All Time Plastics Limited Earnings Call Transcript, Nov 5, 2026

Ladies and gentlemen, good day, and welcome to All Time Plastics Limited Q2 FY '27 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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. Kailesh Shah, Chairman and Managing Director, for his opening remarks. Thank you, and over to you, sir.

Kailesh Shah:

Thank you. Good afternoon, everyone, and thank you for joining us on our Q2 and H1 FY '27 earnings call. Joining me on call today are Nilesh Shah, Whole-Time Director, Manish Gattani, our CFO. We appreciate your continued interest in our company and your time today. Let me begin by briefly explaining the external macroeconomic context along with our Q2 and H1 FY '27 performance. Q2 FY '27 was among the most challenging quarters in the company's history. At the time of our last call in August, we anticipated a gradual easing of the West Asia situation. Instead, the conflict escalated during the quarter and still remains unresolved. The impact on our business was felt on 2 fronts. First, average prices across our key polymers rose by 40% to 45% and prices that had begun to stabilize in Q1 of FY '27 moved sharply higher once again compared to Q4 of FY '26. Second, container shortages and port congestion disrupted both raw material inflows and export shipments, most acutely in mid-August and September. Against this backdrop, demand for our products remain resilient. Revenue from operations for Q2 FY '27 grew 18% year-on-year and 8% sequentially to INR174 crores. Volume of polymers processed increased by over 9% sequentially to 6,910 metric tons. For H1 FY '27, revenue grew 9.7% to Rs. 335 crores. The margin performance this quarter was impacted by 3 principal factors. The first relates to inventory. During Q1, our margins were supported by low-cost raw material procured ahead of the conflict. That inventory has since been fully consumed, and we were required to procure at substantially higher prices to service orders that had already been confirmed. The second relates to the timing of price recovery. On our Q1 call, we indicated that the benefit of our price revisions would be visible in Q2. Those revisions were implemented as planned. However, a fresh wave of input cost inflation followed after orders had priced. Export prices are fixed at the time of order and can be revised only on new orders. We, therefore, honored our confirmed order book at agreed prices.

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All Time Plastics Limited November 05, 2026 The third reflects a deliberate commercial decision. We have consciously absorbed part of this cost increase to protect the long-standing customer relationships. We believe that safeguarding programs built over many years is in the long-term interest of the company and its shareholders. Most of the gross margin decline is because we did not pass on the full increase in raw material costs. Our fixed cost has also increased relatively to H1 FY '26. This is on account of labor and staff costs at our new Khatalwada and Bamboo facilities, which we are carrying ahead of our full utilization. As capacity utilization improves, we expect this cost to be absorbed over a larger volume base supporting the operating leverage. Now coming to the working capital. The increase in working capital is temporary, and our inventory carries no slow-moving stocks. Outbound shipping delays significantly increased our finished goods inventory in September. At the peak, more than 120 containers for our largest customer were awaiting shipments, and we even suspended production at our Silvassa facility for 3 days owing to storage constraints. Shipments resumed in October. The backlog of 40-foot containers for our largest customer has since then reduced from 126 to 32 containers and continues to clear steadily, with the corresponding revenue flowing into Q3. We also deliberately maintained higher raw material inventory given continued uncertainty over supply time lines. The increase in receivables was largely attributed to changes in banking arrangements of our 2 key customers, which temporarily delayed payments. Those collections are now being received. Our customer partnerships continue to deepen. We are sizably increasing our business with one of our U.S. customers, where several products from our stationery category now form part of their core assortment. This is a strong endorsement of our design and product development capabilities. The United States contributed approximately 10% of revenue this quarter compared with approximately 19% in Q1. This reflects the timing of shipments rather than any loss of business. Ours is a project-driven business and the geographic mix in any single quarter is influenced by order cycles. Several significant U.S. orders are scheduled for shipment in the coming quarters. The European Union contributes approximately 59% of revenue, and the United Kingdom, approximately 10%. The sales in October have been encouraging. Now coming to our domestic business. Our domestic business is emerging as a meaningful growth engine. On our Q1 call, we explained that domestic revenue was flat as we undertook a complete reset of prices with our customers. That reset is now yielding results. Domestic revenue for the quarter grew approximately 36% sequentially and 27% year-on-year, increasing its share of revenue to 19.5% from 15.5% in Q1. We added 36 new customers during the first half of this year and introduced a new Hydration range of bottles, jars, alongside launches of many other product categories.

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All Time Plastics Limited November 05, 2026 In October, we piloted a direct-to-consumer channel through our own website. We intend to extend the D2C channel of selected products supported by a targeted social media program. Domestic demand remains healthy, and we remain committed to our target of 30% to 35% domestic growth. The domestic business diversifies our exposure to global supply chain and geopolitical risks and aligns with our long-term plan. And also, it will support our overall margin profile going in future. Now coming to our capex program. We have continued to invest in a disciplined manner. We have added blow-molding capability within our existing plant. This enables us to manufacture hollow, seamless products than traditional injection molding what we used to do, including bottles, jars, containers in various materials like PP, PET, PETg and Tritan with capacity that can be scaled in line with the demand. At Khatalwada, we have also initiated SCADA-based real-time machine monitoring to enhance efficiency and uptime. This is one of the first of its kind, which will slowly develop and become a good tool for monitoring our processes. Our new 14 machines, injection molding machines, adding approximately 1,500 tons capacity, are expected to arrive in December '26, taking our installed capacity to approximately 42,500 metric tons. Further capital expenditure will be calibrated to demand. We remain prepared to add capacity, but we'll do so on a project-to-project basis, deploying the appropriate equipment for the confirmed programs. Let me now provide an update on our Bamboo business. Our Guwahati Bamboo facility operated through our wholly-owned, subsidiary, All Time Bamboo Private Limited, is fully installed. Commercial production will commence in mid-November 2026, with sales beginning in Q4 FY '27. We expect revenue from this facility in Q4 of FY '27. The split-processing model is now in place with engineering bamboo boards produced at Guwahati and value-added engineering undertaken at Khatalwada. Our memorandum of understanding with North East Cane and Bamboo Development Council under the Ministry of Development of North East Region provides a structured policy support entry into this ecosystem. Early customer responses have been encouraging, including acceptance of the color and finish of Indian bamboo. This gives us confidence in the potential of this sustainable new category. I'm also pleased to share that the company has received an ET Now Excellence in Compliance & Sustainability Award 2026. In the near term, our priorities are threefold: resetting the prices across all customers, accelerating growth in our domestic business and bringing new capacity and new categories, including Bamboo and Hydration, to full contribution. For FY '27, we continue to target our revenue growth of 15% to 20% and increase capacity utilization. The fundamentals of our business firmly remain intact. Our scale and automation, our design capabilities, our long-term customer relationships, our capacity headroom and a strong balance sheet with a debt-to-equity ratio of 0.15.

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All Time Plastics Limited November 05, 2026 The EU-India trade agreement, the evolving U.S.-India trade framework and the continued diversification of global sourcing towards India remains an important structural -- gives us important structural tailwind to us. We remain confident in the long-term strength of our business. On the occasion of Diwali, I extend my warm wishes to you and your families for a joyous festival season and a prosperous year ahead. I would now request Manish to take you through the financial performance in detail. Thank you very much. Manish Gattani:

Thank you, sir, and a very good afternoon to everyone. I will now take you through our financial performance for the quarter and half year ended 30th September 2026. All figures are on a standalone basis. Coming to our Q2 FY '27 performance. Revenue from operations for Q2 FY '27 stood at INR174 crores. This represents growth of 18% over INR147.4 crores in Q2 FY '26 and of 8% over INR161.1 crores in Q1 FY '27. With volume broadly stable year-on-year, the growth was driven primarily by higher realization, reflecting raw material pass-through and product mix. Gross profit for the quarter was INR59.7 crores with a gross margin of 34.3% compared with 36.2% in Q2 FY '26 and 39.5% in Q1 FY '27. Raw material costs increased to approximately 66% of revenue from approximately 60% in Q1. As Kailesh bhai highlighted, the sequential decline in gross margin was primarily due to higher raw material costs, which could not be fully passed on to the customers on orders already confirmed. Employee costs were INR17.9 crores compared with INR14.4 crores in Q2 FY '26 and INR17.1 crores in Q1 FY '27. Other expenses were INR28.1 crores compared with INR22.7 crores in Q2 FY '26 and INR23.4 crores in Q1 FY '27. The increase was driven principally by variable costs and sales promotion costs. EBITDA for the quarter was INR13.7 crores with a margin of 7.9% compared with INR16.3 crores and 11% in Q2 FY '26 and INR23 crores and 14.3% in Q1 FY '27. Profit after tax was INR4.2 crores, in line with Q2 FY '26 with a PAT margin of 2.4%. Now turning to our H1 FY '27 performance. For H1 FY '27, revenue from operations grew 9.7% to INR335.1 crores from INR305.4 crores. Gross profit was INR123.3 crores with a gross margin of 36.8% compared with 37.8% in H1 FY '26. EBITDA was INR36.7 crores with a margin of 11% compared with INR45 crores and 14.7% in the corresponding period last year. Profit after tax was INR16.3 crores compared with INR17 crores with a PAT margin of 4.9%. I will now take you through our key operating metrics. Volume of polymers processed in Q2 FY '27 was 6,910 metric tons. This compares with 6,323 metric tons in Q1 FY '27, an increase of 9% and 6,864 metric tons in Q2 FY '26. For H1 FY '27 volumes were 13,234 metric tons compared with 14,264 metric tons in H1 FY '26. Capacity utilization improved to 67% in Q2 from 65% in Q1.

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All Time Plastics Limited November 05, 2026 Our installed capacity currently stands at approximately 41,000 tons. Moving on to our balance sheet and cash flow position. Our balance sheet remains robust. As of 30th September 2026, net worth stood at INR629.5 crores. Gross borrowings were INR94.6 crores compared with INR80.3 crores as of March 2026. And the debt-to-equity ratio was 0.15x. Cash, balance -- bank balance and liquid investments amounted to INR82.7 crores. Working capital increased for the reasons outlined by Kailesh bhai. Inventories rose to INR120.2 crores from INR68.6 crores in March '26, principally on account of finished goods held back by shipping delays, price increase and higher raw material buffers. Trade receivables increased to INR100.1 crores from INR74.9 crores, but the number of days have reduced from 50 days to 46 days. Our net working capital cycle stood at 62 days compared with 60 days in Q1 FY '27 and 57 days at the end of FY '26. Consequently, net cash flow from operating activities for H1 FY '27 was negative due to higher working capital investment. Capital expenditure during the half year was INR24.3 crores, primarily towards machinery in the Khatalwada facility, and capital work-in-progress stood at INR46.3 crores. We expect a substantial portion of the working capital buildup to unwind during H2 as the shipment backlog clears and collections are realized. We expect operating cash flow to turn positive as this happens. To conclude, Q2 was a difficult quarter from a margin perspective. The underlying drivers, however, are largely external and partly timing related. Demand in our order book remains intact. Price revisions are underway and our new capacity domestic business and bamboo verticals are well positioned to contribute in the second half. On this festive season, I would like to wish all of you a very happy Diwali. I would now request the moderator to open the line for questions. Thank you. Moderator:

Thank you sir. The first question comes from the line of Swapnil Gupta with White Pine Investment. Please go ahead.

Swapnil Gupta:

My question is relating to inventory. So inventory stood at about INR120 crores as of Q2 versus usual inventory level of INR70 crores, INR80 crores. How much of this comprises of finished goods?

Kailesh Shah:

A little louder. Can you start the question again and a little louder, please?

Swapnil Gupta:

Yes. Yes. My question is related to inventory. So versus -- it is at INR120 crores currently versus the usual level of INR70 crores, INR80 crores. How much of this comprises of finished goods expected to be dispatched and recognized as revenue in Q3?

Manish Gattani:

Out of that, around INR8 crores is of finished goods, which is to be recognized in the October month. That was sales-in-transit. So that will be recognized in October.

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All Time Plastics Limited November 05, 2026 Swapnil Gupta:

Okay. Also, given higher cost of raw material inventory we have, how should we expect the gross margin to trend over the next coming quarters?

Manish Gattani:

As of now, the raw material prices are at that level and the orders we are having, the export orders, the rates are confirmed. So the margins will increase once the raw material prices go down. We are negotiating with the customer to increase the prices. And once that is done, then the margin will definitely increase. For domestic market, we are going to increase the prices. That is in process. So it will definitely increase our gross margin.

Swapnil Gupta:

Also, sir, how much is the margin differential in domestic and export gross margin I'm talking about?

Manish Gattani:

The gross margin in export and domestic is -- the difference is around 12% to 13%.

Swapnil Gupta:

Okay. Also, lastly, on the container movement. So are you seeing an improvement in the container availability and logistics in October and currently in November?

Kailesh Shah:

See, the container movement has improved significantly because the customers also faced these challenges. So the backlog, which was about 126 containers has now gone down to only 32 containers as on date. And now the export outbound shipments are moving nicely. The inbound shipments, the improvement is there from past, which was -- had gone up to 65, 70 days for inward material to come in. It has now reduced to around 50 days. But our historic inventory inward arrival used to be 30 days, which is currently at 50 to 55 days. Now there, we will have to keep some stock in our system in the pipelines to secure that materials are available in time.

Swapnil Gupta:

Okay. Understood. Sir, lastly, on the crude oil prices declining, are you seeing any improvement in demand? Or do you expect to support your volume growth in the coming quarters?

Kailesh Shah:

Your voice just cracked. I don't know the problem in line. We couldn't hear the question properly again.

Swapnil Gupta:

I'm asking with the crude oil price declining, are you seeing any improvement in demand? And do you expect this to support the volume growth?

Kailesh Shah:

Yes. With the crude going down, 2 things are connected. The war impact also will impact -- the crude will impact the polymer cost for sure and the shipping cost because in our raw material price, there's a big content of shipping cost, which has increased for our suppliers apart from the crude cost. So crude cost is one part of it, but the shipping cost is actually taking a larger part of the cost increase for our raw material suppliers because they have to transit via land, road, ship, ports and that is why the transit delays are happening. So we will see a double impact on both businesses.

Nilesh Shah:

The volume growth will come in.

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All Time Plastics Limited November 05, 2026 Kailesh Shah:

Yes, it will come in.

Moderator:

The next question comes from the line of Ananya from Thinqwise Wealth Managers.

Ananya:

Sir, can I get sales volume in Q2 and in H1?

Manish Gattani:

Yes. I will give you the sales volume. In Q2, the sales volume was 6,400 metric tons. And in Q1, it was 6,100 metric tons, total was 12,500 metric tons.

Ananya:

Okay, sir. So in this quarter, about 500 tons is what you couldn't sell, right?

Manish Gattani:

Sorry, I didn't get you.

Ananya:

Sir, if you've produced 6,900 tons and we sold 6,400 tons 500 tons is the differential.

Manish Gattani:

So because of that container issue and a lot of things so we could not dispatch. It was sales in transit also. A lot of material was in sales-in-transit. It got reversed because the BL was not issued. But now that has been done in the October month, so the sales is added in October.

Ananya:

Okay, sir. So 500 tons should come in Q3 in addition to what you produce in Q3?

Manish Gattani:

Yes. In addition to what we produce and this will be of Q2, which will come in Q3.

Ananya:

Got it, sir. And, sir, you said INR8 crores was finished goods in this quarter. Is that right?

Manish Gattani:

No. Finished goods were around -- more than that. What INR8 crores I told is in-transit sales, which will be in this month. So finished goods was INR42 crores in the Q2 -- end of Q2. Yes. So INR42 crores was finished goods stock and INR8 crores -- out of that INR8 crores was sales in transit, which we have booked in October.

Ananya:

Okay, sir. Sir, I'm just asking because the INR15.4 crores in the P&L, that is changes in inventory, should I take that to mean that it is sales booked in Q2, but you couldn't -- the revenue from that couldn't accrue in this quarter. So it will come in Q3. Is that the right?

Manish Gattani:

Out of INR15.4 crores, INR8 crores is what the sales is to be booked in October and INR7 crores is towards the extra production, which we have done. So that also will come in Q3. The sales will come in Q3.

Ananya:

Okay, sir. Got it. Sir, last question. Can you share your contribution from largest clients in this quarter?

Manish Gattani:

59%.

Moderator:

The next question comes from the line of Nirali Gopani with Unique PMS.

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All Time Plastics Limited November 05, 2026 Nirali Gopani:

So sir, firstly, on the margin point. So if I look at Q3 and Q4, will there be some pricing increase, which will eventually lead to some gross margin improvement or Q3 will be somewhere near where Q2 was?

Kailesh Shah:

No, we will get some increase possible because we are already changing prices, and we are discussing with customers, but not at the historic levels for sure, but we will definitely be better.

Nirali Gopani:

Okay. Because in Q2, so when you give the sales volume, your volume growth was itself 5% and the pricing growth was only 3%. So you will see some of that happening in Q3 and Q4.

Kailesh Shah:

Yes.

Nirali Gopani:

Okay. And also, you have mentioned about this U.S. customer, where you are doubling the revenue with that customer. So how sizable will be this customer? And what led to this the significant growth that we saw with that customer?

Kailesh Shah:

No. The articles, what we were saying, it will be nearly doubling. So we are looking at a program which now goes into a core range, which was only a promotional range of those activities of stationery articles. Once any product goes into the core range, you get a continuous business year-on, year on-year and every monthly cycles. So that way, it will increase the sales for that customer.

Nirali Gopani:

Okay. So currently...

Kailesh Shah:

We are working with them for new products also in different categories within their company also. So that will also give us a good business there.

Nirali Gopani:

Right. And you also have mentioned about a lot of new products being launched in H1, including Hydration. So this will be, again, for export and domestic market both? How do you see the growth?

Kailesh Shah:

Domestic market. Primarily, it is domestic market, jars and bottles because these are highvolume articles, a bit difficult to ship out in terms of plastic bottles. So this will be more of domestic business.

Nirali Gopani:

Okay. And you are confident that these newer products in domestic market will also give us higher margins, which our own brand does, just from a competitive intensity point of view.

Kailesh Shah:

There is -- competitor intensity is very severe in domestic business, but we do think that All Time will have a leverage in terms of its product presentation, quality and the distribution network as we are increasing, we'll see some positive actions on that side for sure. If you see the contribution overall from 15% has become to about 19% of our domestic business. And this, as per our long-term goal and plan, what we have discussed, we are moving in that direction only for having that in future, we do not have such kind of situations, and this becomes one more leg to stand.

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All Time Plastics Limited November 05, 2026 Nirali Gopani:

Right, right. And with these 14 new machines coming in, so will we reach our -- like whatever capacity we have decided? Or is there anything further happening in Q4, also any new capacity or 42,500 is peak for the moment?

Kailesh Shah:

42,500 will be peak for the moment once these machines arrive. That will be the peak for us once these 14 machines arrive in current month.

Nirali Gopani:

Right. And lastly, what kind of capex do you see in bamboo? Like you have mentioned that INR25 crores, INR30 crores of revenue in calendar year '27. But beyond that, how do you see the capex and the revenue growing on that side?

Manish Gattani:

Capex will not be that much because we have already done the capex, most of the capex we have done. The revenue can peak up to INR60 crores - INR65 crores with the capex what we have done. So additional capex we will be doing once we achieve at least 50% of the utilization because the capex will not take that much time to add the machine and capacity. Once we reach that 50%, then will add.

Kailesh Shah:

Off course the new facilities, we are planning to start off the new facility. All machines are getting commissioned -- nearly commissioned. Officially, we will start off on November 16. We have our pooja and then we kick off that plant.

Moderator:

Sorry to interrupt. Nirali, ma'am, you please join back the queue for further questions. The next question comes from the line of Akshay Chheda with Canara Robeco.

Akshay Chheda:

Sir, just one question. Sir, how are we looking at the volumes for FY '27 in the plastic products side? Because in the opening remarks, you commented about 15%, 20% revenue growth and there's a lot of inflation that is happening in FY '27. So are we looking at a flat volume year-onyear? Or how are we looking at it? Because there will also be some contribution from Bamboo in the fourth quarter. So just some color on the volume side, sir?

Manish Gattani:

Yes. So we are looking at least at 7% to 8% volume growth, production growth, at least 7% to 8% this year.

Akshay Chheda:

Okay. Sir, this implies that the second half outlook or the visibility for you is very strong. Is that the right understanding?

Manish Gattani:

Second half visibility is very strong. Orders are also there. So the thing is supply chain should not be a problem now. It had a lot of problem in Q2. So if proper, then definitely, we are going to achieve what we are seeing.

Moderator: Harshit:

Next question comes from the line of Harshit with Flair Investments. I just have 3 questions. Sir, does the capacity utilization guidance remain -- what is the capacity utilization guidance remain, sir? Will it hit 75% by Q4?

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All Time Plastics Limited November 05, 2026 Manish Gattani:

No, it will not be 75% in Q4, but definitely -- we are looking at 75% utilization by Q2 of '28.

Harshit:

By Q2. Okay. Okay. Sir, are we gaining incremental business from China or Indian competition, sir?

Kailesh Shah:

Mostly, they are -- most of our export business is coming from China. And the domestic businesses are coming from our network distribution increase and our customer base increase, what we are doing now in a conscious manner.

Harshit:

Okay. Okay. Sir, what is the difference in the freight prices for our customers in shipments from JNPT versus Chinese ports? Is it favorable to us versus competition, sir?

Kailesh Shah:

For the inbound raw material cost, China has some distinct advantage because of their internal - they have not been impacted so much from the oil prices and the other things. They had their own setup. So we currently have a little bit disadvantage. But generally, the advantage is to the tune of about $100.

Harshit:

$100, okay. Of the freight charge. Okay. Okay. Sir, with U.S. customer order is double, sir? FG inventory at the end of the quarter, sir?

Kailesh Shah:

We are saying double in the sense, more or less, it will increase because the category has been added. It's one of our larger customers in U.S.A. whom we are currently servicing.

Harshit:

Okay. Is it double, sir?

Kailesh Shah:

Double in the sense. It's a low base customer currently. It's not very, very high base customer, but then sequentially, there's going to be a spend up. It's a good amount, which we will be able to close at the end of the year. And we see as a customer growth potential, what we are seeing historically when customers join with us, they are increasing at a rapid rate.

Manish Gattani:

So we are expecting that this customer will be our second largest customer by end of FY '27.

Harshit:

Second largest. Okay, okay. And the finished goods inventory at the end of this quarter, sir?

Manish Gattani:

Finished goods inventory was INR42 crores, out of which INR8 crores was sales-in-transit.

Harshit:

Yes. Okay. Okay. Sir, last question. Bamboo FY '27 top line, how much can we expect, sir?

Kailesh Shah:

Around INR60 crores is what we are projecting with the capacity what we have currently installed.

Harshit:

Okay. And the last question is the worst is behind us, sir?

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All Time Plastics Limited November 05, 2026 Kailesh Shah:

I hope so. How can I predict. But mostly, yes, because of the things what we saw in the news 2 days back, we hope that a lot of things which are uncertain will get some stability, and we hope for a positive turnaround.

Moderator:

The next question comes from the line of Nishita with Sapphire Capital.

Nishita:

Am I audible?

Kailesh Shah:

Yes, a little louder, please.

Nishita:

Yes. So I just wanted to understand more on our EBITDA margin front. So in this quarter, I understood the reasons why we have had such low margins. And for H1, we've done overall margins of 11%. So do you think from this 11%, can we achieve better margins in H2 because you are also going to take price increases?

Manish Gattani:

EBITDA margin will definitely increase with the volume we are projecting and we are expecting. So the EBITDA margin going lower is mainly due to the Khatalwada and Bamboo facility additional fixed cost. So now the fixed cost is not going to increase with the volume increase. So the EBITDA margin will definitely be much better in H2.

Nishita:

Right. So for overall, can we expect the margins to stay in the range of 12%, 13%...

Manish Gattani:

Yes. If things normalize -- it will be better than that. We expect that it will be better than that. But yes, that is possible.

Nishita:

Okay. Okay. And my next question is on our bamboo plant. So you mentioned that we'll do capex once we reach 50% utilization. And from your guidance, it seems like we'll reach 50% or more than 50% utilization in FY '28 itself. So like do you have -- if you can give some sense on how much capacity are we going to increase further in our bamboo facility?

Kailesh Shah:

So we -- currently, we will double. We will double it once we take the next step because a few machines will have to be added. Some of the machines already we have as per the capacity for extra increasing. And we may also look at how to run more hours in terms of shift optimization because the wood business, yes.

Nishita:

Right. So you mentioned that the expansion is not going to take that long. So can we expect this facility to double by end of FY '28?

Kailesh Shah:

Yes, we are expecting that for sure.

Manish Gattani:

And it doesn't require that much capex as we are currently in the rented premises. So the capex will also be lower and as well as the lead time will also be lesser.

Nishita:

What will be the capex amount, if you could quantify?

Manish Gattani:

So we are expecting around additional INR10 crores to INR12 crores in machinery.

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All Time Plastics Limited November 05, 2026 Nishita:

INR10 crores to INR12 crores. Okay. And what is the total capex that we've done till now in the bamboo facility?

Manish Gattani:

Around INR18 crores we have done. We are expecting to do it to INR20 crores total.

Moderator:

The next question comes from the line of Sahil Doshi with Thinqwise.

Sahil Doshi:

Just Kailesh bhai and team, just I understand the volatility regarding crude and shipping and containers, sir, we were guiding for 30,000 volume for this year in Q1. And it seemed like it was a contracted business. As such, we generally have a visibility for a year. Now we seem less confident about it. So could you just talk about what's really changed over this course of time? Is there some demand headwinds we are seeing? Or what is really happening? Similarly, sir, on Bamboo, I think our projections now at least the presentation says it's for CY '27, the INR25 crores to INR30 crores versus where we were expecting this project to ramp up a little higher. So just if you can give us a little more qualitative as well as this thing directionally, what's really happening, it will really help, sir.

Manish Gattani:

So with the current order book in hand, we are expecting to at least do 15,000 metric tons in the coming H2. The reason for first -- H1, the lesser productivity was due to the supply chain disturbance in Q1. So there, we lost the production because of all this disruption. But now with the volume, we are expecting minimum 15,000 metric ton production in H2. As for bamboo, Kailesh bhai can guide.

Nilesh Shah:

So for bamboo, the journey is more of a discovery, which we have already done and the domestic business as well as the other business with IKEA in the domestic market are already through for us. Moving forward, we would start investing into U.S. market for sales. And European market would take a bit of a time of a couple of months for our FSC certification and all to go done. So we've been just waiting for that in time to go. So the ramp-up will be in that speed.

Sahil Doshi:

Sure. No, sir, please help. Just qualitatively, I want to understand, is there any demand headwind? Are we less opt -- is that one of the things which we are seeing in both the businesses or...

Kailesh Shah:

I would say that on the demand side, there could be some headwinds come in because of some kind of price when the prices go beyond a certain point, you do get some headwinds in terms of certain articles and ratios. So -- but it is not something which we are seeing very dramatically happening. Otherwise, our machine utilization would not have improved or capacity is not booked correctly. There could be in terms of kg, we -- I have explained also in the past that sometimes products of higher kg realization when they are being produced, the tonnage goes up in our factory. But on the same machine, we can also run products which are lighter in weight because it requires that machine.

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All Time Plastics Limited November 05, 2026 So then the tonnage can come down, but the kilo rate realization goes up for that. Those kind of products. So there are some -- on bamboo side, we don't see up to now anything which we have found that there is resistance or something like that. But we are being cautious when we are discussing all these points because the external situations are not that stable, and we don't want to comment on anything where unnecessarily it becomes a problem. Sahil Doshi:

I appreciate that, sir. And secondly, on the pricing bit, sir, what is the kind of gap today versus our procurement price versus the kind of price hike which we've got? And at what level does that neutralize or just give you some kind of a visibility...

Kailesh Shah:

We've been able to take -- see, IKEA is a rollover, our largest customer is a rollover, which you are aware of. For domestic business, we are taking a gross change in the second week of this month, we are trying to roll out that change. And for other customers, we would have been able to pass only 50% up to now.

Sahil Doshi:

50% of the 40% to 45% increase, which we've seen till now.

Kailesh Shah:

Yes. What is the impact? Suppose 40% impact has a raw material content of 60%. And then based on that, 50% of that has been able to really been able to pass on.

Sahil Doshi:

Sure. And sir, what do you envisage for the balance? Meaning do you think we are in a position to take that or...

Kailesh Shah:

We are working with the suppliers and customers on those fronts, but there are large programs. So there is a little bit of resistance in that area because they are looking at the China prices, and China has been a little insulated from the shocks which India has to expect right now. China is a little better than us today.

Sahil Doshi:

And just one clarity, sir, if crude starts correcting and the prices fall off, on the way downward, will we get some protection and margin benefit or from...

Kailesh Shah:

We have already got commitment from all our customers who have not passed on that we will be recovering all those lost margins with them, and they have committed on that. So we are not worried about that on the longer term with the customers who have not passed. We've already told them this is the impact. And this is the -- they have agreed to that. And they had also their limitations of their markets of U.K. and the other territories not doing so great and they are fixed prices, they couldn't change so fast. So we have been in touch with the customers, and we are sure that we'll be able to take the benefit as it moves down.

Sahil Doshi:

Perfect. And just last -- sorry, just on the new product categories, which you have put in the presentation, there are a lot of categories which have come in. Are these mainly for domestic market? Or do we have -- what is the...

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All Time Plastics Limited November 05, 2026 Kailesh Shah:

The idea is for the domestic market only because the growth potential in some of the products will definitely go to export also and domestic and the Middle East market, which we will try to now capture with the same kind of products. So those markets have identical kind of requirements, which will happen. And even the customer base increase or going into a B2C channel with some marketing and Instagram and other posts and other things being active on that profile, we'll start selecting good products to be shipped to B2C also to get more traction of the All Time brand domestically.

Sahil Doshi:

Best wishes for your team for the rest of the year.

Kailesh Shah:

Thank you. Yes. We require all those wishes for the trouble which we are going through.

Moderator:

Thank you, ladies and gentlemen. We take that as the last question for today. For any further information, you may reach out to SGA. They are the Investor Relations Advisers. On behalf of All Time Plastics Limited that concludes this conference. We thank you for joining us. Now you may disconnect your lines. Thank you.

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