Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q2 and H1 FY 2027 post-earnings conference call of Control Print Limited. Today on the call from the management team, we have with us Mr. Shiva Kabra, Joint Managing Director, and Mr. Jaideep Barve, Chief Financial Officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended September 2026, the growth perspective, and vision for the coming year. Post which, we will open the floor for Q&A. Over to the management team. Hello. Hi. Good afternoon, everybody. I am Jaideep Barve, the CFO of Control Print Limited. Welcome all of you to the earnings conference call for the second quarter of the financial year 2026/2027. We appreciate that you have taken out time from your busy schedule. Thanks a lot for this. Mr. Shiva Kabra, the Joint Managing Director of Control Print Limited, also joins me on this call. For the first time joiners on the earnings call, more information about our company can be obtained by visiting our website. For information, the detailed presentations has already been put up on our website as well as in the investor presentation notification on the exchanges for this call. Now, let me provide you some hi ghlights on the performance of Control Print Limited on a standalone basis for the quarter 2 of FY 2026/2027. Revenues. On a standalone basis, the total revenue in the quarter 2 of FY 2026/2027 is approximately INR 134 crore. As of H1 for this year, it is INR 241 crore. Just for information, the comparative figures for the total revenue for FY 2025/2026, 2024/2025, and 2023/2024 are INR 460 crore, INR 395 crore, and INR 347 crore respectively. Regarding the operating revenue, on a standalone basis, it is INR 131 crore in the Q2 of FY 2026/2027. As of H1, this is INR 235 crore. Just for comparison basis, this was approximately INR 100 crore in the quarter 2 of the previous year, and INR 202 crore in the H1 of the previous year. Coding and marking continues to be the most significant business segment. It contributes approximately 94%-95% of the total operating revenue. The business outlook for the coding and marking segment for the next half is exciting, with new customer base getting added to our portfolio. We are also in the base of development in new technologies in printers, inks, and cartridges. Furthermore, we are hopeful of improving the contribution margin. This particular segment has seen a steady growth. Pipes, food, dairy, cable wire, FMCG, steel, and wood, continue to be our top-performing verticals. We are one of the market leaders in cement, plywood, sugar, and dairy. The business outlook for our track and trace division for FY 2026/2027 is very positive. We continue to develop new solutions. We have also acquired new customers. We are getting some good traction in the co-packing activities in the packaging division. A pipeline is being generated for the new machines, for the laminates business, as well as the co-packing activities. The management of this division is being strengthened and operations are being more tightly controlled now. On a standalone basis, the cost of goods sold is about 41.65% of the operating revenue for the quarter 2. On comparison to the previous quarter, this was 42.32% of the operating revenue. Manufacturing costs are approximately 2.26% of the operating revenue. This is in line with the earlier periods. Employee costs are 17% of the operating revenue in Q2 of FY 2026/2027. Comparative period in previous year, it was approximately 18%, and for the entire FY 2025/2026, it was 19%. Depreciation is approximately 3.5% of operating revenue. This remains in line with the previous years. Other expenses are approximately 15% of the operating revenue. Comparative period in previous year and entire FY 2025/2026, it was about 13% of the operating revenue. On a consolidated basis, the operating revenue is about INR 144 crore in quarter 2 of FY 2026/2027. Correspondingly, in the quarter 2 of FY 2025/2026, it was INR 112 crore. The cost of goods sold is 44% of the operating revenue. Compared to the quarter 2 of FY 2025/2026, it was about 40%. Manufacturing costs remain about 2%-3% of the operating revenue. These are in line with the prior periods. Employee benefit costs are approximately 20% of the operating revenue. Depreciation is approximately 3.5% of the operating revenue in Q2, which remains in line with the prior periods. Other expenses are 14% of operating revenue in Q2. Management focus will be now on increasing the revenue for the overseas subsidiaries. Obviously, we will also optimize costs in these overseas subsidiaries. On an overall basis, the management remains committed to optimize the procurement costs and also look at closely into the economy, efficiency, and effectiveness of the operations. This, we feel, can definitely lead to further reduction in the operating costs and increasing the profitability. The way forward for our company, we shall consolidate the coding and marking business. We will increase the install base. We will provide more and robust solutions. We have already implemented certain price increase. With reduction in input costs and overheads, we feel that our profitability will definitely improve. The track and trace segment is looking very positive. There are opportunities in the domestic market as well as international market. We aim to capitalize these opportunities by focusing on better marketing and sales strategies. We have got a good pipeline of the orders, and the delivery will be in the next two quarters. We expect to increase revenue in the packaging business, both in India as well as overseas. However, as I said earlier, we will focus more and closely with the overseas subsidiaries. We are giving the business plans and we have mandated them strictly for the execution. The floor now opens for questions from the audience. Thank you so much. Thank you. All those who wish to ask a question may use the option of raise hand. In case you are unable to raise hand, just drop a message on the chat window and we will invite you to ask a question. We will take first question from Mr. Madhur Rathi. Please go ahead. Sir, thank you for the opportunity. Sir, firstly, I wanted to understand regarding this consistent delay in breaking even the V-Shapes subsidiary. What is happening, if you can help us understand, every quarter you mention that it will get breakeven in maybe next one or two quarters, and then it gets postponed. If you can help us understand and at what level of investments or losses do we expect to stop these subsidiary or close this operations down, if you can help us understand. Madhur Rathi, your question was that, quarter on quarter, the V-Shapes business, you would like to understand what is exactly going, and when exactly you feel the management would take a decision on the V-Shapes business. Is that right? Yeah, Madhur. Ar e you audible? Yes, yes, sir. Yeah. Yeah. Yeah, sure. So, we will move on to the next participant, Keval Shah. Keval, you can. No, so do you want to answer this question, or are we just waiting for a confirmation? What is it exactly? No, we can answer the question because he still raised his hand. No. Madhur, I think we've been very clear that, so far we are more of an execution issue. There's no demand issue, and the scope of this business is extremely large. If we need to keep investing in development, from my own perspective, I'm happy. The more difficult this is, the bigger our moat is if anyone else wants to have, obviously, we have a patent moat. But in terms of the actual practical copying ability, it becomes more difficult. Normally, it may seem counterintuitive to most people, but we like business which are very difficult to develop, rather than easy stuff we can get in, and then there can be like four competitors in it in no time, and it's a me-too solution. The demand for this product is there. Our execution capability leaves a lot to be desired, but things are improving. I know that it's not showing up in the numbers, but in terms of where we should be or where we were versus where we should be, we are definitely down that road and improving on a year-to-year, quarter-to-quarter basis. There is progress happening for sure. We are well aware of the sort of return on investment and the rest of the aspect. But like I said, right now, we believe that it's still going to be very lucrative investment for us. No. Mr. Kabra, if it is really such a great business, then it should show in the numbers, because, I mean, there has to be some end game. I mean, okay, that this is the duration within which if it does not turn around, that we will think about divesting or shutting down, or it is like a government company that no matter how much loss is there, it will just keep on going on and on. No, Madhur, I think you're thinking of the wrong analogies out here. I think that, like I said in previous calls, to me, someone like TCS or Infosys has run their business poorly because they missed the SaaS opportunity. They've not developed a product software like SAP or Oracle or something, or even SOLIDWORKS or any of these other types of things. They missed the AI opportunity, and they missed other things. Now, in Control Print, we are taking a conscious decision that we want to invest. We are looking at long-term technology investments, and we want to have IP protected products. I'm just giving something, suppose there's Shaily Engineering or something with their injectable pen or something. I don't know if they developed overnight. Or if I look at Wockhardt, for example, the same situation happened where they spent years on new chemical entity development, and it took a long time. Of course, we are not doing things at that scale, I have to say. But we are following a very specific sort of thought process where we want to get products which have a high level of IP and a certain patent moat around them. And the wonderful companies like Cosmo, Polyplex or Max Speciality Films, Toppan now, in this type of packaging business also, or Pakson. But those guys have a different type of USP where it is about a certain type of manufacturing, and they are able to scale it up, and they can make those relatively low margin cyclical type businesses work. That is all credit to them. But that is not what our core identity is. Do you understand what I am saying? We have got a business which is mature, which is generating cash, and which we are running very extremely well. We want to build three more businesses. One is, of course, an international aspect of our business. One is the track and trace for the QRiousCodes business. And the third is the packaging business. And we are willing to invest in these businesses and create a sustainable long-term, high margin or a high return on capital employed type of business as a result. So that is the way we look at it. We do not look at it as we are wasting money or we are doing something. The question is that, is there a technology that is there? Is that technology going to have a big return? Today, by some logic, why should people have invested in the cloud when Amazon or Microsoft was doing it? I think the way the American investors thought about it was very different. Today, people are investing in AI. From whatever I can see, there is Anthropic and Claude and whatever these other companies are, OpenAI or whatever. I do not even know anything. But they are all burning money left, right and center. But obviously there is a certain thought that they have, that in the end they are going to create a long-term franchise or something like that. Even Fac ebook was burning money for years and years and years before they became profitable. But they were thinking with a different type of viewpoint, that the first thing was to create a business which had a strong patent moat, and obviously there was a network effect. So I am trying to say, there are different thoughts everywhere. And if you are looking at a technology investment, I have to think differently. That is the way I look at it. I look very differently in the coding and marking business, which is also a technology business, but it is mature and we are seeing the results from that type of business, and I have the option to create two or three businesses which are going to be bigger and maybe give better returns than this business. And if it is going to take a bit of time and effort, it is going to be there even in that track and trace because we have invested more than INR 100 crore already so far over the last six years. It is just that you do not see it because that is part of the— CP —Control Print standalone. That's all it is. But if someone says that did we do a wrong decision, I'll say no. It's going to have its payoff. And the product we're trying to develop is differentiated. So I'm taking a little bit of time for this answer because I think the same thing might happen to some other participants. And I want to be very clear again that this is a technology development process. It's a bit more difficult in terms of timelines, in terms of optimization, in terms of doing pilots, in terms of many other factors. But at the end, if you are successful, you're going to create something which is going to have an outsized long-term moat, which can generate a fairly good value for shareholders. I hope that answers that question. Thank you. Now, our next participant is Mr. Keval Shah. Keval, you can go ahead please. Hello. Yeah. Thank you for the opportunity. So sir, if I look at, say, the losses coming from subsidiaries on the PBT level, for the March quarter it was around INR 12 crore, June quarter around INR 8 crore, and September this quarter it was around INR 5 crore. So this reduction in losses from subsidiaries, is it like a structural thing or still there can be lumpiness and maybe next quarter it can further increase? So just wanted some more detail on this. Yeah. So fundamentally, we believe that the trend is in the correct direction. But of course, quarter to quarter there will be variation. Sometimes, especially in smaller businesses, when we book a couple of big sales or certain other things, it bumps it up and takes it down. But yeah, the overall trend is to constantly reduce those. Or improve the business, improve the sales and improve the business. So it's in the right direction. But of course, from a quarter- to- quarter, even a half year to half year, the basis, there will be some variations for sure, or positive or negative. Thank you, Keval. We will take the next question from Mr. Saket Kapoor. Saket, you can go ahead please. Namaskar, Shiva sir. Namaskar, Jaideepji. Hope I am audible. Namaste. Sir, Jaideepji, in your opening remarks, you were alluding to some new business assignment and also something about the consumable part which will happen, say, in the latter half of the year. So can you elaborate further on your opening remark, firstly on our main coding and marking business? Saketji, like I said. What I said is that we continue to do a lot of development in our consumable things as well as the printers. We develop new solutions for our customers, and they are actually very high-value propositions. We are very upbeat about that. And that should bring good results for the company. We can't openly say about what exactly we are doing, but we are definitely doing some innovations in whatever products we offer to the customers. Yeah. And in the coding and marking business, when we do those types of things it gives us. An edge. Yeah, it gives us more operating leverage, relatively speaking. Yeah. Saket. Yes, sir. Actually, there was a background noise, so I just muted myself. Sir, if we take the EBITDA margin trajectory, sir, what should be that sustainable number? Now with the contribution and the operating leverage to kick in going ahead, how should our core business going to perform for, say, how does the outlook for H2 look currently? Secondly, sir, as the earlier participant also mentioned about the way forward for our contribution from the foreign subsidiaries, if you could just elaborate to us what kind of business and environment is currently shaping up, and what is our preparations for improving, firstly, lowering the losses and then improving the performance of our investments which we have made in the foreign subsidiaries. Just a ballpark thought process would suffice. Third question also, if you allow, sir, I may ask. If I just can take one question at a time, because I will forget your— Please. —before you come to the next question. Yeah. Your first question, we normally target in our core coding and marking business a 60% gross profitability. This is including direct expenses like warranty, wastage, royalty and stuff. It does not include R&D and certain other expenses. Yeah. It is our own definition of what we believe is a gross profit margin number. We target about 60% gross profit and about 30% EBIT. Markprint is of only interest in all this other stuff, it comes to the same thing. That is in the core coding and marking business only. Then, of course, there are investments that we make in other developments and opportunities and other types of stuff, and that reduces maybe the EBIT margin a bit. The depreciation, I do not think it is very major, [Kartik], but I am not sure. Three and a half percent. Yeah. So that's sort of a rough target for our core businesses, and that's also target what we would have for our future businesses. Good group for investors. Yeah. So as far as the second half goes, because I think the first quarter was a little bit off, I think it was mainly because of the Iran fiasco and all of that. It's still there. Nobody can predict because these things are still going up and down. It's not a closed issue. But I think, assuming there's no downward surprises, I think that we should be able to maintain a good performance. Like I said, the coding business itself is steady. And we're expecting that some of the QRiousCodes pilots are coming to a conclusion. And hopefully, either you have some positive news, some negative news, but it'll be one way or the other, it'll be concluded, and we'll be able to have an idea of what's happening out there. And on the V-Shapes business, the development is progressing. I don't think we're going to see major numbers between now and Q4 for V-Shapes, in the end of this year. But in terms of the development of our platform, and the gaps that were there, we're addressing those gaps pretty steadily. The international business is developing steadily, and I think we've got the right type of structure in place for that, which can hopefully scale up in the next financial year. Thank you. Now we'll take next question from Mr. Praneet Bommisetti. You can go ahead, please. Yeah. Hi, sir. Thank you for the opportunity. Yeah. First, I'm fairly new to the company, so I'm going to ask a few basic questions. Don't mind me. Yeah. I wanted to understand, since the inception for Control Print, what exactly happened that got, built the company today in terms of technology and industry? Let's say if you were to segment it into two decades or the last two decades, what exactly happened and how did we start? What changed the industry that we are here today? Could you just give a broad sense on what happened and what do you think is going to happen in terms of industry and the company? Mr. Praneet, you asked a very wide and open question, but I will just try to summarize. See, we started off in 1991. We are into the discrete coding and marking segment. When we say coding and marking segment, we do the variable form of printing, which is the date code, the batch code, the price, the QR, et cetera. Till date, we have got two manufacturing facilities in India. We have got 12 offices in India. We have got a branch in Sri Lanka. We have got subsidiaries in Netherlands, Italy, the U.K., as well as in the U.A.E.. In the domestic market of coding and marking, we are in the oligopoly. So we, along with the other three players, we dominate about 80% of the domestic coding and marking. Our business is basically sale of printers, sale of consumables, providing spares, and also engaging in after-sales annual maintenance services. If that answers the question in a nutshell, does it help you or you want? Yes, sir. Got it. I will just ask deeper questions. Coming to the international subsidiaries, could you explain the idea on why the management chose to go that way? Was it only technology or was it the demand also? That Indian demand has been glittering. That is the reason we had to go out. No. I think there are three very different, or four very different specific lines of business here. Just like the same way coding and marking is a specific niche. Like I said, there is one area where we started setting up international operations. There is a CPL MA in Sri Lanka. That was a bit of a fiasco because Sri Lanka had its own issues. But now it is profitable and it is working well. And one, two others also. We are doing well in our international business. We have tried to get the right structure in place so that we can scale it up and leverage the Control Print knowledge and base that we have here. That is one part of it. That is the most straightforward part. That is an extension of our coding and marking business. But not a broad-based targeting, like what we do in Control Print in India, where we are there everywhere for everything. But much more specific applications, specific opportunities or industry where we have a genuine technology edge compared to our competition, and therefore we are giving outsize value. Otherwise, to be honest, they would prefer the large local supplier in most cases. And we are not a price competitor. The second part of the business, which is the QRiousCodes, is the track and trace. It is a more for software logistics type of a business. And that is something which we acquired about five or six years ago. We took on a team. We did not buy the business, we bought the assets of, to say— The people. —and the people. Yeah, the main assets were the people. And, yeah, we have been working on that since about six years and really sort of doing a more integrated development between that team, our own printing team, and some stuff that we have taken from Markprint. And some camera and development work, which this team itself has done. So it is a combination of various things, as an integrated solution to the customer. And like I said, I think we have got some specialties out there, which we are not able to discuss as of right now. We have got a couple of pilots going on. We are seeing what the outcome is of that at the end of the day. And, yeah, so that is a sort of separate business. Definitely pharmaceutical is the main target area there because regulatory compliance there. But pretty much anyone who needs traceability through their supply chain or anti-counterfeiting solutions, other types of intelligence that they want, or their logistic solutions could be a customer of ours. The third business, which is V-Shapes, is a specific packaging solution. Again, Markprint and V-Shapes and Codeology were all technology acquisitions. V-Shapes was a certain set of patents we are buying around a packaging concept, a packaging machine concept for a single snap-then-squeeze monodose. It is an evolution of the Mitsubishi packaging, Dispen Pak, which is available in Japan, and with some significant benefits. Like I said, we have a patent moat. The only thing is that the actual, you can say, the actual performance of the machine and the cost element needs to be improved further, and that is what we are working on right now. That is taking more time than what we expected because we have understood a lot of risk issues, a lot of replacement of the team people out there, and so on. But all three acquisitions are fundamentally, in Europe, technology acquisitions. EMEA, which is our own subsidiary, is fundamentally a geographical expansion. Sri Lanka has been around for a long time, and that was the first geographical expansion that Control Print did. So that sort of covers, I think, pretty much all the subsidiaries and everything. Yes, it does. Yes, I think, so you get an idea. Yes, they were basically technology acquisitions, but at least especially for the packaging business, we intend to be a global player. For even the QRiousCodes business, we will be exploring international opportunities once we get these pilots and everything, if we see how successful we are out here with that call. Again, I want to be very clear. We have a ring of patents in that business also. So even that is a sort of protected business, so say, with our IP layer that we have created around it. Otherwise, we may or may not have been that interested in that specific opportunity. Thank you. We will take the next question from Mr. Samarth Singh. Samarth, you can go ahead. Yeah, good afternoon. Thanks for the opportunity. Shiva, just on V-Shapes, I think last time you had mentioned that we are working on, I think, three aspects, three or four aspects. One was on machine reliability, the other was getting the raw material costs down. The third one was just bringing down the costs in the Italian subsidiary and sort of moving that to strengthening the sales team. Then finally, working on sales growth via co-packing and laminate sales pipeline. Could you— Absolutely. —if you could just get into more details on all these aspects and what the progress has been, that would be great. Absolutely. The first thing I am going to start about what we have done. If I look at V-Shapes originally, we have got about our cost base is down by about 25% from what it was originally out there, which is why some of the losses have been reducing. We have replaced. I think from the original people that were there, I think anywhere between 65% to maybe 70% of the staff is not there. We have replaced them with better people. That was the first thing which we understood, that it is not like the people were not there. There are some really smart people there, but there are also a lot of people who are just not at a Control Print level. Let us put it that way. Either in attitude or just in aptitude. A lot of people were replaced. It's a bit difficult in Italy, so it was a bit of a lengthy process because everyone's contracts have to be bought out if they don't resign by themselves and they don't find something by themselves. Took us some time to identify and that whole thing. We have brought in new people. Almost everyone's on contract, so we have a lot more flexibility. We use a lot more outside consultants now, rather than trying to do everything in-house. I think there's been some fundamental structural changes where the average productivity per employee and the quality of the employees improved significantly. Like I said, a lot of the excess has been taken out, and the sales team has been boosted, which was zero people, has three pretty good people right now. That is the fundamental sort of change in terms of the management, the structure, and the other stuff. There's still a lot of stuff to be desired. They're still not on our SAP. They still have different types of. They're slower in many ways, and not as the quality control and structure and stuff is being built up the way it should be. These are a big project because to go and implement our SAP, there's a task. We don't know how to do it without stopping everything else for three or four months. Right now we don't have that type of option. Some stuff that needs to be changed, but a certain amount of improvement that's been done, which is there. The second aspect is, you were talking about the machine specifically. Yeah, a lot of issues in the machines have been identified. I think a lot of them are just stuff where changes happened and they've released them without really improving upon it. A lot of stuff is very basic, ensuring that the drawings are absolutely perfect with the machines that are being built. We've got some specific analysis of where we are finding breakdowns in the machine, or inconsistencies, especially which affect the end customer. That's our priority. That's where we've been working upon in terms of fixing it. We've come up with a bunch of designs in terms of fixes. Now we're trying to retrofit those fixes. Then we have a second project. When we're doing the retrofit, we'll find out probably by the end of this year, not before that, and maybe the actual test will happen in January, whether the retrofits are completely successful. But we expect to improve, get to a 70%-80% level of what we should be. Maybe we're like 30% right now. The third thing that we've done is, we are also, of course, developing that when we take the next set of machines that we have to sell, we have more flexibility because they're also on a retrofit, so we can make some adjustments in terms of the design of the machine itself without restarting the machine from scratch. That's a project that's going on. Our target is to finish that in January or February, so we have a blueprint for the next sets of machines that we would make. The whole way we develop it is changed, like everything is modeled first, we're checking it all on the software. Everything is in a different way. Then only, when we see it on the software, we see how it works in SOLIDWORKS or whatever these guys use, then only we move to the next level and so on. That covers the machine developments. Then coming to the materials, I'm not sure how many of you are aware, we had an Unnati project in Guwahati. But it's a bit of in Assam. It's been a little bit of a fiasco because they claim that the incentive has run out. So the program has not been stopped, but it's been suspended, and we're a little bit in limbo. Now, we have ordered some machines, and they are going to be ready for commissioning or testing soon. So we have to take delivery of them. So right now, in fact, right after this call, I'm going to the factory, and I'm also going here. We've got two different locations that we've identified where inward temporary manufacturing's set up. Hopefully that should reduce the cost of the materials, but also give us a lot more consistency and control over the manufacturing. So that was the third point. There's a fourth question you also had. Please remind me on this one. Increase in sales. How to increase sales? Yeah. The sales part is a bit different, in that we have some good projects. We just need to streamline the first other parts to be able to really step on the gas. Like I said, I'm not that type of person or we're not that type of company that would really focus on. We've got limited projects that we're doing. We will not go out and bombard the market and take on a lot of projects until we feel that we can scale up without having a lot of issues. Otherwise, we're going to multiply the issues, because we don't have that level of service and team, this thing, and these machines are going all over the place. So it's a little bit of an issue. The last one, co-packing. Co-packing? Yeah. The co-packing business is going well. That's not a problem. I think that's definitely progressing. We've got regular orders for that. Samarth, we'll take next question from Mr. Jayesh Gandhi. You can go ahead, please. Am I audible? Yeah, you are. Okay. My question is relating to track and trace. While I am going through your presentation, it says that this segment is expected to gain strong momentum. Can you just explain in a little detail how are we positioning ourself here for next two, three years? What can be the size of opportunity here, and what will be our market share? One specifically is there any deadline for pharmaceuticals also to be included in this from government? Should I answer this question or is there anything else left to that? Sorry? Is there anything that you want to add or? No, that is it. This is the only question I. Okay. Now continuing with the regulatory part. The government had mandated 300 brands in India to implement the full track and trace. Okay. 300 brands have started, of which of course, we are servicing some. Then they have come out with a mandate, I think it is sometime in 2027, it will be August or it will be September, but I am not sure, where they have to implement on the top 1,000 brands of India. There is a third mandate, which is all anti-infectives, which would cover like your antibiotics, antivirals, all those other types of stuff, vaccines, and any type of medicine which has psychotropic or narcotic-type properties, would also come under these regulations. I think the psychotropics and narcotics is also going to happen in 2027, and the anti-infectives, antibiotics, vaccines, and stuff will happen in 2028. I am not sure of the dates exactly, so take it with a pinch of salt. But 2027, 2028 will be two big deadlines, because the number of SKUs and brands coming under this purview of the government will increase quite substantially in scope of beyond the existing 300 brands. So what is happening is there has been a change in thinking of a lot of large customers, where they feel that rather than focusing on putting on three lines, which are in the 300 brands and doing it, they feel that now the government is increasing the scope of it constantly. So if I have 20 manufacturing lines and anyways 10, 11 are covered, they are just implemented across the board, because slowly or the other, it is going to come across every single SKU, is what their belief is, and it does not make sense to go for differentiate solutions. Now, the second thing is we have obviously been working on a specific implementation of the track and trace, combining some technologies we take from Markprint, developing upon that now own digital printers manufactured here. Combining that with some pretty advanced software from our track and trace team, the QRiousCodes team that we bought out. We have been working on this six years now, and we have been doing some pilots for about a year and something, like I said, with two top 10 or top five Indian customers. Now we are coming to the end game of those pilots, and we are going to get a feedback of how exactly the field performance is. So we are targeting a certain percentage rate. We're going to see what we achieve in reality and where the gaps, if any, are, or is our solution ready to go, because obviously, there's been many iterations being done in the meanwhile. We are waiting for this thing to happen. We believe that there will be a significant anti-counterfeiting, anti-duplication, several other benefits to our solution, in addition to obviously meeting all the government norms. There are other types of tertiary benefits that we provide. I can't give too much beyond this because we are under NDA with the companies we are working with, and the project is still in the pilot stage or the development stage. One way or the other, if it's successful, it's unsuccessful, I can then request whether I can disclose this, and then I can decide whether I can talk about it in a call or not, because till then, we are restricted. We can't discuss this. I hope you understand we can't discuss any specifics. Yeah, I got it, sir. Yeah. Sir, I just wanted to understand what can be an opportunity size here in, maybe say 2028 or 2029. Is it going to be larger than INR 200 crore, INR 300 crore for a company? Right now, the market is about INR 600 something crore, INR 600 crore or INR 700 crore. But like I said, out of which ACG Inspection, Conlot— Yeah. —and then there's ProPhase. There's a whole bunch, including us. We also do like a INR 20 odd crore business even today. So this is a market between INR 600 crore, max INR 700 crore, something right now today. But yeah, it's growing. Like I said, see, this is a government legislated type of business. If the government doesn't change the rules, the market might not grow that fast. If the government is implementing on the top 1,000, because it's already been gazetted. Okay, so what I'm talking about, and these new SKUs coming has been gazetted. Obviously, that's going to increase the market size significantly. Then if people want to go for a solution like ours, it's more expensive because it has more features and more things, and that will increase the market size. So it depends on what you want to do. If you want to do plain vanilla, it's a INR 600 crore market. On the top 300 brands plus certain other export and other SKUs which come in and so on. It's difficult for me to estimate what will happen. It goes to 1,000 brands and all the other SKUs, but I would say that it would, yeah, increase the size of the market for sure. Thank you. Now we'll take next question from Mr. Parag Hindew. Parag, you can go ahead, please. Hello, sir. Good afternoon. Sir, I had two questions. One question was with respect to the latest FSSAI issues which are going on for the food industry. What I understand, that the unorganized guys have to also give packaging dates and other things. Are we seeing any traction because of the FSSAI mandate, that the food industry calls for more track and trace or maybe your coding business, which is there. Do they require help from companies like Control Print? Number one is that. Number two question. Can I answer that question? Yeah. First, we are not seeing anything much in the market. I do not think this is gazetted or 100% done as yet, from what I know, because normally we check if there is a proposal, but what matters, has it come in a gazette, which means, and also regulation. That is sort of the specific aspect that is there. The second thing is, in general, and I am not saying it is 100%, but I would say like 99.99% Control Print is focused on the largest customers who have the most complex needs, and the highest speed production lines, and the highest productivity. We are like, even between Videojet, Domino, Markem-Imaje, and us, we are an A group player. We do not normally deal with smaller customers. We are like, let them start, have issues, and when their business grows, they will graduate to us, sort of approach. Okay. We will not see that much of a pickup this way, but so far, from what my knowledge is, I have not seen it on another gazette. We normally track this type of thing. Just keeping you posted on that. Now, you had another question, please. Yeah. With respect to the international subsidiaries, the losses, which were there in FY 2020, was in the range of INR 20 crore, and last year it was INR 36 crore. This year around, what is the broader losses one could expect from international investments or the subsidiaries? But FY 2020, we didn't have any international subsidiaries. No. FY 2025, there was INR 20 crore kind of a loss, and last year, 2025, 2026, there was INR 36 crore kind of a loss on the international business. Yeah, like I said, we are looking more at a curve which is trending downwards. Obviously, the idea is not to be in a loss. The idea is to be in a profit. But like I said, right now we're still going through an investment phase, a heavy investment phase in the V-Shapes, the packaging business. We are very comfortable because we feel that this is a technology platform which will give us an outsized return for the next two decades, when we get it exactly to that level we require. But in the meantime, of course, there's nothing preventing us from growing our sales, improving our margins, and doing other stuff. Like I said, we are doing some stuff. We have got some equipment where we will be manufacturing our materials. We are working on the recyclable pack. We are working on making the existing machines low maintenance and higher reliability. Even the customers who have these machines, they are getting more packs out and more consistently, and so on and so on. We are doing multiple things here. We are also working on longer term projects where we need high-speed machines and really a lower cost of materials and stuff like that. I think, like I said, the loss is trending down. It is also like we have reduced some structural costs. We expect that if things are positive, we expect that to keep coming down because the sales are quite frankly low and, as sales increases, it will directly feed to the bottom line out there. We do not need to add people or cost to service the sales that we are getting. Yeah. Thank you. We will take next question from Mr. Mox Sanka. I request all the participants to limit the question to one participant. Mox, you can go ahead, please. Hello. Could you please provide a breakup of the losses we are doing in our international subsidiaries, like in Markprint, Codeology, and CP Italy, segment-wise? Segment-wise, or you want to know the company-wise? Yeah. Sorry, company-wise. See, normally, we do not disclose company-wise results. But then, in case you would like further information, you are free to write an email to me, or you can come and visit my office in Mumbai. We can share those results with you. But as a trend, it is clear that we are on a declining spree in case of the losses. I can just tell you one thing, that Markprint is a company which gives profit year- on- year. So that's probably the least of the worries for us. Middle East operations, which is a CP MEA operations, that has just recently started January 2025, and it's obviously going to pick up, and we will definitely have a breakeven this year. Regarding the Codeology and V-Shapes business, Shiva has already mentioned twice or thrice in the call that. We are closely monitoring the activities. We are optimizing the costs. And as it is evident from the results, the losses are on a declining spree as of now. Thank you. Yeah. Now we will take the final question from Mr. Aryan Kadam. Aryan, you can go ahead. Hi, sir. I just wanted to know how you were planning to minimize the losses on your subsidiaries, especially Markprint and the other subsidiaries, Codeology. Mr. Aryan, I just mentioned Markprint, in essence, is not a loss-making company as such. Year on year, it has been giving a healthy profit, not a huge profit as compared to Control Print Limited results. Markprint is the least of the worries. It is a profitable company, so that is not an issue. The second subsidiary, which we started, which is a very recent start, which is in January 2025, the Middle Eastern operations. We are having a good pipeline of the orders which will be executed. Hopefully, I am very positive that by the year-end, we will definitely be a profitable entity in the Middle East as well. Shiva has actually mentioned in the call about the V-Shapes and the Codeology operations. We are doing a concentrated exercise of focusing on the way the processes are run, the way the operations are run. We are taking a very hard, close look at the operating expenses, including the personnel costs. We are also strategizing on the marketing and the sales front. Hopefully, we would like to bring a spurt in the revenue, which is basically top line. Also, look at optimizing the costs. We are seeing the results as of now. We have already down-scaled the number of people in the Italian and U.K. operations, so the team size has come low. In the next two quarters, the personnel cost would definitely be lower. The real thing is that, if we have good output of sales, obviously the top end improves, the bottom line also improves. We are taking one cautious step at a time. Hopefully, we should be on a better footing as compared to the H1 in the H2 results. Since that was the last question, sir, would you like to give any closing comments? Yeah. Thank you so much. On behalf of Control Print, I would like to thank all of you for taking out the time and joining us for the call. We hope to continue our best. We will put our best foot forward, and we hope to give better results in the H2. Thanks a lot. Shiva also would give his closing remarks. Absolutely. Like I said, this is a technology development platform that we have undertaken. It is a conscious long-term decision, and we are confident of our path. If I felt we were down a losing battle, I would definitely think twice, but we are doing well. I really hope that I am quite confident that we should maintain our momentum in Q3 and Q4, and hopefully end this year well. Thank you everyone for your time, and thank you for your support. Thank you to the management team for your valuable time, and thank you to all the participants for joining on the call. This brings us to the end of today's conference call. You may all disconnect now. Thank you.