Thank you so much. Good evening, everyone.

On behalf of Mrs. Bectors Food Specialities Limited, I extend a very warm welcome to all participants joining us for our Q2 and H1 FY26 financial results discussion call.

Today I am joined by Mr. Manu Talwar, our Chief Executive Officer; Mr.

Suvir Bector, Whole-time Director; Mr. Parveen Kumar Goel, Whole-time Director and the Chief Financial Officer.

We also have with us our investor relations advisor from MOX in time. I hope everyone has had an opportunity to review our investor deck and press release, which has been uploaded on the stock exchanges as well as on our company website.

I am pleased to share that the company has delivered its highest ever quarterly revenue of ₹551.4 crores, reflecting a growth of 11.1%, seeing a sequential improvement as well versus our Q1 growth of 7.6%. With this, our H1 of FY26 has grown by 9.5% over H1 of FY25.

The strong top-line achievement was driven by both our verticals, biscuits and bakery, each delivering their highest ever quarterly numbers. On macroeconomic environment and outlook, we wholeheartedly welcome and thank the Government of India for rolling out GST 2 reforms under the esteemed leadership of Prime Minister Shri Narendra Modi ji.

These reforms, coupled with easing interest rates, mega taxation relief in Budget 2024, led to a spurt in festive demand and now show early signs of a broad-based improvement in consumption. Our entire domestic biscuit portfolio now benefits due to the rate cut from 18% to 5%.

With the announcement, we demonstrated strong operational agility by promptly executing price reductions across our portfolio, ensuring that the benefits were directly and immediately passed on to the consumers. While the GST reduction remains a structurally positive development, it temporarily disrupted trade as channel partners awaited further price adjustments in anticipation of revised MRPs.

Consequently, we witnessed a brief moderation in domestic biscuit sales during September and early part of October. Distribution expansion remains a key pillar of our revenue growth management strategy, a strength that has been consistently demonstrated over the past few years.

We are working on our strategy for the next phase of RGM strategy, including distribution, products, and margin for the period 2026 to 2030. Exports continued its resilient growth trajectory amidst global uncertainties and slowdown.

With an anticipated impact of tariffs, we pursued an aggressive strategy to diversify and mitigate the likely impact. We remained hopeful of a favorable outcome from the ongoing trade discussions between the India and the US, which would have a positive impact on our export business, further accelerating our growth momentum in the coming quarters.

We remain focused on expanding markets and buyers across with an aim to increase our branded presence as well as our white-label footprint. Overall, we remain optimistic about the growth trajectory of our export business, supported by a strong franchise, a customer-first approach, and an aggressive geography and a portfolio diversification strategy.

The English Oven brand continues to deliver high double-digit growth, driven by strong brand equity, a robust pipeline of new products, and a continued distribution expansion. Quick commerce has emerged as a key growth catalyst, significantly enhancing both reach and visibility for English Oven.

We continue to maintain leadership in the Q-comm segment, which is witnessing an exponential growth. In the upcoming quarter, we will be further entering into the East India market with the launch of English Oven in Kolkata, followed by further expansion into Southern India.

The commissioning of our Khopoli bakery plant in Q4 will provide additional momentum to our distribution and revenue growth in Maharashtra. We continue to invest behind our core brands, English Oven and Cremica.

The Cremica brand has been performing strongly in international markets, now contributing over 50% of the export revenue. To further strengthen our brand portfolio, we are in the process of developing a comprehensive brand strategy, which is expected to be finalized by Q4 FY26, with a strong emphasis on new-age consumer trends, evolving consumption patterns.

On the technology and digital transformation front, we had embarked on a comprehensive overhaul of our IT infrastructure, with a primary focus on upgrading our core ERP system. We are making consistent progress and remain on track to transition to SAP S/4HANA by Q4 FY26, with complete implementation targeted by first quarter of Financial Year 2027.

Now I will discuss financial performance. Starting with biscuits, our biscuit segment revenue reported a revenue growth of 10%, which stood at INR 350 crores in Q2 FY26 as compared to INR 320 crores in Q2 FY25.

This segment has grown by 35% over Q2 FY24. On bakery segment, revenues for Q2 FY26 stood at INR 194 crores against INR 167 crores in Q2 FY25, thus registering a growth of 16% year-on-year basis, including retail bakery and institutional segment.

This segment has grown 38% over Q2 FY24. The consolidated revenues for the current quarter stood at INR 551.4 crores versus INR 496.3 crores in Q2 FY25, thus registering a growth of 11.1% on a year-on-year basis.

EBITDA for the quarter stood at INR 69.3 crores, with EBITDA margin coming in at 12.6%. PAT stood at INR 36.5 crores, with a growth of 18.2% on a quarter-on-quarter basis.

Our PAT margin for Q2 FY26 was 6.6%. Moving to H1 FY26 financial performance.

The consolidated revenue of H1 FY26 stood at INR 1,024.4 crores versus INR 935.7 crores in H1 FY25, thus registering a growth of 9.5%. EBITDA for H1 FY26 stood at INR 127.5 crores versus INR 134.5 crores in H1 FY25, with EBITDA margins of 12.4%.

PAT for H1 FY26 stood at INR 67.4 crores as compared to INR 74.4 crores, with a PAT margin of 6.6%. With this, I would request to open the floor for question and answers.

Thank you so much.

Hi, good evening. Congrats on good set of results, especially on revenue side.

My first question is on biscuits. This 10% growth, in your opinion, how much impact would we have seen because of the GST transition on biscuits, as well as how much impact you believe you would have seen because of the imposition of tariffs?

If you could just help us understand in a normative environment what that growth could have actually looked like.

Good afternoon, Harit ji. Our impact on overall quarterly revenues on account of GST could be close to 1 odd percent, right, which was there.

On account of tariffs, we definitely had an impact in the H1 on account of tariff and the duty tariffs going up. Now looks like the indication by both the represented of both the governments have been very positive.

We saw a positive outcome coming soon. That definitely will have a positive impact in terms of further enhancing our growth and margins on account of US treaty.

That's how I look at it.

Okay. The second bit was on the margin.

If you look at the raw material environment from quarter 1 to quarter 2 has actually eased off a little bit, but your gross margins have actually tailed off a little bit from quarter 1 to quarter 2. Is there a product mix or segment mix issue here that has happened in this quarter?

Or is there a higher cost because of the tariffs? Or if you could just help us understand what's resulted in a bit of a dip from quarter 1 to quarter 2?

There were about two, three reasons. One reason was that what happens as per the accounting policy, on a international export business, whatever freight we recover, that gets clubbed along with the revenues, right?

Freight, which were higher in same quarter last year, right? That clubbing of revenue has kind of a made a difference there.

Second is there is a somewhat of a business mix impact, which is there, right, which has impacted here. A third item is that there are certain incentives by DGFT, right, which government has temporarily put on hold to kind of review the same and then release and basically strengthen that whole process, right?

There is some impact on account of that. That is why probably the margins have remained flat over the last two quarters at around 12.5%.

Okay. This DGFT factor, which shows up in your operating income, is that something that there's a permanent reduction happening there, or is this a temporary stoppage till the...

It's temporary.

Okay.

Actually, I'll take it. We have two options actually in this, right, that either we can take an advance license and import because we are exporting our good, right?

We either get a DFIA where we get a license and we are able to dispose of the licenses in the market, or we have to create our own infrastructure to start importing things duty-free, right? Right.

It's basically, I think, like Manu said, it's more about reviewing, and so they're currently, from August 27th, they were put on hold. We've not been able to book that much incentive for the time being.

We are pursuing with the government, and I think there'll be a solution soon on that. Got it, got it.

The other thing was on the...

Or we will move to an advance license where we will start importing raw materials, you understand.

Either way, it kind of, at least from a profit standpoint, it becomes neutral, right? From...

It will, but currently we are not importing because we did not go that route, right? In case there is the benefits of importing are more than the licensing, then we'll go for imports, direct imports.

Where we can import whatever ingredients are being used in our biscuits, we can import them duty-free.

Understood, understood. Just one thing on the biscuit export bit.

There would have been some disruptions, especially in the US. I just wanted to understand whether how one is dealing with that in the interim, whether is it that you are kind of your buyer and you are sharing this impact, or are the, yeah, go ahead.

Currently there has not been anything like that which has happened. All our large customers have accepted all their orders.

In fact, I think what has happened is our buyers are still visiting us. We are working on our strategy going forward, but definitely, they are also waiting the tariffs to come down to a more rational levels, right?

At a 50%, it does become a bit tough. Going forward, the projects which were on the infrastructure stage, new product developments, where we're working with our relationship partners, it continues in the same manner.

If you ask me has the business been impacted, yeah, there has been some impact on the business where people are going slow because they are expecting the tariffs to come down, the ordering is slow. That is I think it's more temporary, which will come into place very shortly, yeah.

Understood.

If you see, our exports overall have grown. They have grown more than last year.

That I think that has been a good thing about exports.

Understood. I'll get back in the queue for more.

Thank you.

Sir. Thank you for the opportunity and good performance on the biscuit side, domestic biscuit.

Sir, could you just provide some insights, would be fair to say it would be double digit, right? Exports would be slightly lower than the domestic business growth in the biscuit segment?

Amit ji, we don't share, as vertical-wise growth, but overall biscuits, they both performed in a kind of a similar trajectory for this quarter. As I told you, the domestic biscuit was definitely impacted a bit because of the GST implementation, which I think every FMCG company has very well expressed in the month of September.

I also shared that impact was close to 1% on the quarterly revenues. Yet both have kind of performed well in that direction.

Okay. Could you just provide some insights on the raw material input cost?

You highlighted the export incentive, the other operating income impacting the margin, but how is RM index for us? Is it comfortable or it is going down?

On the RM side, it is what we had anticipated in our operating plan, it is as per that. It's very tough to look at on a quarterly-to-quarterly basis, because there's certain times there is hedging, certain times there markets can be, but at the moment, I think, RM should not be a concern going forward.

Should not be a any major concern on this. No,

I wanted to compare first half last year versus first half this year.

Manu, you can probably...

Amit, on the quarter-on-quarter basis, now the quarter 2 over quarter 1 has been consistent. There is no major deviation in the prices on overall basis, right?

Whatever volatility we face and we came with the prices for the quarter 1, they have remained on overall basis in line with that. Quarter 2 doesn't have any additional negative impact on account of variance versus quarter 1 on commodity prices.

Okay. Could you just provide some outlook in terms of growth for the next FY27 or just how should one think about it?

On the margin, on the second half, probably margin improvement is a fair estimate, right, versus first half is that for FY26? FY27, wanted your thoughts on top-line growth because now we are close to double-digit revenue growth.

Our aspirations have been somewhere around teens. So...

Yeah. Absolutely, Amit, and our aspirations remain in the same direction.

We want to be a company which want to achieve for the next financial year, and endeavor working and planning for that is to achieve somewhere between mid to little high teens, and that's our endeavor to devise a business plan, which we are working on as of now for the next financial year, and get back there in that range of growth, which we have very well achieved over the past few years, right? Absolutely bang on.

That's endeavor. Also on the margin side, there has been some temporary setbacks, as I call it, but endeavor is to get back to that 14, above 14% EBITDA range and then improve it beyond that.

The first step is to work towards achieving that 14% EBITDA and kind of 14% to 15% EBITDA, maintain it, and then take next steps of improving beyond that. These are cardinal to our strategy, both of it.

Lastly on the freight cost, with the Dhar plant being operational now, would there be some savings, and would you be able to quantify something aiding into margin improvement? Our last year, I think, our freight costs have been pretty high.

It's close to high single digit at an overall company level.

Definitely with Dhar plant, we have put two lines, right? We have as of now commissioned first line, and we're commissioning the second line right there.

In the next financial year, we should definitely see a positive impact on our logistics cost because of that. We will definitely see that, and that's as per the plan.

Sure. Thanks a lot, sir.

Hi, sir. Am I audible?

Okay. Thank you for the opportunity and congratulations on a good set of numbers.

Sir, I had a couple of questions. Firstly, in the bakery segment, you mentioned that English Oven has seen high double-digit growth.

Is this a fair assumption that even QSR growth was maybe in the low double-digit kind of a range?

No. QSR growth in this quarter was in single digit.

It was not in double digit.

Got it. Sir, you mentioned about the target EBITDA margin of about 14%.

Would it be possible to reach that in H2 or the coming couple of quarters, or maybe because of the new plants also coming up, this will be more of a FY27 event?

Definitely our endeavor is to keep improving the EBITDA margin. Yes, for sure, 27 FY27 is one we will definitely achieve that 14% or above EBITDA margin for the next financial year.

Okay. Sir, just one last question.

I think the earlier target was for the full year export growth to be around low teens. Is that something that's still possible for FY26?

For the export growth, yes, we again targeting the low teens kind of growth for the full financial year, right? See, we're still gunning for that.

All right, sir. That's helpful.

We're still gunning to touch. You see, what is the hope now?

The hope definitely is that we should hear some good news also on the US-India treaty. With that getting resolved, we should see a upsurge in our growth on international export side.

We are endeavoring that we should be able to touch double-digit kind of growth for the exports. No, I'm Anoop Bector here.

Another thing is, the confidence of international buyers into our company is growing. We are already working with a number of other companies, large retailers, where the possibility of business getting transacted in the next 3-4 months, in the next quarter or within this year, start of the business can happen, right?

What is important is that we are continuing to develop products with international customers. More international large retailers are coming to us.

That there's a lot of confidence in the international business as biscuits are concerned that Mrs. Bector is a good potential with India, right?

From India.

Great, sir. Good to know.

That is it from my side. Thank you.

Hi. Am I audible?

Thanks so much for the opportunity, sir. First question is on margin.

You mentioned that while FY27 you will try to... Am I audible?

Sorry. You've said that FY27 you'll try to reach 14% plus margin.

Just from a quarterly point of view and given the volatility we have seen in raw material prices in the last few quarters, is that now fully behind and you have taken large part of the price increase? In that context, coming quarter onwards, you should be able to reach your stable state margin of 14% plus?

No,

we would definitely see a margin improvement, right, over the next two quarters, right? Our endeavor is clearly move towards the 14%.

The previous question, which I answered, I clearly said that definitely next year, full financial year, complete year, we should be endeavoring to deliver 14% plus EBITDA margin.

Correct me if I'm wrong, if memory serves me right, earlier we were indicating 15% plus. Am I right?

Have we toned down that expectation because of any reason, or I'm not very sure?

No, no. We have been very consistent for past almost few quarters that we will be endeavoring to deliver EBITDA between 14 to 15.

Once we stabilize at that range, we will work towards taking it above 15% EBITDA. Then November-December last year is when we had a huge commodity price hike and which had to be kind of managed and tackled with, which took about few months to kind of take and correct our pricing and other things to kind of manage that part of impact on the margin.

Yes, we have been always maintaining that our right foot plays along with investing behind... See, what we need to try and understand is that we at this quarter also when we have grown about 11% is close to 2x of industry average, right?

We also need to keep investing behind. We are a young company, and there has to be a investment behind also the growth along with margin.

We have been very consistent that we will be maintaining EBITDA margin of 14 above. Once we stabilize...

If you ask me a victim kind of scenario, we have been a company which clearly believe in growth in both revenue and margin. In say next over 2-3 years, will we be improving our margin?

100% we will be. We'll be moving in that direction and kind of working to up our margin alongside revenue growth.

Got it. I have a question each on your both segment, bakery and biscuits.

Bakery has done fairly decent growth. I understand we have now started facility both in Maharashtra, right, and I think another one is coming in Indore as well as Kolkata, I guess.

Given that this is a particular category which has to be operating close to the facility, how should you see these two, three facilities coming up? Should that debottleneck further and we should see stronger growth over here?

I know that QSR is also a category which may have not been doing very well for you, so that would have probably had some impact. Otherwise, from a retail point of view, should this drive growth?

Also is it a higher margin, so that should also help you improve your margins?

Answer to your first question, definitely, yes. You see, we have been investing behind this capacity and geographical expansion is to boost our growth because in Bombay, definitely we were tight on our capacities.

We needed to up our capacities, and we have put one of the world's large plant, fully automated plant, which will not only give us efficiencies on the manufacturing side, but also it will open up our growth aspiration. With this plant coming up in the quarter 4, English Oven will be able to expand their distribution reach in Maharashtra very extensively, or rather we may able to approach some of the territories which are outside Maharashtra also, right?

Definitely with Khopoli plant coming on, we can expect firing a growth engine and expanding our distribution in this western part of kind of India. Alongside western part of India, we are further planning to expand also in southern part of India in this quarter, and we should see that movement.

We'll be able to share in our next investor call more details about it. Calcutta is a new journey which is starting in the eastern side of India where eastern side of India, we were not present with our own manufacturing.

We'll put up a small plant to make a start both on English Oven side as well as on the B2B bakery business side. That also is kind of taking off in this quarter, and which will again help us to cover that geography as offer our English Oven kind of a superior product to East customers and drive the revenue growth.

Yes, expansion of capacities by us has definitely help us fuel the growth. We have very strong aspiration for English Oven brand and very aspirational tight targets for us.

Definitely over next 2 to 3 years, we want to be pan-India in the top two, three bakery brands of India. Alongside this, which I briefed earlier also, to drive the B2B business, we had started offering the frozen range, and that had shown a good traction last year.

Now we are working on that for the next leg of growth and journey on the frozen food side, which will strengthen our the B2B business also. Out of this frozen range, we have launched selected few products as a pilot on the quick-comm in the Northern India, in Delhi sector, and we seen the traction building also for that.

Rather, frozen products will also offer us a good international market, and we seen some good responses. We will be happy to share with you in our next investor call on that also.

Yes, overall bakery business, capacity is going to help us big time. They were very well required, and we continue to build our strength.

English Oven definitely a very, very strong brand, very aspirational of becoming a pan-India player in next 2 to 3 years' time and become one of the top two or three brands in India. This will be margin-accretive?

It will be. That should also help you improve your margins at overall basis, right?

Right.

It will,

for sure, yeah. Just lastly, one question on biscuit, if I may squeeze.

Biscuit, I just want to understand how is the competitive landscape right now. I know you are expanding your regions and going to many new markets, which is helping you drive growth.

In terms of competition, in terms of the new market, how the position is, if you can share some comments and what is the growth outlook of industry and as well as you in the domestic side, given that raw material prices are now softening, are people increasing the discounts and so on and so forth?

You see, the first thing is a good news on the domestic biscuit business side is that GST revision from 18 to 5, right, that's a big change. That will definitely fuel the overall biscuit industry growth, and it will also bring the consumers more towards a branded biscuit side than before.

Both are in the positive direction in terms of driving the growth for the industry. The industry continues to be competitive, but as expressed by the Managing Director that we completely believe in RGM strategy, which is led by distribution, which is led by product strategy.

We very well demonstrated over the last 3-4 years on that. Now we're clearly devising a strategy which we'll be sharing with you in the next investor call with absolute clarity in terms of how and where we will be driving our distribution and what will be our product strategy for the next 3 to 4 years to drive our revenue growth there.

Largely this strategy will be in two capsules. One will be in the North India, right, and one, because now we have a plant in the Central India, Dhar, one will be in the central and western part of India and some bit of touching South India.

More details, I would request to wait. We're working extensively on this strategy because this is a strategy to take our distribution numbers, take our weighted availability numbers from currently about 30 odd percent to in 3 to 4 years, we definitely want to touch about 50 odd percent.

We are working on that in a very extensive manner so that distribution, product, and margins, all three strategies are very well stitched, and then we kind of focus on executing for the next 3 to 4 years plan.

Got it. This is very useful.

Thank you so much.

Thank you. The biscuit segment revenue has grown by around 9.5%.

Would it be fair to assume that both domestic and exports would have grown in single digits?

Both of them have grown in the same trajectory. In case of domestic biscuit, as I said, that we have an impact in September billing on account of GST implementation.

Domestic, yeah, could have done better. Because of the big step of GST implementation, which every FMCG faced, we had a impact in our September billing and some bit of partial October billing.

Right. What I was trying to understand was that neither of the segments of domestic and exports have grown in double digits, both are in single digits basically.

No, no.

Export has touched double digit in this quarter, yeah.

Got it. Bakery, the growth rates have kind of come off, right?

Since the past few quarters, we've been growing at 18%-19% around 19% whereabouts. This quarter the growth has kind of slowed to 16%.

Is it purely attributed to the slowdown in the QSR side of the business, or is there some element of capacity constraint or reach constraint or something of that sort?

Our English Oven continues to grow very well, and they continue on the same trajectory they have been delivering over the past few quarters, which is high-growth trajectory. B2B business had a bit of a slowdown in this quarter.

We see definitely, for the indication we have for quarter 3, we certainly see coming back in quarter 3.

Got it. In H2, would the biscuits growth also expected to move to double digits considering that in the domestic market, the GST transition would have settled, and also, let's say, assuming the trade deal goes through?

With trade deal going through and the GST implementation, we should see a upsurge in the growth rate of the biscuit side.

On the capex side, what's the guidance in FY26 and FY27?

You see, most of our big capex, like we commissioned our Dhar, Indore plant in May of this financial year, right, another smaller capex of Calcutta will get commissioned in this quarter, and in the quarter 4, our Khopoli, Bombay plant, which is another big capex, which will get implemented. Our large part of capex spend, which we had initiated in the last financial year, would get over by end of this financial year, by March of '26.

Then, from next financial, we'll come down to a very normalized kind of capex. Only one capex which would happen next financial year will be related to our upgrade of capacity of the Bangalore plant where we will have to move to a newer location and increase our capacity there.

It won't be as heavy as this year and last year. Most of the heavy capex would get accomplished in this financial year by March '26.

Any quantification is possible for this current financial year and maybe what's the maintenance capex going ahead?

In this current financial year, let me answer the for the next financial year, the capex should be approximately around 100 odd crores, right, and this year, thanks this year, our capex should be touching close to 400 crores.

Okay. Currently, it is 400 crores, and next financial year, you said it will be under 100 crores, right?

In the ballpark of 100 crores.

Right. In terms of reach, if you could call out for both the segments, domestic biscuits and the retail bakery, what is our reach today in terms of number of outlets, and how has that grown over the last six months?

In case of direct reach of our biscuit segment where we go and deliver directly is about 5.5 lakh outlets, where we directly reach to those outlets and deliver to those outlets, right? As per AC Nielsen, our overall reach is over 700,000 outlets, right, where our products are available there.

On our bakery side, our direct reach is close to around 40,000 outlets, right, and that's also I think they've grown over the last 2-3 quarters approximately by 10%.

What's been the growth on the biscuit side over the last six months?

Growth, okay. Growth on the biscuit side in terms of outlet reach has been about 4% to 5% in the last two three two quarters approximately.

As I said, you see what has happened is that we had a very extensive growth from year '22 to '25, right? We literally doubled our direct reach outlet in the period of these '22 to '25 period, and so there was a very extensive growth.

This year, our focus on the outlet was largely on the weighted outlet growth, right, where we were working on our key account outlet, which is a program, Cremica Preferred Outlet Program we run, we ran that. Those outlets have grown very well.

Those outlets have grown by almost 30 odd percent, and they are high-revenue outlets. More focus was on a weighted outlet approach.

Now, as I said in the previous response also, now we are making a detailed plan for next 3 to 4 years, very similar to what we did from '22 to '25. We're making a detailed plan of our distribution, product, and margin, right, and for both the territory of North and West Central India, and we should be happy to share with you, and that journey would start sometime from April and will be the similarly exciting revenue growth journey for the next few years for the domestic business.

That's helpful. Just lastly, what would be the new product salience for us?

Let's say products launched in last two years, what would be their revenue contribution?

Our NPD salience as of now for this financial year on a 12-month rolling numbers we take is about 2% to 3%.

Got it. Thank you so much.

Hello. Is it audible?

Yeah. Thanks for the opportunity.

Could you provide an update on the progress of the bakery segment's capacity expansion along with the associated capex for the same project? That's my question.

I'll take this. We have created capacities.

Our Bhiwadi plant, we have already increased our bread capacities, and which was earlier at a 4,000 per hour line, now we've got another 4,000 per hour line. We have some more for small rolls and buns, where our equipment has arrived.

I think within the next quarter, we should be able to set that started. Our Khopoli plant, which is going to be one of the very large facility, and we anticipate to fully make this plant operational by April.

Our Calcutta facility should be activated within the next quarter. I think this is an ample capacity, which has got created.

We started working with few third-party manufacturers, they are also adding up to our capacities. We are at the moment with the expansion plans, whatever is there, I think our capacities are well in place on the bakery side.

Okay. Sir, could you please provide the capex for the bakery expansion?

We just gave this investment, actually. Manu, can you please update?

We just gave it just now in the last question.

Our capex for this financial year for bakery, biscuit as a company put together for this financial year will be close to 400 crores, right? That would be approximately our capex for this financial year for this year.

That's how it is. As Anoop Bhai elaborated on capacity, we have a fair amount of capacity increase.

What is our current capacity by end of this financial year by April of '27 will go up by almost 30%. Then we have our Bangalore expansion coming up next year, which will further enhance the capacity.

There will be enough room for growth to service over the next few years.

Okay. Thank you, sir.

Thank you.

All my questions have been answered. Thanks.

Hi. Just had a follow-up on your innovation slide.

Maybe if you could just take us through on both biscuits and bread. On Cremica, I see obviously Shortbread, which you had done last quarter, but there's also Mini Crackers, as well as Non-Stop brand, which are sub-brands which you're proud.

Maybe a little bit on that, your intentions there, as well as what you're doing on the bread side, both through bread as well as the frozen range, quick-commerce. In some sense, and this would be helpful.

Thank you.

Harit, in terms of pipeline for the new product, there's enough action. As you said, we have Shortbread, which is getting a good traction.

We have Non-Stop Mini Crackers. We have Teddies, which have been launched.

We have just launching the peanut butter with seeds variant. Right?

On the biscuit side. On a bakery side, again, we have the new brand, Nature Bake, which is a clean-label brand, which has been launched and which has been invested behind to build a clean-label brand.

We've launched two SKUs in that, and we are getting ready to launch some few more SKUs. As I briefed in between that, we have started a frozen range on B2B side, but ready-to-eat dessert, which can be just warmed up in a microwave and eaten right away and store that home.

The frozen range, we just introduced few SKUs in NCR market to kind of see their response, and there are a few others which are in the pipeline. There's a fair amount of both biscuit and bakery in terms of traction of whatever has been launched and what is being planned to launch.

Great. Thank you.

Actually, Harit, our main aim is to get into products which are very away from competition and products which are available in the market. We are definitely getting a lot of traction on the shortbreads.

We have also seen that Danish cookie tins, we are trying to pursue them in the Indian market, where we have an excellence on and competition is lacking over there. Also our NPD section, which is where we created a whole NPD area with equipments and a complete team is there.

I think our tendency is going to be to give products which are very away from the competition. This journey will take some time because you are creating new customers, you're creating a new experience, but our products are getting well accepted.

Especially on the quick-commerce. We are launching this product more on quick-commerce and Cremica Preferred Outlets.

The journey is happening right. That's a good point.

Okay. Thank you and good luck.

Sir. Just on the GST, you indicated an impact of 1%.

Now the old inventory is gone. There won't be any impact of that in the coming quarter, right?

No, there should not be any impact. There was some marginal impact in October, as I said.

Yes, going forward, there won't be any impact, yeah.

Sure. Okay.

That's it from my side. Thank you.

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Thank you so much.