Ladies and gentlemen, good day and welcome to Galaxy Surfactants Limited Q4 and FY 2026 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.
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. K. Natarajan, Managing Director of Galaxy Surfactants Limited. Thank you, and over to you, sir.
Thank you. A very good afternoon, ladies and gentlemen. Thank you for joining us today for our fourth quarter and full year FY 2026 earnings call. Before delving into our performance on the business front and regional updates, it is important for me to set the broader context. The operating environment during the year, and particularly the last leg of the final quarter, that is Q4 of the last financial year, was shaped by a series of external disruptions that impacted global supply chains, trade flows, and customer ordering behaviors.
West Asia war introduced a prolonged period of uncertainty across global supply chains, trade routes, and energy markets. What was initially perceived as a short-term disruption extended well into and beyond quarter four with visible second-order impacts on logistics, feedstock availability, pricing volatility, and customer ordering behavior, particularly across our export markets.
Disturbance and rerouting of sea freight resulted in delays in inbound raw material as well as outbound export shipments for our Egypt facility. Port congestion and vessel availability constraints led to extended transit times adversely impacting our dispatches. Over recent weeks, the logistics situation has gradually begun to stabilize with shipments being directed through alternate ports.
While congestion at ports has reduced, transit times remain elongated and our team continues to be actively managing the situation through tighter planning and close coordination with our customers and vendor partners. On the supply chain front, due to the impact of the geopolitical situation, prices of feedstocks have increased significantly. The sharp and simultaneous escalation across input raw materials created a highly challenging operating environment, exerting a need for repricing at major customer levels, impacting overall Q4 volumes. Coming to our regional performance and key highlights.
India remained relatively resilient, supported by steady demand across tier one and non-tier one accounts. India volumes grew 8% year-on-year, driven by a 3% growth in Performance Surfactants and more than 27% growth in Specialty Care Products volumes. On a year-to-date basis, despite reformulation pressures from a key tier one customer that impacted performance segment, strong growth in non-tier one and D2C accounts fully offset these volume losses.
In specialty, we are pleased to report a 27% growth on an annual basis, delivering consistent progress in line with our Strategy 2030. In contrast, the AMET region remained challenging for reasons outlined earlier, with volumes declining 15% year-on-year in Q4. This weakness was concentrated in the latter part of the quarter and was largely driven by logistic disruptions, raw material availability constraints, customer repricing pressures, and more cautious procurement behavior amidst heightened geopolitical uncertainty.
The Rest of the World region witnessed mixed trends, with volumes declining 7% year-on-year in Q4 while delivering a 4% growth on a full-year basis. The Q4 volume shortfall was partly influenced by delays in export shipments to Europe and Latin, driven by a sudden spike in freight rates and cautious buying behavior at the customer end.
In contrast, the Americas emerged as a relative bright spot during the quarter. Following improved clarity and partial reversals on tariff-related developments, demand momentum strengthened sequentially, with volumes improving over Q3. Importantly, our specialty business in the U.S. has been reinitiated post-tariff reversals, and we are seeing encouraging traction and strong growth potential in premium Specialty Care Products. Coming to financial performance for the quarter.
For Q4 FY 2026, EBITDA stood at INR 122 crores compared to INR 135 crores in the earlier year quarter four, with EBITDA per metric ton for Q4 FY 2026 at INR 20,114 per metric ton versus INR 21,715 per metric ton in Q4 FY 2025. This performance was largely driven by effective passing of raw material prices, freight cost increase to customers, improved mix in specialty segment in Q4 post reduction of reciprocal tariffs in U.S., consistent better performance of our Tier 3 business in the U.S., that is the premium specialty segment, and disciplined cost control measures at various operational areas and at our subsidiaries. Moving to an update on innovation. In this quarter, we further advanced our innovation agenda with the launch of Galsoft DermiTech in in-cosmetics Paris.
The next generation mild surfactant, which is self-thickening, amino acid-based surfactant that simplifies formulation by seamlessly combining gentleness, clarity, foam, and process efficiency into a single system. It delivers skin cleansing with a low pH compatibility and is highly suited for sensitive applications such as baby care, feminine hygiene care, scalp care, and anti-acne solutions.
To conclude, while the recent supply chain disruptions have created near-term challenges, they also present an opportunity for us to remain agile and sharpen our focus on timely price passes to our customers. We continue to remain confident in the strength of our business, underpinned by resilient customer relationships, a diversified geographic footprint, a strong India franchise, and a disciplined operating approach. Barring any new unforeseen events, we are confident that performance in the coming quarters will improve sequentially. Thank you, ladies and gentlemen, for your continued trust and support. I now open the floor for questions.
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 Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Yeah, thank you for the opportunity. I have a couple of questions. Sir, first question is on to the Specialty Care Products side. Sir, you mentioned in your presentation that tariff reversals we all know and some value traction in the Specialty Care Products has led to improvement in your Specialty Care Products side. But sir, when we look at the numbers on quarter-on-quarter basis, it is plateaued. So INR 493 crore top line last quarter, this quarter INR 498 crore. Also, sir, you mentioned into your Indian business also some strong traction is led by Specialty Care Products. I believe the specialty mix in India is relatively smaller only. So what was the mix earlier? How much mix has changed in India? Why this improvement in your AMET business has not led to specialty growth quarter-on-quarter?
Yeah. First of all, quarter-on-quarter, it is essentially due to the mix of the specialty portfolio in quarter four in U.S. So that's one of the reasons. It's because of what products that we started moving out post the tariff reversal. It's only the mix impact. But as you see moving forward, things will start looking better because sequentially, that's what explains as to why it doesn't reflect. The volume growth doesn't reflect in terms of the contribution growth. With regards to your next question on India. India, as I said, it's because as I said in my opening remarks, in terms of the way that we have been able to grow with the D2C franchise, direct-to-consumer brand franchise, where you have a good amount of special ingredients that are going.
So although the base in India is small on special ingredients, but then there is a significant momentum that we see that is gathering in terms of the direct-to-consumer brands increasing their presence significantly.
Got it. Sir, slightly a longer-term question onto the Specialty Care Products. Sir, when we look the numbers over the last few years and compared with around 35%-40% range only. Over the longer term, sir, how you see this mix to improve by 2030? What could be the mix? Secondly, last quarter also you mentioned some customers in U.S. have highlighted some demand-related problems. Offsetting that impact and considering the current ramp-up in Specialty Care Products, how things will look over the longer term?
See, over the longer term, yes, our strategy is to grow both the segments of Performance Surfactants and Specialty Care Products. We are very clear that skewing towards either of this, say skewing only towards Specialty Care Products, is not going to be making us very relevant for our customers because they expect that we are able to serve them with the basket of all the ingredients for the HPC segment. But with the way that we are growing our Specialty Care Products portfolio, I would strongly say that it will keep swinging between the 65/35, 60/40, 70/30, depending on how both these legs start performing. Even by 2031, I do not see it going, say, probably in the zone of 60/40, 65/35. That is what I look at it.
Okay, got it. Sir, my third question is onto the raw material prices, fatty alcohol. Sir, last quarter we had seen a dip of 8% and again, sir, this quarter prices have jumped. What is the strategy? Sir, you have also mentioned in your last quarter that with rising raw material prices, definitely there could be a demand destruction which could happen, and it would be also difficult for us to pass on the prices. What is the outlook, sir, going forward? How much we can pass on with these rising raw material prices and how much the downtrading can even happen now further like which you feel in the last quarters that could continue going ahead?
Yeah. First correction is I never said that it will be difficult to pass on increased prices. I only said that you cannot pass on prices every week that it increases because customers expect that you have some price stability. So I will have a lag effect. So that can have an implication because if the price increases today, I pass it on after one month, there is a lag effect.
But having said, I think there is a very clear way that our relationship with customers ensures that they understand, okay, when we go for a price increase, that there is a clear rationale and transparency. So that is not an issue. But you cannot go to them every week. Having clarified that, today if you see, you have raw materials across, like today, petroleum feedstock prices have gone up significantly. Forget about going up, even availability is a challenge.
The question here today is not about whether oleochemical has gone up, because that was the fact since the last quarter. Now everything has gone up significantly. In fact, petrochemical base feedstocks have gone up much more than the oleochemical feedstock prices. That is the situation today. But the current challenge is in terms of how well we are able to manage the supply side in terms of ensuring that we have uninterrupted production. As of now, we see that demand is healthy, and it is important that we manage supply side very judiciously and in a very agile manner, which my team is doing a fantastic job. I am sure that is going to aid us in terms of the way that we report performance in the coming months.
Sir, just one last question. Sir, how much competitive we would be versus LABSA with the crude chain, the current prices of LABSA versus the oleochemical prices of 2,800 fatty alcohols? I just want to know how much difference today could be there, and what are the reasons why consumer could shift to the other chain. Second question, sir, considering the current RM prices, $ 2,800 per ton, what would be the volume growth? Is there any change into the volume growth guidance for FY 2027?
If we are talking about prices, they have gone up significantly. They have more than doubled. The issue is in terms of availability. Whereas your oleochemical also have gone up, but not to the same extent. Yes, now when our customers are looking at, I think their requirement is how do they keep their formulations available on the shelves?
They are doing various ways to ensure that they are able to have their products finding a space on the shelf. They do not want to lose on any product sale. Essentially, we need to ensure that we are able to serve them right. As regards the, you talked about your alcohol prices. Can you repeat that question?
Sir, fatty alcohol prices. Considering the current prices of fatty alcohol, what could be the volume growth guidance we are looking at?
Yeah. What we are seeing is that, I don't want to be talking anything specifically moving into the year, because it is too premature to be talking about that. But one thing that I am able to see very clearly is that, if I look only at, say, Q1, okay, because there's no way that I can look beyond that. But Q1, we are looking that we'll be able to, we'll be delivering close to the higher end of the volume guidance range of 6%-8%. Okay. And EBITDA as well, at the higher end of the range of INR 19,000-INR 21,000.
Sir, this guidance is for Q1 or for full fiscal? You mentioned for Q1, right?
Just Q1, but then I would like this to continue. If the current scenario continues the way it is, okay, that's my rider. It need not improve, but it should not worsen. If this is the situation, what we have in Q1 continues, I think we'll also be able to deliver that for the full year. But we all know that the current situation, it doesn't give us the luxury of looking beyond one quarter. I would suggest that probably we'll have a better clarity, okay, in the next call, okay, when we discuss on Q1 results.
Got it, sir. Thank you, sir. That's it.
Thank you. Next question is from the line of Rohit Nagraj from 360 ONE Capital. Please go ahead.
Thanks for the opportunity. Sir, first question is in terms of the Egypt facility. Currently, how is the situation out there, both in terms of availability of raw material logistics and even on the customer side in terms of the demand which is in Egypt and around Egypt?
Yeah. First is, I think one thing I need to clarify is that as far as the AMET market is concerned, we do not see demand as a challenge if you see even last quarter. But the thing that impacted our AMET business, and more so our Galaxy Chemicals Egypt business was, I think the entire March was disrupted because all the materials that were to be coming in got stuck at various transshipment points, and the team was essentially working aggressively to look at how we are able to get those materials released and reach to our factory. It started bearing results, all the efforts, only from the first week of April.
I think, say, post middle of April, I think the Egypt operations have got restored, okay, to a significantly superior level, and they have started catering to all the pending orders that were there that they couldn't serve in the month of March. So that's the situation today. The issue is not about demand, sir. It's been more on the availability of raw materials to take care of supplies. That impacted March, but then into April, things started improving, and we expect that May and June should be significantly superior where we are able to run our operations uninterrupted.
Sure. Sir, second question is, you just spoke about Q1 guidance in terms of volume growth. Is it because that the supplies are constrained, and we have the material to supply to the customers? That's the reason we are confident that 6%-8% volume growth is possible, given that still in most of the geographies, there are some challenges in terms of demand and some challenges in terms of availability. So the volume guidance is predominantly based on the supply constraints and availability at our end. Is that the right way to look at it?
No, that's not the only reason or the major reason. If you look at this, in our volume growth guidance, I've always been saying that India should come back to its robust growth, okay, of 8%-10%. If you see that happened in Q4. So that momentum is continuing, and that growth happened because the D2C rationalization started showing results in last quarter. And you see all of our customers also have spoken about 4%-6% growth. Okay? In line with that, we have also reported 8% growth. Okay? So we expect that also to continue, because we don't see any demand challenge, at least in Q1, as far as the India market is concerned. Okay. Secondly, also see in Americas, we had the implication because of the tariff in terms of our business.
I think that has got resolved, and then we have started reviving, okay, business with our customers. That also will aid. More importantly, I think you'll have AMET through the sort of de-growth that was happening in terms of on the supply side, significant supply due to the supply side factor. That also will certainly improve significantly in Q1.
Got that. Sir, just one clarification. Did we recognize any project income during this quarter? If so, what was the quantum?
We did recognize, but nothing significant. That is the reason why we are not reporting that separately. But yes, the project is progressing well, and we do based on completion, there will be recognized, but that is not something significant or material, as you might call it.
Yeah. Thanks a lot, and all the best.
Thank you. Before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star and one. We will take the next question from the line of Sanjesh Jain from ICICI Securities. Please go ahead.
Yeah, good afternoon, Natarajan. Thanks for taking my call.
Good afternoon.
Sir, couple of questions. First, on the U.S. market, in the previous call, you sounded quite bullish post the tariff deal announced. Where are we now? Has this Middle East situation impacted the demand, the supplies which we were planning? Any change in the outlook on the U.S. side?
See, first of all, the demand side which we started recouping post the tariff thing getting taken care, I think that is intact. The supply started very well, from January, February. I think we had a temporary impact in March because of the suddenness with which the Red Sea crisis happened. It took us almost two to three weeks in March to be able to resolve that, and I think things have resumed after that. So this Red Sea crisis, as of now, there is no impact we are seeing on the demand side. And the supply side implication was for a brief period in March, which has gotten taken care of.
So from next quarter onwards, is it fair to assume that the U.S. business which we were planning, the acceleration, that should show up some result because ROW we have declined in this quarter. So which geography apart from U.S. has hurt us in ROW?
See, the last quarter decline in your ROW is because, as I said, we had a good amount of dispatches. We had orders, but we couldn't dispatch into Latin America, into Europe because of the sudden increase in freight rates. We also had to be talking to and negotiating with customers for repricing because the rates had gone up so significantly that there's no way that you could have dispatched the material. So that took a good portion of March. So the backlog is getting cleared. See, other thing is in terms of our, the America business reflecting in terms of results in the coming quarters, I would say that will start happening.
When we say Q1 guidance in the volume, this all should help us to grow much faster than the normal level, right?
No.
Because, see, I was just looking at the trajectory.
Till Q3, our ROW was growing at double digit.
Correct.
Suddenly, in Q4, we saw a decline of high single digit.
Right
If we assign that entire double digit to a decline, say 15%-20% of volume, which happened because of the logistical issue, repricing, renegotiation, and all, that will get recouped in Q1, right? In Q1, ideally, assuming all other things remaining same, and we are able to fulfill the demand which we delayed in the Q4, Q1 on our ROW should look at significantly better.
Yes, you are right. But then when I am giving you the guidance, I am also looking at certain situations where I may. Because I do not want to be guiding inappropriately. That is why I said it will be higher end of the 6%-8% growth, okay? Because I still have qualified rates. We want things to continue. You are right. It should reflect, but I do not want to be guiding beyond that 6%-8%. Yes. I will be very happy if I am able to breach that in a positive way.
Very clear. Are you seeing any other headwind that you are not able to procure sulfur?
Not as of today. See, for example, if this Red Sea crisis worsens. See, the Strait of Hormuz blockade, what happened, the freight industries adjusted to that. We have adjusted to the elongated lead times. We are replanning. Customers have all planned. If anything new comes up, which is going to further aggravate the situation, that is the only thing that is going to be impacting. I do not see anything else coming and impacting the momentum.
Because I see two big raw material which may have got impacted. One is sulfur and the other is ethylene oxide, and these are the two very big raw material for us, right?
Yeah.
A lot of sulfur in India, at least, was coming from the Middle East.
Ethylene oxide, we had only one supplier, and ethylene is a gas-based.
Yeah.
We know what's happening on that side. How should we think of raw material in India? Southeast Asia will have the same problem because most of the Southeast Asia sulfur used to come from the
Middle East. How is this situation playing out? Or there is absolutely no issue in terms of the availability of raw material for us?
First of all, both on ethylene oxide and sulfur, it is not a comfortable situation, if you ask me that you can sleep every day presuming that things will be on a steady state. It's all about managing the situation on a daily basis. But we are not seeing any great worries or concern in terms of the supply chain not being supportive, the way that my team is able to manage, both on ethylene oxide and on sulfur. The prices have gone up significantly, that's plenty of given. But the supply side has to be manageable, and with this sort of huge vendor partnership that we have, I think we are managing it well.
That is very clear. One on the AMET side, the decline in teens, right? I know we were already struggling in the AMET because of the currency and all. I do not know what is further hurting us because we were at 90,000 metric tons per annum at one point of time in AMET. We have already reached 60,000, and now we are declining by another team. What is really happening in AMET, and how should we think AMET as a region for us?
This we had. See, if you have seen that from 90,000 to 60,000, we had talked about.
Yeah
Executing portion of local players backward integrated, taking the market share and all the global customers who are our customers, who are the key source of our business, have lost market shares. So that we explained. Now, in fact, if you see last quarter, but for the March episode, because my Egypt plant could not produce and dispatch.
They were actually idle for most part of the month in March. Because raw materials did not reach. Even what was there, they could not ship out materials, which impacted, as I said even earlier, the numbers for the month of March, and that significantly impacted. So you are talking about a de-growth that happened 15% mainly on supply rate, very clearly. Which should start getting taken care from the Q1 of this year. There is nothing new that is happening in terms of the volumes. I do not have a tailwind to take it to 90,000, but there is nothing that is going to not allow me to grow at a reasonable rate from this base of 60,000.
If you look at just channel sales, ignoring March, what could have been the growth rate in the AMET?
We could have probably been, say, 2%-3%.
Okay. We are still not growing materially in AMET. That still remains a geography which is underperforming, correct?
Correct.
That is got it. One on the Middle East. We have a decent exposure on the Middle East, Saudi, UAE, and all. We were already a supplier from AMET market, AMET plant, which is our Egypt plant. How should we think about those volumes? Because if I remember it, we were in probably single-digit contribution from the geography. Have the suppliers resumed there, or how should we think about performance in that market? Or when the war gets over, you will see a very big demand from the restocking, and this year, actually, we can enrich, say, upwards of 10% kind of a volume growth.
Yeah. If the war commits, there can be restocking that will happen. But right now, what is happening is that people have started exploring land routes now for managing supply chain. The Strait of Hormuz is getting obviously critical for managing the supply chain in that part of the world. I think we are also on land routes, different sea routes to be able to manage the situation.
But yes, you are right. If the war gets resolved, suddenly there will be restocking. But there is stocking, but what is important, Sanjesh, is also with the way that the economies have got impacted in terms of damage to their key facilities. How is the demand going to be intact? I do not know. But if the demand is not impacted, you are right, the restocking will happen, which can lead to a spike in demand first.
Got it. Then second, you talked about your EBITDA per metric ton in the range of INR 19-INR 21, emphasizing that upper end will be what we are aspiring or probable. This quarter we did what, INR 20 a kg? What will drive this INR 20-INR 21? Is it purely operating leverage now that we are looking at higher volume? Or, you still think there is a scope for some gross profit per kg improvement as well?
No. One is, I think it will be driven by, one is because the volume grows, there is operating leverage, but that's not the only reason. The second also is the mix also impact, because you will have Specialty Care Products in America that are picking up. And also in Europe, we are seeing some green shoots in terms of sort of closing pipeline maturing. So that will contribute.
Got it. One last question from my end. We were looking an alternative product taking some market share in Indian market. With this new scenario, have we seen that thing reversing, stabilizing? We were also looking to produce that product. Where are we in that entire-
We are already producing and selling that product. Okay.
Okay.
Yeah, we are already doing it. Yes, obviously, the supply chain has got impacted. Things have changed dramatically. Now, the whole thing is about how we are able to use this flexibility that we have, to be able to gain back certain volume share. That's what we'll be doing.
This year India will be back to 10% kind of a growth. Will that be a fair assumption?
If the end market grows, I think I would not say, because I am still not seeing, if the monsoon doesn't impact demand, if the current energy prices doesn't impact demand because it's going to be inflationary. Subject to all that not being there, I see that's what I said, about 8%-10% should be possible, but we do not know. We're keeping our fingers crossed. Because the demand can get impacted significantly, if you have all the energy prices going up now and discretionary spending gets impacted. That's the only concern.
Got it. Very helpful. Thanks for all those answers .
Thank you.
Thank you. Ladies and gentlemen, you may please press star if you want to ask a question. We will take our next question from the line of Arun Prasath from Avendus Spark. Please go ahead.
Good afternoon, K. Natarajan here.
Yeah
A lso appreciated.
Thanks, Arun.
First, during this quarter in India at least, what kind of volumes do you think probably would have come because of the, let's say, panic buying or inventory building? Do you see that risk of reversing out, let's say, in say till, in a couple of quarters of restocking impact on our volume growth?
No, I don't think there was a panic buying because, I also told you that the peaks of prices went up significantly. You look at freight, incoming freight rates went up. We are also negotiating with customers for repricing. You are talking about sulfur prices going up every day. You are talking about ethylene oxide prices going up every week. That also was an issue.
I would not say there was no panic buying. I think probably buyers were looking at how do we ensure that they have security of supply and obviously they resort to us. It is not that because even it is not that if someone wants a panic buying, we had enough and more availability because even our supply chain gets impacted in terms of the incoming. I would not say panic buying.
I do not see a reason as to why there will be a reversal. But yes, what can be an issue is based on the customers, because these are high season months. January to August, September are high season months. Our customers prepare for this high season in terms of planning of their production. The only thing that can spoil this growth momentum is if the demand situation gets corrected because of the inflationary situation. Then our customers will start cutting back on their production because they need to reduce their inventory levels. That is the only thing that I see, but there cannot be any issue in terms of the panic buying getting reversed and then there being an impact on the volume growth in quarter one.
K. Natarajan, one more risk, if the grammage cuts indirectly, that could also be putting pressure on our volume growth, because beyond Q1 maybe the grammage cuts will also play out, at least in India.
They have all reduced prices. Now I have seen that they are increasing prices. All of them are starting increasing prices. But the grammage reduction, typically, it can happen because there is one way of passing on a price increase by grammage. But yes, so that we will have to wait and watch. But as of now, we are not seeing. That is why I am saying that I am able to clearly know about quarter one. Beyond that, I think probably the next call will give us more clarity.
Understood, sir. A bit on what we have done in the last three years. If I zoom out and look at it, we have done CapEx in last three years of roughly INR 480 crores. Are you seeing some of these facilities which is commissioned in the INR 480 crores of CapEx? You can give broadly the breakup between some projects. If any of the idle capacities we are having, is there a chance in terms of this difficult time, in terms of other supply is not coming, is there a possibility we can utilize these because we have put capacity ahead of the time? This should be an easier time for us to monetize these capacities.
Yes. If there is an opportunity, we are well-prepared to entice that opportunity. The investments that we have done, obviously, yes, we are very clear that we need to have, and most of it, what is the Specialty Care Products segment. I also said that the tariff situation in U.S. had created some issues in terms of the pipeline getting built and the pipeline getting converted.
We also had the issue in Europe where the inflation had created a lot of significant headwind in terms of conversion. But we are seeing that they are getting taken care of. First is in terms of the way that we have been able to build the pipeline and convert them in terms of our efforts. In the current situation, if there are supply chain challenges which presents an opportunity, you are right, we are well-equipped to engage that opportunity.
And, sir, this entire INR 480 crores of CapEx is already kind of reflecting in our volumes and P&L in terms of the extent of monetization.
We have commissioned the major portion of it only in the last one and a half years. Some of it will start this year, and then the momentum would be built upon.
Any specific projects or groups you could call out from this?
I can't call out, but as I told you, the major portion of the investment was on the Specialty Care Products segment.
Understood. Sir, on this EPC revenue, what are the milestones post which we'll be booking the revenues in our P&L? Have you reached those milestones?
No, we have started booking, but those milestones are what is mandated as per the international accounting standards. That's what our team does. The project is making good progress, and we have started recognizing a portion of the revenues based on the milestones as mandated by the international accounting standards.
In the whole FY 2026, what will be that contribution to the revenue from this EPC?
Because we are bound by confidentiality of the customer, we are not able to reveal, but it is enough to say that it is not material in FY 2025, 2026.
Okay. This revenue will be recognized over how many years, sir? Bulk of it will be in this year or next year? If in this year, just 20%.
Bulk of it will be in this financial year.
Oh, okay. Understood. Finally, one thing. Last year we had a Capital Markets Day event where we had specified our Strategy 2030 target. What are the initiatives we have already done to achieve those targets? Anything in terms of product approvals or in terms of discussion with the
We have launched products. If you see, I talked about Lumitech. We have launched three products in line with what we had in the five-year period. What was the phase one in terms of launch, we have done that. We started building production pipeline. We also talked about how we are going to be leveraging on what capacities we already have in terms of the Specialty Care Products, okay.
We also talked about how we are going to be looking at coming up with the ingredients for the Divan combinations, okay. So that's all been done well, okay. It's only on the wellness segment that what we had to progress, we haven't made the progress that we should have made, okay. But that, again, is something work in progress. Only thing that I am not too satisfied is what we should have worked on the wellness segment, which is a new segment we introduced. Other than that, I think the work is happening as per schedules. So I don't think there's anything different that's happening there.
In terms of revenue and EBITDA margin, when should we start expecting these things will be reflecting in our numbers?
Yes. What we talked about, we talked about in the analyst day, talking about INR 25,000 per metric ton. Correct. I also said during the analyst day that it will all be back-loaded. It is going to be a situation where it will start happening towards the later portion of the next five years period that we have had. I think probably you will start seeing this reflecting, you see some in 2026, 2027. Then a good portion in 2028, 2029; 2029, 2030. 2027, 2028 also will start reflecting.
Okay, sir. Thanks for answering all the questions. All the best.
Yeah, thanks sir.
Thank you. Next question is from the line of Akshay Hatekar from Kanjooshna Kanfiskar. Please go ahead.
Good afternoon, sir. Am I audible?
Yes.
Sir, can you just tell us what kind of CapEx has been occurred? Was it regarding maintenance or is there any new facilities was coming up? Can you just shed some light on that?
No. The CapEx that we do, we do our maintenance CapEx, okay, but they are not more than 20, 30 crores per year.
Okay.
Balance, whatever Arun was talking about, has all been on growth CapEx. They are, as I said, bulk of it is on the Specialty Care Products space.
Okay, sir. There won't be any CapEx for FY 2027 also, right?
We will have. I don't see any growth CapEx given what. There may be some work in progress that will get capitalized, but nothing new commitment that we are seeing in this year other than certain brownfield that we do or we may do some routine CapEx, replacement CapEx.
Okay, sir. Apart from this, as this current geopolitics crisis, which are going on, can you just give us revenue guidance for FY 2027 and FY 2028? What kind of growth do you expect?
I don't want to mislead because there's no way that I can. Because the way things are, I'm just looking at the quarter one. Based on the current situation, that's the sort of visibility that I have. I'm looking towards the future with a lot of optimism, but I don't want it to be translating into guidance where it seems misleading for each of you. Okay? I just said quarter one, I'm looking at hitting the higher end of the 6%-8% volume growth and on the EBITDA per metric ton, INR 19,000-INR 21,000, I look at hitting the higher end of the band. Okay? By degree, next time, when we have a call next time about Q1 results, hopefully things would have settled down and we have more clarity.
Okay. Sir. Got it. Thank you.
Thank you.
Thank you. Next question is from the line of Rohit Nagraj from 360 ONE Capital. Please go ahead.
Thanks for the follow-up. What was the EBITDA per metric ton for FY 2026 for the full year?
On the full year, we were at around INR 19,000.
Sure. On the broader macro aspect. We had in FY 2023 a situation when the raw material prices went up and at the same time, we had a beneficial impact on the EBITDA per metric ton. Given the current situation, which is probably more or less similar, in FY 2027, can we see a similar kind of modality barring the Q1 that you have already talked about and confidently guided for that volume growth may be in question, but we will have the ability to make it up through the higher EBITDA per metric ton. Thank you.
Yeah, Rohit. That is my desire also, but only one change between 2023 and now. See, 2023, okay, we had a supply chain constraint, but the demand actually was an uptick. Whereas now, okay, you have a supply chain impactor, but the demand as of now is intact. But with the way that the energy situation across the world is happening, I am only concerned if that should not end up impacting consumer spending on discretionary items. That is the only thing that we need to watch out for. Probably we will have better clarity in the coming months.
Perfect, sir. Thank you and all the best.
Thank you.
Thank you. Next question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead.
Yeah. Thank you, sir, for the follow-up. Sir, my question broadly onto the AMET market. Sir, we being a local player who are impacted by currency related headwinds and demand related disruptions. So versus a player who is exporting into these markets, out of these two, who would be better placed? A local player or an export-oriented player who is importing into all these markets?
No, the better place is the local player.
Okay. But sir, we have not seen any sort of an uptick. If you can help us, what was the market growth into this AMET market for the last two years? What was affecting the market growth? Across categories, we have seen a decline or there are some categories we have gone down, others have gone up. Any sort of
No, the only problem, if you see the whole market, AMET is a combination. We had a year in which Turkey, because of inflation, got impacted. Okay. Then our exports into Turkey were impacted. Egypt had its own issues in terms of currency availability and inflation. That impacted volume. So when due to inflation and currency unavailability you have a significant, what I can say, destruction of consumption, it takes time to come back. That is typically what is happening there.
Our ability to be able to place those significant volumes in Egypt and Turkey, which gets impacted due to the currency situation and inflation, into other markets, okay, is not happening that easily the way we would want it, because all the markets there are very different. Okay? Some markets you need to be very careful in terms of credit risk.
Okay, some markets you just cannot even approach because of sanctions and all that. That is the only thing that we have. These markets have to, if they get into a situation of demand recession, it takes time for it to come back. That is the only situation that we are into as far as AMET is concerned.
And sir, onto the categories parts, are we present in most of the categories which the end user or the OEMs use over there, or we are present only in some categories?
No, other than fragrance and color, I think we can serve them with the entire basket of ingredients, both on the Performance Surfactants side and the Specialty Care Products side.
And sir, onto the market demand growth for the last two years. Any idea, sir, how this market has grown, AMET market?
AMET market, I do not have it right now with me, but whatever I have seen in terms of the business presentations that was doing, it was not reflecting anything great. There was growth, but then it was physically a little bit touchy because the countries were also going through their own struggle. So in my view, I think if I am able to recall, it is about say, 3%-4%.
3%-4%, okay.
Yeah.
Sir, in terms of the volume declines, whatever we have seen over the last two, three years volume dip in AMET market, you see largely that to be bottoming out over the coming year, considering all these macroeconomic uncertainties will resolve into these markets. Are you expecting some sort of a change or this will continue even for the one to two years timeframe?
No, I think probably it has bottomed out now, so from here we should only improve. Yes. And we probably start seeing it from the coming quarters.
Okay. Got it. Thank you, sir.
Thank you. That was the last question for today. I would now like to hand the call back to the management for closing comments.
Thank you so much, ladies and gentlemen, for coming into this earnings call for Q4 and full year FY 2025/2026. Looking forward to talking to all of you in August when we announce our Q1 results for FY 2026/2027. Thank you and have a good day. Bye-bye.
Thank you very much. On behalf of Galaxy Surfactants Limited, that concludes this conference. Thank you all for joining us today.