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Mirza International Limited (MIRZAINT)

₹28.06 +2.18% last close, 16 Oct

📊 NSE: MIRZAINT 🏢 Leather / Leather Products 📢 Latest filing: 09 Oct 2026 📝 Analysis written: 14 Dec 2025

Latest quarterly results (Q1 FY27)

In its latest reported quarter, Q1 FY27, Mirza International's revenue was ₹128 Cr (-9.6% year on year, +24.7% on the previous quarter), and net profit ₹-4.1 Cr (against a profit a year earlier); the operating margin was 2.4%.

Q1 FY27 (₹ Cr)	Value	YoY vs Q1 FY26	QoQ
Revenue	₹128	-9.6%	+24.7%
Operating profit	₹3.0	-76.1%	from loss
Net profit	₹-4.1	to loss	loss narrowed
EPS (₹)	-0.29	to loss	loss narrowed
Operating margin	2.4%	—	—

Full quarterly financials → Results calendar →

MIRZAINT delivery percentage

NSE end-of-day data for Fri, 16 Oct 2026

On Fri, 16 Oct 2026, 63.52% of the MIRZAINT shares traded on NSE were taken to delivery, against the stock's own 20-session average of 57.13%. That is close to its usual level. Turnover was only ₹19 lakh, so a handful of trades can move this figure.

63.52%Delivery, 16 Oct

57.13%Own 20-session average

0.8×Volume vs its average

₹28.06NSE close · +2.19%

Delivery in the last 5 sessions: 55.4% · 62.6% · 59.1% · 46.7% · 63.5%

Delivery across the market →

A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed

📢 Recent Corporate Announcements

Mirza International Incorporates 100% Wholly Owned Subsidiary Mirza Global Limited

🟡 NEUTRAL ⭐ 3/10

EXPANSION 📅 09 Oct 2026, 10:15 AM

Mirza International Limited has incorporated a 100% wholly owned subsidiary named Mirza Global Limited on October 8, 2026. The new entity has an authorized share capital of Rs 15 lakh and is set up to conduct manufacturing, retail, wholesale, and e-commerce business in footwear. Mirza Global Limited is yet to commence operations and has zero prior turnover. The parent company (TTM revenue of Rs 514 Cr) subscribed 100% in cash to its initial share capital.

Incorporated 100% Wholly Owned Subsidiary named Mirza Global Limited on October 8, 2026
Target entity authorized share capital stands at Rs 15,00,000
100% initial share capital subscription completed in cash
Turnover history is not applicable as the company is yet to commence business

💡 Track subsequent filings for operational rollout details, capital infusion amounts, and the subsidiary's initial financial contributions.

Mirza International Appoints Nirmal Sahijwani as President of Men's Shoe Division

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 06 Aug 2026, 04:28 PM

Mirza International has appointed Mr. Nirmal Sahijwani as President of its Men's Shoe Division, effective August 6, 2026. This senior management hire is tasked with driving strategy and profitability for a core business segment as the company manages a TTM revenue of Rs 528 Cr. The appointment comes at a time when the company is executing an order book of Rs 260-270 Cr amid thin operating margins of 3.2%. Investors should note that the company is currently pivoting toward synthetic leather to counter global competition and low tannery utilization.

Appointment of Mr. Nirmal Sahijwani as President - Men's Shoe Division effective August 6, 2026.
The appointee will be responsible for the overall business strategy, growth, and profitability of the division.
The company is currently managing an order book of Rs 260-270 Cr to be executed within 5-6 months.
Mirza International reported a TTM revenue of Rs 528 Cr with a marginal net loss of Rs 0.35 Cr in FY26.
The Board meeting for this approval was conducted within one hour, from 11:15 a.m. to 12:15 p.m.

💡 Monitor upcoming quarterly results to see if this leadership change improves capacity utilization and helps execute the Rs 260-270 Cr order book more profitably.

Mirza International Reports Q1 Net Loss of ₹4.07 Cr as Revenue Declines 9.6% YoY

🔴 NEGATIVE ⭐ 7/10

EARNINGS 📅 06 Aug 2026, 12:30 PM

Mirza International reported a consolidated net loss of ₹4.07 Cr for Q1 FY27, a significant reversal from a profit of ₹17.81 Cr in the year-ago period. Revenue from operations declined 9.6% YoY to ₹128.40 Cr, with the Tannery segment witnessing a sharp 31.7% drop in revenue to ₹31.41 Cr. The company faced operating deleverage as employee benefit expenses remained high at ₹20.87 Cr despite falling sales. Footwear segment EBIT margins collapsed to 0.9% from 5.9% YoY, reflecting severe pricing and demand pressure.

Consolidated Revenue from Operations fell 9.6% YoY to ₹128.40 Cr from ₹142.11 Cr
Net Profit swung to a loss of ₹4.07 Cr compared to a profit of ₹17.81 Cr in Q1 FY26
Tannery segment revenue dropped 31.7% YoY to ₹31.41 Cr with a segment loss of ₹2.78 Cr
Footwear segment EBIT plummeted to ₹0.99 Cr from ₹7.16 Cr in the previous year's quarter
Total expenses of ₹133.47 Cr exceeded total income of ₹129.03 Cr for the quarter

💡 Watch for improvements in capacity utilization in the tannery division and the execution of the ₹260-270 Cr order book mentioned in previous filings to see if the company can return to profitability in H2.

Mirza International Re-appoints MD and 3 WTDs for 3-Year Terms; Appoints 1 New Director

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 03 Aug 2026, 05:06 PM

Mirza International has received shareholder approval to re-appoint its core promoter leadership, including Managing Director Tauseef Ahmad Mirza and three Whole-time Directors, for new three-year terms starting in late 2026. Additionally, Aqeel Ahmad Khan has been appointed as a Whole-time Director effective June 1, 2026, to manage industrial and government relations. This leadership continuity comes as the company manages a TTM revenue of Rs 528 Cr while facing a challenging export environment, with 70% of revenue derived from the US and Europe. The board remains heavily family-centric, with three brothers and one son occupying key executive positions.

Re-appointment of MD Tauseef Ahmad Mirza for a 3-year term effective October 1, 2026
Faraz Mirza re-appointed as Whole-time Director for 3 years effective August 12, 2026
New appointment of Aqeel Ahmad Khan as Whole-time Director for a 3-year term
Promoter group maintains a high 72.99% stake in the company as of March 2026
Company is currently executing an order book valued at Rs 260-270 Cr

💡 Monitor the management's ability to improve capacity utilization in the tannery division and successfully pivot toward synthetic leather products to counter global competition.

Mirza International Shareholders Approve Re-appointment of Key Management at 47th AGM

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 03 Aug 2026, 04:58 PM

Shareholders of Mirza International approved all eight resolutions at the 47th AGM held on August 1, 2026, with over 99.8% of votes in favor. Key approvals include the re-appointment of Tauseef Ahmad Mirza as Managing Director and several Whole-time Directors, ensuring leadership continuity. Total voter turnout stood at 73.52%, heavily driven by the promoter group which holds a 73% stake. This administrative milestone occurs as the company seeks to recover from a FY26 net loss of Rs 0.35 Cr and low capacity utilization in its tannery division.

Total voter turnout was 73.52% with 10.16 Cr votes polled out of 13.82 Cr total shares.
All 8 resolutions passed, including 5 Special Resolutions for the re-appointment of top management.
Promoter group participation was 100%, with 10,08,76,282 shares voting in favor of all agendas.
Public institutional participation was 76.63%, though they represent a small fraction of the total capital (1.94 lakh shares).
Public non-institutional (retail) voting participation remained low at 1.56% of their 3.71 Cr shares.

💡 Focus on upcoming quarterly results to see if the re-appointed management can improve the 3.2% operating margin and execute the reported Rs 260-270 Cr order book.

Mirza International Concludes 47th AGM; Re-appoints Key Management Personnel

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 01 Aug 2026, 04:22 PM

Mirza International Limited held its 47th Annual General Meeting (AGM) on August 1, 2026, to transact routine and special business. Shareholders considered the adoption of FY26 financial statements, where the company reported a TTM revenue of ₹528 Cr and a marginal net loss. Key resolutions included the re-appointment of Tauseef Ahmad Mirza as Managing Director and several other Whole-time Directors. The meeting also ratified the remuneration for cost auditors for the 2026-27 financial year.

47th Annual General Meeting successfully conducted on August 1, 2026, via Video Conferencing.
Re-appointment of 5 key management personnel including the Managing Director and four Whole-time Directors.
Adoption of Audited Financial Statements for FY26 (Revenue: ₹527.67 Cr; Net Loss: ₹0.35 Cr).
Remote e-voting period concluded on July 31, 2026, prior to the meeting.
Company currently maintains an order book of ₹260-270 Cr to be executed within 5-6 months.

💡 Investors should monitor the formal voting results (Scrutinizer's report) for any significant dissent and focus on upcoming quarterly results to see if the ₹260-270 Cr order book improves the current low capacity utilization.

Mirza International: ICRA Downgrades Ratings for Rs 205 Cr Bank Facilities to BBB+/A2

🔴 NEGATIVE ⭐ 9/10

REGULATORY 📅 15 Jul 2026, 03:38 PM

ICRA has downgraded Mirza International's credit ratings for its total bank facilities of Rs 205 crore. The long-term rating was revised to [ICRA]BBB+ (Stable) and the short-term rating to [ICRA]A2. This downgrade follows a challenging financial period where the company reported a net loss of Rs 13 crore in the March 2026 quarter and a low TTM operating margin of 3.2%. The rated facilities represent approximately 38.8% of the company's TTM revenue of Rs 528 crore.

Total bank facilities of Rs 205.00 crore were downgraded by ICRA on July 15, 2026.
Long-term fund-based limits of Rs 23.00 crore downgraded to [ICRA]BBB+ (Stable).
Short-term fund-based limits of Rs 160.00 crore, including packing credit and bill discounting, downgraded to [ICRA]A2.
Company reported a significant net loss of Rs 13.0 crore in the most recent quarter (Mar 2026) compared to a loss of Rs 4.0 crore in Mar 2025.
Operating profit margins remain thin at 3.2% TTM, impacted by low capacity utilization in the tannery division.

💡 Investors should monitor the company's upcoming quarterly results for signs of margin recovery and the impact of higher borrowing costs following this downgrade. Key execution milestones to watch include the utilization of the tannery plant and the timely fulfillment of the Rs 260-270 crore order book.

Mirza International Submits Quarterly Dematerialization Certificate for June 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 13 Jul 2026, 04:52 PM

Mirza International Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by the company's Registrar and Share Transfer Agent (RTA), KFIN Technologies Limited, confirms that share certificates received for dematerialization during the quarter ended June 30, 2026, have been processed. This is a standard administrative filing required by all listed companies to ensure the reconciliation of physical and electronic share records. There is no impact on the company's financial performance or business operations.

Compliance certificate issued for the quarter ended June 30, 2026
Registrar and Share Transfer Agent (RTA) involved is KFIN Technologies Limited
Confirms processing of securities dematerialized/rematerialized during the period
Filing submitted to both BSE and NSE on July 13, 2026

💡 This is a routine regulatory filing. Investors should monitor the company's upcoming quarterly financial results for material business updates.

Mirza International: Promoters Declare Zero Share Encumbrance for FY 2025-26

🟡 NEUTRAL ⭐ 2/10

REGULATORY 📅 06 Jul 2026, 11:12 AM

Mirza International has submitted its annual disclosure under SEBI Takeover Regulations for the financial year ended March 31, 2026. The promoter group, led by Mr. Tasneef Ahmad Mirza, has confirmed that no shares held by the promoters or persons acting in concert were encumbered, directly or indirectly, during the period. This is a routine annual compliance filing that confirms the absence of promoter share pledging.

Declaration covers the entire financial year ended March 31, 2026
Promoter group confirmed zero (0) encumbrances created during the fiscal year
Disclosure submitted in compliance with Regulation 31(4) of SEBI (SAST) Regulations, 2011
Declaration issued by Tasneef Ahmad Mirza on behalf of the entire Promoter Group

💡 No action is required as this is a routine procedural filing. Investors should continue to monitor quarterly shareholding patterns for any changes in the total promoter stake.

Mirza International Schedules 47th AGM for Aug 1, 2026; FY26 Revenue at ₹516.22 Cr

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 03 Jul 2026, 02:14 PM

Mirza International has issued its Annual Report for FY 2025-26 and scheduled its 47th Annual General Meeting for August 1, 2026. The company reported a total revenue of ₹516.22 Cr and EBITDA of ₹40.29 Cr for the fiscal year. The UK remains the dominant market, contributing 45.66% of total revenue, while the domestic Indian market accounts for 27.60%. No dividend was declared for the year, following a period of margin pressure and a net loss of ₹13 Cr in the March 2026 quarter.

Total Revenue for FY 2025-26 reported at ₹516.22 Cr
EBITDA for the fiscal year stood at ₹40.29 Cr with a Net Worth of ₹469.43 Cr
UK market remains the largest geographic segment at 45.66% of revenue
Annual manufacturing capacity maintained at 4.3 million pairs across 4 facilities
Company reported 1,288 employees and a design output of 5,000 designs per year

💡 Investors should monitor the AGM for management updates on improving capacity utilization in the tannery division and the execution timeline for the ₹260-270 Cr order book.

Mirza International Announces Trading Window Closure from July 1, 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 27 Jun 2026, 04:25 PM

Mirza International Limited has announced the closure of its trading window for all designated persons and their relatives starting July 1, 2026. This is a standard regulatory procedure ahead of the announcement of financial results for the quarter ending June 30, 2026. The window will remain closed until 48 hours after the results are declared. This filing is administrative and does not impact the company's fundamental operations.

Trading window closure effective from July 1, 2026
Closure relates to the unaudited financial results for the quarter ended June 30, 2026
Window to reopen 48 hours after results become generally available
Company reported a net loss of Rs 13.0 Cr in the most recent quarter (Mar 2026)

💡 Watch for the upcoming board meeting date announcement to see when Q1 FY27 results will be released, particularly to monitor if margins improve from the 3.2% TTM OPM.

Mirza International Re-appoints MD and Top Leadership, Appoints New CFO

🟡 NEUTRAL ⭐ 7/10

MANAGEMENT 📅 29 May 2026, 07:30 PM

Mirza International has announced a significant leadership restructuring, including the re-appointment of its Managing Director, Tauseef Ahmad Mirza, and three other Whole-time Directors for three-year terms. The company also appointed Anil Kumar Mahipal as the new Chief Financial Officer, effective June 1, 2026, bringing over 14 years of experience to the role. Additionally, Aqeel Ahmad Khan joins as a new Whole-time Director to oversee industrial relations and regulatory compliance. These moves ensure continuity in the core promoter-led management while strengthening the financial and administrative functions.

Tauseef Ahmad Mirza re-appointed as Managing Director for a 3-year term starting October 1, 2026.
Anil Kumar Mahipal appointed as Chief Financial Officer effective June 1, 2026, with 14 years of experience.
Three Whole-time Directors (Faraz, Tasneef, and Shahid Mirza) re-appointed for 3-year tenures.
Aqeel Ahmad Khan appointed as a new Whole-time Director for 3 years starting June 1, 2026.
Internal and Cost Auditors appointed for the financial year 2026-27 to maintain governance standards.

💡 Investors should view this as a move towards management continuity and stability within the promoter group. Monitor the new CFO's impact on financial reporting and capital allocation strategies in upcoming quarters.

Mirza International Appoints New CFO and Re-appoints Key Executive Directors

🟡 NEUTRAL ⭐ 6/10

MANAGEMENT 📅 29 May 2026, 07:29 PM

Mirza International has announced a significant management update, appointing Anil Kumar Mahipal as CFO and Aqeel Ahmad Khan as Whole-time Director effective June 1, 2026. The company also re-appointed four key promoter-directors, including Managing Director Tauseef Ahmad Mirza, for three-year terms starting in late 2026. These appointments aim to maintain operational stability across the shoe and tannery divisions while leveraging Mr. Mahipal's 14 years of financial experience. Additionally, auditors for FY 2026-27 were finalized to ensure continued regulatory compliance and governance.

Anil Kumar Mahipal, a Chartered Accountant with 14 years of experience, appointed as CFO effective June 1, 2026.
Aqeel Ahmad Khan appointed as Whole-time Director for a 3-year term starting June 1, 2026, focusing on industrial relations.
Managing Director Tauseef Ahmad Mirza and Directors Tasneef and Shahid Mirza re-appointed for 3-year terms starting October 1, 2026.
Faraz Mirza re-appointed as Whole-time Director from August 12, 2026, to oversee overseas marketing and the Thomas Crick brand.

💡 This is a routine management continuity exercise with a focus on promoter-led leadership; investors should monitor if the new CFO's appointment leads to improved financial efficiencies or capital allocation.

Mirza International Appoints New CFO and Re-appoints Managing Director for 3-Year Terms

🟡 NEUTRAL ⭐ 6/10

MANAGEMENT 📅 29 May 2026, 07:26 PM

Mirza International Limited has announced a significant leadership update, including the appointment of Anil Kumar Mahipal as Chief Financial Officer effective June 1, 2026. The board also approved the re-appointment of Tauseef Ahmad Mirza as Managing Director for a three-year term starting October 1, 2026. Additionally, three other Whole-time Directors were re-appointed, and Aqeel Ahmad Khan was newly appointed to the board. These appointments aim to ensure management continuity and leverage the extensive industry experience of the core leadership team.

Anil Kumar Mahipal appointed as CFO effective June 1, 2026, with over 14 years of experience.
Tauseef Ahmad Mirza re-appointed as Managing Director for a 3-year term starting October 2026.
Aqeel Ahmad Khan appointed as Whole-time Director for 3 years starting June 1, 2026.
Re-appointment of three Whole-time Directors (Faraz, Tasneef, and Shahid Mirza) for 3-year tenures.
Appointment of Cost and Internal Auditors for the financial year 2026-27.

💡 Investors should note the management continuity as a positive for operational stability. No immediate action is required as these are largely re-appointments of existing leadership and internal promotions.

Mirza International Q4 FY26 Net Loss Widens to ₹13.22 Cr; Revenue Falls 16% YoY

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 29 May 2026, 06:57 PM

Mirza International reported a weak performance for Q4 FY26, with consolidated revenue declining 15.9% YoY to ₹102.56 crore. The consolidated net loss for the quarter widened significantly to ₹13.22 crore, compared to a loss of ₹4.40 crore in Q4 FY25. For the full year FY26, the company recorded a consolidated net loss of ₹0.57 crore on a revenue of ₹527.23 crore. The results also reflect the impact of the merger with RTS Fashion Limited, which became effective May 1, 2026, but was operative from April 1, 2025.

Consolidated Q4 revenue dropped to ₹102.56 crore from ₹121.95 crore in the previous year.
Consolidated net loss for Q4 FY26 widened to ₹13.22 crore versus a loss of ₹4.40 crore YoY.
Full-year FY26 consolidated revenue declined 9.3% YoY to ₹527.23 crore.
Footwear segment revenue for the full year fell to ₹456.93 crore from ₹525.64 crore in FY25.
Standalone results include an exceptional gain of ₹18.61 crore related to the merger of RTS Fashion Limited.

💡 Investors should exercise caution as the company faces declining revenues in its core footwear segment and persistent quarterly losses. The unresolved outcome of the Income Tax search conducted in September 2025 adds a layer of regulatory risk that needs to be monitored.

View All MIRZAINT Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Overall revenue declined 7.8% YoY from INR 630.36 Cr in FY24 to INR 581.23 Cr in FY25. In Q1FY25, the footwear segment (77% of revenue) grew 14% YoY, while the tannery business (23% of revenue) grew 8% YoY.

Geographic Revenue Split

Exports account for approximately 85-86% of total revenue. The UK and US markets are the primary regions, together constituting ~70% of total revenue in FY24.

Profitability Margins

Operating margins have seen a steady decline from 10.2% in FY23 to 7.7% in FY24, and further to 6.6% in the first nine months of FY25. The company reported a Profit Before Tax (PBT) loss of INR 3.55 Cr in FY25 compared to a PBT of INR 16.60 Cr in FY24.

EBITDA Margin

Operating margin stood at 7.7% in FY24, a decline from 10.2% in FY23. The margin further compressed to 6.6% in 9M FY25 due to operating deleverage and increased freight costs.

Capital Expenditure

The company maintains a regular annual maintenance capex of INR 10-15 Cr (some reports suggest INR 15-20 Cr), which is entirely funded through internal cash accruals of INR 45-55 Cr.

Credit Rating & Borrowing

Ratings reaffirmed at [ICRA]A- (Stable) and [CRISIL]A- (Negative). Interest coverage ratio is estimated at 4.1x for FY25, down from 4.79x previously. Working capital limits of INR 120-185 Cr are utilized at an average of 42%.

⚙️ Operational Drivers

Raw Materials

Cow hide and finished leather are the primary raw materials. Raw material costs (Cost of Materials Consumed) were INR 254.25 Cr in FY25, representing 43.7% of total revenue.

Import Sources

Cow hide is specifically imported as it is not available in India; specific countries are not named but the company relies on global sourcing for ~85% of its business needs.

Capacity Expansion

Current focus is on improving utilization rather than expansion; the tannery business is currently making losses due to low utilization of its large plant capacity.

Raw Material Costs

Raw material costs decreased 5.1% YoY from INR 267.85 Cr in FY24 to INR 254.25 Cr in FY25. Stabilization in leather prices in Q1FY25 has started to improve gross margins.

Manufacturing Efficiency

Manufacturing efficiency is currently hampered by low capacity utilization in the tannery division, leading to operating deleverage where fixed costs like employee benefits (INR 86.27 Cr) remain high despite lower revenue.

Logistics & Distribution

Freight costs increased significantly due to geopolitical issues in the Red Sea, contributing to the 110 bps decline in operating margins during FY25.

📈 Strategic Growth

Expected Growth Rate

6.7-6.8%

Growth Strategy

Growth will be driven by increasing online sales of owned brands and targeting large-scale orders from 'big customers.' The company currently holds an order book of INR 260-270 Cr to be executed within 5-6 months.

Products & Services

The company manufactures and sells leather footwear (shoes) and finished leather.

Brand Portfolio

Thomas Crick, Off The Hook London, and Oaktrak.

New Products/Services

Focus is shifting toward synthetic leather shoes to counter competition, though specific revenue contribution percentages for new launches are not disclosed.

Market Expansion

Expansion is focused on digital channels and online sales for private label brands in the international market.

Strategic Alliances

The company operates through subsidiaries including RTS Fashion Limited (Dubai) and Mirza (UK) Limited to manage international distribution.

🌍 External Factors

Industry Trends

The industry is shifting toward synthetic leather footwear; Mirza is adapting by focusing on online brand presence and cost efficiency to counter 4% YoY degrowth in the export market.

Competitive Landscape

Faces intense competition from low-cost manufacturing hubs like China and Bangladesh and the rising popularity of synthetic footwear brands.

Competitive Moat

Moat is based on integrated operations (tannery to footwear) and established private labels like Thomas Crick. However, this is challenged by the global shift toward non-leather alternatives.

Macro Economic Sensitivity

Highly sensitive to global consumer spending power, particularly in the UK and US, and fluctuations in global leather commodity prices.

Consumer Behavior

Shift in consumer preference toward synthetic/vegan leather and online shopping is forcing a change in the company's distribution and product strategy.

Geopolitical Risks

The Red Sea crisis is a primary risk, increasing logistics costs and transit times for exports to Western markets.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental norms for tanneries and international trade regulations for footwear exports to the UK and US.

Taxation Policy Impact

The company recognized a deferred tax income of INR 57 Lakh in FY25 compared to a tax expense of INR 42 Lakh in FY24.

Legal Contingencies

The company has outstanding liabilities for employee benefits of INR 26.80 Lakh and export expenses payable of INR 33.95 Lakh as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the duration of the export demand slowdown in Europe and the US, which could keep operating margins below the 8% threshold.