Thank you, Sagar. Good afternoon, everyone and thank you for joining us on Deepak Nitrite Q4 and FY26 earnings conference call.

Today, we have with us Mr. Maulik Mehta, Deputy Managing Director of the company; Mr.

Sanjay Upadhyay, Director - Finance & Group CFO; and Mr. Somsekhar Nanda, CFO of Deepak Nitrite Limited.

We will begin the call with opening remarks from the management team followed by an interactive Q&A session. To begin, Mr.

Maulik Mehta will share views on the operating performance and the growth plans of the company, followed by Mr. Sanjay Upadhyay, who shall take us through the financial and segmental performance.

I now invite Mr. Mehta to share his opening comments.

Thank you and over to you, sir.

Good afternoon, everybody and a warm welcome to all of you on Deepak Nitrite's Q4 and FY26 conference call. Our results documents were shared with you earlier and I trust you had the opportunity to review them.

I will cover the key operational, strategic, and financial highlights for the quarter and year ended March 20, March, 2026. Mr.

Upadhyay will subsequently take you through the detailed financial review, following which we'll be happy to address your questions. The global chemical industry continued to operate in a challenging environment during '26, characterized by persistent global challenges and uneven recovery in demand.

The environment further intensified in the fourth quarter during, review due to the war in the Middle East, following which the industry witnessed unprecedented disruption in established supply chains, challenges to logistics and freight with the blocking of the Strait of Hormuz, leading to volatility in prices of crude oil as well as related feedstocks. Concurrently, as logistics disruptions persisted, both suppliers and buyers identified new opportunities by swiftly adapting and securing alternative channels.

While global demand conditions remained mixed, domestic demand in India continued to witness relatively stable momentum across several end industries, including automotive, infrastructure, pharmaceuticals, electronics, polymers, and other downstream sectors. Consequently, integrated and reliable manufacturing companies such as Deepak, with strong operational capability, were able to capitalize on emerging opportunities arising from the evolving global supply chain landscape.

In this demanding environment, Deepak Group has demonstrated a remarkable agility in the face of adversity, delivering strong operational and financial results for the fourth quarter of FY26. During quarter four, consolidated revenues stood at ₹2,127 crore compared to ₹2,202 crore in FY, '25 and ₹1,983 crore in Q3 of '26.

EBITDA for the quarter stood at ₹338 crore, reflecting strong sequential growth of 74% over Q3 and 13% on a year-on-year basis. Profit before tax, profit before tax before exceptional items stood at ₹301 crore, while profit after tax stood at ₹220 crore, registering a growth of more than 120% quarter-on-quarter and 9% year-on-year.

EBITDA margins improved significantly to 18% during the quarter under review compared to 11% in Q3. Our quarterly performance was underpinned by stable volumes and favorable pricing alongside enhanced plant fungibility as we pivoted towards high-demand products, customers, and markets.

Furthermore, continuous plant process refinement and cost-optimization initiatives coupled with deeper supply chain integration have fortified our competitive positioning and sustained growth momentum across business segments. Our domestic to export revenue mix stood at 86 to 14, reflecting the resilience of our domestic franchise while continuing to maintain meaningful engagement across export markets.

For FY26, consolidated revenue stood at ₹7,947 crore, while EBITDA and PAT stood at ₹1,041 crore and ₹551 crore, respectively. Coming to the segmental performance, Advanced Intermediates witnessed a healthy growth trend during Q4, boosted by stable domestic demand and a favorable pricing environment, neutralizing the impact of slower exports caused by global logistics disruptions.

Revenues for the quarter stood at ₹708 crore compared to ₹654 crore in, Q4 '25 and ₹652 in Q3 '26. EBIT improved substantially on a sequential basis to ₹34 crore compared to ₹15 crore in Q3 FY26.

Profitability drivers included an optimized product mix and superior realization relative to input costs. Our deepened integration continues to provide a competitive edge through an increased raw material self-sufficiency and reduced supply chain volatility.

The Phenolics segment delivered strong performance during the quarter despite geopolitical disruptions impacting supply of critical feedstocks. Revenue from operations for Q4 stood at ₹1,429 crore, while EBIT stood at ₹287 crore compared to ₹239 crore in Q4 last year and ₹145 crore in Q3.

EBIT margins improved to 20% during Q4. Performance was supported by stable plant operations, improving spread across the portfolio, downstream demand recovery, and a disciplined procurement strategy.

Ongoing process optimization and debottlenecking initiatives continue and they will improve operational flexibility while strengthening our domestic market leadership position. During '26, we witnessed successful commissioning, stabilization, and ramp-up of Deepak Chem Tech's nitration and hydrogenation facilities at Dahej.

These projects enhance raw material security, reduce external dependency, improve structural cost competitiveness, and strengthen our positioning as a deeply integrated chemical manufacturer. Our supply, long-term growth remains anchored in value chain integration and specialty chemical expansion.

We witnessed a steady progress of our multipurpose agrochemical intermediates and MIBK/MIBC projects, which are scheduled for commissioning in Q2 FY27. Ours and India's first fully integrated polycarbonate facility execution is on track.

For this project, Chem Tech has entered into a strategic long-term agreement with Praxair India to establish a dedicated on-site HYCO plant at our Dahej facility. Under this build-own-operate model, Praxair India will manage the dedicated on-site infrastructure, allowing us to maintain a sharp focus on the polycarbonate resin project, significantly enhancing execution visibility and reduce upfront investment and supply chain resilience.

Against the backdrop of heightened geopolitical tensions, we continue to strengthen our competitive position through disciplined execution and focused cost leadership initiatives. During FY26, we undertook a comprehensive cost-optimization program aimed at improving product yields, enhancing energy efficiency, as well as increasing manufacturing productivity through micro, through digital and technological initiatives.

While geopolitical and macroeconomic uncertainties may continue creating near-term volatility across global markets, we believe the industry is gradually moving beyond the most disruptive phases of the cycle. I would now like to hand over the call to Mr.

Sanjay Upadhyay, who will take you through the detailed financial performance and key operational updates for the quarter and full year under review.

Thank you, Maulik. Good afternoon, everyone and thank you for joining us today on earning call.

I'll take you through the highlights of the financial results for the quarter and year ended March 31, '26. During Q4 FY26, domestic revenue stood at approximately ₹1,835 crore, while export revenue stood at ₹292 crore, resulting in domestic to export revenue mix of 86:14.

For the full year FY26, domestic revenue stood at ₹6,791 crore, while export revenue stood at ₹1,156 crore. For the quarter, company reported consolidated revenue of ₹2,127 crore compared to ₹2,202 crore in Q4 FY25 and ₹1,983 crore in Q3 FY26.

Performance during the period was supported by stable domestic demand and improved realizations across established product categories. EBITDA for Q4 stood at ₹383 crore compared to ₹339 crore in Q4 FY25 and ₹219 crore in Q3 FY26.

EBITDA margin improved significantly to 18% during the quarter compared to 11% in Q3 FY26. This was underpinned by strategic combination of proactive feedstock procurement, improved core product realization, and structural margin benefits for backward integration and byproduct valorization.

PBT before exceptional items stood at ₹301 crore, while PAT for the quarter stood at ₹220 crore, reflecting growth of 9% year-on-year and 120% quarter-on-quarter. Earning per share for Q4 was stood at ₹16.11.

For the full year FY26, consolidated revenue stood at ₹7,947 crore, while EBITDA stood at ₹1,041 crore and PAT stood at ₹551 crore. Please note that revenue and PBT exclude dividend income of ₹91 crore in FY26 and ₹98 crore in FY25 along with one-time land transfer gain of ₹13 crore in FY25.

The board has recommended a final dividend of ₹7.5 per equity share of FY26, reaffirming our commitment to delivering consistent shareholder value, continuing it to invest in strategic growth and long-term value creation. Now coming to segmental performance, the Advanced Intermediate segment recorded healthy operational momentum during Q4 FY26.

Revenue for the quarter increased to ₹708 crore compared to ₹654 crore in Q4 FY25 and ₹652 crore in Q3 FY26, reflecting growth of 8% year-on-year and quarter-on-quarter basis. EBIT improved to ₹34 crore compared to ₹15 crore in Q3 FY26.

The business recorded stable volume growth during the quarter along with pricing gain for end product supported by improving demand across key end-user applications. The company continues to focus on portfolio optimization, product expansion, and cost efficiencies and deeper customer engagement to strengthen long-term competitiveness within this segment.

The Phenolics segment delivered a strong gains during the quarter despite continued volatility of feedstock and global supply chains. Revenue from operations for Q4 FY26 stood at ₹1,429 crore, while EBIT stood at ₹287 crore compared to ₹239 crore in Q4 FY25 and ₹145 crore in Q3 FY26.

EBIT margins improved significantly to 20% during the quarter. Performance was supported by improved spread across the portfolios, stable downstream demand, and integrated manufacturing benefits.

Ongoing process optimization and debottlenecking initiatives continue to strengthen operational flexibility, cost competitiveness, and market responsiveness. Operational excellence and cost discipline remain key priorities during FY26.

The company continued its focus to process optimization, energy efficiency initiatives, manufacturing productivity improvements, and digital transformation programs across manufacturing locations. Finance cost for Q4 FY26 stood at ₹19 crore, reflecting borrowings associated with ongoing growth investments and strategic expansion projects.

Depreciation and amortization expense stood at ₹63 crore following capitalization of newly commissioned assets. The company's balance sheet remained healthy and resilient, supported by prudent capital allocation and disciplined financial management, providing adequate financial flexibility to support future growth initiatives.

Consolidated net worth stood at ₹5,869 crore, providing adequate financial flexibility to support future growth initiatives. Now coming to growth initiatives and outlook, near-term industry conditions are expected to remain influenced by geopolitical developments, Chinese supply dynamics, US tariff policies, and feedstock volatility.

Against this backdrop, company remains focused on strengthening integration, expanding into value-added downstream chemistries, and enhancing differentiated capabilities across high-potential product segments. Strategic investments in polycarbonate project and downstream chemistry expansions continue progressing in line with the planned timelines and are expected to support product diversification, import substitution, and margin improvement in long-term growth.

Supported by a strong integrated manufacturing platform, diversified portfolio, disciplined execution, and resilient balance sheet, Deepak Nitrite remains well positioned to navigate near-term volatility while creating sustainable long-term value for the stakeholders. With that, I would now request a moderator to open the forum for question-answer session, please.

Good afternoon. Thanks for taking my questions.

First on the nitric acid, can you just help us understand in this quarter, what was the utilization? Did we achieve the margin profile we were looking at?

I know this is not a right quarter, but still, are we track on to get that ₹90-100 crore of EBITDA addition for the nitric acid which we planned earlier? That's my first question.

Sanjesh. Thanks for the question.

In Q4, while we did start the plant, we were unable to run it on a consistent basis because of some technical issues that took place during the quarter under review. Now we're working along with the technology supplier and the equipment supplier to address these.

Once the plant is under stable operations, we do anticipate the kind of target that we're looking at. During this quarter under review, we were roughly at about 45% of utilization.

Hence, for the balance, we had to secure nitric acid from the market in order to ensure that our products continued to be manufactured and sold.

Got it. That's clear.

My second question is on the phenolics side. I know, very volatile and a difficult quarter.

Just wanted to understand on the raw material availability, that is propylene, how much of a capacity, right now we are running and what's the scenario on the propylene availability? Are we able to run the plant at full or we are still running, suboptimal because of the availability of raw material?

On the spread, again, some of the listed player did highlight that there is a significant difference in the price of phenolic product, in China market and India market. Should it sustain for few more quarter before, we converge or you think that conversion will happen, much sooner than what we think?

Sir, color on that will be really helpful.

Sanjay, just a clarifying question. You're referring to Q1 or Q4?

I'm referring to Q1 and a little color on the Q1, Q2 will be really helpful.

Okay. Thanks.

I'll just highlight that, in Q1 in the first part of, April, when there was a concern about feedstock availability, we also preponed the annual maintenance. Both of those were addressed within that same period of time, I think it was about 10, 11 days.

What we have done in any case in the meanwhile is we have enough of the intermediate product so that we were able to continue to supply to the market. Our, plant efficiencies, which are a factor of feedstock as well as operational capabilities, continued relatively unhindered.

We expect that, Q1, our, productivity and our efficiencies will continue to be in the same improving trend as they have been quarter-on-quarter. Q4 to Q1 will also have some, marginal benefit.

I want to highlight that, because this is also a product where there is, global availability, I don't want to comment on the principle of ergodicity, where we assume that the next, month is going to be a factor of the last month. Given that, I want to share that, our profitability will continue to remain healthy, will continue to be on an improving trend as compared to Q4.

We have enough feedstock as well as, finished product to be able to cater to, India's growing requirement. I don't anticipate, a challenge on that front because of propylene or anything like that.

Wherever possible, we have ensured that we have secured all our relevant raw material and wherever relevant, we have ensured that we are able to pass through our, cost increases. Nonetheless, we will see that, during this quarter and the next quarter, we are remaining very close to our customers, engaging with them on a regular basis, so that, wallet share and market share always remains something that we, maintain.

That's quite clear, Maulik Bhai. One last question from my side.

Any comment on MIBK, MIBC commissioning, when can we expect or do you think this is not a right time to start a new plant and probably would wait for another quarter to see how the industry or uncertainty settle and then we go for the new product? No.

We are already basically we're finishing with the mechanical completion of the plant. We will soon be getting into the pre-commissioning cycle as it may be and at some point, maybe perhaps, at the tail end of Q1 or the early part of Q2 is when we will be looking at commissioning of the asset, because the asset is commissioned along with a couple of other plant assets as well.

We remain on track with that.

Got it. Very clear.

Thanks, Maulik Bhai, for answering all those questions and best of luck for the coming quarters.

Thank you, Sanjay.

Good afternoon, sir and thanks for the opportunity. Sir, first of all, congratulations on improved set of numbers this quarter.

Sir, first question is on the standalone business. Given the kind of capexes what we have announced, one for a fluorinated molecule of ₹220 crore which we have announced and which was supposed to start operations in Jan plus some six, seven new products, which we have told us that have already started production and they are at a various stages of customer approvals.

How do we see FY27, specifically from the standalone business point of view, given these new products? B, given the kind of raw materials what we use for the standalone business like, ortho-xylene, ammonia, sulfuric acid, AHF, how we are secured in terms of the availability of this key raw materials?

Demand for some of our products which are specifically custom made for the export markets. If you can share your thoughts here, that would be very helpful.

Sure. Nirav, I'll answer both your questions.

First question was with regards to new products. The six, seven new products as well as the fluorinated molecule, etc., we've already started the manufacturing for the distinct commercial-scale validation batches.

Those are already either supplied to customers and we've received positive feedback, or in the process of being transported to customers. In all of these, we, as we said earlier, we anticipate a commercial production on a regularized basis from Q3 onwards, because this will reach our export customers towards the end of Q3 in time for their CY26 requirements.

We remain broadly on track. We are constantly engaging with customers, updating them about the current volatility and they are also appreciating this transparency.

Far, I do not anticipate any concern on those, including the fluorinated molecule as well as the non-fluorinated molecules. Now, with regards to the volatility on the feedstocks such as, as you mentioned, ortho-xylene or toluene or others, so, what happened was that in, the beginning of Q4, I was, tracking what was taking place in the Middle East.

In the end of January, early February, what, we noticed is that you're having multiple US aircraft carriers kind of, converging on a location, but in a pincer movement. Now, generally, this is a rare occurrence.

Generally, this has, in the past, whether it is the first, Gulf War, second Gulf War, or in the case of 2008 or whatever, it has actually preceded a significant volatility in prices. From that perspective, we took the very, unusual call of securing raw materials.

We chose to buy it at every dip. You can appreciate that this was a risky move in the beginning of quarter four, which is a few months away from the end of a financial year.

We targeted to buy in every dip. We actually entered, the end of Feb and Q1 with a much higher stock of critical feedstock, whether it was, on high seas or whether it was with local suppliers, products such as benzene, products such as, xylenes and toluenes and all that.

We ended up with, a much larger inventory than we traditionally have had in Q4. This was because we saw an unusual movement and we did not actually anticipate, a hot war, but we did anticipate volatility.

That position has held out quite well for us, whether it is in Q4 or in subsequent quarters. Going with this perspective, we anticipate that the company has a reasonable, inventory of feedstock at enviable prices until we see a stabilizing, perhaps, at the end maybe, Q2 or maybe halfway through Q2.

Perfect, sir. Perfect.

Can we assume that with this, kind of raw materials what we have secured, in, Q4, some benefit would have come in Q4, but most of these should come in, Q1, impacting positively our standalone numbers?

I can say that our Q1 looks, on track for numbers which are better than Q4, whether it is on standalone or on consolidated basis. We anticipate, Q1 being better than Q4, which was, of course, better than Q3.

Correct. Sir, in terms of the products what we have in the domestic market, DASDA, which was under pressure for, I think, we have also filed anti-dumping duties and on the sodium nitrite, which also you have updated last quarter regarding the US tariffs plus the NT chain, I think, which is also now looking better in terms of its application in the agrochemicals.

In terms of, apart from the stuff what we have mentioned, is there any green shoots in any of the products what I just mentioned on where we can see some improved performance also coming in, in FY27 for us?

There are some green shoots and I will resort to once again mentioning safe harbor here, but what has happened also, which was actually announced in December 2025, is that China will administer significant constraints on certain key chemistries, including production, storage, and transportation. There, we find that there will be some uptick in the demand as well as the profitability for nitration products.

Some of the products that you've mentioned are linked to the nitration chain where Deepak continues to have a significant global market share. We anticipate that these will have a bit of a tailwind.

Now, meanwhile, there is also some degree of a headwind, but it is a global headwind, not limited to India or Deepak, which is in the sulfur downstream. Whether it is the availability of sulfur, the cost, the price of sulfuric acid, SO2, oleum, etc., those are places where there will be a heightened cost.

I said, the important thing is to check what the delta between international prices and Indian prices are. There, if we are able to, by and large, be par for the course, we anticipate no significant net impact to the company and the benefit as it comes from nitration chemistries, which Deepak has a considerable market position as well as a technological strength.

Perfect. Sir, last question from my side.

Sir, in terms of the phenolics business, we have already alluded the confidence in terms of the improved performance in Q1. Is it because, our IPA business should do well in Q1 given the kind of the competitor who produces IPA through a propene route and we through an acetone route, where propene availability currently is a challenge for most of the players in India?

If you can share your thoughts here with respect to IPA. Also, if you can share the production numbers for phenol, for FY26, that would be very helpful.

Thank you so much.

Oh, thanks, Nirav. I appreciate the questions, but I continue with my position of not going into details on production numbers.

What I can say is that, whatever is the Indian requirement for IPA, isopropanol, Deepak Nitrite, and Deepak Phenolics in that continues to remain the largest, capacity which is able to service the market for all the special, specifications including pharmacological grade. From the perspective of our ability to supply, that remains unconstrained.

From the perspective of saying, what are the margins, frankly, we look at it only on the perspective of an integrated margin approach. Because our assets are, cost competitive, our product quality is of the best nature, and finally, how much we make will be a balance of what the margins are in terms of the intermediate as well as the FGs.

We will, as I also mentioned, we will also be looking, in the next, couple of months, at, producing MIBK and MIBC. We expect to have a good, healthy mix of downstreams as well as upstreams.

Got it, sir. Perfect.

Thank you so much and wish you all the best.

Thank you, Nirav.

Good evening. Thanks for the opportunity.

Maulik bhai, first question is on, say on phenol spread, [unclear]

[unclear] is not,

Am I audible? There's your

background noise.

Yeah. Sure.

Hopefully now this is better.

Please go ahead.

Yeah. I was asking about the phenol spreads.

Typically, phenol is a very well-traded commodity, across the high seas. When we are seeing this differential spread between say China and India, this could be either because of the local players in China stocking, restocking, or, say phenol is not, in, to be transported across because of the say, container issues.

That is the reason we are seeing. Should we expect this to get back to the normalcy post the crisis, or are you seeing this kind of triggering some kind of a chain reaction where, this could, put the, phenol in the path of cyclical recovery?

Arun, it's not possible for me to comment on the spreads of other companies and other countries. What I can say is that Deepak continues to operate with a high degree of productivity, efficiency and is able to ensure that it is able to create the margins that you are seeing.

I've also already qualified that we anticipate that Q1 will be somewhat better than Q4 and also better than last year's Q1. Keeping that in mind, let me put it this way, there's a lot of factors at play.

Even though we're seeing that plant capacities all over the world are being constrained because of their own operating costs. We are also at the same time seeing volatility in currency, in freight times and freight costs, and material movement from port to customer's plant.

In all of these cases, all I can say is that having a domestic supplier of high-quality products is a game changer for domestic consumers who don't need to be blocking in the kind of working capital that they would need to if they were importing with the kind of geopolitical risks that they are seeing. At this time, all I can confidently say is that Deepak being a domestic supplier is something that our customers depend on to be able to aggressively work on their downstream expansion activities.

Understood. One follow-up to that question is, do you see domestic buyers, especially in the phenol market, back to ordering at the regular intervals or they are still resorting to the need-based buying?

Answer to this question, to be frank, Arun, is mixed. In a lot of cases, it has kind of resorted back to a normalized buying pattern.

In some cases, there's, but, and by and large, this is because of other factors such as availability of other products, or availability of gas, and other inputs. It is not just about the demand-supply of their own, but it is of their manufacturing environment.

What is important for them is to know that Deepak is always there, always ready, and always able to supply. Formal notice, this is one thing that they just never need to worry about.

That gives them a lot of succor and that allows them to pass their working capital where they need it most.

Understood. In my second question is on the status of where we are in terms of nitration and the second hydrogenation plant, is the plant ramping up well and running as per the level of utilization that we thought of initially?

Second, on your answer to the nitric acid utilization of 45%, is this the average one or this is the exit utilization at which we are currently operating? On

your first question on nitration and hydrogenation, those plants are already commissioned and they are operating with the right productivity and efficiency as expected. With regards to nitric acid, what we had as a situation is when we were operating, we were operating at full utilization.

As I mentioned, we did engage we did encounter technical challenges due to which the plant has been under repair and maintenance in line with our technology supplier and equipment supplier. This is primarily our DNA plant, whereas concentrated nitric acid plant is working normally.

Understood. On the nitration and hydrogenation, anyway you can quantify where we are in terms of utilization?

No, those plants are, fully operational. They've been commissioned, I think, at the end of Q2 or early Q3 early Q3.

Those are okay. There is, positive contribution and, if there is a constraint, it has been with regards to, the availability of nitric acid where the prices have been substantially higher, where we've been constrained to buy from the market because of technical challenges.

The plants are all, in line and operational.

Understood. One question on polycarbonate.

We have mentioned that the commissioning target of 2028, this is only pertaining to PC resin or to the entire, phenol and BPA production blocks as well?

What I've mentioned, which Mr. Upadhyay has also clarified, is that, look, the answer is at this moment the same for the integrated.

However, we've clarified that the PC resin plant will happen independently. It may happen alongside.

It may happen with a mismatch of a few months and the phenol expansion will happen in line with the commissioning of the propylene supply. Our capex includes the ability to have this in a slightly disjointed manner.

What we are anticipating is that perhaps they will all happen on track, perhaps there will be maybe a quarter or so of mismatch. All of the assets that we put in place, as they are operationalized, they should be able to run at a high degree of plant productivity.

In line with that, we've already been working to see how we can start compounding and supplying our polycarbonate compound to customers in India as well as outside of India. We anticipate that to also reach its capacity in line with our resin plant.

On the,

Maulik, on the compounding plant,

Yeah. so just wanted to know, the receivable, days are increased, any specific reasons to that?

Sir, on the What has increased?

The receivable days has increased. just wanted to know any specific reason to that.

Secondly, sir, in the Advanced Intermediate business, do you see a major growth, in that for, FY27 going forward? because the business seems to be very underutilized, compared to the historical numbers.

What you are seeing as underutilized is actually the realization which had gone down, not the capacity had gone down. Capacity is, we are running full, but it was the realization which was lower in, as compared to earlier years.

As regards, outstanding number of days, in some cases, we have changed the model because today we are passing through a very volatile situation and we do not want to risk our outstanding. We have gone into dealership and CSA model.

That is helping us in, at least in securing our outstanding. so, these are the reasons for this.

I'll also share the new products that we're taking up, whether it is in Chem Tech or in Deepak Nitrite, the new downstreams, products which are in the ag chem space and outside of the ag chem space also, they're all, significantly, margin accretive. We see in, FY27 certainly an improved margin profile on even the standalone business as compared to FY26.

We are working towards, a return to what we considered normalcy a couple of years ago. FY27 will be this period where you will see an improving trend.

Fair enough, sir. Sir, due to the, anti-involution stand of China, do you see any realization improvement in standalone businesses?

Like I said, whether it is because of the anti-involution stand or critical hazardous chemistries, etc., or the global demand improvement, whatever you want to call it, we do anticipate an improvement in the margins as well as the gross numbers, as we progress into FY27. That is on the basis of existing product portfolio as well as new products.

Okay. Sir, one of the player in India, providing intermediate to the global plants, they said that in the agrochemical, the volumes are increasing, but the prices are not, in the favor.

Do you see the same happening in your agricultural part of the business?

This is, again, very nuanced and it depends on the chemicals, it depends on the feedstock availability, it depends on the margin profiles. Generally what we are witnessing is that the benefit will be unevenly distributed between integrated players and non-integrated players.

Players who have occupied a larger number of positions on the supply chain will be able to benefit from this improvement in the volumes and with a general degree of derisking in the margin portfolio.

Fair enough, sir. That was really helpful.

Thank you.

Thank you.

Thanks for the opportunity. Sir, first question is on the phenolics part of the business.

After the maintenance, over the last one month or so, are we operating at optimal utilization, the plant? Thank you.

Just to clarify, the maintenance was only in the beginning of April, maybe for about 10 days or so, not for the month of April. We are operating at this moment at high efficiencies.

We do not anticipate a constraint from plant or from feedstock availability.

Sure. The second question is in terms of, we have said that, we have certain low-cost raw material.

Have we passed on the entire pricing increase which has been witnessed in the market? Whether the prices have been adjusted to the current, RM prices?

Allied question to that, given that the final product prices for our Advanced Intermediate as well as phenolics business, those have increased, have we witnessed any demand-side contraction in the domestic or exports market? Thank you.

Okay. Thanks, Rohit.

Just to clarify, we were able to secure feedstock on dips, which we did very judiciously. Going into the end of Q4 and into Q1, we are in a good position.

In terms of passing on the, this thing, price increases equivalent to the market conditions, that is an ongoing exercise. What we do is we balance out that as well as market participation and wallet share.

What we're seeing is that by and large, that has been good work done by the business teams, keeping on constant engagement with customers as well as ensuring that plant productivities at a high degree. Now, with regards to demand volume, as you can anticipate, demand volume for our products fluctuates based on availability of other co-products as well as their own production cycles.

Keeping that in mind, what I can say is that we continue to have a significant wallet share across the board. I don't think that there has been any significant disruption in terms of wallet share and ensuring that we are engaging with customers, what we're giving them as a good degree of certainty is that Deepak stands there.

It is, even if it is at market prices or whatever, they don't need to work hard to use up their foreign exchange to block import parcels, because Deepak is there.

Got that, sir. Thanks a lot for answering all the questions and all the best.

Thank you, Rohit.

Hi. Good evening, Maulik.

Thanks a lot for the opportunity. First question on the phenolics bit, knowing that there's a lot of fluidity, the dynamics are evolving in the global trade, but have we assessed a scenario wherein some of the European capacities or maybe Taiwanese or South Korean capacities are overshooting their cost curves in a scenario where energy costs are rising, feedstock price are rising, and let's say if this situation persists for a fairly bit longer, and knowing that we are in a cost-competitive scenario, should we see a position wherein some of these capac capacities might be arrested from the system?

That would be my first one, Maulik. Thank you.

Thanks, Archit. Phenol is, it's an ocean.

Water just flows wherever it can. While there is a disruption, you will have some capacities going offline, some capacities being idle temporarily, some capacities being taken down for maintenance, sometimes in Europe, sometimes in the Far East.

Some places like China you will have, commissioning of some capacities, whatever it is. One thing is, fact that India and all of this remains a positive dynamic in terms of growth in terms of consumption.

There, ensuring that there is availability of products such as phenol is key for our customers. Whether they, import it and deal with the kind of volatility that they would face in terms of the amount of time that it takes, the exchange gain or loss, and the working capital blockage, what we are focused on seeing right now is, our ear to the ground and focusing on optimal plant utilization, efficiencies there, and ensuring that we are, as close to JIT as possible.

Our customers are able to focus on their own expansion activities. I, I see that there is, consolidation also on one side, geopolitical, volatility also on the other side.

Our job is to be able to exude a sense of stability.

Sure. Understood, Maulik.

The second one is on the proposed overhauls, in China on these nitration plants. I believe it was supposed to get triggered on 1st

of April, specifically

in the region of First of May, is it? Okay.

I misread that, maybe. I think this was more specific to the reason of Shandong, where I think there's almost 30, 35% of nitration capacities.

We had seen in the past that products like DASDA and thus by far, our OBA portfolio had benefited back in 2019 when there was an explosion, ripple in the supply chain because of these issues. Are we referring to that, when you made this comment about certain tailwinds that we might foresee in the nitration portfolio?

Has such an action already taken place where some of these Chinese plants were asked to automate using DCS and all, have not done so and the tailwind is already seen or it's prevailing? Thanks, Maulik.

Okay. Thanks, Archit.

To clarify, my comment was not linked to one or the other province because this is a general CCP guideline with regards to the chemistries as well as the safe material movement as well as the transport, which includes, of course, also product at ports and transport over oceans. It is an all-encompassing audit and it is an all-encompassing compulsion which is not also limited to only things like DCS.

Now, this is something which can be considered as a tailwind not specifically linked to A product or B product like DASDA. This is, and again it is not just nitration, but nitration has been a problem child in China again and again because a lot of plants operate without safety standards, whether it is at storage or production.

Given that, this is a structural tailwind for companies like Deepak who do it in a responsible manner.

Maulik, my only point being is that have we started seeing these developments on ground in China irrespective of which province is it? It just wanted to know, how are we backing our comment on this tailwind part.

Has it already started happening is what I wanted to know.

It has already started happening.

All right. That's very helpful, Maulik.

Thanks and all the best.

Thank you.

Hello, sir. Regarding the polycarbonate project, so, by when do we expect to commission this?

How will this be funded?

We've clarified earlier and we're by and large remaining kind of in line with that, that we're expecting it to commission by June '28.

Okay. What will be the funding source for this?

Worth ₹5,000 cr., something?

Funding is the total project what we have announced is around ₹11,000 crore. The funding is for all the projects together.

We have tied up with the banks for debt. It will be in the ratio of 60:40.

We have already started putting in equity is here. Bank funding is already in line and once we put in 25% of equity as per the bank condition out of 40%, we will start drawing from the debt.

Funding is not an issue. We are generating enough cash and bank loans are also tied up and as and when required, if at all required, we will approach the market.

Okay. That is from my end.

Thank you, sir.

Thank you.

Thank you so much. Thank you, all, for joining us on this call.

In case any further clarifications are required, you can get in touch with our investor call, relationship, Mr. Somsekhar Nanda or Mr.

Gopal Thakkar. Thank you.

Thanks again.