Shree Ganesh Remedies Ltd (NSE: SGRL) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Abhishek Mehra — Investor Relations Advisor, TIL Advisors
Parth Chandulal Kothia — Whole Time Director and Chief Financial Officer
Gunjan Chandulal Kothia — Whole Time Director
Analysts:
Ankit Gupta — Analyst
Adityapal Singh Jaggi — Analyst
Dhwanil Desai — Analyst
Kiran B — Analyst
Ayush Mittal — Analyst
Rupesh Tatiya — Analyst
Mayank Agarwal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Shree Ganesh Remedies Limited Q4 and FY ’25 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Abhishek Mehra from TIL Advisors. Thank you, and over to you, sir.
Abhishek Mehra — Investor Relations Advisor, TIL Advisors
Thank you, Manav. Good afternoon, ladies and gentlemen, and thank you for joining this Q4 FY ’25 earnings conference call of Shree Ganesh Remedies Limited. The results and investor presentation have been uploaded on the Stock Exchange.
To take us through the results of this quarter and answer your questions, we have with us today Mr. Gunjan Kothia, Whole Time Director; and Mr. Parth Kothia, Whole Time Director and Chief Financial Officer. We’ll be starting the call with a brief overview of the performance, which will be followed by the Q&A session.
I would like to remind you all that everything said in this call that reflects any outlook for the future, which can be construed as a forward-looking statement must be viewed in conjunction with the risks and uncertainty that the Company faces.
With that said, I’ll now hand over the call to Mr. Parth Kothia for the opening remarks. Over to you, sir.
Parth Chandulal Kothia — Whole Time Director and Chief Financial Officer
Thank you, Abhishek. Good afternoon, everyone. Thank you for joining us today for the Shree Ganesh Remedies Limited’s earnings call to discuss our financial results for the quarter four and full year fiscal year March 31 financial year ’25. It is my pleasure to present you a comprehensive overview of our performance and strategic initiatives and outlook. The FY ’25 has been a considerable challenge, but also one of the resilient, the strategic recalibration and laying out a robust foundation for sustainable future growth.
Let me begin with an overview of our financial for the quarter and full year. For quarter four of FY ’25, our revenue from operations stood at INR24.43 crores, reflecting a 35% decline compared to the same quarter last year. This decline was primarily due to the slowdown in the European region, which remains a significant market for us, coupled with the sharp reduction in the realizations across domestic product portfolio. The realizations fell approximately 25% to 30% across the products driven by the intensified competition and also the change of market dynamics in India. Despite the top line pressure, it is encouraging to note that we achieved healthy volumetric growth during the quarter. This increase in volume demonstrates the underlying demand for our products and the strength of our customer relationships even in the challenging pricing environment.
Our EBITDA for the quarter four was INR9.88 crores, down 42% year-on-year with the EBITDA margin contracting by nearly 492 basis point to 40.4% EBITDA margin. This margin compression reflects the combined impact of pricing pressure on traditional products and evolving product mix. However, it is important to highlight that our CRAMS project, which command higher margin, continued to contribute positively and help sustain operational profitability.
The profit after tax for the quarter was INR6.60 crores, down 48% year-on-year. The decline in profit after tax is experienced due to commissioning of manufacturing Block 8 and other utilities leading to higher depreciation and finance cost. While this new capacity has not yet contributed proportionately to the revenue, it is critical asset that will drive the future growth as utilization improves.
For the full year FY ’25, our revenue was INR108.60 crores, down 14% compared to FY ’24. The EBITDA stood at INR39.21 crores, a modest 6% decline with the margin improving 290 basis point to 36% for FY ’25. This improvement was driven by operational efficiencies and increasing contribution from our CRAMS segment. The profit after tax for the year was down to INR23.10 crores, down 18% from the previous financial year.
Turning to our business segments, our CRAMS division remains as cornerstone of our growth strategy. We are pleased to announce the signing of Memorandum of Understanding with the leading Japanese client for specialty chemical project. This represents a significant opportunity for us with commercial supplies expected to commence later this year. In the agrochemical space, we have secured and approved source status for key product destined for European market. We expect commercialization of this product to begin in second half of calendar year 2026, further strengthening our presence in this important segment.
As a part of our commitment to innovation and operational excellence, we have intensified our R&D efforts. The construction of the new pilot plant is progressing well and is experienced to be operational from the current financial year. This new facility will accelerate the development and the scale up of new CRAMS project, enabling us to bring the innovative solutions to market more specifically and more rapidly and efficiently.
In addition, we have commenced the development of common infrastructures and utility at our Dahej site. This strategic investment funded through the internal accruals will help us enable to scale production capacities as we secure firm orders for the large-scale CRAMS projects. This infrastructure enhancement is a critical support to our long-term growth ambitions and maintain our position as preferred custom synthesis partner of choice from India.
The global chemical manufacturing landscape continues to evolve amidst geopolitical uncertainties and changing trade dynamics. We have observed a surge in inquiries, particularly from the clients’ seeking alternatives to the Chinese manufacturing due to tariff changes and supply chain realignments.
While our direct exposures to the US market remains limited at present, we have seen growing interest from the US-based customers from custom synthesis projects. This represents long-term opportunities that will contribute meaningfully to our growth trajectory in coming years. In the near-term, our focus remains on strengthening our core geographies of Europe and Asia and deepening their client relationships and expanding our product offerings to meet evolving customer needs. At Shree Ganesh Remedies, we are committed to sustainable and responsible manufacturing. We have recently commissioned a 2.5 megawatt solar power park which is expected to contribute up to 70% of our electricity from the renewable sources.
Looking ahead, FY ’26, we anticipate it will be a year of consolidation and capacity building while we expect margin pressures to persist in the short-term due to the contract repricing and the ramp up costs associated with the new capacities. The strategic initiatives we have undertaken will lay a solid foundation for the accelerated and profitable growth in the years ahead. We expect to launch several new molecules and expand our manufacturing capacities, which will position us strongly to capitalize on the emerging opportunities. Our focus will remain on delivering high-quality custom synthesis to our clients while maintaining operational discipline and financial prudence.
In closing, FY ’25 has been a year of navigating challenges with resilience and strategic foresight, we have made a significant progress in diversifying our product portfolio, expanding our infrastructure and strengthening our R&D capabilities. This effort positions Shree Ganesh Remedies well for the future.
With that said, I will now be open to any questions you may have. Thank you.
Questions and Answers:
Operator
Thank you very much sir. We will now begin the question-and-answer session. [Operator Instructions] We have our first question from the line of Ankit Gupta from Bamboo Capital. Please go ahead.
Ankit Gupta
Thanks for the opportunity. So, you have highlighted that FY ’26 is going to be a year of consolidation and you have also mentioned that realizations have fallen by 25%, 30% across products. So, in terms of margins for FY ’26 how do we see the margins for us in FY ’26?
Parth Chandulal Kothia
Thank you, Ankit. So, the product realization, which is 25% to 30% decrease has been for the domestic portfolio, not for all the products across the product portfolio. For FY ’26, we will see more normalizing of the margins in the range of 24% to 26% of operating margins. And we anticipate that it will continue for the future years as well.
Ankit Gupta
Okay. Okay. So, we’ll see the margins as you have guided between 25% to 30%. So, it will be in the range of around 24% to 26% for the FY ’26?
Parth Chandulal Kothia
Yes.
Ankit Gupta
Okay. And in terms of top line, how do you see the growth like we ended this year with INR109 crores of revenue? For FY ’26, how do you see the growth?
Parth Chandulal Kothia
So, for FY ’26, I think as mentioned in the commentary, this year, it’s a year of consolidation. So currently we are aligning and we are building up the capacities for multiple reasons like for multiple things as well. Manufacturing block, we are increasing, in R&D, we are increasing the strength in pilots and everything. So that’s why ’26 will be a consolidation and we are also in the phase of approvals for the projects, for the Japanese project, for the other European projects as well. And we will prepare the base in FY ’26 to start the commercial supply in upcoming years.
Ankit Gupta
Okay, okay. And if you can talk about the Japanese the MOU that we have entered with the Japanese company. So, we are planning to like for three — like it will start — it is for three years with the extension of two years. So, let’s say, at — when you like reach the peak, what kind of peak revenues can this contract generate for us?
Parth Chandulal Kothia
Gunjan, you want to take this over?
Gunjan Chandulal Kothia
Okay. Hi.
Ankit Gupta
Yeah. Hi, Gunjan.
Gunjan Chandulal Kothia
So the Japanese MOU projects is more on a spec chem side. And currently, we have started submitting small samples for the approvals. So approval is ongoing at the moment. And also this project requires some special infrastructure dedicated to it. So, we have planned that infrastructure to be built once we get the approval from this Japanese company. So, I think it will take one or two years to get project started on a commercial scale. But one thing is for certain that as the Japanese company has shared quite confidential information and as the project is proceeding smoothly, this project will certainly be one of our top projects. So we are quite positive on this MOU that we have signed with a good leading Japanese company and you can certainly see the effect of this project in upcoming years. But at the moment, we are on the approval status and the R&D status.
The extension of MOU is there because the technology transfer might take a little bit more time, so they have kept three plus two years of our clause. But from the speed of the project that is ongoing at the moment, we are confident that the approvals and the validation will be concluded by the mid of calendar year 2026.
Ankit Gupta
Okay. Mid of calendar year. So next year it will complete it — it will be completed. So, when do you expect to start the…
Gunjan Chandulal Kothia
Yeah. So, by the next year this time we will have the samples and the small quantities approved. So in next year you may see some of the commercial pilot scale, small quantities, but the year after we will start selling good commercial quantities. Everyone knows, right? Yeah. Because Japan is Japan, they are a bit slow in commercializing and evaluating things and making sure that things will work out for them for sure in the future. So their speed is a little bit slow compared to the other countries. But once they sign anything with you or they join hands with you, that is going to be commercialized or that is going to take shape in the future that is for sure.
Ankit Gupta
Sure. And so, will we be building plant at the Ankleshwar unit or we are looking to develop Dahej also for this Japanese contract?
Gunjan Chandulal Kothia
At the moment, we are going to use up the Ankleshwar facility and also as you know we have recently joined one of the — acquired one of the neighboring lands. So, we would be expanding in that space. But going forward in the future after three or four years, we feel that the capacity needs to be increased for some of the chemistries then we would start expanding at Dahej. So, at the moment, what we have planned is, we are building up the common infrastructure that is required at Dahej site like an office or a lab or a fire hydrant system, a security cabin, a canteen like we are building up the common facility in this year.
So from next year we can decide which chemistry or which project we want to focus on and we will plan accordingly at the Dahej site. So — but at the moment, the manufacturing infrastructure is being expanded at the Ankleshwar site only because we have ample space after acquiring the neighboring land.
Ankit Gupta
Sure, sure. And the potential, the revenue potential from these three products that we’ll be doing, so let’s say ’28-’29, you might see full ramp up of all the three products. So, what kind of revenues can we expect from this Japanese contract?
Gunjan Chandulal Kothia
At the moment, on a safer side, the peak revenue is INR30-plus crores, but it can reach up to — it can go up to double. But what Japanese team has conveyed us, it can reach at its peak for INR30-plus crores.
Ankit Gupta
Okay. And what will the margins here in this contract?
Gunjan Chandulal Kothia
Similar, we would try to maintain the margins around 24%, 26% but with the volumes, the margin can be decreased, but initially the margins would always be around 30%. But as the project gets commercialized, we would try to maintain our healthy margins around 26% or 24%.
Ankit Gupta
Okay, okay. Just one last question before I come back in the queue. On the agro products that we had launched, how is the ramp up happening there?
Gunjan Chandulal Kothia
So, in this year, we have already got the approval status from the customer. We have supplied some small quantities and they have satisfactory made the end use product. The Company is now in the phase of registering the product to launch in the market. And they are expecting to place a small commercial order in next year calendar year 2026. And their projection is that, the product would reach at its peak in next three to four calendar years.
Ankit Gupta
Okay. And what can be this peak revenue like? How can — how big it can this fill up?
Gunjan Chandulal Kothia
It would be in a similar scale at with the Japanese. It’s INR30 crores, INR35-plus crores.
Ankit Gupta
Okay. Thank you, and wish you all the best. Yeah.
Gunjan Chandulal Kothia
Thank you.
Operator
Thank you. We have our next question from the line of Adityapal from MSA Capital Partners. Please go ahead.
Adityapal Singh Jaggi
Hi. Am I audible?
Gunjan Chandulal Kothia
Yes.
Operator
Yes, Aditya.
Adityapal Singh Jaggi
Thank you so much for the opportunity. Just so before we get into the projection and what the future lies, what lies first in the future, Gunjan, Parth, are we trying to enter the GLP-1 supply chain for at least the molecules that are going off patent in many geographies in FY ’26 for a pharma segment?
Parth Chandulal Kothia
No, Aditya. Thank you for the question. So GLP-1, so as of now we are not working for any of the products in pharma sector for the GLP-1.
Adityapal Singh Jaggi
Understood. And if I say FY ’27-’28, two years out, three years out, we have got multiple CRAMS project under our belt now and side by side, so having a lot of discussions with a lot of multinational clients. So, in your vision where can you see the revenue going from a INR100 crores today to say in FY ’28 where — with everything that we have today with all the capacity we have today, where do you think or what is your vision, where we can go by FY ’28-’29?
Parth Chandulal Kothia
So, I would say like the growth which we have seen in previous years as well and how we expand. So, we don’t see the linear growth but definitely FY ’26 while the year is for the consolidation, we are very confident that the recent CRAMS project and other agro projects where we have received approval from the customers, we will see the commercialization in next three, four years. So once the approved products which goes commercialized in three, four years, we will see like the growth — like revenue doubling from here and that will meet our internal benchmarks of 20% to 25% growth, CAGR growth for three, four years.
Adityapal Singh Jaggi
Understood. And when we are looking at FY ’25’s revenue, what would be my — what would be out of INR109 crores, what would be the CRAMS revenue and what would be our non-CRAMS revenue?
Parth Chandulal Kothia
So roughly approximate it’s around 15% to 20% from the CRAMS revenues. So CRAMS goes into two different end use application. And so, I would say, around — in the range of 15% to 20%.
Adityapal Singh Jaggi
Understood, understood. And the number that you said to the previous participant, those are annual revenue figures, right, not quarterly?
Parth Chandulal Kothia
Say again?
Adityapal Singh Jaggi
The figures that you said of INR30 crores and INR60 crores to the previous participant, those were annual revenue?
Parth Chandulal Kothia
Annual revenue, correct.
Adityapal Singh Jaggi
Got it. Got. So that’s all from my side. I’ll come back in the queue.
Parth Chandulal Kothia
Thank you.
Operator
Thank you. We have our next question from the line of Dhwanil Desai from Turtle Capital. Please go ahead.
Dhwanil Desai
Hi. Good afternoon, everyone. So, my first question is, if you can talk a bit about you mentioned that the project sizes have moved from 80 tons to 100 tons to maybe more than 500 tons now or at least the inquiry level that is the kind of inquiries that we are getting. So, if you can talk about what kind of pipeline you have for larger size project? So, if you talk about overall pipeline, how many molecules you’re working on at the development stage, how many commercial and how you want this pipeline to move over next two years? And out of those molecules that you’re working on, how many of them are you are working for a larger size of the project, let’s say, more than 100 tons?
Gunjan Chandulal Kothia
All right. So Parth, I will take this question.
Parth Chandulal Kothia
Okay.
Gunjan Chandulal Kothia
So, from the volumetric point of view, all our past products has been in range of like 50 tons or 100 tons or max 150 tons, but the upcoming projects they are all above 200 metric ton. So, the agro project that we are doing with the European company, the peak volume that has been shared by the customer is 500 plus metric ton. And the Japanese project volume also that has been shared by the customer to reach at its peaks is 250 plus metric ton.
Now, to produce these products, we would use some of our existing infrastructure, but we are also building up some strength in the flow chemistry because these projects require one of the stages to be conducted in the flow chemistry and that’s why we are consolidating and building up the capacity around the new chemistries that we are lacking at the moment, so we can take them to the commercial scale.
And talking about our R&D strength and the projects that we do per year, we at least close down on six projects every year in the labs. And of that six projects, we then coordinate with the customers. Some of them gets commercialized in two or three years, some of them get commercialized in five, six years. So, as you rightly said, we are doing lots of CRAMS projects at the moment. So, we also have more and more opportunities on the CRAMS because if we talk about SGRL image in the market at the moment, we have built up an image such that we focus on chemistry-based projects and we are more interested in taking custom synthesis projects rather than doing the projects that are already available in market or the people that are already buying from China. So, we are not focusing on the China Plus One rather than we are focusing on doing custom synthesis project where the customer has either a trade secret or a patent filed on it. So, all our projects are quite unique in the sense that they have developed by the customers and they are also, I think the only one that can be done in India or we are the only one doing in India.
But our project selection from now on and in the past few years has always been that we are a reliable manufacturing partner for a European, or a Japanese, or a US customer in this spec chem field where they are looking for an Indian manufacturing player who can help them to scale up the manufacturing capacity so that they can launch the product timely into the market irrespective of their end application.
Dhwanil Desai
Okay, got it. So currently, how many projects that INR15 crores, INR20 crores revenue that you talked about on the CRAMS side of it, that is a overall what it’s a combination of what four, five commercial molecules or more or less than that? And then going into next two years, how do you see this number of molecules changing? Of course, you indicated that the volumes for each molecule are moving from more than 200 tons, but the number of molecules wise, how do you see the trajectory as today and going forward in next two, three years?
Gunjan Chandulal Kothia
So, year-on-year, the revenue from the CRAMS will keep on increasing. I cannot comment on the figures exactly, but what it is now and what it is currently around 15%, definitely it will grow to some extent or it will grow to maybe double or triple the current extent in the future. But in how many years, I cannot say for sure, but going forward in the future, our plan is to increase the revenue from the CRAMS stream mainly for two reasons. First, they are chemistry-driven and second, they are customer-specific and they are a stable project for the future. So, our existing products, which are like a generic products that there is always a competition and there is always the sacrificing of the margins and the volumes and — but the CRAMS project because they are customer-specific and because they are application-specific. So, the revenue from them will be quite like. Hold on. Sorry. Sorry. So, the revenue from them would be quite stable, but I would not be able to comment on the figures, but for sure you would see the revenue from the CRAMS increasing in the future financial years.
Dhwanil Desai
Got it. Last question. So, I think we are putting up some utilities and common facilities in Dahej and if I understand correctly that Dahej was predominantly allocated to large projects done probably for captive projects of some customers, when that scale was required, right? So, are we kind of seeing such opportunities and hence fortifying in next year and hence we are kind of preempting this or this is more of a putting these facilities up and then as and when opportunities materialize will put up the other infrastructure in place? So how should we look at it? This is a precursor to some large projects culminating in FY ’26. So how we should look at it?
Gunjan Chandulal Kothia
It’s a combination of both. Definitely, we are reserving that land to put up a bulk project dedicated to a customer, but also if the bulk CRAMS opportunity arises and we want to set up our own block dedicated to that project, we would be using Dahej land. But for sure, as you rightly said, we would utilize Dahej only for the bulk projects and the small volume custom synthesis projects would be done at Ankleshwar site.
Dhwanil Desai
Okay, understood. And just one clarification, I think Parth mentioned that this year will be a year of consolidation. So I assume that we are saying that FY ’26 top line also we should assume a flattish kind of a number. Is that the right understanding?
Parth Chandulal Kothia
So, I think FY ’26, we will see a growth from here from the current financial year FY ’25, but not the drastic increase in terms of absolute number and percentage.
Dhwanil Desai
You mean top line, right? I understand, margins will –. Okay, okay. Okay. Margins will decline from whatever 35%, 36% to 24% to 26% range and there will be a moderate growth in top line. That’s how we should look at FY ’26?
Parth Chandulal Kothia
Correct.
Dhwanil Desai
Okay, got it. Thank you and wish you all the best.
Parth Chandulal Kothia
Thank you.
Gunjan Chandulal Kothia
Thank you.
Operator
Thank you. We have our next question from the line of Kiran B from Table Tree Capital. Please go ahead.
Kiran B
Sir, thank you for taking my question. So, two questions from my end. Sir, given FY ’25 we have built capacity Block 7, FY ’26 year of consolidation, we are doing a lot of trials. Across pharma, agrochemical, polymer, all these product categories do we have any single or two or three products which can take — which can add INR100 crores revenue additional in FY ’27 or will that be over a period of time and FY ’29 is when we’ll see INR200 crores revenue?
Parth Chandulal Kothia
Gunjan, you want to take this?
Gunjan Chandulal Kothia
So, talking on the projects, at the moment, we don’t have a single project which would contribute revenue wise as INR100 crores. We have a small project, medium-sized projects whose annual peak volume from revenue wise would reach to INR30 crores or INR35-plus crores. And so, when Parth said that our revenue would go double, so this is projected to go double in next three to four financial years when all these CRAMS are expected to reach at its peak.
So, the current revenue, which is around INR100-plus crores from the existing products would continue. And we are trying to maximize the volumes in our existing products and also, we are trying to gain some more revenue from the new products that are recently commercialized just on the generic side. But if we combine the peak of CRAMS and our existing revenue, considering both things in the future, in next three, four financial years, our revenue would go double.
Kiran B
Got it, sir. Got it. And the second question is, apart from the agrochem and the Japanese customer, are we adding — I mean, I think a year and a half back when you had organized some investor meet you had mentioned something happening in the EU space, in the renewable energy space. Is there any progress on that or is that like a stalled project and is that — will that add like ’28-’29, is that part of the INR200 crores in three, four financial years also?
Gunjan Chandulal Kothia
Sorry, I’m confused. Renewable as in you mean to say we were going to put up some sustainable renewable energy generation or the projects in the renewable sector?
Kiran B
Just something around windmill, wind turbine, specialty chemicals is what we were talking about one and a half years back, sir. Maybe [Speech Overlap]
Gunjan Chandulal Kothia
Okay, okay. So that we are already catering to that company in the EU region. But again, that company has a little bit slowdown in their uptake. So that project is already commercialized and they are using the product in the manufacturing of the blades of the windmill. That project is already commercialized, but the customer is having some hiccup in their launch of the product.
Parth Chandulal Kothia
I think that was the past project that we were talking about during like last one and a half years back. But this product is, I think four years old product that we’re talking about.
Kiran B
Got it, got it, got it. Got it. Okay. So that project is already commercialized part of the INR109 crores revenue thing.
Parth Chandulal Kothia
Yeah.
Kiran B
Okay. Got it. Got it. Got it. Okay, perfect. Sir. Thank you so much.
Gunjan Chandulal Kothia
Thank you.
Operator
Thank you. We have our next question from the line of Ayush Mittal from Mittal Analytics. Please go ahead.
Ayush Mittal
Hi. Good afternoon. Am I audible?
Parth Chandulal Kothia
Yes. Yes, Ayush.
Ayush Mittal
Yeah. Hi, Gunjan and hi, Parth. So having followed the Company for a while now, what I want to understand is that, I think till sometime back the kind of outlook we were having was very robust and we were looking on a very good — we were on a very good growth path wherein we had a pipeline of CRAMS projects under hold and all those things. But as of now, for the current year and the recent performance has been weak and we are not seeing much signs of growth. So, what has changed in last six months or so? Any particular project on which you’re banking on?
Parth Chandulal Kothia
Yeah. Thank you, Ayush. I can take the question. And then, Gunjan, can add on if I miss anything. Can you hear me?
Ayush Mittal
Yeah.
Parth Chandulal Kothia
Yeah. So, I think for the current year, I can just comment that what has changed is, in the domestic part for the decline of product realization, we have seen that there is competition where we have enjoyed good margins, good prices for a couple of years. And I think this is the third or fourth year of those products where we have seen 30%, up to 30% of the price decline for that. So that is one of the reasons where we have seen a decline in the current financial year.
Second is European slowdown. So, our major market as of now is also European market where we do the pharma intermediates export. The customer which we supplied to at the big pharma companies from — based in Europe, they have seen destocking, as well as low realization or low, I would say, sales from their end product, which in led decreases our product pharma intermediates. So that’s one of the second reason for the pharma for the European region.
In terms of CRAMS, we are still getting the same commentary that the one of the CRAMS was commercialized, the other two, the Japan one is on the good path, which we anticipated — rather that we are anticipating that it will take much longer time, but the customer is replying faster. So, we see that we will get some kind of commercial approval in the current year in financial year and we will start initial levels of commercial supply in next calendar year second half or I think quarter two of calendar year ’26. So, in terms of projections or forecast which we had for the CRAMS, it still remains same in terms of Japan market, as well as Europe market.
Ayush Mittal
Okay. So, I think there were four molecules that we were working on with the customers, right?
Parth Chandulal Kothia
Yeah. So, what I think we have previously mentioned as well is that, in the last like previously two years ago where we mentioned that three CRAMS’ projects we are giving, but then CRAMS where the nature is dependent on the customer end product and end user as well. So sometimes it gets commercialized within one year, one and a half years, sometimes it takes a lot of time. So after that press release as well, we have signed couple of CRAMS projects but we have stopped giving specific CRAMS like, I would say press release where we have signed with the customers. We are just giving tentative that for this region for Japan region or for Europe region we are doing CRAMS project.
So, we have — after that three CRAMS project we are still signing and we are still doing some of the other works with the other customers in those regions for the CRAMS project, but we have not specifically given press release, I would say, for the CRAMS project. We would happily give and advice public when we see a commercial contract and agreement with the customers. So currently pilot trials and R&D has been going on and we have so far received a green signal from the customers.
Ayush Mittal
Okay. Second, if I look at the margin profile, it is still pretty high while we have been talking about moderation for some time. So, is it that we have been doing some commercial supplies because of which our margins are very high and as the volume scale we have to offer the price reduction?
Parth Chandulal Kothia
Yeah. So for quarter four of last year, that was the first quarter where we started the commercial supply. We anticipated that the customer would normalize the margin, but we were able to enjoy the higher margin for the current financial year till quarter four of this year. Going forward, we are seeing that like from this current year, the quarter one of FY ’26, we are seeing the normalizing or decreasing pricing for the CRAMS project.
I would say, we were able to enjoy the better margins due to the different route of synthesis that we have for that CRAMS project because customer has two or three suppliers and the other suppliers, they had approved price point which we were able to supply at the higher margin for that specific year. So, from current year we are seeing that it will normalize.
Ayush Mittal
Okay. Okay. The other thing that I noticed in the investments that we have been making, if I see the capex that we did two years back, definitely there was a large amount that went towards the land, but it was a higher number. The same it was for last year, but for this year the capex amount has reduced versus last year. What kind of capex are we looking at FY ’26? Right. And by like the aggression that we were having on the capex side, has that been reducing now?
Parth Chandulal Kothia
No. So, it still remains same. So, I would say, manufacturing Block 8 was commercialized in this current FY ’25 on quarter one and then now going forward, the construction of the next manufacturing block while you have visited the site, you can see the construction of the next manufacturing block just adjacent to Plant 8 is ongoing. So, we are doing capex for the manufacturing block, as well as the new pilot plant near to the existing one for the Plant 4. So, in terms of capex, we are still going, I would say, aggressive or we are still focused on the new projects and accordingly doing capex, our blocks are specified to the chemistries. So as and when we see the demand for the specific chemistry, increase in the demand for the existing products of the new projects, then we do the capex. So, it is still going on, I would say.
Ayush Mittal
How much should be the capex for FY ’26 broad number of planning that you have?
Parth Chandulal Kothia
Approximate around INR15 crores.
Ayush Mittal
INR15 crores. Okay.
Parth Chandulal Kothia
Yeah.
Ayush Mittal
Okay. Thank you.That’s it from my side.
Parth Chandulal Kothia
Thank you.
Operator
Thank you. We have our next question from the line of Rupesh Tatiya from Intelsense Capital. Please go ahead.
Rupesh Tatiya
Hello, sir. Thank you for the opportunity. My first question, sir, is on this Japanese project. Can you give some idea about the end industry for the product, kind of chemistry we are doing? Is it a multi-step complex product or is it a large volume, bulk volume KSM+1, KSM+2 products? If you can give some idea about these things, they’ll be very helpful.
Gunjan Chandulal Kothia
Hi. So, at the moment, we would not be able to share the end application because the customer is quite secretive of the end application before the launch of the product in the commercial market. But I can definitely comment on the complexity of the molecules. So, the molecule in total is a combination of six different steps that are required to manufacture this product.
Also, what I can say is, for this product there is only one manufacturer in the world that is located in the Asia continent, like specifically in Japan market. And hence the customers demand is expected to uprise in the future for the launch of the product and we have got this opportunity because we have been able to prove the capacity to develop this product using our existing chemistry and also some new technologies that we have added to our portfolio. But once the customer is comfortable, then we can share the end application. But at the moment, I would not be able to share the end application, but for sure I can say that it’s a quite complex product and customer has trusted us with this project and it is going well on the way of getting commercialized in future.
Rupesh Tatiya
So, just one clarification, sir, this product that customer is doing, is it like a new innovative product or is it like an already commercialized product?
Gunjan Chandulal Kothia
It’s a new innovative product.
Rupesh Tatiya
Okay. And then there are already one supplier in Japan and we are the second supplier?
Gunjan Chandulal Kothia
So, while doing the R&D and product development, they have taken this material and developed one domestic source. But they are also looking for another source to be developed. They had an option to go either to China or India and they have selected to go with India and we are the chosen partner.
Rupesh Tatiya
Okay. And which chemistry is this, sir? I don’t know chlorination like that, hydrogenation. Some idea if you can give about the chemistry?
Gunjan Chandulal Kothia
Still, at the moment, I would not be able to share that, but going forward in the future once things are definitely approved from the customer side, we would be giving a press release on the same.
Rupesh Tatiya
Okay, okay. And the end — I mean, the potential for the end product, is there any view you’re able to share at this point of time?
Gunjan Chandulal Kothia
So, the potential from the revenue wise, it can reach to INR35-plus crores, I would say, on a safer side at its peak. But looking at the customers speech and their projection, it can go even higher.
Rupesh Tatiya
Okay. Okay. Okay, sir. My second question, sir, is this agrochemical product that we are doing, is it an innovator molecule or is it off patent molecule?
Gunjan Chandulal Kothia
No. Again, that is the innovator molecule. The patent lies with the customer. And synthesis and manufacturing is done by us. The customer has just been granted patents two years back, so they still have 18 years left in the market to rule this product and we also have high hopes for this product as well.
Rupesh Tatiya
So that also is a new product for the customer also and the market development has — still has to happen for that product as well.
Gunjan Chandulal Kothia
Yes, yes. So mostly all of our CRAMS projects are innovative molecules that are first to be released in the market.
Rupesh Tatiya
And there also, sir, are we — are there like multiple suppliers for that product or we are like the primary supplier for that agrochemical product?
Gunjan Chandulal Kothia
For all the CRAMS project, they already have a supplier either in China or in the domestic region. But we are the only one from India that they have chosen to work.
Rupesh Tatiya
Okay. Okay. That’s interesting. And sir, this non — so, INR110 crores the revenue we did for FY ’25 roughly you are saying 15%, 20% is roughly INR25 crores is from CRAMS, let’s say, and INR85 crores is from non-CRAMS. So there if you can give some idea about, I mean, you have said pricing has dropped by 25%, but if you can give some idea about competitive intensity, is there like a structural trend that the margins now in this part of the business will be lower or, I mean, what has happened in that part of the business?
Parth Chandulal Kothia
I can comment on this.
Gunjan Chandulal Kothia
Yeah, Parth can comment. Please. Yeah.
Parth Chandulal Kothia
Yeah. So, in terms of domestic products where we are seeing 25% to 30% of like margin erodement, I would say, currently, we are saying that these are the lowest margin. So, the prices cannot go beyond lower than this. Also, we are one of the largest manufacturers of those products. So, we are the lowest cost manufacturer of that products for the domestic market. So, in terms of margins for the domestic part, it cannot go below this which we have realized currently.
Rupesh Tatiya
So this maybe if you can give some idea about the therapy, which therapy in these products are in? Is it like ARV or is it some other I don’t know corticosteroids or something? If you can get some idea about the therapy where you are facing this pricing pressure and margin pressure?
Parth Chandulal Kothia
I think it is in antipsychotic and anti-depression.
Rupesh Tatiya
Okay. Okay. And another thing is now, I mean, we have INR95 crores of net block and another maybe INR15 crores, INR20 crores will get added. So roughly let’s say INR120 crores in FY ’26, how shall we look at the utilization of your assets, right? Because I think we’ve always said I think 2x asset plans if my understanding is not wrong. So how do you see the asset utilization over, let’s say, next two, three years?
Parth Chandulal Kothia
So, I think — so as of last year, FY ’24, the net margin like asset turn was 3 times. Currently, it’s around 1.5 times to 2 times. Going forward, we will see 2 times the asset turnover for the net as property, plant and plant and machinery going forward.
Rupesh Tatiya
So this is including land you are saying, right, sir?
Parth Chandulal Kothia
Sorry?
Rupesh Tatiya
This is including land you are saying, right, 2 times?
Parth Chandulal Kothia
No excluding land, just the plant and machinery.
Rupesh Tatiya
Okay, okay. So, it’s the plant and machinery, we will see 2 times asset turns is what you’re saying?
Parth Chandulal Kothia
2 times asset turnover, yeah.
Rupesh Tatiya
Okay, okay. Okay. Thank you. Thank you for answering m questions.
Parth Chandulal Kothia
Thank you.
Operator
Thank you. We have our next question from the line of Mayank Agarwal from Scientific Investing. Please go ahead.
Mayank Agarwal
Yeah. Hi. Thank you for the opportunity. I have three questions. The first one is like what is the reason for slowdown in Europe like have the Company lost any client or exactly what is the reason like is it temporary or like how we plan to overcome this situation going forward? Hello. Am I audible?
Gunjan Chandulal Kothia
Yes.
Mayank Agarwal
Yeah, my question was like what is the reason for slowdown in Europe? Like is there any client loss and what is the reason exactly for slowdown in Europe.
Gunjan Chandulal Kothia
Hi. I can take this. So, the intermediates or the products that we are supplying already to our European customers, those were of quite generic API and as the new APIs are taking shape, the customer has focused on new API launch and also, they are gaining the volumes, hence the whole generic volumes of the — have slowed down and that has led to the decrease in the purchase power. So that was one of the basic reasons for the slowdown in the Europe or the uptake in the intermediate.
Mayank Agarwal
And what would be the…
Gunjan Chandulal Kothia
And I think this is the lowest that we have anticipated. And the customers — like we have been discussing with the customer and they have told that this is the lowest that it can go. But that is the core reason, because new and new generation APIs are coming. The generic volumes or the old API volumes are slowly going down compared to the newer molecules that are launched in the market.
Mayank Agarwal
Okay. And what will be the like situation going forward?
Gunjan Chandulal Kothia
I think so this is the lowest that they have told us it will go. So, at this stage or at this volume, it will be quite stable, but it will not go any further than this. But this is the lowest dip that can go in the future or this is the current situation that is stable right now.
Mayank Agarwal
Okay. And like next question is like how much of the business is backward integrated and when we see like we have our ability to handle complex chemistry like how do we define what is complex chemistry and what are our skill sets here?
Gunjan Chandulal Kothia
So, when we talk about the complex chemistry, our past projects has been either two steps at max or sometimes three. Now all the new molecules that we are taking are at least four steps or six step projects, which requires multiple chemistries, master or expertise, so all our projects or all our CRAMS projects are at least four or five steps at top, they are going up to eight steps as well.
Mayank Agarwal
Okay. And like what would be the revenue share from our top five products and top five clients like?
Parth Chandulal Kothia
I can take this. Revenue from top five products would be roughly around 65%.
Gunjan Chandulal Kothia
Yeah.
Mayank Agarwal
And from top five clients?
Parth Chandulal Kothia
Sorry?
Mayank Agarwal
And from top five clients?
Parth Chandulal Kothia
Yeah. So top five is 65%, so top three would be around 50% to 52%. Top five would be 65%.
Mayank Agarwal
Okay. And is there any figure like which has like some threats to the Group or something like that and going forward?
Parth Chandulal Kothia
So apart from the legacy business is still stable from the demand from the customers and the new projects which we see when they increase their demand, the proportionately, the ratio of the existing molecule decreases, that’s it. We don’t anticipate it any drastic change in that.
Mayank Agarwal
Okay. And like one question like can you elaborate more about the type of work like the Company doing pharma and agrochemical in terms of work quality, nature of projects, clients, future opportunities and risk and all?
Parth Chandulal Kothia
Can you repeat again? Sorry, I lost your voice. Can you please repeat again?
Mayank Agarwal
Yeah. Just wanted to understand like can you elaborate more on the type of the work the Company do in pharma and the agrochemical business in terms of work quality, nature of projects, clients, future opportunity and risk and all?
Gunjan Chandulal Kothia
So, the projects that we have taken now or in the future, all are CRAMS project. All our innovative projects and the customers are expecting them to reach at its peaks in next three to four years. All projects are complex chemistry-driven projects at least four steps going up maximum up to eight steps. And so — and also, there will be no initial dip like that we have seen now decrease in the revenue as I told the European customer has just got a patent on it just two years back. So, all the projects are quite innovative. They are the patent owners and we see quite a promising future in upcoming years from those projects.
Mayank Agarwal
And the agrochemical part?
Gunjan Chandulal Kothia
Yeah, the agrochemical part, the customer has the patent with them and we are doing the CRAMS for them for the intermediate.
Mayank Agarwal
Okay. Thank you so much.
Gunjan Chandulal Kothia
Thank you.
Operator
Thank you. We have a follow up question from the line of Ayush Mittal from Mittal Analytics. Please go ahead.
Ayush Mittal
Yes sir. So, sir, a couple of questions that I have. One, if you look at the journey that we have been trying to transform on the CRAMS side and we have been building a lot of infrastructure means that you’re getting new contract. Can you tell us more about apart from the existing clients or the Japanese clients, what kind of business engagements or other opportunities are you seeing now, especially given that CRAMS has become a very hot area? Is it that you’re also seeing too much of competition or you are seeing decent opportunities for a company and if they are more tie up going to happen in pipeline?
Parth Chandulal Kothia
I can take this, Gunjan. Thank you, Ayush.
Gunjan Chandulal Kothia
Yeah.
Parth Chandulal Kothia
So, I think the good way to see CRAMS is what we have experienced as well because previously also as I mentioned earlier that we used to do a similar kind of model with the customer where they used to provide us the technology and we used to scale up and supply the manufacturing part and the commercial part as well.
What we have experienced and noticed in the current year is, from the European as well as Japanese market, more from the Japanese market is where we have delivered the initial smaller quantity, smaller volume product in the CRAMS market. They were happy with the turnaround time. They were happy with the specification and the quality and everything, pricing as well. So that’s why they come back with the other two or three new projects from the same trading firm from the Japanese market. So we have been getting more and more inquiries for the new projects. It could be for the existing — like they want to replace the existing supplier or it could be for the new projects where the innovative product is there, where the customer has the patent and everything.
So why we are seeing more influx of inquiries from the CRAMS is, like, because this was recent meeting only 15 days ago with one of the Japanese customers that he mentioned while visiting the facility is that, now, when they mention our name to the customer, to the end product, they are also getting affirmation and confirmation from their end product customers that they are — we are one of the approved suppliers for the other projects that they have seen or they have done with us. And that’s why they are willing to open for the new projects. So, I think that’s why we have been getting more and more inquiries and projects for further discussion.
Ayush Mittal
Okay. And give us the kind of infrastructure investment the — like, I think you have stepped up for large R&D setup also now. Given the investments we have done and the capacity we have built, what do you think we’ll be able to utilize them well enough given the near-term challenges that the Company is facing?
Parth Chandulal Kothia
For the current existing capacities, the new addition of capacities you’re asking, correct?
Ayush Mittal
Yeah. I mean, Company has invested a lot into R&D, into the infrastructure, into the capacity in last two years. And as of now, if this growth is not going to be very high, then how do you intend to utilize it well enough?
Parth Chandulal Kothia
So, I think whatever R&D or the expense which we have done in capacity building, as well as the pilot or research and development is for the projects that we anticipate. So, without that kind of capex or investment in R&D or the manufacturing capability building, the customer wouldn’t — I would say, there would be no project agreement with the customer. So, while we see that customer wants the sample within next six months or eight months, we have to invest certain technologies or certain, I would say, equipments, chemistries, all technical know-how and that requires a certain investment.
Moreover, I think previously it was just the start. Going forward, there are some of the CRAMS project or some of the projects, I would say, not to mention just the CRAMS that requires a new set of capex where the technology is also new for us. As Gunjan mentioned, flow is one of that and there are other chemistries as well, which will require higher end of capex, not necessarily for the building of new blocks but in the existing infrastructure as well.
Gunjan Chandulal Kothia
So, Ayush, in short, initially what we had done is like we developed different chemistries, we invested in R&D. We put up blocks dedicated to chemistries, and we took some of the CRAMS project, but on a lower side of revenue or lower side of volume where we have proven our capability to the customers to show that we can deliver what we say. Whereas now we are at a stage where customers really trust us. And they have started giving us the big projects. That’s the whole scenario.
Ayush Mittal
Okay.
Gunjan Chandulal Kothia
So now what we are doing is, we are putting up a bulk capacity of few chemistries that we feel that it will give us a good revenue in the future and also, we are building up some new chemistry strength as well which customers are expecting from us to get even more complex projects. So going forward in the future, our strength in the CRAMS project is quite, I would say, unique because we are not developing the chemistry and then looking for projects. At this stage, we are developing chemistries based on the customer suggestion and requirements that is quite niche to the Asian or Indian market. That is what we are doing at the moment.
Ayush Mittal
Got it, got it. Okay. Thank you.
Gunjan Chandulal Kothia
Thank you.
Parth Chandulal Kothia
Thank you.
Operator
Thank you. We have our last question from the line of Adityapal from MSA Capital Partners. Please go ahead.
Adityapal Singh Jaggi
Hi, thank you so much for taking up the follow up. Gunjan, Parth, I completely agree with you’ll that the business and the other participant that there is a bit drop in confidence in the commentary, but then we also have a base business right of pharma intermediates, as well as specialty chemicals leaving CRAMS aside. If we are saying that our business will double, our revenue will double in the next three to four years. And we have a lot of CRAMS project coming with each of them at least having a INR20 crores, INR25 crores annual revenue potential. That means that my base business, that is my specialty chemicals intermediate and pharma intermediates will be growing at mid-teens level at the small base. Is that fair to understand then?
Parth Chandulal Kothia
So, yeah. Thank you, Aditya, for the questions. So, in terms of commentary, I would say, that while we give the conservative commentaries, it’s for the time that we are in the business of a non-linear growth. So, for example, when a customer has given us an approval for the commercial supply, there might be a chance that for the next six months or eight months or two quarters or three quarters, we will not see this commercial supply of that material. But we will definitely see the supply within that calendar year when the customer has committed. So, we anticipate that currently there are good progress on the project that we are doing. We are getting the customers and everything.
Adityapal Singh Jaggi
I completely agree. I’m not talking about the non-linear, that is the CRAMS part, but at least my pharma and my specialty chemical is, at least to a certain extent, a linear business, right?
Parth Chandulal Kothia
Correct.
Adityapal Singh Jaggi
So, at the small base, we should be expecting at least height in growth. That is my understanding. So, you can please correct me if my understanding is wrong. Change in industry scenario?
Parth Chandulal Kothia
Right. So, from the existing product portfolio, including the pharma, as well as the spec chem side, we can see like, yeah, mid-teen levels growth. For the pharma side, I would say, the existing business, the legacy business is the segment when there is no growth because it has — like it has gone full potential. But the new projects which are going on the pharma side for the domestic, as well as export market will help with the new growth side, not from the existing molecules for the new projects that are working and that are ongoing in the R&D.
And in the spec chem side same as well, spec chem is for the export market somewhat for the domestic market. The existing projects there is a growth potential for the, I would say, 12% to 15% growth potential. And those projects are smaller in terms of total market value, addressable value. Going forward, the new projects which are ongoing in the R&D will commercialize and that will add to the growth.
Adityapal Singh Jaggi
Exactly my point, right, that CRAMS is one thing that will be a non-linear cut to your revenue maybe in the next three — maybe in the next three years. But side by side, you’re also strengthening your base business which can increase your overall revenue potential that is your pharma and spec chem. So even though you might grow at mid-teen level maybe for the next one and a half year, but because of the new molecules being added, you can expediently at least high-teen growth from a pharma and intermediate segment. Is my understanding correct?
Parth Chandulal Kothia
Correct, correct. Absolutely.
Adityapal Singh Jaggi
Understood, understood. Makes sense. Thank you so much and wishing you and the team all the very best.
Parth Chandulal Kothia
Thank you, Aditya. Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. And I now hand the conference over to the management for closing comments.
Parth Chandulal Kothia
Thank you, Manav. Thank you all for the participation and insightful questions. We appreciate your continued support and interest in Shree Ganesh Remedies Limited. I think we remain focused on executing our strategy, driving innovation and delivering sustainable growth. We’ll look forward to updating you on our progress in the coming quarters. Wish you all the good day.
Operator
[Operator Closing Remarks]