EPIGRAL LTD (NSE: EPIGRAL) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Maulik Patel — Chairman and Managing Director
Rakesh Agrawal — Chief Financial Officer
Kaushal Soparkar — Executive Director
Analysts:
Unidentified Participant
Meet Vora — Analyst
Deepesh J. Sancheti — Analyst
Rohit Sinha — Analyst
Pranav Jain — Analyst
Nipun Sharma — Analyst
Manish Bhadane — Analyst
Ashish — Analyst
Hemkesh Khattar — Analyst
Pujan Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Epigrel Limited’s conference call hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to meet Vora from MK Global Financial Services Limited. Thank you. And over to you sir.
Meet Vora — Analyst
Thank you. Good evening everyone. Thank you for joining us on Epigrel Limited’s Q3 FY26 results conference call. We would like to thank the management for giving us this opportunity to host them. On this call we are joined with Epigrals management represented by Mr. Maulik Patel, Chairman and Managing Director, Mr. Kaushal Soparkar, Executive Director, Mr. Rakesh Agarwal, Chief Financial Officer and Mr. Milin Kotecha, Investor Relations. I would like to invite Mr. Malik Patel to initiate the proceedings with his opening remarks post which we will have an interactive Q and A session. Thank you and over to you Sir.
Maulik Patel — Chairman and Managing Director
Thank you, Meet. Good evening everyone. Welcome to the call to discuss Epicurus Quarter 3 FY26 performance. I believe you had an opportunity to view the earning presentation that was released earlier today. The chemical market currently exhibits mixed performance with some segments achieving robust growth while others grapple with slower recovery due to a prolonged monsoon and persistent geopolitical uncertainty. Few segments in particular drove weak quarter on quarter performance despite year on year gains from the low base amid challenges like muted exports, stalled U S India trade progress, low realization, utilization and tariff impacts. Nevertheless, outlook indicates improved performance in coming quarters supported by strengthening demand fundamentals and gradual recovery across the key sectors.
In quarter three FY26, revenue grew marginally by 2% sequentially through volume remained largely flat versus the prior quarter. The derivatives and the specialty business contributed 52% of the revenue up from 50% last quarter. The first half of quarter three FY26 faced headwinds from the prolonged monsoon, pesty season disruptions and plant maintenance, but volume picked up strongly from mid November onward. We expect this positive momentum to persist in future quarters. EBITDA margins contracted to 17% in quarter three FY26, pressured by lower realizations, rising raw material costs and higher cost inventory. However, over nine months FY26 we sustained margins at 22%.
With the monsoon now over and plant maintenance complete, demand is recovering. We have seen volume pick up since mid November and expect sustained growth ahead. As utilization improves, overall performance should strengthen further. Our CAPEX projects to double capacity at the cpvc epichlorohydrine and wind solar hybrid power plants are progressing on schedule and remain on track for commissioning within the announced timeline and budgets. This will support diversification targeting 70% revenue contribution from the derivatives and specialty business as we have committed combined with the Chlorodolin value chain Commission in March 2025, the position us for strong growth from FY27 onwards.
For our new projects, we are finalizing CAPEX plans expect to announce details in the coming months. This initiative will enhance our integrated complex and extend the value sale. They are set to drive significant growth from FY29 onwards. In line with this plan, the team remains focused on scalable profitable growth, strengthening our integration and driving value for all stakeholders. We are advancing with clarity on milestone capital efficiency and disciplined execution to deliver sustainable growth as we expand capacity and capabilities. I now hand over to the call to Mr. Rakesh Agrawal who will take us through the financials.
Rakesh Agrawal — Chief Financial Officer
Thank you Molly. Let me take through Q3 numbers. Overall plant iteration stood at 78% similar to previous quarter and 81% in the clustering previous year. Quarter on quarter we witnessed volume growth but as product mix improved resulting to revenue increase of 2% to 603 crore. Revenue contribution for derivative and specialty business stood at 52% versus 50% in the previous quarter. EBITDA dropped by 22 to 103 crores. As realization for the few products dropped, there were increase in raw material prices and high inventory costs. PAT stood at 39 crores versus 51 crore in previous quarter. It includes one time expense related to sales, river labor code and for Q9 above 26, plant utilization stood at 76% versus 82% in the corresponding period resulting in drop in revenue by 7% to rupees 1807 crore.
EBITDA stood at rupees 398 crore with margin stood at 22% versus 28% in the corresponding period of previous year. This dip in margin was on account of drop in realizes and increase in raw material cost. Recommissioned the Chlorodolin value chain plant in March 2025 and it is expected to contribute sizable to profit and loss account from financial year 2027 onwards. Once the plant starts generating sizable revenue, overall profitability should improve. ROCE stood at 70% as on 31st December 25th. If we exclude capital working progress then our ROC stands at 20% as on 31st December 25.
Net debt to EBITDA stood at 1x as on 31st December versus 0.8x as on 31st December 24th. And hence we are in very comfortable position over there. Our net debt stood at 557 crore versus 531 crore as on 31st December 24th. And during the year we spent capex of rupees 337 crore. And our capex plants are moving as per schedule. We witnessed utilization level improve from mid of November and we expect that momentum to continue in coming quarters as well. Hence we expect overall performance to improve from here on. With this we can now open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star N2 participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dipesh. Jason Chetty from Manya Finance. Please go ahead.
Deepesh J. Sancheti
Hi, am I audible?
operator
Yes, you are audible.
Deepesh J. Sancheti
Okay. Now we are expanding the cpvc. Almost doubling the capacity of cpvc. But Reliance and Adani are coming up with huge capacities by FY2. 28. What is your view on this? Will it put a margin? I mean will it put a pricing pressure and realization pressure?
Maulik Patel
So what’s the name? You know Reliance. I think they are coming up with small capacity right now. I think around 11 KTA. That’s what I know right now. Which is they are going to commission in this year and Adani has not announced yet. That’s what we know in terms of the ppvc definitely they are coming with the big capacity of PVC plant. Both the players in a big way. But the CPVC capacity is not coming with the big capacity. That’s what we hear so far from the market and what they have announced so far in the market. Yeah.
Deepesh J. Sancheti
Okay, so I mean, but in K. I mean you don’t. So you don’t see any pressure right now. There is no pressure on the CPVC prices.
Maulik Patel
Oh, CPVC prices. The pressure is there. It is because of the PVC prices has gone down substantially in last four months, five months. But it is bottom out now. Everyone knows that the PVC prices have Started going up. So we see the prices are going to improve from this quarter onwards.
Deepesh J. Sancheti
Okay, you mentioned that there was a temporary pressure or. Sorry.
Maulik Patel
So. No, I believe it is a temporary for particularly if you’re talking about the quarter C because this kind of situation was never seen in terms of the PVC pressure in terms of the pricing of the raw material and the CPVG also same time. And now the price of PVC is improving. So we see the improvement in the CPVC pricing going forward.
Deepesh J. Sancheti
Okay, so you, you mentioned that there is a temporary pressure of software realization on select products. Can you mention which products are these and why these temporary pressures have come in and how much of it, how much time will it take for this temporary pressure to go away?
Maulik Patel
So if I consider the overall chemical industries, you know the pressure was there in last I think nine months. The pressure was there because of the global situation is not doing great. And from I believe from this quarter onwards we see very positive signs in terms of the prices are now started moving upwards. Majority of the chemicals, not only the product which we are manufacturing but I see the demand has also started picking up at quarter three and quarter four. Normally it is on the hard side for us in terms of the consumption pattern. But also the prices are also moving, started moving upward globally mainly and then one of the major factor is China has announced 250 products.
They have withdrawn the rebate of the product. So I think globally and other petrochemical products are also going up. So all commodity prices are going up. So all chemical prices also started moving slowly going up from this quarter onwards. But the last quarter we believe that it is. It was the bottom out situation for majority fines, majority of the chemical manufacturing products.
Deepesh J. Sancheti
You don’t see any pressure coming? I mean by FY27 you think all the pressures will vanish on all the products or do you see any, I mean any pressure coming on some other products still?
Maulik Patel
So I would say for the next financial year from this quarter onward the situation will be better compared to the last nine months that what we see from going forward in terms of demand also in terms of the pricing also that’s what we can see. But individual product to product, it may differ the timeline but definitely compared to last six months everything will on the improve. It is going to be on the positive side, you know.
Deepesh J. Sancheti
Great. Thank you so much.
operator
Thank you. The next question is from the line of Rohit Sinha from Suniti Securities. Please go ahead.
Rohit Sinha
Yeah, thank you for taking the question. So first of all just wanted to know what, what was the ECU for last quarter and this quarter.
Kaushal Soparkar
The ECU for this quarter is around 29,000, 30,000 and it has been almost similar to last quarter, marginally 502,000 rupees down.
Rohit Sinha
Okay. Post December have we seen any correction in ECU or it is remaining that similar range.
Kaushal Soparkar
It is in the same range and I guess it will be around 30, 31,000 kind of a thing in the coming months as well. Looks like.
Rohit Sinha
Okay, some. Some bit of improvement is there. Got it. Secondly, on the chlorotoluene side, as we have commissioned in last year March now till now, what kind of utilization we have reached and as although we already have indicated that FY27 would be the year where we’ll see meaningful contribution, but still just wanted to know how we are progressing in that in terms of utilization levels.
Kaushal Soparkar
So in Fluoro tollumes if you see the volumes are increasing like on month on month as well as quarter on quarter. But again it’s. It is not reached a sizable number to give any kind of percentage of utilization. Maybe once the next quarter that is from Q1 we are expecting it to contribute in a sizable way. So at that point of time we might be able to share some sort of number, but nothing as of now. But it is improving on a month, on month and quarter on quarter basis.
Maulik Patel
So in terms of volume we are not able to achieve. But in terms of approvals of the customers we have achieved quite a bit and quite number of products. We got approval from the end users and they have started using it. And I think we are going to get advantage in terms of the. China is also going to reduce the export benefit. So I think this will have a positive impact on this line of products also going forward. And also the currency situation is also changing in China. China currency is appreciating and Indian currency is depreciating.
So that has also an impact of the local manufacturing going forward in this kind of products.
Rohit Sinha
And in chlorodolin. I mean as of now since we are gradually progressing so these whatever volumes are going, these are more or less kind of samples only or we have start delivering some orders for the customers or just I mean sample kind of things only.
Maulik Patel
It is not a sample, it is actual delivery on a full truckload basis. But the people change the volume and once they started using slowly and gradually they will transfer the order to the domestic players. So overnight they don’t stop supply from where their supply chain sources are there. So that confidence will take time. That’s why it is getting delayed. But it’s not about the sampling, it’s actual delivery.
Rohit Sinha
Got it. And these orders would be what short term orders or would be six month one year kind of contract with the customers.
Maulik Patel
So currently as millionaires mentioned actual substantial number will start from the FY27 onward. So we are expecting the major orders will start coming and major timeline with the timeline and with the long term contract also in terms of volume will start coming from the FY27 onwards. So far they are testing and trying and the confidence once they get it then only they will place long term. So right now everything is on the quarterly basis only.
Rohit Sinha
Oh and one last question on ECH side I mean, I mean earlier we were seeing price increase because of rising listen prices. So how. I mean the pricing has been there for ECH and ETH also has a I think a significant export contribution. How that has been affected or worked out in this quarter.
Maulik Patel
So ecs yes you are right because of the glycerin price is going up. The ECH value is also going up because 65% of the world demand is converted to the glycerin based ECH globally. So yes globally the ECH price has gone up and you know the trunk is not supporting the biodiesel project and the glycerin is a byproduct of biodiesel. So you know the glycerin price is going to remain high till the power diesel are not getting supported by the global leaders.
Kaushal Soparkar
So we tend to believe, I mean in the current quarter and also coming Tamil this is kind of a new normal which will continue.
Rohit Sinha
Okay, okay. And. And any export revenue got impacted or still we are doing similar kind of export volumes because of this US angle or anything.
Maulik Patel
US was not a major for us for the epic chloride particularly the exports overall volume is remain almost same as last quarter in terms of volume for the overall products. But yeah European volumes have affected last quarter but I think it is coming online right now because some of the manufacturers of epichloridane have decided to close their permanent plant because of the current situation is very tight in Europe. So that advantage may come in the coming years probably to the Indian manufacturers.
Rohit Sinha
Okay, okay. That’s it for myself. Thank you.
Maulik Patel
Thank you.
operator
Thank you. The next question is from the line of Pranav Jain from HLS Capital and Finance. Please go ahead.
Pranav Jain
Good evening. Thank you for taking my question. Just a couple of questions post on CPVC and on the similar lines for ECH as well. Even though now we like you said the prices have bottomed out and you know they’re slowly going up. But the over capacity that has been persistent and that has been there with our competitors, also increasing capacity with our customers, backward integrating into the making of ECH or cpvc. So in that sense, how you, you know, how you viewing the scenario? Because we are essentially doubling our capacity in both of these segments.
So will we be suffering from over capacity? What kind of capacity utilizations can we expect on the enhanced capacity?
Kaushal Soparkar
Yeah, so see when, I mean again, whenever we put any plant, either it’s for ECH or cpvc, our perspective is considering the demand growth that is expected to come in next five to seven years. So considering current situation, the. The demand is also growing into ECH and cpvc. So we don’t see much of a kind of a pressure. But yes, it can happen that when we commission our plant, which we’re expected to do in kind of a September 26, so maybe for initial six months or a year’s time, we have to run our plant at lower utilizations.
But eventually, considering the growth which is expected into the epoxy, which will lead to growth in ECH and in terms of real estate, which will drive the growth in cpvc, we tend to believe that maybe matter of one or two years, we should be able to run our plant at optimum utilization levels even after considering the new capacities which are coming because growth in India is there, which will definitely absorb the capacities that are coming. So whoever, or including us, if we are putting a plant, we have thought of the growth that is going to come in terms of demand.
But yes, it can be like one year here and there. And in that particular year we might have to run up onto lower utilization. So we live with that. But it’s not going to happen that that’s going to be there for like four, five years. It’s a matter of one or two years.
Pranav Jain
But can you, you know, like not to quote you on it, but can you just give me a brief range that we can expect with respect to our capacity utilization for both these segments for FY27 or 28, whatever.
Maulik Patel
You know, it is very difficult to predict because in the chemical plants people announce the date of commissioning, but normally it is not happening on time. And once they start the plant, the teaching problems and everything, how much time they are able to resolve and how much time they are able to commission their capacity, that is also timing we cannot predict. So based on that, it keeps changing. If you noticed the past announcements and past records every chemical company has announced, these timings are not able to match and Based on that I think it is difficult to predict exact when it is going to happen and why it is going to happen.
But yeah, normal this situation will come going forward.
Kaushal Soparkar
But as a management what we anticipate is that like what happened in FY26 of the last nine months or six months that was because of the prolonged monsoon and also the early monsoon and also the demand was bit subdued but now it looks the demand has been pick up. So it looks like that the coming quarters or the coming months will be much better compared to what it was last six months or nine months.
Pranav Jain
But not even like a base case so that we can understand like will we be utilizing 75,000 tons of the 1 lakh 50 of CPVC? Just a random number, just a base case scenario that the management might have thought of.
Maulik Patel
So probably our budget exercise we are going to start probably from this month onwards. So probably it will clear probably by March it will be clear more about the next year.
Pranav Jain
Yeah, understood. And just to understand on you know Astral doing their own CPVC is it how. How difficult is it to set up a plant of cpvc? How capital intensive is it? Can the other CPUC pipe guys like Supreme Prince also do this which may you know cause us more harm.
Maulik Patel
See that is difficult to comment while others might will do it. You know definitely it is a difficult and it is a different compared to. Compared to the pipe manufacturing facilities and the mindset this is a B2B kind of mindset and that is B2C. So I don’t know how people are thinking and how they will commission this plant. But yeah, so every, every plant has a. Definitely they will once they announced I think they will do it. But how much time it will take and when they are going to commission It’s a question mark because every new manufacturing has a.
Has a learning phase. So how much time they are able to resolve the problem and commission the successfully and reach to optimization level that the time will tell. But yeah, as you rightly said everyone can think of it if Astral can think of it. But normally people wanted to focus on the B2C part of the business rather than going into the B2B business who are already focusing the customer B2C kind of business. Normally they don’t think like that like the five people even the pinot except phenol X they don’t have the PVC manufacturing facility.
Pranav Jain
Understood. Okay, I got it. On the CPVC side just one last question. On the ECS side will we ever consider forward forward integrating into Epoxy.
Maulik Patel
As of now we have no plan to going into the forward integration because we find it ECS has enough demand going forward and the growth will come from the capacity expansion which is happening recently in the epoxy business. So as of now we are not taking anything on the epoxy side.
Pranav Jain
Thank you so much for taking my questions. All the best.
Maulik Patel
Thank you.
operator
Thank you. The next question is from the line of Nippon Sharma from VLS Finance. Please go ahead.
Nipun Sharma
Greeting everyone. So I wanted to know the bifurcation for the revenue for this quarter in terms of volume sold as well as the realization for the products. So did the volumes go up for this quarter as compared to last year’s quarter or even the previous quarter? And what about the average, the venue for each products? Can you comment upon that?
Kaushal Soparkar
So see, in terms of the overall volume compared to last quarter, it has been almost kind of a flat or marginal kind of a growth. But in terms of product wise, revenue is not something that we share. So I won’t be able to share any data on that.
Nipun Sharma
Okay. Okay. Because last quarter it was cpvc Caustic soda and I believe hydrogen peroxide whose realizations were low. So what, what is the situation right now for them?
Kaushal Soparkar
So it has been in the same kind of a range. Nothing. I mean maybe 1,000 here and there, but not a major movement in terms of the realization.
Nipun Sharma
Okay, okay. And talking about hydrogen peroxide, the realization last quarter was low because I believe I might be wrong. There was several imports from Bangladesh. So what is the current scenario? Can you comment upon that?
Kaushal Soparkar
It has been the same situation. See, the import is coming from there and we are also selling in India. And again there is a good demand for that. So in terms of demand there is no change there. In terms of import from Bangladesh that is also no change. And the prices also remain in the same range.
Nipun Sharma
Okay. Okay. And any new update on the new chemistry that you were, you know, talking about in the previous phone calls? Any expected date that when it will be announced?
Kaushal Soparkar
So we are on the advanced stage in terms of finalizing, finalizing a few things on that line. So maybe once it is freeze, I will be able to share. Before that it’s difficult to share anything on that news because it is not in public domain.
Nipun Sharma
Understood. And my one last question, I read it somewhere that Epitome has been, you know, making a pilot plan for CPVC pipes. So are we planning to, you know, forward integration into CPVC pipes for the future? No.
Maulik Patel
So we already have a pilot plan for the pipes, but that is for the our internal development of the CPVC regime in terms of the quality and it is for the CPVC compound what we are manufacturing for our customers for that testing purpose. But as you. As you understand, right, we know we are building up a pilot plan right now but that is. That is mainly for the. To serve our customers in the chlorotolunates derivatives and for the future products as well as for the CPVC also. So combined we are building one pilot plant right now in our campus just to support the downstream and the improvement in terms of the quality.
And when you launch a product I think you can do the sampling much more advanced from the pilot plant and you can. So that is much easier in terms of rather you spend on the full scale plant and then you start sampling to the customer. So that we understood and we wanted to reduce that timeline going forward in the future and that’s why we are building up a one pilot plant. But that’s what’s common for all the products. It’s not particularly for particular chemistry. The thing which you mentioned about the cpvc we already have a pilot plant for the pipe but it is not for the.
We wanted to go in the pipe manufacturing but just for the internal testing in the parameters and the further for the compounding facility.
Nipun Sharma
Okay, understood. Thank you for answering my questions and best of luck for the future.
Kaushal Soparkar
Thank you.
operator
Thank you. The next question is from the line of manish banana from 361 Capital. Please go ahead. Manish, your lies in your line is unmuted. Please proceed.
Manish Bhadane
Thanks for the opportunity sir. As I mentioned in the PPD presentation that there is some repellence from the. From the software realization of the silic products and also there is some raw material increase in the cost. So for which product this increase in the raw material and the realization job.
Maulik Patel
So it is happened because of the PVC price was going down drastically in last six months and because of the high inventory and low offtake during the monsoon time we have a higher capacity of PVC in the stock and that was the major reason in terms of the inventory call high inventory cost.
Manish Bhadane
So basically you are saying that the software realization has happened only in the CPVC and not for the other products.
Maulik Patel
Other products? Yeah, it was not a major issue but cpvc it was a big, a big gap in last four, five months time in a very short period of time.
Manish Bhadane
Okay, we got it for it. Thanks.
operator
Thank you. The next question is from the line of Ashish from LEO Capital. Please go ahead.
Ashish
Hi. So my first question had to do with I Wanted to understand the demand supply dynamics around caustic soda in India. Are there any new capacities that are coming in over the next few years and if so, how viable and how viable are imports into India? Is this a long term risk?
Maulik Patel
Okay, yeah. Ashish, you know the costing sort of planned, you know in the current situation like the Adani and the Reliance is building up a big capacity including the forward integration of pvc. So the chlorine is completely utilizing the PVC and the caustic will be accessed. So going forward we see the caustic price will come down and the chlorine price will go up going forward once the plant will commission because everybody, as I mentioned the plant is they announced big capacity but they gradually they commission the plant because entire kind of big capacity is difficult to commission at the time.
So slowly and gradually and the Indian demand is also increasing. So we don’t see the problem in the chloro alkal industry. But the dynamics of the caustic and the chlorine might change going forward slowly and gradually but it will take time. You know currently it is under construction and I think when it is going to commission is yet to be seen going forward. Yeah.
Ashish
Okay, thank you. Thank you. On secondly, on the CPVC side, I know you mentioned that post commissioning in Q2FY27 possibly you expect that one year of subdued utilization post which you expect utilizations to pick up because of real estate growth. So I wanted to understand the demand dynamics around market dynamics around that. So how much is imports currently? How much is demand fulfilled inside India and how much do you expect this to grow?
Maulik Patel
So India, you know we analyze normally every year but you know the TPVC consumption has also gone up this year. Also in terms of volume we’ll come to know in the March end but last quarter is very peak normally for the pipe industry. So we’ll come to know in the March in terms of volume there is a growth even in such kind of time where the monsoon is prolonged and the market has affected quite a bit. This year still there is a growth in the CTVC in terms of the volume. But compared to previous years there was a slow growth in last year.
But we are expecting going forward, as you rightly said, that the real estate growth is going to continue and then we see the more growth going forward because the CPVC and the PVC price difference was little less of compared to previous time. So we see the more faster growth in coming years in the CPVC industry going forward.
Ashish
Can you quantify this CPVC from The management’s perspective because you are expanding capacity there.
Kaushal Soparkar
So CPVC demand would be somewhere in the range of around two 80,000 tons. I mean that would be we are expecting by end of this year there are 34. So every year we expect that to go in the range of 10 to 12%. So considering when we have a cap, when we will be coming with our capacity, maybe next year we’ll end up with around 3 like 20,000 tons of demand. So considering that we see that even the supplies that are coming will be eventually absorbed by the demand that is growing. So maybe six months or one year can be here and there but eventually the growth in the CPVC market because we expect the CPVC demand to reach 5 lakh by FY20, 30, 29, 30.
So and this is just a plumbing application. So and that will happen. So eventually the all the supplies that are coming will be absorbed. But again one year can be here and there. It cannot be like a steady growth of 10 to 12%. So this year was that kind of a situation. But we believe that considering demand it will be absorbed whatever supply that we are bringing.
Ashish
Got it, Got it. All right, thank you. Thank you so much for taking the question.
operator
Thank you. The next question is from the line of Hamkesh Khattar from Green Portfolio. Please go ahead.
Hemkesh Khattar
Good evening sir. Thank you for taking my question. My first question is regarding the CBBC basically on the margin side. So our margins have taken a significant hit of like coming down to 17%. So when do you expect the margins to go back to the normal 24, 25%.
Kaushal Soparkar
As we have earlier conveyed in our opening remarks as well this quarter was impacted because of the high cost of inventory and also the realizations for the product has cooled off. So considering that we believe that Q3 was impacted in that manner. But Q4 onwards we believe believe that the margin will be uptick. But again we believe that it should be in the range of kind of a 21 to 23 or 25%, 20 to 23% kind of a range. So it the things will be better in Q4 onwards. It looks like as of now considering the prices of PVC going up and also the CPVC prices where it is okay.
Hemkesh Khattar
And is there expectation of increase in revenue also?
Kaushal Soparkar
Sorry, yoy basis. So yeah, because see for in FY26 the volumes were low because the first half was actually muted because of early and prolonged monsoon and also because of subdued demand. So we believe that FY27 definitely we will have a good volume growth as well okay.
Hemkesh Khattar
Basically the management earlier did mention a sizable revenue expected in FY27. Could you tell in terms of like. Percentage what in the overall revenue profile, what percentage of revenue are you expecting to come from that segment?
Kaushal Soparkar
As earlier we said that we are in the stage of getting approvals and the contracts will get formed from the first half. I mean the quarter one of FY27. So maybe that would be the right time to convey any number on this rather than committing now.
Hemkesh Khattar
Okay. And regarding the margins, so you expect the margins there to also be in the same range of 21 to 23 or a little higher.
Kaushal Soparkar
It should be overall in the range of 20 to 23% kind of thing.
Hemkesh Khattar
Okay, thank you so much.
operator
Thank you. The next question is from the line of Pujan Shah from Molecule Venture. Please go ahead.
Pujan Shah
Hello. Am I audible?
Kaushal Soparkar
Yes.
Pujan Shah
Yeah. So sir, my first question pertains to the PC piece and PGC side. So understanding we have been hearing of on the PBC that on the domestic industry there might be implementation of MIC now just wanted to understand if that happens and the base case scenario would be around 800 to $850 per ton. So and the global level might not be trading at such a high price. I understand the price has been bottoming out but might upper end would be sustainable around 750. So do you feel that we can have some pressure in terms of margins in the CPVC side going forward?
Maulik Patel
So you know definitely as you rightly said that PVC price is going up so the CPVC will catch up as the increased price of the PVC also going forward. But yeah, there was always a lack of increase probably a one month or one and a half month kind of. It’s always in all kind of products but definitely it will catch up the price increase of PVC by the CPVC also going forward.
Pujan Shah
We wanted to understand about the right now the situation. We understand this quarter we have been specifically impacted due to higher inventory of CPC but we. So let’s suppose the price of the PVC has been in downward trend and so might be we have refilled the inventory of PVC so that would be benefit in Q4 for the specific quarter understanding. Let’s suppose if PVC increase prices from here on of let’s say 10% or 15% or
Kaushal Soparkar
see if you see in Q3 it was impact because we were having a high cost of inventory whereas the CPVC prices had gone down in line with the PVC prices. Considering current situation and the things enough I think the Q4 will be better off compared to Q3. In terms of the specific in the CPVC margin case, that is one thing. Secondly in considering, as Malik earlier said, whenever there is an increase in the raw material prices, we are able to pass on in the finished good prices as well. But yes, that can happen with the lag of a quarter.
Now hypothetically 10% rise how much it will take, how much time it will take to pass on in the CPVC that to our estimate generally takes a quarter’s time. But I guess any increase in the PVC prices would be able to transfer to the CPVC prices with a lag of a quarter.
Pujan Shah
And so what is the current chlorine utilization percentage as of in for Q3?
Kaushal Soparkar
So as of now chlorine integration is around 70, 75%.
Pujan Shah
Okay, so considering so ECU what we have been speaking out is 29,000, 30,000. And considering so what could be the negative chlorine pricing right now?
Kaushal Soparkar
So chlorine currently negative is around 7,000, 7,000.
Pujan Shah
So basically if we have that integration in the space, so why we have been suffering in terms of issue because I was suffering from dumping from China or it is the ideal capacity been built in India that has been impacting the ecu.
Kaushal Soparkar
I didn’t get your question.
Pujan Shah
Yeah, so let’s suppose ECU is trading at 30,000 and our integration closing integration is 75%. So broadly we have been negative 25% only we have been throwing out a negative 7,000. Right. So ultimately what I’ve been trying to understand is why our issue has been impacted so much. Considering the scenario that rupee has been depreciating. So dumping if there will be a dumping ground also the rupee depreciation might help us. So trading at low ECU or we have been impacted by the lower ecu, what is the case right now?
Kaushal Soparkar
It doesn’t work that way. First of all ECU the formula is very clear in terms of caustic sales minus chlorine prices. So it’s not that whether we are integrated. So that’s why we should have a better ecu. That’s a simple formula. Irrespective whether we consume in house or we sell outside, that is one thing. Secondly in terms of the import. So import of caustic is not something which is majorly coming in India. In fact India is a net exporter in terms of caustic is just that the currently market was bit subdued because of which the overall ECU was in that level.
And considering the way it was supposed to grow, we believe it will be in the same range. It can go up, it can go down. But we, we expect that it should be at this level or it might improve from here on.
Pujan Shah
Got it, Got it. And my last question pertains to the CPC. So what is the current realization of CPVC?
Kaushal Soparkar
It is somewhere around 95 to 100 rupees a kilogram.
Pujan Shah
So it has been improved somewhere in this quarter.
Kaushal Soparkar
Yeah. Yes.
Pujan Shah
Thank you so much. I will join.
Kaushal Soparkar
Thank you.
operator
Thank you. The next question is from the line of Shabhanshu from Sharma and family. Please go ahead.
Unidentified Participant
Hello, I’m audible.
Kaushal Soparkar
Yes.
Unidentified Participant
First question is around that labor code implementation. So have we done an adjustment in our income statement this quarter or. No, I do not see anything specific. But in the beginning I think someone mentioned that we have taken. But I don’t see anything, anything very big in the income statement. So are we not getting a very big hit or. Or we will take it later on.
Rakesh Agrawal
We have already proved it and the amount is very small.
Unidentified Participant
Okay. It’s not fair. So CPVC license you mentioned it is around 95 to 100 per kg. This is roughly a little bit low, lower than last quarter.
Kaushal Soparkar
Yes.
Unidentified Participant
Okay. And what would be the relation for ECS right now?
Kaushal Soparkar
Sorry, what relation of what? So ECH. Okay. CH relation is ranging around 165 to 170.
Unidentified Participant
165 to 170%. And. And what would be the utilization of these ECH and PVC respectively? I believe last quarter maybe it was around 50% if I’m remembering correctly.
Kaushal Soparkar
So it has improved compared to last quarter. But it will be difficult to give you the exact utilization levels of each product.
Unidentified Participant
Okay, so it is 50% plus now.
Kaushal Soparkar
Yeah, definitely.
Unidentified Participant
And what about right now going into January, February, it’s. It’s on the uptrend now considering you mentioned that there’s a demand pull also coming.
Kaushal Soparkar
So we believe that in terms of the volumes, Q4 should be doing better. So definitely we see uptake in the demand from here on.
Unidentified Participant
And about that glycerine pricing going up, is most of the ECS glycerine based or the other. Or the other route is also significant. So like how is the dynamics played out there?
Maulik Patel
Except the very old facility? You know, normally all new plants are coming with the ring based only the propylene base is only on the western world and some portion is in Korea. Otherwise most of the plants are glycerin based. Now nobody is putting up a new capacity based on the propylene because it is not feasible in terms of CAPEX compared to glycerin based dca. So in Asia almost the pricing which is coming from, you know, it is based out of glycerin only.
Unidentified Participant
Okay. And if glycerin testes go up, then it’s reasonable to expect the DCS will also go up. Right. You mentioned lag of a quarter or something.
Maulik Patel
Yes, yes, yes, absolutely.
Unidentified Participant
Sure. And about the new chemistry, I think like can, can you tell which will it be like this financial or like by when will you be announcing it?
Kaushal Soparkar
So as I said earlier, we are in the advanced stage of finalizing things. So once that is done, we will announce. So we are expecting to announce maybe in a couple of months.
Unidentified Participant
Okay. So hopefully by the end of this financial year.
Kaushal Soparkar
Yeah, we expect that.
Unidentified Participant
Okay. Okay. That’s the tr. Thank you.
Kaushal Soparkar
Thank you.
Maulik Patel
Thank you.
operator
Thank you. Ladies and gentlemen. We’ll take this as the last question for today. I now hand the conference over to the management for closing comments.
Maulik Patel
Hello. In conclusion, I would like to convey that we are moving in line with our strategy through our expansion plans and diversification in terms of multi product catering, various industries. We are targeting consistent growth. I would like to thank you all for joining us here today. Please feel free to reach out our HR if there are still any answered questions. Thank you everyone for your participation. Thank you.
operator
Thank you very much on behalf of MK Global Financial Services limited That concludes this conference. Thank you all for joining us today. And you may now disconnect your line.