IOL Chemicals and Pharmaceuticals Limited (NSE: IOLCP) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Abhay Raj Singh — Vice President and Company Secretary
Pardeep Khanna — Chief Financial Officer
Analysts:
Unidentified Participant
Prachi Amri — Analyst
Jainam Ghelani — Analyst
Maulik Varia — Analyst
Surabhi Sutaria — Analyst
Varun Mishra — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to the IOL Chemicals and Pharmaceuticals Limited Q3N 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing10.0 on your Touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Prachi Amri from from MUFG Investor Relations team. Thank you. And over to you, ma’. Am.
Prachi Amri — Analyst
Thank you, Anushka. Good afternoon everyone and welcome to IOL Chemicals and Pharmaceuticals Limited Q3 and 9 months FY26 earnings conference call. Today on the call we have Mr. Pradeep Kumar Khanna, Chief Financial Officer. Mr. Abhayraj Singh, Senior Vice President and Company Secretary. Mr. Kushal Kumar Rana, Director Works and Mr. Rakesh Mahajan, Advisor to provide insights on the company’s operational and financial performance. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward looking statements which are completely based upon our beliefs and expectations as of today.
The statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this I would like to hand over the call to Abhay sir for his opening remarks. Over to you, sir. Thank you.
Abhay Raj Singh — Vice President and Company Secretary
Thank you so much, Pratiji for a brief introduction. Hello everyone. Good afternoon and welcome to the Q3 and 9 months FY 2026 earnings call of the company. Thank you very much for joining us today and for your continued trust and support. We truly appreciate your time and your interest in the company. I hope that you have had a chance to go through our financial results and investor present which are available on the stock exchanges and the company’s website. Q3FY26 has been a resilient quarter for the company reflecting the strength of our diversified business model and disciplined execution.
Despite global headwinds arising from geopolitical fluctuating conditions. The quarter’s performance highlights the consistency of our operations, enduring demand across key key product categories and our agility in navigating external challenges. The pharmaceutical segments continue to anchor growth and remain a key contributor to overall performance. We witnessed growing traction across our API portfolio, particularly in non ibuprofen molecules which continue to gain share and reinforce the success of our diversification strategies. Rising contributions from these products reflects broader market penetrations and increasing validation from regulated markets. This shift enhances revenue visibility, strengthens margin quality and reduces concentration risk. Growth was supported by healthy volumes, consistent customer engagement and expansion in quality focused geographies.
Our chemicals business also delivered a stable performance during a quarter supported by optimal capacity utilization levels and improved demand conditions, operational discipline, efficiency initiative and better throughout supported segment profitability and demonstrated the structural strength of this business. The steady performance of chemicals alongside pharmaceuticals validates the resilience of our portfolio and its ability to generate consistent results across business cycles. Overall, the quarter reflects good operating momentum, improving efficiencies and disciplined execution of our strategic priorities. We remain focused on expanding our footprint in regulated markets, increasing the share of high value and non ibuprofen APIs, strengthening customer relationship and enhancing R and D capabilities.
In addition, backward integration initiative and growing product pipeline position us to sustain growth momentum, improve competitiveness and deliver long term value for stakeholders. With this I would request CFO Mr. Pradeep Khanna to share the financial highlights for this quarter and nine months period of FY 2026.
Pardeep Khanna — Chief Financial Officer
Thank you Mr. Good afternoon everyone. During the third quarter of financial year 26 the company reported revenue from operations rupees 580cr as compared to rupees 523cr in the correspondence quarter last year reflecting a growth of 10.9 percentage. EBITDA for the quarter stood at rupees 62.6 cr versus 50.9 cr in quarter three of franchise year 25 registering a growth of 22.8 percentage while EBT before exceptional items increased to rupees 38.8 cr from 27.8 cr marking a strong year on year price of 39.3 percentage. The EBITDA margin improved to 10.7% compared to 9.7% in the same quarter of the last year and PBT margin increased to 6.6% from 5.3% reflecting better operating leverage, improved product mix and cost optimization.
Rupees 11.2 cr quartered as exceptional item during the quarter pertaining to provision rating to new labor laws. This is non reckoning in nature so for the nine month period ended December 25th revenue from operation stood at 1699.6 cr as against rupees 15.51.4 cr in the previous year representing a growth of 9.6 percentage. EBITDA was 196.1 cr compared with rupees 157.1 cr up by 24.8 percentage. While PBT before exceptional item of rupees 11.2 cr rose to rupees 124.8 cr from 93 cr reflecting a growth of 34.2 percentage. So EBITDA margin for the nine month improves to 11.4 percentage from 10% in the previous year and PVT margin increased to 7.3 percentage from 5.9 percentage, demonstrating sustained margin expansion across the periods.
And our financial position remains stable supported by healthy operating cash flow and prudent financial management which allows us to continue investing in growth initiatives while maintaining balance sheet strength. Reflecting confidence in the company’s performance and outlook, the board of directors had declared an interim dividend of 50% per XP share for financial year 2526. So thank you. With that, we now welcome any questions you may have. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment. When the question queue assembles, We take the first question from the line of J from Star Investments. Please proceed.
Unidentified Participant
Hello. Yeah, hi. EBITDA margin improved to 10.7% in Q3 and 11.4% for the nine month period. Could you give us a detailed breakdown of what drove this margin expansion? The primary increase in the increase in capacity utilization of various products. Okay. And what is the current. Hello? Yeah, am I audible?
Abhay Raj Singh
Yeah,
Abhay Raj Singh
yeah. What is the current pricing environment for ibuprofen APIs? And are you facing any mar margin pressure due to over supply or has pricing stabilized in recent quarters? No, our Ibu Ruben plant is running around 90 to 95% capacity utilization. And we are not facing any problem which you have mentioned that any surplus. But our capacity utilization is continuing about 90 to 95%.
Unidentified Participant
Okay. And one last question. If we look at the chemicals EBIT for nine months FY26, it has nearly doubled compared to the prior period.
Could you help us understand the key drivers behind this performance? And where exactly are you seeing traction whether in volumes or realizations? And how confident are you about the about sustaining this momentum going forward?
Abhay Raj Singh
Our capacity utilization for chemical division is almost 100% capacity. We are running for our ethyl acetate plant. And the increase in a bit is primary to the full utilization of capacity utilization.
Unidentified Participant
Okay, thank you. Thank you.
operator
Take the next question from the line of J.N.M. ghailani from Swan Investments. Please proceed.
Jainam Ghelani
Hi sir. Thank you for this opportunity. So in quarter two we had faced some one time cost of power of almost 7 to 8 quarters 7 to 8 crores because of the floods that were there in Punjab. So has the power cost reduced to the normalized levels for us or was it higher in quarter three? Also.
Pardeep Khanna
Rightly said the power cost in the second quarter has increased due to floods in Punjab. But non reduction of fuel prices in the third quarter it could not happen. The power and fuel costs remain same as in the second quarter.
Jainam Ghelani
Okay. And so what is the pricing scenario for ethyl acetate as well as paracetamol? If you could just mention whether they’ve been stable Q on Q or there has been some change.
Abhay Raj Singh
Almost stable prices are there for ethyl acetate and paracetamol. However the quantities are going increase for. IU actually capacities
Pardeep Khanna
like oparacetamol. We are increasing the capacity gradually and probably pricing is same.
Jainam Ghelani
Okay. And so in the previous call we have mentioned that we can expect almost 13 to 14% margins in H2. So now. So do we expect to maintain that or we feel that it could be lower.
Pardeep Khanna
In respect to beta margin. We are not able to achieve the target because of unexpected rise in the fuel cost. So now we hope we will do better in the coming quarter. And EBITDA margin will improve by better efficiencies and marketing. But we hope we will increase get the EBITDA margin increased by 1 to 2% in the coming quarter.
Jainam Ghelani
Okay. And so what is the capex plans for FY27?
Abhay Raj Singh
The capex for the 27th.
Pardeep Khanna
We are working on it. And we have to still have to finalize what is the be our capex.
Abhay Raj Singh
But general considering the last con call also the capex regularly we are doing is approximately 150 to 200cr. So I think for FY27 we will also be doing the same same level of the capex. For that we have a plan.
Jainam Ghelani
Thank you. That’s it for myself and all the rest.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question you may press star N1 on your Touchstone telephone. We take the next question from the line of Malik from BNK securities. Please proceed.
Maulik Varia
Hello. Hello. I hope I’m audible. Yeah. So just to understand our costs have increased by approximately 6%. Other expenses have increased by 6% quarter on quarter and 20% year on year. So for 2Q the power costs were high. But for 3Q can you quantify how much have these costs increased? You know, factoring in the fuel cost which you just mentioned. So can you help us understand.
Abhay Raj Singh
Basically Q2? Actually we very well explained during the hall. The cost increase was because of the fuel prices were gone up and there were some personal expenses one time personal expenses that time because that was the basic reason of the cost increasement. But this quarter, as we said in the earlier questions, we were expecting that the fuel cost will come down. So that cost could not be come down because of the prices of the husk contained at the same level or in fact very slightly inched up. So that was the basic at the main reason.
And other costs are relating to the marketing expenses and some general expenses. So that is the cost breakup which gone up. If you consider with the Q2 to Q3.
Maulik Varia
Okay, understood, understood. And so you mentioned that there will be a 1 percentage point increase in the EBITDA margin. So this was for 4Q or 1Q FY27Q4 will be.
Abhay Raj Singh
This will be for the, this will be for molecules Q4 we are talking about. See, we were expecting little higher, little higher EBITDA for the Q3 also I think we missed by 2 3c are not big amount. So that we are very sure that we will be making up in the Q4.
Maulik Varia
Okay. Okay, sir. And can you quantify how much was our revenue for IBU and non ibu?
Abhay Raj Singh
Yeah. So just a moment.
Pardeep Khanna
We have a total revenue in this year out of which pharma sector is 356and chemicals 224. Pharma is 61 percentage and chemically 39 percentage.
Maulik Varia
Right. Sorry.
Abhay Raj Singh
If we, if we, if we further divide this Ibu and non Ibu. So Ivo is 228 and whereas non Ibo is 128.
Maulik Varia
Understood. Okay. Okay.
Abhay Raj Singh
So.
Maulik Varia
And yeah, sorry.
Abhay Raj Singh
That is the breakup. Yeah, that is the breakup only.
Maulik Varia
Okay. And so how, how do we expect our 4Q and FY27 to look like? We had given a growth guidance of 10 to 15% revenue growth for FY27. So do we stick to that? And what is the outlook of our key products in the chemicals and mainly in pharma, be it paracetamol, metformin or IBU.
Pardeep Khanna
In the coming year we expect minimum 10 to 15% growth in the top line and 15 to 20% in the bottom line. So we are focusing on support of our pharma products and we are in touch with some big customers. So steps also has been taken to increase non IO product share and we have also potential for forward integration. And.
Pardeep Khanna
We are also backward integrated in IDU and pera. So we hope we will do better in the coming year with the 10 to 15% minimum growth.
Maulik Varia
Okay. And how much would be our consolidated capacity utilization for chemicals and pharma?
Pardeep Khanna
Pharma we are utilizing more than 90% capacity except paracetamol for which we are utilizing and for chemical generally mainly near 200%.
Maulik Varia
Sorry, chemicals is how much? Sorry,
Pardeep Khanna
near 200%.
Maulik Varia
Oh near near 200%. Okay. Okay. Okay. Sure. Thank you sir, I’ll go and back at you.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. Participants, in order to ask a question you may press star and one on your touchstone telephone. We take the next question from the line of Surabhi from NV Alpha. Please proceed.
Surabhi Sutaria
Thanks for the opportunity. So my first question is, you know you gave the split of hybrid and other non IBU in the non imbu portfolio. How much of it is coming from regulated markets Currently.
Abhay Raj Singh
Overall export. If we talk about the export contribution of non IBU so this is around 15 to 17% we are exporting and majorly we are exporting to the European and the regulated market. This is around 15% coming from regulated market.
Surabhi Sutaria
Okay, okay. And you know you mentioned that in pharma apart from paracetamol all other capacities are optimally utilized. So for next year the growth majorly will come from paracetamol or are there any other capex for other APIs also which are in pipeline.
Abhay Raj Singh
We discussed this in detail in the previous calls also. So the paracetamol is the one driver growth driver. The other driver is the conversion in the demography. I mean the non IBU domestic will be shifted to the regulated market. Third is the mat formin because the previous unit facility where we were making the paracetamol will be converted back to the metformin so that that is going to be vacant also will be utilized either for the MOD formula or maybe for other products also. So apart from that as we are reaching or nearing to 100% capacity utilizations, we are also working plan are also going on for increasing the capacity for few products.
So put together all these things will give you better visibility for the 27 FY20 growth drivers.
Surabhi Sutaria
And sir, just one small one clarification in the previous participants question also mentioned you all are doing forward integration. So doing forward integration into formulation. What is forward integration?
Abhay Raj Singh
So we are planning to have it but not the formulations, but it’s a CMO model.
Surabhi Sutaria
CMO in the API only or CMO in terms of ends. Thank you.
operator
Thank you. We take the next question from the land of Varun Mishra from Baba Investments. Please proceed.
Varun Mishra
Hi sir, thank you for the opportunity and a couple of questions from my end. So like so can you provide more detail on our capex allocation for like FY26 and FY27 like how much is directed towards the pharmaceutical segment and how much is for chemicals and what would be the incremental capacity like will this create? If you could like tell us something about that.
Abhay Raj Singh
So capex is total capex for FY26 is something around 150cr. So maybe we are into the last quarter so maybe little less to that that 150cr we budgeted. But I think we are in the last quarter so we may go for the less, little bit less to the 150 cr. So maybe 130, 135. Out of this the 60% is against the growth.
Varun Mishra
Okay and the last 40%.
Pardeep Khanna
That’S 40% for infra developments and automation.
Varun Mishra
All right sir and like what is the update on the land parcel that the company has received like recently. Sorry, could you like like tell us how is the acquisition going with the progress and the intent use of this site? How like aligns with the long term growth plans for us.
Pardeep Khanna
So I think like as we common discussed in the last call also already EC has been granted from the Ministry of Environment and Finance Forest. So now the next step like we are in the process to get the approvals from national highway authorities as well as other process of we see like getting NOCs and then consents to operate. So that process is undergoing right now.
Varun Mishra
All right sir and so like one final question like this was regarding the CEP for minoxidil. Could you share like how do we plan to leverage the certification for like expansion in European markets? Like specifically what opportunities do we see in terms of customer acceptance? Any volume growth or revenue contribution that it might have and how does that strength like like strengthen your broaden non ibuprofen like portfolio strategy? If this last question.
Abhay Raj Singh
We just received recently got CP and earlier we announced that the by the end of the December we will be commercializing this minoxidil plant which has been I mean a part of our other existing unit unit number nine. So as of now minoxidil As a intermediate we are already supplying as a merchant sale to the market and as a strategy. With the initial strategy we are going for final products API minoxidil in international market, regulated market. So we are trying for that. I hope by the first quarter of next financial year we will be, we will be starting that.
So this will enhance our obviously non API, non IBU API portfolio further. So this is having the scope of selling the intermediate minoxidil intermediate as well as the minoxidil final API.
Varun Mishra
Okay, sir. All right, that’s all from my answer. Thank you sir and all the best.
Abhay Raj Singh
Thank you.
operator
Thank you. A reminder to the participants, in order to ask a question, you may press star and one on your touchdown telephone. We take the next question from the line of ruddy Vora from SAS Capital. Please proceed.
Unidentified Participant
Yeah, hello, Am I audible?
Abhay Raj Singh
Yeah, very well.
Unidentified Participant
Yeah. So my question is pharma share of overall revenue has risen from 57% in Q3FY25 to 61% in Q3FY26, highlighting its growing contribution. So looking ahead, what do you see as the ideal revenue mix between the ibuprofen APIs and non ibuprofen APIs and the chemical segment?
Pardeep Khanna
So the revenue mix of IBU and other APIs is IBU 64 percentage and other APA is 36 percentage. In the correspondence quarter of December 24th the IBU revenue is 66% and other API 34%. So IBU revenue is decreased by 2 percentage and other API revenue is increased by 2 percentage.
Pardeep Khanna
Okay, okay. And how should we think about the balance between these business in terms of sustaining growth and marginal quality over the medium term?
Abhay Raj Singh
So I think you are talking about the next few years. So next few years the ideal for us will be the 60 will be coming from API business and 40 will be coming from the chemical business. Or this is in near term. However, the ideal we are thinking is 25 and 75. So 25 from the chemical and 75 from the API. And between these API, the near term objective of us is to divide it into the 5050 later on 50% from ibuprofen and 51, 50% from non IBU. But we are trying to further improve this.
25 from the ibuprofen and 75% from non ibuprofen API. This is, I am talking about four to five years.
Unidentified Participant
Okay, okay.
Abhay Raj Singh
And like now talking about achievable in next two years.
Unidentified Participant
Okay, okay, noted. And which geographies are currently showing the strongest demand momentum from the pharma portfolio, particularly the non ibuprofen APIs. Yep. Yeah.
Abhay Raj Singh
Could you share since beginning our concentration is more in the euro.
Unidentified Participant
Okay. And so could you also share where you are plan, planning to expand going ahead and how these markets are expected to contribute to the growth and margin sustainability.
Abhay Raj Singh
The overall European Union completing complete Europe as well as the MENA countries.
Unidentified Participant
What is the peak revenue potential you foresee from the both ibuprofen and non ibuprofen segments over the next few years?
Abhay Raj Singh
So we have already discussed on this for the 26 and the 27th. So we think that during by the 27th we might have something. We already given that we will be reaching to 2700 cr from overall the business including the chemical and the ibuprofen, sorry API. So out of this we think that around 1800 comes from the API business and 900 will come from the chemical business. So we are targeting to further have the 5050 ratio for the 27 from Ibuprofen and non ibuprofen. This is what we are discussing and we are very hopeful that we cross it or to reach very near to this.
Unidentified Participant
And how do we expect the margins to evolve with the changing product mix and market.
Abhay Raj Singh
Margin? I think CFO already discussed about this for the next year around 10 to 15% upside from the current margin profile.
Unidentified Participant
Okay. Okay. If I will have four the questions will join the queue. Thank you.
Abhay Raj Singh
Thank you.
operator
Thank you. We take the next question from the line of Malik from BNK securities. Please proceed.
Maulik Varia
Yeah. Hi sir. Thank you once again. So just wanted to understand that for the previous quarter in 2Q our EBIT margins for chemical entity was around 1.8%. And I think that the reason for that higher EBIT margin was due to a low cost inventory line with the company. And going ahead you all were going to try to negotiate with the Chinese suppliers. And this quarter we see a 2.2% EBIT margin which is healthy growth. So what is the reason behind this QOQ growth? Is it better negotiated?
Abhay Raj Singh
Hello, to the little extent it is a high, it is a increase and there is gain to little extent gain of inventory valuation also. But primary reason of increase in the Avid margin is the capacity utilization is.
Maulik Varia
Sorry. Realization.
Abhay Raj Singh
Capacity utilization.
Unidentified Participant
Capacity utilization. Okay. Okay, sir. And similar question for our Pharma EBIT margins which have reduced sequentially from 10.5% to approximately 9.7%. So we have had a healthy utilization. But despite that the margins has come up come down. So any reason for that?
Abhay Raj Singh
Actually the prices of paracetamol and. And. Under utilization of Para capacity as of now which is running at around 60% it went for this decreasing numbers.
Maulik Varia
Okay, okay. So prices and under utilization of Paris.
Pardeep Khanna
Also Also we are focusing mainly on volume on so due to this the margins are on the trend.
Maulik Varia
Okay, okay, okay. So we would have offered slight more lower pricing for the same products to increase the volumes. Is that the correct understanding.
Pardeep Khanna
Utilizing of optimum capacity? We will in future we will focusing on the pricing also.
Maulik Varia
Okay, okay. And just one clarification. You mentioned that the focus is on EU market going ahead. So this was mainly for API business or on a console level for chemical plus API segment.
Abhay Raj Singh
Not for going ahead. Since beginning our focus has been in the Europe and the Mina countries. So we will continue to focus those territories. Apart from these territories, we will also look for what other part of the world we can serve and this focuses for both.
Maulik Varia
Okay, okay, okay. Thank you. Thank you.
operator
Thank you. Before we proceed with the next question, a reminder to the participants in order to ask a question you may press star and run on your touchstone telephone. We take the next question from the line of Sheikh Mohammed Ayaz, an individual investor. Please proceed.
Unidentified Participant
Thank you for the opportunity. I would like to ask that there is one exceptional loss of around 11 crores. So what is that exactly where it comes from?
Abhay Raj Singh
So the central government had regulated all labor laws and unified into the basically all 29 laws has been converted into the unified into the four laws. So so out of these laws the base structure definitions has been redefined. So because it has been redefined so the difference of the past services of all the employees is works out to be 11.21 cr. This is against the gratuity calculations as well as the on leap calculations if n. So this is relating to the past employment of the existing employees. So this is as of now one time this will later on all the salary structure will be restructured in a such a manner so that this is as per the new labor laws.
Unidentified Participant
And regarding the fuel cost, I would like to know that which what fuel cost has increased means what we are using for as a fuel we are using petrol, diesel, CNG or call what what we are using that because. Because I don’t see rise in pedal diesel or cng. I would like to know in detail what are the cost increasing means we are utilizing more fuel. Is that the reason or the price?
Pardeep Khanna
No sir, actually this is price. So your first question was what we are using as a fuel. So the right answer is we have coal and we are using biodegradable material from the farming Lands which is rice husk as a input material into our boilers. Right. So if you see the cost of like this is a biodegradable degradable material and it contributes mainly to the sustainability of an organization with respect to carbon footprints. So most of the companies they are opting for this fuel and that is why this cost fluctuation is very high either on upper side or on the lower side.
So like in Q2 what we said with respect to fuel is there was heavy rains and this husk remains in the open areas. So we were not in a position to use even our stocks which were there in our hands due to heavy rains. So that was the reason in last year, last quarter, this quarter, the prices of the husk has been increased. Current prior current consumption of rice husk is somewhere around maybe 450 to 500 metric ton per day.
Unidentified Participant
Okay. So in future also that will remain high rise husk prices.
Pardeep Khanna
It depends sir. Like when there is off season it is always in the increasing trend.
Unidentified Participant
There is no other option for rice husk for us.
Pardeep Khanna
No sir, there are other options also. But again they are either they are contributing to your carbon footprints or cost. Both are the parameters. Like there is a new biodegradable material which is coming from the Pedestra and the companies they are using Pedestra to make the brickets and those briquets are also used in the boilers as a fuel. But again the cost of production of those briquettes is more than the cost of slicers.
Unidentified Participant
Okay, okay, okay. My next question is expected revenue and profit after tax in Q4 and do we able to reach 600 crore mark for the revenue?
Unidentified Participant
Yes, yes, sure. We expect 600 cr revenue in the fourth quarter and margin will also be increased. What is the pat? Can you tell me the expected profit after tax?
Abhay Raj Singh
I think that will not be very appropriate for us to talk about the PAT number for the next quarter at this moment because we are also abide by the law. But. No, no. I discreetly remember last quarter you asked whether we will be achieving the 600 mark. When we will be achieving. So I think that we can discuss. So most likely we will be achieving this under mark this quarter.
Unidentified Participant
Okay. EBITDA margins.
Abhay Raj Singh
So approximately 11% little better than a little better than.
Unidentified Participant
Any updates.
Abhay Raj Singh
It’s a very difficult for us to talk about the specific number, exact number because you also understand will appreciate how fluctuating overall situations worldwide is. Prices are very drastically moving up and down. So this is really very very difficult for us to answer these sort of the question we what we can answer very very well is the quantity. So how we are doing what we are doing to level the quantity and capacity utilizations of the company. So if you would like to ask the questions relating to that, we will be comfortable and answering those questions because we know what efforts we are doing.
So price is something we do not control and the EBITDA and turnover comes from the price as well. Though quantity is also very important. But suppose if we are doing more quantity and the price is going down, my turnover will not be the level what we are discussing right now. So this is all forward looking statement considering the current date scenario. So we expect that we will be able to achieve that. But prices are going up and down on a regularly basis. So we do not control production efficiency. We are maintaining, we are leading the positions in the IBU and our assets are being utilized as a very comfortable, comfortable capacities.
Unidentified Participant
I can understand sir, but we have some 13 to 15 persons. No, so. So I just need to ask.
Abhay Raj Singh
That is perfectly alright, but initially we said that we will try to reach to around 14 to 15% or after that we said we will be reaching to around 13% but I think. But now we are just understanding that we will be reaching something 11 to 12% and we are very hopeful, we are very hopeful that this EBITDA level will be increasing and getting better in the next financial year. 27 top line guidelines we are still maintaining.
Unidentified Participant
No, sir, what. Why I am asking is we are already getting so many approvals. We are, we are. We have increased our exports. So it is expected.
Abhay Raj Singh
Your question is very well valid and very much welcome. But what I am trying to say is that basis all these efforts, we are maintaining our volume and we are increasing our capacity utilizations of our assets. What we feel difficult is just to talk on the exact numbers.
Unidentified Participant
Okay? Okay. Sir, can you proceed with the next question?
Abhay Raj Singh
Yes, please Sir.
Unidentified Participant
Any update from the R and D team patents? We are having. Any update from that side?
Abhay Raj Singh
A patent? We are having three patents. All those patents are the process patents. We have not gone for the product so far.
Pardeep Khanna
I think, I think we have currently three patents. So unfortunately all those three products are not being working on commercial basis as of now. Like Cetagliptin was one, bildagliptin was other and Losartan was the third one. So in Bildagliptin and Losartan it was nitrosoamine impurities whereas in Cetagliptin it was the enzyme usage. So unfortunately all these three products due to commercial equations they are not Being running in the commercial plants.
Unidentified Participant
Okay, so means we have stopped working regarding these patterns for the future.
Pardeep Khanna
No, it is not a question that we have stopped working. As and when any new product will come into the picture, we will see our capabilities. How we can explore into the patent section also. But what we are saying today is whatever the three patents we have. So unfortunately those three products are not running under the commercial production.
Unidentified Participant
Okay, we’ll see you in the next one. Thank you sir. Thank you very much.
Pardeep Khanna
Thank you sir. Thank you very much.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. In order to ask a question, you may press star and one on your touchstone telephone. Take the next question from the line of Heman from Noratia. Please proceed.
Unidentified Participant
Yes, hello sir. So for the new land, have the board decided with what plans and what products are we coming up with and whether it would be from the API division or the chemical division.
Pardeep Khanna
So like in R and D we are working on both segments parallelly, be it chemical side or be it API sides. So we are working parallel. There are different teams working R and D on different products. So I think as and when we’ll get through those products we will announce appropriately.
Unidentified Participant
Okay, so it is not going to be from the current product portfolio. So whatever the product is going to. Be from.
Abhay Raj Singh
The model is same. So we will there be doing the API in the chemical. But the product finalization is under implementation, under development. So that is the reason we are not able to tell you about what product we are going. But for sure it will be the API and the chemical.
Unidentified Participant
Okay, sir. And sir, how much is the inventory markdown in the current quarter? The value of inventory markdown.
Pardeep Khanna
Total inventory is around 350 Cr.
Unidentified Participant
Okay. Okay. So it is mainly because from the chemical inventory value which has gone down or the API like products value which.
Pardeep Khanna
Has gone down, API inventory has been gone down.
Unidentified Participant
Okay, okay, okay. So and one of our competitor has also initiated, you know, some consultation for their, you know, sale of their ibuprofen plant like Solara. So would I be interested considering being in the southern part of India and our customers being located there? If the, if the opportunity does exist in the market.
Abhay Raj Singh
Not immediately now, but if anything come up which is meeting within our parameter of the selection, then we can build considering. But as of now we have the another land where we are just going to set up another plant. So our priority is that.
Unidentified Participant
Okay, so but I just wanted to understand. So how is the exactly the IP proofing scenario shaping up? Because listening to other Concords and everything. It looks as though the market is pretty very competitive and the new players are giving a very having a very high technological advantage over others. So could you just guide us like what, what is exactly is happening?
Abhay Raj Singh
As I have already explained that our company IPO capacity is running at almost more than 90%. So we are not facing any such situation which you have heard from other peers or other things. Otherwise the capacities are also closing down. In last year one capacity was closed in USA also. So in the market there may become some player or some player may or out. But it has a 3 to 4% global growth rate every year. So there is potential for increase in. Also.
Unidentified Participant
Okay. Okay sir, that’s it for today. Thank you sir.
operator
Thank you. We take the next question from the line of ruddy Vora from SAS Capital. Please proceed.
Unidentified Participant
Yeah, so my question is that given the significant headwinds faced in the ibuprofen segment this quarter, could you elaborate also could you elaborate on other molecules in your portfolio demonstrating the strong tractation.
Pardeep Khanna
The other molecular metformin? Yes.
Unidentified Participant
Okay. And a further question that like could you elaborate on the product pipeline that your RND team is working on? Which therapeutic categories are being prioritized and what timeline should we expect for commercialization?
Pardeep Khanna
So I think, I think as we discussed in our last question also we are working on the same combination mix of products. They will be the molecules of generic nature only. And as far as the means, name of the product and timelines are concerned, team is working. And let us say if the molecule is already existing in the market, if we have to come up in the market, we have to create some edge. So definitely as and when we get some idea or we’ll get through that idea, definitely we will let you know.
Unidentified Participant
Okay. Okay. Thank you so much.
Abhay Raj Singh
Thank you.
operator
Thank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Abhay Raj Singh
Good afternoon again. Thank you very much for joining us. We remain confident in the direction of our business and the opportunities ahead. The progress we are seeing across segments supported by strong customer relationships, disciplined executions and improving operating efficiencies give us confidence in our ability to sustain performance momentum. Our continued emphasis on portfolio depth, process improvement and prudent financial management will remain central to how we position the company through evolving market conditions. We would like to thank our stakeholders for their continued trust and support. Their confidence motivates us to keep strengthening our capability and delivering consistent outcomes with a clear strategic roadmap and resilient operating framework.
We believe our company is well positioned to build on its current momentum and. Create. In the period ahead. For any further queries, please feel free to contact our IR team. Thank you and have a good day.
operator
Thank you. On behalf of IOL Chemicals and Pharmaceuticals Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.