Ladies and gentlemen, good day and welcome to Polycab India Limited Q1 FY 2027 Earnings Conference Call. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Niyant Maru, Chief Financial Officer, Polycab India Limited. Thank you, and over to you, Mr. Maru. Good afternoon, everyone, and thank you for joining us. I hope all of you are staying healthy and safe. On this call, we shall discuss the Q1 FY 2027 results, which were approved in the board meeting earlier today. We will be referring to the earnings presentation, financial results, and financial statements, which are available on the stock exchanges as well as on the investor relations page of our website. Joining me today from the management team, we have our Head Strategy and Investor Relations, Mr. Shashank Yagnik. I am pleased to share that building on the momentum of last year, the company delivered another year of strong performance, underpinned by healthy revenue growth and profitability. Our performance reflects not only favorable demand conditions, but also the deliberate investments and strategic choices made over the past several years. The wires and cables business maintained steady momentum, leveraging its market leadership and execution capabilities, while the FMEG business continued its trajectory of steady improvement, supported by a richer product portfolio and a wider customer reach. The progress we are seeing today is a direct outcome of our commitment to building a more agile, scalable, and future-ready organization. We remain focused on operational excellence, disciplined capital allocation, and enhancing customer value across every touch point. Looking ahead, we see significant opportunities across our markets. Our priority will be to accelerate profitable growth, strengthen our brands, deepen the distribution, and build the innovation and talent ecosystem needed to support the next phase of expansion. The global macroeconomic landscape continues to be shaped by ongoing geopolitical developments. Disruptions across energy markets and global trade routes, particularly around the Strait of Hormuz, contributed to inflationary pressures during the first half of 2026. While oil prices have moderated from the peaks which we witnessed in April, they continue to remain volatile. Given the fluid nature of the geopolitical environment, uncertainty around the energy prices, supply chains, and global trade flows may persist in the near term. The IMF's latest outlook projects global growth approximately at 3% for 2026, supported by resilient economic activity and technology-driven investment cycles, while global inflation forecasts have been revised higher. The renewed energy shock has pushed every major central bank onto a firmer footing. The Fed held rates at 3.5%-3.75% in June, but turned notably more hawkish, expecting rates to rise later this year. A similar stance was seen by the Bank of England, which held the rates at 3.75% to gauge the impact of the U.S.-Iran war. The RBI held its repo rate at 5.25%, taking a neutral stance, flagged a group driven inflation and rupee volatility as the key swing factors for its next move. Against the global backdrop, India remains one of the strongest performing major economies globally. While the external environment has become more challenging, India continues to benefit from robust domestic demand, public investment, healthy credit expansion, and increasing private sector capital expenditure. Economic activity has remained resilient despite global volatility, reinforcing India's position as one of the fastest growing large economies in the world. Government-led infrastructure spending, a broadening manufacturing base, and sustained momentum in services continue to remain key growth drivers. While services and consumption are driving growth, the government CapEx is progressing well in the first two months of FY 2027 at INR 2.51 lakh crore versus INR 2.21 lakh crore in April, May of last year, reflecting a healthy 14% growth. At the same time, the real estate sector and formalization trends across the economy remain supportive of medium-term growth prospects. On the investment flows front, although foreign portfolio flows were impacted by geopolitical tensions and global risk aversion, strong domestic institutional participation helped sustain market liquidity. Overall, while the global environment remains uncertain, India's structural growth story remains firmly intact. A resilient domestic economy, strengthening investment cycles, a stable financial system, and a continued policy focus on infrastructure and manufacturing provide a very solid foundation for sustained growth. We remain confident in the medium-term outlook for the Indian economy and the robust demand environment it continues to create for our business. Across the organization, our focus remains on execution excellence, translating strategy into outcomes, and strengthening the foundation for long-term growth. Looking ahead, our priorities remain very clear: sustaining growth momentum, strengthening our competitive positioning, and continuing to invest in innovation, talent, and capabilities. I would now hand over to Shashank to take you through the financial performance for the quarter. Thank you, Niyant. For the quarter ended June 30, 2026, we delivered another strong set of results, underscoring the resilience of our business model and the effectiveness of our execution strategy. Consolidated revenues grew by 39% year-on-year, supported by sustained momentum across both our wires and cables and FMEG businesses. Operating performance remained robust during the quarter. EBITDA increased by 32% year-on-year, and the margins stood at 13.8%, reflecting an improvement of approximately 70 basis points sequentially over the previous quarter. At the bottom line, we achieved our highest ever quarterly profit after tax of INR 7,967 million, representing a growth of 33% year-on-year. PAT margins for the quarter came in at 9.7%. Finance costs for the quarter were INR 800 million, while other income stood at INR 1,049 million. For a detailed understanding of these line items, I would request you to refer to slide number 17 of the presentation. Our balance sheet continues to remain strong with a net cash position of INR 39.9 billion. The average working capital cycle improved significantly to 15 days in quarter one financial year 2027, aided by a temporary increase in payable days due to the use of letter of credit for raw material procurement. As these effects normalize, we expect the working capital cycle to settle within our long-term operating range of 45-50 days. Capital expenditure during the quarter amounted to INR 3.2 billion, reflecting our continued commitment to building capacity and strengthening future growth drivers. Let me now move to slide six and discuss the performance of our wires and cables business. The wires and cables segment registered a healthy 39% year-on-year growth during the quarter. Within this, the domestic wires and cables business delivered an impressive 43% year-on-year growth, supported by robust market demand, effective execution across key channels and favorable commodity linked realizations. Volume growth for the quarter on a year-on-year basis was low to mid single digits, which was on top of a very strong base of Q1 of last year. From a category standpoint, wires grew faster than cables during the quarter. Channel sales also outperformed institutional sales, highlighting the strength of our distribution network. Regionally, the West remained the strongest contributor, followed by North, South, and East, reflecting the broad-based nature of our market presence across the country. Our international business witnessed a decline on YoY basis, reflecting the impact of near-term geopolitical developments. However, the underlying fundamentals remain strong and intact. We continue to maintain a healthy order book and remain confident of a strong recovery supported by a positive long-term outlook. EBIT margins for the wires and cables business stood at 13.3%. Sequential margin improvement was driven by a favorable business mix and continued focus on operational excellence. Consistent with our Project Spring roadmap, we continue to maintain our medium to long-term margin guidance of 11%-13% for this business. Turning now to slide number eight for our FMEG business. The FMEG segment delivered another outstanding quarter, recording 71% year-on-year growth, with strong contributions across all product categories. This marks the 10th consecutive quarter in which we have outperformed industry growth rates, reinforcing the strength of our business model and execution capabilities. Solar business, our largest category within the FMEG portfolio, continued to be the primary growth engine, delivering more than twofold growth year-on-year. The category continues to benefit from favorable structural trends, including the PM Surya Ghar Yojana, state-level incentive programs, and increasing consumer adoption of renewable energy solutions. We believe the long-term growth opportunity in this space is quite substantial. The rest of the portfolio, including fans, lighting, switches, switch gears, conduit pipes, and fittings, also delivered healthy growth. This was driven by continued strength in the real estate and construction sectors, supported by our focus on product expansion, market development, and deeper customer engagement. The profitability trajectory of the FMEG business also continued to improve. Having turned profitable in Q4 of financial year 2025, the business has steadily enhanced earnings while simultaneously investing in people, innovation, product development, and brand building. EBIT margins for the quarter were 8%, very much in line with the milestones laid out under Project Spring, where we target EBITDA margins of 8%-10% by FY 2030. Looking ahead, we remain optimistic about the long-term prospects of the FMEG segment. Our strategic priorities remain unchanged to grow at 1.5x-2x of the industry growth while progressively enhancing profitability. Ongoing investments in distribution reach, product innovation, and brand strength will continue to drive support sustainable value creation over the coming years. Moving on to slide number 10 for an update on our EPC business. The EPC business reported revenues of INR 3,077 million during the quarter one financial year 2027, reflecting a year-on-year decline of 11%, primarily due to the timing and execution cycle of projects. Despite the lower revenue base, profitability remained healthy at INR 338 million, translating into a margin of 11%. Over the medium to long term, we continue to expect sustainable operating margins for the EPC business to remain in the high single-digit range. In closing, I would like to thank all our stakeholders for their continued trust and support. The quarter's performance reflects the strength of our diversified portfolio, disciplined execution, and strategic investments across the growth platforms. With that, we conclude our prepared remarks and will now be happy to take your questions. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star 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 comes from the line of Aniruddha Joshi with ICICI Securities. Please go ahead. Thanks for the opportunity and congrats to entire team for posting such a solid result. Two questions from my side, if you can indicate the price hikes and volume growth in this quarter on a year-on-year basis. Now considering the copper prices, how do you see the pricing working out for Q2? That is question number one. Secondly, in terms of accounting, as you alluded to earlier, that the acceptances have gone up considerably, and which is included in payable days. If you can quantify the actual creditors, the current creditors for CapEx. The third, the actual acceptances. As the acceptances are part of payables, whether the interest cost on the acceptances is booked through the expenses lines or is it included in finance cost? Just as an accounting require that clarification. Thanks. Aniruddha, thank you. I think in your two questions, you had four. We'll try and attempt answering all. Firstly on the copper price and, in fact, the volume and price growth in this quarter. I think I can give you volume growth trajectory, which is put together cable and wire domestic business grew from about low to mid single-digit volume growth. We must note that the Q1 of last year, our volume growth was very strong. We had a base of about 26% volume growth, cable and wire put together, where again, cables was high and wires was again north of 20%. On that base, this time we've recorded low to mid single-digit kind of overall cable and wire business growth. This time, like we mentioned in the earlier part of the conversation, wires have outpaced cables. On the copper price, I don't see we have any guidance on that for quarter two. We will continue to focus on business and price will, of course, be something that we can't control. Like you are aware, it's a cost-plus model, right? Whatever is the cost, we'll pass it on, and we'll continue to focus on the business, right? That is, I think, the first question. Second question, I'll just briefly address by saying that while acceptances have gone up, I think the goods are still in transit. Hence, if you look at typically the way we operate, the inventory is usually on a higher side, say around 100, 110 days, right? Using LCs, we get payable days of around, say, 80, 90 days. It's only a play of that. If you look at receivables, you must be aware our business happens 90% through channel, right? Majority of that again comes from channel finance. Our receivables are always low, but typically considering the other parts of business, including EPC, we believe our receivables are usually within 20 to 30 days. If you put together these three pieces, you will always figure that we are somewhere around, the average range we guide is 45- 50 days, but this time we were on the better side, and we ended up at 15 days in this quarter. Right. I think more details into it, we can of course take it offline. Okay. Sure. This is very helpful, and once again, congrats to the team. Thank you. Thank you, Aniruddha. Thank you. Next question comes from the line of Sonali Salgaonkar with Jefferies. Please go ahead. Thank you. Congratulations to the team for such a strong performance. My first question is a little strategic in nature. It would be nice to hear your thoughts on the upcoming data center opportunity or any opportunity in optical fibers that you see. My second question is, in terms of the exports. Now we understand that 13% decline, was it largely because of Middle East, and how do we foresee the coming quarters? Thank you so much, Sonali, for these two questions. Firstly, on the data center opportunity, I think it's a very big opportunity. We are hopeful that material translation should happen from estimates to reality. Today, I think the installed base is somewhere around 1.6 GW. We've read reports where the estimation is somewhere around 8 GW to 16 GW or 18 GW. We estimate that 1 MW translates into around INR 3.5 crore worth of cables, with 50%-60% being conventional and the balance being optical fiber. A sizable chunk of demand can come from data center. It's just a matter of timing. Definitely a INR 20,000 crore-INR 25,000 crore market is there, but that's over a period of maybe six, seven, eight years. Through our distribution channel, we have supplied majority chunk of the conventional piece in the existing installations. I think we've called out earlier publicly that in the data centers of Vodafone Idea in Mohali, Pune, and South of India, we've supplied the cables. We continue to focus on that market. It's a dedicated focus area for us. That, of course, is one such chunk of demand center which can actually explode and create another layer of demand for cable and wire put together. I think we definitely expect this to pick up in a bigger way. Like I mentioned, the opportunity could actually be from 8 GW to 16 GW -18 GW, and that too, over a period of five-eight years. We need to see how it translates into reality. On the second part, which was exports. Like you rightly mentioned, Middle East got impacted in the month of March. Certain geographies in Middle East continue to be impacted. I'm happy to state that we've seen good amount of momentum coming back in exports. Today, we have very healthy order book. The U.S., Europe, and Latin America put together, we have a very sizable order book. Happy to state that even in Q1, we could do about 20%-24% kind of a business from Middle East, which again came from countries like Oman, Saudi, and UAE put together. North America continued to, I think the contribution from North America was somewhere around 45-50% in our Q1 turnover. Of course, Europe was about 18%-20%. Broadly, we've seen we're pretty broad-based. Last year, we were happy to add 10 new geographies in our global footprint. Today, we believe that all of that is going to pay rich dividends in the time to come. Got it. Very clear. Thank you for the detailed answers, all the best to the team. Thank you, Sonali. Thank you. Next question comes from the line of Pulkit Patni with Goldman Sachs. Please go ahead. Sir, thank you for taking my question. Just one question. This is on the BharatNet projects. Given how steep a price increase have we seen in the fiber side, how do you see the profitability of these projects panning out over the next couple of years? We've seen that overall, the EPC revenue has been quite weak. Any particular reason that's impacted this revenue? Just that question. Sure. Thanks, Pulkit. Again, I think one was on BharatNet and the high fiber prices. Happy to state, I think the strength of our procurement is such that we've been able to secure the fibers for the execution period, which is next two to three years. There is an INR 4,500 crore execution piece of the contract of INR 8,000 crore overall, right? Within that, whatever is the fiber piece. Overall supply portion is around 30% of the overall value. Correct? Now for that portion, we've already secured the fiber. Hence we are technically not exposed to the high fiber prices that are happening today, and completely appreciate the fact that the fiber prices are obviously on the uptick. We've secured our fiber, hence we are not exposed and not impacted. Profitability, like you mentioned, hence we've always guided that BharatNet, which again forms part of our EPC business, the expected estimates are supposed to be high single digits. This quarter, if you believe, we've delivered EBIT of 11%, but we estimate that from a long-term perspective, it should be high single digit. Also, I think since you mentioned that EPC has taken a hit in this quarter, I would say EPC business is the nature of business wherein you shouldn't see on a two to three-month basis. These are all milestone-linked payouts. If the milestone happens, say, after a period of five months, then possibly revenue recognition will happen in second quarter and not in the first quarter. That's the only way. Otherwise, materially, if you see on a full year basis, you will not see, hopefully, a dip. Just, I think one more, you had a question on? No, those were my questions. Oh, that's it, right? Yeah. Thank you so much for answering those. Thanks. Thank you. Next question comes on the line of Akshay Gattani with UBS. Please go ahead. Hi, sir. Thank you for the opportunity and congratulations on great results. Sir, how should we look at full year volume growth? Like Q1 you highlighted a low to mid-single digit volume growth on a high base. Q3 again will have a high base. Q2 will have slightly, I would say, moderate base and then base becoming favorable in quarter four. How should we look at full year volume growth for Polycab this year? Akshay, thanks for your question. See, I think best way to look at it is look backwards. If you look at Q4, I think the industry didn't have significant volume gains. Q3 was maybe 40% for us. Similarly, quarter on quarter you will have different volumes, but I think we've always guided that we'll do 1.5x of market growth. Which is, I think, mix of both volume and value. As long as there is growth in the volumes or growth in the market, we'll definitely do better than the industry growth rate. That is the only guidance we can give. If you look back, I think like I mentioned, overall full year FY 2026, we did 18% volume growth. I think over a period of 10- 12 months is a good time to look at a trend. Two to three period, you will have only two to three dots. You will not be able to draw a trend line. I think 10- 12 months is a good period. I think over maybe two, three next quarters, you will see a trend, and you should definitely see 1.5x of market growth. Got it. Thank you. Second question, sir, on the wires growth this quarter. You highlighted wires have outperformed cables growth this quarter. Does this implies market share gain for Polycab in wire segment? How much will be the market share, if you can quantify it? Akshay, we'll have to obviously wait for other results to also get public, right? Only then we can comment on that. Typically, we do this market share analysis or exercise typically again, after 10-12 month period. Like last year, in last quarter, in fact, we updated that overall we've gained 3%-4% market share. I think quarter-on-quarter it may or may not be true because this should not be cyclical. It should be at least structural gains, which can again appear only after 8-10 months and of course after peers have also declared the results. Got it. Thank you so much. Thank you. Next question comes from the line of Ravi Swaminathan with Avendus Spark. Please go ahead. Hi, sir. Congrats on a good set of numbers, and thanks for taking my question. I would like to double-click on the volume growth opportunity from the cable segment. How was the performance from transmission side this time, and how do you see the visibility, especially from solar side? Is there a possibility of further growth that can be there from that particular sub-segment? Similarly, with respect to demand from infra and industrial, how it was in the first quarter, and how is it likely to pan out? Are we seeing a recovery in demand from both infra and industrial side? Thanks, Ravi. Thanks for that question. I think I'll just reiterate. Basically, 90% of our business happens through channel. Majority of the times we don't get to know who's the end customer. Okay. But of course, we have some estimates and assessments, where I can give you some color. Not every quarter you will have a particular sector contributing. But overall if you see, thanks to being the largest player in the cable and wire industry, our sales are very broad-based. It will be across the spectrum of demand. I'll just cite a few numbers, Ravi, and thanks for pointing this out that what is the traction in T&D space. See, overall generation side, I'm sure we are all happy with the developments that are happening on renewable generation. I think 55 GW, 56 GW got added in the last financial year. I think under the national generation adequacy plan of government, I think by FY 2036, we have to reach somewhere around 1,120 GW odd, where 70% of that has to come from renewable. Today, solar is maybe around 150 GW. It has to go up to almost +500 GW. Substantial generation, maybe I think north of 50 GW, 60 GW every year will continue. All of that will of course translate into significant cable demand. Second piece is the transmission and distribution. If you look at period of FY 2020 to FY 2025, the average transmission line capacity addition was around 15,000 circuit kilometer. Now that has to substantially go up to about north of 20,000. Estimates are 20,000 or 21,000 circuit kilometer should be the average for period of FY 2026 to FY 2030. Now this year again, Central Electricity Authority, CEA, has predicted that at least it will be 17,000 circuit kilometer in this financial year. Okay, all of these are very good positive signs and happy to state that 2,000 circuit kilometer has already been executed in April and May months. We don't have number for June, but two months has already seen 2,000 circuit kilometer getting added. It's a very real execution which is visible. Even the MNRE budget for last year, they were able to pump in INR 24,000 crore. Against their budget estimate, the actual spend was about +90%. All of these are very healthy signs. If you look at the capacity addition plans of the transformer companies, they are pretty robust. If you look at CG Power, ABB, Siemens, Hitachi, they have very sizable capacity addition plans. All of them are targeting the huge T&D pickup that is going to come. Of course, AI and data centers are further going to propel this demand. We are very positive, Ravi. I think that's going to continue. On the private side, I think you mentioned, thanks to again our distribution reach, we are able to aggregate demand at Tier 2, Tier 3, Tier 4 markets. Our distributors are able to cater to that demand. We've been fortunate to be able to cater to sizable private demand. On a broad-based basis, we expect that demand to kick in even strongly now, that government budget is strongly focusing on logistics, railway corridors and stuff like that, which will further create the right environment for private CapEx to pull in. We have seen that the BSE 500 companies, ex BFSI, we've seen that they have committed somewhere around INR 11.6 lakh crore for next 12-18 months in capacity enhancements and new CapEx. Majority of them are going into industries like metals, semiconductors, manufacturing, and even renewable. If all of that comes true, I think majority of these will translate into very strong demand for cable and wire. We are yet to fully see the potential from defense, EV charging infrastructure, data centers, which can create another layer of demand altogether. I think from demand side, we are reasonably assured. I think India is at a very sweet spot, and not just for this year, I think, Ravi, for the next two-three years, we are very positive about the demand. Thanks a lot for this detailed answer. Thank you. Next question comes from the line of Achal Lohade with Nuvama Institutional Equities. Please go ahead. Mr. Lohade, please go ahead with the question. Mr. Lohade, please unmute yourself and go ahead with the question. Since there's no reply from the line, I'm assuming [crosstalk] Am I audible? Yes, please go ahead. Sorry. two questions. First, in terms of the volume growth, if you could call out base quarter number for cables and wires separately. You mentioned that wires has grown faster than cables in this quarter. Is there any element of channel stocking which is kind of helped in this quarter end towards June month? That's my first question. Achal, maybe let me address the first question, which is the volume split between cable and wire. Wire is, like I mentioned, outpaced cables. Wires was high single digit growth. Again, at the cost of reiteration, I'm repeating that our volume base of last year Q1 was very high. Cables was almost north of 25%. Wires was north of 20%. On that base, our wires recorded high single digit. Cables was low to mid single digit. Got it. In terms of channel stocking, how's the channel stocking at this stage for wires and also cables. Achal, very good way to look at it is the movement in copper and aluminum, right? If you see in June specifically, I think it has plummeted. Both aluminum has gone down by maybe 18%-20%, from point to point. 1st of June to 30th of June. If you look at even copper has substantially come down. It had almost gone to almost INR 14,000, and then it came down to INR 13,100, INR 13,200, right? I think as soon as price tends to go up, the stocking happens. If price comes down, destocking happens. That's the usual trend in the channel and which is consistent anytime. Hence the answer to your specific question is that the stocking did not happen to the expectation. Of course, there is some stocking that happens because of a quarter end or a month end, compared to the regular estimate of a typical quarter, it was definitely impacted by the plummeting of raw material prices. Fair to say that the channel stocking is suboptimal? Would that be a fair way to look at it? For us, again, here suboptimal is very difficult for me to place it on record. Point being that in our case, typically a healthy stocking is say maybe about 20-25 days, right? That may not be true for other peers because we are able to replenish them faster. Yes, but we are expecting. Below expectation is a better way to put it. Fair point. Secondly, in terms of the margins, now if I look at the mix in cable and wire, mix will be in favor of wires in this quarter. Exactly. Will the margin improvement go in QoQ? I think ideally the margin should have seen further improvement. I was just curious. Is there any one-off or any cost escalation, etc., which has kind of impacted the QoQ improvement in the margin? No. Achal, I'll just put it this way, that it's a factor of four things, typically in case of us, for defining the margins. One is the export contribution in the overall business. Right? This quarter again, at the effect of West Asia gradually phasing out or at least, I don't know, at least till last week, the effect was reducing or going in the right direction of resolution. This quarter, of course, had an impact on export. Export didn't contribute meaningfully. Second is the split between wires and cables. Wires was obviously higher, that, of course, uplifted or supported our margins. Second is the channel versus institutional. Channel was higher, and hence also that supported the margins. The fourth again being the operating leverage. Exports contribution in the operating leverage possibly didn't go in the right way. All of this, if comes together, then definitely we are able to at least support our margins in a good way. At the same time also, Achal, I would put it that, as based on our long term or medium to long term guidance of 11%-13% under Project Spring, we definitely want to operate there, and we believe that this is again a healthy range. Of course, all four things coming together will play a role in our defining the margins. Perfect. Just one last question. In terms of the U.S. export, if you could talk about the distribution revamp, where are we, and what kind of pickup are we seeing? And what was the growth in U.S. exports on a YoY basis? let me put it this way. This quarter, the mix of exports, U.S. was again 50%. Okay? Overall, we've seen a dip in exports overall. North America continues to be a large contributor to our overall exports. Second thing is, on the setup, I think setup is more or less complete. We had appointed market reps, and that process is complete. I think we've sown the right seeds. There's a very healthy order book, specifically from U.S., and there's a very healthy inquiry bank as well. These two put together gives us enough confidence that in the coming quarters in this financial year, we should see sizable pickup in U.S. export, and overall exports also will definitely show a good uptick. Got it. Thank you, and fall back in the queue. Thank you so much. Thank you, Achal. Thank you. A reminder to all participants, please restrict yourself to two questions. Next question comes from the line of Ashish Kanodia, Citi. Please go ahead. We can't hear you, [audio distortion] Yes. I can hear you. My first question is on the pricing side and stocking. One, was there a price cut which was happened during the first 15 days of July? Post that, did you saw a slightly better stocking given maybe towards the June end, channel would have delayed some bit of a stocking in anticipation of the price cut? Yes. I think we've taken one price correction or rather, price revision in the first fortnight, and we will see the translation into volumes gradually. Can you quantify, please, what was the price revision? I think about 3%-4%. Sure. Second question is on the FMEG side. On the margin side, we have seen a very strong outcome. One, is it purely operating leverage led or on the gross margin side also you have seen some improvement? Like I mentioned on the margins, again, there are four factors which I just mentioned to Achal also. Wires obviously is a higher margin business for us. Shashank, my question was on FMEG business. Okay. Sure. On FMEG, there are two or three big things which are kicking for us. One is the operating leverage. Okay? Thanks to our low base, we have been able to deliver higher growth, and we've been able to gain substantial benefits from operating leverage. That is one big kicker. Second is the premium mix has gone up significantly. In this quarter, we've seen premium mix going up to almost 25% in the overall FMEG portfolio. In case of fans, it has gone up to almost 33%. In case of lighting luminary, it has gone up to 38%. All of this put together, placing the right product in the right market, and having strategies for respective regions and not planning their strategy for single product category. All of this and very solid on-ground execution is resulting in a very solid top-line growth, which is of course, then supporting the operating leverage and the premium product mix has helped uplift the EBITDA margins in FMEG. Sure. Just last bit on the EPC side, on a full year basis, because quarter to quarter, the execution could vary. On a full year basis, what kind of revenue or execution can we expect from RDSS and BharatNet? Ashish, like you remember, BharatNet, the overall order size is around INR 8,000 crore. Out of that, INR 4,500 crore is the execution piece for new infrastructure, which is over a period of three years. We had started the execution sometime in last quarter in March. We can safely say maybe one third of that should translate into revenue, maybe INR 800 crore, INR 1,000 crore may come from BharatNet alone. RDSS, we had overall order book when we started the execution was around INR 3,250 crore. Today, I think we've recognized some of it. Overall, put together BharatNet and RDSS, the order book stands at around INR 10,900 crore. Again, in case of RDSS, since the execution piece is around for three years, we should expect about INR 800 crore odd in the translating into this year. Sure, Shashank. Super helpful, all the best. Thank you, Ashish. Thank you. A reminder to all the participants, please restrict yourself to two questions. Next question comes from the line of Sameer Gupta with IIFL Capital. Please go ahead. Hi, good evening. Congrats on a good set of numbers, and thanks for taking my question. Sir, first question is on the FMEG piece, taking it from Ashish. Now, solar here is a big driver. Any color on the scale of this segment and sustainability of this growth? I remember one year back, this was a third largest category within FMEG, and now it is the largest, and it is still growing at 2x. Just trying to understand what kind of visibility we have currently on this momentum in solar. Thanks, Sameer. I think, it's very much related to the government policies, the PM Surya Ghar Yojana and the state incentives and central incentives for rooftop solar. I think this solar inverter business for us is also driving the same momentum. We definitely see a strong trajectory of growth in the next two to three years in the same vein as the country is witnessing. Any color on what contribution it would be within FMEG? Will it be like 30% now or any color you could give there? Sameer, I'm sure you are aware, we don't usually, by design, give a split of the FMEG basket. I'm happy to state that, like you have mentioned, it's the single largest contributor, but it is still less than 50%, right? I mean, and I can tell you the descending order of the top line of the respective categories. It is solar, followed by fans, followed by pipes and conduits in this quarter, and then you have switch gears and switches. Fans and lighting and luminaries you are clubbing together, is it? No. I mentioned a solar inverter followed by fans. You have pipes and conduits, then lights, switch gears and switches. Okay. Lights I missed. Sorry. Fair, sir. Thank you. On the FMEG x of solar, if you could just help me with the growth in terms of volume and price hikes for this quarter, it'd be helpful. Apologies, Sameer. By design, we don't give a split of the FMEG respective portfolios. I'm happy to state, and I think I covered that in my earlier commentary, is that all six categories have delivered stronger growth than the market, than the industry growth for the respective category. Again, that has two, three elements, like I mentioned, which is premium mix, which has helped not just top line, but also has helped the bottom line. The segmental play with respect to right product in the right market. We've done same counters where retail wires are getting sold, we are driving switches and switch gears along with that. A lot of these things are working out, and all of them are delivering, thanks to lower base, a very high growth for all six categories. Got it, sir. The idea for asking this question was that typically in consumer durables this quarter, typically, there is a element of a low base because there was early monsoon last year, and it's been a delayed summer this year or a delayed monsoon this year. Plus, there have been some bit of price hikes into the channel, both in 4Q and 1Q. Just trying to gauge the sustainability of this growth. That was the idea of asking the question. Any granular information here would be helpful, even if you don't want to share the numbers. No, sure, Sameer. I appreciate your question. Like you rightly mentioned, I think the industry like fans, coolers, ACs, although we are not into ACs and coolers, but I'm saying all of this industry has benefited from the extended summer, and we too have benefited. Like you rightly mentioned, in case of fans, say, for example, the new products with the new BEE norms when they launched in the market, of course, there was a 4.5% correction. That's not only for us, but for everybody. Similarly for other products, I think. Since you come up with a new product every time, so the prices may not tally with the industry per se. Hence, we don't usually give a split, and I think you'll appreciate that. No worry, sir. Thank you. I'll take up follow-ups later. Thank you so much. Thank you. Next question comes from the line of Naushad Chaudhary with Aditya Birla Mutual Fund. Please go ahead. Hi. Thank you for the opportunity. Clarification on the data center and T&D opportunity. As you mentioned, 1 MW translate to INR 3.5 crore of wire and cable demand. INR 3,500 crore on 1 GW, and assuming, in a best case, 1 GW capacity comes in annually. It would generate INR 3,500 crore of wire and cable demand. Obviously, there will be some base last year as well. With INR 3,500 crore of demand, how can it have a significant percentage growth impact on a TAM of INR 100,000 crore? Same goes to T&D also. Last year, 12,000-13,000 circuit kilometer was the number, and future would be 13,000-15,000. Percentage-wise, it is not going up much. These two, how can it have a significant impact on the industry growth percentage? Just wanted to understand if I'm reading it correctly or not. Hi, Naushad. Thanks for that question. I agree on the first one and disagree on the second one. First one, which was data center. I think I kind of agree with you. I think if the addition only happens 1 GW, then obviously the translation to cable and wire requirement of the market will not be substantial, and I'm completely agreeing with you, right? Unfortunately, today we are sitting at a base of 1.6 GW. That has happened over a period of five, seven years. I think 2019 or 2020, maybe some capacity started setting up, and it has taken some time to reach 1.6 GW, right? In the initial part of my commentary also, I mentioned that when somebody asked me about data centers. We see a opportunity of 8 GW- 18 GW. We don't know how long it will take to get there, right? Of course, it's a factor, right? If 5 GW comes in tomorrow, then obviously the sizable portion will come of demand. I'm completely agreeing with you on that. It's your guess versus mine. I'm yet to see that translation happening on ground with respect to data center capacity coming up. At the same time, let me also put forward that we have a decent order book. There are some establishments which are already about to start. They may not be at a very sizable number to translate into 1 GW in a year, but definitely there is some movement happening and there is a good trajectory. At the same time, giving a bullish number on that is something that is outside my purview. On the second piece of T&D, there is where I beg to differ. We've seen the average of last five years, like I mentioned, was around 15,000 circuit kilometer, 14,000-15,000. Even last year's number, maybe you and I both can recheck. I think it's somewhere closer to 14,000 and 15,000 circuit kilometer. The trajectory for the next five years, as per CEA estimate, is somewhere around 20,000-21,000 circuit kilometer. This year itself, in FY 2027, they are expecting around 17,000 circuit kilometer capacity addition. Definitely, there is a disconnect, and this is a factual number, so we can all check. Secondly, 2,000 circuit kilometer has already been added in the period of April and May put together only in this financial year. There is a good amount of trajectory. Also, the conversion, the execution has been very good. If you look at the government CapEx, some portion, a substantial portion, is going into power T&D. A good amount of conversion execution is happening. Hence, there I differ. I think T&D is going to pick up in a bigger way, and the translation to cable and wire requirements, specifically in case of T&D, is higher. INR 100 spent on T&D translates to a cable requirement of about 15%. Which is very high. We definitely estimate that the next five year is going to be very significant, monumental for T&D and both GT&D, generation, transmission, and distribution put together. See, last five years even, with a target of 23,000 average, the achievement is 14,000. Now next five years target of roughly on an average, 20,000. In that case, if we achieve on a base of 15,000 annually, that gives some wariness in terms of percentage growth. Is there any other data point which you can give us to have some confidence on incremental growth from T&D for the sector should come in? Naushad, we are only going by the published numbers of Central Electricity Authority. I think we are very confident. Also one more parallel, another lead indicator that you can refer is the capacity expansion plans of the transformer companies. Also, if you look at their ratio of order book versus revenue, that has gone up to almost 2.5x. Order book is 2.5x of their revenue. Which means there is substantial development happening on T&D front. At the same time, even if the conversion execution is, say, X percentage, if it is 70%, 80%, 90%, like I mentioned, the translation to cable and wire has been very high in case of T&D. Generation has been the major kicker in the last two to three years, where a substantial amount of renewable capacity has gotten added. To that momentum is going to continue and T&D is going to pick up the chain now. That's my take, and I'm happy to agree and disagree on certain aspects. Got it. Thank you for the clarification, and all the best. Thank you. Thanks, Naushad. Thank you. Next question comes from the line of Keyur Pandya with ICICI Prudential Life Insurance Company Limited. Please go ahead. Thank you. Two questions. First, on the volume growth side. You have guided for 1.5x growth versus industry growth. I'm just saying from the perspective of absolute growth number, do you worry about lower growth for last two or three quarters in terms of volume? Is it just because of base, or you see there is a deceleration in the momentum? And just, building on the previous discussion, all the data center or transmission or T&D CapEx, it can delay by one or two years, and that can impact our volume growth. I'm not denying Any risk to this T&D CapEx, but any delay can at least impact our growth rate. Are you seeing any deceleration? How do you dissect these lower growth numbers? That is first question. Second is on export side. At least there better environment in the Middle East and some normalization of trade routes, plus your rejig in the distribution. How do you see or when do you see export growth picking up, or at least for FY 2027? Yes. These are the two questions. Sure. Thanks, Keyur. Firstly, on the volume growth. I'll just narrate the same story, which is, say Q4 of last year, the industry volume growths were pretty moderate. Right? Q3, we outperformed everybody, and we registered 40% volume growth. Q1, Q2 had another story, respectively. If you look at full year basis, our volume growth was 18%. Okay? This year, again, Q1, again, at the back of West Asia crisis, which appears to have passed the peak, and we are going in the right direction. Again, last week, again, it's resurfaced between Iran and U.S. All of that will continue to play. Three months may or may not be a good indicator. Like you see, June, the prices of copper and aluminum shooting down. Destocking continues to happen. In our assessment, we've seen the CAGR of our volume growth has always been double-digits in the last five to seven years. Quarter-on-quarter may or may not be a good indicator. You may have to look at a longer time period of at least 10- 12 months to assess that. Right. We are very confident on the demand side, and that's true for, I think, all cable and wire operators. That's also true that is why so much competition is jumping into this sector because they see a significant potential, right? That's the only good thing to take from that. Definitely, there is volume growth which is going to come. We've guided that we'll continue to grow at 1.5x of market growth, and we still believe in that, and we've delivered that in the last 1.5 years, ever since we've made that commitment. We believe that will continue to happen till FY 2030. There are significant pockets of demand. Power, of course, we believe is going to drive the demand momentum, which has happened in the previous years as well. More so now it will happen with greater push towards self-sufficiency and energy security. Second is the manufacturing and private sector, which we believe is now going to come up in a bigger way. Mobility, again, wherein 10%-12% demand for cables comes from mobility, where again, we see railways, airports, seaports, roadways, highways. Annually, we've reached about 10,000 km of road construction, highway construction every year. That's a sizable number. 800 new Vande Bharats are expected by 2030. I think all of these will substantially add to the demand. Further, I think data center, defense, EV charging infrastructure, these are somewhere around 4%, 5% today, but they may explode and create another layer of demand. Demand is very much there. We believe that we'll be at the forefront of taking the lion's share of the demand. On a full year basis, we should be able to live up to 1.5x of market growth and maybe even today. On the volume part, I think I broadly addressed. I think we are not too concerned or worried about that at all. Right? Secondly, if you look at exports, specifically U.S., definitely, I think the momentum is very much back. The Middle East is also somewhat we've started catering to Oman, Saudi, and UAE. We see that we've sown the right seeds. We've entered 10 new geographies in the last year. Today, our footprint is around in 94 countries, and we will definitely see a higher traction. Since export is, India as a country is very under-indexed. We believe that India has immense potential, and more so for Polycab because we have the right approvals and right products and right availability guarantee. We are sure that we'll be able to deliver higher growth, and there is no specific target because it's an uncapped growth opportunity. We have given our guidance of going north of 10% of our overall top line by 2030. That's one indication that our exports growth should be higher than domestic. We believe if there are no more trade barriers and it's a level playing field, today, we are, I think, very well poised to leverage on that growth, and that should reflect in the numbers, I think, in the coming quarters. Understood. Just last one question. On the FMEG side, you highlighted all the reasons for better margin. This is as high as your, say, FY 2030 guidance. Should this is one-off or because of the seasonality or some other reasons or we should assume that you have reached your guidance earlier than what you had thought? Keyur, again, our guidance we've given clearly till FY 2030. Quarter-on-quarter based on seasonality. Typically, this industry is about seasonality, right? Fans will have a seasonality for sure. Lights, of course, will have a seasonality. All of these definitely have seasonality. On top-line basis, like we've guided, whatever is the market growth, we'll deliver 1.5x-2x of that growth. Of course, the ambition is that on a full year basis, we should be able to reach 8%-10% of EBITDA margins on FMEG. Currently, what you can read is a very, very good trajectory if you look at last five quarters and today. We've come by leaps and bounds in the right direction, both on top line and bottom line front. Top line growth of 71% year-on-year is a phenomenal growth. Even EBIT of 8% in FMEG today with increasing focus on A&P spends is again a very, very commendable story. Sure. Thanks a lot. All the very best. Thank you, Keyur. Thank you. Ladies and gentlemen, that was the last question for today. We have reached the end of question and answer session. I now hand the conference over to Mr. Niyant Maru for closing comments. Thank you all the investors for taking part in this call. We appreciate your questions and hope we have answered to your desire. Hope to see you again in the next quarter. Thank you. Thank you. On behalf of Polycab India Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.