Financial Performance Highlights

Q1 FY27 Consolidated Results:

  • Total Income: ₹681.42 crores, representing 20.01% year-on-year growth
  • Revenue: ₹666 crores, representing 19.22% year-on-year growth
  • EBITDA: ₹167.47 crores, representing 18.73% year-on-year growth
  • EBITDA Margin: 24.58%
  • Profit After Tax: ₹83.2 crores compared to ₹61.46 crores in Q1 FY26
  • Return on Equity (ROE): 21.7%
  • Return on Capital Employed (ROCE): 22.72%

Operational Metrics:

  • Capacity utilization at approximately 90%
  • Working capital cycle reduced to 108 days from 141 days in previous year
  • Raw material cost as percentage of sales between 52-55% range

Balance Sheet Position (as of June 2026)

  • Net Debt: ₹865 crores (net of cash and surplus deployed in mutual funds)
  • Net Debt-to-EBITDA Ratio: 1.29x
  • Net Debt-to-Equity Ratio: 0.57x

Capacity Expansion Update

Phase-1 Expansion:

  • Current capacity: 48,000 metric tons
  • Target capacity: 54,000 metric tons (increase of 6,000 metric tons)
  • Expected commercialization: September 2026 (previously planned for June 2026)

Phase-2 Expansion:

  • Target capacity: 66,000 metric tons (additional 12,000 metric tons from Phase-1)
  • Expected completion: September 2027

New Specialty Products Pipeline:

  • High-value specialty molecules including Maltol, Ethyl Maltol, Ethylene brassylate (Musk T), Cyclopentanone
  • Plan to introduce 10 advanced specialty products as part of Phase-2 and Phase-3 expansion program
  • Maltol and Ethyl Maltol production expected to benefit from China-plus-One strategy

Joint Venture Update (PRIGIV)

  • Q1 FY27 Revenue: ₹18 crores
  • EBITDA Margin: 14-15%
  • Achieved profitability in Q4 FY26
  • Planning additional capacity additions with infusion of ₹50 crore equity
  • Focused on scaling business and developing high-value specialty molecules
  • Exclusive supply agreement with Givaudan for 42 products

Corporate Restructuring

  • Proposed merger of Privi Speciality Chemicals Limited, Privi Fine Sciences Private Limited, and Privi Biotechnologies Private Limited
  • Scheme filed with NCLT after receiving no objection observation letters from stock exchanges
  • Expected completion within FY27
  • Privi Fine Sciences adds approximately 6,000 metric tons capacity post-merger

Biotechnology Initiatives

  • Demonstration plant in Navi Mumbai processing 2 tons of biomass per day
  • Focus on converting biomass into value-added products
  • Multiple patents being filed
  • Investment timeline: 12-15 months for plant construction, followed by 1 year operational study
  • This initiative is separate from the ₹5,000 crore revenue roadmap

Guidance and Outlook

  • Management confident in maintaining 20% CAGR growth with similar EBITDA margins
  • Vision to achieve ₹5,000 crores revenue and ₹1,000+ crores EBITDA within 3-4 years (2x growth)
  • EBITDA margins expected to sustain at 20%+ driven by operational efficiencies and improved product mix
  • Capex plan of ₹850-900 crores for Phase-2 and Phase-3 expansion
  • Funding primarily through internal accruals, with bank borrowing as needed

Raw Material and Supply Chain

  • 75 products based on 60 different raw materials
  • Crude-based raw materials: 15-18% of total purchases
  • Diversified sourcing strategy with backward integration into pine chemistry
  • Stable supply chain despite global geopolitical environment
  • Limited impact from Iran war and Red Sea disruptions on freight costs

Product Mix

  • Pine-based products remain main revenue contributor
  • Camphor represents 4-6% of total revenue
  • Company does not disclose detailed product mix per Board directive

Strategic Initiatives

  • Moving from joint ventures to strategic alliances (two underway)
  • Focus on continuous flow chemistry adoption across manufacturing processes
  • Strong expertise in hydrogenation, distillation, Grignard reactions, and environmental treatment (zero liquid discharge)

Management Participants

  • Mr. Mahesh Babani – Chairman and Managing Director
  • Mr. R.S. Rajan – President
  • Mr. Narayan S. Iyer – Chief Financial Officer
  • Ms. Ashwini Shah – Company Secretary and Compliance Officer
  • Mr. Sanjeev Patil – Executive Vice President, Strategy and Biotechnology