Punjab Chemicals and Crop Protection Limited (NSE: PUNJABCHEM) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Vinod Kumar Gupta — Chief Executive Officer
Devender Gupta — Chief Financial Officer
Shalil S. Shroff — Managing Director
Analysts:
Unidentified Participant
Manish Mahawar — Analyst
Rahul Jain — Analyst
Preeti Agarwal — Analyst
Viral Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to 3Q NFI 26 post results conference call of Punjab Chemicals and Crop Protection limited. As a reminder, all participant lines will be in the lesson only mode. And there will be an opportunity for you to ask questions 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. Manish Mahabhar. Thank you. And over to you sir.
Manish Mahawar — Analyst
Yeah. Thank you. Marks. Warm welcome to all the participants on the call of Punjab Chemical. Infra protection from the Management VA. Mr. Shaheer Shroff, Managing Director Mr. Vinod Gupta, CEO Mr. Devinder Gupta, CFO Mr. Bishan Singh, Head Finance on the call. Without further ado, I would like to hand over the call to Mr. Vinod Gupta for opening remarks post which we will open the floor to Q A. Thank you. And over to you Vinodji.
Vinod Kumar Gupta — Chief Executive Officer
Thank you Manish. And good afternoon everyone and thank you for joining us today for this investor call for the third quarter and nine month end date on the 31st of December. I’m joined on the call currently by our CFO Mr. Devendra Gupta and our finance Mr. Bishan Singh. Mr. Shroff may join in sometime as he is traveling right now. We sincerely appreciate your time and continued interest in our company. I trust you have had an opportunity to review our financial results and investor presentation which are available on the stock exchange and on our website. Let me begin with the overall market scenario and challenges.
As most of you are aware as you are tracking the industry, that global agrochemical industry continues to face persistent headwinds marked by supply, demand imbalances, channel inventory correction, pricing pressure from Chinese capacity and volatile raw material costs. While export demand has proved significantly with the normalization of global inventories, realizations remain capped. Margins across the industry are expected to remain stable to slightly soft. With market favoring low cost producers with export breadth that is Registration and the product basket. And also with strong working capital discipline. Domestic demand is heavily dependent was dependent on the monsoon and the late floods this year impacted the seaweed season adversely.
Demand has remained weak due to weather related disruptions. And obviously there is a lower crop and horticulture prices which is also seeing demand pressures. As such, our presence in agrochemical in local market is limited. And for the product what we make for local market demand has been stable. We at Punjab Chemicals are adapting to market situation with focus on New product addition efficiencies and cost and we have demonstrated remarkable resilience. Our performance in first three quarter of the current year is a testament to our diversified business model across agrochemicals, performance chemicals and industrial chemicals. As all of you would have seen our numbers, revenue from operations for the quarter stood at 246.6 crores reflecting a growth of 15.3% year on year our gross margin for the quarter stood at 41.9% whereas EBITDA was 29.6% which is 12% EBITDA margin.
Prices have remained soft but our volumes and capacity utilization across various divisions has remained healthy. Our strategy to build sustainable growth is yielding results which is built on three pillars. First one is product innovation and diversification. We continue to invest heavily in R and D to introduce new products mainly focusing on products which are on reasonable volume, reasonable size but which are not sort of commodity where we believe that value addition will be higher and we can meet the global regulatory standard. New product launched in recent years are contributing significantly and these are growing at the rate of 15 to 20% in coming years.
In order to cope up with the demand for the products we are investing to Dewater Lake, our capacity and also new production blocks. This expansion also align. As all of you are aware, government is giving a push for making India with lot of policy changes. So we believe that our expansion is timely to capture these opportunities. And also third pillar for our strategy is operational excellence. We continue to focus on operational excellence, continue to focus on efficiency so that we remain competitive and maintain market share for our existing products. At the same time we continue to focus on our expanding expanding our customer base chemistry capability, strengthening our customer relationship which is helping us to expand our product portfolio.
The Progress on the MOUs we had signed three MOUs last quarter. Product progress is satisfactory and we are confident that the commercialization for these products will happen in FY27. Our in house R and D work and some pilot trials is focused on products which are going off patent both in agrochemical and specialty chemical space. So on the manufacturing front our previously owned Capex plant is progressing on schedule. The new manufacturing block is under development to support the growing demand. Also alongside expansion we continue to focus on asset renewal programs. Last quarter we took revamp of two production blocks to improve safety, efficiency and reliability.
We continue to evaluate new manufacturing location to support our medium to long term growth strategy and enhance our supply chain resilience. So I will conclude my comment by saying that we remain confident in our strategy and our ability to deliver long term value to our shareholders. Our robust Q3 performance coupled with strategic capacity expansion, product innovation positions us for a strong recovery as the industry condition normalizes. With this, I will hand over the call to our CFO Mr. Devendra Gupta to give financial highlights for the quarter and the year so far.
Devender Gupta — Chief Financial Officer
Thank you Vinodji Good evening everyone. Thanks for joining us for our Q3 and 9 month FY26 earnings call. I’ll now provide a summary of the financial performance for the quarter and nine months period ended 12-31-2025. On the quarterly side our revenues from operations stood at INR 246.6 crores with a growth of around 15.3% on year on year basis. The domestic market contributed around INR 138.2 crores while the international market contributed 108.4 crores to the total revenues. Gross margin for the quarter under review stood at 41.9% and incremental of 1.9% on year on year basis. EBITDA for the quarter was INR 29.6 crores with a strong growth of 53.5% on YoY basis.
The EBITDA margin also stood at 12.4%. Profit after tax for the quarter stood at INR 13.8 crores growing by 127.7% on year on year basis and PAT margins stood at 5.6% for the nine months period. The performance is as follows. Revenue from Operations stood at INR 121.2 crores growing by 17.6% on yoy basis. The domestic market contributed INR 450.6 crores while the remaining 370.6 crores was contributed by international markets. Gross margins for the nine month period stood at 37.7%. EBITDA for the nine month period was INR 90.6 crores growing by 23% with margin of 11.0%.
Pack for nine months period stood at INR 53 crores with a growth of 66.2% and part margin of 6.5%. Our capacity utilization across all manufacturing sites remained healthy during this period. The Agrochemical division operated at around 78% capacity utilization, the performance chemical division at 60% and the industrial Chemical division continued to operate at the near optimal level of around 85%. With this I now end my financial highlights portion and open the forum for Q and A. Thanks to all.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask the Question may press star and one on the 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 Rahul Jain from Credence Wealth. Please go ahead.
Rahul Jain
No, Am I audience?
operator
Are you audible? Yes sir, please go ahead.
Rahul Jain
The first question is on the CAPEX side. So currently at now what Capex we have done in nine months and what for the CAPEX is expected to get completed in March 26th and what is the capex for March 27th and if you could segregate that between the growth CAPEX and the maintenance CapEx.
Vinod Kumar Gupta
So for this year so far our CAPEX is roughly about 30 crores and we will be investing another 10 crores in the year so total will be around 40 out of this roughly about 22 crs for asset renewal and compliance and other aspects and about 18 crores is for creating either a flexibility in production blocks or capacity expansion for the new product that we have added in last two three years. So that’s for this year. I hope that answers your question.
Rahul Jain
And FY27.
Vinod Kumar Gupta
FY27 because our major capital expenditure for the new block will start coming in from March onward so we expect the new block to take about 70 crores and next year also we have not done the budgeting exercise but but capex for asset renewal as well as for capacity expansion or for capability enhancement will be the similar ranges this year.
Rahul Jain
Okay, so actually with the year end so the capacity at peak utilization what kind of sales could be possible given the current prices post given completion of CAPEX?
Vinod Kumar Gupta
Given the current price levels post the completion of CAPEX suppose if you’re talking about FY27 we should be able to easily do roughly about 1400 to 1500 crores based on the capacity that we are creating and the product that we are planning to add are also slightly higher price, I will not say very high price but they are in the range of 17 to $20 kind of a price.
Rahul Jain
The new products contribution you had mentioned in the previous call we have reached around 16% of the revenue and in terms of the new product conversations further in the current year we had mentioned that in FY26 we finally commercialized total 5 products out of which 2 had been already done till 2 quarter 2 currently at what stage we are in terms of compensation of the balance fee products for the current year and typically what Kind of contribution these five products can. Incremental contribution from these five products can be in the next FY27, FY28.
Vinod Kumar Gupta
So I think as you know the new product addition generally the volume increase is a slow process because first we have to give some commercial lots which are typically small quantities of 5 to 10 tonnes. Then gradually the volume ramps up and the full potential is realized only in two to three years time as far as the commercialization of these products is concerned. In fact we are already at the stage of commercializing more products than what we had initially projected. So last quarter we commercialized one more product for that samples have already reached the customer and based on whatever we have done next year we are expecting handsome volumes and three to four more products.
We are planning to do commercial trials in Q4. So broadly this year our new product addition will be in the range of five to seven numbers. That’s what we are projecting. Overall if I. It’s difficult, I will not be able to say product wise because some products are very small in volume but high value, some products are over a period of time can become high volume but the value will be reasonable. Overall, all these 56 products put together we can expect a contribution in 2 to 3 years of about 150 crores coming from these new products that we have tried in this year.
Rahul Jain
When you speak about MoU, you had spoken that MoU 3 MoUs each of the MoU can be around 50, 60 crores. So the total incremental MoUs can contribute about 150 crores roughly that sales. So within this MoUs are we talking about this new products also a part of the MOUS or these are two separate things?
Vinod Kumar Gupta
These are two separate things. Mou, as I mentioned commercialization, we are expecting an FY27, not this year. So far the progress has been that we have actually initial part of the technical due diligence is completed. Our product samples have been approved by the customer and now we are in the process of final agreement signing where we are now crashing out final details of the overall arrangement which is sort of a long term form agreement with all the three parties. But this will happen in FY27. So these two are two separate links.
Rahul Jain
Will start occurring from second half of FY27.
Vinod Kumar Gupta
I think. Yes, I mean let’s take it to full year because you know all the three probably will be happening at a different stages depending because of the complexity. I mean say for example when we have to do a final agreement with a Japanese customer, sometimes it may take up to six to nine months just to get the agreement done. But broadly the timeline is FY27 in phased manner for all the three products under MoU.
Rahul Jain
And just last one last question sir, your initial commentary you spoke about prices still being stable but no increase further and demand continues to be good. With this latest announcement regarding by China in terms of, you know, canceling the export tax relief for certain pesticides from first April. So how do you view that this exercise, do you feel the sentiment could be better say from April onwards in terms of the agrochemical pricing?
Vinod Kumar Gupta
I think this withdrawal of export benefit is on a very selective basis. It is not across the board, it has been product specific or some particular chapter numbers which does not cover any of our products at the moment. But our belief is that this is beginning of withdrawal of export and tax benefit by China over a period of time they will probably move to more and more products and they will withdraw this export benefit. So at the moment, I mean if you ask me from first April onwards there will not be our products may not be impacted but we have to keep a watch because how does China exports get impacted because of this duty withdrawal on limited product.
If it is a severe impact of export from China probably they will come back in this area because I think their economy is being driven mainly by exports. So that’s the way we see it. But in long run we definitely foresee that export the benefit withdrawal will be a process with gone Chinese government will follow.
Rahul Jain
Do you expect overall agrochemical pricing improvement in say next one or two quarters or it will take some more time?
Vinod Kumar Gupta
I think there may be some uptick because you know we have seen improvement in some products but this improvement is a 3 to 4% not significant. So it will be product specific rather than a general industry phenomena.
Rahul Jain
Thank you so much Sir.
Vinod Kumar Gupta
Thank you Mr.
operator
Thank you. Participants who wish to ask a question may press star and 1. The next question is on the line of Jatin Mswan Investments. Please go ahead.
Unidentified Participant
Good evening sir and thank you for the opportunity. Am I audible?
Vinod Kumar Gupta
Yes Mr. Jatin, you’re audible.
Unidentified Participant
So couple of things I just wanted to clarify. You indicated that the three MoUs that we signed for the export oriented products one which is from Japan and other two will be from other region. So all three together will be accounted for 150 to 180 crores of the incremental revenue over the next two years.
Vinod Kumar Gupta
Next two to three years because you know I think first year will be such commercial quantities first trial lots of once the product acceptance is There gradually the volumes will go up. So let’s take three years.
Unidentified Participant
So three years on the community. So all three together will be 180 crores on a cumulative basis. Right? All three products, three MOUs.
Vinod Kumar Gupta
Yes. Yes. Right.
Unidentified Participant
And on the overall time. Because I guess this MOU which we are signing it’s more of a cdmo. So definitely we’ll have a better profitability as compared to our existing product. If Try to understand that.
Vinod Kumar Gupta
I think that’s. That’s a fair assumption that these MOUs will be at a higher profitability than the current product product basket. And that’s. And these are also sort of exclusive arrangements. That’s that we are getting into.
Unidentified Participant
But sir, any rough guidance can you give? Suppose if you’re at 12% margin these MOUs could be 100 or 200 bps higher or probably more than that in terms of the profitability.
Shalil S. Shroff
Let me take that. Jatin. Hi, this is Shalil here. Please understand that during these calls sometimes you know we have to be very diplomatic in giving numbers. But as Vinod definitely said that these are niche products. And this will have a better incremental than what Punjab has been performing over the years.
Unidentified Participant
Okay. So on this commercial production that which is under trial for product which is going to commission in Q4. So what will be total market size of this four new product which will go under trial production in Q4. And when could commercial.
Shalil S. Shroff
So basically please understand that these are under secrecy agreements. But these markets will grow as we get registration. But as narrated by you know that we expect in the next two to three years to get a revenue of around 180. And on the upper side it could be double of the same.
Unidentified Participant
So no, sir, I’m not talking about the three mou that you have signed. But I’m talking about the production trial that will be taking a 4 new product in Q4. Is that a part of strategic partnership or that are the four different products.
Vinod Kumar Gupta
So these are four different products that we are commercializing.
Shalil S. Shroff
I’m sorry, I joined late.
Vinod Kumar Gupta
So maybe you know, I mean the. So these four products we are commercializing this year. And over a period of time even these will add about 150 crores kind of revenue in next two to three years. Now Mr. Jatin, your question is. Obviously these will be at a higher margin. As Sharil said, it is difficult for us to announce. But overall market is much bigger than what we are targeting. So we are taking a conservative number there.
Unidentified Participant
So that means the four new products and three MOUs can probably give us an incremental revenue of 300 crores at the existing capacity of Lalru and Dirabasi. Right.
Vinod Kumar Gupta
With the new, new capacity addition that we are doing. That’s why we are getting to the new capacity addition.
Unidentified Participant
Okay, so then, okay, the new block that we are probably doing is required another 300. So yes, that you gave it to the earlier participants that existing capacity can give a 1400-1500 crores of revenue in FY27. So is it safe to assume that this 300 will be over and above that or it’s that 50?
Vinod Kumar Gupta
No, I think my response was that including the new blocks that we are creating overall revenue that can be generated about 400 to 500 crores which includes 300 crores roughly from these new products and then growth in existing product, whatever we are doing, all put together.
Unidentified Participant
And now once we look at your export trend, definitely sir, it’s picking up. But when you Compare with your FY23 numbers which was much on the higher side where we probably did an export of near about 530 crores and in FY25 it was somewhere around 350 crores. So the decline in the overall export is largely attributed to a volume or it was more on the pricing.
Vinod Kumar Gupta
No, I think what is happening is as the market situation is very dynamic so even the supply chain shifts are happening. So some of the export product that we were earlier exporting to, say Europe or Japan, they were getting formulated in those countries. Now some customers have started basically some formulation in India and exporting. So overall our product, export of our products remains the same or it is growing at 5 to 7% year on year. But because now we are selling some of that volume in local market because of this shift in supply chain, you will, you are seeing that shift.
So I’ll summarize that our export market share for our All3 products remains healthy, steady and it is growing year on year. But this shift is mainly on account of supply chain changes that are taking place in view of the global dynamics.
Unidentified Participant
So given this trend of the exports, I mean if you can help us understanding how was the month of January for?
Shalil S. Shroff
I think Jatin, you’re going a little bit too much in detail. But you know, as Vinod said that we definitely the business trend is healthy and we expect that the year end also should be very good.
Unidentified Participant
Okay. And once we probably region around 1400 1500s of revenue on next to two to three years, is it safe to assume that we’ll go back to 50% EBITDA margin?
Shalil S. Shroff
As we have already narrated to you that you know the newer products is getting better margins so definitely the trend of Punjab in terms of gross margin and at the bottom level will definitely improve.
Unidentified Participant
One last question. I mean last question, last question from my side. So I mean from last two to three quarters, I mean, I mean more than that we are probably looking at the setting up of a new facility and I mean have we finalized because we are looking somewhere in Maharashtra, Gujarat is something on card or probably as of now our focus will be more on expanding our new blog in Dehrabasi and Lahru. And probably after that we may look at the new site. How shall one look at it for the future growth drivers?
Shalil S. Shroff
I think we have already commentated in couple of our calls between one and two con calls that we have looked at certain sites. Unfortunately because of due diligence it did not fall in place. And at the moment also we are looking very seriously at three sites which is happening and as and when it comes in presumably I believe that we need a site which is absolutely on our radar and as and when it happens we’ll definitely inform all of you and including the stock exchange. Sure.
Unidentified Participant
Thank you. That’s all from my side. All you guys.
Vinod Kumar Gupta
Thank you.
operator
Ladies and gentlemen, to ensure management can answer all questions please limit your questions to two per participant. The next question is from the line of Preeti Agarwal from SK Associates. Please go ahead.
Preeti Agarwal
Yeah, thank you so much for the opportunity. I wanted to know that in Q2 you mentioned exports and domestic demand are structurally 5050 but timing and accounting effect affect quarterly mix. So you know post Q3 has there been any structural shift in customer ordering behavior or geography wise?
Vinod Kumar Gupta
So I think as I mentioned in the response to Mr. Jatin earlier, this balance continues to be in that direction. However, there is a structural shift happening on the supply chain side. Some customers are now taking material India, they are formulating it or the next process is being done in India and being exported. So net, net our product in export market and our market share for those products continue to remain steady or in some cases it is growing. So I think so our exports have been healthy, that’s all. I’m surprised.
Preeti Agarwal
And you know, with Rabi season now underway and some normalizations expected, how should we think about domestic recovery in Q4 or even early FY27 especially for legacy agro molecules?
Vinod Kumar Gupta
Our presence for local product is very limited. We do only two or three products and they are not for this season. So anyway most of our production for the in Q4 is for export market and for very niche customers. Most of our products for domestic market are meant for the monsoon season and we have already started campaign for those products based on our customer requirement.
Preeti Agarwal
Understood sir. That’s it from my side. Thank you so much.
Vinod Kumar Gupta
Thank you Mr.
operator
Thank you. The next question is from the line of Pratik Shah from Investing Alpha. Please go ahead. Requesting you to kindly unmute your mic. You’re not audible so can we move to the next participant? Since there is no response we will be moving ahead. The next question is from the line of Viral Jain from SNG Finance. Please go ahead.
Viral Jain
Yeah, hi. Am I audible?
operator
Yes sir.
Vinod Kumar Gupta
Yes you are.
Viral Jain
Yeah. Thank you for the opportunity. So I’ve got a couple of question. So my first was during the last quarter the management have highlighted that there was a margin pressure from the fuel cost shock and the power inefficiency due to the natural calamity of flood. So can you break down how much of the Q3 margin recovery is due to the normalization of this one offs versus the structural improvement from the product mix and efficiency gain?
Vinod Kumar Gupta
I think this year after, even after the flood season because the crop was not good, the fuel prices continue to be high. So we have not seen a significant relief in Q3 and the shelling because we use rice husk as the. As the fuel shelling for rice is still not streamlined and the quality is not good. So prices of fuel continues to remain high. So whatever improvement you are seeing is mainly attributed to the change in product mix and efficiencies.
Viral Jain
Got it sir. And can we expect any margin recovery out of this?
Vinod Kumar Gupta
I think Q4 is not looking. I mean I see that Q4 fuel prices probably will remain at the same level based on whatever estimates we are getting from the market. So but overall product mix will continue to help us in terms of improving our margins in Q4.
Viral Jain
Got it sir. And my next question was with regards to the EBITDA. So given your earlier guidance of EBITDA of 11.5 to 12.5% for FY26. So should we view the Q3 margin as a normalized run rate or do we expect some moderation in Q4 due to the block shutdown? And.
Vinod Kumar Gupta
I think we will maintain this run rate and that’s the range we are very confident to deliver on a consistent basis.
Viral Jain
Got it sir. And my next question was with regards to the debottlenecking. So one block shutdown has been taken in Q4FY26 for debottlenecking at Dirabashi. So what is the expected net capacity gain post this exercise? And will there be any short term revenue impact in Q4, FY26, Q4 due to this shutdown?
Vinod Kumar Gupta
So first is there will not be any impact on the revenue in Q4. We are expecting this capacity to come back online by mid of February and this will give a very good incremental revenue for FY27. We have not completed the market position and budgeting exercise so we probably will keep it for the next investor call. But overall we are very bullish about the demand for the product where we are doing the bottlenecking.
Viral Jain
Got it. So that was really insightful. My next question was with Lalru capacity. Lalru capacity. So this capacity utilization has been steadily improved from 60 to 70 percentage. So is this incremental utilization primarily driven by the new product or can we expect recovery in the existing modules? And where do you see this steady state utilization over the next couple of years? Let’s say two years.
Vinod Kumar Gupta
So we continue to work on improving the capacity utilization. We continue to rationalize the product mix and also capitalize on some spot demands that is coming from market to improve our capacity utilization. So strategically we are looking at improving LAVU capacity utilization from current levels to healthy levels of over 80% which should happen in next four to six quarter quarters.
Viral Jain
Okay. And any future outlook.
Vinod Kumar Gupta
I mean that’s true. Overall think we continue to grow at 15 to 20% year on year and we continue to maintain that forecast. And I think earlier, earlier participants asked some very specific questions about product addition and their growth prospects. I think that should give you a very good clue around the journey that we are taking.
Viral Jain
Got it sir, got it. That was all from my side.
Vinod Kumar Gupta
Thank you. Thank you.
operator
Thank you. The next question is from the line of Visha Murthy from Mass Investing Capital. Please go ahead.
Unidentified Participant
Hello sir. So my question is like in Q2 you indicated new products contributed around 16% of H1 revenue. So where does this contribution stand after Q3 and what is the targeted share over the next say 12 to 18 months? I will take into.
Vinod Kumar Gupta
I think what we have been presenting that overall our share of new products will gradually go up. Last year was about 12%. This year we expect it to be around 15 to 16%. And gradually we will be moving towards 18 to 20% of our businesses from the new product that we have introduced in last 24 months. So that’s the kind of metrics that we are targeting. And we are working on R and D product development initiatives and our customer reach initiatives to make sure that we meet these targets.
Unidentified Participant
Okay. Also just a follow up question on this like can you clarify whether these products are incremental to the five products which we have discussed in Q2 or they are the part of the same pipeline and what will be the margin profile like should we expect to unscaled?
Vinod Kumar Gupta
I think there are two. One, first of all we are giving at an overall level that will continue to increase contribution from the new product gradually to say 18 to 20% over the next two years. So it can be, it will be mix of these products because market situations change. But overall the product that we are adding will contribute to that kind of a share on the revenue and as we have indicated in earlier response to earlier queries that the margin profile also we are trying to improve from 12% to 15% over a period of time and that’s where the higher contribution from new products will help us.
Unidentified Participant
Okay sir, got it. Thank you.
Vinod Kumar Gupta
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. The next question is from the line of Pratiksha from Investing Alpha. Please go ahead.
Unidentified Participant
Hello. Yeah, hi, I’m audible now.
operator
Yes sir.
Vinod Kumar Gupta
Yes, yes, you’re audible.
Unidentified Participant
Yeah, thank you for the opportunity. So my question is on the R D expenditure. It is said to be doubled over the next two years. So can you link this higher spend to specific outcomes like number of commercial molecules, backward integration projects or margin uplift so investor can track the, you know, roi.
Vinod Kumar Gupta
So I think broadly if you see we have been indicating the the share of new product in our revenues which mainly comes from the R and D effort that is being put and we have been indicating that this share will continue to increase also we have been also talking about improving our operational efficiencies yields which also requires lot of R and D effort and all the investments in the assets and manpower is directed towards improving our product portfolio. So we’ll continue to hold market share in our existing portfolio where we have globally dominant position and at the same time make sure that we make healthy inroads in further new product that we are, we are introducing now.
I think that’s the way we will continue to project our numbers.
Unidentified Participant
Okay, all right, my next question is like backward integration has been seated as a key margin level earlier. So are any of the current or upcoming products meaningfully backward integrated already and what gross margin delta do you typically target from such integration?
Vinod Kumar Gupta
I think as far as backward integration is concerned, we generally split it into two parts. One is obviously we do lot few things in house. A Couple of products, we have already started that exercise. For some other products we identify a local supplier who is able to compete against the import prices. And that exercise also has been successful for us. All these things basically are giving us currently because the market conditions are tough is helping us to sustain our margins. And as the market conditions improve it will help us to improve our margin. It is difficult to give that additional contribution because currently the prices are low.
This will help us in a big way when there are price shocks. So we are actually preparing ourselves for any future shocks which has been typical market phenomena coming from China every two to three years.
Unidentified Participant
Okay. Okay sir, got it. Thank you.
Vinod Kumar Gupta
Thank you.
operator
Thank you. Participants who wish to ask a question and one on the touchstone telephone. As there are no further questions. I hand the contents over to. So Manish.
Manish Mahawar
Yeah. Just below just have a few questions. In terms of this molecules which we are commercializing in four molecules in four Q3 or four molecules in fourth year and MOU what we assigned right. For next year three more MOU. So can you maybe give some indication in terms of which segment is cater to agro farmer? Expect this seven or states of their molecules total.
Vinod Kumar Gupta
Out of these seven products that we are talking about three are from agrochemical sectors. Okay. Three are intermediates and one is performance chemicals that the broad segment.
Manish Mahawar
Okay. Intermediate. It is also related to your echem.
Vinod Kumar Gupta
Out of these three intermediates again two are for pharma and one is for rector.
Manish Mahawar
Okay, understood. And in terms of it’s Purely all the seven are for export market or domestic.
Vinod Kumar Gupta
This is a 50, 50% market share.
Manish Mahawar
Okay. And can it possible to share revenue breakup of nine months in terms of agro, pharma and your spectrum business.
Vinod Kumar Gupta
This is an integrated business and I think we basically that’s why because there is a lot of integration that takes place with between one business to another business. So I think at an overall level is what we project the numbers. And I think that’s the way we will continue to show the numbers.
Manish Mahawar
Sure. That’s it from us again. All the best.
Vinod Kumar Gupta
Okay, thank you. Hello Mr. Manish, we are done or.
operator
The next follow up question on the line. So we do have a follow up question. Okay, the next follow up question is from the line of Jatin from Swan Investment. Please go ahead sir.
Unidentified Participant
Just wanted to understand your mix or the between the domestic and export which is currently around 70, 30. So if you probably when you are doing that a 1500 crore to the top line how do we see that mix changes from the current level over the next two to three years.
Vinod Kumar Gupta
Mr. Jatin, as I told you what’s happening is there is lot of supply chain shifts are happening now. Say for example some of our customer today who basically take technical directly from us in a particular job are already in discussion with us. Can the product be formulated here? That is maybe because of the better distribution network, better cost, whatever be the reason. But so that in terms of the number that we project because whatever we export directly gets counted as exports. So broadly our share will remain 50:50 even for the new products. But when you should look at the number it will depend on the supply chain, how the customer wants it before the product is placed in the market.
But if I look at all the share of the product it will remain at 5050 roughly.
Unidentified Participant
Second question is more on the technology front which you highlighted in your presentation about the three technologies. Can you throw some light on the all the three different technologies that will be using it?
Vinod Kumar Gupta
Just a minute. Which point are you referring to? Just a minute. So technology basically I think we have talked about three new products and technology. What we have introduced is obviously a market. I mean it’s not technology but chemistry. So we have talked about hydrogenation as the. As the capability that we are adding markup and chemistry that we are adding. And we are also adding pressure reaction. So these are the three new thing that we have we are adding to our capabilities.
Unidentified Participant
I mean all this technology we are adding. So when could be one can see a product coming from this chemistry.
Vinod Kumar Gupta
So I think some of the product that we are doing right now are. Are involving these technologies.
Unidentified Participant
Okay. Some of the products are already. Okay sir. That’s all from my side. Thank you.
operator
Thank you. That was the last question. I now like to hand over the conference over to the management for the closing comments. So has left the like he has disconnected.
Vinod Kumar Gupta
So first so let me take over this. So thanks a lot for. For the interest and and I’m sure that we have been able to answer most of your queries in the call and we continue to remain confident about the growth and the profit margin improvement over the next few quarters. And this year already we have shown that kind of a growth and our product pipeline looks healthy to deliver the kind of performance that we have been committing. Thanks a lot and wish you a good day.
operator
Thank you on behalf of Antec Stockbroking Ltd. That concludes this conference. Thank you for joining us. You may now disconnect your lines.