Ladies and gentlemen, good day and welcome to the Finolex Industries Limited Q4 FY 2026 Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participants lines will be on listen-only mode and there will be an opportunity to ask questions after presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star the zero on your touch tone phone. Please note that this conference is recorded. I now hand the conference over to Mr. Arun Baid from ICICI Securities Limited. Thank you. Over to you, sir. Thank you, Julius. Good afternoon, ladies and gentlemen. On behalf of ICICI Securities, I welcome you all to the Q4 FY 2026 post-results con call of Finolex Industries. From the management side, we have Mr. Udipt Agarwal, Managing Director, and Mr. Chandan Verma, CFO. Now I hand over the call to Mr. Udipt for his opening remarks, post which we'll open the floor for Q&A. Over to you, Udipt. Thank you. Thanks, Arun. Good afternoon, ladies and gentlemen. Welcome to Finolex Industries' earnings call for quarter four and for the full financial year FY 2025/2026. We are very pleased to have you here today with us. Just a reminder to everyone that during the course of this call, there might be certain forward-looking statements based on our current view. However, the actual results may differ. Coming back to our quarter four of FY 2026 performance, we had a 12% growth on year-on-year on the revenue. The revenue for the quarter four stood at INR 1,314 crore, as compared to the quarter four of FY 2025 of INR 1,172 crore. EBITDA, we had a significant improvement. It nearly doubled to INR 332 crore from INR 171 crore the previous year quarter, and as a result, there is a margin improvement of 25%. Profit before tax rose 65% to INR 334 crore from INR 203 crore in quarter four of FY 2025. Correspondingly, there's EBIT jump also from INR 144 crore of Q4 FY 2025 to INR 306 crore of Q4 FY 2026. During the course of the quarter, the volume was broadly flat for us, and this quarter, our volume was 101,770 tons versus 102,253 tons of the quarter four FY 2025. Moving on to the full year 2025/2026 performance. We had a flat revenue of INR 4,113 crore against FY 2025 of INR 4,142 crore. The lower volume, which we had during the course of the year, were offset by the better realizations. Yeah, that's why we see the revenue broadly flat. As we discussed in quarter four, and has an impact on the full year performance also, our EBITDA was up 43% to INR 679 crore. Okay. Our EBIT grew 55% to INR 572 crore during the course of the year. The sales volumes for the full year stood at 332,736 metric tons, against 347,982 metric tons in the previous year. We continue to have a very strong balance sheet with a net free cash of about INR 2,563 crores. I want to come back to one of the topics which is impacting all of us, which is the Middle East conflict and what has it been for us. As we all know, since the start of the conflict, there has been major macroeconomic changes around the world, particularly in the downstream of oil, which is the petrochemical industry and PVC markets. Disruptions, which are also happening because large volume of oil flows through the Strait of Hormuz. This creates the bottleneck across the polymer value chain. It's not only the oil, the PVC, all other polymer prices also saw a significant increase during the course of the last couple of months. While this led to higher prices, it means also a little better realizations for us. This is near-term positive for integrated producers like us, but the supply uncertainty and cost inflation remains risk. Yeah. Which we continue to monitor very closely. Also, on the demand supply side, if we talk about the PVC demand in India follows a very well-established seasonal pattern. Pre-monsoon, typically we see uptake in demand because of the agri demand going up ahead of the kharif season. Then the moderation starts during the monsoon. Okay. I think with this, I would like to conclude my opening remarks and would like to open the floor for question and answers. Thank you. Thank you. We'll now begin the question and answer session. Anyone who wishes to ask questions may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset 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 Sneha from Nuvama. Please go ahead. Hi, team. Thanks a lot for the opportunity. Just a couple of questions from my end. Firstly, what would be the quantum of the inventory gain in this particular quarter? Chandan, you want to take that? Sneha, good afternoon. We have like the other PVC pipe producer, we have also the inventory change during the month of April, March, when the prices has gone high. It ranges roughly around to, on an average, INR 35 crore-INR 40 crore, around. Understood. My second question was related to your volume growth. What we were also hearing from the other plastic producers was there was a good amount of restocking which took place, because of which, of course, the volume was much higher. Of course, we are seeing consolidation. We saw good growth coming in from leaders as well. Why was our volume growth flattish for this particular quarter? Sneha, as you know, roughly around 65%-70% volume comes from the agri sector. This time we have seen that the agri demand is not taking uplift during Q4. On an overall basis, though the quarter-on-quarter volume has remained flat, but we have seen a reduction in volume in agri and increase in volume in non-agri. Overall, the volume has remained flat, but the dragging is mainly happening on account of agri volume not getting picked up. Because the farmer were also anticipating that because the prices volatility, they were anticipating that there will be some softening of the prices. On that anticipation, the volume could not be picked up as it used to happen in the earlier quarter, in the corresponding quarter of the last year. Actually, how was agri demand picked up in the month of April and May? How are we seeing the trend? Any guidance that you would like to give? Lastly, if I even adjust the INR 50 crore inventory gain, your EBITDA margin comes out to be significantly higher than what we've seen for last eight, nine quarters. How sustainable are these margins? I think that's it. Sneha, see, as you know, we have the backward integration facility of PVC resin manufacturing. There is always a few cost advantage that we enjoy. Based on that, our procurement planning and that we have in place. We have enjoyed certain benefit and that has given us the margin. Overall, the kind of margin that we have seen during the current quarter is obviously such at the higher side, but going forward, it is going to moderate to some extent. Any guidance? Guidance, more or less you can say lower double digit around. Understood. On the volume front, how agri part has April and May month, yeah. We lost you in between. Volume front? The other question was that, have you seen pickup in the month of April and May with respect to agri pipe volume and any annual guidance with respect to volume growth? April was a little subdued month because the prices were pretty high in the month of March and prices started coming down. Really, in a falling market, it has a straight impact on the demand. April was a pretty subdued, but we see a little better May. Got that, sir. Any guidance for the annual for FY 2027? There's so many things going around, both on the supply side and also on the demand side. I would say structurally, I would look at as GDP one of the indicators of our growth and which also has several constituents to it. Agri is one of those, construction industry is another. How the government spend on some of the growth drivers which government had said, for example, extending the Jal Jeevan Mission, and how that allocation happened during the course of the year will define what kind of a demand growth we can see. Understood. Thanks a lot, sir. I'll get back in the queue. Thank you. The next question is from the line of Praneet from SJ Investment. Please go ahead. Hi, sir. Thank you for the opportunity. I was just wondering in terms of the demands, how is it on the ground level? I understand that the Q4 was not so great because of the rapid price hike. In terms of, let's say, consolidation in the market, especially in the agri space, how has it been in terms of competition and other things? Sorry, I could not completely understand your question. Can you come again? Yes, sir. Am I audible right now? Yeah. I was asking, sir, in terms of competition overall in the agri space right now, how has it been, and how is the customer demand sentiment besides the Q4 rapid price spike? Is there any consolidation, and how's the overall market competitive position? Some of our players are getting a little more aggressive on price. Just wondering what's happening on the ground. No, the story is different for everybody here because the ratio or the dependence on the agri market is, everybody's is different. Yes. We have been predominantly in the agri side, relatively stronger as compared to the non-agri side. The impact cannot exactly be like to like compared. Yeah. Coming back to your question of what is going on on the ground, as we said, April was a subdued month in terms of demand. May looks to be slightly better. Yeah. Because of the agri demand, which has kind of come back a little bit ahead of the monsoons. Yeah. A lot will depend on what happens to the monsoon. We already know that monsoon are kind of getting delayed this year, which was supposed to happen like nowadays, these days in Kerala, but got extended by another week or 10 days. Yeah. I hope that as we move forward into month of June, at least at some part of the June, there is continued demand on the ground. Understood, sir. I was just wondering in terms of, let's say, players like, regional players like [Repon and Jain] have also been gaining a market share. I was wondering, has this been affecting us? Was it at the cost of us or at the other players? Jain Irrigation plays in the micro-irrigation market. This is not a complete direct like-to-like comparison with us. Yeah. That's what I said in the beginning of my response to your question, that everybody has a different positioning in the market and which market segment they serve. Got it. Just one last question. I understand that we're still very concentrated on the agri space, right? Is there any strategy in terms of meaningfully shifting away from agri to the other products? Because we are still extremely highly regarded in agri space, but as a ratio, the banks can also classify it to other segments. What's the strategy for that? We have been constantly pushing our trying to diversify our portfolio in terms of the market segments. There's been slight improvement year- on- year. If we look at FY 2025, 67% was agri, and if we look at FY 2026, we are at about 63%. Really the non-agri segment share is also increasing in our portfolio. Yes, there is a gradual shift, and as we have been saying in the past, in the previous calls also, there's a constant effort in this direction. Our goal is to have a much more balanced business coming from the two distinct market segments. Let's say, what is the ideal split the management wants in the next three to four years? Is there any internally targeted metric? I would say more like ideal case for us would be more like 50/50. Yeah. Over the next four to five years. Got it, sir. One last question regarding the market. I understand that you're still market leaders, in terms of market shares, has there been any growth, especially with the market going down? Have you able to gain market share gains over the last year or the year before that? Could you give some guidance on that? No, I don't think so. What we have been doing so far is trying to manage the market share and also looking at the margin growth. Our positioning is slightly different from what other players are doing in the market. You see that clearly reflected in our numbers also. Got it, sir. Could you explain the strategies that are going behind the margin growth? I understand you're being more selective. In terms of how are you exactly growing the margins by maintaining a market share? Is it lesser credit terms or higher prices? Could you give some light onto that? It's a basically continuous process. See, in margin improvement, there are a lot of things and lot of dynamics come into picture how we are managing our margin. It's our procurement strategy, at what time we are facing the market, at which point we are putting some schemes and discounts in the market, then at what point in time, which geography we are concentrating. See, margin is not a result that we are seeing, it is not a result of a single factor. It's a combination of various factors that are at our constant radar. That's how we try to protect the margin currently and going forward also the endeavor is on. I understand that sir. It's very dynamic factor and we are very competitive on that front. I'm just wondering for this specific year and this specific quarter, what were the major contributing factors? I understand that it changes time to time depending on the market. I'm just wondering. Yeah. The result that you have seen, basically, it's a result of whatever the factor that I just described you. It is a combination of all the factors. It's very difficult to pinpoint how the margin has came on for a particular initiative. Yes, it's a combination of all the factors that you have seen. Understood, sir. That's very helpful. In terms of geographical expansion- Sorry for interrupting, Mr. Praneet. Sir, could you please repeat? Yeah, I'll just come back. Thank you. Thank you. Thank you. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Thank you. Congrats on good set of numbers. I have a couple of questions. Agri you have shared the 63%. For fourth quarter it comes around 62%. What was the CPVC share in the volume and fittings share for fourth quarter and possible for fourth quarter of last year and maybe the full year for FY 2025-2026, if you can share both CPVC share and the fittings share. Thanks, Shravan, for the question. I think Chandan has the numbers. Hand it over to him. CPVC share on overall portfolio, it comes out to be roughly around 7%-8% during the current quarter, and last year it was roughly around 6%-7%. It hovers roughly around 6%-7%, and currently 7%-8%. On a year-on-year basis, this is at the same, 7%-8% range on overall volume. Okay. fittings share, sir? Fittings share in total business is roughly around 9% to 10% as a ratio that we maintain. Sorry, sir, I didn't get. 12% is the fittings share? 9% to 10%. 9% is the pipe and 10% is the fittings. That's what you wanted to understand, right? Yeah. In the fourth quarter, the fitting was what, 10% share? Yeah. Fourth quarter is 9%, and last year also it was 9%. On a yearly basis, overall year basis, full year, the fittings share on an overall volume is 11%, and last year it was 10%. Okay, got it. Sir, first, just wanted to again try to understand this EBITDA margin, because this is the sharpest positive surprise that has come. Whatever you have tried to answer, still not able to understand. Even if INR 35 crore, INR 40 crore, the inventory gain, if you adjust, it comes around 22% odd margin for fourth quarter. First, though you said that we are backward integrated, but still able to understand further more. Now let's say in the Q1, given the April, we have seen the significant PVC prices as dropping down and in May, maybe INR 4 odd again it has bounced back. How one can look at this margin then? Do we still will see such a kind of a 10% kind of a volatility in the EBITDA margin going forward also? How on a yearly basis can we see it, the full year for 2026 is 16.5%. Can we see 14%+ kind of a margin? Is this doable on a sustainable or a 16% + is doable? Shravan, I was just explaining to another question a few minutes back. On a yearly basis, we have a target to maintain our EBITDA margin on a mid to lower double digit, roughly around. That is our target. We will continue to- Sorry, sir. Lower double digit means a significant range. Just that's why trying to understand. Lower double digit, you can say sub 15 number. Okay, sub 15 number. Okay. It should be, till last time we were looking at 12% kind of a sustainable. That's what I'm saying. Sub 15 number with anywhere, it's very difficult to pinpoint at the slow dynamic environment. We are trying to maintain our margin sub 15 level. EBITDA margin. Yeah. We are talking on a EBITDA margin. In Q1 itself also, can we see the similar or still the number could be much higher in the Q1 also? Shravan, as I told you, our endeavor is to see a margin on a year-over-year basis, full year basis. We'll try to maintain, but let's see how the quarter progresses. As you know, April is some subdued month we have faced, everyone is aware. Let's see how the May and June goes, then we'll be able to comment upon. Yearly basis, we have a target to sub 15% level, roughly somewhere around. Okay. On the volume growth front, this year, obviously on a yearly basis, 4.4% degrowth. On the fourth quarter QO2, sharp jump is there. You have mentioned that the April was subdued, May was better. How one can look at, on a yearly basis, the volume growth? At the same time, wanted to understand in terms of what's our capacity and how we want to add, because till last time we were saying 50,000, 80,000 ton capacity on a yearly basis, we'll keep on adding. Shravan, our total capacity at this moment is 520,000. We have a sufficient headroom to grow still. Current year and I think most probably next year also, we'll be sufficient to close with the current volume, number one. Number two, your second part of the question of how you are seeing your yearly target. Definitely we are targeting a growth number of roughly around highest single digit to lower double digit. This growth we are targeting for the upcoming full year. Not on a quarter-on-quarter basis, full year we are targeting. Got it. In terms of the CapEx will be of INR 100, INR 200 kind of a number and the cash, because for last many times, we are saying that we will reward the shareholders, timing is not clear. The board will decide. I'm still wondering when that time will come. Yes, you are right. Every year we are going to incur the CapEx of roughly around INR 100 crore every year. This is more on account of our maintenance CapEx that we'll keep doing. We'll be Debottlenecking process is already on, where lower capacity extruder gets replaced with the higher capacity extruder going forward in time. That process already we have also explained in our earlier call. That process is already on. Number one. All the shareholders must be happy that last year also we have declared a huge dividend of INR 3.60 per share, and this time also INR 2.75 per share. Yes, we have the huge cash balance in hand, still, even yesterday's discussion with the board, still the decision regarding the remaining cash is yet to come, we'll have to see. Time will tell. Okay. Any specific reason, though the number is lower in terms of the finance cost for this quarter, from third quarter INR 3 crore to INR 7.8 crore. Any specific reason, and how at the same time the other income from INR 52 crore. For three quarters, it was kind of INR 55, INR 58 crore and then came to INR 36 crore. Just wanted to know the reason, and how one can put these things. Other income largely consists of mark-to-market gain on the investment portfolio that we are having. You have seen March there is a decline, market has gone for a lower trajectory. That's why the mark-to-market income has come down. Number one. Number two, finance cost has gone up. You see, because of this geopolitical scenario, we have been planning to keep our inventory at optimal level. That resulted into the optimum purchase of procurement of material, number one, and that has got converted into over the period in time in borrowings. That is resulting into certain higher cost. Partly. Okay. No issues. Thank you and all the best, sir. Thank you, Shravan. Thank you. The next question is from the line of Praveen Sahay from PL Capital. Please go ahead. Hi, sir. Praveen Sahay from PL Capital. My question is related to the capacity. Capacity of 520,000 what you had said, and if there is no expansion, is there a constant capacity? Is that become a constant for a volume growth? If I look at last quarter and the utilization rates were very high of some 78%-80% of the utilization. Is that a constant for a growth for you right now? No. Capacity is not a constraint for the growth. As Mr. Chandan Verma mentioned in the response to one of the earlier questions is that there is a constant capex planning of INR 125 crore-INR 200 crore, which we have been always saying. This year we would be spending a substantial amount into the capacity augmentation. As we mentioned, the changing the lines from a lower capacity to the higher capacity. That also leads to the capacity expansion. I mean, having additional capacity available for production. Certainly, capacity availability is not a constraint for growth. Second question is related to the inventory because, answering to the earlier question as well, you had highlighted that the inventory number has increased. Assume that because there is a lot of volatility in the PVC resin prices, we had created inventory of RM for future use. Yeah. It's a regular activity where whenever we find the opportune time to procure the inventory at suitable prices, then definitely we try to take that inventory in our stock. That is the strategy that we have been following, and that is how you see the inventory level at 31st March. Currently the inventory level is also the result of that strategy that we are following. Because there is a lot of volatility from March onwards, we are seeing in the PVC resin prices. At what level those inventories has been built up. Just wanted to understand on that, because if that is on the higher side, then after there is a good correction in the prices also. How you are comfortably built up your inventory, actually. Shravan, just to say we are constantly keeping a watch. We understand that PVC market is too dynamic, and we will be holding higher inventories and that is going to be a dent on the future period. Keeping all the dynamics in mind, we have the sufficient control over the inventory number that we are having. I don't want to quote any number regarding how we are seeing its impact on the subsequent quarter. Yes, we are mindful of the thing that PVC prices can go for any direction. Keeping that risk in mind, we spoke inventory, optimal level. Okay. Another on the demand side, also you had mentioned and in the past we had seen that the PVC resin prices always impacted the agri demand in the past. Still, if I look at some, the prices of a PVC resin is at an elevated level of nearly around INR 87, INR 85-INR 87 per kg. How in May actually you are seeing the demand is coming back even after the higher prices? Is that still quite softer or it's coming back strongly because the prices from INR 115 now has down. Can you give some color? From the last year it was INR 65, INR 70, now we are at the very high level of pricing. How the agri demand is actually shaping up? Yeah. Two parts of it which you touched very rightly. Yes, if you compare it to the last year, the absolute value seems to be high, but if you compare it to the high of March, it is significantly lower. I think it is 25%, 27% lower. Okay. That is one of the factors when farmers or the agri demand is being considered. The other is that this is the season time. Okay. The inherent demand which is there, which is independent of the pricing, that is also there. Okay. Combination of both these two factors. Okay. Yeah. Some book kicking questions are, how is the VCM PVC spread for a quarter? At this point, how is the PVC resin prices or the spread, PVC EDC spread right now? Not the quarter Q4, but right now. Q4 PVC EDC spread was $521. Q4 average I am talking, and also PVC prices in the international market, it was average around $793. Currently, we have seen a PVC EDC spread around $543, and prices somewhere around $900 + in the international market, ex-works price. Okay. VCM, sir? PVC VCM. PVC VCM spread currently is $108. Last Q4 average is somewhere around $179. One, sir? INR 179, INR 180. Okay. Thank you, sir. Thank you, and all the best. Thank you. The next question is from the line of Pujan Shah from Molecule Ventures. Please go ahead. Hello. Hello. Yeah. Yeah. Okay. Sir, my question pertains to the first of all, I just want to get a sense on the government regulation side- Sorry to interrupt you, but your voice is not very clear. Can you come closer to the mouthpiece, please? Mic. Am I clear now, sir? Hello. Hello. Better. Okay. Thank you. Sir, my question pertains to the government regulation. As an industry, previously we have been struggling for one and a half years, and considering the demand scenario, and industry has also filed the ADD but it didn't implement it. While I just want to understand, if we file the ADD again, do they understand the impact which has happened in the March that might decline the ADD purpose, because at that point of time, the prices were at high prices compared to the historical average. Can you give a sense, is that a possible way we should get an ADD, or we might go for a shorter term purposes like MIP, which might be helpful for a six months duration? I think on the ADD front, we all know what happened. There is a cooling period in between the two investigations which needs to be there. Okay? That's on ADD. I don't think right now there is a case for ADD per se. This is again very much one view of looking at it. The other topic which you talked about, other kind of protections which can be given to the industry, certainly MIP is one of those, however short term it might be. You also know that the policy government announced a 90 days period of no import duty on PVC resin starting April till 30th of June. That is also giving, and probably rightfully so also, to the lot of medium and small enterprises. Yeah? I'm talking about all polymers, not only for PVC. PVC is also among that. We know how is the structure of our pipe producers here in India. That has impacted the large players like us, and that is how we also saw a certain drop in the prices of PVC in the month of April. Government policy certainly has an impact on what happens on the business side. I think on a short-term basis, MIP could be a good option. If industry decides to move forward, and I think that is a separate topic which CPMA, the Petrochemical Manufacturers' Association, is separately pursuing. Yeah. Got it, sir. [We see ourselves], as a leading pipe producer, and that remains our core position as far as all these matters are concerned. Got it, sir. Secondly, our revenue concentration is a bit on the higher side on the agri demand. This year we have been expecting that there is 8% less rainfall compared to the previous year. How we have been planning to tackle that? Do you see some kind of degrowth in agri, which can offset in non-agri space? How we are planning to strategize for this year to get our double-digit growth? As we have been telling, there is a forecast of lower monsoon also that you have just said. Also, the prices of the demand of agri is always monsoon dependent. As we have said in the earlier question, since our thrust is to put more and more emphasis on our non-agri sector, so there will be partly whatever the projection that we are going to have in the upcoming quarter, any loss if we are going to incur in the agri sector, it's fine. We'll compensate with the non-agri space. Got it, sir. That's all from my side. Thank you so much. Thank you. The next question is from the line of Vipulkumar Shah from Sumangal Investment. Please go ahead. Hi, sir. You said this VCM delta was $170 in last quarter, and right now it is $108. Have I understood it correctly? Yes. Half of your capacity is VCM based. This quarter, there would be a substantial pressure on profitability. Is that understanding correct? Yes, to some extent you are correct. Yes, the delta is currently, you are seeing the impact of current pricing. Yes, our discussion is already on to have the proper VCM at the optimum prices. That we are also trying to have the inventory. No, but whatever you are getting at a market price, but if the spread is lower, naturally your profitability will be affected, no? Half of your capacity is VCM based. You need to appreciate the point that you are seeing, the number you are seeing is a point in time. Let's see how the number goes over the period and over the quarter. Yes. At a certain point in time, at the beginning of the quarter, it was also at the 180 or 190 level of the last quarter. Average will be higher. That is what you are trying to say, sir? Yes. Oh, okay. Why we are not seeing any substantial growth in volume contribution of CPVC and fittings? They have become stagnant over last certain years. You'll have to see our fitting share in overall basis is gone up on a yearly basis. Last year, our fitting share in our total volume was 10%, it is little up by 11% + during the current year. This is on overall basis. If you see the growth of fitting alone, the growth of fitting alone is somewhere around 9%-10%. That is our focus is there in the fitting. O kay. Fitting will continue to grow at 9%-10%, is that understanding correct? Yes. Same applies to CPVC also? CPVC, in fact, you see, though we have the lower base of the CPVC, but CPVC are growing at a higher pace. It's roughly around 15%-18% of range. Sorry, 8%-9% of range. No. Would you repeat? It was little confusing. We have a CPVC, we have a lower volume, lower base. Our growth of CPVC fitting is higher again in CPVC fitting, our growth is higher, and overall CPVC portfolio is growing around 8%-9%, CPVC portfolio as a whole. I think I have clarified your question. Yes, sir. Thank you very much. Any plan to return the cash to the shareholder, sir? I have just replied to this question. This question, these things will come from the board, and still the board couldn't give any guidance how to utilize this cash. Let's wait for the time. Okay. Dividend that we have given, that is definitely out of the current accrual. Yes, the accumulated cash we have, the board will give certain guidance. One final request to Mr. Chhabria, if you can convey our request. It has been long since he has attended any call, and this question is asked every time. At least for one call, if he can attend, it will be really helpful. Please convey our request to Mr. Chhabria. Yes, definitely we'll convey your message. Thank you, sir. Thank you. Thank you. The next question is from the line of Anuj Trak from Anand Rathi. Please go ahead. Yeah. Hi, sir. Am I audible? Yes, we can hear you, but a faded voice. Can you come closer to the mic, please? Yeah. Am I audible now? Yeah. It's better now. Yeah. First question is, what proportion of VCM quantity sourced from Middle East region, and whether our PVC resin production is likely to get impacted in FY 2027 in case the geopolitical issue persists for the next, say, three to six months? The Middle East has been the large supplier to India for VCM. There has been an impact. At the same time, coming to the next part of your question, will we see an impact for the full year? As you might already know that, during the monsoon period, our jetty is not operational, so we do not run the VCM line during those periods. In any case, it remains closed. For that four to five months period, we are not impacted because of this, because structurally we cannot bring in any VCM into our facilities. Okay. Our efforts are on to shift our supply chains from Middle East to the other parts, particularly looking at Far East and Northeast Asia where VCM is available. Okay. The good thing is that if we are not able to get competitively VCM, the PVC is available in Northeast Asia and also in U.S. Okay. It's only the 50% of the total imports India come from China, and rest of it comes from other parts of the world into India. There is already established PVC supply chain. Yeah. We don't see any impact on the PVC availability for the course of the year. Okay. Sir, second question is, the Finolex's average EBITDA margin has been in the range of 17.5% over the past 10 years. Since our share of non-agri pipe is also going to gradually go up, this is going to enhance the margin profile of the company. Sir, why are you guiding a conservative EBITDA margin at sub 15% level for FY 2027? We don't want to give any rosy picture at this moment because of the geopolitical scenario, the future is always uncertainty. That's why we are giving a conservative margin, and let's try to deliver at the higher margin at towards the year-end. Yeah. This number is over long term, what you mentioned. Yeah. We are talking about here a relatively shorter period of time, which would be greatly impacted by the volatility in the market. That's why a little conservative estimate. You are right. I mean, we have been around that range, 15%-17% over time. Yes, sir, we have clocked 17% in FY 2026, which was a difficult year. No, it was a difficult year. If you look at the full year, the quarter four was the major game changer. If you look at the first nine months of the quarter, Oh, sorry. Pardon me. First nine months of the year, then it's a different picture. It's the quarter four, which has really changed. Sir, the last question would be, what is the reason that all other listed plastic pipe companies are looking forward to geographically expand their manufacturing footprint and expand their product portfolio, but we are pursuing a different strategy and delivering weak volume growth compared to them? Don't you think that we should reevaluate a capital allocation policy so that we can at least maintain our market share in the pipe segment going forward? See, there are two parts of it. Yeah. One is the cost to the customer. Yeah. As long as that is competitive, customers will continue to buy. Yeah. With the increased or better transport infrastructure available in the country, the distance are becoming shorter and shorter. I should say the impact of the distance is becoming less and less. Earlier, probably five years back, seven years back, it would take probably five days from Ratnagiri to go to the material to the east of India. Now it reaches there on the third day. Yeah. That strategic advantage of being a local is slowly diminishing. Okay. That's the reason we think that if we are able to serve our customers all over India from our current production base, we would be able to also manage our cost better and also serve the customers within a reasonable amount of time in terms of delivery. Sir, our existing strategy seems to be not working, so why are we not thinking of changing it? You need to see, there are two things that we have to keep in mind. Even if you move another capacity at some other location, it will be difficult to cater all the product and SKU from the single location. Number one. The balance SKU, we need to source from the other location where we have the presence. Definitely, again, it is going to create hindrances. Number one. Number two, as you know, we are currently a largely agri-focused segment and non-agri, we are going to increase our share over in time. As the product portfolio of non-agri will go, and if we will find the suitable opportunity, then definitely we'll look for the certain other geography at this moment. Particularly, the volume decline in the agri you have seen. Basically, you see, agri has always a homogeneous growth trajectory. It grows always in tandem with how the monsoon scenario works in the country. Right? If there will be healthy monsoon, we'll see a sharp jump in the agri demand again. See, this is something where no one has any control over that. That's how we are seeing our business, and if you find our opportunity over the period in time, then we'll definitely re-look our strategy for the decentralization. Okay, sir. That's it from my side. Thank you. The next question is from the line of Mehul Shah from Nayan Vala Securities Limited. Please go ahead. Hello? Am I audible? Yes. Please go ahead, sir. Sir, what is the capacity utilization for FY 2025 and FY 2026? Currently, FY 2026, we have the utilization of 67%. Last year, though, since we have added few capacity this year, Q1 of the current year, so last year we have a higher utilization of 71%. Sorry, sir? Last year, we have ended with our capacity of 4,92,000. Based on that, our utilization was 71%. Current year, we have the capacity of 520,000. Based on that, our utilization is 67%. Okay. Thank you, sir. Thank you. Thank you. The next question is from the line of Praneet from SJ Investment. Please go ahead. The next question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Hi, sir. Sir, broadly, if I have to look at the price difference, and maybe ultimately the margin difference between the agri, non-agri for us, how one can look at? Shravan, this number definitely margin, there is a gap in the agri and non-agri realization and margin both, but we do not disclose in the public. Okay. No, the point is, I am not asking a specific number, what's the price difference or the margin difference, but the range would be decently higher than the margin. No. Definitely you have to see the non-agri has a higher margin than the agri. That is what I can comment maximum here. The point is that given the significant, even the previous participant was also trying, because for last many time, we are not able to distribute the cash. There are two, three ways because this agri is always dependent on the monsoon. Nobody knows how this will pan out after three, five, seven years. If we want to build a brand, so obviously we need to have a higher share in the non-agri. That's what even we are trying. The pace is on the lower side. As a company, given that we have the cash, why can't we have a more team, maybe a different manufacturing set up at two, three places? With this INR 2,600 crore kind of a cash, we can definitely add at two, three places easily. Keep on increasing both in the CPVC and the fittings. Even fitting capacity is also very less for us. These are the four, five ways in terms of the project level also, we can keep on increasing our share. It is kind of a recurring kind of a demand for us, and also at a higher margin, higher realization, we can have a better brand. That's the way, sir. Understand. Yeah, Shravan. Thanks for the multi-pronged approach and the discussion which you want to get into. First is our penetration in the market. As you know, historically, agri is predominantly for us, the West and South. Yeah. Non-agri, we are expanding rapidly into other regions as well. Okay. We have the required number of salespeople which we need in other parts as well. As you know that, this is also which you touched upon in your question, is also the project business. Yeah. There is a life cycle to that. We have to live with that. That's the structure that you need to get the product specified, yeah, and as the construction progresses the demand starts flowing. Yeah. Most of our business is through channel. Okay. It would be hard to say for which project, how much have we supplied. Yes, non-agri is one of the area where we see that we have to balance our portfolio, and this is what we also mentioned in the beginning of the call, that we are looking at over time for a balanced portfolio between agri and non-agri. Some of the topics which you touched upon, having a diversified or a multi-locational manufacturing footprint, I think we touched upon that earlier. Mr. Chandan Verma has been able to give a very elaborate explanation to that, why we adopt a particular strategy. Okay. Yes, the opportunity is greater in non-agri. Okay. Thank you. That's where our focus also has been. Yeah, just the pace of effort and the outcome or the result is yet to be seen. That's what the investor wants. Given the kind of a cash we have, that's the only request, suggestion, feedback, whatever. Thank you. Thank you. Thank you. Ladies and gentlemen, we take this as the last question. I now hand the conference over to the management for the closing comments. Thank you all who participated in our call. I must say that the questions which were asked by you are very pertinent, and I must say, they are very well-researched also. Okay. We'll continue to put in our best efforts as a company to meet the expectations of the shareholders and the investors. I hope to see you next time for our Quarter one FY 2027 conference call. Okay. Thank you. Thank you for your continued interest in Finolex Industries. Thank you so much to all the participants, and showing your continuous interest and belief in the [team] that Finolex is having. We are delighted to see your questions and insight that you bring in the investors call, and we will keep to your expectation to the extent it is possible. Thank you so much to all of you. Thank you, sir. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.