Ladies and gentlemen, good day and welcome to Vintage Coffee and Beverages Q2 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touch-tone telephone. Thank you. Over to you, Mr. Nandu. Thank you and good evening, everyone. On behalf of Nuvama Wealth, I welcome you all to today's call. I thank the management of Vintage Coffee and Beverages Limited for the opportunity to hold their Q2 FY 2027 earnings call. From the management team, we have with us today Mr. Balakrishna Tati, the Chairman and MD, Mr. Sai Teja Tati, Executive Director, Mr. Kranthi Kumar Yarkali, the CFO, and Mr. Jawahar Conjeevaram, the Head of Sales and Marketing. I will now hand over the call to Mr. Balakrishna Tati to take us through the quarter. Thank you, and over to you, sir. Thank you. Good evening, everyone. Welcome to Q2 FY 2027 earnings conference call of Vintage Coffee and Beverages Limited. With me, Sai Teja, ED, and Jawahar, Head of Sales and Marketing, Kranthi Kumar, CFO is here. First of all, I would like to thank all our investors, analysts, and stakeholders for joining us today for their continued trust and support. It gives me a great pleasure to express that another strong quarter with the company continuing to deliver healthy revenue growth supported by increasing operating scale and sustained business momentum. Just to begin with a brief overview of our financial performance for the quarter two and the first half of FY 2027. Financial performance Q2 FY 2027 was another very strong quarter for the company, with the revenue from operations increasing by 64.4% year-on-year and 38.5% sequentially to INR 222.97 crore compared to INR 135.61 crore in Q2 FY 2026. Our gross margin stood at 27.6%, reflecting an improvement of 293 basis points over the corresponding quarter last year, although it moderated by 133 basis points on a sequential basis. EBITDA increased by 88.8% year-on-year and 33.5% quarter-on-quarter to INR 42.16 crore compared to INR 22.33 crore in Q2 FY 2026. EBITDA margins improved by 244 basis points year-on-year to 18.9%, demonstrating improving operating profitability. Profit after tax grew by 57.3% year-on-year and 34.9% sequentially to INR 28.06 crore compared to INR 17.83 crore in the corresponding quarter last year. PAT margin stood at 12.6%. The effective tax rate for the quarter was 26.1%. H1 FY 2027 performance. Looking at the first half of FY 2027, the company has maintained its strong growth trajectory. Revenue from operations increased by 61.9% year-on-year to INR 383.97 crore. Gross margin improved by 266 basis points to 28.1%, while EBITDA grew by 82.7% to INR 73.74 crore. EBITDA margin expanded by 219 basis points to 19.2%. Profit after tax increased by 52.3% to INR 48.85 crore compared to INR 32.07 crore in H1 FY 2026. PAT margin stood at 12.7%. The effective tax rate for the first half was 25.8% compared to 9.3% in the corresponding period last year. Overall, the first half performance shows good growth, which indicates the company's business moving with sustainability and improved gross profitability and strong EBITDA expansion. Business and strategic development. On the operational front, we continue to focus on optimizing our expanded manufacturing facility as well as by improving operational efficiency. As communicated earlier, the company has enhanced its installed production capacity to 11,000 metric tons per annum following the commissioning of an additional 4,500 metric tons of capacity during end of March 2026. This expanded capacity provides us with a strong manufacturing base to cater to increasing customer requirements and support our future growth ambitions. With respect to our proposed freeze-dried coffee expansion, we are working hard to ensure to complete the 5,500 metric tons of FDC project well within the next year, and all required payments are being made for the major and critical equipment coming from Europe and other countries. Also, I would like to remind you all that once the FDC production is commenced, the total production capacity of the plant increases to 16,500 metric tons per annum from 11,000 metric tons, and it significantly strengthening our position in the instant coffee segment. We also continue to focus operational synergies following amalgamation of our wholly owned subsidiaries, Vintage Coffee Private Limited and Delecto Foods Private Limited with the parent company. The consolidation is likely to support better resource utilization, streamline operations, and create better efficiencies across the business. The company commenced generating positive operating cash flows in FY 2026 and continued this positive momentum, generating INR 51.16 crore during H1 FY 2027, supported by enhanced capacity, sustained profit growth, and improved working capital management. I am also pleased to inform you that the promoter's shares of 1.3 crore, which were pledged with Punjab National Bank as security against the long-term borrowing for setting up the factory, were 50% of the total shares successfully released during Q2. This is a significant positive development, reflecting the company's improved financial position and the promoter's commitment to strengthening shareholder confidence. I also would like to give an outlook of the company and for the coffee industry. Going forward, our focus remains on leveraging the expanded manufacturing capacity, strengthening our customer relationships, improving operational efficiencies, and executing our planned capacity expansion initiatives. We remain committed to disciplined capital allocations, maintaining healthy profitability, and creating sustainable long-term value for our shareholders. Before concluding, I would like to highlight that the comparative financial figures for the corresponding previous year period are not strictly like-for-like, as the amalgamation has been accounted from appointed date of October 1, 2025, whereas the corresponding prior year figures have not been restated. Thank you once again for joining us today and for your continued confidence in Vintage Coffee and Beverages Limited. With that, I would like to open the floor for questions and answers. 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 their touchtone 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 comes from the line of Gaurav Shukla from Finvesters. Please go ahead. Am I audible, sir? Yes, please. Sir, congratulations for very good numbers, and thank you for giving me opportunity to ask question. Sir, my first question is, during Q2 FY 2027, revenue increased significantly. How much of this growth came from volume growth versus higher realization per kilogram? Okay. Mainly the growth is for the not higher growth realization, it is from the volume growth. Volume growth. Yes. Okay. Second question is, what is the actual utilization of 11,000 metric ton spray-dried and agglomerated coffee capacity? Are you maintaining the target of 95% utilization? We are focused to utilize the 100% capacity of the 11,000 metric tons, which we commenced in March 2026, and that continue to producing for a full capacity utilization. With regards to spray and agglomeration, the percentage is almost, I can say, around 55%-45% ratio. 55 to 45 ratio. Okay, sir. This 5,500 metric ton freeze-dried plant progressing as per schedule, sir? How much CapEx has been incurred and how much remains to be spent? Yeah, I just asked my CFO to give, and Mr. Kranthi Kumar Yarkali to ask to give a more detailed report. Yes, sir. CapEx till now we have incurred INR 220 crore. Rest is in the pipeline. In pipeline. Thank you, sir. One question more, sir. You previously indicated that letters of intent have been received for a substantial portion of freeze-dried capacity. How much of this capacity is now covered by firm purchase orders or long-term contracts? We have received almost 100% of that capacity letter of intent from that customer. Okay, sir. Thank you, sir. All the best for future. Congratulations again, sir. Thank you, Shukla. Thank you. The next question comes from the line of Jatin Damania from SVAN Investments. Please go ahead. Good evening, sir. Am I audible? Yes, please. Go ahead. First of all, congratulations, good set of numbers with the new capacity coming in and operating at the rated capacity. Sir, if I want to look at probably FY 2028-2029, because we are already operated at rated capacity and benefit will flow in in 2027, but in terms when we go to 2028, where our FDC will come probably in mid-financial year or the end of the next financial year, how shall one look at the growth prospect for the Vintage Coffee for FY 2028? Okay. Can I go ahead? Yes, sir. Jatin, see, FY 2028-2029, because we are assuming to start the freeze-dried coffee production during FY 2027. So, 2026, sorry, I mean, 2027-2028 basically. So 2028-2029, you will get a full capacity utilization of 5,500 metric tons of freeze-dried coffee in addition to 11,000 metric tons of spray and agglomerate. Which means effectively we will have a 16,500 metric tons of the total capacity that will be under utilization. And for this, as I mentioned that, the growth rate will be almost, I can say that, it will be almost, I can say around 80%-85% of the growth will be there in FY 2028-2029. Okay, sir. Agree on that part because if you look this 5,500 tons of freeze-dried coffee, is it expected- Yes to come on second half of FY 2028 or it will come in the last quarter of FY 2028? Second half of FY 2028. We need to spend another INR 250 crore, right? Because INR 500 crore is the total estimated CapEx for this 5,500 tons. Yeah, INR 550 crore is the total CapEx, out of which you already spent INR 220 crore. Rest is going on. What will be the total CapEx remaining that we will be spending in second half, and how much we will be spending in FY 2028? During this quarter, we will be spending maybe another INR 100 crore. Balance will be that FY 2028 first half. INR 200 crore. That is what I want to say that now since the capacity is coming in second half, probably we will get only benefit of the one quarter in FY 2028. Ideally, one should assume that FY 2028, when you compare with FY 2027, more or less will be a largely a flat year when compared to the profitability, and the growth will come in FY 2029 with FDC coming in. FY 2028, 50% capacity will be utilizing for the second half especially, second half year. FY 2029, full capacity will be utilizing. And sir, on this only INR 550 crore of the CapEx that we are spending in FDC, what sort of asset turnover one should assume and the targeted ROCE on this business only, on FDC? Similar ROCE is there for that whatever the existing plant is there. And the turnover would be, sir, turnover would be in the region of INR 670 crore-INR 710 crore. Okay. 700 odd crores. 1.4 times. Yeah. ROCE will be similar to what our current business is, right? Yes. And sir, Yes. If you want to look from some longer perspective, probably three to five years down the line, probably beyond FY 2030 or FY 2030 onward, how shall one look Vintage as it is? Probably our focus more will be on B2B, or once our FDC comes in, we will be moving to VINCOFE, which is a retail chain. How shall one look at the entire business dynamics? Yes, it is a good question. See, going forward down the line after three years, we have more focus not only on B2B, also we focused on B2C. Taking into consideration, because right now we have only two products with us, spray-dried coffee and agglomerated coffee. Once the freeze-dried coffee is added, then definitely we look into the B2C options because that is going to in a bigger way, and also that is the way actually we are focusing, company is focusing. As of now, that is all from my side. I have no more questions. I will come back in a few. Thank you. All the best, and wish you and your team a happy Diwali and a prosperous New Year. Thank you, Jatin. Thank you. Thank you. The next question comes on the line of Omkar Ghugardare from Shree Investments. Please go ahead. Congrats, sir, on a good set of numbers. My question was regarding the line capacity after 16,500 metric tons. How far we are from that front, and how much CapEx would be needed for that? When can we commence that facility? Omkar, you are talking about the land, is it? Correct. From 16,500, you will be adding, going up to 21,000, right? Last time you mentioned. Yes. Yes. Additional line of 5,500 metric tons. Yes. Correct. Correct. I am talking about that. When can we expect commercialization of that? That could be in FY 2030? Yeah. It will be FY 2030. Yes, you are right. It will be commenced in FY 2030, right? Yes, you are right. FY 2030. Correct. How much CapEx is needed for that, and how much time it will require, like from right now to commencement, to take the land and do the construction and get the facility ready for production? Yeah. What we did is actually we have taken the land. We have acquired a land from Government of Telangana, the TGIIC Food Processing Park for a 22 acres land. That will take care of the entire 11,000 metric tons of freeze-dried coffee plant requirements, out of which most of the equipment we are sourcing now for an additional 5,500 metric tons, which means for the next phase of the 5,500 metric tons, it will be like a brownfield project. We need to bring the freeze-dried plant and install it. I don't think so it will take more than one year's time if everything is good, the building and all in place. I don't think so it will take more than 12 months. Okay. So, it will commence in FY 2029-2030, right? Next to next year. That's right. You're right. Okay. The construction would start from now, or in FY 2028 it would start? Most of the constructions, we are doing it now itself. Okay. In FY 2028-2029, it can be ready, right? That is what you mean. And it can start production from 2029-2030, right? No, I am saying that the building, civil work, and all, most of the civil works will complete by FY 2029. Okay? And by FY 2030, then we will have the line in place, second line in place. Okay. For that, how much CapEx is needed? You will be spending around INR 500 crore-INR 550 crore for the first half, first 5,500. I am asking how much would be needed for the next 5,500? It should be in the region of around INR 350 crore. Okay, INR 350 crore. Yes. It is a brownfield project, the cost will be lesser, right? For production. Yes, you are right. Okay. Do you have any kind of visibility for the Obviously, you will have the visibility, that's why you are targeting to add additional capacity. I mean, how confident are you of utilizing it in full speed or 100% capacity? That's what I am asking. Yeah, Omkar, see, 5,500 metric tons, we have clarity, and we already have some sort of commitment from the customers, especially the countries that are market, like Europe and U.S., and as well as some parts of Russia and Southeast Asia. Some markets still we are not captured. We have been receiving a lot of inquiries for this. Obviously, we have some sort of visibility for an additional 5,500 metric tons. So this you are talking about for the capacity- Second line from 16,000 to Correct, second line of the capacity, right? Yes. Yes, you are right. Correct. For the first capacity, first half of the capacity, you have orders ready for this, or you have the commitment from the buyer? Yes. Yes, we have a commitment from the buyer. Yes, you are right. 5,500 capacity, we already have a commitment from the customers. This is 100% you have received, or some part you have received? That is what I am asking. No, we have received a commitment for 100% of the capacity, but it is up to us that whether we can supply to them 100% or not. But we already got the letter of intent from them for 100% of the planned capacity. Okay. The second question is on the margin front. Right now, I guess you are operating at around 19%. With additional capacities of from 5,500 to 11,000, and from 11,000 to 16,000, and 16,000 to 21,000, how big can margin go up? Because once the fixed cost will remain stable, and then as your revenue increase, there should be good amount of growth in margin. That is why I am asking how much it can go up eventually in the next two, three years, maybe till FY 2030. Yeah. FY 2027 is more or less in the same range. Maybe different benefit will be there. Coming to the FY 2029, once the freeze-dried is coming, that margin is comparatively in higher side. So, it will be 2%-3% is more than the existing things for the FY 2029. So, this is extra 2%-3% will be there once the first half of the capacity is commenced, right? Correct. Right. Correct. What about the second part of the capacity? Will there be any more scope for margins to go up? Another 1%, another 1%, 1.5% will additionally it will increase it. Okay. So collectively, you are talking about with the 21,000 metric ton capacity around at least 4% margin improvement, right? At 100% capacity utilization of 21,000. Yeah, 3%-4%. Yeah, 3%-4%. There is 3%-4% comfortably you will get an additional incremental percentage on this thing, on existing one. Correct. It will add around 3%-4% at 21,000 at 100% capacity. That's correct? That's right. It's 22,000 actually, not 21,000. Oh. No, no, I'm asking about the additional capacity, right? Yes. 16,000- Additional. Yeah, that means 11,000 tons of freeze-dried coffee and 11,000 tons of spray and agglomerate coffee. Total 22,000 metric tons. Correct. Right. Okay. All right. Thank you very much. Welcome. Thank you. The next question comes from the line of Ishan Modi, who is an individual investor. Please go ahead. Yeah, am I audible? Yes, Ishan. Yeah. My question is around the fund raising that we have declared. As far as I know that multiple times we are told that our expansion would be from the debt and internal accruals only. Is there a change in the plan? That is why we are doing fund raising now? Can you repeat your question? Yeah, so I think- Please repeat. Hello? Yeah, go ahead. Yeah. As far as I know that we have declared the equity dilution plan, right? Fund raising. Yeah. My question is that I think in the past management has told that all the expansion will come from the internal accruals only and debt only. Why we have changed our plans to do fund raising now? Okay. I will explain to you. We are planning actually to slightly dilute the equity, but that is subject to if we are not able to. Because I will explain to you that 5,500 metric tons freeze-dried coffee project which is coming up, out of which we have got sanctioned of almost all the foreign currency loans from the European bank. There is a clause that one is a negative pledge clause is there. Therefore, we are finding little difficult to avail the loan facility from the Indian banks. Obviously, we were looking for some sort of small dilution because we do not want to anyway to get stuck here. Fortunately, we are also exploring other options, like in the other institutions and all. If that is come through, then we may not able to go for the dilution. Okay. This current revenue, what was the mix between the large pack and the small pack? Now it is going around 55-45 ratio. All right. 55 is small and 45 is bulk. Okay, got it. One more question that recently from another company we came to notice because of the green coffee price has been corrected, there is a more demand of freeze-dried coffee compared to agglomerated and the spray-dried. Are we seeing any moderation in demand in Q3 and Q4? Because I do not think we have freeze-dried capacity live, right? Can we see any moderation in Q3 and Q4, or are we good? Yeah, because the coffee prices have slightly dropped, and again, it is moving upward. But overall, it will remain same. This is what we have a forecast and predictions. But in any case, since we don't have the freeze-dried coffee facility as of now, we don't see any sort of higher increase in or dropping the prices at this point of time. For our current portfolio, we are good, and we will own 100% capacity utilization in Q3 and Q4 as well, right? Yes, you're right. All right. Any formal guidance for the top line or EBITDA per ton you would like to give for FY 2027? It is actually absolute terms only we are doing it, that will remain same. I think you can see it from the past few couple of quarters, then you will get that. Okay. All right. Therefore, from my side, thank you very much and all the very best for the future quarters. Thank you very much. Thank you. Thank you. Thank you. The next question comes from the line of Deepali Bansal from Ventura Enterprises. Please go ahead. Good evening, everyone. My first question is regarding what was the production and sales number during the quarter, and how is the revenue distributed among domestic and export sales, please? Yeah, the production is that for this quarter two is 2,737 metric tons, and the sales is 2,581 metric tons. Okay. 2,731. And how is the revenue divided among domestic and export sales? Almost 85%-15%. 15% is the domestic and 85% is exports. All right. My next question is regarding chicory, sir. You said there is a crop shortage and we would be getting incremental revenue in chicory this year. How much incremental revenue did we do in chicory due to the crop shortage, and what was the percentage of EBITDA that we generated in this? Since that chicory capacity is at fully utilizing, only that from 5% sales upward is there. Because of the acute shortage of the chicory crop, and obviously the prices have moved upward, so obviously there is an incremental growth of around 4%-5% in sales price. Okay, 4%-5%. That is it, sir. That is it from my end. Thank you. The next question comes from the line of Umesh Gupta from Alpha Optimus PMS. Please go ahead. Yeah. Hi, sir. Many congratulations for fantastic set of results. You have been doing flawless execution for last so many years. Many congratulations to the team. Sir, my question was on some clarification, because you mentioned that strategy going forward is to get into B2C. Just wanted to understand more on that, from which year you are thinking and from or which capacity? Because the current capacity up to 22,000, which includes 11,000 of freeze-dried, I think the objective was to remain B2B, or has it changed, or from what year or from what capacity you are thinking of moving to B2C? I can explain to you. 11,000 now right now spray and agglomerate is 11,000 metric tons and 5,500 metric tons which is going to come in with an FY 2028-2029. What we have planned, actually, our presence will be always there B2C in the form of the e-platform, but going in a bigger way is in FY 2030 only we planned. Okay. But that would mainly come in once you have done this expansion up to 22,000, and this 22,000 mainly be for B2B, right? And incrementally from FY 2030 onwards, you might think of putting additional capacity by keeping B2C in mind. Is that correct? 16,500 metric tons, which is going to come up in FY 2028, FY 2027-28. From this, we are not planning anything B2C. But when we will go for the second phase of the 5,500 meters from freeze-dried coffee, which means that 11,000 tons of freeze-dried coffee and 11,000 tons of spray and agglo, then we will start looking for exploring the option entering into the B2C. This B2C is going. Still- Yeah, B2C is going to be domestic or international? We will explore both options, sir. Okay. Because I mean, I thought the DNA of the organization is more B2B, because going B2C is like a different ballgame in terms of distribution, marketing. If you could elaborate more that, was it always the plan or is it something which you are thinking now that since the capacity is going up and you need to get into B2C? No. It is there in the business plan. Once our cash flow improves and then we stabilize the plants, both the plants, freeze-dried coffee and the spray and agglo. Because right now, whatever the freeze-dried coffee which we plan to set up 5,500 next year, that is already fully tied up. There is no point of exploring the options to going into the B2C. But when we have additional 5,500 metric tons of second FDC line, obviously we thought then we will start looking into building our own brand, either in Indian market, because India is growing very fast. As a matter of fact, you all know that it is 12%-14% growth rate is there in India for the instant soluble coffee. Obviously, then our presence is very, very important. Either we go in a direct B2C or we will go through the franchisee model where we have a good distributor and then distributor will start selling in the market. We will explore these options, sir. But not now. As I mentioned, once the second line come in, then we will start looking into it. Right now, these products are already available in Indian market through the e-platform like Amazon and Blinkit. But we will ask our distributor to strengthen more and focus more on that because most of the Indian local brand owners are buying in bulk from us and doing the branding there. Obviously, the sales are very good. It is necessary for us to be present in Indian market as since a manufacturer. We do not want to go behind others and lag, no. We want to be ahead of our competition. Okay. Thank you. The other question was on realization. Could you tell us how was the realization in Q2 versus Q1? Was it higher in Q2? And what is the trend which you are seeing from a Q3 perspective? It's more or less the same. Little betterment is there in Q2. What is your expectation for Q3? Is it stable, higher, or lower? Stable only. Little bit of improvement is there. Because Improvement in pack mix, yeah, pack mix also little changes will happen. Okay. Incrementally, now that you are operating at 100% capacity, so incremental any growth in volume once this freeze-dried come up, then only, which is something from a Q3 of next year onwards, we should expect volume growth, right? Because right now at around 2,500, 2,700, that would be your maximum production quarterly. You're right. You're right. Q3 onwards, we will expect more sales. Yes, you're right. Sorry, sir, when? Q3 onwards, we will expect more sales because Q3 and Q4, they are the season for the coffee sales, soluble coffee sales. Obviously, Q3, Q4, you will have more sales. Yes. Yeah. Okay. Thank you, sir. Welcome. Thank you. Thank you. The next question comes from the line of Paras Chheda from Purpleone Vertex Ventures LLP. Please go ahead. Yeah. Good evening, sir. Good evening. Thank you for this opportunity and congratulations on a strong set of results. Sir, just one thing. Thank you. Your H1 operating cash flow has been positive INR 51 crore. Do you expect this cash flow from operations to stay positive for the full year? Yes. Positive cash flows are same. Same trend will continue. Same trend will continue. Okay. So the cash flow from operations will stay positive for full year basis also? Yes. Correct. Okay. And sir, on this freeze-dried coffee project, initially I guess it was projected to be commencing production around July 2027 or so. Has that pushed forward a little bit? Yeah, it is more or less August. We are planning August to do start the trial production. If everything goes well, then I think September onwards we will go for the commercial production. Okay. September onwards for the full-fledged commercial production. Basically, second half of next year we will have at least, I mean, full capacity available and whatever utilization we do on that. You are right. What kind of utilization do you expect in the second half of this new capacity? Maybe we have plans around 70% of the installed capacity. Will be, of course, the EBITDA margins on this FDC project versus our current spray-dried, I mean, versus our regular margin? Yes. See, because we are going to have for about five to six months of the production of the freeze-dried coffee, which is coming in FY 2028. So obviously, there will be an improvement in the EBITDA margin because freeze-dried coffee EBITDA is slightly better than the spray and agglo. So obviously, that will be coming in FY 2028, so you will have an incremental EBITDA percentage of margin. Understood, sir. Just on the fundraising bit, sir, just for the sake of clarity, this INR 325 crore has been approved by the board, but from what I understood is that the company has yet to decide whether to go forward with this kind of fundraising, therefore you are exploring various other options as well. That's right. You're right. We are exploring other multiple options. Once that is through, then we may not go for the equity dilution now. Understood, sir. Overall demand environment remains positive? Sorry, I didn't get you. Yeah, demand environment. Demand is good. Yes, demand is good. Demand is good for the freeze-dried coffee. Yes, certainly. That is why we are planning to go with, without any further delays, we are planning to go for second line. We are also, as I mentioned earlier call, we are also making a building structure and civil works and some of the equipment which we are buying that will take care of entire 11,000 metric tons of freeze-dried coffee. Sir, since you mentioned the second phase of 5,500, when do you officially sort of take a final call on moving ahead with this? Because, of course, this will be CapEx and machinery needs to be ordered, et cetera. When is that final decision to be expected? During the first quarter of FY 2028. Okay. The moment broadly this one comes online, the first phase, you will more or less- Yes take a call on the second phase, especially if it will take about 12 months or being a brownfield project to get it on stream. Yes. Somewhere like September of 2029, potentially one could Sorry, September of 2028 is, could assume this second phase could become operational from that time. April 2029 is that definitely the commercial operation will start for the phase 2. Okay. In FY 2029 is the full number will come. FY 2030 will be the full. Understood. Fair enough, sir. I think that's about it. Thank you so much, sir. You are welcome, Chheda. Thank you. The next question comes from the line of Tanmay, who is an individual investor. Please go ahead. Hello, sir. Am I audible? Yes, please go ahead. Yeah. By the way, congratulations on the good set of results. Sir, I just wanted to confirm or understand on your other expenses part. Your other expenses have increased from INR 7 crore to INR 14 crore in this quarter. Just wanted to understand what is driving those expenses? Expense is normally in line only. A little bit of selling expenses is increased because of the ocean freight is increased. Same thing is up and to the customers. Okay. Are we expecting these expenses to sustain, or are we expecting these expenses to dwindle down going forward? It's expected for it to come down, we see, but we have to see that political situations. Okay. Also, I have second question. I want to understand where your coffee inputs come from. Where are you basically sourcing your beans from, and are you expecting any increase in input cost on that front? Yeah. We are mainly sourcing from India, around, I can say around 65%-70% from India, and the rest around 30%, 30%-35% from Uganda and Indonesia. Okay. Are we expecting any increase in these input costs because of the weather conditions or the current supply, the current water shortage situation? Are we expecting any kind of increase in these costs? Because of the supply in India, it goes to Sorry. Really sorry. Just one more question following up with that. If yes, are we expecting to pass these costs forward to the customers? Okay. See, as per the forecast, the coffee beans, in Indian coffee beans and all, more or less flat as compared to the last year. But with regard to Vietnam, it appears to be a slightly improvement, increase in crop. But other countries, I think if you see the reports which says that Uganda is around 5%-6% growth is there, and Brazil more or less same compared to the previous year. But if you take everything into the average, comes around to the same what the levels today it is. So if that levels continues, I do not think so that there will be any incremental this thing in a coffee bean. But maybe it remains same or slightly it will reduce it. Okay, got it. Thank you. Yeah. Thank you. Thank you. The next question comes from the line of Janav Shah, who is an individual investor. Please go ahead. Hey, sir. Can you hear me? Yes, please. Go ahead, Mr. Shah. Yeah. Hi. In the last AGM, you said the fundraising was done for the 3,500 metric ton per annum for the agglomerated coffee. Is it still on? Is it still on track? And one more packaging line that you are going to add. Any update regarding that? Yes. The promoter is contributing to warrant for this agglomeration unit and the packing line. That is on. Next 10-15 days, that 25% contribution also will be coming. With that, we will be starting the activities. Okay. How has been the growth in the roasted and ground coffee, and how much volume have been, we have been, sir, done in this quarter? We have received an order for a couple of containers, and we started exporting it. This, we will come to know exactly the entire volumes and everything maybe next to another two months' time. It will be a sizable order subject to if everything goes well. Okay. Regarding the 3,500 metric ton, which will the confirmation would come, like how much time it would take them to commercialize? It would be 22,000 plus 3,500 metric ton, the total capacity of the firm, right? No, 3,500 metric ton is not an additional capacity which is coming in. I think there is some misunderstanding. 3,500 metric tons of the existing capacity of 11,300 and agglo. We have a limitation in agglomeration plant, so we are keeping one more agglomeration plant where we can increase the agglomeration production in between the 11,000 metric tons, reducing slightly the spray-dried because agglomeration fetches a higher margin. So we want to focus more on agglomeration that sells in a consumer pack. That's the reason we are adding one more line of agglomeration so that we can reduce slightly spray-dried and focus on agglomeration. But with regards to the capacity of 11,000 metric tons, will remain same. With regards to the freeze-dried coffee, as I mentioned, 5,500 is coming up now. Next year it will start. Another 5,500 metric tons will follow after that. I am able to place an order for the next year, middle of the next year, I can able to place an order for one more line that will be a brownfield project. Okay. But is there any plan to increase the capacity in the spray and agglomerated? Because since we are working on like, say, 95% capacity utilization. Yes, Mr. Shah, you are right, absolutely. Because if the existing customers increases their sales, then obviously we need to focus on slightly increasing our capacities, which we will definitely on cards. We will definitely look into that, but for that is the internal things which we can do it ourself only. Okay. And in this quarter, like in the first half, how many new customers have been added in the spray and agglomerated? Mr. Jawahar will give an answer for that. Good evening, everybody. We have added four to five new customers for spray line. How many are in the pipeline? We are still currently talking with them and we hope we will be converting them till the end of the year? Yes, this is a continuous process. We follow the funnel system, so we expect as they go by, we will be adding new customers. Okay, great. Has there been delayed in the FDC project? Because I thought this would come live from March 2027. Now you are saying from the second half of the FY 2028. So like six months delay. Is there any problem going on? Is there something got stuck in between? Yes. There is no delay as a matter of fact. We have said that it will be in June, July FY 2028. So June, July, that is now shifted to September. The reason is that because we are availing the loan from European bank and our FDC plant is fully compliant with ESG now. So obviously it is taking slight time. Actually, it took a little more time because to comply the ESG formalities and everything. So that is the reason one or two months there is a delay. Otherwise, but we have already day one saying that June, July it will start that. So that is shifted to August, September. Okay, sir. Great set of result and congratulations once again, sir. Thank you so much. Thank you. A reminder to all the participants to please restrict yourself to two questions per person. The next question comes from the line of Prabhat Agarwal from Finvesters. Please go ahead. Good evening, everyone. Congratulations for the good set of numbers. Sir, my question is, can you please throw some light on revenue from online platform, as you have mentioned in the PPT, and expected growth rate from that? Sorry, I didn't get your question. If you don't mind, can you repeat? Yeah. Sir, I want to know the revenue from online platform as you have shown in your PPT and- Yeah expected growth we can assume in coming quarters. To be frank, because this is going in a franchise model, obviously we are not focused on this. But now since we have now appointing a distributor, and the distributor is not only taking the online and using the other platforms also, I am sure that the growth rate will be much better. Now it is in a very negligible sales which we are doing it. Thank you, sir. Thank you very much. Yeah. Thank you. The next question comes from the line of Omkar Ghugardare from Shree Investments. Please go ahead. Yeah, sir. Thanks for the follow-up. My question was regarding how much margin difference is there in the agglomerated and the freeze-dried coffee? You are talking about the price levels or margins? Margins, margins. Yeah, around 2%. 1%-2%. Yes. 2% margin, right? Yes. Okay. And for the price? Spray to agglomeration, right? No, no. I am asking about agglomerate. Currently you are setting up additional plant, right? For 5,500 for freeze-dried, right? Oh, okay. No, that there won't be much difference in the margins, sir. But the point is that what we are getting is that because now we are more, right now it is the plan is around 40%-55% which we are selling in agglomeration, and 45% is spray-dried. This 45% we want to bring it down further and focus more on agglomeration so that we can sell in a consumer pack. When we sell in a consumer pack, the realization will be 1%-2% more than the bulk realization. Okay. When you shift the full capacity for freeze-dried, around 11,000 of only freeze-dried I am asking, how much additional margin that would give? This will easily give around 3%-4% over the agglomeration price. Okay. At 100% capacity utilization you are saying, right? Yes, you are right. Okay. The store which you had at Navi Mumbai, I mean, do you have any plans to expand more stores? We haven't heard anything on that front. No, as I mentioned to you that we are now focusing more on a B2B, the thing, institutions, setting up cafes and all. We have planned right now to go with one only. But in case if the franchisee has more options to open the outlets, then we don't mind actually. Right now, we don't have any plans as a company. Okay. The new 5,500 capacity which just came up in March, the full impact started from Q1 and more in Q2, right? In that way, Q3 and Q4, we'll be also seeing 100% capacity utilization. But after Q4, in Q1 or Q2 of next year, will there be a growth slowdown because of the, you won't be having additional capacity for the additional growth because you already will be utilizing 100%. So incremental growth would come from where? That's what I'm asking. No, FY 2028, the plan is that we will continue to go for the full capacity utilization of 11,000 metric tons. That will continue to grow. But if you see FY 2029, you will be getting additional maybe around 30%-40% of the freeze-dried coffee capacity we'll add on that. So in that event, then the 11,000 metric tons plus maybe another 2,000 metric tons of freeze-dried coffee will come in. So obviously, there will be a growth in a value. Even Q1, Q2 of FY 2028 also, 5%-10% is the year-over-year growth also will be there. Okay. But the recent capacity which you commenced in March, the impact started from Q1, Q2, Q3, and Q4, right? It will continue from Q1 to Q4, right? The net capacity of 5,500 will be commenced from which quarter? September 27, basically. September 27 is the next 5,500 will come. Whatever the agglomeration unit we are keeping, that value of the 20%-25% realization will be coming more. That benefit will be coming in the Q1 and Q2 of FY 2028. Okay. The additional benefit of incremental capacity will only come from Q2 of next year, right? Yes. Q1, Q2 of the next year. From September onwards, the FDC also will start giving that realization. Oh, sorry, I missed your comment. What did you say? Freeze-dried coffee also will start operations from September 27. So, Q2 little one to two will come. Okay. For Q1, the impact will be coming from the shift from agglomerated coffee, and the second quarter will have the impact of the additional capacity of the freeze-dried coffee, right? Yes. Correct, you are right. Okay, got it. Thank you, sir. Thank you. Thank you. Ladies and gentlemen, a gentle reminder to please restrict yourself to two questions per participant. The next question comes from the line of Vinay Kumar Duglu, who is an individual investor. Please go ahead. Thank you. My questions have been answered. Thank you. Thank you. The next question comes from the line of Abhishek Mathur from Systematix. Please go ahead. Yeah. Hi, good evening, sir, and thank you for the opportunity. Sorry, I joined the call a bit late. On the phase 2 of the FDC expansion of 5,500 tons, phase 2, have you indicated earlier on the call that the production will commence in FY 2030 and not in FY 2029? Yeah, FY 2030 will be commercial operations will be started, correct. Got it, sir. And on the phase 1 of 5,500 tons of FDC, have you indicated that the utilization for FY 2028 will be about 70%, and it will be utilized for about six to seven months for the financial year? Correct. You are right. Got it. Last clarification, sir. On the spray-dried plus agglomerated SDC side, with the 11,000 capacity that we have, on the earlier call, you had indicated that we could look at a volume of about 10,500 tons for FY 2027. Is that guidance still intact? Yes, that is intact. You are right. Right now, we have a visibility for 10,500. We have a commitment from the customers. That is intact. Great, sir. Got it. That is it from me. Thank you. All the best and seasons greetings. Thank you so much. Thank you. The next question comes from the line of Meet Mehta from Entigrity Ventures. Please go ahead. Yeah. Hi, team. Congratulations on great set of results. Sir, just wanted to understand how does the value and volume work for our company? We have done a volume of around 43%, a growth of 43% in terms of volume, and our revenue has grown around 54%. So, what does this value growth indicate here? Because I was just comparing the coffee bean prices for this particular quarter and last quarter. So, there has not been a huge jump that we have seen in our realization. Any color on this value term? Yeah, I'll explain that one. In the volume, you are seeing, I think, the both combination of the chicory and coffee beans. But major growth in the volume is happening in the coffee only, which is the high-value realization. Because of that, this realization is that even though it's a total volume growth is showing is a 40%, but value growth is a 50, 55% is there. Okay. And higher realization coffees are agglomerated coffee? Yes. Correct. Got it. Also on the EBITDA terms, our EBITDA should be growing with our volume growth, right? Because we would be having a fixed percentage kind of arrangement. Our EBITDA should be growing with the volume. Correct. Absolutely. You are right. Okay. Sure. Thank you for the clarification, and wishing you the very best for the coming quarters. Thanks. Thank you. Thank you. The next question comes from the line of Deepali Bansal from Ventura Enterprises. Please go ahead. Sir, I would like to ask one thing. I am an individual investor. I have been a shareholder for maybe two years. What can go wrong? I mean, what should I be cautious about? The whole scenario is really beautiful. We have a good vision for the next five years. But what should we be cautious about? The cautious thing, which is that the geopolitical situation, because we are mainly depending, because this is an export-oriented unit, so it all depends upon the international logistics. In case if the containers availability has become a challenge. Of course, I recently saw the Government of India also has given a clearance to set up a container manufacturing unit in India. But still, in case if there is a shortage of, acute shortage of containers, there may be a slight delays in shipments. That is the one we are anticipating the issue. Otherwise, I don't see because the coffees are available. Fortunately, coffees are available with a full crop which is coming in all over the region, all over the regions, especially like in Africa, Vietnam, Indonesia, Brazil, and India. We are expecting a good crop. Obviously, the crop coffee availability is not an issue, and the price levels more or less will remain same, and the consumption of coffee globally is growing year on year. I don't see any other major thing except to this geopolitical situation. Do you think in that kind of scenario, we would be able to sell our goods domestically rather than in the export market, if something of that sort happens around the world? That's the reason what we have is that we have already started our small presence in Indian market. Of course, we are also selling in Indian market to some brand owners who are also building a brand on that. But going forward, as I mentioned in my earlier question, we have plans to go into the Indian market on a B2C in FY 2030, but that is a long way to go. I'm saying because we don't have all the products right now available. Freeze-dried coffee is the product which also required to, so that is coming in the next year. Once that comes in, then we may take a call on this one. But yes, you are right. Certainly, Indian market is growing, and obviously there is a huge potential for the soluble coffee to sell in India. All right, sir. Thank you. Happy Diwali to everyone. Thank you so much. Thank you. Thank you so much. Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I would like to hand over the call to management for closing comments. Yes. Thank you very much for all the participants. I am very glad that you asked very nice questions and good questions which I could able to give an answer. In case if we are not able to, you have more questions or more these things, you may please write to us, either to me or to the CFO or to our sales director or ED. They will reply back to you immediately, any clarification, any time, 24/7. I also wish you all a happy Diwali in advance. Thank you very much. Thank you. On behalf of Vintage Coffee and Beverages, I conclude this conference. Thank you for joining us, and you may now disconnect your lines.