Patanjali Foods Limited (PATANJALI) Q3 FY2026 Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Patanjali Foods Limited Q3 FY '26 Earnings Conference Call hosted by Strategic Growth Advisors. [Operator Instructions] Please note that this conference is being recorded. Before we proceed, this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Sanjeev Asthana, CEO, Patanjali Foods Limited. Thank you, and over to you, sir.

Thank you, and good morning to everyone. A very warm welcome to Patanjali Food Limited's call to discuss the results for the third quarter and 9 months ended FY '26. I'm joined by the company's CFO, Kumar Rajesh-ji, along with Mr. Priyendu Jha from the Investor Relations team and our IR partners, Strategic Growth Advisors. We have uploaded the results collateral on the stock exchanges as well as the company's website for your reference. Let me begin by giving a quick snapshot of our financial performance. During the course of this call, we will be referring to stand-alone financials. During Q3 of FY '26, the company delivered the highest-ever revenue from operations of INR 10,483.71 crores, registering year-on-year growth of 16.53%. The total EBITDA, excluding the exceptional items for the quarter, it stood at INR 492.06 crores with a margin of 4.69%, while profit before tax was INR 364.54 crores, translating into a PBT margin of 3.46%. Please note the impact of labor code during Q3 stood at INR 30.19 crores. This has been classified under the exceptional items. The company also delivered the highest ever revenue from operations for the 9 months of FY '26, with reported revenue from operations amounting to INR 29,013.98 crores. Total EBITDA, excluding exceptional items for the period was INR 1,429.56 crores. with a margin of 4.93% and profit before tax stood at INR 1,118.24 crores, translating into a PBT margin of a [ drop ] approximately 3.8%. Let me now give an overview of the operating environment of Q3 FY '26. Q3 FY '26 was a period of transition and execution and largely influenced by the rollout of GST 2.0 reforms. The months of September and October experienced temporary trade disruptions due to repricing actions, packaging updates and operational adjustments. By November, inventory levels began to stabilize. During the quarter, we introduced higher brandish packs, revised pricing to pass on the GST-related benefits to consumers. We anticipate a stronger volume recovery ahead, with the positive effects of GST rate reductions expected to become more evident in the upcoming quarters. The rural consumption continues to outperform urban demand for the seventh straight quarter. However, we are now seeing a robust rebound in the urban consumption as well, supported by rising disposable incomes particularly benefiting the key food categories and the positive effects from revised direct and indirect practitioner business. The quarter was also benefited from the festive season with Diwali acting as a key demand catalyst across categories. festive-led purchases were supported by positive consumer sentiment, while the GST led price corrections improved affordability and further supported. On the cost front, the palm oil prices declined materially by 12.6% on a year-on-year basis with a sequential moderation of 3.7% during the quarter. In December '25, the palm oil imports were down 20%, while soybean oil imports increased by 20.2%, reflecting a shift in the edible oil basket. Looking ahead, the pricing pressures are expected to persist amid tightening global vegetable oil supplies. Wheat prices remain rebound with no significant movement supported by comfortable supply levels in the physical market. The government's intervention schemes continued to effectively cap price increases. During Q3, sugar prices stayed firm, while supply conditions remained comfortable. Festive demand provided the price support. Let me now walk you through the segment-wise performance during Q3 of FY '26. For the Edible Oil segment, the quarterly revenue [indiscernible] [ 29% ]. The primary growth driver in Edible Oil is our branded oil such as Ruchi Gold, Mahakosh and Sunrich. In the 9 months of FY '26, each of these brands recorded double-digit growth in sales value. It is notable that nearly 85% of total edible oil sales now come from branded edible oils, driven by strong marketing initiatives and impactful brand endorsements. In Q3 FY '26, the palm oil prices decreased considerably. India's palm oil imports fell to an 8-month low in December, mainly due to seasonal demand and increased purchases of rival oils such as soya oil and sunflower. India's palm oil imports typically moderated during the winter months, as the tropical oil solidifies at lower temperature, limiting its use in the northern parts of the country. And North India continues to be a strong area of preference. For the 9 months, our revenue stood at INR 20,989.43 crores, registering [ 16.55% ] year-on-year growth in EBITDA margin for the segment was 2.57%. For oil palm plantation business, the segmental revenue stood at INR 418 crores with margin of 22.47%. For 9 months FY '26, revenue were INR 1,610 crores with an EBITDA margin of 21.53%. At the end of the calendar year, the area under cultivation stood at 1,08,000 hectares with nearly 39% of plantation in prime yield years of 7 to 25 years. Coming to our FMCG segment. The quarterly revenue stood at INR 3,248 crores, reflecting 38.93% year-on-year growth and a sequential growth of 12.31%. In Q3 '26, EBITDA margin came in at 10.18%. On 9-month basis of FY '26, revenue stood at INR 8,297 crores with an EBITDA margin of 11.06%. The FMCG segment contributed 30.68% of revenues in Q3 FY '26, while contributing nearly 66.33% of EBITDA in Q3 of FY '26. During the quarter, within the FMCG segment, biscuits reported revenue of INR 490 crores with a year-on-year growth of 26.4%. [indiscernible] biscuits accounted for nearly 70% of biscuit sales. In the 9 months of FY '26, the revenues from the biscuit [indiscernible] surpassed FY '25 levels with cumulative sales crossing INR 1,000 crores. The Nariyal biscuit continues to gain traction. Distribution is the key in driving the sales in this category. We are also strategizing on strengthening our retail the Southern region. Staples generated revenue of INR 1,255 crores growing at 68.70% on a year-on-year basis. This implement weighed upon our margin profile for the segment. The revised key strategy delivered encouraging results with the category reporting a healthy performance driven by festive and winter season demand. The revenue stood at INR 467 crores in Q3 FY '26, reflecting quarter-on-quarter growth, or 21%, and year-on-year growth of 46%. Within Nutraceuticals, the General Nutrition showed increased customer acceptance. We have undertaken multiple targeted initiatives to further strengthen this category and expand its reach. Additionally, our [indiscernible] enrollment program is progressing as planned, and we expect it to begin contributing meaningfully to the growth in the coming quarters. Our HPC categories generated a total revenue of INR 627 crores with Dental Care, leading the pack at INR 339.27 crores, followed by skin care at INR 155 crores, home care at INR 77 crores at hair care and other products, generating revenue of INR 54.78 crores. We constantly evaluate our portfolio that resonate with Patanjali. In line with this philosophy, we introduced a date almond spread, Gond Katira and yellow mustard oil in the FMCG category. In the HPC category, we launched new variants across shampoos, soaps, detergents at creams, which have received encouraging consumer response. The Kesh Kanti, Saundarya product range continues to gain strong traction, reflecting increasing acceptance of Patanjali's premium offering. Distribution remains a core strength of our business, and we continue to focus on expanding our omnichannel reach. Over the last calendar year, we added an estimated 0.2 million to 0.25 million new retail outlets, are now presented over 2 million retail outlets. We are also intensifying our efforts to strengthen distribution in our core markets to drive higher penetration throughout. In parallel, we are scaling our presence across modern trade, e-commerce and pick commerce platforms with products available on Septo, Big Basket, Amazon, Geomart and the leading channels. Now commenting on the outlook. From a demand perspective, we are hopeful that at the end of FY '26 could be strong, primarily supported by favorable macro tailwinds. The demand benefits are likely to accrue progressively over the coming months, supported by improved affordability, wider distribution and a continued shift from unbranded to branded consumption. Together, these factors position the company well to capture the incremental demand and deliver a stronger performance in the coming quarters. Further, GST 2.0 reforms are likely to stimulate consumption over time. Our demand is expected to strengthen in the coming quarters, aided by easing inflationary pressure and the positive impact of revised direct and indirect taxation measures, which should support discretionary spending. On the rural front, we anticipate sustained growth momentum, primarily supported by a healthy carryout moderating in iteration and continued support from the government welfare schemes that are enhancing disposable incomes. Together, these factors provide us with greater confidence in demand recovery and volume growth across categories. With this, I conclude my opening remarks and open the floor for the Q&A session.

[Operator Instructions] We have the first question from the line of Abneesh Roy from Nuvama Wealth.

My first question is on biscuits, toothpaste and hair oil. If you could tell us in terms of GST pass-through, have you taken the grammage route? Or have you taken the price cut route? For example, biscuits, I think some regional players are still operating at [ INR 4.59 ] while the #1 player has transitioned [ INR 5 and 10 ]. So I wanted to understand that for each of the 3 categories, what have you done, toothpaste, hair oil and biscuits. I'm audible?

I'm sorry, this phone went on a mute. To answer your question straighter, the biscuits, we increased the grammage, and in case of shampoo hair oil, the price benefit was transferred through the pricing itself.

And in terms of outlook, how do you expect toothpaste competition? For example, last 1 year to pace competitive intensity, promotional intensity has been high, there is the LUP, the GST benefit also because 30%, 40% for the industry leader, at least is LUP, and they're adding back grammage there. If you could comment, how do you see toothpaste industry volume growth and competitive intensity in FY '27 and Q4?

No. So competition is fairly intense. That is straightforward, and it's pretty much since the growth is very limited, anywhere between 3% and 5%. So that continues to grow stronger. Our sort of dental care business has done exceedingly well. In the quarter, we did nearly INR 340 crores of business in the dental care, and we continue to gain quite substantial growth. If I were to compare the dental care versus the last year, Q3 versus Q3 of last year, it's almost INR 116 crores up. And this momentum is driven by 2 counts. One is the multiple variants that we used, the new brand ambassadors that we got, the packaging change, some of that, which were introduced, and very strong traction that we have in B and C towns as well as the rural areas. So that has been a very redeeming feature. And while the market overall, the category may continue to grow between 3 and 5, our target clearly is that we want to exceed 15% is what we have said on the overall basis and the growth objective for HPC. And on a fully annualized basis, I mean, this will take us what, we've said, that we'll take 18 months to take the benefit of the margins as well as the growth. But I'm pretty confident that we should -- the time that we took over the business, we should be pretty much close to 15% growth rate from that time.

We have the next question from the line of Abhishek Mathur from Systematix.

First, just a bookkeeping question. If you can give the EBITDA absolute numbers for the quarter for HPC biscuits, staples and ethnic foods.

So EBITDA, the breakup of each of these, I can certainly give you. So for the nonfood, it's INR 157 crores, and the margin is about 24.95%. Likewise, for the biscuits business, our EBITDA is INR 47 crores, margin is 9.57%. Foods, the EBITDA is INR 151 crores. The margin is 7.54%. -- and Edible Oil is -- the EBITDA is INR 175 crores. The margin is 2.4%. 2.39% to be exact.

Great. Secondly, I just wanted to check, there's been a strong growth turnaround in our foods businesses, both staples and the higher-margin foods, the ethnic foods. So how does one think about growth in this -- baskets? So how does one think about growth in these segments going ahead? How are you looking at this turnaround? And is it sustainable? And what is the steady-state growth that we should think about in terms of biscuits, staples and the higher-margin food segments?

Look, I think the rational expectation -- and pardon my core fell cold. I mean Delhi's like bad flu right now. But 2 parts, one is that our projected long-term growth is very clear that in the food space, we will grow between 8% to 10% will be our growth rate. Margin construct in the food business will be between 8% and 10% as well. Net EBITDA margin, that's what we're targeting. And progressively, we continue to sort of improve that. In the HPC business, our -- when we took over the business, the margin was about 18% EBITDA was with the parent company. We have targeted that we will take that 18% by 200 basis points over the next 18 months. But based on several changes that were introduced, we've been able to accomplish almost nearly 25% EBITDA in this quarter. Now on a sustainable basis, the question that you're asking is that how it's going to grow. So longer term, the guidance is very clear, that the food business, 8% to 10% growth, HPC business, 15% growth, which is a high-margin high category -- high-margin category for us. And veg oil business, anywhere between 3% and 4% growth is what we target and where -- in the volume terms. And the value, of course, is determinant of multiple how the value is ultimately be hit. So that is pretty much the set course, how the company is looking at its businesses. And yes, because of the GST relief, because of seasonality, part of it in certain seasonal changes that occur, some quarters, you will see a better performance. But broadly, that is the directional outlook that we have.

Great, sir. And a final one, if I can squeeze in. On the Edible Oil segment, so now the September last year, import duty hike would be in the base anniversaried. And we have talked about palm oil prices trending lower, albeit you have mentioned some pressures in terms of pricing. So in these -- with this scenario, how does one think about the margins in the palm oil business -- in the edible oil business going forward? That's it from me.

So no, that's a great question. And I was hoping that we will do that because, last year, September, what -- there was a -- the margin construct was very positive. We had one-off gain that we got on account of the duty increase of nearly 22%, again, that accrued in September and that was more a onetime gain. Likewise, so previous Q3 of FY '25, our margins were INR 581 crores and on a base sale of 9,000 -- no, our margins were INR 364 crores on a revenue of INR 6,731 crores, about nearly 5.5%. But as I mentioned very often that the veg oil business, edible oil business, by its very nature, our targeted EBITDA stream is between 2% and 4%. Our -- the orientation in terms of the planning that is entirely done by the company is on the volume growth of between 3% and 4%. We are seeing consolidation in that segment. We are seeing that the consumers are gravitating towards the branded players. The larger players have the benefit of managing their treasury and working capital and risk better than superior. So there is a consolidation happening in that space. And -- but the performance evaluation on a quarter-on-quarter basis was always a challenge. Because of the requirements of accounting in the audit, you have to take a particular price on the mark-to-market at the end of a quarter, and that starts to change, which is what happened in this quarter as well. And after that, the uptick has happened. So I'm pretty confident of not only remaining within the framework of the objective that we defined for ourselves but also maintaining that closer to 4% is what we target. And I'm witness saying that there's some change already quite afoot right now as we speak as well in last 3 weeks that the prices have started moving up. So we should gain some of the online benefits should accrue in this quarter. So that is broadly the direction we have. And the interplay between palm, soya and sun, because 3 big import write-up, that will always happen. So palm because it had gone down because of the exceptionally high prices, which had exceeded soya and sun, so that will happen. But broadly, on the overall category basis, this is what we're targeting. And progressively, we are expecting with the 15% and 20% growth in food and nonfood and the other businesses, I think we should head closer to the stated objective of 50-50 between the edible oils and the nonedible oils portion of it. So for example, our margin construct, if we were to look at right now, so 2/3 of the margin is now accruing from nonedible oil proportion. So nearly if I were to say that the 71% margin came from the FMCG segment in this quarter and about [ 35.6% ] margin came from the edible oil. Whereas the edible oil segment contributed 69% and the FMCG segment contributed about 30%, 31%. So this spread will consistently as we grow our revenues on the FMCG side and we reach closer to the growth rates that we've discussed, closer to about INR 20,000 crores. I think at that level, this margin profile of the company going towards the double-digit EBITDA that we're targeting, I think will pretty much become a reality, and that's what the objective of the company is looking at.

[Operator Instructions] We have the next question from the line of Shirish Pardeshi from Motilal Oswal Financial Services.

Sir, my first question is on edible oil. You mentioned that the imports, generally quarter 3 declines for palm. Does that mean the system and even us have a higher inventory at the lower price? Or do you think we are just managing -- so maybe if there is a price increase, we will have to take the price increase as and when the price increases happen for [ Q4 ]?

Yes. That's right. So Shirish, what will happen is that you mark down the inventory to the quarter end pricing, that the accounting part, Mr. Kumar Rajesh will explain better, but we have to mark it down and bring it to a particular level. And thereafter, the prices increase, then typically the benefit accrues to the company.

Okay. The second thing is that even soya and sunflower is also becoming very lucrative in India. So does that mean that the shift will happen from palm to sunflower or soya? Or that is not a correct way to look at it?

So I would say that your -- the thesis is correct that the perceived -- the value for soya and sun is at higher level where people see it as more premium oils and palm is lesser premium or in some cases, the attaching the health connotations, et cetera. All 3 are set to grow. The interplay between them is the prices and the origin in the countries from where they're exported and the global edible oil complex. So many times, that undergoes a change on which there's very little control the companies have. So then what happens that the consumers might switch between 1 versus the other, and this could happen. But the pecking order is very clear that sunflower is typically the highest price. The soybean is at -- next to it and the palm oil is the cheapest. Now occasionally, it might happen that the palm may exceed or soya may change or otherwise depending on supply situation. But probably that is in 8 out of 10 cases. That is how it will remain. So some in security, for example, out of Russia or Ukraine supply is certainly -- the price might spike for sunflower. But broadly, that is a spread which will happen. And so some shifting happens but consumers are largely -- there's price inelastic. So especially in case of sunflower, which is largely sourced through the branded form, the branded players, the consumers will stay with sunflower oil. They will not switch to palm oil or soya. It is the industrial consumers typically who tend to switch. So for example, when the palm went too high, so people started switching from -- I mean, the industrial users, the B2B consumer. They started switching from palm to soya. So that may happen but otherwise, not too much of a change. This will pretty much remain the same.

So one follow-up on this. We have 3, 4 brands, Sunrich and Ruchi Gold. So within these 4 categories or subcategories, which has grown faster in quarter 3?

So quarter 3, the largest size that we clearly have in the Mahakosh. So Sunrich, we have made very big inroads. We are nearly today doing close to -- from that perspective of doing nearly 12,000 tonnes a month now, and we will continue to gain momentum, which is sunflower. So that has been the fastest growth on a percentage basis. But in absolute terms, our growth has been largely through soya and palm.

Okay. My second question is on FMCG. You mentioned that biscuit growth is about 26.4%. Is that driven by the volume and grammage changes? I mean I'm just trying to understand volume and price is half and half or volume is higher?

So I mean, it's obviously very volume-driven without a question. So it is not -- price is not the bigger driver in this, as I was mentioning earlier that we actually, in case of biscuits, we increased the grammage post the GST. So largely, it is not driven by any price inflation. It is entirely on the volume growth. And this has come through distribution expansion and natural velocity that we had on the growth rates of the biscuits market. So overall, that has been a very redeeming feature for the biscuits business because we are outpacing the industry by a very substantial wide margin.

Okay. And the last question on HPC. I think you mentioned that we are trying to ramp up in South. So if I look back, overall as a company, what south contribution was there, including all the FMCG categories earlier before and now what your target is to [indiscernible] distribution?

So there is very good pickup. Yes, sure. So -- but I just want to -- because this is very often discussed. So if I would look at the overall distribution, but this is obviously not a correct reflection because palm oil is very substantive, Ruchi Gold sells largely, which is a branded play. So I'll just give the overall number just for benefit of everyone that -- I was just pulling out that why don't we consolidate everything and see where the numbers stack up. So zone-wise mix, 33% is contributed by South, the largest. If I were to look at the overall, including edible oils and FMCG, north is 31%. East is 18%. Central is 9% and West is 9%. Now if I were to look at the FMCG part of it, if I were to look purely earlier at the FMCG, I would say that this would -- this number would be closer to about 10%. And that has got on a lower base that is growing at 15% to 18% now. And there, we are expanding, putting a lot of energy where this base of growth we want to establish and gain momentum. And a lot of products are now gaining a lot of traction. So for example, our food products, some of the HPC products now, so they're gaining a lot of traction, and we are quite confident that the reach that we have in the distribution, the cross-selling among the distributors and retail that we are pulling work towards. So there's a reasonable amount of confidence that we should be able to pull through on that and put a good growth rate for South India.

We have the next question from the line of [ Tanya Sharma ] from [ TS Capital ].

Now I had a couple of questions. So first, staple continue to be a drag and that is like loyalty in this category. So what that our plans from the FMCG mix perspective?

So broadly, what has happened over a period of time, staples have always been a revenue driver and less from a margin perspective, as you rightly mentioned, that there is a bit of lower margin compared to the ethnic foods. So clearly, as you -- as I mentioned in my opening remarks and the release that we gave as well, that, for example, in ghee, we had exponential growth, of course, it was led to a large extent by the festival demand, et cetera, and some of the promos that we had. So there was a huge pickup in the ghee business. Likewise -- so in terms of the -- like we did almost INR 470 crores, INR 468 crores in ghee in the last quarter. And it will really jump so driven a lot by the overall buoyancy that we saw on the demand side. So there is a lot of effort that is happening towards pulling businesses on the ethnic food side on the high level. And -- but at the same time, these staples have a particular way of sort of coming in because there's a -- the demand is not in the sense that it's not very defined. So it is also seasonal, and it is very price-driven as well. So many times, if they find a greater value in what we are offering. So the demand pickup is very suddenly that people would be buying a lot more because there the brand loyalty is lesser. And the focus is a lot more on the -- in terms of the value proposition that you're offering on the staples pricing. So my sense is the mix will not dramatically alter. The mix will pretty much remain the same. But progressively, as the ethnic foods category will continue to increase. I think we will start seeing better margin construct as well in the overall foods category as we speak.

Okay. Sir, next one, so ghee can be very cyclical in nature. So how do we manage consistency in procurement throughout the year?

So ghee -- so what typically happens in ghee is that the sell side, as I mentioned, there's some cyclicity, not volatility in pricing. But seasonality, uptick is always there. The procurement is very consistent. So there is a season in which you are able to procure. So that market is, of course, it depends a lot on the supply side and how the demand for the [indiscernible], cetera is there. So that we have to do. But the supply chain is fairly well-oiled machine. There are -- there's a large vendor base. There are companies who supply on a consistent basis. We converted to us, we secure our suppliers over a period of time. So that works in general quite well, and there is some bit of pricing change there as well. So that may have some impact on the margin profile of the business. And that is one reason why the raw material pricing plays a very crucial role in businesses where business verticals like biscuits and ghee and some of these areas, where you might see a certain degree of variation. And which is why we always target that 8% to 10% is a good blend of margin between ethic and the staples. We should be able to generate constantly that.

Okay, sir. Got it. And sir, one last thing, do you have also any plan to bring other related products?

No, we have no immediate plans of introducing new dairy products. We have enough on the plate. We have -- of course, that innovation constantly happens. We want to introduce new products. But on the dairy side, I would imagine the variations of ghee will certainly do. But products like butter or cheese or liquid milk or flavored milk, et cetera, that category perhaps it is going to plan for that.

[Operator Instructions] We have the next question from the line of [ Priya Kulkarni ] from CN Capital.

Am I audible, sir?

Yes, you are.

Yes. Sir, so my question is like on the product side. So which product line are you planning to expand? So we have not had many new product innovations and the new ethnic brands are giving competition -- like companies like give us this competition. So what is your take on this and on the product innovation side?

So we have -- there's a pipeline of products that are constantly planned, and we continue to introduce new variants. SKU -- with the SKU itself, there's a constant mixing of new products, new SKUs, new ideas in terms of plans, et cetera, as I was just mentioning. And also responding to the vertical through with the channel, through which it is getting distributed. So for example, as the change in e-com and quick commerce has defined and redefined in the way consumers shop. And likewise, for the modern trade and general trade and so to avoid the conflict many times, those adjustments are done. Some products on a trial basis, largely are tried out first on the e-comm and quick comm then on the modern trade and then finally to the GT. But to answer your question specifically, as I mentioned, that it's a constant work which is happening. We will -- you will see a slew of products that will get launched. So this quarter, for example, other than what I mentioned in the call, there is -- you will see that in the biscuits category. We will have multiple premium products that will get launched. I would not be able to give the details on this call, but that is under the works. Likewise, for the HPC category, we are planning at least 3 more new product launches, which will happen over the next 6 months. In the skin care and some variations in the dental side as well as the hair care, so a lot of work -- in the home care category. So there is a constant sort of product pipeline. Yes, competition is there from the new age companies. And yes, they are doing a great job. And so we will do our job, and we will be found nimble. We'll be found quick, and we will be able to respond to any challenges.

Got it. Got it. So my last question was about like last year, we had a signed up multiple brand ambassadors. So just as wanted to ask when do their contracts expire. And are we likely to renew it? If yes, what will be the cost and the tenure of the contracts?

So cost and I would not share on this call, and that's confidential. But the tenure continues to ramp with all the 5 ambassadors. Mr. Goni has signed up for additional 2 years. The contract for Mrs. [indiscernible] continues, and likewise, both for [ Tiger Shroff ] and [ Tabanabatia ] and similarly for [ Mr. Kapoor ], that also continues. So they are pretty much -- as we speak right now, the contracts are very much on and active.

[Operator Instructions] We have the next question from the line of [ Shagun Kara ], an individual investor.

I wanted to understand regarding area under consideration. So it is approximately 16% for the total area allocated. So could you guide how much hectares are we going to add in the area under conservation?

You were talking of oil pump, right?

Yes, sir.

Okay. So oil palm currently, what we have is that 1,08,000 hectares, which has been planted. This year, our target is that we should do close to 40,000 additional hectares, which is a mix of 20,000 in Northeastern part of the country and 20,000 in the South India. And so that -- for that, we need to prepare valid advance on getting our sprouts and nurseries and others, and we are very much on course for that. When I'm saying this year, means '26, '27, I'm talking now.

8 Yes. And sir, the area on the cultivation, the area has been allocated by the government. So is it a long-term lease and how much amount does it cost us?

So we don't pay any amount. What the government does is that -- so we -- of course, to give an answer to that, it's in perpetuity. So it's for 35 years of the life cycle of the oil palm. And after when it gets closer to the trees having lived their life, then you can extend that by additional tree replanting. So there is no tenure fixed for that, for the lease because the land continues to be owned by the farmer only. And we simply work in close collaboration with the farmer and work alongside him for 35 years. So that is almost it can be seen as perpetuity because government is not asking to do anything on that. We're basically saying that this company is allowed to do the oil palm plantation work along with the farmers and ensure that they are able to 100% work on this. That's it.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference back to the management for closing comments. Thank you, and over to you, sir.

So with this, I conclude the call. I sincerely thank you for your continued support and trust in Patanjali Foods. If you have any further queries, please contact...

The line for Mr. Sanjeev has been disconnected. Ladies and gentlemen, please stay connected while we join them back. Thank you, everyone. On behalf of Patanjali Foods Limited, that concludes this conference. Thank you for joining with us today, and you may now disconnect your lines.

Thank you.