Thanks, Aviraj. On behalf of ICICI Securities, we welcome you all to Q1 FY '27 results conference call of DOMS Industries Limited.

We have with us today senior management represented by Mr. Rahul Shah, Chief Financial Officer.

Now, I will hand over the call to Rahul bhai for his initial comments on the quarterly performance, and then we will open the floor for question-and-answer session. Thanks, and over to you, Rahul bhai.

Good afternoon, and a very warm welcome to everyone. Thank you for your time and for joining us today for the Q1 FY '27 earnings call.

Joining me on this call is the team from Marathon Capital, our investor relations advisor. I hope you have had a chance to review the investor presentation and the results release posted on the stock exchange and our website.

We were able to maintain our growth momentum in Q1 FY '27 despite a difficult external environment, including a sharp increase and continued volatility in raw material prices. This was driven by robust domestic demand leading to volume growth, supported by a strong back-to-school season coupled with marginal increase in ASPs on account of calibrated price increase to partially offset the significant increase and volatility in raw material prices.

All our core categories witnessed healthy growth. Scholastic stationery, scholastic art material, and paper stationery growth was led by the back-to-school demand backed by new launches and capacity additions undertaken in the recent period.

Our office supplies category continues to see high positive traction, led by growing demand for our pens and a widening portfolio of products. The new launches across mechanical pencils, erasers, paper stationery, pens, pencil boxes, school bags, and kits and combos received strong consumer acceptance.

This reaffirms our capability to drive growth through consumer-centric innovation and agile product development. Beyond our traditional-led growth, we also saw high growth traction in new-age channels of modern trade, e-commerce, and quick commerce.

This was primarily driven by momentum in our baby hygiene segment. Export growth was flattish during the quarter, primarily due to the global disruptions and elevated logistics challenges arising from the ongoing war situation.

Coming to our margins and cost environment: Sharp increase in raw material prices and volatility persisted during the quarter, driven by ongoing global uncertainties. We continue to manage this through prudent procurement to ensure uninterrupted operations.

However, the company has chosen to remain focused on volume-led growth and market share expansion over near-term margin consideration amidst sharp and volatile commodity inflation. Now coming to the details of our financial performance for Q1 FY '27: Operating revenues for the quarter grew by 19.2% to ₹670 crores, in line with our annual guided range, highlighting our sustained growth trajectory.

EBITDA for Q1 FY '27 was down by 16.4% to ₹82.6 crores, with EBITDA margin at 12.3% in Q1 FY '27 as compared to 17.6% in Q1 FY '26, primarily on account of fall in gross margins by nearly 400 basis points due to sharp raw material inflation linked to the West Asia crisis. Further impact on EBITDA was due to higher employee benefit expenses on account of new tranche of ESOP grants and increased employee headcount, and increased other expenses primarily due to expenses linked to organizing our channel partners meet along with the ceremonial occasion to mark the possession of the first building of the 50-plus acre project.

PAT for Q1 FY 2027 stood at ₹45.3 crores as compared to ₹59.1 crores in Q1 FY '26, and PAT margin for Q1 FY '27 stood at 6.8% as compared to 10.5% in Q1 FY '26. PAT growth was impacted primarily due to increase in depreciation on account of capacity expansion and commissioning of new facilities.

We see this moderation in margins as a temporary blip rather than a structural deterioration, and continue to maintain our focus on volume-led market share growth. In relation to updates of our ongoing capacity expansion: Our overall expansion plans are progressing well.

Development at the 50-plus acre greenfield project is now on track, and we expect to commission close to 300,000 square feet of operational area by the end of Q2 FY '27. This, along with expansion initiatives in adjoining areas, will help us scale capacity to capitalize on the latent demand for our products.

The company has already invested close to ₹100 crore rupees in Q1 of FY '27 primarily towards capital investments. Now coming to the update on the Reynolds brand, team, and asset integration: The implementation of the asset purchase agreement is progressing as planned.

The integration of Reynolds team personnel along with the movement of assets at our Umbergaon facility is now complete. The brand's full sales potential will be unlocked over time as integration progresses, as well as on commencement of manufacturing under the Reynolds brand, aligned with the commencement of the operation in the first phase of our new 50-plus acre greenfield project targeted for end of Q2 FY '27.

In the interim, until the desired scale is achieved, the apportionment of cost may exert some temporary minor impact on margins. Overall, we are very excited about the fundamental rationale behind the Reynolds acquisition.

The strong presence in the ₹10 to ₹100 price segment of pens complements our portfolio and helps us elevate the group's product price architecture. Further, by leveraging the legacy and brand equity of Reynolds, we aim to deepen consumer engagement across generations, and is a strategic step in strengthening our office supply segment portfolio.

As we look ahead, our guidance for 18% to 20% consolidated sales growth is further reinforced by the positive demand undercurrent in the domestic market. However, visibility on margin guidance remains limited owing to abrupt fluctuation in raw material prices.

Thank you. With this, I would now request to open the floor for question and answers.

Yeah. Thanks for the opportunity.

Now the first question is on margins. How should we think about the trajectory from here?

Is it fair to say that your margins this year will remain slightly weak due to higher RM cost, additional expenses for the new factories which you'll start booking at least to some extent, and initial costs for Reynolds? These will only normalize in FY '28?

Why have you not taken larger price hikes? That's the first question.

Hi, Kunal bhai. Kunal bhai, like we'd mentioned, for us our priority was very much clear that we wanted to focus on volume-led growth, ensure that the market share growth trajectory is retained.

Therefore, with respect to our pricing decision, we've taken very calibrated price increases. Towards the end of June, once the situation with the war was turning out positive, we've seen the raw material prices to come down from their highs.

However, in the last couple of weeks, again we've started seeing some increases because of the renewed situation in West Asia. Hence, again the raw material prices have started going up.

Over a period of time, we believe that the raw material prices will not be sustained at these high levels. They should probably cool off soon.

Once we come to know the new base, then in order to reach our earlier margins, if there are any further price increases to be taken, we will be taking that. Right now, owing to the abrupt fluctuation in raw material prices, visibility on margin guidance continues to be limited.

In '28, I think structurally there is nothing that is deteriorated. Once we have some stable price levels, the company will take a required decision to ensure that we again reach to our guided range of about 16% to 17%.

Okay. Second is as the production at the new facility starts in the coming quarters, how should we think about the revenue growth in second half?

There'll also be price hikes which will be contributing and there'll be increased capacity. Would you expect to go beyond 20% growth, excluding any impact from Reynolds?

How should we think about Reynolds' contribution in FY '28, which will be the first full year of operations?

Kunal bhai, see Reynolds is a brand and asset acquisition that we did. We did not take over any new manufacturing facilities from them.

The capacity to manufacture and sell Reynolds product will be coming from our existing planned expansion only. It is not going to add anything.

It's just that, otherwise in that particular plant, we would have manufactured DOMS-branded pens, now we will manufacture Reynolds-branded pens. It's not going to add significantly to the revenue projections for the current financial year.

With respect to the new capacity coming up in H2 of this financial year, this was already planned. When we guided for the 18% to 20% revenue guidance, we'd taken into consideration the new capacities, which would help us to reach this volume growth, would come from the 50-plus acre plant.

From a revenue growth perspective, we continue to guide with the 18% to 20% revenue growth in the current financial year. Okay.

What's Reynolds brand right now in terms of revenue number? Once you integrate that in FY '28, where do you see the Reynolds brand revenue to be?

See,

right now when we acquired Reynolds in the previous financial year, Reynolds had done a sale of about ₹130 to ₹140 crore rupees. We believe that we will be able to add significant value to this brand not only in terms of introducing new products within the writing instrument segment, but also leveraging this brand for other product categories.

Our intent is to operate Reynolds as a parallel brand focused towards the office segment as well as users which are professionals, I would say serious user sort of a thing. With this background, in addition to the existing range of products, we will also launch other products that shall fit right with this brand DNA.

Given this, we believe that in a short period of time in the near term, probably by FY '29, Reynolds brand should be contributing close to 10% of the company's overall revenues.

Understood. Just last question.

With all of these things happening, Reynolds...

Sure.

Hi, sir. Thanks a lot for the opportunity.

Just a couple of questions from my end. You did mention that there are a lot of one-offs, right?

One was ESOP-related, one was new facility-related, and then there was raw material prices which could not be passed on. Could we get some color in terms of individually how much have you passed on in terms of raw material pricing?

I do understand that scenario remains volatile, but how much of it is left to pass on, which will clear up two things: that how much of price increases are accounted in revenues and how much is volume growth, and also will give some flavor on margins. That was first one.

Hi, Sneha. Sneha, right now, we've taken on an average price rise of about 4% to 5%.

If I have to just talk about the first quarter, the average raw material price increase was about 20%. You multiply that with our consumption margin, overall consumption increased by about 10% to 11%, where we were able to pass on 4% to 5%, and hence 500 basis points was something which was left to pass on.

Like I said, we've seen some amount of moderation in the raw material prices. Hopefully, from what we heard as recent as Sunday, things should now stabilize again.

Probably those raw material prices should come down a bit. Hopefully, and with respect to the one-off expenses, like I said, in terms of ESOP, in the previous year same quarter, after that we've given one more tranche of ESOP, so that added about 0.2% to the cost.

There has been, I wouldn't say a one-off expense, but a non-recurring expense in terms of the channel partner meet that we organized while we were taking the possession of the first building in the 50-acre facility. That impacted our Q1 margins by about 0.4%.

Understood. Rahul, following up to the last previous question where you said Reynolds itself will become 20% of your revenues by FY '29...

10%.

10%. Okay.

That clarifies. Despite all of those things, then, your office supplies business, what we understand will be then the biggest driving factor in your revenue growth.

Don't you see any upside to 18% to 20% estimate, because ₹350-odd crores coming in FY '29 only from a newly acquired brand, and your previous guidance was itself 18% to 20% sort of a CAGR?

No, Sneha, that's what I tried to clarify in the previous answer to Kunal bhai also was basically, see Reynolds as a brand is an addition that is coming, but we've always been constrained with the capacity which we have. While we've acquired the brand, we are not acquiring any physical capacity.

My land, building, it's still something which is constraining factor, and that growth was already planned. Instead of those growth coming in DOMS, we will try to get some growth in Reynolds, work as a parallel brand, introduce some more products, let's say we plan to launch diaries and paper stationery products under the Reynolds brand.

It is going to come from the same facility of the paper stationery capacity that I have. It's just that diversion of capacity.

Some capacity would be for Reynolds brand. Yes, with Reynolds, we believe that our ASPs might increase a little better because Reynolds, like I said, especially in the writing instrument segment, targets the ₹10-plus, between the ₹10, ₹100 price point.

ASPs might improve a bit, but not a lot of volume growth that would come. It would be more of substitution from selling DOMS-branded products to Reynolds-branded products.

While I agree with you in that terms that today we have capacity constraint, but we were looking at a bigger picture for FY '29. Do we really have to, because by then we'll definitely have large amount of capacity.

You're working on a 50-acre land, you're already starting in Q2, and assuming by FY '29, you'll have manufacturing setup expanded already. Then why do we need a substitution?

Why can't we run both the brands simultaneously was my question, and why can't both the brands contribute?

No, both the...

Hi, sorry. We got disconnected.

Yes Sneha, what I meant was, while we continue to grow, the growth denominator will keep increasing. The new capacity, the 50-acre plant and another around 18-odd acres that we've acquired adjacent to our current facilities both in Umbergaon and in Jammu, that will also come under development.

A lot of new capacities will be added, and they would be sold in the DOMS brand and Reynolds brand both.

Perfect, Rahul. Understood.

Thanks a lot, team, and all the very best.

Thanks.

Thanks for the opportunity. Sir, in the opening comments, you mentioned that our focus is on volume-led growth.

Sir, given the ticket size of our products and our market leadership position, why are we hesitant to maybe take a slightly higher price hike to compensate for the RM inflation? Do you think that this can lead to any kind of downtrading?

Historically, has there been any precedent of any peer taking a price hike and which has consequently led to any kind of loss in market share? We believe that something similar could perhaps play out with us.

Hi, Jinesh. Jinesh, in terms of historically what we've seen is whenever such inflationary cycles have come in, when you take price increases, being a leader brand and enjoying strong position in a lot of product categories is definitely something which we could do.

During such times, it also allows a lot of peers and especially small and unorganized players also to have some breathing space. Historically also, when we've seen such inflationary cycles, we've tend to be a little more aggressive when it comes to pricing, because that allows us to ensure that the breathing space given to the small, unorganized players is reduced, and which results in sustained market share growth for branded players.

We'd experienced something similar during the COVID period. If you look at our pre-COVID numbers, you would see the company's revenue growth and margin trajectory had changed.

Similar we'd experienced during the start of the Russia-Ukraine war, when again crude and crude derivative prices had increased. It's a choice that we've taken that during this time, only for a near-term margin consideration, we don't want to increase the price, but become a little more aggressive to ensure that long-term benefits to the company are received in terms of higher shelf space in the retail counters.

Understood. Sir, my second question is on Reynolds.

Now, if I'm not mistaken, we have just bought the pen business and have chosen not to buy the OEM nib business of theirs. Just wanted to understand the rationale for not buying the nib business, because that could have provided an immediate backward integration advantage to us given the fact that we do not have the nib manufacturing capability.

Also from their perspective, if they are selling the pens business, bundling the pens business with the OEM piece would have given them a perfect exit. It was kind of a win-win situation for both of them.

Just wanted your thoughts, why we chose not to buy the nib business?

Jinesh, let me first clarify. It is not that we chose not to buy the business.

See, Reynolds is basically owned by Newell Brands. Newell Brands is a $7 billion-plus revenue-generating US-based entity.

They have multiple brands and multiple businesses across the world, and they were specifically looking at exiting only the Reynolds and Reynolds-related asset business in India. They globally own brands like Paper Mate, Sharpie, Parker, which are big brands within the writing instrument segment.

A lot of their tips for these products are manufactured in India. Strategically, they wanted to continue the tip manufacturing business.

When we entered into discussions with them, what we understood was they were looking at only exiting the Reynolds brand and related assets. That is why we did the transaction only for the Reynolds brand and the assets.

Coming to the tip manufacturing, from a backward integration perspective, we've already got the first tip manufacturing plant in India. It's an Swiss-imported plant that we've got in India.

Currently, the installation is going on. There have been more machines for which we've ordered.

I think over the current calendar year plus the coming calendar year, a lot more machines are going to come in, which will help us to manufacture at least about 30% to 40% of tip requirements in-house going forward.

Got sir. Understood.

Thank you. Thank you so much, and all the best.

Thanks.

Hi, sir. Thank you for the opportunity.

A couple of questions from my end. One, I wanted to understand on the crude salience in our core stationery category and in the diaper business.

The reason I'm asking this is if I see the margins for your core stationery business, there we can see a clear-cut reduction of close to around 600 bps. Your EBITDA margins for the Uni-LAN business has been intact.

Wasn't the Uni-LAN business also impacted because of crude? That's my first question.

Aradhana, Uni-LAN business also was impacted by crude. There are a couple of key raw materials in a diaper, are one, SAP, which is a superabsorbent polymer, again a derivative of crude.

Second is even the non-synthetic fabric they buy. What happens with Uni-LAN, because there is some more visibility and these products are basically imported, they give purchase orders well in advance, and the deliveries for that happened at the originally agreed prices because they were a little bit of long-term agreements.

The raw material prices there have also increased, and probably we'd see that impact in the current quarter. Okay.

Could we...

Aradhana.

No. I was asking, could we expect in 2Q to see some more margin depletion on account of say the higher-cost inventory, I'm assuming in 1Q, you would have some bit of lower-cost inventory also, which would have helped you, but in 2Q, could you have more of higher-cost inventory, which could lead to some more margin depletion at the gross margin level?

I wouldn't say that because, see at DOMS, which is much larger when it comes to consolidation, we do not carry very significantly higher quantities of inventory, especially polymers, because they're all locally purchased. It's not that we had significantly higher volumes of high-cost or low-cost inventory during the earlier quarters.

We don't see that significant impact to come on margins. In the diaper business, yes, there will be some impact, but at the same time, this is going to be the start of the seasonality of the diaper business from Q2.

Q1 is always a slower quarter for the diaper business because it's sunny days, there's heat all around India. Fixed cost absorption is a little less during that quarter, sales are relatively lower.

With the season pick-up happening from the second quarter, the fixed cost absorption should be slightly better, which might offset some amount of increase in the consumption margins. Overall, we don't see it would significantly impact the overall EBITDA margins.

Understood. Any further price hike are we anticipating, or the 4% to 5% that we've already taken is sufficient to cater to the volatilities that still exist in the crude side of things?

As of now, in the current quarter, we are not looking at any further price hikes. We believe that we would want to wait for the volatility or the abrupt fluctuations to settle.

After that, if we believe that any price rises are required once the base of the raw material prices are a little visible, then we might take a call. In the current quarter, we are not looking at any significant price rises.

Understood. Just two more questions.

One on export revenue, that saw a decline this quarter. What was the reason for that?

Which are the key exporting countries for us and which didn't do well? Second is on the West India revenue also, we see there's been a de-growth.

If you could just highlight what was the reason for that?

Export growth was more flattish in Q1 FY '27, one due to demand softness amid persistent inflation and subdued consumer sentiment in certain EU economies. Further, it was also affected by the West Asia disruptions leading to longer transit times, higher freight costs, and shipment deferrals.

That is the key reasons. Even West Asia, which contributes about 2% of our sales, it's not still completely opened up in terms of sales.

Those were the key reasons why export was flattish. With the new capacity, especially in the pencil segment, which is coming up, we believe that going forward, pencils is a product which close to about 25% to 30% of our wooden pencil sales comes through export.

With the new volumes that are expected to come up, export sales is expected to grow. I think here for the full year, exports should be around 13% to 15% of our overall sales.

Understood, sir. West India?

Aradhana, West India, you're comparing it with which period?

Last year 1Q, we did around ₹185, ₹186-odd crores of revenue. This year, we are at close to around ₹140 on a YoY basis, sir.

See, we've earlier also highlighted this that some of our merchant export revenues, which are actually export done by third-party merchant exporters, that happens through customers who are based in western part of India. We've got a few merchant exporters in Mumbai and Gujarat who do onward sales, onward export sales.

Like the overall export sales, because of these fluctuations which we just highlighted, were impacted, and because of that even those West India sales gets impacted a little.

Understood. I'll join back the queue.

Thank you.

Otherwise there's no change in the regional mix. North followed by West and then East and South continue to perform in that order for the company.

Gotcha. Thank you so much.

Hi, sir. Good afternoon.

Just two questions. Firstly, to understand, is it possible to understand that if the company does a capital expenditure of, let's say, ₹200, ₹250 crores a year, how much sales can they add in the overall top line?

Is a 2.5 number fixed asset turn reasonable? The 3 lakh square feet which you are commissioning this year, how much sales can that add?

That's the first question.

Hi, Rahul. Rahul, firstly, historically we've always targeted that for every rupee that we invest in our invest as capital expenditure, we should be able to generate ₹3 of sales.

If you see historically, we've been able to achieve that. Even if you look at the last year's number, we were close to about plus of 2.7x and very close to our targeted range of 3x.

Once the production facility is set up, it and starts commercial production, it takes us about 18 months to 18 to 24 months to reach the full optimal level, which is about 3x on the rupee that is invested. Your second question with respect to this 300,000 square feet of space which is coming up: Basically, in this 300,000 square feet that we'll start commercial production in the end of this quarter, and eventually will start getting gaining pace and momentum in H2, we are increasing our capacities for pencils, wooden pencils, pens, erasers, which is a complementary product to pencils.

Our, when we talked about our 18% to 20% growth for the full year, a large part of the growth for the second half of the year will come from these facilities. Like I said, we believe these facilities to gain complete commercial production, full utilization in about 18 to 24 months.

Right, sir. My second question is on margins to understand this better and just a clarification rather.

I could understand that there is still some gap, assuming spot RM pricing and you've taken 4%, 5% of price hike, there is still some gap to cover. Let's forget the shorter term.

If we just understand the fiscal '28 math at current spot RM pricing and the price hikes you've taken, do you think the company should go back to 16%, 17% of operating margin? Is that a safe number to assume for the next year?

Just one question was on the ESOP thing. If you just quantify the amortization of ESOP in terms of total cost for the full year for fiscal '27 and '28, which is expected to get booked?

Okay. First, I'll just answer your second question with respect to ESOP.

The cost for the total year for ESOP for both the tranches put together should be close to about ₹10 crore rupees. The one which we did in October '24 and then in February '26.

Both these tranches put together, for the full year, the cost should be close to about ₹10 crores. With respect to the gap in margin, like I highlighted earlier, as per the current prices, we see that there would be a gap of about 4% to 5% if the prices continue to as per the current spot prices.

If the prices continue to be at this level, then that is the increase that we might have to take to ensure that our margins for FY '28 reach back to our targeted range of 16-odd percent.

Just a clarification on this ESOP: ₹10 crores is for fiscal '27, right?

Yeah. For the fiscal '27.

Fiscal '28, what will be the number?

See, basically, as part of our ESOP policy, the current policy, we planned to give out ESOPs over a 5-year-odd period. We've done that for the two periods.

Even this year, there will be some ESOP outlay that will happen, and this will continue for the next couple of years. This number will rise.

Again, we will be able to quantify it once we decide on how much ESOPs will be granted in the current financial year, additional ESOPs granted in the current financial year.

All right, sir. Maybe I'll get back in the queue.

Thank you so much, and all the best.

Thanks.

Good afternoon, everyone. Am I audible, guys?

Not very clearly.

Now?

Hello?

Hello.

I'm on handset only. Now it's clear?

Hello?

yeah. Sir, my majority of questions have been answered.

Just I had left with one question. Just wanted to understand regarding on the export side.

Your export remains a relatively small part of revenue despite the FILA partnership. What are the key bottlenecks preventing faster export growth, and do you see exports become a double-digit percentage of revenue over the medium or long term going forward?

Syed, export is currently also double digit. It's close to 12% of our total revenues.

I wouldn't say there are any bottlenecks or anything. It's just that company continues to remain constrained with capacity.

Historically as well, whenever it's come to choose between exports and growth in the domestic market, we've always prioritized the growth in the domestic market. Whatever new capacities whenever they've been added, the domestic market has supported or accepted it wholeheartedly, and a bulk of new capacity additions which actually drive the revenue growth of the company have been absorbed in the domestic market.

That is the only, I would say, challenge. Challenges in terms of capacity.

Like I said, with some new capacities coming for pencils, new capacities coming for some innovative, differentiated products, export, at least in the near term, will gain a slightly better momentum than it has done in the past.

Got it, sir. That's it from my side.

Hi, Rahul. You mentioned that FY '27, despite Reynolds coming in, we should take a 18% to 20% type of top line at the total company level.

What about FY '28? Would it also be 18% to 20% or Reynolds will add some incrementality to it?

Percy bhai, a little early to guide about the revenue growth in FY '28. I believe the growth trajectory momentum should remain similar.

Like I said, it is from the planned capacity which was expected to drive growth in the coming 2, 3 years. From that, we will divert some capacities to manufacturing Reynolds-branded product.

Those would not incrementally add significantly to revenue growth. It's just that we'll be able to create a parallel brand.

Yes, there would be some growth because of relatively higher ASPs under the Reynolds brand, but not something very substantial. We'd probably want to discuss on FY '28 growth numbers a little later in the next couple of calls, probably.

Rahul, when we have acquired a brand, when the demand is there for that brand in the market, what really prevents us from, let's say, adding significantly higher capex and starting to sort of add it right away? Let's say some part of it comes in second half, some part of it comes in first half of next year.

Why can't we do, let's say, over the next 12 months, ₹400 crore of capex instead of the ₹200 or ₹250 we are planning? We certainly have the internal accruals and even if little bit of debt is required, we can take it.

There is a market for this product and sort of we have done an acquisition, and if ultimately it's not going to add incrementally to sales, that is a lost opportunity for us. What prevents us from really doing higher capex now?

Space. Like we'd said, we are already constructing this massive project.

Earlier was about 45 acres. We've acquired more additional land.

It's now about 50-plus acres of land which is under development. As and when these buildings get ready and developed, we'll start manufacturing activities in these buildings as fast as possible.

In addition to that, close to our existing flagship unit, we've acquired another 11-plus acres. In Jammu, we've added land building.

We are doing capex, but it's probably easier said than done in terms of deciding that let's do ₹400 crores together today, because a lot of planning needs to happen. We need physical space, which has been a constraining factor, because of which we've been constructing these land and buildings.

I think, like I said, there will be because of Reynolds, there will be incremental revenue growth that will be coming, but that will be more from a perspective of being able to sell at a higher price point, and at the same which will help us in improving our ASPs. Not a lot of volume growth will come because of Reynolds, because that volume growth will come from the capacities that we are able to add.

Understood. I'll take this offline.

That was my only question. Thank you.

Yeah.

Hello. Hi, am I audible?

Hello?

Yeah. I just want to understand, is Reynolds a higher-margin business?

Anchit, see Reynolds historically when there was being operated by Newell, they did not operate at very high margins because they had a lot of costs. Now that we've just acquired the brand and we will be managing the entire production and the sales part of it, it will operate as per our margin structure.

I believe the margins for the Reynolds brand also will be as per our margin structures. With respect to margins, we've always followed a principle which says that nothing at the cost of market and nothing at the cost of margin.

Eventually, we will want Reynolds to also operate like our other brands doing about that 16-odd percent EBITDA margin. Since we will be controlling the cost, controlling the production, we believe we'll be able to get to that margin number also soon.

Right. Would you say this is the bottom in terms of EBITDA margin for the year?

That

this is all the impact was that you said was staff cost and for other expenses?

Yes, absolutely. Hopefully, shouldn't be many more surprises from Mr.

Trump, and then we believe that this was probably the bottom and things should be better going forward. All

right. Thank you.

Thank you for the opportunity. I just wanted to know if the 4%, 5% price hike that we've taken is standard throughout the industry as well, or our price hike was a bit lower or higher compared to the industry?

I think probably the industry was actually waiting for what decision we've taken, and after we've done a calibrated increase, I think overall the industry has done sort of a similar sort of a step. Not anybody doing anything very high or very low.

Once the raw material cost come in our comfort range, then what do we plan to do of that price hike? Do we plan to enjoy the extra margins for some time or we go back to some lower prices as well now?

What we've always done is, like I said, nothing at the cost of margin, nothing at the cost of market. Whenever we've seen in any product or because of any such actions, if the margins are increasing we'll add some value to the product.

We'll make the product much better for the consumer. We will definitely not want to sit and eat on these margins sort of a thing.

We'll definitely give the consumers or our channel something additional to enjoy.

Okay. We should take FY '26 gross and EBITDA margins as the benchmark for our margins and try to maintain those going ahead?

Yeah. Like I said, yes, FY '28, that's how we should look at it.

Yes. Thank you.

Thank you very much.

Hope, sir, I am audible?

Yeah. Hi, Saurabh.

Hi, sir. Sir, just wanted to get your thought over say last decade or so, what would be cumulative price hike which you would have taken in say in pencils on a blended basis?

I'll have to come back to you on this. I'll probably have Bhavin from Marathon or somebody get back to you with this answer.

I'll have to calculate. I wouldn't say it is very significantly high because the MRPs of the product would have increased from what ₹5 to ₹6 or ₹7 at max.

We'll have to come back to you on this.

Sure, sir. Sir, second sir, in last say maybe a decade or so, what would have been the industry volume growth per se?

Difficult. Honestly, difficult to give this answer.

No problem, sir. Great sir.

Thanks. Because there's no organized report as such that covers,

yeah.

Understood, sir. Fair enough.

Great, sir. Thanks a lot, sir.

All the best.

Bye-bye.

Thank you, everyone, once again for joining us today. We appreciate your continued support and confidence in our journey.

Should you have any further questions, please reach out to our investor relations team. Thank you, and have a great day ahead.