Thank you, Nishiha. Good evening, everyone, and welcome to Q1 FY '27 earning 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, Tie-up and Strategy; and Mr. Kamlesh Agarwal, CFO.

Before we proceed with the call, I would like to give you a disclaimer that this conference call may contain forward-looking statements about the company, which are based on belief, opinion, and expectation as of today. Actual results may differ materially.

The statements are not the guarantee of the future performance and involves the risk and uncertainty that are difficult to predict. A detailed safe harbor statement is being given on page 2 of the investor presentation of the company, which have been uploaded on stock exchange and on the company website.

With this, I now hand over the call to Mr. Anurag Choudhary.

Over to you, sir.

Thank you, Chirag. Good evening, everyone, and a very warm welcome to the Q1 FY '27 earnings conference call of Himadri Speciality Chemical Limited.

Thank you for joining us today. We look forward to taking you through our performance for the quarter ended 30th June, 2026, the progress across our strategic priorities, and how we see the road ahead.

Those who have followed our journey over the past few years will recognize that Himadri today has transformed into a different company from where it started. We began as a coal tar derivative company, and today, we operate as a global advanced materials and application-driven solution organization.

We are positioned at the intersection of materials science, energy transition, and high-performance applications. At the core of this transformation lies a simple belief: the companies that will lead the future are those that can continuously relook themselves, execute, reinvest, scale, and repeat this cycle with discipline.

This philosophy guides everything that we do. Over three decades, we have laid foundation, and today, we are building a future with a simple platform for the energy transition economy, focusing on capturing a global opportunity backed with innovation-led growth.

Now let me briefly touch upon the financial picture for the quarter. On a consolidated basis, revenue stood at ₹1,432 crores.

EBITDA was at ₹313 crores with a margin of 22%, and profit after tax was ₹228 crores, reflecting a PAT margin of 16%. This performance reflects both strong operational discipline and the continued shift in our product mix towards higher value segments.

Yesterday, we announced two important initiatives that further strengthen our innovation-led growth trajectory. First, we successfully developed indigenous carbon nanotube technology through our relentless in-house innovation and research and development, marking another milestone in our innovation journey.

Backed by a planned capex of approximately 70 crores, our upcoming 200 MTPA CNT manufacturing facility targeted for commissioning in Q4 FY '27 is expected to position Himadri among a select group of few global manufacturers serving this high-growth market. CNT is a next-generation material with applications spanning across lithium-ion batteries, semiconductors, electronics, sensors, polymers, coatings, aerospace, etc.

With demand accelerating across these industries, we believe CNT represents a significant long-term growth opportunity for the company. The second initiative is our entry into super speciality carbon black.

This is a structurally different high-purity segment designed for high performance in highly specialized markets like lithium-ion batteries, engineered plastics, fabrics, fibers, coatings, conductive black, and other niche applications, delivering premium realizations. We are converting 6,000 MTPA of existing capacity with a capex of ₹170 crores.

This is a classic example of our compounding philosophy, leveraging the same integrated feedstock base and new infrastructure to produce significantly high value-added products. This enhances margins, deepens application reach, and strengthens our positioning in global speciality markets.

Let me now turn to what will define the next phase of Himadri's journey: new energy materials. Global lithium-ion battery demand is projected to rise from around 1.6 terawatt-hours in 2025 to nearly 6.8 terawatt-hours by 2035.

We are positioning ourselves for this opportunity with a fully integrated complex. On the anode side, we have commissioned our 200 MTPA anode material facility at Mahishtala in April 2026.

This capability is built entirely on overall decade of in-house research. The facility has been specifically designed with feedstock flexibility, enabling the use of in-house developed special engineered pitch.

This backward integration gives us scalability, cost efficiency, and resilience within a self-reliant value chain. On the cathode side, we are building capabilities in lithium iron phosphate, LFP cathode chemistry, which is fast emerging as the preferred solution for mass market EVs and energy storage.

Our initial 2,000 MTPA capacity is expected to be commissioned in Q3 FY '27, representing the first milestone under phase 1 of our 40,000 MTPA expansion plan, which forms part of our broader long-term vision to scale capacity to 200,000 MTPA. What differentiates us is our integration.

From feedstock to materials, we are working towards building a self-reliant, scalable platform aligned with both global demand and national priorities. We continue to—

Yes?

From where you lost?

Very sorry, the line got disconnected. Coming back to our commentary, on the cathode side, we are building capabilities in lithium iron phosphate, LFP cathode chemistry, which is fast emerging as the preferred solution for mass market EVs and energy storage.

Our initial 2,000 MTPA capacity is expected to be commissioned in Q3 FY '27, representing the first milestone under phase 1 of our 40,000 MTPA expansion plan, which forms part of our broader long-term vision to scale capacity to 200,000 MTPA. What differentiates us is our integration.

From feedstock to materials, we are working towards building a self-reliant, scalable platform aligned with both global demand and national priorities. We continue to strengthen our strategic investments in battery materials ecosystem.

Sicona, in which Himadri is a strategic investor, secured Australian $45 million funding to accelerate its next-generation silicon-carbon anode technology commercialization. Additionally, we have increased our stake in International Battery Company, reaffirming our confidence across battery value chain from materials to validation and deployment.

Now coming to Birla Tyres. Birla Tyres turnaround continues to make steady progress.

Since commencing commercial operation on 29th of May, 2025, the focus has been on rebuilding the business on a strong operational and technological foundation. Alongside recommissioning the plant, significant efforts are underway to modernize manufacturing infrastructure, upgrade equipment, and incorporate state-of-the-art automation across operations, thereby bringing the facility in line with contemporary industry standards and enhancing efficiency, consistency, and product quality.

In parallel, a strategic transformation of the manufacturing footprint is being undertaken by progressively converting the existing truck and bus bias tyre capacity towards off-the-road tyre production in a phased manner that is in line with evolving market demand dynamics. This transition, along with modernization initiative, will be supported by additional capital expenditure and expected to be executed over the next three years, creating a stronger platform for long-term growth and profitability.

As of today, the distribution network spans 49 distributors and over 1,000 dealers. Birla Tyres has been strengthening its portfolio across agriculture, mining, and commercial segments with the launch of SKUs across three new agriculture products lines during the quarter: Agribin, Agri Plus, and Agri Leap T40.

This momentum is supported by a strong product development pipeline. With over 400 new SKUs under development across segments, Birla Tyres' next strategic milestone is the commissioning of passenger car radial facility by FY '28, paving the way for its planned entry into EV and SUV tyre segments.

In speciality carbon black, we continue to build on our technology advantage. With 180,000 metric ton capacity, including 130,000 ton of speciality carbon black capacity, we operate across a product portfolio of more than 70 speciality grades.

Our integration from feedstock to final formulation gives us control over quality, cost, and consistency. Our approach remains: lab first, plant later, ensures that capacity expansion is always backed by validated applications.

Our coal tar pitch business continues to anchor the company. We operate the world's largest single-location, fully integrated carbon complex with 600,000 metric ton of coal tar distillation capacity.

Our domestic market share continues to be over 65%, and the commissioning of liquid coal tar pitch terminal at Haldia and Mangalore has strengthened our ability to serve global markets. Our forward integration into anthraquinone and carbazole with a total capacity of 5,300 metric ton is progressing well, with first commissioning targeted by FY '28.

Initially, phase capacity of 2,600 is set to commission in Q2 FY '27, and balance capacity of 2,700 metric ton is to be added in Q2 FY '28. This facility will be India's first commercial plant for its kind.

Reducing import dependence and unlocking the export-led growth are right move towards Aatmanirbhar Bharat. Let me now briefly explain how we are structuring our existing business.

Our model has been three clear layers. At the core lies our coal tar derivatives: carbon black, naphthalene, and oil of various grades, providing scale and feedstock security.

Secondly, our speciality offering consists of products: speciality carbon black, super speciality carbon black, CNT, niche engineered grades of coal tar pitch, SNF, PCE, speciality chemicals such as anthraquinone and carbazole, which provide us customer stickiness and greater value realization. The third is new energy materials: anode and LFP cathode active material, and silicon-carbon technology, placing us at the very heart of global energy transition value chain.

What this structure allows us is to grow on earnings faster than revenue as we focus on value-accretive businesses. Across all businesses initiatives, our capital allocations remains disciplined.

The capex program is thoughtfully structured to balance scale with efficiency. It is entirely self-funded and deliberately calibrated between brownfield expansions, which enhance asset productivity, and greenfield investments, where we are building new capabilities from the ground up.

This approach allows us to pursue growth while maintaining balance sheet strength and capital discipline. Sustainability remains at deeply embedded in our business model and operational philosophy.

All our plants operate on a zero liquid discharge basis, reflecting our commitment to responsible manufacturing, resource efficiency, and ecological stewardship. These efforts continue to gain recognition.

The reaffirmation of our EcoVadis platinum rating continues to place Himadri among the top 1% of the companies globally assessed by EcoVadis. Increasingly, such credentials are not merely accolades, but important commercial prerequisites in global value chain.

Our commitment to sustainable and responsible growth was further recognized during the quarter through several prestigious awards that belongs to entire Himadri family. Our approach is very clear.

We are diversifying to build resilience, we are shifting our product portfolio mix to drive profitability, and we are executing things while maintaining balance sheet discipline. We are building a strong foundation that allows us to scale transformational growth while preserving financial discipline and transparency.

I am confident that this combination of scale, integration, innovation, discipline will continue to deliver substantial value for all our stakeholders. With that, let me hand over to our Chief Financial Officer, Mr.

Kamlesh Agarwal, who will now take you through the financial performance for the quarter in greater details. Thank you very much.

Thank you, Anurag ji. Good evening, everyone, and thank you for joining us today.

I trust that everyone has had a chance to review our financial results and the latest investor presentation, which have been made available on both the stock exchanges and our company's website. Let me begin with the key financial highlights of the quarter.

Our consolidated revenue for the quarter stood at ₹1,432 crores, as compared to ₹1,118 crores a year ago, an increase of 28%. Our EBITDA stood at ₹313 crores, as compared to ₹235 crores a years ago, with an increase of 33% and margin of 22%.

Our profit after tax has significantly increased to ₹228 crores from ₹179 crores a year ago, a jump of 27% with margin of 16%. Our standalone revenue for the quarter stood at ₹1,274 crores, as compared to ₹1,100 crores a year ago, an increase of 16%.

Our EBITDA stood at ₹301 crores, as compared to ₹234 crores a year ago, with a growth rate of 29% and margin of 24%. Profit after tax has significantly increased to ₹223 crores from ₹183 crores a year ago, a jump of 22% with margin of 18%.

We remain committed to delivering strong value through our strategic priorities and operational rigor. Thank you once again for your continued support and engagement.

Thank you. Yes, now you can open the floor for the question-answer session.

Thanks, Anurag ji. Good afternoon, Kamlesh ji.

Thank you.

Good afternoon. Thank you.

I got couple of questions. First, numerical question, let me finish that.

On the other segment, the EBIT has fallen from ₹25 crore last quarter to around ₹1 crore this quarter. What has changed, because revenue number hasn't changed much.

Why there is such a sharp swing in the EBIT margin for the other segment?

Other segment last time consists of mining profit, which this quarter didn't took place. That was the reason of fall.

What explains less change in revenue in that? What is compensated?

This quarter, we did not operated the mines. We're waiting for some licensing to happen.

Post that, the mining operation will start. That was the reason.

It is not showing up in revenue. That means something else has picked up very sharply.

The revenue, because the Birla Tyre revenues has gone up. Last quarter, if you see, the Birla quarter revenue were significantly low.

With the ramping up of capacity in Birla Tyre, the revenue is going up. That's the reason you don't find change in revenue, but you find change in the profitability.

Clear, clear. Now coming to the new capexes that we have announced, which is the carbon nanotube and the super speciality carbon black.

In nanotube, what is an approach? This will address India market, global market?

What is the key application? You did say energy and semiconductor,

but

whom are we competing here, and how have we benchmarked the product now that we are commercializing it? We would have done all that, right?

How should we

see

this segment, and what is the differential in the realization versus a speciality carbon black and a carbon nanotube? That's one.

Number two, we got this super speciality carbon black. What really is this?

Because carbon nanotube, I can still understand, but when we say super speciality carbon black, what really are we trying to do here? These are the two on this question.

Yeah. Thank you, Sanjesh.

Coming to carbon nanotube, carbon nanotube is a unique product where graphene is rolled into seamless cylinder that forms carbon nanotube. It's nothing but graphene, which we have developed through relentless R&D efforts of many, many years.

If you look at the entire supply chain platform globally, there are only few companies in the world who are doing this, and we're the first in India. If you look at the product, to make it very simple, it is 100 times the strength of steel with the conductivity of copper.

That's the game-changer: strength of steel and conductivity of copper, and very light material. This opens the entire huge arena of application right from lithium-ion batteries to semiconductors, to conductive film sensors, to industrial coatings, to lightweight, high-strength material for aerospace and automotive.

Means every day the uses is improving and increasing. That places Himadri in a unique position because the in-house technology we have developed and now we are putting it into scale.

This is the first step with 200 metric ton. We'll stabilize the product, set up the facility, get customers in place globally.

Today the market is very less in India; it's a global play. We'll be supplying to the global players, and this is a very high value-added product and with significant value over the existing products.

Now coming to super speciality carbon black. I have been talking about value-added products, the journey.

It's a journey, every time you keep on working on it, you keep on developing, and you go one step up the ladder. We started with very low end of speciality carbon black, just marginal in terms of speciality carbon black, then we are moving ahead.

We are going up the ladder with the new speciality carbon black line coming up, we have moved up the ladder. Now the aspiration, I've been always talking about high-value, niche market for speciality carbon black, which is not a very, very huge market, but it's a very, very prime and tailor-made super speciality market, where the value addition is multifold of the existing speciality.

In terms of value addition, you cannot compare the two products. That's why you are seeing at only 6,000 metric ton, but the value addition will be very, very high.

This is the product we are targeting now, and we have given FY '28 as when we will start the capacity. This will be a very big game-changer for the company, going into a very, very niche market, high value-added market with a very strong ROCE.

No,

my question is that we just started a speciality plant. Why did we do that?

We could have straight went into manufacturing this. Any which ways, we are converting the old plant, right?

No, no, we're not converting the speciality plant. We're converting the commodity.

You are converting the rubber side of the—

Right,

right,

right. Speciality, why we went, see, you cannot leave one market and focus on one market.

See, there are players buy speciality, they buy super speciality, you have to have the entire portfolio in your basket. It's not that I'll sell you only the best product, high-margin product, others you buy from other.

That never works. For that, you have to have the entire portfolio with us.

Speciality is the stepping stone to go towards super speciality. That's why we have to strengthen our position, make us very strong in speciality.

That gives the confidence to the customers that they have the ability. If you are not doing speciality, tell super speciality, first question will: first you do speciality, then we talk of super speciality.

That's it. No, no, but

I just want to understand, like conductive grade, it helps in improving the conductivity in the material. What property does this super speciality adding in say engineering plastic and EV?

What really characteristic is this adding there? See,

because of competitive nature, I don't want to disclose all these technical details on a concall. We have clearly articulated which application is this, and I don't want to go into technical details of the subject.

Got it. No, no, no, that's fair enough.

Second, what is the market size of say carbon nanotube globally and the super speciality?

If you look at the carbon nanotube, it's evolving market. Today, it is around 30,000 metric ton, which is growing every year.

Lot of what is happening, this product is getting more and more applications and user industry. It's a new product, new technology, which is working now.

Over the years, you will find the uses multiplying, the growth will be phenomenal. This is a growing industry, new-age industry, advanced material industry.

Coming to super speciality, the market is around 300,000 metric ton.

Okay. No, no, not super speciality is 300,000.

I thought speciality is even—

Speciality is very high. Speciality runs into million, more than million.

Means that's a normal market.

Got it. Now coming to a battery material, we are getting into anode, LFP right now, and then silicon probably soon.

Now want to understand LFP market, what is the size of the market today in China? How many players are there in this segment?

How are we approaching this segment?

If you look at the LFP market, today 100% global capacity of LFP rests in China and is mainly dominated by top five to six players in China. They are the leaders with 75% to 80% of the capacity.

Globally, there is no other company manufacturing LFP as of now on a commercial basis. Entire capacity rests with China.

Market if you look at, today we are at 1.5, 1.6 TWh, and in that, you can say probably 50% is LFP. If you look at 50% LFP, that brings you to 800 gigawatt-hour.

800 gigawatt-hour, that will consume around 1.6 million ton of LFP as of now. With the growing market, it is supposed to grow to 6+ terawatt-hour by 2035, and majority, 70% of the growth, is coming in LFP.

Looking forward, the demand for this product is going to be big.

Got it. What we are adding or aspiring to add 200,000, that's we are talking of having a 10% market share of today's market.

Correct? That's how we are approaching it.

That's not the right way of looking at it, because 200,000 we are projecting in next five to six years. By that time, the market will definitely change from what it is today.

Actually we are targeting at 2% to 3%, which is hardly anything.

Got it. No, if I want to look at the same economics in anode, because I think there are some other players in India also who have announced anode capacity, how are we different?

Again, what is the demand in the world? What is the contribution of China?

If you look at the anode chemistry, unlike LFP, every lithium-ion cell needs anode. In cathode material, there are different chemistries: there's NMC, CLO, LFP, various chemistries.

For anode, everyone needs anode. On a macro basis, 1,600 GW need 1.6 million ton of anode.

Anodes are of different types: synthetic anode and natural graphite anode. If you look at, 70% of the market is synthetic because of high capacity, stability, quality, sustainability, this product is there.

What makes Himadri unique is that, see, it's not that everyone is talking about lithium-ion, Himadri has also started talking about lithium-ion. This has been our vision since last more than 10, 12 years.

We have worked very hard on this to make it happen. Extensive amount has been invested in terms of research and development capabilities and innovation.

We have spent, if you look at the last year's balance sheet only, ₹125+ crore, we have spent 2.65% of our top line. Current year also, we are spending in the same passion.

Over the years, we have spent this money on R&D in different products, and we know the chemistry in and out. We have worked on it for years.

We were the first company in the world to supply the precursor from pitch to the who's who of anode in China, I don't want to name them, any top five players in China before China could make coal-tar-based precursors. We made it, and we supplied to them.

We are very seasoned in this industry and strongly positioned, and only company who is talking of anode metal backward integrated. We have our own raw material.

In addition to that, we have flexibility of using other raw materials. This brings Himadri in a unique platform.

Other than that, we are working on natural graphite. We will also set up capacity for that.

We will set up capacity of silicon-carbon. This again brings Himadri into a unique position where we will meet the aspiring and need of our customers, not only through synthetic, but through natural, silicon-carbon, hybrid—

With—

Sorry for the disturbance. I don't know how the landline is getting disturbed.

Anyways, am I audible now? Someone need to confirm, then I can start.

I was talking about the strength and USP of Himadri. We are going to set up plant for synthetic, natural, and silicon-carbon.

That puts Himadri into a unique positioning where we can supply hybrid material to our customers depending on their requirement. Sanjesh, I hope this answers your question.

Hello?

Sanjesh?

Yes, sir. Can you hear me?

I can hear you, please.

Okay. I think they mute me because they were trying to connect you.

Now you can hear me. Thank you.

No,

that's perfectly clear. I think.

Now we have started 200 metric ton of pilot plant in last one quarter. What has been the response?

How many samples we have sent, and what is the discussion with the client we are having? If you can give us some color, that will be really helpful.

Definitely. What happens, from the pilot plant, we were allowed to give sample A.

There are four stages: sample A, B, C, D. Now we have supplied sample B to many customers globally and in India, to all the customers in India and many customers, OEMs and manufacturers globally.

Once we have the response for sample B, then we go for sample C.

Yeah. Sanjesh, yeah, tell me.

Trying to understand how long this approval process goes.

This process takes 1.5 years to 2 years. Oh,

this entire process for us will take almost 1.5 to 2 years.

For us to get into— We have already advanced the process. For us, it will take comparatively, by the time we have our plant in operation, we'll have the approvals in place.

When are we looking that what would be the potential timeline? I know you haven't disclosed that, but—

That's the reason I cannot disclose.

No, that's fine. We will wait for it.

You are telling generally it's a very long-drawn process in terms of taking approval, correct?

That's the reason we have started sampling from our commercial grade 200 metric ton plant. That brings us in the front foot for getting approvals.

Am I audible, sir?

You are audible. Please.

I just wanted to understand on the anode side, what's the capex amount?

We have already spent ₹120 crores.

How much more to spend here?

How much?

How much more? Is this ₹120 crores is the total amount for this

200 MT? There is no more capex we have announced now.

Once we formulate our plan for a bigger capacity, we'll come up with public disclosure for the investment.

Okay. I got it.

LFP phase 1, what's the timeline for commissioning?

Q3 FY '27.

That's only 2,000 metric ton, right? I was talking about phase 1, 40,000, yeah.

That's will be operational by FY '28.

That will come in FY '28. Right, right,

right.

For this 40,000, we are spending around ₹1,125 crores, right? Right, right,

right.

Okay. On this five capex that we are doing in CNT, SSCB, anode, LFP cathode, and carbazole and anthraquinone, do we have any kind of understanding, what can be the revenue potential from each of this segment at optimum utilization?

That gives us some picture in terms of the overall revenue potential of your new-age capex that we are doing here.

See, 40,000 tons as per the today's give you a 3,000 crore top line.

Okay.

For anthraquinone carbazole, depending on the value, it can give you anything between ₹250 to ₹300 crore of top line. Mhm.

Super speciality carbon black, depending on, again, which segment we are targeting, this will be also 3x of our investment capital investment, three times asset ratio.

Three-time asset ratio, that effectively means around

₹500 crores, right? Yeah.

500 crore, right.

Okay. What about CNT?

CNT, this is a small capacity, 200 metric tons, it will not be substantial. In the next phase, when we scale up, then the real revenue will come.

It's small in the sense what, ₹50, ₹100 crores kind?

200 tons.

Huh?

In that kind of, not 100, less than 100.

Okay, ₹50 to ₹70 crores round about. The last thing is anode, yeah.

Anode, we have not announced any capital investment in terms of bigger capacity. This is a plant for approvals.

Okay. This 200 metric ton, what is the revenue potential of this 200 metric ton?

This gives us some understanding, yeah. I'm

Revenue potential for 200 metric tons may be ₹120, ₹130 crores.

₹120, ₹130 crores. Okay.

I got it. In terms of, are we also in future have any strategy or planning towards going towards the cell manufacturing or something on those lines, the battery cell manufacturing?

Do we have that plan as well or anything on board's on

Not at all. We are a raw material component company, focused on this for last many, many years.

We want to continue in that direction. For cell manufacturing, we have invested in IBC.

Idea is not to go for cell manufacturing; idea is to have a commercial play in terms of our product being displayed commercially by using by the cell manufacturing company IBC. Today, Himadri product is no longer a laboratory product; it's a product which is commercially used in cells manufactured by IBC.

Understand. This ₹1,100 crores bottom line by FY '28 remains intact, that I think we have earlier mentioned, right?

Definitely.

Anything on FY '27, any outlook? I think you have not shared any

We don't give quarter and year guidelines, never.

Fair enough. That would be it from my side.

Would like to wish you all the best. Thank you so much.

Thank you. Thanks.

Thank you for taking my question. I think a few of my questions have already been answered.

Just to elaborate a little bit on cathode material plans. So, 40,000 metric ton by FY '28, and 2 lakh is 2 lakh metric ton is our ultimate target in next five years.

I think by '30, FY '30-'31, we are planning this 2 lakh metric ton would be around?

Right. In five years from now, right.

Normally, what kind of capex is required to float this kind of capacity?

We have already announced for 200,000, ₹4,800 crores of capex.

Okay. When we talk 2 lakh metric ton, what would be the market share at that time if you have any, what kind of analysis would be helpful in terms of

global market share for LFP?

Sorry?

2% to 3% of the global LFP market.

Okay, 2% to 3%. Okay.

Fine. Here in base business, in coal tar business, what is the capacity utilization of the existing capacity and plus what we have expanded 70 70,000 metric ton?

What is the capacity utilization currently in both the segment?

80% capacity utilization. Looking forward during the year, we will be at 90% plus.

Taking it together or separately you're talking for a new capacity? Together, together,

together.

Okay. That's it from my side.

Thanks a lot. Thank you.

Congratulations on a good show. Is my voice audible?

Yes, please. Thank you so much.

Continue.

In terms of the LFP cathode, again, how are we competing with the Chinese players? Can you give some confidence there and also insights on the price differentiation with the Chinese player?

That is my first question. Yeah.

In terms of technology, we have developed our in-house technology for LFP through years of research and development. All these products, whether it's anode or cathode, is always moving ahead.

It started with gen 1, gen 2, gen 3, it keeps on moving. We have to work hand in hand with the customers and keep on developing new qualities depending on their requirement.

That is something which is a strength of Himadri. In terms of pricing, we are trying to price our product as same as China.

Based is that we are trying to develop and set up the business.

How does the economics work there, because we are making considerable margins as well, and at a similar time, we are also competing with Chinese players which have humongous capacity, and we are priced at almost at par. How does the economics work?

Just trying to scratch my head over there.

See, economics works, basically, we are not dependent on China for anything in this. We are not dependent on raw material, we are not dependent on anything.

Our raw material source is different, our production base is India, we have cost advantage compared to China in many particular aspects. Given the technology that we are using have some cost advantage also all together.

That will put us in an advantageous position compared to Chinese players. Okay.

Also,

is there any client commitment regarding the supplies of LFP cathode once the capacity becomes live from Q3 FY '27, and also once we are completed 40,000 of capacity? What gives you that visibility?

Is there any client commitment? Can you share some thoughts?

Definitely. See, client were very impressed by our samples, and the best example for all of this is IBC.

We supplied our LFP sample to IBC, and they were so encouraged by seeing at the quality of the LFP we supplied that they came to us, and we formed a strategic partnership. Because this will put IBC in a unique position where technology is developed outside China with supply chain positioned outside China.

This is one of the such example. Other than this, we are having very strong relationship, and the sample A has been approved.

Now, sample B trial will start from once we have 2,000 metric ton capacity in place. Then sample C will go, sample D.

That's the reason, instead of setting up 40,000 in the beginning, we have set up 2,000 so that the capex is deferred, and we don't have to wait for the orders for plant to commission. By the time we are 40,000 metric ton plant, we have all the approvals because the commercial-grade plant is operational, and then 40,000 plant is up and running in full steam.

Just small follow-up on that. Okay.

No, actually I had a different question on CNT also. What kind of potential revenue in your ₹30,000 crores of revenue guidance that you gave for in next five to six years, are you baking in that or is it excluding that?

What is the margin profile? What rate market is growing?

Some insights on those lines. See,

CNT, 30,000 we gave for lithium-ion component, which includes 100 GW of capacity for anode, cathode, and part of it silicon-carbon. For CNT, the market is evolving.

We start with 200 tons, we see the market, we evaluate the market, very high potential product with very high growth. Depending on how it goes, we will announce our next capex plan for that.

These are high value-added margin products.

Understood. Okay.

Thank you for the chance.

Thank you.

Hello, am I audible?

Yes, please.

Thank you for the opportunity. You have guided towards 100 ₹1,100 crores PAT by 2028.

After Q1, are there any assumptions underlying that road map that have changed either positively or negatively?

See, there is nothing negative. By God's grace, things are moving in the right direction, and things are positive only.

I don't want to comment or change my projections. I'll remain at 1,100 for next year and let the quarter speak of itself what happens.

We are very positive and optimistic about the business.

Okay. Thank you so much.

Hello. Good afternoon, sir.

Congratulations on a great set of numbers for the quarter. Sir, given the West Asia situation that we had in April and May predominantly, how did that affect our realizations per ton and profitability in our core businesses?

The best thing is, see, to see the resilience in supply chain, which Himadri has built over the years, which is clearly depicted by the numbers we came up with. Even going through such crisis globally, geopolitical situation, we have been able to post strong numbers.

This itself shows there is no dependence on West Asia for our functioning and working. In addition to that, what is something special about Himadri, even though being a chemical company, is we are not dependent at all on China for any of our product, that what happens with China, what happens with their pricing, their dumping, no dumping.

That is something we have built over the years.

Sir, also staying on the same point, we do notice that there has been a decline in sales volume for the quarter, but revenue as a total has gone up. How much of that can be attributed to a change in our sales mix towards higher-value products, and how much is on the account of passing over the raw material costs?

See, the raw material has gone up, because of this the finished product prices has gone up, that is definitely one of the part. It's a journey in which we are transforming our product into higher value-added product.

That is at the same time we are continuing. Every quarter you see we are improving in terms of bottom line with not similar improvement in terms of top line.

The reason being, we are more focused on our bottom line rather than top line. The intermediate products are used in-house and converted into finished product and value-added product.

You see the value addition coming. This quarter, you have seen top-line growth.

Again, next quarter coming, you will see top-line growth from both volume and value.

Sir, from the other expenses for the quarter, if we remove the forex loss that we have booked, the other expenses stand at similar to ₹148 crores, while the same number, excluding forex losses in Q4, was about ₹172 crores. Can you please shed some light on what has led to this decline in other expenses?

Freight outbound is part of other expenses, which has come down, which has helped us to reduce this cost, plus we are working on a cost optimization on all the expenses, which is helping us to reduce the cost.

Sir, just one last question on the new businesses that you've announced during the quarter. You've already given us a ballpark idea of what the revenues would look like.

Can you also give us an idea of what the margins would be from this business, whether it be CNT or SSCB?

I don't want to disclose the margins at this point of time. At right point of time, the numbers will speak.

Thank you, sir. Thanks a lot.

Thank you for taking my question, sir, and congratulations for good set of number. Most of my questions are already answered, just one or couple of from my side.

One is on the IBS side, we have increased our stake recently to around 19% something. Going forward, is there any target we have internal to take up our stake in this business?

No, no,

no. It's a strategic investment.

It's not a financial investment. We will remain at where we are.

IBC has developed prismatic cell, lithium-ion cell technology out of China. They have their AI-based R&D center in California, and they have their manufacturing facility in Seoul in South Korea for 50 megawatt, which is a full commercial plant operating.

Now with this integration with IBC, the Himadri product can be seen commercially used in cell. They have already come up with the new cell like [Prouvé 2000?]

, [Prouvé 3000?] , where Himadri LFP and anode will be used, [Prouvé 3000?]

where Himadri silicon-carbon and anode material will be used, hybrid material will be used, plus they are setting up facility through their technology in India for 7 gigawatt. The work is in progress and expected to commence operation by Q4 FY '27.

Where IBC is giving the technology to set up the plant in which Himadri raw material will be used.

Got it. Got it.

Got it. In future also would be looking to raise our stake if at all required?

No, no, no. We are not looking to raise.

Okay.

Okay. Secondly, sir, just on the mining side, as you have highlighted this quarter there was no as such revenue from mining.

How the licensing progress we have and from coming quarter any kind of number we can get on the mining side?

No, we have applied for environmental clearance. It takes time.

We don't have the visibility.

That will take time.

It will take time. It can take 3 months, it can take 6 months.

Got it. Got it.

That's it from my side, sir. Thank you.

Hi, good evening, sir. Sir, my first question is regarding the big swing that we had seen in forex change from a profit to a loss this quarter.

What's driving it? Is there any change in the hedging policy?

No,

there is no change in the hedging policy. Because of the huge volatility in the currency, this happened.

This is done with. If you see last quarter also, there was a loss.

This quarter, again, there is a loss. From next quarter, there will not be any impact on account of FX, negative impact.

This is the last quarter for this. Because of so much of volatility in the currency, this happened, but looking forward, it's not going to happen.

Okay.

Sir, second question related to this. Last year, we had seen good foreign gains, which led to higher other income component.

Sir, this quarter, we are again seeing a higher rise in the other income portion. What is driving that?

What component led to such growth if FX was a loss this quarter?

This quarter, if you see, two, three factors: one, we have deployed lot of funds in terms of interest in FDs. We have borrowed from bank and CPs and deployed in FDs, which gives us a delta.

That helps to have interest earning on our investments. Plus we have made investment in mutual funds, so that is part of it.

Other than that, we have made investment in IBC, Sicona, NCDs of Birla Tyre, mark-to-market of that is also helping us to, that was the reason for other income.

Sir, this is the usual run rate that we should resume from now onwards when it comes to other income?

This will vary 30% to 40% quarter-on-quarter.

Okay. Sir, last question, the new capex that you've announced, are we planning to take any incremental debt, or in FY '27, the free cash flow would cover that?

Definitely, the free cash flow will cover that. There is no question of any incremental debt.

Okay. Thank you so much, sir.

That's it from my side.

Thank you. Thank you so much.

Congratulations on excellent number and very exciting projects over next five years. What would be the year-wise capex, if you can guide for next two or three years?

Total consolidated. Yes,

yes. Total capex we have announced is around ₹2,000 crores: ₹1,125 crores for LFP, ₹368 crores announced yesterday, so that brings to around ₹1,500 crores of capex, plus ₹500 crores of capex this year in Birla Tyres.

Total ₹2,000 crores. Out of this, we expect around 1,000 crores of capex happening this year, and 1,000 crore next year.

1,000 crores. Coal tar pitch, you are at 6 lakh ton, there no capex is happening?

There is no capex happening, right.

Distillation, no capex. So, 1,000 crores this year, then 1,000 crores next year?

Right,

right.

Right. Birla Tyres, I think I heard on your CNBC interview, your quarterly sales was 127 crores?

Right,

right.

Okay. That's EBITDA positive?

Not yet. Now Birla Tyre is reflected on Dalmia Refractory balance sheet.

Once it becomes part of Himadri, then the numbers will come. It is through our subsidiary that we are selling tyres, that revenue is recognized in Himadri.

The difference between consolidate sales and standalone sales is largely Birla Tyres?

Is largely Birla Tyres, yes.

Okay. Okay.

In case of the core business, coal tar and carbon black, this margins are sustainable?

Definitely. The way we have built up the business over the years is on sustainable value margins.

If you look at coal tar pitch, we supply material to our customers at the lowest price globally. And Hello?

Very sorry. I don't know what is happening.

We have shifted from landline to mobile line. Is the voice clear, Pooja?

I think echo is there.

Hello, you can hear me?

I can hear you, please. Did you hear my answer?

I think you said 1,000, 1,000 crore capex this year, next year, margins are sustainable, and after that, any follow-up, I think the line was dropped out. Yeah.

More or less that only. I don't know why the line is getting disconnected.

Sir. Last question on the tyre ramp-up, if any guidance there?

We are ramping up quarter-on-quarter. If you see, compared to the last quarter, this quarter is higher in terms of volumes, in terms of sales.

We'll continue this trajectory, and in next four to five years, target is to reach ₹3,000 crores of top line in Birla Tyres.

What is the EBITDA breakeven level for that turnover?

We'll reach EBITDA breakeven in this financial year only. We'll be cash positive.

We'll be cash positive. Okay.

Okay. Thank you, sir.

Thank you.

Hi, sir. Good evening.

Just a follow-up on the LFP cathode pricing. If you said that your pricing is competitive versus China, just wanted to know that from our working, we are arriving at a negative gross spread on this if we compare the China pricing versus the import cost calculation.

Just wanted to know where are we sourcing the lithium carbonate, because that is the major driver for the spreads on LFP. Do we have any advantage over there?

See, I'll suggest that it is not possible for you to calculate my cost on Excel sheet and come to a conclusion. It took long time for us to come to a conclusion and see how to make profit.

On Excel sheet, by seeing at few prices, you cannot determine what is the margin. We are confident, we'll work on it, and I cannot disclose my sources.

That is confidential. Thank you.

Sir. Yeah.

Hello, am I audible?

Yes, yes, please.

Yeah. Sir, basically, most of my questions have been answered.

I need to know, as we continuously emphasize that we are shifting our product mix and that will lead to a higher profitability. Can you tell us what's the product margin mix from the current capex which we are doing, if you can broadly explain?

Or in terms of pricing difference, if you can explain that if it's not possible with the margins.

See, pricing difference, as we move up the ladder, we go for the niche product. All the capex we have announced yesterday has significant high margins and significantly differently priced all together.

There will be no comparison between what we are doing, what pricing we are doing, what margins we are having today, and what margins will these products bring.

How do you expect our blended EBITDA margin to go over the next 2 to 3 years?

You calculate on the basis of what we are performing.

Sorry, I didn't get it.

You calculate on the basis of our results, what we are performing.

Okay. Also, okay, I got it.

Also, sir, as we are talking about the anode side, the pilot plant which we have, as per my understanding, we are doing with meso coke technology, which is different than other players in the market. When we look at the other players, they have been doing the pilot plant since years.

How confident we are that we will be able to onboard customers for our anode, pilot plant? How are we seeing the traction from the customer that they are getting the confidence on our product as compared to—

See, first of all, no one is doing this product before Himadri. Himadri is the pioneer in this.

There is no other plant in India who has pilot plant before Himadri. Himadri has set up 200 plant now, but pilot plant is there for last many, many years, and we have done and we are doing it on different types of raw material.

Our raw material is one of it, other raw materials, we have all the varieties of finished product available with us depending on the appetite, requirement, and specific uses of the user industry. We'll produce the anode material and supply to them depending on what price they give, depending on what quality they want, we will do it.

Are we currently seeing any traction from the customer that they are

getting confident

on? Definitely.

There's a huge traction from the customers because of the quality what we are producing, there is great interest from customers in India and globally.

Got it. What's the timeline we can expect them getting converted on the full-fledged commercialization at a large scale, if you can guide on that?

See,

I have not made any public disclosure on that, on a call, I don't want to make any public disclosure. Once we come out, we'll come up with the announcement, formal announcement, for the capacity.

Okay. Sir, just last one clarity on the super speciality carbon where you have mentioned.

Can you explain how this different from the speciality carbon? Like you have already explained a bit, but I want to know in terms of application, how it differs in terms of application and how big the market TAM is for the particular super speciality carbon black we are talking about?

I told the market is not very big, very specialized, 300,000 ton market, and very niche application, very high value-added applications. I don't want to go into details of application as such, but if you look at margins, the margins are significantly higher than speciality carbon black.

There is no comparison between speciality margin and super speciality margins. These are significantly higher.

Okay. Sir, in the previous answer, you once mentioned that you are also focusing on the natural anode, you were talking about.

As we are already in synthetic anode like material, then why we are going for the natural? I want to understand from where we are seeing the traction in the market, in the industry, if you can

Some customers need low-value anodes, some need medium-value, some need high-value. Depending on customer appetite, we should have all the products available with us.

Some need blended anodes: natural, synthetic, silicon. As an anode producer, we will showcase a unique proposition to our customers, having all types of anode material.

What's our plan in the natural side, do we have currently?

Natural also, already we are producing natural anodes. Synthetic, we are producing.

Silicon-carbon, our partner is producing. All will be integrated in Himadri over a period of time.

Got it. That's all, sir.

Thank you so much.

Thank you. Thank you so much.

Thank you. Thank you so much.

Let me close by thanking each of you for joining us today and for your continued interest and for thoughtful engagement we continue to receive around Himadri. I hope our discussion has given you a clear sense not just of where we stand today, but of the direction in which we are building the business.

As I mentioned at the outset, we are pursuing our ambition with discipline, funding it from our own balance sheet and building it on firm foundations of safety, sustainability, and trust. I remain confident that the decisions we are taking today will compound into meaningful and lasting value over the years ahead.

We would like to thank all our stakeholders and partners for their continued trust and to the entire Himadri family. Thank you for your dedication and commitment that makes all this possible.

Our investor relations team remains available for any further questions and would look forward to staying engaged in quarters ahead. Thank you once again, and I wish you all a very good evening.

Thank you.