Financial Results (Q1 FY27)

  • Total Operating Income: INR 121.27 crores
  • EBITDA: INR 16.5 crores
  • EBITDA Margin: 13.6%
  • Net Profit: INR 8.14 crores
  • PAT Margin: 6.76%

Segment-wise Revenue Breakdown

  • MCC Segment: INR 82.74 crores
  • O&M Segment: INR 13.06 crores
  • API Segment: INR 21.68 crores

Operational Highlights

  • Overall capacity utilization stood at 76.8% for the quarter
  • Dahej unit utilization: 76.5%
  • Jhagadia unit utilization: 77.16%
  • MCC realization increased to INR 241.36 per kg from INR 216 per kg in Q4 FY26
  • Export contribution: 53.5% of production

Capacity Expansion Projects

  • Current cellulose-based excipient capacity: 18,000 metric tons per annum
  • 12,000 MTPA MCC expansion at Dahej-2 progressing on schedule
  • Target commissioning: Q2 FY28 (previously expected Q1 FY28)
  • Post-expansion total capacity: 30,000 metric tons per annum
  • 1,800 ton Croscarmellose Sodium (CCS) facility at Dahej SEZ advancing

Product Innovation

  • Launched HiCel SMCC Nutra during the quarter - a combination of microcrystalline cellulose and magnesium aluminometasilicate for nutraceutical formulations
  • Supports strategy to move up the value chain with differentiated application-specific excipients

Guidance and Outlook

  • Full-year FY27 revenue guidance maintained at INR 650-675 crores
  • Full-year EBITDA margin guidance maintained at 18%
  • Management expects quarter-on-quarter improvement in revenues and margins
  • API business expected to contribute INR 100-110 crores for FY27

Capex Plans

  • FY27 capex: Approximately INR 100 crores
  • FY28 capex: INR 150-200 crores
  • Funding options being considered include term loans, internal accruals, or preferential equity
  • Company is currently debt-free

Insurance Claim Update

  • Insurance assessment completed for previous incident
  • E-auction process initiated
  • Expecting full claim settlement or ad-hoc payment by September 2026
  • Expected claim amount: INR 16.5 crores (against policy of INR 25 crores)

Q&A Session Key Points

MCC Business:

  • Management attributes MCC price increase to quality differentiation and regulatory compliance requirements rather than supply disruptions
  • Lost market share attributed to capacity shortfall of 6,000 MTPA from previous incident
  • Expect to regain market share once new capacity comes online
  • Export market remains primary focus for MCC sales

API Business:

  • Key molecules include Sparsentan, Zestrapin, and Bempedoic acid
  • Expecting higher margins from new API molecules
  • Cystic fibrosis product inquiries coming in, with clearer outlook expected next quarter

CCS Business:

  • Planning to procure CMC from China rather than backward integrate
  • Targeting export market primarily
  • Expecting margins above 25% for CCS products
  • Already receiving inquiries from existing MCC customers for CCS

Financial Performance:

  • Management confident in achieving guidance through improved utilization, product mix changes, and debottlenecking
  • Working capital days currently at 93-94 days, targeting reduction to 75-80 days
  • Tax liability due to MAT after setting off losses

Forward-looking Statements

Discussion included forward-looking statements about capacity expansion, revenue growth, margin improvement, and market opportunities. These are subject to risks and uncertainties.