Himadri Speciality Chemical Ltd (NSE: HSCL) Q1 2026 Earnings Call dated Jul. 18, 2025
Corporate Participants:
Anurag Choudhary — Chairman, Managing Director and Chief Executive Officer
Kamlesh Kumar Agarwal — Chief Financial Officer
Analysts:
Bhavya Shah — Analyst
Sanjesh Jain — Analyst
Rehan Saiyyed — Analyst
Vriddhi Shah — Analyst
Vikas Gupta — Analyst
Prathamesh Dhiwar — Analyst
Vivek Gupta — Analyst
Anubhav Sahu — Analyst
Bharat Shah — Analyst
Vignesh — Analyst
Priti Agarwal — Analyst
Ashit Kothi — Individual Investor
Jaiprakash Kumhar — Analyst
Anand — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Q1 FY’26 Earnings Conference Call of Himadri Specialty Chemical Limited, hosted by MUFG in time. 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. [Operator Instructions] Please note that this conference is being recorded.
Bhavya Shah — Analyst
I now hand the conference over to Mr. Bhavya Shah from MUFG in time. Thank you. And over to you sir. Thank you. Welcome to the Q1FY26 earnings conference call. Today on the call we have with us Mr. Anurag Choudhary, CMD and CEO; Mr. Somesh, EVP, Tire and Strategy; and Mr. Kamlesh Agarwal, CFO.
This conference call may contain forward looking statements about the company which are based on beliefs, opinion and expectations. As of today, actual results may differ materially. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. Our DDU Safe harbor statement is given on page two of investor presentation of the company which has been uploaded on the stock Exchange and company website.
With this I now hand over the call to Mr. Anurag Choudhary. Over to you, sir.
Anurag Choudhary — Chairman, Managing Director and Chief Executive Officer
Thank you, Bhavya. Good afternoon ladies and gentlemen. On behalf of Himadvis Specialty Chemical Ltd. I am pleased to welcome you all to our Q1 FY26 earning call. We deeply value your continued support and engagement. We are delighted to say that Q1 marks a strong and focused start to the new financial year. It reflects the strategic direction we have been undertaken one rooted in capacity expansion, technology driven product development and deeper global integration. These initiatives are aligned with our commitment to build a future ready, diversified and sustainable organization.
This quarter was particularly significant as it reflects the core spirit of himatri. Reloading the Next chapter phase is more than just a theme, it captures the mindset driving us forward, reimagining what’s possible through innovation, resilience and sharp execution. From a financial standpoint, we are pleased to report our highest ever EBITDA and pac underscoring the strength and stability of our operations. EBITDA stood at 234 crores while 5 pack came at 183 crores.
On a standalone basis, this performance was led by increase in sale of high value added products, better operational efficiencies, improvement in yield and strong waste heat recovery systems. While the revenue growth was marginally impacted due to correction in raw material prices, our profitability trajectory remains on a firm sustainable upward path.
At the core of our business lies a deep commitment to developing innovative solutions that drive customer satisfaction. Powered by our robust in house research and development. Much like our highly integrated manufacturing capabilities, this enables us to effectively cater to the evolving demand of standardized sectors. We deliver high performance products across diverse segments including lithium ion batteries, paints, plastics, tires, technical rubber goods, aluminum graphite electrodes, agrochem, defense and construction chemicals. Our sharp focus on quality, process control and innovation continues to keep us ahead in a rapidly evolving global landscape.
Post the successful acquisition of Bila Tyre Limited by Marvel Specialty Chemical Limited strategic partner along with resolution applicants Darmia Bharat Refractor Limited in October 2023, significant efforts have been directed towards modernizing and revamping the Bila Tyre plant at Balasore. During the quarter, tangible steps have been continued to be taken to advance the transformation agenda with operations now having commenced at Villa Tire making a pivotal milestone in the journey to establish a high performance future. Ready Specialty Tyre Brand A repressed brand identity was introduced featuring our modernized logo and a redesigned corporate website to reflect this strategic shift.
We are pleased to inform there has been huge brand recall we have seen from the market. The focus is on building a comprehensive product portfolio of specialty tires catching to off the highway tires, commercial vehicles, agriculture, industrial and electric vehicles program on commissioning, the passenger car radio remains on track. This unit is designed to meet the specific requirement of EV and SUV segments supporting expansion in both domestic and export markets. Additionally, a targeted multi platform marketing campaign is being developed to enhance brand recall and engage effectively with contemporary consumers.
In parallel, we made significant progress in building our cleantech and new energy material vertical, a pillar that will define Himatri’s next growth wave. We entered into exclusive technology licensing agreement with Cicona, an Australian innovator in silicon, carbon and anode material. Their SICX technology, proven to enhance energy density by 20% and charging speed by 40%, gives a strong edge in the evolving EV and storage market. With this agreement we have taken a strong step towards localizing this technology and bringing it to scale in India.
In addition to that, we invested in international battery company ibc, a US Headquarters technology developer and manufacturer of chemistry agnostic business lithium ion cells acquiring 16.24 equity stake. IBC has an established manufacturing facility in South Korea which began operation in 2023 and is coming up with a gigafactory in Bengaluru through its joint venture with Mahanagar Gas Limited subsidiary. This Gigafactory is expected to be operational by Q4FY26. Our advanced materials jointly tested with IBC have demonstrated outstanding results fulfilling their stagnant requirements for high performance battery manufacturing. This is significant milestone for the company as it marks the start of commercial deployment of Himadi LFP cathode active and unknown material with IBC presently developing ITS LFP based trouble 2000 using Himatri battery materials. This partnership also opens doors to IBC’s global customer base across US India and East Asia.
While this initiative shape our future, we continue to strengthen our code with an established high temperature liquid coal carpets terminal already official at Halvia, we have now commissioned a new terminal at Manlode. This expansion significantly enhances our logistic capabilities and export competitiveness. In parallel we are setting up a unique facility, the first of its kind in India to extract high value added chemicals like anthraquinone and carbazole from our existing coal tarlets which is expected to be commissioned in Q2FY27. This will help us to reduce India’s dependence on import and unlock greater value from our integrated operations.
We are also entering the consumer segment with the launch of Europress, our high purity napkin valves retail brand backed by 99.5% purity and stain free performance duropress sets new benchmarks in vapor strength and long lasting freshness reinforcing our technical leadership in refined Neptune market. Meanwhile our ground floor expansion of 70,000 metric tonnes per annum in specialty carbon black is progressing well and is on track to be commissioned by Q3FY26. With this our specialty carbon black capacity will more than double to 1:30,000 metric ton making it the single largest specialty carbon black site in the world and place us amongst the top five specialty carbon black producers globally.
As part of Himadri’s vision to become a global frontrunner in production of lithium ion phosphate cathode active material powering 100 kilowatt of lithium ion battery capacity, we are making steady progress on phase one of this journey. This phase involves setting up world’s first commercial electric manufacturing plant outside of China with a planned capacity of 40,000 metric tons per annum. The project is progressing as scheduled and is expected to be operational by Q4FY27 with full scale operations commencing in FY28. This facility marks a significant milestone not only for HIMADRI but also as a step towards as we look forward we are entering a new phase, one that is bold, transformative and purpose driven.
With a robust pipeline of technologies, disciplined execution and clear roadmap we are confident of delivering sustainable and profitable growth. The next three years will be defining years for new age materials, deepen our global presence and capture opportunities across energy transition, especially chemicals and downstream value chain. We thank you for your continued trust and support as we skip this new chapter of Growth Himalay Reloaded.
With that, I would like to hand over the proceedings to our CFO Mr. Kamlesh Agarwal, to walk you through the financial performance in details.
Kamlesh Kumar Agarwal — Chief Financial Officer
Thank you, Anuragi. Good evening everyone and thank you for joining us today. Hope everyone has had a chance to review our financial results and the latest investor presentation which has been made available on Postly stock exchanges and our company’s website. We have commenced the financial year with a clear focus on execution, operational excellence and disciplined financial prudence.
Let me begin with the key financial highlights of the quarter. Sales volume have increased to 1 40,090 metric ton as compared to 1 39,175 metric ton a year ago. Consolidated revenue for the quarter stood at rupees 11.18crore as compared to 1200 crore a year ago. The revenue was marginally impacted majorly because of correction in raw metal prices which led to the reduction in the finished good prices. Our EBITDA stood at rupees 235 crore as compared to 188 crore a year ago with a growth rate of 25%. Our pact has significantly increased to rupees 179 crore from rupees 123 crore a year ago with a growth Rate of 46%.
On a standalone basis, the revenue for the quarter stood at Rupees 1100 crore and as compared to 1200 crores a year ago. Our EBITDA stood with 234 crore as compared to 188 crores a year ago. With a growth rate of 25%. Our pack has significantly increased to Rupees 183 crore from Rupees 123 crore a year ago with a growth rate of 48%. Our company has net debt was Rupees 107 crore and for Q1FY26 while ROCE was 32%. Excluding investment and capital work in progress as of 30th June 2025. We remain committed to delivering strong value through our strategic priorities and operational rigor.
That’s all from our side. We will now open the line for question-and-answer.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. [Operator Instructions] The first question is from the line of Sanjesh Jain from ICICI Securities. Please go ahead.
Sanjesh Jain
Thank you. Thanks for this opportunity. I have a few questions first on the graphite. Today there was a news article telling that US has put some 93.5% EDD or has proposed to put a 93.5% EDD on Chinese graphite and we intend to be in the anode active material. How do we see this as an opportunity? Because we have generally spoken about cathode. Not so much on the cathode. Are we. Are we looking to harness these opportunity as well?
Anurag Choudhary
Yes. Good afternoon Sanjay. So the effective duty will be 165%. Already there is duty on Chinese anode with this additional duty coming in. So this is a great opportunity for us to supply material to US.
Sanjesh Jain
So it’s open up. Yeah. What exactly are we looking to export? Because in anode we are not spoken much about and we are not announced any K types. Can you give more color on the anode side of the business?
Anurag Choudhary
So anode we have been doing a lot of research and development and our work is progressing very strongly. And at right point of time we will announce the capex once the engineering and now we are working on the engineering part of it. Once the engineering is completed, they’ll announce the CAPEX and time frame with capital investment.
Sanjesh Jain
Right now we have not announced anything on anode?
Anurag Choudhary
No, no, no, Nothing, nothing. But we are making lot of, you know, groundwork for that in terms of customers approvals, sending samples across geographies to OEMs. All those things are already moving very fast.
Sanjesh Jain
Got it. Got it. My second question is on the volume growth. Last year we had a very healthy volume growth of course of 15, 16%. Now that volume growth looks to be tapering down. How are we planning to see that we sustain the volume growth at at least 8, 10%.
Anurag Choudhary
Definitely looking forward from Q4 onward you will see a strong volume growth once the capacity like carbon like capacity will come in place in Q3. So from Q4 you will see that capacity coming up. In addition to that we are debottling some colta pitch capacity also that will also come into Play. So from Q3 Q4 you will see volume growth also coming up.
Sanjesh Jain
How much debottle making in quota distillation are we looking at right now?
Anurag Choudhary
So currently we are at 500,000 metric ton. We are looking at debottling another 100,000 metric tons.
Sanjesh Jain
So from 5 we will go to 600,000 metric tons, right?
Anurag Choudhary
Yes.
Sanjesh Jain
And be commissioned by?
Anurag Choudhary
By Q3.
Sanjesh Jain
By Q3, the work is —
Anurag Choudhary
This is not commissioned, this is just debottling. So there is no assets commissioning at a one go. I mean you will see quarter on quarter improvement in the numbers from next quarter onwards.
Sanjesh Jain
And this volume constraint, what we are seeing is purely because of the capacity utilization and not that we have seen any softening in demand?
Anurag Choudhary
No, no, no. We are like carbon gap, we are running at 99%.
Sanjesh Jain
Hello?
Anurag Choudhary
Yeah, we are at very high capacity utilization. So this is because of the capacity constraint, not because of demand issues. So basically if you look at the turnover also the top line compared to the previous corresponding quarter last year came down by 100 crores, whereas the volumes are more or less same. The reason is the raw material price has considerably corrected and because of that the finished product price has also come down. It’s the aspect of that.
Sanjesh Jain
No, no, that we appreciate that I got when you initially made that remark. But purely on the carbon black, we have seen orange carbon black. Announcing a planned shutdown in Europe region is more of a specialty or it’s more of a rubber carbon black. The question is that do we see that as an opportunity as well for Himadri?
Anurag Choudhary
Yeah, definitely. Since we are strong in Europe, we definitely look forward to that as a great opportunity.
Sanjesh Jain
How much of a carbon black today sold in Europe?
Anurag Choudhary
So you can say currently we are exporting around 20% of our carbon black, 15 to 18% of our carbon black to European market.
Sanjesh Jain
The export contribution of Europe in carbon Black is almost 15 to 20%.
Anurag Choudhary
Yeah.
Sanjesh Jain
Got it. And the last one is on the gross profit per kilogram. That looks like improving secularly. We are 15% YoY growth or 16% YoY growth. What if it’s driving a consistent steady increase in the gross profit per kilogram? That’s number one. Number two, sir, when you say that you have seen favorable product mix, when you say favorable product mix, can you elaborate which product has grown faster, where the margins are higher and which products we are curtailing where margins are lower. Some color on the mix would help us appreciate this improvement in the gross profit and EBITDA per kg.
Anurag Choudhary
Sure, sure. So the product mix has changed like we were doing More percentage of crude naphthalene. Now the percentage of refined naphthale has significantly improved. Second, in terms of specialty carbon black, they are moving up in the ladder of speciality carbon dioxide. With that the margin per megaton margin keeps on improving. And regarding the gross margin we have been able to improve on the gross margin basically because of operational efficiencies, improvement in yield and reduction in wastage. So we have also installed the wastage recovery system which helps us to recover all the high temperature gases can be used and used in the heating back in the process. So all this together has been helping us to improve on our gross margin and plus high value added products. Like I told refined naphthalene high quality means very high grade of refined naphthalene that has higher value addition, high grades of speciality carbon that specialized pitches going into defense. All these things are helping us to improve on the margins and these are sustainable.
Sanjesh Jain
And then what — how much more can we grow from here on the EBITDA per kg we are already at 17 rupees ETA per kg. How do you see this number going in say FY’26 and FY’27.
Anurag Choudhary
We are confident of this number being maintained. And gradually we see upward movement in these numbers. I don’t want to give specific numbers but yes for sure you will see upward movements.
Sanjesh Jain
Very clear. Sir, some questions in the tire business now that we have started branding and all have you started the production and sales as well or. Right now we are focusing on the softer side of the market.
Anurag Choudhary
No, no, no, we never did any softer side. Nothing went free from the day one. We have been selling with consideration. So for June quarter we did a sales of 18 crores. Okay, 5 crores from. Sorry, 5 crores from tire business. And it just started on the 29th of May. So now in the current quarter you will see a good slight ramp up and quarter on quarter you will see improvement. But one thing is there when we are going to the market we have already appointed 20 distributors and below this distributor they are, you know many dealers like every distributor have ranging from 8 to 20 dealers. So this is this. We are getting very strong brand recall from the market. So people are highly appreciating our, you know brands like BT112 then ultra mileage, Kala Pathar. All these are very well appreciated in the market San. Plus all these are very well appreciated in the market. And when we are going to the customers, when they are saying Bilata is back we are getting very good response.
Sanjesh Jain
We have appointed the distributor dealers. And this is what mainly into the east region?
Anurag Choudhary
No, no, no. We like already we have appointed in 11 states. And every quarter this will be increasing without increasing production. Like every quarter you will see increase in production and higher capacity utilization. So with that you will see more and more state being there.
Sanjesh Jain
Got it. Just one last bookkeeping question. We have this first time purchase of stock of 57 million or 5.7 crore. What is this?
Anurag Choudhary
What?
Sanjesh Jain
Purchase of stock in our cost of goods sold for this 5.7 crores of purchase of stock which we have sold. What is really this —
Anurag Choudhary
It’s a hundred percent subsidiary of Himadri Bila Clean. A Himadri Clean. So that is buying from dbrl the material if they are making and selling. So it’s the marketing arm of Himadri. That is what the stock purchase.
Sanjesh Jain
Okay, okay. But in console level that get knocked. That should get knocked off, right? But this time seeing consolidated.
Anurag Choudhary
Consolidate will come because we are buying from the outside in tdb. I’m buying from dbrl. That’s why it is coming in the console as a separate entity, separate line item.
Sanjesh Jain
When is this entity expected to come within the Himadri? Because I thought the manufacturer.
Anurag Choudhary
There’s no intention as such now as of date of its coming into the market.
Sanjesh Jain
Okay, I will take. I will take this offline for more clarity. But. But this is very clear. Thank you very much sir. And best of luck for the coming quarters. Thank you, sir.
Operator
The next question is from the line of Rehan Saiyyed from Trinetra Asset Managers. Please go ahead.
Rehan Saiyyed
Good afternoon team and thank you for giving me the opportunity. Sir, I have a couple of questions regarding. So first of all, can you please elaborate on how inverted products are —
Anurag Choudhary
No, no, you’re not audible please. Your voice is cracked.
Rehan Saiyyed
Okay, sir, now I’m on. Am I audible now?
Anurag Choudhary
Yeah.
Operator
Sorry to interrupt you sir. So can you please use your handset?
Rehan Saiyyed
Ma’am, I am already on handset.
Operator
Okay, sir.
Rehan Saiyyed
Yeah. Now, it’s clear now.
Anurag Choudhary
Yeah, it’s better. Please tell me.
Rehan Saiyyed
Sir, could you please elaborate on how Mati’s product integration and tribunal she turned out in quarter one 26. And any visible contribution or pipeline build upon this acquisition for going forward?
Anurag Choudhary
Please speak clearly. Your voice is not clear at all.
Rehan Saiyyed
Now I am clear, sir.
Anurag Choudhary
Please tell me.
Rehan Saiyyed
Sir, can you elaborate on how invasive product integration and revenue synergy panned out in quarter one and visible contribution or pipeline build up from this creation for going forward?
Anurag Choudhary
So inverty has developed nanotechnology for battery material and this is in development stage. So looking forward once this materializes and the technology matures but then we will have you know very big difference in terms of what we’ll be able to produce in terms of raw material component for lithium ion batteries. Currently they are selling some product in terms of animals and agriculture products out of which in the top line this quarter was 3 crores and 1 crore of PAT.
Rehan Saiyyed
Okay, okay. So my next question is towards your BGC brand. How it’s performed in quarter one in terms of distribution, revenue, contribution or any early customer feedback you get or for going forward. Are you targeting this segment aggressively in fit 26 and 27?
Anurag Choudhary
You please speak clearly. Your — which company you are asking for?
Rehan Saiyyed
Sir, I’m from Trinetra Asset Manager. Sir, now I am clear?
Anurag Choudhary
No, no, no.
Rehan Saiyyed
Sir, I’m talking about B2C brand, your Durofresh.
Anurag Choudhary
Okay, okay. So Durofresh, we are the largest manufacturers of naphthalene in India with 68 market share. So historically we have been selling crude naphthalene and now we are selling the pine napthin in a big way. So the next step is mothball. So mothball is a, you know a significant value addition to the refined Apsalin. So this is the first time is going to B2C segment. So we are launching this brand new press and looking forward we look for very strong demand from the entire country and from export market.
Rehan Saiyyed
Oh okay. Okay sir, as a last one question sir, any future guidance regarding EBITDA margin or revenue growth you are targeting for two to three years down the line?
Anurag Choudhary
So we as we have already told in our last con call also we expect our net profit to double from FY24 to FY27.
Rehan Saiyyed
And for EBITDA margin, sir?
Anurag Choudhary
We don’t look at EBITDA margin, we look at more EBITDA per metric ton because governmental prices and finished product prices fluctuating. The margins can always fluctuate, right? It is 21 last quarter 17%. So this can fluctuate. Yeah, margin is around 16,500 now.
Rehan Saiyyed
Thank you, sir.
Operator
The next question is from the line of Vriddhi Shah from SAS Capital. Please go ahead.
Vriddhi Shah
Hello. Thank you for this opportunity. I have a question —
Operator
Sorry to interrupt you Ma’am, can you please use your handset?
Vriddhi Shah
Hello. And am I audible now?
Operator
Yeah.
Vriddhi Shah
So my first question is that how are you positioned against global competitors in the high margin specialty carbon and battery material segment?
Anurag Choudhary
See, MADHVI has an inherent strength that for specialty carbon black we have our own raw material. So when we do Coulter distillation we produce oil which is very clean oil like and very consistent in terms of quality. Our sulfur content is 0.002% plus there is hardly any impurities in the oil. This gives HIMADVI inherent edge in terms of specialty carbon black compared to any of the peers globally.
And regarding lithium ion battery component materials. So we have developed a technology for LFP in house and the product is pilot scale product. We have supplied many customers and have got very good response from them. And one clear evidence is from ibc we have supplied samples to IBC for LFP and Anode. So after doing a diligence test of one year spied with the quality of mrb, LFP and ANODE that they themselves came forward for our collaboration. Okay. Madri being the only company outside China who is coming up with the first plan for lithium ion phosphate. It’s a big advantage. First movers advantage. Same in anode also Anode we have done lot of groundwork now. Only thing is that at that point of time we’ll announce the capacities also and Capex with the once the engineering and everything is completed.
Vriddhi Shah
Okay. Okay. My second question is what percentage of your revenue now comes from export and how are global carbon black and advanced material marketing behaving?
Anurag Choudhary
So 34% of our revenue is coming from export and there is huge opportunity in the global market with, you know, the current geopolitical situation. India is at a much preferred stage compared to any of the country we are competing with.
Vriddhi Shah
Okay. Thank you.
Operator
Thank you ma’am. The next question is from the line of Vikas Gupta from RG Capital. Please go ahead.
Vikas Gupta
Hello. Am I audible?
Operator
Yes. Yeah.
Vikas Gupta
Thanks for taking my question. So my first question is can you shed some light on The LFP these trouble 2000, what phase is it currently at and what kind of demand outlook do you foresee for this product in the near to medium term?
Anurag Choudhary
So see IBC has already launched one cell, Prismatic Cell with the branding Trouble 1000. So Trouble 1000 chemistry is NMC. So now they are going to launch in next one year time Trouble 2000 which will be with LFP chemistry. And this LFP chemistry and anode material is being built around Himadri raw material. So. And the market for this is huge. You know the market for cell lithium ion cell is very large. And LFP now being used in both the segment BSS and EV has huge market potential.
Vikas Gupta
Understood sir. So my next question is that there was a noticeable increase in the other income in the profit and loss statement this quarter. Could you please provide the clarity on key components or sources of this increase?
Anurag Choudhary
So other income has increased basically because of we have taken loans, commercial papers and deposited as fixed deposit in bank. So the delta between that has helped us to improve on our other income. In addition to that the investment what we have made some, some change has happened in the fair value of that minor changes which will also help to increase the other income.
Vikas Gupta
Okay. All right. Understood sir. And so my last question is that with your recent foray into the refined naphthalene ball segment under the brand Durofresh, could you elaborate on the pricing strategy and what differentiates this product from existing offering in the market that would drive consumer preferences?
Anurag Choudhary
So you know one thing which is, which will really drive this is the purity of the naphthalene. We produce the highest purity grade of naphthale in India and I can rather say one of the highest in the world. We are supplying already we are the largest supplying supplier to mothball market in us. There is a company called Villet who is the market leaders in mothball in US and they buy more than 70% of the requirement from Himadri only because the reason being that our quality or and our purity levels are very high. So with this and Himalay being backward integrated, being the largest player in naphthalene. So we have a natural edge compared to anyone else who is buying naphthalene and then purifying it and then selling as mothball.
Vikas Gupta
Understood sir. Thank you. That’s all from myself and thank you.
Operator
Thank you, sir. [Operator Instructions] The next question is from the line of Prathamesh Dhiwar from Tiger Assets. Please go ahead.
Prathamesh Dhiwar
Yeah, most of my questions are answered. So just one thing I think we mentioned we are going to double our pad by upper 27. So around thousand to 1,100 crores of pad we are targeting. Is it right?
Anurag Choudhary
No, I told we are doubling from FY24.
Prathamesh Dhiwar
Okay, got it. Got it sir. Thank you. Thank you sir.
Operator
The next question is from the line of Vivek Gupta from Star Investment. Please go ahead.
Vivek Gupta
Hello. Hi. Am I audible?
Anurag Choudhary
Yes. Yes, please.
Vivek Gupta
Sir, in your presentation you have indicated that additional capex is planned for the Birla Tire segment beyond the 300 crore already outlined. Could you please share an estimate for the incremental capex involved and the expected revenue contribution from this additional investment?
Anurag Choudhary
See, we have — we are in, you know, we are doing it in phases. So it will be done over a period of next three years. So in total we have yet to, you know, come out with a total number. But ballpark figure as of now during the current year will be around 250 to 300 crore additional capex compared to what we have invested. Okay. And this will continue for next two years since we will be ramping up the capacity and modernizing. And idea is to convert the existing bias capacity into OHT and OTR and to modernize and restart pcr. So I think for next year, three years, this capital deployment will continue in this manner.
Vivek Gupta
Okay. Okay. So regarding the upcoming LSP cathode plan which is scheduled to commence operation in third quarter of FY27. Will the initial production primarily cater to domestic demand or exports? Or also could you provide a ballpark pricing expectation for the LFP product?
Anurag Choudhary
See, LFP product pricing keeps on varying depending on the raw material prices, where the lithium prices goes. But on a ballpark figure it will be between 6 to 7 lakh rupees per tonne as of what it looks today. And we will be basically targeting export market with some domestic because not much capacities are coming up in India by Q3FY27. So the capacities which are coming out definitely will supply to them. But in addition to that, whatever capacity will be there will be supplying to the global market, particularly Europe and US.
Vivek Gupta
Okay, thank you. Thank you.
Operator
Thank you sir. The next question is from the line of Anubhav Sahu from MC Pro Research. Please go ahead.
Anubhav Sahu
Hello, thanks for this. My question is regarding quantitative landscape within the domestic end market or the carbon gas. We have been doing quite good on the export side but how is it in the downstream side given that there’s a bit of a muted auto end market scenario. Secondly, we have been inflow of dumping of carbon black from Russia and comments on that.
Anurag Choudhary
Please see the advantage Madhvi has. We don’t have huge volumes to sell. Like you know, we have only 180,000 tons and we go to 250,000 tons. So with our limited volume we choose our customers very prudently and we only look at customers who value quality and who value, you know, the delivery quality, consistency, high end statistic process control system is very strong. All those parameters who value we focus that those customers. Over the years because of this focus we have developed a very niche basket of customers. And these basket of customers are not import agnostic means. They don’t depend on import, they don’t really look on imports. So that gives us a big advantage. Even being a carbon black player within the group. We don’t supply to Bila tires.
Anubhav Sahu
Again that I got it from last call, it actually comes from other place and it was probably because of the cost advantage you mentioned. Secondly, how do you see the volume growth for 6026 given that you would have a bit of a constant on the carbon black cube. Would it be fair to assume that large part of the volume growth for the sixth would actually come from Bila Tires and this initiative on the naphthalene business?
Anurag Choudhary
Yes. Large part of volume growth will come from three segments. One is Bila Tire. Second is Specialty Carbon Black from Q4. Q3 it will commence production.
Anubhav Sahu
Q4 you will see the volume growth and existing poltar pitch business where we are going to debottle. And that additional capacity will come also from Q3, Q4. Last, would it be possible for you to share what revenue contribution or volume contribution we get it from?
Anurag Choudhary
We don’t give product wise contribution or cost. It’s everything comes in the carbon chemicals. So we don’t do product wise accounting.
Anubhav Sahu
Thanks.
Operator
Thank you sir. The next question is from the line of Bharat Shah from ASK Investment Managers Limited. Please go ahead.
Bharat Shah
Yeah. Hi Anurag. Good afternoon.
Anurag Choudhary
Good afternoon.
Bharat Shah
First of all hearty congratulations. Very significant journey has been evolved over a period of time from a kind of a commodity product portfolio to evolve in specialty portfolio. It has been many many years of hard work. So many congratulations to Himadvi, yourself and the entire team. Two questions. One, While many of the acquisitions fit in well with your strategy of specialty and moving upon the value chain. So that is quite an extendable one. But I was wondering whether Bedla Tire acquisition is it going to be more than advantage or it is going to be a distraction because at the end of the day you may use lot of your materials in tires but tire is a very different business than the specialty chemicals business that you are in.
Anurag Choudhary
Thank you so much. I’ll just — one thing for us Billa Tire for Himadri is not a customer. Himadri is not supplying any carbon black till date to bill our tires. So because Himatri is able to sell its carbon brake carbon black till for a niche application at a much higher price than at what Billa Tire can get from outside. Billa Tire is a standalone business and why we have three. 15 years back I ventured into carbon black. That time I was knowing nothing of carbon black. I was supplying oil to carbon black and then big question was that whether I will be able to get the technology right. Well, I will be able to make it the product. And the day we started we are bang on the product the first day itself. And now we are far ahead in terms of specialty carbon black which many of the companies in the world have not been able to do after so many years. Same thing with Bila tires. We have been supplying carbon black to retire companies for last 15 years now.
So we know the industry in and out very well. We know the people, we know the people who are doing who are great in this business. So it’s much easier for me to make my team and I’m telling you the kind of team within a short span of time we have been able to build is unreal. And when we started Bilattire, you know our rejection rate is minimum with all machinery then we are ramping up very fast and the entire business performed. Bias tires will be converted into OTR and OH tires and we will again be launching passenger car radial and EV and the ROC that Himadri will be delivering in this business will be unimaginable. Basically our investment has been only 300 crores for asset worth 3400 crores. So we have got at less than 10% asset. So after the capex we are proposing the RoC will be significantly higher than any of the peers. And with our relationship in the industry for last 15 years and the way we have been able to build up the team and I still continue to build up, I am 100% confident of amazing reels from Birla Tyres.
Bharat Shah
No, which I deeply appreciate. My only limited point was it’s a specialty chemicals company starting from supplying to carbon brake industry to becoming a full fledged carbon brake player to becoming a specialty carbon blake player and now many other offshoots from that into a specialty chemical journey. But all of that is a B2B kind of a business. Tires is a B2C kind of in activity even if it is in specialty area like off the road and commercial vehicle and agree and other applications that you narrated, it still remains kind of a B2C business sales organization. Overall organizational mindset. All that needs to be different for the tire business. Then what are specialty to chemical operations. So it was just from that point of view. Whether this is a risk of causing distraction in the strategic footprint of the company or strategic management bandwidth of the firm?
Anurag Choudhary
One thing you know what has happened what really we did over the last few years what we did from being a chemical company. Now I started focusing on building management. So that is what I did. I started building last six, seven years I was only focusing on building management benefit and strengthening each vertical with a business head. So today if you look at me, I am hardly engaged in any operations. So Birlata is like that also it’s a separate vertical with business head looking into it with complete independence but strong reporting systems and processes clearly defined. So with the increased bandwidth that I am able to develop over the last few years, that is the reason today you know, if you look at our annual report also we have given the theme Himadri reloaded the next chapter. Why? Because we have done the groundwork for the future and now we are ready to take on many assignments at the same time and with hundred percent confidence to deliver value to our stakeholders.
Bharat Shah
Got it. Really appreciate that does require material change in the mindset to —
Anurag Choudhary
And sir, one more thing I just wanted to tell, see, I don’t want to remain only a product specific company for life that I have been making a quota distillate product. So I end up doing that only with my years of experience. We have expertise in processes over the year 35 years we have expertise in doing acumen ship or doing business. So now to increase our foothold we cannot get a better launching pad than Brilla Tires. If today see today or tomorrow I have to go to B2C. I will not I believe from what I want in my for push of the company. I don’t want to be only B2B business. I want to look at several B2C businesses also for that, if I have to restart and make a brand, it will take 20, 30, 20 years minimum to build up a brand. And by God’s grace we have got Bila tire brand with 40 years of legacy and water recall. So that is the game changer today with Bila Tire brand with you, the B2C business looks like a cakewalk.
Bharat Shah
Sure. And I’m sure one last point on this particular thing before I move to the second part. I’m sure you analyze the reasons for a 40 year old, well known brand to fall into the kind of a state of disrepair that it fell into, which is why you acquired business like that for 1/10 of the underlying assets value. So what in your opinion went wrong and what are lessons which have been built into the acquisition footprint in order to ensure that the material doesn’t suffer so many consequences?
Anurag Choudhary
We did thorough — say before taking over the unit, I got in touch personally with Most of the CEOs ex CEOs of Billa Tires and I did a deep dive. I talked to the lowest level people who are working there and mid management and top management and then we do the thorough analysis of what really went wrong. Because of, you know, some constraints. I’m not able to explain that online at a conference call what really went wrong because it’s not right on my part to tell something negative about some other management or something which I don’t feel like doing.
We did a deep dive and clearly articulated our strategy and we made a full, you know, we made a 10 guiding plan principles for this business. Learning from the failure of Billatai we call it. And those are our founding pillars for success. This is going to be our founding pillars for success. We have clearly identified what was the loophole, what went wrong and everything. I’m giving you a very small example. Like when we took over this unit, 13 unions were there. Now we have no union. I don’t want to go into details but from that you can understand our capability metrics.
Bharat Shah
Sure. Now all the very based on a very major step, not in terms of the capex amount involved, but in terms of the direction of the firm in the business. Coming to the second part, if you look at the five year period, that is financial year 2021 up to last year 2425, we have made a remarkable progress. Our volumes have gone up about one and half times, our top line has gone up about three times, our operating profits have gone up six times and profit after tax has gone up about 12 times. You also narrated that from 24 to 27 the bottom line is likely to double. So what is the picture to be expected from after 27 to say further 3 year period or from 25 to the next 5 year period? 30 years till fiscal ’30?
Anurag Choudhary
So actually I’ll tell you this. If you ask me, on a scale of 1 to 10, according to me where we are ranked now, I rank it little less than 1. I think that is what we have achieved till now. The real story will unfold in next five years and I am very confident of it. And if I request you to kindly go through our annual report very carefully, you will find there a page called Future Growth Drivers. You go through that and read carefully each item and you will have the answer. And every quarter or six months when we come up with new things, you will see the things unfolding. But I can tell you that things are going to be very different from what it is today. I don’t want to put a number to it.
Bharat Shah
Sure, sure, sure. I have read about various initiatives and various plans which are there in this quarterly. Also you have laid out some of them in the various clearly hunger for strategic initiatives has gone up in himadi than ever before given the success and the strength of the balance sheet. But if you like you mentioned, or as I mentioned in 2021-2425. We have had a very strong journey on volume, top line profits and the bottom line 24 to 27. Also you mentioned about roughly doubling our bottom line. So I was just wondering, from 27 to 30, if we take the next three year block, what do you think will be the key initiatives which will play out and what kind of an outcome? Possibly not in terms of numbers, but qualitatively, what kind of picture can be envisaged?
Anurag Choudhary
See, you look at the broader picture today we are into polta pitch which we are expanding. The business is expanding, especially carbon black is expanding. Naphthalene is expanding. Then tire, tire. You will see the story unfolding in next four to five years completely with full capacity, full margins coming into play. That will give a big top line to the company and big bottom line to the company. Then you have raw material components from lithium ion battery. You know I’ve been talking about lithium ion components for last 12, 13 years. It’s not that today everyone is talking. So I have started talking.
Bharat Shah
No, no, I remember.
Anurag Choudhary
Yeah, you remember. You have been associated with the company for last 20 plus years. You have been an investor. So we have been doing, we have been early is, you know, we had full confidence when no one used to look at lithium ion that this is going to be a game changer in future. And that has really happened today. And Himatri is doing wonders in terms of how we are going to position ourselves. Then you talk of anode. There are three types of anode. Natural, synthetic and silicon carbon. And that makes a hybrid anode. If you look at my reports and everything, I’m working on all three of them. Only company which is working on all three of them as a customer. You see, you come to Himadi, you have a host or you have full product basket. Where else will you go? Where you will get silicon carbon, they will get natural at the same time. This, this hybrid material will change the entire chemistry. Suppose you are getting a capacity. I’m going little technical at 350 with little silicon. You will go to 370. It gave changes. So that is something which will come into play.
Lithium ion phosphate, first company in the world outside China to have a commercial plant. We are setting up. We have a huge expansion in that capacity. I have clearly outlined 100 gigawatt capacity in next five to six years. Other than that, if you look at our presentation, we are going into backward also. They are going for lithium carbonate in future on which research and development is going on in full scale now. So currently lithium carbonate is made through a lynching means. Today, lithium is extracted from rock through a lynching process through using acid. We are going to do it through carbon dioxide, which is game changer in the world. It will be a green. In lithium, this itself will make revolution in the world.
So like this, every product like we are working on, you know I have also outlined waste from waste to energy. So there we are working on lot of waste products which will be converting into finished product and energy in future. So if you look at my current portfolio, current oil, anthracine oil or the carbon black oil we are just using to make carbon black, now we are setting a plant for anthraquinone carbazole. Anthraquinone carbazole. The selling price is 7x of the oil with hardly any processing cost. So all these are game changers to outline a few of them. Other than this there are many things which are happening. So I am confident that looking forward, things will unfold in a big way in Himadri.
Bharat Shah
Sir, if I am just allowed to put one last point on this. We have seen a journey which has been multifold over 20 to 25. You have already outlined from 24 to 27 another phase of the journey. Can you. Will you say that from 27 onwards the third phase of the journey will be equivalent or better or similar to the phase one and phase two that we are. Phase one that is over. In phase two that we are experiencing, will you say phase three will be superior, equal or lower than the phase two that we talked about both in quantitative or qualitative terms?
Anurag Choudhary
I’ll put it other way around. Phase three. With phase three I believe the real journey will start.
Bharat Shah
Which is why you say then a scale of 1 to 10, you are just at 1.
Anurag Choudhary
Right. So with phase 3 after 27 the real Himadi journey will start and time will only tell what we will achieve. I don’t want to put any word on number to this.
Bharat Shah
Appreciate. Thank you. Thank you, Anurag, and real best wishes to you and Himadri and the Himadri team.
Anurag Choudhary
Thank you. Thank you so much.
Operator
Thank you sir. The next question is on the line of Vignesh from KSEMA Wealth. Please go ahead.
Vignesh
Am I audible?
Anurag Choudhary
Yes.
Vignesh
Please just want to understand what is the revenue potential of the phase one of the LSP system? Just on approximately into just to understand how was the potential for LFP.
Anurag Choudhary
Between 2500 to 2700.
Vignesh
Okay. And another one is regarding the annual development which you spoke of any timeline here when we are planning to put a capex or announcement regarding the material?
Anurag Choudhary
I don’t want to announce now means I don’t want to disclose now. Okay, thank you. That is from my video. I head off a schedule means two and a half years, three years before only I announced that it will happen. This time I’ll not give so much time that only I can say.
Vignesh
Okay. Okay. And one more and regarding. Are we planning to go into a mining kind of thing, sir? Or backward integration?
Anurag Choudhary
Yeah, we are looking at some mining thing and already made some investments. So, yes.
Vignesh
And this will be mostly for backward integration of the LFP?
Anurag Choudhary
It will be in various aspects. We’ll do some minerals and then how the things unfold.
Vignesh
Okay, thank you.
Operator
Thank you sir. Ladies and gentlemen, due to interest of time. That was the last question.
Anurag Choudhary
We can have more questions. We can have more questions, no problem.
Operator
Okay, sir. The next question is from the line of Priti Agarwal from SK Associates. Please go ahead.
Priti Agarwal
Hello. Am I audible? Thank you so much for the opportunity. So my question is that we’ve seen a margin uptick. So how much of this is attributable to value added product contribution and any structural change in products mixed under it?
Anurag Choudhary
So now everything is attributed to value added products only. Nothing changes structurally.
Priti Agarwal
Okay. And any structural — any product mix underway?
Anurag Choudhary
Any product?
Priti Agarwal
Product mix underway.
Anurag Choudhary
It’s a product mix blended products.
Priti Agarwal
Okay. And my second question is what gives Himatri a technological or RD edge in advanced carbon material versus peers?
Anurag Choudhary
We have been in this field for last 12 plus years. So we have done lot of investment in research and development building our teams and capabilities from ground zero. So we know the product in and out means. You cannot. You can never say that I know everything. But we have done our homework quite well and we have a very strong team who knows the subject and that is the kind of development we have done over the years.
And if you look at any other company they are talking of this over last two, three years or one year only. And we are. If you open my 10 years back annual report, you will find lithium ion battery. So we know the subject very well. And being in China like China is the leader in this space. And we have our manufacturing facility in China since last 15 years. So I have seen very closely the development of this industry. Very closely. So that gives a unique positioning to Himadri and Edge compared to anyone else globally.
Priti Agarwal
Okay, understood. Thank you so much sir and all the best.
Operator
Thank you ma’am. The next question is from the line of Ashit Kothi, an Individual Investor. Please go ahead.
Ashit Kothi
Thank you sir. Thanks for the opportunity and congratulations on the numbers. Just two things. One is with regards to the current quarter numbers where we don’t see much of a volume growth as well as revenue growth. But our profitability is increasing. So is the same train would continue. Or you see volume as well as top line and bottom line growth also along with higher margin?
Anurag Choudhary
See, I clearly explained the top line has not grown and has come down basically because of the raw material prices. And looking forward as I told From Q3, actually from Q4, you will see the specialty carbon black new capacity coming in place. You will see the bottle capacity of carbon specialized contour pitch and you will see ramping up capacity of Birla tires. So all this will help to increase the top line and bottom line at the same time.
Ashit Kothi
Okay. Sir, with regards to the lithium ion batteries, I mean sir, do we consider that Birla tire is your first step towards B2C is what Bharatbhai was asking. And from there on you would want to move on to within battery systems and all related products in B2C manner?
Anurag Choudhary
No, no. We have clearly outlined our growth plan and there we want to play in this segment. We don’t want to be a cell manufacturer. B2C we are launching with Bila tires and we will strengthen our position in three years means B2C and then we will see what product to launch. We have a product portfolio for B2C which we are preparing and at right point of time we’ll disclose and launch. But yes, cell is not in our portfolio. We want to be a component manufacturers for lithium ion cell, not a cell manufacturer.
Ashit Kothi
Okay sir. And something on this graphite, I mean say, what is our exposure and what are our plans on that? Something which was mentioned in the presentation?
Anurag Choudhary
No, this is about anode material. So I have clearly told. I. I have told in the conference call about what we are doing in anode material. What is our plan? Everything I’ve told already.
Ashit Kothi
I’m talking about graphite electrodes.
Anurag Choudhary
No, I have to do nothing with graphite. We are supplying cold cuts to graphite. That’s the only relation.
Ashit Kothi
Okay. So further. Further value addition or moving on those lines would not. Is not the case right now.
Anurag Choudhary
Not at all. Not at all.
Ashit Kothi
Right sir. Thanks a lot.
Operator
Thank you, sir. The next question is from the line of Jaiprakash Kumhar from Korman Capital. Please go ahead.
Jaiprakash Kumhar
Yeah, hi. Am I audible? Yeah, my question on the deposit from last 10 years I’m looking at deposition. 10 years back also it was 57 crores. And now also it is 57 crores only. And the gross block is 2,500 crore. So ideally I’m not sure what kind of plant and machinery that is with plant life and all that. But the depreciation looks very low. And for last 10 years, it has broadly remained at the same level.
Anurag Choudhary
No, I think you are mistaken with the figures. It has come up over the years. If you look at 10 years back and depending on. Because we have not done much capex in last seven, eight years. So. But whatever capex we have done corresponding to that depreciation has definitely gone up. And it is on. It is on the written down value SLP straight line, yes.
Jaiprakash Kumhar
It’s a straight line, right, not the written down value.
Anurag Choudhary
Yes, yes. Exactly.
Jaiprakash Kumhar
So straight line. And on this 2500 crores this is just 50 crore of depreciation. So it’s just not even. I think it’s very small percentage. So can you highlight like why the depreciation is so low on such a high cost?
Anurag Choudhary
This is directly correlated with the life of the plant. So depending on the what’s the lifespan of the plan. The depreciation rate item wise has been calculated and that is what it is.
Jaiprakash Kumhar
Okay. And depreciation will include the maintenance expenses also because —
Anurag Choudhary
The maintenance Capex we don’t put in capex. We take it through PNL only through P and L only.
Jaiprakash Kumhar
And it is part of depreciation, right?
Anurag Choudhary
No, no. It’s not part of the patient. It’s part of the PNL maintenance capex.
Jaiprakash Kumhar
Okay. Okay. And you’re seeing the light of the plant and machinery is very high, like maybe 30, 40 years. That’s why the depreciation is low?
Anurag Choudhary
So we have, we got a detailed study done and basis that we have identified life of each and every equipment and basis that we have charged the precision and we will get in the audit report in details.
Jaiprakash Kumhar
Okay, thank you.
Operator
Thank you, sir. The next question is on the line of Anand, an Individual Investor. Please go ahead.
Anand
Hello. Am I audible?
Anurag Choudhary
Yeah, you’re audible please.
Anand
Yeah. I just wanted one question on Bernat iOS. How do you expect to maintain pricing power in such a competitive industry?
Anurag Choudhary
How do you expect to maintain pricing power?
Anand
Yeah. In such a competitive industry?
Anurag Choudhary
Yeah. Industry is competitive. We know the EBITDA margin ranges from in normal case dias from 10 to 15% and for OSP OTR it is 25% plus. Okay, so we are playing within this and Bill Tire has a good brand recall. So as a brand as being a re entry after three years we don’t have to give any special discount or something like that for positioning Birla Tyres.
Anand
Very good. Thank you very much, sir.
Operator
Thank you sir. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Anurag Choudhary
Thank you. Thank you so much. I would like to thank everyone for taking out time and joining us on the conference call today. I hope we have been able to respond to your queries adequately. Your continued interest and feedback play a vital role in our journey forward. This quarter marks the beginning of what we believe will be transformative pace for Himatri. With a clear strategy, strong execution and an unwavering focus on innovation and sustainability. We are confident in the road ahead. We remain committed to delivering long term value and are pleased to have your support as we scale new frontiers and save the next chapter of Himadri growth story. Should you have any further questions, please feel free to reach out to our investors relations partner, MUFG Intime IR. Thank you once again for joining the call today. Good day.
Operator
[Operator Closing Remarks]