Cosmo First Limited ($COSMOFIRST)

Ladies and gentlemen, good day, and welcome to the investor call of Cosmo First Limited to discuss the Q4 FY '26 results. Today, we have with us from the management, Group CEO, Mr. Pankaj Poddar; and Group CFO, Mr. Neeraj Jain, along with Mr. Bushan Malik, Business Head Film Business; and Mr. Saurav Jain, CEO, Zigli and Head Corporate Development. Starting off with the statutory declaration, certain statements of the conference call may be forward-looking. These statements are based on management's current expectations and are subject to uncertainties and changes in circumstances. These statements are not guarantees of future results. [Operator Instructions] Please note that this conference is being recorded. Now may I request Mr. Neeraj Jain to take us through his opening remarks, subsequent to which we can open the floor for the Q&A. Thank you, and over to Mr. Neerajji.

Well, thank you very much. Very good afternoon, ladies and gentlemen, and thank you for joining us on Cosmo March '26 Results Conference Call. We'll begin with the call with a brief remark from the management side, which may be followed by the questions. First, talking about the financial results for the quarter and the year ended March '26. So consolidated sales for the March '26 quarter is INR 1,021 crore, which is higher by 37% from March '25 quarter, primarily due to higher volume by 41%. The gap is due to lower average raw material price on a Y-o-Y basis. The company has done well to manage uncertainty caused by West Asia war and could post EBITDA increased by 53% in quarter 4 to INR 130 crore compared to INR 85 crore in similar quarter last year. The incremental EBITDA is primarily driven by 3 factors: First, higher sales volume by 41%, largely because of the new capacities. Second, higher specialty sales volume. Specialty sales, in fact, is growing for us close to 10% CAGR year-on-year. Third, higher EBITDA by our Specialty Chemicals subsidiary by close to INR 7 crore. There was onetime exceptional item of INR 7.2 crore related to one of the provision made by the company's subsidiary in Netherlands. BOPP margins during quarter 4 was running at INR 20 per kg as against INR 13 per kg in December '25 quarter and INR 20 per kg in March '25 quarter. BOPET margin was running close to INR 18 per kg in quarter 4 versus INR 12 per kg in December '25 quarter and INR 18 per kg March '25 quarter. PAT improvement is moderate due to increased depreciation and interest related to new capacities and onetime impact of the reversal of deferred tax asset of INR 5.3 crore due to reorganization of subsidiary South Korea. Now moving to full year results. For FY '25-'26, company has posted 26% increase in the revenue, mainly backed by a 27% increase in the volume largely related to the new capacity we got commissioned during the financial year. The EBITDA has increased by 32% to INR 479 crores, primarily due to higher volume by 27%, higher specialty film sales and enhanced EBITDA from our Specialty Chemicals business. Moving to outlook for the film business. The company expect double-digit top line growth next year, mainly due to enhanced utilization of BOPP and CPP capacity, which we got added during FY '25-'26. Recently announced reduction in the U.S. tariffs will lead to improved profitability of the U.S. operations from next year onwards. Now we are going to move to new business verticals performance. First, talking about the Specialty Chemicals. The Specialty Chemicals subsidiary has continued to achieve tractions and posted sales of INR 54 crore with 25% EBITDA in quarter 4. For the full year also, the subsidiary has done INR 204 crore of the top line with 25% plus EBITDA. Talking about the rigid packaging, which is under the brand Cosmo Plastech, this vertical has posted more than 70% top line growth in quarter 4 on a year-on-year basis. The business vertical has reached EBIT breakeven already. And now FY '27 focus will be on achieving higher profitability through higher capacity utilization. Moving to Consumer businesses. Cosmo has 2 consumer businesses, first Zigly, which is a pet care venture. And second, Cosmo Consumer, which include window films, plane production film and ceramic coatings. Both the consumer businesses continue to scale up. Zigly, in fact, particularly posted 54% top line growth in quarter 4 FY '26. And the other consumer business, we actually started during the FY '25-'26 only, but it's gaining traction very substantially. The business model is moving for the Zigly towards services and house banks, which is a high-margin business. Moving to corporate. So if you look at the lateral level, the CapEx cycle for the company is largely complete now. Focus will be on saving the strategic CapEx, which we did during last 3 years, which is close to INR 1,200 crore. We have very clear road map to reduce net debt over the next 2 years. In fact, in this direction, the company has reduced net debt by INR 75 crore already during the last 6 months to INR 1,159 crores, which stands 2.4x to EBITDA and 0.7x equity. Our new businesses, whether Specialty Chemicals, Plastic or Cosmo Consumer are scaling very fast and we need to incremental Focus is going to be an intrinsic value growth for each of the business. The Board of Director has recommended a dividend of INR 4 per share for the FY '25-'26, subject to approval of shareholders. I think with this, we'll conclude our opening remarks, and we would like to open the call for the questions, please. Thank you.

[Operator Instructions] The first question is from the line of Harshit Katkar from Robo Capital.

I'm audible?

Yes. Please proceed, sir.

Just wanted to understand that in your opening commentary, you mentioned that the prices of BOPET and BOPP have increased to INR 19 per kg. So can you throw some more light on that? And just wanted to understand the industry outlook, how it is right now? And how do you see it going forward in FY '27?

Industry margins in core BOPP and BOPET can remain tile through the current year as new capacity comes. What we control is mix and cost. Specialty films are 60% of our firms and are growing, which insulates blended margin. We're also the lowest cost producer in India, which gives us downside protection. On the demand side, Indian flexible packaging volumes are growing 8% to 10%, and we are taking incremental share through specialty positioning of FY '30 target for Cosmo ROCE continues to our focus area. Quarterly EBITDA margins might vary to the industry cycles.

Okay. And my second question is regarding Zigly. I can say in the PPT that it is at an annualized run rate of INR 90 crores per annum. And you have mentioned that there are plans to unlock value in FY '27. So what exactly are you planning, can you...

So see, the first step is to have this in a separate subsidiary within this financial year. And then we are exploring whether it's the right time for gaining some -- getting some external capital to fund the future growth of this business.

Okay, sir. And do you have any guidance FY '27 and '28 regarding, your top line and EBITDA?

So top line should grow in double digits in the current year because we still have unutilized capacities in BOPP and CPP also for our new businesses. EBITDA, we cannot talk about industry cycles, so it's always very difficult for us to give us any guidance. But in general, the good thing is that U.S. duties have been taken away, which should be very favorable for us in the times to come. Cosmo Consumer continues to grow at a rapid pace, so is Zigly and Plastic. So these new businesses, volume growth in films, specialty growth in films and U.S. subsidiary, all these will help us getting decent margins in the current year.

The next question is from the line of Jatin Damania from Swan Investments.

Firstly, on the film business, just wanted to understand post the war, definitely, we had seen a sharp increase in the PT and MEG prices. Our spreads have also improved. But how do we see domestic market demand supply, as import has also reduced and going ahead -- I mean probably not going on, but currently, if you compare with the last quarter, what will be the average spreads in month of April, May?

See, Polyester film already has got no antidumping duty from laboring country. The demand continues to grow at 8% to 10% year-on-year. However, as we say this, there is still, I would say, supplies a bit more than demand. And until these balances out, the margins will continue to fluctuate. As I said earlier, it's always very difficult to give any projections around this. But see, year-on-year basis, then the polyester margins are certainly improving.

And just to iterate, if you look at Cosmo's film business, 90% of this is BOPP, CPP and close to 10% in the BOPET.

Okay. And what are the current -- what will be the current spread when you compare to the last quarter average?

Sorry, say again?

What will be the current BOPP spread when you compare with the Q4 average?

So it's ranging in the broadly in a similar range of the quarter 4.

Okay. So moving into specialty now in last year, we commenced a new BOPP line. So going ahead, how shall one look at the specialty flim business or the value-added in business overall contribution to the growth of the company?

When we started this new line, our overall specialty share went down from close to 70% to 53%, 54%. By quarter 4, we are already at 60%, and from 2019 until 2016 -- '26, we have seen a 10% CAGR. So though the base is continuously going up, but we expect growth rate to maintain.

Okay. Good to hear. and secondly, on both the contribution, see, if you look on the FY '25 versus FY '26 numbers, you have seen a substantial increase in the overall employee cost and the other expenses. So I mean, going ahead in '26-'27, I mean, how shall look at the employee cost and the other expenses because in the '25, our total expense -- employee expenses was [ 250 ] but in '26, we are at [ 336 ] almost 30% growth. So what has led to a half increase in the overall employee expenses? And how should one look at the for the '27-'28 numbers are going ahead?

So we should not grow these costs too much from quarter 4 run rate. These costs went up because we were scaling up all of our businesses. Even film business had a close to 40%, 50% volume growth potential that because of the new capacities we put up. So these cost increases are in line with the new business growth. And as a percentage, the cost should ideally come down.

Okay, sir. A4 run rate, we should probably maintain for the FY '27...

Yes. I mean, they'll go through the normal inflation. But otherwise, quarter 4 run rate highly be maintained with the inflation.

Okay. And sir, on this, your value-added price control film that we started, definitely, we have seen a significant improvement from the time that we have operated. How should we look at the contribution of that over a period of time? And what will be the normalized -- I mean the margin that we'll be generating on that business?

Yes, Cosmo Consumer business will have gross margins of anywhere between 35% to 40%.

But on the revenue front, how should we you look at the contribution coming from the films business, some control in the...

See, right now in the first year, we have closed at INR 23 crores, as we know that the business has been capitalized only this year. Right now, we should have a very significant growth because we are getting these products approved in various countries. And we have to take different certifications as we move along different countries. Right now, most of the numbers that we have done is from India. In the coming year, we should start scaling up in America and Europe as well.

And to add to it, I mean, we are already sitting now at the exit run rate of the FY '26. We are sitting at INR 38 crore of the annualized revenue already.

And we have already got an approval from the U.S. and Europe and or probably we are still in the discussion stage on that front?

In the current financial year, we have started dispatching material to both America and Europe. It will take some time to scale up because customers typically start with one pallet and then gradually move towards one entire antenna. But we should see significant growth in the coming year itself in U.S., Europe, both while we continue to scale up India.

The next question is from the line of Aman Sonthalia from AK Securities.

Congratulations to the management for a good set of numbers. And the best part is that the management has reduced the debt, which is a great thing. Sir, my question related to, in the last quarter, sir, there was a great increase in the raw material price and BOPP price. So definitely, we have some inventory in our hand. So the margin has increased by the spread is just INR 20. So any reasons for that?

See, I mean, a large part of our inventory of the finished goods were at the port at the end of the year, so the whatever gain was there from the inventory side because of this increase in the raw material price was largely passed -- got passed with the finished good...

Okay, sir. And sir, how is the demand-supply situation in BOPP business, as recently have seen in the presentation of SRs that they are not setting up the plant as announced by them. So how do you see the future prospects of BOPP business, commodity business, commodity part?

As we already said that our focus remains increasing our specialty growth. Having said that, I think in the next 3 years, there are 7 to 8 lines coming in India, which is, I would say, more or less balanced with the demand growth that is expected. There could be somewhat oversupplied. And I think seeing that SRF may have decided to delay their CapEx or defer their CapEx at this stage. But then company will continue to focus on export opportunities growing the specialty business assets.

And sir, the duty benefit will acute from this quarter, I think, in the U.S. business. So how do you see the growth in the U.S. market for our business?

We should see anywhere between 15% to 20% growth as a minimum in U.S. business. We are already giving multiple businesses in America and customers highly appreciated the way we dealt them during this period. The good news is that we did not lose any customer during that time. And we've already started to find multiple new customers in the last 3, 4 months.

Sir, as far as PPF film as wind film, we are looking for U.S. market and Europe market. But in the U.S. market, I think already Garwari Hitech is the market leader. So whether we will be able to get into that market or it is a European market is more promising?

U.S. market is huge. Garwari has a presence there, but I'm not too sure whether they are also the market leaders there or not, I cannot comment on this. The market itself, plus in U.S. would be exceeding $0.5 billion. And we see a very good opportunity, both in U.S., Europe and not just these 2 continents, but we also see growth in future to come from Africa, Middle East and South America. But given that we have to take certifications in each and every country, therefore, this process normally in the initial couple of years takes time. And once you have all the necessary approvals, we have distributors made where material to retailer, then you start seeing much more growth.

The next question is from the line of Saransh Gupta from Swan Investments.

Am I audible?

Yes.

Congratulations on a good set of numbers. Sir, I just wanted to understand like what our segmental everything what we report in the other segment?

The other segments include the rigid packaging vertical and the Cosmo Consumer part, which include the window from paint protection film.

Okay. Sir, right now, we are [indiscernible] as we mentioned that we are at breakeven EBITDA...

Mr. Gupta, your audio is followed by some disturbance. So can you please use your handset, so that you can be clear.

Is it better now.

Yes, please continue.

Yes. So in our opening remarks, we did mention that Rigid Packaging is growing is at breakeven level. And in our consumer business as well, we have been growing good and there is good potential for us. Still, we have been reporting losses in our other business. So how is that?

See, on a full year basis, we did lose money in Plastech. In quarter 4, we were at breakeven EBITDA breakeven. Our PBT level, we may have had made some small losses. Cosmo Consumers, given that we are spending on the marketing. In fact, even in Cosmo Consumer without marketing costs, we are EBITDA breakeven. But given that we have to initially build our brand, they were marketing costs incurred, and that is the losses that we had. And these businesses have been set up recently. Cosmo Consumer is less than 12 months and Plastech business is less than 18 months old. So they will take some time for them to be profitable at a PBT level, but they should not be very far.

By when can we expect that? And like how much do we have to spend incrementally to get at PBT positive?

See in FY '27, Plastech business should start making high single-digit EBITDA, while in FY '28, we expect it to be high or let's say, mid double-digit EBITDA numbers. Cosmo Consumer will continue to make losses in the current financial year for the simple reason that we will continue to be aggressive in building our brand. I feel that Cosmo Consumer will take at least a couple of years to be profitable. First thing is to reach INR 100 crores benchmark at the earliest.

Sir, I just wanted to understand the bridge like what do we need to do to reach at that level? Like I know that we are focusing towards the exports market, so what lever do we have?

There are multiple things that we are doing. First is we are looking domestic market as a very good opportunity. We have appointed more than 50-plus distributors for both the product lines. We are also investing on building our brand portfolio in the domestic market. Secondly, we are looking at export as a significant opportunity. We have started making distributors in America and Europe. And then we will also start taking distributors in South America. Middle East is right now a bit disturbed there. So we are confident of the 50% CAGR itself in Cosmo consumer as a minimum.

Understood. Sir, that would be good. I so just -- other than that, I wanted to understand like in this quarter, our specialty gross margin has come down from INR 65 per to INR 63. I just wanted to understand like why is that though U.S. have opened for us. So why did -- how what led to decrease in the gross margin.

That's a very marginal drop and the actually per kg margin, you will notice, I mean, it's a function of sales mix as well. As we said so, some of the customers, particularly specialty customers, generally, you are able to take the price reset at the end of the either month or the quarter. So that's why there will be some lag in taking some price increases as well.

Commodity, the part through happens almost on an immediate basis. But specialty is always a lag of 1 to 3 months. So that would be the main reason for this.

So sir, it was fair to assume that our next quarter, we'll be seeing higher gross margins that was at current levels?

More likely other than the mix part that we cannot comment fully, but most likely, they should be enough spend.

Definitely, sir. Understood. And sir, other than...

I'm sorry to interrupt you, Mr. Gupta, there is a queue. We have others waiting for their turn. I would request you to kindly rejoin the queue for follow-up, please. We'll take the next question from the line of Raman Kiwi from Sequent Investments.

Can you hear me?

Yes, sir. Please proceed.

Yes. So one, I just want to understand that now we are done with the CapEx phase, what utilization in the films on the film side. One is that which includes both BOPP as well as BOPET and the other CPP funds? And second one, sir, we have been growing our specialty chem business over at 20% revenue over the past 2, 3 years. But during this year, it has grown around 9% to 10%. So going forward, what was the reason for the slow growth during the year? And going forward, how -- what's your outlook for the for the coming year with respect to specialty chem?

So from a capacity utilization perspective, we have 15% to 20% growth potential from the last year numbers. Coming to chemical, actually, we grew by 20% also this year. However, given that raw material prices were lower and most of the pricing is raw material So therefore, the actual growth in value terms is coming at 10%. However, the volume growth was 20% even in the last financial year. And the margins, you could see have gone up substantially, and EBITDA has gone up from INR 30 crores to INR 53 crores. So we have been able to increase margins very significantly this year.

Understood. Sir, can I just have the volumes trigger for the year with respect to the BOPP and BOPET films the entire film?

Whatever information we could share is already there in our investor presentation.

The next question is from the line of Ayan from Equitas Investments.

Congratulations for the great set of numbers. Actually, just wanted to understand that in your presentation side it is you are saying one of the world's largest coating line is expected in FY '27. You yourself said that [indiscernible] clients are going to come live in the next year or 2, what are we expecting in terms of margins here? Because if specialty, the businesses you are saying that you will focus on specialty then these extra capacity can also focus on specialty lines. So what is the competition -- what are you expecting the competitive scenario to be like in the next 1, 2 years?

We have said this even in the past that for us, the focus remains on the specialty film growth. The industry margins can remain volatile as the new capacity comes in the next 3 years. What we definitely control is mix and cost, and we are already one of the lowest cost producer in the country. We are growing specialty films at 10% CAGR. And though the base is growing, we continue to grow the specialty at the same rate. And as you may see, we have launched multiple range of products in the film. We have got a complete range of leading films now. We've also come out with green graphic films. So there are some very good innovations that Cosmo has done, and this should help us to continue to scale up our specialty business.

Understood. And just on the consumer side. So what is your 5-year view in terms of scaling the business. Of course, there is a lot of competition you have given the numbers in your presentation but how are you incorporating the culture? I would like to understand more on how we are treating it internally in the business?

So see the thesis there is market will not push. India PPS penetration is just 1% to 2% versus China at 15%. So it is a 10-plus on a INR 500 crore Indian TPS market growing at 30% per annum. What we need to see is that our Q4 exit rate is already at INR 38 crores versus full year at INR 23 crore, which basically tells that the trajectory is already steep. And we are entering the detailing channel, multiplying rapidly across Tier 1 and Tier 2 cities. We already have started export SKUs as well, including trying to grow in all the geographies across the globe. So we are easily confident of more than 50% CAGR in this business.

Understood. And profitability, you already mentioned. Just one last question on the debt. So we are seeing an intestinal environment might be, there might be rate hike. Do you know how is our expectation on debt management? And what are we guiding in terms of interest cost?

So debt should continue to come down. We have reduced debt by close to INR 75 crores this year. Given that next year, the CapEx is expected to be less than INR 100 crore, we should be able to decrease our debt even by a higher amount this year. And we should even in the FY '28, the outlook is to reduce our debt even further. So we're already at 2.4x to EBITDA in terms of debt, and we will bring it below 2 in the next 12 to 18 months.

The next question is from the line of Rajkumar Vaidyanathan from RK Invest.

Can you hearm?

Yes.

Sir, just 2 questions. So first one is -- so there is -- this U.S. tariff has been now been asked to refund. So I just wanted to know whether the Cosmos U.S. has filed an application for reef in the refund?

Yes. We have -- yes, the courts have opened the process for the refund. We are right now studying that process and going to file the refund soon. It is expected that this refund process may take anywhere between 6 months to 12 months.

Okay. And do you know what would be the approximate quantum?

See, the refund will be more than INR 60 crores, but then some of it also has to be given back to the customers given that some customers have given us price increases. So we will know the exact situation in the next 6 to 12 months. But yes, there will be a possibility for us.

Okay. But that is something that will flow to the bottom line during the year, right?

It will flow both to the bottom line as well as the cash flow.

Okay. That's great, sir. And second thing, this margins that you mentioned, the BOPET margins and the BOPP margins, so these margins are kind of flat when you look at year-on-year, right? The margin improvement is only there when you compare quarter-on-quarter. Is that correct?

See, these margins are volatile. And as Cosmo, we are never as much concerned about these commodity margins because our focus remains growing a specialty business. It's very difficult to predict these margins. I mean these margins within this last 1 year has gone up 2, 3x and have gone down a couple of times. So it's very difficult to project these margins.

Okay. And in your commentary, you mentioned that this quarter, the PAT growth is moderate due to some of the one-offs. So is it fair to expect the current quarter will be better than the Q4 numbers that you reported, given that the margins are...

Yes.

It should be better than Q4, right?

Total one-off items in quarter 4, which has a PAT impact is close to INR 12 crore, which will obviously we note there from next year.

We'll take the next question from the line of Vipulkumar Shah from Sumangal Investments.

So when are we likely to reach 70% specialty sales where we were in the fourth quarter of 2025?

See, quarter 4 '26, we have reached around 60%. On a full year basis, we are 56%, 57%. If we do the math by 10% CARG, you can get the answers.

No, would you elaborate? I did understand, sir?

Roughly 18 to 24 months.

18 to 24 months. There must be -- there is a raw material price increase. So what will be the impact of raw material price increase in the current quarter?

So the specialty, it's a pass through. Obviously, there's a time lag in specialty because price increases happen either on a monthly or quarterly basis. In case of commodity, the intention of the industry is always to immediately rack to any price changes. So that is the way we operate as an industry.

The next question is from the line of Kevin Gandhi from Capgrow Capital.

I had questions, on the BOPET side. So sir, I just wanted to know what is the current supply/demand situation of BOPET? Are we seeing any new lines being commissioned? And like do you think that the spreads of nbp would actually increase from the current...

Well, our exposure in BOPET is only 10%. And within BOPET also, Cosmo's focus is largely specialty growth. Coming to the industry dynamics, there are not many lines coming up in BOPET because there was an excess supply. Now there's an antidumping duty on neighboring countries for BOPET film imports. So that has also given us some relaxation within the industry. So this demand/supply should balance out in the times to come. It may take anywhere between 12 to 18 months for the demand and supply to equalize assets.

Okay, sir. Got it. And sir, the spread of mortgage would actually increase from the current trajectory from the current levels of 18 for kg...

A trend says that yes, it should increase.

The next question is from the line of Janvi Shah from Share India.

Congratulation on the result. Sorry, I think I might have just missed it out. What was the capacity utilization for all the lines.

It's a 15% to 20% opportunity with us for the current year -- from the last year.

Sir, I'm asking the utilization for the year FY '26.

Full year business, it is 80% to 85%.

The next question is from the line of Gaurav from Capita Farming Consultants.

So I have 2 questions. First question is with respect to our new businesses, right? Like Cosmo Plastech which we achieved a turnover of approximately INR 92 crores, Cosmo Consumer INR 23 crores -- has been consistently investing, I think, from last almost 5 years. So if you can guide us that how much capital we have invested in these 3 businesses independently, if possible, to guide us on that capital invested. And how much capital do we envisage that incremental will be invested in FY '27 and FY '28, right? And what kind of return profile we can expect, right? Like we have specifically mentioned that ROCE in our specialty chemicals is 25%. So what kind of ROE we can expect in these 3 businesses: Plastech, Consumer and going forward?

So I think the voice was not clear, and I'm not able to gather all the questions. Just to answer your first question, see, other than film, from the start of these businesses, we have invested close to INR 300 crores in the new businesses.

Okay. Let me repeat my question. If you allow I asked...

Yes, yes, go ahead.

So in Plastech, consumer and pet care individually, how much capital we have invested till FY '26 and how much incremental capital we are expecting in FY '27 and in FY '28, right? And addition to this, like we have mentioned in Specialty Chemicals, we are earning ROCE of approximately 25%. So what is our expectation in terms of ROCE from these 3 individual business going forward?

Yes, these are still too many questions, sorry about that. But just to try and answer in the 3 businesses that you asked, our capital invested is close to INR 270 crores, 275 crores. We -- I mean, the investment, the further investment in these 2 businesses Three businesses are not expected to be huge. All put together should be in the range of INR 50 crores to INR 75 crores in the next year and a year thereafter, unless until we do any acquisitions in Zigly, specifically -- more specifically. Yes. And what -- I mean, you have to repeat other questions that you had.

Yes, yes. So my second question is with respect to our films business, right? Since we have almost done our CapEx into that in last 3 years and capacity utilization you have given us the guidance on that. So question is that like we have seen our debt level speaking as well. So in FY '27 and FY '28, if you can quantify that what could be the expected debt level that we can see that in reduced on our books, right? And according to that, what is return on equity or return on capital employed that we can expect on an overall business in FY '27, FY '28? That's it.

So see, from a debt perspective, right now, we are operating at 2.4x EBITDA. And this year, we have reduced our debt by INR 75 crores. See, we would like to bring this below 2 within 12 to 18 months from now. And the ROCE right now was impacted because we have incurred loss of CapEx in the last 2, 3 years. Now that CapEx cycle is almost over. Therefore, the ROCE will start going up. Yes, so FY '26 is 11% and next year expected to be around 14% to 15%. And this will continue to go up as we ramp up our capacity utilization and growing the new business.

The next question is from the line of Saransh Gupta from Swan Investments. Mr. Saransh Gupta please proceed. As there is no response, we will move on to the next question from Saket Kapoor from Kapoor Company.

Hope, I'm audible.

Yes.

Sir, you did mention about that taking into account that one-off of INR 12 crores for this quarter that will not be appearing. How is the operating environment is also better than what we exited Q4. That understanding is correct?

See, operating environment is very difficult to comment in film business. The world has become so uncertain volatile that very difficult to project even for tomorrow. So I do not -- unfortunately, I do not have any straight answer to that. But the good thing is that Cosmo continues to grow specialty sales by 10% CAGR year-on-year in spite of a higher base each year, and that is what we continue to make our efforts that we continue to grow our specialty sales.

Right, sir. And sir, you also answered that our utilization levels are close to 80% to 85%. That is for the flexible packaging segment, which category or as an overall, you have given that number.

So in selling business, we have an opportunity to increase our volumes by another 15% to 20%. In other businesses, there is still more capacities available, like in chemical there's a potential to increase our business by close to INR 100-more crores. In plastic, there's a potential to grow by another 30%. And in Cosmo Consumer, we are hardly at 20% capacity utilization still. So in other businesses, the potential to grow is much more.

Okay, sir. Sir, for the Speciality Chemicals, what was our revenue number, I think for the last year?

[ 25 crores ] last year.

Ladies and gentlemen, we will take that as a last question for today. I would now like to hand the conference over to the management for closing comments. Thank you, and over to you.

Sure. So well, company's focus very clearly will be setting the INR 1,200 crores of strategic CapEx than in the last 3 years. Each business vertical will focus on improvement in demand and higher return on capital employed. Further strengthen the financial resilience by reducing the corporate net debt in next 2 years substantially. Also to mention that some of the parts of the intrinsic value of the each business far exceed the current market cap of the company. At the last, we would like to repeat the statutory rate declaration. Certain statements in this con call may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty changes in circumstances. These statements are not guarantees of future results. Many thanks for joining the con call.

Thank you, members of the management. On behalf of Cosmo First Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.