Thank you, Shruti. Good evening, everyone, and welcome to Q3 and 9M FY26 earnings conference call of Navin Fluorine International Limited.

Today on the call, we have with us Mr. Vishad Mafatlal, Chairman; Mr.

Nitin Kulkarni, Managing Director; and Mr. Anish Ganatra, Chief Financial Officer.

This call will contain forward-looking statements about the company, which are completely based on beliefs, opinions, and expectations as of today. Actual results may differ materially.

These statements are not the guarantee of our future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is given on page number two of the investor presentation of the company, which is uploaded on the stock exchanges and on the company's website.

With this, I hand over the call to Mr. Vishad Mafatlal for his opening remarks.

Thank you, and over to you, sir.

Thank you. Good evening, ladies and gentlemen, and welcome to Navin Fluorine's Q3 and 9M FY26 earnings call.

I am joined today by our Managing Director, Mr. Nitin Kulkarni; our CFO, Mr.

Anish Ganatra; and Ms. Payal Dave from MUFG InTime, our investor relations adviser.

The environment in which we operate continues to evolve, shaped by global developments and macroeconomic trends. While these dynamics bring their share of challenges, they also create new opportunities.

I am pleased to share that we have remained resilient and agile, consistently adapting our operations to sustain growth and deliver strong outcomes. Our growth has been made possible by the relentless dedication and tireless efforts of our teams.

Through focused teamwork, strong R&D initiatives, and the adoption of right technologies, we have been able to navigate diverse global scenarios. Equally important are the deep relationships we have built with our partners, which continue to strengthen our foundation.

I want to express my heartfelt gratitude to every member of our team and all other stakeholders, as their commitment has been driving force behind the performance we are witnessing today. I am pleased to highlight that our cGMP4 Phase 1 facility has commissioned based on our timelines.

Post successful validation of batches, we started commercial supplies during the quarter. Our AHF project was also successfully commissioned recently, and commercial supplies have started.

We are pleased to inform you that all our ongoing capexes are progressing well. With continued positive pricing trends and ongoing capacity expansions, we are confident that the HPP business will continue to deliver sustainable growth.

Our specialty chemicals division has achieved its highest ever quarterly revenue, underscoring both strong execution and deeper partnerships. Meanwhile, the CDMO business continues to build momentum with strong order visibility.

Across all our verticals, momentum remains strong, supported by clear order visibility, reinforcing confidence in our growth trajectory. We are also progressing well on the advanced material space and with initial evaluations for projects in the electronic chemical value chain.

Before I hand it over to Nitin for a detailed update on the business, I'd like to briefly talk about the current global developments and the impact of the Union Budget 2026. Both the EU Free Trade Agreement and the US trade deal are good news for our industry.

We expect these to support our bilateral trade. The government's focus on strengthening domestic manufacturing is also very encouraging for the chemical sector.

Further, we are encouraged by the launch of India Semiconductor Mission 2.0, which focuses on semiconductor manufacturing in India along with associated ecosystem of critical supplies, including chemicals and gases. This is a positive for our advanced material businesses.

With these policy supports, we believe the Indian chemical industry is well placed to grow globally, adopt advanced technologies, and contribute to higher-quality exports under the Make in India and Viksit Bharat 2047 vision. Thank you once again for joining us today, and now I would like to hand over to Nitin to provide an update of our operating and business performance.

Thanks, Vishad bhai. Good evening.

Thank you for joining us on the call today. We are happy to report a strong performance across all our business verticals for the quarter as well as for the nine months of FY26.

For 9M FY26, our revenue grew by 44% to INR 2,376 crores, while quarterly revenue increased by 47% year-on-year to INR 892 crores. Our margins for the nine months stands at 32% compared to 21.5% in the previous year, reflecting an expansion of 1,047 basis points.

This improvement has been driven by our focus to diversify our portfolio, expand our market presence, deepen strategic partnerships, and enhance customer relationships. This approach has solidified our presence as a globally trusted provider of diverse fluorochemical solutions, while fueling growth in competitive landscape.

While focusing on this growth journey, we have also kept ourselves nimble and disciplined by relentlessly focusing on maximizing operational efficiencies, strengthening R&D, enhancing technology platforms, and optimizing supply chain. Talking about our business verticals, our HPP business delivered a strong and consistent performance during the quarter.

Revenue for Q3 FY26 stood at Rs. 412 crores, registering a 35% year-on-year growth compared to 306 crores in Q3 FY25.

The growth was driven by combination of higher realizations and improved volumes, supported by constructive price environment. We are pleased to inform you that AHF project has been successfully commissioned during Q4 FY26.

Additionally, the capex for incremental HFC capacity equivalent up to 15,000 metric tons per annum of R-32 is progressing as planned and is expected to be commissioned in Q3 FY27. Coming to our specialty chemical business, Q3 FY26 reflects a strong quarter for the segment.

Revenues increased to Rs. 354 crores, reflecting a 60% year-on-year growth over 221 crores in the Q3 FY25, making this the highest ever quarterly revenue for the specialty chemical vertical.

The outlook remains strong and encouraging, supported by strong order visibility for Q4 and beyond. Our product pipeline continues to gain strength, with scale-up in existing molecules and several new molecule launches are lined up.

On the project front, the Chemours project is progressing well and is on track for completion in Q1 FY27. Further, the debottlenecking of MPP capacity at our Dahej facility is expected to commission in Q3 FY27, which will further enhance our capabilities.

Moving to our CDMO business, the segment continues to demonstrate strong momentum with improved visibility. Revenue for Q3 FY26 stood at 127 crores, growing 61% year-on-year from 79 crores in Q3 FY25, driven by strong execution and customer traction.

During the quarter, we achieved a significant milestone with our European CDMO partner as we have successfully completed validation and commercial supplies has commenced from our cGMP4 facility. This engagement provides strong revenue visibility over the next three years.

We have also concluded supplies for material orders from a major EU customer, with discussions also underway for future supplies. Additionally, another scale-up order from a large European customer is scheduled for Q4 FY26 deliveries.

On the advanced material space, we continue to progress on multiple projects to become part of the overall semiconductor and electronic value chain. We are evaluating all these opportunities and will update you in the near future.

With that, I will hand it over to Anish for financial update.

Thank you, Nitin. Good evening, everyone, and welcome once again to our earnings call.

I will now walk you through the company's financial performance for Q3 and nine months of FY26. Looking at our quarterly performance on a consolidated basis, our revenue for Q3 FY26 came in at 892 crores, reflecting a growth of 47% year-on-year and 18% sequentially, driven by strong contribution from all verticals.

Operating EBITDA stood at 308 crores, up 109% year-on-year and 25% quarter-on-quarter. EBITDA margins improved to 34.5% compared to 24.3% in Q3 FY25 and 32.5% in Q2 FY26, driven by improved realization and operating efficiencies.

Operating PBT increased to 243 crores versus 98 crores in Q3 FY25 and 179 crores in Q2 FY26, marking a growth of 149% year-on-year growth and 36% sequential growth. Profit after tax for the quarter stood at 185 crores, recording a growth of 122% year-on-year and 25% quarter-on-quarter.

On a nine-month basis, our revenue was 2,376 crores compared to 1,648 crores in the same period last year, a growth of 44%. Notably, I would like to highlight that we have surpassed our full-year revenue number of FY25 within the first nine months of FY26.

Operating EBITDA reached 761 crores, up 114% from 355 crores in the nine-month period ending for FY25. EBITDA margins improved to 32% versus 21.5% in the prior-year same period.

Profit after tax for nine months stood at 451 crores, 56% higher to full-year FY25 PAT of 289 crores. As of December 31st, '25, our net debt-to-equity ratio stood at 0.03x, and net working capital was below 80 days of sales.

This reflects a disciplined approach to access growth. Before I conclude my remarks, I would like to summarize with the key takeaways.

One, our earning growth rate surpasses the growth rate in revenue, resulting in operating leverage coming to play. Growth reflects the performance across all verticals.

Execution of Wave 1 projects, AHF, cGMP4 concluded and commissioned during the quarter. With this, Wave 1 of capex projects concludes and Wave 2 projects, namely the MPP debottlenecking, the R-32 expansion, HFC expansion, and the Chemours project are on track for completion as indicated.

Strong project pipeline across the verticals again continues to fuel opportunities for future growth. Financial framework remains conducive to growth.

With that, I conclude my remark and open the floor for questions.

Thanks. Good evening, and thanks for taking my question, and congratulations for a very good set of number.

I got few questions here. First one, the Navin Fluorine Advanced Science, it appears to be doing significantly better sequentially.

The revenue consol minus standalone stands at 322 crore versus 196 crore, there is a growth of 126 crore sequentially. Can you help us understand what segment is driving such a sharp improvement?

We had three large project within it: HFO, dedicated plant, and MPP3. Where are we in the utilization cycle for all these projects?

Thank you.

Okay. You want me to take this, or you want to just put your questions first?

No, let me finish this and then probably I'll go for the others.

Okay. Navin Fluorine Advanced Sciences is again, you're absolutely right, sequentially, the growth is solid, but it's also something that one would expect to see, because, as we've indicated in the past, there has been a pipeline of projects in the specialty vertical, and including the Nectar ramp-up.

Those two are playing out very well in Navin Fluorine Advanced Sciences, which is what you see in the numbers. I would like to also put this thing in, which is, specialty vertical for this quarter is reported a number of 350 crore, which, in some sense, hence sets up a solid run rate of what we should expect the specialty business to deliver going forward.

Of course, there will be further drivers of growth with the Wave 2 capexes that we've announced, yeah?

Got it. Utilization for all the three projects?

Utilization for the MPP1 is solid. For the full year, we expect to almost hit the par.

Utilization for MPP2 is about 80%, 70%, around in that range, but we expect that to pick up in the coming year. Utilization for Nectar is again, as we had always said, this year we would hit roughly 50% of the par, we are on track for that.

Dedicated plant?

Dedicated plant, I told you, about 70%, yeah. Achha,

okay. 70%.

Also, there is still headroom to grow from here for Navin Advanced Sciences, that implies.

No, indeed, indeed. For Navin Advanced Sciences, with the AHF commissioning, you will further see growth coming in from there in the vertical as well.

Also what we've announced on MPP debottlenecking, that will also give further growth coming into the future. In a sense, last quarter when we announced the debottlenecking project, we had very clearly said that we are coming to a point in the specialty business where our strategy of working closely with the global innovators is paying off.

Which is why we announced the debottlenecking project, because we were seeing that the capacity addition would be value accretive.

Got it, got it. If I look at the commentary from other chemical company, everybody is struggling from agchem cycle not picking up probably as everybody thought.

That's not really hurting us. Are we doing anything different in agchemical or is just a base effect or there is mix between agchemical and non-agchemical within the MPP?

No, so, Sanjay, you've got to go back to our commentary a couple of quarters ago where we said that we had started working proactively with the global majors to be their technology partners in their supply chain, and not just a pure relationship which is transactional, right? I think that, along with the combined effort of our R&D, manufacturing teams and the business teams, is actually playing out in what you see in the numbers, yeah.

Got it. It is largely agchem driven, right, as of now, within the specialty?

Yes, indeed, indeed, indeed. Indeed.

Got it. The second question on the margin and AHF, both put together.

Now that AHF plant has commissioned, we will sell more, we will buy less, which should be margin accretive, and we are already at 34.5%. How should we think about this?

I think you're right on the first part of the statement: sell more and buy less. There is absolutely no doubt.

As we always see AHF as a mother plant, right? The HFC capacity that we've announced obviously will sort of come into play in utilizing some of that added capacity.

We will be out also in the trade market. There's no doubt about that.

I think the bigger game here is how do we use the new AHF capacity to advance the vertical that we are incubating, the advanced materials vertical. There, as Nitin mentioned, there are several projects that we are working actively on, and hopefully some of them should kind of move into traction in the near future, yeah.

We'll keep you guys updated.

On the margin, Anish?

On the margin, I think we have always said 25. I think it's now safe to think of Navin as a 30% annual number, but let's not kind of hold that on a quarterly sort of treadmill run rate, yeah.

It will be an annualized number that we are looking at 30%, give or take, plus-minus 200 basis points, but that's where we would be. This year, clearly, as you will see the numbers and the math will be in front of you, that we would be hitting or crossing the 30% number, yeah.

Correct, correct. One last question from my side, I know there are other in the queue.

On the AHF, rightly said, there is an electronic and semiconductor opportunity there. Why not solar?

I think we have been downplaying solar, while solar production in India is picking up so strongly. There are larger players who are entering, and that requires a good amount of AHF, and not at the purity of semiconductor, but not even that normal HF works there.

Somewhere in between. Why are we not playing that?

Sanjay, as you said, we never said we're not playing into it. I think what we are saying, and this is really important to understand, that solar is a part of journey to get to electronics grade, and that's what we will do.

We will get to electronics grade, but it does not exclude solar. There will be solar and there will be electronic grade.

We want to bake this capex in a manner that we are able to access electronic grade, yeah. That's why it's taking some time, but hopefully not too long, yeah.

Got it, got it. This plant is supposed to come in when, the Buss technology related plant?

Like I said, before Buss or no Buss, we will move, and that's what we are doing. We're actively working on this, and you should see something hopefully in the coming quarters.

Anything on the BF3 for a semiconductor application?

It's part of the equation. As we get into electronic grade, you have high purity of all the chemical gases.

We are going to play on our strengths of fluorination and get into downstream higher purity gases, of which, of course, BF3 is one of them as well.

Very clear, Anish. Thanks for taking all the questions so patiently, and best of luck for the coming quarters.

Thank you, Sanjay.

Thank you.

Hi, team. Thank you.

Congratulations on a good set of numbers. Again, on the consol minus standalone, that is a subsidiary EBITDA margin in the last couple of quarters, ever since the specialty molecules started ramping up, that has surged to 45% from around 28% there.

Gross margin in this period has increased by about 400 bps only. Seems there is hardly any opex increase in the last couple of quarters.

The EBITDA on the incremental revenue seems to be north of 65% there. Could you kindly give us some color there?

If this is a sustainable margin profile of the specialty molecules here, or there is something more to this surge in margin?

Nitesh, thanks, but I don't think the EBITDA is 65% north. I think you're looking at some numbers, but, in principle, directionally, the comment is correct that the margins in the subsidiary are looking better, and so is NFIL also.

What one has to remember, see, we've always communicated this very strongly in the investor community and to you guys is that our priority has always remained on manufacturing excellence as number one priority. We are consistently driving economies and removing inefficiencies in the system.

That's why you see a solid control on cost. That's why you see a solid control on innovation in terms of trying to bring in better processes, improved processes, higher yields, and lower losses.

Some of this you will naturally see. One has to remember also that NFASL is not a listed entity, it doesn't have the same overhead structure as NFIL, which is a listed entity.

There is a proper transfer pricing arms-length association between these two companies to transfer the costs between the two sort of entities. There isn't anything that you're seeing unusual there.

Perhaps it was something that one would expect. In a scenario where we are, like we said even last quarter, you will see operating leverage play out very nicely in Navin, yeah.

Sure, sir. The second one is on the refrigerants bit.

Has there been a change in the exports to domestic mix on the R-32 side and the reasons maybe that you could attribute there? How much has been our R-32 utilization in Q3?

Any significant increase sequentially that you might be seeing?

R-32 utilization has been 100%. Of course, in this quarter, we've taken a shutdown for Argo 1, which is a usual plant shutdown for catalyst changeover.

The mix between export, domestics is actually not materially different from what it used to be. Of course, as we are preparing for the new capacity to come on stream, we are also looking at expanding our market reach, which also is happening simultaneously.

A lot of this you will see moving parts, because we've got to make sure that we are able to place the new upcoming portfolio as well. There are certain sort of accesses that we are looking to get globally on R-32 as well.

Sure. Just one last maybe before I get back into the queue.

With the Chemours project on track for completion in Q1, could you give us a sense of the revenue ramp-up over FY27 to '29? FY27 is a partial year, and how the margins should be thought about relative to the overall business, without getting into specific numbers there?

Like I said, the Chemours project is an initial capacity to drive an accelerated adoption of the product in the market. As we've said previously, we are under a confidential agreement to not talk about the quantities or the revenue associated with that, but the size of the capex should give you a decent feel.

This capex, as it sort of progresses to access the overall market of liquid cooling, will sort of come into fructition two years once it starts off. That's when we will start to talk of how and what sort of a bigger capex looks like.

At that stage, we can possibly talk a little bit more on the future outlook of the revenues, etc. Just to give you a sense, the liquid cooling market, I believe, is close to about $3 billion potential, and two-phase cooling is one part of the solution, critical and necessary part of the solution to support the data center growth in the world driven by AI, yeah.

Sure, sir. Thanks a lot for answering my questions.

Wish you all the best for future. Thanks.

Sir, thanks for taking my questions. Sir, first question, you've been saying that for the AHF plant, we will basically look at increasing our realization per kg.

Now I just wanted to confirm how much of the 40,000 will be used captively and how much will be sold externally?

I think the answer there, no, is sort of implicit in your question in a sense, Jason. If I have to get more realization, I have to keep consuming captively more and more.

The trick and the business strategy is to consume it into more and more niche chemistries and advanced plays?

Okay. Do we have, sir, any ballpark target in mind, or a proportion?

Like I've said before, this is a license to grow capacity, yeah, or license to dream capacity. In a sense, by putting this capacity, we are signaling that we will continue to develop chemistry and capability in downstream applications to grow this.

Now, how and what, frankly, we've talked about in all the verticals, including the play that I've talked about in advanced materials, where we said we will go on the back of fluorinated chemistries. It's very easy for you guys to figure out what that market size is and what the potential is, particularly given the thrust that the Indian government is now putting on semiconductor manufacturing and data centers in India along with the right sort of incentive structures, yeah.

I think, over there, again, at this stage, all I would say, license to operate. Think of it this way, Jason, we wouldn't have been able to do or access 32 opportunity if we didn't have the AHF?

Right, sir. Sure, sir.

Yeah. Sir, just about this cooling liquid market, you said that it's the total market of $3 billion.

Is that right?

I think the $3 billion is the potential market size, yeah, of total liquid cooling. Talking from memory, but that's what it is, yeah.

It's on a global scale. That's what you're saying, right?

Yeah. Global scale.

Correct.

Yeah. Global scale.

Sure. Sir, just wanted to know which segment...

Sorry to interrupt,

Sure.

Thanks for the opportunity, and congrats on a very strong set of numbers. First question on the Nectar project.

You alluded that for this year, we are on track of utilizing the capacity, half of the capacity. Are we also on track to utilize the other half in FY27, or just pure broader perspective on the same?

Thank you.

We are working to secure the other half. If not other half, we should be pretty close.

That's what our aim is, yeah.

That's helpful. Second question in terms of the nine-month staff cost has been largely flattish.

I understand that we have been optimizing across the board. What is the sense in terms of from here on, will there be a natural inflation-adjusted growth in the staff cost?

I think there will be two things playing out. As you look into the forward, you will see that the par numbers we've indicated for various projects will give you a certain growth rate that is implicit in Navin's performance as we've reported today.

You will see that that will also entail that we will be taking certain calls on capability enhancement across the organization. You will see a combination.

I think a safe bet is to look at what we are saying 7-8% of revenue as our employee cost. See, we were historically at a two-digit number, but I think we've now contained it to where we should be in terms of comparison to peers or where we think it's appropriate.

That's what I would do if I was to model in your place.

Sure. Just one last clarification: on a sequential basis, where we stand today in this quarter, are we also expecting on all the three segments we are fairly confident of growth?

Absolutely. Like we've said before, all three verticals have performed and all three verticals continue to demonstrate the capability to access the opportunity.

Some of that is clearly visible in the capexes we've already announced, and which we will continue to do as we progress our projects in a disciplined manner. With CDMO, obviously, with every month going by, we're getting closer and we're inching closer to our aspirational number of $100 million.

Perfect. That's helpful, and all the best, sir.

Thank you.

Thanks for the opportunity, and congrats for that great set of numbers, sir. Sir, my first question is on the cGMP4 plant Phase 1 that we have commercialized.

Since that is a dedicated unit for the known partner, when do you expect the optimal utilization of the plant, sir?

Within the year. In FY27, you will see full optimum utilization.

Okay. That is one.

I was a bit soft.

You heard my No. Yeah.

Within a year that you mentioned, is that right, sir?

Correct.

Okay. Second was that the kind of a positive surprise, obviously, because of the kind of a subsidiaries contributing incrementally as well as the agchem contributing, the specialty contributing, all that.

Any element of a quarter-specific contribution that whether we are seeing either in terms of revenue or in terms of margin?

No, I think, see, one thing I know I hear you say surprise, but frankly, all of this is in line with the capexes and the pars we've announced. We've always said, in fact last year, I remember Nitin and I explicitly mentioned that as we got into FY26, the first half of this year was going to look at like the last half of last year, right?

This is in line with what we've always been working towards, and so therefore, not something that has happened by accident, something that we've driven to. One thing also, the only exceptional item that you talked about is the exceptional item we reported in the numbers, which is as a result of the new labor code.

Yeah. Just one more point, sir, on the AHF thing.

See, that is obviously we are targeting for the new-age industries application. If you can give some more sense about like whether the products for with how many customer that we have validated, whether the customer are the local Indian ones or it is the even external market that we have validated our product for the new-age industry application.

If you give some sense on that, it would be really helpful.

There are several projects we are working on, and these are with a wide range of customers, largely global, spread across different geographies, and they are in different stages. I'm sure, Surya, you will understand there's a lot of commercial sensitivity to these conversations, but I think I have indicated sufficient in terms of saying that this will be from downstream fluorinated chemistries, and they will be niche plays.

We do not want to get into me-too kind of products, yeah.

Okay. Just my point that whether we are targeting the evolving semiconductor industry in India or something like that, that as a kind of opportunity for the new-age industry, or it is even the global market that we're trying to tap?

It will be new age across the world, including India. No doubt about it.

Great, sir. Congratulations.

Thank you. Thank you.

Yeah. Thank you so much.

Gross margins, sir, despite a sharply higher salience of specialty chemicals this quarter, the gross margins are still remained stable or moved up a little bit sequentially. Is this coming primarily because of maybe higher realizations in HPP or better mix, regional mix in HPP?

What might the reason be there?

Yeah. Abhijit, you're looking at your consol minus standalone, and you're talking of NFASL, you're talking NFIL when you make that comment?

No, I was looking at the consol gross margins.

Consol gross margin captures both. It captures the pricing and the realizations that we've had on the HFC and HPP front.

It captures also the optimization and manufacturing excellence piece I spoke shortly ago about into the specialty, into HPP as well frankly. Also it captures the increased mix coming from CDMO.

It's all three verticals actually contributing well. As we talk to our customers, see, even in the specialty vertical, no, the agrochem players are projecting a good outlook for volume growth in the coming year.

Now, pricing pressure, we've always said, will remain part of this business. If you remember my early commentary, I told you how this shifts from being a lift, shift, adopt model to a lift, shift, adapt, embed model.

That's what the power of the integrated teams comes into play there, where you can bring R&D, manufacturing, business teams into defining how you can add value as a solution provider to your customers, yeah.

Sure. Thank you.

No, just to clarify my question, maybe a little more detail. On a sequential basis when I look at it, 2Q versus 3Q, HPP revenues and CDMO revenues are almost stable sequentially.

Specialty chemicals is the one that's driven pretty much all the growth. From what I've expected that the gross margins on specialty chemicals might have been lower compared to the rest of the portfolio.

Yet we see the gross margins are pretty much stable at the consol level, 58.8% versus 58.7%. I was just trying to understand whether there's been a margin improvement in any of the three verticals.

If so, what might be driving that?

Margin improvement has been in CDMO, has been in HPP. Specialty remains largely flat.

Obviously what you're seeing is the operating leverage is also playing a big role in the earnings growth. That one has to remember.

Yeah. I was just referring to gross margins, I guess that wouldn't count up.

Yeah. Okay.

Margins have improved in both CDMO as well as HPP. Got it.

Just on the domestic sales of R-32, are the margins superior to the international sales?

No, not necessarily. We are having a good average realization across both markets, but I believe exports tends to be better than domestic.

Got it. Thank you so much.

All the best.

Hi, sir. Congratulations on a fantastic set of numbers.

Just on the margin front, given that all your manufacturing initiatives and the excellence that you've done are sustainable, are there any factors that you're monitoring that could pose as some sort of a risk to these margins beyond the pricing volatility that you've previously flagged?

No, so, you're right. The only issue, and I'm sure you guys know it, the price of sulfur keeps increasing, the price of fluorspar is increasing.

There are input costs that are going higher. Therefore, obviously, that's something that we monitor very closely and we work in to make sure that our pricing decisions reflect this accurately then.

Sure, sir. I'll rejoin queue, and all the very best.

Good evening. Thanks for the opportunity.

Anish bhai, my first question is once again on this specialty chemicals. Sequentially, we have delivered roughly 120-130 crores growth.

Is it safe to assume that largely this is coming from the Nectar?

Mostly this is coming from a combination of Nectar and other products in the pipeline where we have scale-up orders. It's a combination of the two.

A good proportion of course is the Nectar project where we concluded a campaign, yeah.

Ex-Nectar growth is from a catalog sales or from rather legacy assets?

I don't do anything that's catalog here. I'm basically doing it as a solutions provider for the large majors anyway.

This is largely from the large molecules that we are doing on

scale? Because you remember we've always talked about the fact that every quarter our intend is to do one or two new molecules in agchem.

That pipeline which was anyway strong and being built up is starting to sort of yield results.

Right. When you said that the volume outlook looks very good, and given that we have good capacity left, would we be seeking more volumes at the expense of margins because we are anyway good in margins at the consol levels?

Should we expect that we be picking large market share in the volume to gain volume market share?

Arun, first, I just want, if I said it, I'll stand corrected, I said the outlook looks better, because if you look at it, the agchem sector has gone through some rough weather over the last two years, right? The next year seems to be an outlook where people are saying there will be a volume uptick.

Now how much that is, frankly, I don't know at this stage. Is the pricing pressure always going to be in the agchem business?

It is always going to be there. I don't think that shift we have to all make in our minds.

Like I said, that as Navin, we were possibly an early recognizers to that trends where we started to change the way we looked at our customers, driving a portfolio-based conversation, focusing more on driving process improvements, etc., and therefore then becoming a long-term solution provider to our customers rather than just a mere supply chain contractor. I think that that is intact, and I don't think that that strategy will change, frankly.

Understood. When you earlier said that we have we should look at the margins at 30 30% plus or minus 200, from current levels, at a downside risk, we are looking at the 400 bps reduction in the margins.

If at all that scenario were to play out, which products or segment would drive this down, according to you?

Arun, I I'm afraid it's not as linear as what you say. See, the current margins are a reflection of the product mix in the current quarter.

Now, yes, if I had my wishful thinking that the product mix would be the same, the campaigns would be the same, the cost structures would be the same, I would be exactly what where you are. That's not how life is, no?

We have a campaign-driven mechanism where some products yield better margins, some product yields slightly lesser margin. What I'm saying here is that on an annualized basis, we should look at Navin to hit roughly 30 30 30% as EBITDA margins, plus-minus, give or take, whatever percentage points, yeah.

We should be nearer that number on an annualized basis, yeah, and in the longer term, but not sort of, quarterly run rates, etc. That's all I'm saying, you know.

No, I understood, Anish bhai. Perhaps I put it differently.

Which segment you think is at the risk of seeing margin reduction or which products where you see, probably we are seeing the best of the pricing and probably we should be watching out for? That's where I'm coming from.

I don't think that's the right way to look at it, now, because see, we've got three diversified businesses, three businesses with different market dynamics playing into it. Within those businesses, different campaigns yield different margins, yeah.

Are we kind of going to say that one margin goes up or down? This a product mix play, man.

That will continue to be unfortunately the reality. That's all I can frankly say, Arun.

Okay. Understood.

My second question is on AHF... Pardon me to interrupt, Mr.

Arun.

Sure, ma'am.

Sorry, just while we are doing that, I think it was Abhijit who had asked the question on R-32 realizations. I just stand corrected.

Our export realizations are better than the domestic ones, yeah. I'll just put that on the table.

Hi. Thanks for the opportunity.

I've only got one question. Sir, Navin has built a solid track record in high-value fluorochemicals over the decades and then also in CRAMS or CDMO.

In your view, what separates the specialty chemical companies that kind of consistently grow and maintain leadership from those that remain subscale or lose relevance? In other words, if a well-capitalized, competent new entrant attempts to build a ₹1,000 crores specialty-stroke-CDMO business over time, where might they struggle the most and why?

Thank you.

I think we could run a class on this, but that's not the intent of the call. We are focused on ourselves, to be honest, and we are focused on growing in a disciplined manner.

Frankly, we've put in a lot of effort over the last year and a half, two years to get this model right and get it to a level where we can plug and play it so that eventually the growth opportunities can be secured, yeah. Maybe we can, Sajal, leave that for a separate conversation in a separate forum, maybe.

Sure. I'll request one then.

Thank you so much. Thank you.

Sir, thanks for the opportunity. Just one quick question.

Sir, with respect to this EU deal where India and EU has entered into an FTA, is there any raw material which we are currently importing from EU where the duties are probably higher and with this deal eventually could help us in bringing down our raw material cost, A? Because when I see our annual report, I think last year we imported close to around ₹350 crores of imports.

That is A. B, with this deal, have we become more opportunity in terms of getting more business from those geographies where the recent appreciation of Chinese currency and this removal of trade tariffs can enable us to better strengthen our position into those markets?

Your views here, sir. Thank you.

In terms of RM imports from US or EU, very limited, if at all. EU we possibly do something from Turkey, but nothing beyond that, right?

It's not that. In regard to your second question on whether these trade deals are positive and offer an opportunity, I think they definitely do.

There is an absolute leverage that it provides us in terms of making us relatively competitive versus our peers in the region. There is no doubt about that.

I think beyond just the pricing side, one should look at these trade deals to effectively ease doing of business between geographies. I think that's the bigger value in the long term.

Correct. Sir, one more thing, is it possible to share, last year we did something around 2350, ₹2,350 crores of sales, and in nine months also the amount was equivalent to that.

Have our exports to the EU gone up in between these years, like FY25 and nine months of FY26? Can you share your views here?

I think you will definitely find exports going up, because if you're growing at the rate that we are, every geography will supply more, and also we will expand into newer geographies. As in this industry it's an infrastructure-led growth.

Every time we announce a capex, we indicate the par. You guys know the customers, it's pretty easy to figure out where the material is going and how it's going.

Definitely there would be increase, because we've added Nectar plant, as we were talking earlier on the call, and a lot of those supplies get into EU. You will definitely find those scenarios changing, yeah.

Got it, sir. Thank you so much.

Thanks.

Hi. Good evening, sir, and thanks a lot for the opportunity and congrats on a great set of numbers.

Just one question on CDMO. I think the MSA that you have signed with the first EU major, the final product of which continues to access newer geographies with approvals in countries like China news as recent as a week ago.

Now, should that, sir, warrant for our market share to increase over a midterm time frame, or the projections made for the final product are something that already are baked in to what we expect as cGMP4 ramps up? One smaller adjacent question to that: you have also spoken of another EU major where possibly future shipments can also ramp up and help us get closer to the $100 million mark in CDMO.

Any developments that you would like to give us qualitatively to understand this better, the path of CDMO growth in the future? Thank you.

Sure, Archit. I think CDMO is seeing some significant and good tailwinds, yeah.

As you talked about the MSA with the European major, where the molecule is continuously seeing product extensions and expansions, you will see that we will be in a position to fully utilize our capacity in the coming year itself, which is a dedicated plant for that. Also as we've mentioned in our commentary in the slides, with CDMO, I think now we have a solid balance of early- and late-stage stroke commercial molecules.

If I remember correctly, it's largely 50-50 split, which is a great place to be in, because every late and commercial stage molecule that we are working on has the potential to quickly convert into revenues depending on readouts, etc. I think with the balanced portfolio that we have and the growth in the underlying European MSA, we are inching closer and closer to that aspirational number.

Sure, sir. Got it.

Just the second part of my question about the readout, I think you briefly touched upon that. Would there be anything more that you would like to know about it, given where are we headed to?

Is there a solid expectation coming on that account as well, which will probably be another feather in our cap, second CDMO contract? All ears on that, sir.

Again, like I said, the balance molecules that we are talking about, late and commercial, including the EU major you're talking about, there is more than one molecule that we are expecting a readout coming in the year. Therefore, is a good potential to access that growth opportunity.

There's no doubt about that.

Got it, sir. All the best for that and the best for the coming quarters.

Thank you.

Thank you.