Q2 25/26

Oct 17, 2025

Summary

Q2 revenue rose 149% YoY to INR 731 crore, while H1 revenue grew 122% to INR 1,217 crore. FY26 growth guidance is 50%+, with margin recovery expected as older inventory clears and agro, pharma, and polymer demand improves.

Greetings, ladies and gentlemen. Good day. Welcome to Anupam Rasayan India Limited earnings call. As a reminder, all participant line will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Ms. Krishna Patel from EY. Thank you, Shivani, and good evening, everyone. Welcome you all to Anupam Rasayan India Limited's Q2 FY26 earnings conference call. To take us through the results and to answer your questions, we have with us the management of Anupam Rasayan, represented by Mr. Anand Desai, the managing director, Mr. Gopal Agrawal, the chief executive officer, Mr. Amit Khurana, the chief financial officer, and Mr. Vishal Thakkar, the deputy chief financial officer. The discussion that we may have today may contain certain forward-looking statements relating to the future events and future performance. Numerous factors could cause actual results to differ materially from those in the forward-looking statements. Please note the audio of this call is a copyright material of Anupam Rasayan India and cannot be copied, rebroadcasted, attributed in press, media without specific written consent of the company. I would like to now hand over the call to Mr. Anand Desai, the managing director, for his opening comments. Thank you, and over to you, sir. Thank you, Krishna, for the introduction. Good evening, everyone, and a warm welcome to the Q2 FY26 earnings call of Anupam Rasayan India Limited. The overall business environment has seen a notable improvement during the quarter. The chemical industry is witnessing a clear recovery after several challenging quarters, supported by easing global supply chains, stabilization in raw material prices, and a revival in end user demand across key sectors. The macroeconomic sentiment in India and globally has also strengthened, providing a favorable backdrop for growth. Against this improving environment, I am delighted to share that Q2 FY26 has been one of the best quarters of our company. We delivered a stellar performance with consolidated revenue from operations of INR 731 crores, reflecting exceptional growth of 149% year-on-year and 51% sequentially. For the first half of FY 2026, the consolidated revenue stood at INR 1,217 crores, registering a robust 122% Y-o-Y growth. I am pleased to highlight that within just six months of this financial year, we have already surpassed the total revenue of FY 2025, demonstrating the resilience of our business model, strong customer relationships and operational excellence. Our subsidiary, Tanfac Industries, also delivered a strong performance during H1 FY 2026, reporting revenue of INR 345 crores, marking a 57% year-on-year growth. On profitability, the company reported consolidated EBITDA margins of 20% in Q2 FY 2026 and approximately 26% for H1 FY 2026. These margins were slightly subdued due to a few dispatches made from older inventory. We expect margins to normalize from Q3 onwards as new contracts and pricing structures take effect. Despite this temporary impact, the company remains well-positioned to sustain strong growth and healthy profitability for the remainder of the year. Overall, this quarter truly reflects the best of Anupam Rasayan, our agility, customer trust, and execution strength, and supported by a favorable industry environment and renewed momentum across global markets. With this, I would like to hand over the call to our CEO, Mr. Gopal Agrawal, to take you through the detailed operational and financial performance. Thank you. Over to you, Gopalbhai. Thank you, Anand Desai. Good evening, everyone, and thank you for joining us today. Indeed, it has been a remarkable quarter for Anupam Rasayan. The results clearly reflect the strong execution across all verticals, improved industry sentiment, and our team's continued focus on growth, customer satisfaction and operational discipline. Our order book remains healthy at around INR 4,646 crores, spread over five to seven years. We have made significant progress in commercializing majority of these products during the year, and we expect these orders to contribute approximately INR 450 crores in revenue during FY 2026. In Q2 FY 2026, we successfully launched one new molecule in pharma segment, further strengthening our product portfolio and demonstrating our ongoing capability in developing complex chemistries for global customers. Speaking about the segment-wise performance, Life Science related Specialty Chemicals contributed 84% of the total revenue in H1 FY 2026. Within this pharma segment accounted for 23% and registered a strong 201% Y-o-Y growth during H1 FY 2026, primarily driven by new product launches and scale-up of recently commercialized molecules. Performance Material contributed 16% of total revenue in H1 FY 2026, with revenue growing by 306.6% year on year, supported by a ramp-up of newly launched polymer molecule and expanding customer engagement in this space. On the operational side, the company continues to focus on optimizing its balance sheet and improving working capital efficiency. As highlighted by Anand Desai, we have made meaningful progress in reducing inventory levels by fulfilling certain specific orders, which while temporarily impacting margins, have improved cash flow and asset turnover. We anticipate a further reduction in working capital over the coming quarters, reflecting stronger operational efficiency and disciplined liquidity management. Overall, the momentum achieved this quarter positions us well for the sustained growth and profitability in the coming period. With this, I would like now to hand over the call to our Chief Financial Officer, Mr. Amit Khurana, to take you through the detailed financial performance. Over to you, Amit. Thank you, Gopal, and good evening, everyone. I would like to highlight that we expect a 50%+ growth in FY 2026, largely attributed to recovery in the agrochem segment and growth in polymer and pharma segment. With the receipt of INR 277 crores from warrants in July 2025, INR 175 crores has been used towards repayment of term debt, making the company net debt of INR 730 crore at consolidated level. On the working capital side, the numbers have improved significantly. On consolidated basis from FY 2025, working capital days have decreased from 409 days to 247 days in H1 FY 2026. We expect to close FY 2026 with further lower working capital and target to reduce working capital days to 200 days in near term. We are optimistic about the outlook of the company and the industry. We see significant growth potential, especially in the polymer sector, and is open to exploring inorganic opportunities to expand its presence in this space. With that, I will now hand over to our Deputy CFO, Mr. Vishal Thakkar, to share detailed quarterly and half-yearly performance. Over to you, Vishal. Thank you, Amit. Good evening, everyone, and thank you for being with us today. I would like to share some key financial performance highlights for the quarter before we open the floor for the Q&A session. I hope you have had opportunity to review the detailed presentation and the results that were uploaded on the exchanges company website as well. Consolidated financial highlights including Tanfac Industries for Q2 FY 2026. Revenues from the operation was at INR 731 crores as compared to INR 294 crores in Q2 FY 2025, up 149% YOY. EBITDA, including other income, was at INR 144 crores as compared to INR 82 crores in Q2 FY 2025, up 74% YOY, which translates to a 19.5% EBITDA margin in this quarter. Profit after tax was at INR 57 crores compared to INR 31 crores in Q2 FY 2026, up 87% YOY. This translates to 7.8% of the PAT margin for this quarter. Consolidated financial highlights for H1. Revenue from operations was at INR 1,217 crores as compared to INR 584 crores in H1 FY2025, up 122% YOY. EBITDA, including other income, was at INR 273 crores as compared to INR 142 crores in H1 FY2025, up 93% YOY. This translates to 22% EBITDA margin in H1 FY2026. Profit after tax was at INR 106 crores as compared to INR 43 crores in H1 FY2025, up 147% YOY, which translates to 8.6% PAT margin in H1 FY2026. Our top 10 customers contributed 81% of our revenue from operations in Q2 FY2026. With that, we will open the floor for Q&A. 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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use headsets 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 Meet Kada, MC Global Company. Please go ahead. Hello. Thank you for the opportunity. First of all, congratulations on achieving highest ever quarterly revenue for the company. Last quarter, you touched upon liquidating some part inventory going ahead, which should drive the revenue growth and reduce the overall working capital days. I wanted to understand that what percentage of the Q2 revenue should pertain to such inventory liquidation, or whether the sales is pertaining to any LOIs kicking in, and can the growth in agro application revenues be attributed to the sales? Thank you, Meet. Meet, if we look at the numbers, basically, if you look at our numbers, around 25%-30% of the revenue was from the older inventory, which we have liquidated, which we had highlighted last time as well, that is what we are requesting customers. And today, this quarter, we have been able to achieve that. Barring that as well, if you see the agrochem cycle has turned, the volumes are now strengthening in agrochem as well. And as mentioned in the earlier speech as well, pharma and polymer growth is supporting that growth momentum. You should look at the revenue growth accordingly. And we expect that we should be doing around about 50-plus percent total revenue growth. Okay. As mentioned in the On that 50% revenue growth, what should be the reasonable EBITDA margin which we should expect? You had guided for 26%-28% previously. Yes. So see, if you look at it, this one, that INR 150 crores odd or 30% of our revenue broadly is the one where you will have a lower EBITDA margin. But going forward, the EBITDA margin should be in the range of 25 plus or minus one percentage point, broadly. So going forward, you should look at that kind of an EBITDA margin. Okay, got it. Can you share the breakup of Performance Material segment within polymers, electronic materials, dyes and pigments? Because it has grown around 4X year-on-year, if you see. And if there is any update pertaining to Elementium contract or any inorganic acquisition which we are doing. First, Performance Material largely is more polymer-based products are going into the end market of polymers. Right now, the Elementium revenue, there is no meaningful revenue coming, contributed from the Elementium LOI. On the M&A side, as you asked, yes, we are actively looking for assets and let's see where we end up on that piece. Okay. So one pertaining to Tanfac, the company had signed supply agreements with multiple companies with a revenue potential of around INR 750 crores annually. Wanted to check where are we in terms of execution of those projects as the baseline period is nearing and we are just 15 months away. Can you throw some light on that? See, they are moving forward on that positively. The detailed one, I think I can arrange all the management there to really give you a detailed update on that. But they are going in the right direction. That is what I can say. Got it. Thank you so much, Vishal. That's it from my side. Thank you, Meet. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Krishna Parivar from JM Financial. Yeah, thanks for taking my question. I had one question on the balance sheet. I am looking at the standalone balance sheet. It continues to remain bulky. If you look at your trade receivable days or the actual receivables have gone up by INR 300 crores while your inventories are still almost at a similar INR 1,300 odd crore level or 365 days. So what is really happening? Because I think your commentary was that you have seen improvement in working capital, but working capital has continued to go up, right? So what is happening there? Let me address the debtors day first, because that is something which If you look at on a consolidated basis, my debtor days is lower, but on a standalone basis, the number is higher. And that is basically a debtor knocking off between me and my subsidiary. So Anupam, the standalone and the subsidiary, where we receive the money from the customer in the subsidiary, but it has yet to be upstreamed to the Anupam balance sheet, which is going to happen in this quarter. So that is the reason, if you see, there is a knockoff of 300 that you can see difference, which will be the main reason for that. So to that extent, if you look at it, my receivable actually has improved in terms of number of days and also absolutely. So that is one on the receivable side. I hope that clarifies. Yeah. I actually had that question because I do not think we should look at the subsidiary financials, because anyway, you have that Tanfac which you are fully consolidating because of your control even after holding 26%. But ideally, you should not be consolidating on. If I have to see the Anupam business, that is the standalone business, right? I do not think you are consolidating any other meaningful subsidiary apart from Tanfac. No. The INR 350 that I am talking is not about Tanfac. It is our other subsidiary. This is a wholly owned subsidiary, and that is the reason I- Which are ARIL Chloro Specialty or which subsidiary are you referring to? Anupam USA, Anupam Europe, which subsidiary are you referring to which is- It is a US and Europe subsidiary, and that is where I am saying the INR 350 is basically coming from there. That anyways, I am due to receive from them, they have received from the customer, and that is all is the timing difference there. That is the reason I am saying that it is my working capital. I am not, at this point, indicating any of the impact of Tanfac when I was mentioning this phenomenon. Okay. That would be a fair representation. I hope that is how you also would see it, right? Coming on the inventory side, on the inventory side also, if you look at it annually, I have been able to liquidate my old inventory. You would have to appreciate that I am growing on the pharma and the Performance Material side, where you would need to fund those businesses well. That is a contrary. One side there is a reduction and other side there is investment in the working, investment in the newer businesses, including pharma and polymer molecule. That is our Performance Material, which is the reason it is there. If you look at it from a revenue side, if you look at compared to last year, if you look at my number of days of inventory, I have significantly improved on the inventory side as well. As we go, you will see that we will be able to support a stronger growth. If I just give you a very simple example, if I look at what I am targeting this year also, I would have significantly reduced my working capital or inventory itself on the standalone basis as well, in terms of number of days. Okay, fair enough. I get that part, that you have to keep the inventories for the upcoming business or the incremental business. Even considering that 365 days of inventory is huge. What is your ROCE target? Because I do not see anything more than single-digit ROCE with this kind of inventories and the receivables. I think one thing that we have to also look at is that as we are going, we are only improving this number. As I had said that if you look at from compared to last year to this year, there is at least over a 50% improvement in my number of days. I am again reiterating that we will continue to focus on that to improve it further. As I had earlier also mentioned that typically our ROCE, as we had also historically been seeing, if you look at it, we have been in the double digit, more on the higher teens and over 20%. That is what we will look at it. It is a journey and it will take, as what Gopalbhai in his opening speech also mentioned, Amitbhai also mentioned, that over next 18 months time, you will see a more meaningful results from there as well. The trend is there. What today we can very confidently say is that if you see the performance, this quarter and this half has been a very strong performance. Also, if you look at it from an operating cash flow perspective, on a consolidated basis, we have been over INR 350 crores of cash flow from operations. On a standalone basis also, if we adjust for the receivables, it would have been over INR 300 crores. So all in all, the business has started turning around, not only from a P&L perspective, but also from a balance sheet perspective and a cash flow perspective. Now business has started giving back cash than what it was absorbing for last 2 years. Okay. If things are this gradual, then I am afraid that I think we might need to continue to borrow money because I do not see you making more than the. In any case, sir, just on the financials, can you please upload the financials of the subsidiaries that you are referring to on your website? Whatever we require, we will definitely do it. We have uploaded, in fact, we can also look at that. However, one comment that I would want to clarify, and the only thing that I am clarifying is that by the current operations, I am releasing cash and not consuming cash. If you look at my net debt has reduced, my cash flow from operations has increased, and it is significantly positive in the range of INR 350 to INR 300 plus crores. If we continue, I think we should be able to continue to deliver that kind of cash flow. So my reliance on debt is anyways reducing as for the current operations. Okay, no, because I see the standalone balance sheet, and then I am seeing an FCF negative there. Okay. Anyway. So that is why I was referring to. So- That's why I'm requesting if you could upload the financials for the wholly owned subsidiaries, then it will get clarity because for the time being, I'm seeing is majority or the entire consolidated minus standalone is the Tanfac. Which benefit ideally shouldn't be accrued because I know you are holding 26% controlling stake, so you can consolidate. That's just masking away. No worry, if you can upload it, then it will give us more clarity. The only thing I'm again repeating myself, but just for the clarity purpose. If you see basically the cash, when I mentioned the improvement in the cash flow, I have again said that this cash flow I'm talking about, which is due to me and not due to Tanfac. That's the clarity I'm giving right now also. If, let's say, which in this quarter or in this month, we'll be receiving that INR 350 crores of cash. If you look at that cash, which is basically mine, which is in my wholly-owned subsidiary and not in Tanfac. To that extent, I am taking into account your suggestion or your mention. Even after that, I'm saying I would've done operating cash flows over INR 250 crores to INR 300 crores. That is what I'm trying to say. This quarter, when you see those numbers, you will see that the results as well in that. Got it, sir. Thank you for answering my question. Wish you all the best and a very happy Diwali to the entire Anupam Rasayan team. Thank you. I hope I have been able to answer it with as much clarity as I can. And wish you happy Diwali to you as well from Anupam Rasayan. Thank you so much. Thank you. Thank you. A reminder to all the participants that you may press star, then one to ask a question. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Vikas from Individual Investor. My question again is- Yeah. Thank you for taking my question. My question is on standalone balance sheet again. Your gross block has increased from INR 14 billion in FY 2022 to almost INR 34 billion in FY 2025, whereas your EBITDA is declined. From 2022 you were earning INR 300 crore of EBITDA, which has declined to INR 265 crore. INR 1,000 crore of gross block you have added, whereas there is no incremental EBITDA which has come. Can you throw a light on this question? Sure. If you look at in 2022 September, we had announced the CapEx of INR 670 crore, which we have been able to complete now. Based on that, the revenues from those plants shall start kicking in from here on. To that extent, those assets were not available to us to utilize for the revenue generation, one. Two, if you recall what we had mentioned in our past conference calls also, that last two years we saw a strong headwind in the agrochem cycle, which has led to a degrowth in our revenue, which has translated into a lower EBITDA, which is what we are seeing here. However, if you see this quarter, we have done a INR 590 crore of one. I am talking only standalone and not a consol number. Also if I take off one-off, then also I am looking at INR 1,600 to INR 1,700 crore of revenue from the assets which today are not the new assets and from the old assets principally. If we go further, I think we have enough capital invested to really make that performance what we are looking for. My question was, your investments are not yielding any growth in profitability. While your top line may have increased in this quarter or in this half year, your profits have not increased. INR 1,000 crore of investments you have done is not yielding any profitability. That is my simple question. Sir, that is what I am saying, that the INR 1,000 crores that is invested is now asset put to use because it was a combination of the three plants which we have invested, which are going to now start yielding the revenue because those were under construction. And that is the reason you are seeing the increase in the gross block, which now going forward, you will see the results of those. Okay. Addition of INR 1,000 crores or whatever that the additional CapEx is basically going to yield results from going forward, and those were the investments which will now yield results. Okay. My second question is again, coming back to inventory. On standalone basis, when we see your inventory holding period, it is more than 700 days, whereas all the competitors who are in similar rating category, their holding period is less than 150 days. So what can be the reason for such a large deviation when the competitors are not increasing their inventory? Why you are increasing your inventory? Okay. First answer that, see, I would not try and make any comments on what is the business model of my peers, and I will leave it to their business model. As we had said in our past earning calls as well, and that primarily for last two years because my agrochem cycle had gone down and the revenues were lower, the inventory that was there, these are all inventories which are basically underwritten by the customers. However, the customers, because of their own channel inventory liquidation, they had requested to defer the supply, which is where the inventory has been on our balance sheet. Now as we go, those inventory is getting liquidated, as we mentioned in this call also. Over 150 odd crores of those inventories have been liquidated, and going forward, we will see those numbers being more in line with what we would expect ourselves to be, which if you look at, we are classically looking at around about 200 plus or minus 20 days as a working capital cycle in the near term, and then improving from then on. That is what we have been saying, and if you look at from a last 2 quarters that we have been mentioning, that journey has started, and it is playing out exactly what we had anticipated, and we believe that the journey will continue, and we will be able to deliver what we have promised. But there is a deterioration. And- Excuse me, but there is a deterioration in your debtors receivable also. In FY 2022 when we see your total debtor receivable was 97 days, whereas in FY 2025 end, in March, it is 266 days. What can be the reason for your debtors not paying up, or paying up with so much of delay? That again, when I had mentioned it in the last call or when we did the FY 2025 call, we had mentioned that, basically, when you have a headwind or when the market sales performance is lower, the customers will request for a longer payment cycle also, and which we have accommodated for some time because of the historical relationship of 20 or multi-decadal relationships, which we have accommodated. Today, if you see that days are getting compressed. As I mentioned, currently, the days for me is 107 days, which is fairly similar to what I have seen in FY 2022. Yes, things when there is a headwind in the market, your balance sheet gets a little impacted or it gets impacted, which is now in the process of improvement. If you look at the trend, yes, we can take 2 different time frames. But today, if you look at it from last 6 months to now, which is the period that we are talking about today, the performance has been fairly strong with an operating cash flow of over INR 350 crores, and number of days on the receivable side also strengthening strongly. Sir, one last question, if I may. What is the reason for increase in pledging of shares by the promoters? That is purely and purely, promoter had raised money to participate in the preferential allotment, and that is where it is, basically. Right? There is no other reason for any pledge or any other reasons for that. Thank you. That's all. I hope this clarifies. Thank you. Thank you so much. A reminder to all the participants that you may press star and one to take a question. A reminder to all the participants that you may press star and one to ask a question. As there are no further questions, I would now like to hand over the conference over to the management for closing comments. Thank you. On behalf of management of Anupam Rasayan India, thank you all for joining us on our post-earnings call today. We hope we have been able to address majority of our queries. If you have any further more queries, please reach out to our investor relation partner, Ansenium, and they will be happy to answer those questions and also help you connect with us offline. Wish you all a very happy Diwali. With that, we would close the call. Thank you all. Ladies and gentlemen, on behalf of Anupam Rasayan India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.