IOL Chemicals and Pharmaceuticals Limited – Investor Presentation Summary

Key Operational Highlights

  • Total installed capacity of 2,13,126 MTPA comprising 30,726 MTPA API and 1,82,400 MTPA specialty chemicals
  • Diversified API platform with 30,726 MTPA capacity and backward integration across key products
  • Among the largest global manufacturers of Iso Butyl Benzene (IBB) worldwide with 12,000 MTPA capacity
  • Asia's first continuous dual technology plant for MCA and Acetyl Chloride using green chemistry
  • Ethyl Acetate manufacturing capacity of over 1,20,000 MTPA
  • Acetic Anhydride capacity of 32,000 MTPA (major input for Paracetamol)

Key drivers of operational performance: Backward integration strategy, product diversification beyond Ibuprofen, and export market expansion.

Segment-wise Performance

  • Pharmaceuticals segment: Non-Ibuprofen share increased from 18% to 37% over past six years
  • Key non-Ibuprofen products include Paracetamol, Metformin, Clopidogrel, Fenofibrate, and Pantoprazole
  • Specialty chemicals segment serving multiple industries: Flexible Pharmaceuticals Packaging, Food Processing, Paints, Ink, Textiles, Agro Chemicals, Plasticizers & Polymers, Flavours & Fragrances, Personal Care & Cosmetics

Explanation of significant changes in segment performance: Growth driven by strategic focus on high-value APIs and diversified specialty chemicals portfolio.

Financial Highlights

Revenue: ₹756.3 Cr (Q1 FY27)

EBITDA: ₹111.7 Cr

PAT: ₹64.5 Cr

EPS: ₹2.20

Margins: EBITDA Margin 14.6%, PAT Margin 8.4%

YoY comparison: Revenue up 37.1%, EBITDA up 60.7%, PAT up 89.9% vs Q1 FY26

QoQ comparison: Revenue up 22.1%, EBITDA up 18.5%, PAT up 21.2% vs Q4 FY26

Drivers of financial performance: Higher revenue growth, operational efficiencies, and improved margins.

Geographical Revenue Split

Export Contribution Target: 25%-30% for FY27

Regulated market capabilities: 14 DMFs with USFDA, 21 CEPs with EDQM, USFDA-Audited API Facilities, Multiple EU-GMP Approved Units, REACH-certified for Ethyl Acetate & Acetic Anhydride enabling EU exports

Balance Sheet Snapshot

Total Assets: ₹2,586.7 Cr (Mar 26)

Property, plant and equipment: ₹1,165.1 Cr

Inventories: ₹371.1 Cr

Trade receivables: ₹603.1 Cr

Cash and cash equivalents: ₹65.3 Cr

Bank balances: ₹133.0 Cr

Total Equity: ₹1,798.4 Cr

Borrowings: ₹132.0 Cr (current)

Financial Health Insights: Strong equity base, manageable debt levels, and healthy working capital position.

Capex & Cash Flow Health

Capital Expenditure Guidance: ₹200-250 Cr for FY27

Net Cash from Operating Activities (FY26): ₹214.4 Cr

Cash Flow from Investing Activities (FY26): -₹198.1 Cr

Cash Flow from Financing Activities (FY26): -₹29.0 Cr

Investment Rationale: Focus on capacity expansion, new site development, and technological upgrades.

Strategic & R&D Initiatives

  • Purchased 101 acres on Chandigarh-Bathinda Highway for new site development
  • 120-member R&D team including 50+ scientists driving innovation
  • DSIR approved facility for research & development
  • Working on generic molecules with latest equipment & techniques for process development
  • In-house development of multi-step products

Expected impact on growth: Product diversification to drive revenue and margin expansion over next 2-3 years.

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through backward integration.

Industry Trends & Business Environment

Growth Drivers: China+1 supply chain shift, shift towards high-value APIs, patent cliff & genericisation, export-led growth, PLI & KSM self-reliance, chronic disease demand

Impact on Company: Positioned as preferred alternative manufacturing hub with diversified API portfolio and export capabilities.

Management Commentary & Growth Outlook

FY27 Guidance: Revenue Growth 15%-20%, EBITDA Margin 14%-15%, Exports Contribution 25%-30%, Capex ₹200-250 Cr

Strategic Outlook: Backward integration for margin and supply chain resilience, product diversification beyond Ibuprofen, export market expansion, scaling through strategic land purchase

ESG & Leadership

  • Ecovadis Gold Medal Recipient ranking among top 5% of companies assessed globally for ESG performance
  • ₹4.65 Cr total CSR investment during FY26 impacting ~5.5 lakh lives
  • ₹2.79 crore invested in healthcare initiatives including hospital upgrades and medical supplies
  • ₹1.40 crore invested in social upliftment initiatives including plantation drives and pond restoration
  • ₹47 lakh invested in education initiatives including smart classrooms and school renovations

Strong leadership team with experienced board including Managing Director Varinder Gupta (38+ years experience), Joint Managing Director Vikas Gupta, and Executive Director Abhiraj Gupta.