Page 10 of 15: MORE CLARITY ON THE VOLUME AFTER Q1 or Q2
Question: Just wanted to understand after all these adjustments, will see volume growth under pressure for 1H at least of '26. So if we look at the full year, what kind of volumes we could end up with? What could be the realization like because the price hike benefit will go out after the first quarter? And some realization benefit will be there because of this restructuring which you
have done on the individual accounts. And secondly, what would be the margins, sustainable margins ahead because we did 23% this quarter. So FY '26, if I want to sum it up into volume growth realization and margins, then what it would look like?
Answer: Now since this rationalization exercise has been done in the last quarter, so this negative growth will continue at least for the first 2 quarters. And we can see some improvement in tonnage from the quarter 3 onwards. Since quarter 4 tonnage has been already dipped, we may show some good growth in the quarter 4. On a full year basis, again, the more clarity will come after the quarter 1 or quarter 2. So, depending on how the customer approach and all actually, we can give more clarity.
Page 11 of 15: REALIZATION AND MARGIN
Question: You mean 8% realization could be there for next year for FY '26?
Answer: Realization around 6% to 7%.
Question And what about margins, sir? This 23% margin, which we did in fourth quarter, how that could shape up in next year considering the volume trajectory and realization, everything?
Answer: See, volumes, again, the quarter 1, it will be maintained around at a good margin. But subsequently, what will happen, again, we have to consider some increment to the employee cost and other things. So based on that, the margins will be depending on these cost structures.
Question: So, any guidance you want to give, could it be like 20% range for the margin for this year?
Answer: Guidance can be more – clarity will come at least after quarter 2.