Business Performance Highlights

FY26 was described as a "transformational year" with multiple strategic milestones including successful listing completion, acquisition of Nutrition Supply Services (NSS) in Europe, progress on new greenfield manufacturing expansion, and initiation of battery material project construction at Dahej, Gujarat.

Financial Performance - FY26

  • Revenue from operations: ₹642.3 crores (27.9% YoY growth from ₹501.9 crores in FY25)
  • EBITDA: ₹221.9 crores (16.8% YoY growth from ₹189.9 crores in FY25)
  • EBITDA margin: 34.6% (down from 37.8% in FY25)
  • PAT: ₹174.3 crores (25.7% YoY growth from ₹138.7 crores in FY25)
  • Export contribution: 60% of revenue
  • Domestic contribution: 40% of revenue

Financial Performance - Q4 FY26

  • Revenue from operations: ₹182.3 crores (15.7% YoY growth from ₹157.5 crores)
  • EBITDA: ₹62.6 crores (6.5% YoY growth from ₹58.8 crores)
  • EBITDA margin: 34.3%
  • PAT: ₹48.5 crores (9.7% YoY growth from ₹44.2 crores)

Business Vertical Performance

Pharma Food & Nutrition Vertical (56% of FY26 revenue):

  • Revenue growth of 10% over FY25
  • Driven by healthy demand across calcium and iron portfolio
  • India and Europe were key growth contributors
  • Strong demand for next-generation mineral molecules (bisglycinate) under AbsorBis brand
  • Global demand for bisglycinate ingredient category estimated at ~$1 billion

Specialty Ingredients Vertical (44% of FY26 revenue):

  • Revenue growth of 62% YoY to ₹280 crores (from ₹172 crores in FY25)
  • Strong traction across infant nutrition, medical nutrition, sports nutrition, and dietary supplements
  • 51 new customer approvals received in FY26

Operational Updates

NSS Acquisition Integration:

  • Integration process across operations and supply chain progressing smoothly
  • Appointed Mr. Mattias Fredrickson as new business head of NSS
  • Fredrickson brings 30+ years of industry experience in pharma and nutrition ingredient sector

Greenfield Manufacturing Project:

  • Successfully completed internal production validation and qualification
  • Customer approval process initiated (expected timeline: 6-12 months)
  • Will enhance capabilities in high-value molecules including glycinate and gluconate

Battery Materials Project (Sudeep Advanced Materials):

  • Groundbreaking ceremony completed at Dahej, Gujarat
  • Phase 1 capacity of 25,000 metric tons per year on track for April 2027 commissioning
  • Currently engaged with 42 customers across cathode, cell, EV, and ESS ecosystem
  • Customer breakdown: 22 at lab validation, 14 at pilot-scale evaluation, 6 completed commercial validation
  • Received initial commercial purchase orders including ~700 metric tons in recent month
  • Revenue potential at 100,000 tons capacity: ₹1,600-1,800 crores
  • Total capex for 100,000 tons capacity: ~₹600 crores

Working Capital and Balance Sheet

  • Working capital days increased from 184 days to 213 days
  • Inventory value increased by ₹88 crores YoY
  • Raw material inventory: Increased by ₹41 crores (from ₹54 crores to ₹95 crores)
  • Finished goods inventory: Increased by ₹37 crores (strategic build-up for Europe and US commitments)
  • Cut-off sales impact: ₹10 crores increase in finished goods
  • Net debt: ₹33.6 crores as of 31st March 2026
  • Net debt-to-equity ratio: 0.04x
  • Target working capital days: 150-160 days for FY27

One-Time Expenses in Q4

  • CSR expenditure: ~₹3 crores
  • Higher power and fuel cost (LPG shortage): ~₹1.5 crores
  • Air freight expenses: ~₹2 crores (due to production delays)

Capacity Utilization

  • Pharma food nutrition: 65-70% utilization
  • Specialty ingredients: 35-40% utilization

Growth Outlook

  • Pharma food nutrition expected to grow faster than FY26's 10%
  • Specialty ingredients expected to maintain similar growth trajectory
  • Without incremental capex, existing business can scale to ₹1,000-1,200 crores
  • Margin expected to improve back to historical levels (37-38%) in coming quarters

Management Participants

  • Mr. Sujit Bhayani – Managing Director
  • Mr. Shanil Bhayani – Director
  • Mr. Ketan Vyas – Chief Financial Officer