Thank you, Anushka. Good evening, everyone.

Welcome to Jindal SAW Q1 FY27 results conference call. I would like to thank the management to give us the opportunity to host them.

From the management side, we have with us Mr. Narendra Mantri, Chief Operating and Financial Officer; Mr.

Vinay Kumar, President and Head Treasury; and Mr. Rajeev Goyal, Senior Vice President Corporate Finance.

Without taking any much time, I'll hand over to the management for their opening remarks. Over to you, sir.

Thanks, Vikash. Good afternoon, ladies and gentlemen.

I am Vinay Gupta, representing Jindal SAW on behalf of the management team, including Mr. Narendra Mantri and Mr.

Rajeev Goyal. It is my pleasure to welcome you to our conference call for the first quarter of financial year 2027 ending June 30th, 2026.

We also appreciate the ICICI Direct team for hosting this session and coordinating the discussion. The board approved financial results for quarter one of financial year '27 on July 14th, 2026.

These were filed with the stock exchanges, and we assume you have reviewed them. Now, let us now present the operational and financial performance of the company and its subsidiaries.

In this present presentation, we will also cover the financial performance for quarter one, business scenario, and updates on the project in UAE and Saudi, and few other things. In terms of our financial performance on standalone basis, the company registered a total income of ₹3,756 crore in quarter one of financial year '27 against ₹3,327 crore in Q1 of FY26, representing an increase of approximately 13%.

EBITDA for quarter one of '27 stood at ₹341 crore against ₹560 crore in quarter one of '26, representing a decline of approximately 40%. PBT for Q1 of '27 is reported at ₹145 crore against ₹307 crore in quarter one of FY26, representing a decline of approximately 53%.

PAT for Q1 of '27 is reported at ₹110 crore against ₹364 crore in quarter one of FY26, representing a decline of approximately 70%. On standalone basis—total income stood at ₹4,476 crore for the quarter one on console as compared to ₹4,103 crore in quarter one of FY26, representing an increase of approximately 9%.

EBITDA for quarter one of '27 stood at ₹421 crore against ₹688 crore for quarter one in FY26, representing a decline of approximately 39%. PBT for quarter one in FY27 is reported at ₹148 crore as against ₹364 crore for quarter one of FY26, representing a decline of approximately 60%.

PAT for quarter one of FY27 is reported at ₹91 crore against ₹415 crore in quarter one of FY26, representing a decline of approximately 78%. Now, in terms of our indebtedness, as on 30th June 2026, the standalone net debt narrowed to ₹2,345 crore as at—versus ₹2,453 crore as at 31st March 2026.

This includes ₹526 crore of long-term debt. This is primarily 500 crore out of this is from LIC NCD, which is repayable in three equal installments in FY28, '29, and '30.

The net institutional debt at consolidated basis has reduced to ₹2,472 crore as compared to ₹2,528 crore as at 31st March 2026. The long-term debt out of this is ₹536 crore.

In June 2026, CARE Ratings has affirmed CARE A1+ rating for short-term debt facilities, including commercial paper, and CARE AA outlook Stable for long-term facilities. They are basically reaffirmed, there is no change in the rating.

Now, let us discuss the progresses of our business. In terms of operations, for the first quarter ended 30th June 2026, performance remained muted, broadly similar to the weak trend seen in quarter four of the previous year, with exports, water infrastructure demand, and seamless pipe certifications all acting as constraints on our business.

While we hold a strong order book, including a 600,000-metric-ton—600,000-metric-ton work order from Saudi Arabia, all outward shipments have been suspended since March 2026. Geopolitical situation between US and Iran brought MENA region trade to a standstill this quarter by blocking the Strait of Hormuz.

A short-lived diplomatic breakthrough in mid-June offered some hope for recovery. However, the subsequent collapse of these peace talks has limited our short-term visibility.

Company has started executing few orders on export side to non-MENA region. Due to heavy traffic at Indian port, few of the shipments have been deferred to Q2 of financial year '27.

In the domestic market, the water segment remained weak as Jal Jeevan Mission-linked project execution continued to be affected by delayed release of central funds and tighter scrutiny of the state projects. Multiple states reported pending dues and slowed project timelines, reinforcing a demand slowdown for pipe supplies tied to government rural water schemes.

However, the company saw a recovery in Q1 of this year driven by higher ductile iron pipe volume sales volume for executing various pipe project orders with us. Now, in terms of company-related matters which had affected the business specifically in Q1, as the company's seamless pipe business was additionally impacted because of its API license remained suspended from January 2026 until mid-June 2026.

This limited our ability to participate in certified oil and gas orders during the quarter. API reinstatement enables the company to resume API-certified seamless pipe supplies and participate in tenders that require the API monogram.

In terms of couple of new opportunities, as was pointed out in the previous call, heightened geopolitical risk across the MENA region is driving a decisive shift towards more secure overland energy infrastructure, creating a strong pipeline of opportunities in expansion, rehabilitation, and replacement projects, specially those aimed at avoiding vulnerable maritime chokepoints. This shift speeds up investments in routes that bypass high-risk areas, creating major opportunities for pipe manufacturers and builders in oil, gas, and water infrastructure.

Currently, India is also prioritizing energy security, with new pipeline tenders expected in coming quarters that follows a landmark March '26 government mandate designed to fast-track nationwide piped gas rollout by eliminating bureaucratic delays, access fees, and local bottlenecks through time-bound central approvals. We would now like to update you about the company's ventures in MENA region.

As like in the geopolitical hurdles which exist in MENA region, the shift dynamic bring new chances for companies like us, and that is why we are actively pursuing these opportunities by expanding and manufacturing locally. As like we had announced projects—seamless project in Abu Dhabi and SAW pipe projects in Saudi Arabia.

First let's talk about seamless pipe plant in Abu Dhabi. As we updated on various occasions, the company had initiated the process to set up a state-of-the-art 300,000-ton seamless pipe manufacturing facility in Abu Dhabi with an estimated project cost of approximately $300 million.

The plant will primarily cater to the oil and gas sector in MENA region and more specially in UAE. This is aligned with the company strategy to strengthen its supply base closer to the key global energy markets, including UAE.

The project execution has commenced. By securing a developed leasehold land with existing civil infrastructure, we have effectively shortened our construction timeline.

Procurement for critical long-lead equipment is already underway, whereby we have started opening LCs and placed cash advances. With financial closure expected in next few months, the project remains firmly on track, which is likely to commence commercial operation in financial year '28-'29.

Jindal SAW Abu Dhabi strategy now rests on a dual pipe platform: seamless pipes plus a ductile iron pipe facility, both aimed at anchoring a full-fledged regional hub for energy and water infrastructure. Some brief about our SAW pipe plant in Saudi Arab.

We updated in the past that we have established a strategic joint venture in Saudi Arabia, holding a 51% equity stake alongside Bohur of KSA Saudi, which will hold 49%. The JV is dedicated to establishing advanced LSAW and HSAW pipe mills of 300,000 metric ton per annum each to serve regional water infrastructure and energy demands.

Having already secured the project land and established LC for selected equipments, we are fully committed to fast-tracking for construction of these manufacturing facilities. Furthermore, we expect to finalize interim financial closure within next few months.

Beyond meeting Saudi's domestic demand, these facilities are strategically positioned to capture lucrative post-war commercial opportunities in the region, aligning with the broader MENA shift towards alternative energy supply routes that circumvents Strait of Hormuz. Overall, Jindal SAW is creating a Middle East production corridor: Abu Dhabi as a controlled, high-end seamless hub and Saudi as a JV-driven, local-content-rich capacity in LSAW, HSAW, and also ductile iron to lock in infrastructure demand.

Now, let us look at our subsidiaries in UAE and other parts. In UAE, because of the regional conflict in MENA region, the operations remained disrupted at the ductile iron pipe facility in Abu Dhabi.

The UAE UAE remains a highly impacted area within the region. Due to these circumstances and with employee safety as our top priority, operations have been reduced to meet essential demand.

The sales from Abu Dhabi plant are restricted to customers in the country which are within the trucking range only. In this backdrop, in Q1 of FY27, Abu Dhabi company delivered approximately 34,000 metric ton of ductile pipes as compared to 48,000 in the previous quarter of which is quarter four of last year the ductile pipes.

As on 30th June '26, the subsidiary hold an order book of approximately USD 188 million. In terms of volume, it is 137,000 ton, which ensures operational visibility for next three to four quarters.

This backlog is independent of the order book of Jindal SAW Limited. Jindal Hunting, which is a joint venture between Hunting Energy Services Singapore and Jindal SAW, as Jindal SAW holds 51% in this company, it generated a revenue of ₹5 crore and a loss—it first time it incurred a loss of ₹5.3 crore in the Q1.

This poor performance is a result of the suspension of the API license of Jindal SAW Limited. Since the API license has been reinstated, we expect that the performance to improve gradually in coming quarters.

Last about the court case of Jindal ITF versus NTPC. The conflict—in in for with respect to this conflict, the arguments from both sides are closed at the double bench of Delhi High Court, and the order has been reserved.

We expect the order to be announced in next maximum two months' time. The courts are on vacation, which are likely to be over in some time, and after that the order can be announced.

We thought let me give a brief summary this time, and let's have more interaction. I leave the floor open for interactive discussion.

My colleagues, Mr. Narendra Mantri and Mr.

Rajeev Goyal, are with me to address any of the questions and queries. Thank you very much.

Am I audible, sir?

You're audible.

Thank you very much sir for this opportunity. Sir, just wanted to understand now on the visibility going forward.

You mentioned that in India, the JJM continues to delay, the DI pipe offtake is also on the lower side, and the Middle East, because of the current situation, even the peace talks failing has provided you limited visibility. Just wanted to dwell more.

How should one look at the execution this year? Or by when we expect some kind of traction in your volumes?

Something on those lines, your comment would be very helpful, sir. Yeah.

Yeah.

Rajeev is accepting the question. Rajeev, can you please help?

Yeah. As Vinay ji mentioned in his opening remarks that performance in the first quarter is muted because of multiple reasons and geopolitical issues.

Which is likely to continue in the coming quarters also. This was also— Sir,

your voice cracked. Can you just repeat this last line?

Your voice was not very clear, yeah.

We mentioned that—

Rajeev, it's also echoing a lot. Is it echo also on your side?

No, I don't think so there's any echo I'm hearing, yeah.

Go ahead.

Given the current scenario, domestic as well as overall consolidated order book, which is quite persistent, that is a little bit big in terms of volume. We are in the current situation also, we are likely to execute these orders in the current year, and the volumes are likely to remain at the same level as it was in FY26.

That is our prediction given the current scenario. Still, geopolitical is going on.

We are working on multiple strategies beyond the MENA region. On the domestic front also, some improvement in water sector from state-driven projects where we are seeing some offtake improvement in first quarter, and this is likely to continue.

This is our estimate that in case the situation remains same, volume wise, we are likely to achieve the same level what we did in FY26.

Okay. Just to summarize, you mentioned the volume in FY27 overall is likely to be flattish given the current scenario.

Offtake, you have seen some improvement in Middle East, and you expect that to continue.

In the Middle East, the position is a little bit different. In domestic front, we have seen the improvement, but in the Middle East, the monthly dispatches should remain in the same range, like 10 to 12,000 ton per month.

That is something which is where we can supply the material through the road only. Till that time Middle East conflict is going on and sea route is not open, this level of operations we are likely to continue.

Deepak, let me complement what Rajeev said. Mr.

Poddar, Rajeev mentioned what we're doing from Abu Dhabi plant to cater to the Middle East market. Okay.

Secondly, if you're asking about how we're catering to Middle East, because the Middle East remains practically blocked for us, for the countries like India from March. We have sizable order book for Middle East from India.

As of now, that order book is on hold. We are now working out on various other options, specifically in terms of let's say if it is to cater to Saudi, because that's where we hold a order of 600,000 ton even if it is on the job-work basis.

Because Saudi has alternative route also, which can take in terms of time it can take much longer, it has a cost issue also, but we are now engaged with the buyer to find a solution which is a kind of let's say possible for both sides even if this stalemate continues, we are trying to find a solution that we execute at least that order because Saudi has both side of the sea. So [unclear] on that solution.

It might take some time, but we hope to find a solution for that. If that is workable, that takes care of a larger order book.

Okay. I got it.

Understood. Just one last thing, on the interest cost, there was a sharp reduction in your interest cost.

What led to that, and how should one look at your interest cost going forward?

See, this is the interest primarily on our working capital and term loan, which is a hard part. Let's say, ₹70, ₹75 crore.

One of the larger composition in the previous quarter, specifically quarter four of 2026, got significantly impacted because of sharp depreciation of rupee in that particular quarter. Fortunately, in this quarter, the rupee was fairly stable.

Hello?

Yes. I'm there, sir.

Yeah.

Okay. I thought that there's some disruption.

In this quarter, since the dollar-rupee was fairly stable, there was not much of the impact which can debited to this account. This ₹70, ₹75 crore is the cost which is being paid to the bank.

We expect these kind of run rate going forward as well, assuming the rupee volatility is not there?

Fine. That's a fair assumption.

Okay. Got it.

That would be it from my side. Wish you all the best.

Thank you so much.

Hi, good afternoon, sir. Good afternoon, everyone.

Thank you for the opportunity. My questions are around the MENA projects that are ongoing.

Firstly, on the seamless pipe plant that is expected to commission in FY29, any idea or any sense on utilization levels or volumes that could be achieved in FY29, as well as any sense on what happens on the DI pipe commissioning capacity of 1 lakh tons? How is that likely to contribute to our financials in the next two years?

Similarly, on the SAW pipes plant which are coming up in Saudi, what is the commissioning timeline if I have missed it earlier? Okay.

Shweta Excuse us. Okay.

To let's say to decide your question, you are trying to understand when these projects are going to be implemented, whether it is seamless project or LSAW, HSAW, and DI plant in Saudi and Abu Dhabi, okay. Theoretically, theoretically, the longitudinal and helical pipe plants should be done, can be done in 18 to 20, 24 months' time.

We are trying to crash some of the activities, and we and presumably are considering, maybe assume that the stalemate in MENA region is likely to be over in next couple of months, maybe three months, six months, whatever. This is the time when we don't need equipments to land at the location.

This is the time we will use to develop the site, specifically the Saudi, because they are the new sites. If everything works well, we can complete the execution in next one and a half years' time, and then the production, let's say the testing and everything will start.

Theoretically, we expect when we consider a let's say utilization of approximately 50% of the capacity. This is theoretical because everything will depend on if the project Because these are these are like simple technology projects, unlike ductile or other things.

There, we should get the orders, and depending on the let's say shifts we are using, the capacity can be ramped up. In terms theoretically, we have also assumed that we would produce and sell roughly 50% of the capacity, which is, let's say, 150,000 ton each in both the projects.

Ductile ductile 100,000 ton again we can consider 50% to 60% of the capacity, but the Saudi market can take the entire production also. That's not a big issue.

It will be continuous plant on the top of this. In terms of seamless, seamless, we again believe that we can complete this project now from today in next 18 to 20 months' time, because a lot of time has been saved by us by taking a land which is plot of plot of land which is already developed.

There was already a factory, we need not to fill the site, we need not to do piling and anything else. Equipment majority of the long-delivery items have already been ordered, and maybe in next 9 to 12 months' time the equipment delivery will start.

Again, when the when we are commissioning the project, we believe that we can do 50% to 60% in the first year. Seamless would require approvals also.

In the first year, couple of initial months will go for and is including in the longitudinal API grade. Couple of months goes for taking the approval, and pending that, we can do non-API production also.

To answer your question, we theoretically, we presume that production in all facilities will start in '28-'29, number one. Number two, theoretically, we are considering roughly 50% to 50% approximately production in all the facilities.

I was saying in that case, I think FY30 or FY31 could be the peak utilization of all the capacities together, if I'm not wrong.

Yeah. Shweta, you are right.

Within two to three years' time, we are expecting the peak capacity utilization in all the plants.

Two to three years from now, right?

From '28, '29 onward, yes.

Okay. Lastly, any guidance that you could provide for the seamless pipe facility in India, the Nashik plant, since now the API license is reinstated?

Earlier, last year, before the commissioning of the piercing mill, management was guiding to hit a run rate of around 80, 90,000 tons every quarter. When do we expect to hit this run rate or if it is still going to take time or what would be the possibilities there?

Shweta, utilization in seamless facility in Nashik is going to ramp up because—

Shweta, your question was relating to the capacity utilization improvement in seamless Nashik unit, where API licenses have been reinstated very recently. Since January to June, we were not eligible to participate in any of the API-related supplies tenders.

This activity has started now. We have started in participating the business, but what we expect that at least a quarter or so, there will be some gap in terms of the utilization levels.

We are expecting that September or October onward, the facilities should start improving the utilization level because API-related sales we are expecting to come into the production. October onward, we can expect the better utilization in seamless.

Roughly what utilization level, sir? Are we looking at 80, 90,000 tons quarterly volumes starting 3Q?

It will be somewhere in 70 to 80,000, yes, definitely, quarterly.

Sir. Thank you so much.

I'll come back in the queue.

Thanks for the opportunity, sir. Sir, our order book stands at 1.78 million tons, of which 0.75 million metric ton is export order.

Within exports, around 6.08 lakh pertains to Helitec SAW job-work orders. Could you help us understand the composition of the remaining 1.42 lakh tons, specifically how much relates to LSAW pipe and DI pipe?

Additionally, could you provide the break-up of exports orders between Middle East and non-Middle East, sir?

Sailesh, Middle East or non-Middle East combined order book, roughly 60% export order book is from Middle East, and rest of the 40% is from the non-Middle East market. That is on our overall basis, yes.

Okay. Sir, can you give the break-up of this 1.72, sir, other than non job-work order?

The balance quantity is 1.42 lakh tons. How much is LSAW and DI?

In terms of value if you talk about, roughly $70 million ton is from longitudinal, $30 million order book is from seamless, and ductile is from roughly $40 million is the order book.

Okay. This is overall you are talking, sir, exports?

In exports.

Yes. I'm talking about exports only.

Yeah.

Yes, fine, sir. Yeah.

Also, in the near term, as you said, the outlook remains uncertain given the geopolitical situation and the slow recovery in domestic water infra spending. How is the company thinking about de-risking in order book geographically?

Are you aggressively pursuing opportunities in the market like US, Canada, Southeast, and other region or is the strategy to maintain focus on existing market to preserve the market share and execution capability until the Middle East and domestic demand normalizes? What is our strategy?

In terms of ductile iron pipe, or water sector primarily led by DI, as you mentioned, yes, domestic front, again, JJM is not coming up very prominently. Domestic front, to mitigate the domestic risk, we have already started exploring the overseas market, primarily the Europe, which is having a good demand, and we are also getting good inquiry from this market.

We are likely to increase our export order book in the coming quarters. Some of the facilities will be dedicated for export market in ductile so that we can actually decentralize or de-risk the concentration risk on the domestic market.

That is the strategy we are following.

How about the other segment, sir, seamless and LSAW,

HSAW? Sailesh.

This is Vinay Gupta. Sailesh, in terms of our strategy or overall strategy, if we see in the last two years or couple of that years or for that matter, we used to have 30% of exports, 70% of domestic, maybe 5% plus/minus.

Now, the serious problem is on account of the MENA region. As any sensible organization would start looking beyond your strongholds.

We are at all possible territories in the regions where we can approach conveniently and economically. For example, for the longitudinal and helical pipe, it doesn't make any sense to look at US or China or Canada.

We have served to Latin America. We are looking at Southeast Asia, where China is not allowed, kind of.

We are looking at CIS. We're looking all possible options wherever the client are coming or can come, so that till the time the issue of MENA regions gets sorted— Hello?

Okay. Sorry Sailesh, line again had got disconnected.

I was just talking about let's say looking at various opportunities globally wherever it is possible, and hopefully we should make announcements in some time to come. These are the regions which earlier we were not focusing very, very specifically, which we are focusing now.

As Rajeev said, for ductile pipe, of course, we have a presence in Middle East, which is catering to Middle East. Now we are looking from Indian facility.

We are looking all over area, and we already have a presence in Italy, and we are very looking at it to increase the presence in entire Europe from there.

Yes. Sir, since you took the name Italy, in our latest company's LinkedIn post, it is mentioned that successfully qualified API 5L with minimum yield strength of 70,000 psi from the Italy lab for the LSAW pipe for transporting pure hydrogen and hydrogen natural gas blends.

Also, we supplied, I think, 180 miles of 18-inch pipe for Air Products. Sir, how big is this opportunity for the next 2-3 years?

How large the size of the demand globally? Also, what is our right to win over global players in this hydrogen transporting pipes?

Sailesh, yes, there are much talked about business opportunities related to the hydrogen transportation media as a pipe. We are qualified for that, and we have got some certifications that our pipes are qualified for transportation of hydrogen gas.

In that scenario, we are also exploring the possibilities and exploring the market wherever we get the opportunity. We can tap it.

We are ready, our facilities are ready. Still, at ground level, demand is yet to come.

We have not seen demand in a big way. There are discussions going on, but still, at ground level, we have not seen a significant demand in this specific area.

Okay.

Sir, one last thing. Also, in our annual report, it is mentioned that first-time company in India we are started manufacturing stainless steel coiled tubing.

Could you elaborate on addressable market, end-application use, and also the growth potential in both domestic and exports market? Okay.

These kinds of coils, see,

in our annual report, we have mentioned about this. This is a specific requirement of one of our customer.

Only shows our capability of dealing with the new requirements of the customer. As far as the demand and the name of the customer and the industry where it is required, because of it is customer-specific, and we are bound to non-disclosure policy of the customer, we are not sharing that kind of information.

Sir. Yeah.

Thank you, sir. All the best.

Thank you.

Hello, am I audible?

Can you speak little bit louder?

Yes, sir. Sure.

Am I audible now?

Yeah.

Hello, yeah. Last call you said that the margins have bottomed out.

Given that the Q1 numbers are yet not positive, since the margins will improve from this quarter or the pressure will continue to quarter two?

Hi. If I understand the question, the question related to the current margins and how the margins looks like.

Correct?

Yes, sir. Yes, sir, correct.

Okay. Margins, of course, have come down because the whole model has got disturbed a bit because of external factors, because of internal factors, like whether we call it the West Asia issue, we call it Jal Jeevan Mission, and also because of, let's say, the suspension of our API license for seamless pipe, which has been reinstated.

All sort of issues had impacted the margin, and this has also impacted our overall utilization of facilities, thereby the absorption of the fixed overheads. Moving forward in next couple of months at least, till the time we are able to utilize our facility to an optimal level, again the problem might continue because, at the end of the day, one is the basically the margins on the production, second is utilization of facility.

We expect because of, specifically in the LSAW, HSAW facilities, because of the lower utilization of those facilities, and secondly, we have multiple facilities across the country, there would be some pressure on those products, primarily because of lower capacity utilization. We expect that this may get arrested maybe in couple of months when we find, let's say, options and solutions to cater to the domestic demand as well as the Middle East demand.

Normally we don't give the forward-looking numbers, but in general, we expect that what we have done in the first quarter maybe second quarter may also be the similar, whatever. We are hopeful that if everything works well, the H2 would start showing the improvements over the H1.

Just to add on, as we mentioned that in the last call, it was mentioned that H1 will be softer given the geopolitical situation and domestic water industry situation. It was already guided that H1 should be softer, and based on that, results are also indicating the same.

Got it. Your impact on the H2 seeing a recovery will be intact, correct?

That is our expectation.

Okay. Yes, okay.

On the working capital side, does the working capital seems to be normalized at this point or will it see an increase after the operations get started and the utilizations improve?

Working capital is definitely directly related to the operations because now operations are on a lower side, that's why the working capital is on a lower side. Once the operations start improving, we may see increase in the working capital deployment, and it's a direct correlation, and working capital is a part and parcel of the business because it is a largely project-driven company.

Got it. This is due to the current utilization level that it has been looking at the lower level.

Correct?

Yes, correct.

That's it, sir. Thank you so much.

Thanks for the opportunity. What is our current capacity utilization, and can you break the domestic sales between this ductile pipes, seamless pipes, and SAW pipes, HSAW and LSAW?

Generally, we don't share the product-wise sales because we are maintaining the combined pipe portfolio as a single segment. That's why we are showing the volumes, pipe volumes and pellet volumes.

That is something which we are following as a policy of the company. Okay.

What was our capacity utilization in last quarter, and what was the capacity utilization for last year for full 2025-26?

Capacity utilization was approximately 60%-65% overall capacity utilization we did in FY26, and current quarter utilizations are also on the same line. Okay.

Okay.

It will not be possible to break sales volume-wise in different types of pipes like ductiles and this LSAW, HSAW?

It's a policy of the company. Since we are following a segment or pipe segment as a single segment, so that's why we don't disclose all these numbers product-wise.

You can consider overall, because this is a kind of strength of the company that we are total pipe solution provider. That's why all the pipe products are under the same roof.

You please consider as a total pipe volume.

Okay. Thank you.

Apart from this two Middle East projects which are likely in 2028-29, we are not having any capacity addition in between as far as domestic capacity is concerned, right?

Yes.

No capacity addition domestically.

No domestic capacity additions we are looking for. The capacity expansion projects are in the Middle East, like Abu Dhabi and Saudi Arabia.

In India, there will be no capacity addition, right, sir? No.

No capacity addition in India we have planned.

Lastly, when these projects are towards the end of their implementation cycle, what will be the peak debt of the company?

That term debt as of now, as we mentioned in the initial remark, it is in the range of ₹500 crore, 500-plus, and it's a long-term debt almost zero debt. That will be increased gradually.

Once the projects are over, we are estimating the term debt should remain in the range of ₹3,500 crore approximately.

From 500 to 3,500 it will jump?

Yeah.

Term debt. Working capital is additional, right?

Additional, definitely.

Sir. Thank you very much, and all the best.

Thank you.

Thanks for taking up my question. Of course, the line pipes business has seen some challenges in the India region.

In terms of bidding, right, are we seeing any pick up in bidding of any large upcoming orders in the India line pipes business? Basically, can you provide us with the amount involved in the bidding pipeline for the company?

That is something which is a market-related information or marketing strategy. That is something which definitely, as a process, we are tapping all the available opportunities.

Sharing any specific opportunity would not be appropriate because it is a public platform, and as a company policy, we are not sharing the marketing strategy and marketing policy on a public platform.

Okay. For any kind of forward integration like expanding more into pipe spooling business or any such plans?

Maybe not in the near term, but let's say over the next two years?

No,

no specific. When we're saying the spooling pipe business and all, this is the application of the pipe.

For example, our pipes, our ductile iron pipes can be used for cooling as well as for hot application in the different terrain. We basically produce pipe as per the specification—

Hi. We're sorry for again the lines are getting disconnected again.

What I was trying to explain is that we produce as per the specification and the requirement, and it is up to the customer or the buyer to put it to the use. I was explaining like we have seen application for ductile pipes in Middle East, which is being used into various kind of application.

Let's say it is also being used for cooling chambers or cooling application, also for the hot applications, because that's the properties of the pipe. We don't put to the application on our own.

Understood. Understood.

That's it from my side. Thanks.

Thank you.

We appreciate all of the participant who attended this call, and thank you very much for that, and look forward to have a interaction once again next time. Thank you very much.