*Capacity Expansion Bet: Near-Term Margin Pressure, Medium-Term EBITDA Upside* Shree Rama Multi-Tech's ₹10 Cr capex adds 45 lakh tubes/month (6% capacity growth), targeting Q2 FY26-27 commercialization. Key Numbers: Sales growth: 4-5% FY26-27 (partial year), stabilizing at 6% FY27-28 onward. EBITDA uplift: ₹8-12 Cr annually once fully utilized. Depreciation drag: ₹1-1.25 Cr/year compresses net margins by 20-50 bps initially. EBITDA margin expands modestly (flat to +10 bps) only if 80%+ utilization achieved. Primary Risk: Demand absorption uncertainty. If market cannot absorb 45L tubes/month at current pricing, forced discounting triggers margin compression and extends payback. Ramp-up delays or underutilization materially worsen FY26-27 returns. Strategic Call: Investment remains *positive* conditional on demonstrated demand traction. Monitor Q2-Q3 FY26-27 utilization closely—if trending below 70%, downgrade thesis. Internal funding mitigates refinancing risk. Best risk-adjusted outcome: patient 18-24 month horizon for margin recovery and full capex productivity.

*Capacity Expansion Bet: Near-Term Margin Pressure, Medium-Term EBITDA Upside* Shree Rama Multi-Tech's ₹10 Cr capex adds 45 lakh tubes/month (6% capacity growth), targeting Q2 FY26-27 commercialization. Key Numbers: Sales growth: 4-5% FY26-27 (partial year), stabilizing at 6% FY27-28 onward. EBITDA uplift: ₹8-12 Cr annually once fully utilized. Depreciation drag: ₹1-1.25 Cr/year compresses net margins by 20-50 bps initially. EBITDA margin expands modestly (flat to +10 bps) only if 80%+ utilization achieved. Primary Risk: Demand absorption uncertainty. If market cannot absorb 45L tubes/month at current pricing, forced discounting triggers margin compression and extends payback. Ramp-up delays or underutilization materially worsen FY26-27 returns. Strategic Call: Investment remains *positive* conditional on demonstrated demand traction. Monitor Q2-Q3 FY26-27 utilization closely—if trending below 70%, downgrade thesis. Internal funding mitigates refinancing risk. Best risk-adjusted outcome: patient 18-24 month horizon for margin recovery and full capex productivity.

*Capacity Expansion Bet: Near-Term Margin Pressure, Medium-Term EBITDA Upside* Shree Rama Multi-Tech's ₹10 Cr capex adds 45 lakh tubes/month (6% capacity growth), targeting Q2 FY26-27 commercialization. Key Numbers: Sales growth: 4-5% FY26-27 (partial year), stabilizing at 6% FY27-28 onward. EBITDA uplift: ₹8-12 Cr annually once fully utilized. Depreciation drag: ₹1-1.25 Cr/year compresses net margins by 20-50 bps initially. EBITDA margin expands modestly (flat to +10 bps) only if 80%+ utilization achieved. Primary Risk: Demand absorption uncertainty. If market cannot absorb 45L tubes/month at current pricing, forced discounting triggers margin compression and extends payback. Ramp-up delays or underutilization materially worsen FY26-27 returns. Strategic Call: Investment remains *positive* conditional on demonstrated demand traction. Monitor Q2-Q3 FY26-27 utilization closely—if trending below 70%, downgrade thesis. Internal funding mitigates refinancing risk. Best risk-adjusted outcome: patient 18-24 month horizon for margin recovery and full capex productivity.

*Capacity Expansion Bet: Near-Term Margin Pressure, Medium-Term EBITDA Upside* Shree Rama Multi-Tech's ₹10 Cr capex adds 45 lakh tubes/month (6% capacity growth), targeting Q2 FY26-27 commercialization. Key Numbers: Sales growth: 4-5% FY26-27 (partial year), stabilizing at 6% FY27-28 onward. EBITDA uplift: ₹8-12 Cr annually once fully utilized. Depreciation drag: ₹1-1.25 Cr/year compresses net margins by 20-50 bps initially. EBITDA margin expands modestly (flat to +10 bps) only if 80%+ utilization achieved. Primary Risk: Demand absorption uncertainty. If market cannot absorb 45L tubes/month at current pricing, forced discounting triggers margin compression and extends payback. Ramp-up delays or underutilization materially worsen FY26-27 returns. Strategic Call: Investment remains *positive* conditional on demonstrated demand traction. Monitor Q2-Q3 FY26-27 utilization closely—if trending below 70%, downgrade thesis. Internal funding mitigates refinancing risk. Best risk-adjusted outcome: patient 18-24 month horizon for margin recovery and full capex productivity.