Tata Chemicals Limited (TATACHEM.BO) Q3 FY2026 Earnings Call Transcript & Summary

Good evening, ladies and gentlemen. And welcome to the Q3 and 9 months FY '26 Earnings Conference Call of Tata Chemicals Limited. Please note that this conference is being recorded. [Operator Instructions] We have with us today Mr. R. Mukundan, Managing Director and CEO; and Mr. Nandakumar Tirumalai Chief Financial Officer of Tata Chemicals Limited. Before we begin, I would like to mention that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. I now invite Mr. R. Mukundan to begin proceedings of the call.

Thank you. Thank you, everyone, and welcome to the quarter 3, 9-month FY '26 earnings call. I'll start with a brief discussion of the industry situation and then get on to operational highlights across business and geographies. In terms of the demand scenario across geographies, especially for soda ash, I think the demand growth is fairly tepid and flat in the near term, constrained by weak macroeconomic in a couple of geographies, especially in Southeast Asia and some parts of Asia, which -- and this is mainly driven of certain elements related to the export restriction and export constraint those products are facing in one of the biggest markets they had in U.S. So medium-term soda ash, while this is so in the short term, the medium-term soda ash demand is expected to grow modestly, supported by structural growth of solar glass and a stable consumption from other applications. However, it is very likely that the demand growth is unlikely to absorb the new global capacity additions in the near term, which will result in continued pressure on pricing and margin in an import exposed domestic markets. India continues to exhibit relatively robust demand growth, while China and U.S. are witnessing marginal demand declines in some sectors and overall very, very flat demand. Across other regions in Asia, excluding Americas, excluding U.S., Africa is seeing broadly resilient demand. And there are pockets of this -- within this, which are also having challenges. For example, in Southeast Asia, demand has been marginally impacted by tariff on photovoltaic glass imports into U.S. affecting the regional glass trade flows. Geopolitical risk and ongoing tariff uncertainties persist, continuing to cloud global demand visibility. The pace of economic recovery is expected to be remain fairly slow in the year ahead, limiting any sharp resurgence in industrial outcome. Over the medium and long term, the demand outlook remains positive, driven by sustainability-linked application, including solar PV and EV growth, notwithstanding near-term challenges. In terms of supply, supply remains abundant across all major regions with elevated inventory levels continuing to exert pressure on pricing and India prices have remained subdued due to sustained import from U.S. and Turkey, limiting the scope for domestic price recovery. China inventories remain elevated but stable at 1.5 million tonnes, and the sentiment softened slightly compared to previous quarter. Export prices have remained subdued through Q3. Berun and Inner Mongolia have started testing additional expansion in December with full-scale production sometime targeted during first quarter of the financial year next year. While Chinese producers initiated strong spring maintenance earlier than usual, this resulted in supply curtailment in the short term being rapidly offset by newly commissioned capacities. In terms of pricing, the soda ash prices remain challenged across most geographies with prices in certain markets approaching record low levels on persistent oversupply and muted demand. In India, domestic list prices remain under pressure, declined marginally in Q3, driven by continued import competition and weak pricing sentiment. In U.S., spot exports continue to soften, especially to the Southeast Asian markets. Export prices were particularly impacted by intense competition in the Southeast Asian market due to Chinese supplies in the global market. Chinese soda ash prices have declined by approximately 54% between Q3 FY '23 and Q3 FY '26, primarily due to the low-cost natural soda ash, which has come on stream. Currently, the domestic prices are about CNY 1,200 in China. Overall, pricing is expected to remain at the similar levels given the elevated inventories. Now I'll go on to the operational performance. Despite the market headwinds, the company's stand-alone performance was actually supported by higher volumes, prudent cost management, resulting in stable operating performance during the quarter. The reconfiguration of U.K. operations was completed with strategic focus on value-added and noncyclical products to improve business stability. The revenue was about 1% down compared to previous year at INR 3,550 crores despite the fall in prices in the market supported by higher volumes. EBITDA at INR 345 crores compared to INR 434 crores, mainly on account of subdued pricing across all geographies, but also this EBITDA fall has been sharp in mainly in U.S., which has led to the overall consolidated having a sharp drop. There's an exceptional charge of INR 54 crores, which is provided in the accounts for the new labor code. And PAT before exceptional item is negative INR 15 crores compared to INR 50 crores -- nearly INR 50 crores last quarter of FY '25. Net debt stands at INR 5,596 crores, excluding a lease of INR 772 crores. In terms of stand-alone, the revenue from operations stood at INR 1,204 crores, up 3% compared to Q3 FY...

Ladies and gentlemen, please stay with us, the management line seems to have disconnected. [Technical Difficulty] Ladies and gentlemen, we thank you for your patience. We have now reconnected with the management. Over to you, sir.

Thank you. And I was highlighting the stand-alone highlights at this point of time for Q3 FY '26. The revenue from operations stood at INR 1,204 crores, up 3% from compared to Q3 FY '25 due to higher volume. EBITDA at INR 228 crores in stand-alone was 9% up from Q3 FY '25, effect of also higher volume and lower fixed cost. An exceptional charge of INR 14 crores was provided in the account of the new labor code. PAT before exceptional items from continuing operation was INR 87 crores, up 21% compared to Q3 FY '25. In terms of unit-wise performance, India had performance higher than previous year, mainly on higher volumes and operational efficiencies. Quarterly sales volume of silica was up 15%. Quarterly sales volume of FOS was up by 9%. We also commissioned a new L55 line in Mambattu in October '25. Pearl grade silica of 3,000 metric tons per annum at Cuddalore was commissioned in December 2025. U.S., both domestic and export volumes were higher. Prices were sharply lower in the exports, which led to the sharp fall in revenues and the margins. U.K. salt production was impacted due to unplanned stoppage, which resumed thereafter. The bicarb is slowly recovering its market share with the feedstock coming in from TCNA natural soda ash. Kenya had higher revenue due to higher volume, offset by lower realization. The price did drop there and 50 kt electric calciner soda ash 50 Kt electric calciner soda ash plant in Kenya was operationalized and will be fully stabilized by March 2026. Rallis saw revenue growth of 19%, driven by Crop Care and Seed business. We also announced the acquisition of Novabay Singapore in -- on November 19, which we entered into a share purchase agreement. And this acquisition strengthens Tata Chemicals position in premium grade value-added bicarb market by expanding the geographic footprint, which now extends from U.K., which serves European market in India as well as now the Asian markets, including ASEAN and Far East. CapEx, the Board also approved an investment of INR 515 crores for setting up a greenfield facility in this Board meeting of 210 kilotonne per annum capacity of Iodised salt in Valinokkam in Tamil Nadu. This facility is expected to be commissioned over the next 36 months. Board in its meeting in '21 also approved 50 kilotonne, as you know, 50 kilotonne per annum precipitated silica expansion at Cuddalore at an investment of INR 775 crores and a 350-kilotonne Dense Ash plant in Mithapur with an investment of INR 135 crores. So all the CapExes are happening in India, a market which is steadily growing and also in bicarbonate in the Asian market to capture the premium bicarb market. Overall, our priorities remain firmly aligned in protecting margins, preserving cash flows, maintaining balance sheet strength. We continue to adopt a disciplined approach to capacity utilization, cost control and capital allocation, ensuring resilience during current challenging phase of the soda ash cycle. With this, I close my comment and hand back to moderator for Q&A. Thank you.

[Operator Instructions] The first question is from the line of Saurabh Jain from HSBC.

My first question is, please, can you remind us how the soda ash domestic realizations in U.S. are looking like for this year because the contracts would have been signed in January. So any color on that?

Yes, the U.S. domestic prices, which have been negotiated are at par or about $5 to $10 variation, bulk of them. Overall, I would say that there's been about $5 drop in realization on the domestic market.

$5 drop. Okay. That is useful. And can you please also make us understand how the cost changed in the last 5 years? Because at a similar kind of realization, we used to make very good margins pre-COVID times. So now and then how the cost structure has changed that we are not making any profit anymore at the utilization that would be helpful.

In terms of -- on a fixed cost basis, which is in dollar terms, I think there is broadly, if you take -- if you spread it between 2 elements, on fixed cost, there is about -- the increase in fixed cost over the last 5 years has been broadly about $15 million broadly. On the variable cost, certainly, I think this would vary from the various pricing of coal and gas contracts. But I think a $5 movement has happened broadly per tonne basis.

But the gas and coal cost, would it be much different from what it was pre-COVID times? I would have assumed it would have stabilized and maybe have seen some increase, but then it's like a major increase in those costs versus how we used to procure, say, 5 years back?

Gas is broadly in terms of gas has settled at a much higher price from pre-COVID. And the coal has also increased because many of these coal companies have had to sort of sign a contract with annual escalation because many of them are actually running at the end of their cycle of the current scene, and they're finding it difficult to get financing from new seam. So they want to run the current seam, which effectively means they have to travel longer to get the coal out. And hence, they've had an increase in cost. And there's been annualized escalation. I think if you take pre-COVID over the last 3 to 4 years, I think probably is about $5 broadly.

$5 in total?

$5 per tonne of the finished product and $5 per tonne of the coal cost, which is about $50, I think it's about $55 now.

Okay. Understood. That is very helpful. And if I may squeeze in one more question. U.S. is currently has seen some winter storms. So any disruptions in your production or sales activities? Have you noticed any such signs on that?

No, this time, there's no disruption to speak about. If you look at the operational challenge this quarter has been mainly in U.K., where I think we had an unplanned stoppage in our salt plant. But I think in quarter 4 with a much more stable operations, should be reporting better numbers. In fact, we were hoping that this quarter, we would break even in U.K., which has got pushed because of -- because U.K. had a very difficult storm, which came on the way. But I think that did disrupt the operation, and there was an unplanned stoppage. But U.S., there was none.

U.S. on margins, how would you look at the coming quarters? Do you see any normalization towards the usual margins? Or would you expect it may continue to run at...

No, I think what we have got to do, and I think this is really the operating team is managing it on a case-by-case basis on shipment to shipment, while we continue to serve all markets which have held more or less pricing steady, especially in the Southeast Asian market, we are stopping to take orders which are below our expected number. So you would feel -- you would see in the coming quarter us not delivering the volume sort of going down on the volume because it doesn't make any sense to be selling in those markets at negative contribution.

Okay. Does it mean a volume decline for the coming quarters in Europe?

Yes, it's a temporary pause, especially to the Southeast Asian market.

The questions Moderator, can you take the other participant, please? Hello. Hello?

Ladies and gentlemen, good evening. This is the operator are extremely sorry about the inconvenience call. Please bear with us, we will reconnect. Give me a moment, please. Ladies and gentlemen, thank you for your patience. We sincerely apologize for the inconvenience as there was an issue at our end. We have now reconnected with the management. Yes. Sir, you are now connected into the conference call. We have our next participant, Abhijit Akella from Kotak Securities. With the next question. Maybe go ahead with the question, sir.

Yes, please go ahead.

So first question from my side is regarding the capacity expansions. Could you please just give us some -- guide us a little bit with regard to the expected EBITDA from these expansions for silica, soda ash and salt in India? Also, if I may squeeze in one alongside that, with regard to Novabay as well, will that appear in the Europe business or somewhere else? And what sort of EBITDA number could we expect? And also, sorry, the Kenya capacity expansion of 50,000 tonnes, the electric calciner -- is that a capacity addition? Or is that a change to a different fuel source?

Yes. I think firstly, on Kenya, let me take that. I think Kenya, that 50,000 is additional capacity addition. It is over and above the current capacity. But also it is likely to be a more superior product because the pure ash which also has a low carbon footprint because of electric calcination. So the EBITDA numbers will be higher than normal, and it's completely electric. The second piece is on the Novabay acquisition. Actually, in Singapore, it is for the Asian market, mainly for food and pharmaceutical application. And the unit numbers, everything we will sort of highlight once we consummate the acquisition. But needless to say that it also gives us flexibility at a very low cost to double the capacity to 120,000 tonnes from the current 60,000 tonnes. So we will also highlight what will be the operational benefits of doing the same. The other thing which we are trying to do as far as Singapore is concerned, currently, they are importing the synthetic soda ash all the way from Europe. We'll be supplying that from some of our more known and more competitive sources. The third piece is on the capacity expansions in salt. It would continue at about same margins as we have overall because whatever increase in cost is because of the new site that is more or less compensated very well with the logistic cost reduction. So the margin should not change in the additional capacity coming in on the Valinokkam also it's coming at the right time because in 24 to 36 months, our unit in Mithapur will be fully loaded by that time, and we will not have any spare volume unless this goes on stream. Of course, we could have expanded in Mithapur rather than here, but we chose to do it in South so that we have flexibility with 2 sources. With respect to dense soda ash and Mithapur, we will come back to you with a specific number next quarter. And precipitated silica, we already highlighted the margin numbers in the past. A specific number, we'll share it with you in terms of what it is likely to do. But all these projects have returns which are in excess of 16%. And normally, we try for returns closer to 18%.

Okay, sir. I believe the silica business currently is doing about some INR 60-odd crores of sales, if I'm not mistaken, based on the 10,000 tonne capacity. So should we assume a similar level of realization as well from the expansion?

Yes, yes, it would be similar. But the overall issue would be that the way it would work is because we -- the INR 60-odd crores, you have to distribute is only INR 10,000 crores additional capacity, which has come on stream, that will be only seen in quarter 4. You should not add that when you look at the average realization.

Fair enough. And just one last thing from my side. With regard to the [indiscernible] capacity addition that you alluded to earlier on the call, what sort of Phase 1 capacity is coming up over there? And yes, I think that should be the main thing.

Yes. The overall increase in capacity is about 2.5 million to 2.8 million tonnes, 2.5 million you can take as a safe number in addition to what already exists there. And this, in our view, is in line with the target China has set of having 50% synthetic and 50% natural. But the way we see it is that while the new natural capacities have come, the synthetic capacities have to go. So overall, there will be capacity rationalization, which has to happen in China. With the current pricing, most synthetic plants are actually losing -- are not making money at all. They are losing, which is why they've gone in for a cyclical maintenance shutdown to sort of not produce below a certain number.

Our next question is from the line of Vivek Rajamani from Morgan Stanley.

Just wanted to understand, I think on the U.S. side, you mentioned that you're taking a conscious decision not to ship to Southeast Asia, while that could potentially increase the mix.

Yes. I'll just clarify. I said in Southeast Asia, it's certain contracts are being offered at prices which are not acceptable, not that we are not shipping everything. We are shipping, but it may lead to certain reduction in volume. We are going contract by contract as we speak.

Sure, sir. That's very helpful. The question that I was asking was if we had to kind of think about the U.S. business over the next few quarters, what would be a good level of EBITDA that we should assume? Or would it be fair to say that given the market conditions and given the time it will take for you to kind of rationalize your volumes, would this quarter be representative of what could be the case for the next couple of quarters? Or how should we think about that?

In terms of overall, I would say, if you look at the shipments which we are doing, which are quantity commitments we had in the past, I think there was one shipment this quarter. There's probably going to be one shipment next quarter. Other than that, there are no shipments which we are taking below a number which we have for our fairer contribution. But if you look at U.S., the way to think about it is that in these swing markets, where pricing has dropped below $160 or $155 broadly, even a $20 movement or $15 movement is good enough to get everything back on track. So I think it is just that it's at the edge of where we think it is not acceptable. And the $20, $15, $20 move in some of these contracts would make us move to start accepting those contracts.

Sure, sir. That's very helpful. And just a second question that I had on the CapEx front, given where we are in the markets currently and given that the closures that we were expecting, say, out of Europe or even in China, it's taking a bit longer. I just wanted to understand at what point in time would you consider pushing out the CapEx? Or is there any thought process that at a certain price or at a certain level of where the industry is you would think about either postponing the CapEx or relooking at that altogether? I do understand India is a growing market, but just wanted to understand how you would think of that given where the industry is today.

In terms of CapEx, Varun, I think fundamentally, we are not adding any CapEx in any market other than India. In fact, we were the first ones to stop the expansion in the U.S., way, way ahead of others because the anticipating a market condition. And if you really look at our approach, -- it has been that we serve markets which are fundamentally ahead of the -- which are more robust, which are the regional market of North and South America. That's what we are focusing our American unit as, and we have sufficient capacity to feed those markets and also to service our U.K. demand for our bicarbonate unit. We also were ahead of the curve in terms of shutting down capacity in U.K. And had we not done it, this year would have been far, far worse. In fact, U.K. has shown about INR 100 crores swing from what it would have been to what it is now. And we do expect by next quarter, they should be very close to breakeven and next year on, start making profits. And the U.K. is going to focus fundamentally on bicarbonate and salt and the 2 are very higher grade of food and feed and pharma. If you look at capacities in India also, most of them have happened while we have debottlenecked soda ash at a very low CapEx, we have spent most of the capital towards adding capacities in salt, bicarbonate, silica and FOS, all pretty much not in the commoditized space. And even in the commoditized space, if you look at the CapEx, which I highlighted for Dense ash for 350,000 tonnes of Dense ash spending INR 150 crores is a very, very competitive number. It is not an easy number anybody can get to. We have the flexibility to get there because of the resources we have access to. It's also a reconfiguration of one of the existing units within Mithapur, which already exists. So we're not putting fresh steel and cement on the ground. We are reconfiguring something there in Mithapur to get that additional outcome. So clearly, we are very conscious -- and even at this time, we are -- one of the key directions and we have been seeing for the last 1 year has been while the market is going through this challenging space, we are extremely focused on making sure we serve the customers who are -- who make fair returns for us and serve them well. At the same time, keep -- continue to drive our fixed costs down while keeping the efficiencies up, mothballing units and equipments, which don't make competitive efficiency and rationalize capital in a way that it makes a positive cash flow for us. So this year, for example, if you look at the cash flow for 3 quarters, it's about INR 700 crores negative at the operating level, of which INR 350 crores is on the ForEx movement on the debt taken, that we already have. So the real number hasn't moved up. But INR 350 crores, which is additional is fundamentally a sharp reduction, and that has been achieved because of a sharp reduction in capital expenditure from last year to this year. Going forward next year, there are further going to be sharper reduction. When we announced these plans, these are going to be done very judiciously.

Sure, sir. That's very clear. And just one last clarification. There are no one-offs or uncommon costs in the U.S., correct? That's all a normalized number, the ones that have been reported, correct? No one-off costs or no one-off expenses to note.

No, there's no one-off call. As I mentioned, there's only one one-off issue in the revenue line because of the quantity commitments we had with customers. We had to ship them at a pricing, which we would normally not have done. And there probably is going to be one more shipment, which will go to Southeast Asia. But other than that, we've actually stopped taking orders at those numbers.

[Operator Instructions] Our next question comes from the line of Ankur Periwal from Axis Capital.

Just on the U.S. part of our business, if you can help with what was the volume or revenue share from exports for the quarter or for the 9-month period?

We'll share that with you. This quarter had a higher volume of exports, but we'll share that with you.

Sure. Where I was coming from was the subpar profitability that we are seeing in U.S. is largely because of this export order, which probably will not be there in the coming quarters or even the base profitability in U.S., given the lower pricing contract is also slightly under pressure?

So I think what we will do, we had -- we will start sharing the export volumes with you. The subpar and export also is only... [Technical Difficulty]

Ladies and gentlemen, the lines of the management seems to have disconnected. Please stay with us while we reconnect with the management. Ladies and gentlemen, we thank you for your patience. We have reconnected with the management. Over to you.

Yes. So I was mentioning that we will start sharing the split. But in terms of exports, I think there's only one region which is posing a challenge, which is the exports to Asia, especially to Southeast Asia. Other reasons are not a challenge at this point of time. And the prices have held. And while they have come down, but they've not gone to a level where it is -- they are holding at very fairly good acceptable margins.

Sure, sir. I was referring to the local sales in U.S., given the slightly lower pricing there. will, let's say, the EBITDA margin on a per kg basis will be similar versus last year or it will be slightly down, if I look at from CY '25?

I said on an average, you could take $5 down. It's not too much. I mean, in the sense that I think given the market conditions, but our volumes in domestic have also increased. So I think to that extent, it has more or less compensated for whatever we would have lost in terms of pricing.

Sure. Second question on the margins, both in India and Kenya. Kenya, we have seen a pretty healthy uptick there and same in terms of volume growth in India. So -- but somehow, Indian margins are slightly lower. Any specific reason? And the same question on Kenya margins, what should be the steady-state number there?

I think Kenya would remain where it is. I think Kenya, we are not seeing any major changes in their numbers this quarter to next quarter. It's all going to be volume dependent. They sold more. So they've had better numbers this quarter. Hopefully, once the 50,000 tonne comes on stream, that will be at a slightly higher pricing and probably would give them even higher margin. As far as India is concerned, I think broadly, we expect the current numbers to run through. The margin numbers in India have broadly been more or less steady, except for some pockets where prices have sort of gone down by about INR 500 or INR 600 a tonne in soda ash. But otherwise, other products have held more or less up. But India also has had a one-off impact of certain costs, which they had to incur this quarter to get ready for the next year. Okay.

Our next question comes from the line of Sumant Kumar from Motilal Oswal.

My question is for the solar was driving overall soda ash demand earlier. So how is the scenario globally, say, for China and other developed countries?

Yes. So solar still is driving the demand clearly. I think it can turn on a time. If you look at even lithium, which is a big driver, suddenly lithium prices have rebounded. So clearly, it's a long-term direction. What really has impacted the solar in Southeast Asia, the demand in Southeast Asia and why the so much material is oversupplied there is because many of the -- our customers have had a challenge because of the high duty put by U.S. on exports from there as that is getting rationalized because as that is getting rationalized, I think over a period of time, I think it will settle down. So I think this is very much an impact of what U.S. has done. U.S. was a large market for -- and many of these capacities were set up by Chinese companies to continue to export to U.S. So clearly, I think that has unwound itself. And hopefully, with the deals being signed and contracting restarting, this should settle.

Overall, we have seen in the past also export has a lower margin business. And now because of tariff issue, we are -- our margin is lower and domestic demand in the U.S. is lower. So do you think next couple -- you are restricting your sales to domestic U.S. market and not exporting -- minimizing the export. So do you think the margin overall profitability of the U.S. business is going to normalize in the next couple of quarters?

Yes. I think in terms of what we are saying is that the prices will have to rebound at some point because many companies will be taking decisions what we are taking. So I think it is not going to be one company decision which will drive overall behavior. But in terms of the way we approach is that we really look at the market and do our plans. I completely agree with you, domestic market for all our businesses is where we get the highest realization. And nearby markets are where we get the next highest realization. So for U.S., the nearby markets tend to be Southern American markets and parts of Far East and they would focus in those markets rather than extend themselves beyond that. And do as much of a volume in those markets as possible. At the same time, I think the U.K. has completely withdrawn. So part of the U.K. demand for internal consumption of soda ash is being met by our U.S. operation. And in India, I think we are able to sort of continue to sell because India is a net importer. We still need more capacity to come on -- come in India. But I think with the current pricing, the new capacity may not make sense. It is only going to be debottlenecking capacities.

Ladies and gentlemen, we will now take our last question from the line of Nitesh Dhoot from Anand Rathi Institutional Equities.

So I missed the initial part of the discussion. So sorry if I'm repeating that. While we do understand that the pricing pressure is there on the other markets, but in U.K. after the discontinuation of soda ash, we had been guiding around INR 250 crores of EBITDA for FY '26 -- not from the fixed cost savings, et cetera, and a positive PAT by Q3. So our 9 months EBITDA is about INR 110 crores. Q3, as I understand, seems to have a onetime impact. But by when can we get to the guided EBITDA of INR 250 crores or about INR 60 crores, INR 65 crores quarterly EBITDA run rate and a positive PAT there.

Yes. I think as I mentioned, this quarter, while we were aiming to get pretty close to that number, we were impacted by one-off event which led to certain production issues because of the snowstorm they had, which really was not an insurable event in many ways. So I think we have had an issue with that piece. But clearly, I think we are making progress and the fixed cost savings have come through. And part of that journey will be completed in Q4. And certainly, during next year, we will be fully on board with the statement we made. Also, the pharmaceutical salt unit is now pretty much on track to sort of increase its capacity utilization. As that utilization increases, that will also contribute to the overall number in U.K. So I must say that we are behind by almost 6 months in U.K. in terms of turnaround. not in terms of fixed cost reduction, but overall in terms of getting the margin -- high-margin revenue up in that market.

I would now like to hand the conference over to Mr. R. Mukundan for closing comments. Over to you, sir.

Thank you, and thank you to all the participants. This has been a short call, mainly because of some inordinate sailing, which happened at the bridge at the Chorus. So hopefully, we want -- we will have smoother calls going forward. Thank you for your patience. Thank you for the call today. So as I mentioned, during Q3 FY '26, the soda ash market continued to remain oversupplied, especially for U.S., the pricing in the export market, in particular one reason had impacted them, and that has had an adverse impact on the overall number. Our operating environment, while remaining challenging, we do believe that the actions we are taking on the ground in terms of cost discipline and portfolio resilience would hold us in good stead. The other actions we have taken in terms of operational efficiency, tighter cost control and proactive market management would position us, albeit the switchover from growing to making this cost management as one of the key has been something which we have done in the last 2 quarters very sharply. So while the near term does call for caution, which we are advocating, we remain confident of company's strategic direction, which essentially means to put capacities which are noncyclical, also put only very low CapEx capacities, which yield higher return and be very cash focused in our operations. We also believe the balance sheet strength and the capability of our team will ensure that we navigate this well. So we will continue to act with discipline to ensure we are well positioned as we come out of this challenging time to capture opportunities as market conditions improve. Thank you all, and see you for Q4 FY '26.

Thank you. On behalf of Tata Chemicals Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.