Capacity ramp hampered by weak demand and 40% guidance cut to 30-40%

Revenue -5.6% YoY, PAT -14.9% YoY, EBITDA margin 12.34% below 13-15% target

Hedged to 30-40% growth; down 5.6% in Q1 with weak pipes demand

Revised down to ₹30-35 Cr in Q4 only (partial year contribution)

Currently 18% at 30-35% utilization; raw material supply disruptions limiting pass-through

Commissioned May 2026, only 30-35% utilization expected in Q2-Q3; substantial headwind

40% → 30-40% hedge; Q1 actual -5.6% YoY signals sub-30% risk for full year

₹50-60 Cr → ₹30-35 Cr; only Q4 partial-year revenue now vs full-year prior assumption

August target → Sep-Oct 2026; 1-2 month delay; management downplayed revenue impact

Commissioned May 2026 but only 30-35% used in Q2-Q3; no acceleration narrative

Still targeting 20-22% but pushed to Q3-Q4 from prior 'ramp' narrative; demand-supply gap persists

Demand was degrowth last quarter but picking up from August; PVC prices stabilizing, farmers and retailers resuming purchases

Yes, we are very positive on that.

Currently at 18%; demand-supply gap exists. Expect 20-21% by Q3-Q4 FY27. Raw material supply disruptions limiting pass-through.

Generally we don't share product volume data; please connect offline for further details.

Reduction in sales expenses (no exhibitions) and lower ECL provision. Negligible EBITDA impact despite lower sales and drop in contribution margins.

Plant commissioned May 21, 2026. Currently 30-35% utilization expected in Q2-Q3.

Definitely maintaining... but war situation impacted demand slightly. Will be maintaining 30-40% growth this year.

FY27: ₹65-70 Cr. 3-year horizon: ₹150-200 Cr.

Partly yes, the last three months only. Initially estimated ₹50-60 Cr; now targeting ₹30-35 Cr.

No threat; we supply additives (25% of formulation), they supply resin (75%). Complementary, not competitive. Technology is new, transition takes time.

Shipping costs and war scenario prevent pass-through. In normal scenario, we pass cost changes to customers. Three major competitors in lead-free: Baerlocher, Reagens, Goldstab. CPVC has minimal competition.

23-24 was lead-free only, high margin. Now added CPVC (lower margins 3-7% initially). EBITDA 13-15%, PAT 11-12% going forward (maintained).

Palghar capex ₹71 Cr, peak ₹700-800 Cr revenue over 3 years. Egypt ₹68 Cr, peak ₹250-300 Cr over 3 years. 35% CAGR over 3 years.

Now Sep-Oct 2026 (1-2 month delay). Equipment delay; revenue impact from stearates will be modest.

Still identifying business model. Some revenue this quarter. Collaborations under negotiation with external companies for innovative products.

In normal scenario, yes. War scenario prevents pass-through of freight/CFS charges. CPVC margins improved from 6-7% to 17-18% as we optimized raw material sourcing.

Margins will increase once manufacturing facility is settled. Currently using CDMO route for seed marketing.

Hedged due to demand weakness; Oleo ₹65-70 Cr, Egypt ₹30-35 Cr partial-year contribution

Started at ₹5.3 Cr Q1; 10x growth in 3 quarters aggressive; seed marketing stage only

Halved from prior ₹50-60 Cr assumption; Dec 2026 commissioning → only 1 quarter revenue

Q1 delivered 12.34% below range; capacity utilization 30-35% headwind; freight cost absorption ongoing

Dependent on capacity ramp and product mix improvement; Q1 at 9.9% below guidance

Currently 18%; demand-supply gap persists; raw material supply disruptions limiting pass-through

Commissioned May 2026; 30-35% utilization Q2-Q3; ramp trajectory unclear

Halved revenue guidance; execution risk on Dec 2026 commissioning; war/shipping delays cited

Pipes sector in degrowth Q1; CPVC and lead-free demand both under pressure; recovery from August unverified

Palghar commissioned May 2026 but only 30-35% utilization expected Q2-Q3; significant drag on ROIC and margins; ramp timing uncertain

EBITDA margin 12.34% vs 13-15% guidance. Drivers: (1) shift to lower-margin CPVC (18% vs lead-free 20%+), (2) freight cost surge unable to pass through, (3) raw material supply disruptions. War scenario blamed but no mitigation path.

Egypt revenue halved (₹50-60 Cr → ₹30-35 Cr); stearates delayed Aug → Sep-Oct 2026; Palghar ramp slower than expected. Pattern of guidance downgrades increases execution risk premium.

Oleo segment started ₹5.3 Cr Q1, targeting ₹65-70 Cr FY27 (12x growth); Rivadu pharma still identifying business model with no clear revenue path. Both carry execution and revenue recognition risk.