Ladies and gentlemen, good day, and welcome to the Jindal Steel & Power Q1 FY26 earnings conference call hosted by Nuvama Wealth Management. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your dashboard phone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Jashandeep Singh Chadha from Nuvama Wealth Management. Please go ahead. Hi, thank you, Ms. Khan. And good afternoon, everyone, and thanks for joining the first quarter call for Jindal Steel & Power. I'll quickly hand over to Mr. Vishal Chandak, the head IR and strategic finance, and he'll take you forward. Over to you, Vishal. Thank you very much, Jashandeep. Good afternoon, good day, ladies and gentlemen. I welcome you all to the Q1 FY26 earnings briefing of Jindal Steel. I have with me from the senior management team, Mr. Sabyasachi Bandyopadhyay, whole-time director; Mr. Pankaj Malhan, executive director; and Mr. Sunil Agarwal, head finance. Without much ado, I'll hand over the phone. And Mr. S.K. Pradhan as well. Sorry. Mr. S.K. Pradhan, head of marketing on Flats. Without much ado, I will hand over the floor to Mr. Sunil Agarwal for the opening comment. Over to you, sir. Thank you, Vishal. Good afternoon, ladies and gentlemen. I welcome you to the Q1 Financial Year 2026 earnings briefing of Jindal Steel. Let me quickly brief you on the global economic scenario. IMF, in its recent update in July, has revised global growth forecast for 2025. Current year, calendar year 2025, to 3% from 2.8% in its April forecast, reflecting improved financial conditions and improving certainty to the tariff regime as compared to previous quarter. China continues to grow well over the stated target of around 5%. The IMF forecast for calendar year 2025 is 4.8%. This is partly driven by the front-loading of exports to the U.S. before the tariffs come into force. However, the tariff-related uncertainty continues to linger on. Global inflation is expected to gradually decline from 5.6% CY 2024 to 4.2% in CY 2025. India's crude steel production grew 1% quarter on quarter to 40.6 million tons in Q1 FY 2026, while demand contracted 5% quarter on quarter to 38.3 million tons due to seasonal weakness and early onset of monsoon. Steel export declined by 4% quarter on quarter to 1.6 million tons, and import declined 19% quarter on quarter to 1.9 million tons. India remained the net importer of steel in Q1 FY 2026 for the fifth consecutive quarter, with 0.3 million of net imports. Chinese steel production continues to outpace its domestic demand, resulting in elevated exports impacting prices globally. China is currently running an annualized export of 116 million, highest ever, which has resulted in several countries taking measures to stem the low-cost imports from China. Several countries have either imposed or increased safeguards or anti-dumping duties against Chinese steel exports to shield their domestic industry from unreasonably low price imports. The Government of India introduced a provisional 12% safeguard duty on select steel imports, effective April 21, 2025. This result has stemmed the flow of imports. The provisional duty will be effective for 200 days. During the quarter, domestic HRC and TMT prices increased on a sequential basis. HRC prices were partly supported by the 12% safeguard duty on most of the select steel imports, effective April 21, but corrected later due to weak domestic demand. TMT prices opened on a strong note but drifted down due to the early arrival of monsoon and substantial inventory in the system. Now, let me start with the key quarterly numbers. Production during the quarter one was marginally down by 1% quarter on quarter to 2.09 million tons. Sales volume at 1.9 million tons, down 10% quarter on quarter basis, on account of replacement of inventory after excessive drawdown in Q4 of FY 2025, which is the seasonally strong quarter. Consolidated gross revenue fell 8% quarter on quarter to INR 14,336 crores on account of lower volume, partly offset by increase in the ASP. During the Q4 earnings call, we guided for saving of around $10-$15 in our Q1 coking coal consumption. Our actual coking coal cost has reduced by $11 per ton, in line with our guidance. Consolidated adjusted EBITDA for the quarter stood at INR 2,984 crores, and adjusted EBITDA per ton stood at INR 15,680 per ton, which is up by 35% on quarter on quarter basis. Consolidated tax for the quarter stood at INR 1,496 crores, which is 36% higher than the adjusted tax on quarter on quarter basis. Str ong financial performance was driven by higher ASP and lower input costs, including reduction in conversion cost. Coming to our debt profile, our consolidated net debt as of 30 June was INR 14,400 crores, which has increased by INR 2,443 on a sequential basis, primarily on account of working capital build-up. Accordingly, net debt to EBITDA stood at 1.49 times at the end of the quarter. We reiterate our commitment to cap the net debt to EBITDA at 1.5 times, underscoring our position as one of the strongest balance sheets in the industry. On total Capex in the quarter, it stood at INR 2,226 crores. Out of our total announced Capex of INR 47,043 crores, we have expensed INR 28,150 crores till 30 June 2025. On mining front, we have won Roida I as an iron ore and manganese block in Odisha. This block has an EC capacity of 3 million tons per annum and an estimated reserve of approximately 126 million tons. The company has already started extraction of iron ore from this mine. We plan to extract around 1.6 million tons in FY 2026 from this mine. I am pleased to share that we have successfully commissioned our first 0.2 million tons container galvanizing line at Angul. This makes an important milestone in our journey and reinforces our commitment to deliver high-quality, value-added steel products to meet the evolving needs of diverse industries. As informed previously, the commissioning activity of Blast Furnaces II has already begun with the lighting of three gas stoves in Q4 FY 2025. We are on track to deliver the first hot metal from Blast Furnaces II in this month. The rest of the project, including BO2 slurry pipeline and SBPP, are progressing well as per scheduled timelines. We expect the slurry pipeline to be commissioned during the current fiscal year. For Q2 FY26, we expect the consumption cost of coking coal lower by around $5 per ton. The iron ore costs are currently flat on quarter on quarter basis. Domestic steel prices are currently lower by 5%-7% compared to Q1, while prices are soft currently, but the early indicators suggest that the possibility of turnaround is soon. However, it is a little early to talk about how Q2 shapes up. With this, I open the floor for questions and answers. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the dashboard telephone. If you wish to remove yourself from question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead. Yeah. Hi, sir. Good afternoon. Am I audible? Yes, you are. Yes. Yeah. Hi, sir. Could you explain the reasons for volume decline on a year-on-year basis? And given the earlier guidance of 8.5-9 million ton, with Q1 volume sharply down, is the guidance still remaining, or do you look to cut down on the same? Say what, sir? Yes. Vishal, I was going to. Good afternoon. Hello, everybody. Thank you for joining. From our standpoint, production was broadly stable quarter on quarter basis in the first quarter. Sales volume was certainly impacted by 10%, but that happened because of the early onset of monsoon. Also, we had an inventory build-up, which certainly will get liquidated over the course of the year. As for guidance towards the production and sales for the balance of the year and for the full financial year, we remain on course, and we remain committed to those numbers. Thank you. Yeah. Thank you, sir. What was the utilization in this quarter? Utilization in terms of? So production utilization, which you said every quarter? In this quarter, capacity utilization, you were asking for? Yeah, yeah. Correct. Yeah. So we were roughly about, I would say, 90%-92%. So can I take this question? Yeah. Sunil Yeah. In our Raigarh plant, our capacity utilization was 95%, and Angul we had roughly around 83-84%. On average, we can say that's a blended 90%. Okay. Because March, you had mentioned capacity utilization of 85%, and from there, sequentially, volumes are down 1%. So surprising how are we saying utilization is close to 90%? I think basis. Can Can you please repeat the question? Your audio is not clear. Can you please repeat the question? I'm saying in March quarter press release and presentation, utilization was mentioned for the company at 85%, with production numbers shared at 2.11 million. With 2.09, it should be lower than 85% because you mentioned closer to 90%. If I look at the capacity at this point of time, basis Angul and Raigarh, without the additional capacities that are yet to come in in Angul, we are broadly at about 90% of our capacity utilization. As Sunil talked about, Raigarh plant running at about 95% and Angul at about 84%-85%. Overall, we can say that last quarter it was 88%, and current quarter is 87%. 1% production is down from quarter on quarter. Understood. Yeah, yeah. Just to clarify, the capacity utilization is down by just 1%. Production remains stable. The decline is on the volume. Production remains stable. Sure. Thank you. I'll come back in queue. Thank you. The next question is from the line of Amit Dixit from Goldman Sachs. Please go ahead. Yeah. Hi. Good afternoon, everyone. And thanks for the opportunity. Congratulations for a good set of numbers. A couple of questions from my side in the presentation deck. While you have mentioned on the slide 32 about the timeline of Blast Furnace II commissioning, which is Q2 FY 2026, is it possible to mention the timeline of BOF2 as well when it is expected to be commissioned? There's undergoing pre-commissioning tests, but a commissioning timeline would be great. Let me take this question. You rightly said we are at a very advanced stage in terms of our Blast Furnace II startup. Sunil mentioned a while back we've all completed our stoves dry out, furnace dry out. We're just trying to in the last leg of the commissioning activities. So that means sometime very soon we would be able to announce BOF2. And BOF2, if I was to take that, it would be starting almost sometime very close to Blast Furnace II also. So we are at the advanced stage of commissioning at both these units. So is it likely to expand that it would also be commissioned by Q2 or max by Q3? BOF2 we are expecting in quarter two of FY26. Great, sir. That's helpful. The second question is if I look at the raw material costs per ton, it has gone down by almost INR 3,500-INR 3,600 per ton. Now, while coking coal is one factor over there, I just wanted to understand what are the other factors that resulted in such a sharp decline in raw material costs per ton? And is this sustainable? Some of these factors are sustainable going ahead? So let me take this question, sir. So if you remember, sir, last time we announced one item of around 231 crores that has a factor of 336 rupees per ton. If we net off that, our net improvement is around 2,864. Sorry. 336 is our captive consumption if you reduce that. So net consumption is 2,864. And due to one-off item in the Q4 2025, around 1,200 rupees per ton was the effect. And if we deduct that, so net impact is around 1,600 something per ton, which has come out of coking coal that we have already announced that we are saving off around $11 per ton during the quarter. So that has resulted in around 500 rupees per ton. And second is the PCI also. We have saved around 200 rupees per ton. We have the saving in other items as well on scrap and other items that amounts to INR 900 and INR 1,000 per ton. Hope this clarifies. Yeah, sure. It does. I have other questions. I'll come back in a bit. Thanks in advance, sir. Amit, this is Vishal here. I think the gap which everyone is looking at is we are missing out the point that in the previous quarter, we announced a one-off of INR 331 crores, which was primarily residing in the raw material costs. Adjusting for that, balance has all declined in the raw material costs broadly. Yeah, sure. I mean, the bridge that was explained was quite good. Thank you so much for this elaborate answer. Thank you. The next question is from the line of Amit Murarka from Axis Capital. Please go ahead. Yeah. Hi, good afternoon, and congrats on a great result. So just on the Angul II commissioning, would you be able to also provide some guidance volume that we can expect from BOF2 and BOF2 this year and next year? Amit, that's a wonderful question. And our guidance remains the same, in fact, which Sabi also mentioned a while back. So we committed to the guidance that we've stated at the start of the year, both in terms of production and dispatches. And we're very hopeful of hitting those numbers. Okay. Okay. Sure. Also, I was just seeing the presentation, the sectoral split of volumes. Auto seems to be only 3%, whereas flats is 44%. So I believe flats earlier used to be like 20-25% range, which is your plates. So where does this increase come from then, if not from auto? So, Pradhan, if you can, Mr. Pradhan, you can take this question. Yeah. Good afternoon. Most of the flats are coming from the new commissioning of the hot strip mill, which we have done. The ramp-up takes some time. So we have started supplying to a lot of auto manufacturers, trial lots and all. But major volumes to auto, we are supplying to a lot of value-added segments. If you have seen, our value-added sales has gone up to 72% in this quarter compared to the previous quarter. So a lot of supplies to the very high grades of HR coils and HR coils. So that is what has contributed to the increase, other than auto, right? Sure. And by when do you think the auto volumes could start to be meaningful? It will start. will start. Yeah. It will start ramping up as we'll move ahead in the quarter on quarter. Okay. Got it. And just lastly on Tensa, did you produce any iron ore from Tensa in the quarter? Yeah. We did produce a bit of that coming from Tensa, but yes, Tensa is towards the end of the mine life, and if I was to just share with you guys, the results of what we've seen is minus Tensa almost for this quarter. The important part is to have our security done, and that's how we have gone ahead with Roida I mines. That would be actually compensating for the loss in volumes from Tensa getting into the future quarters, so Tensa did contribute, but a very minimal impact of that in this quarter. Sure. And if I could just squeeze in one last question, you seem to be having the opening inventory of 0.2 million tons. So given that steel price has corrected a lot since the last quarter, could there be any NRV impact that would come in on this opening inventory? Yeah, so certainly, the effect of price reduction may be, but we are maintaining that inventory from the quarter on quarter basis, and it will sequentially have the effect since now the prices are moving upward, so we don't see much effect of that. Sunil, if I may add, in fact, on an aggregate basis, we do not anticipate any major impact at all. It's going to normalize itself. And we actually stand with a position of gaining a little bit from the price depression that happened and now regaining back its ground. Sure. Thanks a lot for the questions. Thank you. The next question is from the line of Prithviraj from Anand Rathi. Please go ahead. Yeah. Hi. Thanks for the opportunity. My first question pertains to the Net Debt position. I believe this is the highest threshold level we have reached post 2021, right, and the opening remarks informed all of us that this is like 1.5x is the threshold, so it is fair to assume that this is the peak and from here on going forward over the next two to four quarters, we should see some debt reduction happening once the facility comes upon us too. Sure, sure. So we are seeing this as a peak because I have spoken that we have built up the inventory in Q1 for around 2,400, which is getting liquidated in Q2. So that will facilitate the reduction in the peak. That will improve our cash position. And now we are going to start the blast furnaces and our BOF 2 that will start contributing. And we don't see this 1.5x breaching anymore. So we are at the top of our net debt to EBITDA limit that we have set. Perfect. This is Vishal here. Let me reiterate over here. We had an inventory buildup, which led to a working capital balloon. We still have contained the net debt to EBITDA at 1.5x. We have an accelerated capex because the facilities are commissioning. Cash flows are yet to come in. We still maintained net debt to EBITDA at 1.5x. 1.5x is represented to us. It's a red line. We will not breach. I reiterate, we will not breach. So I'm coming quarter three. The situation will automatically improve. And let me reiterate, in Q2, we have already crossed almost half of the Q2. We are still below 1.5x. So I think the stress is beyond us now. We are looking for so me good times ahead. Thanks. Yeah. Thanks, Vishal. Thanks. Really helpful. My next question is pertaining to the value-added side of the business, right? I believe the 72% is one of the highest in the industry. Usually, the industry is around 60%-65%. Now, number one, how confident are you to ramp up from here on, say, 72 going forward? And just a very technical question. What do you perceive as a value-added product? Is it, after a certain conversion, what is termed as a value-added, or how do you perceive a certain product to be a value-added? What quantifies or qualifies it as a value-added? Yeah. Could I take it, Vishal? Yeah, yeah. Pradhan, please go ahead. Right, right. So yeah, good afternoon. So value-added in our case, category to category, it's much different. But then whatever has a, if you take a thumb rule or a benchmark, then anything above 80 to 500 MPa strength or value-added in plates, in HR coil, we are most of the high carbon, medium carbon, different grades. So it is the grade which defines whether we treat it as a value-added or not value-added. And the jump in realization. These two parameters we consider when we're deciding whether the product we will treat is value-added or not value-added. And it's consistent. So can I add to that, Shushil? So in plates, also, what we do is typically we got a heat-treated segment, which is absolutely high-grade plates, which is getting into very specialized sectors like defenses, automobiles, and even high-end of construction. Which is one of the reasons. One of the good examples is Chenab Bridge that we did. Then, of course, the value addition that we give to the customers in terms of the solutions, which is largely coming from the fabricated structures. Then some high alloy wire rods. All these and even the large-sized TMTs. We are the only company making 50 TMT. So these all falls under value-added offerings from the company. The second part of the question was whether the 72% is sustainable, considering that the industry is operating somewhere around 60% range. So in this quarter, what has changed is since we are ramping up HR coil facility, and we are not at the fully utilized level of HR coils. So our focus is entirely on getting the best out of the asset. And that's how the very high volume concentration of value-added products we are making in our auto strip mill. Also, if I may just use a very quick one, just wanted to get the percentage of longs and flats this particular quarter. 44% is, I think, our flats, and 56% is longs. Sure. Thank you. And I'll join the queue. Thank you so much. Sushil, if I may quickly add to that, the points that you are making, that we re-geared and shifted focus, even in Raigarh plate mill, to produce plates, along with the furnace normalizer and the upcoming facility of HRC, which is about to commission here, will certainly help all of us to not only retain the value-added percentage, but also add up. Thank you so much. I'll just join the queue. Thank you. The next question is from the line of Rahul Kumar from Vakharia Capital. Please go ahead. Yeah. Hi. Actually, just a question on the industry in general. What has been the trend in the HRC import from China to India after the BIS norms on the input materials as of, let's say, in the month of July and August? How has it fared? Vishal, I'm taking this question. So Chinese imports have practically stopped now, except for some advanced license imports against advanced license. Two factors. One is the Chinese prices improved by roughly around $50 in the last one and a half months' time. So that has made the price almost unviable for them. Today, in fact, Chinese imports are at premium to domestic prices. Okay? So that is one. And also the QCO order and Melt and Pour strict enforcement of that, that has impacted the imports from China. Going forward, we are not seeing China as a major threat directly, but indirectly, it may have an impact. What you are looking at, India is becoming a net importer for fifth consecutive quarter, right? Our exports are very low. So in the international market, we are not able to compete because of the Chinese factor. Chinese exports, it's an all-time high. This year, they are roughly exporting nine to 10 million tons every month. That's having an impact globally. Okay. So let's say, I mean, theoretically, hypothetically, if China HRC prices go down, would these BIS norms I mean, because of these BIS norms, the imports will still be very low? Yes, it will have an impact. It is having an impact. The low quality or inferior quality imports, which used to be a big factor for Indian players, have started coming down. And government has taken a very, very positive step on that direction. Okay. Okay. That's all. Thank you. Thank you. The next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead. Hi. Thank you. The first question on the project, while you mentioned BIS, BOF, and slurry pipeline, I just wanted to get an update on some of the other projects like the Q&T line, color-coated, galvanized, and also in the railway rails that we were looking to acquire. And tied to that would also be that there was a news report earlier, press release by government, that JSPL has been selected for financial assistance incentive on the 2 million ton coal gasification. We didn't understand, is that a new coal gasification plant? Because you already have excess, seems like you already have sufficient coal gasification at Angul right now. So just wanted an update on the project and also this coal gasification before I move to the raw material question. Okay. Let me ask this question. We started with the cold rolling mill. We have already commissioned 200,000 tons of galvanizing line. This is the first from the stable of JSPL. We continuously had a lot of lines getting into this financial year. The next in line, we are expecting our color-coated line, which should be there by end of quarter three this financial year. And then, of course, two more lines which we would be adding, our galvanizing line and color-coated line number two. So both should be with us in quarter four of FY26. Talking about some other projects ranging from, say, slurry pipeline, we've already given an update. We continue to run fast on our steady speed over there. The major bottlenecks are behind us now. And our guidance remains the same of what we've given before in terms of completion of the project. Hello? Yeah. I think, Satyadeep, you have a very long list of projects for which you are seeking an update. I would like to take this offline because in the interest of a long queue behind us, we can talk about this offline. Sure. So second question on the raw material cost. Just want to first on Tensa. It seemed like Tensa had some reserves on the boundary. So I was under the impression initially it can sustain to 2028. What is it now, end of life? And also the INR 1,000 per ton raw material cost saving that came from others. I think you mentioned scrap, some other apart from coking coal. What was that? Is that sustainable, the non-coking coal related cost savings that you saw in the quarter? Yes. The other cost is sustainable. These are basically some I always spoken that this was due to one-off, around INR 1,400 per ton in Q4. And other savings that I spoken that we think that is sustainable in future, I think. So we are operating on the no, Tensa is already effect of Tensa is there in Q1. So we have not taken much from Tensa, only 0.13 million tons that we are expected in Q1. So that has hardly any impact on the Q1. So we think that whatever the saving is there, we will sustain that in future as well. So Satyadeep, if you look at our results and the opening remarks in which Mr. Pankaj Malhan also mentioned the minimal amount of intake from Tensa mines, so I don't think even if you discard the effect of Tensa mines, the results are broadly purely operational on that front. Can I add to that, Vishal? I think we spoke about Tensa. Tensa, of course, got a minimal impact on our quarter one results. Mostly, it is backed by some kind of improved value in used items and operational excellence, which has actually led us to cut down our cost. And going forward into quarter two, of course, we all know this is a seasonal quarter. And of course, there are monsoon challenges with any steel company. But we are very hopeful of getting back to our sustained position of these operating excellences, getting into subsequent quarters also. Okay. Thank you so much. Thank you. The next question is from the line of Sumangal from Kotak Securities. Please go ahead. Yeah, good afternoon. So my first question is on thermal coal. Just want to understand what was the mix in Q1 and how are we benefiting from more and more captive coal and how is it going forward in the coming quarters? Let me take this question. Utkal C continues to be performing well for us. Quarter one, if I was to say, our 90%-95% of the thermal coal came out of our own mines. We continue to have some efficiency, small amount of that with the MCL mines. Getting into the subsequent quarters, we've already announced that Utkal B1 is expected to be on track in this quarter itself. So we should be able to actually meet our coal requirements from our own mines getting into this financial year. I understand. And sir, what would be a delivered cost or at least comparison with linkage coal, any option versus captive? This is a very specific question. I don't want to take that. But yes, there is a delta of around 3%-4%. That is what I can say as of now in terms of using our own coal versus the bought-out coal. Okay, and sir, when do we expect Utkal B2? Any timelines there? So we are already there. It's being a monsoon season, and there are some delays, but we are expecting the coal to be with us out of quarter. Utkal B2. I guess some approvals are pending. B1. Sorry, I mentioned about B1. Okay. So any update about B2? When do we expect? I think that's the last mine in the portfolio, right, where we are awaiting approvals? B1, we've set our own priorities as of now. So we're working on one by one. I think B2 definitely is on our cards, but we'll let you know. Understood. And just one last question on commissioning of BOF 3 and DRI 2, where are we on the timelines? So on BRI 2, of course, that's one project which we've already announced our revised timelines, which is into FY27. BOF 3, we remain committed to completing this financial year. It's quarter four of FY26. Understood. All right. That's it from my side. Thanks. Sumangal, just to add one more point on the coal portfolio. Gare Palma IV/6, Utkal C, Utkal B1, Utkal B2. These are the four mines of which we have spoken about. We have recently won Sarvapur Jaltap coal block as well. So that has a geological reserve of about 3.2 billion tons. It's a partially explored block, and over the next couple of years, we are going to fully explore it and then announce what is the extractable reserves from there as well as the annual EC limit. Maybe that is something that you would look forward to in our next round of expansion into that. Got it. Thank you. The next question is from the line of Pallav Agarwal from Antique Stock Broking. Please go ahead. Yeah, good afternoon, sir. So I just want to understand the strategy on captive coal because you mentioned that we're already sourcing 90%-95% captively. So what are we going to do with the coal from the additional coal blocks? So is there some element of commercial sale as well, or those are for our captive power plants? These are going to be for our captive power plants. We have almost stated that we are starting unit one of our Simhapuri power plant this quarter itself. So as and when we are going to keep adding our power units, we will continue to ramp up our coal mines. Sure, sir. And you also provided the break-up of the coal sourcing. So is it possible to share a similar sourcing for iron ore? How much was from captive and external sources? I think we can take it offline. Vishal can give you the numbers. Vishal, you can take it offline. Sure, sir. Sure. And sir, just lastly, I mean, just to understand the difference between the consolidated and standalone EBITDA, so this would mostly be from Jindal Urusha? I mean, I'm assuming the overseas coal mines would not have contributed too much to the EBITDA? Yeah. Yeah. I will take it, Pankaj, so this is mainly from the Odisha project that we have started, mainly from that. Sure, sir. I mean, it would help us because this is ramping up. Maybe if we get some separate brief summary of the production and profitability, that would help us in our modeling purpose. So just a request going forward. Certainly. Certainly going forward, when we'll start the production from this new project, we will give separate if required. See, Pallav, the way you should look at it is Jindal Steel India is an entity that you should model in your models as well. Because if you start modeling between Jindal Steel Odisha and Jindal Steel Limited, there would be a lot of confusion between the transfer of material from one plant to another. So you should avoid that. Just build a single model. That would help. Yeah, that would help. But just the annual, the financials and the annual report would be for standalone sales. So yeah, but yeah, for modeling purpose, I think we would do that. Yeah, thank you so much. Thank you. The next question is from the line of Pratik Singh from DAM Capital. Please go ahead. Hey, hi. Thanks for the opportunity. Just to get a sense on pricing, in the opening remarks, I think sir said that prices right now are around 5%-10% lower, which I assume we would be talking about the trade prices. So given a very high share of value-added products in our mix, is it a possibility? We have seen this earlier also that while the trade prices fell quite a bit, but our realization did not fall that much in one of the quarters, I think around two years back. So is it a possibility that the fall that we might see this quarter would be much lesser than what we are seeing in the trade markets? Is that something which we can assume? See, the point which you made about our exposure to trade and our exposure to OEMs is absolutely right. And since we have a very high proportion of value-added steel, value-added sales, the elasticity of value-added prices on value-added is much lesser as compared to the non-value-added or trade type of steel. So you are absolutely right. The impact will not be that high as it is on the trade-level prices. And that has been a strength of Jindal Steel. And that, what you referred to, what happened a few years back, that holds true now as well. Understood. And just a bookkeeping question, otherwise I'll take it offline. Can you give us the split of the acceptances, revenue, and CapEx? Yeah, I'll take it offline. Sure, sir. Thanks. Thank you. The next question is from the line of Kamlesh from Lotus Asset Managers. Please go ahead. Yeah. Thanks for the opportunity. So if I see this particular quarter, we had a cash profit of roughly around 2,100 odd crore. And if I see this one, we had sold shares from the ESOP trust as well, which I believe would be around 500 odd crore. So if we take it together, so 2,600 crore of money which we had from the operating cash flows plus our ESOP. And even if we adjust for the CapEx which we have done in this quarter, so that increase is roughly around 3,800 odd crore, which looks very significant compared to last quarter. I know that there is an increase in working capital. Even factoring that working capital increase, it seems very high. So what are the advantages in that? Because you had provided the bridge, but that bridge really doesn't help because it's just a change in the debt, and the ultimate resultant figure is the change in cash and cash equivalence. Kamlesh, can you please repeat the question? So I mean to say that why there has been such a sharp increase in debt quarter over quarter of INR 3,800 crore? And given the fact that we had such a strong cash profit generation of INR 2,100 crore in this particular quarter and INR 500 crore of realization from the sale of ESOP trust sales. Yeah. Kamlesh, basically, if you see, our EBITDA earning basically moved to working capital, which I have already explained that our working capital movement is around 2,900. And we have earned that. And whatever the total debt, net debt has increased, that is mainly going to the CapEx side, which is 2,226. And balance around 700, we have done some repayments of loan as well during the quarter. And we have paid the interest as well of around 500 crores. I think that gives your answer. No, even factoring that, so it would be better helpful if we can provide some bridge in the, let's say, net debt flow, that how much was the operating cash flow and how much was the change in working capital. Just putting that change in cash and cash equivalents so that anyway we can come out through if you provide net debt and for the last quarter and this quarter. And last. Sure, please. Yeah, yeah, yeah, and lastly, on the Tensa, so can we assume three million turnover rate for the FY26, or how should we project it? Pankaj, you can take the question. Sorry, I missed this question. Can you repeat it, please? No, I mean to say that. Sure. Yeah. Tensa, we have mentioned that we extracted about 0.13 million in Q1. It's at the end of life. So I don't think you should build in that high number in your model while looking at overall profitability for the year. Okay. Secondly, on the breakup that you asked, I think we can take it offline. Thanks, sir. Thanks. Thank you. The next question is from the line of Tushar Chaudhari from Prabhudas Lilladher. Please go ahead. Hello. I'm audible? Yes, sir. Yeah. Thanks a lot for the opportunity. Sir, I just wanted to know if you have a good update on projects. Just wanted to know the update on the pellet plant to 6 million ton. So when are you planning, and what is the update on the ramping up of the one we recently commissioned two to three quarters back, 6 million ton? So the utilization over there. So let me start with the utilization of our existing pellet plant. Cost is going well. If I was to compare YOY basis, the production has gone over 50% and more. So yes, the pellet requirement as and when, if I was to share some more updates, which is available over there in the updates, we could scale up our DRI production strongly because of our own pellet plant ramp-up in Angul. So that continues to be going well. And as and when BF2 is going to come up, we are very hopeful of spreading these assets very tight. From a pellet plant perspective, this pellet plant would be coming up in FY27. That's where we stand as of now. Okay. Thanks a lot. And sir, CapEx for next year will be similar to this year, 10,000 odd crores? Tushar, in our capital allocation framework, we have mentioned already that on an annual basis, we'll do a CapEx of 7,500-10,000 crores. But for FY27, it's too early to give any guidance. We'll come back to you during the Q4 results for the next year's guidance. Sure. Thanks. Thanks a lot. And best of luck. Thank you. The next question is from the line of Rajesh Majumdar from BNK Securities. Please go ahead. Yeah, hi sir. Thanks for the opportunity. So just a couple of questions from my side. One is that we saw a drop in demand in Q2 due to the early onset of monsoon. So we had some inventory buildup. We are already halfway into 2Q. Are we seeing any signs of the inventory position easing? And are we seeing an early monsoon withdrawal plus festive season being preponed this year, adding to demand factors in Q2, which will lead to a drawdown in inventory and increase in sales volume? That was the first question. Sushil? Yes. So this time, the monsoon has arrived a little early. So the demand season started tapering down. The monsoon effect started somewhere in the month of June. But then we are in the month of August now, and we have already started seeing the sign of revival of demand from the construction side. More importantly, there are some lead segments which indicate that how the demand is going to unfold, something like yellow goods, something like construction equipment. We are seeing a very, very strong demand coming from these sectors now in this month, which indicates that the coming quarters, the demand will be extremely good, and this impact will be completely, completely wiped out. And we are looking at good demand quarter side. Right. So we can expect some kind of inventory easing in Q2 itself. Correct. 100%. Yeah. So my second question was on the new blast furnace commissioning. So should we model some kind of losses at least in the first two quarters of the blast furnace ramp-up before we reach some kind of stabilization levels and that's somewhere in FY27? That was my question. So we just spoke about our quarterly numbers. Most of you guys said they are wonderful numbers. The company remains committed in terms of the operational excellence. And it would be too premature for me or anybody else to speak on this, but we are committed to make sure we sustain our numbers getting into the subsequent quarters also. Okay. Thank you. Thank you. A reminder to all the participants to use the mute button if you want to ask a question. Ladies and gentlemen, as that was the last question for the day, I would now hand the conference over to the management for the closing comments. Over to you, sir. Thank you for all of you. As we look at financial year 26, it's setting up to be the defining chapter for Jindal Steel with the commissioning of major facilities, blast furnace, BF, SBPP, and other facilities. Angul is on track to establish itself as one of the world's top single-site steel production hubs. But our journey is not just about expanding capacity. It is about strengthening the entire value chain, from mining to logistics to manufacturing to sustainability. This reflects our deeper purpose, namely creating a nation of our dream. We are grateful for the continued trust and support of our stakeholders, and we remain fully committed to delivering our promises, responsibility, and sustainability. Thank you all for this call. Thank you. On behalf of Nuvama, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.