Ladies and gentlemen, good day. Welcome to the Q1 FY 2027 Earnings Conference Call of DOMS Industries Limited, hosted by ICICI Securities. The presentation and the results release, which DOMS Industries Limited has uploaded on the stock exchange and their website, including the discussions during this call, contains or may contain certain forward-looking statements concerning DOMS Industries Limited business prospects and profitability, which are subject to several risks and uncertainties. The actual result could materially differ from those in such forward-looking statements. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniruddha Joshi. Thank you. Over to you, sir. Thanks, Avirath. On behalf of ICICI Securities, we welcome you all to Q1 FY 2027 results conference call of DOMS Industries Limited. We have with us today senior management represented by Mr. Rahul Shah, Chief Financial Officer. I will hand over the call to Rahul bhai for his initial comments on the quarterly performance. We will open the floor for question- and- answer session. Thanks. Over to you, Rahul bhai. Good afternoon. A very warm welcome to everyone. Thank you for your time and for joining us today for the Q1 FY 2027 earnings call. Joining me on this call is the team from Marathon Capital, our Investor Relations advisor. I hope you have had a chance to review the investor presentation and the results release posted on the stock exchange and our website. We were able to maintain our growth momentum in Q1 FY 2027 despite a difficult external environment, including a sharp increase and continued volatility in raw material prices. This was driven by robust domestic demand leading to volume growth, supported by a strong back-to-school season, coupled with marginal increase in ASP on account of calibrated price increase to partially offset the significant increase and volatility in raw material prices. All our core categories witnessed healthy growth. Scholastic stationery, scholastic art material, and paper stationery growth was led by the back-to-school demand, backed by new launches and capacity additions undertaken in the recent period. Our office supplies category continues to see high positive traction led by growing demand for our pens and a widening portfolio of products. The new launches across mechanical pencils, erasers, paper stationery, pens, pencil boxes, school bags, and kits and combos received strong consumer acceptance. This reaffirms our capability to drive growth through consumer-centric innovation and agile product development. Beyond our traditional-led growth, we also saw high growth traction in new age channels of modern trade, e-commerce, and quick commerce. This was primarily driven by momentum in our baby hygiene segment. Export growth was flattish during the quarter, primarily due to the global disruptions and elevated logistics challenges arising from the ongoing war situation. Coming to our margins and cost environment, sharp increase in raw material prices and volatility persisted during the quarter, driven by ongoing global uncertainties. We continue to manage this through prudent procurement to ensure uninterrupted operations. The company has chosen to remain focused on volume-led growth and market share expansion over near-term margin consideration amid sharp and volatile commodity inflation. Coming to the details of our financial performance for Q1 FY 2027. Operating revenues for the quarter grew by 19.2% to INR 670 crore, in line with our annual guided range, highlighting our sustained growth trajectory. EBITDA for Q1 FY 2027 were down by 16.4% to INR 82.6 crore, with EBITDA margin at 12.3% in Q1 FY 2027 as compared to 17.6% in Q1 FY 2026, primarily on account of fall in gross margins by nearly 400 basis points due to sharp raw material inflation linked to the West Asia crisis. Further impact on EBITDA was due to higher employee benefit expenses on account of new tranche of ESOP grants and increased employee headcount, and increased other expenses, primarily due to expenses linked to organizing our channel partners meet, along with the ceremonial occasion to mark the possession of the first building of the 50+ acre project. PAT for Q1 FY 2027 stood at INR 45.3 crore as compared to INR 59.1 crore in Q1 FY 2026, and PAT margin for Q1 FY 2027 stood at 6.8% as compared to 10.5% in Q1 FY 2026. PAT growth was impacted primarily due to increase in depreciation on account of capacity expansion and commissioning of new facilities. We see this moderation in margins as a temporary blip rather than a structural deterioration and continue to maintain our focus on volume-led market share growth. In relation to updates of our ongoing capacity expansion, our overall expansion plans are progressing well. Development at the 50+ acre Greenfield Project is now on track, and we expect to commission close to 300,000 sq ft of operational area by the end of Q2 FY 2027. This, along with expansion initiatives in adjoining areas, will help us scale capacity to capitalize on the latent demand for our products. The company has already invested close to INR 100 crore in Q1 of FY 2027, primarily towards capital investments. Coming to the update on the Reynolds brand team and asset integration. The implementation of the asset purchase agreement is progressing as planned. The integration of Reynolds team personnel, along with the movement of assets at our Umbergaon facility, is now complete. The brand's full sales potential will be unlocked over a time as integration progresses, as well as on commencement of manufacturing under the Reynolds brand, aligned with the commencement of the operation in the first phase of our new 50+ acre Greenfield Project targeted for end of Q2 FY 2027. In the interim, until the desired scale is achieved, the apportionment of cost may exert some temporary minor impact on margins. Overall, we are very excited about the fundamental rationale behind the Reynolds acquisition. The strong presence in the INR 10- INR 100 price segment of pens complements our portfolio and helps us elevate the group's product price architecture. Further, by leveraging the legacy and brand equity of Reynolds, we aim to deepen consumer engagement across generation and is a strategic step in strengthening our office supply segment portfolio. As we look ahead, our guidance for 18%-20% consolidated sales growth is further reinforced by the positive demand undercurrent in the domestic market. However, visibility on margin guidance remains limited owing to abrupt fluctuation in raw material prices. Thank you. With this, I would now request to open the floor for question and answers. 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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kunal Vora from BNP Paribas. Please go ahead. Yeah. Thanks for the opportunity. Now, the first question is on margins. How should we think about the trajectory from here? Is it fair to say that your margins this year will remain slightly weak due to higher RM costs, additional expenses for the new factory, which you will start booking at least to some extent, and initial costs for Reynolds, and these will only normalize in FY 2028? Why have you not taken larger price hikes? That's the first question. Hi, Kunal. Kunal, like we'd mentioned, for us, our priority was very much clear that we wanted to focus on volume-led growth, ensure that the market share growth trajectory is retained. Therefore, with respect to our pricing decision, we've taken very calibrated price increases. Towards the end of June, once the situation with the war was turning out positive, we've seen the raw material prices to come down from their highs. However, in the last couple of weeks, again, we've started seeing some increases because of the renewed situation in West Asia. Hence, again, the raw material prices have started going up. Over a period of time, we believe that the raw material prices will not be sustained at these high levels. They should probably cool off soon. Once we come to know the new base, in order to reach our earlier margins, if there are any further price increases to be taken, we will be taking that. Right now, owing to the abrupt fluctuation in raw material prices, visibility on margin guidance continues to be limited. In FY 2028, I think structurally there is nothing that has deteriorated, and once we have some stable price levels, the company will take the required decision to ensure that we again reach to our guided range of about 16%-17%. Okay. Second is, as the production at the new facility starts in the coming quarters, how should we think about the revenue growth in second half? There'll also be price hikes which will be contributing, and there'll be increased capacity. Would you expect to go beyond 20% growth, excluding any impact from Reynolds? How should we think about Reynolds' contribution in FY 2028, which will be the first full year of operations? Kunal, see, Reynolds is a brand and asset acquisition that we did. We did not take over any new manufacturing facilities from them. The capacity to manufacture and sell Reynolds product will be coming from our existing planned expansion only. It is not going to add anything. It's just that, otherwise in that particular plant, we would have manufactured DOMS branded pens. Now we will manufacture Reynolds branded pens. It's not going to add significantly to the revenue projections for the current financial year. With respect to the new capacity coming up in H2 of this financial year, this was already planned, and when we guided for the 18%-20% revenue guidance, we've taken into consideration the new capacities which would help us to reach this volume growth would come from the 50+ acre plant. From a revenue growth perspective, we continue to guide with the 18%-20% revenue growth in the current financial year. What's Reynolds brand right now in terms of revenue number? Once you integrate that in FY 2028, where do you see the Reynolds brand revenue to be? Right now Reynolds, when we acquired Reynolds in the previous financial year, Reynolds had done a sale of about INR 130 crore-INR 140 crore. We believe that we will be able to add significant value to this brand, not only in terms of introducing new products within the writing instruments segment, but also leveraging this brand for other product categories. Our intent is to operate Reynolds as a parallel brand focused towards the office segment as well as users, which are professionals. I would say serious user sort of a thing. With this background, in addition to the existing range of products, we will also launch other products that shall fit right with this brand DNA. Given this, we believe that, in a short period of time, in the near term, probably by FY 2029, Reynolds brand should be contributing close to 20% of the company's overall revenues. Understood. Just last question. With all of these things happening, Reynolds- Sorry to interrupt. Mr. Vora, may we request you return to the question queue for a follow-up question? Sure. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Sneha from Nuvama Group. Please go ahead. Hi, sir. Thanks a lot for the opportunity. Just couple of questions from my end. You did mention that there are a lot of one-offs, right? One was ESOP related, one was new facility related, then there was raw material prices which could not be passed on. Could we get some color in terms of individually how much have you passed on in terms of raw material pricing? I do understand that scenario remains volatile, but how much of it is left to pass on, which will clear up two things that how much of price increase is accounted in revenues and how much is volume growth? Also will give some flavor on margins. That was first one. Hi, Sneha. Right now we've taken on an average price rise of about 4%-5%. If I have to just talk about the first quarter, the average raw material price increase was about 20%. You multiply that with our consumption margin. Overall consumption increased by about 10%-11%, where we were able to pass on 4%-5% and hence 500 basis points was something which was left to pass on. Like I said, we've seen some amount of moderation in the raw material prices. Hopefully, from what we heard as recent as Sunday, things should now stabilize again. Probably those raw material prices should come down a bit. With respect to the one-off expenses, like I said, in terms of ESOP, in the previous year same quarter, after that we'd given one more tranche of ESOP, that added about 0.2% to the cost. There has been, I wouldn't say a one-off expense, but a non-recurring expense in terms of the channel partner meet that we organized while we were taking the possession of the first building in the 50-acre facility. That impacted our Q1 margins by about 0.4%. Understood. Rahul, following up with the last previous question where you said Reynolds itself will become 20% of your revenues by FY 2029. 10%. 10%. Okay. That clarifies. Despite all of those things in an office supplies business, what we understand will be the biggest driving factor in your revenue growth. Don't you see any upside to 18%-20% estimate because INR 350 odd crore coming in effect only from a newly acquired brand and your previous guidance was itself 18%-20% sort of a CAGR. No, Sneha, that's what I tried to clarify in the previous answer to Kunal also was basically, see, Reynolds as a brand is an addition that is coming, but we've always been constrained with the capacity which we have. While we've acquired the brand, we are not acquiring any physical capacity. My land building, it's still something which is constraining factor, and that growth was already planned. Instead of those growth coming in DOMS, we will try to get some growth in Reynolds work as a parallel brand, introduce some more products. Let's say we plan to launch diaries and paper stationery products under the Reynolds brand. It is going to come from the same facility of the paper stationery capacity that I have. It's just that diversion of capacity. Some capacity would be for Reynolds brand. Yes, with Reynolds, we believe that ASP might increase a little better because Reynolds, like I said, especially in the writing instrument segment, targets the INR 10 plus between the INR 10, INR 100 price point. ASP might improve a bit, but not a lot of volume growth that would come. It would be more of substitution from selling DOMS branded products to Reynolds branded products. While I agree with you in that terms that today we have capacity constraint, but we were looking at the bigger picture for FY 2029. Do we really have to? Because by then we'll definitely have large amount of capacity. You're working on a 50-acre land. You're already starting in Q2, and assuming by FY 2029 you'll have manufacturing set up expanded already. Why do we need a substitution? Why can't we run both the brands simultaneously was my question, and why can't both the brands contribute? No, both the- Ladies and gentlemen, we have the management line disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, we have the management line reconnected. Sir, you may please proceed. Hi. Sorry, we got disconnected. Yes, Sneha, what I meant was, while we continue to grow, the growth denominator will keep increasing. The new capacity, the 50-acre plant and another around 18 odd acres that we've acquired adjacent to our current facilities, both in Umbergaon and in Jammu, that will also come under development. A lot of new capacities will be added, and they would be sold in the DOMS brand and Reynolds brand both. Got that. Now understood. Thank you so much, team, and all the very best. Thanks. Thank you. The next question is from the line of Jinesh Joshi from PL Capital. Please go ahead. Thanks for the opportunity. Sir, in the opening comments, you mentioned that our focus is on volume-led growth. Sir, given the ticket size of our products and our market leadership position, why are we hesitant to maybe take a slightly higher price hike to compensate for the RM inflation? I mean, do you think that this can lead to any kind of down trading? Historically, has there been any precedent of any peer taking a price hike, which has consequently led to any kind of loss in market share? We believe that something similar could perhaps play out with us. Hi, Jinesh. Jinesh, in terms of historically, what we've seen is whenever such inflationary cycles have come in, when you take price increases, being a leader brand and enjoying strong position in a lot of product categories is definitely something which we could do. During such time, it also allows a lot of peers and especially small and unorganized players also to have some breathing space. Historically also, when we've seen such inflationary cycles, we tend to be a little more aggressive when it comes to pricing, because that allows us to ensure that the breathing space given to the small unorganized players is reduced, which results in sustained market share growth for branded players. We'd experienced something similar during the COVID period. If you look at our pre-COVID numbers, you would see the company's revenue growth and margin trajectory had changed. Similar we'd experienced during the start of the Russia-Ukraine war, when, again, crude and crude derivative prices had increased. It's a choice that we've taken that during this time, only for a near-term margin consideration, we don't want to increase the price, but become a little more aggressive to ensure that long-term benefits to the company are received in terms of higher shelf space in the retail counters. Understood. Sir, my second question is on Reynolds. Now, if I'm not mistaken, we have just bought the pen business and have chosen not to buy the OEM nib business of theirs. Just wanted to understand the rationale for not buying the nib business, because that could have provided an immediate backward integration advantage to us, given the fact that we do not have the manufacturing capability. Also from their perspective, if they are selling the pens business, bundling the pens business with the OEM piece would have given them a perfect exit. It was like kind of a win-win situation for both of them. Just wanted your thoughts why we chose not to buy the nib business. Jinesh, let me first clarify. It is not that we chose not to buy the business. Reynolds is basically owned by Newell Brands. Newell Brands is a $7+ billion revenue-generating, U.S.-based entity. They have multiple brands and multiple businesses across the world, they were specifically looking at exiting only the Reynolds and Reynolds-related asset business in India. They globally manufacture own brands like Paper Mate, Sharpie, Parker, which are big brands within the writing instrument segment. A lot of their tips for these products are manufactured in India. Strategically, they wanted to continue the tip manufacturing business. When we entered into discussions with them, what we understood was they were looking at only exiting the Reynolds brand and related assets. That is why we did the transaction only for the Reynolds brand and the assets. Coming to the tip manufacturing, from a backward integration perspective, we've already got the first tip manufacturing plant in India. It's a Swiss-imported plant that we've got in India. Currently the installation is going on. There have been more machines which for which we've ordered. I think, over the current calendar year plus the coming calendar year, a lot more machines are going to come in, which will help us to manufacture at least about 30%-40% of tip requirements in-house going forward. Got it. Understood. Thank you. Thank you so much and all the best. Thanks. Thank you. The next question is from the line of Aradhana Jain from 360 ONE Capital. Please go ahead. Hi, sir. Thank you for the opportunity. Couple of questions from my end. I wanted to understand on the crude salience in our core stationery category and in the diaper business. The reason I am asking this is, if I see the margins for your core stationery business, there we can see a clear-cut reduction of close to around 600 basis points. Your EBITDA margins for the Uniclan business has been intact. Wasn't the Uniclan business also impacted because of crude? That's my first question. Uniclan business also was impacted by crude. There are a couple of key raw materials in a diaper. One is SAP, which is like a super absorbent polymer, again, a derivative of crude. Second is even the non-synthetic fabric they buy. What happens with Uniclan, because there is some more visibility, and these products are basically imported, they give purchase orders well in advance. The deliveries for that happened at the originally agreed prices because there was a little bit of a long-term agreement. The raw material prices there have also increased, and probably we'll see that impact of that in the current quarter. Could we. Please go on, sir. Sorry. Go on. Go on, Aradhana. No, sir, I was asking, could we expect like in 2Q to see some more margin depletion on account of, say, the higher cost inventory on account of, like I'm assuming in 1Q, you would have some bit of lower cost inventory also, which would have helped you. In 2Q, could you have more of higher cost inventory, which could lead to some more margin depletion at the gross margin level? I don't see that because, see, at DOMS, which is much larger when it comes to consolidation, we do not carry very significantly higher quantities of inventory, especially polymers, because they are all locally purchased. It's not that we had significantly higher volumes of high cost or low cost inventory during the earlier quarters. We don't see that significant impact to come on margins. In the diaper business, yes, there will be some impact, at the same time this is going to be the start of the seasonality of the diaper business from Q2. Q1 is always a slower quarter for the diaper business because it's sunny days, there's heat all around India. Fixed cost absorption is a little less during that quarter. Sales are relatively lower. With the season pickup happening from the second quarter, the fixed cost absorption should be slightly better, which might offset some amount of increase in the consumption margins. Overall, we don't see it will significantly impact the overall EBITDA margins. Understood. Any further price hike, are we anticipating or the 4%-5% that we've already taken is sufficient to cater to the volatilities that still exist in the crude side of things? As of now, in the current quarter, we are not looking at any further price hikes. We believe that we would want to wait for the volatility or the abrupt fluctuations to settle. After that, if we believe that any price rises are required, once the base of the raw material prices are a little visible, then we might take a call. In the current quarter, we are not looking at any significant price rises. Understood. Just two more questions. One on export revenue that saw a decline this quarter. What was the reason for that? Which are the key exporting countries for us and which didn't do well? Second is on the West India revenue also, we see there's been a degrowth. If you could just highlight what was the reason for that. Export growth was more flattish in Q1 FY 2027. One, due to demand softness amid persistent inflation and subdued consumer sentiment in certain EU economies. Further, it was also affected by the West Asia disruptions, leading to longer transit times, higher freight cost and shipment difference. That is the key reasons. Even West Asia, which contributes about 2% of our overall sales, it's not still completely opened up in terms of sales. Those were the key reasons why export was flattish. With the new capacity, especially in the pencil segment, which is coming up, we believe that going forward, pencil is a product which we export about close to over 25%-30% of our wooden pencil sales comes through export. With the new volumes that are expected to come up, export sales is expected to grow. I think for the full year, exports should be around 13%-15% of our overall sales. Understood, sir. West India? I don't know. West India, you're comparing it with which period? Last year, 1Q, we did around INR 185 crore, INR 186 crore of revenue. This year we are at close to INR 130 crore. On a YoY basis, sir. See, we earlier also highlighted this, that some of our merchant export revenues, which are actually export done by third party merchant exporters, that happens through customers who are based in western part of India. We've got a few merchant exporters in Mumbai and Gujarat who do onward export sales. The overall export sales, because of these fluctuations which we just highlighted, were impacted. Because of that, even export, those West India sales gets impacted a little. Understood. I'll join back with you. Thank you. Yeah. Otherwise, there's no change in the regional mix. North, followed by West, and then East and South continue to perform in that order for the company. Okay, sir. Thank you so much. Thank you. The next question is from the line of Rahul Agarwal from IKIGAI Asset. Please go ahead. Hi, sir. Good afternoon. Just two questions. Firstly, to understand, is it possible to understand that if the company does a CapEx of, let's say INR 200 crore-INR 250 crore a year, how much sales can they add in the overall top line? Is a 2.5 number fixed asset turn reasonable? The 3 lakh square feet which you are commissioning this year, how much sales can that add? That's the first question. Hi, Rahul. Rahul, firstly, historically we've always targeted that for every rupee that we invest as CapEx, we should be able to generate INR 3 of sales. If you see historically, we've been able to achieve that. Even if you look at the last year's number, we were close to about +2.7x and very close to our targeted range of 3x. Once the production facility is set up and starts commercial production, it takes us about 18-24 months to reach the full optimal level, which is about 3x on the rupee that is invested. Your second question with respect to this 300,000 sq ft of space which is coming up. In this 300,000 sq ft that we'll start commercial production in the end of this quarter and eventually we'll start gaining pace and momentum in H2. We are increasing our capacities for pencils, wooden pencils, pens, erasers, which is a complementary product to pencils. When we talked about that 18%-20% growth for the full year, a large part of the growth for the second half of the year will come from these facilities. Like I said, we believe these facilities to gain complete commercial production, full utilization in about 18-24 months. Right, sir. My second question is on margins, to understand it better and just a clarification rather. I could understand that there is still some gap, assuming spot RM pricing, when you have taken 4%, 5% of price hike, there's still some gap to cover. Let's forget the shorter term. If we just understand the fiscal 2028 math, at current spot RM pricing and the price hikes you have taken, do you think the company should go back to 16%-17% of operating margin? Is that a safe number to assume for the next year? Just one question was on the ESOP thing. If you could just quantify the amortization of ESOP in terms of total cost for the full year for FY 2027 and FY 2028, which is expected to get booked. Okay. First I'll just answer your second question with respect to ESOP. The cost for the total year for ESOP for both the tranches, put together, should be close to about INR 10 crore. The one which we did in October 2024 and then in February 2026. Both these tranches put together, for the full year, the cost should be close to about INR 10 crore. With respect to the gap in margin, like I highlighted earlier, as per the current prices, we see that there would be a gap of about 4%-5% as per the current spot prices. If the prices continue to be at this level, then that is the increase that we might have to take to ensure that our margins for FY 2028 reach back to our targeted range of 16 odd percent. Just a clarification on this ESOP, INR 10 crore is for fiscal 2027, right? Yeah. For the fiscal 2027. Fiscal 2028, what will be the number? See, basically as part of our ESOP policy, the current policy, we plan to give out ESOPs over a five-year odd period. We've done that for the two periods. Even this year, there will be some ESOP outlay that will happen, and this will continue for the next couple of years. This number will rise again. We'll be able to quantify it once we decide on how much ESOPs will be granted in the current financial year. Additional ESOPs will be granted in the current financial year. All right, sir. Maybe I'll get back in the queue. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of Rehan Syed from Trinetra Asset Managers. Please go ahead. Good afternoon to everybody. Hope you're doing well. Am I audible. right? Not very clearly. Now? Hello. Now it's clear? Sorry to interrupt. Mr. Syed, you have a lot of background noise. Can you please use a microphone while asking a question? I'm on headset only. Now it's clear? Hello. Yes. Please go ahead with the question. Yeah. Sir, my majority of questions have been answered. Just I have left with one question. Just wanted to understand regarding on the export side. Your exports remains a relatively small part of revenue, despite the F.I.L.A. partnership. What are the key bottlenecks preventing faster export growth? Do you see exports become a double-digit percentage of revenue over the medium or long term going forward? Syed, export is currently also double- digit. It's close to 12% of our total revenues. I wouldn't say there are any bottlenecks or anything. It's just that company continues to remain constrained with capacity and historically as well, whenever it's come to choose between exports and growth in the domestic market, we've always prioritized the growth in the domestic market. Whatever new capacities, whenever they've been added, the domestic market has supported or accepted it wholeheartedly and a bulk of new capacity additions, which actually drive the revenue growth of the company, have been absorbed in the domestic market. That is the only, I would say, challenge. Challenges in terms of capacity. Like I said, with some new capacities coming for pencils, new capacities coming for some innovative, differentiated products, export, at least in the near term, will gain slightly better momentum than it has done in the past. Got it, sir. That's it from my side. Thank you. The next question is from the line of Percy from IIFL Capital. Please go ahead with the question. Hi, Rahul. You mentioned that FY 2027, despite Reynolds coming in, we should take 18%-20% type of top line at the total company level. What about FY 2028? Would it also be 18%-20% or Reynolds will add some incrementality to it? Percy, a little early to guide about the revenue growth in FY 2028. I believe the growth trajectory momentum should remain similar. Like I said, it is from the planned capacity, which was expected to drive growth in the coming two, three years. From that, we will divert some capacities to manufacturing Reynolds branded products. Those would not incrementally add significantly to revenue growth. It's just that we'll be able to create a parallel brand. Yes, there would be some growth because of relatively higher ASP under the Reynolds brand, but not something very substantial. We probably want to discuss on FY 2028 growth numbers a little later in the next couple of calls, probably. Rahul, when we have acquired a brand, when the demand is there for that brand in the market, what really prevents us from, let's say, adding significantly higher CapEx and starting to sort of add it right away? Let's say some part of it comes in second half, some part of it comes in first half of next year. Why can't we do, let's say, over the next 12 months, INR 400 crore of CapEx instead of the INR 200 crore or INR 250 crore we are planning? We certainly have the internal accruals and even if little bit of debt is required, we can take it. There is a market for this product and we have done an acquisition, and if ultimately it's not going to add incrementally to sales, that is a lost opportunity for us. What prevents us from really doing higher CapEx now? Space. Like we said, we are already constructing this massive project. Earlier it was about 45 acres. We've acquired more additional land. It's now about 50+ acres of land, which is under development. As and when these buildings get ready and developed, we'll start manufacturing activities in these buildings as fast as possible. In addition to that, close to our existing flagship unit, we've acquired another 11+ acres. In Jammu, we added land building. We are doing CapEx, but it's probably easier said than done in terms of deciding that let's do INR 400 crore together today because a lot of planning needs to happen. We need physical space, which has been a constraining factor because of which we've been constructing these landed buildings. I think like I said, because of Reynolds, there will be incremental revenue growth that will coming, but that will be more from a perspective of being able to sell at a higher price point which will help us in improving our ASP, but not a lot of volume growth will come because of Reynolds, because that volume growth will come from the capacities that we are able to add. Understood. Okay, fine. I'll take this offline. Yeah, that was my only question. Thank you. Sure. Thank you. The next question is from the line of Anchit Jalan from Goldman Sachs Asset Management. Please go ahead. Hello. Hi, am I audible? Hello? Yes, Mr. Jalan, you can proceed with the question. Yeah. I just want to understand, is Reynolds a higher margin business? Anchit, see, Reynolds historically when they were being operated by Newell, they did not operate at very high margins because they had a lot of costs. Now that we've just acquired the brand and we will be managing the entire production and the sales part of it will operate as per our margin structure. I believe the margins for the Reynolds brand also will be as per our margin structures. With respect to margins, we've always followed a principle which says that nothing at the cost of market and nothing at the cost of margin. Eventually we will want Reynolds to also operate like our other brands doing about that 16-odd percent EBITDA margin. Since we will be controlling the cost, controlling the production, we believe we'll be able to get to that margin number also soon. Right. Would you say this is the bottom in terms of EBITDA margin for the year? Hopefully- temp costs that you said for staff costs and for other expenses. Yes, absolutely. Hopefully, shouldn't be many more surprises from Mr. Trump. We believe that this was probably the bottom and things should be better, going forward. Right. Thank you. Thank you. The next question is from the line of Nihal Shah from Prudent Corporate Advisory Services. Please go ahead. Thank you for the opportunity. I just wanted to know if the 4%-5% price hike that we've taken is the standard throughout the industry as well, or our price hike was a bit lower or higher compared to the industry? I think, probably the industry was actually waiting for what decision we've taken, and after we've increased, done a calibrated increase, I think overall the industry has done a similar sort of step. Not anybody doing anything very high or very low. Once the raw material costs come in our comfort range, what do we plan to do of that price hike? Do we plan to enjoy the extra margin for some time or we go back to some lower prices than we have right now? What we've always done is, like I said, nothing at the cost of margin, nothing at the cost of market. Whenever we've seen in any product or because of any such actions, if the margins are increasing, that we'll add some value to the product. We'll make the product much better for the consumer. We will definitely not want to sit and eat on these margins sort of a thing. We'll definitely give the consumers or our channels something additional to enjoy. Okay. We should take FY 2026 gross and EBITDA margins as the sweet spot for our margin run and try to maintain those going ahead. Yeah. Like I said, yes, FY 2028, that's how we should look at it. Okay. Yes. Thank you very much. Thank you. The next question is from the line of Saurabh Patwa from Quest Investment Management. Please go ahead. Hope sir I'm audible. Yeah. Hi, Saurabh. Hi, sir. Just wanted to get your thoughts of over, say, last decade or so, what would be a cumulative price hike which you would have taken in, say, in pencils on a blended basis? Saurabh, I'll have to come back to you on this. I'll probably have Bhavin from Marathon or somebody get back to you with this answer. Sure. I'll have to calculate. I wouldn't say it is very significantly high because the MRPs of the product would have increased from what? INR 5- INR 6 or INR 7 at max. I will have to come back to you on this. Sure, sir. Sir, second, in last say maybe a decade or so, what would have been the industry volume growth, per se? Difficult. Honestly difficult to give this answer. No problem, sir. Great, sir. Thanks. Yeah. Understood, sir. Fair enough. Great, sir. Thanks a lot, sir. All the best. Bye-bye. Thank you. Ladies and gentlemen, that was the last question for the day. Now I would like to hand over the conference to the management for closing comments. Thank you, everyone, once again for joining us today. We appreciate your continued support and confidence in our journey. Should you have any further questions, please reach out to our Investor Relations team. Thank you, and have a great day ahead. Thank you. On behalf of DOMS Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.