Ladies and gentlemen, good day, and welcome to the Ganesha Ecosphere Limited Q3 FY 2025 earnings conference call hosted by Antique Stock Broking. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish. Thank you, and over to you, sir. Thank you, Muskan. Good evening, everyone, and thank you for joining the 3Q FY 2025 post-result conference call of Ganesha Ecosphere. I would like to thank the management for giving Antique Stock Broking the opportunity to host the call. From the management, we have Mr. Gopal Agarwal, CFO, Mr. Prashant Khandelwal, Senior Vice President, and Mr. Yash Sharma, Director, Ganesha Ecosphere. Without further ado, I would now like to hand over the call for opening remarks to the management, post which we shall open the floor for Q&A. Thank you, and over to you, sir. Yes, are we there? Yes. Yes, please. Go ahead. Oh, okay, okay. Sorry. Yeah. So yeah, hello, hello, everyone. Thanks, Manish and Antique Stock Broking for hosting us for the Q3 earnings call. And good afternoon to everyone, and I welcome all the participants here for our quarter 3 FY 2025 earnings call. So in the third quarter, which has just passed, we had a mix of experiences. On the one hand, operations and results of the rPET granule segment were on the expected lines, and we could increase the capacity utilization and deliveries both. But on the other hand, we experienced some distress in our legacy business of RPSF as well as in yarn. The major reasons were soaring feedstock, that is, the PET bottle scrap prices at the one end due to opening up multiple applications and higher demand, as well as seasonal impact causing lower consumption of bottled beverages and water. On the other end, the demand in the textile industry was depressed, coupled with oversupply position in the industry, owing to which higher raw materials could not be passed on to the final customers, and at the end, the gross margin got some erosion. Going forward, we are anticipating that the persistence of the situation for some quarters will get reversed if either the demand matches the supply or some kind of consolidation happens in the industry. The silver lining is that in the recent budget, some steps like fixing minimum duty of customs on knitted fabrics to restrict the current ongoing very, very cheap imports and increase in PLI allocation, etc., will boost demand in the domestic textile market. To combat the situation at our end, we are working hard both in the export markets as well as shifting our focus from traditional yarn spinning segment, technical textile segment, as well as working on alternate and cheaper raw materials for minimizing the adverse effects of the operations. In the rPET granule segment, we operated at a 75% capacity utilization this quarter. Our product has been well established in the market already, and we have a good demand visibility for the next financial year and do not see any difficulty from demand side. Rather, we are now working on increasing the capacity utilization so that the maximum produce could be achieved in FY 2026. In the recycled filament yarn segment, we are still exploring the market development, and demand is yet to pick up. Noticeable ramp-up we are expecting to pick up by Q2 FY 2026. With regards to our expansion plans of 45,000 tons per annum of rPET in Odisha, we have decided to increase the size to 67,500 tons per annum, and the revised capital outlay for the same will be estimated to around INR 600 crores. We are also looking for increasing the rPET granule capacity at Warangal from 42,000 tons to 64,500 tons per annum. So a total of 90,000 metric ton capacity will be added, and after this expansion, our total rPET capacity would reach to around 132,000 tons per annum. The Odisha project is on track as of today, and we have also already identified land parcel, and the formalities for the acquisition are currently under progress. Now, I would like to hand over the call to Gopal for taking you through the financial numbers achieved in Q3. Yeah. Thank you, Yash, and good afternoon to everybody. I hope all of you could find the time to have a look at our numbers for Q3 FY 2025. Company made a production of 40,630 tons and achieved consolidated revenue of INR 397.80 crore during Q3 FY 2025, which is 39.7% higher in comparison to corresponding last quarter. Out of this, INR 268.02 crore has come from standalone business, and INR 129.78 crore has been contributed by subsidiaries. We achieved quarterly EBITDA of INR 6.50 crore, which is higher by 41.3% from Q3 FY 2024. Out of consolidated EBITDA of INR 56.50 crore, INR 23.25 crore was contributed by standalone business operations, and INR 33.25 crore was contributed by subsidiaries. Consolidated EBITDA margins were at 14.2% of the operational revenue, and EBITDA margins of standalone business was at 8.66%. In absolute numbers, EBITDA per ton basis was INR 13,906 per ton, as against INR 12,036 per ton earned during corresponding last quarter. On the standalone basis, EBITDA of INR 8,041 per ton was achieved, which is lower by 26.9% from Q2 FY 2024 due to the reasons discussed by Yash. We got a PAT of INR 29.71 crore during the quarter, and it is 133% higher than corresponding last quarter. On year-to-date basis, company achieved production of 117,297 tons and revenue of INR 1,121.16 crore on consolidated basis, which is higher by 22.29% and 37.2% respectively from corresponding last period. We earned EBITDA of INR 159.50 crore and PAT of INR 79.40 crore during the nine-month period of financial year 2025. These numbers for the corresponding period were INR 90.80 crore and INR 19 crore respectively. There is a growth of 75.7% in EBITDA and 317.9% in PAT level from the corresponding period of financial year 24. Sorry. So with this, we request this house to ask the questions if they may have. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are requesting to use handsets while asking a question. Ladies and gentlemen, wait for a moment while the question queue assembles. The first question is from the line of Aman from Equentis Capital. Please go ahead. Hi. Thank you for the opportunity. So, sir, the new CapEx that you have announced is around INR 700-INR 750 crores. So I just wanted to know what will be the equity debt mix, or are we going to do it through the internal accruals? The CapEx is around INR 700 crores, and we have raised the funds through QIP of INR 350 crores, and the promoter's potential warranty is also there of INR 150 crores. In all, we raised INR 500 crores of funds. That was primarily for this expansion project. Currently, we are having some cash with us, and some of the funds we applied for, we're paying the working capital loans, which we can avail anytime. Basically, final debt equity and other things have not been finalized, but more or less, we are not focusing much on the debt level, but we are focusing on funding this CapEx through internal approvals as well as the equity which we have already raised. Okay, sir, and sir, another question about our value-added business. What was the contribution of the value-added business this quarter or for nine months? From our subsidiary businesses, almost 40% is coming from the subsidiaries and 60% is coming from the standalone business. Okay. And, sir, what are we envisioning for the next couple of years? Because obviously, we are focusing on the new value-added business through Go Rewise and focusing on rPET granules and B2F chips. So what kind of revenue contribution in the going forward in the two to three years we are seeing from the value-added business? So with this capacity addition of 90,000 tons, we are looking for about 60%, 65% revenue will come from the value-added products. Okay. And so, sir, I think that will uplift EBITDA margins up to, let's say, 16%? Yes. The blended margins? In fact, we expect the blended margin much more than that. Okay. Great, sir. And one last question, sir. I just had a silly doubt. Pardon me. I mean, what kind of plastic are we capable to handle, and what are we handling right now? Is it more on the rigid plastic side or the flex plastic side? Good afternoon. Good afternoon. So basically, we are handling rigid plastic and especially the PET section. We are also working on some R&D going on in some of the plant in flexible also. But mainly, at present, the company is working in rigid plastic, that is especially in PET only. Okay. Okay. Thank you, sir. That's it from my side. Thank you. The next question is from the line of [Prashant from Bernstein Research]. Please go ahead. Congratulations for the good set of numbers. So I have a couple of questions. First is, there is fall in gross margin and revenue per ton or year-on-year and sequential basis. So could you explain what might be the reason for the fall in the margin? So as we explained in our opening remarks, the gross margins are coming down because of the soaring raw material prices, feedstock prices. Okay. It is affecting our legacy business, particularly of the standalone business of recycled PSF and yarn. Okay, sir. And then next question is on the competition side. So many of our competitors are also announcing expansion plans and doing CapEx in the chips side of business. So do we see any risk from increasing competition? And if yes, then how might it impact us? Yeah. So yes. Yes. Yes. The line dropped, sir, and just connected. Sorry. Sorry. So as regards the competition, of course, there are many more players coming in this recycling rPET space because you see, as per the regulations, the mixing of 30% rPET is mandatory from FY 2026, and it will go up to 60%. So with this size of the industry, which is going to be created from scratch to about 1 million ton in the next four to five years, so certainly a lot of capacity is required to be created. So players are coming in. No doubt players are coming in. But you see, we are having a couple of advantages. Number one, we are the first mover and first mover. Number second, we are in this business since the last 30 years, and we understand the waste very well. Number three, we are having the robust collection network across the country. So number four, we have made a lot of R&D, and we have put a lot of effort in understanding the rPET for food-grade consumption because in India, you see, most of the PET consumption is in food-grade. About 85% is used in food-grade, 15% is only non-food-grade. So for food-grade, it is very, very important to decontaminate the polymer so no leaching is done in the packaged product. So these are the couple of things which we are already addressing, and our product is very well accepted by the brands, and we are supplying since last one year to them. So we are not afraid of any kind of competition. Okay, sir. Thank you, sir. That's all. Thank you. Thank you. The next question is from the line of Prakash Kapadia from Spark PMS. Please go ahead. Yeah. A couple of questions from my end. You talked about value-added products. You've increased the CapEx. So typically, what could be the asset turns in this business? And on a steady-state basis, what could be the EBITDA margin in the value-added products? Prakashji, if you're talking about the rPET granules, the asset turn is about 1.25-1.5. Asset turn is lower because the CapEx is higher in this business. But of course, as per the capital deployment, margins are also higher. We are looking for EBITDA margins in the range of 22%-25% in this business. 22%-25%. Okay. Okay. And that should come once we achieve a minimum threshold capacity. In the second year, we should expect that? Yeah. Of course. So basically, it took the longer time when we started our first line, but after that, second and third line did not take much time. So a quarter was taken to stabilize the line. So we don't think it takes more than three months to four months' time. Okay. Okay. Maybe at the end of first year, we could expect these margins. Yes. Yes. Yes. Okay. And there was a government regulation as per Plastic Waste Management Rules. The micron thickness was scheduled to increase from 50-120 microns for plastic bags. How much of this is implemented? And in recycled plastic usage and plastic packaging, are these big drivers for us or not really big game changers, or these are just incremental policy initiatives which could add a bit? Basically, this 50 micron versus 120 micron is applicable to the flexible packaging. We are working in rigid packaging only, and in flexible packaging, there is a mandate of using 5% of recycled content in 2025. As against in rigid plastic, it is 30% of recycled content to be used by all the brand owners. There is a difference between so there are different categories: Category I, II, III, IV. Category I belongs to rigid plastic. Category II, III belongs to flexible plastic. There is a difference between flexible and rigid plastic. Basically, for rigid plastic, the mandate is 30% in 2025, and every year it is going to increase by 10%. In 2026, it is 40%, then 2027, 50%, and in 2028, it is 60%. Okay. Every year, there is a 10. Yeah. Yeah. There There is a plus. Thank you. Thank you. The next question is from the line of [Anand] from Avendus Spark. Please go ahead. Yeah. Hi, sir. Thanks for taking my question. Just probably an extension to the previous topic. Sir, how is the plastic waste collection environment evolving given the EPR regulations in place? Do we see any change in the industry-wide collection mechanism that's currently in practice? And what are our key sources for getting the sourcing plastic? Basically, in India, the sourcing and collection is being happened through the rag pickers. There is a fleet of almost 60 lakh people engaged in this business. They are collecting the scraps from all the residential societies, houses, different offices, hotels, etc., and also from the restaurants everywhere, from everywhere where the waste is there. Basically, it is an informal system which is being operative in India since many years. Yes, mostly, it is the rigid plastic which is being collected. However, the flexible plastic collection is very low. That is not happening because of the lightweight of the material and non-recyclable design of these flexible plastics where multi-layer plastic is majorly consumed in flexible packaging. Yes, there have been several actions taken in the previous years for formalizing the collection system across the country. Different small projects have been done, but still, the most feasible system is the informal collection system of the rag pickers, and then it goes through different collection centers, then scrap dealers, and then comes to the recycler. This is how it is being done. So the informal sector is. It is informal sector, but it is a very efficient one. So that's why the Indian collection rate is much more than the other developed countries where the collection is happening through the government agencies or through regulators. Yes. Do we have any partnerships with large brands for providing any EPR certificates or something along those lines? Yeah. We are providing the EPR certification to various brands, large brands also. So their EPR liability is to 100% of their consumption. So whatever we are recycling, we are providing the recycling certificates to the brands. Any new tie-ups on that side? So it is ongoing. It is not a new business. It is ongoing since the last two, three years. Sure. Sure. So I would like to reach out to you for further queries, sir. Thank you. Thank you. The next question is from the line of Karthikeya Pandey from Ashika Broking. Please go ahead. Hello. Am I audible? Yes, sir. Okay. Yeah. So thank you for the opportunity. I just missed out the expansion plan that you were just telling it to the analysts. Can you just repeat what were the previous expansion plans and how they have announced new expansion plans and what will be the CapEx out there? So you see, earlier, we decided the location only for the 45,000 tons. Though we were already having the plan for 90,000 capacity addition, but we could finalize the location only for 45,000 tons. And when 45,000 tons location was decided, so we announced the plan only for 45,000 tons at the first place. So now we have decided the location for another 45,000 tons. And so it is not basically a different expansion, but it is a part of the expansion which we already thought out for 90,000 tons. Okay. And what will be the additional total capacity after this expansion at Odisha using Odisha, right? Now 67,500 ton is in Odisha and 22,500 ton in the Warangal. That is the existing location. Okay, and what will the CapEx outlay for these expansions? About INR 700 crore. Earlier, for the two lines, we had declared the CapEx of INR 450 crore, but now with the 90,000 ton, it has been now INR 700 crore. INR 700 crore will be including both of these expansions, right? Yes. Yeah. So if I'm right, you had earlier said you would expand 45,000 ton from Warangal. Now it's 67,500 at Odisha. So additionally, you are doing 22,000. No, no, no, no. Actually, earlier, 45,000 was in Odisha. So that 45,000 tons has been increased to 67,500. 22,500 has been added to that location. And 22,500 tons added to the existing location of Warangal. Okay. So another 22,500. Okay. Thank you. Thank you so much. Thank you. The next question is from the line of [Suraj] from Sampada Investments. Please go ahead. Hi, sir. Good evening. So how much time will it take for our brownfield expansion? Sorry, sorry. Could you please come again? How much time will it take for our Warangal expansion? Because it's a brownfield expansion, so I'm assuming that it will take a much shorter period of time. Yes, yes. Of course, we are looking for operationalizing this expansion by the end of this calendar year. Okay. And sir, we are given a guidance of around INR 600 crores of revenue. In nine months, we have done about 1,120, 1,130 crore thereabout. So, is there any revision in the guidance, or we are confident that we will achieve 600 crore revenue for this year? No. So already, we have done the INR 11.21 crore in nine months. Yeah. So we have done like INR 480 crores more to go in one quarter. So till now, we have done like. Last quarter, we did almost INR 400 crore last quarter. The balance may not be. It was only the guidance of INR 600 crore. Always, it may be 1560 or 1570, but we are not far away from 1500. Okay. And the last question is that from this year, the EPR guidelines will kick in, and will we get additional revenue for EPR certificates that we will sell to the companies over and above whatever we are doing for recycling? So, no. So whatever we are recycling, we are getting the EPR on that quantity. So in future, whatever the quantity will increase, we will get the additional revenue from that source, from EPR. So currently, we are doing sorry? Sir, complete your point. Go on. Yeah. So whatever the quantity we are producing, we have produced in this financial year, we have produced about 115,000 tons production. And so the matching EPR we have sold. And whatever the quantity will increase, so EPR will also increase in that session. Right. So my question was that the EPR certificates that we will sell in the market, that revenue will be over and above whatever we are doing in recycling, and the EPR certificate revenue will directly flow to almost like PBT line because there will be no additional expense for it. Yeah. So it is built in the cost. You see, it is built in the cost. And though it is, you are right, there is no expenses for issuing it, but it is a part of the operation and the cost and revenue metric. Okay, sir. No problem. Thank you. Thank you. The next question is from the line of Mann Ashar from Growth Sphere Ventures. Please go ahead. Hi, sir. Thank you for taking my question. First of all, sir, congratulations for a very great set of numbers, specifically from rPET side. Sir, just want to understand how do you see the demand and supply scenario, right? So doubling the capacity is a very big commitment. And from what I understand, there are multiple extrusion lines that are coming in India in probably FY 2027-2028. So just wanted to understand your POV because do you think that export market in itself will also be one of the things that you'll be facilitating with these lines, or you'll be only serving domestic? In In that case, demand-supply scenario, how do you see panning out and how you have actually calculated? Yeah, sir. So you see. So the demand is largely. Yes, please go ahead. Please go ahead. Yes, please go ahead. Sure, sir. So you're absolutely right. A lot of capacity is being built. But you see what is happening currently globally is that these recycling target mandates are being implemented across the globe. And for that capacity building, it is happening everywhere. So for us, we are completely obviously, we are also exploring the export market as well. And we already have made a couple of good networks, and already they're leveraging that and even building up even more because the rPET capacity globally is currently quite low compared to the current expected demand by 2030. And all these targets, once we reach that 2030 number, here are going to be revised upward again. And currently, what is happening is that the rPET, there are hardly very few players. Even though a lot of plants are coming up, but not everyone is getting successful. A lot of these capacities are not able to perform because running an rPET plant requires multiple competencies about collection of waste because you can't order raw material, about processing the waste in the right manner. The washing lines, there are no standard suppliers over there, so you really have to build your own expertise over there, and because of which, I think that for the coming five to 10 years, we have quite a good head start already, and because of our expertise, already delivered results, we will be obviously the preferred choice of big global brands for using rPET, so obviously, I mean, we have both domestic as well as the export opportunity in front of us if we talk about the next five to 10 years. Got it. The size of this market is very large. So because the market is basically regulation-driven. In the next four, five years, we need about 1 million tons of rPET granules for packaging. The demand is huge. Looking to the capacity addition, it is not much larger because you see capacity addition also takes 15-18 months' time to stabilize and then further approvals and approvals that are required. It takes about 10 years' time to come on stream. Got it, sir. Sir, and in our opening commentary, sir, we already mentioned the fact that the scrap PET bottle scrap prices have been soaring a lot, and hence our RPSF division has been suffering due to some of the unavailability of raw material. So do you think that the same can affect PET granules business as well, or that might be not that harmful because at the end of the day, the margins will be protected in that case because already there's some demand-supply mismatch? So, for this rPET granules, yeah, please, please. Yes. Sorry, sir. Please go on. Yeah. So for this rPET granules business, we are doing it raw material plus basis. We are not putting up the raw material increase in our account. So our margins are protected in that business as of now. So, sir, does fiber? Fiber is basically a commodity product, so there is an issue and challenges of the sales pricing. Got it. Sir, my last question is that on the JV that we did with Race Eco, right, for our flakes, I just want to understand the conditions on right of first refusal or right of first offer. Do we have the same with Race Eco? Second thing, the quality checks that will be done by our customer will be on that washing line as well. And the third thing that I wanted to understand is that post this, do you think that almost all the captive requirement of the flakes or granules will be completely satisfied for Ganesha as an entity? So you see, this is a brand for an intermediate product, the PET flakes. PET flakes, we are developing this model on hub and spoke model. So we are creating the spokes, and the washed flakes will be brought to our mother plant for further processing. Okay. Got it. That material, the intermediate material, will not be of the food grade itself, but it will be brought to our mother plant, and we will make it the food grade. Got it, sir. So it will be 100% for our captive consumption only, right? Correct. Correct. Okay, sir. Got it. Thank you so much. Thank you. The next question is from the line of Nitesh Dutt from Burman Capital. Please go ahead. Hi. Thank you for this opportunity. I had a question regarding our subsidiary's performance. If I just do a consolidated minus standalone math, I think our EBITDA in subsidiaries was INR 33 crores versus a revenue of roughly INR 130 crores. So that gives an EBITDA margin of more than 25.5%. This EBITDA margin, if I calculate for the last quarter, was roughly 21% odd. So just want to understand what has driven this uptick in the EBITDA margins in our subsidiaries, and which I'm assuming is the Warangal business. So number one, the sub-capacity efficiency has been done. So the more capacity applied is there. And the sale is also more than the production. So it also drives the EBITDA margin. And further, in last quarter, some of the raw material increase we could not pass on to the end customer. So that has also been passed in this quarter. And largely also, the EBITDA margin should move in the range of 20%-25%. That's why I told in earlier remark, the EBITDA margin will move 20%-25%. Understood. Understood. Thanks for that. Can you split the INR 130 crore revenue from Warangal into different product categories as well as give an idea of the volumes and realization across product categories? Sorry, I couldn't get your question. Can you please come again? Sure. I just wanted to understand the breakup of the INR 130 crore revenue. Is INR 130 crore revenue from Warangal across our rPET and different products? And also, what kind of volumes did we do across rPET and other products? So actually, due to the sensitivity, I don't think we can give a product-level breakup of the Warangal unit currently. Sure. Sure. No worries. Just one more question from my side. When do we see the other products picking up other than rPET from our Warangal facility? Sorry? Hello. Am I audible? Yes, please. Go ahead. Yeah. Yeah. I was asking when do we see our other products, the filament yarn and PSF, picking up from our Warangal facility? As of now, we are expecting it will take another two to three quarters, and we are expecting it will take off by September 2025. Got it. Thanks for that. I'll get back in touch with you. Thank you. The next question is from the line of Bhavya Gandhi. From Dalal & Broacha Stock Broking, please go ahead. Yeah. Hi. Thanks for the opportunity. My first question is regarding the split of INR 700 crore of CapEx between Odisha and Warangal. What is the split between Odisha and Warangal, and what would be the ramp-up time for each of the projects? Yeah. So in the opening remark, itself, we have informed that the Odisha project would be costing around INR 600 crore, and another INR 125 crore will be for Warangal. Okay, and sir, just wanted to ask, what would be the ramp-up? How long will it take to ramp up the Warangal facility because that is the brownfield one? So, brownfield, I also answered. We are expecting it to be operational by December. By December. Okay. December this year. Odisha will take at least 15- 18 months? Yes. Okay, but will we see incremental revenue in FY 2027 from Odisha? Of course. Okay. Sir, is it possible to share what is the asset turn expectation for year one and year two post capital, I mean, commissioning of the plant? So you see, it takes about three to six months' time of the capacity. So the last two expansions we calculated the stabilization three to four months' time. So we are expecting the same time here also. Okay. Okay. And just wanted to understand, sir, what is the current cash balance as of now that we have on our books, including liquid investments? About INR 150 crore. 150 crores. Right. And almost six months are away for the warrant conversion of our promoters. So that would add another what, 125 crores? 112 crores? Yes. Okay. Okay. And another INR 300 crores, we would be raising debt? So you see, we have already raised the funds, INR 350 crores to QIP in February. And that fund were deployed temporarily in the working capital of the company. So NBFC paid the working capital loans at that time. So we are already having that facility. And whenever the project goes on, we will drop the fund from the working capital facility. Okay. Got it, sir. And with respect to the traditional business, that was like a INR 70-80 crore PET business. So. I'll just request you to follow in the queue, sir. Please. Yes. Thank you. The next question is from the line of Mr. Manish from Antique Stock Broking. Please go ahead. Yes. So first question is with regards to the yarn business revenues this quarter. Yarn, we made about 15%-16% from the yarn. Okay. 15%-16% of the consolidated revenue is from the yarn segment. Consolidated revenue. Yes, yes. Yes. Okay. So Okay. So second is on the collection efficiency within the system. So earlier understanding was within India, there is 80% efficiency with regards to PET bottles. Is that understanding still correct? Yes, correct. Already 80% collection is happening in the country. So the question here comes is with us setting up a JV with Race Eco chain, how will the raw material sourcing move ahead in future? Earlier, we used to source everything on our own and then process it. Now with Race Eco chain, whether we will procure it from the JV or it will be both, how will the mix shape up going forward? So you see, we are sourcing the PET bottles across the country from more than 300 vendors. So Race Eco is already collecting from these vendors, and they are currently collecting about 12,000-13,000 tons of material in a month. So with the agreement with them, we are having the offtake of 75% of their quantity, which we can have on the metric tons. So we are having this cushion for expanding our capacity. Okay. So if I understand it correctly, whatever we are sourcing currently, that will stay. Additionally, 10,000 tons of raw material is what we can source from Race Eco chain, roughly. Correct. Correct. Correct. Sure. Perfect. And sir, is there any change in the lead time for machinery from Starlinger? Earlier, it was around one and a half years. So that still remains because the Warangal brownfield expansion is coming at a very short span of time, around nine to 10 months, we are expecting the commercialization. So is there a change in the lead time from the machine manufacturer? Yeah. Basically, we have already booked the machine earlier. Yeah. Much Yeah. Much earlier. Four, five months earlier, much earlier. But the announcement could not be done regarding the balance, 20%, 45%, 70% because we could not decide on the place and the location where we are going to put up the machine. Got it. Got it. So the lead time is the same, but as we have already booked the machine much earlier, so we are getting it in time. Perfect. Perfect. And just one last thing. So what can we expect in terms of the quarterly interest rate? So I believe it has increased slightly on a quarter-on-quarter basis. But as our debt and working capital requirement increases, and we are expecting a peak debt of around 600 crores, what should be the quarterly interest rate we should assume? Yeah. So presently, our total debt position is about INR 500 crores. So going forward, when we draw down our working capital facilities, the peak debt may go up to INR 700-750 crores. Okay. Understood, and that will be from first quarter of FY 2026 only? It will ramp up in stages. It will not be one go. Sure. Sure. No, sir. That's very helpful. Thank you. That's all from my end. Thank you. Thank you. The next question is from the line of Manohar K. Mannu. An individual investor. Please go ahead. Hello? Can you hear me? Yes, sir. Sir, what kind of revenue are we expecting next year, next financial year? Sorry. Sorry. Can you hear me? Yeah. Yeah. Yeah. Yeah. Yeah. Please go ahead. What kind of revenue are we expecting next financial year, sir? So next financial year, we are looking around 1,800-1,900 crore revenue. Okay. I have one more question. For example, do we have any kind of a moat? For example, if there is any new entrant, big entrant comes into this business, are we able to hold this business, sir? Hello? Yes, please do. You take this. Yes. Sure. Sure. Yeah. Absolutely. Absolutely. So see, basically, what happens when you talk about rPET, the conversion process from PET bottle bale waste to rPET granules is not a very standardized process. You need to understand how the washing is to be done. So there are two parts. The first part is washing, cleaning of the PET bottle bales into flakes, and then flakes to granules. The first part is particularly very, very complicated. And for you to create a very good quality of flake for the end rPET application, you need to understand very closely and build your own process design because there are no OEMs currently in the world available who can give you a committed quality guarantee on the bale-to-flake part of the process. Because in the bale, ultimately, it's post-consumer waste, and there are no quality standards, whatever you talk about. This understanding and this expertise is what we have developed over the years and running this plant with a very high operational efficiency. Because generally, these washing plants from bale to flake, they're done at very subpar efficiencies. We know how to run those plants on very, very high-efficiency models. Then thirdly, the collection network that we have built over the years. In case of waste, there is no single point where you can just order the raw material. You have to build your collection network. It's completely informal in India. We have an established relationship with almost more than 350 vendors across the country today who are supplying to us on a daily basis, very, very few quantities of waste on a daily basis. This is something which is very, very difficult and very costly to replicate today for anyone else. And that is the reason the way we have grown in this market, in the recycled PET market over the last years in India, no one has been able to do that, do whatever, say. So I don't think that even if someone big comes into, which is already happening, we're not really afraid because the kind of size, the kind of momentum, the kind of quality and consistency that we provide, it's very it will take years for anyone else, for a new entrant, to be able to reach that space. Yeah. Thank you so much for the answer, sir. Because of late, I've been seeing a lot of some of the companies which are trying to get into this business. So as per my understanding, there is some learning curve that they have to go through. It is not like just with money, they'll be able to do things. Exactly. Exactly. You're absolutely right. Yeah. Okay. Thank you so much, sir. Thank you. A reminder to all participants, you may press star and one to ask questions. The next question is from the line of Bhavya Gandhi from Dalal & Broacha Stock Broking. Please go ahead. Hi. Thanks for the opportunity. Sir, just wanted to understand what was the consolidated capacity utilization and standalone capacity utilization? The standalone capacity utilization is about 106%. 106%. And consolidated capacity utilization? Consolidated capacity utilization is about 65%. 65%. And for the entire Warangal plant, if you may? So sorry, it is about the Warangal plant. It is not the consolidated one. Okay. Warangal is 65%. Okay. And for the consolidated capacity utilization, if you have? It can be worked out. Okay. No worries. Sir, just one more thing. Because we are putting this kind of CapEx, 700 crores of CapEx, almost 750 crores of CapEx, have we finalized any long-term agreements with any of the players? Because I think this kind of visibility is only possible if you have any long-term agreement. So we are currently discussing long-term agreements with big players as well. That is also already happening in parallel. Currently, we are doing annual agreements, annual capacity agreements. But you see that as the regulation gets implemented, these talks will be happening because the market needs to settle down. The industry needs to develop. So from both the sides, it is currently just a discussion about. So it is happening, but it will take some time to finally materialize and enter into that. But nonetheless, the kind of regulation implementation which is coming into picture. And And currently, the state of the market where enough capacity is not available, it's just a matter of time until all of the industry ramps up. So I mean, as of today, we already have visibility of much more demand. I mean, currently, we are handling more than we can actually produce when it comes to this rPET segment, packaging segment. So we don't see any such difficulty coming in the coming years. It's not just domestic. I mean, it's a global phenomenon that is happening. The long-term discussions will also materialize in the coming time as well. Got it. Sir, just one more thing on the traditional business. Because over there, the raw material prices are now weighing on the overall consolidated numbers. So we were making around INR 70-80 crores of PAT in that business, I mean, on a steady-state basis. So what sort of PAT should we expect maybe two, three years down the line from this kind of business? Because that would sort of have an impact on that traditional business. So it cannot be everything cannot be projected as of now. What will be the position after some of the quarters? Because currently, burdened with the overcapacity as well as demand constraints. So ultimately, it will be moved. So after two quarters, three quarters, four quarters, the industry will survive. The industry will turn up. So it is very difficult as of now to comment on the profitability for this business for the next two, three years. Okay. Got it. And sir, with respect to the warrant conversion, any outlook from the promoters? So it will be converted as per schedule. Okay. It will be converted as per schedule. Got it, sir. Okay, sir. That's it from my end. Thank you so much. Thank you. The next question is from the line of Karthikeya Pandey from Ashika Broking, please go ahead. Hello. Am I audible? Yeah. Hello, Karthikey. Yeah. Yeah. You are good. Thank you once again. So sir, I was just trying to understand your value-added segment. I see it has a very good margin profile. So would you see down the line, what kind of business and contribution you are looking for from this segment? So you see that the market size is also quite large, and it is going to be created in the next three, four years. And the supply position will remain tight. So we see that the margins will remain there, at least for the next couple of years. Okay. And then what kind of contribution are you looking at the consolidated numbers from this segment, like going two, three years forward? I think we have discussed enough about the competition in this field, in this call. Thank you. As that was the last question for the day, I now hand the conference over to the management for closing comments. Over to you, sir. Yeah. Thank you, Manish, and thank you, Ganesha. Thank you to all the participants. Good day to all of you. Thank you. Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you. Thank you.