Ladies and gentlemen, good day and welcome to the Borosil Renewables Ltd Q1 FY26 Results Conference Call hosted by Axis Capital Ltd. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on a touchtone phone. Please note that this call is being recorded. With this, I now hand the conference over to Mr. Rohan Gheewala. Thank you, and over to you, sir. Thank you, Samia. Good evening, everyone. On behalf of Axis Capital, I'm pleased to welcome you all to the Q1 FY26 Earnings Conference Call of Borosil Renewables Ltd. We have the past management represented by Mr. P.K. Kheruka, Executive Chairman, Mr. Shreevar Kheruka, Vice Chairman, Mr. Ashok Jain, Whole-time Director, Mr. Sunil Roongta, Whole-time Director and Chief Financial Officer, and Mr. Balesh Talapady, VP, Investor Relations. We will begin with the opening remarks from the management, followed by an interactive Q&A session. Thank you, and over to you, sir. Okay. Good afternoon, everyone. I'm Shreevar Kheruka here, and I welcome you all to the Borosil Renewables Q1 FY26 Investor Call. The standalone financial results for the quarter ended 30th June 2025 were approved by the Board of BRL on Wednesday, 23rd July. Our results and an updated presentation have been sent to the stock exchange and have also been uploaded to the company's website. We will now discuss the operations of our company on a standalone basis. First, I would like to update you on some important events which have happened recently. The Board has approved a preferential issue of 7,093,824 equity shares of the company for an amount of INR 379.52 crores to eligible investors who have given exceptional interest and whose documents were found compliant. The share issue was subject to the approval of members of the EOGM to be held on 14th August 2025, as well as the stock exchanges. You will recall that the company had done an issue with a warrant of INR 600 crores to park-f inance the 500 TPD expansion of INR 675 crores in February 2025, against which it has received applications for INR 417 crores. The project size and cost were later revised to 600 TPD, and the CapEx was increased to INR 950 crores. The additional issues will be applied for the CapEx and other objects as per the objects on the issues. The revised range of finance will include INR 650 crores from equity and income accrual and INR 300 crores of debt. The other important developments relate to the filing of bankruptcy by the German step-down subsidiaries of BRL on 4th July 2025 due to the absence of clear indications of demand recovery in the near future in Europe, as well as possible liquidity issues. We had, in a previous call, indicated that the quarter had really had to be cooled down due to the paucity of demand and depreciated market conditions across the European Union. This was what we aimed to reduce losses. Since then, even despite our best expectations, there was no material improvement in the European markets which would allow GMB to resume the operations of its products. The company and GMB approached concerned authorities to get some quick measures in place to support the local industry. Unfortunately, nothing has been forthcoming, although policy-level announcements have been made in Europe in order to support the machine manufacturing. However, these announcements have not yet materialized into any specific policy action. Moreover, any policy action, if and when announced, will take considerable time to show any results in terms of the production of our customer, as the closed solar module plant will take some time to recharge. For the company, this would mean that we would need to have heavy continued losses without much hope of a substantial recovery. In the past few months, GMB also attempted to resume cold end operations by sourcing annealed glass with an idea to provide tempered glass for the leak. However, this too could not work out for many different reasons. As such, the company did not feel it prudent to continue funding the standing charges to the tune of INR 9 crore per month through its wholly owned subsidiary, Geosphere. For our company, this filing of insolvency of the subsidiary would arrest recurring losses and permit reallocation of capital and managing the focus towards the India operation, where we see a long-term potential and quality support. I would like to further inform you that Geosphere Glassworks GmbH, a wholly- owned subsidiary of the company, intimated that it is yet to receive the financial results of the first quarter from GMB, whose application for insolvency is currently in process in Germany as previously disclosed via our letter dated July 5, 2025. The affairs of GMB are now being managed by an administrator appointed by the Insolvency Court, who works as per prevailing German laws. Keeping in view that the administrator has been appointed recently, preparing financial results of GMB for the quarter ended June 30, 2025, is expected to take time, as communicated by GMB. Until these results are received by Geosphere, it cannot consolidate GMB's financials into its own financial results, and in turn, would not be able to provide consolidated financial results to the company. Due to our certainty and reasons as listed above, the company will be able to approve and submit its consolidated financial results for the quarter ended June 30, 2025, at a later date. Therefore, we are currently only discussing standalone results. Coming now to the performance, the company achieved sales of INR 332.26 crores versus INR 327.23 crores in the trading quarter and INR 241.82 crores in the same quarter last year. The company registered an absolute EBITDA of INR 92.53 crores, which corresponds to an EBITDA of 27.8%. This shows a quantum leap of 211% from INR 29.71 crores in the corresponding quarter, whereas the EBITDA stood at INR 37.03 crores in the preceding quarter. Sales rose by 37% during this period compared to the corresponding quarter last year, and the major increase has come from the increase of selling prices, as the average selling prices during the quarter increased to INR 138 per millimeter as compared to INR 105 per millimeter. This has led to an improvement in margins. The imposition of anti-dumping duties on imports of solar tempered glass from China and Vietnam in December 2024 has provided a great relief on the prices, which have now reverted back to where they were a few years ago. Exports amounted to INR 35.67 crores, accounting for 10.7% of the turnover, compared to INR 18.9 crores in the preceding quarter, when exports made 5.8% of the turnover. In view of the filing of insolvency by the stamped-out subsidiary GMB, it was considered necessary to estimate the value of net assets to assess whether and how much provision needs to be made against the exposure in GMB and Geosphere, although the outcome of the insolvency proceedings will only be known after a few quarters. Accordingly, based on the valuation confirmed by a valuer, GMB is not likely to need any surplus available for the company after paying off the outside liability. Hence, a provision for the entire exposure of INR 325.91 crores in the German subsidiary has been made in the account as a one-time loss. However, this one-time provision will ensure that there's no continued drag on the consolidated results and performance, and the ROCE and EPS will substantially improve. The company is confident to achieve good improvement both in sales and EBITDA numbers for the year on the back of better performance of the Indian operations as selling prices maintain an upward bias, in addition to cost-saving measures and the stopping of the drag of losses from its German operations. Our work on the expansion project is in progress, and we expect the project to be commissioned by the third quarter of financial year 2026-2027. The domestic demand continues to be robust. Manufacturing capacity for solar modules has already reached + 90 gigawatts and is expected to rise to 150 gigawatts by March 2027. The company is also seeing its highest ever solar installation at 25 gigawatts in 2024-25, against 15 gigawatts during the previous year, which corresponds to a 60% increase. We estimate the domestic demand to be about 50 gigawatts in the current year. Use of locally produced modules has risen sharply after the implementation of ALMM mechanism from April 2024, which is leading to increased demand for all components, including solar glass. The present solar glass capacity in the country is 2,300 tons per day, that is 15 gigawatts. Another 12 gigawatts capacity is getting commissioned by the end of FY 2026. With the expected current demand of about 50 gigawatts for the domestic installation, imports are occupying about 70% share of the production, leading to hope for capacity addition and import substitution. That is the area we are planning to play when our new project comes on screen. Therefore, we see good prospects for the company over the next year, looking at the growth in the sector, robust demand, and stable selling prices of solar glass. Just to round out the sectoral outlook, renewable gas prices transformed the global power landscape by 2030. India is driving this evolution. According to the International Energy Agency, over 5,500 gigawatts of new renewable energy capacity can be added worldwide by 2030, equivalent to the current power capacity of China, the E.U., India, and the U.S. combined. Solar PV will dominate this, accounting for 80% of global renewables capacity growth. This growth will come from both large- scale utility projects and rapidly rising rooftop installations. Therefore, we see the future of solar very bright, and India's place in the whole solar ecosystem as strong and with a very positive outlook. I thank you for your patience and listening to me. I would now like to open the floor to any questions that you may have. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use hands up while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Jayshree Bajaj from Trinetra Asset Managers. Please go ahead. Hello, sir. Am I audible? Yes. Yeah. Thanks for the opportunity. My question is, the Board has approved the further setting up of two new furnaces, adding 600 TPD with the current capacity. Can you provide more details for the timeline and specific milestones for this extension, especially regarding land acquisition and all? Yeah. As far as, you know, the project is concerned, this is happening at the current location. It's a brownfield expansion, and whatever land acquisition needed to happen has already happened. Therefore, there is no risk of that being a delaying factor. The project itself, as I already mentioned, is likely to be commissioned in the October to December quarter of 2026. At the moment, we don't see any reason for delaying beyond that. I think, I hope that answers your question. Okay. As you stated that the Germany plant is going to remain unfeasible in the longer term, what is the strategic reason for its European presence, particularly for the GMB plants? Yeah, you know, the plant has been declared insolvent rather than the company has been declared insolvent. Now there's an insolvency process, which is managed by a third party, which is an administrator under German law. Currently, they will follow their own process. Even though we are shareholders, we have very Ltd say in these quarters. It totally depends on what they do and get out of the solar field. As far as our customers are concerned, we are still continuing to sell our customers in Europe from our Indian operations, and that will continue. Okay, sir. My last question is, like the standalone EBITDA margin has improved for this quarter. Is there any revised EBITDA margin for the FY 2026? I think there will be some. As I mentioned, the pricing will be improving somewhat, you know, every month there's a slight increase. On the margins, there will be somewhat a little bit better margin than what we had in this quarter. We only have 28%, so a reasonably good margin, and maybe a couple of percent more we can expect. Thank you. The next question comes from the line of Swanand Mittal from MRF. Please go ahead. Hello. Hello. Yes, yes. yes. Sir, thank you for the opportunity. I have three questions lined up. The first question being, in the last con call, we had guided for approximately the prices of, you know, the glass, active price being approximately at least INR 135 per mm, but we have exceeded it by testing INR 138 per mm. If you could give any color that as per the industry in the coming financial year, are we expecting any further price increase? As soon as the watch rings, if there is any price increase, how will it impact the EBITDA margins for the FY? Lastly, as a third question, basis the above EBITDA margins, can we guide that at least the tax conversion for that should be upwards of 75%- 80% on a quarterly basis? See, as far as pricing is concerned, it's only, I was an estimate. Maybe ± 5% on the pricing, which may be more than whatever it's suggested. If we have guided INR 135 and come out at INR 138, I don't think that there's a material difference there. It depends on product mix. It depends on, you know, value addition sometimes that we do for our customers for the many reasons. Broadly, yes, there may be somewhat an improvement in pricing, but I think it's not going to be dramatic. Therefore, the increase in pricing will definitely add to EBITDA because that's fair. I'm going to be guided on margins. I think that could take care of that question. All of that EBITDA basically comes into cash conversion. I mean, I think 75%-80% is absolutely a fair number. Okay. Yeah. Yeah. Okay. Thank you, sir. Thank you. Thank you. The next question comes from the line of Raman from Sequent Investments. Please go ahead. Hello, sir. Can you hear me? Yes, sir. You're audible. In terms of current and average selling price, how will the selling price improve post ADD imposed on Vietnam by Inda comes into place? We already indicated the current average selling price which has been achieved during the quarter and also indicated that a couple of basis points it can actually go up in the coming quarters. Anti-dumping duties are valid for five years, so we should see stable pricing. Okay. How much upside are you expecting post, I guess, probably after a year of implementation? Duties are already implemented, and the prices are already up. I mean, the increase has already taken place in prices. Okay, sir. Sir, my second question is, what is the domestic market size with respect to solar and glass? I also wanted to understand the unit economics. I mean, from the presentation, I think can we say that 150 tons of solar glass is required per gigawatts? Yeah, you're estimating right. It's almost around that, 150 tons per day from the perspective of gigawatts conversion. Sir, what's the entire market, domestic market size of the solar glass manufacturing? Market size was mentioned in the opening remarks to be around 50 gigawatts of module production, which is the market. India is currently supplying about 15 gigawatts from the domestic production of glass, so the gap is about 35 gigawatts in terms of the availability of glass domestically. Oh, thank you, sir. Thank you. The next question comes from the line of Vivek Gupta, an investor. Please go ahead. Yeah, hi. Thanks for the opportunity. Congratulations for a good set of numbers. I have some basic questions. This GMB acquisition, which was done, has proved to be a blunder. What precautions and what learning has management taken from this wrong acquisition? That's the first question. You want to take the second question also, or we reply to this? The second question is, management has proposed for an additional capacity of 600 tons per day. I was going through the presentation, and I understand that that capacity is to be on stream by December 2026. Is that the understanding that both the furnaces would be up in one go, or can we expect some like 300 tons per day on stream before December 2026 also? Yeah, so taking the second question first, we are planning to start the two furnaces one by one, which may have some gap of one or two months. Both the furnaces should be commissioned by the end of December 2026. That is the target. In the case of the first question regarding GMB, you know when the decision is made, it is based on certain situations and certain parameters. When we started to look at this opportunity in 2022 beginning, the EBITDA and the turnover was very good for this company. The brand and the quality was absolutely fantastic. We were all hoping that this acquisition will pay our way for our growth in the European and overseas markets. Things have not always worked out as per your plans and designs. That's what happened with us as well. In June 2023, just immediately after six to seven months of our takeover of the company, the imported Chinese modules started to be dumped in the European market. Almost 80 gigawatts of modules were dumped in a couple of months' time over there, which destroyed the local manufacturing. This is a very abnormal situation which we had to face. With the result, the customers started to disappear. The solar glass is made for the size and thickness and various parameters of requirement by the customer, each customer. These are very tailor-made items. Unless you have a customer and a demand, it is not easy to produce and keep in store. We were trying to tide over this situation by diverting our goods to other markets like Turkey, U.S.A., and even to sell in the European market at a cheaper price. Finally, the demand was not up to the mark, and we were not able to sell beyond 50% of the production. In glass furnaces, if you keep operating at a lower percentage, it doesn't work out. Ultimately, we had to cool down the furnace in January 2025. Finally, when the hopes of German policy intervention were dashed and there was nothing coming forward, we had taken a call. Ultimately, you know, to see that the management and the business is able to take call as per the necessity of the situation and move definitively in the direction in which the growth can be achieved and value addition for the stakeholders can be, this will ensure, despite facing this rough timeline. Okay, thank you. Thank you. The next question comes from the line of Sunny from IAS. Please go ahead. Sir, am I audible? Yes, sir. Sir, I have one question or two questions. First one is on GMB side. First, can we use the GMB equipment to do our CapEx in India? Yeah, some of the equipment which are post-glass furnacing equipment, like processing lines, are possible to use in India because they are doing the similar jobs. These were purchased recently in 2023 only. It is quite possible to buy and start using here. We have to do evaluation based on the alternate costing and alternate, say, equipment available from other sources. The possibility is there to use, but we will have to eventually evaluate what is good for the company in India to buy in terms of the next equipment. If we are to buy the German equipment, it will be under insolvency proceedings now, which is quite uncertain as of now. We can't depend whether we can get some equipment from there and then budget it in our CapEx plan. Okay. The next question is, sir, can we see other EBITDA margin increase on a standalone basis? Yeah, that was already said by our Vice Chairman in the opening remarks that a couple of points% can actually go up because there are continuous efforts to improve the efficiency. Also, the price increase by a few basis points is still possible to get. Yes, EBITDA can still go up beyond this level. Thanks for any guidance for any EBITDA margins. We are not giving any specific guidance, but this could be enough for you to understand how much it could be. Okay, sir. Thank you. Thank you. The next question comes from the line of Nidhi Shah from ICICI Securities. Please go ahead. Thank you so much for taking my question. Fortunately, the depreciation this quarter on a quarter-to-quarter basis is slightly lower. Is there any reason on the standalone basis? Is there any reason why the depreciation? Yes, actually, the initial furnace which we had set up a long back in 2010, that is completely depreciated now. The depreciation of that first unit has started to come in the account, which is why the depreciation has gone down, not for any other reason. Got it. Secondly, sir, you mentioned that you realized INR 138 per square meter in the quarter. Now, post the duties, what is the landing price of the Chinese glass in the market? Is it at similar levels, or is it higher? Landing price from China is close to INR 145 per square meter, and our prices are close to that number only. All right. Thank you so much, sir. Thank you. The next question comes from the line of Akshay Malhotra from HSBC. Please go ahead. Thanks for the opportunity. Congratulations on a good set of numbers. I had a couple of questions. Starting with the first one on the European subsidiary, I see that you provided a provision in the book of account. We wanted to understand what's the monthly stats with respect to the disclosure of the subsidiary. Secondly, when do you expect this to close, and do we have any additional liabilities there in that subsidiary? That's the first thing. This insolvency has been filed by the Managing Director of the unit over there, which is after the assessment of the cash flow situation, the order situation, and business scenario of the company. Under the provisions of German law, he's the person who is responsible to report to the court that if the liquidity is not available, then he should go and file for the insolvency. He has gone and done it because there was no more funding available from the shareholders, and the business was not looking to start again in terms of the cash flow generation. After having filed for the insolvency, the shareholders are actually not in control of the units or company, and they are outsiders from the perspective of court proceedings. We do not have any control, and since we do not have any control, we do not have any liability to incur further expenses on the company. All the expenses are to be managed by the administrator who is appointed by the court. He will be taking necessary steps, and he will be submitting necessary plans to the court as to what can be done about the company, whether a sale of the business is possible or a sale of assets is possible, or whatever steps he suggests the court will be able to decide after he submits his report. From the perspective of Borosil, there will not be any additional expenses or any additional losses on account of German operations going forward. There are no additional liabilities expected on us because what we feel is that, or what we are told by our lawyers over there, is that all the liabilities will fall to the company. In the sense, there are no outside creditors except for the employees who are largely paid up to the date, but the severance pay has to be paid to them, and a government grant, which is outstanding in the books of the company, which is to be settled, if they claim. These are the major liabilities which need to be settled under the insolvency proceedings now. Very clear, sir. Do you have, can you put a broad number to what these external liabilities could be, the two that you mentioned to be employed in the line of? Based on whatever estimate we have, it could be close to INR 120 crores- INR 125 crores. [crosstalk] This will not be coming on to Borosil because there are assets available in the company. Once the liquidators or the courts decide to deal with the assets and realize money, they will settle those liabilities. In case they are able to realize less amounts, then less amount will be paid to them. Liability will not travel to us. Okay. You got it. I think you've mentioned a couple of times about the EBITDA margin improvement and a couple of percentage points. I just wanted to understand similarly on what kind of movement on these raw material prices are you seeing, and is there any more room to generate more efficiencies in the business? Raw material prices are, for the last one or two quarters, stable except for one item which is, which is risen in the past, but now it is under control, imported item. In terms of the other cost optimization which we are attempting, we have done some work on the coatings, and also we are doing some, we have invested money into our own solar-wind hybrid projects, which will give further savings. These two together should take in about 1.5%- 2% savings in the percentage terms of the EBITDA. Got it. All right, yes. Also, are you evaluating more export opportunities from here in light of, you know, more tariffs on the Chinese then? I think the major area which is becoming addressable right now is the U.S.A. market because some customers who were not willing to buy earlier because of the price reasons have started to place orders or s end their inquiries. That is where a slight increase is possible. It's not material enough, and the domestic prices are fairly decent now. There is no real, real urge to increase exports because the price in exports in the U.S. markets could be as prevailing in India only and nothing better. European prices are a little better compared to India. Got it, sir. My last question is, on the capacity front, if I understand correctly, the initial plan earlier was to add about 1,000 TPD capacity. According to my understanding, the line is lowered down to 600 TPD. On the commissioning front, as you've mentioned, December 2026 is where these two furnaces will commission. What is the time it will take to stabilize these fully? Initially, the project was approved for 1,100 tons, I think, long back. After the anti-dumping duty was discontinued in August 2022, we had to scale it down because cash transaction had reduced by that time. We then brought it to 500 tons project. Once we scouted for the equipment and started inquiring with the various suppliers, we figured out that even 600 tons can be achieved in the similar equipment and similar furnaces. We've gone ahead and increased the size to 600 tons per day because the market is available. When we did the revised estimate, the figure came to INR 950 crore, which included certain items of expenses which we had not budgeted earlier. Now we think 600 tons project at INR 950 crores. In terms of the commissioning, we have targeted December 2026, which is what we want to maintain. If we can do it better, then we'll see. Okay. I just wanted to understand when we can fully stabilize the, or do you think December 2026 is the full stabilized standpoint? December is commissioning, stabilizing may take another one or two months. That's how we may say by at least March, we should have the stable production, commercial production. Okay. Great. Very clear, sir. Thank you so much, and good luck. Thank you. The next question comes from the line of Nikhil Gada from Abakkus AMC. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. My first question is with regards to our volume. I understand that we are more or less maxing out our plan. What kind of volume growth do we envisage, at least for FY 2026 and maybe for FY 2027 before we pull fit our new plan? In the current quarter, we had about 6% volume loss compared to the corresponding quarter last year. I think for the year as a whole, we should be able to maintain 6% - 8% growth compared to the last completed financial year. 6% - 8% is something that is possible in the current financial year. Although we are trying for a higher number, this much realistically we can face. it safe to say that post that first half of FY 2027, we should be a flattish sort of volume? Sorry, can you repeat your question? Same thing. Post that, first half FY 2027, we should expect volume to be flattish because we will not have enough capacity? We will keep on optimizing the processes and certain equipment adjustments, but there will not be any material opportunity to increase the volume by a significant number, maybe 2%, 3%, 4% at the most. I understood, sir. Sir, secondly, how is the current import scenario? Are we still seeing a decent amount of imports of solar glass, or are we seeing a very sharp correction now? Imports are quite high, as we mentioned in the call recently. The imports are close to 70% of the domestic demand as of now. Since the domestic production is limited, ultimately, the demand has been made by somebody else. It is the imports who are right now being offered in the market. As the domestic production grows, there should not be any difficulty in substituting with domestic production this import. Also, the market itself is growing. There is a continuous increase in the demand as such. Got it, sir. Just one last question. On the depreciation front, you sort of explained why the cost was lower. Should we expect this run rate to continue for the coming quarter for depreciation? Yes, of course. That could continue because that effect of one plant having been fully depreciated is already set in. The next impacts will only come after a few years. This is where pretty much you can expect in this number. Got it, sir. Just for one last question, is there any export mix that you have in mind, considering that we are seeing better prices in the European market? It is more opportunistic play as of now, although strategically, we want to be there in the export market to some extent. 10%- 15% is something what we would always like to do. Currently, we should expect at this between this range only, 10%- 15% only, because the domestic demand is so strong that we have to face the customers every day that they are after us for material. We can't just keep on diverting for exports and refusing the orders here. Understood. Is the working capital cycle similar to what we see in the export market as a domestic market? It's about 60 days credit is there, generally. In domestic, you may get a little earlier, maybe 35, 40 days. Domestic people are flush with funds, you may say, because of the very high profitability in the module business right now. Many of them may make advanced payments or they may put against cash discount or like that, which is not the case in the export market. Very clear, sir. Thank you so much for answering all my questions and all the questions. Thank you, Nikhil. Thank you. The next question comes from the line of Arvind Kothari from Niveshaay. Please go ahead. Thanks for the opportunity, sir. My only question was, sir, that the scale-down that we did of the CapEx, given the situation that we are seeing that all the module players are flushed with funds and they are all increasing capacity, wouldn't it warrant that now we go ahead for one CapEx at least of 500 tons-600 tons or you would take maybe two, three quarters to figure that out? Yeah, I think you can figure that out. We are also evaluating this. Maybe in the next one or two quarters, we'll have an answer for you. Okay. The evaluation would be based on the internal accruals that we are currently maybe, or there'll be debt equity mix that we have. I think there'll be some debt, but I don't think there are any further equity mix here. Debt and internal accruals. Got it. Sorry, this is the first half of the why was there a 6% decline in the volumes this quarter? No, no. There's an increase of 6%, I said, not decline. Okay. Yeah, this quarter, which was, but it was not at optimum capacity, right? This quarter increases to the corresponding quarter. From the trailing quarter, the volume has declined slightly. That is because we have gone to produce some well-weighted products, which are a specific requirement in the European market, like greenhouse gas houses, and some very specific demand of the BIPV sector and all where yield is low. Although we can run the furnaces to the full, the net production is low. That is more than offset by the higher prices. You will see that the average prices have gone up substantially, although the volume slightly declined. All in all, we have got a higher EBITDA compared to even the last quarter. This also suggests that the lower volumes were not very much responsible, in terms of any decline in the profitability or something like that. Volumes were low because of choice, not because of any other reason from the market, like decline or any other demand problem or anything there. Okay. Got it, sir. In case if we go for another CapEx, are the numbers going to be similar, or will we be having some advantages, in terms of maybe the CapEx being slightly lower this time for the furnaces because of the equipment that will be at spare capacity or no? We don't foresee any further advantage in terms of the CapEx now because the entire brownfield advantage is broadly covered now, except for the location part of it and the administrative part of it, which will still be some economics of scale because of the location. If we decide to do it on the same location, otherwise, from the CapEx point of view, there will not be any. Perfect. Thank you so much and all the best. Thank you. Thank you. The next question comes from the line of Kaushal Sharma from Equinox Capital Venture Private Ltd. Please go ahead. Hi, sir. Very good evening. Am I audible? Yes, sir. You're audible. Yeah. Sir, can you please tell me that we are currently having 1,000 TPD as of now? What kind of [audio distortion] The second question, yeah, in share. Yeah, we operate close to 95% of the furnace capacity. In some quarters, it could be slightly here and there, but on an average, 95% is there. Okay. Sir, as you said that we can see the better margin going forward, can we assume fair enough to assume that we get around 30%- 32% of estimated usage for the next two years because of the current development that is going on, like availability, manufacturing time, and maybe the impact? I think we have given enough indication. You may assess how much it should be, but a couple of%, if you add to 28%, it would come to 30% only. Okay. 28%- 30% is the sustainable margin, right? Yeah, yeah. Okay. Thank you, sir. Thank you for answering the question. Thank you. Thank you. Thank you. The next question comes from the line of Manik Bansal from Master Capital Services Ltd. Please go ahead. Hello. Hi, sir. Congratulations for a good set of numbers. My question is, how much capacity can we attribute to, say, 3 mm or 2 mm solar glass based on the current capacity of 1,000 tons per day or incrementa l CapEx of 600 tons per day? If you can number that. The market has been moving very swiftly to 2 mm solar glass. In India, also now, major consumption is 2 mm solar glass. Of course, the production of 2 mm solar glass has to go up eventually. As of now, we are close to 55% in 2 mm solar glass and 45% in 3.2 mm solar glass. In the longer term, I think we should be about 80% in 2 mm and 20% in 3.2 mm. As the demand will move, we will keep adjusting our ratio because the equipment are capable of producing alternatively 3.2 mm or 2 mm. Based on the demand market requirement, we have to keep changing our production thicknesses. Okay. Okay. In the incremental CapEx of 600, is it coming at 2 mm, right? Yeah. This INR 950 crores, which is being spent, will be completely for capable of converting entire glass into 2 mm. There's a full capacity available for grid printing, back glass and drilling of the back glass, just for 2 mm demand. Okay. As you said, the three correspondingly can be used for 3mm and 2 mm, the production line, right? How is it possible and what is the CapEx required? And whether the same is priced in incremental CapEx that we have announced? Within what time will it be converted? See, if you have to produce only 3.2 mm glass and you don't have to have the equipment which are additionally required, the CapEx would be lower to that extent. For this project, you might say almost INR 75 crores might be included because of 2 mm requirement. Barring that, there will not be much difference. Okay. The existing capacity of 1,000 tons per day can be fully converted to 2 mm on INR 75 crores of CapEx, right? This is what you meant? Yes. For the entire design, entire CapEx is planned to give a product like 2 mm. All the furnace parameters, everything is to be assured basis that. The additional processing lines will be only about this grinding line and all. Okay. My last question is on. The printing line, yeah. Okay. My last question is on quality. I did some research. The XYZ Solar's glass quality is currently the highest as you can see in the benchmark. What are the specifics that Borosil is seeking to match or achieve that product quality? Product quality is roughly about the same only for all the large companies, including Borosil. Customers are happy to use any products alternatively. In fact, the availability of glass from a domestic source is a major advantage for the local consumers because if the quality is the same and the glass is available locally, it becomes all the more easier for them to export it locally. We have an advantage in terms of offering the glass to our customers in India. Even the grid fencing or 2 mm solar glass or any other value addition which are required are also available from Borosil. It's absolutely matching the quality. Okay. Just to follow up on this, do Waaree source glass from you, from Borosil? Waaree is a very big company now, and the requirement is quite huge. We have a limited capacity, and we need to tend to almost 75, 80 customers. To provide a reasonable, decent quantity of glass to Waaree is difficult now. In the past, we have been supplying a significant volume to them. They were one of the top three buyers for us for many years. Now we are occasionally supplying very marginal quantities to them because it's always difficult to keep changing the BOM item on one single running line. If you have to create highest efficiencies from the module production line, you have to maintain the same parameters, same BOM, which becomes easy for the operators and plant people to get better efficiencies because now module businesses are very thin wastages and very tight control on the operating expenses. They don't want to lose on the changes and other things. It is difficult for us to provide a significant volume to Waaree because our supplies are very limited to them. Okay. Thank you. Thank you. Thank you. The next question comes from the line of Jagm ohan, an investor. Please go ahead. Hi, sir. First of all, thanks for providing the opportunity. My first question is, what is the current capacity utilization on the tonnage basis? Is there any scope of growth on the current capacity, or do we need to wait for the upcoming CapEx for volume growth? Yeah, this question has been answered earlier also. We are operating at 95%. This financial year, we are expecting a 6% - 8% increase in the nuambers, quantity. The next set of increase will come after the CapEx, after the expansion. Okay, sir. Got it. Sir, what is the current glass manufacturing capacity in India on TPD basis? What is the expected capacity to come on and by what time? The 2,300 ton is the current capacity of domestic players currently. Another 2,000 tons should be operational in the next eight months' time, or say by March, April 2026. Thereafter, about 1,800 ton will come by December 2026. This is the current visibility of the capacities. In addition, other players like Avaada and many also announced their plan to set up glass manufacturing, but their exact details are not available right now. These plants might come up in 2027. Okay, sir. Thanks for answering the question, sir. That's all from me. Thanks. Thank you. The next question comes from the line of Deepa from Svan Investment. Please go ahead. Yeah. Hi. Good evening, sir, and congratulations for good set of numbers. Thank you. Yeah. Sir, my question is related to the realization. Just trying to get the sense, if I'm looking into the solar industry as a whole, on the module and cell front, there is a differentiation between DCR and non-DCR market, where the realizations are completely different for the market. In terms of the solar glass markets, how we are placed in terms of the local and whether the pricing for the domestic manufacturers, for the DCR and non-DCR markets for the glass also are the same, or is there any difference between DCR and non-DCR markets? Is there any further scope beyond 148 square meter kind of realization which we are looking at? For glass, there is no such market like DCR-related market or non-DCR-related market, unlike solar cells or solar modules. In terms of the realization, we already have given you the indication that imported land is costing about INR 145, and we are close to that number only. This is what we should take into consideration for our understanding and projections. In terms of the broader demand and supply situation, which is looking like, I mean, it looked like broadly the supply is a little constant than the demand we have. Would it be further possible for realization to improve from there beyond what we used to see earlier? The Chinese players used to dump, or what is the reference size which has been set now? Is there a further scope to improve from there? I think we already said many times this regarding the pricing. We will like to maintain our pricing close to the landed cost of imports because that is what customers are willing to pay. Based on the situation, we might have some higher price from some customers. On an average, the landed cost would be the criteria for you to take into account what realization companies can get or any domestic glass producer can get. Sure. Thank you. Thank you very much for all of this. Thank you, Deepak. Thank you. Thank you. The next question comes from the line of Aashish from InvesQ PMS. Please go ahead. Yeah, most of the questions have been answered. Sir, the only one thing I wanted to understand is, given the situation and the tightness of demand supply, is there a possibility for us to squeeze working capital further given customers are being able to do with margin and all that we know? Do you see that happening? Yeah, we are attempting to do that already in terms of speeding the working capital cycle and trying to tighten on the letters as well as on the other current assets. Also, in terms of the credit, we are trying to expand our credit period. We will speed the average credit number of days as we go along in this financial year. Okay. Regarding the previous question on the realizations, we have to assume that maybe 5% - 7% of increase in realization is still possible from what we reported in this quarter, I think INR 138 to mention. For FY 2026, is it a fair assumption to take that way, or is it not worth taking a bet there? I think we've taken a fair vision to that. We've asked you that. I think we've already answered this question. We obviously want to improve our realization, but not always. You said INR 145 is the import landed price. Yeah, there is a landed price. When we are saying INR 138 price, that is ex-factory price. To that, you have to add average freight. Delivered price for us is about INR 144, INT 145 only, which is, we can say, that is the landed cost of Chinese glass. Okay. Okay. Okay. Sure, thank you so much. Okay. Thank you. The next question comes from the line of Rikin from The Boring AMC. Please go ahead. Hi, sir. Congratulations on a good set of numbers. I just wanted to check in terms of GMB and the insolvency proceedings, is there any scope of recovering anything because it's taken the write-off for exposure, but can we recover anything? We have conducted a renovation report. First of all, we did internal assessment. We also got in check with the GMB management who are people in the driving seat over there. We also had appointed a valuer who is doing this exercise over there for many customers. He has also submitted his report. As per him, the value of sales value of the asset which GMB possesses is slightly lower than what liabilities it may be required to meet in terms of, say, insolvency proceedings. There is a current indications are that nothing is recoverable from the perspective of Borosil. In case something better happens, like the sale of business or any significant amount they receive because somebody is willing to pay us and the amount is exceeding the liabilities, in that event, we will extend to receive something. That chance is quite minimal as far as we can see right now, which is the reason why we have provided for the entire amount. Should there be any receipt, we will account for any receipt and report it back to the shareholders. All right, sir. We've had Mr. Ayub's resignation in a very short period of time. Are we looking to hire and fill that position quickly? Yeah, it was unfortunate that he had to leave in a short time, but we will be having some person in that position. All right. That's it from my end. Thank you, sir. Thank you. Thank you so much. Thank you. Ladies and gentlemen, we'll take this as the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you for a very warm audience with lots of questions. Very appreciative. I hope we've been able to represent our company and our current situation as accurately as possible. We look forward to interacting with you in the next quarter. Thank you. Thank you. On behalf of Axis Capital Ltd, that concludes this conference. Thank you all for joining us, and you may now disconnect.