NOCIL Limited (NSE: NOCIL) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
V.S. Anand — Managing Director
P. Srinivasan — President, Finance and Chief Financial Officer
Analysts:
Unidentified Participant
Nirav Jimudia — Analyst
Aditya Khetan — Analyst
Renjith Sivaram Radhakrishnan — Analyst
Nitesh Dhoot — Analyst
Harshil Parekh — Analyst
Radha Agarwalla — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to Nosil Limited Q1FY26 earnings conference call. This conference call may contain forward looking statements about the companies which are based on the beliefs, opinions and expectations of the company as on the date of this call. The statements are not guarantee of future performance and involves risks and uncertainties that are difficult to predict. As a reminder, all participants line will be in listen only mode. There will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. VS Anand, Managing Director from Nosin Limited. Thank you. And over to you sir.
V.S. Anand — Managing Director
Thank you. Thank you Pari. Thank you and good afternoon everyone. I’d like to start by expressing my appreciation for your presence today. Joining me are Mr. P. Srinivasan, our Chief Financial Officer and our Investor Relations advisors from sga. I hope you’ve all received our investor presentation. If not please. It’s available on both the stock exchange and our company’s website. During the quarter, revenue from operations stood at 336 crores. Registering a flattish performance on a sequential basis, volume and exports continued to show moderate growth. However, in the domestic market we continue to experience dumping pressure. In such challenging market conditions we continue with our approach of having a judicious mix of price and volume play on the domestic front.
To counter this dumping pressure, we have filed anti dumping petitions on some of our key products with the Government of India. We are happy to inform that the government having found merits has initiated detailed investigations the outcome of which is expected. In the coming months. On a positive note, our export business continues to demonstrate growth momentum. Growth in this segment continues to be supported by incremental approvals from different locations from our long standing international customers. Now a few lines on the industry and the market environment. For the ongoing year, the Indian tire industry is expected to grow in the mid single digits on the back of healthy replacement demand. Increasing spend on infrastructure is expected to support the demand for commercial vehicle tires. On the non tire sector front, the domestic auto component industry, one of the drivers for the demand of rubber chemicals in this sector is expected to continue to grow albeit at a lower level compared to the previous year.
But it also goes without saying that the developing U.S. tariff scenario could have a bearing on these sectors. In the international tire sector, most markets indicate a slight positive uptick in replacement demand. On the other hand, the latex sector in Southeast Asia has been going through some temporary uncertainty, especially on account of the US Tariffs in the last few months. While we continue to operate in an uncertain and fluid market environment with short term challenges at Nosul, we continue to keep our focus on the essentials critical for long term business growth. Our focus will be on intensifying, expanding our presence with our key domestic and international customers, sweating our assets, driving operational excellence that is delivering best in class efficiencies, accelerating the commercialization of new products and leveraging digitalization and sustainability initiatives that are already underway to give us a competitive advantage in the marketplace.
While the first quarter may have started off a tad slower off the blocks, we remain confident of staying on our volume growth path. That’s it. From my side, I now invite Mr. P. Srinivasan to provide an overview of our financial performance.
P. Srinivasan — President, Finance and Chief Financial Officer
Thank you Mr. Anand and good afternoon to everyone. Let’s run through the key highlights of the consolidated financial statements for the quarter ended June 25th. On the sales volume front, the volumes for Q1 FY26 is at 133 taking a base of Q1 FY20 as 100, virtually similar number as compared to the previous quarter revenue terms. The net revenue from operation for Q1FY26 stood at 336 crores as against 340 crores in Q4FY25. As I said, volumes for Q1 26 were stable on a quarter to quarter basis coming to the EBITDA parameters. On the operating EBITDA parameters for Q1FY26 stood at 31 crores as against 34 crores in Q4FY25 with EBITDA margins for the quarter recording at 9.1%. Coming to profit before tax the profit before tax stood at 23 crores for Q1FY26 as compared to 26 crores for Q4FY25. On the profit after tax element, PAT for Q1FY26 to 2017 grows as compared to 21 crores in Q4FY25.
With this we would like to open the floor for question analysis.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask 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 Two participants are requested to use handsets 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 Niravana Jumadia and from the company of Anvil wealth, please go ahead.
Nirav Jimudia
Yes, sir. Good afternoon and thanks for the opportunity. Sir, I have a few questions to ask. So the first is when we see our volumes from last two years based on the index session what we have given in the presentation, it has largely remained flat. You alluded to some of the facts in your opening remarks but just wanted to understand like even during this period our EBITDA per kg has also corrected similar to the fall in the gross margins which is a value addition. So the question here is that let’s say if we consider X of China and X of India market, has the remaining market expanded in last two years in terms of the volumes in an absolute basis and if yes, by how much along with it.
If you can also share your views with respect to the engagement with the customers which we have alluded in the annual report. So based on your customer engagements and fructifying with some of the customers, when can we see or let’s say from which of the quarters we would start seeing this discussions into the incremental volumes for nosil and also if you can share like based on these interactions and discussions with the customers, which geography you feel that this could help us to gain those incremental volumes?
V.S. Anand
Yeah. Thank you. Thanks. I’ll take the second one first and then I’d probably request you to go back to the first one because it was not completely clear to me. So the first one I think. Yeah. So customer engagements clearly we see that there is traction and what is also happening on the volume alluding to the earlier part of your. The first question was I think one way or the other with all the geopolitical situation also we see in some product lines there’s a bit of an offsetting. So in some quarters we had a bit of a latex impact.
So our export position business didn’t really gain traction while the non latex part of the business continued to grow in quite a planned and structured manner, which is what we continue to see on that front. Engagement with customers. And like we have mentioned in the past, it’s clearly strategic and long term. So we see the gradual expansion with each of these customers primarily beginning first with Asia and then Europe and then parts of north and South America. That’s the way it’s actually playing out because of also geographical proximity it works out from that point of view and it is moving along quite well.
I must say that in spite of challenges that we had in between, both in terms of demand and in terms of approval, because the speed of approval is completely not the same always. So that. But I must say it is moving along quite well. So that was the second part. If I was able to answer that on the first part. Can you just come again just to be sure I understood.
Nirav Jimudia
So my question was, let’s say if we consider the two broad categories of accelerators and antioxidants, X of China and X of India. Let’s say if we exclude both these markets, whether the rest of the market has expanded in terms of the absolute volumes in last two years and if yes, by how much s ome understanding over here .
P. Srinivasan
Nirav, basically this can be derived from Srinivasi. I’m sorry, if you look at China per se from the IRSC data in the last two years, one gets a feeling that.
V.S. Anand
Just looking at the, at.
P. Srinivasan
The data just a second has grown up by almost 1.9% in the last year and India is growing up by 3.1%. This is the IRSD data. But if you go to the Europe, Europe and USA or Japan for that matter, Europe has in last 23 degrew by 7% and in 24 it has grown marginally by 5%. Go to USA, coming to USA we. See. It’s degrowen by 5% this year 24 as against 2.7% marginal growth in 23. So on the whole what we are seeing in the rubber chemicals space, we are seeing a growth of hardly 2% given China and India growing and other markets be growing. If you see from our performance in the last two years your export performance has clocked double digit growth, that means there is some traction. The discussions and those discussions are yielding some traction very evidently visible. I hope I am able to answer some of your question.
Nirav Jimudia
Yeah, so just to add a bit here, so if I understand it correctly, on a base of let’s say 10 lakh tons of market globally, you mean to say that possibly X of China and India, if we exclude both these markets, which is like close to around 450 or let’s say five.
P. Srinivasan
Much more. Much more.
Nirav Jimudia
Yeah. So rest of the market has Grown by just 2%.
P. Srinivasan
Yeah.
Nirav Jimudia
Close to around 8 to 10,000 tons of volumes would have been added to this base of rest of the geographies where possibly we, we would have grown double digit. Is this the right assumption?
P. Srinivasan
To me, yeah. Yes, you can see that
Nirav Jimudia
Correct. And sir, when can we see. So like just to add here one more thing is based on the interactions and various stages of discussions with the customers when or let’s say from which of the quarters we could see actually these volumes flowing to us.
V.S. Anand
So it is so again it is flowing even currently there are products and projects at different stages of approval right from sampling to commercial volumes to from the initial to the final stages. And it’s not only limited to just one or two products but but a wider basket of products that is. That is also happening as a change. So all at multiple stages I would say there aspect.
Nirav Jimudia
So just to reframe my question further like what we have been saying is that in the presentation I’m talking about the average expansion is being seeing strong demand visibility. So possibly if you can elaborate with here and what I could make out from is that possibly that product we are quite stronger in the market and based off based on that possibly once that production starts the capacities could be filled up much faster and that could help us to get some volume growth next year. Is the right assumption to make. Your thoughts here based on the presentation statements, what you have made.
V.S. Anand
Clearly that’s a product which is used across the rubber sector both in the tire as well as in the non tire space. And we see that given that we are already quite full on utilization on that product. We’re already debottle necked over the past years. It was critical that we looked at expanding the volumes. And very clearly I think there is clear positivity and optimism that we will be looking to start ramping it up. So it will go through the same approval process. We will have to be patient through that process. Customers will have to approve the product because it is a new site again. But then we have a quite positive of pushing up the volumes.
Nirav Jimudia
The last from my side is one of the statement in the presentation also mentioned that we’ve been working on eight strategic levers of growth.
V.S. Anand
Yes.
Nirav Jimudia
If you can elaborate what it means to no salon. How can we see or when can we see the benefits of this strategic levers into the P and L and volumes part. Thank you so much.
V.S. Anand
Thank you. Thanks Nirav. We have elaborated a bit on those strategic levers in our annual report. You will see a bit more on that. So it’s actually a combination of talking about what’s extremely critical for the business both in terms of in multiple areas of the market which is geographical expansion, investments ahead of the demand growth. It talks about innovation in terms of looking at new products beyond process efficiency improvements and products that we have created in the past. It speaks about operational excellence in terms of efficiency measures, digitalization and sustainability, which cuts across and if anyone, last but not the least, the people element, which is quite important. We’ve already a lot of measures under each of those strategic levers. We keep tracking them, we keep a watch on the progress with regard to that. Quite a few of it we already. See bearing fruit as we go along. So even the expansion that we announced was also in line with that, as well as quite a bit of our R and D efforts which is also in the direction of looking at new products. So quite a few of the actions are already underway and slowly as time goes by, we see that accelerating in terms of showing up in the results.
Nirav Jimudia
I have a few more questions to ask, but I’ll join back in the thank you so much and wish you all the best.
V.S. Anand
Thank you. Thanks.
operator
Thank you. Before we take the next question, I would like to remind participants you may press Star and one to ask questions Question the next question is from the line of Aditya Ketan from SMIFS Institutional Equities. Please go ahead.
Aditya Khetan
Yeah, thank you sir for the opportunity. So just a couple of questions sir, in this quarter sir, when we look although the growth has been maintained, we see that EBITDA spreads have declined earlier sir, what I think the management has clearly alluded the fact that in the coming quarters so the conversion cost would be lower. The this may have alluded I think so two to three quarters back but still like it is not visible in the numbers that the conversion cost is coming down. Any idea so you can provide why these numbers are still higher.
P. Srinivasan
So basically when you are looking at the conversion because you have to look at the activity for the quarter VISA was the previous quarter and per se the activity for the quarter was on the higher side and therefore that conversion cost reflects that and it is not proportional to the activities is much less lower than that. If I may say, the activity has increased by about 15 to 20% thereabouts in the production of intermediates and finished goods as compared to the sequential in you look at the sequential quarter, the conversion cost is reflecting that. And secondly and also in the overall CSR commitment for the annual commitment as per the statutory compliance, we have front loaded about 60% of the CSR expenses in the first quarter. So these are the two major reasons one can attribute.
Aditya Khetan
Got it sir that you mentioned to the fact that activity has been higher. So actually the sales volume on YUI basis so that looks to be lower but you are stating the fact that the production volumes is higher.
P. Srinivasan
Yeah, production volume is higher. What you will not see is the stock change effect is not ideally speaking they should have been reflected a higher stock exchange credit. But because the prices of the raw materials are coming down you are seeing a lower component.
Aditya Khetan
Got it sir. Onto the raw materials like for the last so three to four months annealing prices have corrected by roughly 25 to 30%. So I just wanted to know have you factored in the complete effect and in the coming quarters can we see some component of inventory loss also?
V.S. Anand
No, I think most of those things h ave happened in the Q1. Some portion, maybe some small portion is printing in Q2 in the form of finished goods. Otherwise all procured at the latest competitive rates. Consumed at latest competitive rates.
Aditya Khetan
Okay. Okay sir. So coming to the third question sir, in the presentation like you have mentioned the fact that Northville has a favorable positioning. So just wanted to know are we talking of some technological positioning or better product positioning or the client positioning like which is helping us because on the numbers it is not visible as of now. So I wanted to know alluding these two.
V.S. Anand
Yes, yes Aditya, I think you’re right. Not completely reflected in the numbers. Absolutely right. I would say the favorable position is contributed by multiple factors. It’s not only the fact that we have certain economies of scale in terms of the ability to supply key products, sizable volumes. We are kind of also backward integrated in the key products in terms of accelerators as well as antioxidants unlike many other players and also coming to the fact about being the China plus one element in terms of being a non Chinese player. These are some of the factors. So technology plays in in terms of the backward integration as well as then the capacities as well as the position of non Chinese player in certain products i n certain products we’re the only non Chinese player. So I think these things kind of put us into a favorable position.
Aditya Khetan
Got it. So just one last question as you mentioned in your presentation that so there has been positive activity towards the anti dumping duty. If suppose the anti dumping duty is imposed, how much incremental EBITDA should be factoring?
P. Srinivasan
I think it’s too premature to comment on it because it is under investigation process and the government will study and make their own calculations and then come out. So I think it’s too premature to even quantify any improper effect on that.
Aditya Khetan
Just to add on to this anti dumping duty is on the similar products like which has been imposed in 2014.
P. Srinivasan
No it’s not on all the six products, it’s on three of the old products and one I would say it is. If you see the notification, it’s on the main antioxidants pentalestadine and TDQ and a set of cell phenomenons.
Aditya Khetan
Got it. Thank you, sir.
V.S. Anand
Thank you.
P. Srinivasan
Thank you.
operator
Thank you. The next question is from the line of Ranjit Shiva Ram from Mahendra Manualize Mutual. Please go ahead.
V.S. Anand
At least we’re not able to hear y ou.
operator
Loudly or come to your device closely.
Renjith Sivaram Radhakrishnan
Is it audible now?
Aditya Khetan
It’s slightly better, but there seems to. Be some kind of an echo. Yeah, please go ahead. We. We. We trying here.
Renjith Sivaram Radhakrishnan
Yeah. Basically just wanted to check with you the volume growth. When do you see this turnaround? Overall volume growth.
V.S. Anand
Yeah. So I. If I understood you, Ranjit, right. I think your question was the volume turnaround. Right?
Renjith Sivaram Radhakrishnan
Yeah. Yeah.
V.S. Anand
Okay. Okay. Yeah. So like I. I mentioned in my opening statement, while we aspire to keep the volume growth in double digits, last year. The last financial year we had. About 4% volume growth. There is still volume positive on a sequential basis. But like I said in my statement. There is a bit of a disturbance in the background. But let me keep it short. So we are positive that there will. Be volume growth in this year too. Ranjit, were you able to hear me?
Renjith Sivaram Radhakrishnan
So will it be a double digit. Volume growth or you feel that still. It is time to get into that kind of growth rate? Hello.
V.S. Anand
Yeah. Yes. So yes, given the end, the plan is clearly to look at double digit volume growth. But it’d be difficult to put my finger on to say how much. Where will it be precisely in this particular calendar year?
Renjith Sivaram Radhakrishnan
Okay. And amongst your two major product, which is the one which you are seeing more challenge in terms of growth.
V.S. Anand
Amongst the two products? Is it. Sorry.
Renjith Sivaram Radhakrishnan
Y eah. One is that anti accelerators and the antioxidants. So in that which one is the challenging one in terms of growth, be aware in which of these you are seeing more challenges.
V.S. Anand
So both are. So we not only have antioxidants and. Accelerators, we also have prevalkanization inhibitor which is another additive. A few other products. That is not a challenge to grow. I would say it is also dependent on the consumption. So each of these products go in different consumption. So the growth will be in proportion to that.
Renjith Sivaram Radhakrishnan
Okay. And there was some expectation regarding Japanese place opening up to our product moving out of China. So what is the situation there? Have they done with our trial of our products and where do they stand? Are they standing in a place of giving us orders or are they still doing their trials?
V.S. Anand
Yeah. So it is. So these are multiple products, multiple sites. I kind of referred to this in to one of the earlier questions. So they are at different stages. It’s part of the supply chain de risking that typical large customers do. And so we are at different stages and there are already volumes which are commercialized. We are also selling in and they a re also at different stages at this point in time.
Renjith Sivaram Radhakrishnan
Okay, so we have started supplying to these Japanese tire companies. Is that right? Understanding?
V.S. Anand
Yes.
Renjith Sivaram Radhakrishnan
Yes. Okay. And another thing. Of this 250 crore capex, how much is currently completed and how much is pending? And what kind of acceptance do you expect from this capex?
P. Srinivasan
So as of March 25, Rajiv, I think we may have spent about 30% of the overall budget. Of course there are commitments. The expenditure is a large part of the expenditure is expected during this financial year. FY25 26. In so far as the asset turnover ratio, it depends on the rolling prices at that particular point of time. Typically we look at an asset turnover ratio of 1.8 to 2.2 for our raw chemical business.
Renjith Sivaram Radhakrishnan
Okay, so that 30% of capacity addition there, have we started utilizing those capacities?
P. Srinivasan
No, no, no, nothing. 30% of the project is commission completed, not commissioned. It is this project as we. If there is a time which involves to complete the project, implement the project and mechanical completion to be ready. Trials have been conducted. What we are talking about about a 250 crore budget. 30% has been expended so far as of March 21 in the financial terms CWIP capital work in progress.
Renjith Sivaram Radhakrishnan
Okay, so when do we expect the first revenues to start from this additional facility? Will it be this year or next year?
P. Srinivasan
We expect the commission trial production to start during H1FY 26, 27. So post trials and approvals from the customer. Hopefully H2FY 27. Sometime in H2FY 27 you should see the revenue kick in.
Renjith Sivaram Radhakrishnan
Okay, so apart from this, what is our capacity utilization of the current facilities which we have?
P. Srinivasan
It’s about 65, 67%.
Renjith Sivaram Radhakrishnan
Okay, so we have that Runway to grow by taking the 65 to 80 to 90% till that new facility comes.
V.S. Anand
Yes. Again, this is the 65 is all multiple products. So the 65 is an average of all the products put together. So some of them. So most of them we already have the Runway to grow further. Yeah.
Renjith Sivaram Radhakrishnan
Okay. Okay, sir. Thank you.
operator
Thank you. The next question is from the line of Nitesh Dutt and from Anand Rathi Institutional Equity. Please go ahead.
Nitesh Dhoot
Good Afternoon team. So just a question on the anti dumping duties again. So you know, For TDQ and PX13 I believe, you know the investigation is underway as you said and the hearing is due in September. So can you just you know, help us with how much TDQ contributes in terms of volumes or revenue? I mean our current numbers and also PX13 separately if possible.
P. Srinivasan
I think. Nitish, good afternoon. Srinivas here. I think we have indicated the antioxidants business in the annual report in terms of, in the BRSR section. You can pick it up from there around about 60%.
Nitesh Dhoot
All right. Okay, so my next question is on, is on the mbt. So basically I’m coming from the fact that China Sunshine has been significantly, you know, expanding, you know, MBT capacity there, almost about 60 odd thousand tons. I think the second phase is about to come in in the second half. So do you see a direct threat to your domestic NBT sales or pricing there or you know, I mean what’s your take on that?
V.S. Anand
The market is already kind of operating under that environment and because there is an excess supply already off these accelerators so whatever comes in the next phase is just going to be further incremental. So we are already operating in that environment. So I don’t see any significant change more specific with that additional capacities coming in.
Nitesh Dhoot
Right. And in terms of our, you know, current production, I mean current cost structures etc, I mean compared with the solvent based mbt, you know, I mean how would NOSIL stack up there currently and you know, if any process upgrades or technology changes, you know, you would need to kind of move towards solvent mbts.
P. Srinivasan
Yes, we are competitive in comparison in terms of product to product. There are other benefits that come from Chinese suppliers especially like the export subsidy which they get when they export. But otherwise we are largely on competitive power within.
Nitesh Dhoot
Sure. Just one last bookkeeping question there. I mean on your. You mentioned that the export volumes have shown moderate growth in the quarter and if you just quantify how much growth we’ve seen in export volumes and what has been the domestic export mix for Q1.
P. Srinivasan
It’s about three to three and a half percent export volume growth this quarter got impacted. I think Anand in his opening remark made a mention about latex production suffering a degrowth on account of the US tariff in a temporary market because of which our export growth got moderated at three and a half percent.
Nitesh Dhoot
Sure. So I’m sorry, just hopping on that anti dumping point again. I mean if you could just, you know, maybe possible. How much of you know, our Revenues get covered if all the three duties come in, you know, if possible to kind of give out that number. I, I recollect that you had mentioned some somewhere closer to 40, 45%.
P. Srinivasan
You’re bang on 40, 41, 40%.
Nitesh Dhoot
So this is for all the three products put together, that is including the customer.
P. Srinivasan
Yeah, yeah. All the, all the products which are under an anti nipping investigation, we are about 40% of the business constitute 40% of the business.
Nitesh Dhoot
All right, perfect. Thank you. Thank you so much sir.
operator
Thank you. A reminder to participants, if you wish to ask question you may press Star and one on your touchstone phone. The next question is from the line of Harshal Parek from Equitas Capital. Please go ahead.
Harshil Parekh
Hi sir. Thanks for the opportunity. Sir, I just wanted to understand that how strategically are we positioned with our customers, especially in the domestic market since my understanding was that our customer relationship is quite sticky in nature since approvals and validations require some 6 to 18 months. However, with this aggressive dumping in last two years, it seems that the domestic tire manufacturers can easily switch to the Chinese and Korean suppliers depending on the cost. So just wanted to understand that how strategic we are for these tire manufacturers.
V.S. Anand
We are one of the long term strategic suppliers for our tire customers domestically. And that’s why in spite of the competition and the heavy weather that tends to happen, we still keep quite a dominant share with most of our tire customers. It comes from the historic products and the price product portfolio as well as the supplier reliability that has been built over the years. You’re right. So these Chinese and Korean players, they’re obviously only after that approval can they begin to supply. So sometimes it does tend to change a bit here and there in terms of share to a certain extent because of pricing. But by and large still local producers like us tend to have a good share with our Thai customers.
Harshil Parekh
Have we gained any market share in last two years or have we lost any market share due to this dumping?
V.S. Anand
So per se, even the overall while we do see value wise there has been increase in the turnover of certain businesses in India. I’d say volume wise it’s in terms of rubber consumption also it’s not been such a sharp growth, more or less our market share has been pretty much flat over the last two to three years.
Harshil Parekh
Okay sir, another question on the exports market since we have mentioned China plus one strategy as one of our growth drivers. But on the other end we also see these Chinese volumes getting absorbed by companies globally. So just wanted to understand how are the tire manufacturers on de Risking their supply chains and all.
V.S. Anand
Again. It’s a perspective that is taken. By certain tire companies. Some tire companies still go by what is critical at that point in time. So we do see that it’s just, it’s beyond lip service. Quite a few of them are pretty much acting on it and they’re very consequential about it.
operator
Thank you. The next question is from the line of Radha from BK securities. Please go ahead.
Radha Agarwalla
Hello sir. Thank you for the opportunity. So my first question Is with the 50% tariffs from India so Europe can become more competitive in terms of catering to US market. So how do you see export volume growth particularly in US in light of this scenario and also any other changes in terms of export market that you are putting.
V.S. Anand
Yeah, so we kind of distributed across the globe. Right. A larger share is in Asia followed by Europe and then the Americas. So there will be a marginal impact like we said yesterday at the call. Also Chairman had mentioned about the US is about 4 to 5% roughly around that range of our business. And we expect that we’ll have to wait and watch in this situation because some of our customers, we do have long term commitments. So there are some products which they buy from us only. So I don’t see. I think it’s better to just wait and watch how the situation develops. But at the same time we do have other avenues that we are working on both in Europe as well as in Asia.
Radha Agarwalla
What other avenues? Sir? Sorry, what other avenues are you talking about?
V.S. Anand
Sir, I spoke about the other m ore customers in Europe as well as in Asia. Yeah, Latin America too.
Radha Agarwalla
Okay, sir, so with India trying to now have strong relationships with Russia and China, if there is a scenario that the anti dumping duty is not implemented then how do you see in that scenario your volumes to grow for the next two years?
V.S. Anand
Yeah. So anti dumping duty is only one of the measures. There are. There are many other measures that are also underway. And like we have said we’ve been working quite heavily on the operational efficiency front which is a continual improvement process that we’re working on. We’re also looking at newer products and I think it’s about also extracting the full benefits of our operating leverages with our utilization levels. So we do have other measures which are in place and which are parallelly running irrespective of the outcome of the anti dumping.
Radha Agarwalla
Listen, just continuing with your answer, you mentioned about looking at operating levels. So from the current prices, if we, I believe that if we undercut in terms of pricing in order to fill the capacity post which you will see significant improvement in and the operating leverage benefit. So at this point does that seem to be the right strategy and would that be a strategy that you’re looking at going ahead?
V.S. Anand
Yeah. So on a periodic basis and we look at depending on the market situation, it is a call that we will take which is a judicious mix between both price and volume. Obviously that has to over overall benefit and then we take the call accordingly. Yeah.
Radha Agarwalla
Okay. So in previous calls and this call also you mentioned that anti dumping duty has been filed for products which contribute about 40 to 45.5percent of your revenue. So what about the balance 60% of the products? Will you be filing uncertainty for the same as well? And by when do you expect expect the duty to be implemented?
P. Srinivasan
Radha here I think on the other 50, 55% a some portion is getting exported. So it’s a freely competitive one and where we are very competitive. Secondly, on all those other products our margins are quite reasonable.
Radha Agarwalla
Okay. And sir, what about some new grades that you were talking about last year? Some niche applications for the rubber application for niche products. Any update on that?
V.S. Anand
Yeah, so there is. It’s quite in advanced stages I would say. We are in customer trials. So there are two, three products in the pipeline, one of them which is at customer trials. And we expect some commercialization towards the end of the year. But yeah, I think volume ramp up will take some time as is the case with all these products because it’s not only about customer acceptance, it’s also about building the capability to produce. So I think all these things will come into play. But that’s where we are on the stage.
Radha Agarwalla
So do we need to put extra capital to manufacture these products or you can manufacture at the current facilities.
V.S. Anand
Not, not initially. It can be manufactured initially at the current facility.
Radha Agarwalla
Okay, thanks.
operator
Thank you. The next question is from the line of need of Jamadia from Anvil Wealth. Please go ahead.
Nirav Jimudia
Yes, thanks for the opportunity again. So just continue with the earlier question on operating leverage. So let’s say today we are at an index of 133. And what we have seen, I think in between 2016-19 when our volume started ramping up, the operating leverage benefit in terms of power was very commendable. So your thoughts here like at what level of indexation the benefit of operating leverage would start kicking in and more possibly if you can highlight along with the power, that would be very helpful.
P. Srinivasan
NIRAV on the power part, I think there is. We already have commissioned a turbine. There were some challenges in the stabilization of Turbine which we are going to enhance those benefits during the year and which we have already mentioned that this is going to be a significant saver for utility cost per se. That’s number one. Number two in terms of optimization benefits, a continual thing it has to every 10% it is going to. In other words, the index which is 130, 135, if it goes to 145, you will get some overheads getting optimized. As you go over 150, some more overheads will get optimized.
So it’s a continuous evolving process. But I think the real benefit probably we are looking at somewhere around 160 or thereabout where the real benefits which will be visible and significant in the operational performance subject to the key point caveat we have the pricing parameters doesn’t change so drastically or the dumping it doesn’t get more intensified. But our belief is that that should not happen. But just want to keep you aware of.
Nirav Jimudia
So you mentioned significant savings in the power cost once these turbines are fully stabilized. So let’s say on the volumes we did in FY25 and commensurate power cost which was like close to around 146 crores, let’s say if we assume the similar amount of volumes, what sort of savings could accrue to us on an annual basis once these are fully stabilized and operating fully?
P. Srinivasan
I think Neela, you should appreciate these are all sensitive data we have to be guarded against. Yes, it is in a way significant from a utility budget perspective. That’s all. I. That’s the only point we can say at this point of time.
Nirav Jimudia
The second question is on the imports to India. So let’s say one could be coming from China, Europe, what you mentioned earlier also, but I think some of the Chinese companies are also setting up the factories in Thailand and elsewhere. So are we seeing the imports coming from these geographies also where they have been putting up the secondary plants?
P. Srinivasan
Yeah, you’re. You’re right. You’re right. I think in some of the products we are getting, products are coming under the imports are coming from Thailand, Korea, China, EU etc. And the other part which we would like to add is that a couple of these destinations are FTA free trade agreements. India has entered into that. So basically Thailand and Korea are coming under the Free Trade Agreement.
Nirav Jimudia
Thank you so much, sir, and wishing all the best.
P. Srinivasan
Thank you.
V.S. Anand
Thank you.
operator
Thank you. The next question is from the line of Ranjit Shivaram from Mahindra Manual Life Mutual. Please go ahead.
Renjith Sivaram Radhakrishnan
Yeah, hi sir, thanks for the opportunity again sir, just wanted to understand like what should you read regarding the margins? So from a 14% margin in 24 year come to 10% in 25. So where do you see this stabilizing? So just to get a color on t hat.
P. Srinivasan
Rajit, it depends on how much volume we are going to pick up in the coming years. I think the coming quarters and years broadly if you, if you recollect can recaptulate what Chairman S said in the EGM at the AGM. I guess there are some disc. Anyway.
operator
Mr. Ranji, while management is answering your question, please mute your line.
Renjith Sivaram Radhakrishnan
Hello, I’m. I’m. I’m from my phone only. I’m not something hands free.
V.S. Anand
Just you can just unmute yourself. You can just mute yourself.
P. Srinivasan
Yeah, yeah. Can I, can I proceed?
V.S. Anand
Yes.
P. Srinivasan
Yeah. So I think if you look at our long term objective of achieving 10% market, achieving 10% market share in the global rubber chemical space then in the medium term to long term we need to do a performance CAGR of 10%. And that’s what we should aim for. And in case we are able to achieve that, I think those operating benefits optimization benefits, all those leverages will kick in and you will see big number changes coming in.
Renjith Sivaram Radhakrishnan
Okay sir, thanks. Thanks.
operator
Thank you. The next question is from the line of Radha from B and K securities. Please go ahead.
Radha Agarwalla
Yes, thanks. Again this one question sir, according to you, what are the key drivers that will create value to the shareholders from there on? So there is an in scheme announcement by the company based on performance. So considering this and the global scenario is going to be very volatile. So how are we prepared to beat the global market in this scenario?
V.S. Anand
Yeah. So I think when we say value, it’s value for all stakeholders, right? That includes shareholders and other stakeholders that we’re talking about. And for me value is not only in terms of enhancing our presence and geographical presence in the market but at the same time doing it in a profitable manner with innovative products. So that’s what the whole thing is structured around. And all our efforts are along those lines. Given, given the environment that we are operating in, which is quite uncertain, I think we’ll have to continue to focus on our basics. We will have to continue to focus on what we can do which is within our control, that is best in class so that we can be competitive globally and have a plan B and a plan C for every plan that we make.
So that’s what we do as an organization and that’s what we plan. So I think we and keep the strong engagement with customers. Most important because these are long term strategic engagements and I think we will have some choppy waters in between. But long term engagements will always hold us in good stead. That’s the way we see it.
Radha Agarwalla
So what is the current domestic market share?
V.S. Anand
About 40%.
Radha Agarwalla
Yes. Thanks sir, all the day.
V.S. Anand
Thank you. Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. B.S. anand for closing comments.
V.S. Anand
Thank you. Thanks. Thank you everybody for taking your time. Just a few things from my side as we bring the call to a close. While the uncertain and fluid environment that we just discussed and we operate in presents its set of challenges, it also presents opportunities. As an organization, we are viewing it through the lens of both a microscope and a telescope. A microscope that enables us to activate actions for the here and the now to steer us through this challenging period. And a telescope that enables us to ensure that we have our measures in place to stay on course towards our long term goals.
I hope we have been able to address, if not all your queries, at least most of them. As I take this opportunity to thank you for your support and thank you for investing your valuable time to join us today. Let me also take the opportunity to thank my colleagues at MOSIL for their commitment and passion to adapt and steer the business through these ambiguous times. For any further information, kindly get in touch with me. All Strategic Growth Advisors, our Investor Relations Advisor Advisors.
Thank you once again and have a nice day.
operator
Thank you. On behalf of Nosir Limited concludes this conference. Thank you for joining us and you may now disconnect your lines.