Ladies and gentlemen, good day and welcome to the Ami Organics Limited Q4 FY 2025 earnings conference call hosted by JM Financial Institutional Securities Limited. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Krishan Parwani. Thank you, and over to you, sir.
Yeah, I have. Good afternoon, everyone, and thank you for joining us on Ami Organics Q4 and FY 2025 earnings conference call. Today we have with us Ami Organics management, represented by Mr. Naresh Patel, Chairman and Managing Director, Mr. Abhishek Patel, Vice President Strategy, and Mr. Bhavin Shah, Chief Financial Officer. I would now like to invite Mr. Bhavin Shah to initiate the proceedings. Over to you, sir. Thank you.
Thank you, Krishan. Good afternoon, everyone. We are pleased to welcome you all to our earnings conference call to discuss Q4 and FY 2025 financials. Please note that a copy of our disclosure is available on the investor section of our website, as well as on the stock exchanges. Please do note that anything said on this call, which reflects our outlook toward the future or which could be construed as a forward-looking statement, must be reviewed in conjunction with the risk that the company may face. The conference call is being recorded, and the transcript, along with the audio of the same, will be made available on the website of the company and exchanges. Please note that the audio of the conference call is the copyright material of Ami Organics and cannot be copied, rebroadcast, or attributed in press or media without specific and written consent of the company.
Now, I would like to hand over the floor to our CMD, Mr. Naresh Patel, for his opening statement. Over to you, sir.
Thank you, Bhavin. Good afternoon, everyone. I hope you are all doing well. I will start with a look at the broader industry landscape before diving into our performance for Q4 and FY 2025. The global economy continues to face significant uncertainty driven by shifting geopolitical dynamics and evolving policy decisions. For the chemical industry, a major factor will be the unfolding U.S. tariff framework. In chemicals, everyone is watching which countries win preferential terms and how China, likely facing higher duties, will react. These developments will drive fluctuations in prices of both raw materials as well as finished goods, setting the stage for a highly dynamic chemicals market in 2025. Zooming in on our key industries that we saw, pharmaceutical industries remain our largest revenue contributor. Demand for pharmaceutical intermediates remains stable, and we are witnessing a notable increase in CMO/CDMO inquiries.
India is increasingly recognized as a viable alternative to China, a trend strategically positioned to leverage. On the policy front, pharmaceuticals are exempted from U.S. tariffs. However, the U.S. government has initiated investigation into imports of pharmaceuticals and semiconductors, which may lead to future tariff measures. Given the multifactorial nature of these potential outcomes, we will refrain from speculations, but we will continue to watch the developments as we progress through 2025. For battery chemicals, despite moderate demand for electric vehicles globally and delays in new battery cell capacity across the sector, we are observing a positive shift. Manufacturers are actively diversifying supply chains away from China, a movement accelerated by U.S. tariff policy. The transition presents significant opportunities, and we are well prepared to capitalize on this evolving landscape.
Moving on, the semiconductor industry, while appetite for chips to power the data centers behind the artificial intelligence boom continues to thrive, demand for legacy semiconductors found in cars, industrial equipment, and other devices has been subdued in recent months. Our strategic initiatives in Korea, Japan, and Taiwan are yielding encouraging results, and we are confident this market will play a pivotal role in our future growth. Overall, we remain cautiously optimistic about demand, even as a cloud of uncertainty continues to hover over the industry. Coming to Ami Organics' performance for the year, I am delighted to report that FY 2025 marked a landmark year for Ami Organics as we crossed the INR 1,000 crore revenue threshold.
This achievement is a testament to the relentless hard work of every single employee at Ami Organics, as well as the steadfast support of our stakeholders, such as our customers, suppliers, shareholders, and all other stakeholders who were part of our journey directly or indirectly. On behalf of the leadership team, I express our deepest appreciation for our stakeholders' contributions to this milestone. As we cross a big milestone in our journey and enter a new phase of growth, the need for a distinct and future-ready brand identity becomes increasingly evident. The identity which honors our enlarged vision to build a diversified specialty chemicals company serving various industries such as pharmaceutical, semiconductor, battery chemicals, petroleum, agrochemicals, cosmetics, and preservatives, as well as reflects our unwavering commitment to serving humanity in a sustainable manner.
To support this transformation, the management has decided the strategic decision to rename the company from Ami Organics Limited to Acutaas Chemicals Limited. Looking ahead in FY 2026, we anticipate continued growth in our CDMO business, bolstered by increasing demand and new CDMO contracts. On the generic side, as well as we have several molecules within our four generic intermediates portfolio that are expected to benefit from patent expiration in 2025 and 2026, driving further momentum. Additionally, our electrolyte additive business is scheduled to commence production from a new brownfield plant at Jhagadia site in the second half of FY 2026, with other business segments poised for steady advancement. Based on these factors, in FY 2026, we are confident in delivering 25% revenue growth, a target we have constantly achieved for the past 15 years.
To conclude, I reaffirm our commitment to delivering sustainable growth and value for all stakeholders as we navigate the opportunities and challenges ahead. Now, I will hand over the floor to our Vice President of Strategy, Abhishek Patel, for further business updates. Over to you, Abhishek.
Thank you, Naresh -bhai. Good afternoon, everyone. Let me provide further insight into our business performance. Starting with the pharmaceutical intermediates, this segment delivered revenue of INR 273 crore in Q4 FY 2025, which is a strong growth of around 44% YoY. For the full year, pharma intermediate business delivered revenue of INR 854 crore, which is a stellar 50% growth YoY. CDMO business was a key growth driver for this business, whereas pharma intermediate business continues steady growth momentum. Moving on to specialty chemical business, this segment reported a flat revenue of INR 36 crore during the quarter. For the full year, the revenue was INR 153 crore, which is a 2% growth YoY. While the overall business looked flat for the year, this was purely driven by degrowth in BFC business, which was offset by growth in commodity chemical business.
I would like to highlight that commodity chemical business saw strong volume growth of more than 25% during FY 2025. On the capital expenditure side, CapEx for this financial year stood at INR 195 crore, primarily allocated to Ankleshwar site, as well as solar and electrolyte additive projects. Let me give you some further updates on the CapEx. Starting with Ankleshwar site, the CapEx work is almost completed, and I believe during the current quarter, we will capitalize the remaining block, block number one. On the solar side, I am delighted to share a successful commissioning of a 10.8 MW solar plant. A newly commissioned solar plant is projected to deliver substantial annual cost savings by meeting most of the electricity requirements of our company's Ankleshwar and Jhagadia units in Gujarat. In addition to the 10.8 MW power plant, we are actively developing another 5 MW.
The conference is now being recorded.
This project is expected to complete in the near-term, which is to fulfill the electricity need of the Sachin unit of Sachin unit, Guj arat. The CapEx for the full upcoming year will include spillover CapEx of electrolyte additive business, along with maintenance CapEx and a new pilot plant facility at Sachin, Surat. The pilot plant will help us expedite scaling up of new products, as well as manufacturing of high-potent chemicals and new products under Cram's model. Overall, CapEx for the upcoming year is expected to be around INR 200 crore, and we have sufficient cash on hand to fund this CapEx through QIP process and internal accruals of FY 2025. Before I conclude, I want to reaffirm our confidence in delivering 25% revenue growth in FY 2026, a milestone we have consistently achieved for the past 15 years. On the margin front, we are committed to delivering further improvements in the margin in FY 2026.
I also want to highlight a key trend driven by our business cycle. Q1 typically is our weakest quarter, with revenues steadily increasing sequentially till Q4, which is always the strongest quarter. This pattern results in H1 contributing around 40% of the total top line, while H2 accounts for around 60% of the total year revenue. As a result, H1 may appear softer, and this will reflect in our margin with a lower margin in Q1 and Q2 due to lower top line. With that, I will hand over our floor to our CFO, Mr. Bhavin Shah, for his financial update. Over to you, Bhavin-bhai.
Thank you, Abhishek-bhai. I would like to briefly highlight the key performance metrics for the quarter before we open the floor for questions. I will start with the quarterly performance. Revenue from the operations for the quarter reached INR 308.5 crore, representing 37.1% growth YoY and 12.2% QoQ. Gross profit for the quarter was INR 146 crore, reflecting a 62.3% increase compared to the same period last year. The gross margin expanded by 734 basis points YoY and 108 basis points sequentially to 47.3%. Gross margin was driven by better product mix. EBITDA for the quarter was INR 85 crore, which was almost double when compared to the same period last year. EBITDA margins were at 27.5%, up 835 basis points YoY and 257 basis points QoQ. EBITDA margin was driven by expansion in gross margin as well as operating leverage.
PAT for the quarter was INR 62.7 crore, which grew almost 2.5x compared to the PAT of INR 25.7 crore in Q4 FY 2024. PAT margin for the quarter was 20.3%, which saw an expansion of 892 basis points YoY and 380 basis points QoQ. Moving to the performance for FY 2025, revenue from the operations for FY 2025 closed INR 1,006.9 crore, representing a growth of 40.3% year -over- year. EBITDA for the FY 2025 was INR 232.1 crore, up 80.6% YoY. PAT for FY 2025 was at INR 160.4 crore, which was almost double when compared to the adjusted PAT for the same period last year. Moving on to the balance sheet item, net cash and cash equivalent were at INR 249 crore. I am happy to share that even with robust growth, we are able to control our working capital, which was 114 days during FY 2025, against 116 days in FY 2024.
This was driven by improved inventory days and stable receivable days. Better working capital management led to a strong generation of cash flow from operations of INR 118 crore, which was around 51% of the EBITDA for FY 2025. With that, I request the moderator to open the floor for questions. Thank you.
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. 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 Sudarshan Padmanabhan from ASK Investment Managers. Please proceed.
Yes, thank you for taking my question. Sir, my question is, you know, this year has been very strong on the CDMO side, the pharma side, which has driven the growth. Going forward, I mean, we are very excited about this business. One, on the CDMO side, if you can give some color on the number of products in the late stage which can hit the commercial. And, you know, outside the pharmaceutical side, on the chemicals, because we have a fairly exciting opportunity on the semiconductors.
Hello.
How do we see the scale up there?
Hello, Mr. Sudarshan sir? Yes.
Yes.
I'm so sorry to interrupt, but can you please speak a bit louder?
Yeah, can you hear me now?
Yes.
Yeah.
Okay.
Yeah. So, I would like to understand, you know, the opportunities on the CDMO side, you know, how much of, you know, molecules are there in the late stage which can go to commercial, and that will drive the growth in the next couple of years. And outside the CDMO side, specifically on the chemical side, you know, we have exciting opportunities on the semiconductor space, you know, with Baba Fine Chem. You know, how do we see the scale-up happening on that side? Because that has not contributed as much as what we expect this year.
On the CDMO business side first, as we discussed during last our call also, that we are expecting this business to go up to INR 1,000 crore by FY 2028, and the plan is still intact and going well on the track.
We discussed during last call also that one of the CDMO projects is scheduled to supply the commercial quantity that is already on track, and other products are also going on track. But it is very difficult for us to share the number of products at this stage of it. As in, when it gets completed, we will update you. On the business, on the semi chem business, as we discussed, we are in the process of completing our CapEx for electrolyte additive production that is going on track and expected to get completed by H1 FY 2026, and H2 FY 2026 onward, we should have the production facility working, and that will scale up our business or revenue streams from that business also. On the semiconductor business side, the seeding is going on. We are targeting, or we are expanding our reach into newer geographies of Taiwan, Korea, and Japan.
This is already going well with new customer onboarding, and it will take its own time because it's an approval, full approval system which goes for some time, and then we can expect revenue starting from those sunrise industries in the next coming years.
Sure, sir, and sir, you know, we had talked about, you know, the continuous flow chemistry, you know, gathering good momentum. You know, if you can give some color on, you know, what is the progress there, I mean, you know, not necessarily the number of molecules, but how much have we progressed there and how much more benefit we can derive from the lead perspective?
This question is a little technical, so I will tackle this. In continuous flow chemistry, in the last four years, we have converted our several chemistries like esterification, trans-esterification, ammoxidation, oxidation, chlorination, photo-chlorination, diazotization at a very large scale from 10 metric tons to 100 metric tons, and one in chlorination photo-chlorination up to 1,000 metric tons per month capacity we already developed. Some chemistries are already commercially operated. Some are under installation right now.
Sure, sir. And, I mean, how do we see the progress? I mean, a large part of what we had initiated has already been implemented, or do we still have a lot more ahead, you know, where to go here?
These are the chemistries which are already implemented.
Sure. Sure, sir. I'll join back with you. Thank you.
Thank you. Before we take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Rahil Shah from The Boring AMC. Please proceed.
Congratulations on a very strong quarter, sir. My question is pertaining to the Ankleshwar unit. So, I understand block one is being used for our primary marquee customer in CDMO. But for block two and three, have we decided how it would be used? Could it be for a specific product, or would it, you know, depend on the multiple products that we have?
Block three is dedicated for one of the marquee customers, and block two and block one will be used for other CDMO as well as other our products as well. It is not dedicated for anyone. It is a fungible multi-purpose facility.
Okay, sir, and last question on the Baba Fine Chem part, so I understand the end-use segment is sort of seeing a down cycle, and that's why the demand sluggishness is very, very evident, so when do you foresee first hour Heraeus side coming back and the addition of more customers? Because we are also in the process of maybe getting more approvals done with more customers.
So, existing business will be revamped starting from this year. And new customers, we already added 6-8 customers this year with the already submitted samples to the various customers in Japan, Korea, and Taiwan. So, that will be started ramping up also from the next one or two years. It will be also giving us a good revenue visibility for us in semiconductors. And new samples are already going, new customers are already enrolling. We are also in discussion with big semiconductor manufacturers in this area as well.
All right, sir. Thank you so much. That's all from my side.
Thank you. The next question is from the line of Jason Soans, IDBI Capital. Please proceed.
Sir, thank you so much for taking my question, and congrats on a splendid performance in this quarter. Now, sir, just, you know, highlighting from our previous participants' question also, CDMO pipeline definitely looks strong for us in terms of, you know, derivative might or other sales. And I remember that you are not giving any API-specific commentary for confidentiality reasons, so I understand that. So, but just in a directional sense, if possible, could you give some light on how is the pipeline looking in terms of, at least in terms of therapeutic areas? You know, how is the pipeline looking there on that side, especially with a lot of these tariff things coming on China as well? So, how is the demand looking after this whole tariff thing and this uncertainty?
Just at least some light in terms of therapeutic areas, if you could give, you know, in terms of the CDMO pipeline.
Therapeutic area is very wide for us. 70 therapeutic areas, which is very core therapeutic area for us. But for CDMO, it's not related to therapeutic area. It's more related to your capability and chemistry strength and how you deliver the molecule in time with all regulatory requirements. So, that is a difference against the generic segment where the therapeutic area is important to launch in a generic segment. So, these are the two differences between the therapeutic area as well as the generic segment. In the CDMO, we have a strong pipeline, number of molecules I can't disclose over here, but we have a lot of molecules in clinical trials coming, working with several innovators worldwide, and in generic segments, as I given my commentary that we have several molecules coming, launching in 2025, 2026 expiring patents.
So, they are now picking up very well, and that will be also a growth driver for our generic business in the upcoming couple of years.
Sure, sir. So, block one and block two in Ankleshwar should be seeing good ramp-up in FY 2026 as well.
Yes, yes.
Yes. Okay, sir. Sir, I just wanted to know if you could give us the revenue contribution of Baba Fine in revenue and PAT in FY 2025?
Okay. Okay. So, see, again, what we are looking at. We are giving the revenue and contribution of pharmaceutical and specialty. So, specialty for the FY 2025 is 15% of total revenue, and overall EBITDA for specialty for the year is 14.7%.
Okay. So, you're not giving the numbers for Baba Fine then?
No, we are only disclosing a segment of specialty and pharma only.
Okay. Sir, could you just repeat the margins, sir, for advanced, intermediate, and specialty chemicals for the whole year?
Advanced intermediate for the whole year is 24.5%, and specialty is 14.7%.
Okay.
Average is 23%.
Yeah. So, advanced is 24.5%, and specialty chemicals is 14.7%, right?
Yes, yes.
Oh, thanks, thanks. Thank you so much, sir. And, sir, I can understand there is a, I mean, this semiconductor space is a difficult thing to crack. But are we still looking at FY 2026 being a good year for Baba Fine Chemicals in the growth sense?
Yes.
Okay, okay. And, sir, coming to the electrolyte additive business, you know, just some time back, we were talking about, you know, now I understand you set up a facility, and that's in progress, and that will come in H1 FY 2026. Now, if you could give us some, you know, some numbers in the sense, we used to talk about $8 per kg, you know, 200 tons to begin with, something like that, some numerical sense, would that be possible at this point in time? Or you could give us some revenue indication in terms of electrolyte additives for 26, 27?
For FY 2026, the start of production facility only, the revenue for the capacity is 2,000 metric tons for VC and 2,000 metric tons for FEC. For initial, it will be a very, very low utilization. For the revenue number to you to work out, it will be more or less in the range of the current market price only. We are not expecting any premium pricing which we can expect from this market. It will be on a market-driven only.
Market-driven only. So, sir, what is the average realization right now in the market, as you can see, for VC or FEC?
So, I'm jumping in this question. Answer is that we have a dedicated contract for the supply to the dedicated customer. So, there is a formula, and that formula will be implemented for our supply. So, that is related to the raw material price. So, that price, I cannot disclose right now to you, but that is sufficient enough to generate good revenue as well as good margin for us in this segment.
Sure, sir. And, sir, just lastly, wanted to know, you mentioned about the CapEx for FY 2026. So, you also mentioned three parts to it: spillover CapEx for Ankleshwar, solar power plant, which we are, I think, increasing or putting up a 5 MW more in the solar side, and a Sachin pilot plant. So, sir, could you give the breakup for this? And I just wanted to know more about the Sachin pilot plant. What do you exactly want to do there? And could you give more color on this?
So, sir, a pilot plant at Sachin facility will help us scale up our R&D products because it will be a more. Okay. I'm just jumping in this answer because it will be technical as well. So, we have our own pilot plant, which is going on very well. But being in more demand and more product coming into the pipelines, and for the scaling up, we need to expand our pilot plant as well to support our large capacity, which is we have built up in Ankleshwar as well. So, for that reason, we are expanding our pilot plant with the new technology, new facility. Also, we are introducing one more segment, which is high-potent chemical segment, which was not there with us in the past. So, that will allow us to have also the CDMO in anti-cancer segment as well.
So, that is considering all these possibilities as well as supporting our expanded capacity in Ankleshwar. We are expanding our pilot plant in that sense.
Okay, okay, sir. And just the spillover CapEx for Ankleshwar and solar power plant, Sachin pilot plant, how is this CapEx? Will it come up to INR 200 crores? Hello? Yeah, I'll join the queue. I'll join the queue. Thank you.
Thank you.
I'll give you the answer.
The next question is from the line of Krishan Parwani from JM Financial Institutional Securities Limited. Please proceed, sir.
Yeah, hi sir. Congratulations on a very strong set of numbers. Just two questions from my side. Firstly, I think, Abhishek -bhai, you highlighted that our EBITDA margin could be soft in 2025-2026, likely due to seasonality. But on a full-year basis, will our EBITDA margin be higher than, let's say, 23% reported in FY 2025?
Definitely. It is going to. That is what, in fact, I highlighted first, and then because of the sequential nature of the business, I did down to the quarter-wise thing.
Understood. Yeah. So, that's clear. Secondly, you know, is there any update that you'd like to share on the new CDMO contracts? I think Naresh-bhai in the last call highlighted that, you know, the revenue contribution will start in FY 2026. So, how far are we there in terms of the commencement of the revenue contribution?
We are on track on that. Well, this and that is our phase, and now qualification stage is going on. We are on track for the time being on that area.
Okay. So, will the contribution be more in the second half? Or, I mean, when are you expecting? In the first half or in the second half?
Second half.
Second half. Understood, sir. Understood, sir. Thank you so much for answering my questions, sir. Wish you all the best.
Thank you.
Thank you. The next question is from the line of Dhara from ValueQuest. Please proceed.
Hello. Thank you so much for taking my question. Sir, if I may have missed the margin that you have provided for the pharma and chemical and the specialty chemicals, if you could please repeat.
As I already mentioned, that margin for pharma full-year is 24.5%, and specialty is 14.7%.
Okay. Other questions are answered. Thank you.
Yeah. Thank you.
Thank you. The next question is from the line of Siddharth Purohit from InvesQ. Please proceed.
Yes. Thanks, sir. So, if you can give some clarity, what would be the overall market size of the anti-cancer intermediate that we are supplying? And is the market big enough for other players to start supplying to, like, you know, for the same intermediate that is used for Nubeqa, basically?
We are talking about whole anti-cancer market size?
No, particularly for Nubeqa. That is what is the market size that is. And there is another, probably another Indian player who is trying to scale up on the same intermediate. So, what is the addressable market for that particular intermediate? And is it big enough for multiple players to supply that intermediate? That's what I want to know.
Nubeqa, we can't say on that because it's not my product. And whatever the data available on the platform, we can go from there. We are a chemical supplier to our originator API manufacturer, and that market size depends on the contract what we sign. We have full visibility of the contract. There will definitely be any originator will not remain with one supplier. They have two suppliers. So, if someone else is already doing a second supply source, it's fine enough. And we both will get based on your performance and capability of the supply chain, we will get the business on that if it will be qualified and everything is done.
Okay, so the market size is big enough for multiple players to be present in that segment? That's what I'm trying to understand.
Sir, I can't tell these kind of things publicly as well. I'm bound with so many regulations and contracts, and I don't have any rights to speak about the end-user product.
Okay. Fair enough. Thank you, sir. I'll come back in case so.
Thank you. The next question is from the line of Jash from Dalal & Broacha. Please proceed.
Sir, if you could mention the CDMO sales for the year?
CDMO sale, we are not disclosing any. We are only disclosing the pharma intermediate and specialty revenues that we have already discussed because people would like to can derive so many things from that.
Okay, okay, fine. That was my only question.
Thank you.
Thank you. The next question is from the line of Jason Soans from IDBI Capital. Please proceed.
Yeah, sir, thanks for the follow-up again. Just wanted my last question to be answered only. You had mentioned a CapEx of INR 200 crore for 2026. And you mentioned spillover CapEx for Ankleshwar, solar power plant, and Sachin pilot plant. Just wanted the breakup. And totally, how much has been, you know, invested for Ankleshwar? That's all.
So, spillover CapEx is around INR 130 crore. And remaining would be the rest of the CapEx for maintenance as well as the pilot plant CapEx for the year. And total CapEx for the Ankleshwar site unit two is INR 310 crore.
Yes. Okay, sir. Thank you. So, basically, INR 130 crores will be done in 2026. The rest, INR 70 crores all for solar power plant and the Sachin pilot plant, right? That should be a fair assumption.
Spillover CapEx is around INR 30 crore, which includes the solar as well. And the pilot plant and maintenance is in the rest of the INR 70 crore. Not INR 30 crore. Rest of the INR 70 crores, sir.
Rest of the INR 70 crores, right. So, that's what I said. So, INR 130 crores for Ankleshwar and INR 70 crores for solar and Sachin, which adds up to INR 200 crores, right?
Yes.
Yes, sir.
Right, sir. Okay. That's all from my side. Thank you so much.
Thank you. Before we take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Dikshant Gupta from Geojit PMS . Please proceed.
Sir, I would like to ask, what are the expected costs from the solar power plant that you were talking about every year? How much can we save?
So, at peak, when the whole 16 MW project gets completed, we are expecting benefits of around INR 16 crore-18 crore per annum in the electricity bill.
Okay. And from when can we expect the benefits to?
11 MW is already completed, and 5 MW is under construction, expected to get completed soon.
Okay. And regarding the exports business, what will we be focusing on exports, or will we be focusing on the Indian market?
Both are our focus market. It's a customer and product-driven for particular market and particular products we are focused. It's not that we want to focus only certain market. We follow the diversification policy. Our revenue should not be concentrated to any of the single geography or single part of the world, and both are our focus market.
Okay. And even though the growth on advanced intermediates has been tremendous, but the growth in the specialty segment has been flat. So, is it because of the international geopolitical tensions, or have there been other reasons for it?
As we mentioned, the growth in the spec chem business was compromised because of Baba Fine Chem business for semiconductors for particular customer reasons. Otherwise, other spec chem business has grown well more than 25% volume handle.
Okay. And then finally, which would be will the debt level be likely low as it has been in the current year, or will we be looking for debt for CapEx to come?
Sorry? No, we are not taking any debt. Today is zero, and then going forward also in next one year, we are not expecting any debt to be on our balance sheet.
Oh, thank you.
Thank you. The next question is from the line of Akshay from A.K. Capital Services. Please proceed.
Hello.
Hi.
Yeah, sir. Sir, my first question is on the capacity utilization. So, what has been the capacity utilization at the end of FY 2025? And what is the peak revenue capability from all our plants?
Capacity utilization unit-wise, unit one has a capacity utilization of around 80%. It is almost full, operating almost at a full capacity. That's the reason for further growth in those products. We are expecting the production to come from unit two of next two blocks of block two and one. At unit two, the block three, which is already commercialized, is operating around at 50% capacity utilization. Unit three is operating at around 60% utilization level.
Okay, sir. And my second question is on the front of Specialty Chemical segment. So, do we expect the better FY 2026 compared to the FY 2025 in Specialty Chemical segment? And if the answer is yes, then you said that we had certain customer-specific issues in the specialty, sorry, in semiconductor segment. So, has it been resolved, or can you give some color on that?
On the spec chem business side, our commodity, our products like paraben and methyl salicylate are already growing. It has grown around 25% last year. I expected to go at almost similar pace in next financial year also. On the other spec chem business, let's say Baba Fine Chem business, it is again slowly, slowly picking up. And we are targeting to scale up in next financial year also. We have some new customers already coming in, and slowly demand is picking up. And the third stream is the electrolyte additive business, which is also starting to produce revenue in H2 FY 2026. So, that's the reason we are expecting even spec chem business also to grow in FY 2026.
Okay, sir. And lastly on the FY 2028 guidance of CDMO revenue of 1,000 crores. So, it is the CDMO, and the advanced intermediate would be different. Like, what might be the share of specialty chemicals in FY 2028 from our guided as we guided 1,000 crores from CDMO?
Sorry, I didn't get you. We are targeting around INR 1,000 crore business for CDMO business by FY 2028. And overall, we have already guided that we are going at a 25% figure. So, that is still intact without any deviation.
Okay. Just wanted to understand that what is the share of CDMO in advanced intermediate sales?
No, that we are not disclosing as I just gave it to some other participant.
Okay. Fair enough, sir. Thank you so much.
Thank you. The next question is from the line of Abhigyan Srivastav from Marcellus Investment Managers. Please proceed.
Hello, sir. Am I audible?
Yes.
Okay. Sir, congratulations on the great set of numbers. I have two questions. My first question is, in the 25% revenue growth that you are projecting for FY 2026, what is the price assumption that you're taking? Are you taking prevailing prices, or are you considering an improvement in the overall prices?
So, we have a large business chunk coming from our advanced pharma intermediate business, wherein CDMO business already assigned and confirmed business with pricing. And as you know, that on a regulatory market, most of our business, almost all our business, is backed by long-term supply contract only. So, that gives us a fair degree of visibility in terms of pricing also. On the domestic side, it is based on the prevailing market conditions.
Got it. Thank you, sir. The second question is, currently, what is the price trend that you are seeing in your generic portfolio? Is it stable, or is it going down?
It is growing, actually. The generic business is also growing at a good pace, and we are expecting further growth in FY 2026 because of some of the products getting off-patent, and we already started getting good traction in the market.
Sorry, sir. Was this for the prices?
Prices are stable, and raw material prices are also stable.
Got it. Got it.
Thank you. The next question is from the line of Dhara from ValueQuest. Please proceed.
Thank you for taking my follow-up question. Sir, how much of the INR 170 crore CapEx that we are doing for the additives project, how much has been incurred so far?
Sorry. Can you repeat the question once again?
The INR 170 crore CapEx that have been assigned for the additives project, how much of that would be incurred so far?
Yes, around INR 35 crore, right?
Around INR 35 crore.
And if you can provide the split of the INR 200 crore CapEx for FY 2026?
So, it is already, I think, INR 130 crore is for electrolytes, around maintenance CapEx, and pilot plant CapEx, both together is INR 70 crore.
Okay. So, additives will be INR 130 crores in 26?
It should be over INR 170 crore.
Okay. Got it. Thank you.
Thank you. The next question is from the line of Ajay Surya from Niveshaay. Please proceed.
Congratulations on the performance. Sir, my question is more on the macro side. Sir, as we look currently at the ongoing tariff situation and on the pharma front, USA being aggressive to manufacture them, so though we are a part of the supply chain, supplying API intermediate, and given our strong guidance, what risks do we foresee? If you can highlight them across the segments of CDMO, because even the API intermediate, which we sell, is being consumed, though, by the European customers, but the end market for them is, again, USA, a significant market for them, what risks do we foresee? If you can highlight them across segments of CDMO, the API intermediate, and the specialty chemical business?
I will take the first part. The second part will be taken by Abhishek. As I also gave you during my commentary that there is not any taxation is incremental pharmaceutical at U.S. side. Any something will come, who will be in a better position in that will be helping to grow the business in that. AMI Organics is luckily don't have any direct sales or negligible sales in U.S. We have everything is either in Europe or in Asia or in India. So, and we are also in a supply chain at a bottom level. So, impact will also not great come to us as well. But if there is a percolation, that will be supported with the operation efficiency as well as raw material also have some advantage during that. So, we have different formulas calculated at our end.
If it will be some, then we will definitely come back to you if there is significant changes in our growth or revenue in the future when, if it is implemented at U.S., and giving form to the official for the answer.
On the second part of your question related to CDMO business, which is a large contributor for us and goes to U.S. market. Here we are supplying it to the originator in some way. It's an in-patent product business. For tariff front, it is more immune to any other business on a tariff side.
Okay, sir. Got it. And sir, another question, because we have seen in the CDMO business of other companies as well that when there is such a ramp-up, the innovator generally builds up a lot of prior inventory. So, if you can highlight on this front, whether our shipment or any risk of inventory build-up happening by the innovator going forward, which can again lead to a stable or a lesser growth for us in the future?
I don't know. We don't disclose all these things.
Okay, and one last question only. Can you please provide the capacity utilization for our specialty chemical business?
It's maybe 60%, as you just mentioned.
Okay, sir. Thank you. All the best.
Thank you.
Thank you. Before we take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Maitri Shah from Sapphire Capital. Please proceed.
Hello.
Hello?
Yes.
Yeah, good afternoon. Congratulations on a great result. I just have one question. So, on the specialty chemical side, currently our margins are around 14.7%, and we see a ramping up from the semiconductor business, and also from the second half, we'll see a ramp-up from the electrolyte business. So, do we see the margins scaling up from here? Or they will remain in this range of 14%-15%?
Margin for spec chem business will be around in this range only because it's an initial year, and slowly it can ramp up when we scale up the operations.
When do you expect a margin to spike maybe 16%-17% in the spec chem business maybe two years from now?
So, it can happen by, let's say, Q4 or early next financial year.
By Q4 or next year, so we do expect better margins from the electrolyte and the semiconductor business?
Yes.
Okay. Okay. That is it from my side. Thank you.
Thank you. The next question is from the line of Akshay from A.K. Capital Services. Please proceed.
Sir, my question has been answered. Thank you.
Thank you. The next question is from the line of Sujeet Shah from SK Enterprise. Please proceed.
Hello. Hello. Am I audible? Yes. First of all, congratulations for a good set of numbers, and my question is, what are your revenue and margin target for next two to three years?
As we are already guided, we are targeting revenue growth of around 25%, and margin should improve from here onward only.
Okay. Okay. Thanks a lot. Thank you.
Thank you. Before we take the next question, I would like to remind participants that you may press star and one to ask questions. The next question is from the line of Sai Kumar, an individual investor. Please proceed.
Hello. Hi, sir. Congratulations on a great set of numbers. So, my question is on the electrolyte salts. So, in the past, you said you were discussing that there were discussions going on for an investment of INR 300 crore. So, I mean, in the past, you had paused it. So, any changes or something, any development going on that side?
Status remains the same only as on date also.
So, the deal with what we had formed is still on the same status quo because still right now there is no movement in that.
Okay. Got it, sir.
And regarding the electrolyte additives, so you said you have some 2,000 metric tons per annum, which is going to get commercialized in the H1. So, up to what scale you are going to, what is your growth guidance on that? And what is the scale you are going to take it up to 4,000 metric tons per annum? Or what are your goals on that electrolyte additives?
So, production will start from H2 FY 2026, and slowly, slowly it will ramp up. So, in three-year time, it should reach at the optimum capacity utilization.
Okay. So, you're okay. That's fine, sir. Yeah. And recently, you got PMDA approval, right? So, is there anything you want to take I mean, give some guidance on any molecules getting from Japan side? You want to guide us something on that from?
Yeah. So, PMDA is a good achievement for us because now we have two manufacturing sites approved by PMDA. So, this will help us to promote our intermediates to different customers in Japan. We are already having a business in Japan. And with this accreditation, it will be a more preferred vendor for Japanese buyers. So, it will definitely help us to grow our business in Japan.
Okay. In the near future, right? Yeah.
Yeah, yeah. Definitely.
Okay. Yeah. That's all I have, sir. Thank you.
Thank you very much.
Thank you. As there are no further questions, I would now like to hand the conference over to management for closing comments.
Thank you to the JM Financial team for hosting our conference call. We appreciate everyone's question and hope we have addressed most of your queries. If we missed any of your questions, please reach out to our investor relations team, and we will get back to you promptly. Once again, thank you very much, and have a good day and good weekend.
On behalf of JM Financial Institutional Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.