Ladies and gentlemen, good day and welcome to Supreme Industries Q3 FY2026 earnings conference call hosted by DAM Capital Advisors Limited. 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Aasim Bharde from DAM Capital Advisors Limited. Thank you, and over to you, sir. Thanks. Good evening, everyone. I would like to welcome you all on Supreme Industries Q3 FY2026 results call. We have the senior management of the company with us on the call, led by Mr. Taparia, the Managing Director, to whom I hand over the call now. Thank you, and over to you, sir. Thank you. Good afternoon. Thank you very much, Mr. Aasim. I am M. P. Taparia, Managing Director of The Supreme Industries Limited. I, along with my colleague, P. C. Somani, CFO, and R. J. Saboo, Vice President, Corporate Affairs and Company Secretary, welcome all the participants who are participating in the discussion of the unadjusted standalone and consolidated financial results for the quarter and nine-month period ended 31st December 2025. The standalone results and the consolidated results are already with you. I'll be brief on company product operating performance and other highlights. The company sold 522,018 metric tons of plastic goods and achieved net product turnover of INR 7,582 crore during the nine months of the current year, against sale of 474,645 tons, and net product turnover of INR 7,336 crore in the corresponding nine months of the previous year, achieving volume and product value growth of about 10% and 3%, respectively. The consolidated operating profit and profit after tax for the nine months of the current year amounted to INR 980 crores and INR 520 crores, as compared to INR 1,103 crores and INR 667 crores, respectively, for the corresponding period of the previous year, resulting in a decrease of 11% and 32%, respectively. The business scenario of all the product segments of the company for the third quarter ended 31st December 2025, as compared to the corresponding quarter of the previous year, has been as under. The plastic piping system business grew by 16% in volume and 10% in value term. The packaging product segment business grew 2% in volume and did grow by 2% in value term. Industrial product segment business remained flat in volume and grew by 1% in value term. Consumer product segment business grew by 8% in volume and 5% in value term. The overall turnover of value-added product remained at INR 1,118 crores through the third quarter of the current year, against INR 961 crores in the corresponding quarter of the previous year, achieving growth of around 16%. Business outlook: World economic growth is affected by geopolitical tensions in several regions. This has resulted in extreme volatility in commodity prices. The combination of these factors has resulted in lower growth in the world economy in the year 2025. The company believes this downward trend has now reversed. Polymer prices have started upward trend. The polymer producers have gone through quite tough times. It has resulted in the closure of several petrochemical plants and/or running at quite low capacity. Combined outcome of these actions has put a brake in the erosion of the prices of polymers. Starting from the calendar year 2026, the polymer prices have started upward movement. The company is operating in various segments of the business. The company has grown 10% in overall volume and 13% in plastic piping business in the first nine months of the current year. The company expects to grow overall in volume between 12%-14%, and for plastic piping systems, it expects to grow 15%-17% during the year over the previous year. Plastic piping business growth is now coming back to normalcy as continuous downward price trend has been arrested. Driven by good monsoon, favorable economic conditions, and increasing housing, agriculture, and infrastructure in the last quarter of fiscal year 2026 will put good demand growth in the year. The company is well equipped to meet the increased demand of its plastic piping product portfolio. Newly launched PP Silent Pipe System and technical collaboration with Poloplast of Austria has been well received in the market. The company is expanding its range of electrofusion fittings and bathware products. The company continues to invest and enlarge the product basket in all its divisions and to remain focused on increasing its share of elevated products. Capacity expansion at various locations for plastic piping business and protective packaging products taken in hand are nearing completion and shall be available for full fiscal year 2027. As informed earlier, new greenfield plant capacities have taken up for execution in this financial year. Three units acquired through Wavin Business Acquisition are fully integrated and realigned and shall be available for their full potential from this month onward, from February onward. Total installed capacity of the plastic piping business shall reach 1 million tons per annum by 2026. Project execution at site for profile for window is now nearing completion. Production trials have commenced. The company expects to launch commercial production of windows in the market from February 2026. During the first nine months of the current year, the company has made CapEx outflow of INR 1,031 crores, including acquisition of Wavin business. The company expects total cash outflow during this year will be around INR 1,200 crores toward existing and new capital commitments, including acquisition of Wavin business. Entire CapEx shall be funded from internal accrual. All other product divisions are faring well and envisage moderate growth during the year. The protective packaging product division is specifically driving its growth plan by increasing its product range, expanding capacity, and offering customized solutions. The company has fully executed a letter of intent for supply of 200,000 numbers of 10 kg composite LPG cylinders to Bharat Petroleum Corporation Limited. The company received further a letter of intent for supply of 200,000 numbers of composite cylinders to Bharat Petroleum Corporation Limited, which shall be executed in the current quarter. The company continues to work to expand export geography and participate in national and international exhibitions in the field of energy and gas. This is a brief and overall summary for the quarter and a half year ended quarter and a half year under reference. Thank you for your patience now. Now, I and my colleagues, P. C. Somani and R. J. Saboo, are available to reply to various queries raised by all of you. Thank you very much. Hello? Thank you very much. Yeah? Yes, sir. 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 their 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'll wait for a moment while the question queue assembles. The first question is from the line of Shravan Shah from Dolat Capital. Please go ahead. Yeah. Thank you, sir. Sir, first, on the volume front, this quarter, Wavin volume was how much? Wavin volume is part of it. They are making the same product that we are making. Okay. Okay. We cannot say how much volume is from Wavin, but we got Wavin customers also. More than 180 customers joined our company, and they made the same product that we were making. Only some range, very small range, very different. You can see the part of overall volume of 16% growth in the quarter compared to Wavin also. Okay. Got it. Sir, now, given that now we are maintaining the piping volume growth of 15%-17%, that means for the fourth quarter of 2026, the ask rate is 20%-27%. Are we confident that this will be done? If you can also throw light in terms of how the PVC prices have increased till now, and how do we see, given the China whatever that will be applicable from the 1st April? Before that, is there a possibility that further price of PVC can decline? You put this in question together. Basically, this quarter onward, the demand for agriculture comes full way. The peak demand season starts from March, and this quarter will include the month of March. Demand for agriculture segment comes in always big way after the harvesting of crops that happens end of February. Otherwise, work can be being harvested. We are seeing the demand coming from agriculture sector. We are quite confident that the growth this quarter will be adequate to justify our guidance of 15%-17%. We are quite confident. Yeah. In the third quarter, we have grown by 16%. True. True. True. Prices now, they started hardening. First thing I say, they stopped going down. The PVC world booking has gone down up to $580 and now currently $640. The INR also has become weak. Earlier, it was INR 89, and now we close to INR 92. The local maker fixed the price based on import quality. The PVC price has gone up, and with the INR depreciating further, and China putting some restriction on the stock from 1st April 2026, we anticipate that price may go further up a little bit. Got it. Sir, now on the margin front, in the nine months and even this quarter also, our overall EBITDA margin is 12.1%. Even if we exclude the Labour Code extra of INR 15 crore also, then also 12.3%. We were looking at previously 14.5%-15%. How can one look at the margin for the fourth quarter and even, let's say, going forward for FY 2027, 2028, how can one look at the margin? Yeah. 2027, 2028 we will talk in April. For the current year, now we have revised our guideline, and we now believe that our margin will be between 13.5%-14%. Sir, that also means that in the fourth quarter, we are looking at minimum 15%-16% + kind of a margin. So. Let me check my calculation anyway. Please. Okay. Okay. Lastly, sir, finance costs, other income, and profit from associate, all these three things, particularly other income and profit from associate, has come down, and finance cost has gone up. How can one look at it on the quarterly run rate basis? You see, finance cost increase is temporary for this funding, the CapEx plan totally for the current year. Some short-term borrowings have been taken, not compromising on the liquidity of the balances. That is why finance cost is a bit higher this quarter. It was there in last quarter. Going forward, we again will be having a good surplus in hand. Our whole CapEx plan is already being compared. As mentioned, INR 1,031 crore is already outflow has been made. How much outflow has been planned now for the current year? Other income is since the other income mainly consists of the surplus being generated from the liquid balances, since we had a healthy opening balance of INR 940 crore, we start emitting good surplus by putting into the liquid schemes, which has come down. That is a temporary place. Ultimately, we want to put our money for business purposes. The investment is not the core activity. True. True. True. In Q2, the other income was INR 15.5 crore, and now it came to close to INR 3.8 crore. From Q4, again, can we see a INR 8-10 crore kind of a number, or is this kind of a number a normalized one one can look at? Something you can start seeing from next year. It is not in this quarter because this quarter, we have to wipe out this small borrowing what we have taken. The interest cost will come down. Finance cost will come down. The finance cost is again combination of actual borrowing as well as Ind AS accounting. Ind AS accounting also. Even for profit from associates, sir, for nine months also, significantly from INR 880 million, INR 500 million has came down. Why are? Sorry to interrupt. Yeah. The last one only. Interrupt you, Shravan. Okay. Supreme Petrochem results, as we have seen yesterday, are not to the expectation level what we expect. That is the result of that one. Okay. Okay. Thank you, sir. All the best. Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants, please limit your questions to two per participant. Our next question comes from the line of Praveen Sahay from PL Capital. Please go ahead. Yeah. Thank you for the opportunity. Can you give the capacity number for all the three verticals? As well as the kind of a CapEx you had done, what kind of a capacity you are looking for FY 2027 for all four verticals? For FY 2027, we will talk in April. Okay. So right now, if you can give the capacity. As mentioned last time also, piping, plastic piping will be 1 million ton. Thank you. Okay. Other three segments, packaging, industrial. It will be in April only. Total will be 12.2. There is no much addition into the other segment in any case. Okay. Okay. Got it. Got it. Second question is related to the cylinder. You had mentioned that the 200,000 of cylinders already executed and 200,000 of LOI you have. How much of the revenue you have generated and expected from the pipeline of LOI? No. I think we have mentioned in the declaration to store which also this 200,000 cylinder will generate revenue around INR 54 crore. Okay. So that's INR 54 crore you had already generated with the execution of a 200,000 cylinder of LOI. Correct. Correct. Correct. Okay. The similar amount you are expected to do again? Correct. Thank you, sir. I'll come in. Thank you. Our next question comes from the line of Utkarsh Nopany from Anand Rathi. Please go ahead. Yeah. Hi. Good evening, sir. My first question is related to the plastic product demand scenario. In the. Your voice is not clear, Utkarsh. Maybe. Can you just repeat the question? Not clear. Hello. Yes, sir. Am I audible right now? Yeah. Please. Yeah. Sir, what I wanted to understand on the demand side, in the opening remarks, it was mentioned that the plastic pipe demand is now coming back to the normalcy. In this context, I want to understand whether we meant that the channel has started refilling inventory or we are also seeing signs of demand improvement at end-consumer level in the January month compared to the previous December quarter. Now, normal demand has started going up, and you are right. That de-stocking was taken to a very extreme level. Now, because there is not much chance of some price going up also, the normal stocking has started and is going to continue. This is the peak demand period from January to June on the plastic piping system. We are now to the peak demand period. Sir, are we seeing signs of improvement in demand for plumbing and infra pipe in the January month compared to December quarter period, sir? We are finding improved demand. Okay. Sir, in the press release, it was mentioned that we are planning to put up a greenfield plant in FY 2027. Sir, can you please provide some more details regarding the location and the timeline of those new plants? Two plants. One is near Gwalior, that is Malanpur. Another plant in Bihar, near Patna. Okay. Sir, those plants are expected to become operational in FY 2027? They should be operational by FY 2028. Okay. Thanks a lot, sir. These are my questions. Thank you. Our next question comes from the line of Sonali Salgaonkar from Jefferies. Please go ahead. Thank you for the opportunity. Sir, I have only one question. PVC price has again, from point to point, from October to December, it's gone down by about 7% QoQ. I'm sure there would have been some element of inventory loss this quarter. Is it possible for us to quantify that? Very difficult to overall. Not only in PVC, the polymer price has gone down across the board. All the polymer: PVC, polyethylene, polypropylene, CPVC, all polymer prices have gone down. We believe in first nine months, company might have taken a hit of between INR 100 crore-INR 120 crore in nine-month operation, which resulted in our giving lower guidance of operating margin. Understood, sir. Sir, and just one more, if I may, in the remarks that Mr. Somani said about the higher interest cost, we said that we had short-term borrowings for the funding. Is this regarding the Wavin funding that we spoke about? Not waiving funding. No, routine funding. It was a very small amount, INR 132 crore, and now they are being paid. Understood. The interest cost is likely to normalize from Q1 FY 2027. Is that right? Yes. Yes. There is no doubt about it. Understood. Thank you, sir, and all the best. Thank you. Our next question comes from the line of Rahul Agarwal, Ikigai Asset. Please go ahead. Yeah. Hi, sir. Good evening. Thank you for the opportunity. Sir, just wanted to know your thoughts on the industry for the entire PVC industry. If you look at the nine months gone by, any comments could you offer on how the PVC industry would have grown and market share for Supreme? Because Supreme overall has grown 10% on volumes in nine months. What could be the volume growth for the industry and are smaller players losing market share? What is happening? Industry growth you can get from raw material producer, please. Sure, sir. Have we seen any? I can see the growth of the Supreme Industries, please. Yes, sir. I understand that. Anything on the smaller player side? Is there consolidation in the industry? We know our shares have gone up in plastic piping system. Yeah. Yeah. All right, sir. No problem. Thank you so much. Best wishes for the year. Thank you. Our next question comes from the line of Keshav Lahoti from HDFC Securities. Please go ahead. Hi. Thank you for the opportunity. Just a follow-up. As I have understood correctly, your interest cost, which has increased in this quarter to INR 120 million, possibly even reduced in Q4, and maybe from FY 2027 onwards, the quarterly run rate would be INR 450 million. Is this a fair assessment? You are right. Okay. How will the other income move, which has taken a, you know, is only INR 4 crore this quarter earlier, which used to be INR 15 crore? How will this number be in Q4 and in possibly maybe FY 2027, some sort of guidance? As I mentioned, this is not our core activity. It was deployment of surplus funds available in hand since we are using money for our businesses. It all depends. The activity for the business, how it comes, it all depends upon the availability of liquid funds in hand. Understood. What I'm trying to get at, is it due to working capital? Possibly there was some stretching of working capital that has led to possibly more utilization of funds in business in this quarter? Absolutely. Absolutely. For the current year, since the production capacities were being utilized optimally, the working capital has been increased, particularly on the inventory side, not on the receivables, which will come down once the fourth quarter is over. Understood. Got it. Earlier, you had sort of indicated your CPVC volume growth was 26% in H1. How has been the growth in this quarter? Total growth in nine months is 30%. Oh, 30% incline, 40% kind of CPVC volume growth in Q3. Quite good to hear that. Nine months, we have grown 30%. Got it. One last question from my side, sir. How is the channel inventory possibly? Can you compare how was the channel inventory in September and how has it moved in December? How is it moving now in January when PVC prices are rising, have started to rise? We do not know. We do not know. We only know that when they place the order, they are going following very vigorously that, "Please disperse the goods very quickly." When they place the order, they follow very intensively, "Please disperse very quickly. Okay. Got it. That is helpful. Thank you so much. Thank you. Our next question comes from the line of Sneha Talreja from Nuvama. Please go ahead. Thank you for the opportunity, team. When most of the questions are answered, I would just want you to get a sense in demand. How are we seeing on-ground demand at this point of time? How do you see it moving for various segments like PVC, CPVC, in case you can give some numbers there? No. Demand for plastic piping system, demand for every product is reasonably good now. The economy is doing well, and the product prices have gone quite low. The demand for housing, agriculture, infrastructure all are going quite well now. Yes. If at all we have to put some volume numbers in place, how much would be industry demand volume growth? It would be 8-9 or probably 10-12. Some sense there would be helpful. Listen, we told now that piping system will grow between 15-17%. It doesn't necessarily mean that our growth will be more than 16% this quarter. Sir, I was speaking more from the industry perspective. Industry growth, this is your outperformance over industry, but how much can industry be growing at a number? Check with the raw material producer, please. Sure, sir. Thank you. Check with the raw material producer. Thank you. Our next question comes from the line of Meet from Motilal Oswal. Please go ahead. Thank you, sir. Sir, I have one question regarding the capacity that you are setting up in FY 2027. Can we get the understanding how much capacity are we setting up across the two locations for the difference? Actually, we are planning to add 100,000 ton overall as of today. That will include all? That's the number we told to you in the month of April. Okay. This will include all the CPVC, CPVC, CPVC, and other value-added products as well? All product segment that we are dealing in, in plastic piping system. Plastic piping. Other product, other product also. With the as of today, this is a prior plan, but precise plan we will share with you in the month of April. Understood. Also, sir, in terms of the industry, one thing that we are hearing about is that China has lifted the export rebate that they were offering to their exporters. From the understanding that we are seeing, the prices of PVC can increase going ahead. Can you comment on that? No. Already, the international offers which are coming to India are already high. As I told earlier, it has gone down up to $580 CIF India. Now you cannot get any booking below $650. Prices from the bottom level have gone up by $70 in the last one and a half months. The trend has been reversed. Now, so many producers, because they were charging too much loss, many capacity were running at low capacity, and some plants were actually closed also. This is the way demand-supply balance is now started. People do not want to go on making polymer if they are losing money. Understood, sir. Thank you so much. Thank you. Our next question comes from the line of Tejas Pradhan from Citigroup. Please go ahead. Hi, sir. Most of my questions were already answered, but just as a continuation of the last query, going forward, how much increase would you expect in domestic PVC prices? I mean, I know you mentioned the $70 increase has already happened. Do you think this is the quantum of increase or further increase is also possible? If in such an uncertain atmosphere in the world, how can you forecast the price? We are incapable to. We only know very well now that the price erosion has been arrested. And price has started going up. Now, how much can go up? Very difficult to say. You can't forecast nowadays. In such an uncertainty, so many war taking place, so many locations, so much uncertainty. We are going to first look at volatility, uncertainty, complexity. Such a business atmosphere. But we know that all the polymer producers, not only PVC, other polymer producers also, some people close their plant permanently, some people simply close, some people put their plant on maintenance shutdown, some people are running at low capacity because they were all losing money. And you can't forecast about crude price. Today, crude is around $60-$64. Suppose crude price goes down to $40. Nobody knows what can happen to crude price. If that happens, then polymer price will go down for sure. If crude price can go down to $40, which happened in 2008, who can forecast nowadays? Very difficult to forecast. In such a complex world economy, you can't forecast, please. Sure. No problem. Thanks. Thanks. Thank you. Our next question comes from the line of Vipul Kumar Shah from Sumangal Investment. Please go ahead. Yeah, please. Hello. Yeah, please. Yeah. Is it possible to share CPVC volume for this quarter and nine months? Nine months, we have grown by 30%. Oh. You would not like to share the absolute volume number? Very classified information. Okay. Okay. Thank you, sir. Thank you. Thank you. Our next question comes from the line of Ronak Osthwal from Arihant Capital Markets Limited. Please go ahead. Yeah, ma'am. Thank you for taking my question. Can you tell us how the Industrial Products segment is doing? Because it was facing challenging, especially from the district side. Also, on the rural side, how the demand activity is there right now? This is our industrial segment, consists of three segments. Yes. Product division. Applied. Industrial component, material handling and cylinder. Yes. Material handling and cylinder are enjoying a moderate growth. We are getting good business of material handling products and also on the composite cylinder. The supply of component to automotive or to appliance sector, automotive sector is still doing better and encouraging. The appliance sector is in turbulence time, you can say. Whether it is the appliances of washing machine or the refrigerator or air conditioner, cooler or something. That industry, the models to which we are supplying the component, if they are doing fair or better, we are also in better shape, which is not the case in the current year. Industrial component to appliance sector is tough time and seeing a degrowth compared to previous year. Okay. Thank you, sir. On the rural side, how the demand is there right now, especially on the pipe segment? Demand is quite okay. Rural side, we are selling to our tarpaulin and our plastic piping system, and demand is quite okay. Okay. Thank you, sir. Thank you. Thank you. Our next question comes from the line of Priyanka from Value Prolific Consulting. Please go ahead. Hello? Yeah. Yeah, please. Yeah. Hi. I guess this Supreme Industries is growing so rapidly and have an ambitious plan for future. I just wanted to get the understanding about the succession planning to ensure the stability that the company will have in future also. They will do better than us. Can you please elaborate on that? Our two grandsons are also now involved in the business. Okay. We are confident that they will do better than us. Okay. Okay. Thank you. Thank you for your time. Thank you. Our next question comes from the line of Sahil Jain from Ambit Capital. Please go ahead. Yeah, please. Am I audible? Yes, sir. Yeah. Please, please. Hello. Yeah, please. Hello. Sahil, you are audible. Please go ahead with your question. No question, please. We can't hear anything. Hello. Sahil has been disconnected. We move on to our next question. Our next question comes from the line of Udit Gajiwala from Yes Securities. Please go ahead. Yeah. Hi, sir. Firstly, congratulations on a great set of volume growth for the quarter. I just wanted one follow-up. In the start of the year, you were mentioning that you were looking at a INR 12,000 crore top line for 2026. We agree that you have maintained your volume growth guidance. Could you throw some light on this number if you have revised that downwards? The only thing we revised is only the margin part. No, no. Even the top line, you see, polymer prices, since they are coming down, so instead of INR 12,000 crore, now we are maintaining INR 11,000-11,500 crore. Now, top line will definitely go down when the polymer price falls down between 12%-20%. Polymer price or top line is bound to go down now. No, sir. I completely agree. Just wanted to direct some sense. Yeah. That's helpful, sir. Thank you. Okay. Thank you. Thank you. Our next question comes from the line of Shaleen Kumar from UBS India. Please go ahead. Yeah. As I said, am I audible? Yeah, please. Good. I just want to understand. Today's PVC price is still below last quarter average PVC price. I hear you saying that demand is coming back, but your last quarter volume was also pretty solid. I just want to be sure, how are we certain of 200-300 basis point margin improvement that we're looking in the fourth quarter, right? What are the levers we have for that? Not from further. What is your question? Sir, we are looking at your margin guidelines for the next quarter. What? What? If better share, better volume, reduce our manufacturing costs. The erosion due to the falling price is arrested. It is being arrested now. All right. We won't get the inventory losses. Okay. Okay. Is it possible to quantify what kind of inventory losses we had in third quarter? For the overall nine months, I think the figures have been given between INR 100 crore-INR 120 crore. Yeah. You see, the prices are so falling continuously. It's really difficult to quantify on a month-to-month, quarter-to-quarter basis. That's why we have estimated for a period of nine months what is the impact. Look, fair enough, sir. If you put them equally, that basically explains probably 100-150 basis point margin compression. Right? Yeah, for nine months straight, it is years. Yeah, yeah. Right. That's something which we believe that we can gain back if the price remains stable. Correct. The fourth quarter, we do not envisage any margin loss on the account of the inventory losses. Going forward, you do not know. Predicting any price movement is very difficult. Please believe that there is no price erosion now. The users were investing money, and this is changing time now. Is the price enough for you to improve the margin from here? Yes. Prices are always passed upon. There is no issue on the margin. Once you are whatever inventory you are carrying, if the value is getting eroded, then you are selling at a lower price, lower margin. Fair enough. Fair enough. All right. Yeah. That's it for my side. Thank you so much. Thank you. Thank you. Our next question comes from the line of Arun Baid from ICICI Securities. Please go ahead. Yeah. Hi, sir. My question was, we have a capacity of 1 million tons of pipe by the end of this financial year. When do you expect it to be utilized fully, by which year? Normally, if I utilize 70%, we should be happy. We should expect that we should be able to sell 70% capacity next year. Thank you. The second thing is, with regards to assuming there are no more PVC price cuts, which is not expected, will we go back to our historical range of 15%-16% margins, assuming there are no more price fluctuations at least on the downward trend at least? 15%-16% margin, I don't recall. 14% and up to 15% is the normal margin, normal scenario. We expect to go to. Operating leverage will play out now because our volumes will go up. Still, you're expecting around 15%? We will decide, and we will talk to you in the month of April for next year, please. No, no, no, sir. I'm not talking next year. I'm just saying, assuming PVC doesn't correct from here anymore and you have the volume growth which you expect to come through, will we be doing 15-16% margin in that case? Yeah. For the quarter, yes. Because of the higher volume, our manufacturing cost, our emissive cost gets spread on the larger volume. That's how for the year, we are targeting 13.5-14% margin. Yeah. Actually, my question was for a longer term, not for the quarter. That's why I'm saying for a longer-term perspective, in the normal scenario, it is 14%-15% is the operating margin we expect. Now, depending on the new product launch, depending on the product mix, definitely, we are trying to improve it further. Whether it's a quarter percent, half percent, it all depends upon the plan of the new product launches and success. Okay. Okay. Thank you. We are happy to say that every quarter, we are increasing the share of value-added product. Yes, sir. Exactly, sir. That's why I can say that things are looking going better. Thank you. Thank you. Okay. Okay. Thank you. Thank you. Our next question comes from the line of Sahil Jain from Ambit Capital. Please go ahead. Hi, sir. Am I audible? Yeah, please. Yes, you're audible. Yeah. Thanks for the opportunity. I have two questions. I just wanted to know, what is the current capacity of PP Silent Pipe System, and what is the pricing on that? Capacity is 3,000 tons per annum. Okay. Pricing depends on the various, there are hundreds of products in the system, fitting and pipe altogether. Every product will be a different price. Price varies a little bit where it will. It is a premium product. It is a premium product, and best in premium product only is marketed. Understood. Second, on the O-PVC segment, what is the expected capacity planned, and what is the CapEx outlay for the same? No, currently, we have got already capacity to produce around 8,000 tons annually. Okay. Currently, it is not utilized fully. And. Buying from government department, central government is very slow for water supply. We believe that demand will start picking up now because we are getting many inquiries now onward. We hope that we'll be able to sell a good portion of the capacity next year. We are not looking to add capacity on it? Once this capacity is sold out, then we definitely will add. Okay. Okay. Understood. Thanks. Thanks. That's all from my side. Thank you. Our next question comes from the line of Yogesh Mittal, an individual investor. Please go ahead. Sir, thank you for the opportunity. Sir, I just wanted to know if it is possible to throw some light on PVC pipes versus the metal pipes like the GI pipes and cast iron pipes. How does the interplay happen for the demand when the prices change in between them? How is the demand in terms of what is the market? What is the general market trend in terms of liking for the means the GI pipe versus the PVC pipe? The application where PVC pipe we use, metal is no substitute. PVC pipe, there is no substitute for metal. Metal is very expensive, too much weight, too short life. Plastic has got very, PVC, good pipe has got very good life. Right, sir. Earlier, the cast iron pipe are being replaced by PVC, and most of the places are replaced. Cast iron pipe, you don't see much in use now in India. Right, sir. Thank you for your answer, sir. Thank you. Thank you. Our next question comes from the line of Shaily Jain from Dolat Capital. Please go ahead. Hello, sir. Thank you for the opportunity. Sir, most of the questions have been answered. We just wanted to have an idea about what is the gross debt and cash number for us in nine months at the end of nine months? As of 31st December, the net debt is INR 132 crore. Okay. The gross debt? No, this is the total debt. What I'm saying is. Okay. Once the net debt is this, net of the surplus balance available. Net of, yeah. 132 crore. Okay. Sir, it would be great if you could just provide us with the data inventory and payable number. Pardon? Data inventory and payable. Data, inventory and payable, working capital. Inventory, you can say it is INR 1,900 crore. Okay. Receivables about INR 568 crore. Mm-hmm. Payable about INR 1,100 crore. 1,100 crore. All put together, all liability. Understood. Sir, as we have indicated that our finance cost will go down, how are we looking at debt in FY 2027? No, no. We want to remain debt-free. That is our commitment, and that will. We will be debt-free on 1 April this year, on 31 March only. Okay. This year. We will have a good amount of cash plus in our books on 31 March 2026. Sir, what would be our CAPEX number for FY 2027? April, we will discuss. Okay. Okay. Sure, sir. Thank you. Thank you so much. Thank you. Our next question comes from the line of Varun Jararia from 360 ONE Asset. Go ahead. Yeah. Hi, sir. Thank you for the opportunity. Sir, just wanted to have some sense on the packaging product division, how is it progressing? What is the demand like for that segment? Packaging segment, you are protective packaging. Protective packaging only. Yeah. Protective packaging, do not remember. Volume growth. Yeah. Protective packaging is growing by 10% in volume, and margins are quite double digit. This is for the full year, you are saying? For the quarter also, for the full year also. Okay. The demand is good there. I mean, that's not a problem there, right? Demand is good. I mean, we are offering many customized solutions, fabricated products. Hello? Yeah, please. Yeah. Secondly, sir, on the PVC window business, could you give us an idea how is it progressing, in terms of value, volume? That is part of the piping division, right, if I'm not wrong? As of today, we are separate division. Okay. We start supplying in the month of next month. I missed we'll be selling windows only, no profile. We anticipate we may be able to produce around 250,000 windows every year. It will take some time to sell the capacity. Once the capacity is sold, we are going to plan to go on expanding. This is in counted in INR. Sir, what will be the revenue potential from this business? In excess of INR 300 crore at full capacity. Currently, how much are we doing in these circumstances? We will start sales from next month only. Okay. As of now, it's not contributing any revenue? Nothing. Nothing. Nothing. Okay. Okay. The non-pipe segment, only packaging, you're expecting a growth. For industrial, you don't expect any growth for this quarter or maybe for next year as well? We expect growth in material handling. We expect growth in furniture. We expect growth in protective packaging. Every segment, we are expecting growth except industrial component business. Okay. Okay, sir. Thank you, sir. Any capacity expansion that you're taking in packaging that was planned for it too? We are planning next year. Okay. Okay. Okay, sir. Thank you. Thank you. Our next question comes from the line of Praneeth, an individual investor. Please go ahead. Praneeth, you have been unmuted. Please go ahead with your question. No question. You can skip to the participant. Hello? Praneeth, please unmute your line and go ahead with your question. Hello? As there is no response, I would now like to hand the conference over to management for closing comments. We are thankful to all the analysts who raised the question. We were impressed by the very analytical question raised by them. We thank all of them for the time taken to ask several questions to clarify. Myself and my colleagues thank all of them. Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you very much.