Thank you. [Thank you for joining Bikaji Foods International call?]

Okay. Good afternoon everyone, and thank you for joining the Bikaji Foods International Q1 FY26 27 Earnings Conference Call.

From the management team, we have with us Mr. Rishabh Jain, CFO, and Mr.

Manoj Verma, COO. I will now request Mr.

Rishabh Jain to take us through the key opening remarks, after which we will have the floor open for Q&A sessions. Thank you, and over to you, sir.

Thank you very much. Thank you to all the investors.

This this quarter we grown at close to 12.5%. This quarter is a story of two halves where first in first 45 days there is there has been supply and production issue for two reasons largely.

One, of course, our Chairman is no more with us, there are 3-4 days of plant impact across pan India. Number two, there were Bengal elections, there were a lot of movement of Bengali labor, but post 45 days we've seen great demand across all product range, be it ethnic snacks, western snacks.

From from primary lens, we grown at 12.5%, but what we see from secondary, we've seen good secondary, tertiary overall in first 45 days also. June, July, we've seen good growth in demand and overall this festivity, we're entering to festivity this month, being Rakhi and next Diwali.

We're we're getting very good response from our organized retailers seeing good growth and maintaining 15% plus growth overall this year. That's what our target is.

From bottom line lens, what we've seen that there are multiple pressures, be it edible oil due to this geopolitical issue, this rainfall is less rainfall, it is also having some impact on few a few pulses, be it moth dal and chana dal, all all are all are rising in a all have started increasing this year. We've taken two price rise in in last 4 months, and we're trying to trying to maintain and trying to pass passing on the price to the consumer.

We've taken one MRP increase in April, but till now we're not taking any MRP increase. What we see that till Diwali we will maintain this price what we're doing because as we're entering to festivity, a lot of gift box and everything has been has been started.

That's what, number one. From EBITDA lens, this this quarter our EBITDA was close 13.5% versus last quarter last quarter our EBITDA was close 12.2%, there was good increase in EBITDA margin compared to last quarter.

From capacity lens, largely our new our new ASRS, new new ASRS investment has been gone live this this month. We've we've built close to close to 1 lakh square feet of construction in Bikaner where a lot of supply chain easiness will be there going forward where we will keep close to additional 1 1.2, 1.3 lakh carton extra to ease on supply chain.

This will help in overall maintaining this minimum stock level at at our at our key stock points.

As one of our growth drivers what we have identified is the increase in reach. We continue to grow our direct coverage, and as we end this quarter, we are at 370,000 outlets plus as our direct reach, adding 17,000 outlets in quarter 1.

Talking about our marketing investment, in fact, if you look at, in this quarter, the gross margins are up, whereas EBITDA, it has slipped down, but that primarily or one of the key factors also is that we invested heavily in this quarter as well to build up our momentum for the festive season coming ahead of us. Pankaj Tripathi campaign we aired in this quarter as well, which was for UP.

Then some launches of the western snacks range, new products what we did, participation in our international exhibitions, as always what we do. Coming to the business if we look at, delivered an overall volume growth of 7.7% and a top line of value of 12.5% growth.

Within this, the ethnic snacks have grown at 11.4%, western snacks at 21.3%, sweets at 4.4%. Papad was a bit challenging for the quarter for the reasons that a little bit of early monsoon because June also we saw that stuff.

What happens is that being hand-made papad, the monsoon impacts our production per se as well. Talking about business from the geographies, look at core states have grown close to 11%, focus states grown close to 20 19%, and the other states at 5.6%.

Exports is the only channel where for the first time we have seen that almost flattish or a negative growth of 2.2%, which primarily is on account of the US tariff disturbances which is happening, and more importantly is the crude oil prices going up, which has taken up the freights 2 to 3x kind of a stuff, which is what has deferred certain shipments. That's where it is.

Otherwise, you look at in terms of demand, export stays as much strong for us. The mix between family and impulse pack if we look at, family pack has grown at 11%, while impulse at 10.5%.

The retail business performance if we talk about, this is grown at 71.8% YoY, and our stores have increased from 15 to 28 over one year.

From top line growth perspective, over last quarter, our EBITDA is grown close to 13%, and top line has grown close to 2%, EBITDA has been improved compared to last quarter. That's all from the presentation.

Thank you, and we'll be very happy to answer all the questions.

Thank you. My first question is on the retail business.

If you could tell us next 1 year, what will be the plan in terms of the retail expansion? For the different formats, if you could give us some numbers in Q1 on the growth and the margins, and any learnings you have where some tweaking of the business model is needed in any of the format?

From retail lens, largely we are mainly focusing on THF as of now. From THF lens, they're doing they will open close to 10 stores this year.

Largely what we see that this this business can become can grow at 50% 60% year-on-year for next 3-4 years. That's a plan we have as of now.

From 28 stores to plus 35 stores this year, and 50 stores in next 2.5-3 years, that's a plan in THF. From Bikaji stores perspective, we are opening two stores this year, already in plan, already work has started, and post this, we'll evaluate on our business largely.

This business can from profitable lens also, this THF is also So we are also working on Basically from THF lens, of course, they are retail, but they are mainly focusing on fresh very very premium sweets and gifting. That's a big business for them.

That's that's where first store, they first store, we are targeting ₹7 crore-₹8 crore of business from THF. That's the overall plan.

Yeah.

In terms of Q1, I think you are the only FMCG company which has highlighted, I think, on the Bengal election impact on the manpower. Any long-term risk mitigation you can do?

Because, frankly, this is a solvable problem, and no other company has highlighted. If you can tell us why only you have faced this issue?

You'll see our snacks is manufacturing across all plant in India, snacks is grown at plus 20% this quarter. We'll not have any issue, but in Bikaner largely, there were major Bengali labor which were there in Bikaner, and mainly bhujia we manufacture only in Bikaner, core bhujia.

That's how we've got impacted. Overall, what we are targeting that we'll learn from this, and we're targeting in this year that we'll manufacture bhujia in two plants this year.

We'll try to manage the same quality there, so that's what mainly the main issue was.

Sure. Last question on any of the growth states next of those three states where you have a strong presence.

If you could highlight where there has been slightly weaker performance than expectations, and which are the faster-growing states because, yes, those states are growing faster than your three core states, but still I think the gap isn't too much. In fact, one or two quarter, those three states have, in fact, grown faster also.

If you could tell us the faster-growing states and what are the learnings in the weaker states?

Hi, Abneesh. This Manoj.

If you look at, focus states have almost grown 2x to what core states have grown, so that's where it is. Within focus states, if you look at, state like UP, where we have made investment as well, has really paid us dividend back, and the fantastic growth where we have got from there.

Across all focus states, growth is form, not that any of the state has underperformed for that region. Core states, for the fact what Rishabh already spoke in quarter 1, within quarter 1 also if we look at the first half of quarter 1, in April where we lost our Chairman, and, as mark of respect, 3-4 days there was a shut.

We could not make supplies, and ours is a very very, simply skewed supplies, which essentially means is that it's not any week high, heavy stuff. On a day-to-day basis, we do almost equal supplies throughout the month.

Any loss impacts us. That was one on account of shipments.

Also, the Bengali labor, it is most of it is that stuff, and in April until mid-May, because of this Bengal elections and SIR, all those stuff. We had no choice then to let them go, and they went, then that disrupted our supplies, and which impacted more of Rajasthan and these states, the core one stuff.

Focus were still managed because we have our depots across. We had shipped stocks there, and they continue to get those stuff.

Those were it. Learnings in terms of it as again that one is that we realized that if any catastrophe, any such unforeseen thing comes up, and Bikaji gets isolated or disconnected Bikaner, would impact our overall business.

Hence, we are decentralizing it, already started working on that this Bikaneri bhujia, not only in Bikaner, we'll produce outside Bikaner as well. Those were few learnings which we built in our plans and strategy going forward.

Sir, that's helpful. One quick last follow-up on the demand side and competition.

If you could tell us on quick commerce, is there very high competition? Because I am seeing that quick commerce is now launching their own private label in snacks.

For example, Swiggy has got the brand Nois, and they have offerings across snacks and many other FMCG. If you could generally comment on quick commerce performance, is it meeting expectation?

Of course, everyone is growing very strongly. That is not the right metric.

The right metric is, is it going as per the plans, and is your market share in quick commerce higher than your pan-India market share?

Yeah. Avnish, I think the right metric to look at how are we doing it is in terms of at what rate this category is growing on that platform, and within that, are we over-indexed or under-indexed.

That would talk about gaining share or losing share on the platform. First let me talk about play of this category on the Q-comm platform.

Yes, it is exponentially growing, and so are we. Our growth, if we look at in quarter 1, is upwards of 100% in the Q-comm channel.

Second thing what you spoke about on the private label or their own brands. Any of the format, be it modern trade or Q-comm, where you feel that the consumer or shopper footfalls are high, they tend to launch their own brands, and so is what Swiggy and others would have started doing that stuff.

It really does not work as much in end of the day, because the difference between a brand and their own private label brand is not as much, and hence, consumer or the shopper stays back with the brand itself. That's what it is.

It's too early to make a statement at this point in time, but we are growing faster or in line with what these channels are growing for this category in this stuff.

Right, sir. That's all from my side.

Thank you.

Thanks.

Hi, thanks for taking my question. My first question pertains to what led to surge in other operating costs?

Like you have highlighted there were brand investment, but just wanted to have a more sense on what are the component for the surge in the other operating expenses. Plus also if you can highlight how that spending going to be for the rest of the year?

From other operation expense perspective, there are multiple things due to this geopolitical issue, the coal prices also increased in last 4-5 months. Close to 0.3%, 0.4%, and 30-40 basis points manufacturing cost has been increased.

From ad cost perspective, in last quarter, we not see very significant ads. This quarter, we're done some sales promotion activity, some ads, this has given close to 40-50 basis points hit.

That's two point where overall below gross margin the margin is impacted.

How should we build this advertisement spend going ahead for the rest of the year?

Overall, our year target is close to 2%. That's a target we'll maintain this year from overall planning perspective.

Okay. Thank you.

My second question pertains to I have seen some of the product launches we are doing, expanding the extruded range plus getting into non-palm oil offerings. Just wanted to know how material is the segment and what are thoughts and what are plan aspirations?

Nitin, this is being future ready and looking at the demand what is coming up from the let's say Gen Z or the new generation and that stuff. While the mass or the the bottom of the pyramid will always be very very heavy.

This would be icing on the cake, and we are ready in terms of to do that stuff. We've piloted it in on the Q-comm channels because that's where they are sold more to the segment, and but this would not be a substantial, business share of, share of business for us, going forward as well.

Sure. Thank you.

My last question pertains to your packaged sweets. How we think the growth going to be for this year?

Q2 plus Q3 is the main season. For last 2 years, there is a 7% revenue CAGR, and prior to that, we were growing at 15%, 20% for the combined two quarters.

From that lens, given the capacity, how should we build a growth for this year amid the festive season?

I think what we are looking at it is see festive when we speak also the two components to festive products, one is sweets, the other is our gift pack. What we look at it is that now the sweets should grow at about 12% to 13% kind of a growth over last year, this quarter 2, quarter 3 put together.

The gifting would be even higher in this stuff. Sum total gifting would be pretty good in this cup.

I'd say upwards of about 17%, 18% growth.

This is really helpful. Going ahead, our aspiration will be growing in mid-teens, or we want to sort of accelerate to high teens type of growth for the full year?

We'll definitely look at for high teens, but mid-teens, as we speak, we see clarity on that stuff, that say close to about 16% plus/minus percent should be the growth what we should be delivering quarter-on-quarter.

Sure, sir. Thanks a lot, and all the very best.

Hi, sir. Just wanted to know this production sort of outage that we had for 4-5 days, did that really impact our sales?

Because this happened in April. You had 2 months to recover the production.

It's not as if we are running at 100% capacity. Why should it impact our top line growth?

No. If you look at now the progression of our billing, it is not like that everything is skewed towards last.

It's not just about production in the month of April, more about dispatches. That dispatches was shut for 3 to 4 days.

There is a pipeline, right? There is a distributor, wholesaler, retailer...

Sir. What I was saying is, there's a distributor, wholesaler, retailer in the overall trade pipeline.

We would have maybe don't know how much, but at least a 15-day sort of stock. If you're stopping dispatch for 5 days, that trade pipeline falls to 10 days.

Later on, when your production is online, would you not want to restore that pipeline back to 15 days?

Exactly that's what we said that if we look at so there is a story of two halves, first 45 days and second 45 days. What we are presenting here is the consol for 30 days.

First 45 days was even higher, we made up. June was the ever-highest kind of a delivery what we did, and July continues with that momentum.

This is what exactly we are saying.

Understood, sir. What I just wanted to understand is for the quarter as a whole, April, May, June quarter, has the production loss of 5 days impacted your sales for the quarter?

That's all I wanted to know.

Largely one thing of course, we lost because there was also labor issue going on during that time. It was not the case that in a normal scenario, of course, we double our turnover they did run day night shift, but that was not the case till 18th of 18th of May.

We enable to run the plant with minimal production. There was two factors which were going on parallelly.

Okay. Understood.

Secondly, just wanted to first congratulate you on the ramp-up of your subsidiaries. They are doing really well.

Question on the standalone business, if I look at this quarter, okay, let's ignore this quarter because there was labor issue, production shortage, etc., but even if I look at last year full year, the standalone business, which is the core bread and butter, snacks, sweets, papads, etc., that has grown only at around 11%. What is it that is preventing growth higher?

Because earlier when we used to speak 3-4 years earlier, the understanding was that the overall industry itself is growing at low double digit, and then there is a share of organized gain from unorganized, and then within organized also, there are some fringe players and we will gain from that also, the growth expectation was 15% to 17%, but it is coming closer to 11% odd. Just wanted to understand what is it that has changed versus that expectation in terms of the delivery?

Yeah. One is that till 2 years back, the category was growing at double-digit growth, whereas if you look at last 2 years, it's been a single-digit growth, and not just for the snacking category, overall FMCG, within FMCG if you look at foods barring few categories, snacking still was better off.

That's what it was. Last year also if you look at the first half, which is quarter 1, quarter 2, were the weak quarters on account of the heavy rains and all those issues which came up.

It was post GST relief, what you saw, there is a clear uptick thereafter. That's what is the time wherein the GST moved from 12% to 5%.

That relieved the inflation what had gone up. These benefits were passed back to the consumer, and we saw the momentum moving up.

It is not just for Bikaji, we would say that the overall category growth have also moved up in that stuff. For us, particularly these 45 days were the deterring factor, that also purely from a primary lens.

When we look at our inventory at our distributors, they've got depleted. As you were asking that if you are shut for few days and then when you start, the way you cut down on your inventories, similarly you building up inventory also takes up time.

It is not a overnight factor that you do that stuff. Therefore, this gives us comfort that and now the numbers speak louder than for what I can say, the way June came out, the way July, August, we're already in, the things are moving up, it's all positive, and mid-teens towards high teens would be the number we'll be able to deliver.

Got it. Just one question on the PLI.

This is, I think, the last year where you will get the PLI of approximately ₹50 crore, and next year, it will not be there. At the EBITDA level, this ₹50 crore will be a hit.

Will you be able to either partially or fully mitigate it through some measures?

From PLI lens, currently this year it will be contributing close to 1 150 150 basis point in overall EBITDA. What we're targeting, it will take 50 to 75 basis point improvement in our pricing and gross margin.

It will take 1.5-2 years to reach again at the original margin.

Got it, sir. Thank you.

That's all from me. All the best.

Hi, Manoj. Rishabh, good afternoon.

Thank you for the opportunity. Manoj sir, just a quick question.

The D2C brands are penetrating much faster, and they are reporting a very strong growth. In your conversation, can you share what kind of packaged food contribution on the top three platforms and what is our share in that?

Hi, Shirish. See, where they play is only on the Q-comm platform, that's where it exists, right?

If you look at overall contribution of this Q-comm to overall category is low single digit. That's the overall the TAM where they are playing.

Now here if you look at, the top brands would contribute to about 50% of their category business, and the balance 50 is from D2C and the other small brands because this is where these Q-comm players make their bottom line, and the branded stuff gets them the top line kind of our stuff. Now if you talk about the market share in that, this is where yes, they would have some reasonable and certain brands have better traction, and within their product range, also you will see that they will have one or two signature products kind of our stuff, which is doing pretty well on that stuff.

This is how it is. In terms of when we speak about these brands, their bottom line or their sustainability comes up a real question.

It's handful of brand that who could sustain in this environment. No,

I was more curious to understand because even if I look at the quick commerce basket, there are at least 6-7 brands which is crossed almost ₹100 crore ARR. Now are they selling on the price point and quantity or are they selling on the ingredient and safety and healthy?

I'm just trying to understand more curious what is it that they are getting right.

Shirish, it's mix of both, right? One is perception, narrative, that gets you trial, and once you try, you like it, you repeat and that stuff.

It's a mix of both, one followed by another.

Okay. Rishabh, we have done some exchange filing on the Nepal project.

Can you quickly give me what is the update now, where we think we will go ahead?

From Nepal lens, we've done JV, and we've done all the paperwork. Now the plant construction is getting ready.

Both parties invest close to ₹15 crore each. I think in next 8 to 9 months, the plant will get started, and we'll get production, local production from Nepal.

That's the intention.

This is on eastern side or this is close to Gorakhpur?

Nepal, it's between Birgunj and Kathmandu.

Okay. My other question is on the upcoming season, and we see that THF is the growth driver which we have found.

I was more curious, when I look at the maths of the erstwhile stores, we are firing between ₹8 crore and ₹9 crore annual run rate for each store. When you're opening new stores, can you share some more maths in around the economy of scale or maybe some square feet and which are the localities and geographies which you are expanding?

From THF lens, we are largely focusing on top few cities of India as of now. We're not getting tier 1 cities.

There are a lot of other plans there. That's the focus, and normally we're targeting ₹6 crore to ₹8 crore of sale, and this is we cannot say only QSR, it is a retail store where we normally focus on getting gifting right, premium sweets, and that's contributing 65%, 70% of sale.

That's our focus, and from bottom line lens also, every store will be close to 25% plus store-level EBITDA. Currently we are very confident with the team.

We're investing in team and multiple things, but overall this business in next 3-4 years can become plus 15%, 16% of EBITDA-driven business with 40%, 50% of year-on-year growth. That's the projection what we are targeting in this business.

Okay. That's helpful.

My last question. In last two quarters, there is something other we had GST rationalization, inventory issues in the trade, and last quarter also we had some disruption.

In the context when we see the raw material prices are inching up, can you share, Manoj, some thoughts on the demand, how it is panning out, and are we taking or have we taken any price increases in last 30 days or are we going to take any price increases next 30 days?

Shirish, we've taken two price increase in last quarter, last 90 days if we look at, right? As to offset for what inflation or what price increase we could anticipate or as happened.

Talking in terms of demand, pretty good demand, and when we speak to be the Q-comm channel, be the modern trade, and I'm talking these two more because they are organized retail, and they also build their plans, the Diwali plans and all that stuff, very bullish plan they have that gives us quite a satisfaction and confidence in terms of the business going forward. Similarly, GT commitments when we see the demand plans for next 3 months are very much positive.

This is looks to be the good times ahead in that. For next 30 days, we are not planning to take any price increase because now we have all prices, all that stuff signed off with the large accounts as well.

Will not be doing that stuff, unless and until something some catastrophe comes on.

Okay. Just one quick follow-up.

Any good reason why our exports has declined?

The only reason I would say is that now the Trump stuff, the policies, the tariffs, what's coming up, a little bit of uncertainty, but that's still we were living with for quite a while now. I think the biggest one was the repercussions of this crude oil prices going up and the availability of these containers and all this stuff.

Prices have gone three times for when they were booked and now and kind of inching in. There is some delays happened, that's the only factor.

Looking at demand, there's no issue in that stuff. It's the dispatch deferment.

Okay. Thank you, and all the best.

Thanks.

Yeah. Hi, sir.

Thank you for the opportunity. Sir, we have managed to expand the gross margins in what was a difficult quarter, but we are now saying that we are seeing some inflation in pulses, also in edible oils, but we will not take another price hike till the festive season.

Putting this all together, what does it mean for the near-term margins for the second quarter and also for the full year? What is our margin outlook now?

Second quarter will be very high on sweets, which is high in gross margin overall. From numbers also, second quarter will be heavy.

There'll be a lot of efficiency, a lot of because there is fixed cost which will not increase as top line increase. Even gross margin will increase, our EBITDA will improve on that lens.

Right. For the full year, sir?

From full-year lens, we're targeting close to between 13%, 13.5% margin. That's the target we are taking.

Sorry, 13% to 13.5% you said?

Yeah.

Got it. Secondly, sir, just on the bakery segment, I know it's a quite a small segment, but what would be the size now in terms of ARR for the bakery segment?

Is it entirely comprised of exports or is there some domestic component now? I think I'm talking about only Bikaji Bakes.

That's where our bakery business is.

Currently, it will get started this season. It is not started full-fledged production.

Trials are going on on the R&D and everything. This year we're not taking any big number in our business plan.

Maybe next by end of this year, there will be two quarter where we'll start production. We'll see, but there will be two-three opportunity.

One is export, one is our own e-comm Q-comm channel where we will supply, and one is Horeca. That's three channels where we are targeting.

Overall in next two quarters, we'll see how it goes, and next year, we'll build some numbers in our balance P&L.

Got it, sir. Thanks.

That's it from me. Thanks, and all the best.

Thank you.

Yeah. Hi, team.

Just a few questions there. One clarification this margin guidance you gave, 13% 13.5%, this is ex-PLI?

This is including PLI.

Including PLI. This is lower, you are saying, is it?

Q1 is at 13.5%, right? You said gross margin would remain sort of stable or so, and then your overall leverage will play out.

In next two quarters, ads will be heavy, advertising.

Ads will be heavy.

Because next two quarters, because we're entering to festivity, ads will be heavy, overall, that's the target what we are taking.

Okay. That is one.

Secondly, just I wanted to know on your international overall expansion. You invested in Bikaji Foods US also, and then now with Nepal, and also subsidiary in Middle East.

If you take a 2-3-year picture, what kind of incremental revenue are you looking from these JVs or investments?

Nepal, if you look at, we even in current state also we do business there, right? It is only when we do JV, we will produce locally, and that would save some moneys in terms of those import duties and would make us more competitive and that stuff, will help grow faster in, invest to grow.

That would be the capability for Nepal market. For US, when we talk about, it's the investment what we have made and the dividends what we'll see is over next few years.

What we believe is that the US business should be about three times in next 2 years kind of a stuff as we set our things in place there. Huge growth opportunity in exports.

Okay. Is there a number right now that how much you are doing and in 3 years how much this can become from all these?

If you look at, currently it's about 3% to 4% business contribution, while overall business will also grow, but in 3 to 4 years' time, you will see that this business contribution would be about close to about 5.5%, 6% to our overall business.

Okay. In terms of share, yes.

Yeah.

Okay. Got it.

Thanks a lot. That's it.

Thank you. Thank you.

Thanks for the opportunity. I just wanted to check when can we expect these mid-teens kind of growth in core markets?

Is it from Q2 or maybe in H2? How do we expect it?

Sorry, can you please repeat? You're not audible.

Can you hear me?

Now I can hear you, yeah.

Basically, I'm asking from when we are expecting that mid-teens kind of growth will be back in our core markets.

Mid-teens, see core, you will see this quarter onwards itself. That's where it will be.

Core would be not growing as much because core growth would be in line with at what rate category is growing there because we already we have a high market share, this will be in line. It is only the focus markets where we have a very we are small players and there our growth would be disproportionately high.

That's the reason. This what we plan in our budgets as well, what we look at it is the core market between 13% to 15% there.

Now

in terms of focus market, like UP is one of our drivers always. In this quarter, what was the growth in UP market?

It was about 37%.

37% growth in UP?

Close to 37%, yeah.

How do you look this market for a full year? 30% plus will continue?

In our budget, it is, yes, 30% plus is the budget. Now little bit of here and there between quarters would happen, but, yes, at aggregate level, upwards of 30% growth.

Got it. Whatever happened in export, I know it's a one-off, but going forward, can we expect again 25%, 30% kind of growth momentum will continue in export market?

See,

exports see US is a very very big share of business in our export market. With the freight charges, it is three times for what it was about 4 months back.

Now till such time this settles down, we will see this disruption. Now this may get resolved in a quarter's time, as well may take a couple of quarters.

That's what we cannot anticipate at that point in time. Yes, in a long term, if you look at, yes, you will see that these kind of growth will come from US market, or the overall export market.

Got it. Last thing from my side, like when you were saying that first half, first 45 days, next 45 days, if we break up 12.5% kind of growth, out of that, what was the last 45 days' growth number?

If you look at the last 45 days, growth would be around, say, 20% kind of a growth.

Okay. That's good to hear.

Thank you, sir. Thank you so much.

Yeah.

Thank you, sir. Thank you for the opportunity.

Sir, my first question is on other operating income of ₹14 crore. How much is from the PLI in this quarter?

Sorry, your voice is not clear. Yeah.

Now is it clear, sir?

Please.

Sir. Out of ₹14 crore of other operating income, how much is from the PLI?

₹12.5 crore. ₹50 crore we book in this year, ₹50 crore worth.

That's the last ₹50 crore. Okay.

50, yeah. Divided into equal in four quarters.

Okay. The second question, sir, may I know our papad segment declined by 6.5%, while as in 1Q26 it grew by 6%, and in 1Q25, it grew by 14%.

What happened this quarter to papad category, that's what I wanted to know.

Papad, as I said, it's most of it is handmade and highly dependent on the weather condition, monsoons, and all that stuff. Those were the factors which impact papad growth.

What we see now this time also a little disruption in the monsoons. When it rains, it doesn't get dried, therefore, it becomes a production supply issues kind of our stuff.

We'll try and make up in this quarter, but again, it's not as big a business for us. Therefore, and so it does not impact our overall top line and the bottom line.

It's a 6% business contribution to our overall business.

Sir. Thanks.

Thank you, sir.

Yeah.

Yeah. Hi, sir.

Thank you for the follow-up opportunity. Rishabh sir, just coming back to that margin guidance of 13.5% that you spoke about.

We have talked of maybe a 15% plus kind of a growth aspiration, and we have talked of maintaining ad spends at about 2% of sales this year, but we're also saying that A&P will be higher in the coming few quarters. Also I think a while back on the media interview on CNBC, our management has mentioned an aspiration of 15% operating margins.

These numbers don't seem to be tying up together if you can just clarify on this.

No. So 15% margin target is not for this year.

It's long-term target that we want to beat 15% next 3 years. That's the plan we have.

This year, we'll be 13.5%, then at least 50 basis point improvement every year on year. That's the target we're taking on as of now.

The next two quarters, of course, this year we this industry has been impacted by multiple factors, but we see ease off in next two quarters, and this will help us in overall getting margin back to a normal target.

All right, sir. Maybe I'll take it offline.

Thanks.

Thank you.

Thank you, gentlemen, for taking time out and joining us for this call. It was nice interacting to each of you, and we tried to answer the questions which came up.

Shall be happy to take any follow-up questions which comes up, and our team will get back to you with the answers. Thank you very much, and happy season ahead.

Bye.