Indo Count Industries Limited (ICIL) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Indocount Industries Limited Q1 FY27 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participants' line 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 touchstone telephone. Please note that this conference is being recorded. I now hand over the conference over to Mr. Mohit Jain, Executive Vice Chairman. Thank you, and over to you, sir.

Good morning, and a very warm welcome to all of you joining us for the Indocount Industries Limited Q1 FY27 Earnings Call. I am also joined by Group CFO, Mr. K. Mullidharan, Manish Bhatia, CFO, and Strategic Growth Advisors, our Investor Relation Advisors. We hope you had the chance to review the financial results and investor presentation available on the Stock Exchange and on our company website. Before I begin with the business update, I would like to take a moment to pay a tribute to late Mr. Kailash Lalpurya, who was an integral part of Indocount and a highly respected leader in the textile industry. For more than a decade, Mr. Lalpurya played a pivotal role in shaping the strategic direction and growth of Indocount. He was instrumental in making several important strategic choices. That has helped in building Indocom into a strong institution. I now come to the business update. Q1 FY27 marks a strong start to the year, achieving several important milestones. We delivered our highest ever quarterly revenue, reflecting the growing scale and momentum across our businesses. A particularly encouraging development has been the rapid scale-up of our new business, which has nearly tripled over the past one year. This demonstrates the strength of a diversification strategy and gives us increasing confidence in its contribution to our growth going forward. Importantly, our EBITDA margin is on a recovery trajectory, supported by improving operating leverage and better volumes across the business. While there are still some cost pressures as we scale, the underlying operating performance continues to strengthen. Our performance for Q1 is in line with our stated guidance for the year of Rs. 5,500 crores with approximately 13% EBITDA margins. Our U.S. manufacturing operations also continue to perform well. Overall utilization has remained around 60-65%, despite the recent addition of our greenfield facility in North Carolina in January 2026. The ability to maintain these utilization levels while absorbing significant new capacity is a strong indicator of our capabilities. Overall, we believe these developments provide a strong foundation for sustained growth and improved profitability through FY27 and beyond. Before I move to further details, I would like to highlight a couple of important developments that reinforce our confidence in the opportunity ahead. We recently participated in Bharat Techs 2026, India's largest textile trade fair, and received an encouraging response from both global and domestic customers across our product portfolio. We engage with distributors, direct retailers, LFS partners, corporate gifting, and hospitality buyers. Another important milestone has been our continued progress on sustainability. Sustainable and responsible growth remains firmly embedded in our strategy, with a strong focus on energy efficiency, responsible sourcing, and integrating ESG principles across our operations. These efforts have been recognized through three prestigious awards by the Confederation of Indian Textile Industry during Bharat Tech's 2026. These recognitions reinforce our commitment to building a business that delivers growth while creating long-term value responsibly. On a long-term basis, India is firmly emerging as a preferred global sourcing partner, with a strong track record in quality, innovation, and delivery. The FTAs act with the UK and EU. Along with positive progress on the U.S. trade deal, are creating a more favorable and level playing field for Indian textile exporters and are expected to accelerate the shift in global sourcing towards India. Let me talk about core business performance now. Our core business was impacted by the U.S. tariff situation last year. We are now seeing early signs of recovery. Q1 FY27 volumes stood at 23 million meters compared to 20.5 million meters in Q4 FY26, representing a 12% sequential growth. Volume throughput was impacted by container availability constraints arising from the West Asia conflict. With the external environment stabilizing, we expect this momentum to strengthen through the year. Q1 volume should not be viewed as a benchmark for the full year, as Q1 is typically a softer quarter for us, while Q2, Q3 are stronger, driven by the US festive period. Call business revenue stood at Rs. 837 crores in Q1 FY27, up 4% sequentially. The change in product mix impacted quarterly realizations. However, the underlying volume trajectory remained steady, and EBITDA margins improved. It is also important to highlight that quarterly realizations can fluctuate depending on the product mix. On a full-year basis, however, we expect realizations to remain broadly intact. We remain confident of delivering our FY27 volume guidance. A non-US core business contributed to approximately 30% during the quarter. The UK FTA restores a level playing field for Indian exporters, while the expected EU FTA will further open a large market on duty-free terms. Together with our existing duty-free access to Australia, Japan, New Zealand, and the Middle East, these arrangements significantly strengthened our global opportunity. As mentioned in the previous earnings call, we expect strong traction from non-US markets going forward and anticipate revenues from non-US markets to grow by 20% plus in FY27. New Business Performance Coming to a new business comprising utility bedding and the USA brand business, momentum continued to strengthen, with Q1 FY27 revenue reaching Rs.387 crores. This performance was supported by an established facility in Ohio and Arizona, the newly commissioned Greenfield facility in North Carolina, and the launch of Arm Suitor in July 25. We remain firmly on track to achieve our FY27 business revenue target of Rs. 1500 crores. On an annualized basis, Q1 FY27 revenue represents nearly 60% of our targeted USD 275 million new business ambition for 2028, providing a strong foundation for the next phase of growth. Update on a black plant. Abhilad Gujarat Manufacturing Facility was temporarily impacted by heavy rainfall and flooding from 23 July 2026. The facility has partially resumed operations from 12 August 2026 with normalization expected in a phased manner. A preliminary survey has been conducted by the insurance company's appointed surveyors and the insurance claim process has been initiated. We adequately insured to cover the losses. To conclude, Indochount is well positioned to capture the next phase of global home textile growth, combining trusted quality, sustainability, strong brands, and increasing direct consumer connect. Looking further ahead, we remain committed to our Rs. 8,000 crore revenue aspiration by CY2028. Supported by continued core business growth and our USD 275 million new business ambition. With this, I will now hand over to Manish to take you through the financial numbers.

Good morning, everyone, and thank you for joining Q1, FY27 and Lincoln. I will first provide a brief overview of our performance. Following this, we will open the floor for questions. So quarterly highlights, Q1. Volume. Safe volume for Q1 FY27 stood at 23 million meters compared to 20.5 million meters in the previous quarter, reflecting a 12% quarter-on-quarter growth, supported by an improvement in overall demand as the uncertainty surrounding US tariffs eased. Safe volume for Q1 FY27 declined 3% YOY, primarily on account of container availability constraints, a temporary logistical issue that impacted dispatches. Total income. Total income for Q1 FY27 stood at 1,224 crores compared to 1,088 crores in the previous quarter, registering a 13% growth, driven by higher volumes in the core businesses and continued scale-up of new businesses. On a YOY basis, the total income grew 27%, largely led by increasing contribution from the new business. Abitta for Q1 Fi27 stood at Rs.160 crores compared to Rs.116 crores in the previous quarter. Registering a 38% quarter on quarter growth driven by improved operating leverage as utilization level increased across both the core and new business. The strong performance was partially offset by higher employee costs, mainly due to the commencement of operations at the greenweed facility and the continued ramp-up across other facilities. Abita margin improved by 241 BIPs to 13.1% from 10.7% in Q4 F526. On a YOI basis, EBITDA grew 34%, with EBITDA margin expanding by 74 business points from 12.4% in Q1 F526, reflecting better operating leverage. Packs for Q1 F527 stood at Rs.63 crores compared to Rs.24 crores in the previous quarter, representing it. 2.5 times sequential increase, driven by improved operating efficiency, lower finance cost, and the absence of the one-off GST refund-related expense incurred in the previous quarter. PET margin expanded by 294 BIPs to 5.2% from 2.2% in Q4-FI26. On a YOY basis, PET grew 62%, with PET margin expanding by 114 BIPs, reflecting stronger operational performance and improved flow-through from the top line to bottom line. GPS for Q1-FI27 stood at Rs.3.19 per share. With this, I open the floor for questions.

Thank you very much. We will now begin with the question and answer session. To ask a question, please press star and 1 on their touchtone telephone. If you wish to remove your question queue, you may press star and 2. Participants are requested to use handset while asking the question.

Ladies and gentlemen, we will wait for a moment while the question is assembled. Thank you. We do have our first question line of obitiator.

Please go ahead.

Yeah, thanks for taking my question and hope I'm audible. Congrats on a good set of results. And, you know, my question was regarding the bilat plant. So you called out that there is some disruption to the operations. So I just wanted to know whether what is the impact on, you know, the what would be the impact on the volumes considering that, you know, the plant has been closed for about, say, 15 to 20 days now. And you also called out that Q2 and Q3 are good quarters. I assume that there will be inventory with you. So, considering the disruption operation, how do you look at Q3 and Q4? Is there any deferment in shipping the orders?

Good morning, Abhishek. On the Bilad facility, let me tell you that we are fully insured. We are only increasing our scale of operations in every department out there. Over the next couple of quarters, we are confident to serve each and every customer for all their orders. So we should be able to make up our lost ground.

Okay, so, so you, you were, so I assume that you were able to, you know, kind of offset the production loss in Bilal, in your other plant? That's the endeavor. Okay, okay, okay. And just another bookkeeping question. So, I see the other, other income has, you know, on Y and Y basis, it's slightly on the higher side. So, like, what's the reason is some forex lien or something?

What is on the higher side? Come again, you are not clear.

Other income.

Other income is in line. If you see last year was 80 crores, right now is 20 crores.

Okay. Okay. I might have missed something. Sorry. Yeah. I'll get back into the queue.

Thank you. Next question is from Raman K.V. from Sequent Investment.

Hello, sir. Can you hear me?

Hello. Sir, I just have two questions. One is I just want to understand what's the margin difference across our core business, which is bedlining, versus our new business, which is like utility bedding and branded business. How much of a margin depends where these two businesses have.

No, as we have mentioned, Raman, that our objective, once our utility bedding business achieves full scale, we expect to do 15% also on the utility bedding business. Of course, as we are in scale-up mode and our new greenfield project has just started, you know, so, you know, any new facility that starts, there's a gestation period, you know, so keeping that in mind, that's why the margins on that facility is on the lower side. But otherwise, our bed linen business, you can get a respective idea from our standalone numbers. So we've done slightly better than 15% in this quarter. You know, but over a period of time, we expect both businesses to do similar margins.

So bed designing and utility business are like a 15% margin business. So my assumption is a branded business should be a much better, higher realization business. So is there any margin difference?

So, again, as we mentioned, you know, I just want to be clear that from a long-term perspective, we expect our bed linen business to do 15%. We expect our utility bedding business to do 15%, and our brand business should do 100 to 200 basis points better than 15%.

Understood. Yeah, that was my main... Okay, and second question is, from the revenue perspective, how much I knew was from USA during this quarter versus last quarter?

From the new business or from the USA? I did not follow you.

Over all, over all. So, I was asking on a consolidated basis, how much revenue was from USA during this quarter versus the last quarter?

So, I can tell you our core business, 70% of our revenue comes from the US, and 30% comes from non-US countries, you know, and the new business is all US. So, the 387 crores is all US. So, you can do the maths.

Understood. Thank you.

I'll just turn back in with you.

Thank you. Our next question is from Nirvana AMC.

Please go ahead. Thank you. Thank you for the opportunity.

I just wanted to sort of clarify whether there was any tariff refund in the quarter and how did we account it for?

No, there is no tariff refund in the quarter, Naveena, at this point of time. Oh, you got it.

Thank you. Thank you. Our next question is from the line of plan from all Accurate Advisors. Go ahead. Hello, please go ahead with the question.

Hello, am I audible?

Yes, yes.

So thank you for the opportunities.

So like as you mentioned in an initial remark that there was some container issues in OneQ. So how is the situation now and like are you confident of volumes shipping out the volumes in the next two, three quarters?

So, as we speak, we are confident, you know, of achieving our guidance of 105 to 110 million meters and 4,000 crore revenue. The container issue continues.

Okay. And on the new business, so 2Q and 3Q are usually stronger for the new business?

No, you know, the new business is very new for us. So, it will take us some time to get the, you know, what's the variability in the business. You know, from a core business perspective, I would say that Q2 and Q3 are historically been the higher quarters.

Okay, so you expect this run rate to continue in the next two, three quarters? What run rate? The 370 crores that we have done in the new business.

So for the new business, we've given a guidance of 1500 crores for the full year, you know, so we should be able to be on track for that.

Yes, thank you so much.

Our next question is from the line of Bhavin Cheda from Inam Holdings. Please go ahead.

Good morning, sir. Overall, very good numbers and very strong guidance also in the presentation. A few questions. First, to continue on the tariff refund. You said that there is no tariff refund in the quarter. Can you guide us whether you are expecting any tariff refund, any filings made or any filing made by distributor or client for the goods supplied by Indocount? And how the discussions are going around with the clients on the same?

Good morning, Bhavan. So, we do not expect any material financial benefit from the potential U.S. tariff refund, Bhavan. Nearly 80% of our exports are on FOB basis, where the tariff is borne by the importer. As the process is still evolving and discussions with customers are going on, it would be premature to quantify the amount or the proportion that might ultimately come to the company. In our view, we'll have a greater perspective and clarity by the end of the year, and we'll keep all the investors updated on the same.

Sure. So my second question is on the bed linen realization was approximately 357 rupees a meter, which I see on a YOY basis was just higher by one and a half percent. Despite rupee depreciating by over 9-10% and tariff coming in Q1 much lower than what it was last year, why we don't see it getting reflected in rupee realization? Because even assuming dollar realization being same, so has there been an impact of product mix or we are still to take price hikes upon the clients?

So, we have seen an impact on product mix in first quarter, but as I have mentioned, look at our realizations on a yearly basis. So, on a yearly basis, we will be absolutely fine. And as far as your question on price increase, as we have mentioned last year, last call also, that of course, as we are aware that post, as the war took place in February end, Sorry, you know, all raw material prices have gone up. So, on a case-to-case basis, we've gone back to all our customers and we've concluded all our price conversations. So, those impacts will come from Q2 onwards.

Okay, so, in the rupee terms, we'll keep on seeing price improving as the impact of the client negotiation that comes in through, right?

Yeah, yes.

And my last question on the non-U.S. business, obviously the U.K. tariff FTA has come through. So how much of the business we have in U.K. and how we are seeing on the client interaction, whether clients have started sourcing more, has there been new client inquiries, if any update on that? Because we obviously will have 9 to 10 percent benefit there now.

Our UK business has been between 8 and 10%. Having said that, we have a very active office in the UK with a team there. And our interactions, let's say we were interacting with a client, I'm making it up four times in a year. That interaction has gone up eight times in a year. So the interaction, whether it's the UK or the EU, has gone up. Whatever we've seen from the past with FTAs, it's not a switch on and off, right? As soon as the FTAs happen, something happens dramatically the same quarter or next quarter. It takes, I would say, 12 to 18 months to pan out. So we are seeing that visibility going forward on the positive side.

Sure, and obviously, also given a guidance of over 20% revenue growth, you are seeing in the non-US business. So, is that partly reflecting new business in UK plus EU area?

Absolutely. Those countries and other parts of the world also.

Thanks a lot, and best of luck, sir.

Sorry to interrupt.

We'll take the next question from the line of Kostopavaskar. Please go ahead.

Good morning, sir. This is Kaur Stubia. Congrats for a good set of numbers, and thanks for giving me the opportunity. Sir, I have one question. Your standalone EBITDA margins for this quarter, you know, it has improved to around 13.9%. So, if you look, you know, into the pre-tariff, you know, as well, your standalone EBITDA margins was around 14 to 14.5%. So, going ahead, considering the fact that there are certain supply disruption and the cost has gone up, also this bilhar facility, which was non-operational for around 20 days. So, considering that, should we expect some decline in margins in quarter two, quarter three?

On standard level, at standard level.

Members of the management team?

Yes, yes, I can hear you, ma'am.

Yes, sir, please proceed.

Yeah. Kostup, can you hear me?

Yes, sir, yes, sir.

Yeah, yeah. So what I said is that I will not be able to guide you at such a precise level, but I endeavours to maintain our 13%, you know, blended margin, you know, on a consolidated basis. Look at it from that perspective, some quarter here and there, a little bit does not matter, you know, so for the full year, that's an endeavor.

Right. So, just from the understanding point of view, are we expecting any, you know, one-time, you know, losses because of this disruption what you have, you know, seen in the BILAR facility? Anything on that front if you could help us?

Sure, sure. No, all our facilities are adequately insured, you know, whether it's for property, whether it's for inventory, whether it's for loss of profit, you know. So, as a company, we are adequately insured in all our locations. Including the lot, of course.

Okay.

Thank you.

A reminder, we'll leave the next question from the line of Jatin Damania from Swan Investments. Please go ahead.

Good morning, sir, and thank you for the opportunity. So, just one question, which is on a new business. So, on the new business, other than the bedding and utility, can you throw a light, how are the branding and the licensing brand business doing, and how one should see a ramp-up over that?

Good morning, Jatir. So, you know, our endeavor is to do around $100 million over the next three years in that business. And right now, it remains two-thirds of our revenue coming from our utility bedding business, which is a manufacturing business, you can say. And one-third of the revenue coming from brands. On the branded business, we are selling not only what we produce, so we are selling all soft home textiles, you know, which includes towels, bath mats, window treatments, rugs, utility bedding, which is pillows, mattress protectors, downhole comforters, bed linen, quills, comforters, you know, blankets, clothes, so a whole gamut of products. So our expectation is that in the whole year, we'll do around 500 crores in this business. And in this quarter, you know, we've done slightly above 125 crores. You know, if you look at one third of 387, roughly, you know, so it's going in the right direction, you know, and as we had mentioned that Vamsut also we launched just a year ago now, if you think about it, and it's slow and steady, but the building blocks are there.

Sure, sir. And brand business are 100 to 200 with better margin than our existing business of 15% that what we are going to do.

Once we get to, you know, 100 million, that's when that will trigger, you know, because right now there's a more, you know, we have the whole team in place. There's more investment going in to build, you know, these are very new businesses. So I think it's commendable for the company to be able to build a 1500 crore revenue in less than 18 months.

Thank you. And on this investment also, are we looking at further investments on the employers of front in terms of the growing of business to 100 million or probably the investment is already done?

I mean, there would be some balancing investments. You know, there's always, it's not 100% done, but I would say 70-75% is in place here. Yes, sir. Thank you so much. Thank you. But, you know, I mean, it's an evolving economy, evolving business. We are also learning as we are moving forward.

Thank you.

Thank you. We'll move on to the next question. That is from Asian Market Securities. Please go ahead.

Hello, Shraddha.

Yes, ma'am. Please proceed. Yeah. Hi. Congratulations on a very resilient performance. Two questions. First is in terms of our utility bedding business, how should we look at the ramp-up of utilization over the next two, three quarters? And then I have a follow-up.

Sure, morning, Shraddha. So for utility bedding for this year, our endeavors to be at 60 to 65% utilization, you know. Our new facility just came on stream somewhere middle of January. So even keeping that in mind, you know, we were able to be around those utilization levels in Q1, and we think we should be stable around these levels for the rest of the year also. So for the full year, you should look at 60-65.

But why is that the case if we've already achieved 60-55% utilization in 1Q? You're not a magician. No, that's true, but for the next nine months...

If I would have done 20%, then you would have asked me why 20%. If you've done 60-65, you're asking me why. So, I mean, you know, there can be ups and downs in businesses. So at this point of time, if you're able to do 60-65, we are very satisfied. You know, and that's the level that we'll be at.

Right. And in terms of input cost inflation, have we been able to pass on that to the tailors in the US on the utility side?

Yes, because, you know, the utility bearing business, we are competing with facilities or competitors within the country, you know, so everybody is at the same level playing field.

And what is the ratio between cotton and non-croton for our utility business?

It's a mixed basket, you know, depending on the customer trends, what customers are looking for. A lot of these are performance-based fabrics, so we use products like nylon, polyester, stretch fabrics, mix of cotton with these. So it's a whole gamut of products, you know, and we have a global sourcing team in place. We have an office in Shanghai with people there, so they do global sourcing, and depending on the product, raw materials are sourced, accordingly.

No, sir, which is why, I mean, we've seen a higher input inflation in, you know, non-cotton-based products because of the Middle East crisis. So, to what extent have we been able to pass on that inflation to customers?

We're able to pass that on. I mean, there could be some lagged effect of two, three months here and there, but otherwise, it's passed on, you know. And if it's something consistent, then there's enough value engineering that can be done on the product also.

Okay, and the other question is in terms of our core business, the branded portfolio in the core business. So, like the new business, you said that you are sourcing from, you know, other players as well, and it's not only own manufacturing that we supply. So, within the core business, branded portfolio also, do we source from other players, or is it just our own production that we supply in the branded mix?

Out of the core business, it's only our production. If that's your question.

So just bed linen and that too are manufacturing, nothing sourced from outside.

In the core business number?

Yeah, yeah.

Correct, correct, correct. We manufacture bed linen, quills, comforters, you know, utility bedding, all of that is here.

Right, and how should we look at the core business branded mix margins vis-a-vis the non-branded margins in core business?

So, you know, I just want to clarify one point. So, for the four brands that we have, which is Vamsuta, Fieldcrest, Waverly, and Gayam, which are our four, what we are classifying as a U.S. brand, any business that is even produced at a facility in India at Indocount, you know, the meterage comes in the overall meterage, but the revenue is captured in new business. Okay. The rest of the business, when we are declaring that our overall business mix, 20% is a branded portfolio, a lot of those are our house brands, you know, that we will be selling on e-commerce, on Amazon, Wayfair, Overstock, you know, other platforms. So there the blended margin of the core business remains at 15%.

No, so what I'm trying to say is that new business comprises of two segments, right? One is your utility and the other is branded. That branded business sourcing is from other countries, other players. But in your core business, branded business, the sourcing is from your manufacturing only.

Okay. So, again, just hear me out. In our branded business, Let's say if we are selling a towel or a curtain, which we do not produce at Indokan, those are sourced from outside. But if we are selling a bed sheet, that is sourced within our own company, from our manufacturing facility, then Kolapura, Vilad, and that number is coming under the new business, under brands.

Got it. So in your total 30% branded business, how much would be sourcing from outside?

We've said our total branded business is 20%, irrespective of anything, and our total brand business this quarter has been roughly around 125 crores. So, 10% is under these new brands, if you take it as a part of the whole company, roughly.

Got it. Got it. Okay. Thanks for this clarification.

Thanks. Thank you. The next question is in the line of Saranj Gupta from Swan Investments. Please go ahead.

Thank you for the opportunity, sir. Sir, I just wanted one clarity. Sir, as India's relative tariff position in the US is improving, so how are we positioning Indocount ahead of the upcoming trade agreement? Like, are we seeing customers shifting towards India, and is there a bigger opportunity that is available for market share gain, or still there would be a price mix?

See, India is extremely well positioned, you know, even at 50% tariff, we as a company did not lose a single order or a single customer. You know, so now with at 10%, India as a country is extremely competitively placed. Having said that, even our neighboring countries, everybody is between 10 to 12 and a half, you know, so nobody is at a major disadvantage or an advantage, let's say. China erstwhile has a 301 tariff, which has been there in 2019. So that is always remained there. From our product category perspective, we are really not competing on those product categories at this point of time. You know, so today, I mean, in our product category of bed linen, I mean, home textiles, I would say in general, India was extremely well positioned and continues to be extremely well positioned.

Thank you.

Thank you. We'll move on to the next question. That is on the line of Raman KB from Seekon Investments. Please go ahead.

Hello, sir. Thank you for the follow-up. I just have one question. Sequentially, our interest costs have declined. Have we repaid any of the borrowings or have we refinanced the existing borrowings? And going forward, what will be the interest cost for the year?

In Q4, we had a one-time hit-off around 13th roads on a GST issue that has been taken. It's not there in Q1, so that's the only change. Otherwise, our interest cost remains flat more or less.

So around 70 crores of interest payment will be there during this year, 70 to 80 crores, right? Same level, yeah. And if I can ask, can you, what's our weighted average cost from that?

Raman, I mean, our interest cost, we are at a 30 crore run rate per quarter.

So we are at 120 crores, not 70 crores. Yeah, sorry, yeah, yeah, 120, my bad. So what's our interest cost, right?

Defense, bank to bank, you know, I mean, but we are competitively, we have a rating of A+, and we are competitively priced, you know. I mean, we cannot tell you the exact cost, because it will change from bank to bank, you know, between 6 to 7% roughly range. Understood, sir. Thank you.

Thank you. The next question is on the line of Pranav Malhotra from Starship India. Please go ahead.

Yeah, I thank you for the opportunity. Yeah, my question pertains to the margin. Basically, do we see 15% as the ceiling? Because, you know, if you're going towards branded and also chasing, like, e-commerce, I believe, on Amazon, as you mentioned. So do we believe that we can break through the 15% or is that going to be a ceiling?

No, Pranay, we don't have any ceiling in our mind, you know, I mean, we have to take one step at a time, you know, so we're coming through a tough tariff situation, and, you know, so we are at least...

Sorry, this is for the long term, I'm asking, like, not just for this year.

No, so for long term, you can say, right now, our target is to stabilize at 15 to 16% margins, as a company as a whole, and we'll keep recalibrating this as we move on, and, you know, we understand more. You know, as to how the business is progressing, how markets are progressing.

Okay, so thank you so much. And just one question on the U.S. ground situation. Like, we had read that, you know, the retail sentiment has been improving. And we believe that we can do better numbers, like, in the macros. So do we also view that in the core volumes, like 110 meters, we can exceed that?

At this point of time, we are comfortable with 105 to 110 million meters, you know, keeping in mind that customer off-take will be on the positive side.

Okay, sir. Thank you. Thank you so much.

Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star in one.

Participants, if you wish to ask a question, you may please press star in 1.

Ladies and gentlemen, due to time constraint, we take that as our last question. I now hand the conference over to the management for the closing comments.

Thank you, everyone, for joining us today. We hope we've been able to address all your queries. Should you have any further questions, please feel free to get in touch with SGA, our investor relation advisors. Thank you once again for your continued interest and support. We look forward to connecting with you on our next call. Thank you.

Thank you, members of the management team. Ladies and gentlemen, now on behalf of Indocount Industries Limited, that concludes this conference call. We thank you for joining us. Anyway now, disconnect your lines. Thank you.