Ladies and gentlemen, good day and welcome to the DCM Shriram Limited Q3 FY 2026 Earnings Conference Call. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Siddharth Rangnekar from CDR India for opening remarks. Thank you, and over to you, Siddharth. Thank you, Ryan. Good evening and welcome to DCM Shriram Limited's Q 3 and 9M FY 2026 Earnings Conference Call. Today we have with us Mr. Ajay Shriram, Chairman and Senior Managing Director, Mr. Vikram Shriram, Vice Chairman and Managing Director, Mr. Aditya Shriram, Deputy Managing Director, and Mr. Amit Agarwal, Group CFO of the company. We shall commence with remarks from Mr. Ajay Shriram and Mr. Vikram Shriram. Members of the audience will get an opportunity to ask their queries to the management following these comments during the interactive question-and-answer session. Before we begin, please note that some of the statements made on today's call could be forward-looking in nature, and a note to this effect has been included in the conference call invitation that has been circulated earlier and is also available on the stock exchange website. I would now like to invite Mr. Ajay Shriram to give us a brief overview. Over to you, sir. Thank you, Siddharth. Good evening, ladies and gentlemen, and a very warm welcome to all of you. Wishing all of you a very happy New Year. I will begin with perspectives on the business dynamics and the strategic imperatives, following which Vikram will share views on the financial perspectives. The global landscape is currently defined by what can be called a great realignment, where we are witnessing a transition from globalization to regional resilience, as well as new global trade realignments. Extreme geopolitical shifts, tightening financial liquidity, rapid technological disruption, and the weaponization of trade through selective tariffs have created a volatile supply chain for industry. Amid this turbulence, India is not unaffected but is resilient. Our nation's trajectory, powered by a massive infrastructure buildup and a demographic dividend that is actively converting into consumption and entrepreneurial energy, provides us with a robust foundation to navigate external headwinds with strategic poise. Recent reforms under the Labor Codes align us better as a country with global standards on social inclusion, health, and safety of the workforce, while driving scale and formalization of the economy. The RBI continues to actively complement the government's growth agenda through calibrated monetary easing, liquidity support, and a strong focus on financial stability. In a period marked by fluid market dynamics, DCM Shriram remains firmly positioned to navigate the operating environment ahead with confidence. This strength is anchored in a diversified and strengthened product portfolio across our core businesses and a sustained emphasis on efficiency and cost discipline. As the business landscape continues to change, we are thoughtfully enhancing the agility of our operations to build resilience, manage risk, and reinforce our competitive position. Guided by a long-term perspective, sustainability remains the bedrock of our decision-making. It is a lens through which we evaluate every investment, ensuring that we generate not just immediate returns but enduring multi-generational value for all our stakeholders. I shall now invite your attention to industry dynamics across our businesses. First is the chemicals business. Globally, the caustic soda market is operating at around 80% utilization, with worldwide annual installed capacity of approximately 106 million tons. While demand is strong in regions like Asia-Pacific, the industry is also facing challenges like fluctuating prices due to economic factors, geopolitical uncertainty, and unsustainable energy costs in regions like Europe. Domestic caustic market fundamentals remain stable. Looking ahead, we see a two-phased outlook: growing structural demand from industrial end markets versus shorter volatility from global supply chain disruptions. However, chlorine prices have been under pressure. Caustic soda and chlorine downstream customers have been impacted by geopolitical factors, including tariffs. Hydrogen peroxide demand was broadly stable, underpinned by strong offtake from pulp and paper, textiles, and water treatment. However, the domestic market remained oversupplied, with new facilities being commissioned and dumping from Bangladesh. Prices continue to be under pressure, and industry is working to ensure that cheap imports do not disrupt domestic prices. Hydrogen peroxide plant performance has been good, with improving utilization levels. Epichlorohydrin demand stood firm, supported by structurally strong consumption as well as increase in capacity of epoxy resins. Our ECH plant was commissioned in October 2025, and the product has been well accepted in the market. We are in the process of commissioning the balanced capacity and plans to stabilize in the current quarter. We have started expanding our sales network, including exports. Our operations in Hindustan Speciality Chemicals are stabilizing well. The Government of India also levied anti-dumping duty on liquid epoxy resin in November 2025, which has started having impact, which should start having impact in the coming quarters. Our project in aluminum chloride, calcium chloride at Bharuch, and the 68-megawatt green power plant at Kota continue to progress as planned. Vinyls, global as well as Indian PVC demand was muted in the key geographies, and prices remained soft in the period. PVC pricing continued to witness downward pressure given abundant imports and global oversupply. Despite DGTR finding justification for anti-dumping duty on PVC resin imports due to significant dumping and predatory pricing, the Ministry of Finance chose not to impose ADD, resulting in a sharp fall in domestic PVC prices. Sugar and ethanol: global sugar supply for sugar season 2025-2026 is expected to be in surplus of 3.2 million metric tons, mainly due to expected surplus production in India by about 2.2 million metric tons. The Indian sugar season 2025-2026 is expected to end with the stock of 6.2 million metric tons, with production estimate of 30.6 million metric tons after diversion of around 3.5 million metric tons for ethanol production, consumption of 2.84 million metric tons, and export allowance of 1.5 million metric tons. Current price is around INR 4,050 for quintal. On the ethanol front, OMCs received 1,777 crore liters of ethanol offers for the 2025-2026 season, which is 1.7 times of the total requirement tendered for by OMCs. Allocation is led by grain-based feedstock, that is 72%, and balanced 28% from sugarcane, which has reduced significantly, as against 34% last year. Industry is urging government for support through increase in price MSP, sugar MSP, and higher blending targets of ethanol, as well as sufficient allocation for sugarcane feedstock to ensure mills' viability and increasing costs of production. The industry continues to contest the export levies on ethanol sent outside Uttar Pradesh, with the matter being heard in the courts. Fenesta Building Systems: a consumer-facing arm of Fenesta Building Systems is evolving from a product provider to a comprehensive lifestyle partner, expanding its footprint in the building segment category to capture a larger share of the customer wallet. Fenesta continues to report healthy volume growth, with margins undergoing a normalization driven by ongoing shifts in the product mix. The aluminum extrusion project at Kota is running as per schedule, and phase one is slated to be commissioned by the end of next quarter. Moving on, Agri Inputs business portfolio comprises of Shriram Farm Solutions, fertilizers, and Bioseed business. Shriram Farm Solutions: the SFS business sustained momentum, delivering healthy revenue growth. Performance was underpinned by growth in research wheat seed, where we have strengthened our market leadership by registering highest-ever sales. The crop protection and specialty plant nutrition verticals continue to be benefited due to strong farmer acceptance of new molecules and products launched earlier. Innovation remains central to our strategy, and we remain committed on deepening R&D collaborations and exclusive product partnerships to introduce differentiated next-generation global products to the Indian farmers. Fertilizer: The urea business remains stable, with continued emphasis on improving energy efficiency, optimizing production levels, and maintaining tight control over fixed costs. Subsidy disbursements have been timely. Bioseed: Due to extended monsoon and heavy rainfall at the beginning of Q3, farmers' profitability in the Kharif season reduced, which ultimately led to reduced spending in the Rabi season, and farmers going for saved seed in wheat and mustard, while good growth was witnessed in corn and paddy. I will now request Vikram to provide the financial perspectives. Vikram, over to you. Thank you. Good evening, everyone. I will now take you through the financial highlights of Q3 and nine-month financial year 2026. Net revenues, net of excise duty for Q3 FY 2026, were at INR 3,811 crores versus INR 3,367 crores in Q3 FY 2025, an increase of 13% year-on-year, driven by the chemicals, sugar, and ethanol Fenesta and Shriram Farm Solutions businesses. PBDIT for Q3 FY 2026 was at INR 560 crores versus INR 537 crores in Q3 FY 2025, an increase of 4% year-on-year. Profit after tax was INR 213 crores after an exceptional item of INR 55 crores provided pursuant to the implementation of the new labor codes. Chemicals: the chemicals business reported an increase in revenue by 30% year-on-year, led by caustic soda volumes that were up by 6% on account of better capacity utilization. New projects, that is, hydrogen peroxide, aluminum chloride, refined glycerine, and epoxy, also supported the revenue growth. ECUs were down by 4% as compared to last year. PBDIT was down by 8% due to higher fixed costs, given business growth and stabilization costs of new plants, partly offset by lower input prices and better operating efficiency. Demand for caustic soda remains robust, although surplus capacity in the Indian market and subdued demand of chlorine derivatives continues to weigh on prices, especially chlorine. Vinyl: the revenues were down by 13% year-on-year due to lower volumes of PVC and subdued prices of both PVC and carbide. PBDIT was lower at INR 19 crores as compared to INR 29 crores last year due to lower prices despite better operating costs due to power and carbon material. Sugar and ethanol: sugar and ethanol business revenue, net of excise duty, was higher by 15% year-on-year. Volumes of both domestic sugar and ethanol were up by 8% and 10% respectively. In both cases, it is a timing difference. Prices of sugar were up by 7%, while ethanol prices were down by 3% due to change in sales mix. PBDIT for the segment came in at INR 204 crores, as against INR 112 crores last year. In Q3 FY 2026, there was a significant positive impact of INR 36 crores on account of reversal of provision provided in Q1 financial year '26 for retrospective levy of duty on ethanol exported outside state of UP. Fenesta Building Systems: Fenesta's revenues increased 20%, 28% year-on-year, with project vertical leading to the growth. PBDIT for the quarter was down at INR 35 crores, as against INR 43 crores last year. This was due to product mix and higher fixed costs owing to investments in growing newer revenue platforms, enhancing brand presence, and acquisition-related costs, partially offset by increased in volume. Shriram Farm Solutions: Shriram Farm Solutions revenues increased by 7% year-on-year, supported by higher volumes of research wheat and specialty nutrients. PBDIT for the quarter was down by 11%, mainly due to moderation and research wheat margins owing to poor Kharif season, leading to lower product prices. Fertilizer: fertilizer revenue was down by 2% year-on-year. Gas prices were down at $13.20 per MMBTU in Q3 FY 2026 versus $14.50 per MMBTU last year. Consequently, PBDIT was also down at INR 20 crores versus INR 29 crores last year. Outstanding fertilizer subsidy was INR 116 crores as of 31st December, as against INR 111 crores last year. Bioseed revenues for the quarter increased by 16% year-on-year, led by better volumes of corn and paddy. Prices were also better across the products. Further, there was a positive impact of about INR 10 crores due to sale of vegetable R&D germplasm and technology. Accordingly, PBDIT for the quarter was up by 73% year-on-year. Coming to the highlights of nine months FY 2026: for the nine months ended 31st December 2025, revenues, net of excise duty, was at INR 10,345 crores, an increase of 12% year-on-year, contributed by all the businesses, especially chemicals, with slight moderation in sugar and ethanol. PBDIT came in at INR 1,294 crores, an increase of 24% year-on-year, led by chemicals, sugar, and ethanol, and Shriram Farm Solutions businesses. The company's net debt stood at INR 1,084 crores as on 31st December 2025, as against INR 867 crores as on 31st December 2024, and INR 1,395 crores as on March 31st, 2025. The year-on-year increase was because of capital expenditure over the last year and acquisitions made during the period. Over March 2025, the decline is primarily because of reduction in sugar inventory. Return on capital employed for December 2025 came in at 14%, similar to the levels of last year. The board announced an interim dividend of 180% to INR 56.14 crores. This took the total dividend announced for the year to 360%, amounting to INR 112.28 crores. As our major investments in the chemical segments are nearing completion, a strong balance sheet and healthy cash flow position, as well as to explore value-added chain opportunities aligning with our core businesses, we remain optimistic about sustaining steady and responsible growth in the years ahead. That concludes my remarks, and I request the moderator to please open the forum for questions and answers. Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the first question from the line of Pujan Shah from Molecule Ventures. Please go ahead. Hi, Shri. Hello. Hello. Yes, sir. Yeah. Yeah. My first question pertains to the PVC side. So right now, if you look into, so government has now decided that they won't announce the ADD. So is there any possibility of MIP being implemented, or is there any discussion going on? Because PVC industry is suffering a lot. And so what are your views on this? So we are actually working with the government on this, you're right. After the ADD was not done, which was, I think, around the end of November, we've actually been to the government and various ministries to look at MIP and had meetings with the Chemical Ministry, with the Commerce Ministry, and in the Finance Ministry. And we talked about looking at MIP because if you take the last five years, the average import price was about $800, $800, $820. But in the last three, four months, it's come down to $600, $620. So we have taken up this issue of MIP very actively with the government. Our own ministry, the Chemical Petrochemical Ministry, we have submitted a lot of data. They are also working on it, and we are really aggressively moving for MIP coming in at a short period of time. The second point we are also working on QCOs because ultimately, a lot of the PVC is used for potable material, like for filling water or soft drinks or others, and there is a need to balance out the quantity of residual chlorine in the VCM, sorry, residual VCM in the PVC, so we are working with the government on that also to have QCOs implemented, which will ensure that the right quality product is used for the potable products, so we've had a discussion with the Jal Shakti Ministry also and working with them, so we hope that with our steps we are taking for the national benefits to the PVC industry, something will happen. Got it. So is there any timeline you want to put in for the MIP, or it is too far to understand this? Yeah, I think timeframe is a little difficult when we're dealing with government ministries, but we are actively on the job. Got it, sir. We have been hearing the news about China revoking the VAT benefits. So do you think that that will help us in terms of inching up the realization because the benefit will be gone from 1st April? Continuing with the same, might be we see a Q4 dumping, a very severe dumping because might inventory get built up at a cheaper level. So is that possibility happening in our industry? Actually, when the government of China announced the removal of subsidy of 13% on PVC from 1st April, it straight away had a positive impact on the industry, and the prices have gone up 3-4 INR already. We are hoping that once it's implemented, it will benefit a little more. That is something we are actually hoping will bring an advantage. If MIP comes along with it, it will be an advantage the industry really needs. Okay. Got it. Last question pertains to the same is that in PVC, we have been posted at INR 38 crore of PBDIT, and we have performance very well compared to the impact of happening in the industry. So have we seen an easing of pricing in RM that helps in the PBDIT, or it was more linked to the operational efficiency? So this was, see, one, our power costs have come down. So as you know, power is the almost 60%-70% cost of production. So we've seen reduction in our power cost, and that's continuous. If you see last one, one and a half years of power costs have been coming down. So that is one key reason. Other than that, the other materials, carbon materials, which have been more or less stable. So it's the power cost that has helped us. Okay. Got it. I will join back in the meeting. Thank you so much for answering all my questions. Thank you. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Raj Vyas from Bonanza Portfolio. Please go ahead. I'm sorry, we can't hear you. Am I audible right now? Hi. Raj, please use your handset if you are on a speakerphone. I'm using my handset. Am I audible right now? Your voice is very feeble. Hello. Right now, it's. This is better, Raj. Please go ahead. Yeah. I just wanted to understand what is the right now the demand scenario across the products and the impact of the U.S. tariff that we are seeing because we are into the export chlor-alkali business as well. Earlier, we have also highlighted about some kind of pressure in terms of tariffs. I'm sorry to interrupt you. Could you kindly repeat that? We couldn't get it, the clarity was not okay. Am I audible right now? Yeah, please. Please repeat what you said. So I just wanted to have a brief update with respect to the demand scenario that we are having across the product and also any tariff impact that we are facing and that has impacted the performance in certain verticals. So which product are you talking about? Across the board. Across the products. All our products? Yes. All of them have different duty, different structures. That is moving with the government, as I just mentioned about PVC, what is already moving on PVC that you are aware of what you are looking at. I think on the other products, really on caustic soda, there is some import duty which is there at a very low level that is moving over there. On epoxy resins, the government has implemented some anti-dumping duty in November 2025, which is an advantage to that industry. Government is aware, but we need to government needs to actually take some more corrective action for some of the products, which will make a difference to not only us, but to many other factories or companies who are in similar businesses. All right. And we have also seen this margin pressure continuing for the Fenesta vertical, right? And last quarter, also, you have mentioned that it was primarily because of the product mix. And this time also, it was because of product mix and higher fixed cost as well. So any ballpark number that we are looking at, for example, to see where the margins can stabilize and also what was the reason behind the order book going slightly down for the quarter? Yeah. So see, one, coming on the margin reduction, see, margins, as was mentioned in the chairman's speech, and you rightly put it that this is a product mix. But another reason that has happened is that one, our facade business is picking up. So there were larger volumes and revenue coming from facade. And currently, that business, since we are entering the market, right, and so we are not really wanting to earn any significant margins there. That is one. And then aluminum prices went up significantly. So that has a lag impact because your older orders, which were taken, especially in retail, they may not have the linkage to price. So therefore, that was one additional factor this quarter, which led to a reduction in margin. That is your answer to your first question. What was the second question, please? So where we are seeing the stability in the margins, right, because earlier, it was in double-digit margins if I see on a yearly basis, right? And this quarter, it has come to single digit. So any stability in margins where we can see that going forward, yeah, this is the ballpark number that we can look forward to. Yeah. So So see, currently, we are investing in growth, right? As I mentioned, facade doing well. Our aluminum extrusion plant will come online in the next three to four months. So this business is in the investment and the growth phase right now. So margins, I wouldn't say they're under pressure. It's like building up for better margins going forward, which should be there, let's say, six months down the line. We should see margins inching up once all these investments that we're doing, acquisition that we have done, looking at a few more. So all these things will add up, but then it'll take one or two quarters at least for margins to add up and help grow. As the volume grows. As the volume grows, yeah, and the cost efficiencies come in. Okay. Understood. And coming to a question with respect to the acquisition, so on Hindustan Speciality Chemicals that we have acquired, right, so we were expecting to break even the losses that we were having from that company by year-end. So are we sticking to that timeline? So see, we said we'll take about a year. We acquired this business in end of August, right? So yeah, by end of the year, we should be nearing by the end of these 12 months since acquisition, we should be nearing the break even or maybe better than that. Okay. And lastly, with respect to the demerger of our consumer-facing products, any update that we can get? Yeah, so we are in the advanced stages. See, it's a very old organization, over 100 years old organization, so there are a lot of interlinkages and the idea is when we separate the companies, there should not be any interlinkages, so having clarity on that takes a bit of time, so we have a large part of the clarity, and we are moving in that direction. We have clarity internally, so we are moving in that direction. Okay. And any kind of guidance before I end my questions, any kind of guidance on the top line or bottom line for the next, say, two years down the line or three years down the line that we as a company are aspiring to reach that level? See, we as an organization have been making investments. You've seen we've invested close to about four-five thousand crores in the last three-four years. And these should accrue to our cash profits going forward once they stabilize. So let's say from FY 2027 onward, we should see our profit better, and we'll continue to grow. So our endeavor is to grow each of these businesses to the value chain in each of the businesses. So we'll continue to do that. Okay. Okay. Thank you so much. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Ahmed Madha from Unifi Capital. Please go ahead. Thanks for the opportunity. Firstly, on taking the previous participant on the restructuring/demerger spinoff, can you give a broad sense of timelines? I think we announced this board meeting about, I think, nine or 10 months ago. So there has been a bit of time. So any broad timelines can give to finalize the structure? Ahmed, our intention is to do it as early as possible, frankly. As I said when answering the last question, we have a lot of clarity now, right? Certain loose ends just have to be tied. We hope to do it as early as possible. If all goes well, maybe next three, four months, we should be there. But we are pretty much, as I said, a lot of loose ends have been tied up. Few are left which we should complete the next three, four months, hopefully. Can you elaborate a bit on what all things are sort of leading to a sort of a delay? It helps us to appreciate what are the moving factors. Sure. So see, it comes from the fact that there are, for example, Fenesta business, it has its roots in Kota itself, right? Now, Kota has a particular kind of legal structure. So all those have to we need to have clarity. Even with the government, we need to have clarity whether we can do that or not, which means we need to speak to government channels and all that. So those are the kind of things which take time and have clarity. And at times, given that it is government, it takes a little more time and a few such other things. Sure. Got it. Got it. And on the chemical business, we have been investing. We have invested a lot. On ECH business and epoxy business specifically, if you can give us some sense, where are we in epichlorohydrin as of now in terms of the product trials, approval, operating capacity? What stage we have reached so far? And in foreseeable future, what kind of utilization are sort of fair to achieve or practical to achieve in the next few quarters? And in the current quarter, what sort of losses or the incremental stabilization costs we incurred for epichlorohydrin business? Then I'll come to epoxy second. As you will be aware, the epichlorohydrin plant was commissioned in Q3, FY 2026. Two-thirds of the capacity approximately has been commissioned. The plant is now under stabilization, ensuring the right efficiencies. We expect that in the current quarter, we will be doing some further work to ensure that we are able to run the plant steadily. By the end of this quarter, we expect to commission the remaining capacity and therefore, after that, run smoothly. The effort on the market side has been ongoing continuously, whether it is domestic markets or export markets. Our quality has been approved and accepted by the key customers, largely the epoxy players themselves. We are very optimistic that by the end of this quarter, we will run the plant efficiently and then ramp up the capacity soon after that. Okay. And will the balanced capacity be commissioned by the end of this quarter, or it will take more time? Yes. By the end of this quarter, we expect the balanced capacity to be commissioned. Got it. On epoxy business, sort of, I'm assuming you would have consolidated the entire company for the first time in this quarter, so in terms of changes to be made in terms of processes, vendors, where are we in the overall process? and what was the contribution from Hindustan Speciality Chemicals entity in terms of revenue and profits or other losses in Q3? and where do we see it going in the next financial years? So the acquisition that we did in August 2025 has now been completed. We are in the process of integrating the operations, improving efficiencies, improving the safety practices standards, running the entire plant and the business along the lines that we expect. So that takes some time, some stabilization. What we are doing also is actually focusing more on the higher value part, which is what is called formulated resin. So we have LER capacity, and we have FR formulated resin capacity. So we are looking to grow that part of the business more aggressively. That, of course, takes time. You have to get approvals from customers, work on application development, etc., along with the R&D teams. But we expect that with that, we'll be able to grow the vertical, and we expect a healthy profitability in the coming quarters. So in the next year, FY 2027 onwards, we should see a good profitability from this vertical. Can you please spell out the revenue/losses number for epoxy business as well as ECH business? It helps us to understand we can give a broad range. It helps us to understand how the caustic business has done, considering the volumes have been better compared to last year. Prices have declined year-on-year, but sequentially, it has been okay. Just to understand the caustic business a little better, if you can give the numbers. Broad range will be okay. Yeah. Yeah. So revenue was in the range of around INR 90-100 crores for the quarter from the HSCL, which is currently a subsidiary. And there were marginal losses at EBITDA level. Okay. And epoxy business? Sorry, in ECH business? ECH plant? ECH is, so I don't have the exact numbers. We see each year, ECH, we started only in the month of October, right, and in ECH, I think by now, in the first week of January is when we've reached almost 100 tons per day, which is like two-thirds of the capacity which we commissioned. However, we are still working on the efficiencies because it takes time. These are one we are doing for the first time, and stabilizing the technology takes time, so we are not very efficient right now, so we are not making money in ECH right now, but we do expect that by Q4 end, we should have solved a large part of our efficiency issues, so yeah, that's where we are. Okay. Got it. Moving to the sugar business, considering there has been meaningful increase in the SAP prices for the season and the sugar prices have gone up compared to last year, but not enough, and you have been very vocal about it in both terms of making policy decisions as well as in investor calls. Going by the current season, would you like to provide some comments on how do you see the upcoming season in terms of both volume production needs as well as profitability with higher cost? See, on volume and production, production as of now is good. It is a little better than last year also because the recoveries are better than last year. So that is encouraging. But what will be the total production? It's a little early. I think by February is when we get more clarity on how the overall production will pan out. So that is one. In terms of cost, you are right. Cost will be higher. I mean, straight away, INR 3 get passed on, although the recovery is a little better. Then it's a matter of what the product prices will be. But then yes, we are actively pursuing government to look at minimum support price for sugar. If that comes up, it helps. If something happens on sugar exports, that can help, and also on ethanol. So we are working on a lot of frameworks with the government, a lot of policy advocacy with the government. So we should support prices. But as of now, yes, margins will be lower than what they have been till now at current prices. Sure. Last question on Fenesta. You explained it should take a couple of quarters for margins to sort of stabilize and again improving with volumes. Based on whatever investments we have made, what should be the normalized margin we should assume for Fenesta business in terms of EBITDA? Last year, it was 18%-19%. They said it was 12%-14%. So will it be somewhere between the number, or it will be like 13%-14% kind of a number with expanded capacities and products? I would say this business should be around 14% once we have scale and backward. Yeah. Once we have the scale and the cost advantages coming from backward integration, I feel we should be at around 14%. That's what guidance I've been giving for the last couple of quarters. That was never a 18%-19% margin business given what we were planning to do. And now that planning is taking shape, so we will continue to target around 14% margin. See, the scale will build up, compensate for the margin as a percentage. Sure. I get it. Sorry. Last question I had on the agri business. So assuming this season was slightly average for Rabi, are we sort of carrying any major inventories for farm solution business, which sort of creates a problem later or next season, something of that sort? Is it fair to assume, or the channel is clean and we don't have major inventories? Would you like to provide any comments on that? Yeah. There are no channel inventories. See, our biggest business is wheat seed, research wheat. And we are glad to say that last year, we did about 93,000 metric tons. This year, we have increased by about 20% in terms of our sales to the farmers, which is about 113-114 thousand tons. What has impacted is we targeted about 125-130 thousand tons. So that product could not be sold. And in wheat, you can't store. So you have to sell it in the mandi, which goes below cost. So that is what has hit the profitability. And some bit of the margins overall. But otherwise, I would say the segment has done well in terms of volumes. And just to answer your question, there is no pipeline of inventory. Okay. So basically, whatever the incremental volumes here have been cleared up, and there is no baggage going into the next season. Yeah. Exactly. Sure. Perfect. Thank you so much. Thank you. Thank you. We take the next question from the line of Rajkumar Vaidyanathan from RK Invest. Please go ahead. Yeah. Good evening. Can you hear me? Yeah. We can hear you. Yeah. Thank you. Thanks for the opportunity. So the first question is on the caustic soda segment. I just want to know what is the outlook for this segment for the upcoming quarters? This quarter, you have done very good on the volume side, but the margins have dipped. So given this current situation, are you seeing any softness in demand? Can you just give some color on the outlook? So I think in the coming quarters, we do expect a fairly stable to positive outlook for the caustic soda and chlorine business. The demand fundamentally is robust. For us in India, a large percentage of the demand is domestic itself. As an industry, we have moved from being net importers to net exporters. But bulk of the demand continues to be domestic demand. So we feel that while there are some large capacities coming up in the next one to two years, we expect stable to positive outlook in the coming quarters. Okay. Thank you, sir. And sir, the second question is on the hydrogen peroxide segment. Can you give some outlook? How is the pricing and the margins looking? So currently, our plant itself is running at close to capacity. As an industry in India, it is an oversupplied scenario at this point. There are other players also who have commissioned capacities. So prices are under pressure. So we will have to see how it evolves in the coming quarters. But we are working on various avenues to help improve margins. Okay. Moving to the sugar segment, I want to know what is the current recovery levels compared to last year, and do you expect the recoveries to be better in the upcoming quarter? Yeah. So compared to last year, we are better by about 0.4%-0.5%. Now, if the trend continues, yes, we should be better in the coming quarters as well. So what is the absolute number? I won't have the number right away, but we are better by that number. Okay. And you expect this to improve further in the current quarter, right? Yeah. If the trend continues, yes. See, these are climate-driven, so we do expect it should continue. Okay, and the last question is, you recently signed a JV or a MOU with Bayer India. So I want to know what is the short to medium-term benefits we will be getting in terms of sales and margins? So see, the MOU with Bayer is largely to explore what we can do together. So currently, there are one or two products. One product we have already tied up in the crop protection space, which we will be launching for Bayer. So it's like those kind of things are more futuristic to see how both the parties can come together with their technical prowess, their product prowess, and our distribution prowess. We can work together and create value for the farmers. Okay. And are you looking at furthering this relationship, or it will be only restricted to whatever you have mentioned the price? Yeah. As of now, it is more transaction-based. If something comes up, we are open to looking at working together as well. Yeah. My question is, will there be any outsourcing opportunities with Bayer? Will you be supplying to their entities overseas? No. As of now, there is no such plan. Okay. Okay. Thank you so much. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Pujan Shah from Molecule Ventures. Please go ahead. Thanks for the opportunity, sir. My question pertains to the caustic soda. So in the caustic soda division, we have seen a bit of a sweep in terms of ECU. So I just wanted to understand, is it because of the chlorine, or is it just a broad realization of caustics has been fallen down? So that is the question is only. Can you repeat the question, please? Sure. So in terms of. Yeah. Carry on. Carry on with the question, please. Yes. So I just wanted to understand on the caustic soda part. So in caustic soda, has the realization been cooled off, or the ECU has been cooled because of the impact of chlorine? See, there is no significant reduction, I would say, in ECUs. They are marginal, INR 400, INR 500 rupees here and there. So I don't think I would attribute to any particular factor. Month on month, it keeps varying whether chlorine goes down or caustic soda price goes down, or the flakes prices are better. So there is no fundamental shift is where I'm coming from. Got it. And so amplifying the question, in terms of China is implementing this VAT, so do we see the benefit in caustic as well? So to the best of our knowledge, China has not implemented this for caustic soda. It is for PVC and for other products. So we'll have to see how it plays out, the impact of this on PVC and therefore on caustic. Okay. Got it. Got it, sir. So just want to understand the PVC. So let's suppose if we consider if ADD gets implemented, the China duty was ranged around 122-232 per tonne. So now if MIP comes up, so it's equivalent significance of the duty. So then we are not going to apply for ADD, right? Because MIP might be for a limited time, so till that time, we might refile for ADD, or it won't be that case? I think the approach to MIP is a priority right now because ADD has already been rejected once by the government, and the ADD approval process is fairly long. It doesn't happen as fast as we hopefully MIP will, so MIP is the focus right now. We'll see what the market situation is like after that, and then take up the ADD work also if necessary. Okay. And if MIP gets implemented, it would be for six months? We don't know. We don't know. We've asked for a longer period. We don't know what the government will do. Got it. Got it. Thank you, sir. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. Ladies and gentlemen, we take that as the last question and conclude the question and answer session. I now hand the conference over to the management for their closing comments. Thank you. Ladies and gentlemen, thank you very much for your participation in our earnings conference call. As new trade barriers emerge across developed economies, the imperative for Indian corporates is towards realignment. True progress lies in building internal strength through sharper cost focus, operational efficiencies, continuous innovation, and deeper technological adaptability. At DCM Shriram, we are building this resilience through, number one, relentlessly optimizing our operational core to ensure we remain lean and agile. By focusing on efficiencies, we are working towards ensuring that our margins remain healthy. Number two, strengthening the value chain in our businesses. And number three, digital transformation. As technology is the backbone of our evolution, and we are leveraging data-driven insights and automation to enhance our adaptability, efficiencies, and to sharpen our decision-making. Environmental stewardship is no longer a peripheral goal. It is firmly embedded in our investment philosophy. We are making our businesses greener, that deliver long-term value to all our stakeholders. Thank you very much once again. Thank you. On behalf of DCM Shriram Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.