Company Disclosure

Financial Performance Highlights

Q4 FY26 Performance

  • Revenue: Rs. 4,248 million
  • EBITDA: Rs. 212 million
  • EBITDA Margin: 5.0%
  • Conflict had adverse impact on sales in March 2026
  • Prolonged conflict affected raw material availability and prices, enhanced logistic costs, longer delivery times, and working capital cycle
  • Lower production of Methyl Vanillin due to planned campaign switch for Ethyl Vanillin
  • Internal channel stock of Vanillin liquidated in Q4FY26
  • Higher realization from Vanillin expected in subsequent quarters due to withdrawal of tariff
  • Overall costs remain under control, main increase due to Vinpai acquisition
  • Rising interest costs and currency fluctuations impacted profitability

FY26 Annual Performance

  • Revenue: Rs. 17,233 million
  • Blends business maintained steady growth across key markets with 17% annual growth
  • Newly acquired Vinpai contributed Rs. 165 million of total Blends revenue in Q4FY26
  • CFS Europe is under liquidation with operational losses to be curtailed
  • Blends revenue of Rs 569 million in FY26 and Rs 378 million in FY25 shown under discontinued operation due to CFS Europe liquidation

Operational Revenue Breakdown (From Continuing Operations)

  • Specialty Ingredients (Value added blends): Rs. 9,973 million in FY26 (16% growth from FY25's Rs. 8,612 million)
  • Total Specialty Ingredients: Detailed breakdown shows consistent performance across quarters

Regional Performance (From Continuing Operations)

  • CFS North America: Performance metrics shown
  • CFS Vitafor: Performance metrics shown
  • CFS Vinpai: Performance metrics shown

Consolidated Financial Statements

Profit & Loss Statement (Rs. in Mn)

| Particulars | Q4 FY25 | Q3 FY26 | Q4 FY26 | FY25 | FY26 |

| Other Income | 239.1 | 26.8 | 111.9 | 287.9 | 151.6 |

| Depreciation | 208.1 | 163.2 | 171.4 | 709.2 | 609.6 |

| Finance cost | 229.8 | 172.6 | 149.3 | 729.4 | 963.0 |

| Exceptional Item | 79.5 | 175.1 | 55.9 | 254.6 | 98.2 |

| Share of profit/(loss) of associate | 13.8 | (2.5) | 17.9 | 16.6 | 4.4 |

| PBT | -52.6 | -275.7 | 373.6 | -319.8 | 645.8 |

| Tax | -62.3 | -0.9 | 76.9 | -4.5 | -5.1 |

| PAT | 9.8 | -274.9 | 296.7 | -315.3 | 650.9 |

Balance Sheet (Rs. in Mn)

| Particulars | Mar-26 | Mar-25 |

| Equity Share Capital | 192.1 | 187.9 |

| Other Equity | 10,216.8 | 8,828.8 |

| Minority interest | -400.7 | -268.9 |

| Total Equity | 10,008.1 | 8,747.8 |

| Borrowings (Non-Current) | 3,026.1 | 2,683.0 |

| Lease Liabilities (Non-Current) | 344.0 | 251.4 |

| Total Non-Current Liabilities | 3,486.7 | 3,028.0 |

| Borrowings (Current) | 3,654.8 | 3,478.4 |

| Lease Liabilities (Current) | 176.1 | 105.2 |

| Trade Payables | 5,051.9 | 4,067.2 |

| Total Current Liabilities | 9,744.3 | 8,462.1 |

| Total Equity and Liabilities | 23,239.1 | 20,237.9 |

| Property, Plant and Equipment | 5,692.1 | 5,925.6 |

| Capital Work-In-Progress | 328.5 | 97.3 |

| Goodwill | 2,334.1 | 474.7 |

| Other Intangible Assets | 288.7 | 102.3 |

| Total Non-Current Assets | 10,874.1 | 8,403.9 |

| Inventories | 5,037.5 | 5,268.6 |

| Trade Receivables | 3,730.2 | 3,282.2 |

| Cash and Cash Equivalents | 1,085.6 | 1,040.7 |

| Total Current Assets | 12,343.4 | 11,833.9 |

| Total Assets | 23,239.1 | 20,237.9 |

Strategic Development: Vinpai Acquisition

Acquisition Details

  • Acquired majority stake in Vinpai representing ~83.82% of outstanding share capital
  • Vinpai incorporated in 2011
  • Specializes in natural functional ingredients derived from algae, plants, minerals, and fibers
  • Serves food, cosmetics, and nutraceutical industries
  • Operates two sites in Saint-Dolay (Morbihan) and near the port of Saint-Nazaire
  • Developed 3,500+ formulations with 43 employees

Key Rationale

  • Portfolio Diversification: Entry into high-growth natural ingredients space
  • Market Expansion & Synergies: Vinpai serves customers in over 36 countries
  • Enhanced R&D Capabilities: Combines Vinpai's functional ingredients expertise with CFSL's existing capabilities
  • Financial Growth: Intended to drive revenue growth and improve margins
  • Cross-Selling Opportunities: Opens new avenues in food, cosmetics, and nutraceuticals

Business Overview

Market Position

  • 1,250+ satisfied customers worldwide
  • Among global vanillin manufacturers
  • 100+ solutions range of diversified products
  • Preferred partner for customized shelf-life solutions

Manufacturing and R&D Capabilities

  • 8 global manufacturing facilities
  • 7 application laboratories
  • 2 R&D centers
  • Presence in 12 countries

Revenue Mix (FY26)

  • Specialty Ingredients (Value added Blends): 58%
  • Specialty Ingredients (Straights): 18%
  • Aroma Ingredients: 14%
  • Performance Chemicals: 9%

Product Portfolio and End-User Industries

| Product Category | FY26 Sales% | Key Products | End-User Industries |

| Straights Specialty Ingredients | 18% | TBHQ, BHA, Ascorbyl palmitate (ASP) | Pet Food, Animal Feed Mills, Livestock Nutrition, Biodiesel, Food & Beverages, Aquaculture & Fishmeal |

| Value added Blends | 58% | 200+ custom formulations, traditional and natural solutions | Tailored to diverse industry needs, focus on high-value blends and additives |

| Performance Chemicals | 9% | HQ derivatives, CT derivative products | Petrochemicals, Pharmaceuticals, Dyes & Pigments, Acrylates, Agrochemicals, Electroplating, Polymers, Printing Inks |

| Aroma Ingredients | 14% | Vanillin, Ethyl Vanillin, Vanillin ex clove | Food & Beverages, Flavors & Fragrance, Pharmaceutical, Agrochemicals, Incense sticks, Personal Care, Animal Feed |

Innovation and Development Initiatives

Vertical Integration

  • Efforts in organic and inorganic expansions
  • Strategic focus on captive consumption for raw material utilization
  • Forward integration into Blends and Vanillin for high-value additives/solutions

Process Optimization

  • Vanillin Production Optimization: Continuous improvement at Dahej plant
  • Animal Nutrition: Continuous improvement and development using CS Dresen technical expertise
  • Quality Enhancements: Focus on Analytical and Quality Enhancements through Instrumental Analysis and Method Development

Product Development

  • High-Quality Hydroquinone: Developed specialized grade, conducting plant trials
  • Catechol Downstream Products: New downstream products in development
  • Antioxidant Innovations: Continuous development and enhancement of quality antioxidants
  • Naturals & Emulsifiers: Newest offerings include emulsifier-based ingredients for food industry
  • Upcoming Products: FY26 will see commercialization of many new specialty ingredients

Governance Structure

Board of Directors

  • Ashish Dandekar: Chairman & Managing Director, BA in Economics and Management from Temple University, USA
  • Nirmal Momaya: Managing Director, Qualified Chartered Accountant with three decades of experience
  • Arjun Dukane: Executive Director Technical, Chemical Engineer with three decades of experience
  • Harsha Raghavan: Non-Executive Non-Independent Director, Managing Partner of Convergent Finance LLP
  • Anagha Dandekar: Non-Executive Non-Independent Director, President & co-founder of Hardware Renaissance
  • Jens Van Nieuwenborgh: Non-Executive Non-Independent Director, MBA from Harvard University
  • Amol Shah: Independent Director, Managing Director of MJ Group
  • Mahabaleshwar Palekar: Independent Director, Chemical engineer from ICT Mumbai
  • Joseph Conrad D'souza: Independent Director, Ex-Chief Investor Relations Officer of HDFC Ltd
  • Pradip Kanakia: Independent Director, Qualified Chartered Accountant
  • Abeezar Faizullabhoy: Independent Director, Senior Partner at Argus Partners
  • Radhika Dudhat: Independent Director, Partner with Shardul Amarchand Mangaldas & Co.

Senior Management Team

  • Nirmal Momaya: Managing Director
  • Arjun Dukane: Executive Director-Technical
  • Santosh Parab: Chief Financial Officer, two decades of auditing experience
  • Nilesh Jadhav: Chief Operating Officer, Qualified Chartered Accountant
  • Eric Santos: Vice President – Aroma Ingredients, two decades of industry experience
  • Jose Arturo Paulin: Head – Mexico operations, two decades in feed market
  • Jennifer Igou: Head – USA operations, two decades in food and pet-food space

Historical Financial Trends

Continued Operation Performance

Historical revenue and operational metrics shown for FY22-FY26 period, demonstrating growth trajectory and operational performance over five-year period.

Regional Performance Trends

Historical performance data shown for CFS India, CFS Mexico, CFS Brazil, and CFS North America regions.