Finolex Industries Limited (FINPIPE) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Pinolex Industry Limited Q4 FY26 Learning Conference Call, hosted by ICICI Securities 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 the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Arunbid from ICICI Securities Ltd. Thank you, Anu, to you, sir.

Thank you, Julius. Good afternoon, ladies and gentlemen. On behalf of ICICI Securities, I welcome you all to the Q4-FI26 Posters of Concord of Phinelex Industries. From the management side, we have Mr. Udip Agarwal, Managing Director, and Mr. Chandran Varma, CFO. Now I hand over the call to Mr. Udip for his opening remarks, both of which we will open the floor for Q&A. Over to you, Udip.

Thank you. Thanks, Haroon, and good afternoon, ladies and gentlemen. Welcome to Fenolex Industries, earning calls for quarter four and for the full financial year 25-26. We are very pleased to have you here today with us. Just a reminder to everyone that during the course of this call, there might be certain forward-looking statements based on our current view. However, the actual results may be different. Our quarter four of FY26 performance, we had a 12% growth year-on-year on the revenue, and the revenue for the quarter four stood at 1,314 crore rupees, as compared to the quarter four of FY25 of 1,172 crore. EBITDA, we had a significant improvement. It nearly doubled to Rs.332 crores from 171 to the quarter. So the quarter, the volume was probably full year. We had a flat revenue, 113 crores, offset by the materializations. EBITDA, every percent of the year, 2000. I want to come back to one of the topics. There has been a major petrochemical thing also happening because of the value chain. Prices means also realizations for us. Talk about the PVC demand in India follows. I would like to conclude my hope in the floor.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assemble. The first question is from the line of Sneha from Nuama. Please go ahead.

Hi, James. Thanks a lot for the opportunity. There's a couple of questions from mine. Firstly, what would be the quantum of the inventory gain in this particular quantum?

So, we have, as like the other PVC pipe producer, we have also the inventory chain during the month of March when the prices have gone high. It ranges roughly around to, on an average, 35 to 40 crores, around.

Understood. My second question was related to volume growth. What we were also hearing from the other plastic producers, there was a good amount of grief talking which took place, because of which, of course, the volume was much higher. And, of course, we are seeing consolidation. We saw good growth coming in from leaders as well. Why was our volume growth flat as sure for this particular quarter?

So, Sneha, as you know, our roughly around 65 to 70 percent volume comes from the agri sector. And this time we have seen that the agri demand is not taking uplift during Q4. So, on an overall basis, though the quarter and quarter volume has been flat, but we have seen a reduction in volume in agri and increase in volume in non-agri. Overall, the volume has remained flat, but the dragging has mainly happened on account of every volume not getting picked up. Because the farmers were quite, they were also anticipating that the prices, because the prices volatility, they have, they were anticipating, anticipating that the zero will be softening the prices. On that anticipation, the volume could not be picked up as it used to happen in the earlier quarter, in the corresponding quarter of the last year.

How is every month picked up in the month of April and May? How are we seeing trends? Any guidance that you would like to give? And lastly, if I even adjust the 50 crores EBITDA, I mean 50 crores in venture gain, your EBITDA margin comes out to be significantly higher than what we've seen for the last eight, nine quarters. How sustainable are these margins?

So, Neha, see, as we know, we are also the backward integration, we have the backward integration integration facility of PVC resin manufacturing. So, there is always a few cost advantages that we enjoy. So, based on that, our procurement planning that we have in place, so we have enjoyed certain benefits, and that has given us the margin. Overall, the kind of margin that we have seen during the current quarter is obviously at a higher size, but going to It is going to moderate to some extent. Guidance, more or less, you can say lower double to lower double digit around.

Understood. And on the volume front, how have April and May month, yeah.

We lost you in between. Volume front?

So the other question was that have you seen pickup in the month of April and May with respect to AgriPipe volume and any annual guidance with respect to volume growth?

April was a little subdued month, yeah, because the prices were pretty high in the month of March, and prices started coming down. So, really, in a falling market, it has a straight impact on the demand. So, April was pretty subdued, but we see a little better May.

What about that, sir? Any guidance for the annual for FI27?

There were so many things going around, both on the supply side and also on the demand side, yeah. But I would say structurally, I would look at GDP as one of the indicators of our growth, and which also is several constituents to it. Agri is one of those, construction industry is another, and how the government spend on some of the growth drivers with government effect, for example, extending the general given mission, And I hope that allocation happening during the course of the year will define what kind of a demand growth we can see.

Thanks. Thanks a lot, sir. I'll get back in with you.

Thank you. The next question is from the line of Paraneet from SJ Investment. Please go ahead.

Hi, sir. Thank you for the opportunity. I just wanted to think in terms of the demand, how is it on the ground level? I understand that the Q4 was not so great because of the rapid price height, but in terms of, let's say, consults in the market, especially in the agri-space, how has it been in terms of competition and other things?

Sorry, I could not completely understand your question. Can you come again?

Yes, sir. Am I audible right now? I was asking, sir, in terms of competition overall in the agri-space right now, how has it been and how is the customer demand sentiment? Besides the Q4, rapid price spike, is there any consolidation, and how is the overall market competitive process? Because some of our players are getting a little more aggressive on track. So, just wondering what's happening on the ground.

No, the story is different for everybody, because the ratio or the dependence on the agri market is everybody's is different. We have been predominantly in the agri side relatively stronger. As compared to the non-agri site. And so the impact cannot exactly be like to like compared. But coming back to your question of what is going on on the ground, as we said, the appeal was a subdued month in terms of the demand. May looks to be slightly better. Also, because of the agri demand, which has kind of come back a little bit ahead of the monsoons, it will depend on what happens to the monsoon. The monsoon are kind of getting delayed.

Understood, sir. I was just wondering in terms of, let's say, players like, even players like Kiki and JN, have also been gaining their market share. I was wondering, has this been affecting us? Was it at the cost of us or at the other players?

See, giant irrigation plays in the micro-irrigation market. So, this is not a complete direct like-to-like comparison with us. So, that's what I said in the beginning of my response to a question that everybody has a different positioning in the market and which market segment do they see.

Just one last question. I understand that we're still very concentrated on the agri space, right? Is there any strategy in terms of meaningfully shifting away from agri to other products? Because we are still extremely highly regarded in agri space, but I'm pretty sure that the brand can also cancel it to other segments. So what's the strategy for that?

Yeah, I mean, we have been constantly pushing over, trying to diversify our portfolio in terms of the market segments. So there's been slight improvement year on year. If you look at FY25, 67% was agree, and if we look at FY26, we are at about 63%. So really the non-agree segment share is also increasing in our sector. There is a gradual shift, and as we have been saying in the past, in the previous calls also, Let's

say, what is the idea that the management wants in the next 3-4 years? Is there any internally targeted message?

I would say more like, ideal case for us would be more like 50-50 over the next 4-5 years.

And one last question, I understand that we are still market leaders, so in terms of market shares, has there been any growth especially with the market going down? Are we able to give market share gains over the last year?

No, I don't think so. What we have been doing so far is trying to manage the market share and also looking at the margin growth. So our positioning is slightly different from what other players are doing in the market. And you see that clearly reflected in our numbers also.

So, could you explain the strategies that are going behind the margin growth? I understand you're doing the most collective. So, but in terms of how are you exactly growing the margins by maintaining our market? Is it lesser credit terms or higher prices? Could you give some light on to that?

So, it's a basically continuous process. In margin improvement, there are a lot of things and a lot of dynamics come into picture how we are managing our margin. It's our procurement Thank you.

I understand that. It's a very dynamic factor, and we are very confident in that. I'm just wondering, for this specific year and this specific quarter, what were the major contributing factors? I understand it changes time to time, depending on the market.

Yeah, so you have to clear up the result that you have seen. Basically, it's the result of whatever the factor that I just described. It is a combination of all the factors. It is very difficult to pinpoint how the margin came on for the particular initiative, but yes, it's a combination of all the factors that you have seen.

Thank you.

The next question is from the line of Shravan Shah from Dalat Capital. Please go ahead.

Yeah, thank you, and congrats on good set of numbers. I have a couple of questions. Sir, can you share the, agree you have shared the 63 percent, so for fourth quarter it comes around 62 percent. What was the CPV share in the volume and fitting share for fourth quarter and possible for fourth quarter of last year and maybe the full year for 25-26 if you can share both the CPV share and the fitting share?

Thanks, Shrivan, for the question. And I think Chandan has the numbers, Andy, with him.

So, CPVC share, overall portfolio, it comes out to be roughly around 7-8%. It was roughly around 6-7%. 7% and currently 7-8%. And on a year-on-year basis, on overall volume.

And fittings, sir, sir?

So, fittings here in total business, it's roughly around 90 to 10 is the ratio that we maintain. Sorry, sir, I didn't get 12% is the fittings. 90 is the pipe and 10 is the fittings. That's what you wanted to understand, right?

Yeah, so in the fourth quarter, the fitting was 10% share.

Yeah, fourth quarter is 9% and last year also it was 9%. On a yearly basis, overall year basis, full year the fittings here on overall volume is 11% and last year it was 10%.

Okay, got it. Now, sir, first I just wanted to again try to understand this EBITDA margin because this is the sharpest positive surprise that has come. So, our question is, what do you feel like, what are we going to get to, while we're going or say, whatever, you try to answer are still not able to understand. And even if 35, 40, the inventory gain, if you adjust, it comes around 22% odd margin for fourth quarter. And how so, so fast, though you said that we are backward integrated, but still able to understand furthermore. And now let's say in the Q1, given the April, we have seen the significant PVC prices as dropping down and maybe a four odd rupees again, it has bounced back. So, how one can look at this margin and so do we still will see such a kind of a 10-10% kind of volatility in the EBITDA margin going forward also? How on a yearly basis can we see it full year for 26 to 16.5%? Can we see 14% plus kind of a margin is doable on a sustainable or a 16% plus is doable?

So, Saravan, I have just explained to another question a few minutes back. So, on a yearly basis, we have a target to maintain our EBITDA margin on a mid to lower double digits. That is our target. So, we will continue to put...

Sir, sorry, sir. Lower double digits means a significant range. So, just that's why I'm trying to understand. Lower double digits, sir.

So, you can say sub-15 number.

Okay, sub-15 number. Okay. But it should be, originally, we were, till last time, we were looking at 12% kind of a sustainable.

That's what I am saying. Sub-15 number, anywhere, it is very difficult to pinpoint at the so dynamic environment. So, we are trying to keep the, maintain our margin sub-15 level, EBITDA margin.

Yeah, we are talking about EBITDA margin. So in Q1 itself also, can we see the similar or still the number could be much higher in the Q1 also?

So as Saravan, as I told you, our individual is to see margin of the year-on-year visit, full-year visit. We will try to maintain, but let's see how the quarter progresses. As you know, April is a subdued month. We have said that everyone is aware. So let's see how the May and June goes, then we will be able to comment upon. The early basis, we have the target to sub-50 levels, I think, somewhere around.

Okay. And on the volume growth front, so this year, obviously, on a yearly basis, 4.4% degrowth, but on the fourth quarter, QOQ, sub-jump is there. So, you have mentioned that the effort was subdued, May was better. So, how one can look at the, on a yearly basis, the volume growth, but at the same time, we wanted to understand in terms of what's our capacity and how we want to add, because till last time we were saying 50,000, 80,000 ton capacity on a yearly basis, we'll keep on adding.

So, our total capacity at this moment is high like 20,000. So, we have a sufficient headroom to grow still. So, current year and I think most probably next year also will be able to, will be sufficient to close with the current volume. Number one. Number two, your second question, one part of the question of how you are seeing your yearly target. So, definitely, we are seeing targeting a growth number of roughly around higher single digit to lower double digit. This growth we are targeting for the upcoming full year, not in the quarter and quarter, this full year we are targeting.

Got it. And then in terms of the, then the capex would be 100-200 kind of a number and the cash, Yes, because for last many, many times, we are saying that we will reward the shareholders, but timing is not clear. The board will decide. So, I'm still wondering when that time will come.

So, yes, you are active, right? Every year we are going to incur the effects of roughly around 100 odd crowd every year. This is more on account of our maintenance. That will keep doing. We will be pre-bottle injection process already on where lower capacity extruder gets replaced with the higher capacity extruder going forward in time. That process already We have also explained in our earlier call that process is already on, number one. So, as all the shareholders must be happy that last year also we have declared a huge dividend of 3.60 per share, and this time also 2.75 per share. Yes, we have this huge cash balance in hand, but still, even our yesterday's discarding the remaining cash is yet to come, so we'll have to...

Okay, and any specific reason, though the number is lower in terms of the finance cost for this quarter, from third quarter 3 crore to 7.8 crore, any specific reason and how at the same time the other income from 52 crore, so for three quarters, it was kind of 55, 58 crore and then came to 36 crore. So, is it just a, just wanted to know the reason, and how one can know this thing?

Other income largely consists of mark-to-market gain on the investment portfolio that we are having. So, you have seen March, there is a decline, market has gone for a lower trajectory. So, that's why the mark-to-market in-game has come down, number one. Number two, finance cost has gone up. So, you see, because of this geopolitical scenario, we have been planning to keep our inventory at the optimal level. So, that resulted into the optimum purchase of procurement of materials, number one, and that has got converted into over the period in time in borrowing. So, that has resulted into certain higher cost.

Okay, okay. No issues. Thank you and all the best, sir.

Thank you.

Thank you. The next question is from the line of Pravin Shah from PL Capital. Please go ahead.

Yeah, hi, sir. Pravin Shah from PL Capital. My question is related to the capacity. So capacity of 5,20,000, what you had said, and if there is no expansion, is there a constant? The capacity is going to become a constant for a volume code? Because if I look at last quarter, and the utilization rate were very high, some 70-80% of the utilization. So is that the constraint for a growth for you right now?

No. So capacity is not a constraint for the growth. As Mr. Chandan Verma mentioned in the response to one of the earlier questions, is that there is a constant capex planning of 125 to 200 crores, which I have been always saying. So this is also, this year also we would be also spending a substantial amount into the capacity augmentation. As you mentioned, the changing the lines from a lower capacity to the higher capacity, that also leads to the capacity expansion. I mean, having additional capacity available for production. So, certainly, capacity availability is not a constraint.

Okay. Second question is related to the inventory because, you know, answering to the earlier question as well, you had highlighted that the inventory number has increased. So, is that assumed that because there is a lot of a volatility in the PVC recent prices, we had a created inventory of RM for a future use?

Yeah, so also you need to, it's a regular activity, so it's a regular activity where whenever you find the opportune time, so opportune time to procure the inventory at the suitable prices, And definitely we'll try to hold up and take that inventory in our stock. So that is the strategy that we have been following, and that is how you see the inventory level at the 31st March. Currently, the current inventory level is also the result of that strategy that we are following.

And because there is a lot of volatility from the, you know, the March onwards, we have seen in the PVP racing crisis. So at what level, like, do those inventories have been built up? And also, you know, just wanted to understand on that, because if that is on the higher side, then we will, you know, then after there is a good correction in the prices also. So, how you are comfortably, you know, built up your inventory, actually?

So, Shravan, just to say, we have, we are constantly keeping, we understand that PVC market is too dynamic, and we will be holding higher inventories, and that is going to be a dent on the future period. So, keeping all the dynamics in mind, we have the sufficient control over the inventory number that we are having. So, I don't want to quote any number regarding how we are seeing this impact on the subsequent quarter, but yes, we are mindful of the thing that PVC prices can go for any direction. So, keeping that risk in mind, we have the optimal level.

Another on the demand side, because, you know, also you had mentioned, and in the past, we had seen that the PVC racing prices always impacted the agree demand in the past. And still, if I look at some, you know, the prices of a PVC racing is at an elevated level of nearly around 87 rupees, 85 to 87 rupees per kg. So how in the May, actually, you are seeing the demand is coming back even after the higher prices? Is that still quite a softer or it's coming back strongly because the prices from 115 now has a down? But can you give some color? Because from the last year of the 70s, 65, 70s, now we are at a very high level of pricing. So, how the agri-demand is actually stepping up?

Yeah, so two parts of it which you touched very rightly. Yeah, I mean, so, yes, if you compare it to the last year, the absolute value seems to be higher, but if you compare it to the high of March, it is significantly lower. I think it is 25-27% lower. Okay, so that is one of the factors when farmers or the agri-demand is being considered. The other is that this is the season time. Okay, so the inherent demand which is there, which is independent of the pricing, that is also there.

And some book-keeping questions are, how is the BC and PVC spread for a quarter? And at this point, how is the PVC racing prices or the spread, PVC-DC spread? Right now, not the quarter, Q4, but right now.

So, Q4 PVC EDC spread was $521. And Q4 average, average I'm talking, and also PVC prices on the international market, it was average around $793. And currently, currently we have seen a PVC EDC spread, PVC EDC spread around $543. And the price is, you know, somewhere around $900 plus in the international market, the latest price.

Okay, and VCM, sir? PVC-VCM?

PVC-VCM spread is currently $108. Currently, it's like $108. And last Q4 average is somewhere around $179. $179. $180.

Okay. Thank you, sir. Thank you, and all the rest.

Thank you. The next question is from the line of Pujansha from Molecule Ventures. Please go ahead.

Hello. Hello. Yeah. Yeah. My question pertains to the, so first of all, I just want to get a sense on the government regulation side.

Sorry to interrupt you, but your voice is not very clear. Can you come closer to the mouth, please?

Am I clear now, sir?

Better. Thank you. Thank you.

My question pertains to the government regulation. So, as an industry, we have been struggling for one and a half years and considering the demand scenario, and we also, industry has also filed the ADD, but it didn't implement it. While I just want to understand if we file the ADD again, do they keep, do they understand the impact which has happened in the March that might decline the ADD purpose because at that point of time the prices were at a high prices compared to the historical average. So, can you give a sense, is that a possible way we should get an ADD or we might go for a shorter term purposes like MIP which might be helpful for a six month duration?

I think on the ADD, we all know what happened. And there is also a cooling period in between the two investigations which needs to be there. So, that's on ADD. I don't think right now there is a case for ADD per se. Very much one view of looking at it. The other topic which you talked about, other kind of protections, which can be given to the industry. Certainly, MIP is one of those, however short term it might be. You also know that the policy government announced a 90-day period of no-import duty on PVC-raising, starting April until 30th of June. So that is also giving, and probably rightfully so, also to the lot of medium and small enterprises. And this is, I'm talking about all polymers, not only for PVC. PVC is also, we know how is the structure of our pipe producers here in India. It has impacted the large players like us, and that's how we also saw a sudden drop in the prices of PVC.

Got it, sir. Secondly, our revenue concentration is a bit on the higher side on the agri demand, and this year we have been expecting that there is an 8% less rent-hold compared to the previous year. So how we have been planning to tackle that? Do you see some kind of degrowth in agri which can offset non-agri space? And how do we are planning to get strategies for this year to get our double-digit growth?

As we have been telling, there is a forecast of lower monsoon also, as we have just said, and also the prices of the demand of agri is always monsoon dependent. But as we have said in the earlier question, since our trust is to put more and more emphasis on our non-agree sector, so there will be partly whatever the production that we are going to have in the upcoming quarter, it is going to be any loss. If we are going to incur in the agree sector, this time we will compensate with the non-agree.

Got it. That's all from my side. Thank you so much.

Thank you. The next question is from the line of Vipul Kumar from Sumangal Investment. Please go ahead.

Hi, sir. So, you said this VCM data was $170 in last quarter, and right now it is $108. Have I understood it correctly?

Yes.

So, half of your capacity is VCM-based. So, this quarter, there would be a substantial pressure on profitability. Is that understanding correct?

Yes, to some extent, you are correct. But yes, the delta is currently, you are seeing the impact of current pricing. But yes, we are trying to, our discussion is already on to have the proper VCM at the optimum prices. So, that we are also trying to have the inventory.

No, no, but whatever you are getting at a market price, but if the spread is lower, naturally your profitability will be affected, no? And half of your capacity is vision-based.

So, you need to appreciate the point that you are seeing, the number you are seeing is the point in time. Let's see how the number goes over the period and over the quarter. So, we have seen the 179 average has came down 2.0 to a year, but at a certain point in time, at the beginning of the quarter, it was also at the 180 or 190 level of the last quarter.

So, average will be higher, that is what you are trying to say, sir? Okay. Okay. And why we are not seeing any substantial growth in volume contribution of CPVC and fittings? Because they have become stagnant over the last certain years.

No, but you'll have to see our fitting share in overall basis is gone up on a yearly basis. So last year our fitting share in our total volume was 10%. It is little up by 11++% during the current year. So, this is an overall basis, and if you see the growth of fitting alone, the growth of fitting alone is somewhere around 9 to 10%. So, that is, our focus is here in the fitting.

Okay. So, fitting will continue to grow at 9 to 10%, is that understanding correct? Yes, yes. Same applies to CPVC also?

CPVC, in fact, you see, though we have the lower base of the CPVC, but CPVC are growing at a higher base. It's roughly around 15% to 18% of range. Sorry, 8% to 9% of range.

No, no, would you repeat? It was a little confusing.

So, we have a CPBC, we have a lower volume, lower base. So, our growth of CPBC, fitting is higher again. In CPBC fitting, our growth is higher. And overall CPBC portfolio is going around 8% to 9%.

Yes, sir. Thank you very much. And any plan to return the cash to the servidor, sir?

So, I have just replied to this question. So, this question, these things will come from the board, and still the board couldn't give us guidance how to utilize this cash. So, let's wait for the time. So, whatever the decision that we have given, that is definitely out of the current approval, but yes, the commodity cash we have, the board will give certain guidance.

So, one final request to Mr. Chhabarya, if you can convey our request. It has been long since he has attended any call, and this question is asked every time. So, at least for one call, if he can attend, it will be really helpful. Please convey our request to Mr. Chhabarya.

Yes, definitely will convey your message.

Thank you, sir.

Thank you. The next question is from the line of Anuparak from Anandrati. Please go ahead.

Yeah. Hi, sir. Am I audible?

Yes, we can hear you, but I have fainted voice. Can you come closer to the mic, please?

Yeah. Am I audible now? Yeah.

Yeah, it's better now.

Yeah. Sir, I just, so first question is what's the portion of VCM quantity source from Middle East region And whether a PVC resin production is likely to get impacted in FY27 in case the geopolitical issue persists for the next, say, three to six months?

Yeah, the Middle East has been the large supplier to India for VPM. So there has been an impact. At the same time, coming to the next part of your question, Will we see an impact for the full year? As you might already know that during the monsoon period, our jetty is not operational. So, we do not run the VCM line during those periods. So, in any case, it remains closed. Yeah. So, for that period, four to five months period, we are not impacted. Really, we cannot. Our efforts are on to shift our supply chains.

So, second question, the Phenolex's average EBITDA margin has been in the range of 17.5% over the past 10 years, and since our share of non-agri-pipes is also going to gradually go up, so this is going to enhance the margin profile of the company. Then, sir, why are you guiding a conservative EBITDA margin at sub-15% level for FY27?

So, we don't want to give any rosy picture at this moment because the geopolitical scenario, the future is always seeing uncertainty. So, that's why we are giving a conservative margin and let's try to deliver at the higher margin towards the year-end.

Yeah, and this number is over long term, what you mentioned, and we are talking about here a relatively shorter period of time, which would be greatly impacted by the volatility in the market. So, that's why a little conservative estimate, but you are right. I mean, we have been around that range.

Yes, sir, but we have clocked 17% in FY26, which was a difficult year.

No, it was a difficult year, but if you look at the full year, the quarter four was the major game changer. If you look at the first nine months of the quarter, sorry, pardon me, first nine months of the year, and then it's a different picture. It's the quarter four which has really changed.

The last question would be, what is the reason that all other listed plastic pipe companies are looking forward to geographically expand the manufacturing footprint and expand the product portfolio, but we are pursuing a different strategy and delivering weak volume growth compared to them. So, don't you think that we should re-value the capital allocation policy so that we can at least maintain our market share in the pipe segment going forward?

See, there are two parts of it. One is the cost to the customer. As long as competitive, customers will continue to buy. And with the increased or better transport infrastructure available in the country, the distance are becoming shorter and shorter. I should say the impact of the distance is becoming less and less. Earlier, it was probably five years back, seven years back. The advantage of being a local looker, if we are able to be action-based.

But, sir, our existing strategy seems to be not working. So, why are we not thinking of changing it?

You need to see.

There are two things that we have to keep in mind. Like, even if you go for another capacity at some other location, it will be difficult to cater all the product and SKU from the regional location, number one. Then, the balance SKU, we need to source from the other location where we have the presence. So, definitely, again, it is going to create entrances, number one. Number two, as you know, we are currently a largely agri-focused segment, and non-agri, we are going to increase our share over in time. So, as the product portfolio of non-agree will go, and if you will find the suitable opportunity, then Divinity will look for the further other geography at this moment. I think currently, and particularly the volume decline in the agree you have seen. Basically, you see, agree has always a homogeneous growth trajectory. It is always in tandem with how the monsoon scenario works in the country, right? So, if there will be a healthy monsoon, we will see a sharp jump in the agri-demand again. So, this is something where no one has any control over that. So, that's how we are seeing our business, and if you find our opportunity over the period in time, then we will definitely re-look our strategy for the decentralization.

Okay, sir. That's it for myself.

Thank you. The next question is from the line of Mayul Shah from Nayanwala Securities Ltd. Please go ahead.

Hello. Am I on the way?

Yes, sir. Please go ahead, sir.

Sir, what is the utilization, capacity utilization for FY25 and FY26?

So, currently, FY26, we have the utilization of 67%. And last year, though, since we have added a few capacities this year to one of the current year, So, last year, we have a higher utilization of 71%.

Sorry, sir?

So, last year, we have ended with a capacity of 4,92,000. So, based on that, our utilization was 71%. Current year, we have the capacity of 5,20,000. So, based on that, our utilization is 67%.

Okay, okay. Thank you, sir.

Thank you.

Thank you. The next question is on the line of Raneet from SGA Investment. The next question is from the line of Shravan Shah from Daulat Capital. Please go ahead.

Hi, sir. Broadly, if I have to look at the price difference and maybe ultimately the margin difference between the agree and non-agree for us, how one can look at?

Sarvan, so this number definitely margin, there is a gap in the agree and non-agree relation and margin both, but we do not disclose in the public.

Okay, now the point is, I am not asking a specific number, what's the price difference or the margin difference, but the range would be decently higher, let's say on the margin.

The non-agree has a higher margin than the agree, that's what I can comment, maximum.

Yeah, no, so the point is that given the significant, even the previous participant was also trying, because for last many, many times we are not able to distribute the cash. So there are two, three ways, because this agree is always, always depend on the monsoon. Nobody knows how this will pan out after three, five, seven years. So, if we want to build a brand, so obviously, we need to have a higher share in the non-aggressive. That's what even we are trying. But the pace is on the lower side. So, as a company, given that we have the cash, why can't we have more teams, maybe different manufacturing set up at two, three places. So, we can definitely add up to three places easily. So, and then keep on increasing both in the CPVC and the fittings, even fitting capacity is also very less for us. So, these are the four or five ways in terms of the project level. Also, we can keep on increasing our sales. So, that becomes also, it is kind of a recurring kind of a demand for us, and also at a higher margin, higher realization, we can have a better brand. So, that's the way. So, understand.

Yeah, Shravan, thanks for the multi-pronged approach and the discussion which you want to get into. First is our penetration in the market. So, as you know, historically, agri is predominantly for us the west and south, but non-agri we are expanding rapidly into So, we have the required number of salespeople, which we need in other parts as well. As you know, this is also what you touched upon in your question is also the project business. It's a life cycle to that, and so we have to live with that, so that you need to get the product specified, yeah, and as the construction progresses, the demand starts to say for which project, how much, but yes, this is how the multi-locational, that's where our focus is.

Yeah, but just the pace of effort and the outcome or the result is yet to be seen. So, that's what the investor wants. And given the kind of cash we have, so that's the only request, suggestion, feedback, whatever. Thank you.

Thank you. Thank you. Ladies and gentlemen, we take this as a last question. I now hand the conference over to the management for the closing comments.

Thank you all who participated in our call. I must say that the questions which were asked by you are very, very pertinent, and I must say they are very well researched. We will continue to put in our best efforts as a company to meet the expectations of the shareholders and the investors. I hope to see you next time for our quarter one FY27 conference call.

Thank you so much to all the participants and showing your continuous interest and belief in the stream that Sinole is having. We are delighted to see your questions and insights.

Thank you, sir. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.