Cosmo First Ltd (NSE: COSMOFIRST) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Neeraj Jain — Chief Financial Officer
Pankaj Poddar — Chief Executive Officer
Analysts:
Unidentified Participant
Rehan Syed — Analyst
Nirav Jimudia — Analyst
Aman Kumar — Analyst
Tushar Gupta — Analyst
Vipul Kumar — Analyst
Rajakumar Vaidyanathan — Analyst
Yashpal Madan — Analyst
Presentation:
operator
IT. SA. SA SA. Ladies and Gentlemen, good day and welcome to the investor call of Cosmo First Limited to discuss the Q1 FY26 earnings conference call. Today we have us with a Today we have with us from the Management Group CEO Mr. Bangaj Podar and Group CFO Mr. Neeraj Jain. Starting off with the statutory declaration, certain statements and the conference call may be forward looking. The statements are based on the management current expectations and are subject to uncertainties and changes in the circumstances. These statements are not the guarantees of future results. 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 by pressing Star Sign zero on attachment phone. Please note that this conference is being recorded now. May I request Mr. Neeraj Jain to take us through his opening remarks, subsequent to which we will open the floor for Q and A. Thank you and over to you sir.
Neeraj Jain — Chief Financial Officer
Thank you. Good afternoon ladies and gentlemen and thank you for joining us on Cosmo June 2025 Quarter Results Conference Call Our financial results for the June 25 quarter and investors presentation. Both are available on company’s website. Hope you could go through the same. We’ll begin this call with a brief opening remarks from the management which may be followed by the questions. So first talking about the financial results for the quarter. Consolidated sale for the June 25 quarter is 800 crore rupees which is higher by 16% from June 24 quarter primarily on the back of higher volume by 19% and higher BOPP margins.
The EBITDA for the quarter has increased to 116 crore rupees compared to 84 crore during June 24 quarter. The improvement in EBITDA is backed by four primary factors higher volume by 19%, better BOPP SUN margins, improved cost rationalization by about 4 crore rupees and enhanced performance of our specialty chemical subsidiary by close to 4 crore rupees. BOPP for margins has been running close to 25 rupee per kg during June 25 quarter as against 21 rupees per kg March 25 quarter and 19 rupee per kg in June 24 quarter. During June 25 quarter. The company has commissioned two key assets.
First, new BOPP line with annual capacity of close to 81,000 metric ton which started operations from June beginning and added close to 45% of company’s BOPT capacity. Second is Window Film Line which started operations in May 2025 under brand Sunshi and has gained momentum with more than 50 distributors moving to Outlook, the company has invested in key packaging assets over last three years including bottom line, CPP line, window film line and paint protection film. All these investments have started commercial production in recent months and should provide a significant ramp up in revenue as well as profitability in coming years.
The new film lines are one of the most cost efficient and should make Cosmo more competitive in the market. The company is growing specialty film sales by close to 10% CAGR growth over last six years and we expect this trend to continue for film business. In fact, the company’s focus will be on taking full leverage of new investments, grow specialty film sales and further push down the cost Moving to Specialty Chemical Subsidy the specialty chemical business continued to achieve traction and posted record EBITDA of 12 crore rupee on quarterly sales of 49 crore in quarter one June 25.
The business vertical should continue to grow backed by new innovative products and specialty films sales. Moving to Pet Care Ventures Zigbee Zigbee is all set for the next level of growth and should see higher momentum in FY26. The business model is moving more towards services and house brands which is a high margin business. Some Initiatives on ESG Recognizing need for sustainability and future preparedness, the company is taking several initiatives on sustainability which include initiatives like all plants are now partially using renewable power as the source of the energy in FY25, company has used more than 50% of its power consumption from renewable sources which we expect to further increase to about 2/3 in 1 to 2 years period.
Besides the environment, this also facilitates cost rationalization. Other initiatives include reduced power consumption through efficiency improvement, rainwater harvesting and many others. On that note, we conclude our opening remarks and would be glad to discuss any questions, comments or suggestions that you may have. I would now like to ask the moderator to open the line for questions and answers please. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question Q, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Rehan Syed from Tree Netra Asset Managers. Please go ahead.
Rehan Syed
Yeah, thank you for giving me the opportunity. I have couple of questions.
operator
Yes sir, you’re audible.
Rehan Syed
My first question is on the neop.
operator
I’m sorry to interrupt. I just requested to speak little louder please.
Rehan Syed
Sure. So My first question is around the bott line product mix Strategy. The new 81,000 million ton BOP line is already running nearly full within a full utilization within a month. So how soon will it have a. Higher efficiency in product mix and what specific operational customer initiatives?
Pankaj Poddar
Yeah, so the new Bopp line will ramp up to 100% capacity within the next two to three months. We, you know we will be filling up with speciality films over a period of time. So you know our objective is again to have more speciality mix even from the new line.
Rehan Syed
Okay, next I want some more understanding on the window in scope opportunity like with culture gaining quick domestic traction. International market or segment? Are you prioritizing and what would be your industry export contribution?
Pankaj Poddar
See our first is the target is the domestic market. We feel there is a very significant potential to make a brand here. And we have already started with certain ATL and BTL activities to create the brand. It’s starting of the journey. It will take its own time. And we are also looking at exports in multiple markets. To begin with our focus is Americas and Europe. So those are the two markets where we’ll the most to begin with. Also with the Middle East.
Rehan Syed
Okay, one more last bookkeeping question on my side on ziggly demerger timeline you have indicated a medium term plan to demerge weekly. Can you share a more specific timeline whether you intend to bring in a strategy for a financial partner before the demerger?
Pankaj Poddar
Yeah, so we have to scale up to a certain level before we even decide whether we want any financial or strategic player. We are bringing very sound business principles and once we feel so I feel. That. It’S very difficult to assess at this stage what time we will bring. But more than likely it will be anywhere by latest by 2028 or 29. It can happen even earlier than that. But it’s too early to predict anything on this. We keep getting a lot of interest from globally many players. But at this stage we are not immediately we had, I mean at least in the last 12 months we had not looked to get any partner into the business because we feel that we have to achieve a certain size before we induct someone.
operator
Thank you. Thank you. The next question is from the line of Gaurav from Capital Farming Consultants. Please go ahead.
Unidentified Participant
Hi. Thanks for giving an opportunity. I hope my voice is audible.
operator
Yes, sir.
Unidentified Participant
Yeah. Thank you. So once again congratulations on a good set of number. First, just a clarification. Since first time we have I think reported segment wise revenue in our quarterly results. So in that which all line of businesses we have included when we have mentioned a separate segment as Others reported turnover as 25cr approximately in Q1 FY26. Just a clarification.
Neeraj Jain
So packaging is from business specialty chemical. Of course the specialty chemical business which we have in a 100% subsidiary. Pet care is a Ziggli business. Then others include Sunshield and rigid packaging business.
Pankaj Poddar
These two are relatively very new businesses and therefore being included in others, once we scale them up, we will evaluate to show them as well separately.
Unidentified Participant
Sure. Thanks for this clarification. So my first question is on our newly commissioned BOP line that I think was commissioned in the last week of May 2025. Right. So considering the current industry dynamics, specifically the BOP segment. Right. So if you would like to give some color that after the one of the major player capac now out of stream, Right. What is the current installed capacity in Indian market vis a vis the utilization level? Right. And how do you foresee maybe one year down the line that how it is going to pan out? Either increasing capacity or maybe some better utilization level or some moderate level from here onwards.
Your colors on that.
Pankaj Poddar
So as we understand that There was. Around 15,000 tons produced by the player, you’re talking about close to 11,11,500 tons of domestic sale and close to 3,500 tons of exports. I mean obviously these numbers used to change a little bit here and there, but broadly we understand that 15,000 tonnes was what they were producing on an average. We have to also remind the investors and the listeners here that in this year four lines have to be added out of which three have already been added and the fourth line will be added soon. These four lines put together will add 10 to 12,000 tonnes of additional capacity.
So on a net basis right now the reduction is 3 to 4,000 tons capacity. Right now the entire capacity is utilized. India is right now sitting at 65 to 70,000 tonnes of domestic consumption and India is doing exports of close to 15,000 tonnes of which Cosmo is by far the largest player in exports.
Unidentified Participant
Sure, thanks a lot. So second question with related to workline only the line that we have commissioned, right. So that is just as of now the major majorly producing the commodity line of packaging films or it also include the specialty. And within this, within this if consider that it operate at an optimum level of let’s say 80 to 90% of capacity utilization. What could be the revenue potential in 12 months or trailing 12 months like or four quarters down the line. So thanks a lot. These are my questions.
Pankaj Poddar
This new line can add close to 750 crores of revenue when it is running at full capacity. Given that we had a lot of queuing up for specialty orders within the first two months itself, we had been able to move certain businesses to speciality. Right now that number is still small. We are also adding many assets alongside in the coming months to increase the specialty sales from this asset. So eventually in three years time, we want a very significant part of this line to be sold into specialty film area.
Unidentified Participant
Yeah, thanks a lot.
operator
Thank you. The next question is from the line of Nirav Demodia from Anvil Wealth. Please go ahead.
Nirav Jimudia
Thanks for the opportunity and good afternoon. Sir, my question passes to the 25 crores of revenue what we have shown between window films and packaging. Rigid packaging. Sir, in one of the earlier conversations you were mentioning that the breakeven sales for window films could be anywhere between 30, 35 crores. So let’s say between this 25 crores of revenue, how much would be window films? Because we have just started. So the losses in this division is predominantly for the window films. Or if you can just help us with respect to this.
Pankaj Poddar
The first is. This vertical is no more just a window film. If you remember, we had also launched paint protection films and subsequent to that we have also launched ceramic coatings for the car. We are the first manufacturer for ceramic coatings for the car. Till now all these ceramic coatings were coming from overseas market. So paint protection film is a premium solution while ceramic coating is a little lesser priced solution. As of now, the window film sale in the one month of operation is still a small number and the overall loss is actually a loss in both the business verticals, which is rigid packaging as well as the Cosmo consumer vertical.
What we expect is that the rigid packaging should start making positive ebitda let’s say in September month of most likely in September month. It could be September or October. And we expect that quarter three should have positive EBITDA coming from digit packaging and within quarter three or quarter four we should start making a positive profit before tax. Also in the rigid packaging business, as far as the Cosmo consumer vertical is concerned, the paint protection film is already making profit without the fixed overheads. Fixed overheads have to be obviously allocated to all three businesses. So majority of the losses are actually coming from the marketing cost that we’ve already started incurring and the employee cost.
Nirav Jimudia
Got it, sir. So for rigid packaging, if we see the run rate of revenues for making break even at the EBITDA level, can A quarterly run rate of 20, 22 crores is the right number to work with at which possibly we could break even.
Neeraj Jain
Yes, you’re right. We should be breaking even at 25 crore roughly sales number. Obviously we had done a lot of cost improvements in last two, three months and we will continue to do a lot of other cost improvements. The second focus area for the company is to increase our presence with the brands. Because when we started with this business to fill up the lines, initially we had to sell to distributors and also sell to other converters. But our ultimate objective is to sell premium products which are various specialty products which company has made. Whether these are high shelf life products, whether these are products meant for automotive industry, electronic industry and so on.
So we have already started focusing on those high premium markets where we can earn better margins and as well as cut down the cost. There were a lot of opportunities for us to cut down the cost. So we expect that even the current mix of customers that we have, we should be able to start doing breakeven close to 25 crores and beyond that start making positive EBITDA on that sales. From the current set of assets that we have, we should be able to do an annual sales of anywhere between 130 to 150 crores.
Nirav Jimudia
Got it, sir. Perfect. The second question is on the newly commissioned line. I think last introduction you mentioned that this new line could have a lower fixed cost to an extent of seven to eight rupees as against the traditional lines what we have. So let’s say in terms of the numbers with the addition of this line, how much of the fixed cost we have added on a quarterly basis. If you can just share your thoughts here.
Pankaj Poddar
The cost for the new line is. Quite minimal right now because we’ve hardly hired anybody at middle or senior level barring two or three people in sales. So we do not expect that the incremental fixed cost because of this new line will be more than 6 to 8 crores in a year.
Nirav Jimudia
Okay. On an annual basis once the line fully ramps up.
Pankaj Poddar
Yeah, got it.
Nirav Jimudia
The third question is on the cost saving initiatives like you mentioned in the presentation and also on your opening remarks that we have got some 4 crores of benefit this quarter. So is this a peak number of the benefits we are supposed to derive through the renewable power? Obviously mentioned that this is going to go up. But let’s say apart from this renewable power we were also working on some other cost initiatives. So what we could see the potential benefit of this cost initiatives in the subsequent quarters. So over and above this, 4 crores, it can help.
Pankaj Poddar
The last year we had saved around 40 crores in cost reduction exercises. For this year also we are targeting to achieve a 40 crore cost reduction.
Nirav Jimudia
Correct? Correct. Thank you so much. The last bit from my side, your thoughts on our exports to us and the ongoing trust between the tariffs and everything. So A, how we would be impacted and B, what are we doing in terms of minimizing the tariff impact on our exports. Thank you so much.
Pankaj Poddar
You see, the current tariffs are quite crazy and what we feel are unsustainable. If it remains at the current level then it is a precarious position. A significant part of our sales can get impacted to America. Last year we had done close to close to 250 crores to 280 crores of sales. And so we may have to shift that sales to other markets. If it has to continue at 55%. But what we feel is that better sense will prevail and these will come to more realistic levels. If it stays around 15 to 20% then we do not foresee any impact because all the competition countries have also being charged with similar duty rates.
If it remains at 55 then we expect close to 50, 50%. Business may get impacted but hopefully these duty rates has to come down.
Nirav Jimudia
Got it, sir. Thank you so much and wish you all the best.
operator
Thank you. Thank you. The next question is from the line of Aman Kumar from AK Securities. Please go ahead.
Aman Kumar
Yeah, Neeraji, good afternoon. My question is related to the margins. Actually I think in the month of June we have very good margin in the Bopp line. But then I think some of the competitors have imported lot of quantity of Dopp films and the margins and the prices has come down. So what is the current margin, sir? And how do you see the margins going forward? Because import will be a threat in the future. Also.
Pankaj Poddar
See lot of dealers in India thought that film companies will take the margins to a very high level. We were mindful of this and therefore we never took very high price increases. We were always very rational in that. But we were expecting that a lot of imports will come. And they actually came because traders anticipated that companies will increase far beyond now. These traders are struggling because they are not making those margins that they had expected. Many of them will have to sell their inventory at a significant loss. Having said so, this should be a temporary phenomena because traders have really understood that companies are here not to make extraordinary margins but reasonable margins.
And therefore we feel that yes, there is a temporary import which has happened in the month of July it may happen, some of this may land even in August. But this should get sorted out in next 30 to 45 days and the market will be back to normal. And as we said, there is no real need for imports because close to 15,000 tonnes of capacity went away from the market and 1112,000 tons of new capacity has already come up or is about to come up. So there’s no reason for why India should import these films and we do not anticipate that such kind of imports. Will happen in the future.
Aman Kumar
My understanding is that there are two types of film. One is in the food grade films and another is textile grade films. So the price fall is much higher in the textile grade film and there is less fall in the food grade film. Is it right?
Pankaj Poddar
See, it’s always more difficult to import non food grade film. But to be honest, right now the margin in spite of this import is quite decent. The value add in tape textile film is 30 plus, while in the non tape is close to 45 plus. These are decent margins. I mean these are the margins which in a normal market we expect to earn and that is what we are earning right now. And this should subside. And I mean there’s nothing to really worry about. I mean if at all anybody has to worry are those traders on which we feel sorry that they have to incur losses.
Let us understand that if somebody imports these films into India, there’s a 10% custom duty and with the way the logistic cost is so high, especially from East Asia to India, it is never going to be profitable to implement these things into the country unless somebody is, you know, looking to export these where they can import against advanced license. So only for the exporters it may make sense to import, but for everybody else it does not make sense. And therefore some of the traders have already burned their fingers on it.
Aman Kumar
How true is that? Manufacturers, the producers of Dopp and Bopid films are asking the government for BIS in the film import.
Pankaj Poddar
Yes, because these films are required for packaging. Government is evaluating in different areas and there’s nothing wrong. Government is already implemented in many areas to ensure that there is a quality. We do understand that in many segments many of the traders were importing very poor quality products into the country and consumers were not very happy. So I mean I do not have any news that any BIS standards have been implemented, but it should be a welcome step if government really considers to implement BIS into this industry.
Aman Kumar
Also answer one last question that recently we have seen that we have taken over some pet hospitals so what is our target in the pet, this pet hospital business? And number two, we have seen that sequentially there is a flood growth in Italy. So can throw some light on this.
Pankaj Poddar
So vet care is, you know, the, I would say, the most critical aspect which a consumer expects. And where standardization has not happened into the country, vet is the biggest influencer for the customer. And therefore, as Mr. Neerajan has earlier stated, that Cosmo as a group has a lot of focus on services and in house brands. So these, I mean, these are not very big sized hospitals. These are wet care hospitals which are really small in size. And if you had seen that the capital outlay we have done is not that significant. So this will help us increase our overall wet care revenue as such.
In fact, one of the centers that we had acquired just, just a couple of months back, we have already been able to increase its sales by good 20, 25%, which is quite positive for us that we are able to add value to that acquisition. And as far as your other question, that why it is just a very small growth of 2,3% in this quarter versus much higher growth in the earlier quarters. The reason is that in February we had increased implemented Omni Channel, which basically means that now we can dispatch our products from any center for an online order.
Now what unfortunately happened is that Amazon and Flipkart, which are the marketplaces, if you have some cancellation beyond 1.5%, 2%, then they put you on hold. Now, given that this is a new system and we were dispatching from various locations, some of the orders had to, I mean, they got cancelled because they could not be dispatched within the same day. That was a learning for us. And because some orders could not be dispatched, our online revenue went down in this quarter. Actually, the retail sales had a very good growth once again in this quarter. But because.
So what happened is when we implemented this Omni Channel in February month, February, March, we had 30, 30% growth in online orders. But then we had account blockages from Amazon and Flipkart because of more cancellations than their standard cancellation of 1.5% almost for two months. We were not able to sell on these platforms in the right manner, the right value, and that impacted us our online sales. So retail has a very good growth while there was a negative growth in the online. And we are trying to correct the situation. Hopefully in the next quarter we should start seeing the real benefits of Omni Channel sales.
Aman Kumar
Okay, sir, thanks a lot.
operator
Thank you. The next question is from the line of Tushar Gupta from Sagun Capital. Please go ahead.
Tushar Gupta
Hello, thank you for the opportunity and congratulations for good set of numbers. Sir, I want to know about the monthly revenue for June especially and segmental gross margin in Q1.
Tushar Gupta
I think it’s already there as a part of the presentation in the investor presentation.
Tushar Gupta
If you see so no, I am just. Okay. I am asking about the monthly revenue. If you can provided.
Neeraj Jain
Monthly revenue for each segment. It will be little difficult to provide over the call. Maybe we request you to send an email communication, we’ll come back to you.
Tushar Gupta
Okay, so second question is about whatever capacity. Sorry.
Pankaj Poddar
What I was saying is that our revenue number should anyways go up because the new line is just being implemented and even in the new businesses revenue is growing. So you should be able to see ramp up in revenue numbers in the coming quarters.
Tushar Gupta
Okay sir, second question is that what is the total current capacity in terms of revenue at current Bopp prices?
Pankaj Poddar
Capacity has nothing to do with you. Meaning revenue terms.
Tushar Gupta
Yes, yes.
Pankaj Poddar
Again this number would not be available on an immediate basis because you know we are into multiple businesses and we won’t have such numbers in hand. You can write an email and we’ll try to answer that.
Tushar Gupta
Okay sir, so one last question sir. As we are working on 100% capacity as mentioned in presentation, so in Asia Management has said we are going to debottleneck it. So sir, by debottlenecking how much capacity will increase and what will be the revenue from that debottleneck?
Pankaj Poddar
The company is running a total quality management project. And we do expect that our earlier lines should be able to do 6, 7% more production over the coming quarters. It’s a very large size organization based project which is based on two fundamentals. Total employee involvement and continuous improvement. So that’s a very large project we have taken for the entire film business. And I mean that would also figure out in the coming quarters and the revenue will work for us.
Tushar Gupta
Okay sir, thank you.
operator
Thank you. The next question is from the line of Amit Agarwal from Eway Investments. Please go ahead.
Unidentified Participant
Hello. Hello. My question is regarding import duties in America. What were what import duties were? Think last year.
Pankaj Poddar
Last year was 5% and this year is 55% at the moment. You know, so even if they come down to 20%. Sorry,
Unidentified Participant
if they come down to 20% also then also we will be squeezing the margins from 5% to 20%.
Pankaj Poddar
Yeah, if it stays at 20% then we have no problem whatsoever.
Unidentified Participant
And my next question is regarding Ziggli. How many stores have you right now. Currently.
Pankaj Poddar
We have already opened 33 centers. 33 or 34 centers. And then next three months we will cross 40, 40.
Unidentified Participant
By what time?
Pankaj Poddar
In three months?
Unidentified Participant
In three months. And how many are cash positive? In how many stores are we looking money?
Pankaj Poddar
Some centers have started making money but we then increased the vet care in all the centers due to which you can understand that vets had a higher salary compared to other staff. So we expect that By December. Some. 25% old stores should start normally. The fundamentals of retail are that they typically tend to make money in the third year. I mean there was fortunately an article in Economic Times even today that any store makes money in the third year and we hardly have three, four centers which are more than two years old. So most of the two year old centers we do expect that they will start making money, you know, by quarter three of this. This year. Quarter three, quarter four, latest.
Unidentified Participant
Is there any other player who’s providing this web services except us? Sorry? Is there any other player who is providing this web services or. We are the only one providing the services.
Pankaj Poddar
We are the only player who’s providing the entire ecosystem to the customer. And. It’S a serious wet care. We do even surgeries at most of our centers and we do provide grooming and we do provide a big range of products as well. So what is the percentage of wet service compared to the rest of the business? Right now these services constitute roughly 60% of our total retail business.
Unidentified Participant
60 40. That means 60 40, right?
Pankaj Poddar
Yeah.
Unidentified Participant
And my last question is what is the net debt position as of June 30th.
Neeraj Jain
We are at 1140 crore rupee of the net debt. But we also expect this to be close to the peak level. As you know, the Capex plan for this year will although is a reasonable number but for the next year there’s no major Capex plan. So we see a very significant reduction in the land debt level over the next two years.
Unidentified Participant
Also right now it’s 1,140, right?
Neeraj Jain
1,140.
Unidentified Participant
So by from March onward it has increased by 200 crores.
Neeraj Jain
Yes. So you will appreciate that I mean we ticked off almost 45% of the BOPP capacity addition and related to that working increase will always happen. So that’s why there’s an increase in the quarter one.
Unidentified Participant
Okay, thank you. Thank you. Best of luck.
Neeraj Jain
Thank you.
operator
Thank you. The next question is from the line of Vipil Kumar Anoch Shah from Shoemangal Investments. Please go ahead.
Vipul Kumar
Hi, thanks for the opportunity. So when we say 68% share in overall mix of specialty and semi specialty. Is it by value or is it by volume?
Neeraj Jain
Sir, this is by volume.
Vipul Kumar
This is by volume.
Pankaj Poddar
It is 80% plus.
Vipul Kumar
For value it is 80 per plus.
Pankaj Poddar
Yeah.
Neeraj Jain
And sir, can you give these always higher compared to the commodity. That’s why in value terms it would always be higher.
Vipul Kumar
Okay. And my second question relates to ziggly. So can you give GMV for this quarter corresponding same quarter last year and last quarter and losses for all the three quarters.
Neeraj Jain
So while we can indicate you GMV for the current quarter quarter one, it was close to 16 crore rupees. Rest all other numbers we have always indicated in our investors presentation. You may like to refer it in case still you have any open question, you can always ask us over the email.
Vipul Kumar
But if you have handy, I think you should share it. Because.
Neeraj Jain
We may not be having it handy actually. So for the current quarter I shared with you.
Vipul Kumar
Okay sir. Thank you.
operator
Thank you. The next question is from the line of Raja Kumar Vaidyanathan from RK Investment. Please go ahead.
Rajakumar Vaidyanathan
Yeah. Good afternoon sir. Thanks for the opportunity. You mentioned that 25 rupees per kg is June quarter margin for Bopp segment. Can you also give me what is the exit margin?
Neeraj Jain
Exit will be closer to 30 rupee or so.
Rajakumar Vaidyanathan
Okay, so then you would expect a better Q2 given that your new capacity and you have a better margins.
Neeraj Jain
Sure. So quarter number EBITDA is better largely for the two factors as we indicated at the beginning of the call. Increase in the volume and better margins.
Rajakumar Vaidyanathan
Okay. And answer just the second question is you said that the competitor who lost the scale capacity is importing. So I believe he’s importing from his subsidies in Europe. Is. Is that the understanding correct? I mean are the all the imports coming from European region or are it coming from other Asia?
Pankaj Poddar
Import is coming mostly from China.
Rajakumar Vaidyanathan
Okay. Okay, sir. And on this tariff situation, so if. If assuming this 50% tariff hold, do you think any of the geographies will stand in? Will we be losing our market share to other geographies like Thailand and Indonesia?
Neeraj Jain
Could you please repeat your question? No.
Rajakumar Vaidyanathan
Sir, you mentioned that if the tariff remains at 50% then it will be not possible for it to operate on a profitable manner. So I just want to know which are the other competitors who will get an edge.
Neeraj Jain
And my colleague Panka said In close to 20 25% of tariff, we should not have any major problem that should be in general possible to the customers. Okay.
Rajakumar Vaidyanathan
Thank you.
operator
Thank you. The next question is from the line of Abhijit An Individual investor, please go ahead.
Unidentified Participant
Yeah, hi. Thank you for the opportunity. Great set of numbers to the management. I have two questions. First question is with regards to this, the competitor whose supply has been kind of put on hold because of unfortunate incident, how much has that translated or benefited the company directly?
Pankaj Poddar
Number. Should even assess that number.
Unidentified Participant
Sorry.
Neeraj Jain
Frankly, I mean, it will not be possible to assess that number because how much is the act of that unfortunate event? So.
Unidentified Participant
But is it right to say that some amount of market demand has come to you guys and you benefited?
Pankaj Poddar
Very difficult to say that. But as I said earlier that close to 15,000 tons of production was being done by that company and already 12,000 tons of capacity coming to the market. So there’s not too much of an impact from that.
Unidentified Participant
Okay. And I wanted to understand, if you look at the quarterly run rate, this is the highest quarterly turnover you have done since June 2022. And the margins also are on the highest. Can you give a fair guidance as to what you think group margins that are going to be in the next six to seven, six to ten quarters?
Pankaj Poddar
I mean, we. I don’t think so. We can share those kind of forecast.
Unidentified Participant
Okay. Okay, one last question. With regards to Ziggli, you observed that.
Neeraj Jain
I mean, generally, you know, this depends on two factors as you will appreciate. The top line or the volume of the company and the margins. So top line, as we said at the beginning of the call, is going to increase because we added close to 45% capacity in the quarter one and it started operation from the 1st of June. In the coming quarters, we expect this volume to further increase which will add to the top line with respect to the margins as we expect broadly. Pankaj also mentioned during the call a little favorable scenario for the FY26 in terms of the demand supply of the Bopp industry in India.
And that should also broadly prevail over the next year also. So to summarize on the margin front also, the demand industry demand supply scenario looks fairly balanced and the top line is going to increase. This should have to be bottom line as well.
Unidentified Participant
Okay, one last question. With regards to the recent name that has appeared on the shareholder. It’s also there on your presentation. It was a family member of the promoter. But is that any material thing or it’s just an investment?
Neeraj Jain
Well, no comment on this. I mean, this is more a question for the. For the investor.
Unidentified Participant
Okay, thank you so much. Best of.
operator
Thank you. The next question is from the line of Yash Madan from mainstream. Please go ahead.
Yashpal Madan
Good afternoon. Can you hear Me?
operator
Yes sir.
Neeraj Jain
Yes, please go ahead.
Yashpal Madan
Thank you. I would like to know in your presentation you haven’t given any breakup of your overall export sales in domestic sales. So what’s the percentage between these two in terms of revenue?
Neeraj Jain
So this was 55, 50% of the domestic sale and the 45% export sales.
Yashpal Madan
45 percentage exports. And out of 45% how much would be to USA?
Neeraj Jain
The US closed last year. We did close to 250 crore rupee or so annualized.
Yashpal Madan
Okay, so that would be around overall 10% is to USA for you.
Neeraj Jain
Well I would say less than 10% because you know if we take the current run rate it should be close to 4000 crore. So on that 250 crore rupees so little less than 10%.
Yashpal Madan
Okay. I believe your most of sales happens on long term contraction basis which is tagged to the crude. Crude pricing. Right. To in B2B segments especially. Is my understanding correct?
Neeraj Jain
It’s a mixed bag actually. So largely on the specialty side particularly the sale happen on a contractual basis more but you know it depends on the product category. Also like the thermal lamination where we are the market leader globally the sale is always through the distribution channel. So it depends on the product also many other aspects also it’s a big mixed bag in terms of the sales.
Yashpal Madan
But if you overall can give some tool, some number, what percentage is to long term contraction basis and what percentage is to distribution channel overall.
Neeraj Jain
It’s difficult to quantify at this moment. But what all we can say is largely you can see our sales in three buckets. Specialty, semi specialty and commodity. So for specialty as you might have seen, I mean historically on for last few years they are able to pass the increase in the prices of the raw material or the increase in the cost. So margins are largely protected. Semi specialty products always have an edge or the delta over the pricing on the commodity. So the pricing runs always on the additional pricing basis. On the semi specialty commodity is something which is largely a function of demand and supply of the industry.
Yashpal Madan
So in that case then you must be gaining substantially last 23 months after this incident because prices went up by 50 60% for a couple of weeks. Then could you, could you get that gain or it’s just a myth.
Neeraj Jain
It will always happen on the commodity part of the business. Answer is yes on the specialty and will not be.
Yashpal Madan
So then what will be the percentage between these two in terms of your sales? 5050 commodity and specialty.
Neeraj Jain
As we said on our presentation in the quarter one without taking the new BOPP line volume 68% we did from being specialty and semi specialty products and remaining was from the community part of this.
Yashpal Madan
And 32% basically you could have gained something. Okay, got it.
Neeraj Jain
Yeah.
Yashpal Madan
So. So overall now because of this event, any kind of benefits to industry is not expected. The debt is neutralized. No. After even such a big capacity is. Borne out of the industry.
Neeraj Jain
Well, I mean temporarily at least for the 1820 months to 2 year period. It created a cushion in the industry in terms of the favorable demand supply scenario. So yes, impact will always be only on the entire industry.
Yashpal Madan
Okay, thank you.
operator
Thank you ladies and gentlemen. As that was the last question for today’s conference, I would now hand the conference over to the management for the closing comments. Over to you sir.
Neeraj Jain
Thank you. And to summarize, I think for full business the company’s focus will be on taking full leverage of the new investments, grow specialties in sale and further push down the cost. The company’s specialty sales has increased by 10% in FY25 the similar trend we expect in the coming years as well which further strengthens the business model. Among the new business vertical Specialty Chemical is already making decent progress profit and is growing growth and profitability will be the key focus for the other business verticals in the coming quarters including Cosmo Consumer which include window films business end protection, film business and ceramic coatings and the Cosmo rigid packaging business under the brand name Fastag.
While Zidli may take some time to become profitable however should be a significant value creator. With this I would like to repeat the statutory declaration. Certain statements in this con call may be forward looking statements. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results. With this we thank you all for joining the call.
operator
Thank you. On behalf of Cosmo First Limited. That concludes Limited. Thank you for joining us and you may now disconnect your lines.