Gulshan Polyols Limited (GULPOLY) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q4NF26 Earnings Conference Call of Kulshan Polliols 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 than zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Charwin Zaveri from ShareIndia Securities. Thank you and over to you, sir.

Thank you, and good evening, everyone. On behalf of Share India Securities, I welcome you all to Q4 FY26 earnings conference call of Gulshan Polyols. We are pleased to have with us the management team, be presented by Ms. Aditi Pasari, Joint Managing Director, and Mr. Rajiv Gupta, CFO. We will have the opening remarks from the management, followed by the question and answer session. Thank you, and over to you, ma'am.

Yeah, hello, hello, everyone. Good afternoon, and thank you for joining us today. With me is our CFO, Mr. Rajiv Gupta, and Ms. Rittika, RCS, along with Mr. Rikil Shah from Atlas Capital, who is our Investor Relations Consultant. I trust you have had the opportunity to review our financial results and list the presentation. FY26 has been an important year for Volsha and Goliol. This is the year where the investments we made in ethanol have started receding meaningfully in our financial performance, improving both our revenue mix as well as overall margin profile. Over the years, we have steadily evolved from a single-product PCC business into a diversified player across biofuels and specialty chemicals. Today, that transition is becoming visible, not just operationally, but also in the quality and visibility of our earnings. Our ethanol business is now the primary driver of the company, contributing over 60% of both revenue and profitability. We have an installed capacity of around 810. K.L.P.D. Placing us amongst the larger grain-based ethanol players in the country. One of the key strengths of this segment is its strong revenue visibility. We currently have an order book of about 18 crore litre, providing healthy near-to-medium-term visibility, alongside long-term off-take agreements for approximately 13 crore litre annually with OMC, extending through 2032. In addition, Our classification as a dedicated SMOL player allows austerity allocation, further strengthening our ability to operate at stable utilization levels in a policy-driven environment. From a cost perspective, the availability of FCI rice has been a key positive this year. We are currently sourcing about 40% of our free stock through FCI at fixed prices, which has significantly reduced volatility in input costs. At the same time, improved grain availability has softened maize prices, which are now in the range of Rs. 19 to Rs. 20 per kg, depending upon the region and the season. This has supported margins across the business. We continue to follow a lean inventory strategy of around 20 days, which allows us to remain cost-efficient while ensuring operational continuity. Our byproducts, DDGS, continues to be an important contributor to the overall profitability of the ethanol segment. Realizations have improved from previous years, now ranging between 21 to 22 for maize and about 25 to 27 for rice, translating into an incremental 10 rupees per liter in ethanol economics. While this remains a strong supporting factor, we remain mindful that this is a commodity-linked product and can see some variability over time. Coming to our grain processing business, which includes Sorbitol, Starch, and Structose, this segment is gradually moving out of the down cycle we experienced last few years. Elevated mage prices have impacted export competitiveness and led to margin pressure. With the input cost now correcting, Export opportunities have started to improve, and we are seeing early signs of normalization. We are currently exporting sobotol to over 45 countries, and we continue to focus on improving cost efficiencies within this segment. One of the key initiatives has been to shift to an RDF-based fuel boiler at our Muzhunagar plant, which is structurally lowering our energy cost. Our mineral chemicals business has continued to perform steadily, supported by a stable demand and long-standing customer relationship. This segment remains important to us from a cash flow and margin stability perspective. As we move into FY27, our focus is clearly on consolidation and improving efficiency across the business. Having completed a large part of our CAPEX cycle, we are now shifting towards optimizing utilization and strengthening our balance sheet. We are targeting utilization levels of 80% to 90% across our key divisions, which should support revenue growth towards the range of 2,600 to 2,800 crores in this financial year. At the same time, we are focused on reducing working capital intensity and improving cash generation. Looking slightly ahead, from FI28 onwards, we intend to re-enter a growth phase with a focus on speciality and import substitute chemicals, which will help us move further up the value chain and reduce exposure to quality cycles. Overall, we believe the business is now transitioning into a more stable and cash-generated phase with improved visibility on earnings and a stronger operating foundation. With that, I will now request Mr. Rajiv Gupta to take you through the financial performance in detail.

Thank you, Aditya, for giving me this opportunity. Now, let me share with the listeners our performance, and I will take to the P&L as well as the balance sheet developments, segment trends as well. Starting with the consolidated performance for quarter four, FY26. Our revenue for quarters stood at 550 crore, which is up by 7%. Primarily, the main contributor to the revenue growth is basically the Epsilon segment. Though there was a subdued performance from the grain processing business, and while the business capital segment remained stable. Our revenue for 526 crore. It was 2,314 crore, which is up by 14%. Now comes to EBITDA. EBITDA for the quarter was 65 crore, reflecting a growth of 121% year-on-year growth. Improvement was largely led by better operating leverage in ethanol segment, supported by higher utilization level and softer input cost. EBITDA for full financial year is 232 crore, which is up by 131%, which is excellent performance, which is shown actually performed by the company. EBITDA margin expanded by 612 basis points year-on-year basis to 11.9% in quarter four. This is an important development for us, and it reflects a structurally stronger ending base as our dual capacity is stabilized. Avid of margin for FY26 was 10% up by 504 business growth. Profit after tax also has improved upon. And it stood at 38 crores, above 435% on year and year basis, given by improved operating performance and margin expansion. Pat for full year is 107 crores, which is 334% up from the last year. Ethanol sediment, we are now moving to sedimentary performance. The ethanol sediment reported revenue of 699 crores. The performance was given by higher value, improved capacity utilization, and favorable feedstock mix. The segment continues to be primarily earning driver for the company. The grade processing segment reported revenue of 610 crore with EBITDA of 13 crore and margin of 2.1%. Margin remains subdued due to the quarter due to pricing dynamics. However, with input cost now moderating, we expect gradual improvement going forward. The middle chemical segment reported revenue of 93 crore with an EBITDA of 23 crore and margin of 24.2%. The segment continues to deliver stable performance with healthy money, acting as a consistent cash flow contributor. Now moving to the banishing side, our total debt currently stands at around 313 crores. That includes our long-term as well as working capital load together. Our long-term debt remains highly cost effective. With effective interest is below 5% because of ISAS, which is Interest Subvention Scheme. This provides us with a structural advantage in terms of cost of capital. Working capital borrowing are currently at an interest cost of 7.25%. Owing to prudent financial management, independence of working capital financing has reduced significantly and is expected to remain low through financial year 27 as well. Overall, the financial performance for the quarter reflects improving operating leverage, better cost structure, and a shift towards a more stable earning profile. It is a sharper sort of utilizing working capital efficiency. And cost discipline in financial year 27, we expect to deliver more consistent and predictable performance. With that, we would be happy to take over your question. Thank you very much.

Thank you very much.

We will now begin the question and answer session.

Anyone who wishes to ask a question may press star and 1 on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

My first question is regarding the order book. So, as of now, what are the current order book status and what is the implement duration going forward?

So for the AdSense segment, in the ESY 2526, which starts from November to October, we had an audiobook of about 18 crore litre, which computes about 1,250 crores in revenue. So, that is the current order book status in the ethanol segment. We are, however, looking at increasing this allocation in the subsequent tenders, which are due to be released in the month of June. And as the next tender, the C2 and C3 tender cycles come in, we are confident that we will be able to increase this order book from 18 crore litre to at least 22 crore litre in this very financial year.

And that's all. My second question is regarding E20 blending. So since we all know that government is planning for the E20 blending, right? So how much we are prepared for that and what kind of margin bump or what differences we can have from the E30 blending?

Yeah, so as far as question for you all is concerned, we have... Capacity to produce 26 crore litre per annum. So, we definitely have unused capacities currently from 18 to 26. So, yes, we are very much prepared to increase, to go up to 100% of capacity utilization as the government gives out the mandate for E30.

Do we have any official thing from the government head as well?

Yes, officially there have been statements that Vermint is thinking of rolling out E30, E25, E27, E30. So there will be three to four kind of blends which will be available in the market. And we are looking at increased blending very soon and we are looking at Vermint coming out with a new tender maybe in the very near future.

And what kind of margin difference we can achieve?

So, based on current pricing, I'm quite confident that government will continue to give us FCI rights, at least for the next two to three years, because we are aware that the government, you know, there's a lot of background noise on this call, so I'm unable to actually hear the speaker. Okay, so based on the fact that FCI is sitting on more than 400 million tons of rice, we are very confident that the FCI rice will be made available to the ethanol industry for at least next two to three years. And until that is available, the balanced raw material, which is maize and broken rice, will definitely be more fluid and availability will improve and the prices will remain. So, until this scenario is on, we can expect to continue with the kind of results that we have given out in this quarter. We will be very confident that we will be able to give out such results quarter-in-quarter.

Great. And just last question, what kind of revenue EBITDA we are targeting for F-27 and F-28?

For FY27, we are definitely looking at about 2600 to 2800 crore of EBITDA, which I am expecting that about 1800 to 1900 should come from the ethanol segment, based on further allocations. About 800 we are targeting to get from the grain segment and about 100 from the mineral segment. So all put together, we should be looking at achieving this trigger in FY27. And if I talk about the EBITDA margins, definitely looking at about 10% to 12% EBITDA margins in this financial year.

Understood. And at the PAT level?

About 5% to 6%.

Understood. Thank you.

Thank you. The next question is from the line of Sanjay Manial from Dan Kapiti. Please go ahead.

Hello, ma'am. Just want to understand what is our ethanol volume for Q4? My calculation says it should be somewhere around 4, 4.5 crore litres, and it seems to be a decline from previous year as well as previous quarter. So what could be the reason for that?

Yeah, so you see, the previous year we had a total allocation of about 21 crore litre, and this year it is 18 crore litre, and also we are expecting further allocations in the balanced two quarters of the ESY 2526. So, because the government has already given out the mandate for increasing lending, so, therefore, they will be looking out at giving out further tenders and further allocations will be received by the company in the next two ESY quarters, and we will be able to make up this revenue, which we lost in quarter.

Okay, so 18 crore litre is something, a location which you got from, say, November to October. Out of that, how much you have already fulfilled in March?

About 50%.

Okay, so 9 crore volume we can expect over the next two quarters, broadly. Yes, yes. And if we get additional orders, then probably that will add to the volumes only.

Yes, we will get additional orders. We are very confident because government is increasing vending. It will have to really come out with new tenders.

Right. And, you know, EBITDA per litre, if I just calculate, it should be somewhere around 13 rupees a litre, if I'm not wrong?

Yes, we can say it. No, not 30. At the level, I would say, if I'm saying 10%, that's about 10 to 11 rupees, average.

Okay. And does our result in the quarter include any subsidy amount?

In quarter four, we have not received any subsidy.

Okay.

And are we

expecting any kind of subsidy over the next few quarters?

In quarter one, we are expecting an additional 5 crore capital subsidy underneath policies for our farm plant. And the PLI should come by the end of the year.

And what would be that amount?

The total PLI due between ASAR and MP is about 30 crores per annum.

Okay. Okay.

Right. Thank you for that. And just sort of last one from the grain processing segment, I believe this was one of the segments where you were struggling from last few years with the low margin. In the current quarter, it seems to be a profitable segment. What is the outlook on this in FI27, given the time that some bit of profitability is now achieved in the current quarter? So what kind of margins are we expecting in this business and what kind of growth we are expecting in this business?

Definitely, I feel the worst is over for the grain processing division, and already the signs of improvement have started showing up in this quarter, and going forward, I'm expecting further improvement. On this orbital fructose and starch front, so in FY27, I definitely have a target of being able to achieve about 5% EBITDA on this segment, so which will amount to about 40 crores at the EBITDA levels, on a revenue of 800 crores.

Okay, okay. And just maybe last one, if I can ask. What we understand that you're almost very close to the, you know, full utilization of all your segments, at least ethanol is 80% plus, and even the other segments. How should we build in the growth over the next, say, two, three, four years period, given the fact that your utilization is already full, means what kind of a capex or any diversification which we're probably taking over the next four, five years?

Yes, so CAPEX will start coming in FY28. We are already evaluating new products, mostly in the specialty chemical space, which will be maybe a little bit of capacity enhancements of our existing products, maybe sorbitol and fructose. And secondly, we are also looking at introducing new products, which are import substitutes, but in the grain processing division. So, the fresh feedbacks will come in FY28. Until then, we are looking at improving the cash flows in the next four to five quarters. So, in the current revenue, with the current setup, we are very confident that we can easily achieve, depending on the market condition and the order book, a revenue of about 2,800 crores is very much achievable with the current setup. Even up to 3,000 crores can be achieved with the current setup on 100% utilization, and beyond that, yes, fresh capex is required, which we have already started planning. We have already bought a piece of land in Madhya Pradesh, about 100 acres, so we are looking at setting up. We are evaluating a large mega project for that land, for which the APEX will start in FY28. Until then, we are actually going through various proposals and evaluating various products.

Okay. Perfect. Thank you. Thank you very much for all this.

Thank you. The next question is from the line of Mukesh Manjwani from WC Securities. Please go ahead.

Yeah. Hi, am I audible?

Yes.

Yeah, yeah. Congratulations on great set of numbers. Thank you. In your presentation, you have mentioned like from FY28 onwards, we intend to re-enter the growth phase with a focus on specialty and import substitute chemicals. So can you throw some light on this?

Yes, as I just answered, so we are looking at doing some fresh CAPEX in the specialty chemical space. It will be mostly import substitutes, introducing new products, something which is not being produced in the country. We have bought a piece of land, about 100 acres, in Natsingpur, in Madhya Pradesh. We are looking at a mega project in that area, maybe looking at a capex of about 500 crores going forward, which will mostly be in the rain processing segment in the Specialty Chemical Division. So we are in the process of evaluating different projects as we speak.

Okay. Thank you. Thank you. That's all for my ferry and all the rest.

Thank you. The next question is from the line of Pushkar Jain from Millie Capital. Please go ahead.

Hello, am I audible?

Yes.

Yeah, so given like the recent softness in maize mandi prices, is there a risk that farmers may reduce their sowing acreage next season? Or what is your outlook in general about the maize prices also because of the unusual rains in the north? Is there any impact on the quality that we are getting?

You know, in agribusiness, we are very used to these things. Like, we have been actually producing, procuring maize from the past 25 years. We have always been a grain processing company. First, we were making sorbitol, then starch, then fructose, now ethanol. So, grain is not new to us. The fluctuations in grain prices is not new to us. And any kind of grains hampering the crop is not new to us. But now, those things are actually quite old. The farming techniques have very much evolved, and crops are not getting affected as the way they used to be. And even the logistics has improved so much that today, maize is being produced in different months in different parts of the country. It is not that only Bihar is producing maize. Now, even Assam is producing maize, even UP is producing maize in this season. So, we are getting from many, many regions. So, now the effect is not as much because of climate conditions. And as far as the farmers are concerned, they are very happy with the prices that they are getting and that the revenues they are receiving and the cash flow for them has improved. It's our industry and the starch industry is paying the farmers within 10 to 15 days. which is fantastic circulation of the money of the crop and a maize crop is grown within 90 days so they can actually use the same land with about three to four ration of crops. So, farmers are very happy and going forward, the yield per hectare will only improve for maize.

Right. So, any outlook on the prices for maize in the next, say, one, two quarters?

So, currently, the prices are ranging between 19 to 22 rupees, depending on the... Depending on the region. Like right now, it is in the north. We have the Rabi crop. So we are getting better favorable prices in the northern plants. Crops from Bihar and UP and Assam. So there, in that region, we are getting at about 19-20 rupees. MC, we are getting about 22 rupees. But now, in the second half of the year, when the Kharif crop comes in, this will reverse. MP will receive better price crop at about 18-19 rupees, and Sam and Musabun Agar will receive at about 22 rupees. So this will keep changing, depends on the geography. But the range is this, which I think will continue for the whole year.

Right, and our break-even cost would be like something, right?

Sorry, I lost you. Will you what?

Like, our break-even cost for ethanol would be made at 27-28, right?

No, no, no. At EBITDA level, 24.

Positive EBITDA at 24, please. Okay, okay, okay. Thanks a lot, man.

Thank you. The next question is from the line of Mirabh Bhanushalief from Systematics, PMS, and AIF. Please go ahead.

Hello, am I Ardaman?

Yes.

Yes, thanks for the opportunity, and congrats on good set of numbers. My question was including the CapEx. CapEx, which you were mentioning, that you are planning to spend around 500 crore. So, how is it? How should it be distributed over 28, 29, and the funding of that equity and debt ratio on that fund?

It is going to be a combination of everything. We yet have to put those details together and get the board approval. So, it will be spent over 28 and 29, over two to three years, because it is going to be a mega project. So, yes, it is going to be a combination of debt, equity, both. And it required some fundraising, but we are evaluating all options.

And second is what kind of IRR we are seeing for this, which products we are planning for this kind of big capex.

So, any product which you are evaluating should have an EBITDA of about 15%. That is our basis of evaluating and finalizing the product. So, yes, based on that, you can expect ROCE about 22%.

Okay.

Again, all depends. We are still in the process of finalizing the project.

My second question was on this, like we have currently the government is close to E20, and there were talks planned as E23 or E27, probably on the fast track, so you can get some data on that side.

Yes, ethanol is a very, very favorable policy for the government and for the country in every way. And with the crude prices going at an all-time high, it is only favorable for the government to increase the blending as far as possible. And the country has already shown that how easily it has achieved E20, and that's when Duxley is sitting on free un-replaced capacities. So it is very favorable for the government to shift, to increase vending 22, 25, 30, also E100, E85. So there are various models which the government is evaluating and rolling out very, very soon. In fact, already this year, there is going to be a trial of about 100 petrol pumps all over the country. And next year, this will go up to about 5,000 petrol pumps all over the country. Government is very, very in favor of increasing vending. And as a country, we are actually very proud that we have been able to compete with the ethanol players of the world, which is USA and Brazil, in being able to vent ethanol at such high levels in such a short time.

Okay. Thanks. Thanks for answering my question. And I still hope for our future.

Thank you. The next question is from the line of Charvin Zaveri from Share India. Please go ahead.

Oh, yes, thank you for the opportunity. So my question was, among the company's three major segments, which are the ethanol, creating processing, and mineral processing, which segment do you think which will be contributing the highest incremental EBITDA growth over the next two, three years?

Of course, for the next two years, this year, the Exxon segment has been the major revenue contributor as well as the profitability contributor, and I expect the same trend to continue over the next two to three years. And any kind of, this mix will change once we are coming out with our new CAPEX and we are into the next growth phase. But until then, I'm expecting ethanol segment to be leading the revenue as well as the profitability for next two to three years.

Okay, and also, could you elaborate more on the speciality chemicals opportunities that you said that you'll be evaluating after the FY28? So, like, how much margin is it to be contributing, and how much growth will it be contributing going forward?

We are looking at coming out with a mega project, looking at a project of about 500 crores, which should be able to give us a generated revenue of about 1,000 to 1,500 crores. So our vision for the next four years is to take the company to about revenue of about 5,000 crores. So that is the target, the vision for the company.

Okay. Thank you so much.

Thank you. The next question is from the line of Haid Korecha from Ventura Investments. Please go ahead.

Hi. Am I audible? Yes, you are audible.

Good evening. Thank you for the opportunity. So, congratulations to the management on doing a strong set of numbers. So, my question is regarding the raw material side. Could you share the current raw material needs for the listeners and specifically how the release of XPI rice has impacted the cost and overall performance economics in fiction quarters?

So, government has made a mandate for the ethanol industry to lift 40% FCI rice to produce ethanol. That has increased the grain availability, the balanced grain availability in the country, and also softened the maize and damaged broken rice prices. So, this year, especially in the last quarter, three, quarter, four, after the mandate got executed, we saw sharp drops in maize and rice prices, which also directly impacted the profitability of the company. And as we can see in the last two quarters, operational profits in the ethanol segment have sharply risen, and I'm expecting a similar pattern to follow in the next. Two years, until the FCI rise is, will be made available to the ethanol industry.

Okay, okay, thank you.

Thank you. The next question is from the line of Ayushman Thakkar from AT&E Advisory LLP. Please go ahead.

Hello. Am I audible?

Yes.

Good evening, everyone, and first of all, congratulations to the management on delivering such a strong set of numbers. Like, I had a question regarding the working capital. Like, could you please help us understand the reason behind the inventory buildup witnessed in quarter four and following up to that, whether this is a temporary phenomenon or something more structural in nature.

So, this is a pattern you will actually see every year that there is inventory built up in quarter 4. That is because the OMCs tend to increase their listings from the sugar industry as compared to the grain division because ethanol from sugar is available only till March and maximum April. After this, we are fully dependent on the drain ethanol manufacturers. So, this is a typical theme that we are seeing since last two years, that in March end, we tend to sit on some ethanol inventories. The lifting is comparatively slower, but however, in the subsequent quarter, this has always got evened out.

Understood. And I had one question regarding the order book like was the order book allocation has been in in line with your expectations.

Our current order book is definitely lower than what we had applied for and expected. Last year, we had an order book of 21 crore litre. And this year, we wanted to get allocations for 23 crore litre, against which we received for 18 crore litre. However, we are very confident that in the next two quarters of this year, of this ethanol year, we will be able to make up this gap. Because the government is very robust and very positive in increasing the blending, and as it will increase blending, its requirements for ethanol will increase, and they will have to come out with further more tenders, and based on which we will be able to increase our allocation.

All right, understood. Thank you so much, and all the very best for the future.

Thank you.

Thank you.

Participants who wish to ask questions may press star and 1 at this time. The next question is from the line of Kavya Padia from Analyam Capital.

Please go ahead.

Hello, I am an audible.

Yes.

So, my question is, how is the company to get both market volatility and particularly from China?

I'm not able to understand. Can you please repeat your question?

My question is, how exposed is the company to the exposed market volatility, and that particularly from China?

So, a company exports Sorbeton to about 45 countries. And right now, So, yes, in fact, the exports of sorbitol and starch in the country have improved as it is now able to compete with China and other countries because there is softening of maize prices across the country. So, now it is more price competitive. So, hence, the exports for SARS and SARS derivatives has increased, and even the company is able to get better realization and better margins on these products.

Okay, thank you.

Thank you. The next question is from the line of Sachin, an individual investor. Please go ahead. Mr. Sachin, your line has been unmuted. Please go ahead with your question.

Hello? Am I audible? Hello? Yes, you're audible. Yeah, congratulations on the good side of the number. I have a question regarding the email segment.

Sorry to interrupt. Mr. Sachin, may we request you move a bit closer to the microphone?

Hello, hello. Now, is it audible correctly?

Yes, it's better.

Yeah, so a few hours actually regarding e-work development, and just now this environment is actually planning for increasing to e-30 and even looking for e-85, e-100, e-100 also. So often looking at that, you can see that at present, yes, we are, we have that over-capacity of economic production, but, With the increasing government branding, so do we see any kind of like over supply or over demand coming in this segment in coming years?

See, the demand will be met with supply, that is for sure. I mean, ethno-industry has been supporting the government's demand over the last three years, and government wants 20, ethno-industry is ready with 25. So, I don't ever see that demand with the modern supply. That problem of the government is over. Ethron industry has come out in a very strong way and is able to produce more than 2,000 crore litres with existing capacities and the capacities which are already in the pipeline. Hence, I don't see any government having any issue with getting supplies of ethanol in the next few years.

Okay. So, are you looking at any kind of KPEX in general regimen also?

We are not close to it, but yes, with time, we may look at enhancing some capacities if required.

Okay. Okay. Thank you so much. Thank you.

Thank you. The next question is from the line of Kinjal Jain from Inveshnova Advisory. Please go ahead.

Hello. I'm a audible. Yes.

Hello. Ah, yes, you're audible.

Yeah. Ah, so, thank you for the opportunity to ask this question. So, I have two questions. So, first one is, a significant part of the recent improvement in profitability, which is driven by a favorable dynamic. In the ethanol segment, right? So, could you help us understand how sustainable the current level of profitability and EBITDA margins in the ethanol business are over the medium term, especially as lending levels mature and industry supply increases?

We are very confident that we will be able to sustain these margins for the next two to three years and able to give out these EBITDA levels quarter and quarter, as we are basically very confident that the government will continue supplying FCI rice to the ethanol industry. And until that is happening, the entire grain agronomy will stay in balance, and the prices of maize and broken rice will also remain softened. So until that is happening, we are very confident that we will be able to sustain these margins over the next two years.

Okay, and my second question is, given the increasing uncertainty in export markets and continued competitive pressures, like from Chinese players across several segments, would you help us understand how exposed the companies to export market volatility and what measures are being taken to maintain competitiveness and protect margins going forward?

Actually, our export is actually quite small as compared to the entire revenue basket. We are only exporting about 100 crores to various countries, which is a very, very small share. So we are not very, very affected by Chinese prices and volatility in a very big way. We are not very exposed to it. Most of our supplies are domestic. 80 to 90% supplies are domestic. So we don't remain very exposed to export pressures.

Thank you.

The next question is from the line of Nagesh Motamari from An Individual Investor. Please go ahead.

Good evening, madam, and congratulations for the good set of numbers.

Thank you.

Just wanted to know, what is the increase in the non-current investments in this financial demand? From 16 crores, it has been increased to 47 crores. Is it elsewhere?

Which figure are you seeing?

Non-current investments. Last year it was 16 crores.

These are the mutual funds?

Are they?

So yeah, so we have actually invested some money in mutual funds.

Okay.

So this is basically we are maintaining a positive working cycle. Well, because we have some commitments with the bank where we have to have some minimum utilization levels of working capital. Hence, we have actually utilized some funds, invested some funds in mutual funds.

Okay. And can I know when you expect to become a debt-free company, ma'am, going with the rate of income and other things? Any idea?

Oh, then next two years? Definitely, we could be a debt-free company by FY29. I'm confident of that. But, yeah, but our long-term debt will continue till 30. We have our repayments are due for a SAM plant, which will continue until F532, actually. It's an eight-year plan. So, yes, so that will remain. Apart from that, I'm quite confident next two years we will be debt-free, varying apart from the long-term loan on a SAM plant.

Okay. And how long will be the PLI incentives coming to us?

For MP, we will get for 7 years. Sam, we will get for 3 years.

Okay. Because this 4.6% path margin includes PLI, which we got, right?

Yes, yes.

Okay. Okay, ma'am. Thank you. That's it for my all the best.

Thank you. Participants who wish to ask questions may press star and 1 at this time.

As there are no further questions from the participants, I now

hand the conference over to the management for closing comments.

I would like to thank everyone for joining this call and asking very valuable questions. Interaction with investors always improves our own learning of the business and also the sentiments. I'm very grateful to Atlas for having, and share, and share capital for organizing this call for us, and feel free to reach out to our company secretary, as well as Jutal, who was our investor relations consultant, for any further clarifications. And all I wish to say is that, yes, the company is on a U-turn recovery mode, and we are very confident that we will be able to give out a good set of numbers quarter and quarter and create value for the company and for its shareholders. Thank you. Thank you very much.

Thank you. On behalf of Gulshan Pollius Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.