Good afternoon, everyone. Thank you for joining the Q4 FY '26 earnings conference call of Vinati Organics Limited.

We have with us from the management today, the CEO and Managing Director of the company, Vinati Saraf Mutreja; CFO of the company, Mr. Gulshan Sakhuja; and AGM Corporate Finance, Mr.

Aditya Churiwala. We will begin the call with opening remarks from the management, followed by a Q&A session.

Before beginning the call, I would like to state that the concall may contain forward-looking statements which are subject to management's discretion and judgment, and may not materialize as projected given the business risk associated. Now without further ado, I would like to hand over the call to the management.

Over to you, Gulshan. Thank you.

Thanks, Archit. Good afternoon, everyone, and thank you for joining us for FY '26 results conference call.

I will begin with an overview of our financial performance for the quarter and the fiscal year ended 31st March 2026. On a standalone basis in Q4 FY '26, net income including other income increased by 17%, rising from 538 crores in Q3 FY '26 to 631 crores.

EBITDA grew by 20% to 203 crores compared to 169 crores in the previous quarter. Profit after tax registered a strong growth of 27%, increasing from 108 cr to 137 cr.

For the full year, net income including other income remained stable at 2,281 cr. However, EBITDA grew by 17% to 741 cr from 630 cr in FY '25, while PAT increased by 18% to 488 cr compared to 415 cr in the previous year.

On a consolidated basis in Q4 FY '26, net income including other income increased by 16%, rising from 540 cr in Q3 FY '26 to 624 cr. EBITDA grew by 15% to Rs 191 cr compared to 165 cr in the previous quarter.

Profit after tax registered a strong growth of 23%, increasing from 101 cr to 123 cr. For the full year, net income including other income remained stable at 2,280 cr.

However, EBITDA grew by 13% to Rs 707 cr from 625 cr in FY '25, while PAT increased by 9% to 444 crores compared to 405 crores in the previous year. Moving to operational performance, our business segments continue to perform resiliently in the context of prevailing market conditions, supported by operational improvements and a strong customer-centric approach.

Our global market share in ATBS remained robust, reinforcing our leadership in this segment. While demand softened from October 2025, impacting our ability to meet the full-year target, we have witnessed a recovery and expect approximately 15% to 20% volume growth in FY '27.

Our butylphenol segment delivered steady performance in FY '26, and we anticipate moderate growth in FY '27, supported by improving demand conditions. IB and HPMB reported a stable performance during the year, and we expect both products to achieve double-digit growth in FY '27.

IBB volume declined by approximately 20% compared to FY '25. This is partly attributable to the unavailability of key raw materials involved in the manufacturing of IBB on account of Iran war.

This constraint has now been allied, and production and sales are back on track. Our customized product segment recorded strong growth of 10% year-on-year, driven by increased customer demand.

Our antioxidant business delivered an impressive 15% revenue growth in FY '26 despite a challenging market environment. We expect this segment to maintain strong momentum in FY '27, supported by market expansion and ongoing product development.

Overall, we are targeting approximately 15% volume growth at the company level in FY '27. Coming to the capex expenditure, our investment strategy remains closely aligned with our long-term growth objectives.

In FY '26, we incurred approximately 270 crores in capex, including investment in VOPL towards capacity expansion, new product development, and operational scalability. We successfully completed our ATBS capacity expansion during the year, significantly enhancing our ability to meet growing demand.

Our commitment to innovation remains strong. The R&D team is currently working on new products, which upon successful trials, would form the basis for the next phase of capex investment in the coming quarters.

Looking ahead, we have earmarked approximately 200 to 250 crore of capex for FY '27, ensuring continued investment in capacity expansion, innovation, and operational efficiency. Under VOPL, a 100% subsidiary of VOL, a few products require process re-engineering, which is expected to take approximately six months, with revenue contribution anticipated from Q3 of FY '27 onwards.

We would like to highlight that the company has been achieving all its expansion goals through internal accruals, and it remains debt-free. In addition, the company has a treasury of approximately 190 crores as on 31st March 2026.

The Board of Directors have recommended a dividend of Rs 8.50 paisa per equity share of face value of Rs 1 for the financial year '25-'26, subject to the approval of the shareholders at the ensuing AGM. Thank you.

I now welcome your questions for the Q&A session. Over to Archit.

Thanks for the opportunity, and congrats on good set of numbers. First question is in terms of the new products that we are planning to introduce.

These products, which particular user segment are being targeted, and when do we expect the projects to be commissioned? Because as of now, beyond the current ATBS capacity expansion and few other products, we don't have any other products which are under commissioning.

Just a broader understanding on the future growth prospects from these products and capex perspective. Thank you.

Hello, good afternoon. Some of the products that are under implementation, most of them are downstream processes, as in downstream integration for our products, value-added products, where we are catering to segments such as the fragrance industry, such as personal care, antioxidants in the food additives business.

Most of them, I think what's important, they are niche chemicals. We are targeting niche chemicals going forward.

Some are also in the plastic segment.

Right. These particular projects will come online sometime during FY '27, and slowly we will find the revenues coming from FY '28?

In this current financial year '26-'27, you can expect two or three products are in a pipeline, and it is expected to come in the second half of this financial year.

Revenues in '28, you're right.

Perfect. Thanks.

The second question is if you can just provide us FY '26 revenue breakup across the large number of products, so that would be really helpful. Thank you.

If I go with the breakup in a percentage terms, you can say one-third approximately it's attributable to the ATBS, and 45% you can say in that range. And 15% to 20% is in the form of antioxidants, AO.

10% to 12% in the form of AB, 10% to 12% in IBB, and rest others that you can say the customized and other products.

Perfect. Just one last I'll squeeze in.

In terms of the raw material availability and supply chain, both in terms of imported products and our exports, what is the current situation that we are facing over the last couple of months? Any challenges thereof, and how have we mitigated them?

Thank you.

At the initial stage, if I talk about when this war was started in the month of Feb, we earlier thought there would be some challenges that would come in the form of availability of raw material and logistics with. Somehow in the initial stages we saw some issues, but now overall everything has been cleared and now we haven't not been facing any sort of non-availability of raw material.

As far as that logistics is concerned, it is feeling.

Yes, quite stable right now.

Perfect. Thanks a lot for answering all the questions and all the best.

Thanks for the opportunity, ma'am. My first question is on the ATBS side.

We have indicated that there were some volume impact as well as price-related impact that we would have seen in the current fourth quarter. Can you give some sense that okay, obviously it seems that in the US market we would have seen the benefit of the pro-oil policy of the US government, but it was looking like from the various data points that the volume demand in non-US market, it was a bit slow or low.

Any challenges that we are facing in terms of the ATBS volume in the non-US market now, and what would be our outlook?

See, ATBS remains a stable product. While there are fluctuations geographically and more related to stocking, de-stocking, generally I still think given the oil prices and I think this product is still on a growth path in a two-digit number annually.

Having said that, we have expanded our capacity. There is one or two smaller capacity that has come up.

Given all of that, I think, from an ATBS business purely, I would personally expect say 15% volume growth year-on-year, at least for the next 3 years, and which would take care of our expansion. Sure.

Regards to ATBS again, the second phase of the expansion, whether that would be required in this current financial year or not?

Actually it will come into effect by October, but yes, I think more utilization will happen next financial year, more in FY '28.

Sure. One clarification, ma'am: whether you mentioned that Veeral Organics would not be contributing anything in this current financial year, FY '27?

As far as our 100% subsidiary VOPL is concerned, this year means there was a hardly any sale of around 10 cr in '26.

In '27, we are expecting about 100, 120 20 crores after the re-engineering is done.

In second Yeah,

yeah, please. From third quarter from third quarter onwards, second quarter onwards, you will see the revenue coming from our 100% subsidiary.

Correct.

Okay. There were two major project groups.

One was like MEHQ, guaiacol first one, which is already been commissioned. Whether that revenue stream would be coming at least in this current financial year, ma'am, for 100 crore kind of?

Yes, that is absolutely the main one.

Sure. This last one, you mentioned about the capex of around 250 odd crore.

If you can just elaborate what are the kind of the capex projects that you would be considering this year?

Here, they would be value-added products of our existing products going into industry such as food additives, fragrance industry, plastic additives.

Okay. Which value chain basically, ma'am, that I wanted to know?

I'll tell you. We will be making a derivative of MEHQ.

We will be making derivatives of butylphenols. We will be adding a couple of antioxidants.

Future, now again, we have not announced out of this capex, but going forward, we may be looking at more monomers and polymers also, but that is not confirmed yet.

Okay. Just last one clarification from my side.

You possibly somewhere mentioned that the butylphenol capacity is dry, fully utilized currently. Are we thinking of expanding that further from the current 50,000 odd tons capacity, or we are thinking of debottlenecking the external scale and using captively more so that our growth plans would be achieved?

I think butylphenol capacity currently is around 70%, 70%-75% utilization. Honestly, I don't have space for increasing there.

If the AO demand goes up, it will be first used for captive. It means that cost of external sales and then we will see.

Sure. Yeah.

Thank you, ma'am. Wishing all the best.

Good afternoon, ma'am, and thank you very much for the opportunity. Just first clarification was I wanted to know what is the use case of ATBS, like EOR and water treatment and other uses?

The uses already, you are telling me.

No, I mean the percentage-wise.

See, it depends on the polymers, right? ATBS-based polymers, ATBS can be combined with acrylamide, it can be combined with acrylic acid with other monomers.

It can go up to 10% to 33% of these polymers can have ATBS or AMPS component. Those polymers, like in oil recovery, they are used for oil drilling, but it has these polymers have other uses also, such as in superabsorbents or personal care industry or detergent or the mining industry or water treatment also.

Do you see any big opportunity in LNG extraction, since lot of share is probably expected to shift to US in that?

Are you talking about shale gas?

Yes. Yes.

It is used in fracking.

It is used in fracking also, but see, we don't supply to these guys directly. We supply ATBS to the polymer manufacturers, and those polymer manufacturers would be combining it with other monomers, making a polymer and then supplying to say ONGC or Halliburton or Schlumberger.

Okay. Have you seen any price changes in ATBS and IBB compared to the last year?

It remains stable. We follow our formula-based pricing mechanism, and that's where it is at.

Thank you so much. That was from my side.

Good afternoon. Thank you so much.

Just to clarify, this capital work in progress of 210 crores approximately at the end of the year, which specific projects would that pertain to right now? One extension is of the 250 crore capex we are projecting for next year, FY '27, how much of that would come in VOPL, the subsidiary?

If we bifurcate this 250 crore what we have projected for FY '26-'27, in VOPL, it will go around 40 to 50 cr, not more than that. And 200 would be under

Vinati Organics,

the main holding company. If I talk about the CWIP of 200 cr, out of that, 60 to 70 crore is yet to be capitalized under that subsidiary, 100% subsidiary, that is VOPL.

The rest, there are certain projects which are in under the implementation stage and under the CWIP, that's why it has been shown under CWIP. This 120-25 crores of CWIP in VOPL, this will get capitalized in this financial year.

Okay. ATBS capacity right now is 50,000 tons, is it, after the Phase 1 commissioning?

Yes. See, again, it depends on which molecular weight we are talking about.

Earlier, it used to be the lower molecular weight, it was 50,000. Today, the demand is more for the higher purity, then it becomes 40,000.

Yes, each phase is 10,000 tons.

Got it. Would it be possible to just sum up how much the two phases together are costing in terms of capex?

I know we had given some numbers previously, but just to get an update on that number.

It's

around 250 cr, you can say that.

I thought 300, but

250 to 300 cr, including second phase.

Around 300 crores, got it. Thank you so much.

Just one last thing from my side. With regard to the process re-engineering at VOPL, any further color you might be able to share which products specifically and what exactly is required there in terms of taking it forward?

We went for a new process, and we faced some teething troubles there. Then we went to the main consultant and realized some re-engineering is required.

The plant is presently under re-engineering, and hence it should be done by September. We expect production from October and sales so on and so forth.

Okay. The anisole, we are proposing to produce in-house, or sourcing from outside?

Anisole, we will be producing in-house.

Okay. Got it, ma'am.

Thank you so much, and wish you all the best.

Thanks for the opportunity. I have two quick questions.

In VOPL, the line of products that were planning earlier, within which I believe 4-MAP is facing certain challenges due to backward integration done by a few customers, that's what we heard. Have we made any plans to discontinue that, or would we be still going ahead with the same line of products?

If yes, then where are we in commissioning of 4-MAP and isoamylene derivatives?

Isoamylene derivatives has been dropped. As of now, we are not pursuing.

We are making a couple, actually that's why I'm listing a couple, PA. Isoamylene has been dropped, the tertiary amine alcohol as well as PTAP.

4-MAP also we will produce. I have not heard of any customer backward integrating.

In fact, we may make something from that product. None of this is dropped.

The plans remain the same.

Sure, ma'am. Ma'am, also for the same kind of gross block addition that we were envisaging earlier, roughly 500 odd crores if I recall correctly, the asset turn we were planning earlier was around 1 time.

Should that would be the same in in projections for us?

It will remain 1:1.

Got it. One last final one.

On antioxidants, I believe that the plan that we had was obviously to consume butylphenols internally, and that would have dropped the potential of butylphenols external sales, and in turn we would have had a bit more extra on antioxidants, let's say around 700-800 crores kind of revenue of 3 years. Just wanted to clarify if that also is on track, and if it's 700-800 odd crores, when do we plan to achieve that scale in revenues?

That would be the last one. Thank you, ma'am.

It's on track, both AO and butylphenol, means it would be in the range of 800 to 900 cr. You will see that in next 2 years.

Sure, sir. Thank you.

Thanks.

Hello. Hi.

My first question is on the ATBS capacity utilization, current capacity utilization, and do we have any order backlog till now? My second question is more on the industry level.

The sector had faced many headwinds in terms of channel de-stocking, pricing pressures, demand softness, Chinese overcapacity.

Can you hear me now?

Hello.

Yes, please. Yeah.

My first question was on the ATBS capacity utilization, and is there any order backlog for ATBS? My second question is more on the industry levels.

The sector had faced many headwinds, such as channel de-stocking, pricing pressure, Chinese overcapacity, US demand softness. Where is the industry headed now, and where does Vinati Organics stand among these parameters?

See, ATBS presently, we are running at, I would say, about 80% capacity utilization, 75 even after the expansion. We're doing pretty good in that regard.

What was your second question? The industry growth, I mentioned earlier, ATBS does see double-digit industry growth year-on-year given its varied applications as well as use in oil and gas.

Yeah. My second question was more in terms of sectoral headwinds that the company has been facing say for last couple of years.

What are your views? How long will this headwinds continue, and are we on the recovery path in terms of channel de-stocking, pricing pressure, dumping from China?

What's your take on ADD on antioxidants, if the matter is still pending, are we positive on it?

Sure, sure. We did not hear back for the ADD on antioxidants, which means it was rejected.

We have reapplied again for it because we have a strong case. I believe in the period, about 80% or 90% applications of ADD were rejected, and the Ministries of Commerce is in talks with the Ministry of Finance to give an explanation.

Nevertheless, we have reapplied, and if it is to come through, it will still take another 6 to 8 months or 9 months for us to hear anything. Talking about the headwinds, yes, the sector has seen a lot of cyclicality in the last few years.

Cycles have shortened, people overreact, demand, supply. Suddenly the customers panic, and they want to buy a lot, and then suddenly they realize they have overstocked.

The same with raw material pricings, the fluctuations are steeper than it used to be earlier, as well as with logistics. I think on the whole, our company has managed these fluctuations quite well.

Given that the products that we are in, we still have strong positions, and we are able to maintain our margins. We're able to pass on the price decreases and increases, same for logistics cost.

That puts us in a reasonably good position. We've constantly kept adding products, and we continue to do so without debt, and that will remain the policy going forward as well.

Understood. Thank you so much.

Thank you so much for the follow-up. Just one clarification on the margin trajectory.

We saw sharp expansion in margins through most of last year. How are we seeing the environment this year?

What's the outlook for margins for the upcoming year? Thank you so much.

I think I've maintained EBITDA margin of 26% to 27%, because, given expansions, new products, raw material fluctuations, I think that's a reasonably achievable EBITDA margin on a long-term basis.

Understood. Thank you so much.

Hello. Thank you so much for allowing me to ask the question.

Is my voice audible?

Congratulations for a good set of numbers. Ma'am, as you mentioned that there's cyclicality that we've seen in the past couple of years, from a longer-term perspective, if we were to look at the business in the next, say, 2 to 5 years, are we looking to diversify in faster-growth chemicals or any inorganic expansion by taking on more debt?

Or are we not looking to go a little bit aggressive?

We are looking at organic expansion. We have a good pipeline of products, products under commissioning, as well as products in the R&D stage.

We do feel every year we should be investing around 250 crore or 300 for the next 3 to 5 years. That's a growth trajectory that we are looking at.

Okay. Thank you so much, ma'am.

Just one more question. What is the current capacity utilization for the AO plant?

I believe it was 50% when we posted a 70% revenue growth in FY '25.

Yes, FY '26 has been similar to FY '25, maybe 5% growth or something.

Okay. Why have we not been able to see the amount of growth that we were anticipating?

Very severe

competition from China in antioxidants, and hence the applications for the ADD. That situation hasn't changed.

They are undercutting and selling quite aggressively. Okay.

Okay. Thank you so much, ma'am.

Thank you.

Yeah. Thank you.

Thank you for taking the interest and asking probing questions. We look forward to hosting you again.

Thank you.

Thank you.