Good evening, everyone, and welcome to Q3 and 9 months FY26 earnings conference call of Himadri Speciality Chemical Limited. Today on the call, we have with us Mr.

Anurag Choudhary, CMD and CEO; Mr. Somesh Satnalika, EVP, Tires and Strategy; and Mr.

Kamlesh Agrawal, CFO. Before we proceed with the call, I would like to give you a disclaimer that this conference call may contain a forward-looking statement about the company which are based on the beliefs, opinions, and expectations as of today.

Actual result may differ materially. The statement are not the guarantees of the future performance and involves the risk and uncertainties that are difficult to predict.

A detailed safe harbor statement is being given on page two of the investor presentation of the company which have been uploaded on the stock exchange and the company website. With this, I now hand over the call to Mr.

Anurag Choudhary. Over to you, sir.

Thank you, Chirag. Good evening, ladies and gentlemen.

Thank you for joining us today to discuss the performance of Himadri Speciality Chemical Limited for the third quarter and 9 months ended 31st December 2025. We sincerely appreciate your continued interest, trust, and engagement with the company.

I am pleased to share that we have started trial production of specialty carbon black expansion project, a landmark achievement for Himadri. With this, Himadri has the world's largest single-side specialty carbon black plant with a total capacity of 130,000 metric ton per annum.

This milestone underscores our continued focus on high value-added solutions and marks the beginning of next phase of growth in our specialty carbon black journey. In coal tar pitch, we achieved a key milestone with the commissioning of Mangalore port terminal, successfully delivering 3,600 metric ton of liquid coal tar pitch to the Middle East.

This establishes a second export corridor along with Haldia, significantly enhancing our logistics flexibility and opening up access to new global markets. We are well-positioned to cater to rising international demand while offering best-in-class quality at global most competitive prices.

Supported by operational excellence, continued improvements in yield, and waste heat recovery systems, we continue to drive sustainable profitability. Our commitment to sustainability was once again reaffirmed as EcoVadis awarded Himadri the platinum medal for second consecutive year, placing us amongst the top 1% of over 150,000 companies globally assessed on ESG parameters.

This recognition reflects our deeply embedded approach to sustainability, anchored in strong governance, climate-conscious operations, ethical business practices, and responsible supply chain management. At the heart of Himadri's performance are our people.

We are honored to be certified as a Great Place to Work, a testament to the strong and inclusive culture we have consciously nurtured over the years. The year to date has been marked by steady execution and meaningful progress.

We have remained firmly anchored on operational discipline, deepening customer relationships, and strengthening institutional capabilities to support long-term growth. This consistency of approach continues to deliver results, reflected in our robust financial performance with PAT growing 41% year-on-year, with 9 months FY26 PAT exceeding PAT of FY25.

As we look ahead, we do so with the confidence what we set out to achieve in FY26 has realized, and the present preparation for future projects are already progressing well, laying a strong foundation for sustained and profitable growth. We have also been actively investing in our rubber, plastic, and coating laboratories to enhance product performance across critical parameters such as ease of dispersion, reduced filter press values, and improved conductivity at lower loading.

With the commencement of trial production at specialty carbon black expansion project, we have significantly strengthened our ability to serve the growing demand of customized and application-specific carbon black grades. This places us in a strong position to address the global requirement for performance-enhancing specialty carbon black used in premium and high-value applications across plastics, inks, high-performance coatings, batteries, paints, wires and cables, fibers, rubber, EV tires, and several other niche applications.

In parallel, our recently launched branded naphthalene ball, brand Durofresh, has received an encouraging response in the retail market, adding further depth to our diversified portfolio. The first-of-its-kind commercial anthraquinone and carbazole facility in India remains firmly on schedule for Q2 FY27.

This project reinforces our commitment to innovation and import substitution while aligning closely with Government of India's vision of Aatmanirbhar Bharat aimed to strengthening domestic manufacturing capabilities. Over the past 2 years, volume and line were largely constrained by operating at peak capacity utilization and dynamic raw material prices.

With the start of trial production at specialty black expansion project, along with debottlenecking of our coal tar pitch distillation capacity, we now have the necessary headroom to reignite growth in coming quarters and further consolidate our leadership position. Birla Tyre continues to strengthen its footprint across India and key international market, including Asia, the Middle East, and Africa, supported by a robust and expanding distribution network of 36 distributors and over 640 dealers.

Its diversified portfolio now comprises more than 80 products across flagship range, such as Kala Patthar, Load Max, Ultra Grip, Farm Haul, Platina, Shaan+, XLP, LG, Road Miller, ZETA, BT 339, Ultra Tech, and many others, engineered to deliver superior grip, mileage, durability across varied customer applications. The team at Birla Tyre continues to scale in both capability and size, with modernization initiative progressing well to enhance offering across off-the-highway tires, commercial vehicles, agriculture, industrial segments.

For passenger car radial unit, design specifically for EV and SUV, installation of plant and machinery is being planned. This will position Birla Tyre to participate meaningfully in passenger mobility segment while complementing Himadri's broader strategic ambitions.

The most transformational chapter in Himadri's journey is our entry into battery materials. Lithium-ion batteries represent a structural shift in global energy consumption, and anode and cathode materials together constitute for 65% of the total battery cell cost, making materials innovation centered to long-term value creation.

On the cathode side, we are focused on lithium iron phosphate, a chemistry gaining rapid global acceptance due to its safety, longevity, and cost efficiency. Our long-term vision is to build 200,000 metric ton of LFP cathode active material capacity in phases, catering to approximately 100 gigawatt-hour of battery energy demand.

The first commercial phase of 40,000 metric ton per annum remains on track for Q3 FY27, positioning Himadri at the heart of e-mobility ecosystem as the first commercial LFP cathode active material plant globally outside China, serving both domestic and international markets across mobility and energy storage applications. On the anode side, our strong legacy and deep expertise in carbon chemistry provide a clear strategic advantage.

We are one of the only company to have backward integration in terms of raw material availability. Intense research and testing are underway as we progress steadily towards development of comprehensive spectrum of anode solutions, including synthetic, natural, hybrid, and silicon-carbon based technologies, thereby strengthening our capabilities in this high-growth and strategically critical domain.

As Himadri writes the new chapter in the Himadri Reloaded phase, we continue to expand across multiple high-value categories. While specialty carbon black, coal tar pitch, and specialty oil, naphthalene remains at our core, we are actively expanding our product portfolio and making sustained investment in research and development to support future growth.

At Himadri, R&D is not a department, it's embedded in our DNA. It shapes how we think, operate, and deliver value.

Over the years, we have built a global R&D ecosystem, bringing together exceptional talent, including PhDs and subject matter experts from USA, Japan, South Korea, China, South America, Australia, and Europe. This rich techno-cultural diversity fuels innovation, agility, and a forward-looking mindset, enabling us to lead in new technologies and product developments for emerging and sunrise industries.

Our commitment to innovation is further strengthened through strategic investments in Sicona, IBC, and Invinity, which have enhanced our technological depth, accelerated our innovation pipeline. With the strong synergies between our innovation and research team, we are not only collaborating on new developments and emerging technologies, but have also been leveraging shared expertise to adopt best practices and strengthen our processes across our core verticals.

Together, we are developing a sustainable growth engine that is paving the way for a portfolio of innovative products built on cutting-edge technologies. These collaborations have enabled us to establish a strong joint product development map that leverages our collective expertise across cell chemistry, battery science, material technology, and operational excellence.

Our shared focus is on developing solutions grounded in principles of sustainability and circularity for sunrise sector such as high-performance and high-value-added defense application, drones, AI data center, mobility, and many more. Today, R&D at Himadri goes far beyond product development.

It is about advancing technologies, transforming processes, and unlocking new possibilities to keep us ahead in a rapidly evolving global landscape. In parallel, we continue to actively leverage artificial intelligence and digital tools across work streams—procurement, logistics, inventory, material management, quality management, sales and marketing, and manufacturing—to sharpen execution, improve predictability, and build a more agile, data-driven operating model for the future.

This year marks a defining chapter in Himadri's journey, characterized by progress, resilience, and purposeful execution. The path we envisioned is unfolding with clarity, and we continue to build on that momentum with confidence.

As we look ahead, the horizon is bright, filled with opportunities that will take us to greater heights and unlock new possibilities. Together, we are shaping a future of sustained growth and innovation.

Before concluding, I would like to express my sincere gratitude to our colleagues, partners, and investors for their continued trust and support. With this, I hand over to our CFO, Mr.

Kamlesh Agrawal, who will take you through the financial performance in detail. Thank you.

Kamlesh, please.

Thank you, Anurag ji, and good evening, everyone. I trust you have had the opportunity to review our financial results, the latest investor presentation, and press release, all of which have been made available on the stock exchanges and on our company's website.

Let me now take you through the financials for the quarter and 9 months ended 31st December 2025. On a standalone basis, we are pleased to share that we have already surpassed our full-year FY25 PAT within the first 9 months of FY26.

This outcome clearly reflects the effectiveness of our strategic focus on value-added products, which continues to be the key driver of profitability and margin expansion. From a quarterly perspective, in Q3 FY26, standalone revenue stood at ₹1,133 crores.

EBITDA was ₹249 crores, registering a 12% year-on-year growth, while profit after tax came in at ₹195 crores, reflecting a strong growth of 37% year-on-year increase. These results underscore the consistency of our execution despite a dynamic operating environment.

Looking at the cumulative performance for 9 months FY26 on a standalone basis, revenue stood at approximately ₹3,304 crores. EBITDA increased to ₹726 crores, representing a 19% year-on-year growth compared to ₹611 crores in 9 months FY25.

Profit after tax stood at ₹564 crores, marking a 41% year-on-year growth over approximately ₹400 crores in the corresponding period last year. Now turning to our consolidated performance in Q3 FY26, revenue stood at ₹1,184 crores with EBITDA at ₹253 crores compared to ₹225 crores in Q3 FY25, reflecting a 12% growth.

Profit after tax came in at ₹192 crores, registering a growth of 36% against ₹141 crores in Q3 FY25. For 9 months FY26 on a consolidated basis, revenue stood at approximately ₹3,373 crores.

EBITDA was ₹726 crores, reflecting a growth of around 18%, while profit after tax stood at ₹548 crores, a 37% increase over 9 months FY25. This performance highlights the strength and resilience across all the business segments.

From an operational perspective, our sales volume for 9 months FY26 stood at 428,572 metric ton as compared to

415,679 metric ton in the previous year, reflecting a growth of 3%. EBITDA per metric ton stood at 16,934 in 9 months FY26 compared to 14,707 in 9 months FY25, representing a 15% improvement driven by product mix that remains increasingly focused on high value-added offerings.

I am also pleased to share that during the quarter, the promoters have further strengthened their stake in Himadri through conversion of 1 crore warrant into equity. The warrant are acquired at a total price of 316 per warrant.

Promoter shareholding now stands at 52.5%. This development underscores the promoter's continued confidence and long-term commitment to Himadri's growth journey.

Strengthening promoter's stake not only enhances the company's capital structure, but also demonstrates the immense faith in our business as we embark on the next phase of expansion and value creation for all our stakeholders. Overall, these results reinforces our confidence that Himadri is well-positioned to continue its upward journey and trajectory supported by a strong financial foundation, disciplined execution, and a clear strategic direction.

Now, Chirag, we can open the session for question-and-answer session.

Sir, congratulations on the great set of numbers. Sir, we have mentioned the road map to grow and accelerate towards 2028.

How do we vision that? How do we scale it up?

We start our operations on the phase one cathode in quarter three. We have also Birla Tyres gradually ramping up.

How do we see the coming years and how we can shape the development for the company going ahead?

Thank you, Divyansh. If you look at the profitability achievements, for FY24, we achieved a PAT of ₹411 crores.

In FY25, we gave a guidance that in next 3 years, that is by FY27, we'll double the PAT, effectively ₹800 crore plus. If you look in FY26, we are already nearing to the target.

Now FY25, we had a PAT of around ₹558 crores. With all these projects coming in, with new capacities coming in, value-addeds products coming in, we are confident that the profit will again double from FY25 to FY28, in 2 years from now.

Sir, what you are saying is that the PAT level of FY25, when we'll see the PAT level of FY27, it will double? Am I right?

FY28. FY28.

Okay. FY28.

It will double. It will ₹1,100 crore.

We are giving the same guidance what we gave one year back. We're giving the same guidance for which we gave one year back when we are articulated that PAT will double in 3 years.

Same thing we are saying again now, one year fast forward, the PAT will double again in 3 years from FY25 to FY28. Only one disclaimer is that last time when we told it will be done, it was done in 2 years instead of 3 years.

That's great, sir. Sir, also, I wanted to get a lookout on how the cathode active material operations that are coming.

I think this is the first one in India to come up. Also, there I saw some headlines that you are in talks with some large players.

If you can give some more information on that? No, definitely.

In terms of cathode, our pilot plant, demo plant, is under construction and expected to be commenced in the fourth quarter. Post that, we will be sending sample B to our customers.

There are a series of samples which need to be approved by the customers. Next phase of sampling will start.

Sir, can you name some customers?

Hello? Hello, am I audible?

You are audible. Please.

Sir, can you name some customers?

No, we cannot name some customers. It's the global customers plus India customers.

We have NDA, we cannot disclose the names on public forum. Regarding the capacities for lithium iron phosphate, we expect FY29 to be the full year of operation for lithium iron phosphate.

That's great, sir. That's all from mine, and all the best for the coming quarter.

Thank you.

Hello, sir. Congratulations on a great set of numbers.

Sir, I just wanted to begin with three small questions on our quarterly result, and then I'll join the queue. My first question is, sir, with regards to our EBITDA per ton, sir.

In this particular quarter, when I did my calculations for EBITDA per ton, I have noticed that we've seen a decline on a sequential basis despite our revenues, etc., which has seen a growth. I wanted to understand the reason behind it.

Second, I wanted to understand the sporadic increase in the other income. Other income has almost grown by 290% on a year-on-year basis.

The last question would be with respect to what are the tire sales that we've made for this particular quarter? That's all.

Regarding EBITDA per ton, if you look at it, it is more or less in line because depending on quarter to quarter, the number changes, but it's very minimum. That is the level where it is more or less stabilized now.

For other income, we have made investment in IBC in which we have got the investment at a comparatively much lower cost. Valuation has been done as per accounting standards because of which there has been some increase in the other income.

Other than the investments that we have made, if you look at we have borrowed significant amount of money, at the same time we have invested in banks, so that interest is also there.

Sir. Last was regarding tire sales for this particular quarter, where do we stand currently and how much do we expect to end the year in terms of our Birla Tyres revenue wise?

Revenue wise the current quarter we have already achieved 60+ crore of revenue. Looking forward, we expect the momentum to strengthen further, and

from the next year you will see capacity ramp-up taking place in Birla Tyres.

All right, sir. Thank you so much.

I'll join the queue. Thank you.

Hello, good evening, team. My question was regarding the cathode capacity that you're targeting.

Since we're targeting to cater about 100 gigawatt-hour of cathode, is it that we expect a huge market share in India and globally, or is it that we're trying to capture a huge size of a small market share?

Your question is not clear. Can you repeat it, please?

Okay. I was asking about the cathode capacity which we're targeting, which is about 100 gigawatt-hour gigawatt per hour which you're targeting, right?

Is it that we are expecting a huge market or is it that we're trying to capture a huge market share? I wanted to understand which one is

it? See, it's not that we are going to capture huge market share.

FY30, the global lithium-ion cell capacity will be 8,000+. By that time, we are only targeting 100, which is absolutely nothing in terms of global demand.

Actually, first time Himadri is going to be in a product where demand will not be a constraint. Growth will depend upon our ability to expand.

This will be a unique positioning for the company.

Got it. How do you place ourselves in terms of cost competitiveness within India or else compared to China as well?

We will be very much cost competitive to any geography in the world.

Okay. Just one last question was that how are you planning on your sourcing of raw materials for the cathode project?

How much? How are you planning on sourcing your raw materials for the cathode

project? We'll be sourcing from the global market, including Latin America, Australia, China.

Wherever we get the best, we'll get the raw materials from.

Thank you. That's all from my side.

All the best.

Yeah. Thank you for the opportunity.

My first question is on the post-recent warrant conversion, how does management view equity dilution going forward? Would future growth be primarily debt funded or accrual driven?

The entire growth which is going to come for next 3, 4 years are from internal accrual. There's not going to be no dilution as far as Himadri is concerned.

If you look at shareholding also in last 3 years, we have increased our stake by 10%. Right.

Won't see any dilution coming forward, and there will be no debt which will be taken. It will be internal accruals only.

Great, great. Okay.

My second question is, what are the key execution risk during the ramp-up phase at Mahistikry? How is management ensuring that quality consistent is maintained while scaling volumes?

See,

we have a very strong SOP for the projects and for operations. Which ensures that under no circumstances there is any impact or contamination from the ongoing projects.

It ensures there's no problem as far as quality or consistency is concerned.

Okay. Got it.

Sir, one last question: historically, how long has it taken for Himadri to ramp up specialty capacity to optimal utilization? Should we expect a similar or shorter curve for the new facility as well?

Yes, definitely. To ramp up to the capacity, it will take around 3 to 6 months.

Okay. Got it, sir.

Thank you.

Hello, sir. My question to you is with energy being a significant input, what proportion of power is sourced internally or through long-term agreements?

How does this influence margins?

We source 100% of our power through our waste heat gas capturing plant, where we convert gas into power. Himadri is using clean power for all its operations.

Sir, got it. Also, at what stage does management gain confidence to commit capex in energy materials?

It means post customer qualifications or post binding offtake agreements?

We don't wait for binding offtake agreement. We have full confidence in our quality and our customer relationship.

With the qualification, we start setting up the capacity. Qualification is a process.

At the same time, we are setting up the capacity. Because until you have the commercial plant, you will never get approvals.

Sir. Also, my last question will be in specialty carbon black, how much of the recent pricing has been formula-linked versus negotiated contracts?

It depends on customers to customer. I cannot disclose the pricing policy.

I can tell you specialty carbon black has a much better margin than commodity black, and Himadri specializes in this segment.

Sir. Got your point.

Thank you.

Thank you.

Am I audible? Yes, you are.

Yes, sir, you are. Yes.

We have seen some fall in EBITDA per ton on quarter-on-quarter basis. Is this to do with some change in product mix because we have also expanded the coal tar distillation capacity by 100,000 metric tons.

Is that the reason there is some fall in EBITDA per kg?

Virat, if you see, it was 17,900, it had come to 16,000 something. There has not been much difference.

You will find this kind of variation on a positive or negative side on a quarter-on-quarter basis. This doesn't have any significant importance or significance.

Got it. This coal tar distillation facility that we have expanded by 100,000 metric tons, what is the utilization for that in this quarter?

No, this we have just started. Over the next two to three quarters, you will see the ramp-up happening.

It will take Q1 FY27, you will see the ramp-up happening.

Okay. What about the specialty black capacity that we were to expand from 60,000 to...

From the next financial year, you will see the ramp-up happening from the next financial year. Q4, there will be some ramp-up happening, but you will see the full results coming in the next financial year.

Got it. From the Birla Tyre business, what sort of EBITDA margin are we making on the ₹60 crore revenues for the quarter?

We have a partnership with Dalmia Refractories Bharat Limited in Birla Tyres. In Himadri Clean Energy, we are buying from Dalmia Refractories and selling the Birla Tyres.

We don't have any positive or negative impact as such as of now. Looking forward, the things will change.

Oh,

okay. Got it.

That's it from my side.

Hi, sir. Thank you for the opportunity.

I just wanted to understand that with the fluctuations that are expected in lithium prices going forward, how do we see that affect our margins? Will we be absorbing those, or will we see that as a pass-through for us?

Thank you. See, the kind of fluctuation which is there in lithium, it can never be absorbed.

All the customers will be having a pass-through model, in which the pricing up and down will be transferred to the customers. Same business model we follow with our existing products also, like for coal tar pitch or carbon black.

Same we will follow for lithium also.

Okay. Sir, that would be a full pass-through, right?

Yes, it's a full pass-through.

Okay. Sir, my next question would be on our cathode facility, how would we see utilizations going forward for the next 1 or 2 years?

Next 1 or 2 years, there will not be significant utilization. Some utilization will be there in FY28, but yes, big utilization will be coming in FY29.

Okay. Sir, in '29, what kind of asset turn can [unclear]?

If you ask me, FY29, I see full capacity utilization.

Okay. Sir, what kind of asset turn would we be looking at full capacity utilization?

2+. All right.

2+. Okay.

Thank you, sir. That's it.

my question was with regarding our traditional or the coal tar pitch business. Just wanted to understand from an industry perspective or from a business perspective, how do you expect them going forward?

Is it becoming structurally declining, or do you still see it like a very significant growth driver for your cash flow generation? See,

that model has really matured over the last 35 years, and we expect the business to have sustainable profitability. Because we have done a lot of work in terms of operational efficiencies, waste heat recovery system, improvement of yield, and these are giving us long-term sustainable profitability.

Sir. My last question would be regarding to our recent specialty carbon black expansion that we've done.

Just wanted to understand on a year-on-year basis, what is the trend for this capacity utilization? On a year-on-year basis, how do we expect this capacity utilization to increase if you could give a 1, 2, 3-year break-up if it's possible?

For the next year, you can look at around 85% capacity utilization for specialty carbon black. Post that we are on almost 100 95-100% types?

Yes, yes, yes. All right, sir.

That'll be all. Thank you so much.

Thank you. Thank you.

Thank you so much for the opportunity, and also congratulations on the New Mangalore Port. I wanted to know that is this new port going to focus on Middle East itself, or can we expect more geography diversions such as Africa?

This will be mainly focused on Middle East only because of the proximity to Middle East. For other geographies, we already have Haldia Port to cater to that.

Understood. The research and development investments remain elevated.

How should investors assess returns on this spend? Are there defined KPIs or commercialization timelines that are being targeted?

See,

R&D has been the core of the company for years now. We are one of the companies in India who spend a lot of money on research and development and innovation.

This has only brought us to a place where we are in terms of not only product, process, and technology, but it goes much beyond that. For Himadri, we are working on many new products.

In next 1 year to 2 years, we will see a lot of new announcements for commercialization coming in for high value-added products. In our case, R&D is not only a academic thing with no KPI.

In our R&D, we have defined the performance metrics in a very articulated manner. Which means within a given time frame, you have to achieve a particular result.

It cannot be ever-ending project. That is the biggest strength of the company.

All our technologies in Himadri has been developed in-house. That's the beauty of the company.

We have not bought any technology from any technology supplier for any of our products. Looking forward also, you will come across a lot of new products coming in in next 2 to 3 years.

Understood. Also, can you give an update on the new tire launch on Birla Tyre segment?

Are we diversifying from the passenger car radial? Also, what is your long-term plan for this?

See,

Birla Tyre currently is not into passenger car tires. Birla Tyre basically was into TBB segment, bias segment, and a little bit in agriculture, and has some position in mining tires.

What we are doing, we are strengthening and expanding our OTR, OHT segment. Idea is that over the next 3 to 5 years, we will have significance presence from Birla Tyres in these two segments.

That is how we are revamping, modernizing, making automation, getting new machineries, getting the right people, all the resources in place in Birla Tyres. In addition to that, in future, we will be launching passenger car tires, which will be focused on SUV and EV.

Understood. That's it from my side.

Thank you so much.

Thank you.

Hello. Sir, as you've shared the details on the demand of cathode...

Actually, my line got disconnected. I was not able to listen to your question.

Can you please repeat it?

Sure, sir. My question was on the side of cathode, sir.

Sir, you've shared the details on the demand of globally and domestically. What is the demand scenario on the anode side, sir?

On the global, you've shared it. What is the expectation domestically for anodes and materials?

Your question is on cathode or anode?

Sir, what is the demand expectation for anode domestically, sir?

Anode, not cathode.

Yes, sir, anode.

See, Himadri is positioning itself in a new age industry. For the first time, we are going to be in a business where demand will not be a constraint.

See, till now, we have been in an industry where demand has always been the deciding factor for our expansion, and that's a limiting factor. When it comes to lithium-ion cell industry, the growth is exponential.

In the next 3 years, there has to be significant growth in terms of cell manufacturing capacity. First time in our entire career that we are going to address a market where demand will not be a constraint for either anode or cathode.

Anode consumption will be higher than cathode only because LFP I'm talking particularly. In terms of absolute volume, LFP cathode is two times of anode.

Anode is used in all the chemistries, unlike cathode. Cathode has different chemistries like CLA for electronics, NMC is part of the chemistry, then LFP is there.

Each chemistry has their own market share. LFP market share is increasing every day.

Cathode remains constant throughout this chemistry, whichever chemistry is being used. Anode is constant.

Anode demand is very strong in India and globally.

Sir. Sir, my second question was on sir, coal tar pitch, sir.

You've done your first shipment to Middle East. We can see the demand from Middle East side to be strong.

What is the scenario in the other parts of the world like Europe, US, sir? As European region has faced energy cost crisis and because that margin for the peer companies suffered.

How you are able to benefit from that [unclear]? See,

we are not at all focused on European market. We have clean focus on Middle East market because after China, Middle East is the single largest manufacturing base for aluminum industry.

Himadri is well-positioned to cater to meet their requirement. Our focus is clear.

We don't want to go to Europe as far as coal tar pitch is concerned.

Got it, sir. Thank you, sir.

Hello? Yes,

Disha, please. Yes, you are.

Yeah. Sir, for this battery expansion that we're planning, what sort of EBITDA margins do we see here?

How does that differ from our regular business? See, for looking at Himadri, I'll give you a very basic thumb rule what we look at in our company at board level.

What is the return on capital employed?

If you look at my existing business, the return on capital employed is 34%. Capital allocation is very, very critical and important metrics for us in Himadri.

We do not allocate capital to any business where ROCE is less than 30%. That is the main objective.

Basis that principle, all our investment is guided.

Okay. All right.

For this phase one, I think is coming by Q3 FY27, right?

Yes, yes, yes. Don't expect any ramp-up or capacity utilization in next 1 and 1/2 years.

Okay. Then, I think from beginning FY29?

FY29, yeah, yeah. That's what I gave a clear guidance.

FY29 will be the year for LFP.

What is the capex that we are spending for phase one?

₹1,125 crores.

₹1,125 crore. Asset turn of around I think you said 2 more than 2x, right?

2+. 2+, 2x, yes.

Okay. That's it from my side.

Thank you.

Thank you.

Hello, am I audible? Yes,

yes, yes. Yes, sir, you are.

Yeah. Good evening, sir.

My question is regarding anode materials. If you can give us the numbers for the capex that we are going to undergo for this anode material development, what is the capacity, and what is the premium which we'll be charging over for products such as performance driven anode materials?

If you can throw some light over that whole anode project? I was not able to listen to your question.

My line got disconnected. Can you please repeat it?

Okay. My question was regarding the anode materials project.

If you can give us some numbers regarding the capex for that anode material development, the capacity which would come live, as well as the premium which we would be charging, a rough estimate, for anode materials over the normal synthetic composite graphite?

See, first of all, we have not announced any capex as of today on anode material. We are on the process of finalization.

Once we finalize, we'll come up with the capacity number and the capex numbers.

Okay. Understood.

Roughly, sir? The premiumization, how much percentage would be a ballpark number for carbon silicon composites which we would be catering to performance driven applications over the cost driven applications?

There's no point discussing the premium, as I told you, because knowing the premium, you'll not be able to calculate anything unless you know the capacity and [unclear]. You can Google it, and you will get selling price of silicon carbon compared to synthetic carbon anode material.

Okay. Okay.

Understood, sir. That'll be all from my side.

Thank you. Thank you.

Thank you.

Hi, thank you for the opportunity. I wanted to understand how does Himadri's cost structure and technology road map compare with established Chinese players in LFP and anode, and where does the management see its competitive moat?

See, in China, if you look at LFP chemistry, it has really evolved over the last 5 years. The work has been going over the last 15, 18 years, but the ramp-up of volume has taken really place in last 4 years.

The advantage of Himadri is that we have been in this industry for last 17 to 18 years. If you go back and look at our annual reports, we have been talking about lithium-ion batteries from the day when no one was even knowing about lithium-ion batteries, not much people were knowing.

That time, we had a vision that lithium-ion battery is something which is going to be a game changer for future. There were many chemistries.

The best thing is that there are many chemistries, but at that point of time, 18 years back, to point out that yes, this chemistry is going to be the game changer is a big thing. Today, everyone can say, but 18 years back to tell this thing was a big thing.

That is what we did, and I have been personally engaged and very closely monitoring the development of raw material component of this industry over the last many, many years. I have very strong relationship and very strong team which is working on it.

We are absolutely confident we'll be very strong in terms of our quality of the product, specific cases to meet the requirement of the customers, and very much competitive. Plus we have the India advantage compared to our peers in the other geography.

Right, sir. Got it.

That was helpful. Also, could you share insights on demand trends across key export geographies such as Europe, US, Asia, particularly in the context of global industrial slowdown and inventory normalization?

See, by the time our product comes, all the inventory normalization, in fact, in LFP has already happened. If you see the correction of LFP lithium-ion prices has corrected by 75% over the last 2 and 1/2 years, 1 and 1/2, 3 years, by 75%.

All inventory write-off, correction, all those things has already happened. There's nothing left to be corrected.

Now there will be fair competition which is going to be there. Global capacity of lithium-ion battery cells is going to be around 7,500 to 8,000 gigawatt-hour from current 2,500.

This gives a huge possibility for huge ramping up of capacities and huge demand for cathode and anode material. Company who will be producing the best in quality, meeting all the global standards will outline others.

That is coming out very clear because the single factor for meeting the requirement of this huge growth which is coming will be the raw material component. Everyone is cell capacity, but raw material is limited.

That will be a critical factor which will be the game changer. Himadri has through what makes Himadri different and in terms of lithium-ion capabilities also.

If you look at our R&D set up, we have joined hand with Sicona having facility in Australia. Our team is working hand in hand with the Sicona team for new developments.

We have taken a stake in International Battery Company headquartered in California having a state-of-the-art AI-based research and development center in California and a manufacturing facility in South Korea for cell manufacturing. They are working on Himadri components for making cells.

They have already launched Prabal 1000, a prismatic-shaped cell using NMC and anode material. Now they are going to launch Prabal 2000, which is using Himadri anode material and Himadri lithium iron phosphate.

This gives Himadri a unique positioning compared to any of the peers globally, where we don't have to only the laboratory capabilities. We have the full-fledged cell manufacturing facility available in South Korea where you can practically see the cell being manufactured.

It's no longer a laboratory-type thing we are talking. In addition to that, Prabal 3000 will be launched, which will be using silicon carbon made by Himadri.

This gives Himadri a unique positioning and the first mover's advantage in this industry, being in this industry for so many years. It's not that today everyone is talking about lithium-ion battery, we are started lithium-ion batteries.

Got it, sir. Understood.

Thank you very much, and all the best.

Thank you.

Thank you, Chirag. Thank you, everyone, for joining the Q3 FY26 9-month conference call of Himadri Speciality Chemical Limited.

We appreciate your time, continued interest, and engagement, and hope we have addressed your queries satisfactorily. At Himadri, our focus remains firmly on creating sustainable, long-term value for all our stakeholders.

We are deeply committed to our transformational journey driven by high-quality products, disciplined execution, and an unwavering emphasis on innovation, environmental responsibility, and health and safety. We are confident that the strategic direction outlined today will continue to support resilient growth and deliver enduring value.

Before we conclude, I would like to once again thank our team members, partners, investors for their trust and continued support. Should you require any further information, please feel free to reach out to our investor relationship adviser, MUFG, InTime IR.

Thank you. Have a good day.