Financial Results (Q4 FY26)

  • Total operating income: INR 121.89 crores
  • EBITDA: INR 15.4 crores
  • EBITDA margin: 12.63%
  • Net profit: INR 7.6 crores
  • PAT margin: 6.23%

Segment-wise Revenue Breakdown (Q4 FY26)

  • MCC segment: INR 85.33 crores
  • O&M segment: INR 14.63 crores
  • API segment: INR 17.06 crores
  • Other segments: ~INR 4.87 crores (implied)

Operational Highlights

  • Cellulose-based excipient sales: 14,857 metric tons in Q4 FY26
  • Capacity utilization: 82% for excipients
  • API facility utilization: 65-70%
  • Export contribution: 65% of total turnover (down from 72% previous year)
  • Export markets: 60+ countries with major chunks to USA, Europe, and neighboring countries

Expansion Projects and Capex

  • 12,000 MTPA MCC capacity project at Dahej: Progressing as planned, expected commissioning by Q4 FY27
  • Project cost: INR 106 crores
  • 1,800-ton CCS facility at Dahej SEZ: Progressing steadily, expected commercialization in Q1 FY28
  • Project cost: INR 90 crores
  • Total MCC capacity post-expansion: 30,000 MTPA by Q4 FY27
  • Land availability: 20 acres at Dahej, 25 acres at Kurnool for future expansion

FY27 Guidance

  • Revenue guidance: INR 650-675 crores
  • EBITDA margin guidance: 18-20%
  • Expected growth drivers: Incremental capacities from Dahej and Jhagadia, improved product mix
  • Seasonality: H2 expected to be stronger than H1

API Business Update

  • FY26 API revenue: ~INR 60 crores (14% of total revenue)
  • FY27 API revenue expectation: INR 100+ crores (18-20% of total revenue)
  • Cystic fibrosis API: Chemistry cracked, filing planned for current year
  • Patent protection for innovator until 2039
  • API R&D center strengthening regulatory capabilities and CEP filings

Insurance Claim Status

  • Total expected claim: ~INR 70 crores (INR 53.5 crores for fixed assets + inventory, INR 16.5 crores for business interruption)
  • Fixed asset loss: INR 49 crores
  • Inventory loss: INR 4.5 crores
  • Business interruption policy: INR 25 crores coverage
  • Expected partial payment by end-June 2026
  • Full provision made in accounts, potential for reversal

Hyderabad Facility Status

  • Plant remains shut due to incident
  • Matter sub judice, awaiting court clearance
  • No immediate plans for restart until legal matters resolved
  • Management focused on Dahej expansion instead
  • No expected additional liabilities beyond provisions made

Debt and Financing

  • Current debt: INR 145 crores (primarily working capital debt)
  • Long-term debt: Minimal
  • Promoter pledge: INR 13 crores outstanding against INR 4 crores shares pledged
  • Capex funding: Combination of internal accruals, potential equity fundraising, and term loans
  • Final decision on fundraising structure pending

Management Changes

  • Appointment of Mr. Atul Dhavle as Chief People Officer during the quarter

Credit Rating

  • Rating downgraded post-incident due to reduced profitability
  • Expectation of improvement as profitability recovers

Joint Venture Update

  • Middle East JV currently on hold due to global geopolitical situation
  • Expected review after six months

Promoter Shareholding

  • Promoter shareholding has declined over past two years
  • Promoters intend to gradually increase shareholding back to 48-49%

Q&A Highlights

  • New capacity ramp-up expected gradually: Q1 at 30%, Q2 at 40-50%, etc.
  • Customer retention strong despite temporary shifts to secondary vendors post-incident
  • CCS product expected to generate 2-3x higher revenue per ton than MCC with margins >20%
  • O&M segment margins stable at 21-22%
  • PLI scheme benefits expected: INR 8-10 crores in FY27
  • Target to reach INR 1,000 crore revenue possibly by FY29