Chaman Lal Setia Exports Ltd. (530307) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q3 and 9 months FY '26 Post Earnings Conference Call of Chaman Lal Setia Exports Limited. Today, on the call from the management team, we have with us Mr. Rajeev Setia, Joint Managing Director. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended December 2025, the growth perspective and vision for the coming year, post which we will open the floor for Q&A. Over to you, sir.

Good afternoon, everyone. I'm Rajeev Setia from Chaman Lal Setia Exports Limited, and I welcome all of you for discussions about our current ended quarter 31st December. You're welcome. Thank you very much.

So, would you like to give any opening remarks about the performance for the quarter?

Yes. Because the preceding quarters were not so good, so you see we -- I took all my sales teams, production teams, we had meetings with them as to why the performance is lower. Actually, what we realized, the sales teams were a little lethargic. So we encouraged them for the business and then Sankesh, he took the lead and he had been traveling all along the world. He met all the customers who had slowed down. And we have been very active thereafter for exhibitions. We participated in Indus Food fair and recently, we were in Dubai for Gulfood. And next around 4 exhibitions we have booked. I mean it's like meeting the customers. I mean of course, mails and communication do have importance, but that is aftersales services. But for selling, you have to meet. You have to convince the customer. And above all, company image also is helping day by day. Thank you.

[Operator Instructions] Sir, until the question queue assembles, can you throw some light on how the pricing has been during this quarter? And what are you seeing in terms of tariff? And how is it affecting or not affecting business now?

Yes. In this particular year, in the beginning, prices were quite low, I mean very attractive and company had been buying in anticipation of the sales. And of course, we were expecting they may go up. The prices you see in the month of October, for example, one variety of basmati is 1509, its price was INR 6,400 at the end of October, which at the end of December is -- INR 6,400 per quintal, we calculate in quintal in our business in domestic market, and in December it was INR 7,300. And this is around 15% increase. And in parboiled category, this rice was selling at INR 5,500 -- sorry, INR 6,000 a quintal in October, which got raised to INR 6,600 by the December end, around 20% increase. 1718 variety as parboiled formation, it was selling at around INR 6,200 -- no, sorry, in raw form, it was selling at around INR 6,200 and got raised to INR 6,700, 10% increase. The same variety, 1718 in steam raw form was selling at INR 6,500 in the month of October and raised to INR 7,600, 17% increase. 1121 elite product was selling at INR 8,200, it got raised to INR 8,500, around 4%, 5% increase. 1401 variety, which is upcoming and it is equated to 1121 is priced for INR 6,600 in the month of October. It's INR 8,000 in the month of -- ending month of December, around 10%. So the prices in all varieties have gone up and company has very timely procured. And of course, our business continued in -- with U.S. because it's a food product. And -- but yes, of course, it was quite a big obstacle, 25% to 50% is kind of a joke, but thank God, the effort of our government, particularly Modiji, it has been brought down to 19% now -- 18% -- 19%, yes. That's all.

We're taking the first question from [indiscernible].

Am I audible, sir?

Yes, you are.

Sir, firstly, congrats on a great set of numbers and the recovery this quarter. Sir, my first question is that, in your presentation, it was mentioned that the company has taken 10%, 15% hike across all basmati categories. So was this hike taken in January or like -- because the export realization for Q3 did not see an uptick from Q2 FY '26 levels. So if you could throw some light on when was this hike taken?

You see, the prices in the beginning of the season were quite low. Even a few procurements were in the month of September when the paddy and rice started coming. Procurement was in that period, but the sales were in this quarter, means Jan -- no, sorry, December had -- December, November -- October, from 1st October this session. So in September, we were buying, which reflected the sales part of the final product was in the month of October, November, and it was good. Procurement price was low. Selling price was good. So we made good profit.

Just a small follow-up, sir. I was inquiring about your export sales price. And it's mentioned in the presentation that you've taken a 10%, 15% hike in your export sales realization. So -- but your realization for Q3 did not seem to show an uptick. So my question was is this 10%, 15% hike that you've taken, will that start reflecting from Q4?

No, no, no. Q3 -- you see, our top 5 countries, sales have gone up from 15,493 -- around 15,500 MH to 34,500-something. It's -- the sales of top 5 -- 1, 2, 3 -- top 6 countries we have taken. The sales in USD has gone -- percentage -- just get it collected. I think it is 55% high, but I have to check it -- recheck it. Quantity-wise, 15,493 metric tonnes has gone to 34,578 tonnes, top 6 countries, that is more than 100%, like 3,000, very high.

It's okay, sir. You're giving absolute volume, that's good enough, sir.

Yes. Volume has gone up.

Again -- but sir, I was inquiring about the sales realization, not the sales volume. I get that, sir, Q3 has seen a very sequential jump in sales volume, but the realization did not see an improvement. So going forward, from Q2, will we see a jump in realization as well?

Of course, yes, realizations have gone up. Realization prices have gone up. That's why it's a profitability. Of course, mainly, the beauty of our business is to increase the sales to increase the volumes. If they increase automatically, the profitability will come. And if it is at better prices, it's [indiscernible].

Okay. Sir, I'll check the numbers, I'm getting something wrong. And sir, a follow-up question is that how are the procurement prices compared to last year? The paddy procurement prices compared to last year, how -- are they up or down?

They were more or less same. Last year and this year, prices -- the paddy prices in the beginning of last year were relatively low from the preceding year, but they came down thereafter. And then, after that, they came down further. There were 2 falls in the preceding years. So that also helped it. The stock was there at the end this year, they were high because the crop size is 15% to 20% less. That is the major reason for rise of price. And secondly, there is another reason, Pakistan has limited crop. And Afghanistan has stopped business with Pakistan and we are getting opportunities to sell to this part of the world. Our Dubai customer only selling over there. So many things have happened. I mean it cannot be determined in figures only.

We take the next question from [indiscernible]

So sir, I have a couple of questions. One, how are we placed as far as the inventory is concerned? Because I just heard you say that prices were at very low levels in October but those prices seemed to have recovered by the end of December. So that's one. Second is, how has the current quarter panned out so far? So January and February till date, so if you can help answer these questions?

You see, like preceding quarter, they are going perfectly so far.

Okay. And how about the inventory levels?

Inventory levels are -- according to demand, we are procuring. We are not taking any risk. The volatility in the product is such sometime, we have to be very careful. One side sell, one side buy. And if the price you feel is extremely low, then we go for the buy.

We'll take the next question from [indiscernible]

So congratulations for the great set of numbers. Anyway, so my first question was regarding rupee depreciation. I remember last year, you said our company is like 100% we don't hedge. So how much has that been able to help us in our bottom line? And second one would be this -- I know our company doesn't do trade with Iran, but last -- this U.S. had sanctions on Iran, right? So I mean, did it affected us in any way?

Your first question is very good. Repeat -- can you repeat the second?

The first was regarding the currency depreciation, right? I mean...

Yes, yes. I see. Actually, we have not policy of hedging. The reason being -- I have historically recorded that 8 out of 10 times rupee weakens. Just 2 times, 10 out of 2 (sic) [ 2 out of 10 ], the rupee appreciates. So to get that kind of benefit, it's better to keep open. Our company has not hedged even -- I think 1 million I had hedged and I immediately sold without loss and profit. Total open. And for calculating the price, we factor at least INR 1.5 or INR 2 less. For example, today, it is INR 90.70, I think, today. And if I have to sell, I will not use INR 90, I will use INR 89.50, INR 89.75 for the purpose of curating my prices. So we hedge our sales, not by dollars. So it is giving benefit -- a huge benefit we got out of it in the preceding year.

If you can tell about that Iran thing? I mean we don't do any business, but...

Iran, we have stopped the business for years altogether. We did 2 shipments this year with 100% advance. And the irony is the first tank container, they were, with bomb blast, lost. We got our money in advance. And the buyer said I will get my money from the insurance. He said, if you want any kind of support for papers, we'll do that. So another shipment we made, we got money from the same buyer. He got it, but thereafter was war, that kind of a civil war happening. So it doesn't make sense at all to do business with these kind of countries. We do -- whenever some Dubai company comes in between, he makes us the payment in advance, we ship. We have no problem shipping when we have 100% money. But we don't do -- principally, we absolutely don't deal with Iran. And those who are dealing, they have huge amounts outstanding in that country. I'll get pictures, and I'll share with Mr. Vinay. I'll get.

Another follow-up question. I remember reading your investor presentation, you mentioned like since now tariff in India is 18%, it gives us an advantage over countries like Pakistan to tap U.S. markets. And I know our company -- it's very well diversified across 90 countries, but the emphasis on U.S. market has been a bit less. So do we plan to increase it going forward?

No, which market we...

American market after the new tariff policy, it will give us an advantage, right, over Pakistan.

Look, we have multiple customers in U.S. Export is regular. Yes, the small customers, those who are buying one container in a quarter, they did not insist with them because of the 50% tariff. But all the bigger customers kept on buying. Of course, their sales come down. Obviously, it's natural, 50% increase in price suddenly, it's not possible for any company, for any business either. So it has come down 19%. So it's open market again.

And last one, maybe this quarter, our employee cost was very less, I guess. I mean are we doing some automation or what's -- I think from INR 7 crores last year to just around INR 2 crores, INR 3 crores, what's the reason behind?

I will look into it. I have not analyzed.

We'll take the next question from chat. This question is asked by Ashish Sharma. When do you see the improved realization in export pricing play out? And you think the major effect of that play out fully in Q4?

Repeat your question.

He's asking, when do you see the improved realization in export pricing play out? And you think the major effect of that play out fully in Q4?

You see, the international prices, it's the time of [indiscernible]. In seconds, the customer knows what the price is going on in India. So that way, you see, we have no control on the prices. It's the market going up and down, up and down, down, up. Somewhere our wisdom plays the role. We know this is the right time to buy and this is the right time to sell. And yes, the separate market, in some places, we command our prices. In many country, we command our prices because of our quality and consistent good-quality supply. Customers are happy. We earn reasonably from them, value for money they get, quality they get, they sell at good prices, they are with us. Yes, very big orders, wholesalers, that is a different way of business. We avoid that kind of business. So we have good customer taking large quantities, small quantities, low quantities, overall, the supply system plays.

Another question is, how will you -- how will reduction in U.S. tariffs benefit you? How much of your sales come from U.S. geography?

It has just begun. Let's see. What happens next quarter, I don't know. It's just beginning. People have stock in their warehouses, bought at the higher prices also. They will have to reduce the prices or they will try to earn their cost at least. After that, they will begin. I had talked with US day before. They said we have paid high. Now we have to sell high. And I tell them, prior to this tariff, you had raised the prices already anticipating that. They were laughing, that whatever we have earned, that is our earning, we'll try to get. But eventually, the business will begin.

There's another question is, since you don't sell to Iran on credit, so I believe you are not under risk -- under due risk of receivable hit like some other players. Which are your major sales geographies?

Iran, we don't sell. The rest of the world is open for us, wherever the payment system, everything is there. So answer is clear. We are selling in all parts, wherever the -- if the country is totally dead, who will sell. Or somebody gives us the money and tells us to put the rice in the -- wherever -- throw it, we'll do that. I mean it's a very simple business. We get money, wherever he says, we will send. We are concerned with the money first.

Sir, we'll take the next question from [indiscernible].

So sir, I wanted to understand that you had some new capacities which came in last year. So how much of sales came from your new capacities that were added?

Yes, all new plants are working now in Mundra as well as in Karnal, whatever new fitting and new plant added. They are working.

But would we have an idea as to what was the incremental sales that we got from the newly commissioned....

Sales -- quantitative sales is quite good this quarter. So obviously, the plants are helping.

And do we expect Q4 performance to be on similar lines like Q3 or even better?

Let's hope for the better. There is no adversity going on, which can hit the prices or which can hit our sales. There's no adversity.

We will take the next question from Madhur Rathi.

Sir, if I look at our gross margin, sir, although gross margins have declined, but our overall margins have improved, I think, because of foreign exchange rates. So in next quarter, can we expect even a further margin improvement from these INR 10 per kg level to higher levels?

As the foreign exchange is concerned, it's -- we cannot comment more on that. Maybe it goes weaker more or strengthens. That is all with the RBI, government, international. We have nothing to do with that. Yes, at the point of selling we see today, let's assume rate is INR 90, we will not apply INR 90 for our calculation. We will apply INR 89 for our calculation. That we always factor for our sales.

Right. Sir, how much of our revenue comes from Maharani?

Maharani revenue is around 8%, 9%.

8%, 9%. Okay. And sir, do we have any plans to move our shareholding to a corporate structure so that we can do buybacks?

Buyback, you see, is beneficial only for the shareholder, not for the company promoter. It's still equity. For us, the tax remains the same. And for investors outside, it's very good, 12.5%, I think, for long term and 20% for short term.

Sir, recently in this budget, government has reduced taxation to 22% on share buyback for promoters if promoter shareholding is in corporate form. Otherwise, if it is in individual form, then 30% taxation is there -- promoter versus 36% tax in -- for dividend.

Yes. I know that there is no holding in the corporate form. It's with individual promoter. So I know it's quite heavy taxable. Some kind of concession would have come, it would have encouraged for more and more buying or higher dividend, but dividend will be continued.

Sir, and any plans to increase our own branded sale?

Yes, that is there. We are -- look, we are -- internationally, we are putting in multiple countries. Our registration also has gone in around 20 countries. I'm applying for world registration for Maharani because in 1 or 2 places, I have faced a problem. Some people -- some country, Maharani, some other exporters had registered. So I'm protecting my brand and it's our endeavor. We are able or we are not able to do it, but we are -- it's our endeavor. We work hard. Maharani is already in multiple countries now. In India, yes, online sales are gradually growing. Let the name separate and then I'll go for distributions. Distributors have [indiscernible] point.

India Gate and Daawat, sir, they are pushing in the retail market in a big way. But Maharani [Foreign Language]. Is it more profitable to export basmati or it is more profitable to sell it in India under our own brand?

You see, it depends. In exports, some part, we are getting amazing prices in some part. I'll not share the areas or region because I don't want a competitor to enter against me. But India also, you get good money, sometimes breakeven kind. I mean it's more competition in India. Internationally, competition is relatively less. Here, it is too much, but that doesn't mean our brand should not be here. If we -- after all, KRBL, you see, is selling at a high price. It's -- the brand is giving. Brand is giving money. They have put the good quality, excellent quality apart, and they have worked hard. They did so big marketing and they're getting good money. If they can get, why can't we get? We can also get if we work hard and do it in the domestic market. We have equal good rice. No doubt.

Sir, antidiabetic rice, how much are we selling? And sir, once you were mentioning that in Thailand, they make talcum powder from rice. So are there any plans to get into some new vertical rice-related only...

Yes, yes. We have already -- sorry, I forgot to tell, it was very important and thanks to you, you raised this question. We have come out with -- we are coming with a brand, Teasan, T-E-A-S-A-N. That is tea made from rice, which has ingredients like cardamom. 3 flavors we have made already. If you can see, this is rice tea. This is fennel, cardamom and cinnamon. 3 ingredients we have added, not a flavor. Actually, they have been added with the rice. And this tea has been tested by government department. Consumer -- I don't exactly remember. I have reports also not handy. So this tea is quite good in taste, and it's created by Mr. Vijay Setia and his team of scientists, and one food technician girl from U.S.A. -- no, Singapore. So they have created. The advantage is we are not medically claiming as yet, it removes, for example, cholesterol. We are not claiming as yet. But cholesterol you know, if the medicine reduced 80% in the patient, it reduces 70%, 71% is tea. Tea we can't write because there is no tea ingredient in it. So we are going to change the name Teasan, T-E-A-S-A-N. Lab reports are okay. Reports from the labs are okay. Now the human tests are going on. Thereafter, we will introduce this for international marketing as well as India. And it corrects the liver also, colon also, we cannot claim officially so far. Once we have validation from the human test and complete report -- but we have already made this thing, and it's successful with the government test -- government lab tests, not personal.

So we will sell in the domestic market under our own brand or...

Online, I think -- already started online. I think online we have already started.

Sir, can we order from Amazon?

We have to change the name because we are not supposed to write tea. After changing, it will start. We started online, then we were told it is not right, you can't write the word tea. So rice tea -- it will be -- Teasan is approved and we'll start with a new name and sell it online, Indian market, international everywhere, big way. [indiscernible].

Right. Sir, so what percentage of our revenue currently comes from the U.S. market? And sir, it seems that U.S. imports close to 1.6 billion of rice every year. So how much would be addressable market for the kind that Indian -- the basmati and other that are produced in India?

Our company has good sales in U.S.A. And of course, LT has the highest sale. They have their subsidiary over there -- or company. We are doing so many containers, 10,000 to 30,000 tonnes to purchase this similar [indiscernible].

Sir, we'll take the next question from Navneet Bhaiya.

Rajeevji, congrats for a good quarter. Sir, you had mentioned in the last quarter that you were quite confident of doing about INR 1,500 crores of top line this year. Do you stay with that? Or...

Look, we worked very hard, but we are almost equal to the 9 months of preceding year, I think.

So the tailwinds continue for you? Or how do you see it? And I'm sure you're continuing to work hard even now.

We are expecting this quarter to be good. It's going very well, like preceding quarter.

We'll take the next question from [indiscernible].

Congratulations for the best quarterly sales since a very long time, or the best quarterly sales. I just wanted to know, at what optimum capacities were the Gandhidham and the Karnal units were in this quarter?

Fully working, both the units -- I mean the main is Karnal is the entire operation. Every single day, 25, 30 containers working in full swing.

Okay, sir. And do you see any CapEx in coming years at any of these locations?

Yes, there is a possibility. These new packing machines, the orthodox system is out. Auto-filling, auto-sealing, auto-everything, we are looking for that kind of machines for packing. And if the sales goes up, more new packing units will come. And also a few changes we may have to do in the production unit for the better capacities and quality. That, we -- all the time, we keep on looking.

Any number you could put on in value terms?

Not very high. INR 5 crores to INR 7 crores -- INR 5 crores, INR 10 crores, not huge.

Got it, sir. My next question is on borrowings, external debt, which our company uses. As per our balance sheet, we have short-term debts, which is primarily provided by banks and long-term financing, which is primarily directors' unsecured loans to the company. So short-term debts, the bank borrowing was a seasonal use of capital.

It's always seasonal. Vinay, can I share my borrowing or it is some inside information, you see?

No, you can share it, sir.

I'll share it. You will be happy to know the company limit with HDFC Bank is INR 300 crores and my availment as on the date is INR 2 crores. The company has huge stocks, no problem at all. And with Punjab National Bank, we have around INR 50 crore availment because they have lower interest, 6.60%, and HDFC has 7.20%. So because of the lower interest, we are availing from PNB. HDFC, we have stopped. But maybe if the prices, let us assume, gradually -- after the hike, they are gradually coming down. If they came down, we have -- I will use most of the money from HDFC Bank and procure the stock more.

Got it, sir. On the long-term borrowing side, we had a consistent INR 50 crores to INR 60 crores of directors' unsecured loan since a very long time. But in September, that immediately went to 0. So is it a particular reason or it's a strategic move for directors to remove the unsecured loan from the company?

Because in the summer also, we keep on buying. It's -- I mean, season-wise, we have to procure, but all along -- I mean the peak level of my procurement was INR 550 crores, stock I'm talking. And my insurance is also around INR 550 crores. We have to match that always. But my sales are not INR 500 crores, they reach around INR 1,500 crores, INR 1,400 crores or may go up also in the future. So this means a rotation, it has to be there. If I reduce the bank amount, then I have to use my funds for buying.

No, sir, that's the point I'm raising. During seasonal procurement, we used to use bank funds to buy our inventory and then repay the short-term loans, which are the bank loans, and the directors' loans were consistent throughout many years.

Consistent because the business is whole year. Business is whole year. This is very supportive money and we trust our company. That's why [indiscernible]. We are not scared that the money is unsafe in the company. Otherwise, there are so many things we can earn much more if we go out. These wealth companies, come we'll give you 25%, 20% -- 20% guarantee, though not in writing, but verbally they -- some amount sometimes we put otherwise, we're happy with our company. You see, with this money, we make payment in 3, 4 days and 2% discount, 2.5% discount on the rice we get. And in the paddy, we pay on the due date. We don't have to pay penalty interest of 15%, 14% to the mandi RPF. So this helps. If you remove all capital, then I think it's [indiscernible]. 24% we get on rice.

Sir, we'll take the follow-up question from Madhur Rathi.

Sir, I'm reading your credit report and it mentioned that the other 2 brands, Mithas and Begum contribute to around 10% to 15% of our revenue and Maharani contributes to 8% to 9%. So how is the pricing for these products versus Maharani?

Those are low-priced products. So that sells. In the international market, some customers buy those brands, Mithas and all that. They're our brand but not advertised, not flagship. Flagship is Maharani.

Sir, so these products' margin would be lower than Maharani.

Depends again. Usually, sometimes you get better money in that also. It's all subjective things, lot-wise.

Sir, so if I were to look only at our Maharani brand, sir, can you just help us understand what percentage of our -- that 8% to 9% would come from larger packs and what percentage would come from smaller packs?

In few countries, I'm selling 1 kg and 5 kg brand box, complete, excellent and very high price. Percentage very high. Good. I don't want to share the name of such country where it is.

No, sir, I'm not asking about the geographies where we sell. I'm just trying to understand, on a whole as a business, for Maharani, how much is coming from the smaller packs, I think, which would be better margin for us as well as our customers versus the larger one?

Around 50% of my total Maharani sales.

Sir, we'll take a few questions from chat. This question is asked by Vignesh Iyer. He's asking, wanted to know how will FY '27 pan out in terms of revenue and EBITDA guidance?

'27? Look, we are working hard to grow the company. Performance, sales, everywhere, we are working very hard. My staff is very sincere. I'm getting good employees also, those who have increased the sale, they have their effort, hard work, aftersales service, everything. To promote the sales, we are working so hard. Capacities don't help, your sales help. If you have good sales, good price and continuity of the business, business grows gradually. We move stepwise. We move stepwise, not with a closed eye. Selling is not difficult. If you want to sell at the breakeven or losing the money, in my industry, many people have done so. In the beginning, they sold huge 30,000 tonne, 40,000 tonne, 20,000 tonne rice just altogether at the price of 60 -- for example, the price in -- one second, one second, just give me a minute. For example, this 1718 at price of INR 61 in October, INR 61, and they sold at INR 62, INR 63. How much? 20,000, 30,000. And thereafter, the prices went -- in the month of November, they were INR 63. In December, they were INR 67. So if you are -- how come they had not procured this quantity. They had to procure later and losing money. We know they have lost money. I mean we are in an industry where the people are taking huge risks. And I will not name -- I was told they wanted to come in the public issue, that's why they are selling.

Sir, there is another question in chat from Vivek Singh. Sir, first, congrats for this quarter. Sir, you are a promoter of the company. Just from the investor perspective, what are the key metrics to watch in this business?

Your voice is too low. Can you speak loud? [Technical Difficulty]

Sir, his question is, what are the key metrics to watch in this business and how to forecast the demand of the rice from retail investors perspective and the key learning of this quarter along with challenges?

As far as learning is concerned, we are learning since beginning. And we always feel there is nothing end to learn. We have to learn business. We have to, all the time, keep working hard on our efforts. So you see, as far as domestic market is concerned, I don't want to burn money. I want -- I should spend and I should get the rewards simultaneously, which is sometimes not possible. But if I get good distributors all around India and start giving them, getting their support, if they start the online sales in their area, these things are in my mind. And maybe in another 6 months, 1 year, 2 years, whenever is the conducive stage, I'll go for all this. Because after all, in these geopolitical problems, we have to have support of our country also, which we don't have right now. So that is our endeavor, we have to do it. Our performance will increase, profitability will be good, international sales. Suddenly, you see, you feel this country is in problem. Now Israel and Iran war were happening, we have large business interest. So I mean, we have to have a good portion of sales in India, which I'm planning, not [indiscernible] suddenly gone. But yes, we are in multiple countries. It doesn't affect us much, but it does matter.

His follow-up question is, if domestic market of India does not command a premium like U.S.A., then why India Gate are so much aggressive on India business?

[Foreign Language] [Technical Difficulty].

Sir, his question is, if domestic market of India...

Yes, yes. Now you are very good -- audible.

So if the domestic market of India does not command a premium like U.S.A, then why India Gate or other players are very aggressive on India branded business?

I said it earlier also, they have built up their brand and brand equity is there. That's why are being good. And if they can do, why can't we do that? We have good rice, paddy comes from the same area, rice is manufactured like that. We have the same rice. So what really we need is to market in India. And it's very important it supports the international market. I said it just now, due to these wars and this kind of situation going on world around. You never know -- I want this country, [Foreign Language] Venezuela. I mean these things kind of happening in the world. So we cannot fully rely on the international market. We have to have support of Indian market. That's what I'm myself feeling, and we have to do it. And I'm looking for conducive time when the prices are stable or I get good distributors. Even if I have to increase the capacity, I'll do that, no problem.

Sir, there is a question from Anurag Jain. What is the import duty on basmati coming from Pakistan to U.S.A.? How does it compare with the now 19% duty on basmati going from India?

No, it's the same, I think. Pakistan and India, we are common now.

There's a question again in chat from Palash Agarwal. Do you think the company will be able to meet your earlier guidance of INR 1,500 crores revenue for FY '26? And do you think the Q3 margins are sustainable in Q4 as well?

Because the performance is almost the same, which happened in the preceding quarter, so I'm confident the last quarter will be definitely good. And let's hope we, once again, reach the INR 1,500 crores.

And margins, sir, do you think it will be sustainable in Q4?

They should, if the performance is going same way, the profitability is the same way. So hopefully, they will be good.

Sir, since that was the last question for the day, there are no further questions, would you like to give any closing comments before we end the call?

Closing comments are, my company is working very, very sincerely -- hardworking, we are doing. And if we assume, it is for us first, but it simultaneously helps our investors, both of us. So I assure that we'll work hard. We'll try to promote our business. We'll go for new avenues and particularly the domestic market also, which I said, and be investor-friendly always. Thank you very much.

Thank you, sir, and thank you to all the participants for joining on the call. Thank you to the management team for giving us their valuable time. This brings us to the end of today's conference call. Thank you.