Paradeep Phosphates Limited (PARADEEP.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Paradeep Phosphates Limited Q2 and H1 FY '26 Earnings Conference Call hosted by Antique Stock Broking. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stockbroking. Thank you, and over to you, sir.

Thanks, [ Yesu ]. Hello, everyone. I'm pleased to host today's earnings call of Paradeep Phosphates. We have leadership team represented by Mr. Rajeev Nambiar, COO; Mr. Harshdeep Singh, Chief Commercial Officer; Mr. Bijoy Kumar Biswal, CFO; Mr. Alok Saxena, Head, Corporate Finance and IR; Mr. Susnato Lahiri, Join GM Strategy, IR ESG on the call. Without any delay, I would like to hand over the call to Mr. Nambiar for opening comments, post which we will open the floor for Q&A. Thank you, and over to you, sir.

Thank you, Manish. Am I audible, properly?

Yes, sir. You are audible.

Good afternoon, everyone, and welcome to Paradeep Phosphates earnings call for the second quarter and first half of FY '26. I appreciate your time and interest in our company. I trust you have seen our earnings presentations and press release, which have been circulated and are now available on website and stock exchange. Giving an overview of the quarter as well as the H1, Q2 and H1 '26 have been strong and defining periods for PPL, underscoring the strength of our operations, the execution of strategy and our readiness for the next phase of growth. This quarter, we not only delivered a robust financial and operating performance but also took a transformational step towards the completion of the merger of Mangalore Chemicals & Fertilizers with ourselves. This integration positions PPL as a truly pan-India fertilizer company, broadening our southern market presence, strengthening customer access and the unlocking synergies in procurement, logistics and product mix. Coming to the performance highlights. Our Q2 operational performance was robust. Production rose 19 percentage year-on-year to 10.06 lakh tonnes and the sales volume grew by 30% to 13.55 lakh tonnes. Growth was broad-based, led by value-added NPK grades, notably N-20 volumes grew by 52% and TSP 339% year-on-year. For the first half, production and sales reached 1.86 million and 2.3 million tonnes, respectively, up by 17% and 28%. Financially, the company continued to demonstrate scale leverage and margin discipline. Revenue from operations in Q2 rose 49% year-on-year to INR 6,872 crores. EBITDA grew by 32% to INR 698 crores with a margin of 10.1 percentage and PAT improved by 34% to INR 342 crores. For the first half, revenue grew by 46% EBITDA by 69% and PAT by 135 percentage Y-o-Y, a reflection of both volume growth and mix enrichment. We also sustained a strong financial foundation. Our cash conversion cycle improved by 30 days, coming to 58 days now and net debt to equity stood at 0.66x, maintaining ample balance sheet flexibility to fund future growth. Strategic progress. A key highlight in this quarter was the announcement of our INR 3,600 crore investment program, which marks the next chapter of PPS growth. This program will add 1 million tonnes of new granulation capacity at our Paradeep site, expanded backward integration of phosphoric acid by 0.5 million tonnes and sulfuric acid by 1.5 million tonnes across Paradeep as well as Mangalore site, which will make our -- all the 3 sites to fully backward integrated. These projects will elevate PPL total capacity to almost 5 million tonnes over the next 2.5 years, positioning us as India's largest fully integrated private sector fertilizer manufacturer. This strategic investment exemplifies our focus on self-reliance, cost competitiveness and long-term value creation, funded through a disciplined balance of internal accruals and long-term debt. Coming to brand and market leadership. On the brand front, we are privileged to welcome our ace cricketer Rahul Dravid as a PPL's brand ambassador. Rahul's values, trust, consistency and integrity mirrors PPL's ethos and our relationship with the Indian farming community. This association will amplify our efforts in promoting innovative and sustainable farming solutions under our Jai Kisaan Navratna and Jai Kisaan Mangala brands. Through our expanded distribution and digital outreach, we now engage with more than 10 million farmers across 18 states, supported by 75,000 retailers, 6,000 dealers and a strong on-ground advisory network. Coming to the outlook. Looking ahead, we remain optimistic about fertilizer demand, supported by a favorable Rabi season, continued government trust on soil health and rising shift towards balanced and specialized nutrient application. Our strategic priorities are pretty clear, scale efficiency, deepen backward integration, accelerate product innovation and embed sustainability at the core of our operations. We continue to advance our ESG journey with our fourth ESG report now published and externally assured by TUV India. Our S&P Corporate Sustainability Assessment score continues to place PPL among the top 2% of chemical companies globally, reaffirming our leadership in sustainable business practices. In summary, Q2 and H1 FY '26 demonstrates PPL's operational resilience, financial strength and the strategic momentum we are building on. With the MCFL integration complete, capacity expansion underway, a strong market fundamentals and building a larger, stronger and more future-ready PPL. It is positioned to create enduring value for our shareholders and for India's farming community. Thanking everyone for their continued support. I now open the floor for questions.

[Operator Instructions] The first questions is from the line of Prashant Biyani from Elara Capital.

Sir, it is heartening to see what our market cap was 3 years back when we listed. We are investing almost similar amount today in capacity expansion. Surely, we have come a long way in a short period of time. My first question is if you can share the year-wise split of CapEx of INR 3,600 crores, that would be helpful. Am I audible?

Yes, yes. So this investment will be made over a period of 2.5 years. So every year, we'll have around this INR 1,500 crores of investment. So in 2.5 years, this INR 3,600 crores will be invested. So by the end of financial year '28, the full capacity, whatever we are envisaging that increase that will be commercially starting production.

Sir, for remaining period of '26, how much should we take as investment towards these CapEx?

No, it will be around -- to the tune of around INR 500 crores.

Okay. And '27, INR 1,500 crores and then another INR 1,500 crores in '28.

Yes, yes. Perfect.

Okay. And sir, secondly, can you also share PPL's stand-alone performance, how it was in Q2? That will be great.

No, generally, the post-merger activities, which is the appointed date 1/4/24, we are supposed to consolidate the account. So the account has been consolidated as per the Indian accounting standard mandated and this results reflect the consolidated account with MCFL [indiscernible] MCFL. So it is -- we have not prepared or we are not supposed to prepare on a stand-alone basis.

Next question is from the line of Animesh Valechani from [ Namoh Trader ]. As there is no response from the current questioner, we'll move on to the next question. [Operator Instructions] Next question is from the line of Riju from Antique Stockbroking.

Congrats on a great set of numbers. Sir, my question is regarding the capacity addition that we have announced. So at the Paradeep site, we have stated that we will be -- we'll be doing additional 0.25 MMTP of phos acid. So this is including what we have announced earlier or exclude of that CapEx?

Yes, this will be exclude of the last CapEx actually. Currently, we are at 0.5 million and we are increasing it by 0.2 million, which is expected to come on stream next year. And this is going to be beyond that.

So total at the Paradeep site will be roughly around 0.95 million or maybe 1 million metric tonne capacity for the...

Yes, absolutely, yes. Right, yes.

Understood. And second, in terms of we have stated that the capacity will take roughly around 2.5 years. And the -- yes, so 2.5 years it will take. But in the PPT, we have mentioned that the flow into the numbers should come from FY '28. But as per the calculation, I think the numbers should come from the H1 of -- H2 of FY '28. Is that correct assumption?

Yes.

And in terms of the other...

Yes, go ahead, go ahead.

Yes. And in terms of the other aspects, so if I look at your current granulation capacity, so the volume growth will not be there maybe in FY '27. So can we expect the granulation capacity might become -- might come a bit early or maybe the CapEx that we have announced for roughly INR 3,500 crores -- INR 3,600 crores. So that will be in a safe manner or maybe it will come like at a one go. So if you could clarify that thing.

The capacity addition of 1 million will come at one go. And to answer your earlier question that there won't be any capacity addition, but there will be incremental capacity addition by way of brownfield expansion, which is ongoing in the granulation trains at all the 3 locations. So we expect at least 0.2 million to come for the next year.

Yes. So that you have indicated earlier, right? So 2 lakh tonnes kind of capacity by debottlenecking you -- like this is online from next year onwards, right? And sir, in terms of the subsidy receivables, if you could indicate the number for this quarter?

The subsidy receivable as on 30th September is around INR 3,275 crores.

And how much is due out of this?

No, out of this -- around INR 1,000 crores is due and INR 2,200 crores on account of the pause, which is happened in the subsequent months.

Okay. Understood. And sir, if you could -- bookkeeping question, if you could answer that. How much is the closing inventory we have at the dealer or retailer level and out of which how much will be the manufacturing volume for DAP and NPK?

Yes. So in terms of the trade stocks that we're currently having, we are having approximately 2 months inventory, approximately around 8 lakh metric tons, including the urea and other products. And we've got a big consumption season in November and December. And this will go up for farmer consumption in the immediate next 2 months.

Understood. And sir, in terms of DAP availability in the domestic market, so how is that for the Rabi season?

So I think -- I mean, approximately, the country stocks are around 2 million tonnes. So it's a fairly kind of good availability, which is there as a combination of DAP, TSP and NPK, the availability is pretty decent this year.

So 2 MTPA stock we have only for DAP, is that correct?

No, no, this is not our stock. I'm talking of the industry stock, what you're talking.

Yes, yes, yes. For the industry, DAP is 2 million metric tonnes, right? Sir, last year, how much was the number of...

Last year was a lower availability compared to this number. Approximately, I think maybe around 12 or 13 lakh metric tonnes, approximately.

Next question is from the line of Gagan Thareja from Groww Mutual Fund.

I hope I'm audible.

Yes, please. Go ahead.

So the first question is on the funding of this CapEx of INR 3,600 crores. How much incremental debt will you require for this? And what could then the peak leverage be?

The project, this INR 3,600 crores will be on 30% equity and 70% debt. So we have the headroom to have that.

Okay. And the granulation capacity of 3.9 million tonnes currently, what is the utilization of that?

Yes, 100% utilized.

Okay. So you are 100% utilized and next year, you might have an incremental 0.2 million tonnes from brownfield. By when that will -- by when will that be commissioned?

Yes, Gagan, for the purpose of modeling and all, FY '26, we are almost close to 10% utilized in terms of capacity utilization. Next year, we will have some sort of a backward integration coming through in terms of phosphoric acid of 200,000 tonnes and sulfuric acid of 100,000 tonnes at the Mangalore site. So this should incrementally give us about close to INR 350 crores of EBITDA in FY '27. And FY '28 is when the entire CapEx plan of INR 3,600 crores will get fructified in terms of the granulation and concomitant backward integration.

But if I look at -- sorry, if I look at the commissioning time period, it is 2.5 years out, which means it will get commissioned in FY '29 and not FY '28. Am I wrong there?

No, we are actually contemplating to kind of start the operations by the end of FY '28. So we might kind of get to realize some cash flows in FY '20 itself. But you're correct, the fully realizable cash flows will come through in FY '29.

So in FY '28, then from a volume perspective, how would you address the volume growth requirements if there are any?

Yes. So the way we look at it is, see, our kind of target number, what we are gearing up for is around 5 million tonnes. And we will -- we are looking at trading opportunities to augment the volume. So that's how we look at the overall basket. But the whole kind of distribution network and the market network that we have put up, so we have now geared up for a 5 million metric tonnes plan, and that's in line with our growth plan for the capacity expansion.

Okay. My question was that is it reasonable to assume that between '27 and '28 in terms of manufacturing, your volumes are capped because you are at more or less...

Yes, you're right. That's a part of the growth cycle. That's a normal this thing, and we will try to look at opportunity because the market is ready for doing trading basically, okay? So we are already doing good trading volumes of DAP and TSP and NPKs, and we will be doing that.

Next question is from the line of Krishan Parwani from JM Financial.

A couple from my side. Firstly, I think I missed your expectation for manufactured sales volume for F '26 and F '27. Can you please help me with that?

Can you repeat the question?

Sure. So what is your expectation of manufactured sales volume for FY '26 and FY '27? I'm sorry, if you have already indicated that.

Yes, FY '26, we -- at the halfway through, Krishan, we're already at -- I'll -- we'll just give you the numbers in terms of production.

Exact numbers are 23.1 lakh metric tonnes.

So we were already at 23 lakh metric tons. So by H2, in fact, we can assume a similar numbers. And that should continue through FY '27 as well. Just that in FY '27, we might also do a bottlenecking of the existing facility and improve the granulation capacity by another 100,000 or maybe 150,000 tonnes.

Okay. So the total -- sir, the total granulation -- sorry, go ahead sir.

Yes, yes, please go ahead.

Sir, I was referring to the presentation. So let's say your total granulation capacity currently is 3.9. And given, I think, Susnato you mentioned your first half was 0.23. So if I get the run rate 0.23, it becomes -- sorry, 2.3. So then it becomes 4.6. So on a 3.9, you are saying you are producing 4.6. Is that correct?

So just to kind of give an overview of this thing, see the outlook for the whole year that we are talking of, we are talking of a volume of around 40 lakh to 42 lakh metric tonnes, okay, out of which around 3.7 lakh metric tonnes will come from the manufacturing capacity and around 5 lakh tonnes will come from the traded volumes, okay? That's what the current year is concern. So that's how we are looking at it.

Okay. So 4.6, 4.7 is the total sales volume...

4.2 to 4.3 is the total volume that we're looking at. We have done 23 lakh metric tonnes. We plan to do another 2 million tonnes. So that is around 43 lakh metric tonnes.

Sure. Got it. And what will be your maintenance CapEx, let's say, for F '27 and FY '28 over and above the incremental capacity expansion, you will need some maintenance CapEx. So what will be that number?

This is typically around INR 200 crores to INR 300 crores.

Okay. So it's fair to assume like INR 1,800 crores, INR 1,900 crores kind of CapEx run rate for F '27 and '28?

Yes, yes. Right.

Okay. Got it. And let's say, what's your EBITDA per tonne target for the consol entity for F '26 and '27?

See, industry average, INR 4,500 to INR 5,000, that is maintainable. And we will have it that.

Okay. And if -- so after this, let's say, full backward integration, right, becoming -- all the 3 sites becoming self-land, where do you expect it to move to from 4.5 to 5.5, where do you expect it to move to?

Yes, another INR 1,000 will be added.

Okay. So 5.5 to 6.5 is that the range after that?

Yes, yes.

Yes. And just a last bit of clarification. I understand that you are consolidating full financials now. But what was the sales volume of the Mangalore plant given the amalgamation happened in October, that is post the second quarter end?

Consolidate -- 4.23 lakhs.

For the H1.

For the H1, it is 4.2 lakh.

4.2 lakh for Mangalore, right?

Yes.

[Operator Instructions] Next question is from the line of Saumil Shah from Paras Investments.

So my question is on this INR 3,600 crores CapEx. So this CapEx, what we are doing, so what will be our asset turn on that CapEx? Am I audible?

Yes, you are audible.

No, it will be around 2x to 2.5x.

2x to 2.5x. And by when you think that we can reach the peak capacity in this plant?

So this will take gradually maybe within a year of the commissioning.

So the commissioning you said is somewhere in 2028, right?

Yes, yes.

Okay. So the revenues will itself start from '28 and then peak capacity will be in 2029?

Yes, yes.

Is my understanding correct?

Yes, yes.

Okay. Okay. And sir, I mean, for the current quarter, our EBITDA margin has gone down. I mean, the previous quarter, it was around 13% and now it has gone to 10%. So any particular reason for that?

So we don't look at...

You have to see on a half yearly basis. So the price and this -- averaged out.

Yes. So in our industry, which is subject to kind of a lot of macro volatilities, primarily because of the raw materials being imported from various parts of the world. So we go through various commodity cycles, price cycles. And you have to look at it in a block actually. So I think the average, we are doing fairly good actually and as guided previously, we try to kind of do around INR 5,000 number by the end of the year.

Okay. And what was it currently for this quarter?

I think this quarter was close to about INR 5,200 per tonnes.

INR 5,500.

INR 5,200. This quarter is INR 5,200.

Okay. And for the remaining half, I mean, post the merger of Mangalore, so can we increase this INR 5,200?

Yes, yes. So given this investment plan that we have of INR 3,600 crores, which is to kind of set up the greenfield granulation and also kind of do a concomitant backward integration. So if you analyze it, the backward integration that we undertaking that of 0.5 million tonnes of phosphoric acid, that will be more than adequate to kind of address this incremental 1 million tonnes of greenfield. So the remaining will be serving the other 2 sites, which are not backward integrated that way. So essentially, this backward integration will definitely give us fill up to the EBITDA per ton margin, which, in fact, was guided INR 1,000 in incremental.

Okay. And that will be post FY '28?

That's correct. But FY '27 also, we -- 3 quarters back, we announced 200,000 tonnes of phosphoric acid capacity from the current 500,000 tonnes. So that will actually incrementally come in FY '27. Plus there is a granulation capacity that will come in FY '27 to the tune of 100,000 tonnes, plus a sulfuric acid capacity of 100,000 tonnes at the Mangalore site. So these 3 put together should also incrementally add to the bottom line in FY '27.

Okay. Okay. I mean so to the previous participant, I think you said something like INR 350 crores EBITDA for -- in FY '27. So it is because of that? That will be additional INR 250 crores?

That's correct.

Next question is from the line of Tanya Kothary from AUM Capital Markets Private Limited.

Congratulations to the management team on the strong quarter and the smooth merger closure. Just a couple of questions from my side, sir. So with this new integrated granulation unit at Paradeep and acid complex, which will -- how much do you think you will import dependence will be reduced in that coming year? And what would be the incremental margins or EBITDA per ton which you see in the next 2 years post commissioning?

Yes, ma'am, as we already mentioned, the incremental margin improvement will be to the tune of INR 1,000 per tonnes, INR 1,000 to INR 1,500 per tonnes. And in terms of percentage backward integration, with all the capacities being live by end of FY '28, we'll be 100% backward integrated for all the 3 sites put together. And that's the target that we're actually racing towards.

Okay, sir. Sir, what is the time line for issuing PPI shares to the MCFL shareholders and clearly the share capital [indiscernible] account, which is actually given them out?

Yes. I think...

So the record date is already announced, which is 30th of October. We are doing some secreterial proceedings, I think which should happen in the next 30 days. So within the next 30 days, we expect to allot MCFL shareholders the requisite shares in PPL.

Sir. Sir, I could see the dividend payout of INR 100 crores in H1. Is it very conservative given the integration with the management continue with a low payout till major CapEx stabilizes in future?

Ma'am, we didn't follow the question. Can you just repeat it?

Sir, I just saw the dividend payout of INR 100 crores in H1. Is it in a conservative basis like will the management continue with a low payout till the major CapEx plan is completed?

No, this -- whatever dividend was paid, that was for the year '24, '25, which is now approved the AGM and paid. So the dividend for the next year, that will be -- the decision will be taken in the -- after this finalization of '25, '26 account. So this dividend what you are referring, that is for '24, '25.

Okay. Okay, sir. Sir, out of INR 471 crores of CapEx in H1, how much relates to the newly announced integrated granulation and acid plant versus regular maintenance?

Actually, the new announcement will -- the CapEx will come mostly for the cycles only. The last quarter, we have actually commissioned our sulfuric acid plant of 1,500 tonnes per day, almost 0.5 million tonnes. So partly it has come in that.

[Operator Instructions] Next question is from the line of Sandeep Mukherjee from SKP Securities Limited.

Sir, my question was like what is the split between TSP, DAP and MOP volumes for Q2 trading volumes, I guess?

Yes. So as far as Q2 is concerned, the TSP volume that we did was 1.6 lakh metric tonnes. So vis-a-vis last year volume of 0.6 lakh metric tonnes. So that was a growth of 158%.

And for DAP, MOP? DAP, MOP, sir...

MOP and DAP overall, if you look at the trading portfolio, okay, for H1, what we have done in trading portfolio for TSP, we have done -- just give me a minute for H1, we have achieved totally 1.63 lakh metric tonnes. MOP is around 0.7 lakh metric tonnes and imported DAP is approximately another around 1 lakh metric tonnes. So for the -- sorry, no, this is for H1. And the guidance for the whole year is total we will be doing close to 5.5 to 6 lakh metric tons. That's the guidance for the whole year, the entire trading portfolio. Out of which 3 lakh tonnes would be TSP, 2 lakhs plus tonnes will be DAP and the rest will be MOP.

Understood. Understood. And what is our EBITDA per tonne here or EBITDA...

See, in case of trading, we don't have a separate this thing, that's guided by the government scheme where they have given a kind of committed of 4% of the -- this thing of the MRP. That's what the government commits on that one, on the trade volume. And for...

Is this for the whole portfolio, sir, 4%?

This is for the DAP, TSP primarily. MOP, we guided by a normal trading contribution of around 8% to 10%.

[Operator Instructions] Next question is from the line of Mr. Manish Mahawar from Antique Stockbroking.

In terms of this NBS date announce, last -- the last peak what's the view? And how do you see the H2 EBITDA per tonnes or margins for the company or -- and industry side?

For the NBS impact mainly this is on p, on phosphoric acid, not for the ammonia or [Technical Difficulty] Hello?

Go ahead, sir. How do you see the margin...

Can you hear me?

Yes, yes, I can, sir.

Yes. Margin there will be not much impact on the margin because the raw material price increases. So it will be almost sort of squared off.

Okay. And have you taken any price hike, sir, in the market? MRP I'm talking about...

Yes. So we've already taken a price increase for the NPKs, okay? And we're leaders in the market as far as the price realization for the market is concerned.

And is there any possibility to share the number, price hike?

Yes. So for like NPK 10:26:26, our MRP is INR 2,025, okay? Earlier it used to be INR 1,900 a bag, okay? So we took a price increase of INR 2,500 for the Rabi season. And same thing is 12:32:16 and one of our flagship grades 19:19:19 that is at INR 2,175 a bag.

Understood. And one in terms of during the quarter, 2Q, have you booked any amount or maybe subsidy related to this NBS notification on a channel inventory?

Can you repeat...

Can you repeat, we couldn't hear you.

This NBS notification related, any subsidy you have booked during the 2Q in the quarter?

Yes, the cost of what we had of that, the incremental, the increase in the subsidy to the tune of around INR 40 crores to INR 50 crores has been accounted for.

Okay. Understood. And in terms of the merger, right, MFCL with the PPL, I think we have talked about some synergy benefit, right? Could you share what could be the synergy benefit can come, and which can flow to the numbers in the next year or maybe overall basis?

No, there was significant synergy benefit in terms of improving operational reliability, supply chain, the procurement contracts. And I think we'll not be able to quantify at the moment, but this will be a good number, which you will see in the next 12 to 24 months.

Okay. And in terms of this new CapEx, right, [indiscernible] your introduction, I think debt to equity, it could be 70% and 30%, right? But that is the next debt number, what you're talking about 70%, right? It should be much, much lesser in terms of production...

Yes, yes, for the upcoming projects.

Yes, upcoming project, 70-30 what you said, right, this number will be much, much lesser in terms of debt perspective, right? Because our internal will be significantly higher in the next 2 years, which will basically required for our new CapEx.

So typically in long-term projects, your equity contribution is around 25%. So we have taken that 30%. The additional cash flow that will be available to the company will use for other strategic initiatives and growth initiatives, which we will let you know in due course of time.

[Operator Instructions] Next follow-up question is from the line of Gagan Thareja from Groww Mutual Fund.

So you mentioned an incremental EBITDA of INR 350 crores from the backward integration next year, additionally something more from the MCFL synergies. But to a certain degree, that will be offset because incremental volumes partially will be traded volumes. So just want to understand, is the incremental EBITDA that you're talking of net of the impact of -- impact on margins of the traded volumes?

Not quite, Gagan. So if you look at it, this year, as has been guided, we'll be doing close to about 4.2 million, 4.3 million, out of which a good 10%, 15% will be traded. So the similar kind of a percentage share of traded will actually -- will be expected to happen in FY '27 as well. And trading is actually over and above the manufacturing realization that we kind of get. The backward integration will add to the manufacturing realizations. Trading will be over and above. So there's no netting of there's no squaring business here.

No. The reason I ask is that if you are constrained by your manufacturing volumes, only having so much headroom till the time the new capacity comes in, will the sales mix not incrementally move in favor of traded volumes and therefore, will it not have a certain impact on margins?

So just to share with you, so see, one directional change in volume mix that we are trying to do is going towards more value-creating NPKs, okay? So that's the shift that we are trying to drive in the portfolio volumes. Second, like what you rightfully said, we would look at augmenting our trading volumes as long as it creates value. So while we -- from a market side, we are ready to augment the traded volumes, and we look at that opportunity. And while the manufacturing capacities come up, we will be looking to scale it up. especially TSP, which is a strategic portfolio that we are trying to kind of build in the Indian market. So that's what we'll be focusing on. The other focused products that we're trying to grow in the portfolio is N-20. So where we are -- where we are among the top 2 players today in the country. So that's how we are looking at it. But yes, you're right, till the time the full capacity expansion happens, so there will be like a gap in that, but we will try to augment that volume through the traded volumes.

Okay. So what you're saying is that while you increase the traded volumes within the manufactured volumes, you intend to shift to higher ASP or higher realization products?

Yes, yes, absolutely. So does that -- the deal...

That will take care of the impact there. Right, sir. And from an FY '28 perspective, is there further room to increase capacity by debottlenecking in FY '28 till the 1 million tonne capacity comes through? Or that is not possible?

Before that, actually, we should be able to augment it by 0.2 million. I'm sure actually because this is the idea which always circles in the manufacturing facilities to go for brownfield expansion, smaller debottlenecks. So there will be many ideas that will come around, so beyond '28 also.

So you're saying '27 and '28, you will have some room to increase volumes from debottlenecking and then augment that with additional trading volumes and then that 1 million. Okay.

[Operator Instructions] Ladies and gentlemen, as there are no further questions from the participants, I would now like to hand the conference over to the management for the closing comments.

Thank you, everyone, for taking the time to join our earnings call. If you have any further questions, please reach out to our Investor Relations team. Thank you once again, have a good evening. Thank you.

Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.