Quarterly Performance Details

Sales Performance

  • Q1 FY2027 sales grew 27% year-on-year and 7% quarter-on-quarter
  • All three business verticals (CRAMS, CEM, LSM) performed to plan

Business Vertical Performance

CRAMS (Contract Research and Manufacturing Services)

  • Grew approximately 20% year-on-year
  • Completed installation of 18 additional fume hoods and Nuclear Magnetic Resonance (NMR) machine at R&D centre
  • Currently has over 65 live projects, with 70% in non-pharmaceutical and non-agrochemical sectors
  • NMR capability enables bidding for projects in oil & gas and material science sectors

CEM (Contract and Exclusive Manufacturing)

  • Grew approximately 75% year-on-year
  • Revenue from Baker Hughes for the quarter was ₹700 million
  • Strata (Site 4) dedicated to Baker Hughes reached 58% utilization level
  • Ascend plant dedicated to Milliken Chemical and Textile (India) Company began booking revenue
  • Converge Polyol (developed with Saudi Aramco) saw good off-take during quarter
  • On track to achieve sales of ₹650-750 million for Converge Polyol in current financial year
  • European major CEM program in material science commercialized at Ascend, taking utilization to 72%

LSM (Large Scale Manufacturing)

  • No decline in demand during quarter
  • Pricing remained strong - up 22.5% year-on-year and 1% quarter-on-quarter
  • Volume up 11.7% quarter-on-quarter but down 22% year-on-year due to strategic reallocation of production lines to CEM vertical
  • Launched LSM products from Magnum during quarter, expected to contribute revenue from Q2 FY2027

Combined Vertical Performance

  • CRAMS and CEM together contribute 60% of revenue
  • Expected to reach 70% contribution over next couple of years

Sectoral Distribution of Sales

  • Pharmaceutical: 32.2% of revenue from operations
  • Agrochemical: 9.5% of revenue from operations
  • Oil and gas: 31.4% of revenue from operations (crossed ₹1,000 million for quarter for first time)
  • Material science: 16.6% of revenue from operations

Site Nomenclature Update

Manufacturing sites have been renamed as follows:

  • Site 1 → Catalyst (CRAMS)
  • Site 2 → Genesis (LSM/CEM)
  • Site 3 and Site 3++ → Ascend (LSM/CEM)
  • Site 4 → Strata (CEM)
  • Site 5 and Site 5+ → Magnum (LSM/CEM)

Operations and Supply Chain

  • No difficulty in procuring raw materials
  • Raw material prices remained stable through quarter after March increases
  • Successfully passed through earlier cost increases to customers
  • Gross margin: 49.83% in Q1 FY2027 vs 47.93% in Q1 FY2026

Capital Expenditure Update

Site 1+ - New R&D Centre

  • Construction continues with expected completion by Q2 FY2028
  • Total capex: approximately ₹1,000 million
  • Will house 120 fume hoods and 8 technical labs

Magnum (Site 5)

  • Q1 FY2027 capex: approximately ₹833 million
  • Working to commercialize two production blocks (semiconductor segment and European major CEM contract) by Q3 FY2027

Full Year Capex Guidance

  • Total expected capex for FY2027: ₹3,000-3,500 million
  • Breakdown: ~₹600 million at Site Catalyst, remaining at Site Magnum

Margins, Working Capital and Debt

EBITDA Margin

  • Q1 FY2027: 31.47% vs Q1 FY2026: 30.61%
  • Improvement reflects increased contribution from CRAMS and CEM verticals
  • Maintains guidance of approximately 30% EBITDA margin for FY2027

Working Capital Cycle

  • Debtor days reduced due to aggressive collections
  • Inventory days reduced marginally
  • Overall working capital cycle marginally lower than March 2026

Debt Levels (as at 30 June 2026)

  • Outstanding borrowings: ₹4,215 million working capital loans + ₹1,000 million term loans

Forward-Looking Statement Disclaimer

The document contains forward-looking statements based on management's current expectations involving known and unknown risks and uncertainties that could cause actual results to differ materially. The Company undertakes no obligation to publicly update any forward-looking statement.