Anupam Rasayan India Ltd (NSE: ANURAS) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Anand Desai — Managing Director
Gopal Agrawal — Chief Executive Officer
Amit Khurana — Chief Financial Officer
Vishal Thakkar — Deputy Chief Financial Officer
Analysts:
Unidentified Participant
Krishna Patel — Analyst
Meet Gada — Analyst
S. Ramesh — Analyst
Rikin Shah — Analyst
Presentation:
operator
SA Ladies and gentlemen, Good day and welcome to the Anupam Rasayan India Limited Q1FY26 earnings conference call. 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 this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this call is being recorded with this. I now hand the conference over to Ms. Krishna Patel from ey. Thank you. And over to you ma’. Am.
Krishna Patel — Analyst
Thank you Samya. And good afternoon everyone. Welcome you all to Anupam Rasayan India Limited’s Q1FY26 earnings conference call. To take us through the results and to answer your questions. We have with us the management of Anupam rasayan Represented by Mr. Anand Desai, Managing Director. Mr. Gopal Agrawal, Chief Executive Officer. Mr. Amit Khurana, Chief Financial Officer and Mr. Vishal Thakkar, Deputy Chief Financial Officer. The discussions that we may have today may contain certain forward looking statements relating to the future events and future performance. Numerous factors could cause actual result to differ materially from those in the forward looking statements.
Please note the audio of this call is copyright material of Anupam Rasai in India and cannot be copied, rebroadcasted, attributed in press or media without specific written consent of the company. I would like to now hand over the call to Mr. Anand Desai, the Managing Director for his opening comments. Thank you. And over to you sir.
Anand Desai — Managing Director
Thank you, Krishna. Good afternoon everyone. I would like to welcome you all to the Q1FY26 earnings conference call of Anupam Hussain India Limited. During Q1FY26 consolidated revenue stood at rupees 491 crores registering the robust growth of 81% year on year. We strongly believe that the sectoral trends are in our favor and we are witnessing a clear resurgence in growth. Our pharma and polymer businesses are performing well coupled with recovery in agrochemical segment. The USA and Japan markets have shown encouraging trends for Alpha Rosine and during the Q1 FY26 total exports accounted for 58% of the total revenue from operations during the quarter.
The company signed a long term master purchase agreement with a Japan based multinational conglomerate. A global leader in fluorochemicals and advanced technology solutions. This agreement brings immediate as well as long term commercial value marking a significant milestone in our growth trending. Anubomous Ion is collaborating with this Japanese conglomerate to supply multiple niche molecules used across diverse applications. Including semiconductors, data centers and electronics. Several of these molecules are slated for commercialization this year with production running up from next year onwards. This collaboration not only highlights Amibam’s strength in chlorination and custom synthesis, but also reflects the trust global customers face place in our quality, manufacturing and technical capabilities.
Additionally, during the quarter the company signed letter of intent with Elight Innovations. A. European developer and supplier of electrolyte solutions for energy storage. A subsidiary of Fuchs known for its innovative lubricant solutions, Anubhav will be one of the first manufacturers to commercially produce this molecule in India, further solidifying our position in the rapidly growing EV and battery ecosystem. With the two new agreements signed with Japan and the US based multinational companies also, our order book now stands at 14,646 crores. On the working capital front, we have been making enmeshed efforts to optimize our balance sheet. We have already seen meaningful progress to receipts of advances from customers for inventory this quarter.
Overall inventory levels have also begun to follow a downward trajectory and we expect to see a considerable reduction in our working capital in the coming quarter. These initiatives will further strengthen our balance sheet and overall financial position, building on a strong Q4 performance and a robust start to FY26 this quarter. We believe our growth trajectory is firmly back on track with improved working capital efficiency recently signed Lois and the continued strength in our pharma and polymer businesses which further reinforces our confidence. We are confident and committed to delivering sustained and profitable growth. With this, I would now like to hand over the call to our CEO Mr. Gopal Agarwal to take you through the business and operational updates in greater detail. Over to you Gopal Bhai.
Gopal Agrawal — Chief Executive Officer
Thank you Anandbhai. Good afternoon everyone and thank you for joining us today. As Anandbhai highlighted, Q1FY26 reflects sustained momentum across our businesses. Our pharma and polymer segment continued to gain strong traction driven by ramp up of recent molecule launches and increasing customer demand. Speaking about segment wise performance, Life sciences related Specialty chemical contributed 88% of our revenue as on Q1FY26. Pharma segment revenue contributed 24% in Q1FY26 compared to last year where pharma contributed 15% of revenue. This translates to growth of 3x over last year on the back of ramping up of new molecules launched in 18 to 24 months.
Performance material contributed 12% of total revenue as on FY26 Q1 FY26 compared to 10% in Q1 FY25. This translates to growth of over 2x over last year on the back of commercialization of product under assumably signed contracts. We expect this segment to contribute further in our growth. With this I would like to hand over the call to our CFO Mr. Amit Khurana for a detailed update on financial performance. Over to you Amit Bhai.
Amit Khurana — Chief Financial Officer
Thank you Gopal Bhai and good afternoon everyone. Thank you for joining us on our earnings call. Today I will share the financial highlights for the quarter. An update on the capex all planned projects have been completed with plants commission and fully operational. Two plants have been commercialized with trial runs ongoing in one plant. About working capital. As Anand sir mentioned, a sharp reduction in inventory and consequently net working capital days is expected in FY26 starting from this quarter. This improvement will primarily be driven by execution of a substantial number of orders in Q2 which are being fulfilled using the existing inventory.
Another significant development is a receipt of 277.5 crore from preferential issue in July 2025 out of which 175 crore has already been used to repay term debt. With this the company is long term net debt free to our Deputy CFO Mr. Vishal Thakkar to share detailed quarterly and annual financial performance. Over to you Vishal Bhai.
Vishal Thakkar — Deputy Chief Financial Officer
Thank you Amitbhai. Good afternoon everyone and thank you for being with us today. I would like to share some key financial performance for the quarter before we open the floor for the question and answer session. I hope you have had the opportunity to review our detailed presentation and the results that were submitted to the exchange and posted on our website as well. Kindly note our numbers for the quarter are on considered basis and they include 10 fact as well. The consolidated financial highlights for quarter ended 30th June 2025. Revenue from the operations was at 486 crores as compared to 254 crores in Q1FY25 up 91% yoy.
EBITDA including other incomes was at 129 crores as compared to 59 crores in Q1FY 25 up 118% yoy. This translates to 26.3% EBITDA margin for this quarter. Profit after tax was at Rupees 49 crores as compared to 12 crores in Q1FY26 up 297 crores 97% y. This translates to a 10% PAT margin in in this quarter. If you look at the standalone financials for the quarter ended 30th June 2025. Company’s revenue from operation was at Rupees 316 crores as compared to Rupees 164 crores in Q1FY25 up 93% on a year. On year basis, EBITDA including other income was at rupees 99 crores as compared to rupees 43 crore in Q1FY25, up 133% yoy translating to an EBITDA margin of 31% for the quarter.
Profit after tax was at rupees 29.7 crores as compared to rupees 1.4 crores in Q1FY26. This translates to a patent margin of 9.3% in this quarter. Our top ten customers contributed 79% of our revenue from operations in Q1FY26. With this I open the floor for Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question comes from the line of Meet Gara from MK Global. Please go ahead.
Meet Gada
Hi, congratulations team on great set of numbers amid all these geopolitical events I have couple of questions. Firstly I wanted to ask that US has announced 25% additional tariffs on India plus some additional penalties which have come into effect by last week of August. So wanted your perspective Anand Bhai on how is that impacting the Indian chemical industry in the near term and what is your exposure to the US geography and how are you strategizing to mitigate those risks. I believe last couple of Lois in Q4 were with US based customers. What is your take on the execution of those alloys or contracts?
Vishal Thakkar
Meet, this is Vishal. Let me take this question. Meet. Thank you for the question and thanks for the appreciation of the effort of the management in performance. If we look at the situation in terms of tariff from the US one I think today a lot is fluid I would say and I would wait before makeup make a conclusive statement. But today if we look at it we believe that whatever the tariffs that have been mentioned today and right now interplay, I personally feel that those numbers will be reviewed and corrected. However, if you look at from any angle in terms of, you know, the competitive landscape in terms of alternate supply chain Supply chain geographies.
I think India stands fairly fairly stable in terms of its situation and in terms of its you know, competitive strength. That you know the there, there would not be any major meaningful impact coming in is my current assessment. Also if we look at from a Anupam specific perspective today the revenue last year our revenue from us was around in a lower single digit and we have signed an LOI and a contract. If you look at then I think we have, we have a very fairly robust order book order from the customer with the pricing agreed.
So to that extent we don’t see that. Also some of the products are already in the exempt list which we are, which we are planning to supply and there are. So to that extent we are far more comfortable and therefore we do not feel much of a challenge. There is and some of the other, other suppliers will have an anti dumping duty which, which may be, which may be the case but for us at least that is fairly, fairly comfortable from our perspective.
Meet Gada
Thank you. Second question I can you help me understand more on that long term master purchase agreement with Japanese conglomerate in terms of business segment value of the contract on annual basis and how many molec are covered within this agreement.
Vishal Thakkar
So right now if we look at we are working on more, more than five to six products with them. They’re largely in the polymer segment values. Right now they are under you know, evolution and right now it may not be the right time to share the the value but the only thing we can share is the kind of potential. There is a, there is a significantly large potential coming from the, from these molecules as they are in the special specialty polymer segment that are there. And this is a as, as we mentioned this is, this is one of the very large MNC in this segment which is into fluoro fluor fluoro side of the business.
Meet Gada
Got it sir. Next, Pharma revenues have been growing quarter on quarter from 25 crores in Q1 to 75 crores now in this quarter. Are these revenues part of LOI or they are non LOI based? Also the products which we are supplying are going into patented or non patent products and what are the therapies in which those intermediates cater to?
Vishal Thakkar
Okay, so if you look at our pharma strategy, the pharma strategy for us is more looking at input substitution in India and specifically addressing the KSM market. KSM space which is where, which is the space which is right now not you know, catered by the Indian player. Indian players India. In terms of pharma if you look at it Largely Indian players are more active in the the formulation so branded generics and also in the API space. But on the KSM side very few people, very handful of people would be, would be operating and that’s, that’s the market and that’s the market space that we are, we are focusing on two if you look at these are not the loi these revenues are not from, not of the LOI revenue.
These are, these are in additional revenue that you will see from, from here. And in terms of list last year we had you know launched. Over the last 18 months we had launched about 17 new molecules which are now ramping up to give us this revenue. And across segments like you know your CNS segment, it is across your statins, it is across your infectious disease so it is broadly across multiple therapeutic segments. But key thing that you have to appreciate is that these are all raw products which are really extension of our value chain. So what value chain we have today in terms of our chemistry and supply chain and manufacturing capacities we are leveraging those anyways for agro we have agro polymer and the similar ones are being utilized through an extension to use that similar supply chain to address the pharma market.
So we come from more chemistry and and and processes and, and ending up our finished product into the pharma segment.
Meet Gada
Got it. Sir, one question if I can squeeze in. So your performance material segment should be growing considering the revenues which you have signed recently. So what should be the contribution mix from this segment going in FY27 28.
Vishal Thakkar
Today also if you look at the performance segment is around just about 12 digit and we expect that that number should be would be around 15% to 20% this year. And as we go further this should go and end up around 2020 to 25% at least in next two to three years time similar to what we will see for the pharma as well. And.
Meet Gada
Okay sir, thank you so much for. Thank you so much for the questions.
Vishal Thakkar
Thank you Ms. Thank you.
operator
Thank you. The next question comes from the line of S. Ramesh from Nirmalbag Equities. Please go ahead.
S. Ramesh
Good evening and thank you very much and congratulations on your result. First is a housekeeping question. In the presentation the export share was mentioned as 48% but I heard Anandbai saying the exports here is 58%. So can you clarify that?
Vishal Thakkar
It’s a type of typographical error on the, on the presentation if that is 58 is the right number.
S. Ramesh
Okay so when you talk about the debt coming down there is an increase in the interest expense. So if you look at the reduction in long term debt, what would be the run rate for interest expense from the second quarter for FY26 and then if you look at your working capital reduction, how much is the existing inventory in value terms that is being used for your new orders from second quarter?
Vishal Thakkar
So let me answer the interest rate question or the debt question. So yes, my debt will be in the range of thousand crores by now. And as we go that number would tend to on a net basis tend to reduce as my operating cash flows kick in. For now you can look at around about, you know, around for the quarter. Yes, it will be in the range of 26 to 27. 27 crores are a quarter kind of a number or little less than that also will be the possibility. Yes, right now it is this. And, and, and let’s see from there.
Right.
S. Ramesh
Okay. So when you talk about using the existing inventory for the new orders starting this quarter, can you quantify the value of the inventory so that you know we get a sense of how, how much the inventory will come down relative to the ramp up in the.
Vishal Thakkar
Are you talking about this quarter or are we talking with the year or. We are talking about. No.
S. Ramesh
You made a mention that you’re going to use existing inventory for ramping up a new order. Right. So whatever revenue you get, you’ll be. On the existing inventory. So your in inventory days come down. So if you can quantify the value of the inventory to be used and what is the kind of revenue expect on a steady state basis from these orders, that’ll help us understand how will you working out look like.
Vishal Thakkar
So in, in by the year end we are looking at let’s say around about the kind of a working capital cycle that we saw for 2024.
S. Ramesh
Okay. So when you talk about this new order using existing inventory now you have several orders to start being executed this year from our CY 25 by 26. So these orders will be executed in the next few quarters. How is the receivable and inventory cycle compared to the existing business? In terms of number of days, what would be the reduction?
Vishal Thakkar
Sorry, I didn’t get you. Can you please tell me.
S. Ramesh
No. In terms of incremental growth in revenue, so there’s an existing revenue and working capital profile. Right. So in terms of the new orders being executed over 20th of the loading schedule given for the execution of the new order, what will be the receivable days on inventory days in terms of, you know, incremental impact on the balance.
Vishal Thakkar
The incremental impact as I’m saying I’m talking with a net basis. So all the, if you, if you look at it my, my, my as we, as we go forward I will be able to use my, my, my part of my inventory to liquidate and and and and and convert it into sales which would mean that my absolute number also should come down second. Also. Receivables also which were extended are also going to contracts in terms of days. So if you look at it, the cycle of my cash conversion is going to shrink and reduce. That is the first focus that I want to achieve. Second, as I mentioned over the year we should be looking at coming back to a working capital cycle of what we saw in 2024. And in terms of absolute. Yes, there will be few one, you know, there’ll be reduction in terms of few hundred crores of working capital intensity. Working capital in absolute term also should be, is what we are, we are, we are looking at.
So it’s a combination of, it’s a combination of sales increase and reduction in working capital. And as we go there are two parts as we discussed earlier also that pharma will have a little longer receivable cycle compared to agro and polymer versus pharma will have a lesser inventory intensity compared to pharma and polymer. Net net. Eventually we should end up with a networking capital over next two years kind of a time frame in the, in the range of 180 days. Kind of a target that we have been been having for us 180 to 2.
S. Ramesh
Okay. So yeah, you mentioned the yoy numbers for pharma and personal performance. Can you see the similar number for. Last year 1 to 20 and personal care.
Vishal Thakkar
Okay, why oi. I see. I am saying that pharma for agro for this this quarter would be around about 56, 57% of my revenue. So I think that will help you in terms of getting the balance.
S. Ramesh
We understand that since you gave the number corresponding number for pharma and performance chemicals, it’ll be useful if you give the same number for agriculture and personal care. That is the limited point I’m making.
Vishal Thakkar
I’ll get you, I’ll get you that number. Just give, give me, give me a minute or two to just do the math and give it to you. Right.
S. Ramesh
Yeah. And second thing is if you look at your customer uptake and you’re saying this performance is improving and but there’s a, the other companies who are saying that customers are deferring orders and they are balancing their inventory requirements so in your case, are the innovators able to, you know, lift their material as per the delivery schedule? So when you say H chemicals or CSM is improving, how is it different for you compared to your competitors? Because we heard one peer say that they are, their volumes have actually dropped because the customer has been, you know, reducing the optic versus their contract.
So what is different in your case?
Vishal Thakkar
So Ramesh, first there is a 100 yoy growth, over 100 yoy growth in my agrochem segment as well. If that helps the first question to answer. Now second is the growth. These are all product specific, customer specific, company specific situations. Like there were my peers which were showing growth when I was in the degrowth period last year. So making a comment on any of my peers may not be the best statement to make. But what I’m saying is that today, today what I see that this year we are looking at a very strong revenue growth across all the four segments that I can say which is agro, pharma, polymer and personal care.
And we see personal care will remain a steady growth because it has not seen any too much of a volatility will continue to be there. But agro, pharma and polymer will be a strong growth. We are looking at as I had said in the last call, also this year is looking at as where we are going to grow over 30 plus percent kind of a revenue numbers that we are very, we are feeling very, very comfortable. If you look at my last 2/4 results, it gives me that much confidence and provides a strong empirical evidence to that plan or the, or the suggestion that I’m making.
S. Ramesh
Last thought.
operator
Sir, sorry, may I request you to join the queue for a follow up question.
Vishal Thakkar
Please let that, let one question be there and we can take the other one.
S. Ramesh
Okay, thank you. So just trying to put the you know, order book schedule in perspective and the segments you are giving. So you said pharma is out of the order book. So if you look at the segment categories, how should we read the order book execution in FY26 and 27 based on the LOI schedule you have given. So, so how do we fit it into these segments?
Vishal Thakkar
So order book, if you really look at it largely will be for polymer and for the, you know, agrochem side you can see LOI is largely catering to these two segments. We expect that around, you know, 450, 500 crores kind of a number will be, will be there for this year and we expect it to go so we would double the contribution from LOI from last year to this year broadly. And we expect a similar kind of a number growth next year as well because lot of Lois and contracts are getting commercialized and getting ramped up.
S. Ramesh
Okay. And this polymer will be in the performance chemicals segment, right?
Vishal Thakkar
Yes. A polymer is performance chemicals. Yes.
S. Ramesh
Thank you very much. I joined it. I wish you all the best. Thank you.
Vishal Thakkar
Thank you. Pleasure.
operator
Thank you. Before we move to the next participant a reminder to all participants. You may press star and one to ask a question. The next question comes from the line of Rikkin Shah from the boring amc. Please go ahead.
Rikin Shah
Hi team. Congrats on a very strong rebound. So my first question is I want to try to understand what the inventory situation is like at the end customers end like who we are supplying to. So you know if that for our key molecules basically.
Vishal Thakkar
So I thank you and thank you. That helps me also explain what I was trying to explain and thanks for this question. If you see last 18 months has been a very concentrated effort from my customer to to really reduce their supply inventory levels. And if you if we see now those stocks are now coming to the level level target level that they had put for themselves. So to that extent I we see that now whatever the projection they are giving us for their their offtake are looking more robust, more visible and more more more firm in their.
In their nature. So to that extent the reduction in the inventory cycle that they they wanted in terms of channel inventory, they’ve largely covered it for now.
Rikin Shah
Got it. But sir, like when we like you know the broad based commentary when we see the partner meetings of any of the innovators, the comments to all the contract manufacturers, you know more or less the same which is to reduce cost and you know work on cost structures. So do you feel that the pressure is much lesser today like compared to like one year ago maybe?
Vishal Thakkar
No. Significantly less if you ask me last year versus this year we see far more comfort in terms of you know the buoyancy in terms of their projection or also cost pressures have seen basically what has happened that most of them most of the cost pressure if you really see started in the 23 kind of a time frame especially when there was a Ukraine Russia conflict and which led to a strong inflation, very high inflationary pressures across energy and every other facet which practically two things have happened from there. The energy prices have got corrected significantly and came back to a more steady state.
And also if you look at from a logistics transportation or any other places also the cost have become more stable and more more near to the you know past steady state numbers. So to that extent cost pressures are not as such no doubt always customer will want to have a cheaper product and quicker. But I think everybody has seen that now we have come to a level where we need to get to business on a steady state basis and we have to act and behave and expect in the similar range.
Rikin Shah
Got it. And apologies for the next question if it’s a repetition but after the preferential and perhaps the cash flows of FY25 materializing in FY26 as there is more inventory rationalization so what kind of debt reduction may be short term and long term goals do we have?
Vishal Thakkar
So if you see first we are today termed net on a net basis. So because we have some bit of a cash, a little small, little bit of a term debt. So on a net net term debt basis we are net net zero actually. So we have, we have practically no net term debt left out first, second, today we have a working capital lines of around 1000 crores. We expect that to get corrected more in terms of reflection of the operating cash flows. Because if you look at it no major capex planned or necessitated and 2 working capital will release cash rather than consume cash.
Rikin Shah
You know even if we see working capital debt and you know combined gross debt long term plus working capital related. So overall do we have any target in our mind like maybe short term if it that’s too myopic, maybe a long term goal.
Vishal Thakkar
I’m just saying that today if you look at my debt to EBITDA will be less than two and I will try and keep it around less than 2 and more more pushing towards 1.5 or less.
Rikin Shah
All right, got it. Vishal bhai, thank you so much.
Vishal Thakkar
That’s. Thank you.
operator
Thank you, thank you. A reminder to all participants, you may press star and one to ask a question. The next follow up question comes from the line of S. Ramesh from Nirval Bank Equities. Please go ahead.
S. Ramesh
So in terms of the margin profile. And the tax rate, how should we read the incremental growth in the new what would be the margin profile and what how would the tax rate move?
Vishal Thakkar
So margin profile we should have a similar margin profile that we have been historically guiding. I would put it around about 25, 27% margin profile is what I would really guide at incremental and tax rate. I think studies that tax rate what, what we have been historically is where you should be looking at.
S. Ramesh
First quarter is only 23%. So will it increase over the four quarters and go back to 20, 30% or.
Vishal Thakkar
Yeah. So what, what, what has been a historical average. I think if you take it that level it should be the, the right one.
S. Ramesh
The reason I’m. What I’m asking is why, why. How has the tax rate declined to 23% in the first quarter?
Vishal Thakkar
So there was. There was basically some, some. Some credits which were there which were. Which. Which we have been able to use it.
S. Ramesh
Okay, so one request. No tan fact is a company which is supplying a material, it’s a group company. If you are able to get some visibility on the performance of the company and the call with the management that will help us, you know, understand that company as well and how they fit into your plan. So that’s on personal.
Vishal Thakkar
We will, we will look into that.
S. Ramesh
Thanks a lot. I appreciate it and wish you all the best.
Vishal Thakkar
Thank you. Thank you.
operator
Thank you ladies and gentlemen. As there are no further questions from the participants, I will now hand the conference over to the management for closing comments.
Vishal Thakkar
Thank you. On behalf of the management of Anupam Rasa in India, I thank you all for joining on our earnings call today. We hope we have been able to address majority of your queries. If you may have any further questions you may reach out to our investor relation partner ENY and they would be happy to support you. We close this call. Thank you very much. Have a good day.
operator
Thank you sir. On behalf of Anupam Rasayan India limited that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.