Ladies and gentlemen, good day and welcome to the Jubilant Ingrevia Limited Q4 FY25 earnings conference call. As a reminder, all participant lines will remain 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 the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pavleen Taneja, Head of Investor Relations at Jubilant Ingrevia Limited. Thank you, and over to you, sir.
Thank you, Ryan. Good evening, everyone. Thank you for joining the Q4 Financial Year 2025 earnings conference call of Jubilant Ingrevia Limited. I would like to remind you that some of the statements made on the call today could be forward-looking in nature, and a detailed disclaimer in this regard has been included in the press release and the results presentation that has been shared on our website. On the call today, we have Mr. Shyam Bhartia, Chairman, Mr. Hari Bhartia, Co-Chairman, Mr. Deepak Jain, CEO and Managing Director, and Mr. Varun Gupta, CFO, Jubilant Ingrevia Limited. I now invite Mr. Shyam Bhartia to share his comments.
Thank you, Pavleen. A very good evening to everyone. Thank you for joining us on the Q4 of the Financial Year 2025 earnings conference call of Jubilant Ingrevia Limited. We are pleased to announce sustained growth in revenue and margins for our specialty chemicals and nutrition businesses. Our ongoing cost reduction efforts have further boosted our profitability, with quarter EBITDA margin reaching 14.7% and profit after tax increasing by 153% on a year-on-year basis. We are glad to share that the board has recommended a final dividend of 250%, that is, INR 2.5 per share, equity share of face value of INR 1 each for the FY25. This shall result in a cash outflow of INR 39.8 crores.
During the year, the company has already declared an interim dividend of 250%, that is, INR 2.50 per equity share of INR 1 each, and the total dividend for FY25 works out to be 500%, that is, INR 5 equity per share of INR 1 each, amounting to INR 79.8 crores cash outflow. Let me share the overall market update with you all. The global chemicals and specialty chemicals sector has largely moved past the inventory restocking phase, showing volume recovery in specialty materials. Commodity segments continue to have volume under pressure, though prices remain muted across segments and have stabilized at a new normal. Pharmaceuticals end-use market is experiencing steady demand, supported by stable pricing and consistent volume placements. Our pharma portfolio with fine chemicals business reflects these positive trends. However, we continue to face low volumes in acetyl business due to low demand in the paracetamol segment.
Agrochemicals segment has maintained its upward momentum this quarter, fueled by sales growth on both year-on-year and quarter-on-quarter basis. Consequently, average prices in the sector have shown signs of recovery, suggesting potential price improvements during the ensuing quarters. Nutrition markets saw a consistent rise in volumes. Niacinamide demand held steady, with prices remaining stable throughout the quarter. Meanwhile, choline demand experienced a notable surge, though its pricing remained under pressure due to Chinese imports. In the light of recent global tariffs imposed by the U.S. government, we are pleased to report that the impact on our U.S. sales has been minimal. Approximately 10% of our total sales are in the U.S., and only 25% of those fall under additional 10% dutiable items. This means just 2.5% of our overall global sales might be affected by U.S. tariffs.
Additionally, the potentially high tariff on Chinese exports to the U.S. compared to Indian exports, we anticipate favorable conditions on both volume and pricing of our U.S. export portfolio in the coming quarters. Now, let me talk about our business updates. In specialty chemicals business segment, overall volumes remain stable. We are observing continuous growth momentum across our pyridine and picoline fine chemicals and CDMO businesses, with an expanded pipeline of newer opportunities for the coming quarters. In certain segments, we have started to see slight price uptick as well. Nutrition and health solutions business segment saw substantial year-on-year and quarter-on-quarter volume growth, primarily fueled by significant increases in choline product volumes. While niacinamide volumes remain stable, pricing within the segment remained stable throughout the quarter.
We are witnessing a strong interest and customer inquiry in our human and cosmetic-grade products and anticipate increasing production at our newly commissioned CGMP-compliant niacinamide plant in Bharuch, Gujarat, in the coming quarters. In the chemical intermediate business segment, we observe sustained growth in ethyl acetate sales volumes, both quarter-on-quarter and year-on-year. However, acetic anhydride volumes remain slow due to weak demand from the paracetamol sector. Overall prices in this segment stayed relatively benign, which affected our margins. Now, let me give you an update on our CapEx. In our strategic shift towards value-added specialty chemical products, our CapEx execution track record highlights our dedication of expanding and diversifying our business mix to enhance profitability. To achieve our goals, we have invested INR 1,745 crores in the last three years out of the announced CapEx plans of INR 2,000 crores in FY22.
Looking ahead to FY26 and beyond, we plan to invest in high-growth projects such as multi-purpose plants for fine chemicals, dietary derivatives, new CDMO projects, and human nutrition and health solutions portfolio. Now, let me share a few details on our future outlook. We expect sustained growth and improved business performance driven by advancements in specialty chemicals and nutrition and health solutions, along with efficient cost management. We remain committed to our Pinnacle 3-4-5 vision and on track to achieve our envisaged growth plans. With this, now I hand it over to Deepak to discuss the business in detail. Thank you.
Thank you, Mr. Bhartia. A very good evening to all of you. At the outset, I would like to thank you all for joining us today for the Q4 of FY25 investor call of Jubilant Ingrevia Limited. Let me first take you through the overall market overview. In pharmaceuticals, during the quarter, we observed consistent volume demand across pharma end-use segments, particularly in our fine chemicals portfolio. Prices remained stable across various end-use segments, with some areas experiencing increases. However, demand for paracetamol end-use was subdued as customers operated their plants below optimal capacity. In the agrochemicals sector, the global inventory destocking issues have eased, leading to a gradual rebound in agrochemical volumes and stabilized pricing. Pyridine-based agrochemical products are experiencing a steady recovery in both volumes and prices, contributing to consistent growth in our P&P portfolio.
In the nutrition sector, choline has seen continued traction with significant year-on-year and quarter-on-quarter volume increases, despite prices remaining under pressure. Niacinamide has experienced year-on-year improvements in both volume and prices. Additionally, we are witnessing significant growth in human and cosmetic-grade nutrition products driven by the recent commissioning of our CGMP vitamin B3 plant. As you know, we have rolled out several new initiatives in the last few quarters in line with our Pinnacle 3-4-5 growth roadmap. Let me share a few highlights on the progress from the last few months. First one, our core product platforms continue to drive growth and leadership in Q4. In pyridine and picoline, we have achieved globally number one position, and we are the only scale non-Chinese player with significant volume growth in FY25 and price increases in select segments. We are now world leader in almost 35 of pyridine derivatives.
In niacinamide, we have maintained our top two leadership positions in feed grade, with year-on-year growth in volumes and an uptick in prices, while our new cosmetic-grade plants should further strengthen our global market share and position. In choline, we have maintained the number one position in the dry CC domestic market, with market share recovery in both quarter-on-quarter and year-on-year basis. In the acetyl segment, we have retained our market share in acetic anhydride and increased our share in ethyl acetate and acetaldehyde. Secondly, we have increased our revenue share of the specialty and nutrition businesses in the portfolio to 64%, up from 62% last quarter, and its EBITDA share in the overall portfolio has increased to 94%, up from 73% last quarter. Our pyridine and picoline and its derivatives, diketene and nutrition segments are showing strong year-on-year growth in revenue terms.
Growth areas such as CDMO pharma, semiconductor chemicals, and niacinamide for cosmetics end-use continue to gain strong traction. In our CDMO business, we added 25 plus new molecules in our funnel in FY25 across pharma, agrochemical, and semiconductors, thus creating new growth vectors which we hope to scale up in coming quarters and years. Number three, on our international revenue, the revenues have grown to a 45% share versus 34% last year, with a 47% year-on-year increase. Our U.S. revenue grew 22% year-on-year and 4% quarter-on-quarter, while revenue from Europe, Japan, also increased. We continue to focus on key accounts and are expanding our business development teams across U.S., Europe, and Japan, with senior sales leaders recently hired for Japan and Europe already.
Number four, our key efficiency initiatives from last year continue to deliver substantial annualized savings of over INR 120 crores from SURGE, LEAN, Business Excellence, and other energy-saving programs. We have now launched phase II of our cost optimization program, aiming to achieve even higher efficiencies of INR 100-INR 150 crores in the coming quarters, thereby further improving our margins. On the CapEx front, our recently commissioned food and cosmetic-grade niacinamide and niacin plant at Bharuch has witnessed rapid volume scale-up over the last three months. Additionally, CapEx is progressing as planned for the two new agro-CDMO orders announced in previous quarters. As Mr. Bhartia already mentioned, we have already invested INR 1,745 crores over the past three years from the announced CapEx plans of INR 2,000 crores in FY22.
Looking ahead in FY26, we plan to invest INR 600 crores of additional CapEx, including some spillover from FY25, which will be largely funded through internal accruals. In future years, the investment will go into high-growth projects in a modular manner, including multi-purpose plants for fine chemicals, Diketene, new CDMO projects, and human nutrition portfolio. In the coming quarters, we will announce the launch of more CapEx projects in line with our long-term growth strategy. On the sustainability front as well, our core initiatives remain on track to keep our leadership position intact. I am pleased to announce that we have retained our ESG ranking, achieving a gold rating and being in the top 95th percentile in the EcoVadis rating. Additionally, our score of S&P Dow Jones Sustainability Index has improved further, placing us in the 92nd percentile within the global chemical industries.
As we announced earlier, I am delighted to share that during the last quarter, Jubilant Ingrevia Limited has partnered with O2 Power to source 50% of the energy for its Bharuch manufacturing facilities from renewable sources. This marks another step in our journey towards clean energy adoption, following similar initiatives at our Savli and Gajraula manufacturing facilities last year. With this agreement, over 35% of our energy needs across all manufacturing units will now be met through renewables, reinforcing our commitment to a greener future. With such initiatives, we are proud to be driving impactful change as we integrate sustainability into our operations. This will not only contribute significantly to the reduction of CO2 emissions but also reduce our power costs in coming quarters. Likewise, we have taken several other green initiatives which will help us have significant impact both environmentally and commercially.
Now, let me take you through the updates on all of our three business segments individually. In specialty chemicals, during the year, specialty chemicals segment revenue grew 15% on a year-on-year basis on account of improved sales from pyridine and its value-added derivatives, diketene derivatives, and CDMO businesses. During the quarter, specialty chemicals once again achieved its highest-ever EBITDA of INR 129 crores and the highest EBITDA margin of 27% in the last 15 quarters. EBITDA for specialty chemicals grew by 93% on a year-on-year basis. Improvement in absolute EBITDA and elevated margins were achieved on account of cost optimizations and higher growth in pyridine and diketene derivatives. The CDMO business continued to grow with substantial increase in volumes both quarter-on-quarter and year-on-year basis, fueled by a rising number of inbound inquiries from the agro, pharma, and semiconductor sectors.
CapEx for two agrochem orders announced last quarter is progressing on schedule and will add to specialty chemicals business revenue and margins in the coming quarters. In nutrition business, during the quarter, revenue for the nutrition business increased by 15% year-on-year on account of higher volumes of both niacinamide and choline segments. EBITDA for the quarter increased by 237% year-on-year and 17% quarter-on-quarter, driven by higher sales of choline products. Additionally, increased year-on-year sales volumes and pricing of niacinamide contributed to this growth. Our continuous cost optimization efforts are also contributing to higher margins. With our CGMP facility ramping up well, we observed a significant increase in demand for cosmetic-grade products, while our food-grade volumes continued to remain steady. During the quarter, our choline products maintained strong volume traction on both quarter-on-quarter and year-on-year basis with stable pricing.
We achieved positive traction through ongoing cost rationalization efforts and an improved product mix. Additionally, food-grade CC CBT continued to gain traction, experiencing growth in volumes over the quarter. In the chemical intermediate business, quarterly revenue and EBITDA for the segment declined due to ongoing challenges in the primary end-use markets for Paracetamol, which negatively impacted both the volumes and pricing of Acetic Anhydride. Additionally, lower prices of Ethyl Acetate led by intense competition also impacted adversely. Since Acetic Anhydride continues to face challenges from its main end markets such as Paracetamol, we are placing greater emphasis on Ethyl Acetate and Acetaldehyde volumes to offset the impact of lower Acetic Anhydride volumes.
Before I hand over to Varun, I am also pleased to share with you that Jubilant Ingrevia got a Great Place to Work certification in the last quarter, which is just the substantiation of all the efforts we are putting in to make our company a better place to work for our people. With that, let me just hand over to Varun to take you through the financials.
Thank you, Deepak. A very good evening to all of you. I would like to thank you all for joining us today for the Q4 Investor Call of Jubilant Ingrevia Limited. The overall revenue during the quarter stood at INR 1,051 crores, as against INR 1,071 crores in Q4 last year. The revenue was lower mainly due to the lower year-on-year revenue from our chemical intermediate business segment. The EBITDA for the quarter stood at INR 155 crores, reflecting a 54% rise on a year-on-year basis and a 5% increase sequentially over the last quarter. The growth in EBITDA was primarily driven by margin improvements in the specialty chemicals and nutrition business segments, along with the various cost optimization initiatives which we have highlighted in the earlier calls.
The net debt of the company as of 31 March 2025 was INR 658 crores, and net debt-to-EBITDA ratio has now reduced to 1.18 times as against 1.36 times in the previous quarter, calculated on the basis of trailing 12 months' EBITDA. The capital expenditure incurred during the quarter was INR 65 crores and INR 365 crores for the completed financial year, which was primarily funded through internal accruals. In financial year 2026 too, we plan to invest INR 600 crores, including the carry forward of the previous year's projects in CapEx, to be again funded primarily through internal accruals. Net working capital percentage to turnover for Q4 25 reduced further at 17% as against 18.3% in Q3 2025. Similarly, the number of days of working capital has further reduced to 61, as against 65 days in Q3.
This is reflective of our continuous efforts towards having an optimal working capital and improving our OC, which has shown continuous improvement in the last few quarters. Lastly, the PAT for the quarter was INR 74 crores as against INR 29 crores in Q4 FY24, witnessing an increase of 153% on a year-on-year basis. We'll now be happy to address any questions that you guys may have. Thanks.
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are instructed to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Rohan Mehta from FICOM Family Office. Please go ahead.
Hi. Thank you so much for the opportunity. Am I audible?
Yep. Please go ahead, Rohan.
So I wanted to understand what are the current spreads in the acetic anhydride business, and also when can we expect a bottoming of both the acetyl cycle? That is my first question. And also on the specialty chemical segment, purely from a next quarter perspective, how do you see the current export volumes on the specialty chemical side, especially pyridine derivatives?
Yeah. Thank you, Rohan, for the questions. Let me start by talking about the acetyl's business cycle. As I shared in the previous two quarters as well, we are going through a down cycle in acetyl's business, primarily driven on the acetic anhydride side, at least, primarily driven by the low demand on a couple of big segments, end-use segments such as paracetamol as well as the agrochemical segment, where acetic anhydride goes as a key ingredient. What we have observed is over the last few quarters, there was a stocking of excess inventory in both the segments. But at least, based on what we are hearing from our customers and our own analysis suggests that most of the inventory is now cleared up or will get cleared up in the coming quarter.
Hence, we are hoping that we are very close to the bottom of the cycle, and demand will start to pick up again in both paracetamol and in acetate, at least, which is one of the key end-use segments of acetic anhydride. We are already seeing some volumes coming back gradually. We are hopeful that as that happens in the coming few months, the pressure on the segment will start to ease off. As a result, we hope to see an uptick both on volumes as well as price of acetic anhydride. Coming to your second question on specialty chemical exports, the exports have been increasing. Even in the last six months, if you analyze the Ex-Im data, you will see our exports have increased significantly.
Pyridine derivatives, now diketene derivatives also, we got a couple of big orders in the last quarter, which will continue through the year and then hopefully in the coming years as well for some of our newer products in the diketene value chain, as well as our CDMO business, where in the coming months, we will start to supply volumes against the CDMO contracts that we have announced in the past few months. So across the three parts of our specialty chemical business, our exports volumes are growing in a very significant way, which is also reflected in our overall business mix, where exports have grown almost 50% versus last year in the overall portfolio.
Got it. Got it. That's all from my side. So thank you so much.
Thank you. The next question comes from the line of Siddharth Gadekar from Equirus Securities. Please go ahead.
Hi, sir. Good evening. So the first question is on FY25 revenue growth. If you look at the revenues, despite the kind of performance we have seen, we have not seen any material revenue growth. How should we think about this under our Pinnacle 3-4-5 program?
Yeah, that's a good question, Siddharth. You will have to dissect our growth rates by businesses. If you look at specialty as well as nutrition segments, they have grown quite significantly. Specialty segment growth is 15% year-on-year for the whole year FY25, and volume growth is even higher than that because pricing declined in a couple of segments. The net growth in revenue terms is 25%, and nutrition segment has also grown by almost 10%. And these are the two segments where we have been investing heavily. And as we shared in our opening remarks also, bulk of the INR 2,000 crore of investment or INR 1,800 crore of investment that we have made in the last three years has gone into specialty and nutrition segments.
We are in the process of ramping up the capacity utilization of these two businesses or the capacity which has come up in these two businesses. So we are pretty sure that we'll be able to maintain almost 15%-20% growth in these two segments on a year-on-year basis in the coming years, which is very critical to meet our Pinnacle 3-4-5 vision. Acetyl is the only business which, as I explained in response to the first question, is going through a down cycle. But as I mentioned, it is very close to the bottom of the cycle, and we see an uptick in both volumes and price, which will further give boost to the growth on the acetyl business, but also on the overall company revenue.
So at this stage, we are hopeful that we will be able to maintain a 20% year-on-year growth trajectory to meet our Pinnacle 3-4-5 aspirations by FY30 at the overall company level.
Yeah. So the second question is on the second EBITDA for the full year. Our EBITDA has grown by almost 70% from INR 248 crores to INR 422 crores. Out of this EBITDA, how much of this would be attributed to the cost-saving initiatives that we have done?
See, we have been, and I've been sharing those updates in the quarterly calls. We have been working on both sides. One is increasing the volumes in specialty chemicals. And as I just said, the volumes have grown even faster than or more than 15% last year. And at the same time, we are focusing on cost optimization efforts as well. We haven't shared the exact breakdown in the markets because of the confidentiality reasons. But what I can tell you is both sides have contributed in a very healthy way to the overall growth of EBITDA, which we have seen.
So lastly, on that Lean 2.0, where we are expecting INR 100-INR 150 crores of incremental cost savings, should we look at that coming entirely in FY26 or that can spill over to FY27?
The intent is to deliver those kinds of savings during the year itself. But of course, as we talk, we are still in the process of defining as well as executing some of those initiatives. We are moving as fast as we can to ensure that bulk of it gets aggregated into FY26 P&L itself. There could be some minor spillover, but at this stage, at least, we are hopeful and working towards ensuring all of it or most of it comes in FY26 itself.
Okay, sir. Thank you so much.
Thank you. The next question comes from the line of Resham Jain from DSP Asset Managers. Please go ahead.
Yeah. Hi. Good evening, team. Congratulations, first of all, for a very strong performance in FY25. So I think there are three questions from my side. First is the overall INR 2,000 crore CapEx, including some spillover in FY26. What is the kind of revenue you are expecting overall? How much has been achieved, and what is that incremental which is yet to come by?
Yeah, Resham, that's a good question. So out of the INR 2,000 crore, as we said, we have committed close to INR 1,800 crore. Some part is spilling over into FY26, particularly against the big project that we announced on the agro-CDMO side a couple of quarters back. But as we shared in the previous calls as well, our revenue-to-CapEx ratio for most of the specialty and nutrition investment is close to 1.3-1.4. And on the acetyl side, it's close to 1.6-1.8, of course, depending on what price acetic anhydride is floating at. But at an overall level, average revenue-to-CapEx ratio has been close to 1.5, which means the full potential revenue coming from this INR 1,800 crore of investment, and then if I take out some of the infrastructure investment like in the boiler, etc., will be close to INR 2,000-INR 2,500 crore.
Of course, part of it is dependent on what price level market is operating at. I would say at this stage, based on the capacity utilization as well as the revenue, the mix of revenue from new areas in our FY25 revenue, I can tell you almost 50% of that has already been achieved, and the incremental growth of another 50% will be coming, or INR 1,000 crore or will be coming from the same assets as we start utilizing them at a higher capacity levels.
Okay. Understood. So basically, if I look at the revenue at an aggregate level, we have improved on margins, but revenue, maybe because of price, it has still not fully visible. But you expect a good, healthy growth in FY26 just because of all this utilization level to improve. Okay. Got it.
Yeah. No, Resham, absolutely right. And if you look at our revenues, just compare it, FY23 revenue with FY25, you will see the chemical intermediates revenues have come down to almost INR 1,000 crore. So what has happened is we have added new revenue of about INR 1,000 crore plus through all these investments, but that got offset by the decline in chemical intermediates, which is what I was saying. Almost on the back of this new capacity, the total incremental revenue expected was INR 2,000-INR 2,500 crore. Half of that we have achieved. But of course, that half got offset by whatever happened in chemical intermediates. But the other half of INR 1,000 crore plus is yet to come, which we are hoping to achieve in next year also.
Resham Jain here, j ust to add to what you mentioned, if you see our full-year results, our specialty has grown by 15%. Our nutrition has grown double-digit at 10%. So the growth drivers that we have highlighted are continuing to firing. It's just that pricing chemical intermediates at an overall level makes the results look muted. But the growth drivers are performing in line with what we have highlighted earlier.
Yeah. Correct. Yeah. The second question is with respect to nutrition. So if I look at FY22 levels, you did almost like INR 160 crores of EBITDA in the—sorry. Am I audible?
Yeah, yeah. We can hear you.
Yeah, yeah. INR 160 crores EBITDA. We have seen good improvement this year compared to last year, but still much lower than what we did in FY22. So should one expect that what happened in FY22 was aberration or maybe at—what would be the normalized level of EBITDA compared to what you did in the past?
See, FY22, as we all know, Resham was a peak year for everyone and in all chemical categories. So I won't set that as a benchmark. We have always said that in the nutrition business, our steady-state EBITDA should be around 16%-18%. And if you look at last quarter or let's say FY25 overall, we are at 14%, while last quarter is at 16%. So we are close to where it should be based on the existing set of assets. So I think maybe there is some improvement potential from INR 101 crores that we have announced in FY25, but I don't think, at least on current asset, it will go back to INR 160 crores.
Having said that, we have recently commissioned the new plant, which is a high-margin, high-priced product that will add significantly in the next three or four quarters, and we are already seeing good ramp on the volumes from the new plant. Number two, even in our animal nutrition portfolio, we are adding new products on the premixes side, which are high-margin products for us. And number three, in the human nutrition portfolio, as I have announced in the past, both straight molecules like CC, CBT as well as some of the premixes we are working on should add further to the overall growth as well as margin profile of that business. Stepping back, currently, our nutrition business is about INR 750 crore.
As we shared in the investor day also in February, we have plans to take that business to two to two and a half times in the next five years as part of our Pinnacle journey, and the EBITDA margin falling close to 16%-18% in steady-state.
Yeah. Got it. The last question is we saw very good margin growth this year as a whole, so the EBITDA grew much faster than revenue, and given that you have cost-saving initiatives, should one expect similar momentum in FY26 as well in terms of EBITDA growing faster than revenue?
Hi, Resham. S o yes, EBITDA growth will continue in the very similar trajectory, but next year, as Deepak mentioned, for us, we are intending to grow aggressively in 2026, so EBITDA growth will definitely outpace the growth in revenue, predominantly because of the portfolio shift as well as the savings initiatives. So logically, it will be pacing ahead of growth.
Okay. Understood. All the best for the next year. Thanks.
Thank you, Resham.
Thank you. The next question comes from the line of Siddharth Gadekar from Equirus Securities. Please go ahead.
Hi. So one more question on the CDMO side. What were our CDMO revenues in FY25? And we spoke about 25 new opportunities we are exploring on the CDMO side. Can you give some color on what kind of opportunities are those and when we will see actually those shaping up?
Yeah, Siddharth, hello again. First of all, we never disclose the segment-wise revenues within specialty, so I won't be able to give you a specific number. But what I can tell you is our CDMO business is meaningful and will scale up pretty rapidly on the back of the contracts we have signed on the agrochemical side as well as the traction we are getting on the pharma and semiconductor side. Now, coming back to the second part of your question on this 25-plus molecules, as we have shared in the past, our CDMO business has three parts: agro, pharma, and semiconductor. We have sales funnels which we have created along with a dedicated team for each of the three parts. And we are doing aggressive business development in terms of meeting the customers in the U.S., Europe, and Japanese markets.
On the back of that, these are 25 molecules which we added in FY25 itself. They are at various stages. For instance, in pharma, a lot of leads which come are at phase two, phase three levels. So they will take time to scale up. But these are high-quality molecules and falling in our chemistry. And that's why customers have confirmed even samples for many of these to us. So we are hoping that as they scale up in coming quarters and years, the pharma side of CDMO business will scale up. Similarly, on the agro side, there are two commercial projects which we have already announced to the market, so I won't talk about them. Both are scaled projects and will add substantially to our overall revenue as well as margins by the end of this fiscal year.
But there are at least half a dozen other opportunities or molecules where customers have shown strong interest, and they are again in various stages of discussions with the customers. On the semiconductor side, I have shared in the last quarterly call as well as in investor day presentation that we have close to 8-10 molecules and almost half a dozen. For half a dozen molecules, we have already sent the samples also to the customers. Small volumes, small value to start with. But because this is just the start of semiconductor for us, we are hoping on the back of this we'll be able to create both capabilities as well as credibility with the customers to scale up this business in the coming years.
So just on the semiconductor part, how long does it take from samples to actual deliveries? What is the time for customers to approve or window?
See, this is, Siddharth, y ou will appreciate semiconductor chemicals is new to Indian access, not just to us. And even the customers who are outsourcing these molecules are testing the waters. So they are navigating in a calibrated manner. So I think they have moved within a year, almost six of them moving from just a plain vanilla lead to sampling is actually faster than at least what I thought last year around this time. We are hopeful that they will move to commercial revenues in the next couple of quarters. But the revenue contribution of that could be small to start with because this is how the semiconductor space works. And anyway, as I said, customers are also moving in a calibrated manner.
Got it. Thank you so much.
Thank you. The next question comes from the line of Rohit Nagaraj from B&K Securities. Please go ahead.
Thanks for the opportunity and congrats on good set of numbers. First question again on the CDMO front. So given that our strong focus incrementally on CDMO with three subsegments catering to, what are the capabilities that we have developed over the last couple of years and where we are differentiating probably from other competitors from their offerings? So how everything is shaping up from the capabilities and maybe chemistry point of view? And are there any unique chemistries that we are working on where probably we'll have some kind of advantage? Yeah. Thank you.
Thank you, Rohit. Yeah, definitely. I think the customers also keep asking us the same question, and we have been able to give a credible answer to them. That's why we are getting these leads. But while I cannot go into the technicalities and details of that, what I can tell you is there are three, four areas where we have invested heavily in the last couple of years. Number one is we have a strong R&D team of 150-plus people, and we have hired a bunch of new folks in our R&D, new R&D center in Greater Noida, which we had announced two years back. So the core R&D capability has been beefed up significantly in the last two years, and we are still going through that process. So even this year, we will be investing heavily in our R&D to create that muscle.
Number two, while we have 30-plus chemistries where in the last four decades we have done plenty of work, there are 10 to 12 chemistries which are core to us where we have done probably more amount of work than anyone else in India. And in those chemistries, the customers always prefer us. Number three, we have some core product platforms or chemistries like pyridine or diketene or many other, even acetyls and anhydride, etc. Whenever customers have a requirement in these chemistries or wherever the KSM is dependent on these chemistries, we are the first port of call. So the two agrochemical contracts we announced a couple of quarters back are linked to these kind of product platforms where we have the unique advantage vis-à-vis anyone else, not just in India, but in the world.
And fourthly, even in terms of our BD capabilities and the level of engagement we have had with the customers over the last one and a half years with almost 120-plus customer meetings that I myself have done, which I told in the last two quarters as well. And the whole business team as well as the business development teams that we are strengthening as well as scaling up in markets like U.S., Europe, and Japan, we are getting very strong traction. The customers believe in our story, and they are seeing what we are delivering in the projects which have already been awarded to us. So a combination of all these four, five things is leading to a very strong flywheel for us, which has started to spin. And I'm very confident that in the coming quarters, it will move even faster.
Thanks. That's a detailed explanation. The second question in terms of, again, coming back to Pinnacle 3-4-5, in terms of incremental CapEx to reach that 3X and 4X revenue and EBITDA, respectively, what is the kind of CapEx which will be required beyond FY26 where you have already spelled out the CapEx number? Yeah.
Yeah. So we gave a directional answer there even in our investor day in February. Rohit, the short answer is over the next three, four years, we'll need at least INR 600-800 crore of investment every year to achieve the organic part of that Pinnacle 3-4-5 vision that we have crafted, which means over the, if you take the four years, anywhere between INR 2,000-2,500 crore of additional investment. Of course, this comes with a disclaimer that we are making certain assumptions on the pricing of the products, which now seems to have stabilized, but we'll have to see what happens to pricing in the coming two or three years.
If the pricing stays where it is, with that kind of incremental investments, we are hopeful we'll cross the INR 10,000 crore mark, which we said organically we want to do as part of the Pinnacle journey.
Right. And one last clarification on the CGMP compliance facility. So have we started providing the samples? And where are we in terms of the approval process? And what are the timelines we are looking at for the initial commercial orders to come from this project?
Rohit, you're talking about the CGMP, right? Or the pharma?
CGMP. Yes. The human and cosmetic-grade products.
Oh, human and cosmetic-grade. Okay. So that plant just got commissioned in January. The total capacity is about 4,500 tons. We are hoping that in the next 18 months, we'll be able to get to 70%-80% utilization levels. The plant is ramping up well, has started to stabilize now as well. And in the last three months itself, we have done significant volume, more than what at least I thought the kind of traction we'll get. And we are also in discussions with a couple of big customers for long contracts and recurring annualized contracts. So we are quite hopeful. And what will help us in that business is whatever is happening in the U.S. market, because that is one key market for us, and we compete against the Chinese.
With the tariff situation evolving so far, at least in favor of India, we are quite hopeful that we'll get a big upside there in the next 12 months, which we'll be able to capitalize on.
Yeah. That's all from my side. Thanks and all the best.
Thank you.
Thank you. The next question comes from the line of Vidit Shah from Spark Capital. Please go ahead.
Hi. Thanks for taking my question. My first question was you mentioned that we are seeing volume recovery in chemical intermediates and parts of specialty chemicals. But can you guide us as to what we are expecting for the prices in FY 20 26 and 2027 and how impacted they are and when do we expect prices to start seeing some sort of recovery?
So, Vidit, the answer will vary significantly by the three segments. If I look at the specialty chemical segment, obviously, prices have come down across segments as we have been sharing in the last few quarters. But we think they have bottomed out now. And for the last six months or eight months also, the prices, by and large speaking, have been stable. At least based on what we know in terms of the capacity situation globally, particularly in China, we don't see a big possibility of price coming back in a significant manner. But of course, there will be some marginal increase which can come based on the demand-supply factors depending on which segment you're talking about. That is on specialty.
So our base case scenario, and we mentioned or announced that in investor day also, has been worked out based on today's pricing, which we hope will remain stable with some upside coming in at least some segments due to the demand-supply factors. On the nutrition segment, the feed segment of B3 will remain stable. There are some short-term volatilities during the quarters. But if I take a long-term secular trend, it will remain stable. We don't see any big upside or pressure there. But the new segments that we are getting into, like the high-grade niacinamide, cosmetic-grade, food-grade, and some of the food nutritional products, there we see a price benefit anyway because those are high-value segments. But also in those segments, given the higher demand, I'm hopeful that pricing can go up marginally.
On the chemical intermediates, as I explained in response to the very first question, we are at the bottom of the cycle or very close to that. We are hopeful that pricing will start to go up gradually in the next quarter or so based on at least whatever we are hearing from our customers.
Okay. Thanks for that detailed answer. And the second one was on margins. So FY26, we are still implementing some cost-saving initiatives, which you said by the end of the year should hopefully be fully through. So FY27 and beyond, what would you expect steady-state margins for each of the segments? Nutrition, you said, is 16%-18%. But if you could help us guide for the other two segments would be great.
Yeah. So I think for the specialty chemicals, with everything we are doing, and we have said that in the past, also 22%+ margin is visible, hopefully more close to 25% as we build out scale and continue to work on our cost initiatives. Nutrition, you already said it, 16%-18%. And chemical intermediates, if you take a long-term secular trend, and we see the data regularly, if I take the last 10-year average EBITDA of my chemical intermediates business, it will be 10%-12%. So those are the baseline assumptions. But of course, there are several factors which keep playing every year with it. So just extrapolating it based on that may not be the right thing.
But at a company level, what we are working towards, as we announced in our Pinnacle 3-4-5 strategy also, is more than 17%-18% plus margin across the three segments put together.
Got it. And just the last one on the semiconductor business and the new products you're introducing out there, you said you'll be starting in a small way. But what is the functionality of the products that you all are introducing in this space? Would you be able to share any of that?
No. On semiconductor, as I mentioned, these are CDMO products. So these are custom synthesis products based on the customer's requirements. So we can't share too much about those products. Having said that, we also have our core pyridine chemistry where we are world leader. There is an electronic-grade pyridine also. We are working on that. And when we are ready with that product, we will announce to the markets.
Okay, sir. Thank you so much for your responses. And all the best.
Thank you.
We take the next question from the line of Nitesh Dhoot from Anand Rathi. Please go ahead.
Hi, sir. Good evening. Sorry, I joined really late. Not sure if this has already been taken up. So just needed one clarification. So the current year's capitalization is only around INR 200 crores. So while I think the cash spend was around INR 400 crores, but most of it is in the CWI payability. So was that just the agro MPP that has been commercialized, or are there any other CapExes also?
No. So the total capitalization is not INR 200 crores. It's ahead of INR 365 crores. That's the capitalization. So this year, we have increased, we have spent north of INR 350 crores in our CapEx. And the second part of it, cash flow, cash flow is more in two forms. One is what we have capitalized, and second is the capital advances which sit in the balance sheet. So we are committed to invest in the CapEx to fund the growth. What was the second part?
No, just, yeah, wanted to clarify whether it was just the agro MPP or were there any other commissionings?
There's a niacinamide plant that we have invested in that was highlighted. It commissioned in January. That was a big CapEx that we have invested in this year which got commissioned.
FY25?
FY25.
Nitesh, as we announced in the past, I think the big investments have gone into, of course, the agro intermediate plant which we are going to use for the big CDMO contract. We have invested in the niacinamide plant, the CGMP plant. We have invested in boilers. We are investing in other infrastructure to support all the growth initiatives. And there was some spillover from our GMP and MPP plants which we have invested behind, including the diketene plant in FY24. So those were the four, five big investments in FY25.
All right. Thank you so much.
Thank you. The next question comes from the line of Gokul Maheshwari from Awriga Capital Advisors. Please go ahead.
Yeah. Hi. Thanks. Just clarification on the CDMO project. You had indicated last time that it will go live by January of 2026. Is the timeline still pretty much intact?
Yes. The big one, we are hoping to commission the plant by end of this calendar year and start the supplies to the customer latest by January, hopefully sooner than that, and we had also announced the second one for which the supplies will go starting this quarter itself.
Okay. So in this year, you will see the second, but the smaller order being played out in FY26 b ut the big one, the full combined impact of both these orders will be played in FY27?
That's right. But there will be significant impact on, hopefully, the last quarter numbers from the big one, even in this year.
Right. Great. Thank you so much.
Thank you. Ladies and gentlemen, that was the last question, and we conclude the question and answer session. I now hand the conference over to the management for their closing comments.
So we thank you all for joining this call today. We hope we have been able to answer your queries. For further clarifications, I will request you to contact our Investor Relations team. Thank you once again for your interest in Jubilant Ingrevia Limited. Good evening to us.
Thank you very much.
Thank you. On behalf of Jubilant Ingrevia Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.