Thank you, [Dorita?] .

Good afternoon, all. On behalf of HDFC Securities, I welcome everyone to this Aether Industries conference call to discuss the results for the quarter ended September 2025 and first half of financial year 2025-26.

From the Aether Industries, we have with us today Dr. Aman Desai, Promoter and Whole-Time Director; Mr.

Rohan Desai, Promoter and Whole-Time Director; Mr. Faiz Nagariya, Chief Financial Officer; Mr.

Kushal Joshi, Lead Investor Relations; and Ms. Shivangi Desai, Executive IR.

Without further ado, I will now hand over the call to Mr. Kushal Joshi to begin with the earnings for this Q2 FY26.

Over to you, Kushal.

Thank you, Nilesh. Warm welcome to everyone.

Today, our board has approved the financial results for the second quarter and the first half of fiscal year 2026, and the same has been filed with the exchanges as well as updated over our website. Please note that this conference call is being recorded, and the transcript of the same will be made available on the website of Aether Industries Limited and the exchanges.

Please also note that the audio of the conference call is the copyright material of Aether Industries Limited and cannot be copied, rebroadcasted, or attributed in press or media without specific and written consent of the company. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are predictions, projections, or other estimates about future events.

These estimates reflect management's current expectations on future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied.

Aether Industries Limited or its officials do not undertake any obligation to publicly update any forward-looking statements, whether as a result of future events or otherwise. Now, Mr.

Rohan Desai will begin by sharing Aether's business outlook, ongoing expansion. Then Dr.

Aman Desai will provide inputs on the R&D and new client initiatives and strategy of the company going forward. Mr.

Faiz Nagariya will cover the financial highlights for the period under review. Now, I hand over the call to Mr.

Rohan Desai for his opening remarks. Over to you, Rohan.

Good evening, everyone. I hope everybody is doing well, and I am glad to connect with you all to discuss the performance of our company for quarter two of financial year 2026.

I am happy to inform you that all the three business verticals at Aether are performing well, creating a solid foundation for the second half of financial year 2026. This quarter, the sales mix was roughly 47% from contract and exclusive manufacturing, 41% from large scale manufacturing, and about 9% from contract research and manufacturing services.

For the first time, C&EM has contributed more than the LSM business vertical, and CRAMS and C&EM combined have contributed more than 50% of the sales. This is in line with our vision where C&EM and CRAMS together will contribute 60% to 70% of the sales in the next two years period.

Contract and exclusive manufacturing is set to show a good growth as the pipeline looks promising. We are ramping up volumes and sales to Baker Hughes with Site 4.

We will start manufacturing for Milliken at Site 3+ coming quarter four of financial year 2026. There is this new C&EM contract kicking off from one of the blocks at Site 5 around the same time.

I figure this site should stabilize and get to optimum output in 15 to 18 months or so. Sales from our subsidiary, Aether Specialty Chemicals Limited, in this quarter has increased to 50 crores approximately as compared to 41 crores in the last quarter.

The current run rate is expected to continue for financial year 2026, and we see an increase in the trend in financial year 2027. The increase in volumes is expected as we start supplying to more of the sites of Baker Hughes as well as increase the product portfolio, which is currently eight products for Baker Hughes.

We have seen an increase in sales of the Converge polyol in the quarter and are on track to achieve our target for this financial year. The Converge polyol, for which we have completed life assessment cycle study, is now being sampled by a number of multinational companies which are targeting to replace their current polyol with the current Converge polyol over the next couple of years.

The Saudi Aramco contract is on track, and we are expected to achieve the target of 40 to 35 to 40 crores of sales for the period of this financial year 2026. Shifting to LSM, the demand of our products and pricing for our products have remained stable.

As mentioned last quarter, we will be launching three new products in the LSM block which will be the second production block at Site 5. The products are targeted towards pharmaceutical, agrochemicals, and material science sectors, and the average pricing of these products would be $30 to $40 per kilo.

The products are expected to be manufactured for the first time in India and are expected to be scaled up in financial year 2027. In the quarter, we have added four new clients to our list of marquee clients.

For the first half, sector breakdown would be pharmaceutical and agrochemicals now contribute only 48% combined, while oil and gas and material science contribute 19% and 18%, respectively. I expect the share of oil and gas and material science sectors to scale up by the end of the year as the supplies to Baker Hughes and to Milliken increases by the end of the financial year.

On the capex front, we have deployed 245 crores so far in the current financial year, and all the sites are on schedule. Site 3+, which is dedicated to Milliken, is expected to commence production in quarter four of financial year 2026.

Site 5, which is based out of Panoli, continues to progress smoothly, and we target to commission the first two production blocks of phase one by the start of quarter four of financial year 2026. These new sites will be ramped up in financial year 2027 and help Aether in maintaining its growth momentum.

In summary, we remain extremely excited as we look to commence three new production blocks at Aether and our company becoming a preferred partner not only for R&D, CRAMS, but also for commercialization of these products. With this, I would like to conclude speaking, and I would request Dr.

Aman to touch upon the R&D initiatives and new client initiatives for this period. Over to you, Aman.

Thank you, Rohan. Good evening, everybody, again.

I'm very happy to connect with all of you again for this quarterly update. Just to continue where Rohan left off, while the expansion on Site 3+ and Site 5 continues, as Rohan has detailed in length, which I will not go into, we are also in the process of increasing reasonably the R&D capacity at Aether, which is already world-class to begin with.

We are targeting to add another two labs, including one engineering lab, which totals to 24 new fume hoods in the existing facility itself over the next couple of months. We have also started the construction of the new R&D plant extension, which is expected to have more than 130 fume hoods.

That's a significant R&D expansion in the existing facility and a whole new R&D extension building that we are targeting, the first one by the next few months and the next one over the next one year or so. The number of inbound inquiries we are getting from customers across sectors on the CRAMS vertical gives us confidence in this expansion.

We'll also enable us to add more chemistries and technologies and core competencies to our portfolio. Currently in R&D, in the eight research groups that we have, we have more than 55 projects ongoing, the majority of which are non-ag and non-pharma.

Over the course of the quarter, we have had a number of follow-ups and site visits from senior management in the R&D and technology side of current and prospective customers. It is clear and visible to us that the innovators are no longer able to manufacture in the West in the current environment and have been shutting down the commercial plants in the West, in the Europe and the US, and India is increasingly becoming a very viable and in some cases the only viable option.

Customers are looking to partner with viable partners in India, and India is the first choice that these customers have, and they are expediting in finalizing the contracts in the current scenario where they are closing down their manufacturing assets on a fast-track basis. We believe at Aether, we are well placed considering all the relationships that we have already forged with all these customers and also the world-class infrastructure that Aether has already built and is currently building on an aggressive pace.

In the first half of fiscal 2026, we have also completed right now, as of date, 26 customer and certification audits. With the ongoing capex at Site 5, our Panoli site, we are extremely excited for this site.

We have a clear line of sight for this manufacturing Site 5, of which the first two production blocks, which are completely fitted out with the expected products, these are expected to be completed by the end of this financial year, as Rohan has alluded to earlier. We have a number of projects in the pipeline, and we are confident of filling up this entire Site 5 with innovative and first-time made-in-India products.

In summary, I have always mentioned that there will be a ocean of opportunities that are available to Indian specialty companies who have invested in infrastructure, in R&D capabilities, in core competencies. With the assets and infrastructure that we have, we should definitely be tapping into these opportunities significantly and look to prosper going forward.

We believe Aether is one of these companies that can take advantage of these ocean of opportunities with our cutting-edge R&D, and hopefully, we'll be at the forefront to take advantage of all these opportunities that are coming to us. Again, thank you all for joining us today evening and being online with us for the call.

Happy to answer questions at the end. Faiz, our CFO, will now give you the overview of the financial highlights and the results for the Q2 and the first half of fiscal 2026.

Faiz?

Thank you, Dr. Aman, and good evening, everybody.

I am glad to present the financial results of Aether Industries Limited for Q2 and H1 of FY26. The total consolidated revenue from operations of the company stood at ₹2,751 million in Q2 of financial year 2026 as against ₹1,988 million in Q2 of financial year 2025, which is a 38% increase year-on-year.

This has resulted in EBITDA of ₹853 million in Q2 of financial year 2026 as against ₹503 million in Q2 of financial year 2025, which is an increase of 70% in the comparing quarters. EBITDA margin stood at 31% in Q2 of FY26 as against 25% in Q2 of FY25.

The profit after tax amounted to ₹540 million in Q2 of financial year 2026 as against ₹348 million in Q2 of financial year 2025, which is an increase of 55% year-on-year. The PAT margin stood at 19% in Q2 of financial year 2026 as against 17% in Q2 of financial year 2025.

The consolidated revenue from operations of the company stood at ₹5,312 million in H1 of financial year 2026 as against ₹3,700 ₹3,788 million in H1 of financial year 2025. It is an increase of 40% in the comparing half years.

This has resulted in EBITDA of ₹1,634 million in H1 of FY26 as against ₹904 million in H1 of FY25, an increase of 81% in comparing half years. The PAT amounted to ₹1,010 million in H1 of FY26 as against ₹647 in H1 of FY25, which is a 56% increase in the comparing half years.

During the quarter, we have received another ₹250 million from the insurance company towards the claim for fixed assets as on account payment. The remaining claim for fixed assets for the loss has been put up to the insurance surveyors along with loss of profit, and we are confident to get the same settled by insurance company by or before the end of Q3 of financial year 2026.

We have always been working towards working capital management since last few years, and we are happy to inform that we have been able to reduce the overall working capital cycle to 149 days as on September 30, 2025, which was 194 days as on 31st March 2025. This has been possible due to reduction in inventory cycle to 160 days as on September 30, 2025, from 173 days as on 31st March 2025.

A reduction of debtor cycle to 106 days as on September 30, 2025, from 126 days as on 31st March 2025. I would like to give a glimpse of the capacity utilization at our three sites.

Site 2, the capacity utilization in six months is approximately 76%, Site 3 is 68%, and Site 4 is 46%. Things are progressing as per the strategic planning done by the company.

I, once again, thank you and look forward to better outcomes than this in future as well. Back to you, Kushal.

Hey,

thank you, Faiz. Request the moderator to open the floor for Q&A.

Hi, thank you for this opportunity. Sir, we are already at a PAT margin of approximately 21% prior to extraordinary items for Q2, when the ex-LSM business, which is CRAMS and C&EM, is at about, say, 57% of overall revenues.

Now say in the next two years, as you have mentioned on the call, when the CRAMS and C&EM business goes to 70%, 75% of revenue, and also by then, most of our plants are able to ramp up, is it possible that from this 21% currently, the margins at PAT level can go up to, say, 24%, 25% plus levels?

Hey, hi, Ravi. Kushal here.

Unlikely that margins will go to 24%, 25%. I think what we will be looking at and what the vision is to have 70% CRAMS, C&EM, 30% with LSM, which will take some time.

With also our ongoing capex, the depreciation will also expected to increase, we will be yet in the margin front on the net profit at around 19.5% mark.

Even once the CRAMS and C&EM ramps up, you'll be still at 20% level, mostly because of the depreciation

that Because the capex is yet continuing at Site 5, Panoli, which is 16 production blocks. You only have the first two production blocks which have come up, and subsequently, you'll be seeing the capex going through for second and third phase.

Also, I would like to add that going forward, now see, we were using the QIP moneys for the capex. Going forward, we will be using debt funds, whether from banks or financial institutions, so that would also add to certain finance cost.

Of course, that would be capitalized towards the capex that will be done, but still certain working capital facilities also being increased, so that also will keep the margins at around 19%,

20%. No, I'm talking once this ramps up fully, say, two to three years down the line, once working capital also stabilizes and your revenues also ramp up, by then, is it possible that we can touch 20 22%, 23% odd kind of levels?

We would like to be conservative and be around 19%, 20% and keep the rest in our pockets to see how we ramp up in the future with the other products which come up. Because with the other products also, we need to see the costings and everything, which could be heavier still.

Makes sense. Sir, on the asset turn, the same has been subdued for the last two years, mainly because of the kind of capex that we have been undertaking for the last four years.

Just trying to understand once the capex ramps up, is it fair to assume, say, 1.65 to 1.75x asset turn on the gross block for the company as a whole? Is that possible, or do you feel we can do better?

We target between 1.5 to 1.75 times asset turn, so that is achievable. That is what we're going to be looking for.

Got it. Lastly, sir, on Site 5, just wanted to confirm, the capex guidance is 500 crores with peak asset turns of 1.75x, which should be achieved by FY28.

Is that right?

No. The total capex for Site 5 will be closer around 2,200 to 2,300 crores.

This will go on to around FY30. This is what we have been planned and we have said in the past.

The asset turns for this entire site once it's fully operational and all the plants are stabilized will be targeted at around 1.5

to 1.75 times. So 2,000 crores will be the capex, which will go till FY30.

The one which will be operational, the phase one and phase two, which should be operational by Q4 FY26, what will be the capex for the first two phases?

It's not phase one and phase two. It's part of phase one, first of all.

How we have broken up is that there are four phases. First phase has first four production blocks along with the utilities, because when you build up the entire site, the utilities are brought in for all the 16 production blocks, okay?

The second phase will have the next four, and subsequently, phase three and phase four will have the four production blocks each. That's how it will be growing.

In terms of capex, we will be starting off with the first two along with all the utilities which have been built up for. You will not be spending 2,200 or 2,300 crores upfront.

It will be on a phased manner.

Got it. Thank you, and wishing you all the very best.

Thanks.

Hi. Good evening, sir.

A couple of questions from my side.

Is it better now?

Sorry for that. First question is on the material science business.

We have seen contributions stepping up in the last three quarters at around 18%, 19%. Kushal, can you please help me with that, is it entirely Saudi Aramco supplies or do we have something else over there as well?

No, there are multiple products out there which we cannot disclose because of the confidentiality, but there are multiple products out there.

Okay. Secondly, on this block one, Panoli, that you said that this is a long-term contract that you're setting up, any guidance over there, what could be the product like and what is the potential over there?

It's it's a interesting molecule material in the material science field, but we will wait for the right time to announce that.

Okay. Lastly, on the capex side, we were of the view that annual capex would be somewhere 350 to 400 crores, while we have already done 250 crores.

Is there somewhat revise 3,200 crores, something has already been done, right?

We have we have ramped up the capex at Site 3+ and Site 5 on the requirements of the customer, wherein Site 3+ is. We have we have expedited the things.

Otherwise, the guidance which we have given of around 350 crores is very much in line, and it would be maybe a 5%, 10% increase, not more than that.

Sir. Thank you.

This is very helpful, sir. Thank you.

That will be all, sir. I'll come back in queue.

Okay. Thank you.

Hi, sir. Thank you for the opportunity.

Am I audible?

Yes.

Okay. Just wanted to understand, what is the revenues that we did from Baker Hughes site in this quarter?

51 crores.

Okay. The revenues from Saudi Aramco as well?

We cannot disclose on the open platform, sir.

Sure. I just wanted to understand what led to this huge increase in the C&EM segment.

Q-on-Q, I think from 95 went to 131, what was the reason for any specific contract that got started suddenly?

We have multiple contracts which we cannot disclose, which are being ramped up because of the client's interest of moving faster. If you have heard the transcripts of the last two earnings calls, we have always mentioned that there are a lot of inquiries which are converting into opportunities at Aether, and so we are ramping them up in the existing facilities and making use of it.

Sure. Sir, regarding the margins that we have, I think since last two, three quarters, we are reporting 30% plus margins.

Is this sustainable going forward as well on the EBITDA level?

Yes. Definitely, this is sustainable because we are entering to more and more contract manufacturing and CRAMS, which is increasing, 30% margin is surely sustainable, and we will be sustaining that.

Even the Baker Hughes contract is at the same level of margins, or is it slightly lower margin contract?

We usually don't discuss C&EM contracts on margin basis, but on the overall company level basis, we continue to maintain between 29% to 30% EBITDA margins.

Sure. Thank you so much, sir.

That's it from my side.

Aagam, thank you for the question. For this financial year, Site 5 is not expected to generate any revenue because the plants will be getting operationalized by the first week of Q4, end of Q3, first week Q4.

They will be just getting stabilized, we do not expect any much revenue coming from the first two production blocks which will be commencing. What we have always mentioned is the capex for the first two sites is around 160 crores each, where we have targeted close to around 1.5 to 1.75 times asset turn when they're fully operational and stabilized, which takes between 15 to 18 months.

In the first financial year, we expect these units to work at capacity utilizations of around 40% to 50% and then steadily ramp up. That's giving a broad guidance and color of the first two production blocks, which helps you get a sense of the revenues for the first two production blocks over the next two years.

How is overall current year looking like, second half? It's looking strong.

The first half has laid a solid foundation, as mentioned by Rohan. We have had all the three business verticals performing very well.

As both Rohan and Dr. Aman mentioned, the number of inquiries which we're seeing from different customers and prospective customers continues to increase.

There's been a ramp up also on the R&D side, as mentioned by Dr. Aman.

We have 55 projects going on. 70% 70% of them are non-ag and non-pharma.

Clearly, it's looking good. We're also seeing good trajectory in terms of our demand for our products at Baker Hughes.

Expect that trajectory to continue, good trajectory. Secondly, I think more important part is that we have three production blocks starting off.

One is Milliken, which is Site 3+, and the two production at Site 5. Once these three start ramping up in FY27, the growth momentum is expected to continue.

Should second half be better than first half? In yearly Historically, it has always been that for us at Aether.

The second half always sees a much faster growth compared to the first half. We expect that trend to continue.

Okay. Also on honest statement you mentioned that if my capex is 200 crores, with maybe 1 120, 180, 200 crores which you're spending currently, would we look like fund raise in the future, or it will be entirely through internal accruals?

It will be a mixture of internal accruals and debt as of now. There's no plan to raise any further equity going forward as we see right now for the next 5 to 7 years.

Okay. Broadly, we are in the range of 20%, 25%, once these capacities come in, should I assume we should grow northwards of 25%, a ballpark number just for the understanding purpose?

Yes, we should be growing at around 25% going forward. Okay.

Thanks. That's it, and I'll get back in the queue.

Sure.

Good evening. Thank you so much for taking my questions.

Would just be great to get your updated perspective maybe on some of the newer growth projects we have in the pipeline. Maybe particularly on Converge and maybe on Nopol as well.

I know it's been a little bit of maybe slower going early on in terms of adoption of the product, but are you seeing sort of improving traction in terms of how customers are perceiving the product and how sales are progressing there?

Let me take the Converge first, Abhijit, and Aman will add on to other projects afterwards. Converge is shaping up well.

We were delayed after the launch of the product because the life cycle assessment study was not completed on that product, we completed that. Parallel time, we had sent out a lot of samples which were turned into quantities, which we were able to sell in the previous three, four quarters.

Now we are seeing a lot of inbound inquiries coming in on these products where people want to shift from the traditional polyol to this wonderful Converge polyol. Aman, can you add more on to interesting opportunities out there?

I'm sorry, I missed the question. Is this about the large-scale manufacturing business model?

The

C&EM business.

Actually, I was asking about Converge and Novoloop and maybe some of the other interesting smaller businesses that we have in the portfolio, whether we are seeing improving traction in those.

Converge, as Rohan mentioned upon, Novoloop is also progressing well in the work that we are doing. Then there's a whole bunch of other contracts and customers that we have which we haven't been able to disclose externally yet, which we hope to be doing over the next few months and within the next year.

There's at least four, five different projects going on with specific customers at that scale which are very promising and have the potential of growing up rapidly. Just to give you an example, Milliken started about 4, 5 years ago as a small research project and then today, we are dedicating a whole site to that project with a 10-year supply agreement.

We have at least four to five such very promising contracts ongoing and shaping up towards that kind of scale currently. As I mentioned, we have 55 plus projects going on in R&D today.

Even if 20% of those go through to commercialization, which is our conservative estimate, it's very promising next few years ahead. We are very excited about that.

Abhijit, just to add to what Dr. Aman mentioned, what we have seen is that once we are able to break into a client, whether it be Baker or Milliken, what has resulted is in also opening up a library of projects which they have internally.

With the way the development is happening at the R&D side, we clearly see a number of these new projects also being expedited with Europe shutting down a lot of their plants. This is resulting into many more opportunities on the C&EM side going forward.

Thank you. Thanks for that.

Just to clarify, this 55 plus projects that we have right now in the CRAMS basket, what would this number have been, say, a year back or two years back just for reference? That could be helpful.

Maybe similarly on the C&EM side as well, how many projects do we have at this point versus what the number was, say, a year or two ago?

55 is the total number of projects, for example, out of which 70% would be CRAMS and CRAMS/C&EM, and 30% would be internal molecules in the LSM model. So 70% of 55 is about 38 or 40, say 40 CRAMS/C&EM projects and 15 large scale manufacturing projects.

This number, say, 2 years ago would have been 66% of this. So 2/3 of what we are doing right now would have been 2 years ago.

We've been steadily growing since the last expansion that we did in R&D. We have jumped reasonably in the number of projects that are going on.

Now with the expansion that is planned for the next two months, as I've mentioned in my script, and especially the new R&D extension next year, which will give us a 2x expansion, double expansion over the current capacity, we're looking at going over easily 120 projects by the next 1 and 1/2 years ongoing in the R&D. That's the line of sight that we kind of envision for the expansion that we're doing.

So 55 going to 120 plus in the next couple of years just to clarify.

Hopefully. Got it.

Okay. Just on the mix between LSM and C&EM/CRAMS within this, as well as in the revenue.

This quarter, we've seen a big shift away from LSM towards C&EM. Number one, is that entirely discretionary?

In other words, are you dedicating more of your available capacity towards C&EM and away from LSM? Is there a similar kind of trend playing out on the R&D side as well?

Is more of your fume hood capacity being dedicated towards C&EM?

We continue to focus on LSM. We continue to nurture and build molecules in the LSM business model.

What happens is when the C&EM and CRAMS business model, the customer drives it as much as we're driving. We've always maintained that as time goes on, as we spread out more, as customers get more confident in us, we become the preferred partner for everything to do from research to scale up to supply.

Right now, for a lot of these partners that we have that are already out in the public domain and more than three times that that are not in the public domain, we are being considered the preferred go-to partner for all of their needs in research and scale up and supply. Those opportunities and projects that are incoming actually multiply as the years go on.

It's an inherent feature of this business model that we have consciously built is that this will multiply significantly in the years to come. This is what we are seeing in the numbers that you have seen and that we expect to continue go forward.

The C&EM and CRAMS will go and grow faster as compared to the LSM model, although we consciously make sure that every one of the eight research groups that are operating in the R&D department have a significant portion, at least 25% to 30% of the projects that we are doing, should be focusing on LSM in our own model, so that we are not dependent on any one business model.

Right. Just to clarify on that, the decline in LSM that we see this quarter in revenue terms is nothing to do with demand.

It's purely capacity reallocation. Is that correct?

It's not reallocation. Sorry, go ahead, Kushal.

Aman, yes.

Okay. Correct.

The answer is yes. Thank you.

Sure. Just one last thing from my side

We can go to the next one maybe.

Yeah. Just one last thing from my side on the financials before I get back in the queue.

Just on the insurance front, this exceptional item is still continuing here, which I believe is the insurance charge that we're paying. What's the outlook for this?

How long does this continue? Is there some visibility by when this can go down?

What is the total amount for which we've lodged a claim? How much has been received so far, and sort of where exactly does it show up in the balance sheet, on the asset side?

Sure. About the extraordinary items, this will continue till financial year 27 end.

The amount will be reduced. You can see that it's already reduced from the last year.

This because there is third renewal which is coming up in December, there will be some markup of premium in this. This will continue till 30th 31st March 2027.

After that, this will not be there. Then coming to your question for the total claim which we have lodged is approximately 100 crores, and we have received 60 crores already, and 3.5 crores is earmarked to be given to us by the insurance company for the FLOP, which they have agreed giving us with the entire claim which will be settled now.

We expect that entire claim will be settled by end of December. In balance sheet, the claim for stock was already put up in the P&L account in the last quarter of the financial year 2025, which was already informed to everybody.

The claim for asset which is received is standing in the balance sheet is on the liability side, and once the entire claim is settled, the surplus or deficit will be put up to the P&L account.

Got it. The exceptional items line, we have high confidence that it sort of goes down to zero basically from maybe 27?

See,

I'll just give you a volume figure that after the fire, the insurance premium which was increased was approximately 10 crores. In the next year, we had to pay approximately 6 crores more, now maybe in this year, it will be 3 or 2 crores more, not more than that.

Got it. Thank you so much for all the clarifications, and all the best.

Thank you.

Yes, hi, sir. Congrats on good numbers.

Three questions from my side. Firstly, can you please highlight price and volume growth during the quarter on QoQ and YoY basis?

Krishan, I think so we'll have to connect separately. We will not be giving that thing so publicly.

No problem. For FY27, will Milliken be the major growth driver?

Secondly, what sort of revenues are you let's say targeting from Site 5 in FY27?

So In terms of growth, it will not only be Milliken, but it will be a ramp up in Baker Hughes contract as well as Milliken. Also in terms of Site 5, as I mentioned to you earlier in the call, was that we spend close to around 160 crores per production block in phase one.

That's primarily because the utilities have been built up. These will be all expected to work at capacity utilization levels between 30% and 50%.

That's how you'll be seeing our revenues ramp up for FY27 from Site 5.

Got it. Lastly, it's great to see reduction in working capital cycle as well.

Really appreciate it. What's your target for working capital days for FY27?

Krishan, we are at around 150. We would be willing to go more down, but I think so 140 should be a good number to go down.

Then gradually, as contract manufacturing kicks in more and more, we will be able to bring it down, but 140 is you can see.

Understood. That's great to hear.

Congrats once again, and thank you. Wish you all the best.

Thank you.

Hi. Good evening, sir.

See, the question is to Dr. Aman.

See, Aman, in your remark, you mentioned that you are expanding your R&D lab, and you're expecting that number of projects from 55 to about 120. In that also, you mentioned that engineering labs.

Can you elaborate on that? Secondly, the kind of a customer base or end-user industry you are targeting with the number of projects going up from 55 to 120?

Great question, Nilesh, and I understand that comes from your chemical engineering background, and I'm I can talk about this for 2 hours, I think, but the engineering lab is a very key lab that so in the current expansion in the existing facility, we're doing one engineering lab. I'll try and keep this short, as tempting as it is to go into details, but we'll in the current expansion, we'll have one engineering lab, and in the new R&D extension, we're going to have up to four engineering labs.

This is very unique in the Indian in the perspective of India, and the global companies do have this, but it's very unique in the Indian perspective. These engineering labs focus on chemical engineering, chemical technology, scale up, we'll be focusing on unit operations and not the chemistry, and so the technology competencies will be focused on, and so things like high-vacuum fractional distillations, continuous vacuum distillation, continuous unit operations, continuous reactor skids, small custom-built modular skids that go into fume hoods at the lab level, process intensification, process safety, reactive chemicals, and testing and hazard analysis.

A lot of chemical engineering will go on in the R&D level, which will make things that implementation and scale up much more easier and faster and economical. This is a very nice aspect of R&D that most companies in India will miss out on are these engineering labs that will be focusing on in the expansions.

This will help us get into, which will answer your second question, is that it will help us get into much more in the R&D pipeline of the non-pharma and non-agro sectors that we are targeting so hard. These sectors, for example, oil and gas, petrochemicals, material sciences, are much more their molecules, their projects are much more chemical engineering than chemistry.

These engineering labs will help us deliver success on these very difficult chemical engineering problems that these companies throw at us. The focus of these expansions and especially these engineering labs will be the specialty chemical and oil and gas and oil field services and material science sectors that we are consciously targeting.

Great question, that's what the I hope I answered both your questions, Nilesh.

Yeah. Thanks, Aman, for answering my question.

Second question is to Rohan sir. Sir, if I compare the pricing trend compared to say 1, 1 and 1/2 year back, the prices of our LSM as well as the other products, how is the current pricing, and do you see any uptake in the pricing, and how do you see

Sure. Am I audible?

Yeah. See, the question is to Rohan.

Sir, if I compare the 1, 1 and 1/2 year back the prices of all our LSM and other products were at a rock bottom. How is the current pricing scenario, and how do you see that prices of the LSM product going say second half of FY26 and '27?

Nilesh, the pricing are stable at the moment. We see sudden fluctuations here and there on the price going and trying to go upwards, but then because of the demand-supply situation where the supply is more, the prices come back again to the original bottom, which is there.

I think in our second half of this financial year, I don't see a price uptrend happening at least in any of our products at this moment unless something extraordinarily happens in the world which I am not aware of at the moment. I don't think anything will lead to a price increase on our products.

Okay. Thanks, thanks, sir.

Just one clarification. In opening remarks, Faiz mentioned that capacity utilization of our Site 4, that is Baker Hughes capacity, is about 46%, but there is a expansion scope, the land parcel is available at Site 4.

Is my understanding correct?

Correct, correct. Yes.

I have given you the indication for the current capex or the assets which are put up on ground. For that, I have given you that.

Okay. That current land parcel is just a 50% roughly of the total site?

Yes, yes, approximately 50% to 60%. Yeah.

Okay. Yeah.

Thanks, thanks. That's all from my side.

We thank everyone for attending the Q&A as well as the conference call of Aether Industries Limited for second quarter. If there are any further questions, please do reach out to us.

We'll be happy to answer them. Thank you, and looking forward to meeting you all in Q3.

Thank you.