Record margins backed by customer commitments; FY28 guide raised to ₹1,600 Cr

₹307.7 Cr revenue delivered; YoY growth 54.9% but management attributes 42% to volume, balance to price/mix

EBITDA ₹74.42 Cr on ₹307.7 Cr revenue = 24.2% — confirmed. Prior year margin was ~17%; this is +720 bps

Margin achieved via 65% utilization (up from 50%), product mix, and customer commitments. However, 24% is at historical high; supply chain stress acknowledged; maintenance (not growth) now guided

Company grew from ₹600 Cr to ₹850 Cr YoY; ~30% uplift attributed to new chemistry. Corroborated in call

Management stated moved from 30-40% long-term to 50%+. Formula-driven pricing mitigates volatility risk

Prior Q4 FY26 call indicated ₹1,500 Cr FY28 target. Now raised >₹1,600 Cr, driven by customer commitments + CAPEX ramp visibility + long-term contracts at 50% mix.

Plan was ₹125 Cr; revised ₹250 Cr for two new production buildings at Pakhajan. Targets ₹500-600 Cr revenue potential (2.5x turns).

Analysts Parth Agrawal challenged: historically guided 17-20%, now at 24% and managing confidence. Parag clarified leverage (50% → 65%), product mix, R&D, customer commitments. But framing shifted to 'maintain' not 'grow' margin going forward.

Prior 30-40% spot pricing. Now 50%+ on quarterly/6-month/yearly formula basis. Mitigates price volatility, stabilizes EBITDA %.

Company achieved this via right product mix, capacity utilization 50%→65%, NOT old stock. Marquee customer commitments backing confidence on sustaining EBITDA margins in coming quarters.

Customer commitment in place; expecting similar growth in coming quarters. Volumes should grow.

Still developing market, early inroads, customer acceptance good. Margins at par or slightly lower, nothing alarming.

Corrected analyst: targeting 70-75%, not 85-90%. No presumptions, grounded forecast only.

Industrial chemicals (existing + new). Peak potential mentioned ₹800 Cr at March 2026 base, FY28 guidance ₹1,600+ Cr. Phase-1 (Q1 FY28) ₹100 Cr, Phase-2 (Q4 FY28) ₹150 Cr. Ramp ~15 months from here.

Three factors: (1) Leverage — 50% → 65% utilization; (2) Customer offtake increase; (3) Product mix. R&D support and process optimization underlying. Multiple factors at play.

Initially in ₹50-100 Cr range. For CAPEX, yes, 2.5x assumption fair. New facility combined capacity will maintain 70-75% utilization healthy run rate.

¥12-15 Bn addressable market; aspiring to $200-300 Mn. Not aiming for $500Mn-$1 Bn immediately. Customers seek alternate supply chains. Not a challenge.

Quarterly pricing with customers wherever applicable. Negotiated better with customers in Q1 based on raw material direction hints. Price stable April-June.

Growing QoQ but no unit-wise number. Company-level utilization target 75% FY27. Won't speculate on Pakhajan solo.

EBITDA percentage constant, not per kg. Formula-driven pricing with customers; price up = better realization, price down = reduce price. Simple theory.

Gained ~30% revenue contribution from new product line over last 2 years (₹600 Cr → ₹850 Cr). Expecting ramp up further. All incremental growth from new chemistry.

Top customer ~7% of revenue. No customer list disclosed.

EV could be fit after 15-20 years. 10-year horizon, not a threat. Major growth from existing products, few new. Product mix and churning helping. Leverage from 65% → 75% will improve margins further.

Growth now contractual long-term not spot. Formula-based, margins remain stable. Contract types: evergreen (ongoing), 3-6 month pricing, or fixed 1-2 year tenure.

Effort to achieve better, but can't promise. Tomorrow's crises unknown. Prefer to maintain margin next 2-3 years; then discuss growth.

R&D backbone of company. Shut Vapi R&D, pivoted all to Pakhajan. Started pilot facility. Lots of customer requests + new customers coming based on chemistry profile. Marquee customers attracted by Pakhajan facility + R&D + turnaround.

Yes, products in last 12 months have better margin + higher offtake. Differential ~10-12% better than old products. Mix + utilization driving improvement.

Past 30-40% long-term, now 50%+. Formula pricing mitigates volatility.

Inventory down but due to supply issues on raw material side. Genuine supply issue. Export booking challenges (wait 3-4 weeks for containers, not enough ships/booking). Logistics team struggling. Our team working hard but struggling day-to-day.

Don't know whom we're replacing. USA market gaining (tariff issues gone, sales up sizably). Middle East, Europe growing well. Making inroads into Asian/African markets dominated by Asian players.

Yes, ₹1,600+ Cr excludes prior ₹125 Cr. For ₹250 Cr CAPEX: 2.5x asset turn.

Domestic ~10% growth. Major growth from export.

Will try our best to get that.

Up to 60-65% we have customers. To balance, need to search.

Not lube alone. Mix of industrial chemicals. Lube significant but not only segment. Diversification helps sustain (specialty → food → aroma → rubber → lubricant → now split into two). Works as hedge if one segment hit.

Backed by marquee customer commitments (disclosed long-term agreement + other NDA-protected contracts). ₹250 Cr CAPEX provides 2.5x asset turn potential (₹500-600 Cr new revenue). 65% of CAPEX capacity already booked.

Based on continued 70-75% utilization, customer commitment lock-in, and long-term formula pricing. Supply chain headwinds (raw material delays, export booking stress) introduce volatility. Management conservative: 'will try' not 'will achieve'.

Two production buildings at Pakhajan facility. Supporting infrastructure in place. Ramp-up ~15 months from now. Funding via ₹100 Cr borrowings expected in FY27.

Management conceded 'genuine supply issue on raw material side', 'export container booking challenges' (wait 3-4 weeks), 'not enough ships available'. Inventory cycle down 190 → 143 days partly due to supply constraints, not pure WC optimization.

24% EBITDA margin is highest in 8+ years; historically guided 17-20%. Achieved via 3 levers: (1) leverage (50%→65%), (2) product mix (+10-12% new products), (3) customer commitments. All three are time-bound or demand-dependent. Spot pricing still 50%; price volatility risk.

₹250 Cr CAPEX critical to FY28 guidance. Two-phase: Phase-1 (₹100 Cr, Q1 FY28), Phase-2 (₹150 Cr, Q4 FY28). ~15 months construction + machinery erection + stabilization. 65% capacity pre-booked, but remaining 35% demand-dependent. If ramp delayed or underutilized, ₹1,600 Cr guidance at risk.

Export 69% of revenue; USA tariffs were headwind (now removed), USA subsidiary recovering. But tariffs could return. Europe exposure to Russia/Ukraine. Middle East/Africa expansion nascent. FX swings (INR vs. USD) not hedged on call.

Jainam Mandrecha flagged ICE-dependent lubricant business faces terminal risk from EV growth. Management downplayed: 'EV could be fit after 15-20 years. In 10 years' horizon, not a threat.' But lube segment is legacy; new molecules + industrial chemicals are hedge. Minority of portfolio now.