Q1 2027 Yasho Industries Ltd Earnings Call

August 3, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to Yasho Industries Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to Yasho Industries Limited Q1 and FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sejal from MERG. Thank you, over to you, Sejal.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now end the conference and hand it over to Ms. Sagel from MUFG. Thank you, and over to you, Sagel.

Speaker #2: Thank you, Danish. Welcome to the Yasho Industries Q1 FY27 earnings conference call. From the management today, we have Mr. Taras Zaveri, Managing Director and CEO, and Mr. Chirag Shah, CFO.

[Analyst] (MERG): Thank you, Danish. Welcome to Yasho Industries Q1 FY27 earnings conference call. From the management today, we have Mr. Parag Jhaveri, Managing Director and CEO, and Mr. Chirag Shah, CFO. Before we proceed with the call, I would like to give a small disclaimer that this call may contain certain forward-looking statements, which are based on business operations and expectations of the company as of today. These statements are not guarantees of future performance and involve risks and uncertainties, which are difficult to predict. A detailed disclaimer has been given in the company's investor presentation, which is uploaded on the stock exchange. Thank you. I would like to hand over the call to Parag sir. Over to you, sir.

Sejal Bhattar: Thank you, Danish. Welcome to Yasho Industries Q1 FY27 earnings conference call. From the management today, we have Mr. Parag Jhaveri, Managing Director and CEO, and Mr. Chirag Shah, CFO. Before we proceed with the call, I would like to give a small disclaimer that this call may contain certain forward-looking statements, which are based on business operations and expectations of the company as of today. These statements are not guarantees of future performance and involve risks and uncertainties, which are difficult to predict. A detailed disclaimer has been given in the company's investor presentation, which is uploaded on the stock exchange. Thank you. I would like to hand over the call to Parag sir. Over to you, sir.

Speaker #2: Before we proceed with the call, I would like to give a small disclaimer that this call may contain certain forward-looking statements, which are based on business operations and expectations of the company as of today.

Speaker #2: These statements are not guarantees of future performance and involve risks and uncertainties which are difficult to predict. A detailed disclaimer has been given in the company's investor presentation, which is uploaded on the stock exchange.

Speaker #2: Thank you. Now I would like to hand over the call to Taras. Over to you.

Speaker #3: Good evening, everyone, and thank you for joining us today. On behalf of Yasho Industries Limited, I warmly welcome all of you to our earnings call for the first quarter of FY26–27.

Parag Jhaveri: Good evening, everyone, and thank you for joining us today. On behalf of Yasho Industries Limited, I warmly welcome all of you to our earnings call for Q1 FY26-27. The last quarter has been a good start to the financial year for the organization. The company achieved its highest quarterly revenue of INR 308 crore, driven by a 42% increase in volume on a year-on-year basis. During the quarter, the company received several approvals from key global customers in our industrial chemical segment. This helps the company increase volume of tech and enhance capacity utilization of our facilities. This increased utilization of our facilities, as well as improved product mix, helped increase our EBITDA margin from 17% to 24%.

Speaker #3: The last quarter has been a good start to the financial year for the organization. The company achieved its highest quarterly revenue of ₹308 crore, driven by a 42% increase in volume on a year-on-year basis.

Speaker #3: During the quarter, the company received several approvals from key global customers in our industrial chemical segment. This helped the company increase volume of tech and enhance capacity utilization of our facilities.

Speaker #3: This increased utilization of our facilities, as well as an improved product mix, helped increase our EBITDA margin from 17% to 24%. Management is confident it can sustain the EBITDA margin of its current quarter going forward, on account of the improved product mix and better capacity utilization, which is backed by commitment from key customers.

Parag Jhaveri: The management is confident to sustain the EBITDA margin of its current quarter going forward on account of improved product mix and better capacity utilization, which is backed by commitment from key customers. Looking at the market condition going forward, approval from key customers, long-term supply contracts, and commitment from marquee customers that the company has in place, our company has revised our FY28 revenue targets to more than INR 1,600 crore. The investment we have made in manufacturing capacity, product development, and customer relationships are helping our organization to scale and pursue larger growth opportunities. The company continue to invest in R&D, which today has more than 50 scientists. Our R&D pipeline is aligned with our customer needs, and we have projects ongoing that will help the organization continue to grow for the coming years to come.

Speaker #3: Looking at the market condition going forward, approval from key customers, long-term supply contracts, and commitment from marquee customers that the company has already placed in place, our company has revised our FY20 revenue target to more than ₹1,600 crore.

Speaker #3: The investment we have made in manufacturing capacity, product development, and customer relationships are helping our organization to scale and pursue larger growth opportunities. The company continues to invest in R&D, which today has more than 50 scientists. Our R&D pipeline is aligned with our customer needs, and we have projects ongoing that will help the organization continue to grow for the coming years.

Speaker #3: We continue to prioritize products that can achieve meaningful scale and contribute significantly to long-term revenue growth. Accordingly, we have decided to enhance our planned capital expenditure for FY27 from ₹125 crore to ₹250 crore.

Parag Jhaveri: We continue to prioritize products that can achieve meaningful scale and contribute significantly to long-term revenue growth. Accordingly, we have decided to enhance our planned capital expenditure for FY27 from INR 125 crore to INR 250 crore. The supporting infrastructure for this CapEx is already in place. The investment will primarily be directed towards constructing two new production building at our Pakhajan facility, which will be dedicated to manufacturing several high potential products already developed through our R&D efforts. Export continue to remain a key pillar of our business, contributing approximately 69% of total revenue. We further strengthen our presence across international markets, particularly in Asia and Africa, while continuing to deepen relationships with customers in our existing geographies. Industrial chemicals remain our primary growth segment, contributing nearly 89% of total revenue during the quarter.

Speaker #3: Supporting infrastructure for this CAPEX is already in place. The investment will primarily be directed towards constructing two new production buildings at our Pakhadan facility, which will be dedicated to manufacturing several high-potential products already developed through our R&D efforts.

Speaker #3: Exports continue to remain a key pillar of our business, contributing approximately 69% of total revenue. We further strengthened our presence across international markets, particularly in Asia and Africa, while continuing to deepen relationships with customers in our existing geographies.

Speaker #3: Industrial chemicals remain our primary growth segment, contributing nearly 89% of total revenue during the quarter. Capacity utilization at our facilities improved to 65%, supported by the successful ramp-up of capacities commissioned at our Pakhadan plant.

Parag Jhaveri: Capacity utilization at our facility improved to over 65%, supported by the successful ramp-up of capacities commissioned at our Pakhajan plant. We also continue to make a good progress on our long-term agreement, and the project remains on a track with commercialization expected in Q1 FY28, in line with the planned execution schedule. We remain committed to delivering sustainable value creation for our investors. Based on current market condition, customer inquiries, and commitments, we are targeting 30% to 40% annual revenue growth over the next few years. I would like to sincerely thank our customers, shareholders, employees, business partners, lenders, and the Board of Viatr for their continued trust and support. With that, I now hand over the call to Ashish, Financial Officer, who will take you through the financial performance for the quarter in greater details. Thank you.

Speaker #3: We also continue to make good progress on our long-term agreement, and the project remains on track with commercialization expected in Q1 FY28, in line with the planned execution schedule.

Speaker #3: We remain committed to delivering sustainable value creation for our investors. Based on current market conditions, customer inquiries, and commitments, we are targeting 30 to 40% annual revenue growth over the next few years.

Speaker #3: I would like to sincerely thank our customers, shareholders, employees, business partners, lenders, and the Board of Directors for their continued trust and support. With that, I now hand over the call to our Chief Financial Officer, who will take you through the financial performance for the quarter in greater detail.

Speaker #3: Thank you.

Speaker #2: Thank you, and good evening, everyone. The company maintained its strong growth momentum in Q1 FY27, reporting consolidated revenue of ₹308 crore. Fourth quarter EBITDA stood at ₹74.42 crore, translating into an EBITDA margin of 24.2%.

Chirag Shah: Thank you. Good evening, everyone. The company maintained its strong growth momentum in Q1 FY27, reporting consolidated revenue of INR 308 crores. For the quarter, EBITDA stood at INR 74.42 crores, translating into an EBITDA margin of 24.2%. The strong profitability was driven by higher volumes, a favorable product mix, improved operating leverage, and disciplined cost management across operations. Based on current outlook, company will endeavor to maintain current margins going forward. Profit after tax for the quarter stood at INR 36 crores, resulting in a PAT margin of 11.7%. An important validation of our progress came during the quarter through the upgrades received from both CRISIL and ICRA, which upgraded our bank loan ratings from BBB+ to A-. Our net debt to EBITDA ratio improved to 1.86x as of 30 June 2026, compared with 3.75x at the end of Q4 FY26.

Speaker #2: The strong profitability was driven by higher volumes, a favorable product mix, improved operating leverage, and disciplined cost management across operations. Based on the current outlook, the company will endeavor to maintain current margins going forward.

Speaker #2: Profit after tax for the quarter stood at ₹36 crore, resulting in a PAT margin of 11.7%. An important validation of our progress came during the quarter through the upgrades received from both CRISIL and ICRA, which upgraded our bank loan ratings from BBB+ to A-.

Speaker #2: Our net debt to EBITDA ratio improved to 1.86 times as of June 30, 2026, compared with 3.75 times at the end of Q4 FY26.

Speaker #2: This reflects the combined impact of higher operating earnings, improved profitability, and disciplined financial management. We also achieved meaningful progress in working capital management. Our working capital cycle improved from 190 days to 143 days, supported by better inventory planning, improved receivables management, and tighter control over cash deployment.

Chirag Shah: This reflects the combined impact of higher operating earnings, improved profitability, and disciplined financial management. We also achieved meaningful progress in working capital management. Our working capital cycle improved from 190 days to 143 days, supported by better inventory planning, improved receivables management, and tighter control over cash deployment. During the quarter, we incurred CapEx of INR 18.73 crores, primarily towards ongoing expansion of our Pakhajan facility. As highlighted earlier, we have increased our FY27 CapEx plan to INR 250 crore in order to support additional manufacturing capacities for upcoming product commercializations. To fund this expansion, the company expects to raise approximately INR 100 crores through borrowings during FY27. Overall, the quarter demonstrates strong profitability, improved leverage metrics, better working capital efficiency, and a significantly stronger financial position.

Speaker #2: During the quarter, we incurred capital expenditure of ₹18.73 crore, primarily towards ongoing expansion of our Pakhadan facility. As highlighted earlier, we have increased our FY27 capital expenditure plan to ₹250 crore in order to support additional manufacturing capacities for upcoming product commercializations.

Speaker #2: To fund this expansion, the company expects to raise approximately ₹100 crore through borrowings during FY27. Overall, the quarter demonstrates strong profitability, improved leverage metrics, better working capital efficiency, and a significantly stronger financial position.

Speaker #2: These improvements provide a solid foundation to support our next phase of growth while maintaining a balanced and disciplined approach to capital allocation. With that, I conclude my remarks.

Chirag Shah: These improvements provide a solid foundation to support our next phase of growth while maintaining a balanced and disciplined approach to capital allocation. With that, I conclude my remarks. We will now be happy to take your questions. Thank you.

Speaker #2: We will now be happy to take your questions. Thank you.

Speaker #1: Thank you so much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone.

Operator: Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question come from the line of Meet Khatri with Nivesak. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Meet Katru Diao with Nivash.

Speaker #1: Please go ahead.

Speaker #4: Yeah. Hi, everyone. Am I audible? Yeah. Yeah. For me, the solution set on good segment numbers. My question is, firstly, this quarter we can see the benefit of the price revision we did in April and also some issues at the operating level, right?

Meet Khatri: Yeah. Hi, everyone. Am I audible?

Meet Katrodiya: Yeah. Hi, everyone. Am I audible?

Chirag Shah: Yes.

Parag Jhaveri: Yes.

Meet Khatri: Yeah. Congratulations on a good set of numbers. Sir, my question is, firstly, this quarter, we can see the benefit of price revision we did in April and also some due to operating leverage. Right? Is it possible for us to maintain the similar set of margins going forward? Let's say, yes, then why are you so much confident on sustaining the margins? Let's say even we see normalization in the supply chain and the pricing, then also you will be able to maintain the margins?

Meet Katrodiya: Yeah. Congratulations on a good set of numbers. Sir, my question is, firstly, this quarter, we can see the benefit of price revision we did in April and also some due to operating leverage. Right? Is it possible for us to maintain the similar set of margins going forward? Let's say, yes, then why are you so much confident on sustaining the margins? Let's say even we see normalization in the supply chain and the pricing, then also you will be able to maintain the margins?

Speaker #4: So, is it possible for us to maintain a similar set of margins going forward? And let's say yes—then why are you so confident about sustaining the margins? Because, let's say even if we see normalization in the supply chain and pricing, will we still be able to maintain the margins?

Speaker #3: Well, first and foremost, the company achieved better performance by selling a higher quantity, rather than through better realization or old stock. So let me clarify that the company itself achieved this with the right product mix and capacity utilization, which has helped us to leverage all our facilities.

Chirag Shah: Well, first and foremost, company achieve the better performance for the selling higher quantity rather than the better realization of the old stock. Let me clarify that the company itself achieve this with the right product mix, capacity utilization, which has helped us to leverage all the facility and not with the stock, what you are concerned. That gives.

Parag Jhaveri: Well, first and foremost, company achieve the better performance for the selling higher quantity rather than the better realization of the old stock. Let me clarify that the company itself achieve this with the right product mix, capacity utilization, which has helped us to leverage all the facility and not with the stock, what you are concerned. That gives.

Speaker #3: And not with the stock, which you are concerned about. So that gives us confidence. Number two, we do have some commitment from our market customers, which is helping give us the confidence to provide the guidance that we will be able to maintain similar EBITDA margins in the coming quarters as well.

Meet Khatri: Okay

Meet Katrodiya: Okay

Chirag Shah: The confidence. Number two, we do have some commitment from our market customers, which is helping us the confidence to give the guidance that we will be able to maintain in the coming quarters also the similar EBITDA margins.

Parag Jhaveri: The confidence. Number two, we do have some commitment from our market customers, which is helping us the confidence to give the guidance that we will be able to maintain in the coming quarters also the similar EBITDA margins.

Meet Khatri: Got it. Wonderful, sir. Again, sir, there were addition of sale by customer this quarter, right? You mentioned in the presentation. Was any part of this offset preemptive buying by customers ahead of any anticipated tariff to increase the inventory like they were making last year, or this amount of volumes can be sustained from customer? Yeah.

Meet Katrodiya: Got it. Wonderful, sir. Again, sir, there were addition of sale by customer this quarter, right? You mentioned in the presentation. Was any part of this offset preemptive buying by customers ahead of any anticipated tariff to increase the inventory like they were making last year, or this amount of volumes can be sustained from customer? Yeah.

Speaker #4: Very wonderful, sir. Secondly, there were additional obstacles from customers this quarter, right? You mentioned this in the presentation. Was any part of these obstacles due to preemptive buying by customers ahead of any anticipated tariff, to add to the inventory?

Speaker #4: Like they were letting last year, or this amount of volumes can be sustained from the customer. Yeah.

Speaker #3: I heard very well said that we have a customer commitment, and we are expecting similar growth in the coming quarters.

Chirag Shah: I have very well said that we have a customer commitment and we are expecting the similar growth in coming quarters.

Parag Jhaveri: I have very well said that we have a customer commitment and we are expecting the similar growth in coming quarters.

Speaker #4: Got it. So, I assume that volumes will continue to grow sequentially, quarter on quarter?

Meet Khatri: Got it. Should I assume that volumes will even grow sequentially quarter on quarter?

Meet Katrodiya: Got it. Should I assume that volumes will even grow sequentially quarter on quarter?

Speaker #3: It should grow.

Chirag Shah: It should grow.

Parag Jhaveri: It should grow.

Speaker #4: Okay, got it, got it. I'm sorry, one last question if I can ask. I thought you had also mentioned that we have fallen to Asian and African geography, right?

Meet Khatri: Okay. Got it. Sir, one last question, if I can ask.

Meet Katrodiya: Okay. Got it. Sir, one last question, if I can ask.

Chirag Shah: Yeah, go ahead.

Parag Jhaveri: Yeah, go ahead.

Meet Khatri: Sir, you have also mentioned that we have forayed into Asian and African geographies, right? This is something new for us. What are the developments there? How are we expecting the income from this geography? If you can explain the margins compared to US and Europe and these two geographies. Yeah.

Meet Katrodiya: Sir, you have also mentioned that we have forayed into Asian and African geographies, right? This is something new for us. What are the developments there? How are we expecting the income from this geography? If you can explain the margins compared to US and Europe and these two geographies. Yeah.

Speaker #4: And this is something new for us. So what are the developments there? What are we expecting from the geography? And if you can explain the margins compared to the US and Europe in these geographies?

Speaker #4: Yes.

Speaker #3: Well, this this is still we are developing the market. We just made made some inroads in this market and we we see a good results and customer acceptance to us.

Chirag Shah: Well, this is still we are developing the market. We just made some inroads in this market, and we see good results and customer acceptance to us. That is a good sign. The margins are at par, I can say that, or maybe slightly lower, but nothing to be an alarming low side.

Parag Jhaveri: Well, this is still we are developing the market. We just made some inroads in this market, and we see good results and customer acceptance to us. That is a good sign. The margins are at par, I can say that, or maybe slightly lower, but nothing to be an alarming low side.

Speaker #3: So that is a good sign, and the margins are at par, I can say that. Or maybe slightly lower, but nothing to be alarmingly low.

Speaker #4: Yeah. Got it. Export let's say see nine percent of the revenue in 67 sorry 69 70 percent of the revenue in Q1. Which is unusually.

Meet Khatri: Got it. Sir, export were, let's say, 69% of the revenue, 69% to 70% of the revenue in Q1, which is unusual. Usually, the export is towards higher side on Q4 and Q1 is little bit deeper for us. Should we assume that export mix will change in FY27 and FY28 towards, suppose, 75% to 80%? Or how are you seeing the export mix for the business?

Meet Katrodiya: Got it. Sir, export were, let's say, 69% of the revenue, 69% to 70% of the revenue in Q1, which is unusual. Usually, the export is towards higher side on Q4 and Q1 is little bit deeper for us. Should we assume that export mix will change in FY27 and FY28 towards, suppose, 75% to 80%? Or how are you seeing the export mix for the business?

Speaker #4: Usually, the export is towards the higher side in Q4, and Q1 is a little bit deeper for us. So, should we assume that export means will change in FY27 and FY28 towards, suppose, 75–80 percent, or how are you seeing the export needs for the business?

Speaker #3: I think in the past, we said that we are expecting exports to grow to the 70–75% range, not 80, 85, or 90. I don't know how you got that number, but we expect—no, I'm just—let's come back to the assumption.

Chirag Shah: I think we will In past also I said that we are expecting export to grow to 70% to 75% range, not 88.5% to 90%. I don't know how you get that number, but we are.

Parag Jhaveri: I think we will In past also I said that we are expecting export to grow to 70% to 75% range, not 88.5% to 90%. I don't know how you get that number, but we are.

Meet Khatri: I was.

Meet Katrodiya: I was.

Chirag Shah: No. Let's come back to assumption.

Parag Jhaveri: No. Let's come back to assumption.

Speaker #3: We we don't make assumption. We we want to be on a grounded and we don't expect anything to grow beyond 70 75 percent exports.

Chirag Shah: We don't make assumptions. We want to be on a grounded, and we don't expect anything to grow beyond 70% and 75% exports.

Parag Jhaveri: We don't make assumptions. We want to be on a grounded, and we don't expect anything to grow beyond 70% and 75% exports. Can we allow someone else to come in line?

Chirag Shah: Can we allow someone else to come in line?

Speaker #3: Can you allow someone else to come in line?

Speaker #4: Yeah, yeah. Sure. Done. Thank you so much.

Meet Khatri: Yeah. It's all done. Thank you so much.

Meet Katrodiya: Yeah. It's all done. Thank you so much.

Speaker #3: Thank you. Thank you.

Chirag Shah: Thank you.

Parag Jhaveri: Thank you.

Operator: Thank you. Our next question comes from the line of Nishita Shashkalesha with Sapphire Capital. Please go ahead.

Speaker #1: Thank you. Our next question comes from the line of Nishita Shashkilesha with Sapphire Capital. Please go ahead.

Nishita Shashkalesha: Yes. Hello. Am I audible?

Nishita Shanklesha: Yes. Hello. Am I audible?

Speaker #5: Yes. Hello. Am I audible?

Speaker #1: Yes.

Chirag Shah: Yes.

Parag Jhaveri: Yes.

Speaker #5: Congratulations on such a good set of numbers. I just wanted a better understanding of the capex that we are doing. So, you mentioned that the total capex amount is going to be ₹250 crores for the two buildings that we are going to build at the Pakarjan facility.

Nishita Shashkalesha: Yes. Congratulations on such good set of numbers. I just wanted a better understanding on the CapEx that we are doing. You mentioned that the total CapEx amount is going to be for INR 250 crore for the two buildings that we are going to build at the Pakhajan facility. Just wanted to understand what are the products that we are going to manufacture there, and what is the opportunity size for those products. What will be the total capacity for this additional CapEx, and what will be the revenue potential at peak utilization of this facility?

Nishita Shanklesha: Yes. Congratulations on such good set of numbers. I just wanted a better understanding on the CapEx that we are doing. You mentioned that the total CapEx amount is going to be for INR 250 crore for the two buildings that we are going to build at the Pakhajan facility. Just wanted to understand what are the products that we are going to manufacture there, and what is the opportunity size for those products. What will be the total capacity for this additional CapEx, and what will be the revenue potential at peak utilization of this facility?

Speaker #5: So, just wanted to understand—what are the products that we are going to manufacture there, and what is the opportunity size for those products? Also, what will be the total capacity for this additional capex, and what will be the revenue potential at peak utilization of this facility?

Speaker #3: Well, currently, we already mentioned about ₹800 crore peak utilization as of 31st March capacity. Going forward, we have already given guidance for 2028 also that we are expecting to grow more than ₹600 crore.

Parag Jhaveri: Well, currently, we already mentioned about INR 800 crore peak utilization as of 31 March capacity. Going forward, we've already given guidance for 2028 also that we are expecting to grow more than INR 600 crore. Peak will be very high, but we will take time to ramp up the facility too. The product that we are going to produce here is all industrial chemical. That we intend to do here. A couple of existing products where the capacity will be increased and some new product has been introduced, so that will be produced here. As far as the capacity is concerned, I'm not sure what capacity. We stopped disclosing the actual capacity of the plants.

Speaker #3: So, the peak will be very high, but we will need to take some time to ramp up the facility too. And the product we are going to produce here is all industrial chemicals that we intend to do here.

Speaker #3: A couple of existing products, where the capacity will be increased, and some new products have been introduced, so those will be produced here. And as far as the capacity is concerned, I'm not sure at what capacity, but we stopped disclosing the actual capacity of the plants.

Speaker #5: Right. And we expect this facility to be operational by Q1 FY28?

Nishita Shashkalesha: Right. We expect this facility to be operational by Q1 FY28?

Nishita Shanklesha: Right. We expect this facility to be operational by Q1 FY28?

Speaker #3: A part of it will be FY28, and part will be somewhere by the end of FY, in the last quarter of FY28. So it will take some time because construction of the building and then the machinery erection and the stabilization will take at least from here 15 months—minimum 15 months.

Parag Jhaveri: A part of it will be FY28 and part will be somewhere in the last quarter of FY28. It will take time because construction, building, and then the machinery erection and the stabilization will take at least 15 months. Minimum 15 months.

Speaker #5: Right. So, we are doing this in two phases. The first phase will be operational by Q1 FY28, and the second phase will be operational by Q4 FY28.

Nishita Shashkalesha: Right. They are doing this in two phases. The first phase will be operational by Q1 FY28 and the second phase is operational by Q4 FY28. Is that understanding correct?

Nishita Shanklesha: Right. They are doing this in two phases. The first phase will be operational by Q1 FY28 and the second phase is operational by Q4 FY28. Is that understanding correct?

Speaker #5: Is that understanding correct?

Speaker #3: Absolutely. Yes. That's wrong.

Parag Jhaveri: Absolutely. Yeah, that's true.

Speaker #5: Right. So, if you can distribute the capex also—like, in the first phase, how much capex are we going to incur?

Nishita Shashkalesha: Right. If you can distribute the CapEx also, like in the first phase, how much CapEx are we going to incur?

Nishita Shanklesha: Right. If you can distribute the CapEx also, like in the first phase, how much CapEx are we going to incur?

Speaker #3: In the first phase, about ₹100 crore. Second phase will be ₹150 crore.

Parag Jhaveri: In the first phase, about INR 100 crore, second phase will be INR 150 crore.

Speaker #5: Okay, okay. Understood. Yeah, yeah. Understood. Yeah, that is excellent. Thank you so much.

Nishita Shashkalesha: Okay. Understood.

Nishita Shanklesha: Okay. Understood.

Parag Jhaveri: Yeah?

Nishita Shashkalesha: Yeah. Understood. Yeah. That was it from my end. Thank you so much.

Nishita Shanklesha: Yeah. Understood. Yeah. That was it from my end. Thank you so much.

Speaker #3: Thank you.

Parag Jhaveri: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, anyone who wishes to ask a question, please press star and one. The next question comes from the line of Parth Agarwal from Bastion Research.

Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Our next question comes from the line of Parth Agrawal from Bastion Research. Please go ahead.

Speaker #1: Please go ahead.

Parth Agrawal: Thank you for the opportunity, and congratulations on the good set of numbers. I have two questions. One is obviously said on the margin that is sustainable level. Parth, we have been asking this question for a long time, and you have always said that it's between 17%, 18% to 20%, but this quarter it's at around 20% to 24%, and you are saying that's sustainable. I just want to understand what has really changed, because historically you have always said that this is the kind of range you were operating at.

Speaker #3: Thank you for the opportunity, and congratulations on the good set of numbers. I just have two questions. So, one is, obviously, you said on the margin that it's at a sustainable level, but Parag, we have been asking this question for a long time, and you have always said it's between 17–18% to 20%. But this quarter it's at around 20–24%, and you are saying that's sustainable.

Speaker #3: So I just want to understand what has really changed, because historically you have always said that this is the kind of range you got, you know, pocketing it.

Speaker #4: Yeah. The first and foremost thing is, say, there's a leverage. The capacity utilization, which was at 50% at the company level, has gone to 65%.

Parag Jhaveri: Yeah. The first and foremost thing is change as a leverage. Capacity utilization, which was at the 50% at the company level, it has gone to 65%. We can increase capacity. Last year also, we did some CapEx, so that has helped us. Number two, the customer offtake has happened, and number three, the product mix has changed to some level. These three factors have helped us, and the underlying factor is our strong R&D support to bring this product online and also to optimizing the processes. Multiple factors are helping us to improve the margin, and we feel that now we should be able to maintain this margin going forward.

Speaker #4: We can increase capacity last year also we did some capex. So that has helped us. Number two the customer offers has happened and the number three the number of you know the product mix has changed.

Speaker #4: To some level. So these three factor has helped us. And the underlying factor is our strong R&D support to bring this product online and also to optimizing the you know the processes so that is the multiple factors are helping us to improve at the margin.

Speaker #4: And we feel that now we should be able to maintain this margin going forward.

Speaker #3: Got it. And also, regarding the new capacity that we are putting in, I remember that you had done some R&D some time back and mentioned that a new molecule was in development and that you would make an announcement about it soon.

Parth Agrawal: Got it. Also, the new capacity that you are putting in. I remember that you had done some R&D some time back, and you said that the new molecule was under development and you would make an announcement around that soon. Is this that new capacity that you are doing for that new molecule that has finally come into the commercial stage or-

Speaker #3: So, is this the new capacity that we are doing for that new molecule that has finally come into the commercial stage, or?

Speaker #4: Yes. Few are for the new molecules, and few are for existing products.

Parag Jhaveri: Yeah. Yes. Few are the new molecules and few for existing products.

Speaker #3: Got it. And is it on the loop editing side, or is it more on rubber chemicals or something?

Parth Agrawal: Got it. Is it on the lube additive side or it's more on the rubber chemicals or something?

Speaker #4: It will—it will be on the industrial chemical side. Sorry to say that.

Parag Jhaveri: It will be on industrial chemical side. Sorry to spoil that.

Speaker #3: Okay. Thank you. Good luck.

Parth Agrawal: Okay. Thank you. Good luck.

Speaker #4: Thank you. Thank you.

Parag Jhaveri: Thank you.

Speaker #1: Thank you. Our next question comes from the line of Poojan Shah with Molecule Venture. Please go ahead.

Operator: Thank you. Our next question comes from the line of Pujan Shah with Molecule Ventures. Please go ahead.

Speaker #4: Right, sir. Thanks for the opportunity. So, my first question pertains to the previous participant. Just to understand, as we have been developing the new molecules, we have always aspired to have molecule sizes of around 50 to 100 crores.

Pujan Shah: Hi, sir. Thanks for the opportunity. My first question pertains to the previous participant. Just to understand, as you have been developing the new molecules, we always expect molecule size of around INR 50 to 100 crores. Has the new molecule been in the range or it has been more than that?

Speaker #4: So are are the the new molecules which been in the range of or it has been more than that?

Speaker #3: Initially, it was in that range only. Let's start pushing in the market. We'll see how the response comes, and then we will think further about whether to increase the capacity or not.

Parag Jhaveri: Initially, it is in that range only. Let's start pushing in the market. We'll see how the response comes. Then we will think further to increase the capacity or not. To begin with, yes, that's the revenue we are expecting from this new molecule.

Speaker #3: But to begin with, yes, that's the revenue we are expecting from this new molecule.

Speaker #4: Okay, got it, sir. And sir, due to our brownfield capex, we are stating our asset turns would be around 2.5 to 3x, as we commissioned our new plant in the same facility for Kajen.

Pujan Shah: Okay. Got it, sir. Sir, we always, due to our Brownfield CapEx, we are stating our acceptance would be around 2.5x to 3x as we commission the new plant in the same facility for Pezen. Should we consider in the same range of commissioning of INR 250 crore of CapEx?

Speaker #4: So, should we consider the same range for commissioning of ₹250 crore of capex?

Speaker #3: I think, yeah, we would like to keep it at two and a half times the capex. So, we should get the revenue.

Parag Jhaveri: I think, yeah, we would like to keep it 2.5 times of the CapEx. We should get the revenue. Yeah, that should be a fair assumption.

Speaker #3: So yeah, that should be the fair assumption.

Speaker #4: And are capacity utilization for the new capex will be around 65–70% in FY29?

Pujan Shah: Capacity utilization for the new CapEx will be around 65% to 70% in FY29?

Speaker #3: For FY27, we are expecting to ramp up to 75% utilization. And then...

Parag Jhaveri: FY27, we are expecting to ramp up to 75% utilization.

Speaker #4: No, no, I'm talking about the new facility which will come up.

Pujan Shah: No, no, I'm talking about the new facility, which will come up.

Speaker #3: New facility, yeah, but see, at the end of the day it will become part of the combined capacity. We will not have a new raw capacity.

Parag Jhaveri: New facility, yeah. See, end of the day, it will become as a combined capacity. We will not have new or old capacity. Everything become one capacity. We want to maintain healthy run rate of 70%, 75%, then that gives us a boost to make a further investment. Unless or until, there's no point making investment. We start looking at an investment once we cross 60%, 65%, looking at. Before we touch to the roof, we want to have our additional capacity available already for us. That was our reason to start construction of the two buildings simultaneously. We know that the first building is probably going to fill completely, and fourth building, we have a number of products which is in pipeline at somewhere at the approval level or some other level.

Speaker #3: Everything will come on capacity. So, if we want to maintain a healthy run rate of 70-75%, then that gives us a boost to make a further investment. Unless and until then, there's no point making an investment.

Speaker #3: So we start looking at a new investment once we cross 60% 65% looking at and then you know the before we talk to the roof we want to have a additional additional capacity available already for us.

Speaker #3: So that was a reason to start construction of the two buildings simultaneously. We know that the first building is the third building called the fill completely.

Speaker #3: And for the fourth building, we have a number of products which are in the pipeline. It's somewhere at the floor level or some other level, so we don't have to wait another 15 months for the capacity to come up.

Parag Jhaveri: We don't have to wait another 15 months for the capacity to come up.

Speaker #4: Got it, sir. Got it. And sir, in the new product, the new agreement that we have entered into in FY20, are we seeing any green shift from other OMC players also to get a contractual agreement for the long term? Or are we getting any new inquiries for which we can have a stable revenue run rate, similar to what we have in the OMC agreement?

Pujan Shah: Got it. Sir, got it. Sir, in the new order, new agreement what we have been entered in effect with KIC, are we seeing any green shifts from other OEM players also to get a long-term contractual agreement? Or we are getting any inquiry for which we can have a stable revenue generate like what we have in term going through agreement?

Speaker #3: I have—I have already—I have already stated in my statement, in my earlier remarks, opening remarks, that the company has a commitment from many more market customers on a long-term supply.

Parag Jhaveri: I have already stated in my statement, in my earlier remarks, opening remarks, that company has a commitment from many more marquee customers on a long-term supply arrangement. The one which we disclosed where the financial involvement there. In the subsequent agreement, there is no financial involvement. We don't have a practice to disclose that. Also we have a kind of NDA interest, we can't name the customer.

Speaker #3: Supply arrangement. So, the one which we disclosed, where the financing involvement is there—in the subsequent agreement, there is no financial element. So, we don't have a practice to disclose that.

Speaker #3: And also, we have a kind of NDA in place, so we can't name the customer.

Speaker #4: Got it. And my last question would be: Have you seen any incremental capacity being added by any Chinese player which can impact our realization going forward?

Pujan Shah: Got it. My last question would be, have you seen any incremental capacity being added by any Chinese player which can impact our realization going forward? Do we see any dumping kind of a situation altogether, or we are very sure about our realization will be stable from here on?

Speaker #4: Do you see any dumping kind of situation altogether, or are we very sure about our realization being stable from here on?

Speaker #3: Well, again, I don't know, I'm repeating this answer. That offers a $12 to $15 billion addressable market. Yesterday, I stated we have become a $220 million dollar company. I don't see that as a challenge, and always, the customers are looking for an alternate supply chain.

Parag Jhaveri: Well, again, I don't know, I'm repeating again and again this answer, of a 12 to 15 billion addressable market, Yasho has started to become $200, $300 million. I don't see that as a challenge. Always the customers are looking for an alternate supply chain. That's not a challenge. We are not aiming immediately go to half a billion dollar revenue. We are just talking about $200, $300 million revenue.

Speaker #3: So that's not a challenge. We are not aiming to immediately go to half a billion dollar revenue. We are just talking about $220 million in revenue.

Speaker #4: Got it, got it. And sir, last time we talked about a price hike of 10% to 15%, which we are going to pass through.

Pujan Shah: Got it. The last time we have talked about a price hike of 10% to 15%, which we are going to pass through. Have we passed through that price hike? Because we have said is that volume growth of 42%, while our revenue has 30% or 60% YOY. Have we passed on the price hike or we are still retaining to keep our customers engaged?

Speaker #4: So, have we passed through that price hike? Because we have said that the volume growth was 42%, while our revenue has achieved a 60% increase.

Speaker #4: So, have we passed on the price hike, or are we still retaining it to keep our customers engaged?

Speaker #3: No, generally we don't do that. We are very firm on our quarterly pricing with customers wherever we have quarterly pricing. So, that has helped us in the mass prices and has helped us in negotiations for the Q1 negotiation, or wherever we have a six-month negotiation.

Parag Jhaveri: No. Generally, we don't do that. We are very firm on our quarterly pricing with customers wherever we have quarterly pricing. That has helped us in the mass prices as well, has helped us negotiation for the Q1 negotiation or wherever we have a six-month negotiation. We had a lot of hint that which way things are, raw material prices are going, and we could negotiate better with our customer.

Speaker #3: So we had a lot of hints about which reactions of prices are going well, and we could negotiate better with our customer.

Speaker #4: Got it. And a similar price has been there, right, in April to June as well? So there is no difference.

Pujan Shah: Got it. Similar price has been there, right? In April to June as well.

Parag Jhaveri: Yes.

Pujan Shah: That is-

Parag Jhaveri: Sir, can I please? If you don't mind, can I come in a queue? Let someone else.

Speaker #3: If you don't, can you come in the queue so someone else can also? Thank you.

Pujan Shah: Sure.

Parag Jhaveri: If you don't mind.

Pujan Shah: Sure. Thank you.

Speaker #2: Thank you. The next question comes from the line of Amar Morya with Lucky Investment. Please go ahead.

Operator: Thank you. Our next question come from the line of Amar Maurya with Lucky Investment. Please go ahead.

Speaker #4: Yeah. Hi, sir. Thanks a lot for the opportunity. Sir, what would be our revenue contribution from the Kajen plant in this particular quarter?

Amar Maurya: Hi, sir. Thanks a lot for the opportunity. Sir, what would be our revenue contribution from Pakhajan plant in this particular quarter?

Speaker #3: Oh good question. Honestly I need to check that but it's a it's a growing quarter on quarter revenue conversion I mean growing from a growing from the Kajen plant.

Parag Jhaveri: Oh, good question. Honestly, I need to check that. It's growing quarter-on-quarter revenue contribution coming, growing from the Pakhajan plant. Since I have only the company-wise number, I don't have a unit-wise number.

Speaker #3: Since I have only the company as a number, I don't have a unit as a number.

Speaker #4: Okay. Okay. But then, when you say that this year as a whole, we are going to have a 75% kind of utilization level, you are talking about the Kajen plant, right?

Amar Maurya: Okay. When you say that this year as a whole, we are going to have a 75% kind of a utilization number, then we are talking about the Pakhajan plant, correct?

Speaker #3: I'm talking about the Yasho. I'm talking about the Yasho Industries capacity utilization. I'm not talking about the single unit capacity utilization.

Parag Jhaveri: No, I'm talking about the Yasho.

Amar Maurya: Okay.

Parag Jhaveri: I'm talking about the Yasho Industries capacity utilization. I'm not talking about the single unit capacity utilization.

Speaker #4: Single unit capacity. Got it, got it. But then, any idea, sir, how the Kajen plant utilization would be in this quarter and this year as a whole?

Amar Maurya: Single unit capacity. Got it. Any idea, sir, how the Pakhajan plant utilization would be in this quarter, in this year as a whole?

Speaker #3: Well, Kajen is ramping up quite well, very well, and that is supporting the overall growth of the company's utilization.

Parag Jhaveri: Yes. Pakhajan is ramping up quite well, very well, that is supporting the overall growth of the company's utilization.

Speaker #4: Okay. Okay. But then, at the end of this year, we'll be at 70% kind of utilization for a Kajen plant.

Amar Maurya: Okay. At the end of this year, we'll be at 70% kind of utilization for the Pakhajan?

Speaker #3: I, I again, I will say about—yes sir, at company level, utilization I will not.

Parag Jhaveri: Again, I will say about Yasho at company level utilization. I will not give.

Speaker #4: Because our WAPI is more or less at 95% to 98% utilization.

Amar Maurya: Because our Vapi is more or less 95% and 98% utilized.

Parag Jhaveri: You can make assumption. I will not make statement.

Speaker #3: You can make assumptions. You can make assumptions. I will not make statements.

Speaker #4: Okay, okay. And this quarter, we had seen a 42% kind of volume growth, correct?

Amar Maurya: Okay. Is it like this quarter we had seen a 42% kind of a volume growth, correct?

Speaker #3: Yes.

Parag Jhaveri: Yes.

Speaker #4: Okay. Okay. So there is a 17–18% price increase. So, is this price increase likely to sustain?

Amar Maurya: Okay. There is a 17% to 18% of price increase. This price increase is likely to sustain?

Speaker #3: Well, as I said earlier, we pass through a price every quarter on quarter. So, generally, our prices are based on road model raw material costing with our long-term suppliers or the market customers.

Parag Jhaveri: This, as I said earlier, we pass through a price every quarter on quarter. See, generally our prices are based on raw material costing with our long-term suppliers or the marquee customers. It's not a market-driven price, but it's a formula-driven price. Price goes up, we get the better, when price goes down, we have to reduce the price. It's as simple as that. Very simple theory here.

Speaker #3: It's not a market-driven price, but it's a formula-driven price. So when the price goes up, we get a better price. When the price goes down, we have to reduce the price.

Speaker #3: It's as simple as that. Very simple theory here.

Speaker #4: Okay, okay. So, in this case, what happens—does your EBITDA per kg remain constant, or does your EBITDA percentage remain constant?

Amar Maurya: In this case, what happened? Your EBITDA per kg remains constant or your EBITDA percentage remains constant?

Speaker #3: The EBITDA percentage remains constant—not per kilogram, but the percentage.

Parag Jhaveri: EBITDA percentage remain constant, not per kg. Just the percentage.

Speaker #4: Percentage remains constant. Fine. Fine. Done, sir. Thank you.

Amar Maurya: Percentage.

Parag Jhaveri: Correct.

Amar Maurya: Fine.

Parag Jhaveri: Yeah.

Amar Maurya: Done, sir. Thank you.

Speaker #3: Thank you. Thank you.

Parag Jhaveri: Thank you.

Speaker #2: Thank you. Ladies and gentlemen, in order to ensure that the management will be able to answer all the questions from the participants, we request you to kindly limit your questions to two questions only per participant.

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management will be able to answer all the questions from the participants, we request you to kindly limit your question to two questions only per participant. If you have a follow-up question, please rejoin the queue. Our next question comes from the line of Disha Jamlia with Trinid Asset Managers. Please go ahead.

Speaker #2: If you have a follow-up question, please rejoin the queue. Our next question comes from the line of Disha Chamria with Trinith Asset Managers.

Speaker #2: Please go ahead.

Speaker #4: And sir, yeah, thank you so much for the opportunity. My line was disconnected, so maybe the session might have been answered, but can you tell me what is the utilization level across the key manufacturing facility during Q1?

Disha Jamlia: Am I audible, sir?

Disha Chamriya: Am I audible, sir?

Parag Jhaveri: Yeah.

Disha Jamlia: Thank you so much for the opportunity. My line is not just connected, so maybe the question might have been answered. Can you tell me what's the utilization level across the key manufacturing facilities during Q1?

Disha Chamriya: Thank you so much for the opportunity. My line is not just connected, so maybe the question might have been answered. Can you tell me what's the utilization level across the key manufacturing facilities during Q1?

Speaker #3: You are not clear, or you have a lot of background noise. Can you please just repeat your questions?

Parag Jhaveri: You are not clear, or you have a lot of background noise. Can you just repeat the questions, please?

Speaker #4: Yes. My question is, what was the utilization level across the key manufacturing facility during quarter one?

Disha Jamlia: Yes. My question is, what was the utilization level across the key manufacturing facilities during Q1?

Disha Chamriya: Yes. My question is, what was the utilization level across the key manufacturing facilities during Q1?

Speaker #3: It's about 65%—60 to 65%.

Parag Jhaveri: It's about 65%. 60% to 65%.

Speaker #4: Got it. And one more question about the specialty product portfolio that we have. What is the revenue contribution from the products commercialized in the last 18 to 24 months, and what do you think the contribution from these products will be in the next two to three years?

Disha Jamlia: Got it. One more question about the specialty product portfolio that we have. What is the revenue contribution from the product commercialized in the last 18 to 24 months, and what is the contribution that you think will be from these products in the next 2 to 3 years?

Disha Chamriya: Got it. One more question about the specialty product portfolio that we have. What is the revenue contribution from the product commercialized in the last 18 to 24 months, and what is the contribution that you think will be from these products in the next 2 to 3 years?

Speaker #3: Well, I think we have gained, over the last two years, almost about 30% revenue contribution coming from a new product line. So, we have grown from ₹600 crore to today ₹850 crore in the last year.

Parag Jhaveri: Well, I think we have gained over last 2 years, almost about 30% revenue contribution comes from a new product line. We have grown from INR 600 crore to today INR 850 crore from last year. All the addition came from the new chemistry. We are expecting the ramping up further. We'll see whatever the growth will come, it will only come from the new product chemistry. It will come from there. No doubt, we launched this sometime product from a different plant, we scale it up depending on the market response. It's difficult to say how quickly, how soon. Whatever new realization will come, it definitely comes from the new chemistry only.

Speaker #3: All addition came from the new chemistry. And then we are expecting to ramp up further. So we see, whatever the growth will come, it will always only come from the new product chemistry; it will come from there.

Speaker #3: No doubt we launched this same product from a different plant some time ago, and then we scaled it up depending on the market response. So it's difficult to say how quickly or how soon, but whatever new realization will come, will definitely come from the new chemistry only.

Speaker #4: Got it. And last question is from the medium term growth perspective. Beyond this FY27 which business verticals like NK Exodise or lubricant Aroma Chemicals specialty intermediatory which which one of these do you see as the largest contributor in the incremental revenue and profit profitability?

Disha Jamlia: Got it. Last question is from the medium-term growth perspective. Beyond this FY27, which business verticals like Antioxidants or Lube Additive, Aroma Chemicals or Specialty Intermediaries, which one of these do you see as the largest contributor in the incremental revenue and profitability?

Disha Chamriya: Got it. Last question is from the medium-term growth perspective. Beyond this FY27, which business verticals like Antioxidants or Lube Additive, Aroma Chemicals or Specialty Intermediaries, which one of these do you see as the largest contributor in the incremental revenue and profitability?

Speaker #3: I think the overall industrial chemical range will give us incremental growth, and we do expect to grow more than 90% in the coming quarters.

Parag Jhaveri: I think all our industrial chemical range will give us the incremental growth, and we expect to grow more than 90% in coming quarters.

Speaker #4: Got it, sir. That was the last question. Could we have a top five or top ten contributors to our revenue numbers?

Disha Jamlia: Got it, sir. Just one last question. Could we have a top five or 10 contributors of our revenue numbers?

Disha Chamriya: Got it, sir. Just one last question. Could we have a top five or 10 contributors of our revenue numbers?

Speaker #3: Yes, you want to have it product-wise?

Parag Jhaveri: You mean to have it product wise?

Speaker #4: No sir. Revenue wise.

Disha Jamlia: No, sir.

Disha Chamriya: No, sir.

Parag Jhaveri: I don't have.

Disha Jamlia: Revenue base.

Disha Chamriya: Revenue base.

Speaker #3: I don't have customers, then. Sorry, sir. Thank you.

Parag Jhaveri: I don't have customers' names. Sorry, sir. Thank you.

Speaker #4: No, no, top five customers' contribution to the revenue side.

Disha Jamlia: No, no. Top five customers' contribution to the revenue, sir.

Disha Chamriya: No, no. Top five customers' contribution to the revenue, sir.

Speaker #3: Well, the top five or topmost customers will have a contribution of about 7% of the revenue.

Parag Jhaveri: Well, top five for topmost customer will have a contribution about 7% of the revenue.

Disha Jamlia: Okay. Got it. Thank you.

Disha Chamriya: Okay. Got it. Thank you.

Speaker #4: Okay, got it. Thank you, sir.

Speaker #3: Thank you.

Parag Jhaveri: Thank you.

Speaker #4: Yeah. Thank you.

Disha Jamlia: Yeah. Thank you.

Disha Chamriya: Yeah. Thank you.

Speaker #2: Thank you. Our next question comes from the line of Ajay with Nivash. Ajay has left the queue. We'll move forward to the next participant.

Operator: Thank you. Our next question comes from the line of Ajay with Nivesak. Ajay has left the queue. We will move forward to the next participant. Our next question comes from the line of Jainam Mandrecha with C9 Family Office. Please go ahead.

Speaker #2: Our next question comes from the line of Janav Mandrecha with C9 Family Office. Please go ahead.

Speaker #5: Hello, sir. Thank you for giving me the opportunity. Congratulations on a good set of numbers. My question was—I wanted to understand, lubricant as a business is very ICE-dependent. What my understanding is, there is a huge use case of lubricants in high-specific vehicles, and now as EVs are sort of ramping up, this sort of segment has some sort of terminal risk. But just wanted to understand, like in last quarters also you have mentioned that we are moving more towards new sort of opportunities.

Jainam Mandrecha: Hello, sir. Thank you for giving me the opportunity. Congratulations on good set of numbers. My question was on, I wanted to understand that lubricant as a business is very high dependent. What my understanding is there is a huge use case of lubricants in high specific vehicles. Now as EVs are sort of ramping up, this sort of segment has some sort of terminal risk. Just wanted to understand, like in last quarter also, you have mentioned that we are moving more towards new sort of opportunities. Can you help me understand what sort of % contribution is coming from these new sort of opportunities, and how does content or value per kg improve, or how does that change once you move from existing sort of product profile to product profile specific to these products, these applications?

Jainam Madrecha: Hello, sir. Thank you for giving me the opportunity. Congratulations on good set of numbers. My question was on, I wanted to understand that lubricant as a business is very high dependent. What my understanding is there is a huge use case of lubricants in high specific vehicles. Now as EVs are sort of ramping up, this sort of segment has some sort of terminal risk. Just wanted to understand, like in last quarter also, you have mentioned that we are moving more towards new sort of opportunities. Can you help me understand what sort of % contribution is coming from these new sort of opportunities, and how does content or value per kg improve, or how does that change once you move from existing sort of product profile to product profile specific to these products, these applications?

Speaker #5: So, can you help me understand what sort of percentage contribution is coming from these new opportunities, and how does content or value per kg improve, or how does that change once you move from the existing product profile to product profiles specific to these new products?

Speaker #5: This applications.

Speaker #3: Well, number one, there are only a few new products that have been launched, so the major growth is coming from existing products. New products will start adding to the revenue, but the churning of the product portfolio is helping us to grow and is contributing to the growth of the company.

Parag Jhaveri: Well, number 1, there are only few new products have been launched. The major growth is coming from an existing product. A new product will be start adding giving us revenue, but the churning of the product portfolio is helping us for the growth of the company. I can say that. That will continuously the product mix and also the growth in existing product. Once we utilize more and more capacity, the margin will be further improved. We expect that. When we leverage from 65% to 75% utilization, automatically the margin should improve because that will cut down our cost. We expect that to continue.

Speaker #3: I can say that, and that will continuously improve the product mix and also the growth in existing products. Once we utilize more and more capacity, the margin will be further improved. We expect that when we leverage from 65% to 75% utilization, automatically the margin should improve.

Speaker #3: Because that will cut down our costs, so we expect that to continue.

Speaker #5: Yes sir. But I wanted to understand like this was question for understanding to like what sort of are businesses dependent on ice specific vehicles or ice specific application?

Jainam Mandrecha: Yes, sir. I wanted to understand, this was a question for understanding to Like what sort of are businesses dependent on ICE specific vehicles or ICE specific applications?

Jainam Madrecha: Yes, sir. I wanted to understand, this was a question for understanding to Like what sort of are businesses dependent on ICE specific vehicles or ICE specific applications?

Speaker #3: Well, honestly speaking, EV could be fit after 15 to 20 years. So, you know, in a 10-year horizon, we don't see that as a threat.

Parag Jhaveri: Well, honestly speaking, EV could be fit after 15, 20 years. On a 10-year horizon, we don't see that as a threat.

Speaker #5: Okay sir. So next question is on so what what we are seeing is there are huge amount of capacities coming in India across package players be it Infinium be it UVs or or like everyone is sort of expanding capacity aggressively.

Jainam Mandrecha: Okay, sir. Sir, next question is on, what we are seeing is there are huge amount of capacities coming in India across additive package players, be it Infineum, be it Lubrizol. Everyone is sort of expanding capacity aggressively. We are expecting our business to grow more on the export side. Just wanted to understand is it that all these domestic opportunities that are coming up, we are able to crack those opportunities, and then we are able to get into their export business, which is sort of creating an opportunity in the export more than the domestic opportunity.

Jainam Madrecha: Okay, sir. Sir, next question is on, what we are seeing is there are huge amount of capacities coming in India across additive package players, be it Infineum, be it Lubrizol. Everyone is sort of expanding capacity aggressively. We are expecting our business to grow more on the export side. Just wanted to understand is it that all these domestic opportunities that are coming up, we are able to crack those opportunities, and then we are able to get into their export business, which is sort of creating an opportunity in the export more than the domestic opportunity.

Speaker #5: But we are expecting our business to grow more on the export side. So, I just wanted to understand: is it that all these domestic opportunities that are coming up, we are able to crack those opportunities, and then we are able to get into the export business, which is sort of creating an opportunity in the export segment more than the domestic opportunity?

Speaker #3: Well, it's always a different product which is sold in some other part of the world, which may not be sold in the country.

Parag Jhaveri: Well, it's always a different product which is sold in some other part of the world which may not be sold in the country. It's all depend on customer, what they want to buy from us. We cannot say that what we are looking, we are seeing a more traction on an export side than the domestic side. Saying that also, our domestic sales are growing, it is not declining. Only the percentage shift is happening, you all don't know there's a growth in domestic sales too. Domestic sales is not flat. It's growing, but growing at a slower speed compared to the export speed.

Speaker #3: It all depends on the customer, what they want to buy from us. So we cannot say what we are looking at, but we are seeing more traction on the export side in the domestic market.

Speaker #3: But saying that, also our domestic sales are growing. It has not declined. Only the percentage shift is happening, but you don't know there is a growth in domestic sales too.

Speaker #3: So domestic sales are not flat. They're growing, but at a slower pace compared to the export growth rate.

Speaker #5: Okay, sir. Those are my questions. Thank you.

Jainam Mandrecha: Okay, sir. Those were my questions. Thank you.

Jainam Madrecha: Okay, sir. Those were my questions. Thank you.

Speaker #3: Thank you.

Parag Jhaveri: Thank you.

Speaker #2: Thank you. Our next question comes from the line of Rohit Sinha with Sunidhi Securities. Please go ahead.

Operator: Thank you. Our next question comes from the line of Rohit Sinha with Suniti Securities. Please go ahead.

Speaker #6: Yeah, thank you for taking my question, sir. One question: as you have indicated, you are seeing 30% plus kind of growth for the next two to three years.

Rohit Sinha: Yeah. Thank you for taking my question, sir. One question, as you have indicated that 30% plus kind of growth you will be seeing for next two, three years. Just wanted to know how the price volatility plays a role in this growth percentage which we are talking.

Speaker #6: So, I just wanted to know how price volatility plays a role in this growth percentage that we are talking about.

Speaker #3: Well again let me address that though. Now the future growth is coming more from commitment from the customer rather than the spot selling. So we are moving towards the contractual long term supply agreement side more and more than the spot growth where the customer come and buy on a weekly basis monthly basis.

Parag Jhaveri: Well, again, let me address that now the future growth is coming more from commitment from the customer rather than the spot selling. We are moving towards a contractual long-term supply agreement side more and more than the spot growth, where the customer come and buy on a weekly basis, monthly basis. Here, the margins remains stable because there is a formula where which, what we're working. That should remain stable to a more or so, but you can't predict what will happen down the road one or two year. The kind of contract we are getting in has a formula, and that is helping us to maintain our margins.

Speaker #3: So here the margins remain stable because there is a formula with which you are working. And so that should remain stable more or less, but you can't predict what will happen down the road, one or two years.

Speaker #3: But the kind of contract we are getting in has a formula, and that is helping us to maintain our margins.

Speaker #6: And sir, these contracts which we are having, I mean especially for the export market, what is the normal timeline when these contracts get revised?

Rohit Sinha: Sir, these contracts which we are having, especially for the export market, what is the normal timeline when these contracts get revised? I mean, on a December ending or March ending kind of.

Speaker #6: I mean on a December ending or March ending kind of.

Speaker #3: So these contracts are maybe ongoing, which we call an evergreen, unless we both decide to split. And here, the pricing is for three months or six months as well.

Parag Jhaveri: These contracts are ongoing. We call it an evergreen, unless and until we both decide to split. Here the pricings are 3 months or 6 months pricing. There are some fixed annual contract, which is there for a 2 years, 1 year, like that also. We have multiple way of the customer decide how they want to proceed on the contract.

Speaker #3: And there are some fixed tenure contracts, which are for two years, one year, like that also. So, we have multiple ways for the customer to decide how they want to proceed with the contract.

Speaker #6: Okay. Okay. And on the margin side, as you indicated, because of the better utilization, we have this sort of margin expansion, and this is looking sustainable.

Rohit Sinha: Okay. On the margin side, as you indicated that because of the better utilization we have this sort of margin expansion and this is looking sustainable. Does that mean that further improvement in the margin, in the utilization level might have some room for further margin expansion? Not in the near term, maybe next 1 and a half, 2 years.

Speaker #6: So does that mean that further improvement in the margin at the utilization level might have some room for further margin expansion? Not in the near term—maybe in the next one and a half to two years.

Speaker #3: Again, this is part of our effort to achieve a better outcome, but one can't promise how things will play out in the market tomorrow.

Parag Jhaveri: Again, this is a kind of our effort to achieve a better thing, one can't promise tomorrow how the things will play out in the market. Okay. What crisis will or the new crisis will pop up, no one knows. Since we are into the global, more and more getting into global market, we have to align with it, we need to be keep eye open. I don't want to say that, I will say that we like to maintain this margin rather than to grow this margin. Okay. For me to maintain this margin for next 2, 3 years is very crucial. We'll talk about the growing further from there.

Speaker #3: Okay, what crisis will come up next or what new crisis will crop up, no one knows. Since we are more and more involved in the global market.

Speaker #3: So we have to align with it. And we need to keep an eye open. So I don't want to say that, but I will say that we like to maintain this market rather than to grow this margin.

Speaker #3: Okay, for me to maintain this margin for the next two to three years is very crucial. Then we'll talk about growing further from there. Thank you.

Rohit Sinha: Thank you.

Parag Jhaveri: Okay. Thank you.

Speaker #2: Our next question comes from the line of Shivam Vashi with Inga Venture. Please go ahead.

Operator: Our next question comes from the line of Shivam Vashi with Inga Ventures. Please go ahead.

Speaker #6: Hi, good afternoon, sir. First up, congratulations on the great set of numbers for the quarter. Sir, your numbers suggest that whatever work you have been doing in terms of R&D over the last couple of years has paid off.

Shivam Vashi: Good afternoon, sir. First up, congratulations on the great set of numbers for the quarter. Sir, your numbers always tell whatever work you have been doing in terms of R&D also over last one couple of years has paid off. Just picking up from your last quarter presentation where you mentioned that a good amount of investment was done in the R&D facility that has come up at Pakhajan plant. Just want to understand, can you, sir, share some few thoughts on your R&D, how from here on you will go about between investments also done in the R&D?

Speaker #6: And just picking up from your last quarter presentation, where you mentioned that a good amount of investment was done in the R&D facility that has come up at the Pakhajan plant.

Speaker #6: So, just want to understand—can you share a few thoughts on your R&D, you know, how from here on you will go about new investments also done in the R&D?

Speaker #3: Well I think R&D is the backbone of the company not from today's and past but we started in more and more the last five six years in R&D.

Parag Jhaveri: Sir, I think R&D is the backbone of the company, not from today's but from past that we started emphasizing more and more for last five, six years in R&D. Looking at the opportunity, we have decided to set up our facility at Pakhajan today. We have shut Vapi also, and we have diverted all the efforts to the Pakhajan facility. We will keep on investing there. We just started a pilot facility at Pakhajan to support the R&D because the scaling up is very crucial. That we also invested quite a good amount of money. We will not stop over there because there are a lot of good opportunities, the demand, the request, coming from customers for different chemistry. I think we are geared up for that.

Speaker #3: And, looking at the opportunity, we had decided to scale up the facility at Pakhajan today. We are short WAPI also, and we diverted all the efforts to the Pakhajan facility.

Speaker #3: So, we will keep on investing there. We just started a pilot facility at Pakhajan to support the R&D, because scaling up is very crucial.

Speaker #3: So, we have also invested quite a good amount of money. And we will not stop there, because there are a lot of good opportunities, with demand and requests coming from customers for different chemistry.

Speaker #3: So I think we are geared up for that. We are very well placed today. In this segment, whether it's the rubber, lubricant, or some performance chemicals, all the segments—people have requested new chemistry. Something is getting obsolete, something is getting banned.

Parag Jhaveri: We are very well-placed today in the sales segment of dairy, rubber lubricant, or some personal care chemicals. All the segments, people have a request, new chemistry, something getting obsolete, something getting banned. Our team is working continuously on that kind of requests and chemistry, what is coming on our desk.

Speaker #3: So our team is working continuously on that kind of request and connecting what is coming to our desk.

Speaker #6: So, sir, you mentioned that you are getting new requests. Is it the existing set of customers making these requests, or do you also find new customers, new inquiries, a new set of customers telling you—can you work on a new product line? Do completely new customers come to you, or is it only existing customers who largely interact with you on the R&D level?

Shivam Vashi: Sir, you mentioned getting new requests. It is the existing set of customers' request, and also do you find new customers, new inquiry, new set of customers telling you that, Can you work on new product line? Completely new set of customers do come to you, or it is only existing customers who largely interact with you on a starting level?

Speaker #3: Now, a lot of times, a new set of customers comes, looking at our chemistry profile and the process profile. They understand what we're doing, and based on that, a lot of times, new customers come to us with their requests.

Parag Jhaveri: No, a lot of times new set of customer comes looking at our chemistry profile, the process profile, what they understand, what we are doing, and based on that, a lot of times new customer comes to us for the request.

Speaker #6: So yeah.

Shivam Vashi: So-

Parag Jhaveri: That helps us to grow wider spread or width much more efficiently and helps to maintain the steady growth.

Speaker #3: And that helps us to grow wider, spread our wings much more efficiently, and helps to maintain steady growth.

Speaker #6: So is this from this sir is this safe to assume that the new market customers that you mentioned that you acquire is has come because of all this efforts that that you have mentioned?

Shivam Vashi: From this, is it safe to assume that the new marquee customers that you have mentioned, that your inquiries have come because of all these efforts that you have mentioned?

Speaker #3: Absolutely. Absolutely. They were they were looking at us. They were talking to us after after they saw us also the Pakhajan facility once then we invest into the R&D facility the strength of our turnaround everything is helping us to grow the business.

Parag Jhaveri: Absolutely. They were looking at us, they were talking to us after the tour of our Pakhajan facility once, then we invest in the R&D facility, the strength of our turnaround, everything is helping us to grow the business.

Speaker #6: Okay, great. Thank you so much, sir. This helps. Thank you.

Shivam Vashi: Okay, great. Thank you so much. This helps.

Parag Jhaveri: Thank you.

Speaker #3: Okay yes.

Shivam Vashi: All the best.

Speaker #2: Thank you. Next question comes from the line of Lovish Soin with Beaumont Capital Management. Please go ahead.

Operator: Thank you. Next question comes from the line of Lovish Soyin with Beaumont Capital Management. Please go ahead.

Speaker #7: Hi. Thank you for the opportunity. Sir, actually, I just wanted to understand the margin expansion that we have seen this quarter a little better.

Lovish Soyin: Hi. Thank you for the opportunity. Sir, actually, I wanted to just understand the margin expansion that we are seeing this quarter a little better. I was seeing that the mix of industrial segment and exports are fairly stable over the last few quarters. Is the margin expansion due to the fact that new industrial products that we have launched, are they better margin than the older products that we have? Or is it something entirely different?

Lovish Soien: Hi. Thank you for the opportunity. Sir, actually, I wanted to just understand the margin expansion that we are seeing this quarter a little better. I was seeing that the mix of industrial segment and exports are fairly stable over the last few quarters. Is the margin expansion due to the fact that new industrial products that we have launched, are they better margin than the older products that we have? Or is it something entirely different?

Speaker #7: I was seeing that the mix of industrial, recommend, and exports are fairly stable over the last few quarters. So, is the margin expansion due to the fact that new industrial products that we have launched are of better margin than the older products that we have, or is it something entirely different?

Speaker #3: No, you are right. A couple of products which we have launched in the last 12 months have a better margin, and uptake has increased.

Parag Jhaveri: No, you are right. There are a couple of products which we have launched in the last 12 months has a better margin, and the uptake has increased. That is helping us to grow, improve the margin and also the capacity. There are multiple reasons, but the major reason is the new products. Second is you are utilizing the facility to the optimal level on that side.

Speaker #3: So that is helping us to grow. Improve as a margin and also the capacitor is in the you know the there are multiple reason but the major reason is the new product and second is you are utilizing the facility to the optimal level on that side.

Speaker #7: Understood. So, can you help us understand what could be the differential? I'm not asking for any particular numbers, but if you can help us understand—if, let's say, 'x' was 100 as the profit in old products, what could be the profit in our new products? Just to help us understand the scale of potential that we can have from these products.

Lovish Soyin: Understood. Sir, can you help us understand what could be the differential? I'm not asking for any particular numbers, if you can help us understand, if, let's say, X was 100 was the profit in old product, what could be the profit in our new product? Just to help us understand the scale of potential that we can have from these products.

Lovish Soien: Understood. Sir, can you help us understand what could be the differential? I'm not asking for any particular numbers, if you can help us understand, if, let's say, X was 100 was the profit in old product, what could be the profit in our new product? Just to help us understand the scale of potential that we can have from these products.

Speaker #3: Maybe about 10–12 percent, 10 to 12 percent difference.

Parag Jhaveri: Maybe about 10%, 12%, 10% to 12% difference.

Speaker #7: So you're saying that margins in these are 10, 10, 12 percent better than the older products?

Lovish Soyin: You're saying that margins in these are 10%, 12% better than the older products?

Lovish Soien: You're saying that margins in these are 10%, 12% better than the older products?

Speaker #3: Yes.

Parag Jhaveri: Yes.

Speaker #7: Understood, understood. And sir, I think you also mentioned that with long-term customers you are able to have better arrangements, and the share of the spot revenue that you have in the spot pricing is coming down.

Lovish Soyin: Sir, I think you also mentioned that with long-term customers, you are able to have a better arrangement and the share of the spot revenue that you have and the spot pricing is coming down. Can you help us understand how much would that be this quarter versus, let's say, last few quarters? That could also be a significant margin improvement over the next few quarters as well.

Lovish Soien: Sir, I think you also mentioned that with long-term customers, you are able to have a better arrangement and the share of the spot revenue that you have and the spot pricing is coming down. Can you help us understand how much would that be this quarter versus, let's say, last few quarters? That could also be a significant margin improvement over the next few quarters as well.

Speaker #7: So, can you help us understand how much that would be this quarter versus, let's say, the last few quarters? Because that could also be a significant margin improver over the next few quarters as well.

Speaker #3: I think in the past, we used to be in the range of about 30 to 40 percent. We have grown to more than 50 percent today as a long-term, you know, on a quarterly, six-monthly, or yearly basis pricing customer.

Parag Jhaveri: I think in the past we used to be in the range of about 30% to 40%. We have grown to more than 50% today as a long-term, the quarterly base or six-monthly or yearly based pricing customer.

Speaker #7: Understood. And I think, sir, I heard you mention that industrial chemicals would account for 90 percent of revenue going forward. I just wanted to confirm if I heard that correctly.

Lovish Soyin: Understood. I think, sir, I heard that you mentioned that industrial chemicals would be 90% of revenue going forward. Just wanted to understand if I heard that correctly.

Lovish Soien: Understood. I think, sir, I heard that you mentioned that industrial chemicals would be 90% of revenue going forward. Just wanted to understand if I heard that correctly.

Speaker #3: Yes, that's true. See, here also, besides this, the margin is also helping us over the two subsidies, which are getting settled very well.

Parag Jhaveri: Yes. That's true. Here, besides this, margin also helping us, our two subsidiary, which is getting settled very well. Europe, we started before 3 years, I think so. Now we have two of our own employees stationed there. They are helping to grow business, establish. Now people know that the Yasho's European people are running the show. In US, we started at the wrong time. We had a tariff issue. Tariff is gone. US subsidiary is also picking up quite well, sales side. This effort also giving a boost to the growth.

Speaker #3: In Europe, we started this about three years ago, I think. And now we have two of our own employees stationed there. They are helping to grow the business and establish it. Now people know that Yasho’s European people are running the show.

Speaker #3: And in USA we started at a wrong time. We had a tariff issue. Tariff has gone. So USA subsidies also picking up quite well sales side.

Speaker #3: So this fact is also giving a boost to the growth.

Speaker #7: Got it, sir. Got it. Great. Thank you, sir, for the opportunity to answer. All the best for the future.

Lovish Soyin: Got it, sir. Great. Thank you, sir, for the opportunity to understand. All the best for the future.

Lovish Soien: Got it, sir. Great. Thank you, sir, for the opportunity to understand. All the best for the future.

Speaker #3: Thank you.

Parag Jhaveri: Thank you.

Speaker #2: Thank you. Our next question comes from the line of Amar Morya with Lucky Investment. Please go ahead.

Operator: Thank you. Our next question comes from the line of Amar Maurya with Lucky Investment. Please go ahead.

Speaker #8: Hi, sir. Thanks a lot for the opportunity again. Now, your guidance of 1,600 growers does not include these two buildings which are going to get commissioned in FY28, right?

Amar Maurya: Hi, sir. Thanks a lot for the opportunity again. Now your guidance of INR 1,608 crores does not include these two buildings which are going to get commission in FY28, right? One is at-

Speaker #8: One is in the starting of the year. So typically, when you say ₹100 crore of Q1 first-phase capex, normally you have two “X” kind of asset term.

Parag Jhaveri: No

Amar Maurya: starting of the year.

Parag Jhaveri: No.

Amar Maurya: Typically when you say INR 100 crore of Q1 first phase CapEx, normally you have 2x kind of offset term. That is the kind of revenue potential for the building 1?

Speaker #8: So, that is the kind of revenue potential for Building 1.

Speaker #3: Yeah, somewhere of that scale.

Parag Jhaveri: Yes, somewhere of that range.

Speaker #8: Got it. Got it. And for these two buildings, you already have the customers identified. Things are contracted there as well, right?

Amar Maurya: Got it. For these 2 buildings, you already have the customers identified, things are contracted there as well, right?

Speaker #3: Customer identified commitments are there.

Parag Jhaveri: Customer identified, commitments are there.

Speaker #8: So basically, once the facility comes, it can go to minimal utilization very fast, given that the customers are already lined up.

Amar Maurya: Basically once the facility comes, it can go to a minimal utilization very fast given that the customers are already lined up.

Speaker #3: Yes.

Parag Jhaveri: Yes.

Speaker #8: Got it. So typically then, in this case, your guidance will increase. There is an upside; there is an upside risk, which we have because of these two facility commissioning and utilizing faster.

Amar Maurya: Typically then, in this case, your guidance will increase. There is an upside risk which we have because of these two facility commissioning and utilizing faster, right?

Speaker #8: Right.

Speaker #3: Absolutely. So that's the whole key thing—how quickly we can start construction and commission the plant. That's very, very good for us. Very, very good for us.

Parag Jhaveri: Absolutely. That's the whole key thing, how quickly we can start construction and commissioning the plant. That's very, very good for us. You can see the growth coming from FY29. Real growth coming from FY29.

Speaker #3: And you can see the growth coming from FY29—real growth coming from FY29.

Speaker #8: Correct. Correct. Correct. Thank you, sir. Thank you.

Amar Maurya: Correct. Thank you, sir.

Parag Jhaveri: Thank you.

Speaker #3: Thank you.

Amar Maurya: Thank you.

Speaker #8: Thank you.

Speaker #2: Thank you. Our next question comes from the line of Aman Thadani with Solidatory Investment Management. Please go ahead.

Operator: Thank you. Our next question comes from the line of Aman Thadani with Solidarity Investment Managers. Please go ahead.

Speaker #6: Hello. Am I audible?

Aman Thadani: Hello, am I audible?

Speaker #3: Yes.

Parag Jhaveri: Yes.

Speaker #6: Yeah, thank you for the opportunity, and many congratulations to the Yasho team for a great set of numbers. Sir, my first question is that in your investor presentation, you had alluded that there were some additional offtake from existing customers, and that additional offtake will keep on continuing over the next few quarters as well.

Aman Thadani: Yeah. Thank you for the opportunity and many congratulations to the Yasho team for a great set of numbers. Sir, my first question is that in the investor presentation, you had alluded that there was some additional offtake from existing customers and that additional offtake will keep on continuing over the next few quarters as well. It seems a bit structural in nature now, which indicates that Yasho is gaining credibility very much. Just wanted to understand that whom are we gaining market share from? A follow-up to that would be, which export market is really driving this growth?

Speaker #6: So it seems a bit structural in nature now, which indicates that Yasho is gaining credibility very much. So just wanted to understand whom we are gaining market share from, and a follow-up to that would be: which export market is really driving this growth?

Speaker #3: Well honestly, whom I'm gaining, I don't know. Okay. Whom they are replacing, I have no clue. But yeah, I can say that the market we are gaining is in the USA, which we were a bit slow in because of the tariff issues last year.

Parag Jhaveri: Well, honestly, whom I'm gaining, I don't know. Okay. Whom we are replacing, I don't have a clue. Yeah, I can say that the market what we are gaining is in USA, which we were a bit slow because of the tariff issues last year. Once tariff has gone, our sales to the US has increased sizable. Also our sales in different territories like Middle East and Europe is also growing quite well. Although I can say that territories where we were present have started growing very well on that part of it. Also we are making inroads into a couple of Asian and African markets, which was dominantly controlled by our Asian major players. Yeah, we are gaining that also, Thadani.

Speaker #3: So, once the tariff has gone, our sales to the US have increased sizably. Also, our sales in a different tariff, like the Middle East and Europe, are also growing quite well.

Speaker #3: So, all I can say is that territories where we were present have started growing very well on that part of it. And also, we are making inroads into a couple of Asian and African markets, which were dominantly controlled by our Asian major players.

Speaker #3: So, yeah, we are gaining that also, passion.

Speaker #6: Got it. Sir, my second question is, given the war situation and that the macro is really uncertain, are you facing any inventory procurement risk? How do you think about keeping a sufficient inventory level so that production doesn't get disrupted? Because this quarter, I think the working capital has really come down.

Aman Thadani: Okay. Sir, second question is now given the war situation and the macro is really uncertain, are you facing any inventory procurement risk? How do you think about keeping sufficient inventory levels so that maybe the production doesn't get disrupted? Because this quarter, I think the working capital has really come down. Just wanted to understand from that angle from you.

Speaker #6: So, I just wanted to understand that angle from you.

Speaker #3: Honestly, this has come—if I would say honestly, the inventory base came down probably because we did not have sufficient raw material coming in.

Parag Jhaveri: Honestly, this has come. If I would say honestly that inventory days came down, probably we did not have a sufficient raw material coming in. We are facing a genuine supply issue on our raw material side. Also, we are facing an issue on our export side where we don't get the booking of our containers, so we sometimes have to wait for three weeks, four weeks time as that becomes longer period just recently. There is no ships available, no booking is available. It's a challenging time for us, and we are working hard to ensure that we have sufficient raw material in our factory. Our team is really working, I will say working hard, but they're struggling a lot day to day, which was not the case. Also, our logistics team is struggling for getting export container booking, which is also a challenge lately.

Speaker #3: We are facing a genuine supply issue on our raw material side. Also, we are facing an issue on our export side where we don't get the booking of our containers.

Speaker #3: So sometimes we wait for three weeks, four weeks' time, as that becomes a longer period just recently. So there are not enough ships available.

Speaker #3: Not enough booking is available, so it's a challenging time for us. We are working hard to ensure that we have sufficient raw material in our factory.

Speaker #3: And our team is really working—I will say working hard—but they are struggling a lot day to day, which was not the case before. Also, our logistics team is struggling to get export container bookings, which has also been a challenge lately.

Speaker #3: So there are a lot of challenges, but I—that's what I... I had to thank my team, that they really worked hard in this difficult time and helped us to ensure that we fulfill our customers' requirements.

Parag Jhaveri: There are a lot of challenges, but that's why I thank my team that they really worked hard in this difficult time and helping us to ensure that we fulfill our customer's requirement.

Speaker #6: Got it, sir. Got it. I'll get back in the queue, and many congratulations again to the team. Thank you so much for answering questions.

Aman Thadani: Got it, sir. I'll get back in the queue and many congratulations again to the team. Thank you so much for answering my questions.

Speaker #3: Thank you.

Parag Jhaveri: Thank you.

Speaker #2: Thank you. Our next question comes from the line of Sivanu with 3X Capital. Please go ahead.

Operator: Thank you. Our next question comes from the line of Shubham with 3i Capital. Please go ahead.

Speaker #8: Yeah. Hope I'm audible, and great set of numbers. I just had a couple of clarification questions. You revised your capex guidance from 125 crores to 250 crores.

[Analyst] (3i Capital): Yeah. Hope I'm audible. Great set of numbers, sir. I have just couple of clarification questions, like, sir, you revised your CapEx guidance from 125 INR crore to 250 INR crore, and your 600 INR crore revenue guidance without excluding the next 125 INR crore guidance. Am I right?

[Analyst] (3X Capital): Yeah. Hope I'm audible. Great set of numbers, sir. I have just couple of clarification questions, like, sir, you revised your CapEx guidance from 125 INR crore to 250 INR crore, and your 600 INR crore revenue guidance without excluding the next 125 INR crore guidance. Am I right?

Speaker #8: And your one Rs 1,600 crore revenue guidance is without new, without excluding the next 125 share guidance. Am I right?

Parag Jhaveri: Yes, sir.

Speaker #3: Yes sir.

Speaker #8: And what will be the total revenue potential of the total ₹250 crore capex guidance? Including...

[Analyst] (3i Capital): What will be the total revenue potential of total 250 INR crore CapEx guidance including-

[Analyst] (3X Capital): What will be the total revenue potential of total 250 INR crore CapEx guidance including-

Speaker #3: Two and a half times. Two and a half times.

Parag Jhaveri: Two and a half times.

Speaker #8: Okay. Great. And I want to and what was the total what was the revenue growth in Q1 FY27 in the domestic market?

[Analyst] (3i Capital): Okay, great. What was the revenue growth in Q1 FY 2027 in the domestic market?

[Analyst] (3X Capital): Okay, great. What was the revenue growth in Q1 FY 2027 in the domestic market?

Speaker #3: About 10 percent.

Parag Jhaveri: About 10%.

Speaker #8: That means our total growth comes from the export market.

[Analyst] (3i Capital): That means our total growth comes from export market.

[Analyst] (3X Capital): That means our total growth comes from export market.

Speaker #3: Yes sir.

Parag Jhaveri: Yes, sir.

Speaker #8: And.

[Analyst] (3i Capital): My last-

[Analyst] (3X Capital): My last-

Speaker #3: I wanted total growth. Major growth came from the export market.

Parag Jhaveri: I won't say total growth. Major growth came from export market.

Speaker #8: Okay. And my next question on the delivery time—in the last call, it was mentioned our delivery time increased to around 8 to 10 weeks. What was that delivery time last July?

[Analyst] (3i Capital): Okay. My next question on our delivery time. In the last call, you mentioned our delivery time increased around eight to 10 weeks. What was that delivery time in the last July?

[Analyst] (3X Capital): Okay. My next question on our delivery time. In the last call, you mentioned our delivery time increased around eight to 10 weeks. What was that delivery time in the last July?

Speaker #3: 10.

Parag Jhaveri: Ten.

Speaker #8: 10.

[Analyst] (3i Capital): Ten?

[Analyst] (3X Capital): Ten?

Speaker #3: Yeah.

Parag Jhaveri: Yeah.

Speaker #8: Yeah, great. Thank you, sir. Best of luck.

[Analyst] (3i Capital): Yeah. Great. Thank you, sir.

[Analyst] (3X Capital): Yeah. Great. Thank you, sir.

Speaker #3: Thank you. Thank you.

Parag Jhaveri: Thank you.

[Analyst] (3i Capital): Great numbers.

[Analyst] (3X Capital): Great numbers.

Speaker #2: Thank you. Our next question comes from the line of Dakshesh Gupta, an Individual Investor. Please go ahead.

Parag Jhaveri: Thank you.

Operator: Thank you. Our next question comes from the line of Daksh Gupta, an individual investor. Please go ahead.

Daksh Gupta: Hello, sir. Good afternoon. Am I audible?

Speaker #3: Hello sir.

Speaker #6: Good afternoon. Am I audible?

Speaker #3: Yes sir.

Parag Jhaveri: Yes, sir.

Speaker #6: Sir, first of all, congratulations on the great set of numbers—really a lot back. I wanted to ask, as you ramp up your utilization from 60 percent currently to 75 percent in the year ahead, is the 24 to 25 percent margin a possibility?

Daksh Gupta: Sir, first of all, congratulations on the great set of numbers. Really applaud that. I wanted to ask, as you ramp up your utilization from 60% currently to 75% in the year ahead, is a 24%, 25% possibility of margins?

Speaker #3: I think we will, we should be able to maintain this margin for FY27. We will try our best to maintain this margin.

Parag Jhaveri: I think we should be able to maintain this margin for FY27. We will try our best to maintain this margin.

Speaker #6: And sir, just a follow-up on an earlier participant question. As you said, the Pakhadan facility first phase will come online from Q1 of FY28, and the ₹1,600 crore guidance does not include the additional revenue that we will get from it.

Daksh Gupta: Sir, just a follow-up on an earlier participant question. As you said that Pakhajan facility first phase will come online from Q1 of FY28, 1,600 crores of guidance does not include the additional revenue that we get from it. Am I correct?

Speaker #6: Am I correct?

Speaker #3: Yes sir.

Parag Jhaveri: Yes, sir.

Speaker #6: And so, is it fair to assume that by using 50 percent of the capacity of Phase One in FY28, we should be able to get ₹100 crore revenue from it?

Daksh Gupta: Is it fair to assume that using 50% of the capacity of the phase I in FY28, we should be able to get 100 crore revenue from it?

Parag Jhaveri: No, I won't.

Speaker #6: I wanted.

Speaker #3: In FY20.

Daksh Gupta: In FY20.

Speaker #6: We will try our best to get that. We'll try our best to get that. And sir, I just wanted to ask another question: we have our customers lined up for the new facilities that will be coming online.

Parag Jhaveri: We will try our best to get that.

Daksh Gupta: Sir, just wanted to ask another question, that we have our customers lined up for the new facilities that will be coming online. We do not have to search for customers to fill our capacities. Am I right?

Speaker #6: We do not have to search for customers to fill our capacities. Am I right?

Speaker #3: Yeah. To up to 60–65 percent, we have customers. The balance we need to search.

Parag Jhaveri: Up to 60%, 65% we have customer. The balance we need to search.

Speaker #6: Of the complete ₹250 crore capex, 65 percent we are booked.

Daksh Gupta: Of the complete INR 250 crore CapEx, 65% we are booked.

Speaker #3: Yes sir.

Parag Jhaveri: Yes, sir.

Speaker #6: Okay, sir. Congratulations, sir. Hope that you will perform better.

Daksh Gupta: Okay, sir. Congratulations and hope that you will perform better.

Parag Jhaveri: Thank you, sir.

Speaker #3: Thank you sir. Thank you.

Daksh Gupta: Thank you.

Speaker #2: Thank you. Our next question comes from the line of Ricken Shah with the Boeing AMC. Please go ahead.

Operator: Thank you. Our next question comes from the line of Rikin Shah with the Boing AMC. Please go ahead.

Speaker #7: Hi, thanks for taking my question. Congrats on an amazing set of numbers. My question is: I'm trying to understand the broader story or, you know, growth landscape from you. So, we have invested a lot of our time and R&D and effort in, you know, the industrial side.

Rikin Shah: Hi, thanks for taking my question. Congrats on an amazing set of numbers. My question is, I am trying to understand the broader story for growth landscape from here. We have invested a lot of our time and R&D and effort in the industrial side, and we are finally reaping the benefits of that. A few years down the line, when we truly make that space of achieving an INR 200 to 300 million size in the lube additive space, what sort of investments or things we are doing today to tackle newer chemistries or other areas of growth, apart from the lube additive side?

Speaker #7: And we are finally reaping the benefits of that. But, you know, a few years down the line, when we truly make that space of, you know, achieving our 200–300 million, you know, size in the low budget, you know, what sort of investments or things are we doing today to tackle newer chemistries or other areas of growth?

Speaker #7: Apart from, you know, the low-budgeted side.

Speaker #3: Well, this 250 crore is not meant for new alone. It will be meant for the mix of chemistry, which is a part of our industrial chemical.

Parag Jhaveri: Well, this INR 250 crore is not meant for lube alone. It will be meant for the mix of chemistry, which is a part of our industrial chemical. For us, lube is no doubt a significant segment, but it is not the only segment. We are putting emphasis on a lot of different chemistry. Similar chemistry process-wise, we are working on it. R&D is always working on a new opportunity which comes on our desk, either through new customers or from a set of existing customers, we can do that. We very much believe in the diversification of our range that can help us to sustain. In case something happens in one of the segment, other segment keep us floating. And that has helped the company to grow in last 30 years. We started with the food and aroma.

Speaker #3: So we are for us new is no doubt a significant segment but it's not the only segment. So we are putting emphasize on a lot of different chemistries similar chemistry process wise we are working on it.

Speaker #3: So R&D is always working on a new opportunity which comes on our desk. So either through new customers or from a set of existing customers, we can do that.

Speaker #3: So we very much believe in a diversification of our range that can help us to sustain in case something happens in one of the segments; the other segments keep us floating.

Speaker #3: And that has helped the company to grow in the last 30 years. We started with food and aroma, we started specialty, we went to food, aroma, rubber, lubricants again. Now we speak into the two, so that keeps on growing.

Parag Jhaveri: We started specialty, we went to food, aroma, rubber, lubricants. Again, now we step into the lube. That's why the diversification help us.

Speaker #3: And that's why the diversification helps us.

Speaker #7: Okay, got it, sir. That's all from my side.

Rikin Shah: Okay, got it, sir. That's all from my side. Thank you.

Speaker #3: Thank you.

Speaker #2: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for the closing remarks.

Operator: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for the closing remarks. Thank you, and over to you, team.

Speaker #2: Thank you, and over to you, team.

Speaker #3: Thank you very much, ladies and gentlemen, for attending today's call. We appreciate your time. Have a good day.

Parag Jhaveri: Thank you very much, ladies and gentlemen, who attend this today's call. I appreciate the time. Have a good day.

Speaker #2: Thank you so much, sir. Ladies and gentlemen, on behalf of Yasho Industries Limited, that concludes today's conference call. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you so much, sir. Ladies and gentlemen, on behalf of Yasho Industries Limited, that concludes today's conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Yasho Industries Ltd Earnings Call

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