Q1 26/27

Jul 27, 2026

Quarterly report

Summary

Q1 FY27 revenue rose 2% YoY, while EBITDA and PAT margins fell to 18% and 11% amid input-cost pressure and pellet plant maintenance. Capacity, renewable energy and captive-mine projects remain on track.

Ladies and gentlemen, good day and welcome to Gallantt Ispat Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator or a PressInter staff by pressing zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Vanessa Fernandes from Adfactors. Thank you. Over to you, ma'am. Thank you, Shruti. Good evening, everyone. On behalf of Gallantt Ispat Limited, I welcome you all to the earnings conference call for quarter one FY2027. Today on the call, we have with us from the management, Mr. Dindayal Jalan, Vice Chairman, Mr. Mayank Agarwal, Chief Executive Officer, and Mr. Amit Jalan, Chief Financial Officer of Gallantt Ispat Limited. We will begin the call with brief opening remarks from the management, followed by a Q&A session. Please note that certain statements made during this call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or projections to differ materially from those statements. Gallantt Ispat holds no responsibility for any actions taken based on such statements and undertakes no obligation to publicly update these forward-looking statements. I now hand the call over to Mr. Dindayal Jalan for his opening remarks. Over to you, sir. Thank you, Vanessa. Good afternoon, ladies and gentlemen. A warm welcome to Gallantt Ispat's Q1 FY27 earnings conference call. Before I come to our own numbers, let me set some industry context because I think it has a direct bearing on how this quarter should be read. The first quarter of any financial year tends to be a seasonally softer one for the domestic steel industry on account of the monsoon, and this year was no exception. Construction and infrastructure activity slowed through the quarter and long product prices, TMT and rebar in particular, which had opened the year on a firm note, corrected quite meaningfully as the quarter progressed. This is not something specific to Gallantt. Several of our larger peers have also called out a sharp correction in long product realization this quarter, even as flat product prices held up somewhat better. Because Gallantt is predominantly in a long products business serving the construction and housing markets of Uttar Pradesh and Gujarat, this seasonal correction in TMT pricing weighed more directly on us this quarter than it would on a more diversified player. On the raw material side, coal and iron ore costs firmed up industry-wide during the quarter. Ongoing geopolitical tensions, including the conflict in the Middle East, added further pressure on global freight, shipping, and energy-linked costs. This was compounded in our own case by the planned annual maintenance shutdown of our pellet plant, which required us to procure a great share of our iron ore from the open market at a higher cost than our normal captive route. On the policy front, India turned a net importer of steel during the quarter, with imports rising as certain cargoes originally intended for other markets found their way here. Also, imports under some free trade routes increased. The industry, along with the government, has sought anti-dumping measures to address this alongside the existing safeguard duty, and this is something we will continue to track. Against this backdrop, our Q1 FY27 performance was steady on a sequential basis, even as it was lower than the particularly strong quarter we reported a year ago. We closed the quarter with an EBITDA margin of 18% and a PAT margin of 11%, both broadly in line with what we delivered in quarter four FY26, though below the 23% and 15% we had reported in Q1 FY26. Input cost inflation led by coal and temporary import of our own pellet plant shutdown weighed on year-on-year profitability. What we do take comfort from is that quarter on quarter, our operating performance held its ground, which speaks to the resilience of our integrated model, even though a seasonally and cyclically difficult quarter for the industry. The medium-term demand picture for Indian steel remains intact. Domestic steel demand is still expected to grow in the range of 7%-9% this year. Government infrastructure spending and the construction cycle remain multi-year. Hello. Remain multi-year theme. Just one second. Historically, pricing in the construction steel segment has recovered as the monsoon recedes and activity picks up from September and October onwards. We would expect a broadly similar pattern to play out this year. On our own initiatives, there is no change of direction. As I had mentioned on our last call, FY26 was a year of consolidation for us, and FY27 was always meant to be the year in which our expansion begins to show in the numbers. That remains on track. Our capacity expansion from 1 million to 1.23 million tons, part of our INR 3,000 crore CapEx program, continues to progress well and remains on course for commissioning in the second half of this financial year. Our renewable energy initiatives at Gujarat and Gorakhpur, together about 85 megawatts, are progressing as per their respective timelines. On the raw material security side, work continues on our captive iron ore blocks in Rajasthan and Uttar Pradesh, with FY28 remaining our internal target for these to become operational. Let me also touch briefly on capital discipline. Gallantt continues to be a net cash surplus company with no term loans, and our ongoing CapEx continues to be funded entirely through our internal accruals. With that, let me hand over to Mayank to take you through the operating performance and the four pillars that drive our growth in more detail. Over to you, Mayank. Thank you, sir, and good afternoon, everyone. Let me begin with a brief word on the industry before coming to our own performance across the four pillars. The global steel industry continues to be impacted by excess production in China and weak demand from its real estate sector. However, demand in China appears to be stabilizing, and recent efforts to control production capacities are expected to support global steel prices over time. Domestically, as sir has already outlined, the first quarter is a seasonally softer one, and this year was no different with TMT prices well below where the quarter began. Let me now take you through our four pillars. On volume growth, which is our first pillar. TMT bar sales volume were broadly flat on a year-on-year basis at around 192,000 tons, though down about 8% sequentially against a strong Q4. Sales of pellet and sponge iron were lower, both year-on-year and sequentially. This was primarily due to higher captive consumption to support our downstream DRI and steel making operations, along with the planned annual maintenance shutdown at the pellet plant and not because of any weakness in external demand. Billet volumes, by contrast, grew 13% year-on-year and 38% sequentially, running well ahead of our internal plans for the year. One area we are watching closely is the utilization of rolling mill unit at our Kutch facilities, which was at around 66% capacity utilization, which continues to trail in comparison to Gorakhpur's capacity utilization, which is 93%. Improving this will be a specific area of focus for us in the second quarter. On the expansion itself, FY 2026 was a year of consolidation and the benefits of our 1.23 million ton capacity, out of which 0.23 is under expansion, are expected to flow through from the second half of this year post-commissioning. We remain on track on that front and there is no change to that timeline. The second pillar being the cost efficiency and integration depth. Raw material cost was up 9% year-on-year, outpacing our revenue growth of 3% and was also up modestly on a sequential basis despite lower sales volume. This was driven primarily by higher coal prices, compounded by the impact of the ongoing geopolitical tensions, including the Middle East conflict on global freight and input costs. In our own case, the planned annual shutdown of our pellet plant reduced in-house pellet availability and required us to procure from the open market at a higher cost than our normal captive route. With the shutdown now complete, we expect this pressure to ease and the plants to run to normal captive route, normalize utilization in the coming quarter. Employees' cost increased 24% year-on-year, primarily driven by the full year impact of the employee cost for the DRI plant commissioned last year as the corresponding period last year reflected only a partial cost base. The increase also reflects the strengthening of our senior leadership and board as part of our broader corporate governance and technology upgrade, along with the annual salary revision effective April 26th. Our integration model from pellet to sponge iron to billet to TMT continues to provide a structural cushion relative to non-integrated players, and debottlenecking work at our Gujarat unit continues as planned and remains on track for completion within this financial year. The third pillar, which is the margin expansion. EBITDA for the quarter stood at INR 203 crores compared to INR 209 crores in Q4 FY26 and INR 254 crores in Q1 FY26. EBITDA per ton was INR 8,787, broadly in line with the previous quarter. While both these metrics were lower year-on-year, this was primarily due to higher raw material costs and the impact of our planned shutdown of pellet plant rather than any change in our operating performance. The fact that we were able to sustain margins sequentially despite a seasonal weaker quarter and elevated input costs gives us confidence in the strength of our business model. In addition, lower finance costs driven by reduced borrowings and higher interest income helped support profitability at the PBT and PAT levels. Our renewable energy program, 18 megawatt at Gujarat and 67 megawatt at Gorakhpur, remains on track for commissioning in Q2 and Q4 respectively of the current financial year and will be a structural and cost side lever once operational. The fourth pillar is the capital discipline. While there is no change to report, we remain free of term debt and our CapEx continues to be funded through internal accruals. Our cash balance was down 20% sequentially alongside a buildup in receivables and inventories. This is constant with the production and billing profile of the quarter rather than any shift in our capital allocation approach, and we would expect it to normalize as volumes and collections pick up. Let me take you through our financial performance for Q1 FY27 now. The revenue from operations for the quarter stood at INR 1,146 crores, up 2% from INR 1,128 crores in Q1 FY26, while lower than INR 1,205 crores in Q4 FY26. The quarter-on-quarter decline was largely due to lower external sales of pellet and sponge iron, reflecting higher captive consumption along with slightly lower TMT volumes. EBITDA for the quarter was INR 203 crores with an EBITDA margin of 18%. This was broadly in line with INR 209 crores and a margin of 17.3% in Q4 FY26, though lower than INR 254 crores and a 23% margin in Q1 FY26. EBITDA per ton stood at INR 8,787 per ton compared to INR 8,882 per ton in the previous quarter and INR 11,068 in the corresponding quarter last year. Profit before taxes for the quarter stood at INR 165 crores compared to INR 162 crores in Q4 FY26 and INR 216 crore in Q1 FY26. Profit after taxes was INR 124 crores with a PAT margin of 11%, compared to INR 123 crores and a PAT margin of 10% in the previous quarter, and INR 174 crores with a margin of 15% in Q1 FY26. The stable quarter-on-quarter performance was supported by lower employee costs, lower other expenses and a meaningful reduction in financial cost. We remain net debt free as of June 30, 2026, with borrowings continued to be limited to working capital facilities availed in the normal course of business. Cash balance was lower than the previous quarter alongside a buildup in receivables and inventories consistent with the quarter's production and billing profile. CapEx during the quarter was INR 137 crores. We continue to expect our balance sheet to remain strong through FY27. Internal accruals remain our primary source of funding for the current CapEx programs, and we will only evaluate debt or equity where appropriate, particularly as we firm up with the medium-term growth plan that we look forward to sharing with you next quarter. With that, I will now hand back the call to the moderator to open the floor for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Paresh Desai from Sankalp Adventures. Please proceed. Mr. Paresh, you may ask the question. Due to no response from the current participant, the next question is from the line of Divij Agarwal, an investor. Please proceed. Yeah. Hi, sir. Am I audible? Yes. Yeah. Hi, sir. Thanks for taking my question. Sir, just wanted to know your sourcing strategy for iron ore and pellets, and can you also list down the top suppliers and their contribution? Hello, Divij. Hope all is well. We have two units. One is in U.P. and one is in Gujarat. Both the sourcing patterns are different, considering one is inland and one is on the seaport. For Gorakhpur unit, we are broadly dependent on three sources of supply. One is Odisha Mining Corporation from Odisha. Second is some concentrate from Madhya Pradesh region where there are multiple suppliers, not a specific big supplier, depending on the pricing. The third source is Lloyds from Maharashtra. Depending on the price mechanism, pricing, and the quality, et cetera, we derive the mix ratio for our input to pellet plant, that is iron ore fines. Whereas for coal, all the Indian coal that we require at our Gorakhpur unit for power plant is 100% through linkage with Coal India. Whereas for DRI, we are using about 60%-70% of Indian coal and the rest is imported South African coal. For imported South African coal, we have two mine owners with whom we are dealing, specifically looking at the quality, et cetera. The said deals are being done by a Japanese firm, which goes by the name Itochu. For the rest of the coal of Gorakhpur unit, it is 50% of the processed coal is also through linkage, and the rest is from open market, which is from varied sources. If we talk about Gujarat unit, for power plant, we are sourcing Indonesian coal from either Mundra and Kandla Port, which are just 50-60 kilometers away from the plant location. There are no specific Indonesian coal suppliers that we are dealing with. There are Adani, Swiss Singapore, many such suppliers who are very regularly working on that port. Depending on the price dynamics and the offers available, we take a call on that. Besides Indonesian coal, a good portion of lignite, locally available lignite coal is being blended to control the costing of the power plant. In the process side, we are using 100% South African. South African coal is being sourced through foreign traders again there, just like in Gorakhpur, and are varied sources of varied sourcing companies are there. Depending again on the commercials, we take a call. Right, sir. Got it. Thanks for the detailed answer. Just a follow-up on that, sir. Yeah. As you mentioned that you also procure iron ore from Lloyds. I believe Maharashtra, in its geographical nature, ideally has a higher phosphorus content. I believe the iron ore from there may also have a higher phosphorus content. How do you deal with such higher phosphorus iron ore? Because you also procure from other companies as well. Do you mix or is it like that you can use a high phosphorus iron ore to make a particular product? Or do you specially make that? No. Currently, Lloyds has two types of material available with them. We are sourcing lower phosphorus iron ore from them, and the percentage is not very high in terms of our product mix of pellets. It is not such a big issue for us in terms of phosphorus. Right. Approximately how much quantity do you procure, if you can say that, sir? The entire dynamics, I think it would be somewhere around 15%-20% of the entire mix that is coming from Lloyds. How much is the capacity you have? In tons, the installed capacity of pellet plant is about 8 lakh tons, and we require about 9 lakh tons of raw feed, 9-9.5 lakh tons annually of raw feed. If we say 15%-20%, it is hardly about 15,000-20,000, 15,000 tons a month, which is not very much. Got it. Got it, sir. Just to understand the industry nuance, if a company uses a high phosphorus content iron ore, right? Yes. Right. So can they make a particular product from high phosphorus or do they necessarily need to mix it with a low phosphorus iron ore as well? There are two ways to do it. Either we can blend it with the low phos and high phos, because ultimately the output of the pellet plant in terms of phos is what matters, because that is what goes into steelmaking. So one way of controlling it, as you mentioned, is to blend it with other products and make it good for the input as a steel unit. The second way is also there, where we can refine it during the steelmaking process through ladle refining furnace to control phos. So it depends on the commercial aspect of it as to whether the refining is cheaper or whether to source low phos iron ore is cheaper. Got it, sir. Got it. Next, I just wanted to know if your furnace is a blast furnace or is it an electric or induction furnace? Electric induction furnace. Okay. For that, you may also need a ramming mass, right? If I'm not wrong. Yes, correct. Yeah. In your region, who are the particular players from whom you can procure the ramming mass? Because I believe Raghav was a listed player who operates in that industry. Right? Okay. So, yeah. Just wanted to get a sense. We have three, four suppliers which are not listed and who are providing good quality to us, and they are broadly based in Rajasthan and Chatrapat. As of right now, I don't have the names in place in front of me, but none of them are listed. Sure, sir. Got it. No issue. Thanks a lot for answering all my questions, sir, and all the best. Thank you. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Vignesh Iyer from Iyer Family Office. You may proceed. Thanks for the opportunity. I have two questions. Firstly, what is your CapEx plan for FY 2027 and beyond, and how do you intend to fund it? Secondly, what initiatives have been undertaken to strengthen Gallantt's market position in Uttar Pradesh and expand into adjacent markets? Thank you, Vignesh, for a very important question here. The current CapEx plans, ongoing plans are of about INR 3,000 crores, out of which approximately INR 800 crores has been spent over the last year and the first quarter of this year. This entire INR 3,000 crores CapEx is broadly divided into three buckets. Approximately half of it is going into mining development, where three iron ore mines has been sourced by the company last year, two in UP and one in Rajasthan. So exploration and development of mine along with a beneficiation plant at UP and a beneficiation cum pellet plant at Rajasthan is what is proposed to be done on these mines to try and integrate both the units captively with the iron ore, so that the dependence on the market is removed. All these units are expected to commence production from FY 2028, and the exploration activities, et cetera, to define the beneficiation plant is underway. The second bucket is the solar generation, where 85 megawatt solar is being installed, out of which 7 megawatt of a small piece trial plant was already commissioned last year. 18 megawatt being installed in Gujarat would be commissioned in Q2 this year itself, very soon, next month. 60 megawatt being installed at UP for the Gorakhpur unit is proposed to be commissioned in Q4 and is in line currently with the schedule. The third aspect is the capacity addition, where we are enhancing our capacity from 1 million to 1.23 million. That is about 23% of growth, which is expected to commission in the current year, H2 itself. All these CapExes are funded by internal accruals. We do not seek to obtain any term loan on the same. With regard to the market in U.P., specifically in U.P., I think you mentioned, so we already enjoy a very good market share of more than 25% in U.P. from the addressable market. In our region where we operate, it is a well-known product. From the last four years, a lot of marketing and branding initiatives have been taken up by the company, wherein film star celebrities such as Ajay Devgn was engaged as a brand celebrity four years back, and continuous promotional activities has resulted into better demand and realization scenario, which gave us the strength to enhance the capacity as most of this capacity enhancement is happening at our Gorakhpur unit. Of late, company has also roped in Janhvi Kapoor as a second celebrity for brand endorsement. We wish to continue this effort of further enhancing our brand visibility all across India, and slowly and gradually move to other markets as well in times to come, as in how we grow our capacities. Hello. Yeah, got it. Yeah, thanks. Thank you. The next question is from the line of Anirudh Sharma from Ekant Investment. Please proceed. Hi. Good evening. Am I audible? Yes. Yeah. Hi. My first question is, are we looking to enter the export market? Construction steel, it is difficult to enter export market because logistically it's not very suitable. Also Gorakhpur unit being an inland unit, we do not see the opportunity of export. However, from Gujarat on and off during the year, there are a couple of occasions where billets may get exported, but it's not a regular phenomenon, and we are not broadly looking at that. Okay, sir. Okay, understood. My second question is, what are the key drivers behind our margins, and are the margins sustainable? If we see the performance of the last year, the margins have been somewhat very stable in all the quarters where it has been around 17%-18%, and the trend is continuing. The reason behind it is majorly the end-to-end integration that we have right from pellet to TMT here in Gorakhpur unit and sponge iron to TMT in Gujarat unit, where the sale of semi-finished products is very negligible in terms of quantities. So end-to-end integration is the primary focus there. Secondary is that because of no term loan, there is no financial burden on the company, which gives us the advantage to maintain our EBITDA margins there. It is definitely sustainable. We have little bit of dent because of the geopolitical situation, but despite that, in the last quarter, we have been able to maintain our EBITDA percentages. Going forward with the solar kicking in and which will be a good lever to reduce cost and in FY 2028 mines coming into operational. In the longer term, we are all set to further improve our margins and not just maintain them. Okay, sir. Understood. That's it from my side. Thank you for your opportunity. Thank you. Thank you. The next question is from the line of Neha Dalal, an individual investor. Please proceed. Good evening, sir. Thank you for the opportunity. I just wanted to understand briefly on the industry outlook. Since India briefly flipped to a net steel importer despite our safeguard duties, has Gallantt seen any competitive pressure in U.P. or Gujarat rebar markets? Is this purely a flat product phenomenon or does it affect long steel products as well? Sorry. Can you repeat the second part of the question? Yeah. Am I audible? Yeah. You are audible. Yeah. I am just saying, are we seeing this as a flat product phenomenon, or is it also affecting our long steel products business? Any decline or increase in the steel prices in general affects the other products as well. Whenever a flat product is affected, to some extent, domestic long products are also affected. But since the domestic demand is very strong, where even the current projections show that India is able to handle and face the geopolitical scenarios currently, and the demand drivers are still projecting that India's steel consumption and demand would grow at 8%-9%. We do not see a problem in terms of demand on the longer term. Of course, Q1 and Q2 would see muted demand as every year is expected, especially in long products because of the monsoon. But on a longer term basis, we are very optimistic with the steel sector in general in India with the kind of infrastructural spending, urbanization, and all the kind of developmental work which is going on, especially in the two states that we are located, which are the most progressing states of India currently, that is U.P. and Gujarat. We do not see a very major problem in the long run in terms of demand side. Yes, but in the short term because of the monsoon, they will keep affected as it is expected. Understood, sir. That was very helpful. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of Nayan Gala from Arthya Wealth. Please proceed. Yeah. Thank you for the opportunity. Good evening, everyone. Sir, just wanted to understand on the progress that we are on for the captive iron ore mine project that we have. What are the expected timelines as to how fast it can be open for us, seeing that our raw material cost is also under control. Yeah. Good evening, Nayan. As we already discussed, currently the status is that all the three mines are under exploration, and the geological explorations are going on. The results are good. With these explorations, all these three mines are going parallel as and how the explorations will complete. In U.P., we are expecting them to complete in the next 2-3 months, and in Rajasthan maybe in 6 months. In U.P., both the locations we are already proceeding with the environment and the forest clearances, et cetera, is ongoing. Broadly, the timelines that we have set are very aggressive, but we are on the timeline, and that is to commission these mines by FY28. While those targets are aggressive, considering the government regulatory involvement in the mining sector, currently we are on track to make it operational in FY28. All three mines put together, the timeline that you are setting is for FY28. Correct. Okay. I guess you also highlighted that one of the mines currently that you are exploring will be operational in the next couple of quarters. Hopefully something in FY27. No. All three mines will broadly be operational in FY 2028 only. Okay. Currently, the exploration work is going on. As per the stage of the project, we are in line with our projections to commission it in FY 2028. Okay. Sir, I just wanted to understand on the outlook for iron ore and coking coal prices. How it has moved and what is the expectation in the coming quarters, and how it can have an impact on our margins. While we do not consume coking coal, we consume thermal coal, and definitely it has made a dent where the 9% raw material jump that we see on a year-on-year basis in the balance sheet is basically driven by two factors. Half of it is because of our pellet plant being under shutdown. Broadly, 4%-5% is the impact on the raw material pricing, both iron ore and coal put together at both the locations. In order to break it down, the major impact is in the coal because in iron ore, the major impact is only in the logistics cost due to sea freight, due to geopolitical situations. But fuel prices, as and how oil prices go up and the tensions soar, the fuel prices go up. That is slightly a challenge. Despite those challenges, we do not see any substantial EBITDA erosion in the entire year that we are looking at. Understood, sir. Thank you so much, sir. Thank you. I will unwind the queue. Yeah. Thanks. Thank you. Thank you so much. Thank you. The next question is on the line of Krisha Shah from Shah Family Office. Please proceed. Hello. Good day, sir. Good afternoon. I have a couple of questions starting with how do you see the domestic steel demand evolving for the rest of FY 2027? What is the potential over there for us? So, as we already discussed, Krisha Shah, that we see strong domestic projections of growth of 8%-9% and with the government targeting to produce 300 million tons of steel to meet India's growing demand by 2030, and we are still currently at 160 odd millions of outputs in the last FY. Overall, apart from these muted two quarters, that is Q1 and Q2 due to monsoon, we do not see a very big problem in sales or in the demand side. And also because we have worked a lot on our branding activities and marketing activities, where Gallantt is a very reputed name in our addressable market. We do not see any challenges on that front. Okay, sir. That gives a clear picture on the demand side. On the prices of this TMT steel. How is the outlook for the coming quarters? Next quarter will definitely, I mean the quarter 2 is definitely going to be muted because this is a full monsoon time. And let's wait and watch for Q3 and Q4. It should be good. That is what I expect because in no figures or nowhere domestically in terms of growth and infrastructure spending, nothing has gone down because of any tensions whatsoever is going on in the world right now. If the urbanization and the infrastructural projects, the way they are going, continues to go so, which I believe would do, we do not see a problem and as we see every year Q3 should pick up, Q3 onwards. Okay, sir. That's it from my side. Good day to you as well. Thank you. Thank you for joining. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Mayuresh, an investor. Please proceed. Yeah. Can you hear me, sir? Yeah. Hello, Mayuresh Ji. How are you? Good, sir. My question is, EBITDA per ton has fell. What is the reason for it? Is it the one-off thing due to pellets, or is it a structural raw material price hit? The EBITDA margins have not. If we talk on year-on-year basis, definitely it has been impacted. But if we see the last year's average, or if we see Q4 versus Q1, it is more or less in line with the averages. Even the last year, the company's overall EBITDA was between 17%-18%, and Quarter 4 was also 18%, and we continue to do that in Quarter 1 this year itself. I mean, on a yearly average basis, FY 2026, the EBITDA was somewhere around INR 8,800, and even today it is somewhere around INR 8,700, despite the pressure on the raw material side. I think that this is good that we are able to sustain our EBITDA margin despite the pre-monsoon and despite the price decrease and despite the pressure on the raw material side. Okay. Yes. Thank you, sir. That was it, sir. Thank you. Thank you so much. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask your question. The next question is on the line of Paresh Desai from Sankalp. Please proceed. Yes, please. My first question is, FY 2026 consolidated revenue grew only 2.9%. Yes. Even the 5-year CAGR is seated nearer 34%. What specially caused the sharp deterioration, and why the price will be belief Quarter 1 FY 2027 volume pricing support are written that to double-digit growth? Sorry, that question was about revenue decline from a year-on-year basis, right? Yes. That is on a marginal 2.5% of revenue decline, nothing substantial, I would say. With the capacity additions coming in H2, we are all set that this year the volumes are going to be much higher. The reasons we have already discussed that the impact in the last quarter is primarily due to a couple of things, that is pellet plant shutdown and a few other things. I think this is not a major impact. However, EBITDA year-on-year is already we have discussed it's gone down, but we are in alignment with the yearly averages. Okay, thanks. Yeah. Thank you. Thank you. As there are no further questions from the participants, I now hand the conference over to Ms. Vanessa. Over to you, ma'am. Thank you, Shruti. Thank you, everyone, for participating in Gallantt Ispat's Quarter 1 call for FY 2027. I thank the management also for their time on the session. We look forward to everyone's participation in the next call as well. Have a great evening ahead. Thank you. Thank you. Thank you. On behalf of Gallantt Ispat Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.