Archean Chemical Industries Limited (NSE: ACI) Q1 2026 Earnings Call dated Jul. 31, 2025
Corporate Participants:
Unidentified Speaker
Ranjit Pendurthi — Managing Director
Natarajan Ramamurthy — Chief Financial Officer
Analysts:
Unidentified Participant
Sanjesh Jain — Analyst
Aditya Khetan — Analyst
Krishan Parwani — Analyst
Rohit Nagraj — Analyst
Pratik Oza — Analyst
Archit Joshi — Analyst
Dhruv Muchhal — Analyst
Rikin Shah — Analyst
Chetan Doshi — Analyst
Presentation:
operator
Good day and welcome to the Akhien Chemical Industries 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 conference is being recorded. I now hand the conference over to Mr. Ranjit Bindurthy, Managing Director. Thank you and over to you sir.
Ranjit Pendurthi — Managing Director
Thank you. Good morning everyone. A warm welcome to all of you joining our Q1 FY26 earnings call. Thank you all for taking the time to be here with us today. On this call I am joined by Mr. N.R. kannan, our executive director, Mr. Natarajan Ramoorthy, our CFO, Mr. Rajiv Kumar Adigian Finance and the SGA team who are our Investor Relations advisers. I hope you all had a chance to go through the financial results and the investor presentation available on our website and the stock exchanges. I will start with a brief overview on the recent developments and market Trends.
Post that Mr. Natarajan our CFO will give you a financial overview for the quarter. To start with the market overview, we are witnessing mixed trends across the chemical industry with early signs of recovery in select segments. Inquiry levels are steadily improving indicating a more favorable business environment in the coming quarters and years ahead. However, the recent tariff uncertainties have obviously held many global MNCs from making decisions while re evaluating sourcing and investment strategies. The Indian specialty chemicals industry nevertheless is poised for significant long term growth supported by rising domestic consumption, supply chain diversification and government led incentives, etc.
Recently Niti Aayog has released a report in July 2025 outlining a roadmap for India to become a global chemical powerhouse with potential to reach USD $1 trillion by 2040. Despite mixed signals and industry challenges, Akin Chemicals has demonstrated resilience and agility while overall improving its operational performance despite volatility in the market. We began FY26 on a strong note, delivering a 30% year on year revenue growth in the first quarter with a steady product mix coming straight to our performance. We’ll start with Elemental Bromine. We continue to be India’s largest manufacturer and exporter in the space.
Elemental Bromine contributed approximately 30% of our total revenue in Q1 FY26 with overall business performance remaining broadly stable as compared to the previous quarter. We are confident and we are seeing consistent demand and expect gradual improvement in volumes over the coming quarters we are also seeing more traction from domestic clients. At the same time, just to reiterate again, any sharp movements in spot prices do not immediately impact us as most of our contracts are long term and bilateral in nature, therefore providing the underlying resilience to our business model. While the pricing environment has been challenging from the last couple of years for the chemical industry in whole, we have reported a steady volume as well as some green shoots and uptick in price movements helping the bromine segment.
At the same time our strong relationship with our customers, who many of them have been with us for more than 57 years, continue to place orders with us and continue to demonstrate their confidence in our capability to meet any extra volume that they need, both domestically as well as internationally. Industrial Salt as you all are aware, we produce a grade one superior quality of industrial salt that is primarily exported to the Far east and to over 10 countries overall. Our end customers are chloro alkaline manufacturers, particularly those in the chlorine value chain. Purity and consistency in delivery is a requirement for most of these global manufacturers, both on the chemical side as well as the petrochemical side.
Globally, only a handful of manufacturers can meet this level of purity and we are among them and continue to be India’s largest exporter of industrial salt. During the quarter we have maintained sales volume of 1.1 million tonnes. As we have indicated in previous quarters that that would be largely our run rate and maybe a little bit more in the coming quarters. Earlier operational challenges, particularly related to logistics, have been largely resolved. With strong demand visibility and once again with long term contracts with end customers across Asia. We expect to maintain this run rate and also continue to work towards increasing the volumes in this segment on sulfate of potash.
Our trial runs are progressing very well. We are very confident with the efforts that we are putting in now on improving the conversion ratios. We are also working closely with the technology partner to progress from pilot scale to plant scale trials. Activities to enable this, such as plant modifications are under progress already and we are now preparing for plant trials in the coming quarter and are confident of replicating the pilot plant performance where the trials have proved to be very encouraging and we continue to believe that SOP will be a mainstay business for the company in the quarters and years to come.
We are one of the few very global manufacturers of SOP and the market remains very firm in terms of demand for the specialty fertilizer of which we are one of the very few in the world who make it. As stated earlier, we expect meaningful contributions from this vertical in the second half of FY26 on bromine derivatives Our bromine derivatives operations are up and running and currently operating between 30 to 40% capacity utilization. Clear brine fluids and catalysts for purified terapsylic acid PTA synthesis has Contributed in the Q1FY26 performance. We expect the utilization to gradually improve to greater than 50% before the end of this financial year.
Once again, here we are encouraged by the response we have received from clients both domestically and internationally, primarily in the Middle east where the oil fields are based. Both products have been received well and have started engaging with ongoing certifications regarding the Flame retardant FR project. As I told you on the earlier call, we have initiated work on this project and this initiative is being actively pursued now and we will provide an update in the coming quarters once the fraction finalization has been done. At our end, as you are aware, FR is a very important chemical that’s used primarily in electronics and with the recent government initiatives on PLI schemes, et cetera and the trust for the electronics sector, we believe the scope for FR continues to remain robust domestically and continues to be so internationally.
On Oran Hydrocarbon, which has been renamed as Idealis Mudchemi, we acquired this company in 2024 and as you’re aware took possession of the assets in the last quarter of that year. Over the past six months we made steady progress in reviving and refurbishing the units. The trial runs have commenced in two units and product qualification has also commenced. We have started receiving acceptance from certain customers domestically and internationally and we continue to focus on starting the commercial production soon and starting to contribute meaningfully to the top line and bottom line this year on our new strategic initiatives.
Semiconductor the land acquisition is completed for this project in Orissa and we are also tender out RFQS for running the Project Management Office last month and we expect to commence ground work post monsoon on the energy storage business. As you’re all aware, we have invested in Off Grid Energy Labs, a zinc bromide battery innovator with a robust IP portfolio of 50 patents and more across cathodes, anodes and separators. In May 2025 we successfully acquired an 18.14% stake with the remaining commitment expected to be fulfilled over the coming quarters. Off Grid has finalized the pilot site and vendor selection for the pilot plant in the uk, marking a significant milestone.
Upon successful pilot execution we shall plan to scale up to a gigafactory which is expected to take 18 to 24 months to materialize on Closing Remarks to sum up, our business fundamentals remain strong and robust. We maintained healthy margins, deepened our relationship with clients and laid a strong foundation to invest in high potential sectors like Gomine derivatives, semiconductors and energy storage. We continue to be a net debt free company backed by robust balance sheet and disciplined capital allocation. This financial strength and business robustness ensures healthy cash flows and provides the strategic flexibility to invest confidently in long term growth opportunities.
With that, I would now request our CFO Mr. Natrajan Ramothy to share the financial performance for Q1FY26.
Natarajan Ramamurthy — Chief Financial Officer
Thank you and a very good morning to all the participants on the call. We are pleased to report a notable performance for quarter gone by. To give you a Summary of Q Q1 FY 2026 on standalone basis, total revenue for Q1 stood at 200915 million 30% growth on a year on year basis our business mix are as follows. In Q1 domain contributed around 30% of the total revenue whereas industrious all contributes around 70%. Sales volume of business are as follows. Volume sales of Bromine for the quarter one FY26 stood above 4000 ton level. Volume sales of industrial salt for Q1FY26 stood around 1.1 million.
EBITDA for the company stood at 958 million in Q1FY26 a 13% growth on a Y O wide basis, EBITDA margin stood near for the quarter. Increase in other expenses during the quarter was largely due to increase in packing, dispatching and freight for higher salt sales made and ECL provision. Net profit for Q1FY26 stood at around 518.5 million. On a consolidated basis, Q1FY26 performance stood as follows. Total revenue for Q1FY26 stood at 3,005.9 million. EBITDA for the company stood at 863.2 million in Q1FY26. Net profit for Q1FY22 stood at around 401.4 million. With this we conclude the speech and open the close for Q and A.
Thank you.
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 and 2. Participants are requested to use answers 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 Sanjay Jain from ICICI Securities. Please go ahead.
Sanjesh Jain
Good morning sir. Thanks for taking my question. I got few of them. I listen first. Can you give us bookkeeping exact sales volume and revenue for all the three segments? That’s one. Number two, there is a purchase of. Goods which is a very unusual item in our pnl. Can you help us understand what is the purchase of goods we have traded in this quarter? Number three is on the gross profit margin in vacuums which is standalone minus consolidated. Last quarter it was 25%. This quarter it is 5%. There’s a steep deterioration in that. Now it is just because trial and hence volatile or how should we see this gross profit margin on a steady state basis? Number four, on the bromine guidance you mentioned 22 to 25,000 metric tons for FY26 and 4.5 million for salt. Does that hold good for the year? Seeing how the quarters are unfolding. These are my questions. Thank you.
Natarajan Ramamurthy
Product is revenue for Q1, FY26 is total is 279 crore. Out of the industrial salt is 194 crore. And bromine is 84 crore. And sales metrical is 1.1 million of salt and bourbon is 4054.
Sanjesh Jain
54.
Natarajan Ramamurthy
Yeah.
Sanjesh Jain
And SOP
Natarajan Ramamurthy
SOP is 52 metric
Sanjesh Jain
and revenue
Natarajan Ramamurthy
total is 279. SOP revenue is 26 lakhs.
Sanjesh Jain
26. Not material. Got it. Ah. Thank you.
operator
Thank you. Our next question is from the line of Adityaket then from smifs Institutional equities. Please go ahead.
Aditya Khetan
Yeah. Thank you sir for the opportunity. Sir, when we look at the global players commenting so whether it is in agrochemicals, pharmaceuticals and on electronic side most of the companies have stated that the demand is weak. And their capex what they are planning for the next two years that has been also cut by roughly 40 50%. So structurally it seems like the demand will remain weak. But sir, our guidance of 20. So sir, just want to know this guidance which you have given. What is the confidence you have got in terms of data? If you can just mention. And what is the outlook in the bromine segment in the global markets?
Ranjit Pendurthi
So thank you for that question. I’m also going to answer Mr. Sangesh’s question from the previous segment which I think. I think one of them was left unanswered. So on the bromine and salt volumes there was a question if they will hold good. I think to answer that question Sanjesh, they will hold good. As you all are aware these are long term contracts that we have in place. And I think customers continue Reposing faith in both the supply side with us as well as their own operations where they continue to consume. So at the moment both remain strong for us and the offtake continues almost at 100% of what we make we are able to sell.
So that is answering the previous question and coming to your question. On the market itself, I think bromine on the pricing the last few months we are seeing a little bit of an uptick as I mentioned. I think the readjustment of product portfolios by various agrochemical companies across the globe as well as India and the chemical companies in China where we sell and export bromine to, I think they have been quite resilient. And there has also been an uptick in some volumes in some of these chemical companies in terms of sales, whether it be within Asia or whether it be exports from India.
And I think we are starting to see that during conversations with some of these manufacturers. Now obviously each company is unique in how it operates. What are the strengths, what are the constraints within that environment. So however, I think our history has shown that even in a tough market, I think our company has continued to be very resilient in volumes for sure. And we also tackled pricing in a very methodical manner because most of these again are locked into contract.
Aditya Khetan
Okay, got it sir. These long term contracts which we have signed ideally from next quarter, if we look what guidance is given this quarter, we have got some 4,000 terms of a run rate in grooming to achieve that number. What you, what you’ve said of 20, 25%, ideally the next quarter brooming run rate should be around 5,500 tons. So are the long term contracts in place so that these numbers would be achieved?
Ranjit Pendurthi
I will answer that question in a different way. I think our order book is full and like I said today and it has been in the past the same way, whatever we’re able to make, we’re able to sell.
Aditya Khetan
Okay, got it sir. On to coming to the other businesses of so like the bromine derivative. So we the difference in top line like 292cr is on console and what sir has given. So the revenue from bromine and Salt they are 278. So the difference is into the bromine derivative.
Ranjit Pendurthi
Yes, we are doing about 25 crores, close to 23 crores to be exact. But for the first quarter and as the capacity utilization keeps going up, you know that sales will keep moving up to the rest of the year. But at the same time we’ll also be introducing two, three other products in the bromine derivative space.
Aditya Khetan
Got it. Sir. We have seen that some news have been floating in the global market that so toxic flame retardants that there are chance that some of the countries might look to ban for it. How you see this changing in our business like when we set up a plant, are we also manufacturing similar set of the flame retardants?
Ranjit Pendurthi
I think the flame retardant portfolio, I think we’ll come back to it when we finalize the plan because there are different kinds of flame retardant and so I think there is regulation around certain categories of them. But at the same time I think there is also like I said a large arena of products in the flame retardant. So as I said in my comments earlier, when we finalize the flame retardant portfolio I think we will come back and answer that question with a little bit more clarity for all of you.
Aditya Khetan
So just one last question.
operator
Sorry to interrupt a request to all participants. Please restrict your questions to two per participant. The next question is from the line of Christian Parvani from GM Financial. Please go ahead.
Krishan Parwani
Yeah. Hi sir. Good morning. Thank you for taking my question two two to three from my side. Firstly, when will our bromine price move up from current 2.$4 per kg been seeing from the last 2 to 3 quarters.
Ranjit Pendurthi
So I think we’ve moved. Thanks for the question Krishan. So I think we’ve moved past that number. So we are closer to 2.5 and a little bit more impact on some cases.
Krishan Parwani
In July. You mean.
Ranjit Pendurthi
It will come through? I think it started already in May, June. So it’s a mix of old orders and new. So you may not see the full impact of it. But as the old orders get extinguished and the new ones fully kick in, you’ll see that come through this quarter. And the next quarter.
Krishan Parwani
Got it. And so on the some clarification on the derivative business. Did you mention 14 crore for the derivative business or 24 crore this quarter?
Ranjit Pendurthi
23. 23. And change for this quarter has primarily come from the brine fluids. Clear brine fluids and the other products will get introduced over the next couple of quarters.
Krishan Parwani
Okay, but when I do the math like let’s say 194from industrial salt, 84from bromine and you’ve done 292 on a total top line basis. So it just comes to 14 crore from the bromine. What am I looking
Ranjit Pendurthi
the combined top line is 3000 consolidated 3009 I think 3005.
Krishan Parwani
Okay. Okay. You mean with the other income.
Ranjit Pendurthi
It’S 3005.9 total revenue on a consolidated.
Krishan Parwani
That includes the other income. Right.
Natarajan Ramamurthy
Okay. Yeah. This is a consolidated basis in which, you know, intercompany sales are set up.
Krishan Parwani
Got it, got it. Anyway, I’ll move to the last question which is are we still on track to deliver 150 odd crore revenue from orange hydrocarbon in S26?
Ranjit Pendurthi
I think that is the endeavor. The product certification, like I said, you know, is taking a bit of time but at least we’ve actually started getting some local approvals. The local offices of MNP’s and certain middle east customers who sell these to oil companies I think have tested it and approved. So the endeavor is to kick start the sales in this coming quarter. I mean I would like maybe to make an observation largely on the market. So I think the market for those products still continues very healthy. So it’s just a matter of time for us to start and be able to sell. So I think we are getting there and we are still hopeful of that.
Krishan Parwani
So you don’t want to lower your guidance of 150 odd crore?
Ranjit Pendurthi
Well, I think if I were to look at it conservatively I would possibly lower it. But I think is 150 realistic? I think we should, we should aim for that.
Krishan Parwani
Okay, great. Thank you for answering my question, sir. Wish you all the best.
operator
Thank you. Our next question is from the line of Rohit Nagraj from BNK Securities. Please go ahead.
Rohit Nagraj
Yeah, thanks for the opportunity, sir. We had faced certain logistical challenges in the previous quarter. So in the recent quarter, I mean recent past, all those challenges have been completely taken care of and incrementally that should not be a challenge from our growth perspective for the exports market. Thank you.
Ranjit Pendurthi
Thank you for the question. So yes, we have largely resolved them. We’ve added a lot more equipment, both owned and leased and third party equipment, both on the transportation as well as on the operation side at site. So as you can see the volume has picked up and we are hopeful that the run rate will continue and we’ll try to expand that a bit more.
Rohit Nagraj
Right. And on the salt side generally how the pricing behaves, I mean is it, has it been relatively stable over the last few years or on year, on year basis at least there is some price increase based on the operational increase, operation cost increase or how structurally it moves. Thank you.
Ranjit Pendurthi
I think over the last year, let me correct that. Over the last six months there has been a little bit of weakness but that’s largely made up by the efficiency improvements at our end. Because you have to also remember that on a global scale. Right. The petrochemical business and the chloride business has not had the easiest of times. But nevertheless, some of the customers that we sell to are very large and very strong operationally. So we look for more continuity in the offtake which has happened. All the customers continue with their offtakes and I think the price has been, I would say given all that’s happened in the market has fairly been resilient.
Rohit Nagraj
Thanks for answering all the questions. Best of luck, sir.
Ranjit Pendurthi
Thank you.
operator
Thank you. A reminder to all participants, a request to all participants. Also please restrict your questions to two per participant. For more questions, please rejoin the queue. The next question is from the line of Pratik Oja from Systematics. Please go ahead.
Pratik Oza
Substantially lower at 4 million months old. So if you can provide precise breakdowns of the difference of the pre tax loss between your subsidiaries, I.e. acute chemicals and IBD syncing.
Ranjit Pendurthi
Sorry, but you’ll have to repeat that question with a little bit more clarity because we could not hear you very clearly. We can hear you but it’s not very clear.
Pratik Oza
So what I was referring to is your standalone entity at the BAT of 518 crore and control type is substantially lower at 401 crore. So there is a negative difference of about 170 crore. So I just wanted to know the breakdown at pre tax loss for the subsidiaries of clean chemicals and ideally subsidiaries must have posted the loss and that had impacted our consolidated.
Ranjit Pendurthi
Okay, okay. So your question is at a standalone, it’s 500 odd crore and why is it, sorry, 50 or crores or why on a console basis it’s lower?
Pratik Oza
Yeah, yeah.
Natarajan Ramamurthy
Because of the, the subsidiaries, you know, initial losses being the first year of full operation, you know, the acumen dollars. We have some small losses after setting off. That is the net, total net profit.
Pratik Oza
Okay.
Ranjit Pendurthi
So when we start a business in a new subsidiary, generally the first few quarters you buy raw materials and all. More than your production for next 1/4. Or 2/4 and then you expense them also. That is the differential.
Pratik Oza
Okay. And sir, how are things shaping up now for the subsidiaries? I mean given that in the last quarter you have said that the derivative business would achieve that positivity in this fiscal year. So how are things standing out?
Ranjit Pendurthi
I think as I said earlier, I think despite the challenges globally and with all this tariff uncertainty, et cetera, I think the products that we sell, there continues to be a good demand for them and we continue to have encouraging feedback from clients who we are approaching for approvals and technical certifications. So I think our only Job is to now make the product and I don’t think sales is a problem.
Pratik Oza
Got it, sir. Thank you. Thank you.
operator
Thank you. Our next question is from the line of Archit Joshi from Nuama. Please go ahead.
Archit Joshi
Hi, good morning sir. Thanks for the opportunity. So just one question. Wish to get your thoughts on what we have been hearing about the anti involuntary policy that China is trying to implement or rather is in the stage of implementation.
operator
Can you please keep your device close to you because the voice is breaking.
Archit Joshi
Okay. Is this any better?
operator
This is better. Yes. Yes.
Archit Joshi
Yeah.
operator
Please go ahead.
Archit Joshi
Yeah, sure. So, but I wanted to get your thoughts on the anti involuntary policies that China is trying to implement. I believe there is a significant. Hello. Hello.
Ranjit Pendurthi
Sorry, we couldn’t understand. Anti what policy?
Archit Joshi
Sir? I believe that China is trying to implement certain policies to limit the capacity addition in the view of subdued pricing that is seen in the chemical industry. And I believe flame retardants also is one of the products where there is significant bit of overcapacity in China and they are trying to do something on that account with regards to creating a level playing field possibly or to cut down this deflationary pricing that we have seen over the last maybe 18 months. So anything that we hear on that account, your thoughts on that?
Ranjit Pendurthi
To be honest, we have not really heard anything because we do exports every month. So none of us, in fact just this morning someone has said can you please speed up the consignment? And I think so. I’m not aware of any such thing, so it would be hard for me to comment. But one of the things that you mentioned, what they’re trying to do, I don’t know what it is they’re trying to do domestically, but obviously there’s a lot of policy reviews going on within China but at the same time they still need the brooming. So I think in that context, I think we are not concerned from at least what our customers are telling us.
Archit Joshi
Got it sir. That’s it for me. Thank you. Thank you. All the best.
operator
Thank you. The next question is from the line of Dhruv Muchal from HDS amsc. Please go ahead.
Dhruv Muchhal
Yes, sir. Thank you so much. If I look at the breakup that you gave of the derivative segment, so it seems the differential is because of the bromine sales that you do internally, which if I do the rough math it’s about 10% of the bromine segment sales, which roughly assuming 10% of your bromine volumes also sold internally, that would mean. And last quarter that was there was no internal sales of bromine. Elemental Bromine. So that would mean the Elemental gromy external sales have declined quite a bit. So just trying to understand was it just a, you know, timing issue or you’re focusing more on your capital versus the exports or external.
Ranjit Pendurthi
Thanks for the question. I’m just going to repeat it so that we understood you clearly. What you’re saying is that you’re asking us about the internal sale of bromine from Arkin Chemicals to our subsidiary Acume, is it?
Dhruv Muchhal
Yes. So okay, just to clarify sir, the bromine sales number that you have given, is it the overall sales or is it just the external sales? So what you sell to the subsidiary, is it recorded as.
Ranjit Pendurthi
It’S the overall sales.
Dhruv Muchhal
Okay. So the subsidiary sales are also given in the wallet numbers 4054 that you have given. That includes the elemental grooming sales to the subsidiary.
Ranjit Pendurthi
Yeah, so. So in the last quarter we had about 400 odd tons sold to the subsidiary.
Dhruv Muchhal
In one queue.
Ranjit Pendurthi
Yes. Q1.
Dhruv Muchhal
Yeah, yeah, so that’s the, that’s what I was trying to understand. In the previous year quarter you external 4,700 tons. 4, 700 tons. And this year excluding your internal sales, it’s about 3,600 tons. So there is a decent decline in your external sales of Elemental.
operator
Sorry to interrupt, could you take your device a bit away from you one second? Yeah.
Dhruv Muchhal
Hello.
Dhruv Muchhal
Isn’t this better?
operator
Yes, yes sir, this is better.
Dhruv Muchhal
Yeah, I was saying that your external sales of Elemental Bromine has come off from 4,700 tons last year quarter to about 3,600 tons this year quarter. So just trying to understand what’s driving this.
Ranjit Pendurthi
So as you’re comparing it to last year, same quarter.
Dhruv Muchhal
Yeah, yeah.
Ranjit Pendurthi
So you know, we would probably have to come Back to you, Mr. Natarajana, CFO will reach out and clarify that.
Dhruv Muchhal
Okay, sure. Nobody.
Ranjit Pendurthi
Sir, we don’t have that figure in front of us.
Dhruv Muchhal
Sure. The second question was on the potash commentary. So you see, if I’m not wrong, your commentary was incrementally more positive. So if you can. So have the pilot trials been successful and now you’re starting for the plant scale trials at your site? If I understood that right. And so. And how do you see the progress? I mean how does it happen? What is, what are the timelines or what are the milestones that you will have to cover for it to, you know, scale up?
Ranjit Pendurthi
No, you’re absolutely right. The pilot trials have been done and they have been successful. Which is now why we are moving to plant scale trials at the Plant scale. We have already ordered the equipment that’s required to be put into place so that work is going on on the ground. And in the next couple of quarters we will get that up and ready and we are confident that we will be able to. Well, we have also harvested the ktms, which is our mixed salt, which is a raw material for the SOP plant for this year. Already done. So that stock is also already available. So that will be also available to be used when the plant is up and ready. So in terms of raw material, we have it in place. So the plant scale equipment is being put in place. So which is why we said that we expect meaningful contribution to come this year in sop.
Dhruv Muchhal
That’s nice. And so this should also, if I’m not wrong, this should also aid in ramping up your bromine volumes, elemental bromine volumes, once this plant is up and running.
Ranjit Pendurthi
Not directly, but you do have a point. There is an indirect correlation because the more KTMs we get, it would imply that there is enough brine available for more bromine as well. But that will be gradual. It won’t be. I mean unfortunately things have to evaporate or build up or a large happen instantly.
Dhruv Muchhal
I mean over a period of time.
Ranjit Pendurthi
You’re right. So the most important thing is as you rightly observed, are we in place and are we doing those things? We are in place in doing those things. So you’ll see that improvements coming over the next few quarters. Much more than you’ve seen in the last 2 3/4.
Dhruv Muchhal
And so last question is just on a particular point, your EBITDA on a YY basis has grown by about from this year to last year. Same quarter is about 7 odd crores versus just your salt sales volume have grown by about. Salt sales revenue has grown by about 78 about 80 odd crores on a YY basis quarterly. I would assume a salt business does about 25, 30% to 20 to 30% margin. Just that delta should have contributed to your EBITDA which is not completely getting reflected. So just wanted to understand is there some drag in some business which is leading to this mismatch?
Ranjit Pendurthi
So see salt, while you are aware that we don’t do product wise margin. And it is also not possible. But yes, there’s not much pricing pressure on salt. The lower EBITDA that you are seeing. More comes from from the downstream derivative overall consolidated performance.
Dhruv Muchhal
Okay, so it’s just the ramp up of these subsidiaries which is taking some cost and once that normalization happens this would get reflected Got it. Thank you so much. This is very helpful. Thanks and all the best.
Ranjit Pendurthi
Thank you. Thank you.
operator
Thank you. A request to all participants. Please restrict your questions to two questions for participants. For more questions please rejoin the queen queue. The next question is from the line of Ricken Shah from the boring amc. Please go ahead.
Rikin Shah
Hi sir, I just have one question. Are we seeing any sort of inventory build up on the in geography where. We are selling at the moment?
Ranjit Pendurthi
We’re not hearing that from our customers and a lot of them actually have always. Not just now. I’ve always been very lean on inventory. So this is one of the reasons why they continue to lift and do the offtake as per contract.
Rikin Shah
All right, thank you.
operator
Thank you. Our next question is from the line of Chetan Doshi from PM Financial. Please go ahead.
Chetan Doshi
Thank you for giving me the opportunity. I have two questions. One, is this Ideal Chemicals? You. It is the. We are going to start trials so when the trials will be completed and how much it will contribute for the financial year 26 and second question is are we exporting anything to us and if yes, how? What is the quantity?
Ranjit Pendurthi
So the trials have already started on certain products related to the starch chemicals and as well as liquid chemicals for oil drilling. So the end markets are the Middle East. Right now we have no exposure of business with the US in either the parent or the subsidiaries.
Chetan Doshi
Okay. And how much this Ideal Chemicals will contribute for the full financial year 26? The top line.
Ranjit Pendurthi
Top line. We have given our guidance of 150 crores. But I think someone had asked earlier are we maintaining this guidance? So we are for the moment sticking to it. But I would also leave the door open a little bit because the ramp up or the technical approvals are taking a bit more time than we anticipated. So we’re already halfway through the second quarter. So I would more focus on actually getting the plants up and ready and start shipping out products because you have to also realize that most of these businesses are not done over one or two quarters. They are contracts. So the robustness of the long term offtakes are more critical for us than be very concerned about immediate 1 2/4 especially for a business that we’re trying to revise that we bought in nclt. So that’s our focus right now, to get certifications of the products and to start the sales.
Chetan Doshi
It will start from which quarter?
Ranjit Pendurthi
This should start from the third quarter.
Chetan Doshi
Good luck. Thank you.
Ranjit Pendurthi
Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conversation.
Ranjit Pendurthi
Sorry. I think there was one question Sanjesh was still unanswered. The purchase of goods is actually generally what happens is this is good for all to know. So in August and September we generally get some rains, unexpected, unseasonal, sometimes it moves on in September. And we always have a little bit of a difficulty in restarting shipments from our regular facility at Jakao. And then there’s a delay of another two weeks to three weeks. So what we have done to mitigate that risk, because we always run at 100% on salt exports and logistics, we have purchased some extra material as a buffer and that will allow us to kick start the season immediately without having to wait post monsoon from Jakao. So this gives us that buffer for at least two shipments with clear Runway of being able to lock in that revenue and not have to wait on that quarter. Please continue.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. Thank you. And over to you, sir.
Ranjit Pendurthi
Thank you very much. Thank you everyone for joining us on this earnings call. We appreciate your time and continued interest in our company. In case of any queries, please do get in touch with us or sga, our investor relations advisors. And we look forward to meeting all of you over the next call. Thank you. Have a good day.
operator
Thank you, sir. On behalf of Akhien Chemical Industries, that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Sa.