Ladies and gentlemen, good day and welcome to the earnings conference call of Deepak Fertilisers And Petrochemicals Corporation Limited, hosted by Sunidhi Securities. Before we begin this call, I would like to point out that some of the statements made in today's call may be forward-looking, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rohit Sinha from Sunidhi Securities. Thank you, and over to you, Mr. Sinha. Thank you, Darwin. Good evening, everyone, and thank you for joining us on the Deepak Fertilisers Q1 FY 2027 earnings conference call. We would like to thank the management for giving us this opportunity to host the call. Today, we have with us Mr. Sailesh Mehta, Chairman and MD of the company, Mr. Subhash Anand, President and CFO, Mr. Tarun Sinha, President of the TAN business, and Mr. Suparas Jain, Executive VP Corporate Finance. We will begin the call with opening remarks from the management, followed by Q&A session. I would now like to invite Mr. Mehta to make the initial remark. Thank you, and over to you, sir. Thank you. My voice is clear, right? Yes, sir. A very good evening to everyone, and once again, thank you for joining us today. Our earnings presentation and press release have been uploaded in the stock exchange and are also available on our website. I trust you have had the opportunity to review them. I'm very happy to share that despite the volatility emerging out of the Middle East war, our Q1 has turned out to be our historic best, with a 65% jump in the operating EBITDA and doubling in our PAT. Even our net debt improved from 2.86x to 1.4x. With the Q1 profits achieved, we have already covered over 65% of last year's full year's profits. What are the undercurrents behind this performance? Will they sustain? Could be fair questions in your mind. As we see it from our perspective, we see three clear undercurrent trends, namely, the core strength of our integrated value chain that we have built now from the 15-year LNG contract with Equinor, then having a world-scale ammonia plant facility next door, and then Asia's largest building block chemical nitric acid, and then the downstream end products. All of them in three diverse risk mitigated sectors: crop nutrition, mining chemicals, and industrial chemicals. This aspect of this value chain, we strongly believe is one clear undercurrent strength, and we see that giving us resilience, risk mitigation, and of course, very good cost optimization. This is something we see unique and sustaining. The second core strength we see is that repeatedly we are getting a strong validation of the excellent alignment of all our three businesses with the India growth story. For the needs of power for India, coal, or for India's infrastructure needs, limestone, metals, minerals, all are beautifully aligned with our TAN business, mining chemical business. The shift to horticulture, fruits, vegetables is giving us a great good tailwind for our crop nutrition business. India's focus on the pharmaceutical sector, specialty chemicals, is giving a lot of boost to our industrial chemicals segment. This is the second core strength that we see, and in view of this beautiful alignment, we see the strength in the demand drivers despite higher prices of our finished products. We saw this phenomena during COVID days, and we saw it again during this Middle East war phase. This is the second core strength that we see. Last, but not the least at all, is our growing core strength emerging from our transformative shift into specialty and customized products for all our three businesses. This we see is increasingly coming out to be very strongly reflected in our results by way of the undercurrent of customer stickiness, customer preference, and above all, price premiums. All these three undercurrent and strategic trends are here to stay and grow. What is more, with our CapEx cycle now moving towards completion, with our TAN Gopalpur project at almost 96% completion and acids Dahej project at 93% completion, H2 promises to further solidify the top line and bottom line growth. In the near term, which is in Q2, we will see the typical slowdown on the mining activities due to the monsoon. On the other hand, there will be a good pickup on the fertilizer Croptek nutrition business now that the worry of El Niño is behind us with very good widespread rains, especially in our geographies. However, with the Middle East war scenario still hovering and bringing along with it its own set of volatility, somewhere sourcing and prices of phosphoric acid, sulfur, and other raw materials for the fertilizer business will be under somewhat of a strain, and will need for faster decisions on the subsidy corrections by the government. On the other hand, our cost-effective LNG supplies firming up of ammonia prices and other chemical prices, and our steadfast focus on specialties and customized products, all of it will continue to support our bottom line as we see the year roll out. On this positive note, I now hand you over to Subhash and the team to take you through the details of the results and also clarify any questions that you may have. Subhash. Thank you. Thank you, Chairman, and good afternoon, everyone. Q1 FY 2027 has been an important quarter for Deepak Fertilisers. We delivered our highest ever quarterly EBITDA and PAT despite a period marked by geopolitical disturbance, supply chain challenges, and commodity volatility. More importantly, the result reflects the strengthening of strategic foundations we have been building over the last several years. At the consolidated level, revenue for the quarter stood at INR 3,256 crore, up 22% year-over-year and 8% quarter-over-quarter. This growth has been driven by stronger realization across ammonia, mining chemical, and industrial chemical. What is noteworthy is that this performance was achieved despite temporary volume disturbance both in mining chemical and IPA during the quarter. Operating EBITDA increased to a record INR 845 crore, up 65% year-over-year and 139% sequentially. While EBITDA margin is improved to 26%, compared with 19% in the same quarter last year and about 12% in the previous quarter. The improvement was broad-based and driven by stronger realization across TAN, nitric acid, and IPA, along with the initial benefits of our integrated gas to ammonia value chain. Net profit for the quarter stood at INR 490 crore, up 101% year-over-year and 252% quarter-over-quarter, reflecting both margin expansion and improved operating leverage across the portfolio. Let me now touch upon the performance of our businesses. Mining chemical delivered a resilient quarter despite temporary disruptions from the changes in PESO portal. While the volume were lower at 130 KT, stronger realization helped drive revenue to around INR 911 crore, up 37% year-over-year. Our B2C strategy continued to gain traction with B2C revenue growing at 42% to INR 151 crore and contributing 17% of the segment revenue, further improving the quality of earnings and customer engagement. Industrial Chemical reported revenue of around INR 490 crore during the quarter. Nitric acid volume remains stable, supported by improved pricing arising from supply tightness and lower import. In IPA, while volumes were impacted by propylene availability constraints, stronger pharma grade demand and improved realizations supported profitability. We expect IPA volume to progressively recover as propylene availability improves. Crop Nutrition operated in a challenging environment due to delayed monsoon, elevated input cost, and inadequate subsidy alignment. Despite these headwinds, the business remained resilient, delivering revenue of around INR 1,367 crore, up 9% YoY. Manufactured NPK sales grew 4%. Croptek continued to perform steadily and our premiumization strategy remain on track, with specialty and Croptek products contributing 40% of the segment revenue. Our balance sheet continued to strengthen despite being in peak of our investment cycle. During the quarter, we incurred CapEx of over INR 500 crore as we progress our strategic growth project. Even after this investment, net debt reduced to INR 4,719 crore and our debt EBITDA improved to 1.4x, reflecting strong cash generation and disciplined financials management. This places us in a strong position as we enter the commissioning phase of our major projects. Both of our projects are now in the final stage of execution. The Gopalpur TAN project is approximately 96% complete, and the Hazira nitric acid project is approximately 93% complete. Commissioning activities are underway, and both projects are expected to commence operations during Q2 FY 2027. Importantly, both projects remain within the approved CapEx envelope. The total spending till Q1 is around INR 3,850 crore. These projects will strengthen our leadership positions, improve supply assurance, enhance operating leverage, and support the next phase of growth for the company. One of our most important development during the quarter was the commencement of supplies under our long-term LNG agreement with Equinor, with the first cargo received in May. This marked an important milestone in our integration journey. The combination of long-term LNG sourcing, ammonia integration with our downstream leadership position provides greater supply security, better cost visibility, and improved competitiveness across the portfolio. The benefit of this strategy has already started becoming visible in our earnings portfolio and will increasingly important as we move forward. To summarize, Q1 FY 2027 was more than just a strong quarter. It reflects the strength of our integrated business model and the strategic choices we made over the years. The growing contribution from B2C, specialty and Croptek businesses continue to improve the quality and resilience of our earnings. The commencement of LNG supply under our long-term contract is further strengthening our value chain integration. During the quarter, we delivered record EBITDA and PAT, strengthened our balance sheet despite significant CapEx investment, and brought both our major growth projects to the final stage of commissioning. Looking ahead, we remain constructive across businesses. Mining Chemical continue to benefit from strong market fundamentals and growing B2C franchise. IPA is well-positioned for volume recovery with improving propylene availability, while Crop Nutrition should benefit from improving monsoon conditions and continued portfolio premiumization. With the new capacities coming on stream, integration benefit becoming increasingly visible, and a strong business mix, we believe we are entering the next phase of growth from the position of strength. We remain committed to deliver sustainable growth, strong cash generation, and long-term value creation for all our stakeholders. Thank you. We should now be happy to take your questions. 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 their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Hardik Shah with Brick Capital. Please go ahead. Hello. Yeah, congratulations to the management for good numbers. My question was, in Q1, there was gas availability problem. We wanted to know what was the capacity utilization for our ammonia plant? Okay. In fact, we need to see capacity utilization in two parts. Initial part of, I'll say, April, we do have a gas problem, post-May, with Equinor coming in, the gas issue was no more there. Average for this quarter was 94% utilization. Okay. One more thing for the ammonia plant. We had a shutdown in Q4 FY 2026. Did we debottleneck the ammonia plant, or it is still running at 500,000 capacity? How is it we have to consider? No, we have debottlenecked, and currently plant is running at what we desired. We have seen almost 10% capacity improvement in that plant. Okay. Last question is, both the CapEx nitric acid and the Gopalpur TAN project, are they on schedule? When are we starting the trial production for that? We are on track this point of time. We expect both the plants should be operational towards end of this quarter. What we've spoken, we are broadly on track this point of time. We can expect good utilization from Q4 FY 2027 for both the plants? Yes. That's what we intend to because, I say, for us, this is not the new chemistry, not the new plant. For us, the ramp-up should be much faster. We can expect around 80% utilization around for Q4? If all things go well. Everything goes well, yes, we should ramp it up. Exact percentage, let's see how things are. Yes, our ramp-ups will be faster. Okay. Thank you, and all the best. Thank you. Thank you. Ladies and gentlemen, in order that the management is able to address questions from all participants in the queue, we request you to please restrict yourselves to two questions only. If you have further questions, you may rejoin the queue. Our next question is from the line of Shubham Sharma with Aditya Birla Family Office. Please go ahead. Sir, am I audible? Yes. Sir, I wish to know about the industry chemical side. How should we look at this business, let's say, two, three years down the line? You're talking about industrial chemical, right? Yes. Okay. Industrial chemical, let's see in two separate parts. There's a nitric acid business and there's an IPA business. Nitric acid business is more, I say, majority of the capacity, which is CNA, is a long-term contract driven business broadly linked to the feedstock. It's more stable business, comes with a stable margin, predictable business. We do see that business to continue in a stable and with a newer capacity, we'll able to improve the top line as well as the overall EBITDA of that business. IPA has seen a challenge in past. Now, recently, the availability of RGP was a challenge which is now getting improved. IPA is slightly more volatile, but Q1 onward, we have started seeing some recovery in that business. We say we should be able to maintain the long-term average in that business with some volatility quarter-on-quarter in that part of the business. Thank you. Our next question is from the line of Pritesh Chheda with Lucky Investments. Please go ahead. Sir, I have two questions. One on the TAN volumes, which see a reduction on a YoY. Should we interpret as your inability to produce because of the raw material adjustments, or it is the inacceptability at a higher price by the market to purchase that TAN? Which one is a more fairer assumption? None of the statement is true. The volume loss, as I stated in my statement, during the quarter, there was a new guidelines from PESO, and that has disturbed the supply chain more on a logistic outward side of supply. That led us to few days disturbance in the supply chain and loss of production. It was neither a raw material issue, nor a production issue, nor a demand issue, but more of a temporarily few days supply chain issue that took us to loss of this volume. Should we assume normalization now of the original capacity and the volumes? Yeah, that should be. Normally Q 2, as you would have seen, typically monsoon quarter, but if you're looking YoY, it should be the normal volume. Okay. My second question is on TAN itself, in terms of the improved realization and the improved profitability, which we know is a function of you being a lot integrated. Any comments there on how do you see the profitability, considering the global supply chain, how you are positioned in the business? Yeah. Tarun? Yeah. Okay, thanks. This is Tarun here. Essentially, this is a similar question which we have addressed in some of the prior calls as well like this. We've always maintained that the medium term to long term horizon margin levels would be very consistent as far as TAN business goes. It is like any other business, it goes through cycles besides the unforeseen situations. For example, Middle East in this case, Middle East conflict, as just as an example. Excluding those situations, we expect to maintain our margins over the medium to long term. Yeah. Short term, we may still remain on elevated prices for some time because of the Middle East- Correct Conflict is still not resumed. If you're looking medium to long term, we expect we should back to a normal margin or a consistent margin. Near term, you're more favorably placed, right? Considering you have the backward raw materials- Yes. Plus the global supply crunch on the TAN side. The profitability elevated pricing on the near term may sustain is the best guess that we can make, right? Yeah. Factually right. Okay. Thank you very much, sir. Thank you. Thank you. Our next question comes from the line of Adarsh Jain, an individual investor. Please go ahead. Hi. Thank you very much for taking my question. We actually had very excellent quarter in the way back in June 2022, and kind of the same quarter which we just had now. EPS was around 34 that time. What happened that things kept on changing drastically after that and down cycle probably started with multiple issues. Thereafter, Russian dumping of FGAN and then fertilizer subsidy, inventory loss, and then stabilizing the ammonia plant, and the issue with IPA and nitroaromatic dumping from China. I mean to say that it took another four years for us to beat the EPS, the EPS which we had in June of 2022. Now going forward, do we see such issues panning out again? How do you see, things could change for the business again? Are we entering into down cycle? Asking because we see a lot of volatility in stock prices. Okay. If we look at the results, the valuation looks cheaper. If we look at the stock movement, stock movement says something different. Would you share your thought on this, please? Sure. I'll start and then see if Tarun will add value on that. Fundamentally, the things, if I see 2022, what you are referencing, and currently 2026 June. Fundamentally, there are few things which have structurally changed for us. I call it that way. That time, there were no ammonia with us. Now we have built an ammonia and with Equinor gas, which is long-term contract, put us in much favorable position. It was never there with us if I talk two years back. That's a structural correction which has happened and going to improve the sustainability, or I'll say sustainability and reliability or predictability of the delivery as a complete integrated value chain is concerned. That's the one fundamental change which will happen. Second change which is going to happen is the two new CapEx, which is going to be operational towards end of this quarter. That will take us to the next growth lever state. We are operating at certain level. Capacities are more or less used. We are entering into the next leap of growth, and that is very straightway sitting in front of us, for which CapEx has already been done. The balance sheet is already carrying majority of that CapEx as a done money. It's only a question of realization phase, which is coming. Third thing, if you see, last few years, we have put in lot of efforts in differentiating models, focusing lot on B2C, focusing more on commodity to specialty, going to downstream side, talking about crop focus, and specialty focus fertilizers. All these initiatives are towards margin expansions and also towards bringing stability, predictability in the business. With these things in place, we are confident as a management. The kind of a volatility which business has seen in past will not have a similar volatility. Yes, some volatility will continue. That's a business. The business does depend on a lot of international factors which comes and impact. The severe volatility, what we have seen in past, that may not be a reality for us in the coming future. That's what we believe. Basically, we just have to assume that no downturn in business is seen in the near future. I say no severe volatility. Typical business cycle will come and go, we are moving from, I say our base itself is now changing, with the fundamental structural change which is happening in business. We'll be moving from the current level to the next level. We will be in a better place to handle that volatility. How long do we see this elevated ammonia prices at the current level? Okay. This is anybody guess, I call it. The way things are, it's already elevated, and we do see this disturbance to continue at least for some more quarters. Two, three quarters? Yes, looks like scenario. Even if war stop, it won't fall to a same level so soon. Not expected to be, at least all international prognosis. It's reflecting very clearly. It will take time for ammonia to come back to a same level. Okay. June being the best quarter for us in any of the financial year, we can at least expect the next June quarter will be having two TAN plants with elevated ammonia sales probably. Yeah. Okay. Thank you very much for the questions. Thank you. Thank you. Thank you. Our next question comes from the line of Ranjit with IIFL Capital. Please go ahead. Yeah. Hi, sir. Thanks for this opportunity. I hope I am audible. Yes, Ranjit. Yeah. Hi. Firstly, on the performance of the mining solution business. Here, just wanted to give some color about the kind of contribution that would have seen from the PCL, probably on a standalone basis. Was that a major driver for the profits or it has been the pure TAN spreads? Okay. We normally don't give very precise numbers of specific business. If we talk about the quarter gone by, it's not just one factor which has given this elevated margin profitability. It's all across, whether it was a mining business, whether it was a industrial chemical, or whether it was a IPA, not volume, but pricing, yes, or whether it was an ammonia. All businesses have contributed to this elevated profitability for us. Within that, what would be the captive consumption of the ammonia for us? If you can just share a ballpark figure. Approximately, in terms of percentage, around 80% is captive consumption. This is on an expanded debottlenecked capacity, correct? Yeah. Yeah. Sure. Thank you. The second question is to Tarun on the TAN front. Basically, two questions there. We have been guiding that we want to move towards more value-added products, and within the presentation, I can also see we started mentioning about the explosive business, and we did a recent small acquisition in that front. If you can give some color about how do you intend to tap opportunities on the explosive fronts. Second, we have seen not yet announcement, but at least an indication to get into TAN business for one of the major refiners in India. How do we see that front? Till now it was one or two capacity expansion, but a big player expressing intentions to getting into TAN. How are we gearing up for this thing? Thank you. Okay. Thanks for the question. Taking the first question first as about explosives. As you rightly mentioned, we completed the acquisition of an explosives company in May this year, which we had announced to the stock exchange as well. The purpose of that acquisition is to complete our value chain, make it even stronger as we develop the mining solutions business, which in simple terms is helping the mine operators, the mining companies, infrastructure companies, contractors, to improve their cost of mineral extraction or rock extraction. Blasting plays a very important role there, hence the role of explosives. Without having that portfolio of explosives, we wouldn't have the full value chain. That's the whole purpose objective of that acquisition. We are upgrading that facility as we speak after acquisition to bring it to the required standards of safety, quality, so on and so forth. We will be making some investments in terms of putting in some new types of explosives plants in this facility. Once we have the full range available, we will roll out the products commercially to the market in the form of, if you have observed our previous conversations, it's in the form of total cost of ownership, TCO business model, which is in simple terms, as I mentioned earlier, improving the mine's productivity. That's in summary what this explosives acquisition is all about, and the journey has began, as we had promised some quarters back on this front. On your second question, again- Just on this front, if I may. How would we be seen by our existing customers? Would we be seen as a competitors to them, or how would we be handling this? It's a very different business model that DMSL is pursuing, and that model is TCO model, as I mentioned earlier. The key difference between this model and the prevailing models of explosive supplies in the Indian market is that the prevailing model is about supplying explosives, invoicing for it, get paid for it, job over. Whereas in the DMSL's TCO model, certainly it supplies explosives along with blasting tools, technologies, people competency and things like that, but there is an outcome which we will guarantee. It's an outcome-based model, and that's where the difference comes in. Rather than just being an input driven model, TCO model of DMSL is an outcome driven model. There is no competition as such. It's a new space in which DMSL will be operating. Actually, it is a good move as I see it because if more explosives companies can join the game and start working in that direction, it will only help in improving the cost of mineral extraction in the country, which means the mine productivity in India will go up, and that's for a good national cause. Coming to your second question, we hardly have any information on that, on the announcement. We don't have any details or timelines, capacities, and things like that. Very early for us to comment on. Sure. Thank you, sir. Lastly, the two large capacities which are likely to commission, how should one see the depreciation moving up? Would these be depreciated over 20 years or 25 years? If you can give some color on that. Thank you. Typically, these plants get depreciated over 25 years. It will happen with them also. Yeah. Thank you, sir. Thank you. Participants, to ask a question, you may please press star and one. Our next question is from the line of Harsh Shah with Seven Rivers Holding. Please go ahead. Yeah. Hi. Good afternoon, sir. My first question is on the expansion, the two facilities that are coming in Q3. Just want to understand, how are we tied up on the feedstock side, given that we have five lakh tons of ammonia capacity. With this expansion, will we be procuring ammonia from the spot market? To that extent, will the economics of the new plant be different from what we are experiencing from our existing nitric acid and TAN facilities? No. Far as ammonia is concerned, we already have a, I'll say, supply assurance or supply contract tied up. We don't see that's a challenge in terms of thing. It will be a long term driven contract. It's not one-off contract. We do have it. In fact, two years before, till PCL was not there, we were importing ammonia. It's not like we are new in ammonia or we don't know this market. It's very well aware market and things are already tied up. As economics is concerned, even our current way, the way we operate, when we see a TAN business, we see ammonia at a market price and we evaluate TAN business as a standalone profitability business. Ammonia profitability is seen independently. Overall TAN will remain like that only. Okay. Sure. Sir, if we just step back a couple of quarters, till Q3 FY 2026, we had on the nitroaromatic side, we were facing issues from the Chinese dumping, and on TAN side we had the Russian, AN coming in at a lower price, which were putting pressure on our realizations and margins. Now with this geopolitical event, which is clearly working in our favor, once the dust settles, how do you think plus with the new capacities that our competitors are adding. If we take a slightly longer term view, a year, a year and a half from now, how do you see the entire ecosystem working? Would we again revert back to the averages or there could be some structural change in the overall supply chain dynamics? Okay. That's what in fact last, sometime back, same question. There is always a short term and a mid and long term. If you're looking short term, yes, this disturbance is there and this disturbance will have an impact on pricing. The prices are elevated, supplies are restricted or somewhere, I'll say, disturbed. The scenario, although the war may stop, the scenario will not come back to normal immediately. It will take time things to come back, it may be a new normal after this, even after stabilization. That's what we feel. Second question is about new capacity getting added. Yes, this is known factor, internally we are working. If we are looking at demand supply, even with new capacities, the total demand and supply with the kind of a growth what we see, 6% to 7% in the market, it still will not be a very long market. Maybe a year it may be long and short or maybe a balanced market, then may again translate into a short market. The scenario, we don't see things changing very drastically or the demand supply tilt happening very drastically in medium term. We don't see that thing coming up. Got it. Just one last question. Since you have started receiving gas supply from Equinor, what percentage of the contracted supply are we getting right now? Okay, now the way contract is, we have our existing contracts which are getting phased out this point of time, Equinor is coming and balancing it. This phase in, phase out will continue this year. I'll say by Q4 when the entire phase in, phase out practically will get completed. Till that time, both the contract and supplies are running parallel, that's how we have tied up our supply chain and also the inward quantity accordingly has been tied up with Equinor. So the - That quantity will get ramped up in next few quarters and the current quantity will get ramped down during next few quarters. The 70% gas allocation from the government will continue, and then we'll top it off with the Equinor allocation, which will keep on increasing. I'll not say 70% top it up. Some of the contracts are expired or getting expired. The proportion of government gas supply will keep coming down over a period of time, and the Equinor proportion will keep going up. Sir, Equinor pricing will be lower than what we are phasing out, right? Yes, it has commercial benefits. Sure. Thank you, sir. Thank you. Our next question comes from the line of Viraj Mahadevia with MoneyGrow India. Please go ahead. Hello, congratulations on the fantastic numbers starting to come through. Quick question, your gross margins have expanded by about 5.5%. Can you attribute that as a split of what comes from higher pricing playing out at the revenue level versus positive impact of the Equinor supplies at the cost or RM level? Okay. I will not go that path. It's a mix of all levers, sir. It's not just one lever which has played out. The cost has done better. Also, the realization has helped us to improve this margin. Both have played in this margin improvement journey, including efficiency side, like debottlenecking the capacity, what we've gone through. Everything has played a role in helping us to deliver this margin portfolio. Understood, sir. Are prices holding up as you move into Q2 on the revenue side? Okay. Holding up is a difficult, or I'll say, is a different question. It's still at an elevated level. Yeah. That's what I mean. It's still at an elevated level, yes. Not the same what it was during the peak of the war. Some softening was expected. That has happened, but that's planned, or a factor, I call it. Against that, Equinor gas supplies on the RM side were only for two out of the three months of last quarter. Now you'll have full quarter contribution from that. Yeah. We'll have an impact of full- quarter this. Excellent. Thank you. All the very best. Thank you. Thank you. The next question comes from the line of Ritesh Bhagwati from Alpha Plus Capital. Please go ahead. Thanks for taking my question, and congrats on great set of numbers. My first question pertains to our DMSL subsidiary. Could you just please elaborate on how are we planning to deal with DMSL in respect of the corporate structure? Are we more inclined towards the IPO effect, or are we more actively looking at other options like demerger or a spin-off structure for the same? Okay. No, in fact, in principle, we are committed to take this entity and list this entity. The form is something which is yet to be decided, whether it will be a demerger on an IPO route. We're yet to take that call. Maybe in a due course we'll take that call and communicate our intentions to the market. Okay. Just from the shareholders' perspective, I just thought, if it's a demerger sort of a thing, the existing shareholders of DFPCL would get the shares, and this basically will send a strong signal in terms of the alignment of the minority shareholders. Plus, it also will help our company in terms of the overall SOTP value instead of getting a whole co, if at all we get an IPO listing. Have you guys thought of that? No, sure. We take all input, which is right input, I call it, an important input from all stakeholder perspective. Yes. Have we taken a decision? Not yet. All right options will be evaluated, and we'll take a right call, I call it, which is beneficial for everybody. Okay. That's all. That is from my side. Thank you. The next question is from the line of Parth Sodha with Trinetra Asset Managers. Please go ahead. Yes, am I audible? Hello. Yes. You are audible, sir. Yes, sir. First of all, thank you for the opportunity. My question is, first, once Gopalpur and Dahej stabilize, where do you see the next leg of growth coming from over, let's say, next three to five years? It's further capacity expansion, higher value-added specialty products, or deeper integration across the mining and industrial chemical portfolio? No, in fact. Okay. There is a first leg, which is leg of growth, which is expected with these two capacity coming up and getting ramped up. The next leg of growth, that will come from all levers. I will not say just one lever. All businesses, like DMSL, is committed to move towards downstream and grow that piece. Same way, Croptek or fertilizer business is on premiumization, moving more and more towards value-add business of specialty and Croptek, and similar industrial chemical getting into more premium specialty side of the business. All those levers will continue to play in our growth strategy and take it to the next level. Yes, I call it, at some point of time, we need to see the next growth engine, and we will come back. It is too early. We are currently at the phase where we are completing our current phase of CapEx, and that is more important for us to complete, take it to the execution. Start planning the next phase of next round of growth from where it comes in. We will come back and then share at the right time. The current business growth in a normal course will continue through the levers, through the strategy which we already articulated. Got it. Thank you so much. Thank you so much for the opportunity. Thank you. The next question is from the line of Yash Gupta with Think Site Advisory. Please go ahead. Congratulations on the good set of numbers, sir. First question on the cash flow side. Currently, we are having a total debt of INR 5,000 crore and some CapEx need to be paid out in maybe Q2, Q3. How we are looking at next two year down the line, this debt number going to be? Are we capitalizing any interest cost as of now? Yeah, interest cost as a part of this project, the loan taken for these projects are capitalized. That happens as a normal accounting. The current debt level, net debt we talk about is almost around INR 4,700 something, INR 4,800 crore. We are more or less near to our peak debt, I call it. There may be some more debt since we are in the last leg of our project completion. Broadly, we have reached to a level where our debt level is reaching towards peak. Post that, with the new CapEx start contributing to our EBITDA as well as to our cash flow and with the integrated value chain continue to give us the operational cash, the deleveraging strategy or deleveraging of balance sheet will start. We do expect from now onward, we should start seeing or from this year onward, we should start seeing our deleveraging getting reflected on our balance sheet and the ratios. Sir, in this both project, what kind of a working capital requirement we are seeing? Like suppose in FY 2027, we make free cash flow of INR 2,000 crore and working capital would be like INR 1,000 crore or INR 1,500 crore requirement. I'll say both of these businesses are not heavy on working capital. They are more B2B business. They don't have very high working capital. They are working capital efficient business, so the cash flow from this business will be better. Okay, sir. How you are looking at FY 2027 to end? We have started on a very high note of INR 100 crores of PAT. What's our expectation to end this year? We are expecting Q3 and Q4 to be like a little more heavy on the new CapEx side. It's a simple thing, the thing which is going to play next few quarter, if you see. I'll again go back. The two new CapEx which are coming up will start contributing to our bottom line in Q4, definitely Q3 onward, I call it. That will be in the base when we talk about Q4. Also the gas supply, which is now partly benefit with this quarter as seen, started seeing a full quarter benefit. Then the Equinor gas proportionate increase will happen over a period of time. Those benefits will start flowing in. By the time we end this year, our base level will change from where we started, I call it. The new normal level will start reflecting in our results. That's what we foresee. The new level will be an elevated level by the time we end this year. Last question. What the risk for next six months to 12 months? I understand it's difficult to say how the things will change from here on. What are the risks that our business may face in next 6- 12 months? You answered yourself instead of me answering. This is an international business, things do impact, I call it, if some decisions are taken. Most of the time, if it's a geopolitical international, most of the time I say it's beneficial or favorable. At time, if supply side disturbance happen, those things can impact anybody. We are not isolated from that. Broadly, barring those external, I think rest of things, execution front, we are well-placed, and we are working on our strategy front, and that's what makes us far more resilient and help us to deliver. Okay. With our TAN business, the volume we have lost due to PESO portal changes, this will going to make in Q2 or Q3, or it's a loss only? No, that was only few weeks or I'll say few days disturbance. That's behind us. Okay, sure. Thank you, sir. Thank you. The next question is from the line of Darshan Jhaveri with Crown Capital. Please go ahead. Hello. Good evening, sir. Thank you so much for taking my question. Firstly, congratulations on a really great set of results, sir. Sir, I just wanted to know, as you feel like the prices will even after the war, it's going to be elevated. For the full- year, we could see similar EBITDA margins as Q1, right? Would that be a fair assumption, sir? I won't say that. Too difficult, too early for any of us to make that guesstimate, I call it. Okay. Fair enough, sir. Sir, post the CapEx coming in, like in FY 2028, we should have near optimum utilization, right? What kind of, if you could share any kind of revenue that we expect in FY 2028 or margins to do, that would be really helpful, sir? The revenue, definitely, the new capacity will add into our revenue. The capacity is already announced. The numbers, the quantity which is expected to start contributing is known. Average realization we always have shared, so one can compute and see what kind of a revenue trajectory we'll be playing. The margin. Current margin may be slightly elevated, but if one applies a standard margin, the new trajectory will be visible, I call it. Take that way and then work it out. Oh, okay. Fair enough, sir. Yeah, that's it from my side. Thank you. Thank you. Thank you. The next question is from the line of Nirav Jimodia with Anvil Wealth. Please go ahead. Yeah. Thanks for the opportunity. I just have two questions. One on the Equinor side, you mentioned that there will be some of the existing LNG contracts which would be going out and Equinor would be taking up the bigger share, in times to come. Let's say, if I'm not wrong, our contract is for 0.65 million tons of LNG, which we have contracted on. Let's say from next year onwards, when those contracts which currently are in place would be going away or phasing away, how much of Equinor would be forming our total LNG requirement for the ammonia production? Equinor contracts, the way supply has been scheduled, once the phase in/phase out gets completed, Equinor gas will be more than enough for meeting our requirement. We'll not be dependent on any other gas source. Perfect. In terms of pricing, generally, the LNG contracts are based on the slope of the crude prices, the benchmark crude. How is our contract like in terms of Because most of the contracts are on a prices of preceding six months of the crude prices. How is our contract with Equinor in terms of pricing? No, I'll not talk about the commercial terms of that contract. Yes, the way our pricing are, our pricing is much, I'll say, is efficient or well constituted. It's commercially favorable, currently the way prices are, we are definitely having a efficient or I say cost benefit in the current supply chain the way things are. Let's say when everything would be replaced in terms of phasing out of the old contracts, based on the commercial terms and the understanding what you have, what sort of savings we could envisage on an annual basis from this LNG supply? It is sizable. Exact number we'll not share, but it's a good saving, I call it. I think one of the numbers which the MD sir mentioned was about close to around INR 300 crore. Possibly, is this the peak number which we are talking about, or this is for this financial year and next year the benefits could be larger? Okay. Now, basically, it all depends. I'll say the way things are currently, this numbers is right. With the change in crude prices, Henry Hub prices, all the international prices, the saving can go up, can come down. But broadly, if you say, if things remain broadly on a similar line, we expect this savings to start flowing in. Correct. The savings could be higher than this number for next year probably, correct? It depends. I'll not say. The market scenario conditions can change. It can be higher, or it can be slightly lower also. Perfect. Second question is on the industrial chemical side. I think this quarter, if I'm not wrong, we produced close to around 200,000 tons of weak nitric acid, which last quarter was around 235,000 tons. One was the lower production of TAN which could be attributed. Let's say on product placement side in the domestic market, I believe that the other players on the nitric acid chain would be also facing difficulties in terms of sourcing ammonia. Was the demand also fallen during this quarter because of the downstream demand not great, or it's a general phenomenon of a quarterly thing that our production, which was not sold for TAN could not be placed in the other value chains? If you see nitric acid, our nitric acid third party sale or the merchant nitric acid sales, the volume is flat. We haven't lost nitric acid volume versus last year same quarter. It's almost a similar thing to around 80/20. That's what we have sold. Similar quantity we have sold last year also. The way we look nitric acid, there's a captive nitric acid and there is a merchant nitric acid. Captive nitric acid goes along with the business. Sudden drop, sometimes it's not easy to just go and start placing it outside. Got it. Last two things. Is it possible to share what were the realizations for weak nitric acid for this quarter? Secondly, on the ammonia side, have you been able to sell some merchant ammonia in the market? And if yes, if you can just share the volumes, that would be helpful. Thank you so much. We do sell merchant ammonia. That is normal because that's our normal business model. We do produce and we do buy or I say trade, import merchant ammonia and sell in the market. That continues, and it's part and parcel of our business model. For production. No, even for production also, the days when we are running at full capacity, our plant do have some surplus ammonia apart from what we need for our captive consumption. Whatever surplus we get, we sell it as a merchant ammonia. That practice continue and that's a business model already well instituted. When it comes to grade specific NSP, we don't share that. Although you'll see our investors presentation, total volume and total sales value is there, so average NSP is visible. Averages we do share, not grade specific. Correct. For NPK fertilizer grades, what we manufacture, I presume that last year we produced close to around 760,000 tons. Just going by the conversion, we would require close to around north of 300,000 tons of ammonia. For that business particularly, we procure ammonia from various sources and use it for the fertilizer business, and has nothing to do with our captive ammonia production, right? I don't think your numbers are right. For all our three captive businesses in Taloja, we use captive ammonia. Okay. Only for Gopalpur we are going to buy ammonia and use, because the economics will not work, neither we have capacity for that. Perfect. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of Meet Vora with JM Financial. Please go ahead. Sir, thanks for taking my question. First question was on TAN. Over last few weeks, we have seen disruptions in supply chain from Russia because of Ukrainian drone attacks near the Black Sea area, which has led to increase in AN prices. What is the sense that we are getting from the supply chain disruption in Russia? Is there a possibility that the Russian government could again ban AN exports like what we had seen in April? How do we view this in the context of the fertilizer season in Brazil? If it coincides, then this could keep AN prices on elevated levels for some time. Thanks for the question. Tarun here. I think you have answered your question. That's what we are hearing from some of the global analysts as well, that given the situations you described, there is a possibility that the government of Russia may think of putting a ban on export. We are hearing this could be from October this year. If that happens, then we'll have to see what other dynamics come out of it. I'm with you. That's what we are hearing as I said from other analysts as well. Okay. Sir, secondly, what will be the current price of ammonia FOB Middle East? It's around $600. Okay. Just I wanted to ask that, are we seeing any major exports from China which could potentially offset supply disruption in Middle East and may keep prices under control for some time versus what we had seen in Q1? Maybe that could be beneficial for our Gopalpur plant. Just wanted to get your sense, because you were saying that you expect ammonia price to remain elevated for next two to three quarters. Not immediately. We are not seeing major supply coming in at this point of time. Under long-term contract, it will flow in, but nothing which is disturbing completely the market. Not expected to happen. By elevated, we expect ammonia prices to remain around $600 + kind of level for next two to three years. That is what you are trying to say? I'll not say next two to three years. Difficult for anybody to predict. Two to three quarters. Currently, it's around $600. Okay. Yes. It all depends how war situation is actually. If war stabilizes, then some softness will happen, expected. Yes, will it come back to the same level? May not be. A new elevated level may get settled, that's what we are expecting. That will be, let's wait, I call it. Sure. Thank you so much for answering my questions and best of luck for the coming quarters. Thank you. Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, gentlemen. Thank you. Thanks everyone taking time participating in our call. As always, I wish all of you best of luck and stay healthy, stay wealthy. Thank you. Bye-bye. Thank you. On behalf of Sunidhi Securities, that concludes this conference. Thank you all for joining us. You may now disconnect your line.