Sigachi Industries Limited (SIGACHI) Q2 2027 Earnings Call Transcript

Good evening, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to Sigachi Industries Limited Q2 and H1 FY27 Earnings Conference Call hosted by Go India Advisors. As a reminder, all participants will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, please signal an operator by pressing star then zero on your touch -tone telephone. Please note, this conference is being recorded. I would now like to hand over the floor to Mr. Aadith from Go India Advisors. Thank you, and over to you, sir.

Aadith V:

Thank you, Akash. Good afternoon, everyone. It is my pleasure to welcome you on behalf of Sigachi Industries Limited. Thank you for joining us today for Q2 and H1 FY27 earnings call. We have on the call Mr. Amit Raj Sinha, Managing Director and Chief Executive Officer; Mr. O. S. Reddy, Chief Financial Officer; and Mr. Vivek Kumar, Company Secretary and Compliance Officer. Please note that today's call discussion may include certain forward-looking statements and must therefore be viewed in conjunction with the risks that the company faces. I would now like to hand it over to the management for the opening remarks. Thank you, and over to you, sir.

Amit Raj Sinha:

Thank you, Aadith. Good evening, everyone, and welcome to the Q2 FY27 earnings conference call of Sigachi Industries Limited. The financial results and the investor presentation have been uploaded on the stock exchanges. I hope everyone had the opportunity to review them. As we progress to FY27, our focus remains on translating our strategic priorities into measurable business outcomes. We continue to strengthen our core excipient business while advancing capacity expansion, broadening our product portfolio and business capabilities across API, O&M, and Food and Nutrition. Across these businesses, our emphasis remains on disciplined execution, operational efficiency, and profitable growth, supported by clear focus on customer requirements, innovation, and long-term value creation. 12,000 metric tonne-per-annum of MCC expansion of Dahej SEZ is expected to be commissioned in Q2 FY28, taking a total MCC capacity to approximately 30,000 metric ton-per-annum. Our growth agenda is further supported by the CCS facility at Dahej, with commercialization also expected in Q2 FY28. Together, these projects will strengthen our manufacturing capabilities and position us to address a wider range of customer requirements.

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Sigachi Industries Limited October 31, 2026 On the innovation front, we further strengthen our PureCoat coating portfolio with the launch of four new offerings: PureCoat Flavor for odor masking, PureCoat TiO2 Free, PureCoat Pearl featuring natural silicate or silica-based pigments with iron oxide, and PureCoat NP, developed using natural polymer like pullulan as an alternative to synthetic polymers. These additions reflect our focus on developing coating solutions that address evolving customer requirements and expand formulation possibilities across the pharmaceutical industry. Our API business continues to progress towards building a broader portfolio and strengthening its regulatory readiness, while our O&M vertical remains an important contributor to the business diversification. Alongside growth, we remain focused on improving operational efficiency, cost discipline, quality, safety, and governance across our facilities. We believe that sustainable growth must be supported by strong execution, responsible capital allocation, and consistent attention to operational performance. To our employees, customers, partners, lenders, and shareholders, thank you for your continued trust and support. We remain committed to translating our strategic priorities into sustainable business performance and long-term value creation. With that, I now invite our CFO, Mr. O. S. Reddy, to take you through the financials and operational highlights for Q2 FY27. Thank you. O. Subbarami Reddy:

Thank you, sir, and good evening, everyone. During Q2 FY27, Sigachi reported total operating income of INR 130.45 crores. EBITDA for the quarter stood at INR 19.2 crores, with a margin of 14.72%. Net profit came in at INR 8.78 crores translating to a profit margin of 6.82%. The MCC segment contributed INR 91.22 crores, while the O&M and API segments recorded revenues of INR 13.93 crores and INR 16.67 crores respectively. That concludes

my

updates.

We

can

now

open

the

floor

for

questions,

please.

Thank you. Moderator:

Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. The first question comes from the line of Mr. Darshil Jhaveri from Crown Capital. Please go ahead, sir.

Darshil Jhaveri:

Hello. Thank you so much, sir. Good evening, sir. Firstly, congratulations on a good set of numbers, sir. Sir, I just wanted to know that we had given the guidance of INR 650 crores and 18% EBITDA for the full year. Are we sticking by it because the H1 EBITDA, it looks a bit on the higher side, sir? What are your thoughts about that, sir?

O. Subbarami Reddy:

Thank you, Darshan. This year, first half year, we have reached around INR 250-plus crores of turnover and in the second half, we have planned for increasing capacities in the existing capacities itself. And also, there is a further business which gives top-line and bottom-line growth as well.

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Sigachi Industries Limited October 31, 2026 For the Second half, in the beginning also, we expected better margins and better top lines. But, of course, out of INR 650 crores top line, a little drop would be there because earlier, in the beginning, we thought our new project MCC 12,000 metric tons capacity will come a little early, but some deferment would be there. Now, more or less, around INR 600 or so we can reach. In this, there would be a little slip. Darshil Jhaveri:

Fair enough, sir. But with regards to margins, can we do 18%? I'm assuming will be a bit difficult for the full year, but in the H2, can we do 18% at least in terms of margin? How do you see the environment right now?

O. Subbarami Reddy:

Yes. We are expecting because in the second half, there will not be further increase in fixed overhead costs. There will be increase in revenue, and the margins also will be on higher side. And sales mix also is going to change. The co-processed variants and then special grades will be on higher side in the next six months. That is the reason margins will increase, so that in the next half year, at least we can get improved margins. As of now, around 15% is there, but definitely there is an increase in second half considering the fixed expenses, fixed overheads, and the margins from the specialgrade and co-processed grades.

Darshil Jhaveri:

Fair enough. Just last question from my end. Just looking at all this capacity, I get it a bit delayed. So, for next year, what will be our target in terms of revenue and margin, if you could help us with that, sir?

O. Subbarami Reddy:

Next year, this 12,000 metric tons capacity is expected in Q2 end. Maybe one or two months here and there would be there. After that, 12,000 metric tons into INR 250, 12,000 into 90%, its operational also around 10,800 metric tons into INR 225, if you take both, there is almost more than INR 200 crores top line will come, INR 243 crores.

Darshil Jhaveri:

INR 200 crores revenue, and this year INR 600 crores. Next time, we can easily cross INR 800 crores revenue.

O. Subbarami Reddy:

Yes, even more than that. Other businesses also will contribute. Around from this INR 243 is coming and other businesses also are there. Next year, it would be better.

Darshil Jhaveri:

I have more questions, I will join back in the queue. Thank you.

O. Subbarami Reddy:

Thanks, Darshan.

Moderator:

Thank you, sir. The next question comes from the line of Mr. Vansh Solanki from RSPN Ventures. Please go ahead, sir.

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Sigachi Industries Limited October 31, 2026 Vansh Solanki:

Hi. Good evening, Mr. Reddy. So, my question is again on the revenue, as the previous participants asked. And you also told that the INR 650 will be dropped to around INR 600 crores. But, as you just told us, INR 250 crores we have done in H1. It will need a 40% revenue increase in H2. So, will it be possible for us, like, directly 40% increase in H2?

O. Subbarami Reddy:

Yes, because we are expecting some better capacity utilization also from the existing plant also. There is an increase we are expecting in immediately another 15 days. And API also, there will be good growth API business and other segments also doing good O&M, and that is the reason now we are expecting good growth in second half.

Vansh Solanki:

Yeah. But API, In Q1, you gave a target of an INR 90-100 crores a year, and we are around INR 35-40 crores only in H1. So, we'll need an INR 30 crores per quarter in H2 to reach the INR 90 crore mark. So, what addition is coming that lead to this growth, because no plant is coming and nothing is there.

O. Subbarami Reddy:

Yes, Mr. Solanki. Only thing is, In Q2, the revenue has been deferred to the third quarter. That is the reason some of the customers they were requested to dispatch in third quarter. That is the reason. In the third and fourth quarter, we are expecting good revenues.

Vansh Solanki:

And you just told that the utilization will be increased. So, what's the capacity utilization for Q2?

O. Subbarami Reddy:

In the half year, there is almost 79.91%, around 80% in the Dahej unit , and the Jhagadia unit around 79%. Overall, nearly 80% utilization is there. Another 10% there will be increase from another 15 days, from 15th to 20th of November.

Moderator:

Thank you, sir. The next question comes from the line of Mr. Rupesh Tatiya from Long Equity Partners. Please go ahead, sir.

Rupesh Tatiya:

Hello, sir. Thank you for the opportunity and congratulations on decent margin performance. First question is, sir, what was the volume of MCC and allied products?

O. Subbarami Reddy:

Yeah. If you see the revenue contribution, 70% from MCC, and O&M is 11% and API 13%, other allied is around 7%. That is the percentage-wise. And then coming to the volume, it is almost about there is 7,128 metric tons of capacity we have produced and sold.

Rupesh Tatiya:

So, Q1, I think, was around 3,500. So, for this quarter, it looks like roughly 3,700 tons.

O. Subbarami Reddy:

Yes. More or less, it is a little higher than this Q1.

Rupesh Tatiya:

Yes. So, when do you expect to see, let's say that our capacity would b e 4,500 metric tons per quarter?

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Sigachi Industries Limited October 31, 2026 O. Subbarami Reddy:

By third quarter, it will reach. Another within 15 to 20 days, our capacities are going to increase by November 15th itself. And then in fourth quarter, it will be almost full, 4,500 will be reaching.

Rupesh Tatiya:

That is good to know. The second thing is, some other players in the industry reported very good margins, but our margin performance relatively is moderate. So, any reasons for that?

O. Subbarami Reddy:

Gradually, it is improving. Even the margins average price realization, if you see, in Q1 it is 241.36, and Q2, it is 262.83. And then an average for the entire H1, it is 252.16, whereas previous year, H1, it was 216.42. Because of the sales mix, the realizations are also going on higher side. And overall profitability because of the last year, the instant, but now it is settling down, and then every quarter there is an improvement. Compared to Q4, Q1 is better, and comparatively Q1, Q2 is better. And again, Q3 would be better and Q4 would be further better. Like that, QoQ, improvement would be there, efficiency increase in all levels.

Moderator:

Thank you. The next question comes from the line of Mr. Ankur Savariya. Please go ahead, sir.

Ankur Savariya:

Good evening, sir. What is the update on the reimbursement from the insurance company?

O. Subbarami Reddy:

Yes, Mr. Ankur. This reimbursement, this is going on recently also, they have asked for some further queries, and we have submitted, and we are expecting in this month. But before December, they indicated that there should be some discount, of some 5-10% which we are expected to receive. Now, everything is clear, and this scrap also that was auctioned by the insurance people. And now it is expected to receive by November or December. Before December, we hope we'll receive it. There were some uncertainty from the insurance company side also. All questions are answered. All required information was stated. Now it is clear. The surveyor and the insurance company discussions are going on.

Ankur Savariya:

What is the approximate amount that you are expecting?

O. Subbarami Reddy:

Total receivable is around INR 49 crores, but some discount they have indicated. Around 10% would be there, discount.

Ankur Savariya:

Now, since your preferential issue has been rejected, how does the company plan to raise money for the CapEx?

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Sigachi Industries Limited October 31, 2026 O. Subbarami Reddy:

CapEx, for right now, we have one internal accruals to start with, and also insurance we are expecting and also further we need to take an action on the raising of funds by way of debt or equity. But since that is canceled, maybe at appropriate time we will come with the disclosure.

Ankur Savariya:

So, preferential share is now out of picture, right?

O. Subbarami Reddy:

No, that's not ruled out. But anyway, right now, it's not wise to discuss on that part, but we will come up with an announcement.

Ankur Savariya:

Thanks a lot for answering my questions.

O. Subbarami Reddy:

Thanks, Ankur.

Moderator:

Thank you, sir. The next question comes from the line of Mr. Raghav from Quadrant. Please go ahead, sir.

Raghav:

Good evening, and thank you for giving me the opportunity to ask a question. Actually, my question was more on the fund raise side, like why were the funds not raised for the company, and what are our plans in the future? Are we going for a debt to fund our expansion plans?

O. Subbarami Reddy:

Yes, Mr. Raghav. Both the options are open, even debt as well as the equity. But as I said, at appropriate time after discussions, we'll come up with an announcement.

Raghav:

Is there any particular reason that the preferential allotment that was not done of INR 200 crores that the promoters were putting?

O. Subbarami Reddy:

Yes, after the issuance was decided, and after the board was decided and the information given to the exchanges, we received many calls from well-wishers and prospective investors, and they said that, “Why you are diluting so much at this price?” Means, INR 26.4 was the price as per the SEBI calculation. And then it was announced at that price, and was proposed to be issued. But later on, it sharply went up to almost INR 39, and we received many calls. We missed the opportunity, and then at this point of time, it's not wise to dilute at this rate. Then the promoters also thought, “okay”, they were the major beneficiaries out of that issue, even though they have discussed with the people, and then they have seen the best interest of the company

and

shareholders,

the issue was called off. Now we'll just see, sir, what can be done, what best can be done in the interest of the company. Raghav:

Thank you, sir.

O. Subbarami Reddy:

Thank you.

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Sigachi Industries Limited October 31, 2026 Moderator:

Thank you so much, sir. The next question comes from the line of Mr. Gaurav Kumar, an individual investor. Please go ahead, sir.

Gaurav Kumar:

Good evening, sir. Sir, currently, we have MCC segment as a major contributor for the revenue, right?

O. Subbarami Reddy:

Yes.

Gaurav Kumar:

In future, do we have any focus on other business segment also that can competitively become equal to MCC segment, or we can grow up in?

O. Subbarami Reddy:

Yes, sir. As of now, in the near future, MCC is the major contributor, and next to that, API also will increase. We can see improvement in API business. And also, this O&M, that is steadily growing almost 10-12% revenue contribution for the overall company.

Gaurav Kumar:

But going forward, MCC will be our major contributor, right?

O. Subbarami Reddy:

Yes, correct. That is our cash cow, and there we have good margins and top line. There is a good possibility for the growth, and of course, other segments are also there, but in this we have good possibilities for major growth.

Gaurav Kumar:

Thank you.

O. Subbarami Reddy:

Thanks, Gaurav.

Moderator:

Thank you so much, sir. We have a follow-up question from Mr. Darshil Jhaveri from Crown Capital. Please go ahead, sir.

Darshil Jhaveri:

Yeah, thank you so much for allowing me a follow-up question, sir. I just wanted to know, like, based on our realization and volume quick calculation, I think we can do roughly around INR 100-110 crores revenue in MCC in Q3, and then Q4 maybe a bit higher because of volume growth. So, even with that calculation or assuming API does INR 80 crores, I don't think we can reach INR 600. Is INR 550 a more realistic target? Because that's what our capacity constraint and realization is what the number I'm getting it.

O. Subbarami Reddy:

Yes, the thing is, up to INR 550, INR 575, it is more easily achievable. And then there is a bit of stretch business we are expecting in, Q3, Q4. Further new orders and also the high profitable sales mix would be better and margins also would be better, especially in API also. We have received some inquiries. That is the reason we are expecting to maybe touch nearly INR 600 cr. As you said, INR 550 cr, is easily achievable target. But we are stretching a bit, and then we are stretching to INR 600 cr.

Darshil Jhaveri:

And the EBITDA, sir, what's the rate right now? We are around 15%, right?

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Sigachi Industries Limited October 31, 2026 O. Subbarami Reddy:

15%.

Darshil Jhaveri:

Yeah. So, in Q3, Q4, what is the rate, we can get 20%, or what would it be? Like, would be your internal….?

O. Subbarami Reddy:

The overall guidance also we have given around 18%, but second half, at least, we are expecting even better, at least 18%, even better than 18%, so that it will balance out. Next quarter, our estimations also will be closer, and then after receipt of the orders and all, then we can tell better.

Darshil Jhaveri:

I just wanted to understand the competitive intensity that's happening in the market right now, right? Like, I think the other players are also running at near full capacity, I think so. So how do you look at it, sir? Like, in case for us, will there be some margin pressure? Is there enough to go for everyone? Like, how do you see it, sir?

O. Subbarami Reddy:

But always for us, there is a good demand, and Sigachi is known for quality and customer satisfaction, means timely supply of the materials, and then also addressing their pain points in the operational, flow of material in capsulation or tableting, and all those things, we never faced. We have high demand, right now, the supply is the only constraint. But we don't see any pressure, because of over competitiveness, but we are highly competitive in the market, and always the orders are higher than the production. Demand is very high.

Darshil Jhaveri:

Fair enough. Just last question. So, if we are planning to fund the CapEx by debt, what is the peak debt level that we would be comfortable reaching, sir?

O. Subbarami Reddy:

You are talking of fundraiser or debt?

Darshil Jhaveri:

Yeah, fundraiser, right.

O. Subbarami Reddy:

Fundraiser, that will be used for this CapEx only.

Darshil Jhaveri:

Yeah. So, if we are going to use via debt, right now, debt is not very high, so what is the highest peak level of debt, we would want to reach? I think we are around INR 140 crores on FY26, right? So, what kind of debt would we want to have, sir? As a net debt to EBITDA or any ratio or peak debt and an absolute figure, would you be comfortable having?

O. Subbarami Reddy:

Yeah. Right now, we have not yet decided, but our bankers, they are very supportive, and then even if we want to take the debt, that is available easily at competitive price also. At the same time, we can raise equity also, which we are discussing. Even right now, it is very less, on meager side debt is there. In that point, we’ve not thought as of now.

Darshil Jhaveri:

Yes. Fair enough. That's it from my side. Thank you so much, sir. All the best.

O. Subbarami Reddy:

Thanks, Darshil.

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Sigachi Industries Limited October 31, 2026 Moderator:

Thank you so much, sir. We have another follow-up question from Mr. Rupesh Tatiya from Long Equity Partners. Please go ahead, sir.

Rupesh Tatiya:

Hello, sir. Thank you for the follow-up. First question, sir, is on API. So, can you give some idea about what is our capacity and capacity utilization in API? And any sort of idea on order book that will sort of give us confidence that when we can go from, let's say, INR 35-40 crore to INR 90 crore?

O. Subbarami Reddy:

Yes, sir. API, presently, we have the capacity of 100 kL. That 100 kL, it can give easily give up to INR 100 CR, and then some value addition products, if we manufacture them, INR 120 cr to maximum INR 150 cr also we can achieve. As of now, we are doing sparsentan and bempedoic acid also. We have done trials, and which gives higher margins. That is the reason. As of now, 100 kL capacity is there.

Rupesh Tatiya:

Order book, sir?

O. Subbarami Reddy:

Order book, see, half year, we have reached INR 38 crores, and next third quarter and fourth quarter would be good, and so nearly INR 100 crores we can reach. Even now, if there is a good order in fourth quarter, then we can reach another INR 10 or 20 crores also, up to INR 120 crores also, is a possibility in API.

Rupesh Tatiya:

Understood, sir. And then the second question, the CapEx, right? So, for this 12,000 metric ton MCC plan, what is the total CapEx plan? How much have we spent? And for the MCC plan of 1,800 metric ton, what is the CapEx?

O. Subbarami Reddy:

Yes, Mr. Rupesh. Roughly, we have spent around INR 25 crores. And this basic civil structure at this area only takes a lot of time, and then later on, the purchase of the plant and machinery and all, it will take lesser time. And of course, another one year is there from now.

Rupesh Tatiya:

So, INR 25 crore for both of them combined, sir? Or 25 crore only for MCC?

O. Subbarami Reddy:

Total all put together is around INR 30 crores, nearly INR 29 crores.

Rupesh Tatiya:

And do you think there will be any more slippage? Because I think initially we wanted to do it in the Q4 of this year. Now, it has already slipped by six months. Do you now feel comfortable with that timeline?

O. Subbarami Reddy:

Yes, maybe one or two months here and there, we can complete it on the same line. But that's what project people have indicated, that they are sure to complete by Q2, but maybe one or two months here and there variation would be there.

Rupesh Tatiya:

Thank you.

O. Subbarami Reddy:

Thank you.

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Sigachi Industries Limited October 31, 2026 Moderator:

Thank you so much, sir. The next is a follow-up question once again from Mr. Vansh Solanki from RSPN Ventures. Please go ahead, sir.

Vansh Solanki:

Yeah. Thank you for giving me the opportunity again. So, I just want to squeeze on the revenue side again. You told that 80% utilization is on the MCC side, and we have conducted around INR 175 crores of approx on H1 in MCC segment. Even if I calculate a bit, that if you reach around 90-95% capacity utilization, also, it will be around INR 190 crores only from MCC segment. So, can you just guide, how from this around INR 190 plus INR 175 around INR 360 crores from MCC? So how will we go from INR 360 crores to INR 600 crores, sir? And how the other segments will contribute?

O. Subbarami Reddy:

Yes, Mr. Solanki. There is another sales mix is there in this. Sales mix towards special grades and the co-processed grades is increasing. If you see normal versus co-processed, that would be three times higher than this, three to four times higher than this. And the special products also, are far better than normal, the margins are higher, and the sales realizations, both are on higher side for the special and co-processed grades. That is the reason that we are expecting this increase.

Vansh Solanki:

And then you just told that the sales mix, but how percentage is about normal and coprocessed is now, and how we are targeting to reach in the next year?

O. Subbarami Reddy:

Now, within Q3 and Q4, almost, it is 50% increase would be there to the existing. Existing is around 20%. And there is much increase we are seeing in Q3 and Q4. That is the reason we are expecting higher revenues as well as the margins. And, apart from this, In the API business also, these value-added products we are proposed to sell in Q3 and Q4, bempedoic acid and sparsentan, which are new products giving good margins.

Vansh Solanki:

So, how are you targeting the total MCC, if you can tell the number for a full year?

O. Subbarami Reddy:

For full year, overall math we have to do. Only thing is, right now, around 4,500 total 9,000 is the capacity. And right now, this first half year, it's done and the balance around 4,500 metric tons would be there. Per quarter, if you see, first quarter, we have achieved 3,500, and then the second quarter around 3,600-3,700. And gradually third quarter, it will increase further, and then fourth quarter, we'll be achieving total full 4,500 metric tons capacity. And, on top of it, there would be additional income, revenue, as well as the margins from sales mix. This is from API as well as our O&M business also is increasing. All other allied trades also, there would be an increase. And, our US subsidiary is doing good. And API also, we are expecting more margins and revenues from Q3 and Q4.

Vansh Solanki:

Any further project? Because, like, you were telling, I guess, two, three quarters ago that you are starting the new project. So, something like that happening in the coming Q3 or Q4?

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Sigachi Industries Limited October 31, 2026 O. Subbarami Reddy:

New projects, sir, we are expecting in Q2 of FY28.

Vansh Solanki:

And then just the last question on the ground reality side. You told that there is so much demand from my MCC and CCS. But still, we are only at 80% capacity utilization. Like, if I assume, really, is that our plant was lost. So, normally, the older demand from or the manufacturing which we are doing from that plant should be shifted to Dahej and Jhagadia immediately. So, from that moment also, like, we are on 70-80% capacity utilization. Why we are not running at a 90-95% capacity utilization?

O. Subbarami Reddy:

Yes, Mr. Solanki. The thing is, after Hyderabad plant accident, we have concentrated more on safety audits, internal, external, and customer audits more on this. That's why when the concentration is on this, the production concentration was less. The main intention is the safety. Safety is the first priority. That is the reason we have made some of the changes, and then we have installed some of the precautionary measures, even though no one has in this segment installed such safety equipments. Those safety equipment we have incorporated, we have fitted into the FBD and the dryers, which are the major manufacturing equipments. That is the reason there is a little lower capacity utilization. But now, already all those things are installed, and then around 15th or 20th of November, will be installing another one. One by one, we are installing all the safety equipments. That is the reason there is a delay. But now, after installation, we can go for the full capacity utilization. This is additional only, but in this segment, no one has installed, but we have given this first priority for the safety.

Vansh Solanki:

All the things are done, like, we are holding safety audit and all are done from now?

O. Subbarami Reddy:

Yes.

Vansh Solanki:

Or we are still installing some equipment?

O. Subbarami Reddy:

No. One is there, and that also we'll be completing in November. One by one, we are shutting down one manufacturing equipment and then the others are operating, like that we managed to do it. And that is the reason there was lower utilization. And Q3, Q4, we are expecting higher utilization and, yeah, higher revenues and margins.

Vansh Solanki:

Just the last question from my side, that you just told that the MCC and CCS, INR 30 crores you have spent till now, cumulatively. How much is the total required from now on, like, you told that the civil structure will take a time. So how much time these civil structure will take, and what time line will it take for a machinery to implement?

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Sigachi Industries Limited October 31, 2026 O. Subbarami Reddy:

Yeah. So, Mr. Solanki, this is almost we have one year time. We'll complete everything, and even civil portion we will complete and then last in two, three months, we'll order for the plant and machinery equipment, and then that will be ready after which that will be inserted. Some of the machines we have to insert, and then civil work also needs to be completed, the finishing work, those things. But still, we have one year time. And even the funds also we are planning that will be decided in near future, either debt or equity. And based on that, that will go.

Vansh Solanki:

And how much funds is that additional required from, like, 50 to what?

O. Subbarami Reddy:

Yeah. Around INR 100 crores for MCC and around INR 90 crores for CCS. Maybe for the total CapEx, that would be roughly INR 200 crores. Some portion may be debt, some portion may be equity, that part we have not yet finalized, we'll come up with an announcement.

Vansh Solanki:

And the plans will be domestic, or we have to import from any other country or something like that?

O. Subbarami Reddy:

Most of the equipment are domestic only.

Vansh Solanki:

Thank you, Mr. Reddy, for such good answers. And just last one suggestion, that if there is a possible to have a plant visit in the Dahej or Jhagadia, I would like to have a plant visit.

O. Subbarami Reddy:

Thank you.

Moderator:

As there are no more questions, I now hand over the floor to the management for closing comments.

Amit Raj Sinha:

Thank you. As we conclude, Q2 FY27 reflects our continued focus on advancing strategic priorities through capacity expansion, portfolio differentiation, and stronger operational execution. Our focus remains on disciplined execution, operational efficiency, capacity expansion, and improving profitability while positioning Sigachi for sustainable long-term growth. We look forward to updating you on our progress next quarter. Thank you and have a great evening.

Moderator:

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. On behalf of Go India Advisors, we thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a pleasant evening.

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