Profitability beat masks revenue miss; macro headwinds vs growth guidance

Q1 delivered -12% YoY decline (₹391 Cr); volume down 17%

Consolidated Q1 achieved 18%, Crop Protection 19.9%, Pigments 12.1%

Q1 EBITDA margin 12.1% vs prior year ~3%; but mgmt flags as 'odd quarter', targets ~10%

Positive contribution confirmed; ₹100 Cr guidance over 2-3 years (modest ramp)

Confirmed; negative EBITDA ₹3 Cr Q1, annualized ₹10-12 Cr loss; sulfur costs 8-10x higher

Prior: 'double-digit growth'. Delivered: -12% YoY in Q1 Crop Protection. Mgmt maintains long-term view but admits 'one or two quarters might be little difficult'.

Margin 12.1% this quarter vs ~3% prior year; but management flags as 'odd quarter', targets ~10% normalized. Better than prior expectation but not sustainable at current level.

Added Nano DAP, Nano NPK, Nano Zinc beyond Nano Urea. Trial orders received globally. ₹100 Cr revenue guidance over 2-3 years.

Prior: 'temporarily suspended'. Now: indefinite suspension pending sulfur normalization (currently 8-10x normal cost) and anti-dumping duty restoration. No timeline given.

Utilization may stay in this range. Revenue guidance ₹550-600 Cr annualized. Tariff headwind from prior year now over; improvements visible from cost reduction efforts.

Very optimistic on growth over next 2-3 years due to new registrations and product development. Double-digit growth expected with healthy margin improvement.

No such guidance given. Crop Protection guidance: double-digit growth over 2-3 years at 15-17% margin. At 85-90% utilization: ₹2,500-3,000 Cr. Pigments: ₹500-600 Cr (no big capex).

Will try to maintain ₹500-600 Cr revenue and ~10% margin via corrective actions on operational cost. Realization pressure real but will focus on profitability.

About 5-6% from better realization; balance from efficiency improvements undertaken over the past year.

Not much inventory at customer or distributor level; buying on spot basis by requirement. Healthy demand in both segments; macro is the only volatile factor.

Amalgamation of wholly owned subsidiaries using pooling method. Consolidated financials continue. Benefits from cost reduction and operational discipline (multiple stock points closure).

Cannot disclose volume, but relatively healthy growth in domestic and global. Long-term: couple of INR100 Cr revenue over 2-3 years from entire Nano fertilizer basket.

Top line roughly in this range Q-o-Q. Bottom line this quarter was higher; prefer to target ~10% EBITDA margin. Yes, revenue is quarterly run rate.

MOL also converts products to fertilizer; product-by-product differs. Have been doing this for many years and selling.

Capacity utilization reduced across companies due to higher cost and lower demand. Industry is stagnant; little M&A activity expected.

Kilburn Chemicals (TiO2): negative EBITDA ₹3 Cr Q1. Overall loss if suspended full year: ~₹10-12 Cr. Suspension has reduced the loss significantly.

15-16% overall very high. Crop Protection targets 15-17% (industry avg), Pigments ~10%, consolidated expected 12-13% due to other segment effects and TiO2 drag.

Annual repayment ~₹130 Cr at 7% avg cost = ~₹9 Cr annual interest saving.

Two reasons: (1) Switched to INR debt (lower rates, no MTM loss vs prior FX volatility). (2) Debt reduction repayment ongoing. Going forward, MTM impact minimal; continuous debt reduction with no heavy capex.

17% volume reduction. Company focused on profitability via product mix rather than top-line; pricing was selective based on market conditions.

Primarily Latin America. Demand there slowly improving but pricing pressure from global macro and input cost increase.

Demand is there gradually improving. Pressure is from pricing due to global macro input cost rise. Company prefers to focus on bottom-line rather than chase top-line growth.

Very optimistic on overall year and next 2-3 years. Maybe 1-2 quarters difficult near-term. Healthy growth expected in Crop Protection and Nutrition; Pigments stable top-line with better profitability.

Top-line can be maintained around this level. Bottom-line may vary +/- but targeting ~10% EBITDA.

Waiting for two factors: (1) raw material (sulfur/acid) price normalization—currently 8-10x normal cost, driven by Middle East war; (2) anti-dumping duty restoration. No timeline; operation suspended indefinitely.

Q1 missed (-12% YoY). Management maintains guidance but acknowledges near-term macro headwinds. 85-90% utilization could support ₹2,500-3,000 Cr peak

Q1 annualized ~₹524 Cr; steady-state targeting 40-50% utilization. No major capex. Supported by margin focus strategy

From a small base; trial orders received globally. Dependent on regulatory approvals and market adoption of nano products

Q1 delivered 19.9%, above guidance. Sustainability dependent on volume recovery and pricing stability amid macro pressure

Q1 was 12.1% ('odd quarter'). Management expects normalization to ~10%. Driven by operational efficiency, not top-line growth

Implies mix of Crop Protection ~16%, Pigments ~10%, Nano modest contribution, TiO2 drag ~₹10-12 Cr annual loss

Debt repayment prioritized (₹130 Cr/year). Pigments no expansion capex; Crop Nutrition capex modest for product development

Q1 volume down 17% YoY, primarily Latin America. Despite management saying 'demand is there gradually', the 12% revenue decline contradicts prior 'double-digit growth' guidance. Q1 miss by 22pp.

Sulfur/sulfuric acid: 8-10x price increase (₹4-5 to ₹35-40). Driven by Middle East geopolitical tensions. TiO2 plant offline indefinitely as a result. No normalization timeline visible.

TiO2 operations suspended due to commercial unviability. No timeline for restart. Waiting for: (a) sulfur price normalization, (b) anti-dumping duty restoration. Annualized loss ₹10-12 Cr if suspended full FY27.

Crop Protection 63% utilization, Pigments 39%. Soft demand and macro volatility prevent ramp-up. Management prioritizes profitability over growth, indicating limited confidence in near-term volume recovery.

Latin America was primary driver of Q1 volume decline. Weather, demand, and pricing pressure in the region directly impacted consolidated revenue. Recovery dependent on macro stabilization there.