Gentlemen, the conference will begin shortly. Please stay connected. Ladies and gentlemen, the conference will begin shortly. Please stay connected. Ladies and gentlemen, good day and welcome to the R R Kabel Limited Q1 FY 2027 conference call hosted by MUFG. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Chirag Bhatiya from MUFG. Thank you, and over to you, sir. Thank you, Sumeet. Good afternoon, everyone, and I extend a warm welcome to all the participants on the Q1 FY 2027 earnings conference call of R R Kabel Limited. Today on this call, we have Mr. Rajesh Kabra, Joint Managing Director, Mr. Rajesh Jain, Chief Operating Officer, and Mr. Jigar Mehta, Chief Financial Officer. Before we begin this call, I would like to give you a short disclaimer. This call may contain some forward-looking statements, which are completely based upon our beliefs, opinion, and expectation as of today. These statements are not the guarantee of the future performance and involve unforeseen risk and uncertainty. With this, I hand over the call to Mr. Rajesh Kabra. Over to you, sir. Good afternoon, everyone, and thank you for joining us for R R Kabel's Q1 FY 2027 earnings call. I have with me Mr. Rajesh Jain, our Chief Operating Officer, and Mr. Jigar Mehta, our Chief Financial Officer. Let me begin with the broader business environment. The quarter continued to see volatility in metal prices and foreign exchange, along with uncertainty across global markets. At the same time, the demand remained supportive. We continued to see healthy activity across infrastructure, construction, industrial projects, and power-related applications. Against this backdrop, I am pleased to share that we have started FY 2027 on a strong note. During the quarter, we delivered our highest-ever quarterly revenue, EBITDA, and profit after tax. Our wires and cables business continued to be the main driver of growth. The growth was not limited to one market. We saw growth in the domestic business as well as exports, even though we have a high exposure to the Middle East market. The disruption in the Middle East was partially offset by other export markets. Further, we also saw shipment normalization and recovery for Middle East market in May and June. However, supply chain related issues still remain, but we are confident of overcoming those challenges. Overall, wires and cable volumes grew by 17% year-over-year with similar growth seen both in domestic and export markets. Cables grew significantly faster with more than 25% volume growth, while volume growth in wires was approximately 12%. We continue to work on strengthening product availability, expanding our distribution reach, and deepening our engagement with dealers and distributors. On the B2B side, our focus remains on building capabilities in project, industrial, and power cables. We believe this will become an increasingly important part of our growth over the next few years. What is also encouraging is our progress in our FMEG business. The segment recorded a healthy revenue growth and reached breakeven position during the quarter compared with losses in the earlier periods. We have been working towards this for some time. This is an encouraging development for us. FMEG revenue grew by approximately 28% year on year. The quarter saw good growth in lights, appliances, and switches. While the fans business benefited from the improved realizations and better premium product mix. We will continue to focus on premiumization, selected product launches, distribution expansion, and tighter cost control. The quarter's performance reflects the strength of our team, distribution network, manufacturing capabilities, and longstanding customer relationships. It also shows the operating discipline that we have been building across the organization. Our progress remains aligned with Project RISE announced last year. The first quarter has given us a good start. We will, however, continue to look at the business on a full year and long-term basis. Our long-term priorities continue to be the same. We want to grow ahead of the industry in wires and cables, improve our position in the cable and B2B businesses, and build FMEG into a consistently profitable business. We will remain focused on execution, customer engagement, and building the business for sustainable long-term growth. I will now hand over the call to Mr. Rajesh Jain to take you through the financial and operational performance in more detail. Thank you. Thank you, Rajesh, and good afternoon, everyone. Let me start with the overall performance for the quarter. Revenue from operations stood at INR 3,168 crore, representing growth of around 54% over Q1 of last year. Operating EBITDA stood at INR 285 crore, almost double the INR 143 crore recorded in the corresponding quarter last year. The operating EBITDA margin improved to 9% compared to 7% in Q1 FY 2026. Profit after tax stood at INR 205 crore, compared with INR 90 crore last year. The quarter also included an exceptional item of approximately INR 14 crore relating to reversal of the provision for the statutory impact of the new labor codes. Coming to the segment performance, wire and cable revenue stood at INR 2,880 crore, growing at approximately 57% year on year on the back of impressive volume growth, strong execution, and favorable industry dynamics. Segment profit increased to approximately INR 285 crore from INR 139 crore in Q1 FY 2026. The segment profit margin improved to 9.9%, compared with 7.6% in the corresponding quarter last year. Profitability improved due to improved product mix, disciplined commodity management, and operating efficiency. In the FMEG business, revenue stood approximately INR 288 crore, growing by 28% year on year, supported by continued demand for premium and new products across key categories, along with ongoing distribution expansion. The segment reached an operational breakeven position compared with a loss of approximately INR 7 crore in Q1 FY 2026, and a loss of approximately INR 9 crore in Q4 FY 2026, making a significant milestone in the FMEG business transformation, driven by premium products and operating leverage. Lights, appliances, and switches recorded healthy growth. In fans, volumes were broadly flat year on year, but revenue increased due to higher realization and a better product mix. Turning to working capital, net working capital days remained broadly stable at 50 days. Our capacity expansion program is also progressing as planned, with new capacities expected to be added during the current quarter in Silvassa. Looking ahead, we remain positive about the long-term demand outlook. Infrastructure development, housing, industrial investment, electrification, and the shift towards organized and compliant products continue to support the industry. At the same time, we will remain watchful of metal prices, foreign exchange movement, inventory levels, and working capital requirements. Our focus will be on maintaining healthy volume growth, protecting margins through timely pricing and procurement decisions, improving the product mix, and sustaining the progress made in FMEG. With this, I now request to open the floor for the question-and-answer session. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchtone 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 Dhruv Jain from Ambit Capital. Please go ahead. Thank you so much team for the opportunity, and congratulations on very good numbers. My first question is on cables. In the last three or four quarters, we've seen that cables growth has improved substantially. Just wanted to understand, A, where is this market share gains that you're seeing coming from? Is it more distribution or is it more B2B? B, where are we in terms of the utilization levels here incrementally, and how should we look at margins improving from here in the cable side? That's my first question. Thanks, Dhruv. When we talk about growth in our cable segment, as we explained in our earlier strategy also that our focus will be grow in B2B segment, more focusing on cable side of the business. Now when we are at execution phase, we see good growth coming from cable side. Of course, margins, as you can see, it's due to scale and improving product mix, and we are sure to maintain this kind of approach in coming quarters. Sure. Sir, just on that, I think the last quarter you had mentioned that the full year FY 2028 margin guidance for wire and cable segment was about 10.5%. Now that you are close to 10% in this quarter itself, do you think that you have to upgrade your guidance, or you still maintain that? We'll remain there because while we endeavor to touch double-digit margins for the year, but since it is early in the year, we continue to maintain our overall margin guidance of 10.5% by FY 2028. Got it, sir. Thank you so much and all the best. I'll call back. Thank you. The next question is from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead. Yeah. Good evening team. Thank you for the opportunity. Congratulations for great execution. Just two or three questions, if I may ask. First, on the industry growth, what is your sense? I know it is very hard to call out for a quarter, but still, in terms of the growth for wires and cables, both, if you could call out, what would have been the industry growth for the quarter in your best assessment? It may be tough to call out at industry level, but I think it may be between 10%-12% at most. Okay. Understood. The second is, in terms of the export, like Rajesh, you called out that exports grew at almost similar pace compared to domestic, despite the Middle East challenges. If you could talk a little bit more about this export aspect in terms of the key market, how are you seeing growth? What kind of mix are we seeing there? Are we seeing improvement in the cables pick up as well? As you are aware, we are a geographically diversified company, and so there were disturbance from Middle East. Still the overall performance is based on other countries and other geographies we are able to have higher growth or at par growth with our domestic market also. Particularly, since now we are changing or focusing on changing product mix in export market, more focusing on cable side, where we see good demand also. This is helping us to achieve higher growths in export markets also, in spite of so many global disturbances. Any particular market you want to call out, sir, which has done very well, and which is expected to do better? Secondly, in terms of approvals for the cables piece, where are we in that journey? Are we more than midway through or it's still the beginning for us? Still, I will say it's just opening of our larger journey, and we are in way to execution of overall global presence also and in many new area geography and new product also we are in the process to getting approvals. From new geography also we are getting some good gains in export markets. Got it. Thank you. I have more questions, but I'll call back in the queue, sir. Thank you so much. Thank you. The next question is from the line of Vidit Trivedi from Asian Market Securities. Please go ahead. Hi, sir. Thank you for the opportunity and congratulations on pretty strong set of numbers. Sir, last quarter you've mentioned data center as a medium-term growth driver. Just wanted to check, have you started receiving repeat orders from this segment or will it be fair to say that the opportunity is still largely at the bidding stage? The data center, still it is more on announcement phase rather than execution and of course we have started getting a few orders and it is a continuous process. We will keep adding new customers in data center and there we are supplying conventional cables which is regular part of our product category. What's the share of the overall data center cables in the top line? It will be very less. To be very frank, wire and cable industry is large, very big and data center is one of the areas where it applies. Got it, sir. Sir, additionally on the exports front, with the rising investment in power infra and data center in the U.S., how do you view the opportunity there and what approvals or investments are required to meaningfully scale your exports business? Of course, U.S. is very big opportunity for Indian markets and for us also. Already we have few approvals. We are in process to onboarding few customers also. As you know, still things are not clear on tariff fronts and still people are not aware how these things will process. Definitely this will be one of the very big opportunities for us in future. Got it. If I may squeeze just one more question pertaining to the FMEG segment. Sir, which FMEG categories are witnessing the strongest traction and if you could just call out the premium mix in all the categories. We have seen very good growth in lights, appliances and switches. As already informed that in fans we had flattish type of volume growth. At the same time, we will improve our realization and better premium product mix. Almost 25% of our revenues are coming from premium product side. Got it, sir. That's helpful. Thanks a lot. All the best. Thank you. The next question is from the line of Umang Mehta from Kotak Securities. Please go ahead. Hi. Thanks for the opportunity, and congrats on a good quarter. My first question was on margin. If we look at the YoY expansion, I understand the base was slightly low. Is it possible to split the expansion into the buckets of mix leverage and advantageous gains? I just wanted to kind of understand how much is mix contributing to margin expansion. Overall, if you see, the biggest contributor is scale. Because of scale benefits, we were able to improve our margin apart from better cost absorption. We are also taking many other initiatives to improve our margin. This is a result of a combination of all these efforts and product mix and scale benefits. Sure, sir. Second question is on pricing growth. This 40% odd pricing growth, which we've seen in one Q, if spot prices sustain, should we expect pricing growth to improve further in second quarter, or should it be more or less stable at current levels? If I compare with Q2 prices of last quarter, if we consider current prices to be stable in current quarter, it may reflect around about 30% in terms of pricing or the rate fluctuation or rate hike in LME prices of raw material. Got it. Just one last one was on channel stock. There was some correction in commodity prices towards quarter end. Did we see any kind of stocking, destocking impact, or would you say that your channel inventory is more or less normal as of quarter end? When we see on a very short span of time, you may say there are some reflections of stocking or destocking, normally what we believe, this is a area which is like wire and cable is consumed throughout the year or in every sector. There may be some impact in Q end of this last quarter also. I hope in longer term, we have to see business as usual in longer term timeframe. Got it. Just to clarify, you mean positive impact as of quarter end or negative impact on volumes? If I consider only last part of Q2, then there was negative impact in volume growth. Understood. Very helpful. Thank you so much, sir, and all the best. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Natasha Jain from PhillipCapital. Please go ahead. Thank you for the opportunity, sir, and congratulations on a great execution. My first question was, could you give us some color in terms of the domestic expansion? We understand West is your strongest market, how has expansion to, say, the eastern northern part been for you? Any particular color which domains in India is doing better for you at this moment? By large, I see we are making good progress even in south part of the country also, apart from already west and north where we are doing fairly good. East, of course, still we have not done that much kind of growth. In south, we are doing better than previous times. Sir, what about North India for you? Could you also give us some color and quantification in terms of the contribution geography-wise? I do not have exact breakup, but North and West contribute almost 65% in our domestic revenues. Understood. Sir, second question is in terms of working capital. Is there any sign of stress in the trade in terms of payments? No, we have not seen any stress in working capital. As you have seen in our receivables, we have done fairly well, and our days have reduced by three days in this quarter. Great. All right. Thank you so much, sir, and all the very best. Thank you. The next question is from the line of Nikhil Purohit from Fident Asset Management. Please go ahead. Hi. Thanks for the opportunity, and congrats on a very strong set. I have two questions. I joined the call a bit late, so I'm sorry if these questions have been answered. Sir, firstly, we had mentioned that exports would be impacted in quarter one. In the last quarter we mentioned that. Can you throw some more light here, the kind of growth that we saw, how were the margins here, and also what did the geographic mix look like? Though in earlier days of Q1, we were expecting there may be some disturbance. Thankfully, we were able to achieve the similar growth in this quarter, what we achieved in domestic also. It's overall like almost 57% growth over previous year. We were able to achieve it through other geographies in this quarter. Though there was Middle East disturbance in initial part of this quarter, but it was offset by other export markets. Now we have also seen shipment normalization and recovery from Middle East market. That is visible in this quarter as well, right? The normalization. Yeah. Okay. Sir, secondly, generally H2 is stronger than H1 in the wire and cable industry. Do we expect that trend to continue for this year also after seeing such strong number in quarter one? Normally, historically, we have always seen H2 is always better than H1. We expect a similar thing in this year also. Got it. Thank you. Thank you. The next question is from the line of Sandesh Shetty from HSBC. Please go ahead. Am I audible? Yes. Yes. Hello. Good afternoon, team. Thank you and congratulations on a very great set of numbers. Sir, my first question is on project execution, especially in Power T&D. We have seen some disturbances in execution due to Middle East crisis. Are you seeing improvement there now that things have subsided a bit? Are you seeing demand inquiry better there in that segment? Middle East, as I said in last question also, that now it is becoming normal, and we are back to normal situation kind of things. We are seeing recovery from Middle East markets. I think that now we are at normal levels in this quarter. Okay. Sir, there has been a significant rise in other income. Is there a one-off in that or is it like a normal run rate now? I will not say it is normal run rate, but since we have seen there was like positive or rather dollar was inserted in this quarter and since we are export-heavy company, so we have seen good impact, but it is part of our business from there itself. Okay. Thank you, sir. Thank you. Thank you. The next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead. Hi, team. Good evening. Thank you for the opportunity. Sir, two questions. Firstly, on the CapEx side, you said Silvassa starts in the current quarter. I just wanted to understand, if you could just elaborate a bit on what capacities are going to come on stream over the next 12 months and what are the products we are talking about. Yes. In this quarter, we are expecting new capacities to be added in Silvassa, which will be on wire side of our business. At the same time, in this year, we'll add a few capacities at Waghodia also, which will be highly focused on cable side of the business. Overall, our CapEx is planned in such a way that we'll be able to meet our projected growth or volumetric targets, or what we have set at the beginning of the year. This will be well-balanced among capacity addition and expected growth in my revenues or sales. Got it, sir. Sir, could you highlight some new product development in terms of pipeline which will roll out over the next 12 months from the new capacity? Broadly, it will be like in power cable side where we keep adding few capacities, at the same time, we will focus on new product or rather new industries also where we can have a more share of the business, like in maybe in a specialized kind of cable or within power cable also till now we are like in LV cable more and HV cable side still our presence is low, we'll keep increasing our presence in HV cable side of the market. Got it, sir. Last question was on FMEG. If you could share your thoughts on, how do you think about in-house manufacturing, what are the products right now we are making in-house, and incremental thoughts on how do you look at manufacturing for FMEG overall? If you see our current breakup, almost one-third we are doing in-house and two-third is out. We are doing outsourcing, in which like ceiling fan and switchgear category we are having in-house production. By large, we'll maintain this kind of situation only because our focus will be more to increase market presence through better R&D and brand presence. Maybe manufacturing scenario remain as it is, what we have currently. The lighting and appliances are all outsourced. Is that correct? Few part of lighting, like commercial lighting, we are doing in-house also. Largely, appliances and lighting is outsourced. Okay. Appliances include what products, sir? Like in terms of meaningful revenue. Appliances are contributing almost 10%-11% in our overall FMEG revenue, which comes generally from like geysers or coolers and small appliances. Got it, sir. Incrementally, like longer term, is the company thinking of getting into in-house manufacturing or is generally going to follow the same model like now? Generally same model. We'll keep following what we are doing as of now. Okay. For answering my questions and best wishes for the year. Thank you. Thank you. The next question is from the line of Tisha from TriNetra Asset Management. Please go ahead. Am I audible? Yes. Yes. Thank you for the opportunity. My first question was on the FMEG side, where the breakeven has reached recently. As I could, I expect that by FY 2027, we are on the track. The timeline has slipped a little bit. What is the specific driver for this delay in trend? Was it the scale? Was it distribution? Was it the pricing competition? At the beginning of the year, earlier we were targeting to achieve breakeven Q4 of FY 2026. As there were very high fluctuation or increase in our raw material prices, we were not able to achieve that breakeven. Now we are able to achieve. On sustainable basis, we are expecting to achieve breakeven on a yearly basis in this year. Then we'll keep growing. Okay. My another question was on the dealer distribution side. How are you doing the network scaling relative to the revenue growth? Is the channel expansion keeping pace? Can you repeat, please? Your voice is not clear. My other question was on the dealer distribution networking, how is the growth of expansion in the channel, relative to the revenue growth. Is the revenue for distribution being increased? Yeah, I got your question. From dealer distribution point of view, of course, we are increasing our retail presence all over India. Luckily, we have established distribution channels all over the country. The only thing, depth of our retail distribution, maybe in some states we are doing very good, while in other markets still we are behind. At the same time, we have more than 1.5 lakh retail touchpoints, it will keep growing so that our increase, we can achieve the expected growth in wire and cable as well as FMEG segment. Okay. The last question of mine, if I may ask. What was the exceptional item of 14 crores this time? May I know the reason behind it, sir? Exceptional item, if you recall in Q3 of last year, due to labor code, there was one exceptional loss of INR 19 crore. Since that time, the rules and the details were not clear. Now, as everything got cleared, there are reversal of INR 14 crore in this quarter due to change in labor codes and clarity on that. Yes. Got it, sir. Thank you so much. As salary restructuring happened after clarity of rules, these benefits come in this quarter. Okay. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touchtone telephone. Reminder, anyone who wishes to ask a question may press star and one on the touchtone telephone. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead. Sir, thank you so much for the opportunity again. Two things. One is that if you could just spell out your capacity utilization and CapEx for 2027, 2028. How should we think of that number? If you could break this down both from wires and cables perspective, what is the utilization there? That's my first question. Dhruv, if you see overall, we had a CapEx plan of around INR 1,200 crore, in which almost 80% is focused towards cable side of the business. Out of which, like last year, we did around INR 300 crore. This year, major phase of that expansion will be executed, and approx INR 600-INR 650 crore will be deployed in this year. Again, major part is towards cable only, where earlier we had capacity utilization of almost 90%. Even now, growth is more expected from cable side of the business. Sir, what is the utilization for wires? Wires, it's around 65%-70%. Yeah. Sir, given the fact that you've done about 17% volume growth for this quarter, I understand that last year into the third quarter, your base was higher. Just from a FY 2027 perspective, what is the kind of volume growth you anticipate in this year? Given the fact that Middle East exports will also come back, possibly in the rest of the quarters. If you see our long-term guidance and even overall volume growth, we are expecting to achieve growth of around 18% year-over-year, what we have guided at the beginning of FY 2026. We are hoping to achieve that kind of volume growth. This year also, we are expecting around 18% volume growth. Sure. Sir, just one thing. In your FMEG business, we've seen a couple of your peers actually get into solar and renewables in a big way. Anything that you guys are exploring in that vertical? Right now, we do not have any plan in solar. We will keep focusing on current product category and expand those categories. Okay, sir. Sure. Thank you so much. Thank you. The next question is from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead. Thank you for the follow-up opportunity. Sir, if you could help us understand in terms of the dealer distribution count, and the retail touchpoint, you said 150,000. How was it, say, last year same time? If you could just call out what has been the growth there. That hasn't grown. Now it is like dealer distribution is in consolidation phase, where we want to increase the depth of my distribution and achieving higher revenue per dealer distributor. Our focus is on making balanced approach towards distribution and dealer depth and growth. Of course, retailer, it is like continuous process where we keep adding 2,000 retailers every year. Last year approximately we have added around 20,000 to 25,000 retail points. Similarly, how much would have you added in dealer distribution count? No, there I will say not maybe increased, but there may be some reduction in numbers overall. Got it. Understood. In terms of the price inflation, you mentioned 30% is basically the LME price increase YoY. In Q- Does that mean a 15% effective pricing, given metal is about 50%-55% of the revenue? Would that be a fair assumption? First, this 30% is about Q2 of current year versus Q2. Since apart from this there was inflation in USD price also, there may be like net impact maybe around 40% in metal price, and that may reflect to around 25% in overall product pricing. Understood. Got it. Third, in terms of the margins. Sorry, I missed that part. 9.9% margin for 1Q. There is no inventory gain or any inventory loss in this. It's purely operating leverage which is driving this margin. Have I understood right, sir? Yeah. This is correct, because inventory is like continuous process, which is continuous for every quarter. This is purely organic level margin improvement and growth. Neither the inventory loss? No. Got it. Great, sir. Thank you and wish you all the best. Thank you. Thank you. Next question is from the line of Himanshu Singh from Baroda BNP Paribas Mutual Fund. Please go ahead. Hi, sir. Thank you for the opportunity and congratulations on good set of numbers. I just had one question. In terms of the unorganized players, they would be facing working capital distress and because of the elevated commodity prices. How do you see the share from unorganized to organized in this quarter or maybe, let's say, last six months happening, and how has that helped you? There are no specific data how unorganized doing. Based on my experience and what we are seeing, maybe every year 2%-3% market is moving from unorganized to organized, not only for this year but over a larger period of the time if I see. I think the journey is almost same and similar. Maybe 2%-3% yearly the market is shifting from unorganized to organized. Okay. Nothing major happened in the last six months, you are saying? No, I don't think so. Okay. Sure, sir. Thank you so much. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touchtone telephone. Reminder, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is on the line of Yash Mehta from SKP Capital. Please go ahead. Hello, Yash. Hello, am I audible? Yes. Yeah. First of all, congratulations on a good set of numbers. I've got few questions. I wanted to ask, so the wires and cable segment margin improved from 7.6% to around 9.9%. Was this primarily because of product mix improvements, operating leverage, or better commodity management? These are like mix of all initiatives. As earlier also I said, majorly if I see the margin improvements are due to scale benefits and better cost absorptions. Besides this, there are many other initiatives we are undertaking to improve our margins. These are like combination of many all-other things, and we are able to achieve and improve. Okay. Got it. Given the current business mix and execution efficiencies, should investors view the current margin profile as sustainable or was this quarterly exceptionally very strong? If you see our overall guidance, like we had targeted to improve our margins 100 basis points on year-on-year basis, and last year we were able to achieve. Even in this quarter, as per our original business plan, we are quite confident to achieve those guidelines of improving margins by 100 basis point year-on-year basis. Got it. Understood. Thank you. Thank you. The next question is from the line of Vidit Trivedi from Asian Market Securities. Please go ahead. Hi, sir. Thank you for the follow-up question. Sir, I remember in one of your previous con calls, you've said that the cables command a margin of almost 11%-12% in the exports market, while on the domestic front, they command 6%-7% of margin. The case is completely vice versa in case of wires. While on the domestic, they command 11%-12%, on the exports, they do 5% margin. Can you please explain why such a difference is there on the domestic front and the exports front in both the areas, I mean in both the segments? If you see, perhaps India is the only country where wire is sold as a consumer product, and you get premium over your brand and brand value and presence in the market. While in global markets, wire is considered as a simpler product, which is a kind of simple with less investment you can make. In cable, you need precise manufacturing capabilities, some typical hard approvals also, and a complex manufacturing process. That is the reason. At the same time, I would like to clarify that our margins in domestic cable are in the range of 6%-7%, going forward, if we achieve the scale, improve the availability, then we also will be in the range of 10%-11% in domestic cable also, once we achieve the scale and a sizable market share also. Overall, of course, in export wire, margins will be less, in domestic wires, we have higher margins. While in export cables, margins are already good, in domestic cable also, our margins are improving in current phase. Got it. Sir, thanks a lot. Thank you. The next question is from the line of Vivek Gupta from Star Investments. Please go ahead. Yeah. Hi. Am I audible? Yes. Yeah. Hi, sir. The wire and cable segment margins expanded about 9.9% despite strong growth. What were the key drivers, if you could just break down between the product mix, export mix, or the operating leverage or the lower competitive intensity? Overall, if you see in our volume growth, we have guided that in cables we will have higher growth compared to wires because of our base or our presence also, since we started our journey from wire and we have fairly good share in wire side, but in cable now we are improving. The majority of the growth will come through cable side. Overall, if you see the way infrastructure development is coming in India or green energy in wind and solar or data center or export opportunities. Overall, we see that cables may grow at a higher pace than wires at the industry level also, and for us particularly, cable growth will be more. Okay, sir. Sir, are you seeing any pricing pressures from the new entrants or the aggressive bidding in institutional and project business? Not really specifically, but competition is always part of our business, and one has to be always ahead of the competition based on quality or availability and everything. We have not seen anything special in this quarter or last. Okay, sir. Sir, which geographies contributed most to the export growth? Are there any regulatory or tariff-related opportunities helping Indian exporters to gain the share globally? As of now, biggest contributor in our export is Europe and Middle East, it is going to contribute as usual at higher pace. At the same time, U.S. we see as a new opportunity and as maybe once this tariff type of thing settles, then we see good opportunity for us in U.S. market also. Okay. Sir, the FMEG business has achieved operational breakeven for the first time. What specific actions enabled this turnaround? Also, is breakeven likely to sustain every quarter going forward, or was there any seasonality benefit in this quarter one? Of course, this was first time. Though we are targeting our breakeven at yearly basis, we are happy to share that in quarter one itself, we were able to achieve the breakeven. At the same time, since this Q2 is a little bit lower in FMEG side, this quarter may not be possible, but we'll try to achieve. On a yearly basis, we are quite sure to achieve breakeven in this year. We'll maintain this positive side up. Okay, sir. Sir, given the strong demand outlook, what is the CapEx plan for FY 2027 and FY 2028? If you see our project size guidance, what we have given in FY 2026, where we have a CapEx plan of INR 1,200 crores compiling FY 2026 to FY 2028, and we are on track of that. Already I answered that out of that, INR 300 crores we already invested last year. This year it will be around INR 650 crores or so. Okay, sir. Thank you. That was all from my side. Thank you. The next question is from the line of Sahil Sharma from DD Capital. Please go ahead. Hi, sir. Thank you for the opportunity. I just wanted to ask, could you share which categories are contributing the most to growth, and also whether the premiumization is playing a larger role than before? Initially, I informed that in FMEG, we have grown in lighting appliances and switches. In fan business, of course, our realization is improving due to better premium product mix. Almost 25% of our revenue is coming from premium product category. Understood, sir. Now that breakeven has been achieved, what are the next milestones for the FMEG business in terms of profitability and also the scale over the next two to three years? First of all, we are targeting growth of around 20% in FMEG business and also achieving breakeven on sustainable basis first for this year and then make this business profitable in coming two, three years on continuous and sustainable basis with top-line growth of around 20% year-on-year. Okay, sir. Fine, sir. Thank you so much, sir. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Rajesh Jain for closing comments. Thank you everyone for taking some time out to participate in this call. In case of any queries, reach out to us or our investor relations agency, MUFG Investor Relations. We wish you all the best and hope to interact with you soon. Thank you so much. On behalf of R R Kabel Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.