Financial Performance Highlights

Q2 FY27 (Quarter Ended September 30, 2026)

  • Total Income: ₹773.16 crores, up 13.9% year-on-year
  • EBITDA: ₹212.49 crores, up 16.66% year-on-year
  • EBITDA Margin: 27.48% (vs 26.12% in previous year)
  • Profit After Tax (PAT): ₹117.03 crores, up 24.61% year-on-year
  • Raw Material Cost (RMC) as % of Sales: 52% (vs 54% in Q1 FY27 and 51% in Q2 FY26)

H1 FY27 (Half Year Ended September 30, 2026)

  • PAT: ₹201 crores, up 29% compared to previous year
  • Cash Generated from Operations: ₹445 crores for first 6 months

Other Financial Metrics

  • ROCE: 24.30% (improvement of 216 basis points year-on-year)
  • ROE: 26.34% (improvement of 134 basis points year-on-year)
  • Net Debt: ₹814.51 crores as on September 30, 2026
  • Net Debt-to-EBITDA Ratio: 1.07x
  • Net Debt to Equity: 0.51x
  • Working Capital Cycle: Under 100 days (improved from 124 days in previous year)
  • Asset Turnover: 1.7x on fixed asset base

Operational and Strategic Updates

Capacity Expansion

  • Phase 1 Completion: Capacity increased from 48,000 MTPA to 54,000 MTPA (6,000 MTPA addition)
  • Phase 2 Progress: Maltol, ethyl maltol, ethyl vanillate (Musty), and cyclopentanone molecules underway
  • Phase 2 Timeline: Expected commercial production from second half of FY28 (September 2027 onwards)
  • Total Capex Plan: ₹1,400 crores for all three phases, with ₹1,000 crores remaining for Phase 2 and 3

Revenue Projections from Expansion

  • Phase 2 Potential: ₹1,000 crores revenue at full capacity of 12,000 metric tons
  • Phase 3 Potential: ₹450-500 crores additional revenue
  • Overall Target: ₹5,000 crores revenue by 2030 through all expansion phases

Joint Venture Performance

  • PRIGIV JV: Achieved first profitable quarter in Q4 FY26 and continued profitability in Q2 FY27
  • Q2 FY27 Performance: ₹28 crores sales with positive PBT of approximately ₹2 crores
  • H1 FY27 Performance: ₹47 crores sales with negligible loss of ₹0.02 lakhs
  • Future Guidance: Targeting ₹225 crores revenue in FY27-28 with potential for further expansion

Dividend Declaration

  • First Ever Interim Dividend: ₹5 per share of face value ₹10 declared for FY26-27

State Incentives

  • Current Year Received: ₹1.62 crores (vs ₹9 crores in previous year)
  • Expected Additional: ₹12-15 crores to be received in next 6 months

Management Guidance and Outlook

  • Revenue Growth: Maintains 20% year-on-year growth guidance for FY27
  • EBITDA Margin: Expects to maintain current margin levels
  • Volume Growth: Q2 volume growth of 4% year-on-year; H1 volume growth of 7-7.5%
  • Future Target: Confident of reaching close to ₹4,000 crores revenue (approximately ₹3,750 crores)

Business Segments and Market Position

  • Revenue Source: 70% from non-petroleum source raw materials, providing insulation from geopolitical disruptions
  • Market Expansion: Growing demand in African markets and new product applications
  • Customer Base: Supplies to top multinational companies across product portfolio

Raw Materials and Supply Chain

  • Sourcing: Diversified sourcing for CST and GTO raw materials
  • Freight Cost Management: Implemented quarterly pricing mechanism with customers to pass through freight cost variations
  • Geopolitical Impact: Minimal impact due to diversified raw material sourcing strategy

Regulatory and Compliance Matters

  • Merger Update: Privi Fine Sciences and Privi Biotechnology merger awaiting regulatory approvals, expected before FY27 end
  • Capacity Constraints: 6,000 MTPA capacity awaiting Pollution Control Board permissions for expansion
  • Product Approvals: Regulatory approvals in process for new specialty molecules

Question & Answer Highlights

Capacity Utilization

  • Current utilization at 85-90% across plants
  • Phase 1 expansion volumes expected to significantly contribute in Q4 FY27 with new annual contracts

Working Capital Management

  • Improved collection efficiency with customers paying on time or early
  • Long-term working capital cycle expectation of 105-110 days

Product Development

  • 5 different products in development, with 4 already supplied to top multinationals
  • Pilot production and customer qualification ongoing for new Phase 2 products

Market Opportunities

  • Positive outlook due to European market conditions creating opportunities for compliant Indian manufacturers
  • Strong customer response for next year contracts with increased offtake expectations