Ladies and gentlemen, good day and welcome to the Arvind Ltd Q2 FY26 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Satya Prakash Mishra. Thank you, and over to you, sir. Good afternoon, everyone, and a very warm welcome to Arvind Ltd earnings call for the quarter ended September 2025. I hope all of you had a wonderful festive season, and wishing you all a truly prosperous year ahead. Before we begin the call, let me introduce the leadership team joining me today. We have Mr. Punit Lalbhai, our Vice Chairman; Mr. Susheel Kaul, Managing Director and President of Textile Business; Mr. Gurpreet Singh Bhatia, CEO and President of AMD Business; and Mr. Nigam Shah, CFO of Arvind Ltd. Let me begin by recollecting our thoughts from the last quarter's call. At that time, we were in our early days of tariff impact. India had appeared to be in a relatively advantageous position compared to the competing geographies like APAC countries and China. We had anticipated a further acceleration of volume shift towards India, including China plus one, driven by our neutral geopolitical stance. Three months on, the picture has changed completely. It's almost a 180-degree turn, and I'm sure we have not seen the end of it. India now finds itself at the most disadvantageous position, with even additional sectors being brought under the tariff bracket from the U.S. The current 50% tariff level is perhaps the highest among the competing markets. Let me now turn to a few important developments during the quarter, starting with the much-anticipated corporate action on demerger of AMD division into a wholly-owned subsidiary and a separate legal entity, namely Arvind Advanced Materials Ltd. Following the receipt of requisite approvals from shareholders and other stakeholders, the Honorable NCLT has accorded its consent to demerge the AMD business through AAML, which has now been consummated with effect from 1st September 2025. The second major highlight relates to our integrated textile and apparel business, which has now crossed a volume of 10.7 million pieces in quarter two, translating into a 20% growth run rate on a quarterly basis, growing consistently at 15%-18%. With that, we now have had two strong growth engines, the integrated textile and apparel business and the advanced material division, with a critical mass of 2,000 crore each, both operating in flywheel mode and expanding steadily at high teens. With this backdrop, let me move to how the quarter unfolded. While the tariff pressure did compress margins, the cost optimization and efficiency measures we initiated in earlier quarters have started yielding structural and lasting savings, offsetting some part of this impact. Our approach has remained clear and consistent. Stand by our longstanding customers. We extended selective support, including discounts wherever necessary, but always in exchange for higher volumes and stronger commitment for future. This disciplined stand ensures that we protected both our relationships and the top line momentum. Once again, times like these have validated our resilience and well-balanced business model diversified across products, geographies, and customers, enabling us to adapt quickly without much disruption. Three of our businesses, namely Woven Fabric, Integrated Textile and Apparel, and AMD division, reporting their highest or near-highest revenue numbers. Times like these provide much-needed clarity to distinguish those who perform from those who don't. Let me now share a key operational and financial highlight for the quarter. Denim division delivered its highest volume in recent years of 15 million meters. Woven division achieved near-highest volume of 35 million meters. Both the divisions are now operating at full capacity. Garmenting division crossed 10.7 million pieces in line with our full year growth guidance. We expect this strong momentum to continue in the second half, which generally historically has been a better half for our business. On the financial front, consolidated revenue for the quarter stood at INR 2,371 crore, up 8.4% on a year-on-year basis. Of the above number, direct business to U.S. stood at nearly INR 500 crore, roughly about 21%. EBITDA came in at INR 262 crore, up 13%, which includes highest-ever quarterly operating EBITDA. Profit after tax during the same period stood at INR 107 crore, reflecting a robust 70% year-on-year growth. This is among the strongest second quarter performances we have delivered in recent years. In terms of margins, while the overall margin was at 11%, the improvement was limited to 40 basis points. Margin on both textile and AMD segments fell as the quarter was partially impacted by 50% tariff. The margin impact was partially negated by the cost improvement that we have just spoken of. The textile division reported an EBITDA margin of nearly 10%. The AMD division came in at 13.6%, both broadly in line with our guidance. The residual margin compression primarily stems from the tariff-related discounts absorbed during the quarter. Adjusting for this impact of roughly INR 23 crore during the quarter, our margins would have been closer to 12%, fully aligned with our medium-term guidance. Our annual capital expenditure plan for the year revised downwards to INR 400-450 crore. We have invested about INR 220 crore so far of that amount in line with the plan, though we have chosen to defer certain of the non-critical expenditures to maintain liquidity flexibility. Leverage levels remain stable compared to March 2025, and working capital days have been held steady despite higher sales, reflecting the impact of system efficiencies we have implemented over past few quarters. For the quarter, return on capital employed stood at 14.4% on a reported basis. Adjusted return on capital is at 17%, reinforcing our confidence of achieving 20% return on capital target in the medium term. Let me also tell you about a few bright spots that happened during the quarter. While we were handling a turbulent sale, we have not lost sight of doing what is fundamentally right, our motto of sustainability. We continue to lead sustainability-driven innovation through strategic collaborations and adopt breakthrough technologies. The company, in partnership with H&M Group and Deven Supercriticals, has commissioned India's first supercritical CO2 dyeing facility at Shamshi, a INR 25 crore investment enabling waterless dyeing. This has the potential of saving up to 76% of water consumption, 67% of energy, and 90% of chemical usage in the dyeing process. Furthering its commitment to circularity, Arvind has joined hands with US-based Circ Inc. to integrate next-generation recycled fibers across its operations, driving large-scale adoption of circular materials. This is the second such collaboration we have done in the last 12 months. Last but not the least, in recognition of its climate leadership, Arvind's near-term, long-term net zero targets have been validated by Science Based Targets initiative, aligning with 1.5-degree pathway to net zero by 2050. To sum up, despite a volatile and unpredictable external environment, Arvind continues to demonstrate resilience, agility, and operational discipline. We remain optimistic about the second half of the year and confident about our medium-term outlook. With that, I now hand over the call to Punit for his remarks on the quarter gone by and his perspective on the broader industry and market trends. Over to you. Thanks, Satya. Good afternoon to everyone. It's a pleasure to be here. I think Satya has covered all the important events of the quarter gone by. I think the performance in very challenging circumstances has been reasonably good. The green teams have rallied behind the company and delivered on cost savings, which has offset the discount liability caused by the tariffs and U.S. exposure. That said, the tariff pressure continues, and Q3 is also going to see the effect of tariffs, though our tariff mitigation measures are also gearing up very nicely, and we should see further improvement in our cost positions driven through efficiencies and efforts. So net net, we hope to continue this good level of performance despite a challenging environment going forward. I think I'd like to leave as much time for questions as possible, so I'll not speak further. I open the floor for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Participants are also requested to limit their question to two questions per participant in order that management will be able to address questions from all the participants. The first question comes from the line of Bhargav Buddhadev from Ambit Asset Management. Please go ahead. Yeah, good afternoon, team, and congratulations for a very good performance. First, my first question is, is it possible to break down that INR 23 crore tariff impact into maybe garment and AMD? Yeah, so AMD is around seven out of that 23. Okay, understood. Secondly, sir, if you look at your business outlook for the rest of the financial year, it seems like things are only going to improve from year on. If you can sort of elaborate a bit that despite the tariff, AMD and garment still continues to do well. So effectively, if you can elaborate a bit on that, that would be very helpful because obviously, as Mr. Satya said, that the Indian tariff is far worse compared to others. So how are we able to still continue to gain market share and still we don't have any EBITDA margin impact as such? No, so there is an EBITDA margin impact. So I mean, if you remember our conversations of the past, we've been actively working very hard to actually expand our EBITDA margins from previous levels. Now, that whole exercise has sort of got postponed because of the onset of the margins. So our effort is keeping us in the same place as far as margins are concerned. Compared to others, our business model is quite risk mitigated in multiple ways. First of all, we have AMD and textiles both under the same umbrella. We have a very geographically diverse business, and we also have multiple sort of levers where we have flexibility to pull on those levers when certain parts of the business are under pressure. We have almost INR 1,000 crore plus B2C business, which is domestic. We are also working very hard to open up new geographies. That effort was ongoing even before the onset of tariffs. So now, the number-wise, because U.S. is so large, these numbers don't appear very large in the overall portfolio, but our focus, especially in AMD, on Australia, Middle East, and the U.K., that clear pivot is happening. Our industrial and composite business is not so affected by tariffs just because of the dynamics of those industries. Even the U.S. part of that business is more resilient than garmenting. So there are those kinds of reasons. And of course, I would not like to sort of underestimate the effort it has taken on part of the teams to actually take tough decisions and cut costs and drive efficiency. People have worked round the clock to ensure that all the good work doesn't get dissipated by tariff impact. That said, till this tariff resolution comes, that uncertainty will always remain. I think both us and the customers are factoring in at some point certain aspects of the tariff will go away. Now, if they keep prolonging, then how the customers will behave, that's still an uncertainty. So while I agree that if all else remains equal, we should only improve, we need some of these uncertainties to be addressed at some point in time. So what I would say is I'm cautiously optimistic that things will keep improving. Lastly, sir, assuming that there is no trade agreement in the next six months which gets finalized, is it fair to say that this INR 23 crore is the peak in terms of impact or it can actually increase from here on? It will increase from here because 23 is not factoring in some of the punitive tariffs that came after these orders were locked in for Q2. So it will increase, but it will also, the offset will increase. So the net impact, hopefully, we should be able to keep on current trajectory, and we are also making efforts to diversify our final geographical matrix. So all of those things should start kicking in by Q4, but Q3 is pretty locked in, and we expect to continue on this journey in Q3 at least. Q4 is too far to predict. Sure. Great, sir. Very commendable job in this difficult environment, and all the very best. Thank you. Thank you. The next question comes from the line of Narayan Nayak from Sunidhi Securities. Please go ahead. Yeah. Am I audible, sir? Yes, sir. Thank you. Sir, in the expansion plan of the garmenting capacity, where are we now as far as the barn and sheep facilities and other facilities are concerned? Number one. And number two, what is the commercial arrangement we are having with the Circ in the 5025 recycling? So if you can throw some light, how we get the opportunity? Yes. So as far as garmenting capacity is concerned, and specifically Varanasi as you are, Varanasi is now back on stream. We expect that a Q1 sort of late Q1 to early Q2 kind of commercial and operational start. All CapEx, the moment all this mayhem was announced globally, we slowed down as a matter of prudence all expansion for a period of time. So one quarter went in wait and watch. So we did slow down some CapEx, but now we have reinitiated everything. So hopefully, or thankfully, there is no long-term sort of big deviation from original plan. So our expansions are continuing according to overall previously sort of guided trajectory. On your question around Circ, it's a very innovative technology that uses a chemical recycling technology that allows very high level of quality of the recycled fiber to where you can use it at very high blend percentages. So we are excited about this opportunity, and we will use this fiber to create sustainable products for our customers. So sir, what will be the exit capacity for the garment FY26? It was earlier what I think is 45 million pieces, and FY27 was slated to rise to 55 or so. So is it any deviations we are actually observing due to the global? No, and I think we are on track to cross 40 comfortably. We should be in that 40-43 achievement of dispatches this year. And of course, capacity grows before the achievement happens. So we should cross 45 capacity this year, and we should touch, and with all the expansions already underway, 55 is the right number for next year. Okay. And regarding sir, the Circ facility, I mean, again, we're just asking regarding the Circ. So how big is the opportunity in terms of if you can quantify anything at this moment if you actually? Right now, it's not a very large. Recycled products constitute less than 2-3% of the overall textile volume at a global level. At Arvind level, we blend a small amount of recycled content in quite a lot of our products, but overall, the volumes are not very large. But it's a step that is making us future-ready in terms of the increased requirements coming from the customer's end. For example, Europe has passed legislation that will, after a certain date, require a certain percentage product-wise of recycled content. So all these efforts are preparing us for those changes to occur in the market dynamics. I have read that the realization in those fabrics, recycled fabric, is higher than the woven fibers. In that case, is the realization correct? Our effort will be to provide more and more of these types of technologies. So our focus is not on realization. Our focus is on driving more volume adoption, and therefore, we want to mainstream these technologies and make them the future way of doing business. But in that case, the Circ will be converting the textile and recycled textile, I mean, maybe pre-consumer textile, and we will be taking the chips or maybe fiber and converting to. We will buy fiber from them, spin it into yarn and put it into a product. Okay. And sir, are we also slowed down our CapEx in the AMD as well? I mean, let's say due to the uncertainty in the U.S. No, we are not slowed down. So we have temporarily paused CapEx for a quarter, but then at the start of Q2, we restarted everything. So for the last three months, all CapEx is going on in full stream. What will be the course for this demerger of AMD division going forward? What is the plan behind? As I mentioned in the past, it's only so that we can house it in a vehicle that allows us flexibility on how we look at the business. Right now, there are no set plans on how we are going to drive that trajectory. Right now, the focus is on growing these business lines and delivering on our growth and profitability targets on this business. Is the management waiting for a scale to achieve so that it can be listed separately? That is the idea? No. So, it will depend on the board as and when they feel it is the right time to look at it differently. Right now, the focus is, as I mentioned, only on driving a 20% growth trajectory with improved profitability and Return on Capital Employed. Okay. Thank you, sir. Thank you. The next question is from the line of Prerna Jhunjhunwala from Elara Capital. Please go ahead. Thank you for the opportunity. Congratulations on a strong set of profits this quarter in a difficult time. So just wanted to understand how are you looking forward at growth going forward? Because in your presentation, you've mentioned that AMD will continue the momentum of 18%-20% growth. So should it be from Q3 that we should see that number resuming, or it's still time? No, so I think to an extent, the numbers are coming back. So this year also, we have, I think, crossed 15%, and this quarter also, we've crossed 15%, and we are not very far away from 18%-20%. So we are actually, if I'm looking at the numbers, quarter three we should cross. We should definitely be in that 20% or 20% plus range. That's it. It was Q1, we had the immediate impact of the whole market freezing and defense orders going away. So we hope to make that up in Q3 and Q4. So to answer your question, 18%-20% is our expectation, and we'll be disappointed if we don't deliver on it. Understood. And sir, in the garmenting business and AMD, what will be the direct exposure of U.S.? Because I hear different numbers every time. Even in this call, I hear INR 500 crore direct exposure. So can you please help us with some clarity on what is the direct exposure, how you count it as direct and indirect, and the calculations therein? So overall, the exposure is 35% odd. 22 of that is direct, and about 15 or 14 is indirect. When we say direct, it's the product that we are directly exporting to the U.S. that attracts the full 50% target, either through ourselves or through other Indian converters. When it is indirect, it is product that heads to the U.S. through Bangladesh, through Sri Lanka, through all these different geographies. Now, there is a discount or there is a tariff impact on growth, but direct is higher. You're far away from the country globally. It's very easy to get confused by all this math. I think the simple way to think about it is that it's going to be this INR 23-25 crore tariff at the Q2 run rate. That run rate will go up slightly in Q3 and hopefully stabilize. And that much effort we are putting into cost reduction to sort of almost mitigate it. That's our way of thinking, and that answers all questions around risk and profitability. So why get into all this complicated math? Yeah. Makes sense. So then one of the prior question participants also asked that this direct exposure, when it increases, can it impact the overall growth if consumption in U.S. starts? My understanding is the consumption in U.S. may start falling because of the inflation. Are you also seeing in the order books of your clients something like that? So far, no. But if you ask me what will happen after Q3, I mean, it's anybody's guess, right? I mean, how well is the U.S. economy going to hold up? The expensive goods are only now hitting customers, so will consumption fall? These are all highly uncertain. We don't have enough data to answer these questions well right now. All I can say is Q3 is on the right track, and if all else remains constant from the conversations we are having with customers, Q4 should also be in that direction. But will a trade deal happen before then? Will consumption in the U.S. fall? All these are questions we can't answer. But at the same time, we are focusing higher on India. We are focusing on Middle East. We are focusing on Australia. We are focusing on E.U. and U.K. So all those efforts will also start yielding response. So there will be pluses and minuses, and we will have to react. And I think what we have shown so far is that we are reacting. We are quite a flexible company. We have a resilient business model. Difficult curveballs have been thrown at us, and we've answered them well. So hopefully, we'll be able to answer all future curveballs also well. Understood, sir. Thank you, and all the best, sir. Thank you. Thank you. The next question comes from the line of Tanishk from Antique Stock Broking. Please go ahead. Congratulations on the good set of numbers. My first question is, we have seen a good growth in the textile across segments and in AMD also. Was there any due to early shipment of the products, or can you give some guidance on the growth? Will this number be achievable in the second half also, the 15% growth in the textile as well as in AMD? Yeah, I'm confident of growth in Q3. To answer your first question, is it because of early shipment? No. Q1, maybe there was some early shipment, but by Q2, everything had already crystallized. So there's virtually zero impact of early shipment. So all the tariff impacts are fully crystallized. We may have given some additional discounts because of the tariffs being revised upwards. That happened a little later after the first set of tariff numbers came out. So yes, Q3 will have higher than Q2 tariffs, most certainly tariff discounts. And also, the volume and growth journey, so that's locked in for Q3, and it's looking good. So we will have higher volume. We will also have higher savings. So tariffs are higher, savings are higher, and growth is decent. Okay. So my second question is, you mentioned that you have a healthy order book in Q3. So can you give some more insights on what type of customer agreements you have, like what quantum of additional tariffs will be in the 25% final tariff? No, so see, most people, most customers, we are not passing on the full tariffs. It's usually a small percentage of the overall tariff. So it's more like discounts that we give because it's a blend of direct, indirect, and it is relative to what pricing and product quality they can get from competing geographies. It's not easy also to change qualified products at such short notice. So all of that put together, we take a very partnership type of approach. We understand our customers' problems. They are passing on a certain amount of cost to the end consumer. They are absorbing a certain part of that tariff impact, and they are asking us to partner with them in absorbing some part at our end. So that is how it gets distributed between the various players in the supply chain, and it gets distributed between yarn, chemical, us as fabric and garment makers, the brand itself, and the consumer, right? So this whole impact gets sort of shared by multiple people in the whole supply chain. And some places where your negotiating power is weak and you need that business at all costs, you might have to pass on higher levels of discounts. Some places where we just switch the business, some places our business gets switched out. So there is a whole array of different solutions that happens in such a disruptive environment. But where we are strategically partnering the customer, where we are mutually important to each other, we try and help each other out. So if we have to pass on high discounts, then we ask for higher volumes. If we are not in a position to pass on discounts, then we allow them to shift the volume elsewhere if it's not making sense for us. So we take that call order by order, SKU by SKU, and do it in partnership with our strategic partners. Okay. That's very helpful. Thank you. Hello. I'm audible. Yes. Okay. Next question comes from the line of Aman. Please go ahead. Yes. So So from that, from a good set of numbers, I just have a question around the AMD division, right? And if you look at it historically, we have guided for the 15%-20% sort of growth rate. Aman, go ahead, please. Yeah. Yeah. So I just have a question around your AMD division, right? We have been guiding for the 15%-20% sort of growth rate. Now, looking at the numbers so far, you'll have to deliver a lot more in Q2. I mean, sorry, the H2 to sort of justify that sort of growth rate. So given the current order book, are we still maintaining that guidance, or would we like to revise it by any chance? I think Q3 and Q4 will definitely be around that 20% mark. I mean, overall, the year see, Q4 is not fully baked in, so I can't give a 100% accurate guidance, but growth is looking robust. And if you look at Q2, Q3, we will be definitely, if you average both of those, we will be back on that 18%-20% level. Now, whether if you factor in the low growth of Q1, that 18%-20% drops by a percentage or two, that we'll know once Q4 is fully baked in. But I think the important thing is that we are delivering two, three quarters of now higher growth than we've got back into the mid-teens this quarter. So I don't look at the number. I look at it more directionally, and I look at it more future sort of with a future orientation, not very mathematically as you seem to be asking. So for us, we will see higher growth in the second half of the year. That's a given. Q3 is already looking decent, and we've come back to the mid-teens, and we need to increase it a little bit to get into the 20% range. That's how we are looking at it. Okay. And just last one on the AMD, again, you also mentioned the resumption, the order book sort of resumption, right? You start getting more orders. So would you be able to give us an idea on what is the split in the order book between export and domestic? It's been very similar to overall previous years where we are evenly split. It's like maybe 50/50 within AMD. It's more like 65% export, and at a company level, it is maybe slightly higher than 50% in terms of export. Okay. Okay. And this may be a need for the human protection division, right, if I understand it correctly? In all the divisions, we are export-driven. In fact, in industrial and composites, we would have a higher export percentage, especially in industrial. In human protection and to some extent composites, there is a domestic component that is significant. Okay. Noted. I just have one last question, if I may squeeze it in, which is on your composite division, right? So I remember a few calls back, you also mentioned a lot of Vande Bharat orders coming through and all. So how is that holding up? Could you give us some sense on that? We completed one large order for Vande Bharat. Then there is rail for a couple of quarters. And then again, Q4 onwards, there is another large order starting now. So it's still continuing, and we have one new order there. Okay. Got it. That answers my question. Thank you. All the best. Thanks. Thank you. The next question comes from the line of Shiv Kumar Prajapati from Abakkus Asset Manager LLP. Please go ahead. Hi, sir. Thanks for my question. Congratulations on the set of numbers. So my first question is on CapEx. We have reduced our CapEx guidance for full year in the range of 400-450 versus 450-475 every year. You have mentioned that some non-critical trends have been deferred. So could you please throw some light on this and if you can give guidance for FY 2027 CapEx? So we kind of paused CapEx for a quarter. That in itself reduced, I mean, it's like one quarter of cash outflow for CapEx is gone. So more than stopping any strategic project, it's more like a delay or postponement of spending, keeping prudent principles in mind because we didn't know where this tariff thing is going to go, how customers were going to react. And it made sense to conserve cash in case the situation became very bad. Then once it became clear that we figured out a way to continue the business, we passed on discounts, we worked on cost and efficiency, then we restarted that CapEx. So I think that INR 50-INR 60 crore impact is just because of that temporary pause. Understood, sir. And so my next question is on project expenses and other expenses. Am I audible? Yes, yes. Go ahead. Sorry. So my question was on project expenses. So if I compare YOY basis, the cost has almost more than doubled, and on other expenses front, it is almost flat YOY. I'm assuming this INR 23-25 crores tariff hit is also included in other expenses. So just want to understand, did we have some savings in our other expenses, and what led to the increase in project expenses? This is Nigam Shah, PA for Farwin. Actually, it is because of ENVISOL projects what we have, we are booking into the other segment. ENVISOL is a water project management company. I think it is very based on the project-related expenditure what we are making. That's why I think it is not a stereotype, but I think accordingly it is varying quarter to quarter, and so you can't compare it specifically. Understood, sir. Anything on other expenses, sir? You have already answered your question. Yes, some of the tariff-related cost is booked in other expenses, so that is why it has gone up. No, sir, it is almost flat YOY basis. Yes, yes. yes. What I was saying is that the reason for flattish reason is that one, we have done some of the cost savings in the same head where we have booked our tariff-related expenses. Understood, sir. Thank you. It looked like a flat curve. Right, right. Okay. Got it, sir. Thank you so much. Thank you. The next question comes from the line of Vimal Sampath, an individual investor. Please go ahead. Yeah. Good afternoon. Two or three questions on our domestic initiative. Now we are seeing that you have associated with Kaun Banega Crorepati. I mean, how do you see this going forward? Is it going to be very meaningful, something like garment division, or how do you see it? And second is, now I think Shiprocket IPO is coming. So we have some stake in that, I believe. So are we going to exit and encash that money, or we are continuing? And what is our stake, if you can just clarify on that? Yeah. So we are very proud to be associated with Kaun Banega Crorepati. I think this relates to our B2C business, which now is a larger than INR 1,000 crore business. And this year, we expect this business to grow at more than 20%. There's been a good recovery in domestic market, and consumer sentiment is reasonably strong this year after many years of very muted consumer sentiment in India. So it's a business we've been incubating for many years. And over a period of time, we have been able to make this B2C component of the textile business more than INR 1,000 crores this year. So yes, and our marketing effort around this business has always been. There's always a marketing budget there, and our Kaun Banega Crorepati partnership is a step in that direction. So exciting business with a good future potential, and it's definitely something that we are throwing our time, effort, and money behind, and we believe in. As far as Shiprocket is concerned, yes, it's a non-strategic asset, and the board will take a call as to what to do once this IPO happens. Okay. And And what is the value? I mean, some percentage of their equity. What is our percentage of their equity if we can? So the book value of the shares we have is around INR 105 crores, I think. 105 crores. Okay. Thank you. Now, see, last thing. Now, with domestic business also picking up and we are having strategic ties up, even if there is no change in the tariff going forward, how much will our business be affected? I mean, will we continue growing at this rate or any? That's a golden question that I wish I also knew the answer to. You are asking me to predict what Mr. Trump will do, how our government will swing a deal. No, I'm just saying, suppose presuming that tariffs remain the same, I mean, will we be able? See, if tariffs remain the same, the question would be for how long, right? I mean, even the customers are factoring in that at some point in the future, a deal will happen. Now, if that doesn't happen, they will do some rebalancing for the long term. If it becomes clear, for example, that there is going to be no deal forever, then the customers will behave differently from how they are behaving now. But it is not clear that it is going to be forever. So if it is going to be for one to two quarters, which we are assuming right now, nothing will change. And if the deal happens, then again, everything will change. So I think the name of the game is flexibility and resilience. I think we have to continue to work on cost. I think we have to continue to develop newer geographies and reduce our dependencies on the uncertain market conditions. That said, that's a very important market for us where we have a lot of strategic customers. So we will continue to find ways to serve them. We've already started diversifying our go-to-market. We are doing partnerships with people outside India to be able to serve the U.S. market. So all those efforts are underway, and it will be a timing issue, but finally, ultimately, we will find a way to serve our U.S. customers in the best possible way. And as you've seen, we've been resilient in the face of all these things. We hope we can be resilient in the face of other uncertain sort of outcomes that come through this whole process. No, you are doing an excellent job. I was just coming to that. Gokaldas and Pearl Global and all, they have plants all over the world. So maybe future, we will look at that if things don't work out. Yes, yes. So we have already started doing partnerships with people outside India, and we can dial that up faster depending on how the scenario plays out. Right, right. Okay. Thank you. That gives a lot of clarity. Thank you. Thank you. Participants who wish to ask questions may press star and one. I repeat, participants who wish to ask their questions may press star and one on their touchtone phone. We will wait for a moment. The next question comes from the line of Vihang Subramanian from Zaaba Capital. Please go ahead. Yeah. It's actually my question. Here's just a couple of questions. One could talk about how is the garmenting volume and sort of product mix looking like going ahead? Because I think now it kind of stabilized around the INR 500 range, and just wondering if we can see an improvement from here on. That's one. And number two, could you talk a bit about the U.K.Free Trade Agreement? Has there been any discussions with customers and so on? Yes. So I'll answer the second question first. On the UK FTA, of course, we are in close touch with a lot of U.K. customers. Of course, but the impact of the FTA will only come in hopefully sometime next year. It takes a. There's a long sort of procedural delay between actually signing the FTA and it becoming sort of effective commercially. So that generally takes a year or even upwards in some cases. So we are expecting that benefit to start flowing in next year. In the meanwhile, we are working to build relationships and dial up volumes in the U.K. So I would say we are on track as far as the U.K. workstream is concerned. As far as realizations on garmenting and product mix are concerned, realizations have been good this quarter, and it will sort of go this way. As far as the new capacity is coming on stream, we've added capacity in denim, and we've added capacity in knits. Those are the two product categories that will grow, and I think knits will grow faster than any other product category. That's the sort of answer to the product mix realization question. Of course, garmenting, we have a lot of headroom to do better. Volumes, as we are guided, we should exit the year with a 45 million plus capacity going to 55 million for next year's capacity. Capacity increase always sort of precedes volume. We began this year with a 40 plus million capacity, which where we will deliver a 40-43 million garment number this year, and that number should go up by almost the capacity going up next year. 45 going to 55 is the sort of volume trajectory that we are on. Understood, understood. So it seems like at least for two or three quarters, garmenting is going to, for AMD, it should be more like 20% plus growth, right? Yeah. That's the ballpark in which we are. Got it. And just the product mix side, if I understood it correctly, it seems like now revenues could grow faster than volume. You mentioned the product mix is likely to kind of play a favor now with base effect. No, I think that's a complex calculation. So I think simple target of 20% growth is a much easier way of doing the business. Because while denim is growing, knits is growing faster, denim is at higher realizations than knits. So average realization might go down, but pace of growth might make up for it. So there's lots of pluses and minuses out there. So I think I was just talking within garmenting or even fabrics, right? Sorry? I couldn't hear that. No, I mean just within garmenting. Within garmenting alone, I mean with the price now 500 per unit. Yes, so what I'm saying is price may actually go below INR 500 depending on how many knits to denim ratio grows, right? and there is an exchange rate depreciation also happening, so there are lots of variables to accurately predict that INR 500 number is not the thing that any of us should be focusing on. We should be focusing on overall growth and number of pieces because that's an indicator of how capacity is increasing. Sure. That's it from my side. Thank you. Thank you. The next question is from the line Raunak Shah from TD Securities. Please go ahead. Yeah, sir. Thanks for the opportunity. So my first question regarding one of your comments wherein you have highlighted that the supply chain has absorbed the tariff. So can you highlight how the whole chain has absorbed that, and in that context, how we position ourselves compared to the industry peers? So I think that's a very complex question that doesn't have one answer. I mean, I would have to go customer by customer, which I am not at liberty to. But just broader perspective, if you can highlight? The broader perspective is the vertically integrated players like us have more degrees of freedom, especially when we have many different lines of business. We have AMD. Within AMD, we have three different lines of business. Two of them are virtually not affected by tariffs. That constitutes almost 10-12% of the whole tariff exposure. We have very robust domestic business. We have a growing EU, Middle East, and Australia exposure. Garments is only about 20% of, again, the company's turnover, where the impact is highest. A manufacturer who is 100% garment with a very high U.S. exposure, they'll be hit very hard. We are a very diversified business with, yes, a decent U.S. exposure, but then again, it is not all direct exposure, and it's many lines of business. We have this ability to buffer that. And because we are present throughout the supply chain, different parts of that supply chain are absorbing the impact. Our fabric and garments put together buffer somewhat the only garment kind of an impact. Okay. Understood, understood, sir. So second part, when we are seeing that the larger part of the offset is coming from the efficiencies, can you call out? Because from the numbers also, it is evident that as a percentage of the sales, OpEx and employee cost has reduced. So can you call out on that? No, so we are doing everything, right? We are similarly asking for discounts to our strategic suppliers. They are supporting us. We are cutting SG&A costs. We have frozen non-essential hiring. We have sort of taken calls on certain expenses that can be deferred or gotten rid of altogether. We've brought focus to every aspect of cost: conservation of energy, pushing efficiency. So the whole organization is focused inward on this one very important objective. And it is a necessity in this difficult time. So I think we've done a good job there. So it's a combination of multiple different initiatives and efforts to save costs and increase efficiency. Got it. Got it. That's a large question. I guess the full revised price inventory, it has not hit the U.S. market yet. But based on the talks with the client or the customer, how you are sensing the OpEx-related some disruption, or are there going to be no major disruption from the OpEx side or the customer side? So that's again anybody's guess, right? We are conservatively factoring in that the U.S. consumption might slow down in response to high prices. So it may not happen, but it is prudent for us to factor that, I mean, to behave as if it will happen. Where would you like to join this meeting now? No. Okay. When you want to join the meeting, just say, "Okay, we're next to join the meeting. Sorry. Our meeting software, AI-driven software, suddenly decided that it's 4 o'clock, and we should start joining another meeting. So I apologize for that. But yes. So the prudent way to think is that we should not—we should behave as if the future is going to be difficult. And if we are able to behave in that way, we will take the necessary difficult decisions and steps to reduce our cost and mitigate that impact. And then if that impact doesn't come, it will be a bonus. Excellent, excellent. Thank you a lot, sir. Due to time constraints, this was the last question for today's conference call. I now hand the conference over to Mr. Satya Prakash for closing comments. Over to you, sir. Once again, thank you everyone for joining today's call. We trust that the discussion addressed most of your questions. Should anything remain unanswered, or if any questions arise going forward, please do not hesitate to reach out to us. We are just a phone call or an email away, and happy to assist. We look forward to engaging with you in our upcoming engagement event. Thank you and wish you a pleasant evening ahead. Thank you, sir. Thank you, everyone. On behalf of Arvind Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your line.