Management Commentary

Managing Director Rahul Nachane stated that Q4FY26 delivered strong performance with a sharp uptick in sales driven entirely by volume expansion, marking the third consecutive quarter of robust volume growth. The improvement was broad-based across the entire product portfolio and geographic markets. Phase I of the ongoing capex programme is now contributing meaningfully to operations. The quarter faced challenges from ongoing geopolitical volatility which drove up freight costs and raw material prices. Due to fixed-price contracts, these cost escalations could not be immediately passed on to customers. Forex market movements led to mark-to-market provisions depressing margins. Shortages of gas and labor impacted capex execution, resulting in a delay of Phase II commissioning from Q1FY27 to early Q2FY27. Commercial production remains on track for H2FY27. The company has been successful in partial price pass-through to customers in Q1FY27, which should help restore margins going forward.

Quarterly Operational Metrics

Segmental Revenue Mix (Q4FY25 vs Q3FY26 vs Q4FY26):

  • Animal API: 90% → 92% → 95%
  • Human API: 7% → 2% → 2%
  • Intermediates: 1% → 4% → 1%
  • Formulations: 2% → 1% → 1%

Product Concentration:

  • Top 3 Products: 33% → 28% → 29%
  • Top 5 Products: 50% → 44% → 44%
  • Top 10 Products: 72% → 65% → 66%

Geographic Mix:

  • Asia: 37% → 38% → 43%
  • Europe: 10% → 8% → 9%
  • India: 27% → 29% → 23%
  • ROW: 26% → 25% → 26%
  • USA: 0% → 0% → 0%

Customer Concentration:

  • Top 3 Customers: 14% → 12% → 12%
  • Top 5 Customers: 23% → 17% → 18%
  • Top 10 Customers: 35% → 29% → 29%

Financial Performance

Profit and Loss Statement (₹ in Crores):

| Particulars | Q4FY25 | Q3FY26 | Q4FY26 | QoQ % | YoY % | FY25 | FY26 | YoY % |

| Revenue from Operations | 94.97 | 127.51 | 149.23 | 17.04% | 57.13% | 368.26 | 500.95 | 36.03% |

| Other Income | -0.97 | 4.61 | 2.46 | 46.67% | -354.68% | 8.63 | 14.73 | 70.65% |

| Total Income | 94.01 | 132.12 | 151.69 | 14.81% | 61.36% | 376.89 | 515.68 | 36.83% |

| Total Operating Expenses | 88.65 | 105.20 | 127.82 | 21.51% | 44.18% | 334.39 | 428.26 | 28.07% |

| EBITDA | 6.32 | 22.31 | 21.41 | -4.04% | 238.81% | 33.87 | 72.69 | 114.62% |

| EBITDA Margin (%) | 6.65% | 17.50% | 14.35% | -315 bps | 769 bps | 9.20% | 14.51% | 531 bps |

| Finance Cost | 0.97 | 1.07 | 1.01 | -6.24% | 3.49% | 2.33 | 4.47 | 91.40% |

| Depreciation & Amortization | 3.32 | 5.18 | 5.05 | -2.50% | 52.13% | 12.45 | 19.58 | 57.28% |

| Profit Before Tax | 1.06 | 20.67 | 17.81 | -13.82% | 1,580.11% | 27.71 | 63.37 | 128.65% |

| Profit After Tax | 0.54 | 15.69 | 13.49 | -14.05% | 2,380.79% | 21.12 | 48.13 | 127.83% |

Balance Sheet (₹ in Crores):

| Particulars | FY25 | FY26 |

| Shareholders Fund | 282.43 | 329.23 |

| Non Current Liabilities | 31.99 | 66.25 |

| Long Term Borrowings | 25.34 | 56.40 |

| Current Liabilities | 118.97 | 150.01 |

| Short Term Borrowings | 48.00 | 52.02 |

| Total Equity & Liabilities | 433.39 | 545.50 |

| Non Current Assets | 198.01 | 269.11 |

| Net Block | 142.12 | 164.09 |

| Current Assets | 235.38 | 276.39 |

| Inventories | 51.27 | 70.28 |

| Trade Receivables | 82.84 | 130.88 |

| Cash & Bank Balances | 4.97 | 5.11 |

| Total Assets | 433.39 | 545.50 |

Cash Flow Statement (₹ in Crores):

| Particulars | FY25 | FY26 |

| Cash Flow from Operating Activities | 32.36 | 43.32 |

| Cash Flow from Investing Activities | (69.68) | (70.59) |

| Cash Flow from Financing Activities | 37.46 | 29.55 |

| Net Cash Flow | 0.14 | 2.27 |

| Cash at Beginning of Year | 0.40 | 0.53 |

| Cash at End of Year | 0.53 | 2.81 |

Business Overview

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 supplies to 5 of the top 10 global animal healthcare companies and has market share ranging from 15% to 50%+ in key products including anthelmintics, ectoparasiticides, antiprotozoals, and supplements.

Manufacturing Capabilities

The company operates 5 manufacturing facilities in Tarapur & Navi Mumbai, Maharashtra with 20,000m² area. Capabilities include glass-lined reactors (168kl, 253kl), stainless steel reactors (36m³), and gas induction reactors with reaction range from -20°C to +250°C. Accreditations include WHO-GMP, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and cGMP.

Growth Strategy

The company has completed expansion in subsidiary Macrotech with additional capacities of intermediates and commercial production started. A greenfield expansion at Tarapur is underway with estimated capex of ₹210 Cr funded through debt and internal accrual. Civil construction is undergoing with ₹182.75 Cr invested till Q4FY26.

Historical Financial Performance

Revenue (₹ in Crores): FY22: 318, FY23: 278, FY24: 339, FY25: 368, FY26: 501

EBITDA (₹ in Crores): FY22: 34, FY23: 34, FY24: 53, FY25: 68, FY26: 73

PAT (₹ in Crores): FY22: 24, FY23: 19, FY24: 30, FY25: 21, FY26: 48

Gross Margin: FY22: 53%, FY23: 49%, FY24: 52%, FY25: 50%, FY26: 52%

EBITDA Margin: FY22: 11%, FY23: 12%, FY24: 16%, FY25: 18%, FY26: 15%

PAT Margin: FY22: 8%, FY23: 7%, FY24: 9%, FY25: 6%, FY26: 10%