Himadri Speciality Chemical Ltd (NSE: HSCL) Q4 2026 Earnings Call dated Apr. 27, 2026
Corporate Participants:
Anurag Choudhary — Chairman, Managing Director and Chief Executive Officer
Kamlesh Agarwal — Chief Financial Officer
Analysts:
Chirag Bhatia — Analyst
Sanjesh Jain — Analyst
Unidentified Participant
Nitin Shakdher — Analyst
Animesh Jain — Analyst
Dhruvin Kadakia — Analyst
Sagar Jethwani — Analyst
Rohit Nagraj — Analyst
Vignesh SBK — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the Himadori Specialty Chemical Limited Q4 and FY26 conference call hosted by MUFG. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chirag Bhatia from MUFG. Thank you and over to you sir.
Chirag Bhatia — Analyst
Good evening everyone and welcome to Q4FY26 earning conference call of Madrid Specialty Chemicals. We have with us Mr. Anurag Chaudhary, CMD and CEO and Mr. Kamlesh Agrawal, CFO. Before we proceed with the call, I would like to give you a disclaimer that this conference call may contain forward looking statements about the companies which are based on belief, opinion and expectation. As of today actual result may differ materially. The statement are not guarantee of the future performance and involve risk and uncertainty that are difficult to predict. A detailed safe harbor statement is being given on page two of Investor presentation of the company which are being uploaded on the Stock Exchange and on the company website.
With this I now hand over the call to Mr. Anurag Chowdhury. Over to you Anurag.
Anurag Choudhary — Chairman, Managing Director and Chief Executive Officer
Thank you Chirag Good evening ladies and gentlemen and thank you for joining us today to discuss Himadish Specialty Chemical Limited’s performance for Q4 and FY26. I sincerely appreciate your continued trust and engagement and it is a pleasure to connect with you once again at Himagari. Research and Development is not merely an enabler, it is foundational to who we are and how we have evolved over the years. It is not a standalone function but deeply embedded in our business strategy and culture. It is part of Himadri’s DNA. Our growth into high value specialty chemicals and advanced materials have been driven by deep and sustainable commitment to in house innovation supported by our robust and constantly evolving research and development ecosystem.
Today we operate one of India’s most comprehensive specialty solutions, research and development platforms. A team of over 180 scientists, technologists and subject matter experts including 28 PhDs in different streams of chemistry and international specialists drawn from Japan, South Korea, Australia, United States, Europe and China. This global exposure combined with strong process engineering and scale up capabilities has enabled us to consistently translate ideas from laboratory into commercially viable business alternatives, scalable solutions across carbon value chain, specialty chemicals and increasingly advanced material chemistry. Importantly it is this same research and development engine that continues to drive the development of several new breakthrough solutions that are currently in our pipeline, many of which have reached advanced stages of development are in the progress towards commercialization.
During the current year we spent 120 crores in research and development. It is this long standing R and D capability built patiently over more than a decade of focused work in lithium ion chemistry that has culminated into the most defining milestone for Himad this year. On 23rd April 2026 we successfully commissioned operation at our first anode material manufacturing facility in Mahindra, West Bengal with an initial capacity of 200 metric tonnes per annum, marking a pivotal step in our entry into lithium ion battery material value chain. What makes this achievement particularly significant is that the entire technology platform from raw material processing to finished anode active material has been developed fully in house without reliance on external or licensed technologies.
At the core of this capability is a specially engineered high purity coal tar pitch produced entirely in house by HIMADRI which serves as a primary raw material precursor and enabler for superior quality, consistency and performance. This degree of backward integration supported by proprietary process know how gives HIMADVI a fully integrated and self reliant manufacturing ecosystem while maintaining the flexibility to process alternative raw material as market evolves. As we engage with OEMs at various sampling stages, our differentiated approach built on innovation, cost, efficiency and sustainability positions us strongly for validation and scale up in this high growth segment.
Building on this, our broader lithium ion battery material strategy continues to progress in a calibrated and disciplined manner underpinned by strong focus on prudent capital deployment to drive sustainable returns and maintain a robust ROCE profile. Execution of Phase one of our Lithium Iron Phosphate cathode active material project which envisions a total capacity of 40,000 metric ton per annum is on track. As part of this phased execution, the first milestone capacity of 2000 metric tons is targeted for commissioning by Q3 FY27. The balanced Phase 1 capacity will be progressively brought on steam over the subsequent 12 months closely aligned with customers approval and demand visibility with FY29 NVISAs as the year for full phase one operations.
Beyond phase one our long term vision is to build a scaled globally relevant LFP platform with a capacity to produce 200,000 medical of LFP cathode active material catering to the approximately 100 gigawatt of lithium ion battery capacity executed in a phased manner and demand like manner. Importantly, this positions Margari as first company globally to establish commercial scale FP cathode active material manufacturing facility outside China serving both domestic and international markets and representing a significant step to towards Atmanirbhar Bharat. Customer engagements have intensified significantly with leading Indian as well as global cell manufacturers and the response has been strongly encouraging.
This reinforces our conviction in LFP as a chemistry of choice across electric mobility and ESS globally and underpins our confidence in long term relevance of this platform. In parallel, our collaboration with Shikuna Battery Technologies has progressed meaningfully over the year, marking a truly transformative phase in the development of next generation anode materials. Through an exclusive technology licensing agreement, MRP has secured right to access, localize, commercialize synchronous proprietary silicon carbon anode technology in India for the world. So during the year Cicona has achieved important milestones at pilot scale level with further capacity expansion currently underway and targeted for completion by Q2 FY27 supporting intensified engagement with global cell manufacturers across multiple stages of sample approvals.
Performance wise, Shikona’s Gen 3 SIPX material have demonstrated superior energy density and improved electrochemical characteristics while Gen4SICX has shown high capacity retention over extended cycle life, Aligning with the stringent requirement of leading global OEMs. Further advancing our strategic roadmap, we have made a strategic investment in IBC International Battery Co. A U.S. headquarter developer and manufacturer chemistry agnostic prismatic Lithium ion cell. This collaboration represents an important milestone for Himalay as it enables real world validation and early commercial deployment of our lithium ion battery materials including lrp, cathode active material and anode solutions. Leveraging IBC Operational Lithium Ion Cell Manufacturing Facility in South Korea we are actively engaged in product validation, scale up and customer engagement thereby accelerating our readiness for commercial adoption.
From a market perspective, IBC operates across a diversified set of end use applications including B2B fleet customers, 2, 3, 4 dealers, OEMs, global battery exports for energy storage and mobility solutions. Importantly, IBC looking forward products roadmap also addresses high performance high value applications such as defense drones, AI driven data center infrastructure, aligning well with himad’s ambition to be an innovation led and differentiated participants across the evolving global battery ecosystem. Alongside this, our collaboration with invasive creation continues to progress steadily with focused research efforts underway across advanced lithium ion electrode materials. Embassy brings strong capabilities in modular engineering research and intellectual property development which complements him and ambition to build innovative high performance banking material platforms taking place.
That these initiatives and decisions and strategic investments and partnerships are enabling Margari to build a future facing integrated product and technology platform across the lithium ion battery value chain. By Combining advanced material innovation, real world validation and deep research capabilities, we are creating a collaborative ecosystem that is well positioned to serve emerging sunrise industries spanning electric mobility, ess, defense drones, next generation digital infrastructure. This approach strengthens our ability to develop differentiated solutions, shortened commercialization cycle and remain relevant as new applications chemistry use cases continues to evolve globally. Turning to the operating environment, recent geopolitical developments in West Asia have introduced volatility in energy prices and logistics.
However, our business remains structurally insulated as we are not dependent on that reason for our core feedstock operations. Our raw material platform, diversified end use portfolio and strong customer relationships continue to provide stability and resilience. I am pleased to report that FY26 has been a year of strong execution and delivery. During the year we successfully commissioned an additional 70,000 Metatron Specialty Carbon Black facility at MAERS degree taking our total Specialty Carbon Black capacity to 130,000 metric tonnes per annum and overall carbon Black capacity to 250,000 metric ton per annum. This positions the MAHSDP facility as the world’s single largest location for specialty carbon black plant and places Himadi among the top five players globally in this segment.
Alongside this, our core polta pitch and associated products business is also well positioned for the next phase of growth. With the successful demottling of our polta pitch distillation capacity taking it to 600,000 metric tons per annum and the commissioning of liquid coal tarpage export terminals at Haldia and Mangalore, we are now in a position to leverage our operational headrooms and logistic capability to support growth in the coming quarters and further consolidate our leadership position in Colt Apex segment. Financially we have delivered our strongest performance to date. On a consolidated basis EBITDA stood at 1006 crores, PBT at 1001 crores and profit after tax at 755 crores.
Reflecting the strength of our value added products portfolio, operational discipline and consistent focus on in house innovation. Beyond this, our growth continues to be supported by a well diversified portfolio spanning across graphite aluminum, lithium ion batteries, specialty chemicals and advanced chemicals. Turning to our next strategic growth pillar Brilla tyres, FY26 marks the first half year of operation of Birla Tires. This year we have been able to revive the brand and steadily progress in rebuilding both market presence and and the operating foundation have been encouraging. We have approached this revival in a calibrated manner prioritizing product market with channel strength and brand repositioning before pursuing volume led growth.
Our current portfolio anchored by proven products such as Kala, Patkar, San plus BT339 and Ultratrack continues to be well received across key segments, particularly in agriculture and commercial vehicles. In the fourth quarter we strengthened our agri portfolio with launch of new STUs Agriplus and Agribin tractor tire series, both of which are already witnessing incurrent market traction. From a distributor standpoint, we have established a strong and expanding network of 43 distributors and over 1,000 dealers, giving us a solid platform for scale. More importantly, brand acceptance continues to rise as we consistently deliver on quality, reliability and performance key drivers in this category Looking ahead, our focus is clearly on disciplined scale up.
We are now entering the next phase of revival where production ramp up will be aligned closely with demand visibility and channel expansion. Over the next 12 to 24 months we will progressively enhance our capacity utilization supported by robust pipeline of new product launches across agriculture, mining and commercial vehicle segments. In parallel, we are strengthening our manufacturing processes and supply chain to ensure consistent quality and volume scales. Our objective is not merely to regain presence but to build a competitive and differentiated tyre business that can sustainably participate in both domestic and select international markets. Birla Tire is still early in its journey but the direction is clear a major and disciplined revival built on product strength, market relevance and execution excellence.
We are confident this business will evolve into a meaningful contributor to HimAdv’s overall growth in the coming years. Beyond this, our consumer foray into durafresch continues to gain encouraging traction adding further depth to our diversified portfolio. Looking ahead, our anthraquinone Carbazole project is progressing as planned and expected to Commission in Q2FY27 helping address the symptoms Significant import dependency in India at HIMADVI Research and development is not a function, it is core capability embedded in how we operate. Our global R and D ecosystem continues to drive innovation across all business verticals enabling us to develop differentiated high value added solutions for emerging industries.
Sustainability remains integrated to our core strategy guiding our approach to responsible manufacturing, efficient resource utilization and long term value creation. HIMADRI for the second year has been awarded with Platinum rating by Eco Verdes, being among the 1% company among 150,000 companies related by EcoVartis globally. As I conclude, FY26 marks an important milestone in Himadu’s transformational journey. When we stood before you 12 months ago, we made clear commitments and I am pleased to say that we delivered on all of them and in several areas gone beyond we committed to expanding our specialty carbon black capacity. We delivered, we spoke about deepening focus on value added products which is reflected in our consumer foray with durafres we deported our quota distillation capacity from 500,000 to 600,000 metric ton and revival of Billa tires.
Importantly, this execution has been underpinned by strong operating flat performance as we set new benchmarks across key financial and operational metrics during the year. As we look ahead, we are entering the next phase of growth with strong foundation, clear strategic direction and disciplined execution. With our spending presence in advanced material particularly within lithium ion battery ecosystem and the steady revival of Vela Gas, we are confident of creating sustainable long term value for all our stakeholders. Thank you and I now invite our CFO Kamila to take you through the financial performance in details. Thank you Kamlesh.
Kamlesh Agarwal — Chief Financial Officer
Thank you. Anurag Ji Good evening everyone and thank you for joining us today. I trust that everyone has had a chance to review our financial results and the latest investor presentation which have been made available on both the stock exchanges and our company website. This quarter and year marked an important milestone in our transformation learning on a consolidated basis. We are pleased to share that we have achieved highest payable EBITDA and back on both quarterly and full year basis which was due to our focus on high value added solutions, operational efficiency and cost optimization from a quarterly perspective.
In Q4FY26 our consolidated revenue stood at Rs. 1,288 crores as compared to 1135 crores, an increase of 14%. EBITDA came in at Rs. 280 crores registering a growth of 21% year on year while PAT stood at Rs. 208 crores delivering a strong growth of 34% year on year. Looking at the cumulative performance for full year basis, our consolidated revenue stood at rupees 4661 crores. EBITDA reached rupees 1006 crores up around 19% year on year from Rs. 847 crores. In FY25, profit after tax stood at rupees 755 crores reflecting a growth of 36% year on year over 555 crores reported in FY25.
This performance highlights the strength and resilience across all the business segments. Coming on standalone basis, performance in Q4FY26 revenue stood at Rs. 1101 crores with EBITDA at Rupees 252 crores while pact came to Rs. 186 crores registering a growth of 17% against Rs. 158 crores of EBITDA in Q4FY25 for FY26. On a standalone basis, revenue stood at Rs. 4405 crores, EBITDA Rupees 978 crores, reflecting a growth of around 16% when compared with 844 crores in FY25, while profit after tax stood at Rupees 750 crores, a jump of 34% as compared to Rupees 558 crores in FY25.
Over the last five years on consolidated basis, we have demonstrated a consistent and robust financial performance reflecting the strength of our strategic focus and execution. Since FY22, our revenues have grown at an impressive CAGR of 14%. More significantly, our EBITDA has expanded at a CAGR of 58% and our profit after tax has grown at an exceptional 110% CAGR. In terms of financial health, we continue to maintain a resilient balance sheet. As of 31st March 2026, we hold a net positive cash balance of Rs.121 crores, which gives us ample flexibilities to pursue growth opportunities while maintaining a prudent approach to capital allocation.
Our return on capital employed has also shown a steady upward trajectory reaching to the level of 32% in FY26, a testament to our sharp focus on value creation and capital efficiencies. With these results, we believe we are well positioned to continue our upward trajectory building on a foundation of financial strength, operational excellence and strategic foresight. Thank you.
Anurag Choudhary — Chairman, Managing Director and Chief Executive Officer
Now we can start the question and answer session.
Questions and Answers:
operator
Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on on the touch tone phone. If you wish to remove yourself from the question queue you may press star and two participants are requesting to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Sanesh Jain from ICIC Securities. Please go ahead.
Sanjesh Jain
Yeah, hi, this is Sanjay Jain. Thanks. Thanks for the opportunity and good evening. Anurag Ji and Kamleji.
Anurag Choudhary
Good evening.
Sanjesh Jain
First question on the anode business. Like you have mentioned the growth path for your cathode. Where you want to start with say 2000 metric ton and scale it to 40,000 in FY27 and eventually to the 200,000. Can you. Can you share us the thought process on the growth trajectory for Anode?
Anurag Choudhary
So for the Anode business We are still working on it. And in due course of time we’ll come up with the figures and the investment required and the time frame.
Sanjesh Jain
Got it, sir. But what will be the market size for anode today? And what is the economics between cathode and anode? And how do you see the pitch based cathode anode demand versus a silicon based carbon which we are developing parallelly? How do you see these portfolio playing out for us?
Anurag Choudhary
See, cathode and anode together constitute an integral and important raw material for lithium ion batteries. In terms of cost it is 65% of a cell, lithium ion cell cathode anode together and in the ratio, suppose for a lithium ion cell anode and cathode is used in a ratio of 1 is to 2. So suppose 100 is the requirement of anode. So 200 will be the requirement of cathode. So basically in whichever cathode chemistry you are working, but anode requirement remains stable. So whether it’s nmc, cloak, lfp, whichever the chemistry is. But you need anode and anodes.
There are different types of anodes, natural, synthetic, synthetic. They are petroleum based and colta pitch based. So we have the unique positioning of both. And regarding silicon carbon anode material, it is added to synthetic or natural anode to increase the capacity of the battery, increase the density and reduce the, you know, charging time. So it silicon is an add on, it makes to make hybrid anode. So it’s not actually that you can use either this or that. The silicon has to be added to this material.
Sanjesh Jain
Got it? Got it. But today we don’t add it. Right. This is something which will happen already
Anurag Choudhary
it has started in some percent, very small percent globally. But since the capacity material availability is very limited, so that supply is not much.
Sanjesh Jain
Got it. My second question, Arag G. On the Middle east issue. We were planning to export colta pitch in the Middle east and obviously South Africa and other geography. But Middle east is something where we have already started with this situation. What’s happening in the Middle east, you see, there will be some shift in the focus for coal tar pitch from Middle east to other geography and which will be those geographies.
Anurag Choudhary
See, this is a temporary phenomenon we feel. And so some shipments were planned for Middle east, but that’s not having going to have any material impact because we are diverting those material to other geographies. So there is absolutely no issues with that.
Sanjesh Jain
So which are the geography geographies we are trapping? Apart from Middle east,
Anurag Choudhary
we are looking at different geographies. Like Southeast Asia Africa remains intact. So these are the.
Sanjesh Jain
Got it. But Southeast Asia we would see competition higher from China, right? Geographically
Anurag Choudhary
China actually competition is not there because we supply our quality is very high. And plus we China cost is higher than. So even in India we supply Kolta pitch as a price lower than China. So that dynamics doesn’t work for our business. China dynamic is no, not at all valid for our business.
Sanjesh Jain
In the carbon black business we started this new plant. How has been the ramp up in that? That’s one. Number two, the situation in carbon black should be positive for us, right? Because carbon black realization has gone up globally there is a large capacity which uses crude based feedstock while we use coal tar based feedstock. Now that coal tar prices my senses would not have gone as sharply as crude. So this shift in the carbon black business from the higher input cost should positively reflect for Himadri.
Anurag Choudhary
So what we have developed is a long term sustainable business model. And we don’t look at, you know, quarter on quarter ups and downs. But one thing is there the model what we have built up we can transfer the increase in price to our customers. So whether it is crude based or colta based, whatever increasing price is there, we transfer to our customers. So that has helped us to build up a resilient business model.
Sanjesh Jain
No, but in a situation where one carbon black feedstock is expensive, we can use more of our own oil to produce carbon like that. Economics is much better right now.
Anurag Choudhary
Yes, definitely that economics is better. But polta prices have also gone up. So I don’t think that is the delta on which Himadry has built up its business model also. And that is not something which we, I also we have, we work on sustainable profit and which is firmly assured.
Sanjesh Jain
Got it sir. That’s it from my side. Thanks for answering all those questions and best of luck for the coming quarters.
Anurag Choudhary
Thank you. Thank you so much.
operator
Thank you. The next question is from Ryle S from Supplier Capital. Thank you and please go ahead.
Unidentified Participant
Hi sir, good evening, can you hear me?
Anurag Choudhary
Yeah, we can hear you please.
Unidentified Participant
Yes. So firstly coming back to this anode capacity, specifically the 200 metric tons, right? Can you tell us what, what will be the, you know, peak revenue potential from there and how will the utilizations look like in FY27?
Anurag Choudhary
So this capacity is basically to commercialize our R D efforts and to showcase that what we have worked on, R and D is workable in a commercial plant. So this is the beginning of the journey. And if you I have next step we will be announcing Capex for large scale commercial capacity where meaningful revenue will start coming in.
Unidentified Participant
Okay, so as of now nothing is expected from this 200 metric tons. In terms of numbers,
Anurag Choudhary
in terms of numbers, these are not significantly materialistic based volumes.
Unidentified Participant
Okay. So this in FY27 this will not be, you know, contributing to our revenue.
Anurag Choudhary
This will be contributing but not materialistic.
Unidentified Participant
But not materially. Okay. Secondly then coming to the Birla, you know the Birla tires segment which you have restarted. How much did you contribute in FY186 in terms of revenue and how will it scale up? Now going ahead,
Anurag Choudhary
top line contribution for the this year was 187 crores. And we expect to be around 3,000 codes of top line this business in next four years.
Unidentified Participant
Do you have any indication as to what will it be in FYNN7? Particularly
Anurag Choudhary
you don’t give year on year, you know, yearly guidance.
Unidentified Participant
Okay, so what about like overall in consolidated level? Any guidance there for revenue and our ebitda margins for 527?
Anurag Choudhary
See again coming to that, I have given a guidance that FY25 we had a PAT of 555 crores. So we have committed to double this path in next three years in FY28 to 1100 plus crores. So the right way to look at HIMADVI is not at EBITDA but at pat levels. If you consider look at HIMADVI also as a percentage of top line, this 16 plus percent. So because there is no interest and no additional cost. So the right way to look remarkably is a consolidated top line and rather than ebitda.
Unidentified Participant
Okay, so just last thing then. If I observe your top line has I think in FY25 grew at 10%. Okay. And FY26 it largely has been flat. Correct. So with these new additions of the villa tires and the added carbon black capacity, will your top line also grow and at what rate is. Yeah. Any indication there?
Anurag Choudhary
Sure, sure. So up till now, last three, four years we have not been able to see any growth in the top line. Practically maybe few percent. But now the real top line growth starts FY27. You will see a top line growth also and bottom line growth.
Unidentified Participant
Okay, but you don’t have any sort of growth number to attach.
Anurag Choudhary
I don’t want to give any growth.
Unidentified Participant
No. Okay. Okay, no problem. Thank you so much.
operator
Thank you. The next question is from the line of Akshay from AK Investment. Thank you and please go ahead.
Unidentified Participant
Hello. Am I audible?
Anurag Choudhary
Yes,
Unidentified Participant
thank you. Thank you so much for giving me this opportunity. And also congratulations for the great set of number. My first question is we have generated the highest ever gross profit margin this quarter. So do we see this trend will be continuing going forward for the next two to three years and also do we able to continue the 20% EBITDA margin going forward?
Anurag Choudhary
Yes, we are confident of achieving these on a sustainable basis.
Unidentified Participant
Okay sir.
Anurag Choudhary
So looking forward also you see growth in these numbers.
Unidentified Participant
Okay, sure sir. Not it. And secondly on the US Iran war and geopolitical situation. So due to the commodity prices in inflation and oil all over the world. So how do we see impacting our types of business and whether we will face any pressure going forward due to this war?
Anurag Choudhary
See as I told in my opening commentary also we are resilient to any shock in any movement in you know or dislocation in supply chain logistics in West Asia because of the ongoing geopolitical situation given our nil dependence on this geography. So definitely with energy pricing is going up, the material prices going, this will have impact. But good thing is that we’ll be able to pass on this to our customers. So as such we don’t have an impact on our P L for because of this gift geopolitical situation.
Unidentified Participant
Okay sir, okay understood. And hold the best for the future.
Anurag Choudhary
Thank you.
operator
Thank you. The next question is from the line of Nathan Shaktar from Green Capital single family office. Please go ahead.
Nitin Shakdher
Hi, good afternoon to the management, this is Nitin Shakta from the Green Capital single family office. My question is more from an investor’s point of view rather than an analyst type of a question is that for this annual year and in terms of approximate margin guidance for the three businesses which is let’s say advanced battery materials, the turnaround of the acquired assets on Biddle or tyres and obviously the main core business which is the specialty carbon black, are you able to give any sort of indication margin guidance growth rate for the year? I do understand that geopolitically or raw material cost will be up and down but just as an indication. Thank you.
Anurag Choudhary
So for the current year we don’t prefer to give any specific number guideline but on a macro basis I can give you guideline that current year we will see both top line and bottom line growth. So up till now we are not able to give any bottom line growth basically because we are going for value added within the same product profile. So what was happening? We were adding value to our existing products so the margins were increasing but the top line was not increasing in a big way. But now with new capacities coming up you will see top line growth plus margin expensive.
So both you will see in the I year to come.
Nitin Shakdher
Okay, thank you. Thanks a lot and all the best for this year.
Anurag Choudhary
Thank you so much.
operator
Thank you. The next question is from the line of Animeshain from Dalal and brochure. Please go ahead.
Animesh Jain
Thank you for the question. I want to ask what is the current utilization level that we have newly commissioned? 70,000 metric ton of specialty carbon block and what is the steady state utilization level and its EBITDA per ton?
Anurag Choudhary
So we expect to have around 85 to 90% capacity utilization for our newly announced capacity for FY27 and EBITDA. In terms of. If you look at our EBITDA per metric ton it was around 17,000 per metric ton on an average on the entire basket of portfolio and this being specialty it will be significantly higher than this average 17,000 plus.
Animesh Jain
And I want to also ask about that we have set up new subsidiary in China that we have mentioned. So why we have set up that subsidiary and what is the.
Anurag Choudhary
So we are. We will be importing some raw materials and equipment from China. For that we have set up our subsidiary to take some local tax benefits.
Animesh Jain
Okay, thank you.
Anurag Choudhary
Thank you.
operator
The next question is from the line of Dhruvan Khadakia from SKB Securities. Please go ahead.
Dhruvin Kadakia
Hello sir and congratulations on this robust set of numbers. My only request would be that in terms of sales volume will it be possible for you to provide me with a breakup as to what was the volumes generated between your legacy business carbon black and tires in this particular year
Anurag Choudhary
so task till now we have not consolidated. So once we consolidate then we can discuss this. Now it’s a part of, you know, sales only which is coming into Himadri. So as such number the detailed numbers we don’t disclose.
Dhruvin Kadakia
Okay, so not a problem. And any new updates with regarding to the CAPEX plan than what we already know? Like is there something on the block?
Anurag Choudhary
No, as of now we have already announced all the capex. But yes, Anode Capex will be announcing soon and once that is finalized the volume, the capacity and capex that will come up with a new disclosure.
Dhruvin Kadakia
All right, thank you so much.
Anurag Choudhary
Thank you.
operator
The next question is from the line of Sagar Jitwani from Philip Capital pms. Please go ahead.
Sagar Jethwani
Yeah, thanks for the opportunity. This significant jump in the other expenses is because of the Forex loss, is that correct?
Anurag Choudhary
Yes, yes.
Sagar Jethwani
And so what is our hedging policy in that case? Can we see some curtailment of this? You know Impact from the Forex volatility?
Anurag Choudhary
Yes. As you know there was sharp depreciation in rupees which impacted us on the import side and the export side. Also we hedged something but generally we keep our position open. But because of this huge volatility we hedged and hedging. Because of the hedging we had to incur losses. This time it was the other way around. So. But looking forward we are very vigilant on this and maybe we are confident that after Q1, Q1 there will be some hit but after that they will be very strong position in terms of any open position of.
Sagar Jethwani
Actually my question is not quarter on quarter, it is more of a structural in nature. Can we reduce the volatility swing from these Forex losses in long term?
Anurag Choudhary
Definitely. Since we have export and import more or less are in parity. So leaving the position open leaves us with very less chance of any FX volatility.
Sagar Jethwani
Understood. And secondly. Yeah so
Anurag Choudhary
that that this time we hedged a position thinking it was going to be volatile and that’s why we had affects loss. But our standing policy was to keep the position open being import and export being more or less in parity with each other. So we can. We’ll continue with our existing principles.
Sagar Jethwani
Understood. So but you’re saying that beyond Q1 the impact would reduce.
Anurag Choudhary
I don’t think there will be any impact before. After Q1.
Sagar Jethwani
Okay. Secondly, how many new clients that we have added in last two years and you know, geography wise, any new countries that we are planning to enter or scale up where you might be witnessing some kind of a significant opportunity given China plus one there’s a cost escalation in Europe as well. So some color on that would be helpful.
Anurag Choudhary
Definitely. So last year our exposure was 56 countries we were selling our product. This year it is 61 countries added five more countries particularly Europe is doing good and US is doing good for us in Europe also more and more countries are being added. So because of the, as you correctly said, because of the cost structure in Europe and usa this is giving us a lot of advantage. And China one policy is also working out well for our supplies to the global market.
Sagar Jethwani
Lastly, any color on margin, can you give up until FY28? I’m not talking about FY27 again not the one year guidance typically just you know, structurally long term. How do you see the margins? Because we are adding some new capacities also considering that fact.
Anurag Choudhary
Yeah. So with the new capacities coming out we are confident of strengthening our existing margins further from here on from here?
Sagar Jethwani
Yeah. Thank you. These were my questions.
Anurag Choudhary
Thank you.
operator
Thank you. The next question is from the line of Suhani Singh from Seja Capital. Please go ahead.
Unidentified Participant
Okay. Good afternoon. So I wanted to ask if the passenger car radial commissioning what is the targeted PCR capacity? The capex and commissioning timeline and so PCR is a notoriously crowded segment in India. What is the differentiation strategy for that as well?
Anurag Choudhary
So PCR we target to Commission in next 24 months and differentiating strategy will be. We’ll be focusing more on ev. That is the segment we will be focusing on. And we specialize that tire for electric vehicles. And given the Himalay’s strength in carbon black chemistry. So that gives us a unique advantage of building a value added tire with more strength resil, resilience. And this gives us a unique positioning in the business the understanding of key raw material.
Unidentified Participant
Okay. Okay sir, I also wanted to understand the standalone other income jumped from 51 crs to 176 crs. So could you break down the composition? It means treasury dividend from subsidiaries, government incentives or one offs.
Anurag Choudhary
Basically this is because of FDR interest in investments that we have put in mutual fund gains then NCDs that we have deployed for operation bills. That fair value calculation then based on our investment different investment. Their fair value calculation is a combination of all these.
Unidentified Participant
Okay, understood sir. Lastly with Haldia and Mangalore liquid coal tartage terminals commission what is the targeted FY26 export value and what proportion of standalone CTP revenue do you export from? Expect from exports by 28. FY28.
Anurag Choudhary
See by FY28 we expect the new commission capacity of 100,000 tons which gives us 50,000 tons of Polta pitch that will be completely exported to the global market.
Unidentified Participant
Okay, thank you very much.
Anurag Choudhary
Thank you.
operator
Thank you. The next question is from the line of Rohit Nagraj from 361Capillary. Please go ahead.
Rohit Nagraj
Thanks for the opportunity and congrats on good set of numbers. So first question is on the material facility that we have commissioned. So here in terms of the commercial validation of materials, how much time will it take and which and all are the customers where we will be targeting to send the material? Is it domestic exports? How are we looking at it? And once the validation is done, how much time will it take for us to put up a new commercial scale plant? Thank you.
Anurag Choudhary
The idea to commercialize and start this plant was to expedite the time frame required for validity of material. And that is the idea behind commercializing this plant. We are engaged with all the customers in India and all the you know who’s who in the industry globally. So we have already sent them sample A which has been got a very good response from our customers in terms of quality validation. Validation. Now we have to send them sample B C D. That will start now. Once it is done then we will come up with roadmap for our future capacity expansion.
But that will happen very soon, will not take significantly long time now.
Rohit Nagraj
Sure. Just one allied question. In terms of the anode material pricing, how has it changed over the last five years? So what was the price about five years back? And given that new technologies have come commercial operations capacity, how the price are doing currently in terms of rupees per kg or malar per kg per metaton. Thank you.
Anurag Choudhary
So I don’t want to comment on price per metric ton but to give you a broader idea, all the cell component prices have come down between 50 to 60% over the last four, five years. Whether it is cathode or anode.
Rohit Nagraj
And second
Anurag Choudhary
also depending on what quality you make, what, what grade you make, what application is given. So price is significantly valid. So it will not light on my part to comment on per medicine price.
Rohit Nagraj
Sure, that’s helpful. The second question is in terms of our gross margins which have expanded. So just to get a perspective, the pricing of finished goods, working progress and raw materials would have been at a higher level given that there have been increase during the month of March. Is there any element of inventory gains that we have observed during this quarter and if so, what could be the quantum of the thing?
Anurag Choudhary
See the margins expansion that you are seeing is not one of things. It’s sustainable long term margin improvement that because of our own efforts in terms of improvement in yield, operational efficiency basis waste recovery systems we have been able to do and these are sustainable on a long term basis and they strengthen further only
Rohit Nagraj
I was just concerned more on the gross margins front. So because of revaluation or better valuation of the inventories, is there any benefit of inventory gain which we have observed?
Anurag Choudhary
No, no, not really.
Rohit Nagraj
Thank you so much and all the best.
operator
Thank you. The next question is from the line of Dhruvin Karakia from SKP Securities. Please go ahead.
Dhruvin Kadakia
Hi sir, I just wanted to confirm that in the segmental breakup of revenues that we’ve given we’ve included a new category called other which includes mining and other businesses. So could you shed a little bit light on what the other businesses are like? Is it tires combined?
Anurag Choudhary
That’s tire combined. Right.
Dhruvin Kadakia
And, and you, you mentioned the figure for tire sales this year, what was it? Could you please repeat that? 187 crores. 187 crores. And would you be comfortable in sharing what was the realization per ton on this that you’ve gotten for this year?
Anurag Choudhary
We don’t give parametric.
Dhruvin Kadakia
Okay, not a problem. So thank you so much.
operator
Thank you. The next question is from the line of Vignesh SBK from cnamel. Please go ahead.
Vignesh SBK
Hi, sir. Am I audible?
Anurag Choudhary
Yes, yes, please.
Vignesh SBK
Yeah. Just want to understand about upcoming Cat out segment. What would be the typical assertion for the project or for the segment?
Anurag Choudhary
Two times.
Vignesh SBK
Hello. Just want to understand the assertion for the upcoming Cathode segment. Sir,
Anurag Choudhary
Just two times. It will be two times of the asset investments turn over to assets.
Vignesh SBK
Okay. And one more thing. For the first phase we said around 2,000 tons would be commissioned. What? How much would be the total one in the phase one?
Anurag Choudhary
What is. Can you speak louder?
Vignesh SBK
Is it better now?
Anurag Choudhary
Yes. Yeah, it’s better.
Vignesh SBK
Yeah, yeah. We said initial will be 2000 MTPA. And what would be the total phase from capacity?
Anurag Choudhary
40,000.
Vignesh SBK
40,000 and 40,000 would be commissioned by FY29. Is the clear?
Anurag Choudhary
Yes, yes. No, FY28 end of FY20 before FY29. So FY29, you will see the full year of operation of entire 40,000 capacity. And the reason logic we are see capital allocation has been done, but we have. We are very careful in terms of deployment of capital because we are focused on roc. So I don’t want to do as a company policy, we don’t want to deploy capital ahead of requirement. We can very well set up and start the commissioning and set up the facility and deploy capital for 40,000. But since the approval period it’s itself takes longer time.
So it makes Sense to get 22,000, get it approved. And in the same time 40,000 is 38,000 will continue and it will commission so that there is full realization and proper return on capital employed.
Vignesh SBK
Got it. So helpful. And what will be the total capex incurred for this? 40,000?
Anurag Choudhary
11. 25 crores.
Vignesh SBK
Okay. Okay, thank you. And in this Cathode facility usually it is energy comes energy heavy or how. How are we planning to any plan for the energy side as such renewables or something like that
Anurag Choudhary
For Cathode?
Vignesh SBK
Yeah, yeah.
Anurag Choudhary
We have renewable plants for to consume renewable energies.
Vignesh SBK
So those can be fun
Anurag Choudhary
there you buy, you enter into a long term contract. We don’t plan to invest on our own.
Vignesh SBK
Okay, okay, okay. Thank you.
operator
Thank you. The next question is from the line of Yash Mehta from Arkan Capital. Please go ahead.
Unidentified Participant
Hello, Good afternoon.
Anurag Choudhary
Good afternoon.
Unidentified Participant
So I want to ask are there any binding Lois mous or offtake sign with Indian or global cell manufacturers for LFP supply and what proportion of phase one capacity is contracted?
Anurag Choudhary
What’s the
Unidentified Participant
what proportion of phase one capacity is contract?
Anurag Choudhary
See any MoU is LOI but you have signed we have NDA. We cannot disclose this now right point of time it will be disclosed and for our phase one the capacity depending on the product approval this Lois will be affected.
Unidentified Participant
Yeah, okay. Okay. Got it sir.
Unidentified Participant
And my next question is as we can see the net cash declined from 392crores to 122crores despite record pat and the standalone current borrowings also rose from 306 crores to 719 crores. So could you please walk me through the FY26 sources and users and moreover can you tell me about the steady state debt level that you will be comfortable carrying forward?
Anurag Choudhary
See the increase in working in the bank volume is basically we have huge, we have significant bank limits. We need to utilize this limit to keep our limits intact and we can take at a lower rate and deploy it back to the bank at a higher rate. So that gives a delta also which is part of other income. So for our future expansion plan is to use the internal equal only for all expansion. So in any case future if we take debt also that will very significantly low portion and will be just timing gap not much.
We don’t want to be heavy on debt.
Unidentified Participant
Okay. Okay. Yeah, that’s completely fine. Thank you sir.
operator
The next. Due to time constants, I now hand the conference over to Mr. Anurag Chi from closing comments.
Anurag Choudhary
Thank you. Thank you once again for taking the time to join us on today’s conference call. We hope we have been able to address your queries adequately. This year has truly been transformational as we set new performance records, achieved world class capacity addition earmarked landmark recognition and made decisive progress progress on our future growth engines. And yet we firmly believe the best chapters of Himadi’s story are still ahead of us. We remain committed to delivering long term value and are grateful for your trust and confidence and engagement as we scale new capacities and capabilities and scale new frontiers and save the next phase of our growth. Should you have any further questions, please feel free to reach to our investor Partners Relations Partner MUFG in time. IR thank you once again for joining the con call today and we look forward to your continued support. Thank you
operator
on behalf of Himadri Specialty Chemical limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.