Record EBITDA, but Q1 peak transient; H2 normalization expected

EBITDA +86.8% YoY (₹135.1→252.5 Cr), PAT +108.7% YoY. Revenue +39.4% on 5% volume growth.

Stated figures match management narrative. AMET offset by India/RoW strength.

Represents 77% increase. Driven by reformulation recovery, specialty mix, West Asia pricing gains, inventory stocking. Management explicitly states this is elevated.

Guidance range ₹24,000-25,000 for full FY27 implies Q1 weighted heavily. Q1 was ₹35.5k; average of ₹21k (next 3 quarters) = (35.5 + 3×21)/4 = ₹24.6k midpoint ✓

Not quantified in results, but acknowledged in Q&A as cost inflation passed to customers via CIF pricing.

Prior ₹19,000-21,000 → New ₹24,000-25,000 for FY27. Midpoint +28%. Reflects structural gains in specialty mix and US recovery.

Tariff clarity removed prior headwind. Everbond new product momentum, customer project approvals flowing. TRI-K premium specialties strong.

Oleochemical now favored vs petrochemical due to cost dynamics. Volumes recovered to 11% growth. Risk remains if crude drops materially.

Customer backward integration permanent loss in Egypt. Mitigated by geographic diversification, but structural headwind acknowledged. Demand resilient; supply-led recovery in progress.

Q1 achieved 5% (below 6-8% range), but management confident on India/AMET momentum for H2 ramp. Implies 7%+ needed in Q2-Q4.

Reformulation recovery gave volumes back + operating leverage. Specialty mix improving. US tariff recovery. Some commercial opportunities selective. H2 guidance ₹21-22k/MT factors structural gains.

TRI-K premium specialties strong. Everbond new product showing significant momentum, meaningful revenue contribution. Customer approvals falling in place Feb onwards as tariffs came down. Expect continuation.

Balance currently favorable for oleo. If petrochemical prices drop significantly + alcohol prices stay elevated, risk exists. But we have petrochemical derivative capacity ready; all approvals in place. Flexibility built-in.

Palm oil prices already factored mandate in. Forecast stable at ₹2,600-2,800 per ton. No significant jumps or corrections expected. Stability aids business management.

GST rationalization flushed prior stocks to Nov. Momentum restarted Jan-Feb. West Asia crisis + festive season demand prep drove some extra buying. Momentum still healthy; customers preparing for festive demand.

Confident. AMET demand not an issue; supply constraints resolved now. India showing good momentum. No black swan seen. Only risk if demand impacted by external shock.

Would like it, but need to wait. Don't want to overpromise/under-deliver. Re-evaluating, but would wait at least one quarter before raising guidance further.

No pressure. Transparency with customers on pricing rationale. When they understand reasons (cost pass-through, rupee, commodities), they accept. Customers trust our honest engagement.

Guidance factors all this. Q2 momentum intact per customer commentary. Monsoon deficit answer by end-Q2. If not an issue, H2 very different and better. Customers indicating Q2 momentum clear.

Introduced Beauty & Wellness segment, Leaveon via Emollient/Esters. Launched SimpliX, Biosurf, Everbond. Projects in pipeline. Inorganic component planned but no announcement yet; work happening. Capex ₹150 Cr annually across initiatives.

Freight doubled (CIF embedded). Mix changed within performance portfolio (70% vs 100% active products). Better prepared when headwinds became tailwinds. Achieved ₹35,000/MT; H2 normalized to ₹21-22k /MT.

Without transients, would still be ~₹21,000/MT. Denominator increased (performance grew more). Specialty absolute terms showed very good growth. Signals structurally specialty momentum sustaining.

Europe: Projects in pipeline not maturing due to customer caution; gotten better now. U.S.: Demand upbeat, economy growing, inflation easing per Fed. No structural demand worry U.S.; some approval time lag for new products but improving.

Technically should decline, but El Nino next year will impact production. Indonesia 40-50% biodiesel mandate adds variability. Multiple moving parts. Quarter-on-quarter management best approach.

Capex done. Only debottlenecking investments going forward. No acquisitions planned in AMET. Market not structurally worsening; diversifying to other markets within AMET region.

Due to customer confidentiality, can't disclose numbers. Not materially impacting overall results. Will be completed by end-FY27. Separate business segment.

Contractual business has clear latent cost-increase/decrease pass-through methodology. Spot prices revised as needed. Transparency with customers ensures fair observation of cost changes.

Progressing well on evaluation and mandate setting. Need right fit, accretive to profitability, aligned with strategy. Hope to announce in coming quarters. Won't do anything just for FOMO.

No transition strategy. Growing both legs equally. More products launching next quarter. New products contribute >5% revenue/margins by 2030. First-to-market positioning gives us competitive edge; customers take time on approvals.

Industry demand resilient despite inflation. We have largest portfolio in India and larger scale/customer base than peers. Differentiated business model underscores robustness.

Q1 achieved 5%; expect H2 acceleration. India momentum robust; AMET recovery underway. Contingent on no new geopolitical black swan.

Q1 achieved ₹35,458 (elevated). Q2-Q4 expected ₹21,000-22,000 normalized. Average = ₹24-25k implies structural gains offset normalizations.

Allocated to capacity for specialty ingredients growth, Beauty/Wellness portfolio, Mexico EPC completion, debottlenecking in AMET.

Q1 saw 7 weeks of AMET (Egypt) raw material stocking due to port congestion (Jebel Ali, Geisum, Jeddah). Ports still congested; transit times elevated; freight rates doubled.

Fatty alcohol prices moved USD 2,800→3,300→2,500/MT within Q1 (18% intra-quarter swing). Indonesia 40-50% biodiesel mandate, El Niño next year add variability.

One major customer backward integrated in Egypt local market; permanent loss of volumes. AMET volumes down 4% YoY despite strong recovery narrative.

Currently oleochemical favorable (high) vs petrochemical (lower). If crude drops 30%+ and alcohol prices stay elevated, customers revert to petrochemical, impacting specialty ingredients.

Management flagged monsoon deficit impact as key unknown for H2 earnings. If rural demand impacted, H2 volume growth could fall short of 6-8% target.