Management Commentary

Managing Director Rahul Nachane provided commentary on Q1FY27 performance. The quarter sustained demand momentum from Q4FY26 with robust volumes across product segments and geographies. Operating margins were healthy, though partially attributable to inventory gains from price increases during the period. Margins are expected to moderate as price realizations normalize.

A notable contributor to profitability was the reversal of mark-to-market forex provisions, resulting in a forex gain of ₹2.5 crore in Q1FY27 compared to a loss of ₹4.5 crore in Q4FY26. Phase II expansion remains on schedule for commissioning during the current quarter (Q2FY27), with commercial production expected from H2FY27. Total project cost and scope remain unchanged.

Quarterly Operational Metrics

Segmental Revenue Mix:

  • Animal API: 95% in Q1FY27 (92% in Q1FY26, 95% in Q4FY26)
  • Human API: 3% in Q1FY27 (4% in Q1FY26, 2% in Q4FY26)
  • Intermediates: 1% in Q1FY27 (3% in Q1FY26, 1% in Q4FY26)
  • Formulations: 0% in Q1FY27 (1% in Q1FY26, 1% in Q4FY26)

Product Concentration:

  • Top 3 Products: 31% in Q1FY27 (30% in Q1FY26, 29% in Q4FY26)
  • Top 5 Products: 48% in Q1FY27 (42% in Q1FY26, 44% in Q4FY26)
  • Top 10 Products: 68% in Q1FY27 (63% in Q1FY26, 66% in Q4FY26)

Geographic Mix:

  • Asia: 40% in Q1FY27 (32% in Q1FY26, 43% in Q4FY26)
  • Europe: 10% in Q1FY27 (13% in Q1FY26, 9% in Q4FY26)
  • India: 20% in Q1FY27 (25% in Q1FY26, 23% in Q4FY26)
  • ROW: 30% in Q1FY27 (30% in Q1FY26, 26% in Q4FY26)
  • USA: 0% in Q1FY27 (1% in Q1FY26, 0% in Q4FY26)

Customer Concentration:

  • Top 3 Customers: 18% in Q1FY27 (15% in Q1FY26, 12% in Q4FY26)
  • Top 5 Customers: 26% in Q1FY27 (21% in Q1FY26, 18% in Q4FY26)
  • Top 10 Customers: 38% in Q1FY27 (37% in Q1FY26, 29% in Q4FY26)

Financial Performance (₹ in Crores)

Profit and Loss Statement:

  • Revenue from Operations: ₹139.16 in Q1FY27 (₹104.19 in Q1FY26, ₹149.23 in Q4FY26) - up 33.57% YoY, down 6.75% QoQ
  • Other Income: ₹7.43 in Q1FY27 (₹6.35 in Q1FY26, ₹2.46 in Q4FY26) - up 16.91% YoY, up 202.05% QoQ
  • Total Income: ₹146.59 in Q1FY27 (₹110.54 in Q1FY26, ₹151.69 in Q4FY26) - up 32.61% YoY, down 3.36% QoQ
  • Total Operating Expenses: ₹115.88 in Q1FY27 (₹93.21 in Q1FY26, ₹127.82 in Q4FY26) - up 24.31% YoY, down 9.35% QoQ
  • EBITDA: ₹23.29 in Q1FY27 (₹10.97 in Q1FY26, ₹21.41 in Q4FY26) - up 112.21% YoY, up 8.76% QoQ
  • EBITDA Margin: 16.73% in Q1FY27 (10.53% in Q1FY26, 14.35% in Q4FY26) - up 620 bps YoY, up 239 bps QoQ
  • Finance Cost: ₹0.99 in Q1FY27 (₹1.22 in Q1FY26, ₹1.01 in Q4FY26) - down 19.39% YoY, down 2.23% QoQ
  • Depreciation and Amortization: ₹5.25 in Q1FY27 (₹4.27 in Q1FY26, ₹5.05 in Q4FY26) - up 23.16% YoY, up 4.01% QoQ
  • Profit Before Tax: ₹24.48 in Q1FY27 (₹11.84 in Q1FY26, ₹17.81 in Q4FY26) - up 106.74% YoY, up 37.41% QoQ
  • Profit After Tax: ₹18.40 in Q1FY27 (₹9.24 in Q1FY26, ₹13.49 in Q4FY26) - up 99.09% YoY, up 36.42% QoQ

Balance Sheet (FY26 vs FY25):

  • Shareholders Fund: ₹329.23 crore (₹282.43 crore in FY25)
  • Non-Current Liabilities: ₹66.25 crore (₹31.99 crore in FY25)
  • Long Term Borrowings: ₹56.40 crore (₹25.34 crore in FY25)
  • Current Liabilities: ₹150.01 crore (₹118.97 crore in FY25)
  • Short Term Borrowings: ₹52.02 crore (₹48.00 crore in FY25)
  • Total Equity and Liabilities: ₹545.50 crore (₹433.39 crore in FY25)
  • Non-Current Assets: ₹269.11 crore (₹198.01 crore in FY25)
  • Net Block: ₹164.09 crore (₹142.12 crore in FY25)
  • Current Assets: ₹276.39 crore (₹235.38 crore in FY25)
  • Inventories: ₹70.28 crore (₹51.27 crore in FY25)
  • Trade Receivables: ₹130.88 crore (₹82.84 crore in FY25)
  • Cash & Bank Balances: ₹5.11 crore (₹4.97 crore in FY25)
  • Total Assets: ₹545.50 crore (₹433.39 crore in FY25)

Cash Flow Statement (FY26 vs FY25):

  • Cash Flow from Operating Activities: ₹43.32 crore (₹32.36 crore in FY25)
  • Cash Flow from Investing Activities: ₹(70.59) crore (₹(69.68) crore in FY25)
  • Cash Flow from Financing Activities: ₹29.55 crore (₹37.46 crore in FY25)
  • Net Cash Flow: ₹2.27 crore (₹0.14 crore in FY25)
  • Cash at Beginning of Year: ₹0.53 crore (₹0.40 crore in FY25)
  • Cash at End of Year: ₹2.81 crore (₹0.53 crore in FY25)

Business Overview and Strategy

NGL Fine-Chem is a leading animal health company with leadership in the veterinary API segment. The company has 95% in-house manufacturing and backward integrated facilities. It has 5 manufacturing facilities located at Tarapur & Navi Mumbai, Maharashtra, with total area of 20,000m². The facilities have accreditations including WHO-GMP, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and cGMP.

Growth Strategy:

  • Completed expansion in subsidiary Macrotech with additional capacities of intermediates; commercial production started
  • Greenfield expansion at Tarapur with estimated capex of ₹210 crore to be funded through debt and internal accrual
  • ₹209.71 crore already invested till Q1FY27
  • Civil construction undergoing with sufficient capacity to meet demand for new products in pipeline

Historical Financial Performance (FY22-FY26):

  • Revenue: ₹318 crore (FY22), ₹278 crore (FY23), ₹339 crore (FY24), ₹368 crore (FY25), ₹501 crore (FY26)
  • EBITDA: ₹34 crore (FY22), ₹34 crore (FY23), ₹53 crore (FY24), ₹68 crore (FY25), ₹73 crore (FY26)
  • Gross Margin: 53% (FY22), 49% (FY23), 52% (FY24), 50% (FY25), 52% (FY26)