year for the company, 2028, 2029, we see decent growth margins coming up all these 3 years.

Speaker #3: So, FY27 will be a good year for the company. FY28 and FY29, we'll see decent growth margins coming up all these three years.

Speaker #4: Okay, Sir. As you mentioned that I'm not taking a myopic view, but just to understand and dwell further—when we look at our FY26 revenue, it was ₹15,600, I think ₹15,660 crore or something in that vicinity.

Saket Kapoor: Okay. Sir, as you mentioned that I am not taking a myopic view, but just to understand and dwell further, when we look at our FY2026 revenue, it was INR 15,600, I think, INR 15,060 crore or something in that vicinity.

Arun Kumar Sharma: Yeah.

Speaker #4: And our profit before tax was to the tune of ₹420 crore, correct, sir? And now for this quarter itself, we have done a PBT of ₹490 crore.

Saket Kapoor: Our profit before tax was to the tune of INR 420 crores. Correct, sir?

Saket Kapoor: Our profit before tax was to the tune of INR 420 crore. Correct, sir? This quarter itself, we have done PBT of INR 490 crore. Just to take that question forward, that 35% growth and the EBITDA part, we are already done with the year's profitability in the Q1 itself. That was the reason why I would like to understand when you spell out that there will be normalization going ahead, what is the band that you are referring to that we must keep in mind in terms of factoring the word normalization?

Saket Kapoor: This quarter itself, we have done

Saket Kapoor: PBT of INR 490 crores.

Speaker #4: So just to take that question forward, that 35% growth and the EBITDA part—we have already achieved the year's profitability in the first quarter itself.

Saket Kapoor: Just to take that question forward, that 35% growth and the EBITDA part, we are already done with the year's profitability in the first quarter itself. That was the reason why I would like to understand when you spell out that there will be normalization going ahead, what is the band that you are referring to that we must keep in mind in terms of factoring the word normalization?

Speaker #4: So that was the reason why I would like to understand: when you spell out that there will be normalization going ahead, what is the band that you are referring to that we must keep in mind in terms of factoring the word 'normalization'?

Arun Kumar Sharma: See, what we mean by this is that you are right, a very valid question you are asking. This year, in Q1 itself, we are reporting a PAT of INR 423 crores, which is almost six times higher than, I think Q1 2026 year-on-year. Whatever growth we are getting in FY27, we are getting growth from all the geographies which are in a very optimal tax bracket margins. So our tax expense is also going down quite significantly because we are generating big margins from Egypt, a big margin from European and US territory, plus Mexico, other places. So our tax expense will be much, much optimized because of these regions where we are present. That will give a big boost to our PAT margin going forward in FY27. Normalization doesn't mean that we are talking anything, something going down.

Arun Kumar Sharma: See, what we mean by this is that you are right, a very valid question you are asking. This year, in Q1 itself, we are reporting a PAT of INR 423 crore, which is almost six times higher than, I think Q1 2026 year-on-year. Whatever growth we are getting in FY27, we are getting growth from all the geographies which are in a very optimal tax bracket margins. So our tax expense is also going down quite significantly because we are generating big margins from Egypt, a big margin from European and US territory, plus Mexico, other places.

Speaker #3: See, what we mean by this is that you're right, it's a very valid question you're asking. This year, in the first quarter itself, we are reporting a PAT of ₹423 crore.

Speaker #3: Which is almost six times higher than, I think, Q1 '26 year on year. But whatever growth we are getting in FY27, we're getting growth from all the geographies, which are in a very optimal tax bracket margins.

Speaker #3: So our tax expense is also going down quite significantly because we are generating big margins from Egypt, a big margin from European and U.S. territory, plus Mexico.

Speaker #3: Other places. So, our tax expense will be much, much optimized because of these regions that we are present in. That will give a big boost to our PAT margin going forward in FY27.

Arun Kumar Sharma: So our tax expense will be much, much optimized because of these regions where we are present. That will give a big boost to our PAT margin going forward in FY27. Normalization doesn't mean that we are talking anything, something going down. Normalization means is that this quarter has seen a tremendous growth, but what guidance we are giving is that we will grow by 35%, which is a very good growth in today's market condition.

Speaker #3: So, normalization doesn't mean that we are talking about anything going down. Normalization means that this quarter, we have seen tremendous growth, but the guidance we're giving is that we'll grow by 35%, which is very good growth in today's market conditions.

Arun Kumar Sharma: Normalization means is that this quarter has seen a tremendous growth, but what guidance we are giving is that we will grow by 35%, which is a very good growth in today's market condition.

Speaker #4: Okay. Sir, when investors look and compare Q2 results with the previous Q2, we are eyeing a minimum 35% growth in both the top line and bottom line.

Saket Kapoor: Okay. Then investors will look and compare Q2 results from the previous Q2. We are eyeing a minimum 35% growth in both top and bottom line. That should be the understanding.

Speaker #4: That should be the understanding.

Speaker #3: See, I told you very clearly, we don't benchmark any company quarter on quarter because there are good investors who should benchmark year on year.

Arun Kumar Sharma: See, in beginning of my remarks, I told you very clearly, don't benchmark any company quarter-on-quarter.

Saket Kapoor: No, it is okay.

Arun Kumar Sharma: You should benchmark year on year.

Arun Kumar Sharma: You should benchmark year-on-year.

Speaker #4: Year on year, I just kept it year on year.

Saket Kapoor: Year on year. I just kept it year on year, yes.

Saket Kapoor: year-on-year. I just kept it year-on-year, yes.

Speaker #3: If you're benchmarking quarter on quarter, I can say that we'll not let you down. I think you are fully confident. We are also equally confident.

Arun Kumar Sharma: If you are benchmarking quarter on quarter, I can say that we will not let you down. I think you are fully confident. We are also equally confident. But as a prudent and a long-term investor, you should always look year on year because quarter on quarter, some shipments can get missed because of various issues, crises, something can happen on a shipment, some shipments get delayed here and there. One shipment can make huge difference in a top line. For, let us say, 30 June, we are not able to ship something, we ship on 1 July, it will count it next quarter. So better you take year on year concept, that will be much better for you to analyze the company performance, which is going to be very healthy for next 3 years going forward.

Arun Kumar Sharma: If you are benchmarking quarter-on-quarter, I can say that we will not let you down. I think you are fully confident. We are also equally confident. But as a prudent and a long-term investor, you should always look year-on-year because quarter-on-quarter, some shipments can get missed because of various issues, crises, something can happen on a shipment, some shipments get delayed here and there.

Speaker #3: But as a prudent and long-term investor, you should always look year on year. Because quarter on quarter, you know, some shipments can get missed because of, when they say crisis, you know, something can happen with a shipment—some shipment gets delayed here and there.

Speaker #3: One shipment can misuse different in a top line. Say 30th June, we are not able to ship something, we shipped on 1st July. It will counted next quarter.

Arun Kumar Sharma: One shipment can make huge difference in a top line. For, let us say, 30 June, we are not able to ship something, we ship on 1 July, it will count it next quarter. So better you take year-on-year concept, that will be much better for you to analyze the company performance, which is going to be very healthy for next 3 years going forward.

Speaker #3: So, better you take a year-on-year concept. That will be much better for you to analyze the company's performance, which is going to be very healthy for the next three years going forward.

Speaker #4: Okay. Sir, now on the capital work in progress—and my voice is echoing.

Saket Kapoor: Okay. Sir, on the capital work in progress and the. My voice is echoing. Hello?

Speaker #3: No, no, we can hear you clearly. Please go ahead.

Arun Kumar Sharma: No, we can hear you clearly. Please go ahead.

Speaker #4: Okay, fine. Sir, on the capital work in progress closing balance, can you give some more color on how this number is going to shape up with the Egypt expected unit getting capitalized by September?

Saket Kapoor: Okay, fine. Sir, on the capital work in progress closing balance, can you give some more color how is this number going to shape up with the Egypt expected unit getting capitalized? By September, what would be the closing balance? Going ahead, what are our projects where we will be putting some of other money?

Speaker #4: What would be the closing balance, and going ahead, what are our projects for where we'll be putting some further money?

Speaker #3: Yeah, yeah. Good, good, valid question. So I'll tell you, for this year, we have three— we have four capex which we have done in FY27.

Arun Kumar Sharma: Yeah. Good. Very good question. I will tell you, for this year, we have four CapEx which we have done in FY27 or planned in FY27. First, the Egypt one, which is coming up with a capacity of 12 billion packs, where we have already done our CapEx of over $100 million. Now only CapEx, what is remaining is $15 million. Not much CapEx is planned for Egypt now going forward. Similarly, Dharwad, India, which is a brownfield BOPP line, where we have done a CapEx of $10 million. There we plan a good CapEx of around $50 odd million, which we are planning for FY27 and FY28 put together. Something will go in Mexico also. We have a, I think WPP bag is already announced, but we have done a CapEx $54 million, and we are not expecting much CapEx to be done there now.

Speaker #3: Our plan in FY27, first is Egypt One, which is coming up with a capacity of 12 billion packs, where we have already done a capex of over $100 million.

Speaker #3: And now, only capex that is remaining is $15 million. So, not much capex is planned for Egypt now going forward. Similarly, Dharpal, which is Dharwad, India, which is a brownfield BOPP line, where we have done a capex of $10 million.

Speaker #3: There, we plan a good capex of around $50 million, which we are planning for FY27 and 28 put together. Some of it will go into Mexico as well.

Arun Kumar Sharma: There we plan a good CapEx of around $50 odd million, which we are planning for FY27 and FY28 put together. Something will go in Mexico also. We have a, I think WPP bag is already announced, but we have done a CapEx $54 million, and we are not expecting much CapEx to be done there now. All CapEx is done. Noida Sector 155, we have done a CapEx of $32 million. We are all done with that CapEx. From this you can see our CapEx cycle for this financial year is almost 75% done.

Speaker #3: We have, I think, WPP bag is $54 million. I do not expect much capex to be done there now, so all capex is done.

Arun Kumar Sharma: All CapEx is done. Noida Sector 155, we have done a CapEx of $32 million. We are all done with that CapEx. From this you can see our CapEx cycle for this financial year is almost 75% done. Whatever CapExes are remaining, which are new CapExes of around, if you put total all this, will be around $100, less $80 million CapEx we will be doing going forward. You can see from that whatever CapEx we are putting up, we are putting with a very judicious understanding that they should start yielding results in next two years' time. Because whenever the CapEx is put up, first year it is just 20% capacity, second year it will be 50%, and third year will be 100% capacity. To keep the company growing consistently over years, we have to put CapEx.

Speaker #3: Noida Sector 155, we have done a capex of $32 million. So, we are all done with that capex. From this, you can see that our capex cycle for this financial year is almost 75% done.

Speaker #3: And whatever capexes are remaining, which are new capexes of around—if you put total, all this will be around $180 million capex we'll be doing going forward.

Arun Kumar Sharma: Whatever CapExes are remaining, which are new CapExes of around, if you put total all this, will be around $100, less $80 million CapEx we will be doing going forward. You can see from that whatever CapEx we are putting up, we are putting with a very judicious understanding that they should start yielding results in next two years' time. Because whenever the CapEx is put up, first year it is just 20% capacity, second year it will be 50%, and third year will be 100% capacity. To keep the company growing consistently over years, we have to put CapEx.

Speaker #3: So you can see from that that whatever capex we are putting up, we are putting with a very judicious understanding that they should start yielding results in the next two years' time.

Speaker #3: Because whenever the capex is put up, first year it is just 20% capacity, second year it will be 50%, and third year it will be 100% capacity.

Speaker #3: So, to keep the company growing consistently over the years, we have to put in capex. But you can see, wherever we have put capex—in Egypt, Dharwad, India—there have been results.

Arun Kumar Sharma: Wherever we have put CapEx in Egypt, Dharwad, India, Mexico, they are all yielding very good results. Because of these CapExes, you can see our numbers are showing where they are right now. These numbers are not just because we have done some magic in last one year. The efforts are going on for last three years. That is why these numbers are coming up. When I am talking FY29, whatever efforts we are putting this year, they will show a good result in FY29. It is a continuous process of putting CapEx, milking those CapEx and earning the revenue. Had this company been only present in India, then you would have seen we are in a very tough spot.

Speaker #3: And because of these capexes, you can see our numbers are showing where they are right now. So, these numbers are not just because we have done some magic in the last one year.

Speaker #3: The efforts have been going on for the last three years. That's why these numbers are coming up. And when I'm talking about FY29, whatever efforts you're putting in this year, they will show good results in FY29.

Speaker #3: It's a continuous process of putting in capex, milking those capex, and earning the revenue. Because had this company been only present in India, then you would have seen we're doing a very tough spot.

Arun Kumar Sharma: It is a continuous process of putting CapEx, milking those CapEx and earning the revenue. Had this company been only present in India, then you would have seen we are in a very tough spot. Because we are geographically so diversified, in this challenging situation also, in challenging times also, we are delivering a very good margins to our shareholders, a very good top-line growth to our shareholders, which will continue till FY29.

Speaker #3: But because we are geographically so diversified, in these challenging situations, also in challenging times, we are delivering very good margins to our shareholders.

Arun Kumar Sharma: Because we are geographically so diversified, in this challenging situation also, in challenging times also, we are delivering a very good margins to our shareholders, a very good top-line growth to our shareholders, which will continue till FY29.

Speaker #3: We are providing very good top-line growth to our shareholders, which will continue until FY29.

Speaker #4: Just to add to the Egypt part of the story, and I'll join the queue. That is 12 billion packs. So for this year, we will be ramping up the capacity, and the contribution will be in what vicinity?

Saket Kapoor: Just to add to the Egypt part of the story, I will join the queue. That is 12 billion packs. For this year, we will be ramping up the capacity and the contribution will be, sir, in what vicinity? Secondly, for the Noida recycling, it is INR 30 million or $30 million, sir? I missed your number, the investment.

Speaker #4: And secondly, for the Noida recycling, is it 30 million rupees or 30 million dollars, sir? I missed your number—the investment.

Speaker #3: Noida, we have done $30 million till now, and as for the capex to be done, not much more capex has to be done there.

Arun Kumar Sharma: Noida, we have done $30 million till now, which is the CapEx to be done. Not more CapEx has to be done there now. If you are seeing Egypt, we will announce commissioning very soon. I think the trials are going on there. In the first year, if everything goes fine, because plants, you know, a lot of technical things to happen there. We can see around 30% capacity being utilized there. So out of 12 billion packs, what we annual capacity, we can do 30% in first year. Second year, certainly we will reach around 60% to 70%. Third year, we reach around 100% capacity there. So you can see how the buildup will happen.

Speaker #3: And if you’re seeing Egypt, which we’ll announce commissioning very soon, I think the trials are going on there. And the first year, if everything goes fine—because a lot of technical things have to happen there.

Speaker #3: We can see around 30% capacity being utilized there. So out of the 12 billion packs that we handle capacity for, we can do 30% in the first year.

Arun Kumar Sharma: So out of 12 billion packs, what we annual capacity, we can do 30% in first year. Second year, certainly we will reach around 60% to 70%. Third year, we reach around 100% capacity there. So you can see how the buildup will happen. Egypt being our second largest manufacturing site from Uflex global perspective, we are very well, I think, there to launch it very soon now, and you will see the results coming up in Q3 and Q4 also.

Speaker #3: In the second year, certainly, we'll reach around 60 to 70%. And in the third year, we'll reach around 100% capacity there. So you can see how the buildup will happen.

Speaker #3: But Egypt, being the second largest manufacturing site from Uflex's global perspective, we are very well, I think, there. We plan to launch it very soon now, and you'll see the results coming up in Q3 and Q4 also.

Arun Kumar Sharma: Egypt being our second largest manufacturing site from Uflex global perspective, we are very well, I think, there to launch it very soon now, and you will see the results coming up in Q3 and Q4 also.

Speaker #4: Okay. And sir, about the.

Saket Kapoor: Okay. Sir, about the book-

Operator 3: I am sorry to interrupt, sir. Can you repeat the question?

Operator: I am sorry to interrupt, sir. Can you repeat the question?

Speaker #2: I'm sorry to interrupt. Sir, can you rejoin the queue?

Speaker #4: Yes, ma'am. Yes, ma'am, I will rejoin. And thank you. I will wait for my opportunity. Thank you, ma'am.

Saket Kapoor: Yes, ma'am. I will. Thank you, sir. Will wait for my opportunity. Thank you, ma'am.

Speaker #2: Thank you. The next question is from the line of Ritesh Parikh from NV Alpha Asset. Please go ahead.

Operator 3: Thank you. The next question is from the line of Ritesh Parikh from NV Alpha Asset. Please go ahead.

Operator: Thank you. The next question is from the line of Ritesh Parikh from NV Alpha Asset. Please go ahead.

Ritesh Parikh: Sure. Thanks for the opportunity and congratulations on good set of numbers. Sir, just want to understand this recent price in BOPP and PP price. Are they stable at this higher level, or how is it like? How one should look into it?

Rikesh Parikh: Sure. Thanks for the opportunity and congratulations on good set of numbers. Sir, just want to understand this recent price in BOPP and PP price. Are they stable at this higher level, or how is it like? How one should look into it?

Speaker #4: Sir, thanks for the opportunity and congratulations on a good set of numbers. Sir, I just want to understand the recent price trends in BOPP and PET prices.

Speaker #4: Are they stable at this higher level, or how is it—like, how should one be looking at it?

Arun Kumar Sharma: These prices are quite stable as of now. We do not see any major correction in the prices. These are global situations evolving every day. Till this freight remains high, and this crisis keeps on happening in West Asia, we see the prices being in the vicinity, what they are currently. If everything normalizes, you may see some correction in the prices, but our raw material sourcing and our finished selling prices will have the same margin what we have now. So we are not much concerned on the pricing front. We are concerned that whatever margins we make, we should continue to hold those margins. We are confident that we hold those margins throughout the year.

Speaker #3: Prices are quite stable as of now, but we don't see any major correction in the prices. However, you know these are global situations evolving every day.

Speaker #3: Till this route remains high and this crisis keeps on happening in West Asia, we see the prices being in the vicinity of what they are currently.

Speaker #3: But if everything normalizes, you may see some correction in the prices. But our raw material sourcing and our finished selling prices will have the same margin that we have now.

Speaker #3: So, we are not much concerned on the pricing front. We are concerned that whatever margins we make, we should continue to hold those margins.

Speaker #3: And we are confident that we will maintain those margins throughout the year.

Speaker #4: Sure. That's helpful. Secondly, means what should be the EBITDA band we should be looking at on an adjusted business as of currency what we reflect around 15 and half was current this quarter.

Ritesh Parikh: Sure. That's helpful. Secondly, what should be the EBITDA band we should be looking at on an adjusted basis ex of currency, what we reflect around 15.5% current this quarter?

Rikesh Parikh: Sure. That's helpful. Secondly, what should be the EBITDA band we should be looking at on an adjusted basis ex of currency, what we reflect around 15.5% current this quarter?

Speaker #3: The currency is only ₹70 crores. It's not a big amount, and ₹70 crores on 5,000 plus turnover is a very minimal amount. The currency is not impacting much.

Arun Kumar Sharma: The currency is only INR 70 crores. It's not a big amount. In INR 70 crores on INR 5,000 plus turnover is very minimal amount. Currency is not impacting much our margin, and it's 70-odd crores, which can go here and there in every quarter, and you never know. Don't read too much into that currency because it can be negative also next quarter. I think you should read the margin as what I've given the guidance in the beginning that we'll have 35% growth as compared to last year in the margins in FY27. Similarly on the top line also, we'll have that growth.

Arun Kumar Sharma: The currency is only INR 70 crore. It's not a big amount. In INR 70 crore on INR 5,000 plus turnover is very minimal amount. Currency is not impacting much our margin, and it's 70-odd crore, which can go here and there in every quarter, and you never know. Don't read too much into that currency because it can be negative also next quarter. I think you should read the margin as what I've given the guidance in the beginning that we'll have 35% growth as compared to last year in the margins in FY27. Similarly on the top line also, we'll have that growth.

Speaker #3: Our margin—and it is 70-odd crores—which can go here and there every quarter, and you never know. So don't read too much into that currency, because it can be negative also next quarter.

Speaker #3: So, I think you should read the margin as per the guidance I gave at the beginning, that we'll have 35% growth compared to last year in the margins.

Speaker #3: In FY27, and similarly on the top line also, we’ll have that growth.

Speaker #4: Okay. And in terms of that, should we consider this as the peak that we have reached as of now from your view?

Ritesh Parikh: Okay. In terms of debt, should we consider this is the peak debt we have reached as of now from the immediate CapEx point of view?

Rikesh Parikh: Okay. In terms of debt, should we consider this is the peak debt we have reached as of now from the immediate CapEx point of view?

Speaker #3: See, first of all, let me just tell you, don't link capex and debt. Capex we’re doing for growth. And if you don't do capex, how will you grow?

Arun Kumar Sharma: See, first of all, let me just tell you, don't link CapEx and debt. CapEx we are doing for growth. If you don't do CapEx, how will you grow? Whatever growth you're seeing in the company today has been a result of CapEx we've done three years back. Today, what CapExes we'll do, they'll give us a good growth in FY28, FY29. CapEx we have to do because we can't be restricting ourselves in one geography. Otherwise, the company will not be able to sustain all these geopolitical pressures, competition, and other things. We want to be near to the customers. Wherever we have a big market, like you see in Middle East, we cater through Dubai facility. In US and other places, we cater to our Mexico facility. In Europe, we cater to our Poland and Hungary facility.

Speaker #3: So, whatever growth you're seeing in the company today has been the result of capex we've done three years back. The capex we do today will give us good growth in FY28, FY29.

Speaker #3: So, capex we have to do because we can't be restricting ourselves to one geography. Otherwise, the company will not be able to sustain all these geopolitical pressures, competition, and other things.

Arun Kumar Sharma: Otherwise, the company will not be able to sustain all these geopolitical pressures, competition, and other things. We want to be near to the customers. Wherever we have a big market, like you see in Middle East, we cater through Dubai facility. In US and other places, we cater to our Mexico facility. In Europe, we cater to our Poland and Hungary facility.

Speaker #3: So we want to be near to the customers wherever we have a big market. Like you see, in the Middle East, we cater through the Dubai facility. In the US and other places, we cater to a Mexico facility.

Speaker #3: In Europe, we cater through our Poland and Hungary facility. And in Nigeria, we cater to African customers. All customers are catered—mostly, we are trying to be near to the customers, so that this geopolitical—what is happening—when shipment becomes so difficult from one place to other places, it doesn't affect us.

Arun Kumar Sharma: In Nigeria, we cater to African customers. All customers are catered. Mostly we are trying to be near to the customer so that this geopolitical, what is happening when shipment becomes so difficult from one place to other places, it will not affect us. We are de-risking our top-line model in such a way that we have to present at least 75% of our turnover should come from near to our customer policy. That is what we are adopting. That is on the CapEx front. On the debt front, I think we are very conscious of this, that our debt was higher in FY2026. Our debt-EBITDA margin was around 4.5 times, which you would see in this quarter itself, it has come down to 3.5.

Speaker #3: So, we are de-risking our top-line model in such a way that we are present—at least 75% of our turnover should come from our 'near to our customer' policy. That is what we are adopting.

Speaker #3: So that is on the capex front. On the debt front, I think we are very, very conscious of this, that our debt was higher in FY26.

Arun Kumar Sharma: That is on the CapEx front. On the debt front, I think we are very conscious of this, that our debt was higher in FY2026. Our debt-EBITDA margin was around 4.5 times, which you would see in this quarter itself, it has come down to 3.5. Going forward also, we will ensure that we retain the same kind of leverage what we have as of now. This leverage will come down by end of FY2028 much lower once all these capacities what are utilized not to be 100% become 100% capacity utilization. Then you will see our leverage going even below 3 times by FY2028.

Speaker #3: Our debt-to-EBITDA margin was around four and a half times, which you would see in this quarter itself has come down to three and a half times.

Speaker #3: And going forward also, we'll ensure that we retain the same kind of leverage that we have as of now. And this leverage will come down by the end of FY28, much lower, once all these capacities—which are not utilized to 100%—become 100% utilized.

Arun Kumar Sharma: Going forward also, we will ensure that we retain the same kind of leverage what we have as of now. This leverage will come down by end of FY2028 much lower once all these capacities what are utilized not to be 100% become 100% capacity utilization. Then you will see our leverage going even below 3 times by FY2028. We are very much conscious, aware of this fact that leverage has to be under control, which is under control because we are paying all loans on time, all interest on time. That is least of our worry. Our worry is that we have to grow with the complex environment, what we are operating in. We should give good growth to our shareholders, which is around 30% each year on bottom and top line. That is our first target now. I hope I have answered your question.

Speaker #3: Then you see our leverage going even below three times by FY28. So we are very much conscious and aware of this fact that leverage has to be under control, which it is, because we are paying all loans on time, all interest on time.

Arun Kumar Sharma: We are very much conscious, aware of this fact that leverage has to be under control, which is under control because we are paying all loans on time, all interest on time. That is least of our worry. Our worry is that we have to grow with the complex environment, what we are operating in. We should give good growth to our shareholders, which is around 30% each year on bottom and top line. That is our first target now. I hope I have answered your question.

Speaker #3: So that is the least of our worries. The real concern is that we have to grow within the complex environment in which we are operating. We should deliver good growth to our shareholders, which is around 30% each year.

Speaker #3: On both the bottom and top lines, that is our first target now. I hope I've answered your question.

Speaker #4: Yeah, sure. Thanks for the last question. We have mentioned that, in aseptic packaging, we are seeing some dumping and aggressive pricing in the imports. So, is it normalizing now, or how is it looking?

Ritesh Parikh: Yeah, sure. Thanks. The last question. You mentioned that aseptic packaging, we are seeing some dumping and aggressive pricing in the imports. Is it normalizing now or how is it like?

Rikesh Parikh: Yeah, sure. Thanks. The last question. You mentioned that aseptic packaging, we are seeing some dumping and aggressive pricing in the imports. Is it normalizing now or how is it like?

Speaker #3: So, what has happened in aseptic is, we are getting a lot of duty-free imports from Indonesia, where India has signed a treaty under which duty-free imports keep on coming.

Arun Kumar Sharma: What has happened in aseptic, we are getting a lot of duty-free imports from Indonesia where India signed a treaty where duty-free imports keep on coming. Indian market, its consumer market is growing at least 5% to 8% each year now. The demand is also increasing. We are hopeful that even despite this dumping by Indonesia, the volumes requirement in India and other markets will be much higher. This quarter, of course, our volumes have not grown so much. But value-wise we have grown because whatever value addition price we are getting, because now we are moving from normal films to value-added products, which can give us a better realization. Those are being done very aggressively now. From Q3 onwards, you see aseptic coming back on track, which was little, I think, volume-wise, not the price-wise. It was a little slow in this quarter.

Speaker #3: But the Indian market, you know, is growing several percent each year now. So the demand is also increasing. So we are hopeful that even despite this dumping by Indonesia, the volume requirement in India and other markets will be much higher.

Speaker #3: And this quarter, of course, our volumes have not grown so much. But value-wise, we have grown because of the value addition and prices we’re getting, as we are now moving from normal SKUs to value-added products, which can give us a better realization.

Arun Kumar Sharma: But value-wise we have grown because whatever value addition price we are getting, because now we are moving from normal films to value-added products, which can give us a better realization. Those are being done very aggressively now. From Q3 onwards, you see aseptic coming back on track, which was little, I think, volume-wise, not the price-wise. It was a little slow in this quarter.

Speaker #3: So those are being done very aggressively now. So from Q3 onwards, you see aseptic coming back on track, which was a little—I think volume-wise, not price-wise.

Speaker #3: It was a little slow in this quarter. Next quarter will pick up, and then, because all this packaging industry is more linked to the consumer growth or FMCG growth in India, which we are seeing very good growth coming forward now.

Arun Kumar Sharma: Next quarter will pick up because all this packaging industry is more linked to the consumer growth or FMCG growth in India, which we are seeing very good growth coming forward now because middle class income is expanding from 20 crore to 30 crore now. They will be buying all this material. Packaging is something which is very integral to our growth in India. Everything in India is getting dispatched now. It is not people do not go and buy from the market, they order. Packaging becomes a very critical thing now. You see aseptic packaging is going to be a big driver of growth for the company going forward because it improves the quality of the product, it improves the life of the product, it improves the aesthetic appeal of the product. All these are going to help.

Speaker #3: Because middle-class income is expanding from 20 crore to 30 crore now. They'll be buying all these materials, and packaging is something which is very integral to our growth in India.

Speaker #3: And everything in India is, I think, getting dispatched now. People don't go and buy from the market; they order. So packaging becomes a very critical thing now.

Arun Kumar Sharma: Everything in India is getting dispatched now. It is not people do not go and buy from the market, they order. Packaging becomes a very critical thing now. You see aseptic packaging is going to be a big driver of growth for the company going forward because it improves the quality of the product, it improves the life of the product, it improves the aesthetic appeal of the product. All these are going to help. We have a capacity, installed capacity of almost 24 billion there. I think we will be using much of the capacity by the year-end now.

Speaker #3: You see, aseptic packaging is going to be a big driver of growth for the company going forward, because it improves the quality of the product.

Speaker #3: It improves the life of the product. It improves the aesthetic appeal of the product. So all these are going to help, and we have an installed capacity of almost 24 billion there.

Arun Kumar Sharma: We have a capacity, installed capacity of almost 24 billion there. I think we will be using much of the capacity by the year-end now.

Speaker #3: And I think we'll be using much of the capacity by the year-end now.

Speaker #4: Sure, thank you. That's it from my side, and all the best for the future.

Ritesh Parikh: Sure. Thank you. That is it from my side and all the best for the future.

Rikesh Parikh: Sure. Thank you. That is it from my side and all the best for the future.

Speaker #3: Thank you.

Speaker #2: Thank you. The next question is from the line of Chirag Singal from First Quarter Fund. Please go ahead.

Arun Kumar Sharma: Thank you.

Operator 3: Thank you. The next question is from the line of Chirag Singhal from First Water Fund. Please go ahead.

Operator: Thank you. The next question is from the line of Chirag Singhal from First Water Fund. Please go ahead.

Speaker #4: Yeah, thanks for the opportunity, and congratulations on a great set of numbers. First question on the Egypt Asepto: by when do you see this plant getting commissioned, and have we received all the necessary approvals and accreditations from customers already?

Chirag Singhal: Yeah. Thanks for the opportunity and congrats on great set of numbers. First question on the Egypt Asepto. By when do you see this plant getting commissioned and have we received all the necessary approvals and accreditation from customers already?

Speaker #3: Yeah, yeah. Those things are in progress, and we are very advanced on those things as of now. That is why we are confident that, in H1, this should be commercialized.

Arun Kumar Sharma: Yeah. Those things are in progress and we are very advanced on those things as of now. That is why we are confident that in H1 it should be commercialized because I think we have got almost all the approvals now. But seeing the geopolitical scenario, we are saying H1, it can be a little bit here and there, so 1 or 2 weeks here and there, but we are targeting H1 as of now.

Speaker #3: Because I think we have got almost all the approvals now. But seeing the geopolitical scenario, in H1, it can be a little bit here and there—one or two weeks here and there.

Speaker #3: But we are targeting H1 as of now.

Speaker #4: Okay. And you mentioned 30% utilization for the current year. So, is that 30% for six months, or was it 30% annualized?

Chirag Singhal: Okay. You mentioned 30% utilization for the current year. So 30% for 6 months or it was 30% annualized?

Speaker #3: It will be annualized now because we don't talk of a broken period. We should always take annualized numbers into account. And I think maybe once we again get assembled in Q3, you'll see the impact of the numbers.

Arun Kumar Sharma: It will be annualized now because we do not talk of a broken period. We should always take annualized numbers into account. I think maybe once we again get assembled in Q3, you will see the impact of the numbers.

Speaker #4: So you’re expecting close to 2 billion packs in terms of volumes from the Egypt facility in the current year?

Chirag Singhal: You are expecting close to 2 billion packs in terms of volumes from Egypt facility in the current year?

Speaker #3: Yeah, should be around that—$2 billion.

Arun Kumar Sharma: Yeah, it should be around that.

Chirag Singhal: Okay.

Speaker #4: Okay.

Arun Kumar Sharma: Chirag, Surajit here. Basically what Arun is mentioning is that 12 months, in one year post-commercialization, that will be the number we are targeting.

Surajit Pal: Chirag, Surajit here. Basically what Arun is mentioning is that 12 months, in one year post-commercialization, that will be the number we are targeting.

Speaker #3: Yeah.

Speaker #1: Chirag, Surjit here. So, basically, what Arul is mentioning is that 12 months in one year post-commercialization will be the number we are targeting.

Speaker #4: So for this year, how much volume should we expect from Egypt? Egypt and total—like total aseptic volumes—and coming from Egypt?

Chirag Singhal: For this year, how much volume should we expect from Egypt? Egypt in total, like the total volumes coming from Egypt.

Speaker #3: See, Egypt—only Egypt—is to see. We are setting up a $12 billion capacity there. And if we see, start operating on 1st October, this is what we are seeing.

Arun Kumar Sharma: Only Egypt is to see we are setting up a 12 billion capacity there. If we start operating on 1 October, this is what we are saying, then six months operation is there. In six months, the facility becomes 6 billion. Out of 6 billion, you say if we use capacity utilization is 30%, you can very well say, let's say it's at 2 billion around that will be used up in this financial year.

Speaker #3: Then six months' operation is there. In six months, the facility becomes $6 billion. And out of $6 billion, you say if we use a capacity utilization of 30%, you can very well say, let's try to set $2 billion around—that will be used up in this financial year.

Speaker #4: Okay. Second question is on the utilization of the profits operating profits. So you mentioned that the growth that we have seen in Q1, you know, this year and even through FY 29, we are seeing good growth because all your KPIs are now coming to fruition.

Chirag Singhal: Okay. Second question is on the utilization of the operating profits. You mentioned that the growth that we have seen in Q1 this year and even through FY29, we are seeing good growth because all your CapExes are now coming to fruition. Broadly, what is the split that you see in terms of utilization? How much do you see will go towards debt reduction? How much do you think will go towards CapEx? If you have any number for, let's say, rewarding the shareholders in form of buybacks and dividends, how much would that number be? Because in the past, what we have seen is that you have taken all these huge CapExes debt and internal accruals, using both debt and internal accruals. Going forward, what is your plan in terms of utilizing the cash flows?

Speaker #4: So, broadly, what is the split that you see in terms of utilization? How much do you see will go towards debt reduction? How much do you think will go towards capex? And if you have any number for, let's say, rewarding the shareholders in the form of buybacks and dividends, how much would that number be?

Chirag Singhal: If you have any number for, let's say, rewarding the shareholders in form of buybacks and dividends, how much would that number be? Because in the past, what we have seen is that you have taken all these huge CapExes debt and internal accruals, using both debt and internal accruals. Going forward, what is your plan in terms of utilizing the cash flows? What percentage of it will go to CapEx, debt reduction, and rewarding the shareholders?

Speaker #4: So in the past, what we have seen is that, you know, you have taken like you know, huge all these huge KPIs. Debt and internal approvals using both debt and internal approvals.

Speaker #4: So, going forward, what is your plan in terms of utilizing the cash flows? What percentage of it will go to KPIs, debt reduction, and rewarding the shareholders?

Chirag Singhal: What percentage of it will go to CapEx, debt reduction, and rewarding the shareholders?

Arun Kumar Sharma: Chirag, in any company if you see, if there is no growth opportunity, we do a buyback of shares. We have seen in IT industry, when IT industry was really under pressure, they did buyback of shares. But in our industry, growth opportunity is so much that even if we do not reward our shareholders by buying back the shares, they will get rewarded by increasing the wealth. So either we reward shareholders by increasing the wealth or by doing buyback, is one and the same thing. Our policy is that we should reward the shareholders by increasing the wealth. Which you will see in next 3 years, I think wealth creation will happen, so that shareholders will not have any point to complain. We hope that we will grow more than the benchmark. Second, you asked how much debt reduction will happen. I have given you number already.

Speaker #3: See, Chirag, in any company, if you see that there's no growth opportunity, we do a buyback of shares. We have seen in the IT industry, when the IT industry was really under pressure, they did a buyback of shares.

Speaker #3: But in our industry, growth opportunity is so much that even if we don't reward our shareholders by buying back the shares, they'll get rewarded by increasing their wealth.

Speaker #3: So, either we reward shareholders by increasing their wealth or by doing a buyback—both are essentially the same thing. Our policy is that we should reward the shareholders by increasing their wealth.

Arun Kumar Sharma: Our policy is that we should reward the shareholders by increasing the wealth. Which you will see in next 3 years, I think wealth creation will happen, so that shareholders will not have any point to complain. We hope that we will grow more than the benchmark. Second, you asked how much debt reduction will happen. I have given you number already.

Speaker #3: Which you see in the next three years, I think wealth creation will happen, so that shareholders will not have any point to complain about that.

Speaker #3: And we hope that we'll grow more than the benchmark. Second, you asked how much debt reduction will happen. So, I have already given you the number.

Speaker #3: We have reduced our ratio from four and a half times to three and a half. So, one time is a big reduction—a 30% reduction in our leverage.

Arun Kumar Sharma: We have reduced our ratio from 4.5 times to 3.5. One time is a big reduction, 30% reduction in our leverage. Going forward, what I am saying is FY28 will be at 3, which is further reduction. I am not going beyond 2028. By 2029, you can see if the same trend continues, there will be much more reduction. Whatever debt reductions do happen and surplus cash we generate, they will go for reduction of debt only and the shareholders' value will keep on increasing. So be patient. Whatever we are doing, we are very conscious of the fact that we have to reward our shareholders either by way of generating the wealth or by buyback. But buyback is something which is for the industry where there is no growth plan.

Speaker #3: And going forward, what I'm saying is FY28 will be at three, which is a further reduction. So I'm not going beyond 28. By 29, you can see if the same trend continues, there'll be much more reduction.

Speaker #3: So, whatever debt reductions do happen, and any surplus cash we generate, they'll go toward reduction of debt only, and the shareholders' value will keep on increasing.

Speaker #3: So be patient. Whatever we are doing, we are very conscious of the effect—that we have to reward our shareholders, either by way of generating wealth or by buyback.

Arun Kumar Sharma: So be patient. Whatever we are doing, we are very conscious of the fact that we have to reward our shareholders either by way of generating the wealth or by buyback. But buyback is something which is for the industry where there is no growth plan. But we have a growth plan, so we will always reward our shareholders by generating a good wealth for them.

Speaker #3: But buyback is something which is for the industry where there's no growth plan. But we have a growth plan, so we'll always reward our shareholders by generating good wealth for them.

Arun Kumar Sharma: But we have a growth plan, so we will always reward our shareholders by generating a good wealth for them.

Speaker #4: Got it. So you mentioned, you know, FY 29, couple of times on today's call as as something that you are we should be looking at for growth.

Chirag Singhal: Got it. You mentioned FY29 couple of times on today's call as something that we should be looking at for growth. When all your CapExes will be commissioned, then you will be running at full utilization. If you were to put numbers to it, for this year you have mentioned 30% plus, 35% top-line growth and similar number you are expecting on the bottom line. But till FY29, what is the CAGR, if you look at FY26 as a base, what is the CAGR that I should be keeping in mind in terms of top line and bottom line? Any metric that you can provide which can give a better idea about what we are looking at in terms of FY29.

Speaker #4: When all your KPIs are commissioned, then it will be, you know, running at full utilization. So, if you were to put numbers to it—I mean, for this year, you have mentioned 30% plus.

Speaker #4: 35% top line growth and similar number you are expecting on the bottom line. But till FY 29, like what is the CAGR if you look at FY 26 as the base, what is the CAGR that I should be keeping in mind in terms of top line and bottom line?

Speaker #4: Any metric that you can provide which can give a better idea about what we're looking at in terms of FY29?

Speaker #3: See, why we are talking about FY29 more prominently as of now is because the aseptic facility in Egypt will be 100% utilized by that time.

Arun Kumar Sharma: See, why we are talking FY29 more prominently as of now is because the Asepto facility in Egypt will be 100% utilized by that time. We can see 12 billion packs coming in market and giving the full returns to us. Our recycling facility in Noida will be 100% up and running that time. WPP also will be 100% running at that time. Even these three facilities will give a very good CAGR to the business as a whole. If you want to look at these CAGRs, I think we have to calculate these numbers. I think, because I do not want to quote any number as of now, I can quote 10% or something, but that will be misleading. So what I will request Surajit to share the number with you once we have the calculations.

Speaker #3: So, you can see 12 billion packs coming into the market and giving the full returns to us. Our recycling facility in Noida will be 100% up and running at that time.

Speaker #3: So, and WPB also will be 100% running by that time. So, even these three facilities will give a very good CAGR to the business as a whole.

Speaker #3: But if you want to look at these CAGRs, I think we have to calculate these numbers. But I think if you—because I don't want to quote any number as of now—I could quote 10% or something, but that would be misleading.

Arun Kumar Sharma: I think, because I do not want to quote any number as of now, I can quote 10% or something, but that will be misleading. So what I will request Surajit to share the number with you once we have the calculations. All these three facilities when to 100% come up online, you can see what kind of top line and what kind of bottom line will be there in the system at all. That will give a big flip to our top line as well as bottom line, and see a very good growth. I think CAGR from 2026 to 2029, four years at least should see 10%. That is what I feel. But we will reconfirm to you these numbers. Surajit, you can confirm the numbers.

Speaker #3: So what I'll do is request Surajit to share the number with you once we have the calculations. But all these three facilities, when they go to 100% and come online, you can see what kind of top line and what kind of bottom line will be there in the system at all.

Arun Kumar Sharma: All these three facilities when to 100% come up online, you can see what kind of top line and what kind of bottom line will be there in the system at all. That will give a big flip to our top line as well as bottom line, and see a very good growth. I think CAGR from 2026 to 2029, four years at least should see 10%. That is what I feel. But we will reconfirm to you these numbers. Surajit, you can confirm the numbers.

Speaker #3: So that will give a big lift to our top line as well as bottom line, and we should see very good growth. And I think CAGR from 2026 to 2029, over four years, at least you should see 10%.

Speaker #3: That is what I feel. But we'll reconfirm these numbers to you. Surajit, you can confirm the numbers for me, yeah.

Speaker #4: Sure. Okay. So just a follow up on the, you know, the utilization of cash flow. So I understand that, you know, you want to keep reinvesting because I mean, I agree that that that's how you will see growth.

Chirag Singhal: Sure.

Arun Kumar Sharma: Yeah.

Surajit Pal: Sure.

Arun Kumar Sharma: Yeah.

Chirag Singhal: Okay. Just a follow-up on the utilization of cash flow. I understand that you want to keep reinvesting because I agree that is how you will see growth. But maybe if you can guide me in a different way, which is incrementally whatever cash flows it will generate and whatever you will apportion it towards CapEx, what percentage of it will go towards packaging films and what percentage of it will go towards non-packaging films? Because I think in the last three, four years, there has been a clear shift towards high margin, high ROE businesses. Like most of your capital has gone towards the high ROE segments such as Asepto, now WPP bags, recycling. These three are your, I believe, high margin, high ROE verticals.

Speaker #4: But maybe if you can, you know, guide me in a different way, which is incrementally—whatever cash flows you will generate and whatever you will apportion towards KPIs.

Speaker #4: What percentage of it will go towards packaging things and what percentage of it will go towards non-packaging things? Because I think in the last three, four years, there has been a clear shift towards high-margin, high-ROE businesses.

Chirag Singhal: Because I think in the last three, four years, there has been a clear shift towards high margin, high ROE businesses. Like most of your capital has gone towards the high ROE segments such as Asepto, now WPP bags, recycling. These three are your, I believe, high margin, high ROE verticals. Incrementally, do you have any number that you have kept for yourself that, okay, this is the total CapEx that we are going to spend and out of that, this much will go towards packaging films and the rest will go towards all these high margin verticals.

Speaker #4: Like most of your capital has gone towards, you know, the high ROE segments, such as Asepto, now WPP bags, and recycling. These three are, I believe, your high-margin, high-ROE verticals.

Speaker #4: So incrementally, do you have any you know, number that you have kept for yourself that, okay, this this this is the total KPIs that we are going to spend and how much out of that, this much will go towards packaging things and the rest will go towards all these high margin verticals?

Chirag Singhal: Incrementally, do you have any number that you have kept for yourself that, okay, this is the total CapEx that we are going to spend and out of that, this much will go towards packaging films and the rest will go towards all these high margin verticals.

Speaker #3: See, right now, whatever growth you're seeing in margin is primarily coming from the value-added products that you are making. So, it's but natural that capital allocation will happen to these new sectors only.

Arun Kumar Sharma: See, right now, whatever growth you are seeing in margin is primarily coming from the value-added product, what we are making. It is but natural that capital allocation will happen to these new sectors only. Whatever CapEx we do going forward, at least 60% to 70% will go into value-added products only, and the rest can go into maintenance or regular products. Because like you see, WPP is coming up, Noida Sector 150 has come up, even Egypt is coming up. All this capital allocation has already been decided that we have to move from general product to value-added product to enhance our acceptability in the market, plus margin also will get improved because of that. Major CapEx will happen in these value-added products, and capital allocation also will happen accordingly.

Speaker #3: So whatever capex we do going forward, at least 60 to 70 percent will go into value-added products only. And the balance can go into maintenance or regular products.

Speaker #3: Because, like you see, WPP is coming up, Noida Sector 150 has come up, even Egypt is coming up. So, all this capital allocation has already been decided—that we have to move from general product to value-added product to enhance our accessibility in the market. Plus, margin also will get improved because of that.

Arun Kumar Sharma: All this capital allocation has already been decided that we have to move from general product to value-added product to enhance our acceptability in the market, plus margin also will get improved because of that. Major CapEx will happen in these value-added products, and capital allocation also will happen accordingly.

Speaker #3: So, major capex will happen in these value-added products, and capital allocation will also happen accordingly.

Speaker #4: So, 60% to 70% of the total KPIs—that will go towards... okay, that's very, yeah, that's very great. I mean, in terms of margins and ROE, I think it will be very good going forward.

Chirag Singhal: 60% to 70% of the total CapEx that will go towards.

Arun Kumar Sharma: Yeah.

Chirag Singhal: Okay. That is very great. In terms of margins and ROE, I think it will be very good going forward. Next question.

Speaker #4: Next question. Yeah.

Speaker #2: I'm sorry to interrupt, sir. Can you please return to the question queue? Thank you. Thank you. Participants are requested to please limit your questions to two per participant.

Operator 3: I am sorry to interrupt, sir. Can you please return to the question queue?

Operator: I am sorry to interrupt, sir. Can you please return to the question queue?

Chirag Singhal: Sure.

Operator 3: Thank you. Participants, I request, please limit your questions to two questions per participant. The next question is from the line of Tisha Shah from Equirus. Please go ahead.

Operator: Thank you. Participants, I request, please limit your questions to two questions per participant. The next question is from the line of Tisha Shah from Equirus. Please go ahead.

Speaker #2: The next question is from the line of Tisha Shah from Equintus. Please go ahead.

Tisha Shah: Hi. Congratulations on a great set of numbers. I just wanted to know, the 15.5% margins that you have given in this quarter, are they sustainable going forward, the normalized EBITDA margins?

Speaker #5: Hi. Congratulations on a great set of numbers. I just wanted to know: The 15.5% margins that you've given in this quarter—are they sustainable going forward?

Speaker #5: The normalized EBITDA margins?

Arun Kumar Sharma: In the beginning of the call, we said these margins are very sustainable going forward, not sustainable for this year, but going forward for next three years. Let me just add that 15.5% margin is something which we are working on it. What guidance we have given for FY27 is 30% top line and 30% bottom line growth. Similar growth we will have next year also. You can see what kind of margins we will be able to generate going forward. These are very margins which can be achieved with the kind of CapEx we have done, kind of focus we have on the value-added products now, and I think what market perception is and what market is treating us like this, it is going to happen in a long tenure base.

Speaker #3: See, in the beginning of the call, we said these margins are very sustainable going forward—and not just sustainable for this year, but for the next three years as well.

Speaker #3: But let me just add that the 15.5% margin is something we are working on. But the guidance we have given for FY27 is 30% top-line and 30% bottom-line growth.

Speaker #3: Similar growth we'll have next year also. So you can see what kind of margin we'll be able to generate going forward. But these are very, very achievable margins with the kind of capex we have done, the kind of focus we have on the value-added products now.

Arun Kumar Sharma: Similar growth we will have next year also. You can see what kind of margins we will be able to generate going forward. These are very margins which can be achieved with the kind of CapEx we have done, kind of focus we have on the value-added products now, and I think what market perception is and what market is treating us like this, it is going to happen in a long tenure base.

Speaker #3: And they'll—they'll, I think, what market perception is and what market is feeding us, like this, it is going to happen on a long-tenor basis.

Speaker #5: Perfect. Actually, it's 35% growth on the EBITDA from the March 26 numbers. It comes to 500-odd crores. And from that, we have already given 840-odd crores in Q1.

Tisha Shah: If I calculate 35% growth on the EBITDA from March 2026 numbers, it comes to INR 2,500 odd crores. From that, we have already given INR 840 odd crores in Q1. If I divide it in the rest of the quarters, it will come to only around INR 550 crores. These EBITDA margins.

Tisha Shah: If I calculate 35% growth on the EBITDA from March 2026 numbers, it comes to INR 2,500 odd crore. From that, we have already given INR 840 odd crore in Q1. If I divide it in the rest of the quarters, it will come to only around INR 550 crore. These EBITDA margins.

Speaker #5: So then if I divide it in the rest of the quarters, it will come to only around ₹550–550 crores. So then these EBITDA margins…

Arun Kumar Sharma: No. See, everything is not mathematics now. Everything business, everything is not mathematics. You have to look from a full financial year perspective. That is why I am saying, we will deliver for FY27 good results, and you can see 14% plus margin. As of now, what we can foresee that that will happen. But if things remain as good as they are currently, and no untoward incident happens on the geopolitical front, we will give you better results than this.

Speaker #3: Everything is not mathematics now. In business, everything is not mathematics. So you have to look from a full financial year perspective. And that's why I'm saying we'll deliver good results for FY27, and you can see 14% plus margin as of now, which we can perceive will happen.

Speaker #3: But if things remain as good as they are currently, and no untoward incident happens on the geopolitical front, we'll give you better results than this.

Tisha Shah: Okay.

Speaker #3: But don't do, do calculate on, on mathematics-wise, because it doesn't work that way in our business.

Arun Kumar Sharma: Do not calculate on mathematics wise, because it does not work that way in our business.

Speaker #5: Okay. Thank you.

Tisha Shah: Okay. Thank you.

Speaker #2: Thank you. The next question is from the line of Gervita Jen from Seven Islands PMS. Please go ahead.

Operator 3: Thank you. The next question is from the line of Garvita Jain from Seven Islands PMS. Please go ahead.

Operator: Thank you. The next question is from the line of Garvita Jain from Seven Islands PMS. Please go ahead.

Speaker #6: Hello.

Garvita Jain: Hello. Aditi, sir.

Speaker #3: Yeah. Hi. Yeah. Yeah. Please go ahead.

Arun Kumar Sharma: Yeah, hi. Yeah, please go ahead.

Garvita Jain: Hi, sir. My question is on the lines of volume growth. I wanted to understand that we also noticed that the revenue growth

Speaker #6: Hi, I have a question. My question is, along the lines of uplink growth, I wanted to understand—as you also noted—the revenue growth is...

Arun Kumar Sharma: Voice is not clear. Garvita, your voice is not

Speaker #3: Why, why, why is it not clear? Can you, Gervita—your voice is not audible.

Garvita Jain: Do you hear me?

Garvita Jain: Do you hear me? Do you hear me clearly now?

Speaker #6: Can you hear me? Can you hear me clearly now?

Arun Kumar Sharma: Reconnecting.

Garvita Jain: Do you hear me clearly now?

Speaker #3: Yeah.

Arun Kumar Sharma: Yeah.

Speaker #6: Hello.

Garvita Jain: Hello.

Speaker #3: Hello? Yeah. Yeah.

Arun Kumar Sharma: Yeah, please go ahead.

Speaker #6: Yeah, so I wanted to understand one thing. You noted that revenue growth this quarter was primarily value grading, correct? And then volume expansion was very limited.

Garvita Jain: Yeah. I wanted to understand one thing. We noticed that revenue growth this quarter was primarily volume-driven, correct? Volume expansion was very limited. Could you please disaggregate this volume growth? What I want to understand is what percentage was driven by cost pass-throughs and inflationary pricing actions versus structural expansion from a richer product mix or operating leverage.

Speaker #6: Could you please disaggregate this volume growth? What I want to understand is: what percentage was driven by cost pass-throughs and inflationary pricing actions versus a structural expansion from region, product mix, or operating leverage?

Speaker #3: So, very valid question, I think, you asked. But let me tell you, in our business, we don't carry much inventory in our books of accounts because prices fluctuate too often here.

Arun Kumar Sharma: Very valid question, I think, you asked. But let me tell you, in our business, we do not carry much inventory in our books of accounts because prices fluctuate too often here. Whatever gain you are seeing in our volume as well as in our prices, they are the prices which have been passed on to the customers.

Speaker #3: So, whatever gain you are seeing in our volume as well as in our prices, these are the prices which have been passed on to the consumers, to the customers.

Speaker #3: And whatever whatever prices we have we have we achieved in this quarter, the prices may a little bit differ in next quarter also, but I think we are seeing quite stable pricing going forward because things have become so complicated that anyone who can supply goods to the to the customers in a in a regular fashion so they look for a integrated player like like UFLEX, which is backward and forward integrated player.

Arun Kumar Sharma: Whatever prices we achieved in this quarter, the prices may little bit differ in next quarter also, but I think we are seeing quite stable pricing going forward because things have become so complicated that anyone who can supply goods to the customers in a regular fashion, they look for an integrated player like Uflex, which is backward and forward integrated player. We get the first opportunity to supply to the customers, and they are willing to pay reasonably good price to us to sustain their supply chain. Our supply chain is very strong. We are able to procure the raw material at a good price. We are able to supply the material to them from our various geographical locations.

Speaker #3: So, we get the first opportunity to supply to the customers, and they are willing to pay a reasonably good price to us to sustain their supply chain, and our supply chain is very strong.

Arun Kumar Sharma: Our supply chain is very strong. We are able to procure the raw material at a good price. We are able to supply the material to them from our various geographical locations. All this pricing is not something which is one-off, but we have made in such a way that our business is commanding this pricing, and we hope that we will continue to have this pricing going forward also. If volume growth also happens, you will see the icing on the cake.

Speaker #3: We are able to procure the raw material at a good price. We are able to supply the material to them from our various geographic locations.

Speaker #3: So all this pricing is not something which is one-off, but we have made it in such a way that our business is commanding this pricing, and we hope that we'll continue to have this pricing going forward also.

Arun Kumar Sharma: All this pricing is not something which is one-off, but we have made in such a way that our business is commanding this pricing, and we hope that we will continue to have this pricing going forward also. If volume growth also happens, you will see the icing on the cake.

Speaker #3: And if volume growth also happens, you see it as the icing on the cake.

Speaker #5: Okay. So are you

Garvita Jain: Okay. Are you saying that this prices which are there in Q1, we can consider that as a base price and 35% growth which we are targeting for full year, that is going to be the volume growth for us?

Speaker #6: Saying that these prices, which are there in Q1, we can consider that as a base price, and the 35% growth which we are targeting for full year—that is going to be the volume growth for us?

Speaker #3: I said 35% from FY26 numbers. Take that into account—FY26 numbers. From that, you can take 35% growth.

Arun Kumar Sharma: I said 35% from FY26 numbers.

Garvita Jain: Yeah, correct.

Arun Kumar Sharma: Take that into account, FY26 numbers. From that you can take 35% growth.

Speaker #6: So, the quarter one means... Okay, sir. Thank you.

Garvita Jain: Okay, sir.

Arun Kumar Sharma: Yeah.

Garvita Jain: Thank you.

Operator 3: Thank you. The next question is from the line of Kaushik Poddar from KB Capital Markets. Please go ahead.

Operator: Thank you. The next question is from the line of Kaushik Poddar from KB Capital Markets. Please go ahead.

Speaker #2: Thank you. The next question is from the line of Kaushik Kothar from KB Capital Markets. Please go ahead.

Speaker #7: Yeah. See, if we—I mean, if I divide the order result between domestic and international: for domestic, the top line is up by 40%, whereas your bottom line is 15% of the total consolidated amount.

Kaushik Poddar: Yeah. See, if I divide your result between domestic and international. In domestic, the top line is up by 40%, whereas your bottom line is 15% of the total consolidated amount as far as domestic is concerned. So when do we see a turnaround in this figure so that this EBITDA or a PAT is on a proportionate basis to the turnover? That's question number one. The second question is that you are talking of the higher profit and profitability in the international operation because customers prefer local sourcing, and you are forward and backward integrated. If you can expand on this also a little bit so that we have a better understanding of the same.

Speaker #7: As far as domestic is concerned, when do we see a turnaround in this figure so that EBITDA or PAT is on a proportionate basis to the turnover?

Speaker #7: That's number one question. Question number one. And the second question is that's you are talking of the higher profit and profitability in the international operation because of your source because customers prefer local sourcing and you are forward and backward integrated.

Kaushik Poddar: That's question number one. The second question is that you are talking of the higher profit and profitability in the international operation because customers prefer local sourcing, and you are forward and backward integrated. If you can expand on this also a little bit so that we have a better understanding of the same.

Speaker #7: If you can expand on this also a little bit, so that we have a better understanding of the same.

Arun Kumar Sharma: See, our 60% to 65% business is coming from overseas now.

Speaker #3: We are about 60 to 65 businesses coming from overseas now. When you set up these facilities, which are very good facilities, the operating margins are much higher overseas as compared to the Indian business.

Kaushik Poddar: Okay.

Arun Kumar Sharma: When we set up these facilities which are very good.

Kaushik Poddar: Exactly

Arun Kumar Sharma: Operating margins are much more overseas as compared to Indian business.

Kaushik Poddar: Yes.

Speaker #3: Because in India, passing on pricing to our customers is slightly difficult, whereas prices can be passed on much more easily to our overseas customers.

Arun Kumar Sharma: Because in India, the passing of pricing to our customers is slightly difficult, whereas prices can be passed on much easily to our overseas customers. That is one.

Speaker #3: So that is one. We'll always get, we'll always generate.

Kaushik Poddar: Can we

Arun Kumar Sharma: We'll always generate

Speaker #7: Higher margin in India?

Kaushik Poddar: With higher margin in India?

Speaker #3: Overseas. Overseas business. Overseas business will always give a higher margin because the price at which we sell the product in the overseas market is—if I can give you a ballpark figure—it's almost two and a half times what we sell in India.

Arun Kumar Sharma: Overseas business. Overseas business will always give a higher margin because

Kaushik Poddar: Okay

Arun Kumar Sharma: the price at which we sell the product in overseas market is, if I can give you a ballpark figure, it's almost 2 and a half times of what we sell in India. But India, the cost is also lower base. There, the cost is also higher base. But despite the higher cost in overseas market, we get a better price realization and better margin there because customers are willing to pay that price. In India, we are too very conscious of the competition, of the pricing, what customers are willing to pay.

Speaker #3: But in India, the cost is also lower. There, the cost is also higher. But despite the higher cost in overseas markets, we get a better price realization and better margin there.

Arun Kumar Sharma: But despite the higher cost in overseas market, we get a better price realization and better margin there because customers are willing to pay that price. In India, we are too very conscious of the competition, of the pricing, what customers are willing to pay. But good part in India is that India is expanding at a very good pace in FMCG market. If FMCG market continues to grow 5% to 8%, what is expected as per the reports, then the packaging industry will also grow. If packaging industry grows, then Uflex is the leader in that. We will also grow there. Your very valid question that India also catches up with whatever revenue and whatever margins we get in overseas market, you can see much, much better results. But we are just keeping things as it is right now.

Speaker #3: Because customers are willing to pay that price. In India, we are also very conscious of the competition and the pricing—what customers are willing to pay.

Speaker #3: But the good part in India is that India is expanding at a very good pace in the FMCG market. And the FMCG market continues to grow at 5 to 8 percent, which is expected as per the reports.

Arun Kumar Sharma: But good part in India is that India is expanding at a very good pace in FMCG market. If FMCG market continues to grow 5% to 8%, what is expected as per the reports, then the packaging industry will also grow. If packaging industry grows, then Uflex is the leader in that. We will also grow there. Your very valid question that India also catches up with whatever revenue and whatever margins we get in overseas market, you can see much, much better results. But we are just keeping things as it is right now.

Speaker #3: Then the packaging industry will also grow. If the packaging industry grows, then UFLEX is the leader in that—we'll also grow here. So your very valid question: if India also catches up with whatever revenue and whatever margins we get in overseas markets, you can see much, much better results.

Speaker #3: But we are just keeping things as they are right now. Our 60 to 65 percent growth will come from the overseas market; the rest will come from the Indian market.

Arun Kumar Sharma: 60% to 65% growth will come from overseas market, rest will come from Indian market. But India, the volume will be much higher. Prices can be a little softer here. Whereas overseas, the prices and volumes are growing at a very good pace. It is a company which has been de-leveraged from one geography now. We are represented in India in a big way, Egypt in our second-largest facility. Then we are in North America, we are in Africa, in Nigeria region, we are into European region, we are into CIS region. You see all the regions we are covering now, and we expanded very meaningfully in all these regions where availability of raw material is there. We can cater to every continent depending on the requirement.

Speaker #3: But in India, the volume will be much higher; prices can be a little softer here. Whereas overseas, both prices and volumes are growing at a very good pace.

Speaker #3: So, it's a company which has been de-leveraged from one geography. Now, we are present in India in a big way, and Egypt has our second largest facility.

Speaker #3: Then we are in North America. We are in Africa and in the Nigeria region. We are in the European region. We are in the CIS region. So you see all the regions we are covering now.

Arun Kumar Sharma: Then we are in North America, we are in Africa, in Nigeria region, we are into European region, we are into CIS region. You see all the regions we are covering now, and we expanded very meaningfully in all these regions where availability of raw material is there. We can cater to every continent depending on the requirement.

Speaker #3: And we expanded very meaningfully in all these regions where the availability of raw material is there. And we can cater to every continent depending on the requirement.

Speaker #3: So that is how, because this is an industry which has to be near to the customers, which we are always striving to achieve. And I think we have achieved quite a few, but till FY29, we'll keep on expanding in this fashion.

Arun Kumar Sharma: That is how, because this is industry which has to be near to the customers, which we are always striving to achieve. I think we have achieved quite a few, but till FY29 we will keep on expanding in this fashion so that even if something goes wrong in one territory, other territory performs and our results are not impacted by just one territory impact.

Speaker #3: So that even if something goes wrong in one territory, other territory performs and we are not able we our results are not impacted by just one territory impact.

Speaker #7: Okay. And secondly, if we look at the volume by your by the volume is up only 1.7 percent. So can you give an indication how the volume you are expecting over you since you're talking of FY 29 for the for three years, 27, 28, and 29?

Kaushik Poddar: Okay. Secondly, if you look at the volume Y, the volume is up only 1.7%. Can you give an indication how the volume you are expecting since you are talking of FY29 for 3 years, 2027, 2028, and 2029?

Arun Kumar Sharma: If you add up the capacities, what are coming up, if I can add up, it should double our quantity in next three years' time.

Speaker #3: See, if you add up the capacities, what are coming up, if I can add up, we should double our quantity in the next three years’ time.

Speaker #3: Whatever.

Kaushik Poddar: In three years' time, you are talking of doubling in volume, right?

Speaker #7: In three years' time, you're talking of doubling in volume, right?

Speaker #3: Volume, yes. We have right now 173,000 tons. In three years, we should be doubling the volume because our WPP will be fully utilized by the time Egypt will be fully utilized by that time.

Arun Kumar Sharma: Volume. Yes.

Kaushik Poddar: Okay.

Arun Kumar Sharma: As of here right now, 173,000 tons.

Kaushik Poddar: Yes.

Arun Kumar Sharma: In three years, we should be doubling the volume because our WPP will be fully utilized by that time. Egypt will be fully utilized by that time.

Speaker #7: Okay.

Kaushik Poddar: Okay.

Arun Kumar Sharma: Our India recycle facility, which is just a little bit tiny, will be fully utilized. So by 2029 end, you can see much bigger volume going forward.

Speaker #3: Our India recycle facility will which is which is just a little bit try fully utilized. So by 29 end, you can see much bigger volumes going forward.

Speaker #7: Okay. Now, what your takeaway is that, yeah.

Kaushik Poddar: Okay. Now what your, the takeaway is that

Speaker #3: I'm talking about FY 29—Fiscal Year 2029. Okay.

Arun Kumar Sharma: I am talking of FY29. Okay?

Speaker #7: Yes, yes. So, doubling of volume by FY29 from what FY26 was there?

Kaushik Poddar: Yes. So doubling of volume by FY29 from what FY26 was then.

Speaker #3: Yes, yes.

Arun Kumar Sharma: Yes.

Speaker #7: Surajit, you said something I just missed. Hello.

Kaushik Poddar: Surajit, you said something I just missed. Hello?

Speaker #3: No, I didn't say—I mean, I don't need to know the address.

Surajit Pal: No, I didn't say.

Arun Kumar Sharma: No.

Surajit Pal: Arun is on the airplane.

Speaker #7: No, no, no. He didn't say anything. Do you want to say something?

Arun Kumar Sharma: No, he didn't say anything. Surajit, you want to say something?

Speaker #3: No. It's okay.

Surajit Pal: No. It's okay.

Arun Kumar Sharma: It's okay.

Speaker #7: Okay.

Speaker #3: See, Kaushik, so so there are a lot of opportunities. I mean, if you look into our utilization graph this year, you know, the even even domestic is currently is only 70, 73 percent.

Surajit Pal: See, Kaushik, there are a lot of opportunities. If you look into our utilization graph this year, even domestic is currently is only 70%, 73%.

Speaker #7: Absolutely.

Kaushik Poddar: Absolutely.

Surajit Pal: So that we have lot of unutilized specialty segment things, something like metallized film, something like say ultra-high barrier films where we have a quite a bit opportunity and we are currently utilizing around 30%, 35%, 40%.

Speaker #3: Whereas we have we have a lot of unutilized you know, specialty segment things, something like centralizer, something like say, you know, ultra high barrier film where we have quite a bit opportunity and we are currently utilizing around 30, 35, 40 percent.

Speaker #3: So, those things will come up quite strongly. Dharwar will be another thing which will come next year. And, as a result of it, you know, we are, as Arun said, we have pretty much de-risked our business model.

Kaushik Poddar: Okay.

Surajit Pal: Those things will come up quite strongly. Dharwad will another thing which will come next year.

Surajit Pal: Those things will come up quite strongly. Dharwad will another thing which will come next year. As a result of it, as Arun said, we have pretty much de-risked our business model. So if one geography is down, another geography goes up. For example, West Asia crisis. Now because of that, what happened is that there are definitely a crisis of chips. Now what happened is that we have chips both in domestic market as well as in Egypt market.

Surajit Pal: As a result of it, as Arun said, we have pretty much de-risked our business model. So if one geography is down, another geography goes up. For example, West Asia crisis. Now because of that, what happened is that there are definitely a crisis of chips. Now what happened is that we have chips both in domestic market as well as in Egypt market.

Speaker #3: So if one geography is down, another geography goes up—for example, the West Asia crisis, for example. Now, because of that, what happened is that, you know, there is definitely a crisis of chips.

Speaker #3: Now, what happened is that we have chips both in the domestic market as well as in the Egypt market. Now, that Egyptian plant is supplying to all our subsidiaries.

Surajit Pal: That Egyptian plant is supplying to all our subsidiaries. Be it in Europe, be it in Africa, be it in Mexico. So we are supplying everywhere else. As a result of it, we have our own system and which is not dependent on others. As a result of it, our clients depends on us about our assurity, about our security of supply and respecting the timeline to provide the film. So that's why they are ready to pay premium. That's why they are ready to continue with that.

Speaker #3: I mean, be it in Europe, be it in Africa, be it in, you know, Mexico, so we are supplying everywhere else. So, as a result of it, we have our own system, which is not dependent on others.

Speaker #3: And as a result of it, you know, our clients depends on us about our assurity about our security of supply and respecting the the the timeline to to to to to provide the film.

Speaker #3: So so that's why they they are ready to give premium. That's why they are ready to continue with that. And. And and if you look into if you look into our peers also.

Kaushik Poddar: Okay, thanks.

Surajit Pal: If you look into our peers also.

Speaker #3: I mean, see, there are a lot of inventory gains which are not actually there with us.

Arun Kumar Sharma: That's fine by me.

Surajit Pal: There are a lot of inventory gain which is not there actually with us.

Speaker #7: So there's a toll in bringing because we don't carry much inventory in our box, yeah. Thanks. Now, I have a fair share of your—of the...

Arun Kumar Sharma: There is no problem in bringing it.

Surajit Pal: Yeah.

Arun Kumar Sharma: Because we do not carry much inventory in our books, yeah.

Kaushik Poddar: Thanks. Now I have a fair share of your.

Speaker #2: I'm sorry to interrupt. Can you please return to the question?

Operator 3: I am sorry to interrupt, sir. Can we return to questions please?

Operator: I am sorry to interrupt, sir. Can we return to questions please?

Speaker #7: Thank you. Thank you. No more questions from me.

Kaushik Poddar: Thank you. No more question from me.

Speaker #2: Okay, thank you. The next question is from the line of Lakshmi Narayanan from Fleet Management. Please go ahead.

Operator 3: Okay. Thank you. The next question is from the line of Laxmi Narayanan from Fleet Management. Please go ahead.

Operator: Okay. Thank you. The next question is from the line of Laxmi Narayanan from Fleet Management. Please go ahead.

Speaker #5: Hello, sir. I'm audible?

Laxmi Narayanan: Hello, sir. Am I audible?

[Analyst] (Fleet Management): Hello, sir. Am I audible?

Speaker #7: Yeah, yeah. Please go ahead.

Arun Kumar Sharma: Yeah.

Operator 3: Yes.

Operator: Yes.

Arun Kumar Sharma: Please go ahead.

Laxmi Narayanan: Sir, congratulations. I just want to know, you have said in presentation your interest cost come down by 0.5 and now the results are even much better. So how you were able to reduce it and whether rating improved or we can negotiate on better rate going forward?

[Analyst] (Fleet Management): Sir, congratulations. I just want to know, you have said in presentation your interest cost come down by 0.5 and now the results are even much better. So how you were able to reduce it and whether rating improved or we can negotiate on better rate going forward?

Speaker #5: Sir, congratulations. I just want to know, as you said in the presentation, your interest cost has come down by 0.5, and now the results are even much better.

Speaker #5: So, how were you able to reduce it, and did the rating improve, or can we negotiate a better rate going forward?

Arun Kumar Sharma: Our rating is AA- as of now, and we are dual rated by CRISIL as well as by India Ratings and Research. Whatever interest rate we are paying as of now, and whatever rating we are enjoying, I am hopeful that we should reduce our interest cost by 1% in next one year's time. You will see that even if we reduce by 1% going forward, there will be a great reduction. That is why you can see the reduction of 0.3%, 0.4% in this quarter itself. But by next one year, we will reduce our interest cost by at least 1%.

Speaker #3: See, our rating is AA minus as of now. And we are dual rated by CRISIL as well as by India rating. And whatever interest rate we are paying as of now and whatever rating we we are enjoying, I am hopeful that we should reduce our interest cost by 1 percent in you see that even if we reduce by 1 percent going That's why you can see the reduction of 0.3, 0.4 percent in this quarter itself.

Speaker #3: But by the next one year, we'll reduce our interest cost by at least 1%.

Laxmi Narayanan: Yes, sir. Great. Sir, a couple of, I do not know, one year or two years back, we were thinking about listing our overseas arm in USA. So will it be a good opportunity now?

[Analyst] (Fleet Management): Yes, sir. Great. Sir, a couple of, I do not know, one year or two years back, we were thinking about listing our overseas arm in USA. So will it be a good opportunity now?

Speaker #5: No, sir. Great. Sir, a couple of—I don't know—one year or two years back, we were thinking about listing our overseas arm in the USA.

Speaker #5: Will it be a good opportunity now?

Speaker #3: No, I think we are developing a good business model now. Once the business model becomes more robust and we are able to deliver what we said till FY29, then our management will decide what to do, because the business has to evolve on a yearly basis now.

Arun Kumar Sharma: No, I think we are developing a good business model now. Once the business model becomes more robust and we are able to deliver what we said till FY29, then our management will decide what to do because this business has to evolve every year basis now. Whichever territory, whichever region, whichever market gives us a good value, we can evaluate. But as of now, I do not think we have any such thought to sell. But by FY29, certainly we will again evaluate everything that which market is good for us because we are in India, we have subsidiaries in Dubai and subsidiaries all across the globe. We will see how the business pan out because as of now, saying something out that is very, I think too early to say that.

Speaker #3: So, whichever territory, whichever region, whichever market gives us good value, we can evaluate. But as of now, I don't think we have any such thought process.

Arun Kumar Sharma: But by FY29, certainly we will again evaluate everything that which market is good for us because we are in India, we have subsidiaries in Dubai and subsidiaries all across the globe. We will see how the business pan out because as of now, saying something out that is very, I think too early to say that. But on the interest part, I think I appreciate your question, and we will strive to reduce it by at least 1% going forward in one year's time.

Speaker #3: But by FY29, certainly we'll again evaluate everything— which market is good for us, because we are in India. We have subsidiaries in Dubai and subsidiaries all across the globe.

Speaker #3: We'll see how it spans out, because as of now, saying something is very, very—I think it's too early to say that.

Speaker #3: But only the interest part. I think—I appreciate your question, and we'll strive to reduce it by at least 1 percent going forward in one year's time.

Arun Kumar Sharma: But on the interest part, I think I appreciate your question, and we will strive to reduce it by at least 1% going forward in one year's time.

Speaker #5: Okay, great, sir. Sir, regarding this, you said Egypt plant supplying, but recently this Bab al-Mandab has also become a flashpoint. So any update on that? Of course, your ships are not coming from Saudi.

Laxmi Narayanan: Great, sir. Sir, regarding this, you said Egypt plant supplying, but recently this Bab-el-Mandeb also become a flashpoint. So any update on that? Of course, your ship is not coming from Saudi.

[Analyst] (Fleet Management): Great, sir. Sir, regarding this, you said Egypt plant supplying, but recently this Bab-el-Mandeb also become a flashpoint. So any update on that? Of course, your ship is not coming from Saudi.

Speaker #3: So, that is what I said, no? We are running a de-risk model now. India caters mostly to Indian demand, and other areas cater to other areas' demand.

Arun Kumar Sharma: That is what I said. We are running a de-risk model now. India caters to mostly India demands and other areas cater to other areas' demands. So if somebody who is dependent on Indian export only will have a difficulty in supplying the material. But we have all across geographies and fully integrated, fully backward and forward integrated. That is why we are able to work through these difficult times and give you the results what are there in this first quarter. And going forward also, we are talking so confidently just because of this de-risk model, what we started working on last three years. And going forward, this will be very much in place in next three years also. We should appreciate our strategy that we are trying to work out in all geographies near to the customers.

Speaker #3: So, if somebody who's dependent on Indian exports only will have difficulty in supplying the material. But we have presence all across geographies and are fully integrated—both backward and forward integrated.

Arun Kumar Sharma: That is why we are able to work through these difficult times and give you the results what are there in this Q1. And going forward also, we are talking so confidently just because of this de-risk model, what we started working on last three years. And going forward, this will be very much in place in next three years also. We should appreciate our strategy that we are trying to work out in all geographies near to the customers.

Speaker #3: That's why we are able to work through these difficult times and give you the results what what we are what are there in in this first quarter.

Speaker #3: And going forward also, we are talking so confidently just because of this de-risk model that we started working on over the last three years. And going forward, this will very much be in place in the next three years also.

Speaker #3: We should appreciate our strategy that we are trying to work out in all geographies near to the customers.

Laxmi Narayanan: If you can, I can squeeze one more. Recently, our articles have been amended. When I see a lot of new unrelated things like paper, electronic device, software, hardware, infra, all added up. Is there any thought process going on in particular field here?

Speaker #5: Sir, if you can, I can excuse one more. Recently, our articles have been amended, and I see a lot of new, unrelated—I mean, like paper, electronic devices, software, hardware, infra—all added.

[Analyst] (Fleet Management): If you can, I can squeeze one more. Recently, our articles have been amended. When I see a lot of new unrelated things like paper, electronic device, software, hardware, infra, all added up. Is there any thought process going on in particular field here?

Speaker #5: Is there any thought process going on in a particular field?

Arun Kumar Sharma: No thought process going on. Basically, you see government is trying to upgrade the packaging industry also in a big way. We are also trying to upgrade the packaging industry. We are also adding in the value-added products now, which can be paper, which can be other materials. Just to enable that, whatever R&D is doing, it should not remain in the R&D, it should come as a commercial thing for us. We are enabling those things because the next three years, you may see lot many products coming out from paper on this packaging everything. We are preparing ourself for that, and it is good to prepare in advance and do things so that we are not caught up on a wrong foot when the decision comes out.

Speaker #3: No, no, no. No thought process going on. Basically, you see, the government is trying to upgrade the packaging industry also in a big way. So we are also trying to upgrade the packaging industry.

Speaker #3: So, we are also adding in the value-added products now, which can be paper, which can be other materials. So, just to enable that, whatever R&D is doing, it should not remain in R&D; it should come as a commercial thing for us.

Speaker #3: So we are enabling those things because in the next three years, you may see many products coming out from paper—on this packaging, everything.

Arun Kumar Sharma: We are enabling those things because the next three years, you may see lot many products coming out from paper on this packaging everything. We are preparing ourself for that, and it is good to prepare in advance and do things so that we are not caught up on a wrong foot when the decision comes out. Just a very thought out process going forward to meet the demands of world over and to the industry what is evolving in this scenario.

Speaker #3: So we are preparing ourselves for that, and it's good to prepare in advance and do things so that we are not caught on the wrong foot when the decision comes out.

Speaker #3: So it's just a very thought-out process going forward to meet the demands the world over and to the industry, which is evolving in this scenario.

Arun Kumar Sharma: Just a very thought out process going forward to meet the demands of world over and to the industry what is evolving in this scenario.

Laxmi Narayanan: Okay, sir. You said some good news about this.

[Analyst] (Fleet Management): Okay, sir. You said some good news about this.

Speaker #5: Okay, sir. You said it's some good news about your company.

Operator 3: I am sorry to interrupt, sir, but please move to the next question.

Operator: I am sorry to interrupt, sir, but please move to the next question.

Speaker #2: I'm trying to interrupt, sir. Can you please close the question?

Laxmi Narayanan: Okay.

[Analyst] (Fleet Management): Okay.

Speaker #5: Okay.

Speaker #2: Thank you. The next question is from the line of Kilesh Sahu from JB FinService. Please go ahead. As there's no response from the participant, we will now proceed to close the call.

Operator 3: Thank you. Next question is from line of Kilesh Tahu from JB Finserv. Please go ahead. As there is no response from the participant, we will now proceed to close the call. Ladies and gentlemen, we will now hand the conference over to Mr. Surajit Pal for closing comments.

Operator: Thank you. Next question is from line of Kilesh Tahu from JB Finserv. Please go ahead. As there is no response from the participant, we will now proceed to close the call. Ladies and gentlemen, we will now hand the conference over to Mr. Surajit Pal for closing comments.

Speaker #2: Ladies and gentlemen, we will now hand the conference over to Mr. Surajit for closing comments.

Speaker #3: Thank you for joining us today. We appreciate your time, questions, and continued support. The transcript of this call will be made available shortly on our website at www.uflexlimited.com.

Surajit Pal: Thank you for joining us today. We appreciate your time, questions, and continued support. The transcript of this call will be made available shortly on our website at www.uflexltd.com. We value this platform as it enables us to engage meaningfully with our investors and stakeholders and look forward to keeping you updated on our progress in the coming quarters. Wish you all those present here thank you.

Speaker #3: We value this platform as it enables us to engage meaningfully with our investors and stakeholders, and we look forward to keeping you updated on our progress in the coming quarters.

Speaker #3: We wish you all, those present here. Thank you.

Speaker #2: Thank you, sir. We thank the management for this call on behalf of Alhind Capital Markets Limited. That concludes this conference. Thank you for joining, and you may now disconnect your lines.

Operator 3: Thank you, sir. We thank the management for this call on behalf of Arihant Capital Markets Limited. That concludes this conference. Thank you for joining, and you may now disconnect your lines. Thank you.

Operator: Thank you, sir. We thank the management for this call on behalf of Arihant Capital Markets Limited. That concludes this conference. Thank you for joining, and you may now disconnect your lines. Thank you.

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Q1 2027 Uflex Ltd Earnings Call

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