Ladies and gentlemen, you have joined the SRF Limited Earnings Conference call. Please stay connected, the call will begin shortly. I repeat, you have joined the SRF Limited Earnings conference call. Please stay connected, the call will begin shortly. Foreign. Ladies and gentlemen, good day and welcome to SRF Limited, Q1 and FY 2026 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kumar SAumya from Ambit Capital. Thank you. Over to you sir. Thank you. Good afternoon everyone and thank you for joining us today. We at Ambit Capital are pleased to host SRF Limited's Q1 FY 2026 results conference call. We have with us today Mr. Rahul Jain, President and CFO of SRF Limited. I would now like to invite Ms. Nikita Dhawan, Head of Corporate Communications at SRF Limited to initiate the proceeding for the result conference call. Over to you, ma'am. Am. Thank you. Good afternoon everyone and thank you for joining us on SRF Limited's Quarter 1 Financial Year 2026 results conference call. We will begin this call with brief opening remarks from our President and CFO Mr. Rahul Jain. Following this, we will open the forum for an interactive Q&A session. Before we begin this call, I would like to point out that some statements made in this call may be forward looking and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I would now like to invite Mr. Jain to make his opening remarks. Good afternoon everyone. I extend a warm welcome to you. All, thank you for joining us today for SRF Limited Q1FY 2026 earnings conference call. I trust all of you have had the opportunity to go through our results and presentations shared with you earlier. I will begin the call by briefly taking you through the key financial and operational highlights for the period in review, following which we will open the forum for a Q&A session. We started the year on a positive note, delivering strong performance across our key business segments despite prevailing global uncertainty. With expectations of an improving external environment. We remain cautiously optimistic about achieving stronger performance in FY 2026 as a whole. In Q1 FY 2026, our gross operating revenue stood at INR 3,819 crore and EBIT was up 43%, recorded at INR 694 crore, reflecting an 18.2% margin. Profit after tax grew 71% YoY to INR 432 crore during the quarter. The Board also approved an interim dividend of INR 4 per share with a total outflow of approximately INR 119 crore. Our chemicals business reported revenues of INR 1,839 crore, registering a 24% year-on-year growth. The operating profit of the chemicals business increased 64% from INR 306 crore in Q1 FY25 to INR 503 crore in Q1 FY 2026. The Specialty Chemicals business segment delivered strong revenue and margin performance driven by a healthy demand for newly launched products. We are now witnessing a gradual recovery in the agrochemicals market post inventory rationalization that happened during FY24 and FY25. While there are still some overhang. The inventory cycle, we believe majority of the same is now behind us, albeit some pricing pressures remain, and we continue to witness the same in some of our products during the quarter. Key milestones included a launch of new Pharma Intermediate and registration of an AI product, both of which are expected to scale up in FY 2026. In an environment of evolving market dynamics, Chinese competition, and uncertain tariff position, operational. Efficiency remained a key focus for the segment, supported by cost optimization, process improvements, automations, and better asset utilization. Demand for agrochemical intermediates remained favorable, with strategic pricing and solid export performance contributing to overall growth. To support future demand, the board approved an INR 250 crore investment for a new agrochemical intermediate facility at Dahej, reinforcing SRF Limited's commitment to long-term sustainable growth. The fluorochemical business delivered good growth compared to the corresponding period last year, while the overall domestic market remained weak with R32 production being lower. We were able to find countermeasures in the export market and grow our HFC volumes when compared to the corresponding period last year. A key highlight in the segment was SRF Limited's commercial sale of R467A in Q1 FY2026, developed and patented in-house by the SRF R&D team. R467A is a low GWP, non-toxic refrigerant gas designed for retrofitting legacy R22 stationary air conditioning systems. It has also earned global ASHRAE certification, making SRF Limited the first Indian company to achieve this milestone. SRF Limited maintained its leadership in both room and mobile AC segments in the domestic market. The recently operational AHF3 plant is helping increase SSC production, and the Performance Films and Foils segment is preparing to expand sales for its V Flow and Fine Cut variants in FY2026. The chloromethane segment also delivered stable results, with pricing largely remaining range bound. A lot of questions around quota regime. For HFCs have been received since our results announcement and in the past as well. We will plan a separate call to explain deeper nuances around the same. However, I would like to clarify that the quota policy is extremely clear and we believe that someone putting up large capacities has incorrect understanding of its implications. SRF's R&D capabilities remain a core strength supporting innovation and competitiveness across fluorochemicals and specialty chemicals. With over 400 skilled professionals, our R&D team is engaged in developing complex chemistries and advanced products. SRF has built a strong intellectual property portfolio with 153 granted patents and 494 process patents filed. Moving forward, R&D will remain central to advancing process development, scale up and commercialization across agrochemical products, pharmaceutical products and next gen refrigerant gases. The Performance Films and Foils business recorded a 6% year-over-year revenue growth in Q1 FY 2026, reaching INR 1,418 crore with operating profit increase 62% over prior year to reach INR 140 crore in Q1 FY 2026 on account of record production, improved efficiency and higher capacity utilization and overall margins. Volumes of BOPP were higher and margins improved on the back of better overall realization, higher RAP sales and disciplined cost control. South Africa remained stable and Hungary benefited from lower energy costs and higher exports to mainland Europe. Hungary, our high end unit, did face margin pressure due to high costs and competition from China. The aluminum foil business delivered its best ever quarterly sales driven by higher volume and supportive trade measures on the notified anti-dumping duty. The current BOPP demand supply situation is likely to remain favorable in the domestic market given known market developments in the Performance Films and Foils business. We remain focused on profitability by commercializing new wax and accelerating sales of high impact wax. To support future growth, the board approved a INR 490 crore CapEx investment in a BOPP film facility in Indore equipped with a 10.4 meter wide raptor line and metallizer. The project is expected to be completed in 24 months, further strengthening SRF's leadership in high performance sustainable packaging films. Our Technical Textiles business recorded INR 467 crore in revenue during Q1 FY 2026. Weak domestic demand of nylon tire cord fabric and pricing pressure in welding fabrics due to Chinese competition impacted the business performance. However, higher exports in belting fabrics and healthy sales in polyester tire cord fabric helped offset some of the challenges. While MTCF volumes improved sequentially, they remained below last year's levels. Ongoing CapEx of the new bibbing machine and ramp up of recently commissioned belting fabric lines positions the business for future growth with continued focus on high margin value added products. In other segments, we saw muted performance with coated and laminated fabrics facing soft demand. However, coated fabrics retained its domestic leadership with monsoon demand expected to boost growth. Production capability and operational efficiency improved through installation of new looms. Despite industry overcapacity, laminated fabrics maintained price leadership and upcoming equipment additions will further enhance in-house production capabilities sequentially. Our overall interest cost has also witnessed some softening as both global and local interest rate benchmarks were on a downward trend and is likely to impact our cost of borrowing in FY 2026 positively. I am happy to share that during the quarter SRF Limited was honored with two prestigious awards reflecting our commitment to quality and social impact. The Fluorochemicals business received the 0 ppm award from Toyota Kirloskar Motor Private Limited for flawless performance, while the SRF Foundation earned the CSR Times Gold Award 2025 for its rural education program in Mewar. During the quarter, our CSR wing SRF Foundation undertook transformative initiatives around our manufacturing locations, empowering close to 2,500 students in Hind via a digital bus, training 100 plus educators in tech, upgrading classrooms for 140 children in Nammampatti, distributing medical equipment to 12 sub health centers in Dhak, and delivering mobile healthcare across 15 villages in Bharuch. In conclusion, we have had a solid start to the year supported by steady performance and continued momentum across key segments. Our commitment to capital expenditure remains robust with planned investments of around INR 2,400 to 2,500 crore during this fiscal year. The recent announcements reflect our confidence in business and its long term potential. SRF has built a strong, diversified foundation that enables us to adapt to evolving market conditions and pursue growth opportunities with agility. While certain sectors may face near term. Headwinds, our overall outlook remains positive and we are firmly focused on delivering sustainable long term value through innovation, strategic initiatives, and operational excellence. On that note, I conclude my remarks and will be glad to discuss any questions, comments, or suggestions that you may have. I would now like to ask the moderator to open the line for the Q&A session. Thank you very much. Thank you very much. We will now begin the Q&A session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nitesh Tuteja from Anand Rathi Institutional Equities. Please go ahead. Yeah, good afternoon. Thanks for the question. My first question is on the agrochemical INR 250 crore for 12,000 metric tons. Assuming 1 point effect tons, there is a sub $3 product. Can you give some color, you know, if it's an existing product or a new product, and if you could also clarify any particular reason for CapEx in lower value products. The way we are looking at it, while the 12,000 is A rated capacity. The way we are looking at it. It is only also to think about the CapEx from the capacity will actually. Depend on the base product mix. You keep going up the value chain and keep doing differentiated products. That is something that we believe we needed to do. Therefore, while 12,000 may be a name plate rated capacity which is a requirement to be given, the idea here is to not set this up as. As just that product. It is a requirement for a very large product. Again, the assumption of 1:1 may not be correct on this side, and therefore we believe it sets up the foundation. For the future for us. Is this an existing product or is it a new product completely? For us, it is a new product completely. We have not done this in the past. Okay, secondly, on the capacity utilization in R32. I mean, what's the current capacity? [Foreign language] [Foreign language] No, not very well. Sorry to interrupt, sir, but I may request you to rejoin the question in case we are not. Just one moment, sir. Is it any better now? I've just tried to adjust. Yes, much better. Please go on. Yeah. Okay, I was asking on the capacity utilization, the current capacity utilization in R32, and what will be the likely exit rate for FY 2026. If you could give some outlook on the R32 prices, what we hear from the channel is that there has been some softening in prices in the domestic market. If you could just give some color there. Two or three questions together, Nitesh. The first one about capacity. Our current capacity utilization is pretty much. As much as the rated capacity that we have on the city, so that effectively full capacity utilization again. From an FY 2026 exit perspective, our target. Is to continue this at that level. Right. That's the position on it from a pricing perspective. You have to also understand that pricing of those is also a function of. The current demand, and there is always. A seasonality that prevails within the R32. HFC position overall. That is your channel. Check in terms of what the pricing is, either lower or higher. We believe that the pricing is strong, and given overall market conditions, it is. Likely to remain that way. That's what we believe, Nitesh. Thank you. Just one last question on packaging films. The typical equipment ordering to plant commercial would typically be around 24 months, right? Are there any other faster routes also? Asking this in context. Of the recent supply disruption that happened in the industry, and you know, also if you've seen any increase on the BOPP import side since the incident. Two things, Nitesh. I think the. and Foils and aluminum foil business and specifically BOPP film segment. In that, the supply situation, what you. Are saying is right. There are no other routes. You will have to buy the machinery. From the two global suppliers on it. If it is BOPP or BOPP. There are two large global suppliers, being Arkema, and so that's how it works out. No shortcuts around it. That's one element of it. With respect to the second question, with respect to the overall situation in terms of the supply on both gas, it remains tight. India will be short. From an overall perspective, the incident that happened is roughly about 25% of the India production capacity. India will be short, and therefore. There will be a need for some import as well. Thank you. That's all from my side. Wish you all the best. Thank you. Thank you. The next question is from the line of Arjun Khanna from Kotak Mutual Fund. Please go ahead. Sir, thank you for taking my question and congratulations for a great set of numbers. Sir, I have two questions. The first question is on the end. To entry regulation for the MSCV side. We have referred to that in a market trends part of it. In terms of 134a my understanding is we are the sole HFC manufacturer of this gas in India. Is this correct and what would our market share be at this point in time? I think to a certain extent. An SRF perspective overall market share is. Roughly in the range of 60 to 70%. From a domestic market perspective, balance gets imported. From a 134A perspective, there are a. Couple of new capacities that have started on R32, but on 134A you are. Right, we are the sole manufacturers. Sure. In terms of pricing, while you did allude to R32 given this regulation, do you see a step up in terms of demand? Since it's already in the system now, are we seeing benefit from the same? I think that demand kicks in from. 2026 onwards rather than now. Roughly speaking, I would say it should start to see demand positive in 2026. Only, not in the current year. From a 134A perspective. Okay, sure sir. The second one is on the PTFE and the aluminum foil. These have been recent projects by us. We were expecting a ramp up in FY2026. If you could comment on both of them please. On the aluminium foil, Arjun, I think we kind of said in the release as well that the anti-dumping duties that have been levied for five. Years is a positive. We are starting to see traction on that side in the domestic market. Our overall goal here is to continue to grow the market and to increase our production. On the aluminium foil side, TTSE also, we believe there will be some positives in the overall FY 2026 perspective from PTSE Global Sales free flow fine. Cut should take up a better position going forward. We were earlier talking about exports also of aluminum foils. We haven't seen much in export data. Is this something that will happen maybe in the second half of the year, or are we now concentrating post the add on the domestic market? No. There are U.S. and European customers that have been identified. Some of the sampling will start happening, and hopefully some of that traction we. Should see in FY 2026 itself. What utilization levels are we currently at for both PTFE and aluminum foil? Yes sir. Aluminum foil. We will roughly be, I would say, at about 50% to 60% PTSE also in similar ranges. Sure. Wishing you all the best. Thank you. Thank you. Thank you. The next question is from the line of Sumant Kumar from Motilal Oswal. Please go ahead. In Specialty Chemicals, when we talk about healthy revenue growth, is it because of the newly launched product, or is it majorly contributed by our newly launched product, or is the existing product also driving growth? Again, when you think about FY 2026 Q1, FY 2026. Yes, I would say attribute a larger. Growth into the newly launched product. I think when you compare it to CPLI, where we were seeing a bit of depression from an overall inventory. Cycle that we have spoken about, we've. Kind of seen some of the older products or some of the legacy products. Also go up in volumes. Although in some cases we've seen, let's say, pricing to be slightly lower, the point also is that some of these products we are saying that we will. Ensure that our market share remains positive. Continue to find answers to, let's. Say some of the pricing pressure that's there. Considering a current scenario, can we assume chemical business what margin we have shown in Q1 is going to continue in Q2? Look, I have always looked at it. From an annual margin perspective, Sumant, you are aware of that. I mean, quarter on quarter margin may not be the right way to look at it, and therefore we will continue. To be on the same position on that side. I don't think we want to look. At quarter-on-quarter margin. Okay. there any change in chemical business growth guidance for the year? I think we have done fairly well in Q1. When you think about it, why should. There be a change? You want a higher change or a lower change? Higher. You will always want a higher one. I am saying we are still. Sticking to the original guidance. Okay, thank you, Raghavan. Thank you. The next question is from the line of Jason Sones from IDBI Capital. Please go ahead. Yes sir. Thanks for taking my question. Just in terms of the ref gas pricing, of course it has helped us this quarter and roughly speaking R32 quarter on quarter has increased around 20%. That's what it's come to. That's what the pricing increase reflects. Now just wanted to understand, you have also mentioned in your presentation that domestic market was weak. Could you give us some color? In terms of how this has panned out, just roughly ballpark in terms of volume or price, how the performance has been so strong in terms of the fluorochemical business. Also, a related thing is do you think the pricing will be sustainable going ahead? Look, I would really say two things here, Jason. The fact is that there has been a change in gas pricing. I don't want to put a number. Of 20% or 25% or 30% around. It is from a domestic and an export market perspective. I can only give you color in. terms of saying that the pricing has been positive. Right. The other thing in terms of overall, let's say, market situation, RAC production is known data that it has been weak. That's why we have been saying that the overall RAC production when we. we think about it, it has been lower than when we compare it to CapEx. Right. That's how we are looking at it. We've been able to find some countermeasures. We continue to utilize our capacity to the maximum possible. The second question, I kind of forgot, could you repeat? I just wanted to know, do you. Think this pricing trajectory, do we expect this to continue going higher? The strong pricing trajectory, where you want. To look at it is the global pricing on this. I think there are various positions in terms of where China is, where overall capacity positions are playing out. We do believe that the pricing should remain strong. There could be changes in. Overall demand from a world market perspective, although we don't see that happening. Okay, sure, sir. My next question, I just wanted. To know the progress on the various areas under development under the Specialty Chemicals segment Going on. I think there are a few that are under, let's say, campaign position. Hopefully, some of that ramp-up will get seen in FY 2026. There are larger products that we are talking to and are in various. Stages of development in the AI product phase. Okay, okay. Just wanted to know, I mean. course, it's a well known fact that last quarter one major competitor witnessed a major fire, and that must have possibly impacted our performance in business. Just wanted to understand what is, did you, you know, how much of a positive impact was there, and how do you, how much do you think it is sustainable going ahead? We are all aware of what it is. Happening in the market, right? There has been that incident that I caused. There is a positive in terms of. The fact that BOPP demand and supply. Situation has kind of got changed because of that. Frankly speaking, I would say that. To be able to quantify it is very difficult. Sure, sir. Thanks. There are no questions. Thank you. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Sanjay Jain from ICICI Securities. Please go ahead. Good afternoon, sir. Good afternoon, sir. First, on the Specialty side, you mentioned that there was some strategic pricing action that has been taken. In the initial remark, you said that there were pricing pressures in a scenario of pricing pressure. I think when you say strategic pricing, you are talking of upward revision. Now what's transpiring? Is there such a That's our assumption. Sanges. What we are saying here is that in certain cases, in certain products, we. Are not willing to let our market share go. We are working on cost positions, we are working on our own overall utilization of the product, and therefore want to. Continue it like that. We are not saying that we have taken certain strategic pricing decisions upward or downward. We are just saying that we want to look at some of the products as one of the largest products that we have and continue, let's say, gaining market share. Okay, got it, got it. That's clear. Second, on the R32, you said that India market was weak, but we as a countermeasure found some market indirect exports. Which are the markets which are showing traction for R32? I don't want to go into position. For various other export regions. I'm saying overall exports were higher from a volumetric perspective, and this could be to the U.S. market, it could be. To other Middle East and Southeast Asia. Market, but overall is where we are at. I'm not talking about various jurisdictions or geographies. Ok, same geography but more volume is what you are telling. I have not said any of that interpretation at your end. One last question from my end before I get back into the queue for the Specialty. What we are hearing, commentary from the global agrochemical is sort of slightly weakish from earlier. Are you seeing that trend in your discussion with the customer? Because the customer ones who are listed large agrochemical companies have been downward revising their guidance. Anything that we have picked in our discussion. I think our order book is in fairly good position. Sanjay. There could be various positions that some. Of the global wages have, and therefore. From their overall perspective, they are looking. At probably a slightly negative outlook. I don't think we are in a situation where we are saying that. is a negative outlook on our end as well. I think we continue to stick. To our overall guidance. Got it. We stick to the thing we said earlier that last quarter. We said that 60-70% of our order book is already booked. That gives us a confidence of growth and we stick to that point. Correct. Got it. Got it. Thanks. Thanks also for answering all those questions and the rest of us for the coming quarters. Thank you. The next question is from the line of Vishal Gajwani from Aditya Birla Mutual Fund. Please go ahead. Thank you. Congrats on a good set of numbers too. Three quick clarifications. First, you touched upon R467A, which is our in-house developed baby. Just wanted to understand the current revenue size, and can this really be big for us in the future in the next four or five years? Look, I can't give you revenue like that, right? Overall HFC positions were higher, that's all. That I can tell you. Gas by gas, I don't either. Give revenue or volume. Yes, given the fact that this is a replacement for R22, we certainly believe that, let's say for a five to ten year period, this could play out as a large positive. Sure. Second, on the fresh land acquisition, similar or larger size compared to Dahej. Any development there or anything you would like to touch upon? I can only say there is work going on on that side. Hopefully, there should be something that comes through in the near future once there is an announcement around it. You will certainly come to know. As of now I can only tell you what's going on. On the packaging business side, despite margin and revenue growth, we have seen a good margin jump sequentially and year on year as well. Historically, I didn't ask the question [crosstalk]. [crosstalk] Repeat please. On the packaging business side, despite marginal revenue growth, we have seen a decent jump on the margin side. Historically, it has been on an average 14-15% margin business. Last two, three years wasn't a problem. Do you think the cycle has bottomed out and we should quickly go back to the normalize on that at least? Look again. I think you are well. Aware, probably better than I am. terms of the current market situation. What has happened to one of the market participants on it. I think given the situation, the supply. Demand situation has completely twisted on its head on BOPP. Hopefully that can sustain over a period of time because capacities don't come up quickly. Will take time to probably ask someone else the question in terms of things, can there be a shorter route. To get these capacities online? To which I said it's practically impossible. Should this lead to the normalized average margin of the packaging business versus what? We are today. Look very, very difficult. To be able to have marginal increase or more increase, it will depend on the demand and supply situation only, of course. Thank you. All the best. Thank you. Thank you. The next question is from the line of Ankur Perual from Access Capital. Please go ahead. Yeah, hi sir, thanks for the opportunity. There is a comment wherein we highlight that, you know, the sector registration norms are delaying some bit of product launches from the innovators. Is this comment in general? Yeah, yeah, yeah. Correct. Just wanted your clarification here. Is this referring to some of our AI products that we are making or is it a general comment for the industry at large? It's more a general comment, but yeah, to a certain extent, dabbled into the. AI product position as well. Okay, as you mentioned, your 20% growth guidance remains intact, which factors in such delays or maybe the pricing-led strategic initiatives which we had highlighted there. Is that the right segment? I would say that the way we are looking at it is the fact that we are still very confident that. We will be able to get there. There may be some delay, but given. All of the current situation prevailing, we are fairly confident whether AI or non AI, we should be able to get that number. Sir, secondly, the new pharmaceutical intermediate that we had announced, and I'm going back to our earlier comment wherein we had expected the pharma business to grow at a much faster pace. Will this be a bigger driver for that ramp up, or how should one look at the new launches on the pharma side there? The way we are looking at it, Ankur, is that pharmaceutical intermediate, agrochemical products, all of these will continue to come through. Right? When we say we have launched a new product, it doesn't mean that the commercial scale quantities have started to flow through. It's now been approved. As the customer needs get more stable, we will continue to sell the product. Is the way we think about it. Great, sir. Just lastly on the fluoropolymer side, any timelines you'd like to share from a ramp up perspective? Given that we are almost 50-60% PTSE, correct? Yeah, I think FY 2026 should be better. Year than FY25 for the PTSE segment overall. Should we expect next fiscal full ramp. Up by the end of this year? Let's say Q4 at an exit run rate, or it may take slightly longer. [audio distortion] 26. Okay, fair enough. That's it from my side. Thank you and all the best. Thank you. Thank you. The next question is from the line of Abhijit Akela from Kotak Securities. Please go ahead. Yeah, good afternoon and thank you. Just one question on the refrigerant for R32. What would our estimate of total world demand be at this point in time? If you have a forecast for the next five years by 2030 or so, that would be great to have as well. Also, how much might China production be at present for the product? Thank you. Sorry, Abhijit, I don't have that data available readily. I will probably relook at it. The position. On this, maybe come back to. You separately on this. I don't have both those data points available readily. Sure, that's fine. Thank you. Maybe just one other thing, you did mention at the close of your opening remarks that some businesses could see some near term pressures. If you could please just specify which areas you might be seeing that in. That's a more generic comment. I think we are facing some pressure. On the Technical Textiles front, given where demand is, given where the overall position is. That's something that is there, but overall I don't see a negativity around it. I think our commitment to capex has been strong. We are continuing to put in more. Money on the capex. Some headwinds will always be there. Business is not linear, it will continue to evolve over a period of time. I think that was a more generic comment rather than a specific comment. Okay, got it. Thank you so much, sir. All the best. Thank you. Thank you. The next question is from the line of Vivek Rajamani from Morgan Stanley. Please go ahead. Hi sir, congratulations on a good set of numbers. Just one question on the refrigerant gases, specifically R32. If you could just touch upon the. Kind of price increase that you're seeing. For the remaining products, and how is. it evolving over the course of fiscal 2026? Thank you, Vivek. The way I would look at it. Is not F of R32. I think thematically what we've seen is HFC prices overall are higher. I think stable to higher is the trend that we will end up seeing during FY2026 also, and that's the thematic. I can't give you gas by gas pricing because it would depend really on which market it is going, what kind of packaging it is going, the SKU guys positioning. I don't kind of talk about that overall, but thematically better prices is. What we've seen in Q1, and hopefully that trend can continue. Sure sir, that's clear. Just one classification from a domestic export mix, the 50%, 50% odd number, which will be the same for this quarter, or has that mix changed? Purely on the reference side if you. See the charity item, about 60% domestic. 40% exports from a volumetric. Sure sir, thank you so much. All the very best. Thank you. The next question is on the line of Krishan Parvani from JM Financial. Please go ahead. Yes. Hi Rahul Jain, congrats on a good set of numbers. Two from my side. First, any opening remarks? You mentioned that registration and scale up of an AI product is expected in FY2026. What is the status of the rest? Four to five years. Would there be scale up of any other AI products apart from the one that's mentioned in FY2026? Again, the way we look at it, Krishan, is that there are four or five in, let's say, commercial batching situation, hopefully because these are dependent on customer registration and customer positions on it. We don't know the exact timing of it, but likely to in FY2026 is. What we are thinking about. Got it. Secondly, just on this second side, what would be your domestic Specialty Chemicals sales as a percentage of overall second sales? Rough range would be helpful. Roughly speaking, I would say 60, 40, 60% export, 40% domestic. The point to make also is that even that 40% is at the behest of some global majors only. Yeah. Earlier I think that used to be 80% export, 20% domestic. That mix has changed considerably. At some point in time it was probably 9 to 5 export, 5% domestic. That situation is also kind of. Evolving over a period of time. Got it. Thank you very much, and wish you the best for the future. Thank you. Thank you. Thank you. The next question is from the line of Kumar Saumya from Ambit Capital. Please go ahead. Just one question, sir. Just wanted to understand the domestic and export mix of Dahej. Last quarter it was 60, 40 and how you said this quarter as well. 60, 40 and overall HFCs for R32. I think it was probably in the range of, I don't know. I'll have to check. Give me a sec. 6,040 again. Roughly feeling same. 60 40. Okay, okay. No. I was of the view that domestic demand has been weak, and we have pushed more volume in the export market. The skew would have been different this quarter compared to the last quarter. Again, I don't. The fact is that generally speaking, in this quarter we would expect a better domestic demand. Given the weakness in the RAC segment, that demand was weak. We had to kind of find. Countermeasures from an export market perspective. Thank you, sir. That is good. Thank you. The next question is from the line of Meet Vora from NK Global. Please go ahead. Yeah, thanks for taking my question, sir. First question was with respect to our R467A. Just want to understand what would be the current Indian market size and global market size. Is this sizable today or is this still getting as a development of probably replacement of R22 globally. Again, very difficult to be able to. Give you the exact data on it. The fact is that this is a replacement for R22. Right. As the, let's say, secondary market. The trade market develops and this kind of becomes more available in the. Market, we will kind of find out. I don't have a sense of that right away. Understood. Second, there was more of a clarification. We have mentioned in the PPT that our EHF3 plant is getting stabilized. Is it now running at optimum capacity or the ramp up is yet to be seen? The ramp up is to be seen. Yeah, it is kind of getting there. Okay. Just one last bit. With regards to HFC capacity utilization, we mentioned that we are now running at optimal capacity, right, in terms of all HFCs put together. That was more on R32. Okay. Okay. Understood, sir. Thanks. That's all from my side. Thank you. The next question is from the line of Nitin Nagarwal from DAM Capital. Please go ahead. Thanks for taking the question. Sir, with respect to your comment around the quota regime in India for HFCs and the challenges that some of the competitors may face in putting up larger capacity, what is the typical time for somebody to, you know, that will be required, somebody put up capacities to meet the quota requirements? Okay, so 2024, 2025, 2026 are the measurement years. Right? 2027 being the three years from a challenge perspective. Right. Somebody will have to look at capacity from the three years of production and maybe a certain position with respect. To the 65% of 8, 9, or. 9, 10 of the 22 or 3. FC capacity in terms of overall production. The other position on that also is with respect to how much you sold. During that period, which is 2024, 2025. 26 as the overall position which will become your baseline. I think that is how it is going to play out. Again, equal to their own. For our perspective, are we looking to put up any incremental capacities before the quota, you know, the 2026 period ends? Not as of now. I don't think that is what we are looking at. I don't think we have any plans around it, because again you have to understand the. Overall position of the quota regime. Capacity additions were only allowed till a. Certain point in time so that they. May not be considered for Montreal. If you set up capacity by, let's say, close of 2025, where will. You sell that capacity? You may have the production capability. No condemn capability. Sorry. Sorry guys. Please go on. Your question. Yeah. Okay. Thank you. The next question is from the line of Rohit Nagaraj from BNK Securities. Please go ahead. Thanks for the opportunity and congratulations. Just one question on the agrochemical intermediate capacity new capex that we have announced. In terms of margins for the product, will it be in line with the company-wide Specialty Chemicals margin? A related question to that, in terms of the capacity, it seems a large capacity at any point in time. In future, will it be fungible? You said it's the nameplate capacity though. Will it be fungible at any point in time? Okay, I have not understood the second question, but let me answer the first. One where you are saying that. My margins are similar to margin of some. Of the competition in this? Not competition, but are company-wide margins on the second business? See, again, I don't give out breakup of the margin between chemicals, between fluorochemicals and specialty. That's not what we do, not happening again. In terms of capacity, you said that. It's the nameplate capacity. We have taken the 12,000 tons capacity. It's a nameplate capacity, and we may reach that level or we may not, but we have taken approval. At any point in time, if. If the capacity be fungible for any other products or will it always be a dedicated product till the life cycle of final AI and a product. Mix, it will be dependent on the. Product mix of various products that can be produced. Yes, it will be to a certain extent fungible between products. Yeah, that's all from my side. Thank you and all the best. Thank you. The next question is from the line of Madhav from Fidelity. Please go ahead. Hi sir, good afternoon. Just one question on the quota. When you said that you know 2024-2026 is the quota measurement period, if anyone is selling, let's say instead of R32, if they're selling R125, the domestic market in this period of 2024 to 2026, given that's an HFC as well, does that give you the ability to sell R32 if you're already selling 125? [Crosstalk] Probably on the WPC valance basis. If you are selling 125 in the domestic market, yes, you get the 3x multiplier on that. You can do C2 as well. The only point is that there is R125 sales in India [Crosstalk]. It is largely an export product. Okay. 125 goes into some 410A consumption, right, in the country. If you're selling, but largely as the 125, it only goes to the export U.S. market. Okay. Okay. Just a follow up there, the HFC consumption of 2024-2026, it gets added with your HCFC production you did in 2009-2011. Right. Is it a combination of these two, or is it either or, like this and that, or this or that? How does it work? Two positions on this. There is one with respect to production capability, and one with respect to sale capability. There are two different things. Like I said, at the right point we will set up a call along with Pankaj to explain the entire. Detailed nuance of this. Maybe that's the right point to answer. Ask that question. Okay. Perfect. Thank you. Thank you. Thank you. The next question is from the line of Savan Shah from Alpha Accurate Advisors. Please go ahead. Thanks for the opportunity, sir. My question is on the R32. If we look at the global capacity, it is always in the excess supply chain demand. What gives us the confidence that the prices are likely to sustain? I think IGs also came. Out with capacity in Middle East. Are you seeing any incremental volumes from there for R32, and do you foresee any other incremental capacity coming in the global market except the Indian players who have announced the expansion for R32? Like I said earlier, also, global capacity, you know better than I do, right? I am unable to comment on the first one. In terms of pricing, in terms of overall position of R32, I think I answered that question in a brief to a previous question by someone that we believe where current demand and supply situation is, pricing remains strong. That's how I would really look at it. Being able to comment on detail where whether the UAV plant is producing or not or it is being. Is it selling? I think you know pretty much as. Much as I do, I kind of passed that question. Awesome. Okay, thank you. Thank you. The next question is from the line of Surya Narayan Patra from Philip Capital. Please go ahead. Yeah, thanks for this opportunity. A couple of clarifications only, sir. This R32 price appreciation in the recent months, is it led by any production disruption by any large global producer? Because that is how it has been reported by a couple of global listing articles. Could you clarify? To the best of my knowledge, I. Think it is a current demand and supply situation. Given where China is, given where overall position is, given the fact that there was a huge pre-quota filling that had happened. In the U.S., there was a massive. Overstocking that happened again when you think. About it, thematically, SRF Limited is more R32, right? Therefore, our capacity and maybe a couple of other capacities, we should, we. Believe that they are in good shape, right? Given also the fact that some of. The U.S. clients use more R32 than let's say the HFOs, so overall seems. In good shape, but I don't see or I have not heard of any signal disruption leading to capacity position. Okay. Second clarification, sir, about the agrochemical price or the specialty chemical pricing in the global market. What you have mentioned in the presentation, and you said that the pressure is anyway persistent and this is likely to be the new norm going ahead. Given that, is it a kind of a cautious hint, are you giving a kind of a cautious indication about the margin situation for our overall specialty chemical business going ahead, or how should one think about it? I think that's the position that we've taken from an overall Specialty Chemicals business. Perspective, the way we are looking at. The Specialty Chemicals business, and I've talked about it in the past in the, as answered to a few questions in. The earlier comments that we still believe. That growth is there again in some of the products. What we have said is we have been global leaders. We don't want to give up our. Position as global leaders in some of those products. It's probably more a product-based comment rather than a generous comment in terms. Of the overall margin profile of the Specialty Chemicals. That's how I would really look at it. Okay, just one point more here. In case of capex situation, see in FY2025 we have done something like INR 1,100 crore kind of capex. Obviously a lower number, but again we are starting, we are commenting about INR 2,500 crore kind of capex for the current year. This is a kind of the visibility, the demand situation. All that is giving a kind of positive indication, and last year was a cautious stance in terms of CapEx indicators, enhancement, and execution. What was this indicating, really sir. I think you are reading too much into it. I think last year we had clearly said that the CapEx cycle that we are in, given the market situation, also we kind of said that we are not going, let's say, very large on CapEx today. What we are doing is we have kind of seen market improve, and therefore our CapEx position is a function of how the market improvement has happened, and therefore taking the CapEx position upward then. Let's say when compared to FY2025. FY25 was also here because when we think about FY24, there were large capitalizations. That happened during that period of time. Therefore, we wanted to divest some of that capex that had happened. Sure, sure. Yeah. Thank you, sir. Wish you all the best. Thank you. The next question is from the line of Aman Kumar from AK Securities. Please go ahead. There is a significant rise in the price of BOPP films in the domestic market. Is this happening to the overseas market? Also, I have not looked at export pricing, but you are right in terms. Of the BOPP film given the current demand and supply situation in the market. It is confined to India only. In the international markets, margins are very much the same. Sir, what about the BOPP film? There is overcapacity in the BOPP film market. When can we think that this overcapacity gets over? Look, I think the way we think about it from a BOPP perspective, also there is some change in the demand. The supply situation there as well. Not many large new lines coming up. Globally on the BOPP side. Hopefully in the next few years. We should see some positive on that side as well. Margins are better than last year certainly. Okay sir, thanks a lot. Thank you. The next question is from the line of Amit Agicha from Ambit Capital. Please go ahead. Yeah, good afternoon sir. Am I audible? Yeah, you are. Please go ahead. Yes, thank you for the opportunity. Sir, what are your ROC targets post commissioning of the new projects? For which business? All the producers. Yeah, that's not how we look at it. I think overall when we think about ROT IRR and payback period, each business has a different position, right? The Specialty Chemicals business is more, let's say, from an overall perspective, driven by positioning over a period of time. While when you think about the packaging, the Performance Films and Foils business, those are slightly more commoditized and therefore will have a slightly lower ROC target. I think capital is not a constraint in that sense, and we continue to invest in more value-added products. Even on the packaging or the Performance Films business side, I think overall targets remain in excess of 25%, more from, let's say, the Chemicals business, slightly lower, maybe 200 basis points from packaging. Solution business perspective on an overall long term basis. The second question was connected with debt, like what is the current debt levels and what is the company strategy? Current debt levels? Yes, debt levels? Yes, debt. Roughly speaking, about INR 3,200, 3,400 crores of the overall net debt position. Again, debt is effectively a function of. How much cash you have available. Given our current situation, we believe the overall number remains there or thereabouts INR 8 billion plus minus INR 200 crore as the overall. Position given where the capex cycle would be at that point in time. Thank you, sir. All the best for the future. Thank you. Thank you, ladies and gentlemen. We will take that as the last question. I would now like to hand the conference over to the management for closing comments. Thank you, everyone. I hope we've been able to answer. All of your questions. I wish that each one of you. Remains safe and healthy. If you have any further questions, we. Would be happy to be of assistance. We hope to have your valuable support on a continued basis as we move ahead. On behalf of the management, I once again thank you for taking the time to join us on this call. Thanks and bye bye. Thank you on behalf of SRF Limited. That concludes this conference. Thank you for joining us, and you may now disconnect your lines.