Earnings Call Transcript - XNSE:SHREEPUSHK 2026-11-03

Operator

Ladies and gentlemen, good day, and welcome to the Shrey Pushkar Chemical and Fertilizer Limited Q2H1 Quenissence Result Conference Call. As a reminder, all participant lines will listen only more, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on a touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Pankaj Manjani, the company secretary from Sri Pushkar Chemical and Fertilizer Limited. Thank you and all to you, sir.

Pankaj Manjani, Other

Good afternoon, everyone, and we welcome to Shripushtra Chemicals and Fertilizers Limited's Q2 and H1F527 earnings call. Joining us today from the management side, we have Mr. Puneet Makharia, Chairman and Managing Director, Mr. Deepak Berriwaga, Chief Financial Officer. I will now hand over the call to Mr. Puneet Makharia for his opening remarks. Over to you, sir.

Puneet Makharia, Chairman

Thank you, Pankaj. A very good afternoon to our friends and everyone, and thank you for joining us for Sheree Pushkar Chemicals and Fertilers Limited Q2 and H1 FY27 Earnings Call. I trust you all had an opportunity to go through the company's financial results and earnings presentation for the quarter and half year ended 30th September 2026. I will begin with sharing an overview on the company's performance and key developments during the quarter. Following which, our CFO will take you through the financial and operational performance on a much greater detail. We are pleased to report a strong performance during the second quarter, or FY27, with significant growth in revenue and profitability across the company's chemical and fertilizer business. The performance reflects sustained demand, improved business performance, and our continued focus on operational efficiency and disciplined execution. During Q2 FY27, our consolidated revenue from operations stood at 403.5 crores, registering a robust year-on-year growth of 58.2%. On a sequential basis, revenue increased by 44.1% compared to 280.1 crores in Q1 FY27. For the first half of FY27, conservative revenue from operations reached at 683.60 crores, registering a growth of 34.1% year-on-year basis over Rs 509.6 crores in corresponding years of the previous year. Moving to our segmental performance, the chemical business recorded sales volume of 245 crores during the quarter, representing a growth of 85.6% on year-on-year basis. The fertilizer business recorded sales volume of 158 crores, resistance growth of 27.5% on year-on-year. In terms of sales volume, the chemical business recorded 14,368 metric tons, while the fertilizer business recorded 79,277 metric tons during the quarter. The overall consolidation sales volume stood at 93,645 metric tons, registering a growth of 4.3% on year-on-year basis. The performance of both our business reflects improved realization, a favorable product mix, and sustained demand, supporting the growth in revenue during the quarter. Friends, coming to the profitability, the company delivered a significant improve in earning consolidated EBITDA, increased by 87.7% year-on-year to 49.2 crores with an EBITDA margin of 12.2%. Profit after the tax increased by 96.1% year-on-year to 35.7 crores with a fat margin of 8.9%. For H1 FY27, consolidated EBITDA stood at 2p's 81.2 crores, registering a growth of 46.7%, while profit after tax stood at 58.6 crores, representing a growth of 49.7% on a year-on-year basis. This performance demonstrates our ability to deliver profitable growth while continuing to invest in our manufacturing capabilities and capacities. Moving to our operational developments, we are pleased to share the commercial production at Unit 5 of our company commenced during this quarter, strengthening our dies manufacturing capacity by approximately 6,000 metric tons per annum. This is an important milestone in our capacity expansion, roadmap, and new support to our efforts to cater to growing customer requirements. Additionally, our 10-megawatt DC solar project at Nandir Maharashtra commenced operation during this quarter. With the addition, the company's total installed solar capacity on a conservative basis has increased to 20.6 megawatt on DC basis. The development further strengthens our focus on renewable energy and sustainable manufacturing practices. Alongside these developments, the expansion of Madhya Bharat Phosphorus Private Limited, our wholly owned subsidiary at Lake Nagar, Jabu and Madhya Pradesh, continued to progress as planned. The initiatives remain an important part of our long-term strategy to expand our manufacturing footprints, enhancing integration and improve operational efficiencies. As on date, as on 30th of September, the company has invested Rs. 92 crore in the capex ongoing project, which has been totally funded by the internal accruals of the company. In lines with our growth strategy, the board has also approved a capital expenditure of Rs. 70 crore for establishing a new chemical plant at Unit 5, Lote Parfuran, with a capacity of addition of 3,000 mt per annum. The project is expected to be commissioned by March 2028 and is aimed at catering to the growth demand for our customers. The proposed investment will be funded through a combination of internal approval and a preferential issue of fully convertible warrant to the promoter subject to the requisite shareholder and other applicable approvals. In regards, the Board has approved issuance of 8,54,060 fully convertible warrants to Mr. Fulip Ropikishan Makharia, promoter and chairman managing director of the company, at an issue price of 526.90 per warrant, aggregating up to 45 crores. This proposed fundraising is intended to support the company's expansion plan and reflects the promoter's continued commitment towards the company's long-term growth objective. Overall, Q2 and HF-127 has been encouraging for Sherry Pushkar Chemicals with a strong growth in revenue and profitability, commencement of commercial production at Unit 5, the addition of renewable energy capacity, and continued progress on our expansion initiatives. Our focus for the remainder of 2021 will remain be on strengthening our chemical and fertilizer business, improving operational efficiencies, maintaining financial discipline, and executing our ongoing planned capacities addition in a measured and disciplined manner. We remain committed to building a larger, more integrated, and sustainable manufacturing platform while creating long-term value for our shareholders. With what I now will hand over the call to Mr. Deepak to take you through the detailed financial and operational performance for the quarter and half year. Over to you, Deepak.

Speaker 1

Thank you, sir.

Deepak Berriwaga, CFO

Good afternoon, everyone, and thank you for joining us today. I will now take you through the financial and operational performance of the C2C chemicals on fertilizers limited for Q2 and H1 FY27. We started with the consolidated offline revenue from operations for Q2FY27 to date Rs.403.5 crores registered a year-on growth of 58% and sequential growth of 44% compared with the 280 crores in Q1FY27. For the first half of FY27, revenue from operation stood at 683 crores, representing growth of 34% over Rs.509 crores in H1 FY26. Coming to the segment performance, the chemical business recorded sales volume of Rs.245 crores during Q2 FY27, resisting growth of 85% year-on-year for FY27. And self-revalued stood at UPS 383 crores representing growth of 53%. The fertilizer business recorded sales value of rupees 158 crore during the quarter registering growth of 27% year on year 4. For H1FY27, sales value stood at Rs.300 crores representing growth of 15%. In terms of sales volume, the chemical business recorded 14,340 metric tons while the fertilizer business recorded 80,000 metric tons during Q2FY27. The total consolidated sales volume stood at 93,500 metric tons representing growth of 4.3% year-on-year. For FY27, the chemical business recorded sales volume of 23,500 metric tons, while the fertilizer business recorded 145,000 metric tons. Moving to the probability, the company delivered a strong improvement in earnings during the quarter. Gross profit stood at Rs. 120 crore, resisting a growth of 42 crore year-on-year with a gross margin of 30%. Ebitda increased by 88% year-on-year to Rs. 50 crore with an EBITDA margin of 12.2% compared with the 26 crore and a margin of 10% in Q2 FY26. Profit report tax increased by 97% year-on-year to Rs.43 crores, while profit after tax increased by 97% to Rs.35 crores, transferred into the paid margin of 8.9%. On a sequential basis, EBITDA increased by 55% compared with the Q1 F1.27, while the paid increased by 56%, resulting in reflecting the strong operating performance during the quarter. For the first half of FY27 gross profit is to date Rs. 210 crore, resisting growth of 25% year-on-year, EBITDA increased by 47% to Rs. 81 crore, while profit before tax increased by 49% to Rs. 71 crore, profit after tax increased by 50% to Rs. 59 crore, the EBITDA margin for FY27 is to date 12% compared with the 11% in the corresponding period of the Previous year, while the paid margin improved to 8.6% from 7.7%. From a liquidity perspective, the company continues to maintain a comfortable financial position with an only deposit of 142 crore as of 30 September 2026. This provides the financial flexibility to the support of our ongoing capital expenditure program and planned investments. Overall, Q2 and S1 5.27 reflect a strong financial performance with a significant growth in the revenue. EBITDA and profitability. Going forward, our focus will remain on maintaining financial discipline, managing cost, work capital efficiency, and deploying capital prudences towards our ongoing and planned expansion initiatives. With that, I conclude my remarks and hand the call back to the moderator of Qson and Answers session. Thank you.

Speaker 1

Thank you, Deepak.

Operator

Thank you. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset 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 Rona Pachapai from Wealthmine Adversary Service. Please go ahead.

Rona Pachapai, Analyst — Wealth Mine Advisory Services, LLP

Hello, sir. First of all, congratulations on such a strong set of results. I actually wanted to understand in Q1, our volumes declined, but our realization increased. And in Q2, we have done 43% Qoq growth, and we also improved our margin by 100 basis points. So, what is the reason for that? Is it realization only or combination of both volume and realization? And also, what is the impact on volumes currently? And are we seeing any impact going further in terms of the global conflict?

Puneet Makharia, Chairman

Mr. Vajpayee, first of all, thank you. I would like to address this question in a manner that, you know, basically it's a mixture of the volumes as well as the margins. First of all, as far as the chemical space is concerned, you know, the margins have improved mainly because of the China concept. In China, there is a huge shortage going on in terms of the Dyson intermediate, you know, this mediates mainly because of the various compliances in terms of the environment and safety norms into the China. So first of all, the margins have improved because of the good demand from, you know, this China in all these products. Secondly, being this was the, you know, this Kharif season's peak was in this particular quarter. So mainly because of this also, the company has been able to build a better volume. So it is a mixture of volumes as well as the market realisation, this rising also. And going forward, I see that, you know, being this quarter three, mainly because of the bit poor season in terms of the fertilizers may remain bit subdued. But as an overall, you know, this entire annual performance, I believe whatever we have said and, you know, given a visibility of this year performance, we'll be able to achieve so. In my opinion, if you ask me, we should be able to achieve at least 1,250 crores of the total sales, and profitability should be in three digits. This is my visibility.

Rona Pachapai, Analyst — Wealth Mine Advisory Services, LLP

Okay, sir. Understood. Sir, so far, we have done 683 crore for H1. So, can we consider 1250 as a conservative approach from the management type?

Puneet Makharia, Chairman

Obviously, it should be always a conservative approach in my opinion.

Rona Pachapai, Analyst — Wealth Mine Advisory Services, LLP

Okay, sir. Understood. Also, sir, what is the update on the unit 5 and unit 6? It was, I think, supposed to be commercialized by end of H1. So, any updates on that and what kind of utilization are you starting to do?

Puneet Makharia, Chairman

Unit 5, we have already announced the commercial production. As far as Unit 6 is concerned, probably by the end of this month or maybe latest by next month, you will be hearing from us the commercial, you know, update on this, announcing the trial production of Unit 6 also. Unit 6 is completely ready. We are in the process of, you know, disimporting the raw materials. We believe to start the trial by the end of this month, post Diwali. So we'll be making an announcement somewhere by the end of this month or maybe December. But we are not targeting any kind of a sales volume because being it's a new plant, it will be taking some more time to make the trial successful and come into a commercial production. But I guess next year we'll be able to achieve the required productions and other parameters as per as Unit 6 is concerned.

Rona Pachapai, Analyst — Wealth Mine Advisory Services, LLP

Okay, so understood. Also, for my final question was the KPEX that we are planning currently, and so what is the peak potential revenue from that in terms of optimal utilization, and what are we targeting like the additional valuation, like value addition from those KPEX?

Puneet Makharia, Chairman

You are talking about Unix-6 KPEX or Madhya Bharat KPEX or the KPEX which is recently board announced.

Rona Pachapai, Analyst — Wealth Mine Advisory Services, LLP

Combined KPEX. Combined KPEX that we are doing till in say long term, 3-4 years or whatever the timeline that we have, so what is the peak potential revenue from that?

Puneet Makharia, Chairman

Sir, in my opinion, if you... See, first of all, whatever statement I am giving, it's my personal opinion. Please do not look it as a forward statement. So, first of all, let me give this disclaimer to you. And in my opinion, we should be doing from this current fold, we have a potential growth of close to... Almost three times, or maybe a little bit lower than this, somewhere around two and a half to three times than in today's level, once we complete all these capexons.

Rona Pachapai, Analyst — Wealth Mine Advisory Services, LLP

Okay, sir. Understood. That is it from my side. Thank you so much, and all the rest of the moment.

Puneet Makharia, Chairman

Thank you very much, Mr. Varsha.

Operator

Thank you, sir. The next question is from the line of Dikshan from TB Wealth. Please go ahead.

Dikshan, Analyst — TB Wealth

Hi, congratulations, management, on the good numbers. So, my first question is, we have been opportunistic on the whole H-asset play that we saw in China. So, I want to first ask that, how has the quarter panned out for us? Because the numbers look good on the sales side this quarter. So, out of 245 followers, how much of percentage has been on the abortionistic side? This may be HIV plus something else also. And so going forward, we have a sort of L-Eno effect. For the fertilizer segment or for this, how are we looking for the H2 of this particular year? Do you think that's going to be a little bit more subdued than the last year that we have seen? And thirdly, if you could give me some sort of clarity on what kind of EBITDA margin and PACT margin that we can see for this particular year, is this the best margin that we have seen in Q2, or can we improve further from here in the next two quarters? Thank you so much.

Puneet Makharia, Chairman

Thank you, Mr. Dishant. If I take your three questions one by one, your first question was about the H-acid and rising of the K-acid and some other intermediates, that was your question. First of all, Mr. Dishant, let me address you my thought process that we believe in a long-term, stable and sustainable business model. Right. And if, you know, these kind of unsustainability in terms of the pricing and whatever these price hiccups are there as on today's date, these are not going to be forever. You got my point.

Ridesh Ram Gandhi, Analyst — Discovery Capital

So this volatility

Puneet Makharia, Chairman

could last for a few weeks or a few months, but not for a longer term. So, if you ask me, I don't believe in this volatility, let me tell you, because I personally believe in a stable and a sustainable business model, and we need to see the company's performance, the company's, you know, sustainability issue in running a long-term business proposal. So, whatever this pricing hike is there in terms of the H-acid or vinyl sulfone is not a major concern for me and that is not a driving, major driving factor for this. Now, coming to your second question of this concept, yes, definitely there is a situation of, you know, poor rains and drought issue like in Maharashtra and certain parts of the Madhya Pradesh. But because of the, you know, availability of the fertilizer into the area, we have been able to sell around 76,000 tons of fertilizer during this quarter, which is definitely a good sale. And as I said, that in quarter three, there could be a bit, you know, subdued with this performance in terms of the fertilizer. But overall, if you combine chemical and fertilizer together, in my opinion, that is going to be a good quarter three season also. Now, coming to your third question about the EBITDA levels and PAT levels, I believe the company has already attained EBITDA levels of 12.0, you know, some dispercentage, and close to 9% of the PAT level. Mr. Dishant, in my opinion, the company has the potential of reaching better than this in terms of the EBITDA level as well as the PAT levels, and there is definitely a scope of improving around. Minimum 15 to 20% in these existing, you know, this improvement of 15 to 20% from the existing levels. Any other question, Mr. Dishant?

Dikshan, Analyst — TB Wealth

So, sir, just to follow up here, firstly, thank you, like, quite clear. Sir, the commodity prices of chemicals that we are seeing right now, of course, it's not sustainable, but it is also seeming to be the factor, and I am looking at it from an outsider. We are looking at the shutdown and the demand levels at these prices can stay here for maybe a few more months to maybe a few weeks. Do you agree with this? And do you think that this opportunity that we are seeing, how are we able to get the most out of it? I understand it's not sustainable at these prices, but this is an opportunity factor for us. So how are we looking at this opportunity? And secondly, sir, 15 to 20% improvement, does that mean that we can see around, let's say, 250 basis points on the EBITDA margin and maybe another 150 basis point on the net tax margins for this year?

Puneet Makharia, Chairman

Yeah, obviously. I don't say this year. Please don't misunderstand me. Please don't misread me. I don't say this year. I said with this company, this industry has a potential of doing so. I never said that within this year we have this potential. Okay, okay. Yeah, so let us be very straight and clear. And now as far as the pricing of chemicals and other essential products are concerned, Mr. Dishant, you know, chemical is a huge field. You know, I believe if I learn about my own products, that's more important. But yes, I think so, this may continue for maybe few weeks, few days, few months, but it is difficult to comment on that. It will be, you know, I am not a speculative businessman, you know, I speculate or something like that. We are traditionally, you know, these industrialist guys who believe in their speculation, first of all. So let's see how it behaves and, you know, this all basically depends on the demand and supply situations.

Dikshan, Analyst — TB Wealth

So, you think that this year particularly we can have better margin, sir?

Puneet Makharia, Chairman

Obviously, the company has already performed till H1 also, better margin than the company compared to the last year.

Dikshan, Analyst — TB Wealth

Got it. Thank you so much for the clarity, sir. Wish you the best.

Operator

Thank you. Thank you. The next question is from the line of Preet Nagarshit from Wealthfinvisor. Please go ahead.

Preet Nagarshit, Analyst — Wealth Finvisor

Yes, thank you. Umidji and team, fantastic numbers, great execution. Thank you, sir. Sir, question, fertilizer to janaat na thoda. We did close to 80,000 metric tons for quarter two. And first half, we did say close to about 145,000. Now, given the second half is going to be subjudiced because of ruby crop and lack of rainfall. Approximately, how much is it possible to do this?

Puneet Makharia, Chairman

Sir, see, we have a battery in the last year, please.

Preet Nagarshit, Analyst — Wealth Finvisor

Okay, so in the last second of the year, we have a battery in the last year.

Puneet Makharia, Chairman

We have a battery in the last year. Now, see, in the last year, we had 148,000 in the last year.

Dr. Varun Sharma, Analyst — Korpal Investment

Correct.

Puneet Makharia, Chairman

In the last year, we had 145,000 in the last year. 1-1.5% का फरक है. And, sir, a lot of things will impact, but, you know, we will be trying for achieving better than what we did in the last year. And, sir, I will tell you that a lot of things will come, because, you know, right now the subsidy has not even been declared by the central government. Yeah, which is again expected to be on 5th of this month, though it should have been done, you know, by the end of October or, sorry, by the end of September. But yes, definitely, you know, we are trying our level best to, you know, do the best whatever we can as depending on our capability and capacity. But, you know, but yes, we are trying to do it best.

Preet Nagarshit, Analyst — Wealth Finvisor

Right. Sir, this is a question that you might say that it will probably be subdued.

Puneet Makharia, Chairman

Sir, I have a personal feeling that in quarter 3, which is the fertilizer, will be subdued. Right, right, right, right, right.

Preet Nagarshit, Analyst — Wealth Finvisor

Given this, okay. Okay, besides the chemical segment, we had 14,000-odd tons volume in quarter 2. So, we have capacity to have more. So, given this demand, given this realization, in quarter 3, can we see a increase in volume in the chemical segment?

Puneet Makharia, Chairman

Sir, in Q1, FI 27, we did a volume of 9,000 tons. Q2, FY27, we did a volume of 14,000 tons. I believe Q3 में ये थोड़ा बैटरी रही रहा इसके अंदर सा. जो मुझे भी दिखाई दे रहा है, and being this China factor also, this would be better than Q2 also. Right, sir. Sorry, sir.

Preet Nagarshit, Analyst — Wealth Finvisor

Sir, another question was, this is 70 crore unit 5. This is the 13,000 metric ton. Do you have any top line?

Puneet Makharia, Chairman

If I take this, if I take this, 70 percent of this, then you can understand. Thank you, everyone, and welcome to the call.

Preet Nagarshit, Analyst — Wealth Finvisor

Yeah, yeah, yeah, yeah. On 75% utilization.

Operator

Yeah.

Preet Nagarshit, Analyst — Wealth Finvisor

So, are we adding the assets?

Puneet Makharia, Chairman

Sir, I won't discuss on the product queue. I'm sorry. What we are going to produce, what is the product, what is the chemistry of the product, what is the market potential of the product, what is the name of the product, I will not like to discuss, you know, on this, sir.

Preet Nagarshit, Analyst — Wealth Finvisor

So, please, sir, is it a new product or existing capacity product?

Puneet Makharia, Chairman

Sir, if you don't ask me, it will be better. Whenever you will be visiting personally to my office, we will discuss in details about this. Okay, sir. I'm sorry about, you know, not replying to this your question.

Ridesh Ram Gandhi, Analyst — Discovery Capital

Not at all, so, no worries.

Puneet Makharia, Chairman

We will try to achieve the best of the opportunities, you know. But then, too, also, when we talk about all these things, in my opinion, we should behave conservative. Now, if you remember, in the previous calls, we have always given a visibility of around 1250 crore. In which we had taken a few months of unit 6 production. Thank you. As far as unit 6 is concerned, I personally, in my back of the mind, I have considered that unit 6 may not generate any revenue for me in the quarter 4. But this doesn't mean that we will not generate in quarter 4. Definitely, we will generate. But as a sense of the conservativeness, I personally believe and say, I communicate to my investors also, that unit 6 will not Thank you.

Preet Nagarshit, Analyst — Wealth Finvisor

Thank you, sir. Thank you, sir, and wish you all the best.

Puneet Makharia, Chairman

Thank you, sir. Thank you.

Operator

Thank you. The next question is from the line of Arshil Solanki from Equitrix Capital. Please go ahead.

Arshil Solanki, Analyst — Equitri Capital

Good afternoon, Puneet Ji.

Puneet Makharia, Chairman

Good afternoon, Arshil Ji.

Arshil Solanki, Analyst — Equitri Capital

Sir, a question was, in Unit 5, we had 6,000 tons for the first time, and we had 37 crore spent, but we had 3,000 tons for the first time, so we had 70 crore spent.

Puneet Makharia, Chairman

The product is in English.

Arshil Solanki, Analyst — Equitri Capital

Yes, sir. Okay, I will know that you have to discuss it.

Puneet Makharia, Chairman

No, no, no, sir. You say that you have to have 5,000 perifit and you have to have 5,000 perifit and you have to have 5,000 perifit.

Operator

Product is different.

Puneet Makharia, Chairman

Chemistry is different.

Arshil Solanki, Analyst — Equitri Capital

That's why you have to have machinery. Land is just available. Well, it's an understanding, right?

Puneet Makharia, Chairman

Sir, as I have land, we already have, but it's a different chemistry altogether. What we did in 37 crores, that was a capex of the dyes plant. This is not relating to the dyes production. This product is something else. So, it depends on aap kya chemistry karrayo, kya, you know, capex. Things differ with that, sir.

Arshil Solanki, Analyst — Equitri Capital

Sir, I'll take this offline since you don't want to talk much on this.

Puneet Makharia, Chairman

Thank you for understanding this video.

Arshil Solanki, Analyst — Equitri Capital

No problem. Sir, receivables are a little higher side. And historically, we've seen that you've managed your cash flows. So at this time, you'll be able to tell you something about receivables.

Puneet Makharia, Chairman

Sir, it's the same as the price of the price of the price of the price of the price. If you are buying the price of the price of the price, then the price will be sold in the price of the price of the price. However, the price of the price was sold in 100 rupees, the price of the price is sold in 105, 103, 104, 110 rupees. So, it's not a problem. We have reviewed our receivables. Everything is perfectly well and safe. If we are completely compliant in terms of our business strategies and receivables, so that's not the issue.

Arshil Solanki, Analyst — Equitri Capital

Okay, sir, last question was about gross margins. If you can see that gross margins are lower, then you can't understand the reason behind it, because your realizations are growing.

Puneet Makharia, Chairman

I think Deepak, our CFO would be able to address this financial question better than me. I will give this line to Mr. Deepak, can you please address this question?

Deepak Berriwaga, CFO

Thank you.

Arshil Solanki, Analyst — Equitri Capital

But sir, inventory loss, do you want to say this?

Deepak Berriwaga, CFO

Loss is not, it's lower, the level is lower, inventory. Like in March, you see, it's controlled. It's 1-2 percent, you see, it's 32 percent, and 33 percent, so gross margin is less.

Arshil Solanki, Analyst — Equitri Capital

Okay, but I mean, I mean, I mean, I mean, the raw materials are growing, the realization is growing. So, what is the driver's inventory of what you can do?

Deepak Berriwaga, CFO

Thank you very much for your financial opportunity.

Puneet Makharia, Chairman

Harsher Ji, for this particular question, you can talk to Mr. Deepak separately. And, you know, you can discuss in details with him. Can you reply him now? Can you tell me now? Okay. Harsher Ji, you can talk to Mr. Deepak separately.

Arshil Solanki, Analyst — Equitri Capital

Sure, sir. No, sir. Sorry, it was a nice thing. Good morning, everyone, and welcome to the call. Now, you've got a little bit of purchase hold. So, what do you feel like? Is it normal? Do you have to come back to purchase or wait-and-watch mode?

Puneet Makharia, Chairman

No, sir, you know, business is coming back and as in how the stability is approaching, you know, to the business, you know, the business is also coming back to the normalcy, which is already approved from the results what we did in quarter two.

Arshil Solanki, Analyst — Equitri Capital

The next quarter is a unit 5 to additional volumes, 1500 ton per quarter, so that's what we need to do.

Puneet Makharia, Chairman

Yeah, we can see how much business is generated, but you know, I don't have a lot of opportunity to see how much the plant has started. But overall, if you look at the global demand today, it depends on our marketing team, how much new business is generated. It depends on that.

Arshil Solanki, Analyst — Equitri Capital

Okay. Sir, a little bit. We had the production of the asset purposefully because the working capital was much more than the working capital.

Puneet Makharia, Chairman

Working capital was not much more than the working capital. It was not the question of the working capital. It was the question that sulfur was at a very high price, and whereas the sulfuric acid, because of the high price, the sulfuric acid was not being able to get in those grapes. We have run our plant on a lower level, and let me tell you, still we are running our plants on lower levels in terms of the acid complex.

Arshil Solanki, Analyst — Equitri Capital

Thank you so much for answering it.

Operator

Thank you. A reminder to all participants that you may put a star and want to ask question. The next question is from the line of Ritesh Ram Gandhi from Discover Capital. Please go ahead.

Ridesh Ram Gandhi, Analyst — Discovery Capital

Hi, sir. Sorry, I joined slightly late, so I wasn't sure if it's been covered. But just want to understand, in these numbers, is there any cyclical highs? Because obviously, H asset prices are obviously extremely high. There's also a lot of movement around RM prices, so, you know, whether there are inventory gains, losses, etc. So, how should we actually look at these quarter numbers?

Puneet Makharia, Chairman

Let me be very straight to you. Don't look at the, see you are an investor, right? And as far as the HSA pricing is concerned, nowadays everybody is talking to me about HSA, HSA, HSA, and let me tell you most of the people even doesn't know that whether this product is in a form of a liquid or this product is in a form of a solid. I hope you understood what I am trying to tell you. So, this HSA chemistry, its price, purity, you know, is something like this. You know, I am talking to you from the bottom of my heart. You know, I have two ways to answer you. A, I talk to you something very big, which I don't do. Secondly, I talk to you practical. These HSA pricing is practically non-sustainable. You got my point. So, I don't look at the pricing of HSA. As I replied my earlier question answers also, that this is a very timing, a very short life lived as far as the HSA pricing is concerned. This is again going to go back to its original levels. This is just a, you know, this time is a factor. But definitely, we have gained some revenue, some profitability for this also. But definitely, we also have our old commitments also, which we have to always fulfill. So, let us see how it carries on in the future.

Ridesh Ram Gandhi, Analyst — Discovery Capital

But, so how much of an impact compared to, let's say, a normal... I understand. All right, sir.

Puneet Makharia, Chairman

Thank you.

Ridesh Ram Gandhi, Analyst — Discovery Capital

It's okay.

Puneet Makharia, Chairman

Thank you.

Operator

The next question is from the line of Dr. Varun Sharma from Korpal Investment. Please go ahead.

Dr. Varun Sharma, Analyst — Korpal Investment

Hello, am I audible, sir? Yes, sir. Congratulations, sir, for the great setup number. My first question is, what was the reason for the withdrawal of merger of Kisan and Maseh Faris?

Puneet Makharia, Chairman

Sir, that was getting too delayed by NCLT, and then we realized later on that the reason why we were doing so was not getting served upon because of the delay, this decision by NCLT. So, as I consciously, we took a decision to withdraw the application.

Dr. Varun Sharma, Analyst — Korpal Investment

Thank you very much. From next year, I hope the United States will be in fully operation and we will get the revenue. Can you guide for the revenue for the next year, sir? As this year, you have already guided to 1,250 to 3,500 crores, sir.

Puneet Makharia, Chairman

Sir, if I talk about next year, like 27-28, in my opinion, we should be, we should be somewhere closer to... You know, near around 2000 crores, maybe 10% variation could be also there. So let's see what, you know, where we reach next year. But yes, I think it should be around, yeah, 2000 crores. Okay, sir.

Dr. Varun Sharma, Analyst — Korpal Investment

And can we expect that in the next two quarters, we should expect a revenue of almost 300 crores per quarter for the next two quarters as you are guiding for 1250 crores.

Puneet Makharia, Chairman

Are you talking about 300 crores this quarter?

Dr. Varun Sharma, Analyst — Korpal Investment

Yes, yes, yes. For the three and four to four. Yes, sir.

Puneet Makharia, Chairman

I am also hopeful of doing so.

Dr. Varun Sharma, Analyst — Korpal Investment

Good morning, everyone, and welcome to the call.

Puneet Makharia, Chairman

Yeah, yeah, maybe better than this.

Dr. Varun Sharma, Analyst — Korpal Investment

Because this quarter was 400 Krold, na?

Puneet Makharia, Chairman

Yeah, so I don't have to say anything about this.

Dr. Varun Sharma, Analyst — Korpal Investment

And my last question is, was there any inventory gain due to H asset, as the sulfur prices were already high, you told in the last call, sir?

Puneet Makharia, Chairman

Sulfur to list ya na chaloo ho gaya, bhaiya.

Dr. Varun Sharma, Analyst — Korpal Investment

I think there's no inventory gain, sir.

Puneet Makharia, Chairman

No, I don't think we have any such kind of a giving. Okay, sir. Thank you, sir.

Dr. Varun Sharma, Analyst — Korpal Investment

And that's enough for the future, sir.

Puneet Makharia, Chairman

Thank you.

Operator

Thank you. A reminder to all participants that you may press star and want to ask question.

Operator

A reminder to all participants that you may press star and want to ask question.

Operator

The next question is from the line of Romit Nakpal from Terra Police. Please go ahead.

Romit Nakpal, Analyst — Terra Police

Congratulations, Sunitji, on a great set of numbers. I believe... I believe there is some amount of a preferential issue of 2025 where the balance, promoter, equity, money of the warrants has to be brought in. Any idea when can we expect that money to come into the company?

Puneet Makharia, Chairman

Sir, maybe before the end of this financial year. End of this financial year. It is until June 27th time. Yes, that is. But we are planning to get it to company by March 2027. Because, just like Madhya Bharat's work is running a lot in speed, a 92 crore company has already put into its internal accruals, and there is also a portion of the warranty. So, now we are going to need the money. So, probably we will be getting it before March 2027.

Romit Nakpal, Analyst — Terra Police

I have joined the call late, so just wanted to check the high profits which are generated in this quarter are primarily because of the die-die-stuff prices.

Puneet Makharia, Chairman

Good morning, everyone, and welcome to the call.

Romit Nakpal, Analyst — Terra Police

No, no, I don't want a quantum to be specified. That is better. It stays with you only. I would only want to know about perspective ki next few quarters. Can we expect that at least for this year, we continue to see these higher prices and tight, high stuff?

Puneet Makharia, Chairman

Sir, I hope I will go to Diwali.

Romit Nakpal, Analyst — Terra Police

I was actually coming. No, no, you are right. I was just coming because earlier China had put a lot of pressure on because of environmental on various factories related to dye dye stuff. And is that creating a bit of a supply gap, which is allowing prices to move up?

Puneet Makharia, Chairman

Thank you. You know, people also anchor into that, and that is not long-lasting for a time. You know, for this longer time. Now, sir, every day, every day, every day, it's better. I don't think it's all about it. But yes, I feel like it's just like November started, so quarter three will be good, as I hope I do.

Romit Nakpal, Analyst — Terra Police

Anyway, thank you. Congratulations once again.

Puneet Makharia, Chairman

Thank you, sir. Thank you. Thank you, Ramiche.

Romit Nakpal, Analyst — Terra Police

Thank you.

Operator

The next question is from the line of Preet Nakarshik from Wealth Pinvisor. Please go ahead.

Preet Nagarshit, Analyst — Wealth Finvisor

Puneek Ji, you have asked a question in front of the participant, that you think next year will probably be able to reach 2,000 crores. So, I have to understand a little bit that you have to know, and you have to be conservative, so how do you reach this year? Because if you have to reach this year, we will also be able to reach 1,200-1,300 gold. And unit 6, we'll understand next year, so we'll get more than 300 crore. Why, sir, you'll get more than 300 crore? Why, sir, you'll get more than 70%?

Puneet Makharia, Chairman

Sir, it's a 1.5 lakh ton plant, you'll get 70% and you'll get a lakh ton. Right, sir. It's got 50 rupees. No, sir, it's got 70 rupees. Good morning, everyone.

Preet Nagarshit, Analyst — Wealth Finvisor

Oh, oh, oh. Oh, oh, so, so. Got it.

Puneet Makharia, Chairman

Got it, got it.

Preet Nagarshit, Analyst — Wealth Finvisor

Got it. Got it.

Puneet Makharia, Chairman

Sir, first, not one second. You can't get the $2000 that you can't put. I've got the right answer. You can understand. You can calculate 10% of depression in your hand. Right, sir. You keep buying 18aps of you.

Arshil Solanki, Analyst — Equitri Capital

I understand, sir.

Preet Nagarshit, Analyst — Wealth Finvisor

I don't want to do a match for 1,000,000,000, so I understand, sir. Thank you, sir.

Operator

A reminder to all participants that you can press star and want to ask questions.

Operator

As there are no further questions from the participants, I would now like to hand the conference over to the management for the closing comments.

Puneet Makharia, Chairman

Thank you everyone for joining Sri Pushkar Chemicals and Fertilizers Q2 and H1 FY27 on the call. If you have any further questions, please feel free to connect with our account department and secretary team. We will be happy to address your queries. Thank you and have a great day and wish you all a very happy Diwali and a coming forthcoming new prosperous year. Thanks everybody. Thank you very much.

Operator

Thank you, sir. On behalf of Fishery, Pruskar, Chemical, and Fertilizer Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.

Dikshan, Analyst — TB Wealth

Thank you. Thank you, Julius.