Himadri Speciality Chemical Limited (HSCL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Himadri Specialty Chemical Limited Q4 and FY26 conference call hosted by MUFG. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chiragh Vatia from MUFG. Thank you, and over to you, sir.

Good evening, everyone, and welcome to Q4 FY26 on the conference call of Madhuri Specialty Cameras. Today on the call, we have with us Mr. Anurag Chaudhary, CMD and CEO, and Mr. Kamlesh Agrawan, CFO. Before we proceed with the call, I would like to give you a disclaimer that this conference call may contain forward-looking statements about the companies, which are based on belief, opinion, and expectation as of today. Actual results may differ materially. The statements are not guarantee of the future performance and involved risk and uncertainty that are difficult to predict. A detailed safe harbor statement is being given on page 2 of investor presentation of the company, which have been uploaded on the stock exchange and on the company website. With this, I now hand over the call to Mr. Anurag Chaudhary. Over to you, sir.

Thank you, Chirag. Good evening, ladies and gentlemen, and thank you for joining us today to discuss Himadri's specialty chemical limited performance for Q4 and FY26. I sincerely appreciate your continued trust and engagement and it is a pleasure to connect with you once again. At Himadri, research and development is not

merely an enabler, it is foundational

to who we are and how we have evolved over the years. It is not a standalone function, but deeply embedded in our business strategy and culture. It is part of Madri's DNA. Our growth into high-value specialty chemicals and advanced materials have been driven by deep and sustainable commitment to in-house innovation supported by a robust and constantly evolving research and development ecosystem. Today, we operate one of India's most comprehensive specialty solutions, research, and development platforms with a team of over 180 scientists, technologists, and subject matter experts, including 28 PhDs in different themes of chemistry and international specialists drawn from Japan, South Korea, Australia, United States, Europe, and China. This global exposure combined with strong process engineering and scale-up capabilities. has enabled us to consistently translate ideas from laboratory into commercially viable business alternatives, scalable solutions across carbon value chain, specific chemicals, and increasingly Advanced material chemistry. Importantly, it is this same research and development engine that continues to drive the development of several new breakthrough solutions that are currently in our pipeline, many of which have reached advanced stages of development are in the progress towards commercialization. During the current year, we spent 120 crores in research and development. It is this long-standing R&D capability built recently over more than a decade of focused work in lithium-ion chemistry that has culminated into the most defining milestone for Himadir this year. On 23rd April 2026, we successfully commenced operation at our first anode material manufacturing facility in Majesticree, West Bengal, with an initial capacity of 200 mt per annum. Marking a pivotal step in our entry into lithium-ion battery material value chain. What makes this achievement particularly significant is that the entire technology platform, from raw material processing to finished anode active material, has been developed fully in-house without reliance on external or licensed technologies. At the core of this capability is a... Specially engineered high-purity koltar pitch produced entirely in-house by Himadri, which serves as a primary raw material precursor and enabler for superior quality, consistency, and performance. This degree of backward integration supported by proprietary process know-how gives Himadri a fully integrated and self-reliant manufacturing ecosystem. While maintaining the flexibility to process alternative raw materials as market evolves. At various sampling stages, our differentiated approach, build on innovation, cost efficiency, and sustainability, positions us strongly for validation and scale-up in this high-growth segment. Building on this, our broader lithium-ion battery material strategy continues to progress in a calibrated and disciplined manner. Underpinned by strong focus on prudent capital deployment to drive sustainable returns and maintain a robust ROC profile. Execution of phase 1 of our lithium-ion-phosphate cathode active material project, which embassies our total capacity of 40,000 mt per annum, is on track. As part of this phase execution, the first milestone capacity of 2,000 mt is targeted. For commissioning by Q3 FY27, the balance phase 1 capacity will be progressively brought on steam over the subsequent 12 months, closely aligned with customers' approval and demand visibility, with FY29 envisaged as the year for full phase 1 operations. Beyond phase 1, our long-term vision is to build a scale, globally relevant LFP platform with a capacity to produce 200,000 mt of LFP cathode-active material catering to the approximately 100 GW of lithium-ion battery capacity, executed in a phased manner and demand-like manner. Importantly, this positions Smadri as first company globally to establish LFP. Commercial-scale FB cathode active material manufacturing facility outside China, serving both domestic and international markets and representing a significant step towards Atma nearby Bharat. Customer engagements have intensified significantly with leading Indian as well as global cell manufacturers, and the response has been strongly encouraging. This reinforces our conviction in LFT as a chemistry of choice across electric mobility and ESS globally, and underpins our confidence in long-term relevance of this platform. In parallel, our collaboration with Sikuna battery technology has progressed meaningfully over the year, marking a truly transformative phase in the development of next-generation anode materials. Through an exclusive technology licensing agreement, Himadri has secured a right to access, localize, commercialize Sikuna's proprietary silicon-carbon anode technology in India for the world. During the year, Sikona has achieved important milestones at pilot scale level with further capacity expansion currently underway and targeted for completion by Q2 FY27, supporting intensified engagement with global self-manufacturers across multiple stages of sample approvals. Performance-wise, Sikona's Gen 3 SICX material have demonstrated superior energy density and improved electrochemical characteristics, while Gen 4 SICX has shown high capacity retention over extended cycle life, aligning with the stringent requirement of leading global OEMs. Further advancing our strategic roadmap, we have made a strategic investment in IBC, International Battery Company, a U.S. headquarter developer and manufacturer of chemistry-agnostic prismatic lithium-ion cell. This collaboration represents an important milestone for Himadali, as it enables real-world verification. including LRP cathode active material and anode solutions. Leveraging Product validation, scale-up, and customer engagement, thereby accelerating our From a market perspective, IBC operates across a diversified set of end-use applications, including B2B fleet customers, 2, 3, 4 dealers, OEMs, global battery exports for energy storage and mobility solutions. Importantly, IBC looking forward products roadmap also. Thank you. Alongside this, our collaboration with Inverti creation continues to progress steadily, with focused research efforts underway across advanced lithium-ion electrode materials. Inverti brings strong capabilities in modular engineering research and intellectual property development, which complements NIMADRI's ambition to build innovative high-performance battery material platforms. Taking pleasure, these initiatives. and decisions and strategic investments and partnerships are enabling largely to build a future-facing integrated product and technology platform across the lithium-ion battery value chain. By combining advanced material innovation, real-world validation, and deep research capabilities, we are creating a collaborative ecosystem that is well-positioned to serve emerging sunriser industries spanning electric mobility, ESS, defense, drones, This approach extends our ability to develop differentiated solutions, shorten the commercialization cycle, and remain relevant as new applications, chemistry, use cases continues to evolve globally. Turning to the operating environment, recent geopolitical developments in West Asia have introduced volatility in energy prices and logistics. However, our business remains structurally insulated as we are not dependent on that reason for our core feedstock operations. Our raw material platform, diversified end-use portfolio, and strong customer relationships continue to provide stability and resilience. I am pleased to report that FY26 has been a year of strong execution and delivery. During the year, we successfully commissioned an additional 70,000 mt specialty carbon black facility at minus degree. Taking our total speciality carbon black capacity to 130,000 mt per annum and overall carbon black capacity to 250,000 mt per annum. This positions the Maestri P facility as the world's single largest location for speciality carbon black plant and places imagery among the top five players globally in this segment. Alongside this, our core Colta pitch and associated products business is also well positioned for the next phase of growth. With the successful de-bottling of our Colta pitch distillation capacity, taking it to 600,000 mt per annum, and the commissioning of liquid Colta pitch export terminals at Haldia and Manglore, we are now in a position to leverage Operational headrooms and logistics capability to support growth in the coming quarters and further consolidate our leadership position in Colta pitch segment. Financially, we have delivered our strongest performance to date. On a consolidated basis, EBITDA school at 1006 cores, PBT at 1001 cores, and Profit after tax adds 755 crores, reflecting the strength of our value-added products, portfolio, operational discipline, and consistent focus on in-house innovation. Beyond this, our growth continues to be supported by a well-diversified portfolio spanning across graphite, aluminium, lithium-ion batteries, specialty chemicals, and advanced chemicals. Downing for our next. Strategic growth pillar, Villa Tyres, F526 marks the first half year of operation of Villa Tyres. We have been able to revive the brand and steady progress in rebuilding both market presence and the operating foundation have been encouraging. We have approached this revival in a calibrated manner, prioritizing product market with channel strength and brand repositioning before pursuing volume-led growth. Our current portfolio, anchored by proven products such as Kalabathar, Sanplus, BT339, and Ultratrap, continues to be well received across key segments, particularly in agriculture and commercial vehicles. In the fourth quarter, we strengthened our agri-portfolio with launch of new SKUs. AgriPlus and AgriBin Tractor Tire Series, both of which are already witnessing in current market traction. From a distributor standpoint, we have established a strong and expanding network of 43 distributors and over 1,000 dealers, giving us a solid platform for scale. More importantly, brand acceptance continues to rise as we consistently deliver on quality, reliability, and performance. Key drivers in this category. Looking ahead, our focus is clearly on disciplined scale-up. We are now entering the next phase of revival, where production ramp-up will be aligned closely with demand visibility and channel expansion. Over the next 12 to 24 months, we will be progressively Enhance our capacity utilization, supported by a robust pipeline of new product launches across agriculture, mining, and commercial vehicle segments. In parallel, we are strengthening our manufacturing processes and supply chain to ensure consistent quality and volume scales. Our objective is not merely to regain presence, but to build a competitive and differentiated tire business that can sustainably participate. In both domestic and select international markets. Birla Tires is still early in its journey, but the direction is clear. A measured and disciplined revival built on product strength, market relevance, and execution excellence. We are confident this business will evolve into a meaningful contributor to Ramadhi's overall growth in the coming years. Beyond this... Consumer foray into Durapress continues to gain increasing traction, adding further depth to our diversified portfolio. Looking ahead, our Anthoceno and Carbazal project is progressing as planned and expected to commission in Q2 FY27, helping address a significant import dependency in India. At Himadhi, research and development is not a function, it is core capability embedded in how we operate. Our global R&D ecosystem continues to drive innovation across all business verticals, enabling us to develop differentiated, high-value-added solutions for emerging industries. Sustainability remains integrated to our core. For the second year, for the second year, has been awarded with a platinum rating by EcoVardis, being among the 1% company among 150,000 companies rated by EcoVardis globally. As I conclude, Fy26 marks an important milestone in Imadi's transformational journey. When we stood before you 12 months ago, we made clear commitments, and I am pleased to say that we delivered on all of them, and in several areas gone beyond. We committed to expanding our specialty carbon black capacity we delivered. We spoke about deepening focus on value-added products, which is reflected in our consumer foray with Durapris. We departed our quota distillation capacity from 500,000 to 600,000 metric tons and revival of milla tiles. Importantly, this execution has been underpinned by strong operating performance as we set new benchmarks across key financial and operational metrics during the year. As we look ahead, we are entering the next phase of growth with strong foundation, clear strategic direction, and disciplined execution. With our spending presence in advanced materials, particularly within the lithium-ion battery ecosystem and the steady revival of Della Paz, we are confident of creating sustainable long-term value for all our stakeholders. Thank you, and I now invite our CFO, Kambalish Arvall, to take you to the financial performance in details. Thank you, Kambalish.

Thank you, Anuragji. Good evening, everyone, and thank you for joining us today. I trust that everyone has had a chance to review our financial results and the latest commercial presentation which have been made available on both the stock exchanges and our company's website. This quarter and year marked an important milestone in our transformation journey. On a consolidated basis, we are pleased to share that we have achieved 100% extra and back on both utterly and fully addresses, which was due to our focus on high-value added solutions for personal efficiency and cost optimization. From a quarterly perspective, in Q4 FY26, our consolidated revenue stood at Rs. 1,288 crores as compared to Rs. 1,135 crores, an increase of 14%. EBITDA came in at Rs. 280 crores, registering a growth of 21% year-on-year, while PAD stood at Rs. 208 crores. Delivering a strong growth of 34% year on year. Looking at the cumulative performance for full year basis, our consolidated revenue stood at Rs. 4,661 crores. EBITDA reached Rs. 1,006 crores, up around 19% year on year from Rs. 847 crores in FY25. Profit after tax stood at Rs.755 crores, reflecting a growth of 36% year-on-year over 555 crores reported in FY25. This performance highlights the strength and resilience across all the business segments. Coming on standalone basis performance, in Q4 FY26, revenues stood at Rs.1,101 crores. With EBITDA at Rs.252 crores, while PAT came to Rs.186 crores, registering a growth of 17% against Rs.158 crores of EBITDA in Q4 FY25. For FY26, on a standalone basis, revenue stood at Rs.4405 crores. EBITDA Rs. 978 crores, reflecting a growth of around 16% when compared with 844 crores in ABY25, while profit after tax stood at Rs. 750 crores, a jump of 34% as compared to Rs. 558 crores in ABY25. Over the last five years, on consolidated basis, we have demonstrated a consistent and robust financial performance, reflecting the strength of our strategic focus and execution. Since FY22, our revenues have grown at an impressive CAGR of 14%. More significantly, our EBITDA has expanded at a CAGR of 58%. And our profit after tax has growth at an exceptional 110% failure. In terms of financial health, we continue to maintain a resilient balance sheet. As of 31st March 2026, we hold a net positive cash balance of Rs. 121 crores. Which gives us ample flexibilities to pursue growth opportunities while maintaining a prudent approach to capital allocation. Our return on capital employed has also shown a steady upward trajectory reaching to the level of 32% in FY26. A testament to our sharp focus on value creation and capital efficiencies. With these results, we believe we are well positioned to continue our upward trajectory, building on a foundation of financial strength, operational excellence, and strategic foresight. Thank you.

Okay, we can start the question and answer session.

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 1 on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Sanjesh Jain from ICIC Securities. Please go ahead.

Yeah, hi. This is Sanjesh Jain. Thanks. Thanks for the opportunity, and good evening, Anuragji and Kamlaji. Good evening. First question on the anode business, like you have mentioned, Growth path for your cathode, where you want to start with, say, 2,000 metric ton and scale it to 40,000 in FY27 and eventually to the 200,000. Can you share us the thought process of the growth trajectory for anode?

So, for the anode business, we are still working on it, and in due course of time, we'll come up with the figures and the investment required and the timeframe.

Got it, sir. But what will be the market size for anode today and what is the economics between cathode and anode? And how do you see the pitch-based anode demand versus silicon-based carbon, which we are developing parallelly? How do you see this portfolio playing out for us?

See, cathode and anode together constitute an integral and important raw material for lithium-ion batteries. In terms of cost, it is 65% of a cell, lithium-ion cell, cathode and anode together. And in the ratio, suppose, for a lithium-ion cell, anode and cathode is used in a ratio of 1 is to 2. So, suppose, 100 is the requirement of anode, so 200 will be the requirement of cathode. So basically, in whichever cathode chemistry you are working, but anode requirement remains stable. So whether it's NMC, CLO, LFP, whichever the chemistry is, but you need anode. And anodes, they are different types of anodes, natural, synthetic. Synthetic, they are petroleum-based and colta-based. So we have the unique positioning of both. And regarding silicon carbon anode material, it is added to synthetic or natural anode to increase the capacity of the battery, increase the density and reduce the charging time. So silicon is an add-on to make hybrid anode. So it's not actually that you can use either this or that. Silicon has to be added to this material.

Got it, got it. But today we don't add it, right? This is something which will happen.

We are adding. Already it has started in some percent, very small percent, globally, but since the capacity material availability is very limited, so that supply is not much.

Got it. My second question, Arwagji, on the Middle East issue, we were planning to export Colta pitch in the Middle East. And obviously, South Africa and other geography. But Middle East is something where we have already started. With this situation, what's happening in the Middle East, you see, there will be some shift in the focus for coal tar pitch from Middle East to other geography and which will be those geographies.

See, this is a temporary phenomenon, we feel, and so, some shipments were planned for Middle East, but that's not going to have any material impact, because we are diverting those materials to other geographies. So, there is absolutely no issues with that.

So, which are the geographies we are trapping, apart from Middle East?

Like, we are looking at different geographies, like Southeast Asia, Africa remains intact.

Got it. But Southeast Asia, we would see competition higher from China, right? Geographically.

China, actually, competition is not there because we supply, our quality is very high, and plus, China cost is higher than India. So, even in India, we supply Golta, which has a price lower than China. So, that dynamics doesn't work for our business. China's dynamic is not at all valid for our business.

Got it. Got it. In the carbon black business, we started this new plant. How has been the ramp up in that? That's one. Number two, the situation in carbon black should be positive for us, right? Because carbon black realization has gone up. Globally, there is a large capacity which uses crude based feedstock while we use coal tar based feedstock. Now that coal tar prices, my senses would not have gone as sharply as crude. So this shift in the carbon black business from the higher input cost should positively reflect for Himadri?

So, what we have developed is a long-term sustainable business model. And we don't look at, you know, quarter and quarter ups and downs. But one thing is there, the model what we have built up, we can transfer the increase in price to our customers. So whether it is crude-based or colta-based, whatever increase in price is there, we transfer to our customers. So that has helped us to build up a resilient business model.

No, but in a situation where one carbon black feedstock is expensive, we can use more of our own oil to produce carbon black, that economics is much better right now?

Yes, definitely, that economics is better, but colta prices have also gone up. So, I don't think that is the delta on which Himadri has built up its business model also, and that is not something which we, I also, we have, we work on sustainable profit, and which is formally assured.

Got it, sir. That's it from my side. Thanks for answering all those questions, and best of luck for the coming quarters.

Thank you. Thank you so much.

Thank you. The next question is from Raheel S. from Sapphire Capital. Thank you, and please go ahead.

Yes, hi, sir. Good evening. Can you hear me?

Yeah, yeah, we can hear you. Please.

Yes, yes. So, firstly, coming back to this anode capacity, specifically the 200 metric tons, right? Can you tell us what will be the peak revenue potential from there, and how will the utilization look like in a 527?

So this capacity is basically to commercialize our R&D efforts and to showcase that what we have worked on R&D is workable on a commercial plant. So this is the beginning of the journey. And if you, I have the next tip, we will be announcing capex for the large scale commercial capacity where meaningful revenue will start coming in.

Okay, so as of now, nothing is expected from this 200 metric tons in terms of numbers.

In terms of numbers, these are not significantly materialistic because these are more affordable based volumes.

Okay, so in F-127, this will not be contributing to our revenue any sort.

This will be contributing, but not materialistic.

But not materialistic, okay. Secondly, then, coming to the Birla, you know, the Birla Tire segment, which you have restarted, how much did you contribute in FI26 in terms of revenue, and how will it scale up now going ahead?

The Birla Tire top-line contribution for this year was 187 crores, and we expect to be around 3,000 crores of top-line from this business in the next four years.

Do you have any indication as to what will it be in FY27, particularly?

We don't give year-on-year, you know, yearly guidance.

Okay. So, what about, like, overall in consolidated levels, any guidance there for revenue and our EBITDA margins for FY27?

See, again, coming to that, I have given a guidance that FY25, we had a path. of 555 crores. So we have committed to double this fat in next three years in FY28 to 1100 plus crores. So the right way to look at Himadri is not at EBITDA, but at fat levels. If you consider, look at Himadri also as a percentage of top line is 16 plus percent. So because there is no interest and no additional cost, so the right way to look at Himadri is a consolidated top line and

Okay, so just last thing, then if I observe, your top line has, I think, in FY25, it grew at 10%, okay, and FY26, it largely has been flat, correct? So with these new additions of the billet tires and the added carbon black capacity, will your top line also grow? And at what rate is that? Yeah, any indication there?

Sure, sure. So, up till now, last 3-4 years, you have not been able to see any growth in the top line practically, maybe a few percent, but now the real top line growth starts. F527, you will see top line growth also and bottom line growth also.

Okay, but you don't have any sort of growth number to attach?

I don't want to give any growth number.

No, okay, okay. No problem. Thank you so much.

Thank you. The next question is from the line of Akshay from AK Investment. Thank you, and please go ahead.

Hello. Am I open? Yes. Yes, Akshay. Thank you. Thank you so much for giving me this opportunity and also congratulations for the great trade-off number. My first question is, we have generated the IHR gross profit margin this quarter. So, do we see this trend will be continuing going forward for the next two to three years? And also, do we able to continue the 20% EBITDA margin going forward?

Yes, we are confident of achieving this on a sustainable basis. Looking forward also in growth in the numbers.

Okay, sure, sir. And secondly, on the U.S.-Iran war and geopolitical situation, so due to the commodity prices in Pakistan and all over the world, so how do we see impacting our types of business and whether we will face any pressure going forward due to this war?

See, as I told in my opening commentary also, we are resilient to any shock in any movement in, you know, or dislocation in supply chain logistics in West Asia because of the ongoing geopolitical situation, given our nil dependence on this geography. So, definitely with the energy pricing going up, the material prices going up, this will have impact, but good thing is that we'll be able to pass on this to our customers. So, as such, we don't have an impact on our P&L because of this geopolitical situation.

Okay, sir. Okay. Understood and all the best for the future.

Thank you.

Thank you. The next question is from the line of Nitin Shakhtar from Green Capital, Single Family Office. Please go ahead.

Hi, good afternoon to the management. This is Nitin Shakhtar from the Green Capital, Single Family Office. My question is more from an investor's point of view rather than an analyst type of a question is that for this annual year, and in terms of approximate margin guidance, for the three businesses, which is, let's say, advanced battery materials, the turnaround of the acquired assets on Vidla Tires, and obviously the main core business, which is the speciality carbon black. Are you able to give any sort of indication margin guidance growth rate for the year? I do understand that geopolitically your raw material costs will be up and down, but just as an indication.

Thank you. So, for the current year, we don't prefer to give any specific number guideline, but on a macro basis, I can give you a guideline that current year, we will see both top line and bottom line growth. So, up till now, we are not able to give any bottom line growth basically because we are going for value added within the same product profile. So, what was happening? We were adding value to our existing products. So, the margins were increasing, but the top line was not increasing in a big way. But now, with new capacities coming up, you will see top line growth plus margin expansion. So, both you will see in the year to come.

Okay. Thank you. Thanks a lot, and all the best for this year.

Thank you so much.

Thank you.

The next question is from the line of Animesh Jain, from Dalal and Proucho. Please go ahead.

Thank you for the question. I want to ask, what is the current utilization level that we have newly commissioned 70,000 mt of specialty carbon black? And what is the steady-state utilization level and its EBITDA spurtals?

So, we expect to have around 85 to 90% capacity utilization for our newly announced capacity for FY27. And EBITDA in terms of, if you look at our EBITDA per metric ton, it was around 17,000 per metric ton on an average on the entire basket of portfolio. And this being a speciality, it will be significantly higher than this average. 17,000 plus.

And I want to also ask about that we have set up a new subsidiary in China that we have mentioned. So why we have set up that subsidiary and what is it?

So we will be importing some raw materials and equipment from China. For that we have set up our subsidiary to take some local tax benefits.

Okay, thank you. Thank you.

The next question is from the line of Dhruvyn Kadakya from SKP Securities. Please go ahead.

Hello, sir, and congratulations on this robust set of numbers. My only request would be that in terms of sales volume, will it be possible for you to provide me with a breakup as to what was the volume generated between your legacy business, Carbon Black, and tires in this particular year?

So, tasks till now, we have not consolidated. So, once we consolidate, then we can discuss this. Now, it's a part of, you know, sales only, which is coming into Himadri. So, as such number, detailed numbers, we don't disclose.

Okay, so not a problem. And any new updates with regarding to the CAPEX plan than what we already know? Like, is there something on the block?

No, as of now, we have already announced all the CAPEX, but yes, Anode CAPEX will be announcing soon. And once that is finalized, the volume, the capacity, and the CAPEX, that will come up with a new...

All right, so thank you so much.

The next question is from the line of Sagar Jitwani from Philip Capital, PMS. Please go ahead.

Yeah, thanks for the opportunity. This significant jump in the other expenses is because of the forex loss.

Is that correct? Yes, yes.

And so, what is our hedging policy in that case? Can we see some curtailment of this, you know, impact from the forex volatility?

Yes, as you know, there was sharp depreciation in rupees, which impacted us on the import side, and the export side also we hedged something, but generally we keep our position open, but because of this huge volatility, we hedged, and hedging, because of the hedging, we had to incur losses this time. It was the other way around. So, but looking forward, we are very vigilant on this, and maybe... We are confident that after Q1, Q1, there may be some hit, but after that, there will be very strong position in terms of any open position of HACTS.

Actually, my question is not quarter on quarter. It is more of a structural in nature. Can we reduce the volatility swing from these forex losses in the long term?

Definitely, since we have export and import more or less are in parity, so leaving the position open leaves us with very less chance of any effects of volatility.

Understood.

And secondly, yeah. So, that this time we hedged the position, thinking it was going to be volatile, and that's why we had effect loss. But our standing policy was to keep the position open, being import and export, being more or less in parity with each other. So, we will continue with our existing principles only.

Understood. So, what you're saying that beyond Q1, the impact would reduce?

I don't think there will be any impact before, after Q1.

Okay. Secondly, how many new clients that we have added in the last two years, and, you know, geography-wise, any new countries that we are planning to enter or scale up where you might be witnessing some kind of a significant opportunity, given China plus one, there's a, you know, cost escalation in Europe as well, so some color on that would be helpful.

Definitely. So, till last year, our exposure was 56 countries. We were selling our product. This year, it is 61 countries. We have added five more countries. Particularly, Europe is doing good and U.S. is doing good. For us, in Europe also, more and more countries are being added. So, because of, as you correctly said, because of the cost structure in Europe and USA, this is giving us a lot of advantage and China's policy is also working out well for our supplies to the global market.

Lastly, any color on margin can you give up until FY28? I'm not talking about FY27, again, not the one-year guidance, because it's just, you know, a structurally long-term, how do you see the margins? Because we are adding some new capacities also, considering that fact.

Yeah, so with the new capacities coming up, we are confident of strengthening our existing margins further.

From here on. Yeah, thank you. These are my questions.

Thank you. The next question is from the line of Suhani Singh from Seja Capital. Please go ahead.

Okay, good afternoon. So, I wanted to ask if the passenger car radio commissioning, so what is the targeted PCR capacity, the CAPEX and commissioning timeline? And so, PCR is a notoriously crowded segment in India. So, what is the differentiation strategy for that as well?

So, PCR we target to commission in the next 24 months, and differentiating a strategy will be focusing more on EV, that is the segment we will be focusing on, and specialized tire for electric vehicles, and given the hematurgy strength in carbon black chemistry. So, that gives us a unique advantage of building a value-added tire with more strength, resilience, and this gives us a unique positioning in the business, the understanding of key raw material.

Okay, okay. I also wanted to understand the standalone other income jumped from 51 CRs to 176 CRs. So could you break down the composition of treasury, dividends from subsidiaries, government incentives, all one-offs?

Basically, this is because of FDR interest in investments that we have put in mutual fund gains, then NCDs that we have deployed for operation of villa tires, that fair value calculation, then based on our investment, different investment, their fair value calculation, it's a combination of all these.

Okay, I understood, sir. Lastly, with Harria and Mangalore, liquid coal tarpage, terminals commission, what is the targeted FY26 export value and what proportion of standalone CPP revenue do you expect from exports by FY28?

See, by FY28, we expect a new commission capacity of 100,000 tons, which gives us 50,000 tons of colta pitch, that will be completely exported to the global market.

Okay, thank you very much, sir.

Thank you.

Thank you. The next question is from the line of Rohit Nakaj from 361 Capital. Please go ahead.

Thanks for the opportunity and congrats on good set of numbers. So first question is on the anode material facility that we have commissioned. So here in terms of the commercial validation of material, how much time will it take? And which and all are the customers where we will be targeting to send the material? Is it domestic, exports? How are we looking at it? And once the validation is done, how much time will it take for us to put up a new commercial sale plan? Thank you.

The idea to commercialize and start this plant was to expedite the time frame required for validity of material. And that is the idea behind commercializing this plant. We are engaged with all the customers in India and all the, you know, who's who in the industry globally. So we have already sent them sample A, which has been, got a very good Good job. Response from our customers in terms of quality validation. Now, we have to send them sample BCD that will start now. Once it is done, then we will come up with a roadmap for our future capacity expansion. But that will happen very soon. It will not take a significantly long time now.

Sure. Just one allied question in terms of the anode material pricing. How has it changed over the last five years? So what was the price about five years back? And given that new technologies have come, the commercial operations capacity, how the price has been currently in terms of rupees per kg or, you know, molar per kg or dollar per meter? Thank you.

Sir, I don't want to comment on price per maticton, but to give you a broader idea, all the cell component prices have come down between 50 to 60% over the last 4-5 years, whether it is cathode or anode.

Sure, sure.

And second, you know, the pair in anode also, depending on what quality you make, what grade you make, what application you get, so prices significantly value. So it will be not right on my part to comment on a magnificent prize.

That's excellent. The second question is, in terms of our gross margins, which have expanded, so just to get a perspective, I think the pricing of finished goods, working progress, and raw materials would have been at a higher level, given that there have been increased during the month of March. Is there any element of inventory gains that we have observed during this quarter? And if so, what could be the quantum of the sale?

See, the margins expansion that you are seeing is not one-off thing. It's a sustainable long-term margin improvement that because of our all efforts in terms of improvement in yield, operational efficiencies, waste and recovery systems we have been able to do. And these are sustainable on a long-term basis and will strengthen the learning.

I was just concerned more on the gross margin front. So, because of re-valuation or better valuation of the inventories, is there any benefit of inventory gains which we have observed?

More, more. Not really.

Thank you so much and all the best, sir.

Thank you. The next question is from the line of Dhruvind Karakya from SKP Securities. Please go ahead.

Hi, sir. I just wanted to confirm that in the segmental breakup of revenues that we've given, we've included a new category called Others, which includes mining and other businesses. So could you shed a little bit light on what the other businesses are? Like, is it tires combined?

That's Tyre Combined, right.

And you mentioned the figure for tyre sales this year. What was it? Could you please repeat that? 187 crores. 187 crores. And would you be comfortable in sharing what was the realisation for turn on this that you've gotten for this year?

We don't give palmetical realisation like that. Okay.

Not a problem, sir. Thank you so much.

Thank you. The next question is from the line of Vignesh SBK from Seema World. Please go ahead.

Hi, sir. Am I audible?

Yes, yes, please.

Yeah. I just want to understand about upcoming chat or segment of business. What would be the typical assertion for the project or for this segment? Two times.

Hello. Hello.

I just want to understand the other terms for the upcoming cathode segment, sir.

Yes, two times. It will be two times of the asset investment. Turnover to assets. Okay.

And one more thing. For the first phase, we said around 2,000 tons would be commissioned. Who is the phase one? How much should be the total one in the phase one?

What is? Can you speak louder?

Hello? Is it better than you?

Yeah, it's better.

Yeah, yeah. We said initial will be 2,000 NTPA, and what would be the total placement capacity?

40,000.

40,000. And 40,000 would be commissioned by FI29. Is that clear?

Yes, yes. No, FI20, end of FI20, well, before FI29. So FI29, you will see the full year of operation of entire 40,000 capacity. And the reason, logic, we are seeing capital allocation has been done, but we are very careful in terms of deployment of capital because we are focused on ROC. So I don't want to, as a company policy, we don't want to deploy capital ahead of requirement. We can very well set up and start the commissioning, set up the facility and deploy capital. For 40,000 medical, but since the approval period itself takes longer time, so it makes sense to get 2,000, get it approved, and in the same time, 40,000 is, the 28,000 will continue, and it will commission. So that there is full utilization and proper return on capital employed.

Got it, sir. Thank you. And what will be the total capex incurred for this 40,000?

11.25 crores.

Okay, okay, thank you. And in this cathode facility, you see energy comes, energy heavy, or how are we planning to, any plan for the energy side as such, renewables or something like that?

For a cathode?

Yeah, yeah, cathode plant.

Yeah, yeah, we have renewable plants to consume renewable energies.

So, those can be funded.

No, there you buy, you enter into a long-term contract. We don't plan to invest on our own.

Okay, okay. Okay, thank you.

Thank you. The next question is from the line of Yash Mehta from Arkham Capital. Please go ahead.

Hello, good afternoon. Good afternoon, good afternoon. So, I want to ask, are there any binding LOIs, MOUs, or optics signed with Indian or global cell manufacturers for LFP supply? And what proportion of phase 1 capacity is contracted?

What's that?

What proportion of phase 1 capacity is contracted?

Any MOUs or LOIs which we have signed via NDA, we cannot disclose this now. At the right point of time, it will be disclosed. And for our phase 1 capacity, depending on the product approval, this LOIs will be effective.

Yeah, okay, okay, got it, sir. And my next question is, as we can see, the net cash declined from 392 crores to 122 crores, despite record pad. And the standalone current borrowings also rose from 306 crores to 719 crores. So could you please walk me through the FY26 sources and uses? And moreover, can you tell me about the steady state debt level that you will be comfortable carrying forward?

See, the increase in working in the bank borrowing is basically we have significant bank limits. We need to utilize this limit to keep our limits intact. And we take at a lower rate and divide back to the bank at a higher rate. So that gives us delta also, which is part of our delta. So for our future expansion, our plan is to use the internal level only for all expansion. So, in any case, if we take debt also, that will be a very significantly low portion and will be just a timing gap, not much. We don't want to be heavy on debt.

Okay, okay, yeah, that's completely fine. Thank you, sir.

The next... Due to time constraints, I now hand the conference over to Mr. Anurag Chaudhul from Closing Cummins.

Thank you. Thank you once again for taking the time to join us on today's conference call. We hope we have been able to address you very adequately. This year has been truly been transformational as we set new. Performance records, achieved world-class capacity, addition, earmarked landmark recognition, and made decisive progress on our future growth engines. And yet, we firmly believe the best chapters of Himadri's story are still ahead of us. We remain committed to delivering long-term value and are grateful for your trust and confidence and engagement as we scale new capacities and capabilities. Scale new frontiers and save the next phase of our growth. Should you have any further questions, please feel free to reach to our investor partners, relations partner MUFG in time IR. Thank you once again for joining the call today and we look forward to your continued support. Thank you.

On behalf of Himadri Specialty Chemical Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.