IOL Chemicals and Pharmaceuticals Limited (NSE: IOLCP) Q3 2025 Earnings Call dated Feb. 14, 2025
Corporate Participants:
Darshan Mankad — Senior Account Director
Abhay Raj Singh — Senior Vice President and Company Secretary.
Pardeep Kumar Khanna — Chief Financial Officer
Rakesh Mahajan — Advisor Finance and Strategic
Analysts:
Udit Gupta — Analyst
Sanjay — Analyst
Shaikh Mohammed Ayaz — Analyst
Harshal Patil — Analyst
Disha Shah — Analyst
Maulik Varia — Analyst
Kenil Mehta — Analyst
Harshit Khadka — Analyst
Ashish — Analyst
Presentation:
Operator
Ladies and gentlemen, you are connected to the IOL Chemical and Pharma Earnings Conference Call. Please stay connected. The call will begin shortly. Participants are connected to the IOL Chemicals and Pharmaceuticals Limited Earnings Conference Call. Please stay connected. The call will begin shortly. Ladies and gentlemen, you are connected to the IOL Chemicals and Pharmaceuticals Limited Earnings conference Call. Please stay connected. The call will begin shortly. Thank you ladies and gentlemen, good day and welcome to the Q3 and nine months FY ’25 Earnings Conference Call of IOL Chemicals and Pharmaceuticals Limited. From the management, we have Mr Pradeep Khanna, Chief Financial Officer; Mr Abher Rat Singh, Senior VP and Company Secretary; and Mr Rakesh Mahajan, Advisor, Finance and Strategy. We also have an Investor Relations team from AdFactors. As a reminder, all participant lines will be in the listen-only mode and you will be able to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing start and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Darshan Mankar from Ad Factors PR for opening remarks.
Darshan Mankad — Senior Account Director
Thank you, and over to you, sir. Thank you,. Good afternoon, everyone. We welcome you to the Q3 and nine months FY ’25 earnings call of IOL Chemicals and Pharmaceuticals Limited. Trust, you have gone through results and investor presentation. Please do note that some statements in today’s call might be forward-looking in nature. Owing to the nature of the business, it may involve risks and uncertainties, including those related to the future financial and operating performance. I request you to consider the present sectoral scenario while analyzing the results. Please do bear with us if there is any disturbance or call drop would ensure it is resolved the soonest. I now hand over the call to Mr Aber Singh for his opening comments. Over to you, Abhi, sir.
Abhay Raj Singh — Senior Vice President and Company Secretary.
Thank you. Thank you,. Good afternoon, everyone. Thank you for joining today’s call. Trust — trust you have gone through our results and investor presentation. We have seen consumption slowdown creeping in and impacting the growth despite being expected to be the fastest-growing next year also, there are concerns, which are likely to sustain and impact overall corporate earnings and economy growth. The trade world doesn’t augur well for the Indian economy in general and pharma and chemical sector in particular. Through tax relief, the government has tried to address the issue of consumption slowdown and that is likely to support demand in the short-term. However, any impact on exports due to tariff by US is likely to be a major dampener for Indian manufacturing sector’s growth. The 3rd-quarter has been a flat one for the industry and iOle has been no exception to it. The segment demand and price — pricing pressure continue to impact margin and revenue growth. However, through cost corrective measures and volume growth leading to economies of scale and enhanced operational efficiencies, has minimized this impact. The logistics challenges due to rise in freight cost though not deteriorated has sustained thereby limiting the cost-reduction. The 4th-quarter doesn’t seem to be any different. However, we expect some recovery in-demand and pricing pressure to ease from Q1 of next year as trade situation is stabilizing. API prices subdued amid stagnant demand, while margins received some support from reduced input costs and enhanced operational efficiencies. The long-term outlook remains positive, driven by anticipated improvements in volume and continued efficiency gain. In the specialty chemical sector, prices have remained stable in recent months for raw materials and finished goods as well. Export realization has softened to some extent, though an improvement in-demand was observed. With this, I now hand over the call to my Philip, who will brief you about the financial performance for the quarter and nine months ended 31st December 2024.
Pardeep Kumar Khanna — Chief Financial Officer
Thank you, Mr Abra. Good afternoon, everyone, and thank you for joining us today to discuss our performance for the 3rd-quarter and nine months ended 31st September 2024. I will now give a brief overview of standalone financial highlights for our recently concluded quarter and nine months ended 31st December ’24. The total standalone income of the company in the 3rd-quarter of financial year ’25 stood at 527 CR as against 529 CR in the 3rd-quarter of the financial year ’24 and INR532 cr in the previous quarter ended September ’24. EBITDA for the quarter was INR51 cr as against 53 in the corresponding quarter of the financial year ’24 and 48 in the previous quarter ended September ’24. EBITDA margin for the quarter is 9.7% is as against 10 percentage in the corresponding quarter of financial year ’24. In the previous quarter ended September ’24, EBITDA margin stood at 9%. The net profit in the 3rd-quarter of financial year ’25 is at INR21 cr as against INR23 cr in the 3rd-quarter of the last year and INR19 cr in the previous quarter ended September ’24. Our EBIT margin for the Pharmaceutical segment was at 8.7 percentage in-quarter three of financial year ’25, while EBIT margin for the Specialty Chemicals segment was 2.1 percentage. The capex for the quarter is INR54 cr, where it was INR80 cr for the corresponding part of financial year ’24 INR24 and INR83 in the previous quarter ended September ’24. I would like to share two additional updates. The Board has declared 40% interim dividend that is INR4 per share of face value of INR10 inch for the financial year ’24 ’25 and fix their call date of 18 February ’25 for certain entitlement and the same will be paid within this month. Secondly, as you might be aware, the Board has fixed 11th March ’25 as a recall date subdivision of face value of shares to from INR10 earlier for shareholders approval.
With this, we open the floor for a question-and-answer session. Thank you very much.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press R&1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Udit Gupta from Ashika Institutional Equities. Please go-ahead.
Udit Gupta
Hey, hi, good afternoon. So my first question is, how is the demand scenario shaping up for and a brief view on current trends in API pricing environment. Do you foresee any pricing pressures on margin impact going-forward?
Rakesh Mahajan
Thank you. You have asked who is scenario and rule the margin are stable as we think they are already bottomed-out from the last 3/4 and however, however, in the last few days, the prices of again going some soften when some soften some prices and now the average of price prices is around $9
Udit Gupta
And what about the current trend going-in API pricing environment? Do you foresee any pricing pressure or margin impact.
Rakesh Mahajan
Already it is, I think already bottom out and there should not be any further reduction in prices.
Udit Gupta
And as ashi, my next question is, as previously mentioned about the efforts ongoing to onboard the new clients in the US, where do we stand-in this process? And when can we expect to see initial benefits in terms of revenue contribution?
Rakesh Mahajan
No. As of now, we are exploring new customer in the US market, but in the process of getting the customer taking two, 3/4. So as of now, there is no major development for immediate development for supplying the material to US market, but the demand in Latin-America and Europe is constant.
Udit Gupta
Okay. And lastly, what is our current capacity utilization?
Rakesh Mahajan
And current
Udit Gupta
Capacity utilization.
Pardeep Kumar Khanna
So industry utilization around 75% of.
Udit Gupta
Are we targeting to return to 90% utilization levels in near-term?
Rakesh Mahajan
We are hoping for that to increase to around 90% in the next two, 3/4.
Udit Gupta
Ohh, okay, that’s it my side. Thank you
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Sanjay, an Individual Investor. Please go-ahead.
Sanjay
Yeah, good evening, sir. Am I audible?
Operator
Can you request, sir, if you can speak a bit louder?
Sanjay
Am I audible?
Operator
Yes, please go-ahead.
Sanjay
Yes, sir, I have three queries. So one is, if we see the standalone balance sheet on page number 11 of the investor presentation, we see that earlier we used to have very good EBITDA margins of closer to 28% and 30%. So do we have any chances of going to those levels in the future, because we say that the margin will drop continuously over the years.
Rakesh Mahajan
Earlier as earlier discussed that the prices of APIE was bottom out due to destocking and stagnant demand however, the earlier levels which were around three years back was a successional period. So we don’t expect that much of high-level of returns in API segment on in upcoming two, 3/4. But we are constantly taking various steps or measures to increase our margin level with the rest of our efforts and market accelerations.
Sanjay
But when you say that these margins have bottomed-out. So bottoming out a 70% drop from the top from the highest-level. So what are the levels that the management foresees, let’s say, in the next two or three years, very conservatively, what are the margins we can expect
Rakesh Mahajan
Then margin which we company expecting on the EBITDA level, it will be company as a whole, maybe around 13% to 15%.
Sanjay
Okay. Sir, that was one question. Okay. That was one question, sir. Sir, my second question is about the new land that we purchased on the Chandigarh Highway. So what — by when — what are the plans that we want to construct on those and what are the products that will be manufactured through those? Because it’s a huge land and the capacity is I — I think will be huge in that. So what are the business plans for that particular of acquisition that you’ve done for land?
Abhay Raj Singh
Yeah. So Sanjaji, that land has been acquired for setting up the new facility over there and the business model will remain same that we will having some chemicals as well as some API plants in that particular land. So the products are in the process of the finalization. So at this moment, we are not able to tell you the specific product-line we are going to manufacture.
Sanjay
Okay. Yes, sir. So — but by when can we expect you know, the operations on that on that particular plan, but by when do we expect the execution to happen? Yeah.
Abhay Raj Singh
So we applied for the environmental approvals and there are not many other approvals are required. So we are taking up on the priority and we hope in 18 to 24 months we will be able to ramp out the facility in that new land.
Sanjay
Okay. Okay, fine. Thank you, sir.
Operator
Thank you. The next question is from the line of Sheik, an individual investor. Please go-ahead.
Shaikh Mohammed Ayaz
Thank you for the opportunity and congratulation for the set of numbers which management has told in previous conference call. Now my question is what’s the guidance for the next quarter because you told exactly what we have got.
Rakesh Mahajan
We think it will remain the same number almost to same performance
Abhay Raj Singh
A sort of flat quarter we are looking into with the slight margins. So because the pricing pressure and the stagnancy in the demand is persisting. Earlier, we were expecting that there will be some relief from Q4 onwards. But I think now this is differing by and longerishing by about 1/4 also. So we are expecting sort of similar number.
Shaikh Mohammed Ayaz
We used to do long-term contracts in the start of the year, right? So don’t you see any positive from that
Abhay Raj Singh
Long-term contracts are therein, so — but because all the contracts have some price escalation or the price adjustment clauses?
Shaikh Mohammed Ayaz
Okay. So okay, come to the next question. What about USFDA inspection? Is there any update because it has — I think last first USFDA inspection we got in 2017, then 20202, but now almost five years, there has been no inspection.
Abhay Raj Singh
No, we — we were having it first-in 2015 and then the reaudit was done in 2019 and the audit since then expanding and we were expecting to happen it for last about one year, but we are not getting any information or communication from the US-FDA. Though two, three molecules has also been filed — the ANDA has been filed for two, three molecules for the company and we are expecting that during the evaluations of this ANDA process, the US will come and visit us because technically, this time it is mandatory for the US to visitival facility before approving any agenda. What,
Shaikh Mohammed Ayaz
But absolutely not any position. We are absolutely not in a position to communicate the timing about the US-FDA.
Pardeep Kumar Khanna
Okay, it had been very long because we are not able to perform because of that only.
Abhay Raj Singh
That may be for non-IBU segment, that may be right. But we are having the CEP for the non-IBU segment. Obviously you are right that the US-FDA approval for the non-IBU products will definitely give us a boost to increase our sale-in the existing regulated market where we are selling but that is beyond our control.
Shaikh Mohammed Ayaz
Okay, sir, sir, I have asked so many times that regarding what when we are going to stop split or something else, finally we are getting it, but at that time you told that when we — when the price will reach at that level, then only we will make stock split. And now suddenly we have gone for stock split. What the rationale behind it?
Abhay Raj Singh
So basically, there was a continuous demand from the various stakeholders requesting for the stock split. And when we — when we initiated this process price, the market overall was on a higher side and since then the market has gone down. So I think this is a temporary phase because of the market situation and the sentiments in the equity market is not stabilizing, it’s going towards south. So we are hopeful whenever the sentiments get stabilizes and our number will also — because you can announce that we are failing through with this challenging period. The company’s performance is again and again representing the resilience. So that is reflecting in the performance and will also reflect in the performance in the quarters to come. So we are very hopeful and the is that this will give liquidity comfort to the retail investors also. So I think we are hopeful that the prices will increase along with the market sentiments, the increasing the market sentiment. I mean, this is the only thing we can comment on. We are also not aware about all those things.
Shaikh Mohammed Ayaz
Okay, sir. Sir, what’s the pricing difference in phenomhybrid and paracetamol in the regulated versus non-regulated market.
Rakesh Mahajan
So it depends on the product-to-product, but in some cases, it is maybe 10% in few cases, it may be 30%.
Pardeep Kumar Khanna
So in case of, it is 10% to 12%, 12% generally. And in case of, it is 15%.
Abhay Raj Singh
And for the fan of hybrid, it is around 13% to 35%.
Pardeep Kumar Khanna
Yes,
Shaikh Mohammed Ayaz
30% to 35
Abhay Raj Singh
Rate.
Shaikh Mohammed Ayaz
Sir, we are not having any any plant, dedicated plan for?
Abhay Raj Singh
No, –, it’s not dedicated, it’s a multifacity product wherein two, three other products are also being manufactured. So — but the capacity is fungible. So I mean depending on the requirement and the demand that any molecule can be capacity can be adjusted as per the demand.
Shaikh Mohammed Ayaz
Okay, okay, sir. So we’ll wait in a queue for the next question.
Abhay Raj Singh
Okay. Thank you.
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Harshal Patil from Family Office. Please go-ahead.
Harshal Patil
Yeah, hi. Thanks for the opportunity. We just have a two questions. Could you let us know on an overall basis, how much has been the volume growth in comparison to the same quarter last year and previous quarter. Also, if you could elaborate which products of whether IBU or non-LBU products are driving this growth.
Rakesh Mahajan
So in our chemical sector, there is substantial increase in the volume. But in the and segment, the API segment, they are almost — a stable level, maybe 1% or 2% more growth only, not substantial. But in chemical sector, it is around more than 15% from the last quarter.
Harshal Patil
Okay. Okay. And can you see an increase in depreciation cost? Could you explain the reason behind it?
Rakesh Mahajan
We have just capitalize the fixed asset in last quarter, last year like we have started the and and other product improvement during the part of last financial year. So in this full-year, we have made some capex like revamping of our plant environment equipments ATP of new ETPs. So that always accommodate to the increase in the depreciation.
Harshal Patil
Okay, okay. Okay. Thank you. That’s all from my side.
Operator
Thank you. The next question is from the line of Sanjays, an individual investor. Please go-ahead.
Sanjay
Thanks for giving me another opportunity. Sir, in the last call, you were told that there is another competitor who is coming up with the IB prophen capacity. So what do we — do we have any challenges going-forward with respect to that, considering that you’re telling that the demand and all is not-so-good now
Rakesh Mahajan
Have to Hyderabad is coming from six last two, three years. And we feel there is no major impact of that is slightly they are trying to enter the market, but still as per their transcriptions and cars they are at a very low comparison level occupancy utilization as of now.
Sanjay
Okay, and sir, considering that you told us in the opening speech regarding the trade war that is not beneficial for the pharma and chemical players. For currently for Io and chemicals, are there any — what — are there any existing tariffs? And if so, what are those levels and what does the management expect in case there are any such tariffs that are imposed? So what could be the levels of tariffs that will be imposed on our products?
Abhay Raj Singh
So basically, we are not exporting any direct chemical to the US.
Sanjay
Okay.
Abhay Raj Singh
And what we discussed about that the talks about the resi pro city on the tariff is the thing which is disturbing the market. And the overall manufacturing sector is getting. So that is the thing, but we as a chemical producers of our products, we are not directly, but indirectly somehow because everything is interconnected with each other. So anything which is getting disturbed at one place, obviously the other place is also getting disturbed, but we do not have any direct impact on it.
Sanjay
So you don’t — we don’t have any direct impact. So obviously, we will be supplying those APIs to a particular manufacturer who would be exporting it?
Abhay Raj Singh
Yes.
Sanjay
So then obviously, we will have an impact if there is any such tariff being implemented.
Abhay Raj Singh
But obviously, obviously, but that impact, we cannot calculate as of now, let the things get more. That time, I think we will be in better situation to talk about on this topic.
Sanjay
Correct, sir. I’m just assuming in case there is, what are the origins from where our competitive products are exported? Are those countries are also on the list? Any such idea for the products — for the APIs that we give to the final producers?
Abhay Raj Singh
We don’t have that much of idea, but the tariff is what Russia — what US is saying that they will be reciprocating these tariffs. So suppose if I’m exporting anything to the US and US is exporting the same thing to us, we are charging some tariff, they will also charge the same tariff. So that is the discussion is going on. So that may impact, but indirectly, not directly.
Sanjay
Okay, fine. Okay. Thank you, sir. That’s it you.
Operator
Thank you. The next question is from the line of Shah, Individual Investor. Please go-ahead.
Disha Shah
Hello, sir. I have couple of questions. The first one being that we see improvement in the margins in the chemical sector this quarter. So could you just let us know what is the driving force behind this? And can we think of it as a sustainable going ahead?
Rakesh Mahajan
In chemical sector, there is great relation with raw-material prices and finished goods prices. So in terms of some operational efficiencies, capacity utilization and the increase in our export market volume, we are able to income improvement in the chemical sector because earlier around this five, six quarters, there was lot of volatility in the raw-material prices and finish prices. But since last two, 3/4, the prices are almost remained stable and we have explored some new markets also and around last year, we have got a reach certification by which I our export in the in the orders has been to some extent and we are continually diversifying and expanding our new chemicals. All these efforts.
Disha Shah
Okay, sir, my next question is on the export side. So we have seen fall in exports substantially compared to last quarter same year and even in comparison to the previous quarter. So is this mainly due to the decline in prices or there are there any other factors?
Rakesh Mahajan
You are worried. The reason is reduction in the prices, especially segment.
Disha Shah
Okay. So sir, one more question. Could you just explain how are we planning to increase our revenue from the profile
Rakesh Mahajan
On the to increase the volume realization and revenue in segment, especially in the European market and Latin-American markets already lots of validation of clients, vendors are in the process, usually it took three to four quarters for getting a regular order from a new customer and many of them are taken tile orders or samples and the process is we think we have achieved a far near to the far end of these validation and are expecting some good clients in our segment.
Pardeep Kumar Khanna
The exports of non-IQ segment is going to increase volume as compared to the last year, we have export more than the last year’s numbers. So sport is increasing. So by getting the better price of the sports, we will able to get the — more revenue from the segment.
Rakesh Mahajan
Thank you.
Disha Shah
Okay, sir. That’s it from my side. Thank you for considering my questions.
Operator
Thank you. The next question is from the line of Malek Varia from B&K Securities. Please go-ahead.
Maulik Varia
Yeah, hi, sir. Thank you for the opportunity. So for this quarter, we’ve seen 6% growth from the non-ibuprofen portfolio. So can you please help which products drove this growth
Pardeep Kumar Khanna
It is in primarily it is and also also Penta
Maulik Varia
Okay. Okay. Okay, sir. Thank you. Thank you. And sir, just one more question. I think you already mentioned it, but I was not able to hear it properly. What led to the fall in our chemicals revenue by 4% for this quarter? Can you please clarify
Pardeep Kumar Khanna
Yeah, can you repeat the question? You are not properly audible.
Maulik Varia
Yeah. What led to the 4% decline in our chemicals revenue to INR275 crores?
Pardeep Kumar Khanna
Chemical revenue is downward because of price because which price we get-in the last year, it is lower than less than the last year price.
Rakesh Mahajan
Volume is increased.
Pardeep Kumar Khanna
The volume is stable increase by some figures, but due to prices, the revenue is — revenue of chemical is decrete.
Rakesh Mahajan
Raw-material prices are also decreased to some extent corresponding.
Maulik Varia
Okay. So it’s mainly price decline, which has impacted the growth?
Rakesh Mahajan
Yeah.
Maulik Varia
Okay. And sir, can you please update about the paracetamol prices currently
Rakesh Mahajan
What was
Pardeep Kumar Khanna
Paracetamol
Maulik Varia
Paracetamol pricing, is it like steady sequentially or has it increased because it was nearly bottom in the previous quarter.
Pardeep Kumar Khanna
There is no major increase in paracetamol prices, only 2%, 3% increase from the last quarter, but no major increase in the price of the.
Maulik Varia
Okay, sir. Thank you so much. Thank you.
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Sheik, an Individual Investor. Please go-ahead.
Shaikh Mohammed Ayaz
Thank you for the opportunity again. My question is whether this chemical sector performance is steady? Will it continue or it’s just for particular quarter?
Rakesh Mahajan
No, it will be in Bru because we have export new market, especially export in Europe. We hope that it will be improved a little bit from the current quarter in the next quarter or soon.
Pardeep Kumar Khanna
Also, we are now sporting which is commercial in the last year so we will get the better price from the Astra. That port is starting
Shaikh Mohammed Ayaz
Okay. Sir are we? Do we need CEO for our company or we can perform we can stay without CEO?
Abhay Raj Singh
So basically this company of the company.
Operator
I’m sorry to interrupt you, sir. We are unable to hear you
Abhay Raj Singh
So we did this thing I think in every call. So as already told you the last-time also, Mr Vikar Gupta, who is the Joint Managing Director is taking care of the company. So — and legally, as you asked the last-time also that whether we legally require the position of the CEO or no, it is not legally required, but this is being taken care by the — cumulatively by all the professionals, we have the overall the professional setup led by the Mr Vikas Gupta.
Shaikh Mohammed Ayaz
Okay.
Abhay Raj Singh
Under the guidance of Mr Varander Gupta, under the guidance of the Mr Varendra Gupta and Independent Board.
Shaikh Mohammed Ayaz
Yeah. Sir, we have recently we got CEP approval from, what are we targeting exactly only for the export market and is there any plant we are having for?.
Abhay Raj Singh
So campaign basis, we will start with this product. As of now, we have not started the commercial productions in a big manner. We are exploring the overall the market and we will start in some time.
Shaikh Mohammed Ayaz
Okay, sir. Sir, after getting BMF, what’s the procedure to send API to USA? How much time it will require after getting DMF approval
Abhay Raj Singh
The DM after the DMF approval, the company — I mean the formulator which wants to buy from us, they need to file the ANDA and the ANDA is approved by the US-FDA and while approving the ANDA, they also visit or inspect the company, I mean IUL of whom the API is being used for making that particular drug. So that basically depends on the end filed by the formulator and also on the wish of the FDA, USFDA when they want to visit. But the process is like this. Filing DMF is in our hand, filing ANDA is in the hand of the customer and the ANDA is reviewed by the US-FDA and during this review process, they review the facility of the formulator means customer as well as the API producer means IUL.
Operator
Thank you. The next question is from the line of Mehta from Onkara Capital. Please go-ahead.
Kenil Mehta
So all of your revenue for European markets for nine months and I would love to know what will be our strategy for growing our European sales as we have received lot of approach over last one year and that could be a major growth driver for us in the export market so can you give us on the last year segment.
Rakesh Mahajan
On the last 1.5 years, we have started getting approvals for various products, both through non-IQ and chemicals also from the market. And are the markets market team is continuously exploring these things there to explore the customer and getting their samples, giving them samples, orders and other things and we, we, as a company more focusing on the European market to increase our score share there no,
Kenil Mehta
That’s okay. So are we targeting the innovators OTC segment or generic segment players majorly?
Rakesh Mahajan
Which
Kenil Mehta
Innovators OTC, OTC market.
Rakesh Mahajan
OTC or most of our products are OTC.
Kenil Mehta
Okay.
Rakesh Mahajan
Like mean I do, they are all OTC plus.
Kenil Mehta
Okay. So what will be your target for Europe export sales over next four years
Rakesh Mahajan
You mentioned in the last earning call also, we are targeting around 40% to 45% export share for
Kenil Mehta
Our have you commercialized on a large-scale or is still going on a trial phase
Abhay Raj Singh
Can you — can you please repeat your question?
Kenil Mehta
Have you commercialized on a large-scale compared to your stated capacity
Rakesh Mahajan
Or reason we are producing since last seven to eight years, but it is only in the campaign based and in other multi-product facility only.
Kenil Mehta
So the Zaba one which we converted.
Rakesh Mahajan
When the continuous increase in the limitation demand, we will surely go for that. But it is I think it’s global demand is not more than we can say three-digit number. So we are getting some part of that. In case when we get the new numbers, we will surely go further dedicated. But from the last four, five years or six year, we are producing in the multi-product only.
Kenil Mehta
Understood. No question. Thanks.
Rakesh Mahajan
Thank you.
Operator
Thank you. The next question is from the line of Harshit from RoboCapital. Please go-ahead.
Harshit Khadka
Thank you for the opportunity. Am I audible?
Operator
Yes, you ask yeah.
Harshit Khadka
Thank you, sir. So sir, can you tell me how can we increase our EBITDA margin to 14% to 15% and when can we reach that level
Pardeep Kumar Khanna
We are now focusing on the capacity utilization of our products. So whenever the price — prices of these products recover, we hope the huge improvement in the bottom-line. So now we are only focusing on the capacity utilization of our products.
Harshit Khadka
Okay, thank you. Sir, do you have any outlook Tom for FY ’26 sequential
Pardeep Kumar Khanna
Please repeat.
Harshit Khadka
Do you have any — do you have any outlook for your top-line guidance for FY ’27 or FY ’26?
Abhay Raj Singh
Top-line guidance, we are estimating to grow around 10% — 10% to 12% considering the current scenario.
Harshit Khadka
All that. Thank you.
Operator
Thank you. The next question is from the line of Ashish, an individual investor. Please go-ahead.
Ashish
Hello, am I audible?
Operator
Yes, you are.
Ashish
Hello.
Operator
Go-ahead.
Ashish
Hi. So basically, my question pertains to the stock spread that’s been announced lately. So I mean, one of the last con-calls we were told quote-unquote to let the share price reach a certain level then the management will consider stock split. Not to mention the stock price of at that point in time was trading at the levels of 500. So what exactly propel the management to consider the stock split even though the share today is trading at a decadent levels? So that would be my first question, sir. Thank you.
Abhay Raj Singh
So we already addressed this question in this call as well. Perhaps you were not there in the call. So — but as — because this was a continuous demand from the shareholders since past. And when we consider the sales was trading around 400 and something around 425 at that level. But because of the negative sentiments spreading across the market since long, I mean about 1.5 months, these perhaps our share is also behaving in that manner. The rationale behind this was considering that, number-one, we need to address the shareholders demand and just to have the greater liquidity in the hands of the shareholders. Considering the global market trends in the Indian market trends and the company’s performance, we are hopeful that this will very soon come back to the previous level.
Ashish
Okay. So my second question would be, sir, I mean, for the past few years, to be precise during the times of Mr Sanjay –, our target has been to increase the operating profit margins in double-digit. But in pursuit of that, we’ve faltered badly and the company is only buying time or when do we foresee achieving the double-digit operating profit margins? I mean, the top-line has altered badly and that affects the domino effect as well. So when do you see the operating profit margins achieving the double-digits because it’s been for quite some time that we’ve been aiming at that and we haven’t been able to. In the meantime,, we did, but still we are just altering badly. When do you expect to achieve it, sir?
Abhay Raj Singh
So expected expectation is the one thing to estimate is another thing. So what we — what we are estimating that from Q2 onwards, we will find some or maybe the Q1 onwards next year we will start seeing the improvement in the pricing pressures because last two, 3/4 the prices we are feeling the prices — pricing pressure despite that the quantity is either maintained or the increased. So that has been mainly reason that the — our turnover for last two years or the three years, you can say is hovering around the same amount. We are not able to see the jump what we are expecting in the start of the year. But I think chemical sectors is also — people are considering all the experts are considering and we as an industry player also considering for last two, 3/4 to show the recovery, but it is always getting defined one-by-one quarter or by the two. So at present, considering the current scenario, we are hopeful that from the Q2 onward, the chemicals start performing well as well as the APIs.
Ashish
Thank you. Thank you for the answer, sir. And fourth would — I mean, my third question would be how well are we prepared for the inspection that’s expected anytime soon?
Abhay Raj Singh
So inspection is a regular phenomenon for us. But every month, we are handling three, four inspection or the audit you can say by customers that last year visa did inspections also all the 10 plants of our company inspected by the and no objective was raised by them. So we are always prepared for that because we understand the FDA can come any day. So we are always audit ready.
Ashish
Okay, sir. Thank you for your answers. I hope to see recovery in top-line, bottom-line and also reflecting in the share prices. Thank you.
Abhay Raj Singh
We are also hoping all day. Thank you so much.
Operator
Thank you. Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr Rakesh Mahajan for closing comments.
Rakesh Mahajan
Thank you. Good afternoon, everyone again. Thank you everyone for joining us today. The second-half of the year has been tough for the Indian manufacturing sector with slowdown and freight challenges affecting growth. This trend is likely to continue in the quarter-four. However, we are hopeful that demand and pricing in the pharma and chemical sector will pick-up in FY ’23. At, we are working towards strengthening our capabilities and expanding our product range, keeping an optimistic outlook for better market conditions. We truly appreciate the support of our investors and believe that with their first, we will navigate through these challenges. Thank you very much once again. Have a good day.
Operator
Thank you. On behalf of IOL Chemicals and Pharmaceuticals Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.