Company Disclosure

Financial Performance Highlights

Q2FY27 Performance (Quarter ended September 30, 2026)

  • Revenue from Operations: ₹23.29 Crores (down 23% YoY from ₹30.32 Cr in Q2FY26, up 62% QoQ from ₹14.36 Cr in Q1FY27)
  • Total Income: ₹24.70 Crores (down 20% YoY from ₹31.00 Cr)
  • Operating Expenses: ₹19.36 Crores (down 6% YoY from ₹20.70 Cr)
  • EBITDA (Excluding OI & EI): ₹3.94 Crores (down 59% YoY from ₹9.62 Cr)
  • EBITDA Margin: 16.9% (down 1,483 bps YoY from 31.7%)
  • Finance Cost: ₹0.58 Crores (down 43% YoY from ₹1.01 Cr)
  • Depreciation & Amortization: ₹2.50 Crores (down 3% YoY from ₹2.59 Cr)
  • PBT: ₹2.26 Crores (down 66% YoY from ₹6.71 Cr)
  • PAT: ₹1.63 Crores (down 67% YoY from ₹4.96 Cr)
  • EPS: ₹1.28 (down 67% YoY from ₹3.86)

H1FY27 Performance (Half year ended September 30, 2026)

  • Revenue from Operations: ₹37.65 Crores (down 32% YoY from ₹54.98 Cr in H1FY26)
  • Total Income: ₹40.00 Crores (down 29% YoY from ₹56.33 Cr)
  • Operating Expenses: ₹30.37 Crores (down 20% YoY from ₹38.07 Cr)
  • EBITDA (Excluding OI & EI): ₹7.29 Crores (down 57% YoY from ₹16.92 Cr)
  • EBITDA Margin: 19.4% (down 1,141 bps YoY from 30.8%)
  • Finance Cost: ₹0.89 Crores (down 54% YoY from ₹1.95 Cr)
  • Depreciation & Amortization: ₹4.94 Crores (down 1% YoY from ₹5.01 Cr)
  • PBT: ₹3.79 Crores (down 66% YoY from ₹11.31 Cr)
  • PAT: ₹2.75 Crores (down 67% YoY from ₹8.41 Cr)
  • EPS: ₹2.15 (down 67% YoY from ₹6.55)

Balance Sheet Position (as of September 30, 2026)

  • Shareholders' Funds: ₹165.79 Crores (compared to ₹163.02 Cr as of FY26)
  • Non-Current Liabilities: ₹22.61 Crores (compared to ₹23.03 Cr as of FY26)
  • Long Term Borrowings: ₹20.62 Crores (compared to ₹21.25 Cr as of FY26)
  • Current Liabilities: ₹21.97 Crores (compared to ₹21.69 Cr as of FY26)
  • Short Term Borrowings: ₹5.37 Crores (compared to ₹9.42 Cr as of FY26)
  • Trade Payables: ₹14.84 Crores (compared to ₹9.44 Cr as of FY26)
  • Total Equity and Liabilities: ₹210.37 Crores (compared to ₹207.74 Cr as of FY26)
  • Non-Current Assets: ₹122.85 Crores (compared to ₹121.91 Cr as of FY26)
  • Tangible Assets: ₹64.63 Crores (compared to ₹68.08 Cr as of FY26)
  • CWIP: ₹16.30 Crores (compared to ₹12.38 Cr as of FY26)
  • Current Assets: ₹87.52 Crores (compared to ₹85.83 Cr as of FY26)
  • Inventories: ₹33.53 Crores (compared to ₹24.01 Cr as of FY26)
  • Trade Receivables: ₹21.12 Crores (compared to ₹32.57 Cr as of FY26)
  • Cash & Bank Balances: ₹17.36 Crores (compared to ₹13.45 Cr as of FY26)
  • Investments: ₹11.38 Crores (compared to ₹12.45 Cr as of FY26)

Cash Flow Summary (H1FY27)

  • Cash from Operating Activities: ₹14.64 Crores (compared to ₹17.66 Cr in H1FY26)
  • Cash from Investing Activities: -₹5.17 Crores (compared to -₹8.23 Cr in H1FY26)
  • Cash from Financing Activities: -₹5.55 Crores (compared to -₹5.73 Cr in H1FY26)
  • Net Cash Flow: ₹3.92 Crores (compared to ₹3.70 Cr in H1FY26)
  • Cash at Beginning of Year: ₹13.36 Crores
  • Cash at End of Year: ₹17.28 Crores

Management Commentary & Business Updates

Operational Challenges & Response

  • FY27 began with challenging conditions due to subdued demand from Europe and difficult operating environment
  • Company sharpened focus on domestic market to compensate for softer exports
  • European customer traction showing improvement signs
  • Raw material prices rose significantly and remained volatile through the quarter

New Product Launches

  • Commenced commercial production of two new pharmaceutical intermediates:
  • One for anti-diabetic applications
  • One for cardiovascular applications
  • Both products received encouraging response in domestic market
  • Plans to take these products to export markets in coming quarters

Growth Initiatives & CRAMS Business

  • CRAMS business made strong progress during the quarter
  • Specialty chemicals project for South-East Asian markets:
  • Successfully completed pilot trials
  • Batches undergoing stability testing
  • Commercial supplies expected from Q1FY28
  • Second specialty chemicals product for same region:
  • Cleared laboratory trials
  • Moved to pilot stage
  • European pipeline: Positive progress on two molecules for pharmaceutical and agrochemical applications
  • Construction of Block 7A complete and trials begun

Expansion Projects

Ankleshwar Site:

  • Currently 7 functional production blocks
  • Block 8 added in FY24
  • Block 7 to be commissioned in H1FY27
  • Ongoing CAPEX for Plant 7
  • Commissioning of new Pilot Plant with Automation and Flow Chemistries in Q4FY26
  • Projected CAPEX for Plant 7: ~₹20 Crores
  • FY26 CAPEX outlay: ₹15 crores for new manufacturing block and R&D initiatives

Infrastructure at Ankleshwar:

  • 35 Glass Lined Reactors (1000 to 25,000 Ltr, including 2 cryogenic at -30°C)
  • 28 Stainless Steel Reactors (1000 to 15,000 Ltr, including 1 cryogenic at -40°C)
  • 3 Autoclave Reactors (2000 Ltr, up to 40 bar pressure)
  • 9 Dryers (1000 to 2,500 Ltr, atmospheric & vacuum)
  • 8 Distillation Setups (up to 70 stages, high vacuum up to 1 mbar, including short path and thin-film distillation)
  • 4 Warehouses (up to 500 pallets capacity)

Dahej Expansion:

  • Acquired 40,554 sq m land parcel at Dahej in 2022
  • Capital outlay for land acquisition: ₹11 crores
  • Initiated construction of common infrastructure, utilities, and warehousing facilities
  • Site to host large-scale projects with corporates for custom product requirements
  • Multiple projects under evaluation with customers (details protected by NDAs)
  • Expansion to be carried out in phased manner

R&D Capabilities

  • R&D Lab recognized by DSIR (Department of Scientific and Industrial Research)
  • R&D and Process Team: 40 total members
  • R&D Head has 18 years of experience and two patents
  • Exploring setup of R&D facilities in foreign locations
  • State-of-the-art infrastructure including advanced analytical labs, pilot plants, dedicated synthesis labs, HPC for molecular modeling
  • Adding new R&D block for pilot trials and scale-ups

Business Model Evolution

  • Revenue contribution from intermediates for off-patent drugs: previously >90%, now <60%
  • Increasing focus on specialty and fine chemicals for patented molecules and customer-specific innovative molecules
  • Expected to reach >60% revenue contribution from specialty chemicals in coming years
  • Evolved from 20-50 tonnes/year projects to 80-100 tonnes/year, now receiving inquiries for >500 tonnes per year
  • Advanced from being third to second supplier for medium-sized projects

Historical Financial Performance (5-Year Summary)

Revenue from Operations:

  • FY22: ₹71.29 Cr, FY23: ₹91.36 Cr, FY24: ₹125.90 Cr, FY25: ₹108.60 Cr, FY26: ₹109.29 Cr
  • CAGR (FY21-25): 11%

EBITDA:

  • FY22: ₹17.92 Cr, FY23: ₹23.44 Cr, FY24: ₹41.81 Cr, FY25: ₹39.21 Cr, FY26: ₹35.02 Cr
  • CAGR (FY21-25): 18%

PAT:

  • FY22: ₹13.40 Cr, FY23: ₹15.18 Cr, FY24: ₹28.12 Cr, FY25: ₹23.10 Cr, FY26: ₹17.77 Cr
  • CAGR (FY21-25): 7%

Company Overview

  • Established in 2004 with over 21 years of chemical manufacturing expertise
  • Specializes in pharmaceutical intermediates and specialty chemicals
  • Serves over 21 countries including EU and US markets
  • Core chemistry capabilities: Halogenation, Reduction, Methylation, Alkylation, C-C Bond Formation, Oxidation, Low-Temperature Chemistry
  • Multiple accreditations including ISO 14001 certification
  • Sustainability initiatives: 2.5 MW solar power park generating up to 70% electricity from renewable sources

Investment Merits Highlighted

  • Lean balance sheet with minimal debt
  • Experienced management team
  • Increasing focus on complex molecules and niche specialty chemicals
  • Available land for capacity expansions
  • Large addressable market opportunity

Forward Looking Statement

Document contains forward-looking statements that may involve known or unknown risks and uncertainties. Company does not assume obligation to update forecasts, expectations or statements contained in the presentation.