From Viny, let's go across to Vinati Organics. That's the next management on the show.

The company reported actually a mixed set of numbers. Lower input costs led to strong margin expansion.

To discuss the past quarter and more importantly the way ahead, we have with us Vinati Saraf Mutreja, the Managing Director at Vinati Organics. Hi Vinati, always good to have you on the show.

Thanks a lot for joining in today. Let's focus on the way ahead, and you had mentioned in the past, over the next 3 years or so you're looking at a 20% CAGR growth in terms of revenue, with margins in the vicinity of 26%, 27% or thereabouts.

Let's talk about this year first. How confident are you of that 15% revenue growth that you were talking about for FY26?

The first half of the year has been a mild growth out there. That's why I want to understand for the year what kind of revenue can you do?

Also margins, the first half of the year you have done well out there. It's closer to around 30%, but still you're talking about 27%.

Guidance on both these two parameters.

Sure. Good morning.

See, when I say revenue growth, I think I should correct myself and call it volume growth. Because revenue is a function of volume and price.

While year-on-year and quarter-on-quarter we are seeing volume growth of our products, especially coming from the new products, the additives business as well as from our subsidiary, as well as ATBS now we have started the new line, which just got commissioned a few weeks back. Given all of that, we're seeing volume growth.

Of course, the prices of raw materials have fallen, freight prices have fallen, which has also led to a reduction in prices of my end products, and hence you see a margin expansion as well. It's actually been a very good set of first half, or good Q2, and looking forward to Q3 and Q4 as well.

Okay. Just to revise that then, for this year, if you could talk about volume growth, revenue growth, and margins, just to clear the air, what should the range be now?

Exactly. Volume growth remains 15%.

Like I said, volume coming from our expansion, additional volume coming from the new ATBS line as well as the new products. Revenue growth could be a little less, maybe 10%, 12%, because there is a price correction.

Margins, I would still maintain 27% simply just to be conservative and since we will be entering new markets as well.

Okay. All right.

Talking about expansion then, if I'm not mistaken, I think your phase one of the ATBS capacity has been commercialized this month itself. You could correct me on that.

What is the initial volume there? I think the total capacity was around 10,000 tonnes.

The second capacity will come on stream in April. Are volumes fully booked?

Fully booked at least for phase one is looking good. It has started, yes, in this month, and we are ramping up production since we do have an order backlog, and phase two is set to get commissioned around April-May 2026.

That's right.

Okay. All right.

You're saying that demand is strong enough, right, with

It is a 10,000-tonne expansion, you're absolutely right. That does increase our capacity by 25%.

By 25%. What will be the new capacity then?

40,000. Again, depends on which quality, but 40,000 tonnes, yes, per annum.

All right. Let's talk about a couple of your other products.

MEHQ as well as guaiacol, they have not contributed meaningfully to the revenues. I think they were to do, I think, 350, 400 crores or thereabouts.

What did they do in the past quarter, if you could help us out with that? What is leading to this delay in terms of ramp-up?

Sure. When I say 350, 400 crores, that was the overall revenue projection from VOPL, our subsidiary, which includes at least five or six products, MEHQ and guaiacol being one of them.

The other products which are yet to be commissioned is PTAP, there is 4-MAP, anisole is also yet to be commissioned. It was a combination of these products.

Yes, there has been a delay in MEHQ guaiacol because we did go in with a new process and a new technology, and that is taking some time to stabilize. Having said that, we have got the quality right.

Our samples are approved, in fact, our trial orders on a commercial basis also we have supplied, and they've approved. Next year is looking positive for these products.

Okay. On the antioxidants part, y'all are now producing the largest amount of antioxidants in India?

Absolutely, and we are running at 60% volume capacity utilization. We've also reached profitability in that business.

Antioxidant is looking good, and we are able to compete with imports and given our backward integration into butylphenols and IB, we do have an advantage, and the demand in India for these products is growing compared to other countries.

All right. In the past, we have discussed about this Chinese threat with regard to antioxidants.

You had said that maybe there could be some kind of protection as well was something that you all were lobbying for. How are things looking as of now?

Are imports still a threat? Because at Chinese, the more they produce, you always get a little bit sketchy on that front.

What are the trends you're observing on antioxidants?

The DGTR has recommended an anti-dumping duty on Chinese products as well as products from Singapore, but the Ministry of Finance is yet to revert, we are waiting on that. If that comes in, that'll be a very big positive development, yes.

All right. As a percentage right now, are Chinese imports still coming in?

They're absolutely coming in. We are servicing probably about 40% of the domestic demand and imports are coming in from China, Singapore, Korea.

Okay. All right.

If it comes in, then definitely it will be a positive, because I think antioxidants, as a percentage of your overall revenue, is low teens, it's around 11%, 12%. Could you tell us how do you expect this to scale up?

What is the percentage contribution from antioxidants to the total revenues?

How You're absolutely right. I'm surprised you're getting the numbers so correct.

No, Vinati, I normally get it right, yeah. Correct me on those numbers with regard to how do you see things panning out?

No, no. You're right.

AO is right now 11% to 12% of our revenue. If things go as planned in the future, that could go up to 15%, 16%, again, because ATBS will also contribute to our revenue growth.

Okay. All right.

Got that, Vinati. Good conversation.

I think you've told us in the past that US tariffs is not really hurting you all, right, as of now?

That is correct, because my major export to the US is ATBS and related products, which is under exemption.

Vinati. You've given us a fair idea about business, how do you see things pan out, and as you've mentioned numerous times, 20% revenue growth is what you're looking at for the next 3 years on an annualized basis, with margins closer to around that 26%, 27%.

Wishing you a good day ahead, and we look forward to having a chat with you, Vinati, rather soon. Thanks for joining in.

Thank you. Bye.