Event Type: Q2 and H1 FY27 Earnings Conference Call

Date and Time: October 26, 2026 (time not specified)

Purpose: Discussion of quarterly results for Second Quarter and Half Year ended September 30, 2026 and strategic updates

Management Participants:

  • Mr. Mihir Manek – Joint Managing Director
  • Mr. Mitesh Manek – Chief Financial Officer
  • Moderator: Ms. Vidhi Vasa – MUFG Intime India Private Limited

Financial Period Discussed: Q2 FY27 and H1 FY27 (ended September 30, 2026)

Presentation Availability: Investor deck was uploaded on exchange and company's website prior to the call. The conference was recorded and transcript was submitted to exchanges.

Compliance Statement: The call contained forward-looking statements based on beliefs, opinions and expectations as of the date, with disclaimer that these are not guarantees of future performance and involve unforeseen risks and uncertainties.

Financial Highlights:

  • Q2 FY27 Consolidated Revenue: INR136.5 crores (vs INR75 crores in Q2 FY26, +82% YoY)
  • Q2 FY27 Gross Profit: INR52.2 crores (vs INR38.1 crores in Q2 FY26)
  • Q2 FY27 EBITDA: INR26.4 crores (vs INR17.7 crores in Q2 FY26, +49.2% YoY)
  • Q2 FY27 PAT: INR17.6 crores (vs INR10.6 crores in Q2 FY26, +66.9% YoY)
  • Q2 FY27 PAT Margin: 12.9% (vs 14.1% in Q2 FY26)
  • H1 FY27 Consolidated Revenue: INR282.8 crores (vs INR162.9 crores in H1 FY26)
  • H1 FY27 Gross Profit: INR101 crores (vs INR76.1 crores in H1 FY26)
  • H1 FY27 EBITDA: INR52.4 crores (vs INR38.2 crores in H1 FY26, +37.1% YoY)
  • H1 FY27 PAT: INR34.7 crores (vs INR23.3 crores in H1 FY26, +49.3% YoY)

Operational Metrics:

  • Q2 FY27 manufacturing volume: 1,554 metric tons
  • Installed capacity: 7,500 tons (reclassified from 8,100 tons due to product mix optimization)
  • Targeting 90% capacity utilization (approximately 1,875 tons per quarter)

Strategic Updates:

  • Dahej Facility: On track to achieve full capacity utilization during current financial year
  • New Dahej Expansion: 16,834 square meter plot allotted, construction to begin in Q4 FY27
  • Expected Capex: INR75-85 crores
  • Expected Revenue: INR225-250 crores from new facility
  • Commissioning Target: Middle to end of FY28
  • CoatIcon Business: Tablet coating solutions for pharmaceutical industry, experiencing strong customer demand
  • CoatIcon Approvals: Ongoing vendor approval process with domestic and international pharma companies (6-12 month stability studies required)
  • CoatIcon Current Sales: INR8-15 lakhs per month (sample supplies)
  • CoatIcon Capex Plans: INR25-35 crores investment in Roha facility through subsidiary Arjun

Market Context:

  • Global food colors market valued at USD3.5 billion in 2025, projected to reach USD5.6 billion by 2033 (5.9% CAGR)
  • Indian market growing at 7-9% annually
  • Geopolitical disruptions in Middle East affecting global trade: freight costs increased 3-5x, insurance premiums increased, shipping routes disrupted
  • Specifically mentioned Chicago freight costs increased from USD2,000-2,200 to USD10,000-11,000

Trading Business Explanation:

  • Trading sales increased to INR75 crores in H1 FY27 (from INR16 crores in H1 FY26)
  • Driven by spot opportunities and raw material inventory building as insurance against supply disruptions
  • Management characterized this as temporary utilization of funds set aside for capex

Funding Strategy:

  • Expansion to be funded primarily through internal accruals (company earning ~INR20 crores per quarter)
  • May consider small term loan for working capital liquidity if needed

Additional Notes Section

Attachments: Transcript of the earnings conference call was attached to the regulatory filing

Financial Data Disclosure: Extensive financial data was disclosed in the conference call transcript including revenue, profit figures, volume metrics, and forward-looking projections

Q&A Highlights:

  • Management addressed questions about capacity utilization, product mix, realization trends (currently ~INR700/kg)
  • Discussed working capital outflow of INR14.7 crores in H1 FY27 due to higher inventory storage and valuation cost inflation
  • Confirmed both Dahej expansion and CoatIcon projects running concurrently
  • Addressed investor concerns about stock performance and committed to improved investor relations engagement