Ladies and gentlemen, good day, and welcome to Q4 FY 2026 earnings conference call of Borosil Limited, hosted by ICICI 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 the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. I now hand the conference over to Mr. Manan Goel from ICICI Securities. Thank you, and over to you, sir. Thank you. On behalf of ICICI Securities, we welcome you all to Q4 and FY26 results conference call of Borosil Limited. Today, we have with us senior management represented by Mr. Shreevar Kheruka, MD and CEO; Mr. Rajesh Kumar Chaudhary, Whole-time Director; Mr. Anand Sultania, CFO; Mr. Rituraj Sharma, President; and Mr. Dhaval Patel, Head of Investor Relations. Now, I hand over the call to the management for their initial comment on the quarterly and annual performance. We will open the floor for Q&A session. Thank you, and over to you, sir. Well, thank you, Manan and ICICI Securities, for arranging this call. Good afternoon to every one of you. The Borosil team and I are delighted to be communicating with you once again. I'm pleased to inform you that Borosil Limited's board has approved the financial results for Quarter Four FY2026 and for the full year FY2026 during our meeting held on 19th May. We submitted our results and an updated presentation to the stock exchanges, and they're also available on our company's website. Given that this is a year-ending call, before I get into the financial performance, I wanted to list out some of our achievements in the last year. As you may be aware, we had announced last year on April 2nd that we were going to set up a manufacturing unit for vacuum-insulated stainless steel flasks at a cost of INR 65 crores. I'm happy to say that the commercial production from the first two lines is expected to commence in the next few days, before the end of Q1 FY 2027, and the third line is expected to commence by the end of Q2 FY 2027. The plant is completely ready, and the trial production period will begin very shortly. In addition to that, on the marketing front, Borosil Limited was awarded a jury recommendation at the inaugural Economic Times Award for Design and Creativity in the Most Creative Packaging Redesign category. The revamp focused on creating stronger shelf impact, clarity, and a contemporary brand presence across all customer touchpoints. The brand underwent a significant refresh, with teams developing India's first color-coded, omni-channel-first kitchenware visual identity system. This strategic transformation strengthened brand distinctiveness, enhanced consumer navigation across categories, as we have multiple categories now, and reinforced Borosil's premium design-led positioning. In addition to marketing, the company's manufacturing facility was also at the India Green Manufacturing Challenge 2025 by the International Research Institute for Manufacturing. The award reflects the strength of our process optimization initiatives and integrating sustainability with long-term operational and cost -efficiency. Coming to the HR front, Borosil Limited has continued to be certified as a Great Place to Work, reflecting its commitment to fostering a positive workplace culture, a high-trust work environment, and strong employee satisfaction across its operations. This recognition underscores the company's continued focus on prioritizing its workforce and building a collaborative and rewarding organizational culture. On the balance sheet side, ICRA Ratings has reaffirmed our credit ratings to AA- with a stable outlook for the long-term facility and A1+ for the short-term facility. This strong investment grade profile reflects the company's solid liquidity and resilient operational positioning. Coming back to marketing. To deepen consumer engagement and cultural relevance, the company also conceptualized and launched Borosil Kitchen Connection. This is a distinctive content-led property that revamps celebrity kitchens while extending participation opportunities to consumers. By showcasing the Borosil product ecosystem within real celebrity homes through authentic storytelling, the initiative is building stronger resonance, relatability, and aspirational brand affinity among modern Indian households. Now moving on to the financial performance. I would like to say that Borosil has delivered a reasonable performance in FY 2026, with revenue from operations reaching INR 1,195.9 crore, up from INR 1,107.8 crore during the last year. This represents an 8% year-over-year growth. This growth, if we look at it from a product category perspective, although we don't share numbers at every level, is impacted substantially owing to the challenges we have faced throughout the year in our key category, that is Hydra, the vacuum-insulated stainless steel flask, bottles, and containers. The quality control BIS order was issued in the financial year 2025, and the resultant supply chain challenges have impacted the company's financial performance, both in terms of revenue and margins, and have significantly even impacted our share presence in this category. In FY 2026, the company achieved an operating EBITDA before exceptional and one-time income of INR 176.7 crores as against INR 177.7 crores in FY 2025, which is basically flat for the year. In fact, the operating EBITDA margin has reduced from 16.3% the year before to 15.1% in this year. As I mentioned before, the main challenge has been the lower sales of Hydra without its, let's say, reverse operating leverage, which has impacted us in this particular year thanks to the supply chain challenges for Hydra. During the quarter ended March 31st, 2026, the production activities at the company's borosilicate glass furnace for pressware products and its opal glass furnace located in Jaipur were also impacted temporarily due to the restriction in supply of LPG arising from a force majeure situation caused by the West Asia crisis and its consequent impact on global fuel supply. The operations and financial performance of the company for the quarter were impacted to that extent. Coming to other operating income, that is INR 26 crores, which is coming from shared service support income compared to INR 18.4 crores in FY 2025, with the related expenses reflecting under total expenses. As a result of that, profit before tax for the period was INR 100.9 crores compared to INR 103.2 crores in the previous year. FY 2026 includes a few one-time items, including expenses related to the demerger of INR 7.2 crores, which is actually a reversal. Sorry, it's a reversal of the expense of the demerger of INR 7.2 crores. On the flip side, a one-time expense of INR 1.8 crores for professional fees as well as income from investments of INR 4.3 crores and royalty income of INR 12 crores. Sorry for the lots of numbers there. This will all be available when the printout is shared. Compared to this last year, the company has recognized one-time income on account of transfer of tenancy rights of INR 13.5 crores and income from investments of INR 5.9 crores. The depreciation this year increased by INR 5.8 crores while finance costs declined by INR 6.2 crores, primarily due to debt repayment in FY 2026 as compared to last year. There was also another impact owing to the new gratuity and leave provision amounts on account of the new labor code, and that is about INR 4.0 crore, which is shown as an exceptional item in this financial year 2026. As a result of all of that, profit after tax rose marginally from INR 74.2 crores in FY 2025 to INR 74.7 crores in FY 2026. During the financial year 2026, the company generated cash from operations of approximately INR 119 crores. As of the end of 31st March 2026, at the consolidated level, Borosil Limited maintained a strong balance sheet with a net debt position of INR 49.7 crore. Coming to all the points listed above were with respect to the entire financial year. We come to the section on quarterly performance. The company has achieved operating revenues of INR 284.1 crore in Q4 FY 2026 as against INR 270.2 crores, which is a growth of 5.2%. This is also the slowest quarter for most consumer businesses across India, and that's reflected in this quarter as well. The EBITDA margin before exceptional and one-time items was 11.5% in Q4 FY 2026 as against 14.2% in Q4 FY 2025, and PAT was INR 10.6 crores this year in the quarter four as against INR 11.1 crores in the year before. Let's take a closer look now at a category-wise performance for the full year FY 2026. Borosil's consumer sales continued to grow across both glassware and non-glassware segments, barring the Hydra impact, as well as our opalware range also grew under the Larah brand. The Larah opalware segment recorded sales of INR 411.9 crores in FY 2026 compared to INR 383.8 crores in FY 2025, which is a growth of 7.3%. In our glassware segment, which includes borosilicate, microwaveable products, serving ware, glass tumblers, lunchboxes, we recorded a year-over-year growth of 17.3% in FY 2026. Revenues stood at INR 295.5 crores compared to INR 252 crores in FY 2025. Non-glassware segment, which encompasses a wide range of small home appliances, insulated bottles and flasks, cookware, and other kitchen essentials, posted a 2.4% increase in revenue, with the turnover reaching INR 463.7 crores in FY 2026 compared to INR 452.9 crores in FY 2025. As already mentioned, the Hydra bottle sales has come under substantial pressure owing to the non-availability of product owing to the BIS or the QCO implementation. Our team has recognized these headwinds and is actively reshaping overall strategy to mitigate the impact. As a result of this, we had already, as mentioned before, we had approved the project for our upcoming manufacturing facility through our wholly owned subsidiary, Stylenest India Limited. This project includes three double wall production lines. As I mentioned before, two of these lines will be having commercial production by end of next month and the third one by end of Q2 FY 2027. This investment is being financed through a mix of equity, debt, and internal accruals. This expansion does reinforce our commitment to Make in India and will also, in the medium to long run, enhance cost efficiency, ensure compliance with BIS, and strengthen our supply chain, which can deal with issues such as the West Asia crisis more effectively. During the last year, FY 2026, the company did strengthen its focus on cost discipline to improve operating efficiency. Expenditure on advertising and sales promotion remained controlled with a marginal increase from INR 80 crores, approximately INR 87 crores to approximately INR 88 crores. Power and fuel costs saw a sharp reduction, falling from INR 82.4 crores to INR 78 crores. The reason I'm saying that sharp is that's in spite of the high cost increases per unit, which got impacted in the last quarter. The company is further investing INR 75 crore towards setting up a 20-megawatt ground-mounted solar plant with a battery energy storage system, which will further reduce the overall power cost. The same is expected to be commissioned in this quarter, Q1 FY 2027. The phase III implementation of solar, which adds to the first two phases, will take care of about 61% of the overall power requirements of the company. In May 2025, the Government of India notified the Safety of Household, Commercial, and Similar Electrical Appliances (Quality Control) Order, 2025, making a significant step towards enhancing consumer safety, quality assurance, and market regulation. Earlier effective 19 March 2026, this order mandates BIS certification for a broad range of electrical appliances, including coffee makers, and cooking ranges, hobs, ovens, and similar appliances. Recently in QCO 2026, the implementation timelines have been extended to 1st October 2026 from its trial date, I think sometime in March. Accordingly, the company has built up advanced inventory to mitigate potential sales disruptions, as non-certified products will not be permitted for sale in India beyond the prescribed timelines. I don't think this QIS or the QCO rather, will have as much of an impact, or any impact, compared to Hydra because the company is very well-placed to switch from imports to local sourcing for these product categories. Between FY 2018 and FY 2026, the company has delivered strong and consistent growth, with the revenues recording a CAGR of 21.4% and EBITDA expanding at a faster 29.4%. That's over a period of eight years. This reflects operating leverage and improved profitability. Since the acquisition of Larah in 2016, revenues there increased from INR 48 crores to INR 412 crores in FY 2026, translating into a 24% CAGR. In parallel, the non-glassware portfolio has scaled from INR 23 crores in FY 2017 to INR 464 crores in FY 2026, achieving a 39.6% CAGR. Both of these points underscore the company's ability to successfully grow into new product areas and create long-term value. India's shift from plastic to glass is not just a material transition but a meaningful behavioral change driven by rising health awareness and evolving lifestyles. Consumers today are increasingly conscious about chemical leaching, hygiene, stains, and odors associated with plastics, especially for daily food consumption outside the home. As a result, glass, particularly borosilicate glass, is becoming the preferred choice for office lunches, travel, fitness-led routines, and modern kitchens due to its safety, non-reactive properties, and hygiene benefits. In this evolving category, Borosil is well-positioned given its strong brand trust, glass expertise, and products specifically designed for everyday Indian usage. A cornerstone of Borosil's long-term strategy is its strong Make in India commitment. In addition to operating opalware furnaces of 84 tons per day and a 25 -ton-per-day borosilicate glassware plant, we are now starting a new facility for vacuum-insulated stainless steel bottles, flasks, and containers and also expansion of our injection molding operations for the plastic lids that go on our lunchboxes. Last year, in the last quarter, the board also approved two further expansion projects. One is to expand our furnace capacity from 25 tons per day to 32 tons per day with the addition of a third forming line. This will likely happen in the year 2027 or 2028, or depending on when the furnace life is over. The cost of this CapEx is roughly INR 50 crores. This will help company remove capacity bottlenecks and will further improve operating efficiencies. It'll also help further improve product diversification and portfolio expansion. The second CapEx was the glassware manufacturing at Bharuch, where the company will produce through its outsourced vendor drinking glasses, glass storage jars, jugs, and bottles. That is from the Borosil Scientific's Bharuch plant. The company is looking at a high growth potential in these categories. We expect this facility to be commenced by the end of Q3 FY 2027 with a CapEx of approximately INR 42 crores. Borosil's strong omni-channel presence spanning all the channels, including trade, retail, modern retail, e-commerce, and B2B, have driven deeper market penetration with availability in over 24,000 retail outlets. We have built a well-diversified revenue base serving both urban consumers and global markets. I remain very bullish on the organizational capabilities. Last year was a tougher year on account of the impact of supply chain from Hydra, and then the last quarter, the West Asia crisis further enhanced that challenge. These are short-term issues, and we expect fully that our long-term growth trajectory as well as from a revenue perspective as well as from operating profit perspective, will continue unabated as it has for the last eight or nine years. With that, I'd like to now open the floor to questions that you may ask. Thank you very much. We will now begin the question and answer session. The first question is from the line of Mr. Jeeval Shah from VVD Asset Managers. Please go ahead. Thank you for the opportunity. I have two questions from my side. I just wanted to know that in my view, borosilicate glass products are generally considered higher -margin products. However, despite the ramp-up in the borosilicate glass facility, gross margins remain lower in this quarter as compared to Q4 FY 2025. Could you help us understand the key reasons behind the margin pressure? As far as glass is concerned, there's a lot of dumping from China, and China is dumping on virtually in every category. While, of course, Borosil as a brand and as a product portfolio is able to charge some premium on the dump prices, but at the end of the day, it's not in isolation. That has been a challenge and continues to be a challenge. I think, notwithstanding that, with trying to improve our product mix, we're trying to fight that situation, but that is an issue that unfortunately exists for us. The other thing is, of course, with the West Asia crisis, the cost of gas and other inputs, which are the raw materials and all have gone up, especially in Q4, which has also impacted materially the margins. As a result of that, we had to take a price increase. There’s always a lag impact on the price increase playing out. Okay. The second one is, could you provide us some guidance on the expected cost-saving benefits from the solar plant in FY 2027? I think the CFO can do that. Anand, can you take that question? That is estimated to be about INR 28 crores at EBITDA level for FY 2027. That's right. Mr. Jeeval Shah. Thank you. Thank you. The next question is from Mr. Naveen from ITUS Capital. Please go ahead. Hi, team, can you hear me? Yes, we can. T hanks a lot for the opportunity. Just wanted to touch upon the opalware segment alone. Just wanted to understand what kind of utilization you are working on, like any expected CapEx and your general market outlook and all that stuff. Could you just help me with that? Opalware look has been on a-- We're close to 100%; I would say between 90% and 95% utilization, depending on the month. Now, given the category, last year has been a bit; as far as opalware is concerned, the market has slowed down. In fact, there has been, I would say, less demand in the market, or, let me put it another way, the demand growth has not been as robust as it has been in the years prior. Our lookout is for debottlenecking at the moment. We will be expanding capacity to some extent by debottlenecking some of our production processes further, as we have been doing over the last few years. At the moment, we are not considering any major CapEx on opalware, which meaning to putting a third line or anything. Rather, there are other categories where we believe the growth can be much faster, and we'll be focusing our attention on other categories for which already we have announced CapEx, which I covered earlier. Got it. Just wanted to understand. The category itself is like INR 1,350 crores, and we ourselves are nearly a third of the market by top line, right? Yes. That's right. I just wanted to understand your read on the general space. Competition outlook: How exactly do we see that? Frankly speaking, I think what we've done as an industry, the product has been around for 10, 12 years, maybe 20 years. I think what we need to do more or better as an industry is to get something new and differentiated in the industry to create, again, a wow factor for customers that something better has come. That's something we are working on with our R&D center. Until that comes, I think overall, in general, there is muted customer sentiment across the board. I'm not just talking about kitchen. There has been muted customer sentiment. There is crisis. I think unless we come up with something exciting, it's going to be challenging to spark substantial growth in this category. I'm just being honest here. We are working on that. At the moment, for the next year or so, I think we are going to expect to see muted growth. Hopefully our R&D efforts will play off and lead to something nice, which can then re-ignite this category. Got it. Yeah. All the best for the rest of the year. Thanks a lot. That's it from my side. Thank you. Thank you. The next question is from Utkarsh Nopany from Anand Rathi. Please go ahead. Hi. Good evening, sir. Sir, my first question is related to your glassware segment margin. If we see gas prices in India has gone up by more than 2.5 times what it was there before the war, which we believe is not the case in China. Wanted to know whether our glassware margin is likely to remain under pressure till the time the gas prices remain high in India. O f course. I mean, two and a half times is substantial. I do believe China's also gone up. I don't think it's not gone up. It may not have gone up two and a half times, but it's definitely maybe doubled. I think the differential may be there but may not be that substantial. I do believe China has to increase prices also. Of course, the rupee depreciation in that sense helps us, because it also becomes slightly more expensive to import. Overall, yes, China is a major irritant and challenge because they routinely are selling products lower than the cost of production and dumping because of overcapacity or whatever reason they may have. That will over a period of time, definitely cause some pressure on the margins. We can only keep working on innovation and petitioning the government to create a level playing field, which we are trying to do. Okay. sir, what would the status of anti-dumping duty investigation, which is going on silicate glass product category? Rough timeline by when any outcome is likely to come on this front? Whether the investigation also cover the soda-lime glass or it only covers the borosilicate glass? As far as our application is concerned, it's only for borosilicate glass. I do believe there may be something else in the market for soda-lime glass. There's nothing to do with us. As far as timeline is concerned, I think Mr. Rajesh Kumar Chaudhary may have an update. Rajesh, are you on the call? It was the ministry at present, and they are doing their investigation. We hope that at least it will take six to nine months from now. Okay. Sir, how is the competitive intensity in opalware at the moment? What we are hearing when we are talking to the dealers: they are saying that La Opala has become pretty aggressive in the recent past by coming out with a more aggressive pricing structure. Whether this is likely to result into margin pressure in this category in FY 2027 over FY 2026. Qualitatively, if you can guide on the margin front for the opalware segment for FY 2027, sir. Frankly, I don't agree with that view, primarily because there's been high competition in this sector for the last 10 years. Different brands get aggressive at different periods of time. It's never a status quo, or there's always something going on. I don't believe that there's any per se pressure on pricing. There is pressure on cost, no doubt, and again, because of the abnormal increase in gas prices. To transmit that increase in cost on to the end customer will take a couple of quarters, at least one, maybe two quarters. To that extent, there may be some margin pressure in the short run. I don't believe that that's something that is because of competition per se. It's more because to get customers to accept substantially higher pricing, let's say 8%-10%, which is what price increase we have taken, that takes a bit of time. Okay. Sir, just continuing with this point, so how much price hike we have taken in glassware and opalware and how much we should —? 8%-10% How much we should ideally take to cover that entire cost inflation pressure point? That should be enough to cover the entire cost inflation pressure. Okay. Thanks a lot, sir. Thank you. A reminder to all participants, please limit your questions to two per participant. Should you have a follow-up question, we will request you to rejoin the queue. The next question is from the line of Mr. Bhavin Rupani from Investec. Please go ahead. H i. Thanks for the opportunity. The first question related to glassware. Sir, how should one understand incremental growth in case of glassware from here on? Since I understand that we have been running at almost 90% utilization and an incremental capacity is only likely to come after a year or two. I just wanted some sense on that. Glassware is a very vast category. As I mentioned that we have the project of bottles, jugs, and jars, which will be implemented by the end of this year itself, and that would aid reasonable capacity availability at least for the market. The other question on the pressware, you know, because when we started production, the sales were not as fast as the production capacity. We do have reasonable amounts of inventory. If the market supports, we can grow even without growing the production for at least a year and a half or two because of the inventories that we are carrying today. Glassware growth from a supply chain perspective are not a challenge. The growth only from a demand perspective is what we have to look out for. If the growth happens from a demand perspective, then by the time we are kind of low on inventory, by that time, we'll have the new capacity. We've planned it, I would say, relatively well. I think we can deliver; just the market has to support. All right. Sir, second question is related to CapEx. Apart from incremental CapEx announced for glassware and the Bharuch plant, are we planning anything in case of kitchen appliances because BIS is kicking in soon? Along with this, if you can call out the FY 2027 CapEx number. Thanks. These two CapEx, which I already said earlier, is about INR 90+ crores. There's maintenance CapEx of roughly INR 20 crores, INR 25 crores a year, which will continue. Then there's many CapEx under discussion, nothing further which is approved. Although we can see in the non-glassware space, more CapEx potential on the horizon, which can be reasonably sized because we see pretty And like you mentioned, even potentially in appliances, because we see very good market prospects in the future in the non-glassware space as well. I can only share that once it's approved by the board, but at the moment, I can only say there's quite a lot under discussion. Obviously, in the short run, things have been a bit unstable, but we do expect things to improve, so we will certainly be doing more CapEx in the future. Got it. Clear, sir. I fall back in queue. I have no questions. Thank you. The next question is from Resham Jain from VVD Asset Managers. Please go ahead. Hi. Good afternoon. I have a few questions. First is with respect to the thing which you mentioned about China pressure in borosilicate. Is that correct? Yeah. I do. Okay. Even after 16, 17% rupee depreciation, you see that challenge? In the last one year, we have seen almost 16% rupee depreciation. Despite that, you are seeing that challenge now? The rupee depreciation cannot be seen in isolation. There's also been a massive cost increase. Earlier somebody also asked about the gas. China is a fairly opaque economy, so it's hard to know exactly what their costs have gone up. But from my sources, my understanding is that their costs of gas per unit have not gone up as much as ours. How much is the difference? I really don't know. China also has various other ways to kind of subsidize exports. It's hard to understand whether the costs get counted on or not. Obviously, the rupee depreciation offsets this, but to what extent, I don't know because the pricing we are seeing in terms of imports in the market or from China is still quite low. We will see how that As far as FOB dollar terms are concerned, the rupee is benefiting us, but it's not to the 16, 17% kind of level as you indicated because our costs also have gone up to a reasonable amount. Okay. The second question, related question, is with respect to gas cost. Gas is out of overall power and fuel of INR 80 odd crores. I presume that gas costs will be like INR 20-25 crores out of that. Anand, can you help here? One second. Yeah, we'll just come back to you. It needs to be a small amount. Yeah. That must have gone up by like INR 30 crore extra. Yeah. That's roughly INR 30 crores. That's right. For all the three furnaces together. Okay. Got it. The second question is from the working capital perspective. Last year we said that our working capital has gone up mainly because we have kept a higher inventory of Hydra range given that there was this quality control order. This year also, given that Hydra sales itself has not happened, so I presume that you must have already consummated most of the Hydra inventory. We see that overall inventory has further gone up, and which is in a way impacting your overall ROCE, which you have mentioned in your presentation as well. We've had back-to-back and also mentioned the call, QCO implementations. Hydra inventory, whatever we built up last year, is more or less all depleted. On the flip side, we had to build up a lot of appliance inventory this year because of these QCOs have come on a large range of appliances. In addition to that, as I mentioned before, the last two years we have been producing much more on our borosilicate glass furnace than we have been selling because the capacity of the furnace is large, which we have set up. That's needed, because there's a certain minimum size of the furnace, below which it's not efficient. That's also contributed to the increase of inventory. I think the appliances, again, is a one-off case, should correct itself. Glassware, if the growth continues or we are able to grow more the market, then we should deplete these inventories at some point of time. At some point, meaning in the near future, hopefully. Obviously, if the anti-dumping comes from China, that will certainly improve our prospects substantially. That's still to be seen. Either way, we have to be independent of policy from the government. We have to work with expanding our product range and giving more options to the customers, which will hopefully consume that. Overall, yes, it's been two years consecutive of inventory growth, but I do see a stop to that, hopefully this year itself. Then from next year, we should see a reversal of that, because being more Make in India should logically give us leverage to reduce inventory, not have to increase it. Okay, understood. Thank you. All the best. Thank you. Thank you. you. The next question is from Mr. Jasdeep from Clockvine Capital. Please go ahead. Hi, sir. Thanks for taking my question. Sir, what was the impact of furnace shutdown on sales on both segments of glassware? No, there was no impact because we have enough inventory. The shutdown was for a few days, and we have enough inventory to kind of capture that. There was zero impact of the shutdown on sales. There was an impact on costs and the fixed cost absorption when the plant was, say, suspended. On the margin, there was definitely an impact, but not on the sales. Got it. Basically, your glass inventory also went down, but still, you had to deploy more money into inventory for the year. No, glass inventory didn't go down. It went up because we've not sold the entire production capacity of the furnace. Even with the small shutdown we had for a few days, we didn't sell the entire capacity of the furnace last year. Got it. Shreevar Kheruka, sometime back you told me that your company is the only company to have set up borosilicate manufacturing plant in India. That's right. That remains to be the case even now or other companies. That's a fact. We are the only guys. I'm pretty sure there's nobody else. Certainly, nobody has started production. If somebody's planning something, I don't know; nobody's started production. Got it. Basically, China is hurting the borosilicate glass market through brands which are sourcing from China instead of manufacturing in India. Exactly. Is that right? That's the right way to look at it. Exactly, yeah. Got it. Basically, the cost edge that you wanted to have by having your own manufacturing facility has not materialized. In fact, it has become an adverse scenario for Borosil versus your competition. I can't say. It's always been like that. It's not something which is new. By the way, this is the story in almost all markets where products are coming from China, where in the last couple of years, China has enhanced dumping. Okay. I guess it's widely available in the news, and it's not just for our industry; it's for almost every industry in India. That is a fact, and we would love that we get this support, or let's say, even playing field from the government. Got it. What was the increase in fuel cost that you've had to bear on account of this crisis? As Anand mentioned, the direct cost is INR 30 crores or INR 30-35 crores per annum. Now, this is, again, it's a evolving kind of number because it's changing every week. If you extrapolate what is current, it's INR 30-35 crores per annum. There's an indirect impact also, right? Because, say, crude oil is used for packaging materials, or crude oil derivatives are used for packaging materials, so that's gone up. Obviously, as diesel prices will go up, then that will impact more and more of the freight inward and outward and inflation and salaries and so on. There's so many second and third -order impacts. If you call direct impact, then that's what it is. Direct impact is basically your gas cost used to be INR 20 crores, that has increased to INR 35 crores. Did I get it right? It increased to 50. Oh, INR 20 crore has increased to INR 50 crore. Two and a half times. Got it. I thought you would use small amount of gas because most of your furnaces are electric furnaces, right? 20 crores is not a big amount of gas. Okay. The value has gone up because of the cost per unit has gone up. Got it. That's all from my side, Shreevar. Thank you. Bye. Thanks, Jasdeep. Thank you. The next question is from Anup Rathi from Anand Rathi. Please go ahead. H i, sir. My first question is, now that the vacuum bottles will be manufactured in-house, so how much margin expansion are we expecting over the trading margins? See, there it's not like a switch that you flip on, and the day you start manufacturing, the margin expansion happens. It takes six months to 12 months probably to stabilize. Initially, our losses are higher. Exact numbers, I guess, will be known later. My sense is on the gross margin side, 10% at least; we should get an increase; otherwise there's no benefit of manufacturing in India. I don't think that will be realized in the first couple of quarters. Okay. sir, in one of the interviews, you mentioned that we lost INR 100 crore of Hyderabad sales in FY 2026. Yeah. Is it correct that it was lost entirely in H2 FY 2026 because we had sufficient inventory in H1? No, even in first half there was a loss. It may not have been so high because of the inventory, as you mentioned, but there was definitely some loss. I can't say it was zero for the first half. Okay. Okay, sir. That's it from me. Thank you. Thank you. The next question is from the line of Sagnik Sarkar from SKP Securities. Please go ahead. T hanks for the opportunity. I have a couple of questions. The first question is on the glassware business. Out of the INR 295 crore sales in the glassware business, what percentage would be our own manufacturing? Now, if we define our own manufacturing as just pressware, it's roughly two-third. Roughly? Two-third. Two-thirds would be Borosil Limited manufacturing. Okay. 66% own manufacturing, and 34% would be outsourced. Yes. Yeah. Okay. On the CapEx front, like you mentioned, about INR 90 crores of CapEx. For FY 2027, the CapEx number would be around INR 110 crores. Is that correct? Yeah, 110, 115. Broadly, yes. Maybe it can go up depending on more projects through the year, but at the moment, yes, that's correct. Okay. For the manufacturing percentage that you mentioned, two-third, what percentage it would be in FY 2027? If you could guide us on the percentage terms. I don't know. I don't think that'll change much. Okay This year. Okay. Like I said, if we get policy support, it'll go up for sure. If we don't, then it stays similar. Okay. Thank you. Thank you. The next question is from as an individual investor. Please go ahead. Thank you for the opportunity. My question is on debt. Debt has increased about INR 60 crores, I guess, in the last two quarters to about INR 100 crores, and you've got some planned CapEx already approved by the board, plus potentially something more in the future. Generally, in the past you've been quite cautious on debt, so I don't know if you could share what your thoughts on fundraising are, whether it will be more debt for the time being or you might raise more equity. Not much debt. It may go up in the short run, but we also have, I mentioned our operating cash flow was about INR 120 crore. If you look at CapEx this year, we're looking at something similar. We should definitely draw down inventory of appliances and all as mentioned before. I don't see any, and if in the short run, if there's some timing mismatch, debt may go up in the short run. We've been, I think, very cautious as it is. Even if it goes up by INR 100 crore. Sure. I think that's clear. We are reliant on the cash flow for funding entirely. Yeah. Second question, if you could just help understand a little bit our Borosil Glass manufacturing arrangement with Borosil Scientific? Yes. You mentioned in this presentation as well that the new production will be done on a cost-plus basis by BSL. Yes. We already have some production, which we had from BSL, which is probably equipment owned by BSL. If you could just give us some overview on what is the arrangement on manufacturing for our. Yeah Borosil. Firstly, it's an arm's length basis. We have chartered and cost accountants who look at the cost and on a cost plus a certain percent, which is approved by, I guess, it's a related party transaction, which is approved by shareholders on both sides. We do that, and then the cost itself, the definition, differs. Cases of assets are owned by BSL. In that case, the cost is factored in a certain. In some cases, the CapEx is done by BL, in which case, the cost obviously is lower for BSL. The auditors do that as per, say, the accounting standards. They look into that and we arrive at a cost-plus formula. I think if I'm not mistaken, right now it's cost plus 5%, which is the formula, but I may be slightly off, but I think it's roughly in that range. That's the transfer price at which BL buys from B. Obviously that plus will differ if the asset's owned by BL or it's owned by BSL, and the cost also may differ. It's not fully audited and reported to the board or audit committee on both sides, and audit committee gets into the detail of it, and then finally shareholders pass it. That's the way we do it. Is there a reason to maintain this sort of relationship? Is it possible to make it cleaner in terms of just moving all the assets to BSL? Yeah, that will substantially increase the cost of Borosil Limited. That's the issue. We have thought about that. Because the equipment in many cases is the same as already being used by BSL, we have to then double it and double the infrastructure, and it'll not be an immaterial increase in costs. Believe me, we've debated this, and it's in the interest of shareholders of both companies. Yes. Specifically for Borosil Limited, would have to again spend a lot more CapEx for actually return if we were to segregate it. BSL, they are able to sweat the asset, the same asset. They also get the benefit. Understood. Makes sense. It's like kind of a marginal thing compared to the overall size of the business, at least till now. If it's a large chunk, we'll have to obviously get back on the drawing board and relook at it. Right now, at the moment, it's less than 10% of the sales of BL. Yeah. Thank you for that. All the best for the company. Thank you. Thank you, ladies and gentlemen. We will take this as the last question. I now hand the conference over to management for closing comments. Over to you, sir. Well, thank you for all your interest in Borosil Limited. The last year has been a tough one. I do expect the next quarter or two, with the settling or still dredging lava, there to be some challenges in the short run. As I said, we are not stopping our growth and expansion plans because of that. We are doing this for decades and not for quarters. We are, as a team, fully committed to enhancing the revenue by 15%-20% year-on-year and achieving EBITDA of closer to 20 -odd% in the medium term, and we continue to work on that journey. Thank you for your support and patience and also your continued interest, and I look forward to seeing you next quarter. Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.