Ladies and gentlemen, good day and welcome to Gujarat Fluorochemicals Limited Q1 FY 2027 earnings conference call hosted by 360 ONE Capital Market Private Limited. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Rohit Nagraj from 360 ONE Capital Private Limited. Thank you, and over to you, sir. Thanks, Pari. We thank Gujarat Fluorochemicals management for providing us the opportunity to host their 1Q FY 2027 conference call. We have with us Dr. Bir Kapoor, CEO and Deputy Managing Director, along with the senior members of the management team from Gujarat Fluorochemicals. I would like to hand over the call now to Dr. Bir, sir, for his opening remarks, post which we will have Q&A session. Thanks, and over to you, sir. Thanks, Rohit. Good afternoon, everyone, and a very warm welcome to all of you for GFL's quarter one FY 2027 earnings call. For this call, I have with me my colleagues, Mr. Manoj Agrawal, who is CFO of GFL, Mr. Kapil Malhotra, who is business head of Fluoropolymers, and Mr. Rajiv Rao, who is the business head of Battery Materials. The company announced its quarter one FY 2027 results at the board meeting held today. The results, along with the earning presentations, are already available on the stock exchanges and on our website. I will briefly take you through the key financial highlights, followed by an update on our business performance, demand environment, and outlook. The global business environment remains challenging with ongoing supply chain disruptions, commodity price volatility, and an increasingly complex operating landscape. At the same time, the businesses are adapting to these evolving conditions, creating both challenges and opportunities across market for us. Despite these market-specific challenges, GFL has delivered a strong start to FY 2027. Healthy demand across key product categories, disciplined execution, and improving operating leverage enabled us to deliver broad-based growth across our core chemical businesses. On a year-on-year basis, revenue from our chemical segments increased 23% to INR 1,574 crores compared to INR 1,281 crores in quarter one FY 2026. Chemical segment EBITDA grew 29% to INR 458 crore from INR 354 crore, while segment PAT increased 33% to INR 161 crore. This performance was primarily driven by strong growth in fluoropolymers and fluorochemical businesses. At the consolidated level, revenue from operations grew 24% year-on-year to INR 1,588 crore. EBITDA increased 24% to INR 428 crore, while consolidated PAT stood at INR 219 crore, representing 19% growth over the same period last year. Our performance was even stronger on a sequential basis. Within the chemical segment, revenue grew 16% quarter-on-quarter to INR 1,574 crore, while EBITDA increased 30% to INR 458 crore. EBITDA margin improved from 26% in quarter four FY 2026 to 19% in quarter one FY 2027, reflecting the benefits of higher volumes and improved product mix and operating leverage. Segment PAT increased 56% sequentially to INR 261 crore, with PAT margins expanding from 12% to 17%. At the consolidated level, revenue increased 16% quarter-on-quarter to INR 1,588 crore, while EBITDA grew 39% to INR 428 crore. EBITDA margin also expanded from 22% to 27%, and consolidated PAT more than doubled to INR 219 crore, resulting in a PAT margin improvement from 7% to 14%. We also continued to make progress on key return and efficiency matrices during the quarter. ROCE improved by 258 basis points to 16.6% in quarter one FY 2027 compared to 14% in FY 2026. ROE improved by 301 basis points to 15.18% from 12.17% in FY 2026. Our focus on working capital efficiency has also yielded strong results, with working capital days reducing by 43 days to 149 days as of quarter one FY 2027, compared to 192 days as of quarter four FY 2026. These improvements reflect not only the segment strength of our operating performance, but also our continued focus on capital efficiency, cash generation, and disciplined execution across the organization. Let me now take you through the performance and outlook of our key businesses. Starting with fluoropolymers, we continue to see encouraging demand trend across the portfolio, supported by improving volumes across fluoropolymers. The expansion of new age applications is creating attractive growth opportunities, particularly in areas such as semiconductors, data centers, electronics, automotive, green hydrogen, and advanced industrial applications. We are also seeing a gradual improvement in product mix, supported by increasing contributions from higher value grades. Reflecting these trends, fluoropolymer revenue grew 15% year-on-year and 8% sequentially during the quarter. This growth achieved despite a challenging global environment. Moving to fluorochemicals, the business delivered an exceptionally strong quarter. Revenue increased 52% year-on-year and 44% quarter-on-quarter, driven primarily by R32 refrigerant sales, along with healthy growth across our refrigerant portfolio. As previously communicated, we are expanding our R32 capacity, which is expected to be commissioned in Q2 FY 2027. With existing capacity utilization already at peak levels, this expansion will enhance our ability to participate in growing global R32 market and support future demand growth. In Panchmahal, we continue to expand our refrigerant portfolio. Our R134a project remains on track and is expected to be commissioned in this financial year. Combined with our integrated manufacturing capabilities, established global marketing network, and long-standing customer relationships, this will further strengthen our ability to serve growing refrigerant demand across both domestic and international markets. A more complete bouquet of products will enable us to leverage our strong brands that we built over last three decades globally. Turning to bulk chemicals, the segment delivered a steady performance during the quarter, with revenue increasing 11% year-on-year and 1% sequentially, primarily driven by improved realizations. Moving on to battery materials, we continue to make steady progress in building a differentiated and integrated platform. In LiPF6, we are advancing both capacity expansion and customer commercialization efforts with leading global electrolyte manufacturers. In electrolytes, qualification activities and sample development with Indian cell manufacturers are also progressing well, supported by customer audits and plant visits. Across LFP cathode active materials and PVDF binders, our focus remains on product consistency, customer qualification, and commercial scale-up. While these businesses are at different stage of qualification and commercialization, we remain encouraged by the long-term opportunity driven by growing EV adoption, increasing deployment of battery energy storage system, and the ongoing localization of battery supply chain. As we look ahead, FY 2027 is shaping up to be an important year in GFL's growth journey. Our established fluorochemical and fluoropolymer businesses continue to generate healthy growth and strong cash flows while battery materials provide multiple avenues for the next phase of growth for GFL. Our priorities remain clear: executing our capacity expansion projects, deepening customer engagement, accelerating qualification and commercialization of new products, and scaling our emerging platforms in line with market demand. At the same time, we remain committed to disciplined capital allocation and a strong focus on returns. While the external environment remains dynamic, we are confident in the underlying fundamental of our business. With a diversified portfolio, integrated manufacturing capabilities, strong customer relationships, and exposure to multiple long-term growth themes, we believe GFL is well-positioned to deliver sustainable growth and create long-term value for all stakeholders. With that, I would like to thank all our stakeholders, customers, employees, and partners for their continued support. We will now open the floor for questions. Thank you. Thank you. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 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 Sanjesh from ICICI Securities. Please proceed with your question. Thank you. Good evening, sir. A couple of questions from my side. First, on the fluoropolymer, a 15% growth is good, but I think there was a price increase also in the segment by some of our Chinese peers. Have we seen those price increases being taken by GFL as well? What would be the blended price increase, if at all we have taken? Yes, Sanjesh, thank you for your question. I am requesting Kapil to answer this question. Kapil, please. Sanjesh, thanks for your question. See, first of all, we have been also making this commentary from last few quarters that we are trying to move up the value added chain into the fluoropolymer products. Hence, we do not have much of a competition with Chinese people. Our moving to the high value grade chain has given us these additional revenues and profits which we are talking about. Chinese were much anyway on a different scale of prices, we do not compete with them in those segments. But I think the price increase, what has gone into commodity equivalent does not show in specialty because the margins are probably, the prices are already better in those segment. That is the way to look at it? Yeah. Yeah, Sanjesh. This is going to reflect in the subsequent quarters. No, I am not getting it. Is there a price increase or there is no price increase? No, there has been a marginal price increase to combat with whatever input prices have taken place. However, whatever price increase is small we have taken, it is going to reflect. And the value-added product which we have taken, where we are going for newer application, that will start reflecting in subsequent quarters also. Got it. Second on the capacity expansion, which we also spoke in the previous quarter on the fluoropolymer side, Kapil, where are the opportunity we are seeing within the fluoropolymer and what other capacities are we looking at, probably product-wise, in this new wave of growth in the fluoropolymer side? Sanjesh, coming back to the opportunities, if you recall, we have always been saying that there are emerging opportunity from the sunrise sectors, okay? Whether these are batteries or semiconductor. We will be adding capacities going forward, mostly in new set of fluoropolymers, which we have categorized it earlier. We will continue to add capacity, but specific which we will focus on, I think I would like to keep that confidential from our standpoint. But there is a tremendous growth opportunity there, Sanjesh. Okay. And as I had said it earlier also, that we had put the capacities on new fluoropolymers, which is almost to the point of now getting fully utilized. So we are making investments in adding more capacities in these fluoropolymers, which will be catering to these new opportunities. Okay. Clearly, wherever we will be adding, it will all be at a very high-end product range. Earlier we were targeting a 20% kind of a growth. That is now visible for this year and a year after this? Absolutely visible. Absolutely. Got it. Second on the ref gas side. When is this R134 expected to get commercialized, and what is the revenue size we are looking at with this expanded base of capacity in the refrigerant gas for us? Sanjesh, we are expecting to have this capacity by the end of this financial year. In fact, we are targeting earlier than that. We have not yet announced capacities yet. Because, as you know, we have a refrigerant, multiple products. It is a bouquet. Depending upon the product mix, we will probably be going to the market. But we have not announced the capacity yet, and probably next few quarters we will share that. Got it. One last on the battery chemical side. Where are we exactly in the cycle of commercial supplies? Because right now what we see is INR 20 crores-INR 30 crores of revenue, while the capacity what we have put appears to be a much larger capacity. When are we looking or expecting a step-up jump in the revenue from the battery chemical side, and what are the segments which will contribute to this growth? Let me take step by step. What we have always stated is that initially we build certain capacities for qualifications, and then subsequently capacity addition is done to grow. If we talk about the significant growth, we probably will be seeing toward the end of this financial year and FY 2028. We will see a significant fraction. Because the capacity that we have added, if you look at our gross block, which has been capitalized, is still not that very large. While we are making investment in terms of building capacity, but the capacity which has come on ground and which are actually being commercialized is still because there is a long gestation period in building and setting up capacities. To answer your question, we will see a ramp-up. In fact, unfortunately, the numbers this quarter also we had dispatches, but because some of them are not reflecting in our revenue numbers because those are all CIF terms, so they will probably reflect in the next quarter. The journey will continue. You will see significant growth quarter-by-quarter in the revenue as we go along. Clearly, the first and the foremost in this is growth in LiPF6, which we started very early, if you recall, and that now has almost finished qualification. It is going through its growth phase. The second one is LFP and PVDF. PVDF is very close to getting finalized its qualification. We will see a revenue coming from it. Finally, the cathode active material, I think that probably we will see maybe towards the end of this financial year. But the full potential, if you are talking about the investment that we are making, it will start reflecting from FY 2028 onwards. Because there is almost one and a half year, I can say, in stabilization and getting the qualification done. This is the nature of this industry. Will that same apply for the incremental INR 2,300 crores of CapEx, or will that ramp-up be faster because the qualification round is over? That is expected to be faster, Sanjesh, because once we have qualified. The initial plan set for qualification, stabilization, establishing our supply chain and credibility with the customer, and then the next phase is because the battery market itself has a strong growth potential. Initially we were talking globally and we are talking about reaching almost 1,800 GWh by 2030. But now when we look at our domestic market itself, domestic market also, because of the driven primarily by BESS, is almost looking at 220 GWh- 250 GWh by 2030. So we are seeing a huge market potential, which I think we will capture as we go along, primarily in 2028, 2029. And of course, that will be much faster than the rate that we have seen now so far. Got it. Clear, sir. Thanks for answering all those questions, and best of luck for the coming quarters. Thanks, Sanjesh. Thank you. Thank you, sir. Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from the participant in this conference, please restrict your question to two per participant. Should you have a follow-up question, please rejoin the queue. Thank you. The next question is from the line of Arun from Avendus Spark. Please proceed with your question. Thank you for the opportunity. Good evening to everyone. Sir, my first question is on the R134a plant announcement. Earlier in the call you said that capacity has not been announced, but in our late June filing, we have indicated we are going to add on R134a capacity. Can you just clarify this point, please, sir? Arun, capacity we have not announced yet. Okay? But we will have whatever our plans are. We will have this capacity by this financial year. That's what we have stated, and that's what I think we said in the release also, the press release for what we communicated earlier. R134a, we are setting up the capacity. I think we have said this last time also, that with these, we'll probably be utilizing our entire entitlement quota with R32, R134a, R22, R125. We have a very large bouquet of products that we'll have by the end of this financial year to offer to our customers. Okay, sir. What is the reason for entering R134a so late in our journey into the HFCs? Is it because you are finding that the quota will be allocated on a pro rata basis on the capacity held by the players? Is that the reason? No. The decision is the strong market opportunity that it faces. I think, as you know, that refrigerants towards end of their cycle, it becomes a valuable business proposition. So we see an opportunity in getting into R134a for multiple reasons, and of course, some of them are strategic reasons, which I cannot share. But we think it is a wonderful opportunity to be there. It is a space where the supply in future would be restricted. We do not see several other supplies coming in, and demand will continue to be there. It is a robust demand, and the alternate to R134a are HFOs which are at a very high price point. So we see a strong market potential and opportunity for us to be there. Right. Understood. Secondly, in the next 12 months, will our new capacity, our growth will be- Arun, we lost around 10 seconds. Could you repeat your question, please? Right, sir. I was talking about the fluoropolymer business. Now that we are very close to our utilization levels, till we get our new capacities in place probably in a year or so, our growth in this segment will be largely dependent only on the pricing related actions that we will be taking. So we should not expect any volume growth or any mix change led growth? I will request Kapil to take this, Arun. Please, Kapil. See, Arun, it is a combination of both. Price realizations as well as some of the debottlenecking, which we keep on doing to enhance our capacities to match the market requirements. So that keeps on happening in these products, which is happening now also. Any timeline for capacity debottlenecking? It keeps on happening. Every second quarter, we keep on debottlenecking. Whenever we see that we are reaching our capacity utilization, then we balance our capacities accordingly to the market requirement. It is a continuous process. Understood. One bookkeeping question to Manoj. We are seeing the difference between standalone is always increasing on a sequential basis EV segment top-line growth. Arun, again, your voice is breaking. Could you come up again? Manoj is here listening. Yeah. Okay. Further question for Manoj, please. The difference between the standalone and console is increasing much higher than the EV segment top-line growth. Is there anything else which is contributing to this increase? No. See, standalone and console also reflects our GFCL EV, GFL Americas LLC, and GFL GmbH, where we do all our polymer business that are routed through Germany subsidiary and the U.S. subsidiary. That business doesn't reflect in the standalone, whereas in the console business, it comes. That is also the reason, not only the EV. Okay. But why in last two quarters this increasing, sir? Especially if it is coming from only fluoropolymer business. This quarter, some of the CF consignments were there, and GIT earlier, which were booked in Germany and GFL Americas LLC, instead of that, we have booked reverse in the standalone itself. So the gap between standalone and console is higher on account of that. Understood. Thank you very much. I will get back again. Thanks, Arun. Thank you. Thank you. The next question is from the line of Preet Jain from Niveshaay Investment. Please proceed with your question. Hello? Am I audible? Yes, please continue. Yes, sir. You are audible. Congratulations on- You are audible, please. Basically, sir, I wanted to know on your R32 side expansion. Are you planning for any additional HF expansion on your side or AHF expansion on your side? Because R32 has immense demand, and your competitors are also increasing the capacity for R32. Are you planning for any additional R32 or additional backward integration HF plant? Yeah, I think we mentioned that last time as well, that we will be adding AHF capacities because as we are adding capacities in R32 as well as R134a, Yes it will require significant AHF for these refrigerants. AHF is also required for our other products as well. We will be adding capacity, and we have already announced that, I think, that capacity that we will be adding. By what time that will be live? It will be in different phases. The first set of capacities will be there probably by the end of this year or the third quarter, and then subsequently, every quarter some capacity will be added, because it will be matched with our refrigerant capacity being added. You will not sell HF or AHF outside? You will only use for internal purpose only. Right now, our aim is to look at the captive. Yeah. Okay, because that's our purpose at the moment. Okay. One more question on the quota side. The base players which are there will definitely get quota. But will the new players get quota or will we only gain quota? Can you give some clarity on that side? The existing players which have produced R22 will get quota or will new players also be able to get quota from us or they will also able to participate? As R32 has massive demand and supply is currently limited if new players are not given quota because any new capacity is not coming. Of course, I cannot comment on who will get quota or not because that's a decision which is not resting with us. Okay. But all we can say that, the past precedents indicate that this is given based on the baseline. Okay? Okay. There is a formula which is there. From our side, we know what is our entitlement, and our expansion plan is based on Okay that. We will be utilizing at least whatever our entitlement is based on the GWP number that we have. The formula you are already aware of. Yes. Correct. There were two components to it. I cannot really comment on who in the new player will get quota or not, because that is a decision which is resting with somewhere else. However, from our side, we are already adding capacities based on what we think is our entitlement based on the past precedents. Okay. Thank you for answering my questions. Thank you. The next question is from the line of Omkar from Motilal Oswal Financial Services Limited. Please proceed with your question. Yeah. Hi, sir. I had a question on CapEx. So, out of this CWIP of INR 1,900 crores, how much is expected to get capitalized in FY 2027? I think we expect right now our gross block is around INR 836. Because the capitalization happens on two. There are two triggers to it, Omkar. The first trigger, of course, is when we start the plant, and second is when the plant is giving its product based on what the intent is for it to produce, which means it gets the right quality or so. Okay? While mechanical completion of the plant is in our hand, the quality stabilization often varies from plant to plant. But we expect, by the end of this year, these numbers to be around INR 1,200 crores. So, this will be of CWIP amount you are talking about? Which amount? I am sorry. The capital working progress, INR 1,200 crores. Right. This will be inclusive of this INR 3,000 crores of CapEx also, right? Which will be incurred in FY 2027. That will be added further, Omkar, because, see, we have a plan of adding total, what we have announced is INR 6,000 crores. Okay? Yeah. Today, there are certain CapEx which we have already capitalized, which is reflecting in our gross block. Then we have CWIP, and then we have a plan to add more CapEx, as I had announced in the last quarter call, in next two years. Will capitalization- This year, our CapEx spending plan in EV is INR 2,300 crores and in our chemical business it is approximately INR 800 crores. That is what we had said earlier. We are holding on to that CapEx plan as of now. What will be capitalization for these two CapEx? Capitalization for these two will come later on because we also have CWIP at this point from the earlier years, which will get capitalized going forward in this year. Because the CapEx spending and capitalization, there is a lag, as I indicated earlier. Thank you. Thank you. The next question is from the line of [inaudible] from Ansec Human Resources Services Limited. Please proceed with your question. Good evening. Thank you for the opportunity. Firstly, we had indicated about the CapEx of close to INR 216 million in Oman for setting up a battery materials project. Just wanted to understand what is the status of this project. Yeah. The Oman project right now, we have put on hold. In fact, what we are doing is that those CapExes now, we are bringing it to India and planning to add those capacities in India. There are multiple reasons for it. There has been certain, of course, geopolitical reasons, which was causing certain delays in our project, and in view of that, we decided to move those capacities to India so that we can move faster and meet the customer commitment that we have given. Oman, I think project, of course, we will come back to it, but as of now we have put that on hold. Got it. But there was, related to the Oman project, there was a funding of close to INR 1,200 crores, which was also expected to come from Oman Investment Authority. With now the project shifting to India, does this funding round also get sort of canceled? Yes, at least the funding that was from a sovereign fund that we had said earlier, specific to the Oman project, that was approved for that particular project. When we bring it to India, we will have to look at the separate funding, and we have those things in place. But those funding will not be taking for the Oman project. Those are, again, also on hold. Those are already approved, and we have it, but since we have relocated the project as of now to India, at least the funding that was approved for the Oman project would not be available for the India project. Got it. Does this shifting of your Oman CapEx to India, does it also is on account of the battery components PLI, which is expected to sort of come due for these battery chemicals? There are multiple reasons. Of course, the overall environment in India for the battery industry is looking much better now than what it was last year or a year before. Part of the reason is driven by the domestic, as I said earlier, is the projection for the domestic market, which is driven by the BESS. There are other push which is coming from the policy side, is also making this market opportunity very attractive for us to be in India. Understood. One last question on the new age fluoropolymer side. Last quarter, we had indicated a CapEx of close to INR 250 crore for these debottlenecking activities. Within the new age fluoropolymer space, could you just highlight which products are we seeing higher traction and where we are planning to expand capacities on? Yes, I think I will request Kapil for the fluoropolymer capacity. I think you want to add on it as well. Okay. In fluoropolymers, obviously, our growth opportunities was primarily in the new fluoropolymers, which I think I said earlier also. We will continue to focus on these opportunities. When we say debottlenecking, those are related to some very specific grades and products, where we see certain more growth opportunity. But the focus going forward continue to be the new fluoropolymers. Okay. Understood. I just wanted to know within the new age fluoropolymers, which all products, like PVDF, FKM, PFA, amongst these products which we have under new age fluoropolymers, where are we seeing the highest traction and where are we expanding on the capacity side? I just wanted on the product specific side. Obviously, PVDF is driven by the battery requirements. PFA, FKM, they are all driven by the requirement that we are seeing from semiconductor sector. Kapil, you want to add more to that? Yeah. As we have mentioned that some of the new sunrise sectors, we are talking about some expansions are coming up in semiconductors in India and also in part of the world. We are also seeing green hydrogen also coming up very nicely now. The pilot projects have started coming up with commercial projects to follow. And then also in the data centers also, we have seen some of our fluoropolymers getting approved and some commercial business coming now with us. Future business is also going to come as the projects get approved. So we are focusing on those products which are going to get aligned with these sunrise sectors, as Dr. Kapoor is mentioning. So our products will keep on getting added as and when we keep on getting the traction from these sectors. And based on that, we will do our CapExes and debottlenecking. Understood. That is all from my side. Thank you so much. Thank you. Thank you. The next question is from the line of Naushad Chaudhary from Aditya Birla SLMF. Please proceed with your question. Yeah, hi. Thank you for the opportunity and congrats to the team for decent set of numbers. Follow-up on the Oman, this funding as we have now shifted the plan from Oman to India. That fund would not come. Would it trigger fundraising or internally we can manage this investment? Thanks, Naushad. Our fundraise process is on, and we are raising as we are going along in terms of our fund requirement. That is true. Clearly, the fund in Oman was raised with a very specific to Oman project. Coming back to India, we will, I think, continue to raise funding for these projects. But as of now, we do not see that as any constraint to put up the project or add capacity. Okay. For additional deployment of roughly INR 4,000 crore in the battery chemical, how much land would require, and how much do we have, and how much we need to buy more? While moving Oman project, the first phase of the project, we have land available in our existing HB plant, which we call Jolva plant. Also. We have all the elements in place. We have the required approvals and clearances to execute these projects, availability of the land, infrastructure, and the site infrastructure support to execute it. We are also adding one more site, again, in the Dahej area, which will probably be utilized. Land, we do not see as a constraint, Naushad, going forward, because our immediate expansions will be done in the Dahej B site, and subsequently, we will be adding one more site in the Dahej area to take care of our expansion, which will be in FY 2027 toward the end and 2028. Last on the anode active material we announced last quarter. I wanted to understand what would be the size of CapEx for this particular product, and what is the synergy we have on this versus our base business? I think, Naushad, we have not given any CapEx which is product specific for right reasons. For anode, we have not announced a CapEx or specific CapEx that we talk about because it is something which I believe it is confidential in a way because Correct It is something which is confidential information for us. All right. Thank you so much. All the best for the business. Thank you. The next question is from the line of Siddhant from [inaudible]. Please proceed with your question. The next question is from the line of Arun Prasath from Avendus Spark. Please proceed with your question. Thank you for the follow-up question, Key. Sir, my question. We have plant. Now that we have the plant, are we selling it primarily in the domestic markets or export markets? Going forward also, what will be the combination of spot and contracts in R32? Any clue on this? Arun, could you come again, please? Because again, we lost in between your question. Your question is specific to refrigerant or battery materials? Sorry, sir. I will just repeat. For some reason, the connectivity is not so good here today. The primary question was on the R32. Yes. Now that we have started the plant, are we selling it primarily in the domestic market or are we exporting also? Second, what is the nature of the sale? Is it a spot or contract? How you think this will shape up when the new plant also comes up? This R32 is for the global market because we have a long legacy and experience in marketing these refrigerant products across the globe. When we are looking at R32 as a product, we are looking not only domestic market, but international market as well. Now, coming back to whether it is a long-term contract. It is a combination of both. It would be difficult for me to give the percentage, but ask me to probably I can say probably 40%-50% would be a long-term contract, and then remaining one would be on spot or contract to contract. Interesting. Since it is largely for our global markets and the sales in domestic will be limited, does it also mean we will not be gaining any consumption quota in the whatever we are selling in 2026? I think the quota is based on the production capacities, which we already discussed earlier. It has two components. One is based on the baseline and then the actual production between 2024, 2025, 2026. These three years. I do not understand your question regarding the consumption quota. It is all on the production. That quota applies to us whether we are selling in domestic market or exporting it. Sir, my understanding is the producers are entitled for production quota, and whatever you sell in the domestic market, that gives you consumption quota. Is it any different? Yeah, I think, I am not really clear about it, Arun. Let me check and come back to you on this. You can connect with [inaudible] on this. Sure. We will clarify. Please. I'm a little bit confused about the consumption quota right now, because my understanding is for the manufacturing and the production quota. Right. No issue, sir. That's what we always talked about, which is based on certain formula and the GWP basis. Understood, sir. We'll connect later. Thank you very much. All the best. Thanks, Arun. Thank you. The next question is from the line of Dhruv from HDFC AMC. Please proceed with your question. Yes, sir. Thank you so much. Sir, can you say, what was your R32 utilization this quarter? It's almost fully utilized with the capacity that we have, Dhruv. 10,000 tons almost fully utilized for the quarter. I think because, as we are adding capacity, whatever capacity we have currently is fully utilized there, Dhruv. All right. And sir, given that you are exporting primarily, will there be a lot of difference? Because now we do not get the data. Is there a lot of difference between the domestic pricing and the export pricing? I am just trying to understand how should I think of the numbers. Normally we do not comment on the pricing, but in this particular case, I can say they are very close. Okay. And sir, last question. Your polymer business has grown by about 15%. There was a question earlier, but is it possible to split it between volume pricing and mix, the growth driver? Difficult to give, Dhruv, but I do not think we can share. We have never shared very specific like that. But primarily this is driven by, as I said, two things. Higher grades, which is new fluoropolymer volumes. And in some cases, within the existing products that we have, some of them we are going for the higher and higher grade to get a better value. So I would not call it a price, I would call it the value. So where we go up the value chain in terms of the product mix. More of mix and some of volume. Correct. Right. Got it. Sure. Okay, sir. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of Meet from JM Financial. Please proceed with your question. Hi, sir. Thanks for the opportunity. First question was on R134a. Are we putting up this plant as a greenfield or a brownfield expansion? Also, how are we planning to source trichloroethylene? Because I believe it is a fairly restricted product globally. Are we planning to backward integrate into that as well? It's a brownfield expansion, R134a. It's in one of our existing sites, which is producing refrigerants. As far as the TCE is concerned, we are not planning to go backward integration right now. We'll be importing it from outside India. We have identified suppliers, and we do not see that as a constraint going forward. Oh, okay. TCE import from China is, at this point of time, being freely done into India? Yes. It will be imported from outside India. Sure, sir. Second question. I just wanted to understand, how do we structure our fluoropolymer contracts? Because in 1Q, despite sulfur prices going up by around 3x-4 x and fluorspar prices also going up, we have not taken any price hikes in our core fluoropolymers portfolio. Does that mean that margins in 1Q in fluoropolymers would be lower than what we have seen previously, and because of mix only, we have seen this improvement? Meet, we have some formula-based understanding with our prime customers. Whenever such things happen, we always have those formulas which are there to protect us. That is why you must have seen the results also of the last quarter, that we have been able to protect our margins. Okay, so we would have taken formula-based price hikes as far as the raw material price increase is concerned? Yeah. We have been able to manage the price, whatever cost increases were there through other formula-based pricing or with an understanding with the customers to mitigate our risk accordingly. Okay. Understood. Sure, sir. Thanks. That is all from my side. Okay. Thank you. Thank you. The next question is from the line of Ankur Periwal from Axis Capital. Please proceed for your question. Yeah. Hi, sir. Thanks for the opportunity. Sorry, I joined the call a bit late, so pardon if there is a repetition. First on the fluoropolymers growth. Was there any price hike that we took? I am not asking about magnitude, but have we taken a price hike or let us say probably it is more Q2 onwards that there will be a price hike impact coming in? Hello? Hello. Sorry, Ankur. Yeah, sir. Sorry. The thing is that- Am I audible? Yeah. Yeah, I can hear you, Ankur. That's good. Typically, what we do is, when there is a volatility in certain prices, as Kapil was explaining, we typically tend to pass on that price increase to our customer. These are essentially to address some of the input costs. For example, when the oil prices went up and there are certain raw material that we have, for example, like methanol and sulfur, which went up. So those price corrections, normally we take. Those are small corrections, and that is a common practice we continue to. There were volatility, as you know, from March 2026 onwards. So those corrections that we have taken. However, I would like to emphasize here that those are the corrections typically done to ensure our margins and maintain our target margin that we have. A lot of the growth that we are seeing right now in fluoropolymers that we have indicated 15%-20% annually is driven by two things. Let us understand. One is the product mix that we change, go for the higher and higher grade product. Second is adding volume from our existing new fluoropolymers, which we expect to get fully utilized very soon. However, a lot of it is coming because there is a regular growth, because once we make a particular grade, it gets qualified, and then just slowly the volume ramped up. So what you see today is a combination of the two, Ankur. Because price hike, when we talk about because of the inputs, is marginal. Sure. Because that is just to cover what the input costs are. The product that we make are all high-end materials, where the input costs are there, but there is a lot of component in it is for the know-how, which goes into these high-end products. Kapil, you want to add anything? Yeah. Also one thing, as we have been mentioning, these high-end grades and high-end products, obviously the approval process is slightly longer from the niche applications. Now we are in a cycle where we are constantly having these approvals from our customers globally. Every quarter, we keep on adding those approvals, and every quarter, we keep on adding those commercial volumes also, as and when we keep on getting the approvals. That's how we balance our capacities, and that is how we balance our margins also in the growth. Sure, sir. That's very clear. Just from an approval perspective, as you said, a large part of all these approvals should be in place within this financial year, so that when the new capacity comes in, there could be a quicker ramp-up there. Will that be a right understanding? Yes, you are absolutely on the dot. We are in the midst of getting approvals. Yes, by the end of this financial year, most of the approval will be in place. Commercially also, we will be taking the volumes from further up in the second half of this financial year. Sure. Because there's no follow-up approval because it's a newer site or new production, so you don't need a follow-up approval for these products. No. Just clarifying that. It is just a follow-up of whatever approvals we have got, and then the capacity additions to just take the volume further up as the demand keeps on ramping up. Great. Just second bit on R32. I know you answered that question partially. A combination of long-term and spot sales is what we are doing right now, probably more on the export side. For the incremental additional capacity that will be coming in, will that be also similarly, largely contractual, or how are you looking at it? Amongst the global markets, which geographies are we focusing on, if you can help on that? Thanks. It is a combination of the both, because as we get more and more materials, we are looking at marketing it across the globe. I think it goes into different geography. We are not particularly focusing R32 for any specific geography. All I would like to add is that R32, from our perspective, also goes in combination to R-410a, because we are one of the few players who has 125 and R32 both available. We are in a very unique position, Ankur, to not only sell R32 as it is, but also as R-410a blend. It is a combination of the two. Sure, sir. That is helpful. That is it from my side. Thank you. Thank you. Thank you. The next question is from the line of Rohit Nagraj from 360 ONE Capital. Please proceed with your question, sir. Thanks for the opportunity, and congrats on good set of numbers. First question on the battery chemicals, given the scale-up that we are expecting, are we on track in terms of getting that three-digit revenue number by Q4 and a significant scale-up in FY 2028? Thank you. Yes, Rohit. We are on track and meeting our targets, what you said. Three digit in quarter four and significant ramp up in the following financial year. Thanks, Rohit. Yes. Sure. Second on R32, once the additional capacity is commissioned, again, based on our contracts in terms of domestic as well as exports, do we expect full utilization during calendar year 2027 for the total 20,000 tons of R32 capacity? Thanks. Yeah, we expect full utilizations. Based on our understanding of the market, as and when we have the capacities, we are looking at able to market it. So full utilization. Okay. Right. One last question on fluoropolymers. Given that 3M had exited last year and AGC has also indicated that they want to shut down the U.K. facility, are we experiencing the impact of 3M now? If the AGC facility goes upstream, will we see additional demand for our product, given that the void created by them should be taken by the incumbents? Thank you. Yes, Kapil, please. Yeah. Rohit, 3M is now event of the past. In the last two years, we have more or less taken the full impact of whatever 3M exit happened. Whatever growth we are seeing in the higher value added chain, a couple of reasons are because of that also. Because they vacated the high-end market, we are entering into that high-end market because they vacated that space. Coming to AGC, that announcement has just come. We have started getting some queries and inquiries from the customers who were using their material. Again, the good part is that more or less whatever they were making, we have the grades available with us. Our qualification process also has started with the customers who are their customers. That also traction we will see, not immediately, but probably a quarter or two down the line. Perfect, sir. Thanks a lot, and all the best. Thank you. Thank you, Rohit. Thank you. Thank you. Ladies and gentlemen, that was the last question from the participants. I now hand over the conference to management for their closing comments. Over to you, sir. Thank you. Thank you very much. I would like to thank you all for your continued patronage. As we have been guiding in the past, the CapEx we have incurred over the past couple of years have now started to contribute to our financials meaningfully, and we expect to grow further from here on. Fluoropolymers has done well and expected to grow, as we had said earlier, 17%-20% annually going forward as well. Again, primarily on volume as well as the high-value products. Fluorochemicals segment has emerged as a very strong contributor to our financials and is expected to contribute meaningfully to our profitability going forward. Advanced Battery Materials segment, after a very rigorous qualification and approval process, will now start to contribute to our financials and growth. This segment will see sticky growth over the next few years, driven by demand explosion and our global positioning in this segment. I can say with confidence, we are very well placed to witness strong growth going forward. With this, I would like to thank you all for your interest in GFL. Thank you. Thank you, everyone. Thank you. On behalf of 360 ONE Capital Market Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.