EPIGRAL LTD (NSE: EPIGRAL) Q4 2025 Earnings Call dated May. 05, 2025
Corporate Participants:
Maulik Patel — Managing Director
Sanjay Jain — Chief Financial Officer
Analysts:
Meet Vora — Analyst
Unidentified Participant
Nirav Jimudia — Analyst
Pinaki Banerjee — Analyst
Rohit Sinha — Analyst
Dhruv Muchhal — Analyst
Parth Mehta — Analyst
Rohit Nagraj — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Epigral Limited Q4 and FY25 earnings conference call hosted by Emkay 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Meath Vora from NK Global Financial Services. Thank you. And over to you Mr. Vora.
Meet Vora — Analyst
Thank you. Good evening everyone. Thank you for joining us on Epigare Limited’s Q4 and FY25 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 Epigra’s management represented by Mr. Malik Patel, Chairman and Managing Director, Mr. Kaushal Soparkar, Executive Director, Mr. Sanjay Jain, Chief Financial Officer and Mr. Milan 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 — Managing Director
Thank you Meer. I’m just filling in for that. He just had to step out for an urgent start for he just coming in I’m still Good afternoon everyone and welcome to the call to discuss Epigrel’s Q4FY25 performance. I believe you had an opportunity to view the earnings presentation that was released earlier today. Overall, the chemical industry is witnessing some sort of a growth in a few selected products portfolio and a few products market. The growth is still at a slower pace so chemical industry movement is product specific and region specific in terms of growth. In the case of Epidural specifically, we have ended FY25 with the highest ever revenue of 2565 crores and also the highest ever sales volume.
The past of 357 crores is also the highest level. We witnessed growth of 33% in revenue and 82% growth in PAC. This is majorly on account of contribution from derivatives and specialty business for which in the recent past we have done substantial CAPEX and commissioned the plans. This year we have witnessed volume growth at 11% which led us to have a sales growth of 33% on account of contribution from higher value products. Our strategy to diversify into downstreams and our selection of high value products are yielding fruits and creating value for our stakeholders. We ended the year with a revenue contribution from derivatives and specialty business of 54% compared to 45% the previous year.
We commissioned our fluorovolumes value chain facility in March 2025 and we expect to reach optimal utilization of the plant by the end of this financial year. Once we reach optimal utilization and also as our expansion announcement of doubling capacity of CPVC resin and epiclor vitrine facility will also reach optimum. By that time we expect the revenue contribution from derivatives and specialty business to reach around 70%. In FY25 our captive chlorine consumption was around 72%. This is in line with above expansion. Our captive chlorine consumption will also increase and will be optimum strengthening our integrated complex Further we are geared up completely. We have strengthened our balance sheet and our position to grow further by focusing on import substitute product further diversifying and increasing derivatives and specialty business and strengthening our integrated complex. We believe that our strategy will help us to have consistent growth and will create value for our stakeholders.
I’ll now hand over the call to Mr. Sanjay Jain, the CFO who will take you through the financials. Thank you.
Sanjay Jain — Chief Financial Officer
Thank you, sir. Thank you, sir. Let me take you through the quarterly numbers first on year. On year basis the sales volume is almost at the same level. However, for Delhi stationary business to show sales volume grew by 12%. Revenues for quarter four FY25 increased by 20% to rupees crore. Again 526 crore in FY quarter four FY24. This is backed by the volume growth from derivative products and increase in realization. EBITDA grew by 12% rupees 173 crore against 155 crore in Q4FY24. This is partly on account of increased volume contribution and contribution from value added products and partly on account of improvements in realization of certain products.
Tax increased by 13% to rupees 87 crore in Q4FY25 against rupees 77 crores in Q4FY24. The margin stood at 14% for financial for the year as a whole FY25. We ended the year with highest ever revenue of 25. 2,565 crore. We witnessed growth of 33% compared to FY 2024. The additive and stationary business contributed 54% of the revenue in FY 2025 and compared to 45 in last year. The capacity utilization of the plant for FY 2025 stood at 81% against 78% in last. Previous. Last year EBITDA grew by 48% to rupees 711 crore leading to EBITDA margin of 28% compared to 25% NY 2024. The pack jumped by 82% to Rs. 357 crore compared to rupees 196. Corrode as on FY 2024. This overall improvement in earning of the company. Thus the capital employed improved to 25% for the year ending 31 March 2025 compared to 17% as on March 2024.
This is including the capital work in progress. If we exclude capital work in progress, the RFP stand at 28%. Our net debt to EBITDA has remarkably improved to 7 times at the end of March 2025 against 2.0 at the end of March 2024. This is mainly on account of reduction in debt and increase in the overall profitability of the company. Lastly, the rating is also updated to Crystal rating. Appeal to Crystal AA stable from Crystal AA minus positive outlook now we can open the floor for question and answer questions.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin 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 return. Yourself from the question queue you may press star. And two participants are requested to use handsets only while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have our first question from the lineup. Dikshant Gupta from GOG pms. Please go ahead.
Unidentified Participant
Yes. So my first question was like the realization for Caustic soda and some of the products will improve but for some products like hydrogen peroxide, the realizations have dropped. So what is the plan to maintain margins on that?
Maulik Patel
That’s where we are with try to diversify our business model, getting into different set of products. So currently a quarter the hydrogen peroxide relations were down. But at the same time the derivatives there were other products which had compensated for that. And that’s where the average EBITDA we have landed up around 28%. And considering the situation, we believe that on a longer term basis 25% is something which is achievable. So I mean that is something business model and the revenue mix will help us to have a sustainable margin growth henceforth. I mean going forward as well.
Unidentified Participant
Okay, and the CapEx for the next year, what are the plans for the CapEx like, where will it be deployed?
Maulik Patel
So capital expenditure, we have announced to expand CPUC resin by adding another 75,000 tons of capacity. For CPUC resin we are adding Fe0 hydrogen. I mean we are expanding Fe0 hydrogen as well. So we will reach from 50,000 to 1 lakh tons of capacity by first half of FY27. So in line with that, this year we are expecting to spend the capex around 450pr.
Unidentified Participant
And for the newly commissioned plant, when will the, when can we expect the commercialization to take place?
Maulik Patel
So this year we have commissioned the CBD CBD compound and the turocolins plant. So all the three plants is ramping up on a and ramping up. So I guess for close volumes by end of this year, maybe around December, January we’ll reach optimum kind of thing. And CPDC and Raisin and Kapong board are also ramping up in line with the demand that is growing.
Unidentified Participant
Okay, and regarding the solar power plant, what are the expected cost savings from it when it will be completed?
Maulik Patel
So we have already commissioned, I mean the 18.34 megawatt we have already started almost two years before this sign. So that has always started contributing to the top line. Sorry, bottom line. And in terms of cost saving it is almost, you can say 25, 30% cheaper than green price.
Unidentified Participant
Okay. And for now my last question will be what what is the highest margin product and what percentage of sales are it and what is the market share of the highest selling product?
Maulik Patel
I mean see, we have diversified products and the margin that we guide is in the range of around 20. But we avoid giving product wise numbers.
Unidentified Participant
Okay. Okay, thank you.
Operator
Thank you. We have our next question from the line of Neerajumadia from Anvil Wealth. Please go ahead.
Nirav Jimudia
Yeah. Good afternoon sir. I have a few questions to ask. So first is on the ECU realization. So if you can share what was the issue realization in Q4 and also if you can share how much was chlorine negative this quarter?
Maulik Patel
For the quarter for the Q4 was around 33,000 rupees. And chlorine the chlorine was somewhere around negative 5,000 rupees.
Nirav Jimudia
Okay. Also if you can share like how has been the scenario currently in terms of the issue relation? Because I gas chlorine has further improved from April. So if you can share your thoughts here. A and B what was the capacity utilization of the caustic plant in 4th Q of FY25?
Maulik Patel
Yeah, so yeah, chlorine in terms of chlorine we are seeing, you know, a lot of derivatives are expanding. Our internal consumption are also increasing. So going forward definitely it looks better. But looking at the long term in India we believe that now bigger capacity of caustic chloride is coming. We feel now follow capacity of chloroalti will not be feasible in India looking at it going forward. So chlorine price may improve down the line in India. But as a derivative I think right now all chlorine derivatives because of the agro is revived. Agro business has revived and and it is moving on the positive side in terms of CPW is doing both in India in terms of monofluoroacetic is also doing good. So a lot of additional chlorine derivatives are also increasing in the capacity in the demand in terms of chloroviclen or in terms of other derivatives also.
So we are looking very positive looking at the long term in terms of the chlorine application in India will increase further down the line. So we don’t see the last quarter the negative margin was there will remain. Will be better off in the coming time. That was the scenario. But it also depends on the caustic soda demand. And globally the caustic soda demand will remain robust in terms of the alumina, in terms of the nickel consumption, nickel mining and in terms of the alumina consumption of the caustic product globally.
So that is remain firm globally. And I think the pressure will remain on the chlorine side only because of the caustic strongness. But I think we are going to be better than in the last quarter going forward.
Nirav Jimudia
Got it. Sir, just to add a bit, you mentioned that our captive chlorine consumption is 76%. So two things here. One, how much would be the pipeline since out of this 76%. And you also mentioned that chlorotolenes is expected to reach around full utilization by the end of this year. So is it safe to assume that Once this reaches 100% utilization, our captive chlorine consumption or captive chlorine consumption will go up by close to around 100 tpd?
Maulik Patel
Yeah. What is the chlorotoline consumption? At the same time we are also expanding PPBC as well as epicloiding. So once everything will be commissioned to reach that optimum level. Definitely it will take time after commissioning of the plant. But once it reaches optimum level, I think we are 90% going to be your internal and captivated themselves going forward. And the pipeline customers are hardly. It is 20% maximum right now. And that is going to be remain constant. I don’t think it will increase further from this level.
Unidentified Participant
Okay, so effectively 56% captive chlorine would go up to close to around 70% once all these three facilities.
Maulik Patel
Yeah, 170 to 75%.
Nirav Jimudia
Yes, got it. The second question is on the peroxide. So I guess we have been operating the plant at around optimum utilization for last so many quarters. So let’s assume that after consuming close to around 4,000 metric tons of hydrogen for the captive hydrogen peroxide plant, how are we utilizing the excess hydrogen? So are we converting those hydrogen to the flaker plant or are we selling those hydrogen in the outside market? And how you see plans for other downstream products of hydrogen. Or we’ll keep selling hydrogen in the outside market.
Maulik Patel
We are selling part of hydrogen. Just to give you answer about this. It’s not one dedicated answer. We are doing all mix. We have a pipeline customer in the hydrogen peroxide application. We have they’re selling outside in the market also some part of it. And we are also having a pipeline hydrogen customer also.
They are mining from us and so all mix kind of. And we are also using in the Flaker. So that’s how we are managing our hydrogen balance. Sometimes because of the downstream people who are mining the hydrogen hydrogen pipeline. This hydrogen requirements keep on changing and the barrier keep on changing. But we are using all multiple kind of options to consume the hydrogen. And I think this will remain as it is going forward. Also because such a big quantity of hydrogen I don’t think it is possible to manage for one particular application or even if you.
There is a great demand in terms of the consumer also you are able to manage everything to sell outside hydrogen. You know this much quantity because you need a huge infrastructure around hydrogen to sell continuously this much quantity what you are producing to outside which is not possible. That’s what we think.
Nirav Jimudia
The last question. What will be the capacity of the Flickr plant?
Maulik Patel
We have a 200 ton per day caustic soda plate out of what we produce 1000 dbd of Kofi soda plant. And so.
Nirav Jimudia
Yeah. And the utilization there would be higher than the overall caustic soda plant.
Maulik Patel
That utilization is almost.
Nirav Jimudia
Okay, got it. Thank you so much and wish you all the best. Thank you.
Operator
Thank you. We have our next question from the line of Vedant Saga from Nirmal Bank Securities. Please go ahead.
Unidentified Participant
Congratulations on a great set of. We have a plan of 450 crore of carpets in the current year. So as a plan. Hello. We cannot hear you. Yeah, your voice is quite muffled. Can you listen now? Yeah. Hello. Yes. CAPEX plan in the current year. So the mode of financing we have decided on that financing.
Maulik Patel
Yeah. So 450 cr. What we are saying is for financial year 2026. Yeah. Yes. And the financing we are going to do it by death and debt mainly. Yeah. If required going forward. But as of now there is no. Yeah. They’re going to manage from the internal approval. Internal accrual only. Like no QIPs or debt planning for that Definitely not. But if required we can plan from the bank going forward. And the internal is the option.
Operator
Thank you. We have our next question from the line of Pinaki Banerjee from AUM Capital. Please go ahead.
Pinaki Banerjee
Hello.
Operator
Yes, sir, please go ahead.
Pinaki Banerjee
Hello.
Operator
Yes, we can hear you, sir.
Pinaki Banerjee
Okay sir, my first question is actually can you just give a general your view on.
Operator
We can’t hear you.
Pinaki Banerjee
Give a general outlook as to how the general costly soda prices are shaking up at the international level. And what is your outlook for this?
Operator
Sorry, your voice is very fumbling. We can’t hear anything.
Pinaki Banerjee
Okay. Am. Am I audible? Yes. Hello.
Operator
Yes, hello. Go ahead.
Pinaki Banerjee
Am I audible?
Operator
Yes. Yes.
Pinaki Banerjee
Okay. Okay. So can you just give a general outlook on how. How the international price acoustic soda prices are shap at the international and both at the domestic level. And what is your current outlook for the future?
Maulik Patel
Phosphate product are remaining globally. Recently I think the downstream chemistry which is used chlorine globally which is almost 60 to 65% that is very low. So somewhere even PBC cycle is on the lowest level right now. And because of that caustic is remain firm. That is one of the reason and second biggest reason is that the demand from the alumina side and the nickel mining side it is also very strong. So because of these two major reasons we are thinking that the caustic solar will remain firm even current financially as well as going forward.
Pinaki Banerjee
Okay sir, and my last question is in your presentation the page 39, the investments it’s now showing about 77 crores. And the last two financial years it was nil. So can you explain what is are these liquid investments or something of else?
Maulik Patel
That is surplus cash that we had, that we have.
Pinaki Banerjee
Okay, so it’s liquid. So you are having almost the cash and investment almost 100 crores of surplus cash in your books now.
Maulik Patel
Yes.
Pinaki Banerjee
Okay fine sir. And so that’s all for my end and thanks and all the best for the future and thank you.
Operator
Thank you. We have our next question from the line of Manish Badani from BNK Securities. Please go ahead.
Unidentified Participant
Sir, for the board setup number. So my first question is as you mentioned your previous that your day to day specialty business increased to 52%. Was this 48% yy. So why is there 200 basis points hit in the EBITDA margins?
Sanjay Jain
See the EBITDA margin which was in Q4, that was on the higher side considering we were in a cycle where the realization, I mean the raw material prices were already low compared to the realization. So that was at 30% in Q4, even at 28% is something which is I guess a good number. And considering the guidance that we have given, it was around 25%. So it’s not a drop of trade by 2%. In fact, 28% expense is more like a realistic number rather than 30%.
Unidentified Participant
Okay, got it, Got it. Ansha, is there any outlook for the FY26?
Sanjay Jain
So considering the CapEx that we have commissioned this year, we should be seeing a volume growth around 10 to 15%. And that will drive the value growth as well. And considering the products that we have commissioned is of high value compared to what we were. So the value growth should be on higher side.
Unidentified Participant
Okay, sir, thank you so much for the answer. Thank you.
Operator
Thank you. We have our next question from the line of Jelani from Swan Investments. Please go ahead.
Unidentified Participant
Hi sir. Thank you for this opportunity. So sir, what could be the revenue contribution from a chlorotodian project this year?
Maulik Patel
So we have just commissioned the flow run plant in June for FY24. And this is a product which will take, I mean we have started the prior production. It is, we are sending it to our customers so approval and everything will take around six months to eight months. So we believe that around end of Q, I mean in Q4 of FY26 we should reach optimum. So as of FY25 there is hardly anything which is coming from the closed office.
Unidentified Participant
Okay, thank you. And so assuming that in H1FY27 our ECH and CPVC capacities come on stream, then is it right to assume that our chlorine captive consumption should reach around 85 to 90%?
Maulik Patel
Yeah. So in FY27 we will commission the plant. So they will run partially and they will consume chlorine and hydrogen both. So we assume that 80, 85% is something definitely achievable.
Unidentified Participant
Post that do we wish to further expand our capacities within the chloro alkali space or do we wish to enter any new chemistry.
Maulik Patel
Yeah, like existing campus. When we have 165, we are having a 10 to 15% clear cut for any derivatives we can do it further integration and we can reach to 100% integration of the chloride going forward. But in the new location which is 1km away we have already taken a land of 100 acres there. We are looking for a new value chain and new currency. We are not going to enter in the similar chloro alkali in that.
Unidentified Participant
So have you identified which chemistry we are planning to enter and would it be possible to share the details?
Maulik Patel
Not at this moment of time. So once board will approve it? Definitely we will do it. But yeah, we are looking for a couple of chemistry which we are planning to do it based on the India growth story on the next 10 years.
Unidentified Participant
So what could be the broad capex if you could you know just quantify in the new chemistry Rough estimate please.
Maulik Patel
So overall you can divide the entire project in the. In the couple of phases also so that that the planning in terms of the phases, how many phases we will do it the entire capex it is not yet decided and board has not approved it. But once the board will approve we will do it. The phase wise investment, how much we are going to do it in the new new location.
Unidentified Participant
Okay, so that’s it for myself. Thank you and all the best. Thank you.
Operator
Thank you. We have our next question from the line of Rohit Sinha from Sunidi Securities. Please go ahead.
Rohit Sinha
Yeah, thank you for taking my question sir and congratulations for good set of numbers. So some of my questions are already answered just couple from my side. One is one is on the pricing side for both CPVC and ECH side. How the trends are right now and how we are looking for at least for next couple of quarters.
Maulik Patel
Yeah, so looking at the next couple of quarters we are looking the CPVC on the downward side in terms of the value realization and then the ECG is on a slightly higher side compared to the past quarter because of. Yeah. So I think this is what we see in next couple of quarters here.
Rohit Sinha
Okay. Okay. And possibly our overall capex which we are planning is I think will be over by first half of FY27. That be right assumption and post that are we looking to expand this chlorotoline also if things goes as per our plan
Maulik Patel
So chloropholine we just commission it as Milin has mentioned that in the first half it will mostly going to be the approval of the derivatives of the chlorotoline which we are planning to have once we will reach optimum level by end of this financial year. Probably we might decide to accept. Expand further on the derivative side or the chlorotolin side probably by that point of time. But till that time I think we have. No, no. Right now we are. There is no plan to expand further going forward.
Rohit Sinha
Right. As of now. Okay. Okay. And. And what kind of customers as of now we are targeting for this chlorotolane and if. If at all things are meant for approval. So which sort of customers are there domestic or export? Also if you can highlight
Maulik Patel
It’s a mix definitely export customers are there which are majorly focused on the agrochemicals intermediate manufacturing company and Indian specialty chemical companies who are doing whole manufacturing on behalf of all multinations. They are going to be our customers along with some of the pharma intermediate companies. And. Well, because I think the agrochemical and the pharma both having application of pure volume derivative mostly it is saying that 70 and 30% in the ratio 30% is in the pharma intermediate and 70% belongs to the agro intermediate.
Rohit Sinha
Okay. Okay. So overall broadly what we have been highlighting that Almost close to 15% 15 to 20% kind of volume CAGR next two years is possible. It’s still intact given the kind of capacity addition we have. Are we still on
Maulik Patel
15% volume growth is possible in next couple of years based on the effects what we are planning in terms of chlorotoluene will reach to optimizing level PPVC additional capacity as well as epicloride additional capacity.
Rohit Sinha
And sir, just last question on the chlorine side. So else with this capacity maybe we will be touching 85, 90% kind of level. Then are we looking anything on adding capacity for caustic also going forward if at all we need further requirement for chlorine or would it be purchased from the outside if at all it’s required?
Maulik Patel
We are not looking for a major possibility for expansion on the chloro alkali side but minor debottle making kind of things we will definitely consider at the right point of time once we reach that 90% chlorine integration.
Rohit Sinha
Okay. And that I think would be done within how much kind of amount cubics.
Maulik Patel
It’s too early to comment and it is just a debottle making kind of thing. I don’t know if it is going to be major one.
Rohit Sinha
That’s it. From my side thank you and rest of us thank you.
Operator
Thank you. We have our next question from the line of Rohan Mehta from psycom Advisory Limit llp. Please go ahead.
Unidentified Participant
Hi, thank you so much for taking my question. Am I audible? Yes. Perfect. So certain back in 2022, a few years ago management had articulated a five year revenue vision of about 5000 crores by FY27 which is essentially implying revenue to double from the FY 2025 base of 2500 crores. So I wanted to understand, is the 5000 crore revenue still an aspiration for FY27 and if yes, how would this revenue come about? That’s part one and part two. What would make up the large contribution to growth in the next two years? Essentially what would be the key drivers?
Sanjay Jain
Right. Coming back, the drive growth that we are expecting in the coming years will be coming from the volume growth from the CAPEX that we have executed. So like this year the FY26 the growth should come from the additional capacity of PPEC that we have done and also the oxycodone capacity utilization inching up towards 85%.
So this volume growth will be for FY26 and in FY27 the capacities that we have are expanding in CTVC resin and ethychlorohydrin will contribute the volume and again that will drive the value growth. So considering that we believe that on a CAGR basis for next four to five years around 15 to 20% of growth is something which is achievable considering the CAPEX plan and assuming the demand that we have anticipated might continue. So on a CAGR basis 15 to 20% growth for next five years is something which is visible.
Unidentified Participant
Right, right. And any Update on the 3 to 5 year vision you would like to share with investors at this time barring the 15 to 20% growth that you see for the next four years.
Maulik Patel
I didn’t get you. This is for what?
Unidentified Participant
So any vision statement you have for the next five years, sir, in terms of revenue, in terms of margin, in terms of growth or where you wish to expand.
Maulik Patel
Yeah. So we are working on a new value chain of the chemistry which we can expand for next 10 years and that strategy we are working on once the board will approve, definitely we will share with that. But that we are doing it for our new location which we have taken back two years back. We have taken a land of 100 acres where we are planning to have a new wedding day so that we are working right now and once more will approve, we will disclose to the investors as well.
Unidentified Participant
Sure, sure. And also the 5000 crores, is it something we are expecting in FY27, FY28 and the 10 to 15% I believe volume growth you said. And considering that the 15 to 20% CAGR which will be essentially value growth, will that be enough to achieve the 5,000 crore revenue or will we require an additional CAPEX beyond what you have currently instituted?
Sanjay Jain
So see the 5000cr, the amount that we had given was based on the realization I guess two years back when everything was at peak. So considering currently and it will be difficult to give any specific number in a specific year though we have our internal guidelines and targets that we are looking for. But it will be difficult to give any numbers specific. But one thing I can give you is the volume growth that we are expecting around 10 to 15% on a PhD for next five years.
Unidentified Participant
Sure, that’s it from my side. Thank you so much for taking my questions. Thank you.
Operator
Thank you. We have our next question from the line of Dhruv Muchar from HDSE amc. Please go ahead.
Dhruv Muchhal
Yes sir, thank you so much. So the first question is on the power cost. So why we see an increase in the power cost I believe and also some increase in QQ basis. I believe volumes are broadly flat. So what’s driving this for the quarter?
Maulik Patel
Sorry Dhruv, can you repeat?
Dhruv Muchhal
The power cost for the quarter seems to have increased and also on both QQ yy I believe volumes are broadly flat. So what could be driving this?
Maulik Patel
Yeah, so the one major point was compared to last year, the similar quarter, what we generate, the solar and solar and wind which was this quarter, I think it was little lesser in terms of the percentage because it is related to the natural phenomena. So it was little less unit generation compared to the last year.
Dhruv Muchhal
And. And the second thing, yeah there is a slightly increase in the course also compared to last year. And so second point was on the volume growth for the quarter. So on the presentation you’re mentioning that volumes are broadly flat but of that the derivatives have increased. So I’m just wondering what are the key, you know, products where the volumes have declined.
Sanjay Jain
That is majorly from the CEC and the eth because last year, this quarter. So last year this quarter ECH was at a lower utilization which has reached around 85, 90%. And CPVC also last year the capacity was around 30,000 only. Whereas from 2024 additional capacity of 45 also came. So that also contributed in terms of volume. So on the derivative side, let me say that is majorly coming from these two products.
Dhruv Muchhal
Yeah, but what are the products which saw a decline yoy? So these two I understand saw meaningful growth.
Maulik Patel
As you mentioned, hydrogen peroxide has slightly declined compared to last year.
Dhruv Muchhal
So the realizations are also lower and volumes are also lower. That was the key. And lastly just a clarification, you’re guiding for 10 to 15 volume growth for FY26. So this primarily comes from your CPVC and ECH ramp up. I believe chlorotoline will come probably at the end of the quarter. But for the year broadly these are the two key drivers for.
Maulik Patel
Yeah, chlorotography is also going to start but it is not going to be the major contributor in this financial year. But it is also going to contribute in terms of the revenue and top line. And majorly it is coming from the CPV the additional capacity what we have commissioned in last year, I think this will pick up in this financial year. And as well as the eph, the EPH capacity will run on the full slide. And the caustic also we can run caustic also efficiency of the will also improve in terms of the operation.
Dhruv Muchhal
Okay, so we have made some changes that we can optimize it better. Is it?
Maulik Patel
Yes. Every eight years you don’t you normally do a major major change in the caustic soda membrane and electric that we have already done that is going to be completed in May. So probably from next quarter onwards the operational efficiency of the cosmic product plant will also improve.
Dhruv Muchhal
Great. This is very helpful and thanks a lot. Thank you.
Operator
Thank you. We have our next question from the line of Parth Mehta from Valium Capital. Please go ahead.
Parth Mehta
Hi, just a bookkeeping question. This year the inventory has been 125crores higher than the previous year. If you can just help me, which products do we have such high inventory?
Sanjay Jain
So our inventory has gone up in line with the sales as well. And yes it is bit on a higher side but we refer to give importer twice inventory breakup. But if you consider in terms of the days of inventory, that is in nine days what it was in FY24. So if you see our inventory grade that was around 45 days in FY 2024. So in FY 2025 is 47 days. So whatever it has increased it is in line with the increase in sales.
Operator
Thank you. We have our next question from the line of Tanish from Boring amc. Please go ahead.
Unidentified Participant
Hi, am I audible?
Operator
Yes, Please go ahead, Tanish.
Unidentified Participant
Yeah, so I wanted to understand more on the cpvc. You said that the pricing looked on the downward side in the coming quarter. So what is driving.
Maulik Patel
Sorry about cbc. Demand growth is less compared to last year in terms of the CPVC demand. And the second because of the real estate sector is little bit lower right now in terms of the growth. And the second is the raw material price has also gone down for the which is a pbc. So PVC is on the lowest cycle globally right now. Because of these two reasons we are thinking that it is going to reduce the in terms of revenue. In terms of.
Unidentified Participant
Do we see our margins being affected in this segment?
Sanjay Jain
The margins again it will be in line. Considering the raw material price has gone down in line with the realizations it will be very good. Very to us.
Unidentified Participant
Oh, oh yes. Thank you.
Operator
Thank you. We have our next question from the line of Rohit Nagraj from BNK Securities. Please go ahead.
Rohit Nagraj
Thanks for the opportunity and congratulations. Good set of numbers. First question is in terms of slightly longer term from a strategy perspective once we go to say FY27 we will be generating the meaningful amount of cash flows. So from an expansion perspective will we be looking at the internal cash flows or will we be going for still managed capex? Just to get a broader perspective on this I know it’s slightly longer term at how the management is thinking about this year.
Maulik Patel
Thank you for the CAPEX side. Normally we always give a priority once we decide the capex and going forward it even though revenue and the finance you can manage from the internal but it is not go hand in hand with the capex what we are planning to do it because capex once you start and we would like to go on the same speed without any interference.
So if required we might go for a debt Even though internal accruals it looks okay in terms of a yearly basis. But sometimes in a peak cycle of the capex you might need to borrow from the bank. So we can. We are having the same once we decide we don’t want to disturb the project because of the finance. Even though if you are able to manage from the internal door. So that’s why we always keep a priority for the project execution rather than the finance.
Rohit Nagraj
Yeah. The second question is again from the broader perspective. Given that there will be couple of large PVC projects which are coming and mostly backward integrated. There will be an availability of caustic although they will be consuming chlorine. So do see that the CEOs will remain closer to say 30 plus minus 11. Given that maybe chlorine realizations will go up but availability of caustic will keep the caustic prices down. So to that extent ECU will be say 30 rupees plus. What is your broader thinking on that perspective?
Maulik Patel
Thank you. Normally if you see the caustic soda price in India which is at par with the global prices of caustic soda. So definitely what will. I mean majority the players who are coming in a much bigger capacity that focus they are not able to manage. So definitely the major volume will go out in the global market and it will be adjusted according to the global prices of the coffee fluoride at that point of time.
And the chlorine we believe because of these two capacities of coffee fluoride is coming up. We believe the chlorine may go on the positive side. That’s our point of view looking at the long term. Because even though the smaller capacity which is required for the setting of a plant of chloroaltae will not be feasible going forward and economy of scale of has already gone up in terms of setting up a greenfield facility. So looking at the long term we are looking the caustic will definitely have stability globally. But at the same time the chlorine price will move forward in terms of the international level also which was the lowest right now in India.
Rohit Nagraj
Yeah. Thanks for answering all the questions and all the best. Thank you.
Operator
Thank you. This would be the last question for today and I now hand the conference over to the management for closing comments. Over to you, sir.
Maulik Patel
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’d like to thank you all for joining us here today. Please feel free to reach out to our IRS. If there are still any unanswered questions. Thank you, everyone, for your participation.
Operator
Thank you. On behalf of MK Global Financial Services limited That concludes this conference. Thank you for joining us. And you may now disconnect your lines.