Apex Frozen Foods Limited ($APEX)

Ladies and gentlemen, good day, and welcome to Apex Frozen Foods Limited Q4 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Suyash Samant from Stellar IR Advisors. Thank you, and over to you, sir.

Thank you. Good morning, everyone, and thank you for joining us today. We have with us the senior management team of the Apex Frozen Foods Limited, Mr. Chowdary Karuturi, Managing Director and Chief Financial Officer; and Mr. Durga Prasad, Senior Manager Accountant, who will present Apex Frozen Foods Limited on the call. The management will share the key operating and financial highlights for the quarter and full year ended 31st March 2026, followed by a question-and-answer session. Please note that this call may contain some of the forward-looking statements, which are completely based upon the company's beliefs, opinions and expectations as of today. These statements are not a guarantee of the company's future performance and involve unforeseen risk and uncertainties. The company no obligation to update any forward-looking statements [indiscernible] statement is made. I over the conference over to Mr. Chowdary Karuturi. Thank you, and over to you, sir.

Yes. Thank you, Suyash. Good morning, everyone, and thank you for joining us on this investor call for Q4 and FY '26. We have uploaded the investor presentation on the website of the stock exchanges, and we do hope that you have had a chance to go through it. . As highlighted earlier, we continue to broaden our global footprint through geographic diversification over the past 3 years and more, which helped us in FY '26, we're in one of our largest markets, U.S.A. faced disruptions due to first tariffs and later on due to war-led transport issues -- logistics issues, rather. Despite softness in the U.S. market, we were able to maintain our volumes close to last year's levels of 10,300 metric tonnes backed by robust performance in the non-U.S. markets, mainly European Union, which grew 19% year-on-year in FY '26 and 50% year-on-year in Q4 FY '26. For the first time in Apex's history, non-U.S. export markets became the largest contributor to sales in FY '26 accounting for almost 52% of the total sales mix. Nevertheless, as highlighted in the past, the U.S. continues to remain an important market for both India and and we remain confident in our positioning and ability to capitalize on the opportunities as market conditions improve. Now coming to our financial performance for Q4 FY '26 and FY '26. In FY '26, we delivered a healthy revenue growth of 14% year-on-year to INR 931 crores, driven primarily by firm global shrimp prices and favorable currency movements. Shrimp sales volumes remained largely stable at 10,286 metric tonnes in FY '26 compared to 10,534 metric tonnes in FY '25. Stable farm gate prices year-on-year, along with ongoing cost efficiency initiatives, supported profitability as the EBITDA grew 145% year-on-year to INR 73 crores with EBITDA margins expanding by 405 basis points to 7.7%. Profit after tax increased to INR 39 crores compared to INR 4 crores in FY '25, reflecting a strong growth of 902%. In Q4 FY '26, net revenue for the quarter stood at INR 168 crores compared to INR 197 crores in Q4 FY '25. While sales volume stood at 1,912 metric tonnes versus 2,349 metric tonnes in the corresponding period last year. EBITDA increased by 118% year-on-year to INR 17 crores with EBITDA margins expanding by 593 basis points to 9.8%. Profit after tax stood at INR 8 crores, registering a growth of 296% year-on-year. Coming to the balance sheet. We continue to focus on strengthening our financial position through disciplined debt reduction and strong cash generation. Total borrowings reduced significantly from INR 107 crores in March 2024 to INR 6 crores as of FY '26 end. Net debt to equity stood at negative of 0.02x supported by robust cash flows from operations of INR 96 crores during FY '26 versus INR 54 crores in FY '25. In conclusion, despite the recent headwinds, we have remained focused on strengthening our fundamentals through debt reduction, cost discipline and revenue diversification, mainly supported by our manufacturing capabilities and also available in capacity. We are well positioned to scale the business and capitalize on improving market conditions. We will continue to diversify across markets, enhancing resilience and creating a strong foundation for sustainable long-term growth. With that, we can now open the floor for a question-and-answer session. Thank you very much.

[Operator Instructions] Our first question comes from the line of [indiscernible] Family Office.

Yes. My first question would be, if we really see we have grown quite well in the last few years, been double while U.S. contribution in terms of the absolute remains around INR 500 crores, which was erstwhile around INR 700 crores. So I understand the impact of tariffs, but going forward, if the tariffs behind us, so this revenue should scale back to some degree, is understanding correct?

The volumes should be scaling back for the U.S. market, to answer your question. The revenue, of course, is of course, determined based on the realization, the unit values, of course, in dollar terms as well as the currency realization. But definitely, the volumes to the U.S. will be scaling back as in the past. Now with the tariffs being brought down to a lower level of around 10%. So yes, that eventually it will result in a scaling back of revenue also. But mainly the volumes are going to come back. So obviously, the end result will be the revenue growth also.

Okay. So this is along with the growth of whatever the growth we are seeing for so it will be growth from a second end of the growth, right? [indiscernible]

Yes.

Okay. Okay. And sir, what is your hedging policy like -- I mean, since the rupee has depreciated that so much. So going forward, like how do we see it benefiting us if there [indiscernible]

We do cover our risks partially by way of forward contracts as we also continue to add new orders to our order book. We do hedge part of our risks by way of with our authorized dealer banks -- dealer bank, basically. And that's how we have been doing all these years. And even though there was a brief pause in the middle of last year FY -- I mean, middle of FY '26 because of significant depreciation in the currency. And we are following the same even now. We do -- partially, we do cover. I would say to the extent of around max 30%, not more than that currently.

Okay. Okay. So I mean with 30% composition, it should only help us going forward in the following quarters, right? And then since the rupee has depreciated so much?

Yes. And as you know, in the country itself, the trade is also dependent mainly on exports. Obviously, currency depreciation or appreciation, obviously, will have its resultant effect on how -- on how the business is conducted definitely. So yes, for now, it is a positive sign on the side of exports, for sure.

Okay. Okay. And sir, what aided this margin growth this time like what the 7% [indiscernible] so 7% growth. So what is the reason for this margin up

Well, the most -- of course, a few points, of course, are also usage of a significant part of our inventories from the earlier quarters also is one of the important part, which supported apart from like the earlier point, which you have mentioned about the depreciating rupee. But then you also look at it a reduction of overall debt -- the cost of debt. We have reduced our debt significantly. Of course, it's not just -- it not happened in Q4 alone, but it has been happening over the quarters of FY '26. And definitely, the cost savings on that and also certain efficiencies parameters, which we are taking up at the -- in the process level also is basically bringing -- keeping our costs stable and also mainly supported by the raw material pricing also, which was a bit favorable for a certain period of time. So that -- all these multiple factors put together have definitely aided the growth in the margin as a whole.

Okay. Okay. And these are customable at this level, the margin margin sustainable at this level?

We should be, especially we should be considering that we are also in the earlier years, if you see, we also had some certain provisionings also which were done and all that -- most of it is being done away. It's done. So obviously, the margins hoping that the market remains stable. And since we cannot depend on just 1 market excessively, which has already been thought to us. Listen, that's one of the reasons why diversification also helps us in keeping our business balanced in an overall in a broad manner that definitely helps and aids the retention of the margins at which we are currently are.

Okay. Okay. And 1 last question from my end, sir. So can you just either for further income for full year. So it looks -- the INR 13 crores. So what is the [indiscernible]

The other income is mainly foreign exchange difference, net. It is part of the revenue only, it's just for accounting purposes most of it is a foreign exchange difference on that apart from some marginal lease income or something which is in few lakhs, but most of the INR 17 crores is all foreign exchange difference during the year.

Okay. I'm just -- sorry to -- just 1 last question. Sir, total cash holding. So what is your total cash holding, sir, including the investment in the, I think, other noncurrent there is some number. So what is the nature of that?

I'm sorry, can you repeat? It is -- you say 108 -- this is 185 -- can you -- what did you ask specifically cash and equal...

The cash on the balance sheet, so what is the cash on the balance sheet?

Cash [indiscernible] it is we our cash balance includes bank also -- 18.31%, sir.

And also, there is some items to just sorry, -- so in the other financial assets, which is a measure of INR 26 crores. So what is that item of it?

financial you were talking about 21.66, right?

[indiscernible]

Sorry.

Yes, correct.

They are fixed deposits.

Okay. So total cash plus that 26, it is 18 plus 26 now?

Sorry, it is the fixed depots as well as receivables also.

[Operator Instructions] Our next question comes from the line of [indiscernible] Capital.

[indiscernible] around 1,900 metric tonnes and what was the volume was last year for Q4?

Sorry, hello?

What was the volume last year Q4. Q4 FY '25 volume.

Last year for Q4 FY '25, it was -- no, this year, it was -- total sales was 19 -- 1,900 metric tonnes. Last year, it was 2,300 metric tonnes in Q4.

[indiscernible]

Yes. Yes. Yes, that is a [indiscernible] margin input, do you currency favorable movement or favorable price movement of our product? Am I correct?

No. You say the quantity has reduced, of course, in Q4 FY '26 because of certain -- during the holiday time in India. I mean in January, there was a shortages of worker issues -- I mean, worker-related issues. But you are asking about the margins specifically. Is that correct?

Yes. Why gross margin

Yes, which we have stated also in our investor presentation also, as you see, mainly for Q4, the work has supported is also a stable farm gate prices which also helped us in 1 of the major factor for having a -- having a sustained margins during the quarter, even if the volume has come down.

And my next question on FY '27 what is your [indiscernible] because the U.S. market is stabilized and a market also doing good that means FY '27 than this year?

FY '27, we expect to have a, of course, increase in volumes overall, definitely, with all -- with -- for now considering that no new issues come up. And with you, hopefully, EU FTA also coming into play soon. we expect growth of volumes in multiple markets and also retaining, as we have mentioned to an earlier participant also regaining the volume with regard to U.S. post reduction of tariffs. All put together, yes, there should be a better volume growth for FY '27. And we have originally envisaged, of course, almost growth by almost 30% in volume terms, but we need to see. That's on the whole year on a yearly basis, but we need to see how that goes between quarters, we need to see that. .

Yes. And next question on margins. And you mentioned on our steady state margin. This year margin will be weaken next year. Are you telling about Q4 margin or FY '26 margin?

Sorry?

What is your margin guidance in FY '27?

No, that's -- we said we would be able to sustain these margins what we have currently.

Currently means FY '26 or Q4 FY '27?

FY '26, right? That's what was the question also, whether we would be able to sustain these margins going forward.

And my last question on this will be category for what was revenue mix from

For the last -- for the Q4, it was 12%.

And last year?

No, no, for the Q4 -- sorry, for FY '26, it was 12% for FY '25, it was 10%.

Our next question comes from the line of [indiscernible] PMS.

My first question is like what is the current tariff on your products in the U.S.?

Tariffs is with regard to the IEPA tariff, which got levied last year, it is -- which went up almost all the way till 50%. Now it is currently 10%.

So post the FTA, like is it going to reduce further or...

I don't know -- for the U.S.?

Yes.

We are not -- we do not have the details of the FTA with the U.S. as of now. We were mentioning earlier we were discussing about the FTA related to EU and U.K. But with regard to the U.S., we do not have any details as of now. But currently, all the countries -- I think most of the countries are all paying a 10% tariff that has been...

[indiscernible] U.S.

As far as U.S. is concerned, we are paying a 10% tariff in regard to tariffs. So yes, that is the present situation.

In the last phone call, you said that 18 percentage would be the effective tariff in the U.S., right?

That is 18%. In the case of tariff, it was 18% at that time. And if you remember, it got reduced subsequently to 10%.

Okay.

Yes, it has been reduced to 10%. Yes.

So like, right now, in the U.S., because of the currency movements and because, let's say, the Ecuador's currency is the U.S. dollar, so I am guessing that you would have some advantage over them in terms of pricing, right?

Well, there could be pricing in the sense of realization in rupees? Is that that's what you're implying? .

Yes.

Yes, it could be. But at the same time, -- we also need to factor in various costs also, right? So there would be some -- where we cannot really -- there, of course, their costs are based on -- in dollars, like you rightly said, in their -- because their currency being in dollars. But in our case, with depreciating currency, there are certain advantages, which definitely , which we can see as we realize higher -- in fact, we had also responded to 1 of the earlier participant that a significant part of the foreign exchange difference was quite high. I mean the gain -- net gain of foreign exchange difference in the current year was quite high, mainly on -- attributed to the depreciation of the exchange rate -- currency, currently.

realization of the ForEx gain or are you cutting the end prices in the U.S. to gain market share that's what I'm asking?

Not really because one important point is that in any case -- in case of a depreciating rupee, finally, it also gets passed on. Depending on the situation, it also gets passed on to the end producer, which is the primary -- the farmer -- at the farmer level because obviously, there is competition overseas as well as there will be also demand/supply situation even in the country, right? So it's not really a point that there is a depreciation in the currency, it will be passed on to the customer because our order book is not something like -- it is -- the currency is depreciated today. And hence, we are going to realize the money this month because it's always whatever orders we sell typically, the payments are received only after 70 to 90 days because for the order to take up or to get shipped itself, it takes a minimum of 30 days and subsequently, it takes another 40 to -- minimum 40 to 60 days for realization of those proceeds. So it's not true that in case of a depreciating currency, any such benefit would be passed on to the customer because -- there are also certain situations where the currency also appreciated at certain times. So it's not a fact. As I told you, this also would result in -- on the costing here also. That will also be changing accordingly.

Understood. So 1 more question I have is like EU volumes -- import volumes, not from India, from Ecuador, it's a little low in the last 2, 3 months. India's base is lesser, but the volumes are growing. And U.S. now coming to 10 percentage tariffs. So how do you see the demand outlook in these 2 markets and the supply, which is basically India and Ecuador. How do you see this landscape?

Well, see, as far as Europe is concerned, the type of product, which Ecuador does mostly to Europe is the base commodity product, which is head-on, shell-on. So as far as -- and for specific markets in the southern part of Europe, whereas most of the products which are exported from Asia to northern part of Europe and also parts of East Europe are all more value-added, whether it is in ready-to-cook or also even ready-to-eat. So these are 2 different category of products which can't really be compared. And as far as their exports being reduced to Europe and maybe they have been picking up in some other markets, some other countries, maybe whether it is in China or U.S.A., it depends. But for us, we have anyway been diversifying over the years into the European Union, and Apex will continue to do that into other markets in general. And positive factors like FTAs will definitely help us more as they get implemented. I think U.K. will be the first one to implement sometime soon, very soon and followed by EU more towards maybe the end of this calendar year, hopefully. And they will definitely help us to gain more volumes out of the EU, especially. And as for us, our products, we are well placed with regard to having a good market share and actually growing them further also in the European Union, especially. That's with regard to the U.S. market -- sorry, European Union market.

With regards to the U.S.?

U.S., we are getting back -- as we mentioned to an earlier participant, we are getting back our volume. So we're getting back our orders into the U.S. already post removal or rather reduction of tariffs to 10% because of -- all the shrimp-supplying countries are at the same -- on the same level playing field as far as the tariff is concerned. So we are getting back our orders from the U.S. market also. So we'll continue to grow on both ends. So as stated in our -- one of our earlier calls also, we are not going to reduce the other markets' market share even if U.S. market -- as we regain our U.S. market. So that way we would put it -- in the overall picture, it will be helping the company to grow further.

So are you -- the most optimistic you have been in the last many, many years because it's been a long time you have been facing so many issues.

Yes. I mean, definitely, being optimistic is 1 part, but also at the same time, we are moving into a world where uncertainties are increasing and certain sudden incidents or events are also changing a lot of the overall dynamics of the trade. So we need to definitely have a -- we are optimistic, but at the same time, we are also having -- we have been cautious, that's how I would put it. .

Our next question comes from the line of [ Maher Gupta ] with [indiscernible].

I just want to understand what's your long-term goal? Like what's your guidance for the next 2, 3 to 5 years?

Well, as we mentioned earlier to the other participants, definitely, we are looking positive with the way things are going and gaining market access or hoping that we have a stable supply situation, and we are able to utilize our production capacities in an optimum manner. As we still have a good headroom for growth because of our overall utilization of capacity is also being currently at only at 30% for the full year, example. So we definitely look for further growth going into the next few years, supported mainly with multiple markets and also to a certain extent on the domestic side, even though on a limited scale basis. So all put together, it should be kind of a good situation going forward into the next 2 to 3 years. So we need to -- for now that's what we can say. And -- as we also mentioned that we have -- currently, we have planned volume of around roughly around 14,000 metric tonnes, but we need to see how that goes with other factors influencing our overall productions. And because sales wise, there is no issue, we are growing our order book. But then production is one part and also logistics continue to play a big deterrent with regard to equipment support, the vessels -- the shipping vessels, schedules. They are also playing a role, and we don't know how long that will last. We need to see how that goes by. But definitely in the medium term and long term with all these FTAs and the production capacity is being made -- being available, we are looking for a very positive growth into the future, for sure. More in medium and long term. Even though short term, there are some hiccups with regard to all these other issues, logistical part and all that.

Our next question comes from the line of [indiscernible] with [ DTI Partners ].

Just a quick couple of questions. I think despite you're getting maybe the approvals from the Europe market last year in the early half of FY '26, I think on a quarterly basis, if we were to look at it, maybe we have almost a 30% decrease in revenue from the Europe markets. Just what are you seeing on that front? And how are you seeing that maybe -- do you expect the revenue to grow a lot?

Sorry, we do not have a degrowth with regard to the Europe market, if that's specifically you're asking about Europe?

No, I just wanted to know like how you see this kind of growing on a -- going forward?

No. Europe will continue to be our major -- one of the major markets, for sure. And we definitely look forward to have a consistent growth, especially with -- supported by the FTA also, once it is in place. So currently, we are -- for the whole year, we have done 50% of our volume to the European Union, roughly -- around 50%. So that is -- it's a major part. And now in FY '27, we look forward to growing back U.S. again. So that way, it should help the volumes in general -- volume growth in general.

Okay. Perfect. And just another quick question. So if we look at another competitors of yours Avanti Feeds and just their process in business, I think this quarter, the revenue grew by almost around, I think, 22% Y-o-Y. And I think with similar margins, I think ours is -- like in the same time ours has maybe gone like a little down on like a net basis. Just how are you seeing that? Like is that purely because of the U.S. market being so maybe more exposure? Or -- yes, just how you're thinking of this?

Well, it depends. We -- I wouldn't be able to much comment on the products or volume -- the different products, what they handle or the markets which they handle specifically. And also their capacities, what different companies have, whether it is the A company, what you mentioned or it is some other B company. But at the end of the day, it also depends on the overall capacities on the products which they do. In our case, specifically, we did have a little bit of issues in the beginning of Q4 in the month of January, especially, that definitely -- Jan and Feb almost. Our volumes actually picked up more in the month of March, to be precise, that helped us to -- at this level. And I wouldn't really -- we wouldn't really be able to comment on how -- what they are doing or how much of it is which market, domestic, overseas, I'm not aware, not fully aware about it.

Congratulations on a good quarter despite like a lot of

Thank you.

Our next question comes from the line of [indiscernible]

So there are a couple of articles saying that the farm gate prices have collapsed, and that's why even the Andhra Pradesh has capped any feed price hike and that's also taking an impact on the harvesting. Do you think you will have any raw material challenge going forward given how the on-ground farm gate situation has been?

Firstly, whether it is raw materials or any products, it's purely based on demand-supply situation. And whether it is -- we definitely appreciate the efforts of the government of Andhra Pradesh as well as Government of India as a whole in being supportive of the industry as a whole, again. But at the same time, we also need to factor in the overall scenario with regard to international demand, which determines what is the volume which can be taken by us and the -- and also what can be sold. Comparing India's farm gate pricing to many other countries, we are still higher actually at this point. And it could be that certain individual persons are not happy or whatever it is. But at the end of the day, definitely, we have information of our Indian farm gate prices overall being in a good level compared to other countries also in the present market scenario -- market situation. So however, of course, I wouldn't -- we wouldn't be able to comment on the feed part because we don't deal with the feed, but the government is in -- advising everybody to be supportive of each other and trying to -- try to have a sustainable -- sustained growth of the industry as a whole. So -- but then as we stated just now, it is more of an overall demand-supply situation and the prices what are being paid today are also -- it's a similar scenario every year around this time, when the summer crop happens and when overseas customers also are aware of the harvesting seasons across all countries. It is not a specific Andhra Pradesh problem or an India problem as such. So yes, that way. But still, as I mentioned, -- we are definitely, today, we are paying higher prices to the farmers in the country compared to many other countries. So that way, if we see, I think we are well placed in one way.

Our next question comes from the line of [ Karan Gupta ] with [indiscernible] Capital.

Just 1 question. You've previously spoken about consolidating operations at the new facility. So can you just give us an update on whether both facilities are currently operating or what is the plan there?

Yes. Both of them are currently operating. Yes, there were some -- for some periods in last year, there was a consolidation happening. But as we are in the summer crop and the arrivals are going to be in a consistent manner, we have -- we are utilizing both the capacities, both the facilities currently.

And then can you just tell us the current farm gate prices and your realizations for orders that you might have booked since the end of last quarter?

Well, we can -- I will -- I would just say that we still have an average realization price of still holding at around $9.77, $9.8. It's continuing around that level, $9.5, $9.7 per kilo -- or sorry, $9.5 per kilo roughly, approximately, but between market, depending on the products, what we do. And as far as the farm gate prices are concerned on an average, it would be -- for the full year last year, it was $327. But at this time, it is -- currently, it's -- it's just a little bit -- it's around the same -- for the last year -- last quarter, Q4, it was $348 for us average. It will be around maybe $340 this quarter, roughly in the Q1. So to answer your question, it's roughly around $340 average between all the sizes what we purchase and around $9.5 roughly between all the sizes and products which we produce. Of course, we do have $12 worth or sorry, $10.5, $11 also. But overall, it will be -- the average pricing would be roughly -- last year, it was $9.7, sorry, $9.5, $9.7. But now currently, it is around $9.1 per kilo, roughly around that.

So correct me if I'm wrong, our calculation show it was around INR 840 a kilo in Q4. Is that...

That is in the -- that is in the -- INR 830 for Q4, but that is in rupee terms. Yes, yes, sorry. That is in rupee terms. Again, please understand that there's also a depreciation of the currency, which matters, right? Also, -- I mean the currency movements also affect the realization in rupee terms. I was just giving you the dollar terms roughly $9.10, $9.20, roughly around that level.

Okay. So there would be -- so for the current quarter, there's an approximately, say, 7% to 10% increase in rupee realization.

I am -- well, we wouldn't know until the end of this quarter, how it will -- because we don't know what's going to happen next week with regard to the dollar or rupee movement, right, please?

[Operator Instructions] Our next question comes from the line of [ Tushar Tiwari ] with [ Fin House ] Capital.

Sir, I just wanted to get some color on this export benefit, whether this export benefit will continue in the future? And will it continue the same incentive percentage-wise? Any input on that perspective?

Well, for now, as of now, what we understand is they will be continuing unless there is a policy change. But at the same time, please understand the benefits or incentive what you claim. It's more of a -- currently, whatever benefits we get is more of -- purely more on account of reimbursement of various indirect taxes, which have been paid during the making of the product and it's not really as an incentive as such, it's more of a reimbursement -- rebate of various duties and levies which were paid. So that, as of now, we believe that we understand there's no change in the policy. We believe it is going to remain around that level between -- that's between 5%, 5.5% to 6%. But that is subject to -- again, there are caps involved. And unless there is a change in the policy in term -- in between, we don't really see any variation -- any -- sorry, any much of change on that account? So that is there for now. We don't know until there is any change in the policy as of now. So for now, it's there.

Our next question comes from the line of [indiscernible].

Sir, can you revise our -- can you clarify on time our procurement cost and realization?

So average procurement cost for the quarter Q4 FY '26 was INR 348 and realization for the full average realization was INR 830 -- in rupee term, it was INR 830.

Yes. And my next question on media culture. Do you see any negative effect on our margin due to the Middle East and most cost increase and positive time of the increase do you see

There are some marginal costs on the freight. It's marginal for now. There has been some marginal increase on ocean freight, but because of the point what you have mentioned. But at the same time, we hope very soon, they will stabilize. And more than the cost increase it is becoming a little bit of challenge with regard to support from the shipping lines with regard to the equipment as they are not available and -- because of the crisis in the Middle East. So we just hope that they will get resolved soon, and we can have our shipments and, let's say, volumes going out, getting shipped out of the country in a much smoother way. So yes, there is a little bit of hiccups on the logistics part, which was also mentioned in the beginning that is there, we do hope that they get resolved soon.

Do you expect any improvement in Q1?

Sorry. We -- as of now, as stated, there is equipment issues from the shipping lines, which definitely to a certain extent, they are impacting our shipments. So they're getting postponed. I mean like sometimes by 2, 3 days or by a week, that's all. It's just a matter of -- so our shipments do get postponed by anywhere between, let's say, 3 to 5 days, which means it is to the next week, and that's what it is happening currently. And equipment also, there are delays in giving those equipment. So that is how it is as of now.

[Operator Instructions] Our next question comes from the line of [indiscernible] Private Limited.

My first question is, want to understand the forward-looking guidance on what type of strategic levers are you prioritizing in FY 2026-'27 expand the company's shrimp and seafood export footprint and to strengthen backward integration in aquaculture and manage the risk from global demand cycles, regulatory transactions and ForEx volatility? It's the first question, I'll ask the second question after this.

It was not really first question, it had many questions on that. Anyway, so the thing is going forward for FY '26-'27, we definitely, as mentioned to the other participants, as far as growing our volumes are concerned, we are definitely betting high on the support of these FTAs and also opening up of new markets. Now both -- our facilities, one after the other are also getting approved for other -- I mean, newer markets like Russia also. So we are definitely looking on multiple fronts, not just the traditional markets, which we depended on for many years. So we are looking at growing volumes in different markets by way of diversification, which has been the process over the past 1 to 2 years, if you see. So that is on the growth of volume.

My second question to Mr. Prasad is what -- I want to understand what type of frameworks are being applied in '26-2027 to ensure accurate cost at optimization, working capital for seasonal aquaculture cycles and maintain compliance with evolving, accounting and export disclosure norms?

Sorry?

Can you repeat once, please?

Yes. I just want to understand, on account level action, any cost discipline, compliance and transparency model been implemented that way financial credibility.

Yes. I mean just a cost point

Sir, just to let you know, sir, participant has left the queue. The line was participant has left the queue, if you still wish to answer you may answer.

Yes, just a just Yes, we are regularly following the IndAS compliance and isotherm same way last year as well as this year also.

Yes. On the cost part, of course, we are definitely ensuring that there is a proper comparisons, which are being done and not restricting ourselves to limited supply source, not just on the raw material, but many other aspects. And apart from that, on the efficiencies are the ones as far as how to grow on volumes and at the same time by trying to keep the cost to the minimal part as far -- now with regard to manpower and also utilization of the existing equipment and capacities which are already in place.

Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for the closing remarks. Thank you, and over to you, team.

Yes. Thank you, one and all, for making it to our investor call of Q4 and FY '26 and we hope -- if you have any further queries and -- for clarifying, you please, you can always reach out on the e-mail address, [email protected]. Thank you very much, and have a nice day.

Thank you so much, sir. Ladies and gentlemen, on behalf of Apex Frozen Foods Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.