Ladies and gentlemen, good day and welcome to GMM Pfaudler Limited, Q2 and H1FY 2026 Earnings Conference Call. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dhaval Rajput from GMM Pfaudler Limited. Thank you, and over to you, sir. Thank you, Shifa. Good evening, ladies and gentlemen. A very warm welcome to all of you to the Q2 and H1FY 2026 earnings call of GMM Pfaudler Limited. The earnings presentation was uploaded on the stock exchanges today and is also available on our website. Hope all of you had a chance to go through it. From the management, we have with us our Managing Director, Mr. Tarak Patel, our CEO of International Business, Mr. Thomas Kehl, our CFO, Mr. Alexander Poempner, our CTO, Mr. Greg Gelhaus, and our Compliance Officer, Ms. Mittal Mehta. We will give you a brief overview of the performance of the company, after which we will get into the Q&A. Before we begin with the overview, a brief disclaimer: the presentation that was uploaded on the stock exchanges and also on our website, including all our call discussions that will happen now, contains or may have certain forward-looking statements regarding our business prospects and profitability, which are subject to several risks and uncertainties. The actual results could materially differ from those in such forward-looking statements. I would now hand over the call to Mr. Tarak Patel to provide an overview of the performance. Over to you, Tarak. Thank you, Dhaval. Good evening, everybody. Let me start off by giving you a quick update on the performance highlights of the quarter. Our revenue stood at INR 902 crore, up 14% quarter-on-quarter and 12% year-on-year. EBITDA for this quarter is up 20% quarter-on-quarter and 27% year-on-year, and stands at INR 122 crore. Our EBITDA margin currently is at 13.5%. The revenue for H1FY 2026 is up 7% year-on-year, and the EBITDA is up 21% year-on-year. Order intake was strong this quarter with INR 878 crore of order intake, and the order backlog currently stands at INR 2,146 crore. The acquisition of SEMCO has also been completed this year, and we have consolidated SEMCO for this quarter as well as consolidated the backlog that SEMCO brings along with it. Overall, just to give you a little bit more flavor in terms of what's going on. Our India business has performed quite well, both in terms of revenue and in terms of order intake. Like I mentioned to you in the last call, we expect India to have a good year this year, and with the order backlog that we currently have, which is well diversified across our three business lines, which are glass line, non-glass line, and heavy engineering. We do see the India business doing quite well for this financial year. In the international business, Europe is still slow when we talk about our traditional industries of chemical and pharma. However, we are seeing some kind of uptick when it comes to newer industry segments, especially for our systems business, where we did receive a very large order last quarter in a new sector that goes into asset recovery as well. That is a play that we see that is growing more and more, and we are currently negotiating a few large contracts in the similar space where we use our asset recovery systems to produce nitric acid. In terms of the mixing business, with SEMCO coming on board, that opens up a new growth area for us in South America. There are industries there that are currently growing quite rapidly, namely metals and minerals, mining, and water treatment. SEMCO has a strong order book and a strong brand name in the local market, and we expect SEMCO to have a nice growth going forward over the next few quarters. The American market, the U.S. market has seen a little bit of improvement. Obviously, there is a Make in U.S. initiative. There's a lot of contracts that have been signed recently that plan of investment in the U.S. If some of these investments in chemical and pharma materialize, that should help our U.S. business as well. All in all, I think that we are in a good situation as of right now because that is good visibility for the year. However, there is obviously a lot of work to be done. We are working on internal improvements, operational improvements, financial improvements. We are thinking about strategy and long-term strategy, especially when it comes to our focus on diversification. All in all, it is part of a journey. We are obviously on our way, and the market does seem to support it, and hopefully, over the next few quarters, we can see additional order intake and growth for some of the markets which have not been growing as quickly as we would like. I would now like to hand. Over the call to Alex, our global CFO, who will take you through the numbers in more detail. Thanks a lot, Tarak. Hello everyone. In addition to the financial highlights that Tarak already presented, I would like to touch on three key areas. First is on the consolidation side. We have completed the two acquisitions and considered first-time consolidation of SEMCO, the latest acquisition in Brazil, as well as GV in Poland. You will see it in the books. We acquired SEMCO for a total purchase price of $18.5 million, which corresponds to INR 162 crore, and the investment in Poland was PLN 11 million, which is roughly INR 25 crore. You see in the accounting that both acquisitions have been accounted for as goodwill only, and we will conduct, as usual, the PPA in the next 12-month period and will adjust the goodwill accordingly. The acquisition of SEMCO, due to the size, was funded partly by external debt. We draw down an acquisition facility of EUR 10 million. The rest of the purchase price was financed by internal cash. Another point is the working capital. As you have seen, it has increased in H1 versus the end of the last financial year. This is especially driven by higher inventory, especially higher inventory in India. This is the basis for our expected growth, and therefore we see this increase in this number. However, in the next half year, the remainder of this financial year, we expect an improvement again. The other increase in working capital you see on the receivables side, where we also work on, and we are positive regarding the outlook till March 2026. Finally, compared to last quarter on the FX front, in the last quarter, we faced this significant. Depreciation of the USD versus the euro, which caused big financial loss and therefore also increased our tax rate. In this quarter, the EUR/USD FX rate did not really change significantly, and it directly has a positive impact on our results, and therefore you also see a significant improved tax rate on the international business. This is so far from my side. Thanks a lot. We are now open up 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 touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jaiveer Shekhawat from Ambit Capital. Please go ahead. Sure. Hi, Tarak. Good evening. Tarak, first question now. Could you call out how much is SEMCO's order backlog in the overall backlog that you reported? Tarak, yes. Yep. We have $20 million in the backlog, $20 million USD. Understood. So when I look at your overall international order intake, I mean, is recovery still expected to be possibly later down the year? Are you seeing any green shoots there? Because we have seen a considerable recovery on the India business. How's the situation on the international side? I understand on the chemical side, it's not still picking up, but possibly the rest of the industry? Maybe I'll add, and then I'll jump in here, and then Thomas can add a little bit about what he's seen in Europe and the U.S. As I mentioned, the defense play that we've been kind of participating in over the last maybe six months or so seems to be gaining further traction. We currently have an opportunity close to EUR 10 million currently in Eastern Europe as well, very similar to what we are currently supplying the large asset recovery plan that we got. We have another very large contract that we are currently discussing with. We also have some opportunities in the U.S. where the client has signed engineering contracts, which gives us visibility of the order intake coming in shortly as well. All in all, the systems business and the non-glass line business has done quite well. Europe, as I mentioned, has been slow, and glass line particularly has been a bit slow. We are seeing some improvement in the U.S., but Europe, from a pharmaceutical and chemical perspective, investment is still being delayed. Decisions are still taking time. I think there is still a lot of uncertainty surrounding global trade and geopolitical issues. On the flip side, on the bright side for us, luckily, there is a whole different market that we can currently cater to. These are long contracts. These include a lot of internal as well as external kind of equipment. Again, it is the process technology that we have in-house that gives us the ability to kind of cater to this, right? These are quite critical in nature, quite. It is not that anybody can come in and supply an asset recovery plan for such a large contract, right? We have that capability, and hopefully, we'll be able to build that. As we continue to do so, we hope that some of the other decisions which have been held back for a few months will also materialize. We are being aggressive in the market. We are trying very hard, but the market also needs to support. Thomas. I mean, there's not much to add to this. This really describes the situation in America as well as in Europe. As Dhaval already said, we are very glad that we started diversification and process engineering a couple of years ago as part of our strategy and seeing the successes now in those times. However, we are seeing a little bit of uptick in service activities as well as in America as Europe. This is really a sign that our customers are getting more busy than they had been the last quarters, and that takes us to believe that the increase in order decisions will come very soon. On the international business, again, just more on the pharma side, given the amount of investments that are being put in on the GLP-1 or the semaglutide side. We've also seen some of the other pharma index players also do well, especially in the international geographies. How is that portion of your business doing for you? Semaglutide, GLP-1, very interesting business for us right now. We did see some investment a few years ago in Europe for these products. We are seeing more actually being traction here in India for semaglutide and peptide manufacturing. That has really become the buzzword here in India. We are currently executing a very large contract for a peptide manufacturer in the south of India. With that, we have a lot of open opportunities where we are seeing that a lot of these pharma companies are looking at peptides in a very large manner. That is definitely an interesting play for us, and we have technology available for this play because of our association with Mavag, our Swiss subsidiary, and that really helps us kind of be slightly different from competition. That has been a nice story for us in India. Internationally, yes, of course, there is semaglutide play. There could definitely be more investment. Where this investment happens, I know currently for sure there are large global players like Bakken and stuff who are looking to add investments. We are currently talking to them. I'm sure Lilly as well. Lilly, we received some orders recently from the U.S. for this. Is it specifically semaglutide or not? I don't know, but Lilly probably will be something to do with Munjaro or one of the new generation GLP drugs, right? I think this is going to be a big business for the future. I think a lot of people, and I've done a lot of research on this, I think that it is definitely going to be something that in future a lot of people will be consuming for better health and longevity. Yes, I think that's the play, and we have the technology to tap into this play as it kind of grows and progresses. Just a clarification. Your reactors, glass line reactors, will still be used wherever there is semaglutide manufacturing that's happening. Is that a fair understanding? It's not glass line. It's a filtration equipment. It's called an SPPS reactor. It's a technology that we had in-house, and we've been having for quite a few many years now. That's the technology that we are selling here in India now and also internationally. Understood. Understood. Thanks for the clarification. On the India business, it's interesting to see the share of systems and services that seems to be increasing in the order intake. Could you call out what's happening here? Is it, again, here in India as well, the share of systems is increasing? And why is that? I think systems in India have kind of been working on quite a few things over the last few years. We've been kind of building a test center very close to our facility in Gujarat. We've been actively pursuing new product development, right? Over the last few years, we have launched some new products that have actually been quite popular in the Indian market. We've replaced some existing products that could only be procured from Europe. That has been a nice kind of an opportunity for us. I think more and more people today, they do not want standalone equipment. When you have equipment, like in the peptide case as well, they want you to kind of put instrumentation, automation, glove boxes, and really give them the whole complete system, right? We have that capability in-house. We have a strong engineering team here. We have a global engineering center as well, but we can really add these kind of technologies very quickly along and as part of our equipment and really give them a complete solution rather than just the equipment, and then they need to worry about stuff later on, right? That has been kind of strong. What we also did quite well last quarter was started building a backlog for our heavy engineering business. There were some large orders received in heavy engineering, and currently, we have very large opportunities that we believe that we are very, very strongly placed for in the nuclear kind of industry here in India. That has been one of the strategic kind of diversification plays where we want to kind of enter into, and we have been working quite hard to get our names registered. Because of our association with HDO, the company that we bought in Butwa, we got some of these qualifications along with that acquisition, right? That has been a nice growth area, and we do expect order intake from this industry, at least in this quarter as well. We are quite bullish there. India looks strong across the three business lines, really. I think what is also nice is that this quarter, we saw agrochemicals coming back in a large way, right? Two of our big agrochemical clients, after really an 18-month to 24-month sabbatical, have now started investing again. It is not back to the original heyday when they were adding plants every six months, but there is definitely some amount of investment that is coming back. Hopefully, that can sustain and help us kind of build the glass line business and grow the glass line business. Last question on your balance sheet side. Jaiveer, I would request you to rejoin for a follow-up. Sure. Sure. Thank you so much. Thank you. Participants, in order to ensure the management can address all your questions, I would request you to limit it to two questions per participant. Next question is from Koushik Mohan from Ashika Group. Please go ahead. Okay. I'll start with the opening question. I just wanted to understand from last year to this year, our goodwill has grown by INR 2,000,000,000. Can I get the clarity? What is this exactly? How much for this acquisition, recent acquisition, and what is this accounting? Like INR 2,000,000,000 for accounting? This is Alex. If I understood correctly, you asked regarding the INR 200 crore increase in goodwill. This is due mainly to the SEMCO acquisition. As of now, we have considered everything in goodwill. We will conduct the PPA now in the following or in up to 12 months, and then the goodwill will be reduced. The increase is just coming from SEMCO and a little bit from the Polish acquisition. Okay. This will be depreciated over the next five years. This is my understanding, right then. No. What we do with all the previous acquisition as well, we conduct a purchase price allocation, and then we will allocate part of the value to, for example, customers or technologies, and the remainder will be the goodwill. For the goodwill, we do on a yearly basis, as already done now, a goodwill impairment test. The goodwill number will reduce in the coming 12 months. Okay. In the next coming 12 months. Perfect. Thanks for that. Thank you very much. Next question is from Kunal from Sunidhi Securities. Please go ahead. Yeah. Hi. Very good evening. My question is that just recently, your U.S. Biosecure Act was passed in both the houses, and it's due to just become a law. What traction do we see in the next two, let's say, two to three years, and then the next five years in terms of reassuring by the U.S. pharma companies for this? You're talking about the Biosecure Act? Yes. Yes, that's been passed. Like I said, and I wrote that in our press release as well, we mentioned that the U.S. could see some investments coming in from the Make in U.S. initiatives, the Biosecure, the tariff situation. Currently, are we seeing a lot of movement on the ground? Probably not. I think we probably will have to wait a few months for probably some of this to materialize. We've had requests once, maybe in the last couple of months, once or twice for U.S.-made equipment to be supplied quickly for a U.S. site where they clearly mentioned that only U.S. equipment would do. If that were to materialize, that would definitely help our U.S. entity because we are one of the only manufacturers of glass- line equipment in the U.S. in terms of the large scale and size. That would definitely be beneficial. We have another business in the U.S., which is obviously the Edlon business, but that's more semiconductor, so I don't think it has too much of a play in pharma. For our glass line business and our filtration and drying and mixing business, yes, there could be an opportunity if investment were to increase over the next few quarters in the U.S. Okay. My second question is that the unfunded pension liability has increased by about INR 30 crore over FY2025. What is the reason for that? I think when we acquired, I think about INR 430 crore around was the unfunded pension liability, which reduced to INR 285 crore. Now it has increased to about INR 312 crore. What is and how do we forecast this going ahead? If I understood correctly, you discussed about the pension liability that we have on the balance sheet there. We have usually only two impacts because the plan itself is closed. We have an impact due to changes in the assumption in the actual report and also some FX impacts. These are the only two impacts. It will vary just with, yeah, mainly the FX and the interest rates, but nothing more. There will be no additions coming in the future. Okay. My final question is, what is the percentage of services in the order backlog on the consolidated level? Services segment? Services will not be a very large number because services are very fast-moving, and they are just you get stuff and you kind of execute that within the quarter. I would say at any given time, maybe 10% of the order backlog would be around services. Yeah. Yeah. I would agree. Services is really, it's a fast-moving business. Therefore, really in the backlog, it's only a limited period. It's fully different for the technologies as well as especially for the systems. Systems business, long-running project. Therefore, it makes a big chunk out of the backlog. For services, it's not, no. The average order execution cycle would be about eight to nine months? Sorry, which execution cycle? Average execution. Order backlog execution would be about eight to nine months. It depends. A system order like the one that we received in Eastern Europe is going to go on for three years. Glass- lined equipment in India goes in about 14 weeks. In the international business, glass line goes in maybe six to eight months. Everything is different. Agitators go much faster. It changes. It's not one number for all product lines. It kind of changes. Services generally would be shipped out within a six-week period because services need quick replacement. The people are waiting for that. I would say even faster. Have we hired any new persons for the India business because the employee cost has increased? We have not employed new people, but as part of our tax optimization strategy, we are doing internal kind of recharges and stuff like that. That is part of our optimization strategy. Yeah. In fact, what we are doing, we are working more on the integration. In line with the integration, there are also some costs which we now see in India. This, of course, from a group perspective, it will help us. It will help us especially from the profit. As Tarak said, we did not hire any new people. This is normal. Not like any new people. I don't think we had the I think we can say that. Any new senior people in the management team, yes. Agreed. Okay. Okay. Thank you. I'll jump back and look you. Thank you. Thank you. Thank you. Participants, I would request you to limit your question to two per person so the management can address all their questions. Next question is from Sagar Shah from Spark Private Wealth Management. Go ahead, please. Yeah. Thank you so much for the opportunity. First of all, congratulations to the team of GMM Pfaudler for delivering better results, actually. My first question, sir, was related to our especially performance on the international, for the global situation is still under uncertainty because of the U.S. tariffs, actually. In going forward in H2, does the uncertainty look to prolong the order, or do you think that there will be some sort of improvement which we saw in Q2 in terms of new order intakes as well as in the non-glass line technologies especially? What do you think of H2, especially under such uncertainty? I'll start, and maybe we'll look at each market separately. Again, we can't paint the same brush for the whole international business. There are definitely segments which are growing. Our Edlon business in the U.S. driven by semiconductor is growing. Our SEMCO business in Brazil now driven by metals and minerals, water treatment is growing. In Europe, we have businesses in asset recovery and systems that are growing. It's different, right? I think chemical and pharma in Europe is slow. Maybe, Thomas, you might want to add in terms of Germany. The Western Europe countries, what are you seeing there? We are seeing a few differences in Europe. If you look at Southern Europe, Italy, Eastern Europe, we see better demand, higher demand than in other regions. Germany is rather slow in demand, and the economy is rather slow. There are still some uncertainties. If you look to China, China is a totally different ballgame. China is still one of the largest chemical industry markets. The demand has been slow for a while. There has been built-over capacities that are being used up, and we expect the market to come back by next year, but rather slow at this time. I think what has helped us over the last maybe few quarters also, like why we've seen a slowdown in our core business of glass line and our core industries of chemical and pharma, I think our diversification strategy, our ability to cater to newer markets and new industries has helped us make up some of the shortfall. I think that's been an interesting learning for management as well. I think as we go and move forward, you will see obviously new verticals that will add obviously a lot more kind of growth to the current portfolio that we have. Okay. Got your point, sir. Now, my next question was related to our two acquisitions, actually. One was in Poland, and second one recent with SEMCO for industrial mixing business. First was in Poland. Now on the Poland, the acquisition is completed with joint venture is signed. What have you thought of especially on the stainless steel reactors to produce there? What is your thought process regarding to expand in Poland? Second was on the SEMCO. Now, on the SEMCO, you've got the South American business over there. Basically, we have another three companies also in industrial mixing business. Now, this is the fourth one. First of all, any color on how do you integrate all these four companies? As we already know, that's what's the thought process. Now going forward for the fourth acquisition also, so what kind of is there any new product introduction in the mixing business that you are thinking of? What is the thought process regarding these two acquisitions now? Yeah. Good question. I think Poland has been a strategy for quite some time. Eastern Europe has been our strategy in terms of improving operational efficiencies in Europe, especially Western Europe, where we have two sites in high-cost geographies. We have Mavag, obviously, in Switzerland, and Mixel, obviously, in France. Poland is a kind of a supplier or a kind of a dedicated workshop for these two companies. Over time, we would look to move more and more production to Poland. We are already full up in Poland with orders from both Mavag and Switzerland. The first few orders that were executed were executed at a very high-quality level, and both the Swiss and French counterparts were very happy with that additional kind of facility and footprint that they now have. I think over time, you will see that more and more fabrication work will move to lower-cost geographies, and that's the clear direction that we are working towards. At the same time, we do want to maintain our ability to be local, so we will have some amount of testing, services, engineering locally that's still going to be required. From a production and manufacturing setup, we definitely want to look at better cost structure. India also kind of supports our Swiss and our French subsidiary. We do export directly for Mavag into the U.S. as well because we have the ability and the stamp for U.S. ASME stamps, which obviously is more difficult from Europe. That's something that's already been doing. I think we have enough work within the group where we have different options when it comes to where equipment can be manufactured. SEMCO, again, a very good, strong company in South America. The focus is really growth. I think today we have a very comforting business in South America where the order backlog is basically a year's worth of order backlog that they have. I know that currently they are negotiating large opportunities, which will add to this backlog as well. I think the investment in both metals and minerals, water treatment, and mining over the next few years will continue to grow. That is a nice option. Coming back to your point about how do we combine this, during our recent visit to SEMCO, we did realize that they have a few equipment which we can actually bring back to Europe and to India. They have these new dryer systems and stuff like that, right? From a strategy perspective, there is an entire strategy being built around these four mixing platforms. We definitely want to combine them under one umbrella. There is a rebranding strategy going on. We want to bring the product portfolio under one group. We want to kind of have these portfolios divided by industry segments that can be sold across the world, right? We can replicate some of this. The idea was when we bought these four companies to not buy the same technology. Each one has their own area of expertise. Let's say SEMCO is metals and minerals and mining, Mix Pro has more chemicals, while India does more pharma, and then Mixel is kind of biotech and things like that, right? They kind of complement each other quite well. The idea is to really grow this business. I think from a global perspective, we are now from an acquisition and global perspective, the four in the world is now completely covered. Now we need to just go out and get market share and win orders under our new kind of created umbrella or this mixing umbrella. Okay. If I just can squeeze one more, what will be the drivers? Mr. Sagar, you may read over. It's just a follow-up on the existing question. Okay. Okay. Sure. Thank you. Next question is from Bharat Seth from Quest Investment Advisors. Please go ahead. Hi, sir. Good evening and thanks for the opportunity. Sir, my first question, like what SEMCO there we are talking a lot. About a couple of years back, process flow industry process were also a lot of talks were going on. Can you give a bit color to how that process flow, which saves a lot of energy? How we are placed and what are the happening and do we have old technology like including glass line reactor that we have for chemical business? Okay. There are two different things. One is semaglutide is a real story because there is consumption here. There are more and more people using. I think last quarter, last month, Ozempic was the best-selling drug in India. It is picking up. That is going to grow for sure, 100%. Okay? Coming back to process flow technologies, there is a lot of talk. There has been a lot of talk, first it became a buzzword. There is definitely move. We have actually created an entire flow chemistry setup in our facility in Karamsad where customers can come and do trials with us. We made a complete chain of equipment that has multiple different applications, reactions, filtration, drying that can be tried out. We are definitely getting ready. Has it taken up in a big way? Probably not, but there will definitely be specific chemical reactions within chemical plants that can move to flow chemistry. Will all of it move? Probably not, but there could be specific areas where they could definitely use flow chemistry. This is something we are working along with NCL and a U.K. firm as well to see what are the kind of new technologies we can develop. Part of this consortium, we also have other chemical companies. We are kind of working together with industry, with customers, with experts as well, and scientists to try and see how much these things will grow. It is growing, but there are specific applications. Otherwise, I think that will still continue, and flow is obviously something for the future. Second question, sir. Now, a lot of, I mean, from this generic pharma, the way it is happening, moving to the biotech side, so how is we are placed with. More colorful? Yeah. I think it's different. I think biotech is a specific area, biosimilars and stuff like that. Chemical and pharma, I think pharma, the big generic pharma will still need large plants, large capacity. You look at the generic players in India, they're adding capacity. So that's going to continue. Volume, generic APIs, that will continue. Okay. Thank you and all the best, sir. Thank you. Thank you. Next question is from Mayank Bhandari from Asian Market Securities. Please go ahead. Yeah. Thanks for the opportunity. Sir, I just wanted to understand. As you're talking about a revival in the domestic market, how much of your order book pipeline would have grown in the last six months? Or is there a number that you anticipate, order book pipeline? I think last quarter, India order book number. I think we are about INR 900 million or INR 1,000 million higher in order book this quarter versus previous quarter. If you look at the India order book trends, they are definitely on an upward trajectory. Glass lining has still been slow. HE and obviously the other businesses have done quite well, but some amount of glass lining, like I mentioned, has come back. In chemical and specifically agrochemicals. We are seeing some investment. Is it back to putting up three plants in a year? Not yet, but it is coming back slowly. How much of the growth do you anticipate next year, this year, or maybe this year in the order book overall? I mean, I don't, so right now, I think we have order book on hand. I think we already are, in terms of order booking for this financial year, our internal targets have already been met. We are really building order book. We would definitely like to start the year with a much stronger order book because for us, order book is critical, right? If we start April 1 with a strong order book, we can have visibility for the year. I'm kind of, I think India will do well. We are quite confident of beginning that order book. I think we have enough of opportunities. We have enough of diversification to kind of start that. I would hope that at least a 15%-20% improvement over previous year, we would like to start with in terms of order backlog. This includes the large order finalization as well? It includes everything. We are spread across multiple industries, so there could be large orders, small orders. The glass line could suddenly also kind of improve significantly. Yes, order book is across all our businesses, but when we say India business, it's stuff that we manufacture in India only. Secondly, on this way around, yeah. Mr. Mayank, please rejoin for any follow-up. Okay. Thank you. Next question is from Piyush from Motilal Oswal. Please go ahead. Thanks for the opportunity. Sir, I just wanted to understand a growth profile. Let's say if I look at GMM over a two, three-year horizon, if you can help me understand what's the top-line growth that a GMM can do over two, two, three years? And if you can dissect that growth between, let's say, an Indian operation and rest of India operation. You're talking about, sorry, future growth or you're thinking of future? Yeah, yeah, yeah. Because all the opportunities that you've highlighted, let's say, semaglutide, nuclear. I really can't put a number because we are living in a very uncertain time, right? We are building the building blocks. I think the foundation is strong. We are diversifying. When you look at GMM for 10 years, you will probably see a very different company. Today, if you go and ask 90% of the people who know GMM for that, they will say glass line, right? In 10 years from now, I don't think people should know us for glass line, but they should know us for being this engineering, technology, process, equipment provider that kind of has a wide range of equipment and systems that go into many, many different industries, right? It is all part of a journey. The chemical and pharma market for us still remains the most important market. It is never going to be something that we are going to let go. We need to maintain market share, be aggressive. Is it going to drive significant growth? Probably not. In glass line, you already know we have a market share of 40%-50% in glass line. Additional market share will come at a cost. We are not building our next three-year, five-year plan around the glass line business. The glass line business does have opportunities in terms of cost optimization. Improvement in margins, cost synergies, all that work we will definitely do. The growth is really something that we want to bring from new industry segments, new areas, and that is what we are working on. The foundation and the blocks are in place. If we have the organization to support this, I think we should be in a good situation. Again, we are in an industrial business. It is a manufacturing business, very labor-intensive. It is not. As easy as it is to add blocks or sites and stuff like that. We do plan to grow. I think things are definitely better today than they were 12 months ago. We are still optimistic. At the same time, we want to also be clear that there are areas where we do still have concerns. We do hope those markets turn. All in all, I think we are happy with the performance today, and we hope to build on it over the next few quarters. Just a follow-up on that. With all the new verticals that are building it upon, let's say, from the glass line. I mean, there might be some internal targets that you might be keeping. Let's say if I look at GMM five years down the line, will, let's say, a high teens kind of a growth make you happy? A mid teens kind of a growth make you happy? Just wanted to understand the direction. I don't know. What will make you happy? I mean, I don't even have a number. Yes, I think double-digit growth in India should be kind of something that we should aspire for. I think international may be a little bit lower than that. I think as management, we always aspire for, I mean, we don't want to have crazy growth and crazy change every quarter. We want a sustainable business that makes sense, and it should keep improving over time. That also, let me say, for international, I think there's a big difference regarding the kind of business. Let me say, if you look at Athlon, which is linked to the semiconductor investments in the U.S., it's, of course, a different growth play than, for example, the glass line business where we are market leader in most of the markets and which are closely linked to chemicals and pharma. However, then the latest acquisitions, where we also should benefit from synergist integrations like the mixing, and where we still have a small piece of the cake, of course, it should also go significantly better. As we said at the beginning of the call, this, in fact, improved our result this quarter. In fact, the strategy to also invest outside of our standard glass line business, is it mixing? Is it interseal? Is it Athlon? There, I'm also a little bit more optimistic regarding the top-line growth. Maybe here is a good opportunity to talk a little bit about our heavy engineering business that we have not spoken. We have Dhananjay here with us who handles our heavy engineering business. Currently, he is Head of Operations, but he will also run our heavy engineering business. Maybe, Dhananjay, you want to talk about what are we trying to do? What is the strategy. As a heavy engineering growth strategy? Yeah. So for heavy engineering, we are looking at expanding our presence in different sectors. As Tarak shared earlier, we are looking at nuclear as one of our areas of focus in addition to refinery, oil, and gas, what we are doing currently. The other areas of interest will be fertilizer and green hydrogen. These are the areas we are looking at. Today, our business is more focused on the domestic market. We are looking at expanding our presence in export, which we will be focusing on the Middle East, presence in the U.S., and European EPCC. This is what we are looking at. The growth, as Tarak shared, we are looking at a very good growth because the base is very strong. The approvals are in place. We are getting global approvals also, and that will help us grow in the near future to a very good number. Exact number, if you are asking, that we are today, we are not putting any number to it. But the assurance is, yes, we are set for a very good number. Got it. Got it. Thanks a lot. Thank you. Next question is from Praveen Kumar from Actis Capital Advisors. Please go ahead. Yeah. Hi. Thanks for the opportunity. I had a couple of questions. The first one was on the international technologies revenue. That came in at about 9.2% growth on a year-over-year basis. Could you give us some flavor on this in terms of, was it mainly driven by the U.S., or was there contribution from Europe as well? Some geographical flavor within the international business on the technologies part of the revenue. Yeah. I think, sorry, Alex, do you want to go ahead? Yeah. We also, what we have there in the revenues growth, it's included the mixing business. And please consider that we also have the first-time consolidation of SEMCO included. However, as said, we also have our Athlon business included in the technologies. And also, Athlon is doing well or doing okay, put it this way. So it has several aspects. I do not want to explicitly focus on the market because, as said before, China remains weak. The growth in technologies is not coming from China. Also, Europe, we already said before, they are a little bit, yeah, behind. It's still quiet, and therefore, we also do not see the growth coming from there. It is more or less coming from one or two areas which are outside of our standard glass line business. What would the growth be ex-SEMCO on the international technologies part of the revenue? I think ex-SEMCO, I think the technologies growth would be pretty flat. Yeah, I think so. Yeah. This is despite including the mixing part of the business and everything combined, right? The mixing before that was already part of the business. Everything international was already there. SEMCO is the new addition. Correct. Understood. Understood. The second question was on the international services side. If I compare on a year-on-year basis or to the previous quarter, growth has been fairly flattish, 100%. I just wanted to understand the flavor of that. If I look at whether I look at Europe or U.S., is there a geographical flavor to this services revenue being somewhat flattish? Or is it that, for example, you are facing challenges from competition in geographies like the U.S.? The service area as well as in America and Europe, of course, if the demand for additional equipment goes down, usually the service is slower also because utilization of the equipment in our customer spaces goes down. However, the good news is that we are seeing an uptake in service right now. We are seeing more activities in service. The service business will recover sooner than the original equipment business. Okay. In the U.S., part of the business? This is more in the U.S., I think. It's more in the U.S. I think chemical and pharma, and you would know this better than us, the big chemical pharma companies in Europe, I mean, the BioESE, etc., the world, they are not on the best kind of outlook and expenditure. Europe is weak. Maybe there's also, we need to be a little bit more aggressive in the market. Maybe there has been a slight market share loss that we probably had in Europe in services. We are aware of that, and that's something that we are working on. The U.S. market itself, we are quite strong in because it's kind of, we are the only manufacturer locally who can do this. I think that is a good market, and that looks a little bit better today than it did six months ago. Understood. Thanks for the response. Thank you. Next question is from Saif Sohrab from ICICI Prudential AMC. Please go ahead. Thanks for the opportunity. First question on the Forex part. For the first half of the year, we have an unrealized Forex loss, right, of INR 560 million, which you explained in last quarter also, is because of the euro appreciation against U.S.D. Given where euro is, right, and if it is stable, would this non-cash item stay as it is? There is a chance it gets reversed. Sorry, I think you apologize if I'm not fully understood. You referred to the FX loss that we especially faced in the first quarter, and if there's another impact due to the potential FX changes. More or less, we faced the loss in the first quarter. In the first quarter, there was a change of roughly 10% in the USD/EUR FX rate. Therefore, we had the loss, which also more or less triggered this high tax rate. In the second quarter, if you compare it, the FX change was not so material. Therefore, we did not have this loss again. Now, looking into the future, we do not really see how it developed. Okay. Second thing, just on the balance. Yeah? Sorry? Yeah. Yeah. Second thing, just on the balance sheet part, debt has increased, right, with the acquisition you had. How do you think about borrowings, at what level you're comfortable to maintain at that? Going ahead, say, over the next one year, how do you see borrowings, both current and non-current, evolving? The debt ratio, I think we don't want to go. We said we would like to keep our leverage below 1. And this is also our long-term guidance that we would like to give. Okay. Thanks for the information. Thank you. Next question is from Yug Jhaveri from Molecule Ventures. Please go ahead. Hi, sir. Very good afternoon. I had just a couple of questions. First, on the domestic market side. There has been 31% growth this quarter, and the margins have been quite sustainable from past two quarters, which is versus what it has been a year ago. The price undercutting scenario, which we were facing last year, has it slowed down? Order revival, you mentioned agrochemical. However, on the specialty chemical side, is there new orders coming or conversion happening? On the same order book, has it grown much, this H1 FY2026? Are you anticipating any growth in H2, or it should be in the similar range only? Yes. I think, one, I think I'll talk about the order book in H1 first. I think overall, it's slightly, I mean, it was made up in H2 because we had a good quarter, but Q1 was slow, and Q2 was much better, which puts us in a good position now. Do keep in mind that we had large opportunities in heavy engineering, which were not finalized in Q1 and in Q2. One was. Because of the capacity utilization, we have now been able to add to that. You will see order intake, I think, increase, with heavy engineering coming in. You will see large orders from that vertical also increasing. Coming back to glass line, I think it's important to mention that we had two factories last year. We had Karamsad and Hyderabad. We had both factories kind of utilized at 50%, 60%, 70-odd% at best. Today, we have everything flowing through just the Karamsad facility. The Karamsad facility is full. We have nearly a five to six-month backlog in glass line. We're running three shifts. The furnace is obviously now all kind of being used up to capacity. I think on the pricing front, there has been some kind of rationalization of pricing. There has been some stability there, and I think that will continue. As the market improves and as the number of inquiries and opportunities increase, then maybe there's a further opportunity to also look at increasing prices. Last and not least is the Shikhar program that we are currently working on. That was something that was last year we paid, and we had somebody working with us. That should add a good amount of cost benefit going forward as well. India, I think I'm quite confident it should do quite well and that I believe that we will have a good starting point for next year as well. Yeah. Okay. So follow-up on the same. So beside the Shikhar program and heavy engineering segment, the price undercutting slowdown has led to this margin expansion, or basically, those two were the only main reasons for margin? And any plan to expand capacity in GLE India side? No, nothing right now. I think there's plenty of capacity that we have. We can very quickly add furnaces if we need, but I don't think that glass line is something that I think we have enough of capacity. I don't want to be in a situation where to fill capacity, we have to start again kind of going into a price war. I think from that perspective, not right now, but if we do see a lot of movement of, let's say, manufacturing or new investment coming in, we can very quickly add a furnace. That's not a big problem. In terms of pricing, again, I think it's stable now. I think it's at a level where the market is sustainable. I think over time, it should improve. If everything, we have steel prices going up. We have gas prices going up. All those things get passed on over time. And yeah. Okay. Last question, sir. On the Europe side. Please rejoin for a follow-up question. Sure. Next question is from Bhavik Shah from Invexa Capital. Please go ahead. Yeah. Hello, sir. Sir, can you throw some light on the heavy engineering business? What exactly are we doing on the nuclear side or on the green hydrogen side? What is our market opportunity there? What kind of revenues do we currently do, and what kind of revenues do we aspire to do there? Sir, when you talk about approvals, what kind of approvals are these? Without giving away too much competitive advantage, I'll ask Dhananjay because he's the expert in this field to maybe say a few words. As you're asking for nuclear, there is a split order from NPCIL, which is going on. We are going to supply equipment for India's nuclear program for NPCIL and the EPCs, which will be selected by NPCIL. This will be a continuous opportunity over the next five years, and we will keep supplying. Approvals you are talking about, there are EPC companies in the U.S. and Europe, which we are getting approvals. The approvals which our acquisition of HDO, we had, those approvals are being passed on to GMM, and those will be useful for our future business. Yeah. What kind of order are we doing for NPCIL? What exactly are we supplying here? What is the size of the order here? We need to supply heat exchangers for primary circuit and secondary circuit in the nuclear power plant. Okay. What's the size? And sir, what are we doing in the green hydrogen side? Thermal. Yeah. Also, the same similar equipment will be supplied for thermal power plants, which will be in balance of plant. As far as green hydrogen is concerned, we have already executed one order for one of the German EPCs for an Indian-end customer. We will be supplying heat exchangers for those hydrogen plants. Can you just quantify the opportunity here? It's a very large opportunity. It's too early right now to say too much right now. This is something that is also strategic in nature. I think the opportunity is there. The play can be a wide range of industry segments. At the same time, oil and gas, and like Dhananjay mentioned, the Qatar, Abu Dhabi, Saudi Arabia, those are opportunities as well. We worked quite a bit to get registered and create agency networks and sales networks in these areas as well. Hopefully, some of the export business will also materialize. Excellent. What kind of revenues do we currently do from the heavy engineering side? Sorry, I'll just answer that question. I think last year, we were double at INR 260 crore across in heavy engineering. Yes. Yes. From this half year to date, we are at what? Yeah, I think that there's already like 15% growth or something like that. It is growing. We expect HE to do quite well this year also. Okay. So all the best. Thank you. Thank you very much. Ladies and gentlemen, due to time constraint, we will take that as the last question for the day. I would like to hand over the conference to management for closing comments. Thank you, Shifa. Thank you, everyone, for joining us today. It was a pleasure interacting with you, and we look forward to many such interactions during the course of the year. Take care and see you soon. On behalf of GMM Pfaudler Limited, that concludes this conference call. Thank you for joining us. You may now disconnect your line.