Q1 2027 Mitsu Chem Plast Ltd Earnings Call

August 18, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to Mitsu Chem Plast 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 Mitsu Chem Plast Limited Q1 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 this 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 Mr. Karan Thakur from Kirin Advisors. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to Mitsu Chem Plast Limited Q1 FY 2027 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 this 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 Mr. Karan Thakur from Kirin Advisors. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this 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 hand the conference over to Mr. Karan Thakur from Kiran Advisors. Thank you, and over to you, sir.

Speaker #2: Thank you. On behalf of Kiran Advisors, I welcome you all to the conference call of Mitsu Chem Plast Limited with the management team. We have Mr. Manish Dadia, Managing Director and Chief Financial Officer, and Ms. Kashmira Dadia, Vice President, Finance and Accounts.

Karan Thakur: Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Mitsu Chem Plast Limited. From the management team, we have Mr. Manish Dedhia, Managing Director and Chief Financial Officer, and Ms. Kashmira Dedhia, Vice President, Finance and Accounts. With that now, I hand over the call to Mr. Manish Dedhia for opening remarks. Over to you, sir.

Speaker #2: We will now hand over the call to Mr. Manish Dadia for the opening remarks. Over to you, sir.

Speaker #3: Thank you. Good afternoon, everyone. It is a pleasure to welcome all investors, analysts, and participants to the Mitsu Chem Plast Limited Q1 FY27 earnings conference call.

Manish Dedhia: Thank you. Good afternoon, everyone. It is a pleasure to welcome all investors, analysts, and participants to the Mitsu Chem Plast Limited Q1 FY27 earnings conference call. We sincerely appreciate your continued support and interest in our company. Q1 FY27 reflected continued progress for Mitsu Chem Plast Limited, with focus on strengthening our manufacturing capabilities, improving operational efficiencies, and supporting growth across our diversified product portfolio. During the quarter, the company continued to build on its capabilities across industrial packaging, healthcare, infrastructure, and other value-added applications. We are also pleased to announce a proposed addition of 3,550 metric ton per annum to our existing manufacturing capacity of 32,450 metric ton per annum overall. This expansion is aimed at strengthening our ability to cater to growing demand across key product segments and supporting the company's long-term growth plans.

Manish Dedhia: Thank you. Good afternoon, everyone. It is a pleasure to welcome all investors, analysts, and participants to the Mitsu Chem Plast Limited Q1 FY 2027 Earnings Conference Call. We sincerely appreciate your continued support and interest in our company. Q1 FY 2027 reflected continued progress for Mitsu Chem Plast Limited, with focus on strengthening our manufacturing capabilities, improving operational efficiencies, and supporting growth across our diversified product portfolio. During the quarter, the company continued to build on its capabilities across industrial packaging, healthcare, infrastructure, and other value-added applications. We are also pleased to announce a proposed addition of 3,550 metric ton per annum to our existing manufacturing capacity of 32,450 metric ton per annum overall. This expansion is aimed at strengthening our ability to cater to growing demand across key product segments and supporting the company's long-term growth plans.

Speaker #3: We sincerely appreciate your continued support and interest in our company. Q1 FY27 reflected continued progress for Mitsu Chem Plast Limited, with a focus on strengthening our manufacturing capabilities, improving operational efficiencies, and supporting growth across our diversified product portfolio.

Speaker #3: During the quarter, the company continued to build on its capabilities across industrial packaging, healthcare, infrastructure, and other value-added applications. We are also pleased to announce a proposed addition of 3,550 metric tons per annum to our existing manufacturing capacity of 32,450 metric tons per annum overall.

Speaker #3: This expansion is aimed at strengthening our ability to cater to growing demand across key product segments and supporting the company's long-term growth plans. Our existing capacity utilization stood at 64% in FY26, providing a strong base for further product and capacity expansion.

Manish Dedhia: Our existing capacity utilization stood at 64% in FY26, providing a strong base for further product and capacity expansion. Our diversified product portfolio continues to remain a key strength. We operate across blow molding, injection molding, and custom molding applications, serving industries including pharmaceuticals, chemicals, agrochemicals, FMCG, food, healthcare, and other industrial segments. The company currently operates four manufacturing facilities with 53 blow molding machines and 22 injection molding machines, and installed capacity of more than 32,450 metric ton per annum. Healthcare furniture remains an important growth opportunity for the company through our Furnastra brand. Furnastra is focused on innovative and durable hospital furniture components with an emphasis on quality, ergonomic design, and customer-centric solutions. We continue to see opportunity to strengthen this vertical and expand its market presence.

Manish Dedhia: Our existing capacity utilization stood at 64% in FY 2026, providing a strong base for further product and capacity expansion. Our diversified product portfolio continues to remain a key strength. We operate across blow molding, injection molding, and custom molding applications, serving industries including pharmaceuticals, chemicals, agrochemicals, FMCG, food, healthcare, and other industrial segments. The company currently operates four manufacturing facilities with 53 blow molding machines and 22 injection molding machines, and installed capacity of more than 32,450 metric ton per annum. Healthcare furniture remains an important growth opportunity for the company through our Furnastra brand. Furnastra is focused on innovative and durable hospital furniture components with an emphasis on quality, ergonomic design, and customer-centric solutions. We continue to see opportunity to strengthen this vertical and expand its market presence.

Speaker #3: Our diversified product portfolio continues to remain a key strength. We operate across blow molding, injection molding, and custom molding applications, serving industries including pharmaceuticals, chemicals, agrochemicals, FMCG, food, healthcare, and other industrial segments.

Speaker #3: The company currently operates four manufacturing facilities, with 53 blow molding machines and 22 injection molding machines, and an installed capacity of more than 32,450 metric tons per annum.

Speaker #3: Healthcare furniture remains an important growth opportunity for the company through our Pharnastra brand. Pharnastra is focused on innovative and durable hospital furniture components, with an emphasis on quality, ergonomic design, and customer-centric solutions.

Speaker #3: We continue to see opportunities to strengthen this vertical and expand its market presence. Our packaging portfolio also remains an important area of focus, with continued emphasis on products such as paint containers, jerry cans, and specialized caps and closures.

Manish Dedhia: Our packaging portfolio also remains an important area of focus, with continued emphasis on products such as pails, containers, jerry cans, and specialized caps and closures. These initiatives are aligned with our broader transformation strategy focused on operational excellence, data-driven marketing, scientific innovation, and empowered teams. This company also continued to maintain a strong export presence across 17 countries, supported by a diversified customer base across pharmaceutical, healthcare, chemical, FMCG, and other industries. Our in-house R&D design and value engineering capabilities further support our ability to develop customized and value-added solutions for customers. The company delivered a strong financial performance during Q1 FY2027. Total income grew 11.62% year on year, while EBITDA increased by 209.50%, supported by improved operating efficiencies and a stronger product mix. Net profit increased by 566.23% year on year, reflecting a significant improvement in overall profitability.

Speaker #3: This initiative is aligned with our broader transformation strategy focused on operational excellence, data-driven marketing, scientific innovation, and empowered teams. The company also continued to maintain a strong export presence across 17 countries, supported by a diversified customer base across pharmaceutical and other industries. Our in-house R&D, design, and value engineering capabilities further support our ability to develop customized and value-added solutions for customers.

Speaker #3: The company delivered a strong financial performance during Q1 FY2027. Total income grew 11.62% year-on-year, while EBITDA increased by 209.50%, supported by improved operating efficiencies and a stronger product mix.

Speaker #3: Net profit increased by 566.23% year on year, reflecting a significant improvement in overall profitability. Going forward, our focus remains on expanding manufacturing capacity, strengthening our product portfolio, improving operational efficiencies, and leveraging opportunities across industrial and packaging segments. We remain committed to building sustainable growth and creating long-term value for all our stakeholders.

Manish Dedhia: Going forward, our focus remains on expanding manufacturing capacity, strengthening our product portfolio, improving operational efficiencies, and leveraging opportunities across industrial and packaging segments. We remain committed to building sustainable growth and creating long-term value for all our stakeholders. Before concluding, I would like to thank our employees, customers, business partners, and shareholders for their continued trust and support. With this, I conclude my remarks and now request Ms. Kashmira Dedhia to take you through the financial performance for the quarter ended 30 June 2026.

Speaker #3: Before concluding, I would like to thank our employees, customers, business partners, and shareholders for their continued trust and support. With this, I conclude my remarks and now request Ms. Kashmira Dadia to take you through the financial performance for the quarter ended June 30, 2026.

Speaker #4: Thank you. Good afternoon, everyone. I will now take you through the financial highlights for Q1, FY27. For the first quarter of financial year 2027, Mitsu Chem Plast Limited reported a strong improvement in profitability.

Kashmira Dedhia: Thank you. Good afternoon, everyone. I will now take you through the financial highlights for Q1 FY27. For the first quarter of financial year 2027, Mitsu Chem Plast Limited reported strong improvement in profitability, supported by better operating efficiency and improved product mix. Total income for the quarter stood at INR 9,532.78 lakhs, registering a growth of 11.62% year on year compared to INR 8,540.39 lakhs in Q1 FY26. EBITDA increased significantly to INR 1,549.48 lakhs, registering a growth of 209.50% year on year. EBITDA margin improved to 16.29% compared to 5.87% in Q1 FY26, representing an expansion of 1,041 basis points. Net profit for Q1 FY27 stood at INR 873.83 lakhs, registering a growth of 566.23% year on year, compared to INR 131.16 lakhs in Q1 FY26. Net profit margin improved to 9.18% compared to 1.54% in the corresponding quarter last year.

Speaker #4: Supported by better operating efficiency and improved product mix. Total income for the quarter stood at Rs. 9,532.78 lakhs, registering a growth of 11.62% year on year, compared to Rs.

Speaker #4: 8,540.39 lakhs in Q1 FY2026. EBITDA increased significantly to Rs. 1,549.48 lakhs, registering a growth of 209.50% year on year. EBITDA margin improved to 16.29% compared to 5.87% in Q1 FY2026.

Speaker #4: Representing an expansion of 10.41 basis points. Net profit for Q1 FY27 stood at Rs 873.83 lakhs, registering a growth of 566.23% year-on-year, compared to Rs.

Speaker #4: 131.16 lakhs in Q1 FY26. Net profit margin improved to 9.18% compared to 1.54% in the corresponding quarter last year. Earnings per share for the quarter stood at Rs.

Kashmira Dedhia: Earning per share for the quarter stood at INR 6.44 compared to INR 0.97 in Q1 FY26. On a sequential basis, the company also continued to maintain strong profitability. EBITDA stood at INR 1,549.48 lakhs in Q1 FY27 compared to INR 1,422.74 lakhs in Q4 FY26. While net profit increased from INR 771.73 lakhs in Q4 FY26 to INR 873.83 lakhs in Q1 FY27. The strong improvement in EBITDA and net profit reflects the benefit of improved operating efficiency and a stronger product mix during the quarter. Looking ahead, our priority remains focused on capacity expansion, strengthening our diversified product portfolio, and improving operational efficiency. The proposed addition of 3,550 metric ton per annum to our existing capacity will provide additional manufacturing capabilities to support growth across key product verticals.

Speaker #4: 6.44, compared to Rs. 97 in Q1 FY26. On a sequential basis, the company also continued to maintain strong profitability. EBITDA stood at Rs. 1,549.48 lakhs in Q1 FY27, compared to Rs.

Speaker #4: 14,22.74 lakhs in Q4 FY26. While net profit increased from Rs. 771.73 lakhs in Q4 FY26 to Rs. 873.83 lakhs in Q1 FY27, the strong improvement in EBITDA and net profit reflects the benefit of improved operating efficiency and a stronger product mix during the quarter.

Speaker #4: Looking ahead, our priority remains focused on capacity expansion, strengthening our diverse product portfolio, and improving operational efficiency. The proposed addition of 3,550 metric tons per annum to our existing capacity will provide additional manufacturing capabilities to support growth across key product verticals.

Speaker #4: We will continue to focus on higher value-added opportunities across packaging, healthcare furniture, and other industrial applications. Our transformation agenda remains centered around Pharnastra, enhanced packaging products, operational excellence, data-driven marketing, scientific innovation, and empowered teams.

Kashmira Dedhia: We will continue to focus on higher value-added opportunities across packaging, healthcare, Furnastra, and other industrial applications. Our transformation agenda remains centered around Furnastra, enhanced packaging product, operational excellence, data-driven marketing, scientific innovation, and empowered teams. The company continue to work towards this long-term objective of achieving INR 1,000 crores in annual revenue by FY28. With that, I conclude my financial update. I will now request the moderator to open the floor for question and answer. Thank you.

Speaker #4: The company continues to work towards its long-term objective of achieving Rs 1,000 crore in annual revenue by FY28. With that, I conclude my financial update.

Speaker #4: I will now request the moderator to open the floor for questions and answers. Thank you.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. 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 is from the line of Vinod Shah from VS Ventures. Please proceed.

Speaker #1: 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.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vinod Shah from VS Ventures.

Speaker #1: Please proceed.

Speaker #2: Yes. Hi. Good afternoon, sir. Am I audible?

Vinod Shah: Yes. Hi. Good afternoon, sir. Am I audible?

Speaker #3: Yeah.

Manish Dedhia: Yeah.

Speaker #2: Yeah, sir. So I just have a couple of questions. Within the packaging portfolio, which products are currently in the strongest demand?

Vinod Shah: Yeah, sir. I just have a couple of questions. Within the packaging portfolio, which products are currently in the strongest demand?

Speaker #3: So currently, everything is in a demand, sir. And, so we, the, the, the product, the containers also in a big demand. And our, our, we have three verticals, which is containers, furniture part, and others.

Manish Dedhia: Currently everything is in demand, sir. The containers also in a big demand. We have three verticals, which is the containers, furniture part, and others. All vertical are doing very well.

Speaker #3: So all, all, all verticals are, are doing very well.

Speaker #2: Okay. And where do you see the highest, like, incremental opportunity within the...?

Vinod Shah: Okay. Where do you see the highest incremental opportunity within this?

Speaker #3: Sorry, sir?

Manish Dedhia: Sorry, sir?

Speaker #2: So, where do you see the highest incremental opportunity in?

Vinod Shah: Where do you see the highest incremental opportunity in next

Speaker #3: Sir, can I—no, I'm not able to hear your voice. Sorry, sir.

Manish Dedhia: I'm not able to hear your voice. Sorry, sir.

Speaker #2: Am I audible now?

Vinod Shah: Am I audible now?

Speaker #3: Yeah, yeah. Now, perfectly all right.

Manish Dedhia: Yeah. Now perfectly all right.

Speaker #2: Yeah, so I was saying, where do you see the highest incremental opportunity in the next four or five years?

Vinod Shah: Yeah. I was saying, where do you see the highest incremental opportunity in next four, five years?

Speaker #3: In both. So, in all verticals, we are looking at very high demand. As well as, the profitability is also good in all the verticals.

Manish Dedhia: In both. All verticals, we are looking at very higher demand as well as the profitability also, good in all the verticals. Sorry.

Speaker #3: Sorry.

Speaker #2: Okay. And sir, you have currently around 500 SKUs. So, are you looking to rationalize low-volume SKUs and focus production capacity on others?

Vinod Shah: Okay. Sir, you have currently around 500 SKU. Are you looking to rationalize low volume SKU and focus production capacity on-

Speaker #3: So, we have already done that.

Manish Dedhia: So we have already done that.

Speaker #2: Product?

Vinod Shah: high margin product?

Speaker #3: Yeah, yeah. So we have already done that, and you can find the result because, see, we have done rationalized things. Even, see, we are doing a lot of product expansion and product reducing.

Manish Dedhia: Yeah. So we have already done that, and you can find the result because, see, we have done rationalize things. Even, see, we are doing lot of product expansion and product reducing. Both the things we are doing together. So which product is not giving us a better margin, better turnover, and better throughput, then we are actually giving away that product. And we are also introducing new product where we are very sure that we are getting some good improvement there.

Speaker #3: Like, both the things we are doing together. So which product is not giving us a better margin, better, turnover, and a better throughput, then we are, we are actually, going, I mean, like, giving away that product.

Speaker #3: And we are also introducing a new product, where we are very sure that we will see some good improvement there.

Speaker #2: Mm-hmm. Okay. And, sir, you have around, like, 700 customers or something, so?

Vinod Shah: Okay. Sir, you have around 700 customers or something.

Speaker #3: More than that.

Manish Dedhia: More than that.

Speaker #2: Yeah, yeah. So are you.

Vinod Shah: Yeah. Are you-

Speaker #3: Sir, can you speak a little louder? Because your voice is sometimes going away.

Manish Dedhia: Can you speak a little louder because your voice sometimes goes away.

Speaker #2: Yeah. Is it better now?

Vinod Shah: Yeah. Is it better now?

Speaker #3: Yeah. Now it is better.

Manish Dedhia: Yeah.

Vinod Shah: Hello.

Manish Dedhia: Now it is better.

Speaker #2: Yeah, so I was saying you have around 700-plus customers, as you mentioned. So, are you approaching the next phase of customer acquisition, or are you looking to deepen penetration with existing customers?

Vinod Shah: Yeah. I was saying you have around 700 plus customers, as you mentioned.

Manish Dedhia: Yeah.

Vinod Shah: Are you approaching the next phase of customer acquisition, or are you looking to deepen the penetration in the existing customers?

Speaker #3: Sir, we are adding customers every quarter and quarter. This time also, we have added more than 30-plus customers in our kitty. So every quarter we are also adding, we are also minusing the customers.

Manish Dedhia: Sir, we are adding customer every quarter and quarter. This time also, we have added more than 30 plus customers in our kitty. Every quarter we are also adding, we are also managing the customer. The reason, the better throughput, better profitability and better turnover.

Speaker #3: The reason the better throughput, better profitability, and the, better turnover. So we are always, having, addition of the new customer. The last year we have total added around, more than 100-plus customer we have added.

Manish Dedhia: So we are always having addition of the new customer. Last year we have total added around more than 100 plus customer we have added. More than 150 customer we have added, sir.

Speaker #3: We have added more than 150 customers, sir.

Speaker #2: Okay, that's great, sir. And, sir, just one last question. So, you mentioned you see the growth across all your verticals.

Vinod Shah: Okay. That is great, sir. And sir, just one last question. So you mentioned you see the growth across your all verticals. So where do you see the revenue mix evolving in next 12 to 18 months?

Speaker #2: So, where do you see the revenue mix evolving in the next 12 to 18 months?

Speaker #3: I mean, like, total revenue—if we look at it this way, maybe we can calculate it this way. And also, you must have seen our expansion plans as well.

Manish Dedhia: Total revenue, this way it stood, maybe we can calculate this way. And also you must have seen our expansion plans also.

Speaker #2: Mm-hmm.

Speaker #3: we just increase, we, we just increase our expansion. So everything will come up. So whatever so this is in line with the announcement of 1,000 CR for definitely, we are, we are in line with that.

Manish Dedhia: We just increased our expansion, so everything will come up. This is in line with the announcement of INR 1,000 crore, so definitely we are in line with that. So we are expanding our capacity. Yeah.

Speaker #3: So, we are expanding our capacity. Yeah.

Speaker #2: Okay, sir. Thank you for that, sir. I will join back the queue. Thank you.

Vinod Shah: Okay, sir. Thank you. That is all. I will join back the queue. Thank you.

Speaker #3: Yeah.

Manish Dedhia: Yeah.

Speaker #1: Thank you. A reminder to all participants: anyone who wishes to ask a question may press star and one on their touch-tone telephone. The next question is from the line of Nishita from Sapphire Capital.

Operator: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touchtone telephone. The next question is from the line of Nishita from Sapphire Capital. Please proceed.

Speaker #1: Please proceed.

[Analyst] (Sapphire Capital): Hello, am I audible?

Speaker #4: hello. Am I audible?

Speaker #3: Yes.

Manish Dedhia: Yes.

Speaker #1: Yes, ma'am.

Operator: Yes, ma'am.

Speaker #4: Yeah, so I just wanted to understand our margin improvement. Why have our margins improved quite a lot, from around 5–6 percent to 16 percent?

[Analyst] (Sapphire Capital): Yeah. I just wanted to understand our margin improvement. YOY our margins have improved quite a lot from around 5%, 6% to 16%. I wanted to understand what led to this margin improvement, and also because, with the geopolitical situation, there must be a lot of pressure on our raw material price. How are we able to maintain this margin at 16%? Is this margin sustainable?

Speaker #4: So, I wanted to understand what led to this margin improvement. And also, because with the geopolitical situation, there must be a lot of pressure on our raw material prices, so how are we able to maintain this margin at 16%?

Speaker #4: And is this margin sustainable?

Speaker #3: Okay, yeah, good question. So, I think your first question was, how do you arrive at this profit margin, right?

Manish Dedhia: Okay. Yeah, good question. I think your first question was, how do you arrive this profit margin, right?

Speaker #4: Yes, yes.

[Analyst] (Sapphire Capital): Yes.

Manish Dedhia: Yeah. I think in my speech I said, due to lot of innovation and lot of manufacturing efficiency and overall operating efficiency and product mix, that gives us a good quarter. You must be seeing from the Q3 there is some or the other improvement. We are trying to get over lot of things which was bottleneck or something like that. We are improving on a everyday basis, and this is the result with this. This is the result. About your second question, yeah, there is a big geopolitical things going on. But I think we have stopped buying imports since many years. As locally material available in India, hence we are buying from local only. I think local producers, we have a very good relations with them. Hence, we found a full support from them to run the industry.

Speaker #3: Yeah. So I think, in my speech, I said due to a lot of innovation and a lot of, you know, manufacturing efficiency, and overall operating efficiency and product mix, that gave us a good quarter.

Speaker #3: So you must be seeing from the Q3, there is some other improvement. So, we are trying to get over a lot of things which were a bottleneck or something like that.

Speaker #3: So we are improving on an everyday basis, and I'm like, this is a result, and, with this, this is a result.

Speaker #3: About your second question, yeah, there are big geopolitical things going on. But I think we have stopped buying imports since many years. And as, like, locally material is available in India, hence we are buying from local only.

Speaker #3: And I think local producers are, are we have a very, very good relations, with them. And hence, I didn't find a, I mean, like, we, we, we found a full support from them.

Speaker #3: To run the industry, that's what I can say.

Manish Dedhia: That's what I can say.

Speaker #4: Okay, so have we faced any raw material price increases, then, since we have such good support from our local producer?

[Analyst] (Sapphire Capital): Okay. Have we faced any raw material price increase then, since we have such good support from our local producer?

Speaker #3: Yeah, yeah. Customers are incre— I mean, like, see, suppliers are increasing prices as per the geopolitical situation, the crude, and everything based on that.

Manish Dedhia: Yeah. Suppliers are increasing prices as per the geopolitical situation, the crude and everything based on that. We are passing on the customers. Customers are also understanding that if this is a problem and then if they do not give a price increase, we will not be able to supply the loss. I think this is a big thing for suppliers also, for customer also. Everybody understand the situation and hence, we are giving the price increase to suppliers and customers also giving us.

Speaker #3: And we are passing on to the customers. Customers are also understanding that if this is a problem, and then if they do not give a price increase, we will not be able to supply, because we will not be able to supply at a loss.

Speaker #3: So I think this is a big, thing for suppliers also from customer also. Everybody understand the situation, and hence, I mean, like, we are we have, we have, we are giving the price increase to suppliers and customers also giving us.

Speaker #4: Right. So, like, have we been able—have we been able to pass on the complete price increase to our customers?

[Analyst] (Sapphire Capital): Right. Have we able to pass on the complete price increase to our customers?

Speaker #3: Who?

Manish Dedhia: Who?

Speaker #4: Like, have we even been able to pass the complete price increase in raw material to our customers?

[Analyst] (Sapphire Capital): Have we able to pass the complete price increase in raw material to our customers?

Speaker #3: Yeah, yeah. That's what I said. In my last statement, I said the customers also understood very well. Then, because, see, geopolitical situation—everybody knows what are, what are the problems.

Manish Dedhia: Yeah. That is what I said in just last statement. I said the customers also understood very well. Because, see, geopolitical situation, everybody knows what are the problems.

Speaker #4: Okay, understood, understood. And my next question is on our capex. So you mentioned that we’ve proposed additional cap city of around 3,500 metric tons per annum.

[Analyst] (Sapphire Capital): Okay, understood. My next question is on our CapEx. You mentioned that we have proposed additional capacity of around 3,500 metric ton per annum. What will be the required CapEx for that, and how are we going to fund that CapEx?

Speaker #4: So, what will be the required capex for that? And how are we going to fund that capex?

Speaker #3: I think we have already said that, huh? So, these are some of the good capex we will require. And, most of the capex, it's a mixed one.

Manish Dedhia: I think we have already said that.

[Analyst] (Sapphire Capital): Okay.

Manish Dedhia: These are some of the good CapEx we will require. Most of the CapEx is a mixed one. I mean, we are doing the mixed things, internal accruals and the debt we are doing.

Speaker #3: Some capex, I mean, like, we are doing mixed things—internal accruals and the debt we are doing.

Speaker #4: And what is the amount of CAPEX required?

[Analyst] (Sapphire Capital): And what is the amount of CapEx required?

Speaker #3: Required for what we have done till now, yes?

Manish Dedhia: Required for what we have done till now, yes?

Speaker #4: Required for the 3,500 metric ton additional capacity that you've proposed.

[Analyst] (Sapphire Capital): Required for the 3,500 metric ton additional capacity that you have proposed.

Speaker #3: So, it's approximately two, two crore.

Manish Dedhia: So it is approximately INR 2 CR.

Speaker #4: Okay, okay. Understood. And, it can be.

[Analyst] (Sapphire Capital): Understood. Can we-

Manish Dedhia: It depends which type of machinery, from where you are getting, how you are getting. It all depends on this.

Speaker #3: Which kind of machinery, from where you are getting, how you are getting, that's all depends on this.

Speaker #4: Understood. And can we expect this additional capacity to be operational in the current fiscal year itself?

[Analyst] (Sapphire Capital): Understood. Can we expect this additional capacity to be operational in FY27 itself?

Speaker #3: Yes, it is already operational. So, we have announced after everything was successfully run.

Manish Dedhia: Yeah. It is already operational. We have announced after everything successful run.

Speaker #4: Okay, so the additional 3,500 capacity is already online?

[Analyst] (Sapphire Capital): Okay. The additional 3,500 capacity is already online?

Speaker #3: Yeah, yeah. Already online. Already online.

Manish Dedhia: Yeah. Already online.

Speaker #4: Okay, okay. Understood. And my last question is on revenue growth. So, we've grown—our margins have improved quite a lot, and we are also growing extremely well.

[Analyst] (Sapphire Capital): Okay. Understood. My last question is on revenue growth. We've grown, our margins have improved quite a lot and we are growing also extremely well. If you can give some sort of guidance on where can we see the growth trajectory in FY27?

Speaker #4: So, if you can give some sort of guidance on where we can see the growth trajectory in FY27?

Speaker #3: Sorry, I am not able to fully understand the depth of your question.

Manish Dedhia: Sorry, I am not able to understand your question very well.

Speaker #4: So I just wanted to understand, like, in FY27, what sort of revenue growth can we see?

[Analyst] (Sapphire Capital): I just wanted to understand, like in FY27, what sort of revenue growth can we see?

Speaker #3: Yeah, it's good. I think going forward, we are looking for the same growth quarter on quarter—almost the same. I will not say 100% the same, but almost the same growth we are looking for quarter on quarter. As I always mention in my concall till now, since the last one year, we are now more focused on bottom line rather than top line.

Manish Dedhia: Yeah. Good. I think, going forward, we are looking for the same growth of quarter on quarter. Almost same. I will not say 100% same, but almost same growth we are looking for the quarter on quarter. As I always mention in my con call, till now, since last one year, that now we are more focusing on bottom line rather than top line.

Speaker #4: Okay, okay. Understood. So, yeah, understood. Thank you so much.

[Analyst] (Sapphire Capital): Okay. Understood.

Manish Dedhia: Your side.

[Analyst] (Sapphire Capital): Yeah. Understood. Thank you so much.

Speaker #1: Thank you. The next question is from the line of Prajesh Gupta, an individual investor. Please proceed with your question.

Operator: Thank you. The next question is from the line of Rajesh Gupta, an individual investor. Please proceed with your question.

Speaker #2: Yeah, hi. I'm audible?

Rajesh Gupta: Yeah. Hi. Am I audible?

Speaker #3: Yes, sir.

Manish Dedhia: Yes, sir.

Speaker #2: Yeah, okay. Could the management clarify the rationale for selecting Recurve Securities Limited as the non-promoter allottee of 2 lakh warrants? Does Recurve Securities have any existing investment, business advisory, or relationship with Mitsu Chem Plast?

Rajesh Gupta: Yeah. Okay. Could the management clarify the rationale for selecting Ricul Securities Limited as the non-promoter allottee of 2 lakh warrants? Ricul Securities have any existing investment business advisory or relationship with Mitsu Chem Plast? Is the investment being made for-

Speaker #2: And is the investment being made for a...

Speaker #3: I think, yeah, this is just as an investor, he has come. So it is a small amount. It is always a challenge in a very, very small company to get the investor.

Manish Dedhia: No. I think, yeah, as an investor he has come. So it is a small amount. In small companies, it is always a challenge to get the investor.

Speaker #2: Okay. There's no existing investment they have in Mitsu, or any business or advisory relationship with Mitsu?

Rajesh Gupta: Okay. There is no existing investment they have in Mitsu or any business or advisory relationship with Mitsu?

Speaker #3: Right.

Manish Dedhia: Right.

Speaker #2: Okay, one more question. The ₹1,000 crore target for FY28—the growth has to be much more than what has been in the preceding quarters.

Rajesh Gupta: Okay. One more question is, the INR 1,000 crore target for FY28. The growth has to be much more than what has been in the preceding quarters. So, I mean, we expect the quarterly revenue to move from INR 95 last quarter to INR 120 or INR 130 crores so that we are in line for the INR 1,000 crore revenue target by 2028?

Speaker #2: So, I mean, we expect the quarterly revenue to move from 95 last quarter to 120 or 130 crores, so that we are in line for the 1,000-crore revenue target by '28?

Speaker #3: I agree, fully agree with you. Yes. And I'm—yeah, you had a very well... this thing. Yeah, sir, I think this quarter is being very... a low quarter.

Manish Dedhia: I fully agree with you.

Rajesh Gupta: Okay.

Manish Dedhia: Yes. You had very well this thing. Yeah, sir, I think this quarter is being a very low quarter by revenue. As I always mention, I think you are also a follower of the investor con call. We are more focusing on the bottom line rather than top line, number one. Number two, yes, the top line is also in our mind very well. We are trying our all the aspect, all the things very well. We have already launched, I mean, we are coming up with the IBC project, which is coming up in maybe Q3. All these things is like in line of growth.

Speaker #3: By revenue, as I always mention—I think you are also a follower of the investor concall—so you know, we are focusing more on the bottom line rather than the top line.

Speaker #3: Number one. Number two, yes, the top line is also in our, mind. Very well. we are, we are, we are trying our all the aspect, all the things very well.

Speaker #3: We have, we have already launched, we, we, I mean, we are coming up with the IBC project, which is coming up in maybe the third quarter.

Speaker #3: So, you know, all these things are, like, in a line of growth. So definitely, you'll find the revenue growth also very soon.

Rajesh Gupta: Yeah.

Manish Dedhia: So definitely,

Rajesh Gupta: Yeah

Manish Dedhia: you will find the revenue growth also very soon.

Speaker #2: Okay, great. Sir, one last question. We have been running the capacity at approximately 64%. So what is the rationale behind increasing the capacity by about 3,000, as has been mentioned?

Rajesh Gupta: Okay, great. Sir, one last question.

Manish Dedhia: Yes, sir.

Rajesh Gupta: We have been running the capacity at 64% approximately. What is the rationale behind increasing the capacity further of about 3,000, is what have been said? There is still huge scope for capacity utilization from 64% to 70% or 80% or 90% for production. This additional capacity is anything.

Speaker #2: There's still huge scope for capacity utilization, from 64 to 70 OEP or 90, for production increase. This additional capacity is anything, yeah.

Speaker #3: Sorry, sorry. Go ahead, go ahead. Sorry.

Manish Dedhia: Sorry. Go ahead. Sorry.

Speaker #2: Yeah. So, this additional capacity— is it intended for any very specific machinery or some specialized thing? Or why are we adding additional capacity when the existing capacity is not being fully utilized?

Rajesh Gupta: Yeah. So this additional capacity, is it something for very specific machinery or something specialized thing? Or why additional capacity when the existing capacity is not being used fully?

Speaker #3: Okay. So we have a, see, as, as this is a as per plan. Now, in some quarter, as a there is a seasonality, you know, you can go maximum to 85% capacity.

Manish Dedhia: Okay. So we have a See, as this is as per plan. In some quarter, there is a seasonality. You can go maximum to 85% capacity. There are some of the capacity in last year, Q1 and Q2, you must have seen that was a very low capacity utilization. So, the overall, it was a 60%, 63%, 64% utilization last year. Now, coming back to your question, why you have increased if it is not utilized properly. Sir, we have to plan little ahead because in the blow molding and injection molding industry, we have one challenge of getting the machinery on time. The one challenge, after getting the machinery, it's commercialized and everything, it takes a lot of time. So around six to nine months, it takes to start to finish. So we have to be ready enough with all the infrastructure things.

Speaker #3: Now, there are some of the capacities in last year, Q1 and Q2. You must have seen that there was a very, very low capacity utilization.

Speaker #3: So, you know, overall it was a 60%, 63%, 64% utilization over the last year. Now, coming back to your question—why have you increased if it is not utilized properly?

Speaker #3: Sir, we have to plan little ahead because in the, in the blow molding and injection molding industry, we have a one challenge of getting the machinery on time, getting the machinery s the one challenge after the getting the machinery, the commercialized and everything, it takes a lot of time.

Speaker #3: So, around six to nine months, it takes from start to finish. So, we have to be ready enough with all the infrastructure things.

Speaker #3: We have, we have taken our unit, one more unit, in the month of—I think—January or February. I don't recollect exactly. We have announced that in the first quarter, last quarter of '26.

Manish Dedhia: We have taken one more unit in the month of, I think, January, February. I do not recollect exactly. We have announced that last quarter of 2023. But now we are going for expansion because we have our infrastructure ready, so we can go ahead for a capacity enhancement.

Speaker #3: But now, we are going for expansion because we have the infrastructure ready. So we can go ahead with a capacity announcement.

Speaker #2: Okay, great, sir. Thank you very much, and all the best to the company.

Rajesh Gupta: Okay. Great, sir. Thank you very much, and all the best to the company.

Speaker #3: Thank you. Thank you, sir.

Manish Dedhia: Thank you, sir.

Speaker #1: Thank you. The next question is from the line of Praveen Sharma, an individual investor. Please proceed.

Operator: Thank you. The next question is from the line of Praveen Sharma, an individual investor. Please proceed.

Speaker #2: Hello? Am I audible?

Praveen Sharma: Hello. Am I audible?

Speaker #1: Yes, sir.

Operator: Yes, sir.

Speaker #2: Yeah. Good afternoon, Su sir. Congratulations on the excellent set of numbers. I hope the momentum will continue. My only question is regarding the IBC project.

Praveen Sharma: Yeah. Good afternoon, sir. Congratulations for the excellent set of numbers. I hope the momentum will continue. My only question is regarding the IBC project. Where do we stand and when do we expect the commercial operation to start, and how big is the opportunity there? Thank you.

Speaker #2: You know, where do we stand and, you know, when do we expect the commercial operation to start? And how big is the opportunity there?

Speaker #2: Thank you.

Speaker #3: Yeah, definitely. As I just mentioned, most probably in Q3 we will start the commercial production. And there's a good opportunity—it's a new product in the market.

Manish Dedhia: Yeah, definitely. As I just mentioned, that most probably Q3, we will start the commercial production. That is a good opportunity. It is a new product in the market and as a management, we are seeing a good opportunity in this particular market. But once we come up with that, then you will have to taste the water.

Speaker #3: And as management, we are seeing a good opportunity in this particular market. But once we come up with that, then you know, you'll have to test the waters.

Speaker #2: Mm-hmm. So, will we be doing additional capex for that, or will the existing capacity suffice? Will the machines that are there suffice for that requirement?

Praveen Sharma: So will we be doing any additional CapEx for that, or the existing capacity will suffice, the machines which are there will suffice for that requirement?

Speaker #3: Completely different machinery for the IBC—completely new machinery.

Manish Dedhia: Complete different machinery for the IBC. Complete new machinery.

Speaker #2: Mm-hmm.

Speaker #3: Sorry.

Manish Dedhia: Sorry.

Speaker #2: So, how much are we going to invest in that?

Praveen Sharma: How much are we going to invest in that?

Speaker #3: Sir, we will announce very soon on that, because we haven't given all the details. Once we disclose everything, you'll come to know everything at the same time.

Manish Dedhia: Sir, we will announce very soon on that, because we haven't given all the details. Once we disclose everything, we'll come to know everything on the scene.

Speaker #2: But that will start commercial operation in Q3. That is the expectation.

Praveen Sharma: But that will start commercial operation in Q3, that is expectation?

Speaker #3: Sorry, sir.

Manish Dedhia: Sorry, sir?

Speaker #2: Commercial operation will start in Q3, correct?

Praveen Sharma: Commercial operation will start in Q3. Correct?

Speaker #3: Approximately, yes. Approximately, yes.

Manish Dedhia: Approximately, yes.

Speaker #2: Okay, okay, okay. Thank you.

Praveen Sharma: Okay. Thank you.

Manish Dedhia: Thank you, sir.

Speaker #3: Thank you, sir.

Speaker #1: Thank you. The next question is from the line of Sakit Saurabh from Sagari Capital. Please proceed.

Operator: Thank you. The next question is from the line of Saket Saurabh from Sagari Capital. Please proceed.

Speaker #2: Hi. Am I audible?

Saket Saurabh: Hi, am I audible?

Speaker #1: Yes, sir.

Operator: Yes, sir.

Speaker #3: Yes, sir.

Manish Dedhia: Yes, sir.

Speaker #2: Okay. Sir, just to be sure, last quarter, you told that we have a cost-plus markup kind of arrangement with our clients, where the raw material is a pass-through.

Saket Saurabh: Sir, just to be sure, sir, last quarter you told that we have a cost plus markup kind of an arrangement with our clients where the raw material is a pass-through, but our markup is percentage of raw material price, not say EBITDA per ton or something like that. Is that fair?

Speaker #2: But our markup is a percentage of the raw material price, not, say, EBITDA per ton or something like that. Is that fair? So, by that logic, sir, if the raw material price increases, then our profitability also goes up, sir?

Manish Dedhia: Yes.

Saket Saurabh: By that logic, sir, if the raw material prices increase, then our profitability also goes up, sir?

Speaker #3: No, no. So please understand, we have said a lot of other expenses also are there, which is a good expense. Coming back to operating efficiency, product mix, the other advantage of, you know, value addition, value engineering, so definitely, you must have seen, raw material prices are changing from quarter to quarter. I think this quarter, majorly.

Manish Dedhia: No. Please understand, we have said a lot of other expenses also are there, which is a good expense. Coming back to operating efficiency, product mix, the other advantage of value addition, value engineering. Definitely, you must have seen. Raw material prices are changing from quarter, I think this quarter, majorly. The war started from 1 March. But you can see our improvement from since third quarter. As like we are always doing something or the other on value addition.

Speaker #3: The war started from 1st of March. But you can see our improvement since the 3rd quarter. As like, we have always been doing something or the other, on a, a value addition.

Speaker #2: Got it, got it, sir. And what is the typical pass-through? Is it on a daily basis, monthly basis, or quarterly? How does the pricing pass-through take place in our case?

Saket Saurabh: Got it. Sir, and what is the typical pass-through? Is it on a daily basis, monthly basis, quarterly? How does the pricing pass-through take place in our case?

Speaker #3: I did not understand your question very well, sir.

Manish Dedhia: I did not understand, sir, your question very well.

Speaker #2: No. So, for example, when the raw material costs are pass-throughs, are they done on a monthly basis or a quarterly basis? How does the raw material cost pass-through take place?

Saket Saurabh: No. For example, when the raw material costs are pass-throughs, are they done on a monthly basis or quarterly basis? How does the raw material pass-through takes place? For example, if the cost price was 100 today, then the next adjustment with the client will happen one month later or three months later, or say, almost on a daily basis?

Speaker #2: For example, if the cost price was 100 today, then the next adjustment with the client will happen one month later, or three months later, or, say, almost on a daily basis?

Speaker #3: So, it's only one month later. Generally, it's one month. If it is a normal case, if it is a specialized case, we have to talk to the customer individually, one-on-one.

Manish Dedhia: It is one month later only. Generally, it is one month. If it is a normal, yes. If it is a specialized case, we have to talk to individually, one-on-one customer. It is a separate thing.

Speaker #3: It's a separate thing.

Speaker #2: And sir, what is the export share in our total revenue right now?

Saket Saurabh: And sir, what is the exports share in our total revenue right now?

Speaker #3: Just one minute.

Manish Dedhia: This one?

Speaker #2: Yeah.

Saket Saurabh: Yeah.

Speaker #3: It's around more than 2%.

Manish Dedhia: Around more than 2%.

Speaker #2: Okay, 2%.

Saket Saurabh: Okay, 2%.

Speaker #4: Yeah, yeah. Approximately 2%. Just a minute, I'll check.

Kashmira Dedhia: Approximately 2%, just a minute I will check.

Speaker #2: So, almost 98% is domestic then, right?

Saket Saurabh: Almost 98% is domestic then, right?

Speaker #3: Yes, yes, sir.

Manish Dedhia: Yes, sir.

Speaker #2: So, sir, now if I look at the Farnast segment, we were having a, say, a long-term relationship, I think some contract with a global player, right?

Saket Saurabh: Sir, now if I look at the Furnastra segment, we were having a long-term relationship, I think some contract with a global player. That is yet to kick in because that 2% seems to be on the lower side.

Speaker #2: So that is yet to kick in because that 2% seems to be on the lower side, or—yeah. So, when is that likely to kick in, sir?

Manish Dedhia: Yes.

Saket Saurabh: When is that likely to kick in, sir?

Speaker #3: That's a very, very low side. Very, very low side. Because, see, it takes a lot of time to establish our product in the international market.

Manish Dedhia: Very, very lower side. Because, see, it takes a lot of time to establish our products in the international market. Now we have already entered into that. Now, the results are still awaited.

Speaker #3: We have already entered into that. Now, the results are still awaited.

Speaker #2: Okay, so any timeline as to when it is likely to, say, ramp up? And what is the, say, likely revenue that we can look at from that particular relationship?

Saket Saurabh: Okay. So any timeline as to when it is likely to ramp up? And what is the likely revenue that we can look at from that particular relationship?

Speaker #3: It's an ongoing process, sir. It is an ongoing process. I mean, like, a completely ongoing process.

Manish Dedhia: It is ongoing process, sir. It is ongoing process. Completely ongoing process.

Speaker #2: Okay, okay. Fair point, sir. Now, one thing that I think you have really impressed me with is the way you have been focusing on the bottom line, right?

Saket Saurabh: Okay. Fair point, sir. Now, one thing that you have been, I think really I have been interested the way you have been focusing on bottom line. Moving from top line. But one feature of our company, if I look at say slide 33, where you have talked about quarterly EBITDA, then EBITDA has been quite volatile, sir. So now we are hitting at almost 16 odd percent EBITDA now. Is this now sustainable going forward? Because I think last quarter you were still telling the overall guidance to be 10% to 12% kind of EBITDA. So is now 16% the new normal?

Speaker #2: Moving from the top line, but one feature of our company—if I look at, say, slide 33, where you have talked about quarterly EBITDA—then EBITDA has been quite volatile, sir.

Speaker #2: And so, now we are hitting almost 16-odd percent EBITDA. Is this now sustainable going forward? Because I think last quarter we were still giving the overall guidance to be in the 10 to 12 percent kind of EBITDA.

Speaker #2: So, is now 16 percent the new normal? Yeah.

Manish Dedhia: Always, I think many of the quarters are the same, so generally 10% to 12% is a normal distinction. Now, all the efficiency, everything we are already optimization of product and everything, we are still ongoing process. Now, you can always see some more difference, but double-digit EBITDA will remain the same for sure. Now that double digit, how much it grows, you will have to see quarter to quarter. But yes, we will try to sustain it as good as possible.

Speaker #3: So, always, I think, many of the quarters and saying, so generally, 10 to 12 percent is a normal this thing. Okay. Now, see, all the efficiency, everything, we are already, optimization of product and everything, we are still ongoing process.

Speaker #3: And now, now you can always see some more difference. But double digit EBITDA will remain the same for sure. So now that double digit how much it grows, I mean, like, you'll have to see quarter to quarter.

Speaker #3: But yes, we will try to sustain it as well as possible.

Speaker #2: Okay, sir. Okay. And, sir, you talked about, you know, the current run rate of QOQ, you know, sustaining. So right now, I think QOQ growth, if I look at it, was around 10%—10, 11 percent—from 87, we went to 95.

Saket Saurabh: Okay, sir. And sir, you talked about the current run rate of QOQ sustaining. So right now, I think QOQ growth, if I look at, was around 10%, 11%. From INR 87 we went to INR 95. But then also you clarified that INR 1,000 crore is still within our reach. Does that mean that now our quarterly run rate would be upwards of 15%, 20% odd? Only then I think that-

Speaker #2: But then also you, clarified that at 1,000, crore is still under, you know, is within our reach. So does that mean that now our quarterly, run rate would be, say, upwards of, say, 15, 20, 20 odd percent?

Speaker #2: Only then, I think that 1,000.

Manish Dedhia: Obviously.

Speaker #3: It's obvious. Yeah, it's obvious. See, please understand, the capacity expansion we have just given last week. So you can analyze, you know, that things also will add up in the capacity.

Saket Saurabh: Yeah.

Manish Dedhia: Obviously, please understand the capacity expansion we have just given last week.

Saket Saurabh: Okay.

Manish Dedhia: You can analyze, that things also will add up in the capacity.

Speaker #2: Okay, sir. And, sir, in the recent fundraise that we did via Varun, what are the areas of investment that you are looking at?

Saket Saurabh: Okay, sir. And sir, the recent fundraise that we did via warrant, what is the areas of investment that you are looking at? Is it CapEx or it is more in R&D? Any thoughts on that, sir?

Speaker #2: Is it CapEx, or is it more in R&D? Any thoughts on that, sir?

Speaker #3: I did not understand your question, sir.

Manish Dedhia: I did not understand your question, sir.

Speaker #2: So, I think you did some fundraising via Varun's, right? So what is the use case for these funds? Where are we going to use that, sir?

Saket Saurabh: I think you did some fundraise via warrants, right? So what is the use case for these funds? Where are we going to use that, sir?

Kashmira Dedhia: Working capital.

Speaker #2: Okay. Working capital. Okay. Okay. Okay, sir. Thanks for the opportunity, and best of luck for the coming quarters.

Saket Saurabh: Okay. Working capital. Okay, sir. Thanks for the opportunity and best of luck for coming quarters.

Speaker #3: Thank you. Thank you very much, sir.

Manish Dedhia: Thank you. Thank you very much, sir.

Speaker #1: Thank you. The next question is from Aditi Jen, Wealth Management Consultant. Please proceed. Noam, can you please speak loudly?

Operator: Thank you. The next question is from the line of Aditi Jain from Wealth Management Consultant. Please proceed.

Aditi Jain: Hello. Am I audible?

Operator: No, ma'am. Can you please speak loudly?

Speaker #5: Hello. Am I audited?

Aditi Jain: Hello. Am I audible?

Speaker #1: Yeah. Yeah.

Operator: Yeah.

Speaker #3: Not audible. Madam, I'm not able to hear a single voice. I think there's one lady speaking, but there's no voice.

Manish Dedhia: Madam, I'm not able to hear a single voice. I think there's one lady speaking, but no voice.

Speaker #5: Oh, I think, sir, my question is: would the Hyderabad facility eventually become a manufacturing or assembly unit, with demand from the southern market growing significantly?

Aditi Jain: Hello, sir. My question is, would the Hyderabad facility eventually become a manufacturing or assembly unit if demand from the southern market grows significantly?

Manish Dedhia: Ma'am, either they need to change the handset. I am not able to understand a single word from this. Hello, can you hear our voice?

Speaker #3: Ma'am, either they need to change the handset—I'm not able to understand a single word from this. Hello? Can you hear our voice?

Speaker #5: Hello, sir. Am I audible now?

Aditi Jain: Hello, sir. Am I audible now?

Speaker #3: Yeah, yeah. Very well, yeah.

Manish Dedhia: Yeah. Very well.

Speaker #5: Okay, okay. So my question was, would the Hyderabad facility eventually become a manufacturing or assembly unit if demand from the southern market grows significantly?

Aditi Jain: My question was, would the Hyderabad facility eventually become a manufacturing or assembly unit if demand from the southern market grows significantly?

Speaker #3: Not as of now. We haven't decided anything yet.

Manish Dedhia: Not as of now. We haven't decided yet anything.

Speaker #5: Okay. And how does the need to evaluate whether an R&D idea has strong commercial potential come into play before investing heavily in that?

Aditi Jain: Okay. How does one need to evaluate whether an R&D idea has strong commercial potential before investing heavily on it?

Speaker #3: Ma'am, sorry. Ma'am, your voice is disconnecting in between. Sorry.

Manish Dedhia: Ma'am, sorry. Ma'am, your voice is disconnecting in between. Sorry.

Operator: Aditi ma'am, may I request you to rejoin the queue? Please rejoin the queue.

Speaker #1: Aditi ma'am, may I request you to rejoin the queue? Please rejoin the queue.

Speaker #5: Yes.

Speaker #3: I'm not able to understand the questions very well, yeah.

Manish Dedhia: I'm able to understand the questions very well. Yeah.

Speaker #1: The next question is from the line of Rajshri Jen, an individual investor. Please proceed.

Operator: The next question is from the line of Raj Jain, an individual investor. Please proceed.

Speaker #5: Hello. Am I auditable?

Raj Jain: Hello, am I audible?

Speaker #1: Please continue.

Operator: Please continue.

Speaker #4: Very low volume.

Kashmira Dedhia: Very low volume.

Speaker #5: Hello. Am I audible right now?

Raj Jain: Hello. I am audible right now?

Speaker #4: Yes.

Speaker #3: Yes. Now it is perfect.

Kashmira Dedhia: Yes.

Manish Dedhia: Yes, now it is perfect.

Speaker #5: Hello. So, sir, my first question is, is the injection molding business currently operating at a materially different utilization level compared with blow molding, and could shifting the product mix towards injection molding improve overall asset productivity?

Raj Jain: Sir, my first question is the injection molding business currently operating at a materially different utilization level compared with blow molding? Would shifting the product mix towards injection molding improve overall asset productivity?

Speaker #3: Okay, nothing like that. I think blow molding and injection molding go hand in hand. Many of the products in injection molding are separate from blow molding.

Manish Dedhia: Okay. Nothing like that. I think blow molding and injection molding goes hand in hand. Many of the product in injection molding is separate than blow molding. Our major consumption and the revenue comes from blow molding only. Yes, in injection molding, some of the products are revenue earner also in somewhat extent. Yes. In somewhat extent, injection molding product gives support to blow molding they see.

Speaker #3: But our major consumption and the revenue come from blow molding only. Yes, in injection molding, some of the products are revenue earners also.

Speaker #3: In, in, in, in somewhat extent, yes. And to some extent, the injection molding product gives support to blow molding, you see.

Speaker #5: Okay. So, sir, the presentation highlights a patented CPR-related hospital furniture solution. How much of the company's healthcare product portfolio is now protected through proprietary designs, patents, or customer-specific designs?

Raj Jain: Okay.

Manish Dedhia: Hello.

Raj Jain: Sir, the presentation highlights a patented CPR-related hospital furniture solution. How much of the company's healthcare product portfolio is now protected through proprietary designs, patents or customer satisfaction?

Speaker #3: Approximately, as of today, we are at around 19.80%. So this includes furniture parts, and the other 80% is our packaging business.

Manish Dedhia: Approximately as of today, we are at around 19.80%. This includes furniture parts and other parts, and the rest is 80% is our packaging business.

Speaker #5: Okay. Okay. So, sir, given the long approval cycles for hospital furniture products, once a product is approved and incorporated into a customer's design, how sticky is that business compared with conventional packaging products?

Raj Jain: Okay. Sir, given the long approval cycles for hospital furniture products, once a product is approved and incorporated into a customer's design. How sticky is that business compared with conventional packaging products?

Speaker #3: No, sorry. Can you repeat the question, please, if you don't mind?

Manish Dedhia: No, sorry. Can you repeat the question, please, if you don't mind?

Speaker #5: Yes, sir. So, given the long approval cycles for hospital furniture products, once a product is approved and incorporated into a customer's design, how sticky is that business compared with conventional packaging products?

Raj Jain: Yes, sir. Given the long approval cycles for hospital furniture products, once a product is approved and incorporated into a customer's design, how sticky is that business compared with conventional packaging products?

Speaker #3: Yeah. Both are a different, different business altogether. I can't compare, both the business together. the, the, the customer demand, the, the process, and everything is a separate.

Manish Dedhia: Both are different businesses altogether. I can't compare both the business together. The customer demand, the process, and everything is separate.

Speaker #5: Okay. Okay, sir. Thank you. Thank you for answering my questions. If I have any more questions, I'll get back to you. Thank you.

Raj Jain: Okay, sir. Okay, sir. Thank you. Thank you for answering my questions. If I have any more questions, I'll get back into the queue. Thank you.

Speaker #3: Sure.

Manish Dedhia: Sure.

Speaker #1: Thank you. The next question is from Nishita of Sapphire Capital. Please proceed.

Operator: Thank you. The next question is from the line of Nishita from Sapphire Capital. Please proceed.

Speaker #6: Yes, thank you for the follow-up question. I just wanted to understand—you mentioned that our capacity expansion has come in just last week, and that is going to add to our revenue growth.

[Analyst] (Sapphire Capital): Yes. Thank you for the follow-up question. Sir, I just wanted to understand, you mentioned that our capacity expansion has come just last week, and that is going to add to our revenue growth. So what sort of revenue can we expect from this new capacity expansion in FY27?

Speaker #6: So, what sort of revenue can we expect from this new capacity expansion in FY27?

Speaker #3: Yeah, ma'am, that—we will announce very soon. So, Amila, you will see, now hardly one and a half months are left. So let us get this quarter done, and then you'll come to know many of the things.

Manish Dedhia: Yeah, ma'am, that we will announce very soon. I mean, like you will see now hardly 1.5 months is left. So let us get this quarter done and then you will come to know many of the things.

Speaker #6: Okay. Okay. Understood. Thank you so much.

[Analyst] (Sapphire Capital): Okay. Understood. Thank you so much.

Speaker #1: Thank you. The next question is from the line of Nidhi Purohit from Phoenix Capital. Please proceed.

Operator: Thank you. The next question is from the line of Nidhi Purohit from Phoenix Capital. Please proceed.

Speaker #5: Hello. Hello.

Nidhi Purohit: Hello? Hello.

Speaker #3: yes.

Speaker #1: Yes, ma'am. Continue.

Manish Dedhia: Yes.

Operator: Yes, ma'am, continue.

Speaker #5: Okay. So, as far as I mean FY26 capacity utilization—

Nidhi Purohit: Okay. FY, I mean FY26 capacity utilization.

Speaker #1: Ma'am, can you please be a little louder?

Operator: Ma'am, can you please be a little louder?

Speaker #5: Sure. FY26 capacity utilization was around 54%. So, with another 3,550 market tons of capacity being added, what kind of utilization are you expecting across the expanded capacity by the end of FY27?

Nidhi Purohit: Sure. FY26 capacity utilization was around 64%. With another 3,550 metric tons of capacity being added, what kind of utilization are you expecting across the expanded capacity by the end of FY27?

Speaker #3: What, what is the question? I have not understood yet.

Manish Dedhia: What is the question? I have not understood yet.

Speaker #5: I mean, okay. I'll just repeat it, sir. FY26 CAPA capacity utilization was around 64%. So, with another 3,550 metric tons of capacity being added, what kind of utilization?

Nidhi Purohit: Okay. I will just repeat it, sir. FY26 capacity utilization was around 64%. With another 3,550 metric tons of capacity being added, what kind of utilization-

Speaker #3: Yeah, yeah. Now I understand. Yeah, yeah. Approximately, it will remain the same—64, 65, or 70 percent is healthier for the company.

Manish Dedhia: Approximately. Yeah. Now I understand.

Speaker #5: Are you expecting?

Nidhi Purohit: Are you expecting?

Manish Dedhia: Yeah. Approximately it will remain the same, 64%, 65% or 70% is healthier for a company.

Speaker #5: Okay.

Nidhi Purohit: Okay.

Speaker #3: Yeah.

Manish Dedhia: Yeah.

Speaker #5: Sir, also, you had earlier mentioned that a 10% EBITDA margin would be a sustainable level. Given that Q1 margin was 16.3%, what are the key operational factors that could help you sustain this margin at this level?

Nidhi Purohit: Sir, also you had earlier mentioned that 10% EBITDA margin would be a sustainable level. Given that Q1 margin was 16.3%, what are the key operational factors that could help you to sustain this margin at this?

Speaker #3: So sometimes, you know, some products go on a very high margin. Some things come up like, you know, 10 to 12 percent.

Manish Dedhia: Sometimes some products goes on a very high margin. Some things comes up like 10% to 12%. I always speak on average. It's a seasonable product every quarter to quarter. But sustainable margins are like 10% to 13%, or 10% to 12% is a very reasonable amount, I would say, always. Whatever additional what we are getting is, you can always say, operational efficiency and other factors.

Speaker #3: So it's, you know, we every we al I always speak on a average. So it's a seasonable products every quarter to quarter. But sustainable margins are like 10 to 13 percent or, you know, 10 to 12 percent is a very, very reasonable amount, I would say, always.

Speaker #3: Whatever additional amount we are getting is, you can always say, due to operational efficiency and other factors.

Speaker #5: Okay, sir. Also, could you give me a sense of where this addition is?

Nidhi Purohit: Okay, sir. Also could you give me a sense of where this additional-

Speaker #3: Ma'am, you have to speak a little louder. I'm not able to hear your voice.

Manish Dedhia: Ma'am you have to speak little louder. I'm not able to hear your voice.

Speaker #5: Sorry. So, could you give us a sense of where this additional 3,550 metric tons of capacity will be utilized, and which product categories you expect to contribute most to the incremental capacity?

Nidhi Purohit: Sorry. Could you give us a sense of where this additional 3,550 metric tons capacity will be utilized, and which product categories do you expect to contribute most to the incremental capacity?

Speaker #3: All, all three categories. Different, different products, different, different machines are there. So I think this time, you know, we have, we have, we have come up with the all the so it will be utilized in all three product vertical.

Manish Dedhia: All three categories. Different products, different machines are there. I think this time we have come up with all the so it will be utilized in all three product verticals, containers and Furnastra parts also.

Speaker #3: Containers and furniture parts also.

Speaker #5: Okay. Okay, sir. Thank you. I'll just turn it back to you. Thank you.

Nidhi Purohit: Okay. Thank you. I will just join back with you. Thank you.

Speaker #3: Thank you.

Speaker #1: Thank you. The next question is from the line of Siddhi Mehta, from Orient Capital. Please proceed.

Operator: Thank you. The next question is from the line of Siddhi Mehta from Orient Capital. Please proceed.

Speaker #5: Hello. Am I audible?

Siddhi Mehta: Hello. Am I audible?

Speaker #1: Yes, ma'am.

Operator: Yes, ma'am.

Speaker #3: Very low volume.

Manish Dedhia: Very low voice.

Speaker #5: am I audible now?

Siddhi Mehta: Am I audible now?

Speaker #3: Yeah, now. Yeah, perfect.

Manish Dedhia: Yeah. Now, yeah, perfect.

Speaker #5: Okay, so, Sir, given that the healthcare segment already contributes around 19.8%, what would be a realistic mix you are targeting over the next two to three years?

Siddhi Mehta: Okay. Given that the healthcare segment already contributes around 19.8%, what would be a realistic mix you are targeting over the next two to three years?

Speaker #3: Hello?

Manish Dedhia: Hello.

Speaker #5: Hello.

Siddhi Mehta: Hello.

Speaker #3: Yes.

Manish Dedhia: Yes.

Speaker #5: Yeah. Should I repeat my question?

Siddhi Mehta: Yeah. Should I repeat my question?

Speaker #3: please.

Manish Dedhia: Please.

Speaker #5: Okay, sir, the healthcare segment already contributes around 19.8%, right? So, what would be a realistic mix you are targeting over the next two to three years?

Siddhi Mehta: Okay. Sir, the healthcare segment already contributes around 19.8%, right? What would be a realistic mix you are targeting over the next two to three years? How would a higher contribution from this segment impact the all-over EBITDA margin profile?

Speaker #5: And how would a higher contribution from this segment impact the overall EBITDA margin profile?

Speaker #3: So, you know, all verticals are doing their own things. But yes, definitely, we are also looking for big growth in furniture parts and other parts as well.

Manish Dedhia: All verticals are doing their own things. But yes, definitely we are also looking for a big growth in Furnastra parts and other parts also. So definitely going further, you will have a good business and revenue sharing. Like revenue in a percentage sharing, you will find more in Furnastra parts and others, for sure, than container. Hence, I think your question was more on EBITDA.

Speaker #3: So, so definitely, you know, going further, you'll have a good, business. And revenue sharing I mean, like, revenue per in, in, in a percentage sharing, you will find more in furniture parts and others.

Speaker #3: For sure. Then, container. And hence, like, as I think, your question wasn't more on EBITDA.

Speaker #5: Okay. And your focus is on profitability. Are there any lower-margin products or customers where you are deliberately willing to sacrifice volumes while prioritizing higher-margin opportunities across containers, sales, and so on?

Siddhi Mehta: Okay. Your focus on profitability, are there any lower margin products or customers where you are deliberately willing to sacrifice volumes while prioritizing higher margin opportunities across containers, paints?

Manish Dedhia: Yeah. That's what I already said in my earlier questions, that we are going away with many of the products which are not good profit margin or profit trainer. So definitely we are closing that product.

Speaker #3: That's what I already said in my earlier questions, that we are going away with many of the products which are not good profit margin, or are profit drainers.

Speaker #3: So, definitely, we are closing that product.

Speaker #5: Okay. Okay. And sir, since all the existing verticals are showing growth, and IBC will add another growth driver from Q3, can you indicate which two or three businesses will contribute the largest incremental revenue towards the ₹1,000 crore milestone while maintaining the company's focus on profitability?

Siddhi Mehta: Okay. Sir, since all the existing verticals are showing growth and IBC will add another growth driver from Q3, can you indicate which two, three businesses will contribute the largest incremental revenue towards the INR 1,000 crore milestone while maintaining the company's focus on profitability?

Speaker #3: So obviously, the packaging will be the most, because my 80% is coming from them. So definitely. But, till I think ₹1,000 crore also, we will have almost a similar line of business.

Manish Dedhia: Obviously the packaging will be the most because my 80% coming from them. So definitely. But till I think INR 1,000 crore also, we will have the almost similar line of business. So we are expanding in both the things, container and Furnastra parts. So I think 80/20 ratios will remain, most of the time it will remain the same.

Speaker #3: So we are, we are expanding in both the things: container and furniture parts. So I think 80, 20 ratios will remain most of the time will remain the same.

Speaker #5: Okay. And, okay, I think that's it. Thank you.

Siddhi Mehta: Okay. I think that's it. Thank you.

Speaker #1: Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Karan Thakur for closing comments. Over to you, sir.

Operator: Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Karan Thakur for closing comments. Over to you, sir.

Speaker #2: Thank you, everyone, for joining the conference call of Mitsu Chem Plast Limited. If you have any further queries, you can write to us at research@kirinadvisors.com.

Karan Thakur: Thank you everyone for joining the conference call of Mitsu Chem Plast Limited. If you have any further queries, you can write to us at research@kirinadvisors.com. Once again, thank you everyone for joining the conference.

Speaker #2: Once again, thank you, everyone, for joining the conference.

Speaker #3: Thank you.

Speaker #1: Thank you. On behalf of Kirin Advisors Private Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

Manish Dedhia: Thank you.

Operator: Thank you. On behalf of Kirin Advisors Private Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you, everyone.

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Q1 2027 Mitsu Chem Plast Ltd Earnings Call

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