Strong revenue beat, EBITDA miss; margin recovery critical

Q1 EBITDA margin ~17.8%; assumes price pass-through materializes

Methanol ₹22→₹58; pass-through claimed but Q1 margin still collapsed

Guidance range same, but acquisition-heavy; standalone Anlon ₹32 Cr in Q1

Only ₹87.6 Cr Q1 from ₹1400–1600 MT installed capacity suggests soft underlying demand

FY27 EBITDA margin revised from 30–33% (prior calls) to 25–27% due to raw material inflation (methanol up 164%) and Remember India integration drag.

FY27 revenue range 350–400 Cr unchanged from prior 370–380 Cr midpoint, but composition shifted: acquisitions now ₹57 Cr of ₹87.6 Cr consolidated, vs standalone Anlon soft at ₹32 Cr.

Not included in FY27 ₹350–400 Cr guidance; now expected to contribute from Q4 FY27 at earliest, not earlier quarters.

₹130 Cr capex for 1200 MT new capacity at Anlon standalone (vs prior ₹100–120 Cr plan); ₹70 Cr debt at 8.5–8.6%, rest internal.

Prices up 2–3×, not normalized; domino effect means Q2 margin similar to Q1; full normalization by Q3 expected.

Old orders locked in at prior prices; new orders at higher selling price. Acquisition burden (Remember India depreciation ₹1.29 Cr). FY27 consolidated margin 25–27% expected.

Not included in ₹350–400 Cr FY27 guidance. WHO-PQ approval expected by year-end; revenue likely Q4 FY27 onward. Will give exact figure in Q2 call.

Peak level revenue potential 350–400 Cr at full utilization; that's the FY27 target at 65–70% usage.

New 1200 MT capacity at standalone Anlon, commissioned Q1 FY28 at 50–60% utilization initially, drives incremental ₹300 Cr revenue.

~40% of API cost is solvents (petroleum-linked). Once-in-a-decade event; can't pass through daily; B2B limits pricing frequency. Long-term contracts mean we absorb temporary shock.

Tightening payment terms with customers; switching away from slow payers. Expect positive operating cash flow by end of FY27 (best efforts).

33% not possible now. Industrial/fine chemicals business has lower margins. Operating costs rising (headcount, professionals). Expect 25–28% consolidated long-term.

Product mix timing; long production cycles (30–45 days or 40+ days) mean Q1 start → Q2 revenue recognition. H1 will show true picture.

Biologics (peptides, biosimilars) separate from pharma for regulatory clarity. Medicare (surgical implants) part of pain ecosystem. Revenue expected FY28 Q4 (Biologics) and Q2 (Medicare).

Same status as last call (May); process validations ongoing; expect updates post-Q3.

Composition: Anlon ₹180 Cr, Apiqo ₹120–150 Cr, Bizotic ₹60 Cr, Remember India ₹0 (not included). Achievable if Q2–Q3 execute as planned.

Assumes new 1200 MT Anlon capacity by Q1 FY28 at 50–60% utilization; incremental ₹300 Cr. Contingent on regulatory approvals and execution risk.

Assumes raw material price stabilization, price pass-through to customers, and Remember India integration drag easing. Q1 at 17.8% is below range; recovery assumed Q2–Q3.

Conservative per management; assumes no major delays in capex; interest cost on ₹70 Cr debt ~₹1.5 Cr/quarter.

May improve slightly with formulation revenue from Remember India (expected >25%), but industrial chemicals drag persists.

Financed: ₹70 Cr debt (8.5–8.6% rate), ₹60 Cr internal. Construction and statutory approvals lined up; Q1 FY28 commissioning target (with contingency buffer).

Methanol up 164% (₹22→₹58); ~40% of API cost from petroleum solvents. Pass-through to B2B customers faces resistance; Q1 margin miss ~1300 bps.

B2B business with ~10–15 key customers; pricing limited by customer power; 130–135 day payables (vs 90-day terms) indicates payment friction.

Acquired May 2026, 63.98% stake; in validation/upgrade phase; no Q1 revenue; NOT included in FY27 ₹350–400 Cr guidance. WHO-PQ approval critical path; management won't commit to Q2–Q3 revenue.

₹130 Cr capex for 1200 MT new capacity at standalone Anlon; Q1 FY28 commissioning target subject to statutory approvals. Initial 50–60% utilization assumed; full ₹700 Cr FY28 target depends on demand materialization.

Standalone Anlon revenue ₹32 Cr in Q1, flat vs ₹33 Cr Q1 FY26. Already at peak 400 MT capacity; organic growth nil until new facility. FY27 revenue ₹180 Cr (annualized) is only 1% above FY26 ~178 Cr implied.