Total asset turnover: 1.3-1.4X (consistent over 5 years)
Net capital turnover ratio: 4.8X in FY26
Capital Expenditure Plan
Total CapEx: ₹100 crore (approximately 16% of current market capitalization)
Allocation: 40% towards Malaysian operations
Funding: Domestic plans through internal accruals; Malaysian entity 70:30 equity-debt ratio
Expected completion: Most projects by FY30
Expected outcomes: 18% revenue CAGR, 200 bps margin expansion, RoCE improvement to 18-20%
Business Segments & Diversification
Paint segment contribution: 46% of revenue (flat growth in FY26)
Polymer and rubber segments: Showing better transition
Exports contribution: Stable at 14%
New products contribution: 4-5% from products launched in last 2-3 years
Strategic Initiatives
Malaysian limestone acquisition: Mine operations started, plant construction expected to take 12 months
Sievert JV: First phase operational, second phase to go live in coming months
Doffner JV: Already contributing to operations
Product development: 35-40 new products launched yearly across various segments including anti-blocking agents for petrochemical industry, specialized calcium carbonates, and cosmetic applications
Market Conditions & Challenges
Demand recovery observed since January 2026 across key industries
Prolonged monsoon impact on post-Diwali offtake
Geopolitical uncertainties affecting operations
Supply chain challenges: Fuel/gas availability issues, freight cost increases, raw material cost inflation
Cost pass-through: Implemented with customers over period of time (days to weeks)
Future Outlook
Revenue target: Cross ₹1,000 crore milestone in FY27 (subject to demand improvement)
Growth drivers: Specialty and high-performance materials, polymer and rubber applications, export expansions, construction chemicals
Margin focus: Maintain current margin levels while focusing on PAT improvement
Automation initiatives: Planned across production facilities to reduce power costs and improve capacity
Renewable energy: Solar, hybrid and wind energy adoption planned for some plants
Q&A Session Key Points
Raw material sourcing: 30% from owned mines, 70% from external sources
Malaysian capacity utilization: Cannot be predicted until plant commissioning in 12 months
Free cash flow generation: ₹42.28 crore in FY26
Debt reduction: Aspiration to become debt-free in long term
Working capital: Expected to remain similar to FY26 levels
Market share: Ranges from 10% to 30% across different products
