Thank you, Anura. Good evening, everyone.

Thank you for joining the fourth quarter financial year 2026 earnings conference call of Jubilant Ingrevia Limited. I would like to remind you that some of the statements made on the call today could be forward-looking in nature, and a detailed disclaimer in this regard has been included in the press release and results presentation that has been shared on our website.

On the call today, we have Mr. Shyam Bhartia, Chairman; Mr.

Deepak Jain, CEO and Managing Director—

On the call today, we have Mr. Shyam Bhartia, Chairman; Mr.

Deepak Jain, CEO and Managing Director; and Mr. Varun Gupta, CFO, Jubilant Ingrevia Limited.

I now invite Mr. Shyam Bhartia to share his comments.

Thank you, Pavleen. A very good evening to all of you.

We are pleased to report a healthy performance in Q4 and FY26. We had the highest quarterly revenue and an EBITDA in Q4 FY26 when compared with last 14 quarters with healthy double-digit growth in both top line and bottom line, reflecting our strong execution.

Specialty Chemicals had the best quarterly revenue at ₹516 crore. A key highlight for the quarter was our effective handling of the Middle East crisis with no force majeure and zero production loss.

The other highlights include successful dispatch of our newly constructed agro-CDMO facility and the acquisition of Remidex to accelerate the growth of our human nutrition business. The board has recommended a final dividend of ₹2.5 per share, 250%, and taking a total FY26 dividend to ₹5 per share, 500%, with the total—

—with a total cash outflow of ₹79.8 crore. Now let me take you through an update on the markets we operate in.

Overall, chemical industry's demand remains resilient despite Middle East disruptions. Volumes continue to grow while the pricing has firmed up due to higher crude-linked costs and effective pass-through to customers.

Pharmaceuticals continue to anchor growth with strong volumes and consistent demand. Agrochemicals saw strong growth with robust export visibility and successful price increases, especially in second half of the quarter.

Nutrition and Personal Care markets witnessed volume and price-led growth driven by niacinamide with strong demand in feed and cosmetics. Now let me share a few details on our future outlook.

Early outcomes of our Pinnacle journey are clearly visible in our performance with strong EBITDA growth and improving—

Can you hear us now? Yes,

Now let me share a few details on our future outlook. Early outcomes of our Pinnacle journey are clearly visible in our performance with strong EBITDA growth and improving portfolio mix, enhanced customer relationship, and a robust opportunity pipeline, more efficient cost structure and balance sheet.

With improving volume demand and escalated pricing, we are confident of sustained growth going forward across our segments. For FY27, we expect growth to be led by Specialty Chemicals and Nutrition along with recovery in Acetyls.

We are expecting a sequential growth in revenue and EBITDA in coming quarters starting from Q1 FY27 itself. We continue to invest further in our business.

The construction of Gajraula MPP plant is progressing well. This will further strengthen our CDMO growth road map.

With this, I hand over to Deepak. Thank you.

Thank you, Chairman. Thank you, everyone, for joining.

We appreciate your participation in the Q4 FY26 investor call. Over the past year, we have made a strong progress across all strategic pillars, building long-term growth while managing global challenges effectively.

Despite Middle East disruptions impacting supply and prices, our diversified sourcing and agility ensured minimal disruption with effective cost pass-throughs. Strong customer engagement and timely renegotiations have strengthened resilience, reflected in improved performance in Q4.

Let me first share the overall business update for Q4 and FY26. Q4 recorded highest revenue in 14 quarters at ₹1,179 crore, up 12% year-on-year driven by 10% volume growth.

EBITDA stood at ₹172 crore, up 11% year-on-year and 26% quarter-on-quarter. PAT was ₹86 crore, up 17% year-on-year and 84% quarter-on-quarter.

Net debt-to-EBITDA improved 0.99x. Our net debt have reduced by 11% in 2026.

In Specialty Chemicals, revenue stood at ₹516 crore, rose 6% year-on-year and 13% quarter-on-quarter. EBITDA stood at ₹139 crore with margins at 27%, which we have maintained for last six quarters.

FY26 revenue stood at ₹1,937 crore, up 7%. EBITDA stood at ₹510 crore, up 21%.

During the quarter, Specialty Chemicals showed strong momentum driven by volume recovery despite stable pricing with margins rising above 27%, reflecting robust fundamentals and resilience. Our pyridine and derivatives showed strong volume growth.

Our fine chemicals and diketene derivatives recorded steady quarter-on-quarter and strong year-on-year growth. Our CDMO business progressed well with higher realizations and commencement of a large agro contract, reflecting a shift towards value-added products.

In Nutrition business, segment revenue stood at ₹230 crore, up 21% year-on-year and 15% quarter-on-quarter. Segment EBITDA stood at ₹32 crore, up by 42% quarter-on-quarter, and margins stood at 14%.

FY26 revenue stood at ₹790 crore and EBITDA at ₹100 crore. In our Nutrition and Health Solutions business, we witnessed a strong recovery during the quarter with growth driven predominantly by volume across segments.

Growth was led by niacinamide, supported by cosmetics demand. Choline health also improved with surge in exports in Europe.

We completed acquisition of Remidex Pharma, expanding presence in human nutrition and premix solutions. In Chemical Intermediates business, revenue stood at ₹433 crore, up 15% year-on-year and 10% quarter-on-quarter.

Segment EBITDA improvement supported by cost pass-through. In our Chemical Intermediates business, domestic volumes improved on the back of strong agrochemical and paracetamol demand.

We remain optimistic about recovery supported by European force majeure events and plant closures, while Middle East disruptions firmed up input costs, rising acetic acid prices have set the stage for a favorable pricing outlook for the segment going forwards. Let me just give a quick update on Pinnacle journey as well.

We launched our Pinnacle journey almost two years back, and glad to share that we have made significant progress across all pillars of the journey, leading to the creation of a strong foundation for future growth. A few highlights: number one, across businesses we delivered strong volume growth.

Nutrition saw highest B3 volumes in eight quarters and steady choline growth. Acetyls improved volumes and pricing with market share gains in Europe.

Specialty continued momentum in pyridine, fine chemicals, and CDMO shipments. Number two, driven by our customer-centric approach, we now have 100+ opportunities with almost ₹3,500 crore potential with 20+ confirmed molecules and additional pipeline of 10+ advanced-stage molecules which have peak potential of ₹1,100 crore.

From an operations and ESG perspective, we achieved ₹120 crore lean savings and glad to share that we achieved 97th percentile in S&P Global CSA ranking. We also successfully commissioned Bharuch CDMO plant in record 14 months, reflecting strong execution.

Lighthouse award and successful US FDA audit of our Bharuch site are testament to the world-class infrastructure we are creating at our plants. From a people and organization perspective, we strengthened leadership with key senior hires in almost every department of our organization such as supply chain, manufacturing, HR, businesses, design and technology, and so on.

We transitioned to a vertical structure to drive focused growth across Nutrition, Pharma, Agro, Cosmetics, Industrial, and Semicon segments. We invested heavily in our R&D and technical teams in last two years.

From an awards and recognition perspective, we were certified as a Great Place to Work and ranked among the top 50 companies in the country in manufacturing sector. We were also recognized with the Golden Peacock Award and a British Safety distinction.

On the M&A front, we completed the acquisition of Remidex Pharma to strengthen our human nutrition premixes portfolio. The early results from these initiatives have already started to show in our financial results in the last two years.

For instance, our EBITDA has grown by almost 33% in last two years despite tough market demand and declining prices. Our Q4 FY26 run-rate EBITDA is 70%+ higher than Q4 FY24 EBITDA, signaling the pace of improvements we could showcase in last two years.

Portfolio mix moving in favor of Specialty and Nutrition, contributing almost 85%+ of overall EBITDA, Specialty EBITDA almost doubling in last two years. Improved net working capital at 59 days, leading to a more efficient balance sheet and a net debt-to-EBITDA ratio of 0.99.

This strong foundation and the early results give us the confidence that our Pinnacle strategy is working well. FY27 is the pivotal year in this journey, where we are hoping to accelerate our growth starting with Q1 FY27 itself.

We will now be happy to address any question that you may have.

Hi, sir. First question on the Chemical Intermediates business.

How should one think about the spreads in 1Q given that we have seen a very sharp improvement in both ethyl acetate and acetic anhydride spreads globally? Beyond 1Q also, how should we think given that now we have entered into a falling environment, should we expect any inventory losses beyond 1Q?

That's a good question, Siddharth. As I think most of us have seen different cycles in the Acetyls business, particularly in acetic anhydride.

You're absolutely right, when the war began in late February, we saw a sudden escalation in the raw material prices. Given our typical approach of having raw material inventory and locking in the raw material at the right price, at the right time, in an agile way, we started to see some benefits of that coming in last quarter itself as reflected in the Acetyls business results for Q4 FY26.

We are hopeful that those benefits will continue in Q1 as well in a strong way. Besides that, a lot depends on what happens to pricing in coming months, as you rightly said, we are already seeing acetic acid prices coming down.

We have been very thoughtful in the way we have purchased inventory, and the kind of stocks we maintained at when the prices were at their peak. We are hopeful that whatever inventory impact has to come, will be able to nullify within this quarter or at best in the early part of next quarter, and hence, minimize any negative impact coming from that in Q2.

That is very helpful. Secondly, on the CDMO business, what was our revenues in CDMO for FY26?

The entire was classified under Specialty Chemicals, or there was some part of it in the Nutrition business also?

No. Our CDMO business, currently, all the revenues are recognized within Specialty business itself.

As I have mentioned in the past also, we never disclosed the exact number or exact size of the CDMO business, but it has been growing at a very healthy rate, almost 30% to 40% every year. Even last year we have seen that kind of growth.

With the advent of some of the big contracts and other opportunities that we have won, we are hoping it will start to accelerate its growth in FY27 further.

Given that we have highlighted the number of projects that we are in discussion with, are any projects in the early stage or late stages, and can we expect any closures in FY27?

Yeah. I think if you saw our announcement in the investor presentation also, even in the last quarter, we added eight new molecules to the 15-odd molecules that I had announced in the last quarter.

Every quarter we are securing new molecules. Of course, not every molecule is a scaled molecule or commercialized molecules to start with, and there is a ramp-up period to the scale-up.

True impact of this opportunity will start to reflect in the P&L in coming quarters. To your precise question, yes, we do have couple of late-stage opportunities in the hopper which we are hoping to convert, and particularly one of them is reasonably sized.

As and when that gets secured, we will, of course, come back and announce to the market.

Sir, just last question on the Nutrition acquisition, can you just speak about what benefits could we have from that and what is our strategy going ahead with that acquisition?

Yeah. I think, as we announced, even in our presentation last year in Investor Day, Human Nutrition is a vertical which we are trying to create within our broader Nutrition vertical.

We already have couple of products in our portfolio which go into human nutrition segment such as vitamin B3 and vitamin B4, which is choline salts. We already have access to all the customers.

Our customers have been asking us if we can also start to do premixes and specialty products for them. The idea of acquiring this business is to forward integrate into that segment and leverage both our strength in the straight molecules and the customer relationships that we already have and provide them an integrated solution.

The traction that we're getting with the customers is actually quite strong. Of course, we didn't have the capacity, and with this acquisition we have the capacity as well as some existing customer relationships.

That topped up with the strength we already have in our Nutrition business with all those customer relationships and the molecules, we are hoping we'll be able to scale up that business pretty rapidly.

Thank you, sir. Thank you so much.

Okay.

Yeah. Good evening.

Thank you so much for taking my questions. First, with regard to the outlook for this sequential growth in EBITDA every quarter going forward in the coming year, would it be possible to offer any form of quantification regarding what sort of growth we should expect for the quarter ahead and for the full year ahead?

Abhijit. I think we've been pretty consistent in saying that if we take our EBITDA, we aspire to get at least 20% year-on-year growth on EBITDA on the full-year basis.

I think the challenge in giving quarterly growth rates is because one contract moving up and down by a few weeks can make things look very staggered. That's why we don't give that guidance.

We will stick to our overall guidance of achieving at least 20% growth in EBITDA through the year. If you just take a linear trajectory to that, hopefully we'll be able to get that on a quarterly basis as well.

Yeah.

Got it. Thank you.

Of the CDMO order book we have assembled now, how much of a contribution should we expect from the $300 million contract in the upcoming year, and then also the remaining part of the ₹1,500 crore order book, how should we expect these to contribute during the upcoming year? Yeah.

I think, see the big contract, and a quick update on that, I think I've been giving it in every investor call, the project actually started in March as we had promised to all of you, and we started shipping the material also in March. Then currently, we are shipping the material to the customer.

We are discussing with them about various volume scenarios for rest of the year, and once we have that firm plan with them, we'll be able to give any guidance on that. That does form a main pillar of the overall growth projections for this year, as we have communicated in the past.

On your broader question on the pipeline of opportunities, these are opportunities which are in different stages. Some of them are, let's say if I take some of the pharma sector opportunities, these are Phase II, Phase III opportunities, and hence in the beginning, they will be relatively small.

As they scale up, as the customers move forward in their overall development journey, we should be able to scale up those products, while some other to start with will be, let's say ₹10, ₹20, ₹30 crore kind of opportunities. There's a mixed bag there, but as I mentioned, I think, in the last investor call also, generally the trend at the overall portfolio level for these new opportunities, what we expect is, in the first year, they give at least 20%, 25% of their peak revenue, by second year they give 50% to 60%, and by third year they give 80%+ revenue.

While each opportunity will have its own life cycle, but at a portfolio level also, I think we should be able to mirror that trend to gain incremental growth in our portfolio.

Thank you. That's helpful.

Just one last one from my side. The capital work-in-progress on the balance sheet seems to have come down to about ₹150 crore.

In light of that, what is the capex number we should work with for fiscal '27?

Hi, Abhijit. Varun here.

See, it came down because we have capitalized our CDMO plant now in the March. To your question, in 2027, as we have indicated earlier, we'll continue with the range of ₹400 to ₹500 cr of a yearly capex to continue to invest behind our growth.

A big capex is coming into Gajraula MPP, which we have announced earlier, which will be finished this year and will go into commence production in quarter four.

Got it. Yeah.

Thank you so much. I'll come back in the queue for any more.

Yeah.

Yeah. Thank you for the opportunity.

My question is, from here on, we have to achieve the same objectives that is 3x revenue and 4x EBITDA, but now in the next four years. What specific growth levers, business drivers, or strategic initiatives gives the management confidence that such aggressive targets are still achievable?

Yeah. That is a good question.

Like I said, if I just talk in terms of EBITDA, if we are able to achieve our, let's say between 20% to 25% growth every year, we'll be largely on track. There was some growth we had assumed coming inorganically in that growth journey, Pinnacle growth journey, as we announced, even in our Investor Day.

We still feel confident that by FY30 we should be able to take our EBITDA organically to the ranges that we announced in the Investor Day. Obviously, one big assumption which I keep calling out is the pricing, which has surprised all of us.

Now with the recent disruptions, we have seen pricing coming back in some segments. We are hopeful that at least part of that will stay.

If that happens, then we feel confident that we should be able to track back on the journey that we have planned and the vision that we have planned on Pinnacle.

Yeah. My next question is, the company had signed the $300 million contract during October 2024.

Now while the commercial deliveries have begun just now from March onwards, at the time of signing, the US dollar to INR exchange was at around ₹84 per dollar, whereas the rupee has now depreciated significantly and it is around ₹96 per dollar. Could the management elaborate on whether the company stands to benefit through higher rupee revenues?

See, if you see on a standalone basis, that I don't think is the right way of looking at it. You have to appreciate that at an overall company level, we have a huge amount of imports which come in.

In fact, our dollar-based import bill is as big as our exports in the last fiscal year, we are naturally hedged at a company level. Number two, in the context of the specific contract you talked about, we have a bunch of raw materials we'll be sourcing from different geographies which will also come on dollar.

Obviously, as we were constructing the plant, some equipment were also imported. If you take all of those into account, we still feel there will be some positive impact, but it will not be just as linear as you said that 84 becoming 95 and what is the benefit coming into the P&L.

All right, sir. On the semiconductor side, when can we expect the remedy revenues coming to us, sir?

We already have some revenues coming in, but very, very small, and as I have been very explicit about it, semiconductor chemicals, we are focusing from a long-term growth journey perspective. We do have almost a dozen different projects which team are working on, and we have also supplied commercial volumes in small quantities to the customers.

We are getting good traction from the customer, but at the same time, customers in this segment, as you will appreciate, like to move slowly, and they want to get absolute level of comfort that they can start using material supplied by any supplier including ourselves, to their customer and without creating any disruption because even an iota of deviation can have huge implications. We expect a slow ramp-up in that segment, but our number of opportunities are definitely increasing.

I just came back about 2 weeks back from Japan. The number of new opportunities we could add has only increased.

There are more number of international semiconductor chemical companies which are looking for partners in India, and we are in touch with a couple of them, and having some healthy discussions. Of course, these things are taking longer than what normally any other sector in chemicals world will take, because it's a very sensitive segment which moves slowly and in a calibrated manner.

All right, sir. One final question from my side.

The company has been highlighting CDMO as a key long-term growth driver, particularly in the agrochemicals segment. Could the management provide an update on where the company currently stands in terms of securing CDMO contracts from global agrochemical majors apart from the two that we have already secured?

Yeah.

We have given the update on that in every investor call. Agro is a key segment for us.

Almost 20% of our business comes from agro segment at an overall company level also. The two molecules we won and we have executed both of them successfully first time right and in record time, that has been hugely acknowledged and appreciated not just by those two customers, but also by the broader agrochemical industry, including some of our peers.

On the back of that, the traction we are getting with all five or six top innovators is actually at the highest level that we ever had. As we speak, there are at least more than half a dozen molecules that we are in various stages of discussions with the customers.

The challenge in agrochemical industry, as I think most of you already know, has been that it has been moving very slowly, and there are massive cost pressures coming from China as well. As a result, while things are moving in the right direction, they have been slower than what, let's say, in normal times they would have been.

Having said that, we are getting traction with the customer even now. Like I said, there are actually more than six to eight different opportunities that are in various stages of discussions with the agro customers.

I think just stepping back, our CDMO opportunities is broader than that, as our pipeline also shows. While agro is one part of it, the pharma side we have made a meaningful progress with our pipeline becoming almost 3x of what it was 1.5 to 2 years back.

On the personal care side also, we are getting some exciting opportunities, and we are working on them. We have won couple of them, and we are in the process of advanced stage of discussions with a few of them.

That CDMO story is broader than just agro, but we do have a good number of opportunities in agro as well that we are discussing with the customers.

All right. Thank you for answering all my questions, sir.

Thank you, and wishing you all the best.

Hi, sir. Good evening.

Thanks a lot for taking my question and congrats on a good set of numbers. First one, prying a bit on the previous issue discussed by an earlier participant.

What would be the building blocks for growth, not looking at it from a quarterly perspective, but on a yearly basis, since there have been deliberations regarding the innovator contract, with regards to their position in the global market? What is it that we fetch from them, do we really have a clear path of recouping volumes if there's been a loss, or a delay that we have seen in the beginning of the quarter, maybe because it started towards the end of March?

Do we see that we might be able to execute the $60 million yearly trade with them in terms of revenues? That would be the first one.

Second one, I'll just club it up. We've written that our pipeline in the pharma piece within the CDMO segment has gone up by 3 times in 2 years, and this is with innovators and tier-one CDMOs.

Is there a scope of entrenching into some pharma majors also and if there are any opportunities, rather tangible opportunities that you might want to highlight to us, so that we can pencil in that kind of growth for FY27 within CDMO? That would be it, sir.

Thank you. Yeah.

No,

thank you, Archit. All good questions.

Let me just take them, one by one. I think your first question was, what are the multi-year growth drivers?

I think, they remain same as what we announced in the Investor Day. There's no change in our strategy.

So, bulk of the incremental growth in our business is supposed to come, number one, from our Fine Chemicals business, where we have pyridine derivatives, diketene derivatives, and we are launching several other new molecules, including some of the cosmetic-grade molecules. Number two, the CDMO, opportunities, which, as I was just explaining as a response to the previous question, across agro, pharma, semiconductor, and increasingly now in personal care space as well.

Number three, our Nutrition portfolio, where both on animal nutrition and human nutrition, we are, taking both organic and inorganic moves. These three, will be the fundamental drivers of both growth and and and profitability going forward.

On top of that, as we saw recently and and I explained as a response to one of the questions, if Acetyls, come back and stays where it is right now, that will also give give us some lift. These four, building blocks essentially should help us accelerate our growth journey.

FY27 being the middle year of our, or let's say the third year of our Pinnacle journey, we see this as a pivotal year in which, if these four things come together, we should be able to show the acceleration that, that you're talking about. Now, so that's part one.

The part two of your question about was about the big agro contract. Of course, the customer is going through some tough times, and we are in constant touch with them.

We have a excellent relationship with them. They have been very supportive of us, and and so are we, very supportive of whatever is happening there.

Far, they gave us the visibility for first quarter of volumes, which is what we're serving in in in this quarter as per the plan and and agreement with them. For future volume visibility, they are building their scenarios, and the market has been very dynamic as well, it is taking a little bit of time.

We do have an understanding as well as commitment from them, that, that just in case there is any shortfall in volumes, they will make us whole as per the contractual agreement. Which is which is where we are fully covered, and we will go, as per the projections that we have committed, to the markets, in terms of bottom line.

The part three of your question was about pharma. Sorry, just repeat the question.

What was the third question on pharma?

Yeah. Sir, I was just wanting to know, the pipeline that we've built over the last two years, you have mentioned in the PPT that it's gone up by 3 times, 3x rather, and with innovators and tier-one CDMOs.

Just wanted a better elaboration of that, whether this is something that is newly growing up as a growth opportunity for us, pharma CDMO particularly, because we have seen a few peers who are doing extremely well in the pharma intermediate side making disproportionate margins. Are we taking up that track over there or is it the same piece of pyridine business that used to cater to some of the large pharma guys?

How do we think about this, if you can help us understand? No,

that's again a good question. On the pharma one, obviously, if you track pharma CDMO, you, particularly on the intermediate side, you would appreciate that if you are focusing on Phase II, Phase III opportunities, it takes at least 4, 5, 6 years before the opportunity gets to a commercial scale.

Point number one, most of the intermediate opportunities we are focusing on currently are in Phase II, Phase III stage. The scale-up will happen gradually with time as the customer also scale up those molecules.

Number two, to your question on whether these are just pyridine-based or more broad-based, these are broad-based opportunities, more linked to the kind of chemistries we have strengths in. Only 25% to 30% of this pipeline we have created in pharma is pyridine-based, 70% is non-pyridine.

Customers are recognizing our broad-based capabilities, beyond just pyridine as a molecule in the broader chemistries, and we have 30+ chemistries where we operate, and in our discussions, we have educated the customers, and we're still doing it every time we go and meet them, and on the back of it, we are getting good traction with them. Thirdly, obviously given that we were not promoting our pharma CDMO as actively until a few years back, and we have started this journey only a couple of years back.

Customers are internalizing that, and hence even the quality of the portfolio and these leads is also improving, and that's why we have mentioned explicitly now we have opportunities coming from innovators as well, which is a good point for us because of the pipeline we have, I think almost 1/3 or close to 40% will be coming from innovators now, which augurs well for future years because on the back of it, we will not only start working with them on these Phase II, Phase III opportunities, but as we gain their credibility, we are hopeful we'll be able to get into some already commercialized opportunities which can give us step-change kind of scale and growth in coming years. By and large, even you mentioned some of the players in industry are doing well, but you need to track the history and see that they took a few years before they established themselves as a credible CDMO player and then only they started to scale up.

We are in the second or third year of that journey, but we're getting good traction and will start scaling up, hopefully, starting this year itself, and then a part of opportunities that we are currently tracking can give us nonlinear growth in the outer years of this Pinnacle journey.

Right, sir. Of course, as you rightly mentioned, it takes some bit of time to develop that pipeline.

The only understanding that I wanted was, since you mentioned Phase II, Phase III and we have seen a lot of lumpiness in those kind of revenues with other companies, because sometimes you kind of hit the wall when it comes to synthesizing a particular molecule, and then you have to go back to pavilion to rework things and try to find newer opportunities. I just wanted to know, or rather understand, if we are embarking upon that journey, wherein we are pegged to certain innovator APIs which are in the development phase, and once in the light of the day, we hopefully get in their supply chain?

Would that be a correct understanding, let's say, 3, 4 years down the line?

No, that is the correct understanding. All the molecules which we have currently or recently received from the innovators, they feed into some APIs which the innovators are developing.

Now to your point, it can play either ways, right? If the molecule is successful, goes through the whole journey, it can scale up in a big way, and because we'll be one of the early ones to enter that value chain, hopefully we'll scale up with them.

At the same time, there will be some natural mortality rate to these molecules. At this stage, it is difficult to predict.

The only thing we can do from our side is just keep the funnel wide enough so that even if you adjust it for the probability of any kind of mortality, the rest of the portfolio still has good number of opportunities for us to scale up the pharma CDMO, which I think we have announced and we presented even in our Investor Day presentation that the pharma CDMO business, we want to take it to at least 3 to 4x of its current size. The pipeline that we're working on and the pace at which we are adding new molecules, which now we have started to announce in the last two quarters, gives you a sense at which we want to scale up, so that the funnel is wide enough to take care of any kind of mortality which anyway happens in this business in a natural way.

Sure, sir. That's great.

Thanks for the answer. Just one last, the capex that we should build in for FY27 if you could help us with that.

Thanks and all the best.

Thank you. Hi, Archit.

Varun here. On the capex, I've mentioned to Abhijit also just on the call, we are looking into a range of ₹500 cr of the capex next year, and it is in lines with what we have given the indication to the market during our Investor Day, that will continue to invest behind our growth.

Sure, sir. Thanks, and all the best.

Thank you. Yeah.

Thank you for the opportunity. Can you, sir, just share your thoughts on the demand-supply scenario in the pyridine side and the possible reasons for muted pricing there?

Yeah. I'm happy that question on pyridine is coming 45 minutes into the call.

Given the change in focus of our portfolio, thank you for asking that question, but pyridine is an old molecule and we are global leaders in that. We are world's biggest in terms of sales.

We have capacity of about 50,000 tons for pyridine and picolines, and we run our plants at 90%+ utilization levels. The rest of the capacity in pyridine is in China, which is to the best of our understanding about 2.5 lakh to 3 lakh tons.

The plants in China typically run at 30%, 40% utilization levels, while obviously our plant, as I just mentioned, is running at 90%+ utilization. There are two factors which help us in pyridine business.

One is, given our long history and extreme level of focus on that business, we have been able to optimize our cost structure to have a level of competitiveness which is better than even the Chinese. Number two is, obviously, the world is seeing China-plus-one trend very strongly, and hence, anybody who want to buy pyridine, picoline, or any of their derivatives, they do want to have at least one more partner or supplier outside of China.

Since we are the only ones, they partner with us for their requirements. I hope I answered your question, but let me know if you were—

Yeah. Sir, this 30% to 40% utilization of the Chinese facilities, right, is there any change in that or the question was that is there a reason for the muted pricing or you expect any changes in the pricing scenario?

See, the the the pyridine and picoline pricing, if you track back last 10, 15, 20 years, you'll always see some volatility in that. Um, and and particularly the two main, products there, pyridine and beta picoline, they they go hand and glove together.

If one goes up, second comes down. If second goes up, one first comes down.

If you look at the average pricing, it is it it hovers between $2.5 to $3.5, $4, if if you just take a multi-year, sorry, multi-month average, and and plot it on the curve. Right now, as we speak, for pyridine prices, they are very low.

In fact, at the rock bottom right now, and while, the beta picoline prices are at the highest level, more higher than what at least I have seen even in the last few years. It's very hard to predict when one goes up, other comes down, but they kind of balance things out.

That is how at least we have been able to manage the volati- volatility in that business and still make margins on that product because it's very core for us, and it impacts not just the building block, but also all the downstream products which we do in our Fine Fine Chemicals. Uh—

Yes, sir. That's perfect.

Sir, on our revenues in the rest of the world has seen strong growth. Are there any new geographies that we are focusing on and do you want to probably throw some light there?

Because

we have Japan, we have Southeast Asia, and particularly in our Nutrition and Personal Care businesses, we are getting good traction from Japan, Korea, and Southeast Asian markets. That is one factor which is showing the sudden rise of rest of the world.

Understood. Sir, in this inflationary environment, our Specialty Chem EBITDA margins are at about 26%, 26.5%.

What do you think is the sustainable margin here?

We've been pretty consistent in saying for last six quarters now that the sustainable margin for our Specialty Chemical portfolio as a whole should be between 23% to 25%, post adjustment of the corporate overheads. This 27% when you adjust for that lands at around 25%, which is what we have been maintaining for last I think five or six quarters now.

We are confident of maintaining the EBITDA margin in Specialty Chemicals at that level going forward as well. Obviously, there will be some positive forces, some negative forces.

Positive is the fast growth of CDMO business within that, while on the negative side, of course, there could be some pressure on pyridine cost and some other derivatives that we do. These forces kind of balance out each other.

We keep focusing on the cost optimization as well to ensure that that business remains 25%+ EBITDA margin.

Perfect, sir. Thank you, sir.

Hi team. Good evening.

Congratulations on a decent set of numbers. A few clarifications.

First on the smaller agro contract that we executed last year, do we have any sense on the scale-up opportunity there? How much can the execution be in FY27 from that molecule?

You had earlier indicated on a larger order versus last year's that's coming up in H2 FY27.

Yeah. We of course are having those conversations with the customer.

The 3 to 4-year outlook they had given us was showing us a path to take it to 4 to 5x of what we did last year. For this year, we are still discussing with them various scenarios, and given the volatility in the agro world, all this disruption, they haven't confirmed the final volumes yet, but we do hope that we'll get at least as much as we got last year.

Hopefully, we should be able to top it up with something more.

All right. Second on the human-grade B3 plant.

If you could just give out the utilization numbers currently and the customer qualification status for the expanded portfolio there and what would be the time to full utilization there?

We had planned to use that plant for two different products. One was PC-grade niacinamide and second was niacin, which goes into food and feed, both applications, roughly 50-50 each.

On the PC-grade niacinamide, which we launched first last year, the scale-up is very, very fast. I think we are already doing almost 50% of what we had estimated in terms of volumes.

On the niacin side, because we started it late, the ramp-up is gradual. At this stage, I would say we are probably projecting for this year getting to at least 30%, 40% of in fact, more probably 40%, 50% of the volumes that we have assumed to come from that plant at the peak level.

Right, sir.

Just one last. Your presentation mentions on some European force majeure events and plant closures.

Which competitors or what capacity has come out of the market and is it permanent or temporary, if you could just help us with some color there?

In the Acetyls business, there were some announcements from European competitors for force majeure for a few weeks, at least the official reason quoted was mechanical failures. I think that is still going on, we will know how long it would be in coming days or weeks.

If you do a quick search, you will find which competitor has announced force majeure.

Sure, sir. Thank you for that.

What is more important just on the last point is that on the back of that, we are able to, and especially with all the hard work our Acetyls team has done, to get our product qualified with almost every customer in Europe. We are hopeful that if this year we will gain volumes in Europe, showing a very healthy growth and will gain market share as well in European market.

All right. That's good to know.

Thank you so much, sir, and wish you all the best for the coming quarters.

Thank you.

Thank you all for joining this call today. We hope we have been able to address your queries.

For further clarification, I would request you to get in touch with me. Thank you once again for your interest in Jubilant Ingrevia Limited.