Excel Industries Limited — Q4 FY26

Excel Industries Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=zdlPaACZ0zE Published: 3 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Excel Embassy's Limited Q4 and FY26 conference call hosted by 0:10 10 seconds MUSG. As a reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to 0:18 18 seconds ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0:27 27 seconds zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over 0:33 33 seconds to Miss Scuja Swami from MUFG. Thank you and over to you ma'am. Thank you. Good evening everyone. 0:41 41 seconds Welcome to the Q4 and FI26 earning conference call of Excel Industries Limited. Today on the call we have with us Mr. Ravi Shaw managing director, Mr. 0:52 52 seconds Prajit Gut, President and COO and Mr. 0:56 56 seconds Dendra Doi CFO. This conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations as of today. 1:07 1 minute, 7 seconds Actual results may differ materially. 1:09 1 minute, 9 seconds These statements are not the guarantee of a future performance and involve risk and uncertainties that are difficult to 1:16 1 minute, 16 seconds predict. A detailed safe harbor statement is given on page two of the investor presentation of company which has been uploaded on the stock exchange. 1:25 1 minute, 25 seconds With this I hand over the call to Mr. 1:28 1 minute, 28 seconds Shaw for his opening remarks. Over to you sir. 1:33 1 minute, 33 seconds Thank you Puja. Uh good evening ladies and gentlemen. This is Ravi Shro. Uh thank you for joining us today for the call of quarter 4 uh and FY26. 1:45 1 minute, 45 seconds I would like to begin by thanking the investment community for their consistent engagement and patient support that we have received over the 1:51 1 minute, 51 seconds years. For the benefit of those signing external industries con for the first time, allow me to give you a brief introduction. We are one of India's 2:00 2 minutes oldest chemical companies and a pioneer in phosphorous chemistry with a manufacturing legacy that goes back to 1941. Our chemical business operates across four major product groups. 2:12 2 minutes, 12 seconds Agrochemical intermediates, yellow phosphorus derivatives that is called YP derivatives, performance solutions and 2:20 2 minutes, 20 seconds pharma intermediates and APIs. Our business is supported by deep backward integration, global scale capacities in 2:28 2 minutes, 28 seconds select intermediates and a long-standing relationships with marquee domestic and international customers with deep 2:35 2 minutes, 35 seconds technical expertise and robust scalable infrastructure. We deliver contract manufacturing solutions across our core 2:43 2 minutes, 43 seconds chemical portfolio. We have three manufacturing sites at Roa and Lote Pashuram which are in Maharashtra and 2:51 2 minutes, 51 seconds Vishakapaam in Andhra Pradesh. Our waste management business which represents approximately 1% of our revenues continues to operate steadily. 3:01 3 minutes, 1 second Looking back back at FY26, the first half was difficult one for the broader Indian agrochemical sector. 3:09 3 minutes, 9 seconds An unusually extended monsoon disrupted sewing and harvesting cycles, compressed spray windows, and a buildup of channel 3:18 3 minutes, 18 seconds inventory at our customer end. This weighed on volumes and price realizations through the first two quarters, and you will recall that we 3:27 3 minutes, 27 seconds had flagged these headwinds during our halfearly call in November. 3:32 3 minutes, 32 seconds The third quarter usually is a lean season for agrochemical intermediates. 3:37 3 minutes, 37 seconds However, the demand environment had begun to turn in Q4 FY26. 3:42 3 minutes, 42 seconds The cyclicity of agrochemical intermediates demand was partly compensated [clears throat] with good performance of YP derivatives and performance solutions product groups. 3:53 3 minutes, 53 seconds That momentum carried constructively into the fourth quarter which comparatively a strong quarter for Indian agrochemical season and a full 4:02 4 minutes, 2 seconds year's numbers that our CFO will walk you through in a few minutes reflect both this recovery and the broader 4:10 4 minutes, 10 seconds structural progress we have made through the year. Moving on to our business updates. 4:17 4 minutes, 17 seconds There were two projects that we had announced. Capacity addition of 2530 tons perom of our existing product in 4:24 4 minutes, 24 seconds bioides range announced in March 2025 is operational in the second half of FY26. 4:33 4 minutes, 33 seconds The contract manufacturing long-term agreement with a multinational company which we announced in May 2024 is 4:39 4 minutes, 39 seconds progressing well. The validation batches for the same have been dispatched. The agreement we announced in November 2025 4:48 4 minutes, 48 seconds is going well and on track. The capacity for catering to this agreement is expected to come on stream in July 2026. 4:57 4 minutes, 57 seconds During the year, we successfully operationalized our new corporate R&D center at Rabali Navi Mumbai. This milestone underscores our unwavering 5:06 5 minutes, 6 seconds commitment to innovation, advanced product development and long-term value creation. The center will serve as a hub 5:13 5 minutes, 13 seconds for strengthening our growth initiatives across our business verticles, enhancing sustainability initiatives and driving differentiated solutions that meet evolving customer needs. 5:24 5 minutes, 24 seconds As we reflect on the current year's performance, it is important to contextualize the results within the broader macroeconomic environment. Due 5:33 5 minutes, 33 seconds to the geopolitical developments, we are seeing challenges in raw material availability and prices for Q1. Due to 5:41 5 minutes, 41 seconds proactive raw material proc procurement and inventory management, we are a we are able to continue operations without any supply disruptions. 5:51 5 minutes, 51 seconds Currently, we have been able to largely pass on the raw material price increases. However, there is uncertainty about agrochemical intermediates going 5:59 5 minutes, 59 seconds demand going forward on account of possibility of suboptimal monsoon as per the El Nino forecast. 6:07 6 minutes, 7 seconds Given the overall uncertainty and volatility, it is not possible to make any forward statements. 6:14 6 minutes, 14 seconds While we continue with our responses to immediate uh situation as mentioned above, we remain firmly focused on our 6:21 6 minutes, 21 seconds long-term strategy. The commissioning of our dedicated line to cater to contract manufacturing agreement is on track and expected to be completed by June uh by July 2026. 6:33 6 minutes, 33 seconds Also, we plan to launch one more bioside product in the second half of this financial year, which will enhance our product offerings and strengthen our market position in this segment. 6:44 6 minutes, 44 seconds We we remain deeply committed to executing our strategic priorities with discipline and focus and we are confident that as near-term 6:53 6 minutes, 53 seconds uncertainties normalize, the investments and groundwork laid this year will translate into sustainable long-term value creation for all our stakeholders. 7:02 7 minutes, 2 seconds In line with our commitment to rewarding shareholders, I'm happy to mention that the board has declared a final dividend of rupees 13.75 per equity share which 7:12 7 minutes, 12 seconds is 275% of face value of rupees 5 per share. With this I now hand over the 7:19 7 minutes, 19 seconds call to Mr. Dendra Dosi, our company CFO to tell you about the financial part of the company. 7:27 7 minutes, 27 seconds Thank you everybody. On behalf of Excel Industries Limited, I am pleased to extend a warm welcome to all of you who have joined us for this conference call. 7:39 7 minutes, 39 seconds We truly appreciate your valuable time and continued interest in our company's performance. Moving on to the financial 7:46 7 minutes, 46 seconds performance of the company in quarter 4 and FI26. 7:51 7 minutes, 51 seconds On standalone quarterly basis we reported revenues of rupees 281 kores in 7:58 7 minutes, 58 seconds Q4 FI26 as compared to rupees 248 crores an increase of 13% yearon year. Adjusted 8:07 8 minutes, 7 seconds IITA for Q4 FI26 was rupees 22 crores versus rupees 20 crores an increase of 13%. 8:17 8 minutes, 17 seconds Adjusted EITA margin stood at 8% for the quarter. Profit after tax in Q4 FI26 8:25 8 minutes, 25 seconds stood at RS3 crores against 11 cr in Q4 FI25. 8:32 8 minutes, 32 seconds For financial year 26, the company reported net operating revenues of RS 8:37 8 minutes, 37 seconds 1094 KES against RS 978 KES in FI25 reflecting a growth of 11.8%. 8:48 8 minutes, 48 seconds Adjusted IBITA stood at 112 KES with margins of 10.1%. 8:54 8 minutes, 54 seconds The profit after takes in FI26 stood at R of 73 crores with 6.7% margins. 9:07 9 minutes, 7 seconds Our balance sheet remains exceptionally strong with zero long-term debt and a net cash position. We continue to be a 9:16 9 minutes, 16 seconds net cash positive company. This financial evidence provides us with a significant cushion to weather 9:23 9 minutes, 23 seconds operational challenges and positions us to well to invest strategically in initiatives aimed at improving margins 9:32 9 minutes, 32 seconds and enhancing long-term shareholder value. That's all from my side as of now. We can now open the lines for Q&A. 9:44 9 minutes, 44 seconds Thank you very much members. We will now begin the question and answer session. 9:48 9 minutes, 48 seconds Anyone who wishes to ask a question may press star and one on the touchstone phone. If you wish to remove yourself 9:55 9 minutes, 55 seconds from the question queue, you may press star and two. Participants are requested to use handsons while asking a question. 10:03 10 minutes, 3 seconds Ladies and gentlemen will wait for a moment while the question cue assembles. 10:17 10 minutes, 17 seconds The first question is from the line of Keshar from Counter Silicon PMS. Please go ahead. 10:24 10 minutes, 24 seconds So Mr. Schro, I'm extremely I'm a very old shareholder and I'm extremely disappointed with the performance of the company and it's not only about one year 10:33 10 minutes, 33 seconds or two year. I mean in FI8 we did 125 K raida and last year we did 110 K raida. 10:41 10 minutes, 41 seconds So okay I can understand that last year there were headwinds but I mean it's if if we have to describe this company in one word that word is stagnation. 10:53 10 minutes, 53 seconds So firstly if you could just tell us that what's your aspiration is it to grow the business I mean can we grow 10% 11:01 11 minutes, 1 second CAGGR 15% CAGR or it's too much so I would it would be great if you could share your thoughts about that 11:14 11 minutes, 14 seconds yeah uh Mr. Okay. So, uh your point uh you know uh understood what you're trying to convey. Uh as you are aware, 11:22 11 minutes, 22 seconds we are already deploying some capex which we have disclosed in the previous call and we have continued to disclose. 11:29 11 minutes, 29 seconds And also second thing I'd like to add that there is cyclicity in our business. 11:33 11 minutes, 33 seconds Uh as you are aware chemical business has its ups and down cycles. So just the ability of two years that you're looking at is not a representative ebitita I 11:42 11 minutes, 42 seconds would say. So I would uh suggest or recommend you look at a longerterm track record of the company particularly over the last 10 years. 11:53 11 minutes, 53 seconds Uh and and Mr. Sha what about the growth I mean do you have any number in mind that in this business we can grow at 10% 15% what is that number? 12:05 12 minutes, 5 seconds uh of course growth is focus for the organization and hence I mentioned that we are planning to deploy capex. We have 12:12 12 minutes, 12 seconds also given an indication broadly as to what we believe would be the fixed asset turnover from this kind of capex. While we cannot state exactly how much growth 12:21 12 minutes, 21 seconds we can expect but the plans are underway and also the uh we have continued to uh 12:28 12 minutes, 28 seconds convey what areas we are looking for the growth in which areas that also has been conveyed in the past. 12:36 12 minutes, 36 seconds Now uh Mrs. off. Now, as you might be knowing that our stock is at the same 12:42 12 minutes, 42 seconds price a as it was 10 years back and it is not a surprise even though we have continuously I think we have done 422 12:50 12 minutes, 50 seconds Kore capex since FI18 uh and I take your point that maybe this year uh was a bad year and since we have 12:58 12 minutes, 58 seconds a cash surplus balance sheet I mean our net worth is 1,700 K and market cap is 1250 K then why aren't you doing a share 13:07 13 minutes, 7 seconds buyback. If it's a bad year and you have a cash surplus balance sheet, then do a share buyback so that our earning per 13:14 13 minutes, 14 seconds share can grow. I think the problem is that the management is not concerned at all about value creation. That is the 13:23 13 minutes, 23 seconds basic problem as far as I have been able to understand and I'll be very happy if you could prove me wrong. 13:34 13 minutes, 34 seconds uh your point your point uh uh noted you know we will uh evaluate this point and 13:41 13 minutes, 41 seconds discuss it uh at the board. Thank you very much. 13:48 13 minutes, 48 seconds Thank you. The next question is from the line of Samar Singh from TPF Capital. Please go ahead. 13:55 13 minutes, 55 seconds Uh yeah good afternoon. Thank you for the opportunity. Uh first on uh some near-term calculus could you just uh tell us on the DGTR anti-dumping case 14:05 14 minutes, 5 seconds for HDP and ATMP uh when do we expect the preliminary findings and what uh duty quantum memory petition for? 14:15 14 minutes, 15 seconds So uh the investigations are ongoing and uh it's not possible to provide exact timelines because these are not under 14:23 14 minutes, 23 seconds our control. However, considering that the investigation was initiated in September 2025, in normal course, we should expect some findings to be released by September 2026. 14:36 14 minutes, 36 seconds And would you be able to state what a rough percentage of our revenue would be affected by this uh case? 14:46 14 minutes, 46 seconds Not comment anything until we know what the findings are, you know. 14:50 14 minutes, 50 seconds No, no. I'm I'm saying as of today can you say what percentage of a revenue would be affected by this? Uh whether it's there is a anti-dumping duty levied 14:58 14 minutes, 58 seconds or not but what percentage of a revenue would be affected by it. Uh let me get back to you. 15:06 15 minutes, 6 seconds Okay. And then the second one was on the China battery which is removed in April. 15:11 15 minutes, 11 seconds So are we seeing Chinese DETC and first landed prices in India actually go up or are the Chinese exporters absorbing it? 15:21 15 minutes, 21 seconds So yes, the prices have gone up. Uh in general, we are seeing an increase in prices of products from China and you 15:29 15 minutes, 29 seconds know this is due to a combination of factors uh which is withdrawal of battery refund as well as the input costs are globally increasing including 15:37 15 minutes, 37 seconds in China right? uh so I guess you know if we uh 15:45 15 minutes, 45 seconds remove the uh the input cost increase which would have happened for us as well uh is there an additional increase of uh 15:54 15 minutes, 54 seconds you know the prices coming in from China I can't comment specifically on that it 16:03 16 minutes, 3 seconds keeps varying because these are not uh fixed prices but dynamic and they've changed significantly over the last few months I would 16:12 16 minutes, 12 seconds Okay. And uh so and on the raw material side since you mentioned so what percentage of a raw material is you know sulfur and you mentioned you've been 16:20 16 minutes, 20 seconds able to pass through the recent uh price hike. So if you could just clarify that both for sulfur and for yellow phosphorus. 16:32 16 minutes, 32 seconds So won't be able to comment specifically on the breakup of raw materials. uh whereas I can confirm that we've been 16:39 16 minutes, 39 seconds largely able to pass on the input price increases in the month of April and May. 16:44 16 minutes, 44 seconds Uh given the uncertainty of environment very difficult to provide any forward-looking statement though and I hope you will understand and appreciate 16:51 16 minutes, 51 seconds that. Uh as an approach generally we go for monthly or quarterly pricing for our key products or key raw materials. U in 17:01 17 minutes, 1 second view of this current situation we are going for shorter time windows for our products as well. uh particularly the ones we are selling you know in terms of 17:08 17 minutes, 8 seconds pricing and uh contract manufacturing that we do uh the nature of the agreements is such that they are not 17:16 17 minutes, 16 seconds very impacted by these raw material price fluctuations. 17:20 17 minutes, 20 seconds Got it. And the the purchasing is also uh is that on a our purchase contracts are annual or on a spot basis? 17:33 17 minutes, 33 seconds uh spot but we do use a combination of depending on you know what kind of market situation prevails so it's a 17:40 17 minutes, 40 seconds dynamic policy of procurement okay and uh if I'm not mistaken cast 17:47 17 minutes, 47 seconds phosphate is our largest uh supplier for yellow phosphorus so uh any do we what is the cont contingency plan in case 17:56 17 minutes, 56 seconds there are some sort of an outage so we source uh yellow phos multiple 18:04 18 minutes, 4 seconds players uh kazak phosphate as well as multiple producers in Vietnam. Yeah. And uh we are not uh just dependent on one 18:13 18 minutes, 13 seconds source. I can I can confirm that much and we don't have an over dependence on one source either. 18:19 18 minutes, 19 seconds Oh like for example I'm assuming Vietnam would be Dang and I think they are planning to start their own fossils track production in 2026. So does this 18:28 18 minutes, 28 seconds affect our supply chain either on the all our ability to sell or our uh procurement costs? 18:36 18 minutes, 36 seconds I mean I don't know what their plans and how they will play out but so far we're not seeing any major impact. 18:44 18 minutes, 44 seconds Got you. Uh and on the DETC NATCB franchise, what is our current NATCB capacity and you know uh you know we had 18:53 18 minutes, 53 seconds I think the idea was to get both these cloud perforce intermediaries under one shop uh you know and you know sort of 19:00 19 minutes win incremental volumes. So is that working out for us or are customers still buying uh NAD TCP separately from China? 19:09 19 minutes, 9 seconds Yeah. So our uh NATCP capacity is uh practical and it allows us to sell DETC and NATCP in combination to certain CPP 19:19 19 minutes, 19 seconds producers and we use our capacity basically to you know uh from a portfolio perspective. Uh that's how we are you know positioning ourselves. 19:31 19 minutes, 31 seconds Okay. But I guess the idea was to uh you know be a be a supplier of both products from one one source of origin as opposed 19:39 19 minutes, 39 seconds to having our uh uh customers having to procure uh NDC separately and DD separately. I'm not sure does that give 19:47 19 minutes, 47 seconds us any sort of benefit or having it under one shop is not really much of a benefit. 19:53 19 minutes, 53 seconds It does give us benefits as I said we use it to uh for for tactical reasons you know because in certain customer cases it gives us 20:01 20 minutes, 1 second to supply both I'm I'm sorry it gives us what to supply benefit to supply both it's a win-win 20:08 20 minutes, 8 seconds for our customers as well as for us got to be able to supply from one one uh company 20:15 20 minutes, 15 seconds okay and on our margins I know you don't break it up but is it fair to say that the specialty chemicals polymers APIs sort of margins 20:23 20 minutes, 23 seconds are better and more stable than the agro business. 20:30 20 minutes, 30 seconds Um okay so I mean the chemical business itself has a lot of cycles and cyclicity including our products undergo those 20:39 20 minutes, 39 seconds cycles as well. So uh you know I would not necessarily agree with this statement that you uh made. uh but at 20:46 20 minutes, 46 seconds the same time uh I will say that uh you know as a portfolio we we look at it from an overall perspective as well what 20:53 20 minutes, 53 seconds can we do to uh maximize our margins overall so uh okay let me ask a question in a 21:00 21 minutes different way so uh you know as our agro uh I think our agro business is about 60% of our revenues so as that becomes 21:08 21 minutes, 8 seconds less and the other business becomes more do our margins become more stable or the 21:15 21 minutes, 15 seconds secretity these remains in our business and a margin sorry so specific to cyclicality maybe there 21:23 21 minutes, 23 seconds will be an improvement but I can't comment specifically uh you know uh what will happen in the future but as we have shared you know whatever additional 21:32 21 minutes, 32 seconds business that we are bringing in in terms of growth and due to which uh you know the uh agrochemical proportion 21:40 21 minutes, 40 seconds agrochemical intermediate proportion is expected to reduce going forward the additional business coming in will be 21:47 21 minutes, 47 seconds value and margin accretive. So there should be uh that benefit 21:54 21 minutes, 54 seconds right right okay and uh you know you last call you had mentioned we're doing about 200 300 cr of capex over the next few years uh I'm I'm not sure if you 22:03 22 minutes, 3 seconds given a breakdown uh segment wise for this capex it would be great if you can do that please yeah so uh value wise it won't be 22:11 22 minutes, 11 seconds possible to give a breakdown but I can tell you that the growth areas that we have identified are performance solutions contract manufacturing and YP 22:20 22 minutes, 20 seconds derivatives and in all of these three based on the opportunities that we are seeing we'll continue to deploy capex uh 22:27 22 minutes, 27 seconds in these areas and some of the products that we have been discussing have also been coming out of these capexes. 22:37 22 minutes, 37 seconds Okay. Okay. Uh so uh just and diving down more on performance solutions and the polymer input side. Um which 22:45 22 minutes, 45 seconds products within performance solutions would you say are going the fastest? 22:51 22 minutes, 51 seconds Uh we'll not be able to comment very specifically on uh product areas but I can tell you that biocytes is something 22:59 22 minutes, 59 seconds that we are continuing to invest. Uh you know biocides is something that is was a relatively small and newer business for 23:07 23 minutes, 7 seconds Excel in the past and we believe that this opportunity uh you know is growing. 23:11 23 minutes, 11 seconds It's an area that you know we feel that uh uh we'll perhaps see the fastest growth within the performance solutions basket. 23:21 23 minutes, 21 seconds Got and anything on the uh on the you know polycarbonate inputs PHP and uh 23:28 23 minutes, 28 seconds DMBPC is that a significant uh revenue source for us? 23:34 23 minutes, 34 seconds Let let me uh put it uh you know this way the exact numbers I won't be able to share with you but I can tell you that we have a strong market position in THP 23:43 23 minutes, 43 seconds particularly and you know in the global polycar market wherever THP is consumed uh we do have a significant market share 23:52 23 minutes, 52 seconds and uh global positions on THP. So uh okay yeah and on Xclar and PEBB are we qualified 24:00 24 minutes as primary suppliers with you know global PP catalyst houses so particularly PEBB is a niche product 24:09 24 minutes, 9 seconds and you know we only currently we only manufacture it on campaign basis and uh yeah that's that's what I can comment 24:18 24 minutes, 18 seconds uh okay so that so it's not we don't see that in our revenues every year it happens or is it here I mean is the 24:25 24 minutes, 25 seconds campaign would be at least on yearly basis or is it uh uh on a quarter basis uh you know 24:33 24 minutes, 33 seconds uh can't give campaign specific details so but I can tell you it's a niche product and you know uh it's something that has been going on for a long time 24:41 24 minutes, 41 seconds within the company so yeah and on excloud excloud currently we are not seeing uh 24:51 24 minutes, 51 seconds demand so we are not uh manufacturing at the moment Got you. Okay. And on just on the phosphinet business, if you just tell 24:58 24 minutes, 58 seconds us, you know, who are the in India, who are the large uh you know, phosphorate consumers and what is our domestic share uh saying? 25:09 25 minutes, 9 seconds Yeah. So, phosphonets uh you know mainly finds applications in water treatment, soaps and detergents, industrial and 25:16 25 minutes, 16 seconds institutional cleaners, textile auxiliaries and a few other segments. 25:21 25 minutes, 21 seconds You know our domestic market share varies. It's in the range of 50 to 55%. 25:28 25 minutes, 28 seconds Gotcha. Okay. Uh and this uh do we also have a large uh you know our exports about 20% of revenue? Would you able to 25:36 25 minutes, 36 seconds comment one which geographies and what uh products specifically? 25:44 25 minutes, 44 seconds Yeah. So uh you know the exports the US EU are are the larger markets for us. We 25:51 25 minutes, 51 seconds do have positions in a few other markets as well, Latin America and Middle East and uh you know other areas. What was 25:58 25 minutes, 58 seconds the rest of your question and which uh you know between our four divisions which one exports is uh you know which 26:05 26 minutes, 5 seconds divisions would would the exports represent? 26:10 26 minutes, 10 seconds So largely performance solutions is uh you know the area where uh we are seeing uh our exports. 26:19 26 minutes, 19 seconds Okay. and phosphorates would would would come under um performance solutions, right? Yeah, that's correct. 26:27 26 minutes, 27 seconds So, and that's a pretty large I would assume that's a pretty large export market as well. 26:33 26 minutes, 33 seconds It's a global market. I mean the markets uh the segments that I told you you know which are water treatment, soaps, detergents, industrial, institutional 26:40 26 minutes, 40 seconds cleaners, all of these are global requirements and I don't think there's any geography where these products are not used. 26:49 26 minutes, 49 seconds Yes, I was just coming to that. So, uh Mr. Why is it that our uh you know our exports only 20% of the business? I think there would be a large market for 26:57 26 minutes, 57 seconds us to capture both in EU and the US uh for fossils. Uh is there any reason that we have not uh you know seen a larger chunk of revenue coming from that? 27:08 27 minutes, 8 seconds So global phosphonets market uh you know has its own dynamics and there are already legacy suppliers in many areas. 27:16 27 minutes, 16 seconds you know, we've been able to change some of these positions. We have entered some of the markets where we had we did not have as much presence in the past. Uh 27:25 27 minutes, 25 seconds and uh we definitely feel there's opportunity perhaps to grow more from here. 27:31 27 minutes, 31 seconds The legacy suppliers would all be largely European guys, right? I'm assuming there with a higher energy cost, they would not be very competitive. 27:41 27 minutes, 41 seconds Uh actually, China is the biggest for these products. What? So like like it mark and uh all these guys they're not 27:50 27 minutes, 50 seconds large suppliers uh in the space you know solve and shimmer and shorts. It really depends on geography to geography you 27:58 27 minutes, 58 seconds know uh because of the low price of this product. uh sometimes it's more competitive to buy uh locally whereas uh 28:06 28 minutes, 6 seconds you know in c certain markets there are local players already existing other markets don't have local players so there's largely depending on import but 28:15 28 minutes, 15 seconds again it's very markettomarket and uh not necessarily that what you're saying will hold true everywhere 28:23 28 minutes, 23 seconds and last question from my side you know if you could uh you know tell us uh you know what is you know since you mentioned EU and US are the large export 28:31 28 minutes, 31 seconds markets what has been the impact of sort of the you know the India EU FDA removal and you know on the India US treat as well. 28:42 28 minutes, 42 seconds So these are uh generally quite uh positive particularly for us uh you know we are exploring opportunities in the EU 28:48 28 minutes, 48 seconds market and uh as we we will keep track and as we hear more about uh you know the formalization or ratification of 28:57 28 minutes, 57 seconds this treaty uh by then uh hopefully we'll have a lot more clarity on how we can go about uh capitalizing on the opportunity. 29:07 29 minutes, 7 seconds Okay, I'll get back at you. Thank you. Thank you. 29:12 29 minutes, 12 seconds The next question is from the line of Sesh from PL. Please go ahead. 29:19 29 minutes, 19 seconds Hi, good afternoon. How are you? 29:21 29 minutes, 21 seconds Yes, I can hear you. Yeah. Uh so on the polymer input segment uh just wanted to understand can you uh share the growth 29:29 29 minutes, 29 seconds profile for this segment in FI26 and whether the global polycarbonate slow particularly in optical media and electron X has affected your volumes. 29:42 29 minutes, 42 seconds Uh can you please repeat your question? I didn't get it fully. 29:47 29 minutes, 47 seconds on the polymer input segment. Uh could you share the growth profile of this segment in FI window X and whether the 29:54 29 minutes, 54 seconds load on particularly in optical media and electron X has affected your volume? 30:03 30 minutes, 3 seconds I mean so far we have not seen any impact of whatever you are saying at least I don't specifically have any data or details on uh the query that you 30:11 30 minutes, 11 seconds asked. So I can't make any comment about that. 30:16 30 minutes, 16 seconds Understood. And on contract manufacturer of this nature, MNC customer onboarding typically involves a two to three year 30:23 30 minutes, 23 seconds qualification cycles. So could you share how many additional customer qualifications are currently in trial or audit stage and what proportion are 30:32 30 minutes, 32 seconds expected to convert into form contracts in F27? 30:38 30 minutes, 38 seconds So as uh as I shared earlier uh you know in uh in my listening remarks there are already certain which are under uh 30:45 30 minutes, 45 seconds progressing under already post the contract signing stage. As far as any new opportunities I can't uh specify or comment anything at this moment. 30:56 30 minutes, 56 seconds However, a combination of the existing companies they are already working with plus some new opportunities is what we 31:03 31 minutes, 3 seconds are looking at and exploring and at at the appropriate time we'll make the right disclosure. 31:12 31 minutes, 12 seconds Understood sir. Thank you. I'm wishing you all the very best. Thank you. 31:16 31 minutes, 16 seconds Thank you. The next question is from the line of Janm Gillani from Swan Investments. Please go ahead. 31:25 31 minutes, 25 seconds Hi sir, thank you for this opportunity. 31:28 31 minutes, 28 seconds Uh I'm fairly new to the company so sorry if my question seem repetitive. 31:33 31 minutes, 33 seconds So earlier you mentioned to one of the participants that we will spend around 200 to 300 crores for KEX over the next 31:40 31 minutes, 40 seconds 2 to 3 years. So what is our expected ROI and you know the project timelines as well as what is the asset turnover that we expect from this? 31:53 31 minutes, 53 seconds Let me get back to you. Jenn sir. 32:05 32 minutes, 5 seconds Yes. 32:06 32 minutes, 6 seconds So the fixed asset turnover for this would be uh 1 to 1.5 times uh and expected ROI could be 15 to 20%. 32:19 32 minutes, 19 seconds and I can't share anything specific about deployment of capex at the moment. 32:25 32 minutes, 25 seconds Okay. And so in terms of sorry that being said at the right time we will make the disclosures as 32:33 32 minutes, 33 seconds applicable you know if there's any major capexes being done so and we have in the past as well uh informed uh you know the 32:40 32 minutes, 40 seconds the the investor and shareholder community uh about any specific developments. So we'll continue to maintain uh when you know there's uh any such development happening. 32:51 32 minutes, 51 seconds Okay. And uh so what is our annual R&D spend and what is our R&D team size? 32:59 32 minutes, 59 seconds Uh let me just check and get back to you on that. 33:05 33 minutes, 5 seconds You have a next question in the meantime. Uh and other than that I wanted to know that in terms of CDMO is 33:13 33 minutes, 13 seconds it that we develop a product or develop an effic like some form of efficiency and then we approach the customer or do we have customers approaching us for 33:22 33 minutes, 22 seconds specific products because of our skill set. 33:27 33 minutes, 27 seconds Uh it's typically uh you know the funnel if you're asking me how how do we get this contract manufacturing funnel? So 33:35 33 minutes, 35 seconds it would be based on what some of these customers what they understand of our opportunities and what they know Excel's 33:43 33 minutes, 43 seconds strengths to be. Uh on that basis they would approach us certain other things uh uh to to also to also help you 33:51 33 minutes, 51 seconds understand is that uh we don't look at products and approach customers that this would be good product for you and 33:59 33 minutes, 59 seconds because that that's not the way this business uh typically works. It's typically the inbound that comes in from a customer, you know, seeking uh a 34:08 34 minutes, 8 seconds specific query. And uh I can I can tell you that, you know, in the few cases that we have had this experience already, uh the experience has been 34:16 34 minutes, 16 seconds largely good and successful in being able to carry through some of these opportunities and this is typically based on already the existing strengths 34:24 34 minutes, 24 seconds that we have as well as the new R&D capabilities that we have uh updated you know the investors about. 34:32 34 minutes, 32 seconds Okay, that's it from my side. Thank you. Thank you. 34:39 34 minutes, 39 seconds The next question is from the line of Janel Fufalia from Prau Silad Capital. Please go ahead. 34:47 34 minutes, 47 seconds Yeah. Uh good. Good evening. So sir, thank you for the opportunity. So uh so what is our total installed capacity currently and how much capacity we are 34:57 34 minutes, 57 seconds planning to add in the next two years and which would be the major products for the same? 35:03 35 minutes, 3 seconds Yeah. So I will uh request my colleagues to uh respond. Prahep can you come in on that? 35:12 35 minutes, 12 seconds So uh our typically our current capacity utilization levels are in the range of uh 65 to 85% depends on the product and 35:21 35 minutes, 21 seconds uh as mentioned earlier we are planning to add capacity in the focus areas that is performance solutions, contract 35:28 35 minutes, 28 seconds manufacturing and YP derivatives. These are the focus areas which we have identified. 35:35 35 minutes, 35 seconds So what is the total installed capacity that we have what you said is capacity uh utilization but what is the total installed capacity now? 35:45 35 minutes, 45 seconds So this would be uh different for different products right? Yeah. 35:53 35 minutes, 53 seconds So is it possible to get uh get those details or uh it's not possible to share those details you know due to uh commercial 36:01 36 minutes, 1 second reasons. Uh okay share that. So okay and second question on uh your pricing strategy. So 36:09 36 minutes, 9 seconds have you taken any price hike recently and are there any plans to take for any further price hike in FI27? 36:18 36 minutes, 18 seconds Yeah, as we have shared as I've shared earlier also we've been pass we've been able to pass on largely some of the uh input cost increases that we are facing 36:27 36 minutes, 27 seconds and particularly with the current situation uh and price our pricing strategy is is quite dynamic and we base 36:34 36 minutes, 34 seconds it on market situations largely and uh as you understand you know when we are competing with large competition from 36:42 36 minutes, 42 seconds China we have to be very agile with our uh you know pricing strategies because we we are dealing with uh you know large competitors. 36:53 36 minutes, 53 seconds Okay, that being said, we also focus on market share and make sure that our pricing strategy allows us to maintain our 37:02 37 minutes, 2 seconds market share or improve it uh depending on the situation. 37:07 37 minutes, 7 seconds Okay. And last question is what are the key growth drivers in all your business verticles for 527? how how do you see the growth? 37:19 37 minutes, 19 seconds Yeah. So, uh you know as as my colleagueuh Praep shared you know there's there's three areas that are largely the growth drivers. Performance 37:26 37 minutes, 26 seconds solutions, YP derivatives and contract manufacturing. Each has its own dynamic. 37:32 37 minutes, 32 seconds Uh performance solutions are typically more established products. Uh you know YP derivatives are also established 37:39 37 minutes, 39 seconds products but we have core strength in manufacturing those products. Contract manufacturing has a longer lead time and 37:47 37 minutes, 47 seconds requires more intense involvement with the customer at the earlier stage. So that pipeline uh will you know behave or 37:55 37 minutes, 55 seconds grow at that rate versus the other product areas. As we already mentioned, we have had some growth and plans that 38:02 38 minutes, 2 seconds we have disclosed over the last year or so and we will continue to uh you know as as I shared earlier uh in in the call 38:10 38 minutes, 10 seconds as well that for example we are planning to launch some new uh products in the bioside segment. So you know that comes 38:17 38 minutes, 17 seconds under our performance solutions uh segment. So we'll continue to uh work on growth in these two other segments. 38:27 38 minutes, 27 seconds Okay, thank you sir. Thanks a lot. Thank you. 38:31 38 minutes, 31 seconds Thank you. The next question is from the line of Govinda Alagi from Nutwal Anson talkage private limited. Please go ahead. 38:42 38 minutes, 42 seconds Hi, thank you for the opportunity now audible. Hello. Yes, you're audible. 38:48 38 minutes, 48 seconds Yes. Yeah. So, I have a couple of questions. 38:52 38 minutes, 52 seconds Uh sir I just wanted to understand your five year vision by financial year. 38:59 38 minutes, 59 seconds Warehouse management, C excit position in terms of A the consolidated revenue stream, B export share, C contract 39:08 39 minutes, 8 seconds manufacturing as percentage of revenue and B chemistry diversification on costation even a direction articulation 39:16 39 minutes, 16 seconds of the aspiration will help us longterm basis. So can you please just briefly walk through us 39:26 39 minutes, 26 seconds if I can you please repeat a little bit voice was little bit soft so 39:32 39 minutes, 32 seconds I I'll repeat is it now better hello yes better hello yeah so I just wanted to 39:40 39 minutes, 40 seconds understand your five year vision down the line by announc 13 where the management CXL positioned 39:48 39 minutes, 48 seconds uh in terms of a consolidated revenue scale being export share key contract manufacturing as percentage of revenue 39:56 39 minutes, 56 seconds and being chemistry diversification beyond phosphorus. 40:00 40 minutes So even a direction articulation on this would help us to you know enter a long-term process. So can you please leave it out? 40:08 40 minutes, 8 seconds Yeah. So um you know I will I appreciate you asking the directional part because numbers I won't clearly be able to share 40:16 40 minutes, 16 seconds you know particularly things like revenue. uh directionally I can tell you that exports uh is uh you know something that we definitely want to increase and 40:25 40 minutes, 25 seconds you know we are working on particularly the areas I mentioned uh you know to one of the earlier uh questions asked 40:33 40 minutes, 33 seconds performance solutions for example there's opportunity for us to look for more growth so we will continue to invest uh as you can understand uh and 40:42 40 minutes, 42 seconds we have already shared this in some of our previous disclosures contract manufacturing is another area which falls under exports in that sense 40:50 40 minutes, 50 seconds because some of the opportunities that we have already received uh are coming from international uh or multinational 40:56 40 minutes, 56 seconds players and uh both of these are key or core go uh areas for us to look for growth and we actively pursuing. Uh the 41:06 41 minutes, 6 seconds proportion of these areas will continue to increase in our overall portfolio. 41:12 41 minutes, 12 seconds Uh on the last point that you asked about chemistry diversification. 41:17 41 minutes, 17 seconds So chemistry diversification is a double-edged sword, right? Uh we already have strengths in phosphorous chemistry for example. So our current aim or 41:26 41 minutes, 26 seconds approach is what can we leverage further on areas that we are good at instead of trying to get into areas where we'll be competing other established players. 41:34 41 minutes, 34 seconds Whereas we are known for phosphorus chemistry. So we will consolidate opportunities on phosphorus and look for newer opportunities and augment these 41:43 41 minutes, 43 seconds opportunities as required through our R&D center and technical capabilities. 41:49 41 minutes, 49 seconds So I hope that answers your question. 41:53 41 minutes, 53 seconds Yes uh it did. And the second one is on the geographic footprint right uh with US tariffs dynamics evolving and the 42:01 42 minutes, 1 second China plus one thesis benefiting Indian speciality variables broadly. So is there a strategy intend to set up any 42:10 42 minutes, 10 seconds contract manufacturing or trading presence in the US Europe or Latin America to be closer to an NC decision making center. 42:21 42 minutes, 21 seconds We continue to evaluate these opportunities dynamically and uh you know uh the for example uh we we I 42:31 42 minutes, 31 seconds shared earlier that EU is definitely an opportunity market as one of the earlier uh uh you know persons on the call 42:38 42 minutes, 38 seconds themselves also mentioned that the costs are rising in EU. So EU definitely is an opportunity particularly with this free 42:45 42 minutes, 45 seconds trade agreement being done. So we will definitely want to expand our presence market presence at least in EU to make 42:52 42 minutes, 52 seconds sure that you know we capitalize on product opportunities in EU. Uh US we will await more clarity and you know 43:00 43 minutes it's a big market again there is lot of opportunities particularly in the performance uh solution segment and we will uh expand we would like to expand 43:09 43 minutes, 9 seconds our presence there as well. Uh that being said there are fewer other markets as well which are uh you know 43:15 43 minutes, 15 seconds combination of uh different products where there might be opportunities and time to time we will explore if any 43:24 43 minutes, 24 seconds other uh approach or bene if there's a benefit for us to create any kind other kind of market access or approach uh you 43:32 43 minutes, 32 seconds know that allows us to better serve customers. Uh the aim of course is to make sure that we reach as many customers as possible. So wherever 43:41 43 minutes, 41 seconds required a combination of channel partners, our own people uh you know or any other form that allows us to serve customers better, we'll keep exploring. 43:52 43 minutes, 52 seconds Okay. So that's it from my side. Thank you so much. Thank you. 43:57 43 minutes, 57 seconds Thank you. The next question is from the line of Rajiv Jen from Arkin Investment. Please go ahead. 44:05 44 minutes, 5 seconds Hello. Thank you for the opportunity. So I just have couple of questions. So starting with uh so consolidated 44:12 44 minutes, 12 seconds investments now stand at over uh 1,100 crores with a net cash position of around about 202 K at standalone level. 44:21 44 minutes, 21 seconds Uh whereas capacity utilization remains at uh more or less 70 to 75%. Given this balance sheet headroom and underutilized 44:30 44 minutes, 30 seconds asset what is the framework guiding the choice between organic capex uh perhaps inorganic capex as well and shareholders distribution? Could you throw some light on that? 44:41 44 minutes, 41 seconds Yeah. So, just help me understand your question a little better. Um, so I can I can respond appropriately. You know, you 44:48 44 minutes, 48 seconds said uh 1100 crores and 202 and 70 to 75%. So, can you just repeat? 44:56 44 minutes, 56 seconds Uh so what I meant was uh that we have net cash position of around about 1,100 45:01 45 minutes, 1 second crores and uh at a stand at a standalone level we have 202 crores 45:11 45 minutes, 11 seconds on cash position and 70 to 75% utilization rate. So we have enough headroom. So I just wanted to know uh 45:21 45 minutes, 21 seconds that what would be our choices between organic apex and inorganic opportunities if you could throw some light on that. 45:28 45 minutes, 28 seconds Yeah sure. So uh you know the uh product areas wherever there are opportunities you know where we have capacities available and this has happened because 45:37 45 minutes, 37 seconds of the cyclicity of the business that in some years we have had uh very high utilization in certain products whereas 45:45 45 minutes, 45 seconds in years that follow the utilization drops. uh the other thing as I was uh uh you know helping you understand as well 45:53 45 minutes, 53 seconds that we compete sometimes we compete with Chinese companies and there are supply chain disruptions like the ones we are seeing today in in these kind of 46:02 46 minutes, 2 seconds situations it's always an asset to have additional capacity available so that 46:09 46 minutes, 9 seconds customering is uh you know u done as appropriately and we don't miss out on opportunities because that keeps 46:16 46 minutes, 16 seconds happening in this business. So, uh that is one part between uh our own 46:24 46 minutes, 24 seconds investment versus uh you know inorganic capex as you as you uh asked. So wherever there is a strategic 46:31 46 minutes, 31 seconds opportunity for us to either acquire some kind of technology or market access or a combination of these two uh you 46:39 46 minutes, 39 seconds know we that's that's the uh uh sort of uh way we would look at any kind of uh 46:47 46 minutes, 47 seconds inorganic opportunities and uh as far as the organic opportunities I already explained you know where the key strategic areas that we have for the 46:55 46 minutes, 55 seconds company and we will continue to explore those areas wherever there are uh you know growth opportunities and sometimes this could be through new products as we 47:03 47 minutes, 3 seconds have already disclosed in some of our earlier uh you know calls as as well as disclosures or this could be contract manufacturing type of opportunities 47:12 47 minutes, 12 seconds where you know it's specific to certain customers and products understood sir understood uh and the 47:21 47 minutes, 21 seconds secondly our consolidated pack is almost 2.3 crores higher than the standalone for 2026 6 and our consolidated 47:31 47 minutes, 31 seconds investments are around about 1,000 cr uh versus 455 cr as a standalone level. So uh could you please help me understand 47:40 47 minutes, 40 seconds uh what are our key subsidies or associates contributing to this delta and the strategic intent behind holding such a large investment book at the consolidator. 47:51 47 minutes, 51 seconds So I'll request uh our CFO Mr. Dindra to respond to this question. So the investments uh what you mentioned uh 48:00 48 minutes [clears throat] is mostly the uh long-term investments and uh we receive dividends and other income interest 48:08 48 minutes, 8 seconds income from those investments and that's the delta between the standalone uh profit numbers P numbers and the 48:15 48 minutes, 15 seconds consolidated numbers and these are held through our subsidiary. 48:24 48 minutes, 24 seconds Yes sir. Is that the one you're referring to? They sell through Kaml Jot which is a 100% subsidiary of the company. 48:32 48 minutes, 32 seconds Understood sir. Understood. 48:34 48 minutes, 34 seconds Uh all right sir. Uh thank you. That's all from my side. Thank you for answering question. Thank you. 48:43 48 minutes, 43 seconds Thank you. In the interest of time that was the last question for the day. I now hand the conference over to Mrs. 48:49 48 minutes, 49 seconds Zawishov for closing comments. 48:57 48 minutes, 57 seconds Uh thank you for your time and engagement today. We are pleased with the progress we are making and remain committed to delivering on our promises. 49:06 49 minutes, 6 seconds Our teams are energized, our strategy is on track and we are excited about what lies ahead. Uh we look forward to updating you at our next con call. Thank you very much. 49:18 49 minutes, 18 seconds On behalf of Excel Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.