46 Thank you, Ved. We will now begin the questio n-and-answer session. To ensure fair participation, please use the “raise hand” function. I will invite participants in sequence to unmute. Please limit yourself to two questions so that everyone has an opportunity to participate. Questions may also be sub mitted through the chat. Mr. Kaustav, please unmute and ask your questions.

58 Hi, can you hear me?

00 Yes, we can hear you now. Please go ahead.

01 My first question concerns the pledge. Could you explain the current pledge arrangement, including the shares pledged, the pledgee, the expected process and timeline for reducing the pledge, and the associated risks? My second question concerns the CHUK delivery -container range. Could you describe the m arket opportunity following the recent customer success?

51 Thank you for your questions. As discussed previously, our borrowing structure changed to ensure the continuation of Project Jagriti, and we moved from bank financing to Neo Asset Management.

57 It will back.

12 As part of the transaction with Neo Asset Management, the promoters’ shares are being pledged as security against the loan. This is intended to be a short-term, higher-cost arrangement, and we expect to refinance through banks within approximately one to one-and-a-half years, following stabilisation of the machine and improvement in the Company’s financial performance. At that stage, the shares are expected to be released from pledge. Neo has also demonstrated confidence in the Company by investing ₹30 crore in equity. I have increased my shareholding in two stages to approximately 48% –49%. Regarding delivery containers, the product has been under development for some time. It represents a new approach that uses the fibre’s inherent properties, including its ability to be glued. We are initially setting up a smaller facility so that customers who are ready to adopt the product can begin receiving supplies. Commercial availability will also h elp us deepen market understanding and progressively optimise costs. The product is currently priced approximately 40% –50% above comparable plastic containers, but it offers advantages in packing, unpacking and food quality, as indicated by chefs involved in our customer trials. We remain positive about the opportunity and expect to report further progress by the next quarter.

41 Thank you, thank you.

43 Thank you. Mr. Darshil, you can ask your question, please. Darshil 25 52 Hi, good evening, sir. Thank you so much for taking my question. Hopefully, I'm audible, sir.

58 Please go ahead. Pakka Limited | Q1 FY2026–27 Earnings Call Transcript | Darshil 25 59 Q1 delivered strong growth. Given that Q2 and Q3 are generally stronger quarters, how do you expect FY2026–27 revenue to develop across both business segments?

24 Darshil, it is difficult to provide an exact number. As Mayank and Shubham explained, our objective is to grow both revenue and profitability and deliver a significantly stronger year. Performance in the previous year was affected by delayed shutdowns, but that situation has largely normalised. The team will continue working to build on the Q1 revenue and profitability performance. While we are not yet satisfied with the outcome, the trajectory is positive. Darshil 27 09 Would it therefore be reasonable to expect positive quarter -on-quarter momentum, without seeking a specific numerical range?

22 That will definitely be our absolute effort. Darshil 27 25 Thank you. That is helpful.

27 PM4 is expected to make a meaningful contribution to revenue once commercial production begins this year. We expect the machine to stabilise during the following year and progressively contribute to profitability. Darshil 27 48 What is the total cost of PM4 and how much capacity will it add? Since commissioning is expected toward the end of the year, will the following year reflect a full year of operations?

08 The current total project cost is approximately ₹753 crore, and the project will add slightly more than 30,000 tonnes of annual capacity. However, the principal value lies not only in capacity but also in the quality of the materials to be produced. Our objective is to move further into flexible packaging and manufacture a high-quality substrate. As with CHUK, the team is working to create a differentiated product that we hope will benefit both customers and investors. Darshil 28 55 Thank you. I have a few more questions. May I continue, or should I rejoin the queue?

58 Darshil, please rejoin the queue and we will return to you. Mr. Raghav, please unmute and ask your questions. Darshil 29 03 Thank you.

12 Good evening. Thank you for taking my question. I hope I am audible.

18 Yes.

19 I have two questions regarding the flexC base paper. I understand that PM4 will produce the base paper, which will initially be supplied to converters for conversi on into finished products. How are the laboratory and pilot trials scheduled for August and September being conducted? Are they being undertaken through a third -party manufacturer? Is commercial scale -up contingent upon the start -up of PM4, and, if so, wha t is the expected timeline, considering that commissioning in November will be followed by a stabilisation period?

59 Those are pertinent questions. Our initial objective is to produce flexC base —an extremely translucent, low - porosity paper with sufficient strength to run on converting equipment used for polymer -based materials. Its low porosity is designed to reduce the consumption of coating chemicals. Pilot trials are being conducted in Europe on a machine selected after evaluating several facilities globally. The pilot machine closely replicates PM4, which was custom-designed to produce a differentiated product.

19 The European trial will produce a few reels comparable to the paper expected from PM4. This will validate t he proof of concept and allow distributors and customers to undertake smaller trials before commercial production begins. PM4 trials are expected to start in November, followed by a stabilisation period of approximately one to two months. Commercial production and supply to the market are therefore expected to stabilise around January.

09 That strategy is encouraging. Since paper quality depends on the substrate—sugarcane bagasse in this case—are you shipping the same raw materials to Eu rope to replicate the intended input and output? Also, does the two -to- three-month window provide sufficient time for successful pilot trials? Have performance parameters, timelines and evaluation benchmarks been agreed with pilot customers, and how are you mitigating the risk of delays?

58 We are using the same substrates intended for our facility. Bagasse pulp has been shipped from India, together with the selected long-fibre softwood. Although softwood is available in Europe, we shipped the selected material from India to replicate the exact blend ratios intended for PM4. The relevant chemicals have also been supplied for the trials.

37 The trials replicate both the pulp furnish and the chemistry, including surface sizing used to close the paper surface. Although the physical trial is scheduled for September, development has been underway for more than six months. We recognise that stabilisation may take time. To mitigate this risk, PM4 can also manufacture established grades such as release paper, greaseproof paper and parchment paper, which can be introduced to the market if the new product requires additional development time.

57 Our development effort remains narrow and focused. If the process takes longer than anticipated, the fallback is to manufacture grades that are already sold by Pakka and other market participants.

14 Understood. I have one brief follow-up question.

15 Thank you, Raghav. Please rejoin the queue and we will return to you. We will now move to the next participant.

18 Sure!

31 Hello!

33 Yes, please go ahead. You are audible.

35 Can you hear my voice?

38 Yes, yes we can.

38 What volume growth may we expect at the consolidated level in FY2026–27?

11 As stated earlier, the commissioning of the smaller machine in the last quarter and the growth in our outsourcing business are expected to support volumes. The impact should be visible in both revenue and volume.

33 The chat response indicates an expected FY2026–27 EBITDA margin of 19%, whereas the first -quarter margin is around 13%. How do you expect the margin to improve to that level?

59 I think first, the EBITDA margins for the first quarter is not 13 percent, it is about 14 and a half percent. And with the revised increased production coming into place, the EBITDA margin should go up. We were consistently working at an EBITDA in excess of 23, 24 percent all across 2023, 24, 25. And, as Shubham has said, with that, if CHUK, for the first time, after so many eight, nine years of operation turns profitable, definitely there is no doubt that the EBITDA margin should be about 18 or 19% on the total on the total sales which comes for FY27.

43 Sir, gross margin.

44 Thank you.

48 We expect the gross-margin contribution to improve through a better variable-cost structure. Since fixed costs are not expected to increase proportionately, the higher contribution should support an improvement in margins.

11 Thank you, sir.

14 Thank you. Mr. Kenil jasani, you can go ahead and ask your question.

24 Hello, am I audible?

26 Yes, please, go ahead.

28 My first question concerns the postponed manufacturing project i n the United States or Central America. When does the Company expect to revisit that project? My second question concerns the higher -cost financing arrangement. What is the Company’s plan for refinancing or reducing that cost?

02 I will address the first question, and Himanshu can respond on financing. Our long -term objective remains global expansion. Last year, however, we recognised that the organisation was pursuing too many capital -intensive initiatives simultaneously, including fundraising in the United States and execution of Project Jagriti in India, amid challenging global conditions. We therefore placed international manufacturing projects on hold and concentrated resources on stabilising the existing business and completing Project Jagriti. We continue to maintain relationships in Guatemala and other Latin American countries and are pursuing export opportunities from India. Once Project Jagriti is commissioned and stabilised, we intend to restart substantive discussions on overseas manufacturing. For the next approximately six months, those engagements will remain exploratory.

58 I didn't understand what data, what 2%. I didn't understand the question properly. Can you please repeat or clarify them?

05 Are you referring to debt that has been transferred to another party and for which the Company is paying an additional charge?

13 No, we have not given debt to anybody. where, where, where is that impression coming from?

16 No, so we are taking debt at an additional cost than the market is bearing. correct me if I'm wrong, because this is what I had understood.

30 Himanshu, I think he is referring to the Neo transaction —the higher -cost debt that we intend to refinance subsequently.

31 Correct. I was referring to the debt on our books; I was unable to recall the name of the transaction.

41 The Neo transaction was structured to address the funding shortfal l created by the increase in the cost of Project Jagriti. Following the conventional funding route would have delayed completion by approximately 15 –18 months because the required contribution would have depended on internal accruals. The promoter therefore supported a structured transaction, including an equity contribution and borrowing, enabling the project funding to be completed. As a result, the borrowing cost increased from approximately 11% to approximately 17%. The arrangement is intended to remain in place for approximately 18–20 months, during which the Company expects to commission and stabilise the project.

46 The Company then expects to refinance the debt. Under the earlier bank structure, total interest outflow between 1 April 2026 and 31 March 2028 was estimated at approximately ₹150 crore –₹155 crore. Under the present transaction, despite the higher stated interest rate, the estimated aggregate outflow is approximately ₹120 crore – ₹122 crore. While the arrangement has an impact on the profit and loss account, it improves the projected cash - flow position and provides the Company time to complete the project, address the cost increase and rebuild internal accruals before refinancing.

47 So to sum it up, abo ut 18 to 24 months is a time frame we're looking at. After that, that might reduce it to the original 11 to 13% from 17%.

57 We may be able to refinance earlier, although that would have implications under the repayment structure. A reasonable timeframe for retiring the debt is approximately 16 to 18 months. The net cash outflow under the present structure remains lower than what the Company would have incurred under the earlier bank financing structure.

58 Understood. Thank you for the clarification.

24 Thank you. Mr. Ravi, you can ask your question now. Ravi 44 29 Thank you. Am I audible?

31 Yes, please. Ravi 44 32 Congratulations on the strong results. My first question c oncerns the new substrate planned for PM4. What is management’s assessment of the laboratory and pilot trials completed or underway, and has the final substrate been identified? What net sales realisation do you expect? In the previous discussion, the indi cative realisation was approximately ₹150–₹200 per kilogram.

31 Thank you, Ravi. Pakka addresses three principal segments: Wrap & Carry, Food Services disposables and flexible food packaging. PM4 is intended primarily to address the flexib le-packaging segment. Barrier coatings continue to present challenges, particularly in customer acceptance of their cost, so we are taking a phased approach beginning with flexC base paper. Bagasse is a short, relatively low -density fibre that creates a le ss porous sheet with useful translucency. Because bagasse alone does not provide very high tear strength, we intend to blend approximately 20% –25% selected softwood fibre to provide the additional strength required. PM4 has been designed to achieve the fou r principal properties required for coating substrates: low porosity, translucency, strength and smoothness. We remain confident in the product under development. From a financial perspective, our primary focus is not merely net sales realisation, but the contribution generated by each grade. We aim to achieve a contribution level higher than that of any grade produced previously and monitor contribution per machine hour as a key internal performance indicator. Pakka Limited | Q1 FY2026–27 Earnings Call Transcript | Ravi 49 20 My second question concerns Food Services. Last August, management indicated an ambition to grow the business approximately tenfold by 2028, with a revenue objective that I understood to be approximately ₹680 crore. Current annual volume appears to be around 3,000 tonnes, implying approximately 30,000 tonnes at tenfold scale. Is most of this growth expected to come through outsourced manufacturing? If so, how will pulp requirements be met, given that incremental captive pulp capacity may be allocated to PM4?

29 Incremental volume growth in Food Services is expected to come primarily from outsourced manufacturing partners. We may also evaluate additional capacity at our principal plant in the future. Until PM4 reaches optimum utilisation, we are confident that sufficien t captive pulp will be available. There are also multiple options for procuring pulp domestically and internationally, although captive pulp remains our preferred source. Ravi 51 21 Alright, thank you.

23 Thank you. Mr. Darshan, please proceed with your questions.

30 Thank you. I hope I am audible.

35 Yes, you are already.

38 What margins are currently generated by existing products, and what margins are expected from the ne w products? In that context, what gives management confidence in its FY2026 –27 EBITDA-margin expectation of approximately 19%?

06 Darshan, we focus on three food-related markets: Wrap & Carry products such as QSR bags and wrappers; Food Services disposables; and flexible food packaging, with rigid products expected to follow over time. The Company has previously achieved EBITDA margins of approximately 23% –25%. Recent expansion and stabilisation activities affected margins, but performance is improving. Accordingly, we view a 19% EBITDA margin as achievable and intend to work toward margins above 25% over time.

32 What is the current utilisation of the existing plant, and how do you expect the new plant to ramp up after it becomes operational?

46 Could you please repeat the first part of the question?

49 What is the current utilisation level of the existing plant?

55 The existing plant is operating at more than 100% of rated capacity. For the new plant, our financial projections assume utilisation of approximately 40% –50% during the initial months, 60% –70% in the following year, and stabilisation at approximately 80%–90% by 2028.

21 A question submitted through the chat remains unanswered: what are the current working -capital and inventory days, and what measures are planned to improve them?

36 Manoj, please address this question.

50 Current inventory is approximately 15 days. For new products, considering the stabilisation period, inventory may range from approximately 15 to 30 days.

06 What is the position regarding overall working capital?

12 Our principal raw materials, including bagasse and paddy husk, are seasonal. Since procurement is concentrated during the season, the working-capital position should be assessed in that context; peak working capital varies with the procurement cycle.

36 Are there specific measures available to improve the working-capital position?

39 Thank you, Darshan. To allow other participants an opportunity, please rejoin the queue if you have additional questions. We will now proceed to the next participant.

47 I will come back.

56 Thank you for the opportunity. My first question concerns the changes in senior management over the past year, including the recent resignation of the CFO. Given the operational changes underway , how should investors assess leadership continuity and management stability?

28 That is an important question, Manasvin, and I accept responsibility for it. We have a capable and committed team, while recognising that leadership continuit y is important for the organisation. At times, businesses must make difficult decisions in response to personal, professional or performance -related circumstances. Our team remains closely aligned, operates within a relatively flat structure and demonstrates a strong sense of ownership. Changes have been made in the leadership of the Wrap & Carry business and in the CFO position for different reasons. While it is not possible to guarantee that no further changes will occur, our objective is to strengthen le adership stability and organisational continuity.

04 Thank you, Ved. Is the Company developing internal capabilities and a succession pipeline for future leadership? My second question concerns outsourced manufacturing. How will the Compa ny protect the product know -how and prevent competitors from replicating the delivery containers and undercutting prices?

37 International expansion reinforced the need to develop strong internal leadership. Last year, we selected six leaders for a structured development cohort. Over the next two years, our objective is to prepare at least six individuals to assume significant global responsibilities, supported by training and mentoring from experienced industry leaders. We have also formalised succession planning: each leader is expected to identify and develop at least two potential successors. This is particularly important because Pakka’s culture and operating ethos are distinctive, and excessive reliance on lateral hiring could dilute t hat culture. Regarding intellectual property, delivery containers will be manufactured internally. The proprietary barrier -coating technology and related know - how will remain within our facilities.

00:31 These are proprietary technolog ies. As a strategic principle, innovative products and technologies will be manufactured in our own facilities. We are therefore not outsourcing the delivery -container technology, which enables us to protect the related intellectual property and know-how.

00:55 I understood that moulded-product manufacturing had already been outsourced. Could you please clarify?

01:02 The additional capacity is being built externally, but we continue to operate our own plant and machine s. Product allocation can be adjusted between internal and outsourced facilities, thereby freeing internal capacity for proprietary delivery-container products.

01:26 I would like to share some product feedback. Approximately six to eight months ago, I received room -service delivery at Club Mahindra in a paper container carrying the CHUK branding.

01:28 Please continue.

01:47 The branding was not visible on the top of the container, although I found it on the bottom. During use, the container became soggy, and the product experience was unsatisfactory. I am sharing this feedback because such experiences can affect customer perception of the CHUK brand.

02:24 Thanks for the feedback.

02:24 Thank you. Shubham, please respond.

02:31 Thank you for the feedback. We will examine the issue.

02:35 We will investigate the matter and take the necessary steps to improve the product experience. Mr. Jagjeet, please proceed with your question.

02:36 Thank you very much.

02:47 My first question concerns delivery containers. What has changed since the previous quart er, how has product development progressed during the last three months, and how ready is the business for launch? The price premium over plastic containers was approximately 50% last quarter and remains around 40% –50%. Since the first facility is expected to be launched next quarter, could you also indicate the planned capital expenditure for that facility?

03:36 Shubham, would you like to respond, or should I proceed?

03:40 Please proceed; I will add to your response if required.

03:42 Jeet, Shubham and I have debated the product and cost structure over several quarters because he leads the commercial business while I lead product development. Significant progress during the last quarter has now given the business confidence to proceed with the launch. A major development arose from extensive trials with a large food-service customer. Their chefs reported that food quality and the overall food profile were materially better in our container than in the pl astic container used previously. This performance benefit has made the customer willing to absorb the current 40%–50% price premium. We have not yet achieved a major cost breakthrough, and we recognise the associated launch risk. The initial product uses c old sealing, which is convenient for users because it does not require specialised equipment. For larger, more price -sensitive customers, we are also developing a heat -sealed version that may reduce product cost, although it would require the customer to u se heat-sealing equipment. We did not proceed to launch until extensive customer trials had been completed and the Food Services team was satisfied with the results. The initial facility is expected to require an investment of less than ₹2 crore. The princ ipal investment relates to automated coating and gluing equipment, while existing equipment will be used for moulding.

06:41 Our priority is to uphold Pakka’s commitment to product excellence. We do not want to introduce a product befo re it is fully validated. The market is price -sensitive: customers recognise the value but also expect a competitive price. We are therefore working to achieve the appropriate balance between performance and cost.

07:13 My second question con cerns net sales realisation in the paper segment. The presentation has not disclosed paper volumes for the past several quarters, and the current quarter appears to include approximately ₹6 crore–₹8 crore of trading activity, based on the chat response. Co uld you separately disclose manufactured-paper volumes and trading sales so investors can calculate NSR? How has NSR in the paper segment developed over recent quarters, and what is management’s outlook for the next two quarters?

08:11 You're on mute.

08:13 Apologies. Could you please repeat the question?

08:19 The paper segment recorded approximately ₹117 crore of sales. I understand that this includes approximately ₹6 crore–₹8 crore of trading activity. Could you provide the tonnage sold or produced during the quarter?

08:38 Dividing sales by tonnage would allow investors to estimate NSR—for example, ₹80 or ₹85 per kilogram. How has this measure evolved over recent quarters, and what is your outlook for the next two quarters?

08:51 The trading and outsourced-manufacturing business continues to grow, and additional partners were added during the quarter. We intend to increase outsourced capacity from approximately 300 tonnes per month currently to approximately 800–900 tonnes per month over the coming quarters. I hope this addresses your question.

09:38 Mayank, the question is different. In the interest of time, I will respond. Jeet, this is a useful suggestion . Sachin, please include volume data in future presentations so that investors can more easily calculate NSR.

09:38 And so, what is the N.S.R.?

09:57 Jeet, NSR has remained under pressure, primarily because of geopolitical dis ruption. Export containers, which generally carry a higher NSR, were delayed. Conditions are gradually stabilising, and we are expanding into other countries and applications. Development of specialised applications has also progressed more slowly than expected, resulting in a higher mix of relatively commoditised grades. We need to improve both areas. We will consider reinstating volume disclosures in the presentation so that investors can assess average NSR. Given the broad product range, we continue to f ocus primarily on contribution and contribution per machine hour, although NSR remains a useful indicator of the direction of the product mix.

11:28 Thank you so much. Thanks.

11:29 Thank you. Mr. Adwait, you can ask your question.

11:37 How does the expected cost of the compostable flexible -packaging material under development compare with conventional flexible packaging currently available in the market?

11:55 There is no single absolute c ost because sachets and other flexible -packaging applications differ in thickness, barrier requirements and performance specifications. We therefore benchmark costs on a square -metre basis. In the targeted applications, petroleum -based substrates generally cost approximately ₹16 –₹18 per square metre, whereas our current target is approximately ₹24 per square metre. This cost gap is why we are initially launching flexC base rather than a fully barrier -coated substrate while continuing to develop the coating chemistry. The principal cost challenge is not the base paper but the high price of bio -based barrier chemicals. We are exploring strategic alliances and local manufacturing in India, including the possibility of partners establishing production within our facility. Our objective is to reduce the cost toward approximately ₹18 per square metre, at which point the customer discussion can shift from price to product performance and value. Pakka Limited | Q1 FY2026–27 Earnings Call Transcript |

14:08 As production scales from next year, do you expect margins to be affected during the initial phase?

14:21 Margins must be protected for both flexC base and coated flexC products. Coating also requires additional capital investment in a coater, so the economics must support that investment . We will therefore target a portfolio of applications that enables the business to maintain appropriate margins.

15:11 Does this mean the product portfolio will progressively move from base grades toward increasingly specialised categories?

15:18 We consider all the targeted products specialised, although the degree of specialisation will increase over time.

15:23 Thank you.

15:26 Thank you. Darshil, please proceed with your question. Darshil 1 15:34 Thank you for allowing me to rejoin the discussion. The chat response indicated FY2026 –27 revenue guidance of approximately ₹500 crore. Could you confirm that guidance and also clarify the expected effective tax rate?

15:35 Yes. Darshil 1 15:53 The reported tax rate has varied between approximately 22% and 30%. Could you reconfirm the FY2026 –27 revenue guidance and the expected tax rate?

16:08 Himanshu. Darshil 1 16:09 Thank you.

16:13 We achieved revenue of approximately ₹120 crore in the first quarter. Based on the response provided in the chat, ₹500 crore appears to be a reasonable revenue guidance, considering the growth in CHUK and PM4 coming into operation. As regards the tax rate, the Company is under the 22% tax regime. After applying the 12% surcharge and 4% health and education cess, the effective rate is approximately 25.69%, subject to applicable adjustments, allowances and disallowances. Accordingly, the effective tax rate is expected to be approximately 26%.

16:57 The effective tax rate may vary between approximately 26% and 28% depending on tax adjustments, allowances, disallowances and the timing of certain interest payments. The Company is under the 22% base tax regime, with the applicable surcharge and cess taking the effective rate higher.

17:20 Health and education cess applies on top of the tax and surcharge. Darshil 1 17:23 Do Pakka’s environmentally friendly and non-plastic products qualify for any incentives or other support that could strengthen their position in export markets? Also, when the Company refinances its debt, could lower-cost climate or sustainability-linked financing be available internationally?

17:58 You are right. While we were working on the US project, there were discussions regarding lower -cost debt from climate funds. However, obtaining such financing may take approximately one year.

18:18 Lower-cost financing, including climate-fund options, can be considered when the present structure is refinanced. For the next approximately 14–16 months, however, our principal focus must remain on operational performance. Darshil 1 18:21 I was referring specifically to the refinancing stage. Could such financing materially reduce the Company’s cost of debt?

18:42 International climate financing also involves foreign -exchange and hedging costs. After taking those costs into account, the effectiv e rate may be comparable. Nevertheless, the point is well taken, and the finance team will evaluate these alternatives as part of the refinancing exercise. Darshil 1 18:48 That's really helpful. So, that's it from my side. Thank you so much.

19:03 Thank you. Mr. Raghav, please proceed with your question.

19:10 I would like to understand the Food Services manufacturing model. What is currently manufactured in-house, what is outsourced, and how will that mix change as volumes scale approximately tenfold? Given the planned geographical diversification of manufacturing to reduce freight and overhead costs, could you outline current monthly volume, the split between internal and outsourced production, and the long-term scaling plan?

19:55 Product allocation between in -house and outsourced facilities is determined by mould availability, demand and geography. Our principal facility is in northern India, so it primarily serves northern and eastern markets. Proprietary technologies will continue to be manufactured internally. Current total production is approximately 350 tonnes per month.

20:33 Of this volume, approximately 180 –200 tonnes per month are produced internally, with the balan ce supplied by outsourced sites. We expect to add approximately 400 tonnes of outsourced capacity over the next two quarters.

20:48 The additional capacity will be distributed across northern, western, southern and central India, helping to optimise freight costs. Product allocation will be driven by the location of demand: western and export requirements will generally be served from the west, southern demand from the south, and other markets from the nearest appropriate facility.

21:22 As volumes scale approximately tenfold, what proportion of manufacturing is expected to remain in -house and what proportion will be outsourced?

21:31 The majority of it will be outsourced. I would say as we grow, probably 20% in the long run will be in-house and the remaining 80% will be outsourced.

21:32 How will intellectual property be protected if most manufacturing is outsourced?

21:47 The principal intellectual property relates to specific proprietary technologies, including delivery containers, which will continue to be manufactured internally. For the remainder of the portfolio, we use customised moulds and designs, and outsourced manufacturers operate under exclusive contractual arrangements.

22:07 We generally contract the entire outsourced facility rather than a small portion of its capacity. These arrangements are structured as renewable three-year contracts.

22:25 Should investors understand that intellectual property will be protected both through contractual safeguards and by retaining proprietary production in-house, while outsourced volumes will predominantly comprise less IP -intensive products?

22:45 Yes. Both elements form part of the model.

22:52 My second question is a follow -up on flex C base pilot trials. What types of customers are participating, what evaluation parameters are being applied, and what volume will be produced during the trials?

23:17 The initial pilots focus on segments that already use comparable base pa per. The flexC base can be coated with silicone, barrier coatings or polymer-based structures, depending on the application.

23:35 Because the paper has low porosity, it is expected to require less coating material. Initial applications inc lude release liners, labelling and heat-sealable bags. For example, a translucent sugar sachet could allow the consumer to see the product inside, unlike conventional white or brown paper sachets.

24:20 The converter will decide which barrier material to apply, including whether to use polyethylene.

24:41 The base structure will remain compostable. It is designed to reduce the amount of barrier material required while delivering a differentiated consumer experience.

25:00 The product will initially be sold through distributors as a market grade for coating applications and will progressively evolve toward broader flexible-packaging applications.

25:17 What is the production scale of the pilot trials?

25:18 Thank you.

25:23 The plant is designed for approximately 30,000 –40,000 tonnes of annual production, depending on the product grade.

25:31 I am referring specifically to the scale of the pilot trials scheduled for August and September.

25:34 Manoj, approximately how much material have we sent—around four tonnes?

25:41 Yes, approximately four tonnes.

25:43 We have supplied approximately four tonnes of pulp. After process losses, we expect to produce approximately two tonnes of trial material for distribution to multiple converters.

25:45 Understood. Thank you.

25:57 Thank you, Mr. Raghav. We will take the final question from Ms. Neelu Singh. Please proceed.

26:06 Were any one-off bank charges recognised during the quarter in connection with repayment of the bank facilities?

26:18 Yes. Under Ind AS, prepayment penalties and processing fees relating to a loan are generally amortised over its tenure. Since the bank facilities were repaid, the remaining unamortised amounts were written off. The related finance charges included amounts of approximately ₹1.53 crore and ₹1.8 crore, which were recognised in the profit and loss account in accordance with the applicable accounting standards.

26:52 The chat response indicated estimated FY2026–27 interest outflow of approximately ₹55 crore and depreciation of approximately ₹28 crore, aggregating to ₹83 crore. Approximately ₹9 crore has been recognised in Q1. Does that imply a balance of approximately ₹74 crore for the remaining nine months?

27:24 That comparison is not like-for-like. The chat response referred to interest outflow for the year. Interest attributable to PM4 will generally be capitalised until the asset is commissioned and therefore will not immediately be charged to the profit and loss account.

28:07 The aggregate charge to the profit and loss account is expected to be approximately ₹30 crore to ₹34 crore.

28:12 Understood. In FY2027–28, will the relevant interest and depreciation charges then be recognised in the profit and loss account?

28:19 Yes.

28:21 If FY2027–28 includes approximately ₹70 crore of interest and ₹50 crore of depreciation, the aggregate would be ₹120 crore. At a 20% EBITDA margin, would the Company require revenue of at least ₹600 crore merely to break even?

28:26 A 20% EBITDA margin may appear optimistic, but the Company achieved margins around that level in FY2020 – 21, FY2021–22, FY2022–23 and FY2023 –24, including the period affected by COVID -19. We therefore believe that level of performance can be repeated. Based on the current quarterly run rate of approximately ₹120 crore, the FY2026–27 revenue objective of approximately ₹500 crore is considered reasonable. In FY2027–28, after PM4 is completed, utilisation of approximately 60%–70% could generate additional revenue of around ₹175 crore–₹200 crore. If the existing business reaches approximately ₹450 crore, consolidated revenue could be at least approximately ₹700 crore in FY2027–28. At that revenue level and a 20% EBITDA margin, the business should be above break-even.

29:46 What percentage of Q1 revenue was generated from exports?

29:54 Approximately 27%.

29:57 Thank you. That concludes my questions. Best wishes.

30:03 Thank you. We have reached the end of the scheduled time. Ved, would you like to make any closing remarks?

30:04 Thank you once again for your confidence in us. The team remains committed to developing regenerative solutions that leave the planet cleaner. We will continue to focus on volume growth, stronger profitability and long -term shareholder value. Thank you for your trust. We will continue working to deliver on our commitments.

30:41 Thank you, everyone.

30:44 Thank you.