Q2 results and plan for a Rs. 70 crore glass tubing furnace

Capex quantum is material: Rs.70 Cr is ~7% of reported market cap (Rs.974 Cr) and ~37% of existing fixed assets (Rs.189 Cr), so it will noticeably increase asset base and near-term investment needs. Project aims at backward integration (tubing currently imported), which can reduce procurement risk, foreign-sourcing dependency, and potential input cost volatility. Funding via accruals and/or borrowings implies a trade-off between using cash buffers and raising leverage; recent cash from investing was an outflow of Rs.37 Cr, indicating prior capex activity. If utilisation reaches meaningful levels, the new capacity could improve margins and ROCE (ROCE has been rising: 10% -> 12%), but benefits depend on execution and demand capture. Commercial production is targeted by Mar 31, 2028, so benefits are medium-term; cost and timeline execution risk remain until commissioning.