Ladies and gentlemen, good day and welcome to Astral Limited Q1 FY 2027 earnings conference call, hosted by Equirus Securities. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pranav Mehta from Equirus Securities. Thank you, and over to you, sir. Yeah. Thank you, Palak. Good evening, everyone. Thank you for joining this call. Today from the management side, we have Mr. Sandeep Engineer, Chairman and Managing Director, Mr. Hiranand Savlani, ED and CFO, Mr. Kairav Engineer, Executive Director, and Mr. Saumya Engineer, CEO, Adhesives and Paint Division. I will now hand over the call to Sandeep, sir, for his opening remarks. Over to you, sir. Thank you. I welcome you all for the earning call Q1 FY 2027. As you all are aware, the polymer industry is passing through a volatile time. Prices are highly volatile and fluctuating. It was on the negative side in Q1. Due to that, the industry de-growth by approximately -10%. But I am very happy to share that in spite of that, as usual, Astral is a company which always focuses on growth and at the same time on profitability. Which, once again, we have demonstrated in this quarter with a flat volume growth against market reporting almost 10%-. Also we have delivered a 10% value growth with an 18.9% EBITDA, which is one of highest in the industry. This clearly suggests that Astral is continuously gaining market share from many years, and the journey is still continuing. Now let me take you through all our verticals. Plumbing. Demand was overall weak in the industry, but because of decentralization of plants, our demand was very good, and we are taking market share in new geography where we have started our new plants. As you are aware, Astral has spent almost INR 1,500 crores in CapEx in last four to five years in all the verticals. Now it is the time to utilize the same and generate the cash flow from there. As communicated in the past, we have increased our product basket in last three to four years. This product basket is not only adding a good performance but also is adding to a value performance. New product basket includes water tank, valves, fire sprinklers, O-PVC, PTMT, low noise, and other products. This has given Astral growth and healthy margins. Our Kanpur and Hyderabad plant have geared up and are giving good growth in their respective geographies. Our CPVC resin plant construction is going on as per the schedule, and we are expecting to complete it by December end. We will take the trial runs and finish the settlement and the product stabilization in Q4. Our state-of-art new valve production facility is up and fully running. We are also adding aluminum PEX machines, which are under installation. We are going to complete the same in mid-September. By end of September, all trials will be over, and the commercial production of the same will be made. Bathware business is also slowly picking up, and more and more new projects and developers are getting added to the Astral brand. During the quarter, we have given a healthy growth in our bathware business by 18.1%. Our adhesive business. The quarter was once again an excellent quarter for Adhesive India business. We have delivered a robust growth of 24.9%. We are getting good response in rural and online business. At the same time, overseas business is also picking up well. I am sure you must have seen that this vertical, which was continuously growing market share by entering to new geographies, new product introduction, and focus is on both rural and overseas market as well as even the urban market. During the quarter, the margins were under pressure due to high cost of inventories and previous quarter inventories which we had with previous quarters. We are confident that by the year-end, not only we will achieve our targeted revenue but also deliver the guided margins. The U.K. adhesive business. This business was passing through a tough time last year. We took a quick, bold decision, and we are happy to see that growth is coming back, and EBITDA margins are also showing signs of pickup and improvements. You can see the numbers that this quarter it has delivered a robust growth of 26% with an EBITDA of 4.9%. Paint business. First time after acquisition of Gem Paints, seeing a history high growth of 48.7% in this vertical. Not only that, we are at EBITDA breakeven point. We are at EBITDA breakeven. Paint business has delivered robust growth with all the six operating states, and also new launches have given good response across the geographies. DSS, the newly acquired specialty chemical company. We are happy to share that from the very first quarter, the newly acquired company not only is giving quick start of revenue, but also an excellent EBITDA of 12.9%. We are expecting that to grow in coming times. The vertical will be delivering good value growth and excellent margins. With this, I am closing my initial remarks and let Mr. Hiranand Savlani take you through the finance performance of Q1. Good afternoon, everyone. Welcome all for our earning call for Q1 FY 2027. Result and press release are in front of you. I just want to highlight the key numbers. The vertical Y numbers are as under. Last year Q1 plumbing business was INR 953 crore. This year it is INR 1,050 crore. So registering a growth of 10.1%. Adhesive business India, last year it was INR 261 crore. This year it is INR 326 crore. So registering a growth of 24.8%. Adhesive business U.K. last year was INR 96 crore. This year it is INR 121 crore. Registered a growth of 26%. Paint business, last year it was INR 50 crore. Now this year is INR 74.5 crore, registering a growth of 48.7%. DSS, Sandeep bhai has given the number. It is INR 6.7 crore with the EBITDA of INR 90 lakh. Overall, if you see that the numbers are in line what we have projected. EBITDA percentage also I am giving you. Q1 plumbing business last year it was 16.4%, now it is 18.9%. Adhesive business India, it was 14% last year, now it is 12.2%. Adhesive business U.K., last year it was flat, 0.2%, now it is 4.9%. Paint business, last year it was 1%, now it is 0.1%. Consolidated wages last year it was 14.3%, which is now 15.5%. Roughly about 1.2% kind of improvement into the EBITDA. As you all know, we are always believing in consistency in number and the profitable growth for the organization. I am very happy to share that this quarter also, we have delivered a very healthy 10.1% value growth in pipe and flat volume growth in pipe. Again, the negative growth of industry by roughly 9%-10%. In adhesive and paint also, we have registered a very robust consolidated growth of 29.5%, in which adhesive was 25.2% and the paint was 48.7%. The overall Q1 value growth is 15.9%, and with the EBITDA margin of 15.5%. The key points to note here is that in the history, we have first time delivered a highest 48.7% growth in paint after acquisition of Gem Paints. As we guided in last call, that we will be closing full year with 20%-25% kind of growth. But with this kind of number in Q1, we are confident that we will be definitely crossing the guided mark number. Further, you will also notice that in all the vertical, whether it is a paint, whether it is adhesive or whether it is a plumbing, we are continuously gaining market share, which is always a good sign for any company, and so it is for the Astral. In pipe, one of the good things has come up for the industry, which is implementation of MIP, which will make our life a little easy because we are continuously seeing the volatility. Since last few years, a huge volatility in polymer prices, particularly into the PVC. Now with this implementation of MIP, this will reduce sizably and which is very good for the company as well as all of you to forecast the number. Demand scenario in pipe industry is very robust from July onward. Till yesterday, I can say for 4.5 months, we are into the double-digit growth. You can understand the kind of extraordinary growth we have achieved in the month of July and the first 11 days of the current month, which give us the confidence that what we have given the guidance of double-digit growth. We will be definitely going to achieve on a full year basis. Since realizations are very high, which will give value growth of more than that. That is right now realization and the volume gap is 10%, and with this implementation of MIP, we are of the view that the value gap will continue, and if that is the case, our value growth for the full year will be more than 20% in top line. As communicated by Sandeep bhai, we are slowly coming back to our U.K. business growth path as guided in the last phone call, which you can see in the number and we are confident that by year-end we will be coming to the normalcy what we have guided. We have guided the double-digit growth in top line. In the first quarter itself, we have delivered the 26% kind of growth. So we are confident that the U.K. will definitely going to surpass the double-digit mark. From Q3 onward, I think PEX aluminum packs, which Sandeep bhai already discussed, is going to start contributing to the top line and the bottom line, this product is very well accepted in the Indian market, and it is a very high-value product and a high-margin product. Few more products we are planning to launch in Q3, which we will communicate to you in our next earning call, when they will be at the advanced stage of launch. Overall, industry environment is positive in all vertical, and we are confident that we will be delivering a healthy growth in the coming quarters also. With this, I want to thanks everyone and open the floor for the Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 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, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to three per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please proceed with your question. Hi, sir. First of all, congratulations on gaining the market share both in plumbing and adhesive. You have highlighted many things just to get more confidence on that front. Particularly on the guidance front. First, on the plumbing, we have mentioned that in 4.5 months we have seen a double-digit growth. In Q1 when we have a flat growth, does that mean that only the April was where we have seen a significant, maybe a degrowth and then the May and June must be a growth, and July, does that mean that we are seeing a 20%+ kind of a growth? Your understanding is right, but little I can do the correction. The April number was not good for the entire industry, and particularly for Astral because we implemented our new SAP HANA, so our business operation was practically shut for the dispatch for 10 days. Definitely, April was not good. But then May onward, we started growing very fast. In the month of July, we registered a growth of 40% in volume, not 20%. Because of that, we are on a 4.5 month basis, we are into the double -digit. Okay. Then, does this growth is just because in Q1, because of whatever the volatility was there, and now since the mid of the July, INR 12, INR 13 PVC prices have gone up, and which is supporting so this quarter and maybe then the full year, can we see a mid 15% kind of a growth that is more likely achievable? At the same time, in terms of the margin, because we in plumbing used to guide 16%-18%, but this quarter also 18.9%. So what's the possibility that we should be doing a more than, or maybe close to a 19% kind of a margin, given that the now PVC prices are kind of up and plus MIP would be supporting? Though, I'm trying to understand the upside risk. I think the way July and August has picked up, it looks that the demand has come up very sharply from the market. One of the reason was that dealers and distributor were de-stocked because prices were going down. Because of that, nobody was in a mood to keep the inventory. But now everyone is rushing to fill up the inventory. Secondly, because of MIP now, the dealer and distributor also have a confidence that from this price, polymer price is not going to go down at least. So downside is protected. So they are getting confidence, and they are filling their stock also. So that giving us the confidence that the scenario will improve. Thirdly, normally whenever there is a first quarter, if so weak played kind of number, then naturally the second quarter should be better. Last year, if you see, the pattern was similar, that first quarter was weak, and then the second quarter we delivered close to about 20% kind of growth, volume growth. Similar pattern is getting repeated. I do not want to jump in at this stage and tell you that full year basis we are going to deliver 15%-20% volume or something. Let us wait for some more time. Let us we finish the Q2 number, and then I think we will be hosting the call somewhere maybe in the month of November or so. By that time, we will be having more clarity, so we will be in a position to upgrade our guidance. But at this stage, we do not want to unnecessarily jump. As far as your second question was relating to the margin, I think margins are pretty stable, and because of polymer volatility, 1% or 2% kind of plus minus will keep happening. We will be definitely going to be in the range of 16%-18%. If the market condition will be better, like what is right now, because now polymer prices are going up. If this kind of scenario continue for a longer period, then there are probability that we may increase the margin. But right now, our guidance will remain to 16%-18%. We will change our guidance if needed post Q2. Similarly on the adhesive also, the significant growth, India 25% kind of a growth, and U.K. also 26%. Both we were having a kind of a 15%-20% guidance for India and more than 10%. Are we revising right now or still there also the similar guidance and maybe post Q2 we will upgrade the guidance? The chances are bright to revise upward, but at this stage, we do not want to do that thing because still we want to wait for some time. Because we do not want to unnecessarily misguide the street based on the one quarter number or maybe four months number. Better we wait for the completion of Q2, and post that, if required, we will definitely change our guidance. The India margin will be there. Obviously, this quarter was lower 12.2%, but it will come back to 15%-17% what we are. Yes. I think we have already disclosed also in the press release also that it will be back. Okay. Thank you, sir, and all the best. Thank you, Shravan. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Praveen from PL Capital. Please proceed with your question. Thank you for the opportunity, and many congratulations for a good set of numbers. My first question is related to domestic adhesive business. As you had already highlighted that the price hikes have been implemented. How much has been absorbed in the market, and is there any further commodity inflation is there to take a further price hike? I think, Saumya here. I think overall the RM prices were upward of overall, I would say more than 15%, 16% rise was there. Exact figure, I will have to check, but I can give you that. We did a price increase of half of that, around 6%-7%, 8% price hike we had done across our boards, average. I think few things we had to absorb as a raw material expense, as a higher price, so we had to absorb in Q1. But I think with the RM softening and overall cost coming down in Q2, I think there will be definitely a positive impact going forward for the Adhesive India business. Okay. Secondly, on the adhesive, only the international, out of your 26% of the growth, how much is the currency led? I think close to about 8%-10% related to currency. Rest is on the constant currency. Okay. In the adhesive, DSS number is consolidated INR 67 million. That is consolidated in paint because it is a subsidiary of the paint business. Okay, got it. Lastly, on the pipe and fitting, because you in the starting commentary also mentioned about the Kanpur and Hyderabad plant, which is ramping up very good for you. At what level of utilization these two plants are running at, and because you have taken some capacity expansion in this quarter as well, somewhere around INR 3,000 crore. How has been the capacity for this and at what level of utilization these are running at? Kanpur has gotten a very good response in the local market. The Kanpur plant is majority sold out. Very high utilization, but again, the Kanpur capacity is very small. We are planning to expand the Kanpur facility in the coming year to take care of the growing demand. Hyderabad, I think will be operating at around utilization of around 50%. But there also, we are slowly and gradually getting a foothold in that local domestic market. We have enough land and space there to expand also, but the capacity obviously higher than Kanpur, so that is why utilization point of view, you are seeing a slightly lower number. Capacity addition, whatever we have done is basically we have just done some debottlenecking at the existing facilities, added some molds and some fitting machines and PEX machine and some other new product lines that we are developing. Substantially, no new facility work has happened. Okay. Good to hear that. Last questions are related to the paint, because that is 48% of growth. Can you give more color on how has been the volume growth or the geographical expansion which led the growth for you? If more color on that will help us. As our last guidance, we are not expanding into more states. The South States, we will finish. We have finished three states in South. We have two more states in South, which we will finish when the time is right and when we feel it is right. In the West, we have opened the Gujarat, Rajasthan, and Maharashtra markets, three states. Now we are taking very conscious call in terms of understanding that how our bottom line is also going with our top line, and accordingly, we will invest more in states and more in manpower. But now it is getting this state stable and growing within this state. We are consolidating in this state, so that is a very positive sign that we are seeing around 48% growth from these existing states where we have opened. The acceptability is good, and the volume growth, I think, would be around 35%-40%. The rest would be, I think, the value growth due to the increase of the pricing of the products which we have taken. Thank you so much, and all the best for future. Thank you. Thank you. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Tejas Pradhan from Citigroup. Please proceed with your question. Yeah. Hi, sir. In terms of volumes in the plumbing business, obviously, we have done much better compared to the other players. Just to get some additional color on this thing, how much of this was a function of product mix or geo mix, and how much have you been probably more aggressive on pricing versus competition? Considering in April also you have 10 days when you mentioned you had lost because of the transaction as well. Despite that, the very strong performance on volumes. I think product mix had not changed much because we are more focused company on the plumbing side of the business. I do not think product mix may change, and that is why you see that the margins are also pretty stable. Normally, within the 16%-18%, we believe at this time little more. Product side, I do not think any big changes there. Right. On pricing, was there any probably more aggression in the quarter to achieve the volumes or no change versus the historical level? No much aggression. Actually, we are very blessed that we are getting a good set of distributors from the competitors who are willing to join us. A lot of network expansion has happened. So without sacrificing on the margin, we are able to deliver these numbers. Understood. Secondly, in the adhesives segment, in the past quarter, you had some one-off branding expense. There is nothing of that sort in this quarter? No, not much this quarter. Maybe routine branding cost will be there definitely, but not one-off kind of. No one-off. Okay, understood. Lastly, on the paints assets, roughly what would be your capacity utilization right now? Paint, we will be somewhere around 60% kind of utilization, 60%-65%. After the growth that you have seen in the quarter? Yeah, 30%-35% kind of growth. Okay, understood. That's all. Thank you, sir. The next question is from the line of Indrajit Agarwal from CLSA. Please proceed with your question. Hi. Thank you for the chance. My first question is on ground end user demand. While we have seen a strong uptick in the months of, let's say, June and July, how much of it do you think is driven mostly by the stocking, and how is the end use demand, and which segments are actually contributing to this demand growth? End use demand is robust. That is why you see that in the paint business, the adhesive business, pipe business, bathware business, all business, we have delivered robust numbers this quarter. Q2 also, this demand is continuing. End user level demand, I don't see there is any sort of a major problem. Is it both from rural or urban or anything to call out that urban is growing stronger than rural, and that is why probably you have outperformed the industry? No, across the board. Only in the piping side, the agri demand was bit muted. Otherwise, overall, all products are doing very well. Sure. Lastly, any change in inventory number that has contributed to the margin in this quarter, whether inventory gain or loss? Not really. All right. Thank you. That is all from my side. Thank you. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Sneha from Nuvama. Please proceed with your question. Hi. Good evening, team, and congratulations on super strong numbers. Just couple of questions from my end. While you already said there is no inventory gain element, while the product mix largely remains same, what would have led to the margin improvement? Because if I look at it from year-over-year perspective, probably from last two to three years, if I look at current margins, they are at the most highest level, especially in Q1 attaining like a 19% sort of margin. What would have led to that? That's the first one. So mainly, if you see, Sneha, that all our new plants, our O rates were very high because utilizations were very poor. Now with this kind of growth what Kairav said about both the new plants, that has supported us to improve our margin, mainly because of economy of scale of that particular two plants. Because all labor related cost, operator related cost, plant head related cost, all your fixed labor cost, all are going to be there whether you produce or not. So with this extra production, that has supported us to improve our margin. Sir, but our volumes are actually flat year-over-year, right? I would have got the operating leverage part of it, but with volumes being flat year-over-year, how does it work out? Or is it any plant? Basically, I would like to add that in the first quarter, the agri demand was muted. So lesser sale of the agri product happened. But rest of the products, which are plumbing products for us and value-added product for us, the sale was good. When you sell less of the agri-type products, automatically the margin profile will improve, because agri is having a much lower margin than the plumbing product. Understood. That is precisely the product improvement or change that we are talking about. What would have been the growth of CPVC this particular quarter in this entire PVC? It is in the high -single -digit type. During the quarter? Yeah. That's helpful. Secondly, bathware revenues, just a bookkeeping one, for this particular quarter. Bathware, I think last year it was INR 24 crore. This year it is INR 28.7 crore. Understood, sir. Thanks a lot, sir. I'll get back in the queue. Thank you. All the best. Thank you, ma'am. The next question is from the line of Anu Parakh from Anand Rathi. Please proceed with your question. Yeah. Hi, sir. Just one question from my end. What was the CapEx amount spent in Q1 FY 2027, and what are we budgeting for FY 2027? I think this quarter we have spent INR 137 crore in CapEx in all the vertical put together. Because even the CPVC plant working in full scale. If you want break up, I can say close to about INR 87 crore we have spent in plumbing. Adhesive, we have spent around INR 29 crore. Sorry, 29+3, so INR 32 crore. U.K., roughly about INR 2 crore. And then INR 16 crore on CPVC resin plant. And for the budget for FY 2027? I think we have said 300 kind of level, 300-350 kind of level will be there. Hello? Yes. Hello, Anu? Yeah. Thank you. Thank you, ma'am. Okay. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Shravan Shah from Dolat Capital. Please proceed with your question. Sir, in bathware, now for this quarter, is it a kind of EBITDA positive? Because till last quarter we were kind of a breakeven. Still we are at a breakeven. Okay. In the U.K. for full year in terms of the margin now, we can say 8%-10% kind of a margin we can build in? Yes. We are targeting that only. For paint, how we can now see because the growth is there, so from Q2 itself, can we start seeing an EBITDA positive and what number one can look at, kind of a 6%-7% kind of a number for full year EBITDA margin? Last call we have guided that we will be delivering lower single -digit EBITDA growth. Okay. That's it from my side. Thank you. Thank you. Thank you, sir. The next question is from the line of Durgesh Shukla from InCred Capital. Please proceed with your question. Hello, sir. Thank you for the opportunity. Can you reconfirm your volume and EBITDA guidance? Volume and EBITDA guidance for plumbing? Yes. We have given the guidance of minimum double-digit growth. Okay. For volume. EBITDA, we have given 16%-18%. Okay, sir. What about the paint sector? Paint? Yes. Paint, we have given guidance of 20%-25% kind of top-line growth. Okay. Top-line. Adhesive, we have given 15%-20% kind of growth. Okay. Any margin guidance on the same which you would like to give? Paint, we have given lower single- digit guidance. Adhesive, we have given 15% kind of guidance. Thank you, sir. So much. That is all from my side. Thank you. Thank you, sir. The next question is from the line of Keshav Lahoti from HDFC Securities. Please proceed with your question. Hello. Hi. Thank you for the opportunity. Firstly, I am from HDFC Securities. A small correction. Sorry to interrupt, Keshav, sir. May we request that you speak a little louder? Am I audible? Yes. Yeah. Now. Yeah, you can proceed. Am I audible? Yeah, you are audible. Yeah. I was saying, firstly, I am from HDFC Securities. The first question is, when you say July has been a 40% growth, is it the market has been good, or possibly you would have gained more share in July month, the run rate which you have been gaining market share are still ahead? No, market has been good, and we are gaining the market share. It is a combination of both. You see, the market share process gaining is not one quarter basis. Last 10 years continuously, every year we are gaining market share. You pick up the last 10 year number. Every year we have grown market share. That is an ongoing process because we are continuously adding our new location, new geographies, new products. That exercise is still continuing, and will continue for some more time. Understood. Hello. Sorry. Hello. Sir, on the inventory, how is the channel inventory right now? Secondly, when PVC prices have declined this quarter, still we have not seen inventory loss. Why is that so? Secondly, Q2, should we have a good inventory gain as PVC prices have been in an upswing? So see, it depends at what price you are buying your inventory. Based on that, inventory gain and loss will be decided. Secondly, how much is the contribution from your value-added product is there. If your contribution from value-added product is also increasing, inventory loss little bit here and there is not considered. I think, Q2, very difficult to say at this stage because still lot of time to come, but it looks that prices are continuously going up. But everyone is sitting with a low growth, so everyone is passing on support to the market. We have to see how much we have to give the support to the market, and based on that, the volume will be decided, and based on that, the inventory gain will be there or not, that will be decided by the end of the quarter. I think too early to say. But one more thing is also going on in the industry, which can also be materialized in the near term. It looks like that government is also seriously thinking for the value-added duty also on the Chinese product. Like MIP there, the similar kind of anti-dumping kind of duty kind of value-added thing is also going on. If that is also going to be there in place, maybe in one month, two months down the line, because processes go on with the government. That is also going to support the industry in the coming time. But again, it depend on the government outcome, so we cannot give with the assurance that it will be there. But that is also talk going on. If that is the case, then further polymer will go up from here, definitely the inventory gain will be there. Got it. Sir, I also ask, how is the channel inventory right now in the market? How is it? I think now it is an okay kind of inventory, neither low, neither high, I can say. Whatever they have bought in the month of July, sizably they have consumed in the beginning of August because secondary sale is going very well in the market. Across all the cities, we are monitoring the number. It does not look that the channel is sitting with a high inventory. They are mostly sold out. Got it. Sir, what was the idea earlier? You were planning for a demerger of two units. Possibly we decided to hire Big 4 and decided to call off the decisions. What was the entire thought process, and how should we see, let us say, a few years down the line, whether demerger will be again on card? I think we thought that it is good in the interest of the shareholder. Earlier that we do, that will be a better control on the organization. I think end of the day, we have to respect the majority of the shareholders' point of view also because end of the day, we are the trustee of shareholders. If the shareholders are not happy with any of the reason, then I think we should respect. Considering that in mind, I think we do not mind to reverse any of our decision which is not in the interest of the shareholder. We decided to call off. Similarly, the independent advisor who has also guided us that it is not the right time to do the demerger because you are still a sizably low company in terms of top line. If you pick up a size after that, if you start doing, that will be better option. Same, I think, was expressed by many of our shareholder who are holding the sizable equity in our company, even if the low equity holding. Even many of the well-wisher, our analyst community also, they also expressed the same view. The board also thought that we should also respect this kind of view. Based on that, we taken out. Understood. Got it. But till what time, as you highlighted, shareholder also did not wanted the demerger thing. Till what time the demerger will not happen? Means how many years or possibly at what revenue base? What is the thought process? I think there is no clear thought process that we will be doing at this level, but I think now it will be sizable top line growth and maybe the sizable EBITDA level, not less than INR 5,000 crore, INR 6,000 crore top line. So by that time, we may think over that. But you know, business very difficult to predict at this stage. But we are of the view that that should be the ideal size, INR 5,000+ crore kind of size will be the ideal size. But that does not mean that the moment we cross INR 5,000 crore, we will do that thing. So we will see the situation on ground at that particular point of time, and then we will take a call what to do. Got it. One last question from my side. U.K. Adhesive 8%-10% EBITDA margin guidance is for the entire year, or possibly this number you will reach by end of the year? No, for the full year. Got it. That is helpful. Thank you so much. Thank you. Thank you, sir. The next question is from the line of Rahul Agarwal from Ikigai Assets. Please proceed with your question. Yeah, hi. Good evening to all on the call. Am I audible? Yes. Yes, Rahul. Okay. Sir, three questions. Firstly, on the industry side, last year was tough on the piping plumbing sector. Even this quarter is tough. At the same time, I am sure smaller players would have struggled handling their pricing on inventory. Over and upwards of that, we are seeing some branded players trying to build up their volume. We have seen some couple of large names getting into the market on pipe fittings. Just your thought on what is really happening in terms of industry. Larger players have gained market share, there is no doubt about it. But just first question essentially was to understand, how do you see the industry overall panning out? Because it has been a real volatile period. Obviously it will benefit you, but just some thoughts on that, please. I will answer your question on. See, first of all, last year I do not think was challenging, not for us, and neither was this quarter challenging for us. Because our priorities are very simple and our goals are very simple. I do not know, but we are outperforming the industry by a fair bit since the last five to six quarters, you can say. As far as the larger company goes, I think we are eating away the market share from all the larger player in the market. You can obviously see from the number that small to mid-scale companies are struggling in this particular business environment. When you are talking about the other big brands coming in or other new players coming in, I do not see anyone significant coming in who will disrupt the market, or I have not seen any player who has entered in the last five, six years to disrupt the market in any way. Okay, I get that, Kairav. Just one question here. We always end up discussing CPVC for Astral, right? That's the highest profit for you. Just on the PVC side, and which is also bulk, which also is, I'm assuming that it's close to 50%, more than that on volume for Astral. What is happening over there? These market share gains are happening on the CPVC side or even on the PVC side? It is happening across the board, all product segment. Okay. Got it. Second question was on primary sales versus secondary. Do we track secondary sales for Astral Pipe and Fittings? We track tertiary also. Okay. My understanding was obviously 1Q had a lot of destocking issue, which is why July is 40% growth. Base is low. We are seeing stocking again. If you could just comment on tertiary sales for 1Q, that is one question. Second is primary equal to secondary now starting off? Tertiary and secondary were both higher than primary in Q1, obviously because the channel was destocking. Secondly, Q4 sale was very high. Because of that, the secondary and the tertiary sale in the Q1 is always high. Right. What is happening now? That is why the channel has restocked largely in the month of July, and still the restocking is happening because the channel was very dry in the Q1, because largely all the secondary and tertiary sales had happened. Rahul, it is not only that July we have delivered the 40%, but even August also so far we are at a double-digit growth. So it looks that the secondary and tertiary is going well. Otherwise, distributor, beyond the point, cannot restock that much. So genuinely on ground, demand is picking up, and that is the reflection of this number. Got it, sir. Last question was on the sourcing of PVC resin and CPVC resin right now for Astral. What is the import and domestic mix for both these resins separately? I think we are not sharing this number. These are the confidential number. So it depends. Every quarter, the percentage will be different. Sure. Why I was asking it was from an import perspective, how is the sourcing for resins? Because Forex has depreciated. There are lead times which have increased because of freight issues. Shipping cost has also increased. I know this is a pass-through industry, but some thoughts on that. I think we have to stick to that. We will continue to grow at a double-digit volume and deliver 16%-18% EBITDA. I think we should not extrapolate into what is happening and where we are sourcing from. I think that is a proprietary information of the company. Okay, sure. One point I was trying to drive was, is sourcing all. We have maintained enough inventory, so no concern on that. Okay. All right. Thank you so much, and wish you all the luck for the rest of the year. Thank you so much. Thank you. Thank you, sir. The next question is from the line of Akash Shah from UTI Mutual Fund. Please proceed with your question. Yeah. Hi, sir. Am I audible? Yes, sir Akash. Yeah. Thank you for the opportunity. Sir, just wanted to ask on gross margin side. Sir, in India Adhesive business, if possible, can we share what is the gross margin decline on a Y-o-Y basis? We do not share individual number, Akash. Okay, no worries. Sure, sir. In India Adhesive business, now that a fair bit of time has passed. Sir, how is the ramp up in South and West region because of the Hyderabad plant? Are we sort of being able to ramp up the sales in this part of India? Yeah. South for us has always been a weak point since we have acquired [Resinova]. Last two years for India, adhesive business has been very robust and it is lot of legwork and market development activities are going on. So parallelly with sales, we are also developing South equally, and we are looking South as our big focus for our sales increase for coming years and South will deliver. West, we are already doing fairly well and we have a good market share for the product lines we are present in for the West region and we have good counter share as well, so we will keep focusing on and making our position even stronger in West also. The Hyderabad plant is definitely helping in that. Sure. Yeah, those were my questions. Thank you. Thank you. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is on the line of Shiv, an individual investor. Please proceed with your question. Mr. Shiv, your line has been unmuted. Please proceed with your question. As there is no response, we will move to the next question. The next question is on the line of Utkarsh from Anand Rathi. Please proceed with your question. Sir, I just wanted to reconfirm. Like you said that, we will reconsider the de-merger of chemical business once it reaches a revenue of INR 5,000 crore. Last year, the chemical business revenue was close to around INR 2,000 crore. Does this mean that we are not going to consider the de-merger of chemical business over the next five, seven years period? It depends. I said in the early remark that if it comes early and the situation is necessary to do that thing, we will relook. But it is not a fix that we have kept in mind that, okay, at this level we are going to do that thing. We can do at INR 7,000 crore also. We may not do also. It depends on the market conditions and the situation needed to grow the business, particularly that vertical. Based on that, it will be taken the decision. There is no fixed timeline in our mind. Okay, sir. If you can give some sense, what kind of a scale, return ratio, and margin we are looking at before taking the call of demerger. I told you that we will take the call at that particular time. Right now, we are not taking the call, so there is no point to unnecessarily discuss in detail this kind of thing. At least from number, at least four, five year will be there, minimum five years. So no need to worry on that side. Okay. Thanks a lot, sir. Thank you, sir. The next question is on the line of Roshan from Antique Stock Broking. Please proceed with your question. Yeah, thanks a lot for the opportunity. The bathware segment grew by around? Sorry to interrupt, Roshan, sir. May we request that you speak a little louder? Is it better now? Yes, sir. Yeah. So bathware segment grew by 18% in Q1. So what is driving this growth? Is it the retail or project, and how confident are you of sustaining this kind of growth going forward? We are still a very new entrant in the market and have a very low base. We are just starting out. We are working with a clean slate. Some territories we are entering through project, some territories we are entering through retail. But we are happy that we can deliver this 20%, 25% type CAGR in bathware business for the coming four, five years. I think 18%, we are not happy to be very frank. We should be growing fast because our base is still low. Understood. My second question is, you attributed improvement in utilization of two plants as a major contributor for growth in the margin. As utilization improves, how much operating leverage is still available in the plumbing business now? I think we have given the guidance, so it depends how much which plant is getting utilized, because now both the plant has started utilization at a sizable level. Little bit further benefit can be available in the coming time, but cannot be a substantial benefit now from here on we can see. Understood. That's all from my side. Thank you, sir. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is on the line of Shravan Shah from Dolat Capital. Please proceed with your question. Hi, sir. Just wanted to clarify. Initially we said that in terms of the value and volume growth, which was 10% in this quarter, and we are looking at more than 20% kind of a gap for this FY 2027. That means that the realization for plumbing for the entire full year FY 2027 versus FY 2026 should be that kind of a growth that we are looking at kind of? No, I think you have misunderstood me. I said that if the volume will be 10%, then the value will be 20%. So 10% kind of gap will be maintained for the full year. That is what we are forecasting from the current market situation. It can be 1% or 2%+, it can be 1% or 2%-. It again, depend on the product mix also. But right now, after so many years, we are seeing that the first time that the value will be higher, sizably, compared to the volume. Last three year, if you see, all the piping industries were sufferer because volume was there, but the value growth was not there. Because of that, all our overheads were continuously going up, and that was continuously giving us the pressure on the margin. But this is the first time, after so many years, we are seeing that the value will be at least 10% kind of plus compared to the volume. Now, hypothetically, 15% volume will be there, then the 25% kind of growth will be there in value term. That is going to help us to improve into our margin, because our overheads are going to remain at a certain level. And if the top line grows, then it is going to support us into the margin front. So I am not telling you 20%+, I'm telling you 10% compared to volume. Got it. Understood. And then in terms of our stand, once our new CPVC plant will be there by Q4 this year. FY 2028, let's say this year, if we do a kind of a 15% volume growth, then next FY 2028, the growth rate would be higher than the FY 2027 growth rate. Definitely, your understanding is perfect. Not only growth will be higher, but the margin expansion will also be there. Yeah. That is definitely will be there. That's why I was trying to push that, given the margin that we are already there, 18.9% for plumbing. So what is stopping us still to not increase that upper band of the guidance, why 16%-18%? No, Shravan, you please understand that on the basis of one quarter, we can't keep changing our guidance. You have to also give us the time. You know last three year, the industry is continuously volatile. First time after three year, we are seeing that at least MIP kind of things is there, and now government is also thinking for the further duty on the Chinese product. If these kind of things are placed on the market, we can confidently tell you that now this is going to be there. But right now, industry is passing through the up and down kind of scenario. In that case, unnecessary misguiding the investor, that is not the philosophy of Astral. We always want to be transparent with you, and unnecessarily, we don't want to put up pressure on us also, and unnecessarily misguide you. So keep patient. We are already in the month of August. September is not far away. Then after, if the situation will improve, we are definitely going to change the guidance. In the past also, we have done the same thing. Whenever there is a market situations are positive, we have upgraded our guidance. Whenever market situations are not in our favor, we are happy to downgrade also. Yeah. No, why I was saying that because if I look at even last two years also, FY 2025, 2026, the margin was 19% and 19.6%. Given that the value growth for this year, as you are highlighting that it should be a 10%+ kind of a value growth. So in that case, and obviously the volume growth will be there. So, if we are confident in terms of the value growth would be higher, then the confidence should- No, Shravan, your understanding is absolutely right. You are thinking on the right direction. But for that, you have to keep little patient because I do not know which quarter inventory gain will be there, which quarter inventory loss will be there. If we improve the guidance, and tomorrow something goes wrong and PVC falls, and then the inventory loss come, then you yourself will say that, "Why? What was the need to increase the guidance?" So with the appropriate time only, we will be able to guide you. What is going to make different to the long-term investor? Is the long-term investor of Astral waiting for a one-quarter number or two-quarter number? Investor should think for the company from the next two to three-year point of view, rather than thinking for one quarter or two quarters. When management is telling you that wait for the one quarter, I do not think any of our investor have any concern. Yeah. No. We are giving always the industry-based number in terms of top line, in terms of bottom line. We are continuing our stand on that side, that we will be maintaining that kind of thing. But exactly improving the margin and improving the top-line guidance on a quarterly basis, I think it is too early to jump in. Please, humble request to you that wait for some time. At the appropriate time, we will be guiding you. Got it, sir. Thank you. Thank you, Shravan, for understanding. Thank you, sir. Ladies and gentlemen, we will take this as the last question for today. I would now like to hand the conference over to management for closing comments. Thank you very much, all of you, for being with us for the Q1 numbers, and we look forward to again connecting you with the Q2 numbers. Thank you, everyone. Thank you very much. Thank you everyone for participating in the call, and thanks, Pranav, Equirus for hosting this call. Thank you, sir. On behalf of Equirus Securities, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.