Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star then two. Participants are requested to use kindly handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all, you may press star and one to ask a question. We will take the first question from the line of Pujan Shah from Molecule Ventures. Please go ahead.

Thanks for the opportunity. My first question pertains to the vinyl segment. So just want to understand the broad aspects on the pricing what we should expect going forward. So we have seen the real estate prices of China is at 20-year low and how do we see this situation impacting PVC business in general, versus we are also hearing out that inefficient plants of PVC are being shutting down in China. So how to read that in terms of considering the positive news flow of anti -involution versus the negative news flow of real estate not picking up?

Okay, thanks for this question. I think the pricing as I mentioned a little earlier has been very volatile in the last 3 - 4 months. Its actually led by China dumping earlier, then the import duties in India were reduced and thereafter because of the shortage of availability , the prices went up again, but now they have come down again. So I think it i s very difficult to give an indication of what will be the prices going forward. I think because of the West Asia crisis, it i s very difficult. We sincerely hope one small advantage is the devaluation of the rupee, that is giving the imported prices a little higher position, so that helps the domestic industry also. But I think the prices of PVC are very volatile and if the West Asia crisis is sorted out in the next few weeks, it will still take some months before there will be any stability. We are hoping that from 1st July the import duty of 11% which was removed ea rlier, we hope that comes back. That will give us the advantage of our pricing for the domestic market because considering the energy costs, industry today is under a lot of stress. So we are hoping that the government will look at it positively and bring back this import duty. And we hope the W est Asia war is sorted out soon s o there is stability in the world geopolitical business environment. So impact one does no t know. China plants closing, frankly China's c apacity is so large that we do not know what is closed, what is running, what is not and they have been dumping for a long time not only PVC, but many other products. So we really do not know what their policy is going to be.

Got it. And, just to understand a broader aspect, we have been discussing about the MIP and versus the industry has also initiated ADD, but it did not succeed in November, right? So are we going for because MIP is a short -term phenomenon where we are able to protect our margins or our industry structure, but on a longer term are we still going for ADD to get a longer -term protection from the government side?

Yes, the industry has taken it up ; CPMA has had multiple meetings in the government over the last couple of months including one which was held last week with the new Secretary Chemicals who has come in now. And we have mentioned that look, we gave the data for the imported prices for the last 5 years. In the last 4 months since the dumping started, the prices have fallen dramatically by almost USD150 to USD200. So we have suggested that you please revisit. The ADD application which will go again because it got rejected just some months back. MIP also is very much on the agenda. They ha ve recommended a price, but that i s pretty low. So we are actually talking to the government saying that please look at the MIP in a realistic manner and then recommend to the Finance Ministry. So dialogue is on with the government.

But just to understand a broad aspects considering the crude price has already been up, I understand we have been a carbide base, but just to understand as crude has already been up by a significant percentage while considering the other ethylene -based route PVC manufacturers might not get their RM and that is why they will always keep the inching up the prices? Again the only the negative side would be the China keep dumping because they have that carbide capacity. Other than that it seems like – it seems that price should sustain around 85-90 in PVC per kg or it would be difficult situation to call right now because all the scenarios are not been under a one conclusion?

No, you are right, it is a little difficult. Our prices are ranging between 81 -82 in that range right now. But you know China dumping can come in at any time. We do not know at what price and what is their policy behind it. So it is very uncertain. I think and energy prices have gone up not only gas but even coal. So all these are impacting the cost of production. So I think there is a lot of uncertainty in this market.

Sure. Thank you.

Thank you.

Thank you. We will take the next question from the line of Rohit Nagraj from 360 ONE Capital. Please go ahead.

Thanks for the opportunity. Sorry for harping on the PVC front. So one is that when do we expect the MIP to come in place because it has been since a while that the PVC ADD is now out of question? And just second question in terms of the anticipated increase in import duties again post June, is there accelerated dumping which is happening from China or probably some kind of inventory buil d-up by the domestic producers at the lower prices? Thank you.

So the MIP actually we are in dialogue with the government to look at a reasonable MIP. That is the conversation going on right now. The industry is representing again giving the cost of production, giving all the data to the government of what is the rea sonable MIP based on the past prices, based on what is the China prices, etc. So that dia logue is going on. I think that i s one thing. Secondly, the price stability no one can say because you know the uncertainty in terms of availability of the movement of material, goods, etcetera that is open and China can dump and I mean they are actually exporting to India quite a bit. In the last year, 50% of India's imports were from China. So the quantity was very large. So we are in fact in dialogue with the government if this import duty is removed at the end of June and we get the 11% back, that will be a saving grace and a real breath of life for the PVC industry. So let us hope that happens. But the pricing mechanism is very open -ended. No one can give any commitment of any time.

Sure. Thanks. Sir, second question is again on the caustic front. Given that there is a sizeable amount of alumina capacity in Middle East which is gone off -stream, how do you foresee the caustic balance in the global market? Is there a possibility of again that particular ma terial which was supposed to go to Middle East can be routed to Asia and that will have again some kind of implications on the domestic pricing? So just your thoughts on this? Thank you.

Yes. So as we mentioned earlier in the call as well, the global caustic capacity is c lose to 109 million metric tons and of course the demand is spread across globally. So there are always regional balances and regional dynamics that come into play. So you are right that some particular utilization in the Middle East has reduced, but we have to see how it all plays out. The unpredictability remains very high and there are always many factors in determining the price of any commodity really, including caustic. So we can not correlate it very directly, the impact of one demand area going down. But we do expect in the long term, we expect the Indian situation to be quite robust, while there might be some short-term volatility.

Sure. Just if I can squeeze one more small question. What is the current ECU?

The current ECU is in the range of INR32,000 to INR33,000 per metric ton.

And just to add, this is ECU without including the flakes element because some of the peers include flakes element as well. So this is for lye.

Sure, sure. Thanks a lot and all the best, sir.

Thank you.

Yes, thanks for the opportunity. First on caustic, is the export volume steady or has there been any impact because of logistics?

So as a country, our exports have been increasing steadily over the year. In fact, India was a net importer a few years back. Last year as a country, we exported over 600,000 metric tons of caustic. For us as well, if we look at the financial yea r, well in the last quarter you a re absolutely right, there is some implication which is there, but if we look at the last financial year our exports have gone up significantly and we are now exporting approximately 12% of our capacity.

And is there any caustic production constraint you see because of chlorine disposal issue and is there more room to improve volumes for caustic soda as a whole for FY '27?

So the unpredictability of course with the war in the Middle East is very high and while not directly an implication for us, but a lot of our customers do consume products that come from the Petrochem value chain. So there can be an impact of that. But we do see that between domestic demand and global dynamics, we do expect at least our capacity utilization to stay robust in the coming year.

Sure, got it. On the ECH, you have mentioned that the plant got fully commissioned from April. What will be the current utilization as of Q1 if you can say and what utilization you are expecting for full year FY '27? And also in terms of margin profile at current prices with the full value chain, glycerine and so on, what sort of margin profile one should consider for ECH?

Yes, so the ECH plant, as you rightly mentioned, was fully commissioned in April 2026. Now actually the plant is running at close to 60% to 70% capacity utilization and we a re ramping up the capacity. The product approval from customers has been coming in regularly and so we expect a steady ramp-up in the coming next quarter or two. In terms of the margins, it is not always so easy to say. For instance, crude glycerine price has gone up significantly and while we do have refining capacity, so we refine our glycerine and then of course convert that into ECH. So the margins will depend again on how the raw material prices and how the finished good prices move. But overall, there has been an increase in the raw material cost and an increase in the ECH selling price. So we do expect again a healthy margin to continue in the ECH plant.

Sure. And for epoxy, in terms of volumes how is it currently and in terms of break-even for the acquired entity as a whole, what sort of timeline one should assume?

So epoxy as you would know , we acquired Hindustan Specialty Chemicals Limited in August, we completed the process in August 2025. So it has been a couple of quarters now. We are in the process of doing, smaller de -bottlenecks, some improvements, safety focus areas, etc. So it is now I think running well. We are running at capacity. Of course we want to increase the capacity of the unit. The Board, as you would know, has approved a capex of INR101 crore in its Board meeting 2 days ago to enhance the formulated resin capacity from what was earlier 14,000 tons per annum to 50,000 tons per annum. So this is a material expansion in the formulated resin capacity which we expect to complete by Q2 FY '28. And with the ramp-up of this, we are very confident that the profitability of the advanced materials vertical will move up.

If possible give a sort of a timeline based on the efficiencies you are trying to achieve and volumes you are trying to achieve, whether the break-even will be achieved in probably this year itself or you see it to be extending?

Yes, we expect to achieve break-even this year.

Ahmed, the way it will work is that first 6-8 months we utilized to stabilize the operation. It was loss- making unit. I believe this year we should be a little better than break -even because we have just expanded our formulated resins from 7,000 to 14,000 which Aditya was mentioning. So that would also improve our margin profile. So this year should be good and then, you know, we will keep adding the formulated resin capacity which are high margin and high returns. So that will, you know, change the face of this business that we have got into.

Okay, sure. And for ECH, coming back again, could you quantify margin? I think a couple of quarters ago in the con -call you had given 20 %, 25% range. Is that sort of a range one should assume for our Epichlorohydrin plant?

So I feel, Ahmed, the way we look at, you know, because Bharuch where we have multiple businesses now, and each of these businesses are linked to each other in terms of their some or the other feedstock. Caustic going into it, chlorine going into it, hydrogen going into hydrogen peroxide. So it is best to look at what is the profitability of the entire setup, the entire chemical complex. And also because it is a complete value chain, something is down, something is high. So that is only, you know, it is best to look at how the overall complex is performing. And if at all it is not performing well, what is pulling it down? So I believe currently the way it is happening, if you see the last full year numbers, our revenue went up by about 38%, EBITDA went up by about 50%. So that shows that one, the volumes that are getting added are helping the overall profitability of the co mplex. The other good thing that has happened is that before the start of this last financial year, the new products were contributing about 14% to the total revenue. Now the new products contribute about 34% or 35% and going forward this will increase. So that will also strengthen the whole complex. Like today we just talk about caustic soda and what really happened in caustic. I think it will be beyond that. So gradually it is gaining strength. There have been some technology issues and X, Y, Z, what we a re now, we have got over it largely, right. Some bit is yet to be resolved, but then we are almost there and we should progressively see more stability and better earnings.

Sure, I get it. This helps. I was coming from the standpoint that for caustic we generally take per ton margins and then in this it i s very hard to segregate. But considering you report as a whole chemical business, margins which were 20% for at EBITDA level for FY '26, do you expect as a whole that number to improve materially considering all the new products you have added or this sort of range will be a number to take going forward?

You know, it will be hard to give a number on this because it i s a forward -looking situation and the unpredictability with the global geopolitical situation etc is very high. But at least what we can say is we always look to run our operations and run our businesses in a very efficient manner. So we do expect that, you know, in case the raw materials and the finished good prices are reasonable, that we will make reasonable margins.

Sure. Question on the sugar side of the business. You have been very vocal about the industry support and obviously there are a lot of challenges. Now ethanol thing is probably become very critical. So is it fair to assume that considering current prices o f sugar, ethanol and your cost of inventory, it will be very tough to make a reasonable margin in this business and it is likely that we make some money but it will not be material?

So see, yes you a re right, the margins are currently they are definitely lower than what they were last year. But you know, again, given that the inventory levels are very low now, right, they are all -time historical low of about 4 million tons in the country , expectation is that prices should be a little better than where they are right now. This export ban announcement really does not make any impact except for some sentimental piece for a very short tenor. So I feel prices should improve a little bit. Margins may not be the same what they were last year. So there will be some shrinkage in pr ofitability, but that, but you know, it is not very significant shrinkage is what our estimate is.

Sorry to interrupt, Ahmed, I would request you to please rejoin the queue again for more questions. Thank you. We will take the next question from the line of Manish Bhadane from 36 0 One Capital. Please go ahead.

Hi, thank you for the opportunity. I just want to understand like we are into the ECH, so how much ECH do we captively consume to manufacture the epoxy resin? Like currently what it is and in future what it will be?

So, our ECH capacity is 150 TPD, so that is roughly 52,000 tons per annum. Our LER capacity which consumes ECH is a smaller capacity. So, we do expect to sell a large percentage, close to 70 -75% of our ECH in the market. That is the current situation.

Okay, thank you so much. That is all from my side.

Thank you.

Thank you. Before we take the next question, a reminder to all, you may press star and one to ask a question. We have the next question from the line of Riya Mehta from Aequitas. Please go ahead.

Hi, thank you so much for giving me the opportunity. So, my first question is in regards to the Shriram Farm Solutions business. In the last couple of years, we have made it really big and I think our R&D efforts have put in place. I just wanted you to elaborate on what kind of efforts we are taking and what business potential we see out of this business in the next two-three years.

Well, as I mentioned earlier, Shriram Farm Solutions has three verticals. One is the seeds business, the other is the crop protection business, and the third is the specialty nutrients business. So , we have research going on in all three of these verticals quite actively and aggressively. As you rightly said, the seeds business, wheat has been a, touch wood, a good success for the business and is doing well even this year in spite of the earlier rains and the heat etc etera, the off-take has been pretty good. We are focusing on the crop protection also where we have a tie -up with a couple of international companies to get molecules in which we are doing in our outsourced processing plants and we are making the product and selling that in the market for the farmers, which is also doing well. And we are continuously working on that of getting more tie-ups as well as our own R&D on the crop protection. In the specialty nutrients business, as you may be aware, we have a factory in Kota called Shriram AgSmart where we manufacture specialty nutrients. That is there plus we get some more products from outside plus we have an R&D and as I mentioned in my opening remarks, we have made a couple of new products in crop protection and in specialty nutrients from our own R&D plus from outside which have got a good response in the market. So, our plan is to grow in all three.

Got it. And my next question is in terms of Fenesta. So Fenesta we have been doing excellently in the last couple of years and currently with the metal prices going up, aluminium also reaching all-time high, how are we passing on the cost and how do we see the margin going forward? And also, one question is in terms of margin and second is in terms of demand. Are we seeing any demand fall back since the cost has increased so much?

So, one is on passing on the cost to the customer. So, there are two types of customers, one is the retail customer, the other is the institutional customer. In retail customer it becomes a little difficult to pass on the cost if, you know, although the contracts also are of a shorter value and of shorter tenor, but then it is difficult to pass on the cost there. However, in institutional clients, a lot of our contracts are made in such a way that there is a tolerance level post which the cost is passed on, you know, to the builder. However, till the tolerance level it does impact our margins. Now in terms of your second question on demand, I think we are seeing good demand even now. If you see our Q4 numbers also, they were pretty good. So, we have had record order book. So, demand is pretty good right now.

Got it, got it. Now my third question is in regards to the PVC business. Considering that currently China has been dumping, etcetera. In the current scenario do you think prices will fall down to as like similar to 60-65 level which were there in say November-December? Or what kind of, because I am assuming that China will also be under energy cost pressures and they would also likely increase the prices?

Well, what you are saying we sincerely hope not. I mean that is the thing. And also, one is seeing because freight, international freight and movement of goods is also not so easy now because of the disruptions happening across the board. So, I think the price of 80 -81-82 which is prevailing now, we do hope that it stays. It might go down a little bit. This is also like a situation where if suddenly, excess material comes in, it affects the market price straight away. But then after a couple of weeks, it can go up a little bit again. But it is very difficult to predict on any of these commodities what the price will be, but we hope it stays somewhat stable.

Got it. Thank you so much. That it from my side.

Thank you.

Thank you. A reminder to all, you may press star and one to ask a question. We have the next follow - up question from the line of Ahmad Madha from Unifi Capital. Please go ahead.

On the Fenesta margins, is there any impact on margins because of the acquisition of DNV, if you can quantify the number?

No, there is no significant impact right now because that is a separate entity, and we are still buying on the same arm’s length basis as we were doing earlier. So, there is no impact on the margins. The reason for that acquisition was more in terms of indigenization and therefore our lead times improve. It is also about doing more R&D in-house to come out with newer products on the windows hardware. So, I think we are we are progressing that well.

Sure. And for overall capex, what sort of number one should consider for FY27 for the overall company as a whole?

So that should be in the range of around INR1,000-INR1,200 crore including the normal capex as of now, which has been let us say approved by the board, but we have few projects in the pipeline as well. So let us see how that pans out. Currently committed is to that range.

Okay, got it. Last question on the Bioseeds. Obviously kharif placement should have started by now or something of that sort. So, can you give some sense , just not company specific, but in general what trends you are seeing across crops, cotton, paddy, maize, in terms of channel inventory, pricing discipline, off-take, if you can give some broad sense based on the trend you are seeing in the market?

See, as of now placements are good, although there are apprehensions because of expected El Nino. So, the placements are happening. The only place where we are seeing some apprehensions beyond El Nino is on cotton because every producer in the country has huge inventory of cotton. And therefore, how the discounts will be passed and all that has to be looked at. Yes, but otherwise it is reasonable start to the season.

Okay, sure. Thank you.

Thank you.

Thank you. Ladies and gentlemen, thank you very much for your participation in our earnings conference call. As we navigate an evolving global landscape, we are actively fortifying our resilience and growth by one, driving operational excellence. We remain hyper-focused on optimizing our core manufacturing base, ensuring our operations are lean, agile, and capable of sustaining healthy margins across our portfolio. Two, deepening our value chains. We are strategically strengthening integrations across our business verticals to invest and unlock synergies and enhance our competitive edge. And three, accelerating digital transformation. Technology is the backbone of ou r evolution. We are embedding data -driven insights and automation into our daily operations to drive efficiency and sharpen our strategic decision- making. Furthermore, environmental stewardship is no longer a peripheral objective. It is the cornerstone of our capital allocation. By building greener, future-ready operations, we are securing sustainable long-term value for our shareholders. Thank you once again for your continued trust. Goodbye.

Thank you members of the management. On behalf of DCM Shriram Limited, we conclude this conference. Thank you all for joining with us today and you may now disconnect your lines. Thank you.

This is a transcription and may contain transcription errors. The transcript has been edited for clarity. The Company takes no responsibility of such errors, although an effort has been made to ensure high level of accuracy.