Sigachi Industries Ltd (NSE: SIGACHI) Q4 2025 Earnings Call dated May. 30, 2025
Corporate Participants:
Unidentified Speaker
Amit Raj Sinha. — Managing Director & CEO
Subbarami Reddy — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Sigaji Industries Limited Q4 and FY ’25 Earnings Conference Call, hosted by Go India Advisors. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Stard and zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr D Shah from Go India Advisors. Thank you, and over to you, ma’am
Unidentified Speaker
. Good morning. Thank you,. Good afternoon, everybody, and welcome to Sagachi Industries Limited Earnings Conference Call to discuss Q4 and FY ’25 results. We have on we have on the call Mr Amit Rat Sinha, Managing Director and Chief
Operator
Executive Officer; and Mr Reddy, Chief Financial Officer; and Mr Vivek Kumar, Company Secretary and Compliance Officer. We must remind you that the discussion on today’s call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr Amit Rat Singha to take us through the company’s business outlook and performance. Subsequently to which we’ll open the floor for Q&A. Thank you, and over to you, sir.
Amit Raj Sinha. — Managing Director & CEO
Thank you. Thank you, Ridhi. Good afternoon, ladies and gentlemen. Welcome to Sigachi Industries Limited Q4 FY ’25 Earnings call. The financial year and the investor presentation have been uploaded to the stock exchange. FY ’25 was a year of steady progress as we focused on strengthening our core, enhancing execution and laying a strong foundation for sustainable growth. We saw robust demand across domestic and international markets, supported by our quality-led manufacturing and customer-centric approach. While the global MCC market is growing at a five-year CAGR of 6% to 6.5%, Sigachi has delivered a five-year CAGR of 26.47%, a testament of our differentiated capabilities and sharp execution. In our core MCC business, FY ’25 revenue grew by 23.89% with volumes up of 29.57%. Our newly commissioned 7,000 metric ton per annum plant capacity is operating at 68% utilization, expected to scale near-full capacity by FY ’26.
Our O&M service business also progressed well, adding Adani Solar as a key client. This vertical has now evolved into a stable, scalable revenue stream. At Trimax, our API arm made solid progress on scale-up and regulatory preparedness. We applied for four CP certifications and we have secured CP certification for Metform and HCL making our entry into the regulated markets in Europe. Our R&D efforts are being consolidated throughout the development of — with the state-of-art R&D center at Hyderabad, which will bring in our API development, analytical research and other innovation under one roof, enabling greater synergy and speed in-product development.
In addition, Sigachi has entered into a JV with to co-develop next-generation drug delivery formats using their proprietary Nanofiber platform. Strategically, we received the environmental clearance for our planned CCS facility at Dahej II SEZ, further supporting our scale-up ambitions and diversifying efforts. Looking ahead, we are confident of sustaining healthy revenue growth in FY ’26, driven by strong demand, improved utilization and global expansion. Margins are expected to remain stable, supported by operational efficiencies and a strong product mix. Our priorities remain focused to deepen the core diversify into high-growth areas, scale innovation and deliver long-term stakeholder value. With that now I invite our CFO, Mr Reddy to take you through the financial performance. Over to you, Rede sir you. S
Operator
Ir, your line is on talk now. Hello, Aya.
Subbarami Reddy — Chief Financial Officer
Thank you, sir. Good evening. Good evening, everyone. Let me brief you on the financial performance for Q4 FY 2025 and the full-fiscal year. Q4 FY 2025 financial performance, total operating income during Q4 rose by 23.15% year-on-year, reaching INR128 crores, EBITDA expanded significantly, increasing by 74.84% year-on-year to INR28.5 crores, reflecting an EBITDA margin of 22.31%. Net profit surged by 7.28% year-on-year to INR16.2 crores, translating into a PAT margin of 12.63%. Revenue from the MCC segment grew steadily, increasing by 55.08% year-on-year to INR121.32 crores. The Operations and maintenance segment contributed INR10.76 crores, making a growth of 17.9% compared to the same quarter last year. The FY 2025 financial performance, building on the momentum throughout the year, the company’s full-year operating income reached INR500 crores, representing a 25.42% increase over FY ’24.
EBITDA grew by 46.21% to INR112 crores with a margin improving to 22.38%. Net profit stood at INR70.5 crores, up 23.25% year-on-year with a PAT margin of 14.09%. The MCC segment demonstrated robust growth for the year with revenue increasing by 35.75% from INR302 crores in FY ’24 to INR4.9 crores in FY ’25. The O&M segment recorded a revenue growth of 17.66%, reaching INR41 crores for the year. The API segment contributed INR29 crores to the revenue in FY 2025. That concludes my remarks. Now we can open the floor for the question-and-answers, please.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Participants are requested to limit their question to the per participant. If you have a follow-up question, I would request you to rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Satyam from Profit Market Securities. Please go-ahead.
Unidentified Participant
Hello, am I audible?
Operator
Yes, sir. Yes
Unidentified Participant
Congratulations on good set of numbers. I have few questions. First is, what is the revenue outlook over the next two to three years and what are the key growth drivers for? Along with that, what will additional capex be required to sustain the company’s growth trajectory and how do you plan to fund it further?
Amit Raj Sinha.
So — hi, Satyam. Our revenue outlook continues to be driven by the fact that we will deliver more than 25% growth over the next two to three years. The core drivers would continue to be our ex-CPNs and over the next one year and the second year, it will add-up also as API and O&M. In terms of funding requirements, of course, to add-in capacities, there would be funds — we would need funding requirements. We really haven’t consolidated how much it would be and the way in which we’ll be fundraising. They are yet to be kind of finalized and shared.
Unidentified Participant
Okay. I have one more question. What is the sustainable EBITDA margin in the company targeting and what are the factors we will be driving for the same?
Amit Raj Sinha.
EBITDA margins, the present EBITDA margins are sustainable. Even steadily it will increase further. We are expecting around hope it will be beyond 25%. Okay. And under O&M model where operates third-party plants, are there penalty provision in case of accidents or losses. If so, can you provide ballmark estimates and potential liability for the same?. For this one, so-far even nothing is there such kind of this thing. And for any this things, insurance is there to cover any unfortunate events. But as of now, we have not faced any such kind of events. MR. Yes.
Operator
Thank you. The next question is from the line of Shubham Saigal from SIMPL. Please go-ahead.
Unidentified Participant
Hello. Am I audible? Yes, sir. Yes, yes, please. Yeah. My first question is on our MCC segment. So as you’ve guided for 20% to 25% growth. So I am going to asked, so like how are we exactly going to achieve that? Because currently if you see, we did like volumes of around 19,100 tonnes and we have capacity of 21,700 tons. So I mean that could — even if we operate at 100% capacity, that would give us only 14% volume growth and the rest maybe could come by the realization growth, but still 25% growth without adding more capacity, how do you think we’ll achieve that? And along with that also if you could provide the current pricing of MCC?
Amit Raj Sinha.
Yes, yes. Thank you, Shubham. The current pricing of MCC Is 214.3 is there per kg. And for your question, the existing capacities, the present utilization is 19,100 and we have a capacity, as we said 21,000, but slowly this can increase up to 25% by small — by augmentation with by debottlenecking. Wherever the ideal times are there, we’ll reduce and then we’ll infuse small capex equipment like a reactor or blender or dryer kind of thing and then slowly we can enhance it to up to 25,000 metric tons. And also the increase in volumes is possible because of better sales mix. We have — we are in focusing — we are focusing to increase special grade products and co-process excipients, wherein the margins are on higher side, the sales also — the revenue also will increase and margins also will increase. With that, there is a possibility to increase the steadily we can be 25% growth, not less than 25% growth. And also — and also CCS expansion also is in-place. And in the H2 already our project is environmental clearances approval we have received and other expansion plans also are there so that the expansion plan is — continuous plan is there and also we ensure that this growth is sustainable
Unidentified Participant
. So just for clarification, sir, you mentioning that without any major capex, we can still increase our capacity to 25,000. Is that what you’re saying?
Amit Raj Sinha.
Yes, yes, yes. Okay.
Unidentified Participant
And so — but have — like is that planned during this year because I mean, so are we going to do that this year like increasing our capacity?
Amit Raj Sinha.
Once it reaches, slowly we’ll reduce. Right now, see, once the capacities are available, that’s why we are not touching on that. Okay. But in this year, we have not planned any major capex, only we can increase our capacity by tweaking — that is what you mean, right? Yes. Yes, yes. This year, there is no additional this thing. Anyway, CCS already we have started it. So we are working on it.
Unidentified Participant
But so CCA still, when do we expect the plant to commercialize?.
Amit Raj Sinha.
I mean another 18 months. So if we kind of just add it up, October 26, we should be commissioning our plant.
Unidentified Participant
Okay, got it. So for this year, the MCC outlook remains the same and we can increase our capacities, right? And another question I had was on the gross margins. So like this quarter we did around 60% gross margin. So like going-forward, what do you think would be the sustaining gross margins and the 60% like was it achieved because of — as you said, like we are changing the mix of the products?
Amit Raj Sinha.
Yeah, that is always there, changing the mix of the products as well as other — even more in them. All business segments are there. That is with that is possible. More or less small variations would be there, but more or less we’ll achieve.
Operator
Thank you. The next question is from the line of Amresh Kumar from Geosphere Capital. Please go-ahead.
Unidentified Participant
Am I audible? Sir,
Operator
I would request you to please use your handset
Unidentified Participant
. So thank you for the opportunity. Sir, I just wanted to understand who are we taking this market-share from because of our much more significant growth compared to the market?
Amit Raj Sinha.
Mr Amrish Kumar, if I put it this way that there are two aspects to it. One is the new product development wherein our customers develop new products and they are launched into the market and we participate in the new product development for their excipient or their MCC requirements. And the other part is that we capture market from our competitors. So it’s a holistic mix of both of these. With some customers, it is more to do with the new product development wherein the success comes in quickly and we enhance volumes. And on certain customers or certain regions, we have where the new product development is rather slow. So there we have business coming in from competition
Unidentified Participant
. Got it, sir. And if I have to break it down between new products and taking market-share, can you break it down or is it not possible?
Amit Raj Sinha.
No, no. I think it will be a very big challenge because it is product-wise, we have 60 different grades of cellulose. So it’s product-wise, region-wise and there are certain regions where we have distributors. Distributors have kind of, 26 27 customers within their fold. Each customer has a certain range of old product and new products coming in. So it will be rather complicated. The good part is we are giving 25% growth.
Unidentified Participant
Got it. Okay. And is there any way to understand what would be your market-share since we are the leading manufacturers in India?
Amit Raj Sinha.
So market-share in cellulose-based CPNs are primarily driven by the capacities of the manufacturers. So I would put it this way that the biggest — the number-one player has capacities well-above 100,000 tonnes and currently our capacities are hovering around 21,000 22,000 tonnes.
Operator
Thank you. The next question is from the line of Dinesh from. Please go-ahead.
Unidentified Participant
Hello, sir, am I audible
Operator
? Yes, sir.
Unidentified Participant
So thank you for taking my question and really great set of numbers. Sir, as you mentioned, we are expected to grow at around 25%. But I’d like to know like how do you think the capacity of the company in terms of production would increase over the next two, three years? And will that reflect in the revenues as well? Because if we see the volume growth for MCC is around 30%, but the revenue growth total is 25%. So there is some gap of 4%, 5% there. So will this remain in this range or what do you expect here?
Amit Raj Sinha.
Thank you. Going-forward, Mr Dinesh, going-forward, it will increase. Now we are — because the capacity is there, we are just — we just wanted to penetrate it. That’s why we — okay. But going-forward, the margins will increase. The — when the margins increase, selling price is saying — selling price increase, margin increase and then revenue also will increase.
Unidentified Participant
So because I can see 4% to 5% growth in the market per kg value. So will this continue is what is key important?
Amit Raj Sinha.
Yeah. Yes, it will continue even it will be better because of that’s great.
Unidentified Participant
Sir, one last point from my end. Sir, like in the last few con-calls, you had mentioned there is some issues with the receivables from some of the foreign customers. Has it been resolved right now or like you would expect this to continue?
Amit Raj Sinha.
Yeah, it is resolved. We have received almost 90% of that amount, that 10% is that. That is also it’s going to come. There is no other issue, only country issue allocation of foreign currency that’s all. And yes.
Operator
Thank you. The next question is from the line of Himanshu from Pinpoint Asset Management. Please go-ahead.
Unidentified Participant
Yeah, hi. Am I audible?
Operator
Yes, sir. I would request you to please use your handset. Thank you.
Unidentified Participant
Sure. Yeah, hi, sir. Thanks for the opportunity and congratulations on a steady series of numbers. Sir, firstly, I would like to understand what is the update on our CCS offering and when are we achieved to commercialize that?
Amit Raj Sinha.
Yes that the environmental clearance has been obtained. And just five minutes back I did speak about commercializing or commissioning the plant in October ’26. October ’26, yes.
Unidentified Participant
Yeah. Sir, I would like to also understand CECS as a product as well. So what kind of market size do we have in India and are there any possible you know something on technical know-how that we need on the product to ramp-up and scale?
Amit Raj Sinha.
So Himanshu, we don’t really need any technical know-how, the technical know-how is already available with Sagachi. So that’s not really a challenge and that is how we have designed the plant, submitted the EC application and kind of got the whole project report ready for execution. So I don’t see that. Now in terms of market size, I would say it’s the CCS market or the disintegrant market is usually a 1/10 or one-eighth of the overall cellulose market size. So if there is a customer who is kind of, you know selling 100 kilos of cellulose, ideally the same customer would need approximately 10 to, to 12, 13 kilos of disintegrant. That’s the usual ratio in terms of market capacities and consumptions.
Unidentified Participant
Understood, sir. And sir, in terms of licenses, because it’s obviously a pharma — pharma excipient. So what kind
Operator
Of licensee do we need and do we also need to get this facility as well as approved by the FDA?
Amit Raj Sinha.
Of course, FDA approval will be there. All that will take its due course and it will be on-track. That’s not really a challenge because it is repetitive for Sigachi. We have been having so many excipient approvals, so many facilities approval from the FDA. So I don’t see that as a challenge.
Unidentified Participant
Okay. So you will be able to ramp-up the facility as soon as we have our production line set-up
Amit Raj Sinha.
. Absolutely.
Unidentified Participant
Okay. Thank you, sir. I’ll jump back-in the queue. Thank you.
Operator
Thank you. The next question is from the line of Nitin Gandhi from Enoquet Advisors Private Limited. Please go-ahead.
Unidentified Participant
Thanks for taking my question. Just continuing the same CCS question, out of INR90 crore, how is the capex going to get incurred and what’s the funding pattern and what’s the normal — at current prices, asset turnover expected? If you can share that will be helpful on a basis. Thank you. T
Amit Raj Sinha.
His around INR90 crore CapEx is required for this and asset turnover initially one-time and gradually it will increase up to three to four times. That’s a post API integration. Yes, CCS, this is complete completely. But can you tell me how much would be spent in FY ’26 or ’27 fear-wise capex breakup,
Unidentified Participant
Can you hear how — is it going to be completely funded from internal or some borrowings would be required?
Amit Raj Sinha.
Already we have raised in IPO, we have raised some funding because that is available. And remaining will either through debt or some further issue.
Unidentified Participant
How much debt would be required?
Amit Raj Sinha.
That is around 60 CR, around 55 crore 55 CR. Yeah.
Unidentified Participant
Okay. And how much will be spent in the current year?
Amit Raj Sinha.
Yeah. Yeah, debt or equity. But initially — now right now that is in initial stages. By October ’26, we’ll be completing. In this financial year, we’ll spend maybe 40, 50 figures like that.
Unidentified Participant
Okay. Thanks. And how much time does it take to reach optimal capacity utilization?
Amit Raj Sinha.
It will take two years, two years.
Unidentified Participant
So maybe only 29 you will be able to reach INR90 crore turnover for the first year and thereafter. Okay. And when you say this is a requirement as compared to MCC, but usage and application is same by the End-User or they will — or is it like some substitute for MCC or they are — can you share some thoughts on that?
Amit Raj Sinha.
No. No. So the application is for the formulations of oral solid dosage forms, which are tablets or capsules. However, the MCC acts as a binder, whereas a disintegrant CCS acts as a disintegrant. So MCC puts the tablet together, whereas the CCS breaks up the tablet inside the body. So they are technically complementary and both of them have to be there in the drug.
Unidentified Participant
Thank you very much.
Operator
Thank you. The next question is from the line of Ankur Savaria who is an Individual Investor. Please go-ahead.
Unidentified Participant
Good evening, everyone. Sir, my question is regarding the presential allotment, you said that you have not received about INR68 crores from some of the alloties. So what happened about regarding the 25% that there might have been — they might have given at the time of allotment, sir. Have you accounted for that in the balance sheet?
Amit Raj Sinha.
Yeah, that we have counted. But one thing is that we have forfetted that amount has been forfetted. And we didn’t allot any shares for that and how much was that was four feeted that is around 25 just give me a minute. I’ll tell you so does that answer?
Unidentified Participant
Yeah. So under which head — have we accounted for that? It is 25 years. So under which head we have accounted that for — in our balance sheet that you have presented today that we didn’t — we cannot consider in P&L. We will not consider that in PLN, but we have no disclosures as to where-is that money shown in our cash-flow as well?
Amit Raj Sinha.
Yeah, that is there in capital reserve.
Unidentified Participant
Capital reserve.
Amit Raj Sinha.
Yeah, that is — that is because that is on end, that is capital — obviously that is a capital reserve. In reserves only that would be there.
Unidentified Participant
And sir, one thing more that usually whatever I’ve seen other companies, they continuously give their disclosures regarding as and when, who have been allotted the warrants and as and when the company receives the money from the, there are disclosures that are given. But I have seen that for Sigachi, there was not a single disclosure given as to when was the a warrant converted to the share and to whom it was given and who has not given the funds?
Amit Raj Sinha.
Yes, yes, it was — it is already given and we have submitted also. There were four tranches. In four tranches, we have the allotment took place for each allotment we have filed and whatever even the conversion after equity conversion also we have filed with ROC, that is a public document to whom we have allotted also it is given.
Operator
Thank you. The next question is from the line of Rohan Patel from Turtle Capital. Please go-ahead.
Unidentified Participant
Yes, sir. Thanks for the opportunity. And am I audible?
Operator
Yes. Yes, yes, please. Yes.
Unidentified Participant
Just that you have guided that we are targeting a revenue growth of 25% CAGR for next two to three years that takes us to say in three years to INR1,000 crore of revenue. So can you just give us broad you breakup like how the revenue mix would be amongst MCCS, API and operation and management.
Amit Raj Sinha.
Yes. Thank you. This — as of now, it is O&M is operational maintenance is around 9%, it’s there. But going-forward, but more or less in the operational O&M segment there may be an increase in this thing share. But at the same time, EPA also it will increase. But exactly the ratios we cannot, but it will grow on an average not less than 25%. So already we have. Yes, yes, please. Yeah, go-ahead, go-ahead, go-ahead. Already we gave the contribution. MCC is around 88% is there as of now and MCC and formulations and operations and management consistently it is 9% it is there, but it will pick-up momentum. And API also it will pick-up momentum. And MCC also it is growing, but MCC share it will come down because a drastic increase in APA and O&M. But overall, we’ll — we hope we’ll maintain not less than 25% growth.
Unidentified Participant
Okay. So the majority of growth would be coming from the API and O&M. Basically, they will be growing faster. Oh, yeah. So okay. So talking about API, like you are entering regulated markets. So do you expect that we are expecting in API? So what kind of EBITDA margins are you targeting?.
Amit Raj Sinha.
So we are targeting around 25% EBITDA margins, even little — even higher side also, but initially we are targeting for 25%. Okay. And can you give us rough like idea throw light on it, l
Unidentified Participant
Ike how would be our sales mix by market — by like regulator market, rest of the market in API, like would all of the API sales would be coming from regulated markets?
Amit Raj Sinha.
Yes. Of course, gradually, we intend to build-up to the regulated market, Rohan. But in the initial when the regulatory approvals are not in-hand, we would want to sell it to certain non-regulated markets as well. And of course, domestic. So it will be a mix initially higher in the non-regulated, but gradually as we get our approvals for products, we would have higher percentage going into the regulated markets?
Unidentified Participant
Okay. And can you like give us an idea about like what are the major molecules that we are focusing on to start with and how we want that to change over like next three to four years as we approach markets. At
Unidentified Participant
This
Amit Raj Sinha.
— at this moment, Rohan, we are primarily looking at pregablin, we are looking at metformin, we are looking at,, mechalazyne and. Yeah, also is there, but probably I’m just looking at certain molecules where we are looking to get into the regulated markets on ASAP basis.
Operator
Thank you. The next question is from the line of Arian Sarda from Investments Limited. Please go-ahead.
Unidentified Participant
Yes, sir. I can see that promoter pledging is at 44%. Earlier it was 23%. So I just wanted to know the reasoning behind that.
Amit Raj Sinha.
Yeah, the entire proceeds were utilized for investing in listing only, fruential only. There is no other. Only when the price was on lawyer side, it was on our side. Now this — we can take it back also, we can release pledge also so that it will come down, but we have not taken that action. When the price was on lower side, the pledge took place. That’s why on higher amount, it’s showing, but we can release also. We can release.
Unidentified Participant
So you plan on reducing it in the future?
Amit Raj Sinha.
Yeah. Right now, there is no requirement. Okay, let us — yes, yes, yes, we can reduce. Even right now we can reduce. We can ask them to release some shares.
Unidentified Participant
Okay, sir. But all the proceeds, one good thing is only all the proceeds invested into the company only. Right. Okay, sir. Thank you
Operator
. Thank you. Thank you. The next question is from the line of Garema from Carsal Limited. Please go-ahead. Y
Unidentified Participant
Eah, hi. Am I audible?
Operator
Yes, ma’am.
Unidentified Participant
Yeah. So my first question is, what is the revenue contributed from your top-five and top-10 customers?
Amit Raj Sinha.
Your top-five customer cities around 43%. Top-10 is around 60% revenue. And we have around 350 customers are there in this year itself, even all put together, if you see around 500, but it is so highly this thing very various customers are there, not dependent on single customer kind or only few customers like that.
Unidentified Participant
Okay.
Amit Raj Sinha.
43.98 is first of 5% and 10% is around 60%. 10 customers are around 60%, top-10.
Unidentified Participant
Okay. One more question. As you enter a regulated market, do you expect APIs to contribute meaningfully to revenues and also what EBITDA margins are targeted for this segment?,
Amit Raj Sinha.
Yes. The targeted EBITDA margin is initially 25%, we are targeting EBITDA margins. Okay. And what about EPIs? APIs. Yeah. Yeah, already. Now we have already given is there and, there are different products are there. Even we can we some other products also are in the pipeline. We are in the process of filing. Then wherever there is a good market and pricing is there, we just wanted to enter that
Unidentified Participant
Just last question, who are the expected customers for the CCS plant
Amit Raj Sinha.
For CCS, all our existing MCC supply — MCC customers, they’ll take as in already call told, one-eighth or one-tenth of their MCC requirement would be there for CCS and they’ll take it from us once our CCS plant is ready.
Operator
Thank you. The next question is from the line of Saket Kapoor from Kapoor; Company. Please go-ahead.
Unidentified Participant
Yeah.. Thanks, and thank you for the opportunity. Sir, firstly, as you alluded to 25% growth for the coming two years, the — how should the — then the O&M business growth be factored in that has a higher CAGR. And in addition to that, any new plants we have added from the existing customers and what should be the revenue contribution for the coming year? What should be the pipeline exactly? If we were at INR41 crores for the last year. So where should things be if you could just give some color on the same.
Amit Raj Sinha.
Yeah, segment, there is a very good opportunity sir there this year anyway that is we are expecting around 75 CR, 75 ATCR. Doubling of the same set from earlier already we have seen from 9 to, 13 to 26 and to 35 to FY ’25, it was 41%. So this year FY ’26 in our projections, we have targeted for that, but let us see, even we will reach or even we can exceed it also. It is just getting the contracts. If any good contract is awarded, then it will exceed also the target.
Unidentified Participant
No, sir, if you look from the existing customers that you are eyeing doubling of the same or is —
Amit Raj Sinha.
Yeah, it is a mix. So naturally, wherever we are servicing our customers, there the chances or the opportunities to get-in is much more because they have already experienced the Sigachi service. Wherever else, we are not really in a position to service our customers where we are yet to kind of break into the bid system, we are kind of pushing in so that we get into that system and we are able to service their complete group.
Unidentified Participant
Yes, sir. And secondly, sir, when we look at the CWIP last year, I think so the — we have made major investment. Our last year closing balance was INR96 crores. And in the plant and machinery, for the last two years, we have already spent closer to INR120 crores. So what kind of increase in the asset turnover is expected from these? And majority of this fund, which are the assets that we have built over a period of time that will contribute to the top-line and bottom-line.
Amit Raj Sinha.
Yes, yes, Mr Kapoor. Yeah, this is — we have — that majority of the investment invested for the expansion at Dahej and which is as a result of which from 14,000 metric tons capacity to 21,000 metric tons that has been increased. And asset turn, it will gradually now recently, we have completed the expansion and then last quarter we have seen there is a growth and previous quarter also we have seen a little growth in the volume consumption as well as the revenue growth. And slowly it will — asset turnover will give up to three to four times.
Operator
Great. Thank you. Thank you. Ladies and gentlemen, you requested to limit your question to two per participant. If you have a follow-up question, I would request you to rejoin the queue. The next question is from the line of Manjal Shah, who is an Individual investor. Please go-ahead.
Unidentified Participant
Yeah. Thank you for the opportunity and congratulations for a good set of numbers. Amit ji, I just wanted some light on API. So basically, looking at the Timax numbers, the API revenue contribution has been INR29 crores this year. So sir, how are we planning to scale this up because the revenue what I am seeing is that from FY ’24, the revenue was INR57 crores. And this year the revenue has come down. So sir, if you can just give a roadmap on how are we planning to move ahead with the API segment?
Amit Raj Sinha.
Thank you, Mr Shah. So what I’ll tell you, in August ’23, we acquired the facility. So then at that moment after acquisition, there was a drive-to take it up to full capacity and sell it in domestic, sell it to the intermediate distributors or traders as well. Now gradually what we realized was that we had the sales in FY ’24, but we really didn’t add-up any reasonable margins. If you see the figures, we were — we were negative like and towards the end of that year, when we kind of rethought the whole plan, we said we might as well let go business where there is minimum or low margins and focus and concentrate on better products, better markets, better customers. And in doing so, we let go a lot of business which was technically meaningless.
And that is the reason that you see that FY ’24, we had good top-line, but we were bleeding. This year we have had a much lesser top-line, but we are positive . So our focus, you can see that there was a change in focus, which we did in the FY ’25.
Unidentified Participant
Okay. So sir, if just for the basis of bookkeeping, so if we have done INR29 crores of sales in API, sir, what has been our EBITDA? EBITDA.
Amit Raj Sinha.
Yeah, it is around one second. I’ll just give you the exact, we earlier last year there was a this thing bottom-line was negative and this year there is a pause to and EBITDA when we see the EBITDA so is there any specific data figure you are looking at, Mr Shah.
Unidentified Participant
Sir, basically, what I’m trying to see is, sir, we have been talking that on the API segment, in the current year, we firstly, we were planning to push in for nine CEPs for Europe, if I’m not wrong, right? Yes. So basis the call you mentioned that out-of-the four CEPs, we have received one approval for the HCL. Yes. Even you have — you mentioned that you are segmenting your APIE sales so that we receive good margins. Okay. Yes. So I’m just saying over our margins.
Amit Raj Sinha.
Yes, sir. Manjal sir, it is 20% is there EBITDA, 20% is there this year.
Operator
Okay. Thank you. The next question is from the line of Himanshu from Pinpoint Asset Management. Please go-ahead.
Unidentified Participant
Yeah. Hi, sir. Thanks for the opportunity again. Sir, I want to understand that if I catch it correctly that we are doing — we are expecting a 3x to-4 times asset turn-on the CCS plant, right? Yes. So for a INR90 crore plant, we could have achieve a peak revenue potential of INR300 crores to INR360 crores yes for a period of time, please. Yeah, yeah. So sir, if I look at like FY ’27, so because we are currently at blended, we are at 90% for MCC and so that could lead to what maximum potential you could look at for revenues. See, October ’26 CCS revenues are going to start 26 commencement of CCS project. So you are looking at what after the 30% utilization in first year?
Amit Raj Sinha.
Yeah. First year, it would be around 35% over a period of two to three years, two years will consume the total capacity. And after that another two years it will take to reach asset turn of three times, three times, three or four times.
Unidentified Participant
Okay. Okay. So sir, on the MCG front, what we — we are currently at blended 90%. So we are looking at what maximum you can take-up this to MCC or only MCC. Only MCC, see, blended 90% is there, but that is once the movement CCS and API increases, it will — the mix — will segment mix will change or it will maintain more or less even around 80% to 85% would be there, around 80%, 75% may be there the mix of MCC. Because the mix of the portion of API and O&M will increase so that it may come down little. MCC may come down little yeah, yes, that I understand. But on just MCC revenue alone, so currently capacity utilization is 90%. So what is the maximum utilization that we can take this to
Amit Raj Sinha.
? Maximum, see, current capacity utilization is around 85% is there, 85%, yeah. Nearly in unit-wise, if you see around Dahej, 85% is there and Jagardia it is 85.68% and Hyderabad, it is around 95% is there. And this one in added capacities right now in capacities, if you see 19,100 is the current year capacities utilization and we can go easily up to 21,000. From 21,000 onwards, we can augment and then we can increase the capacities up to 25,000 tonnes. And also CCS capacities and one more even the further expansion also will take place in MCC. So we can assume like current maximum potential for this MCC, we have like around INR450 crores because we did INR410 crore from, let’s say, INR409 from this year. So if a more 5% to 7% increase would lead to what, INR450 crore INR440 crores for MCC by FY ’27, even more than that. FY ’27, that is — definitely it is higher than that.
Unidentified Participant
Yeah, just from NCC.
Amit Raj Sinha.
No, yes, yes. Only MCC also it will — we can increase up to 25,000 metric tons per annum. Yeah. Thanks. Small capex additions.
Operator
Thank you. The next follow-up question is from the line of Dinesh from Finsight. Please go-ahead.
Unidentified Participant
Hello, sir. Thanks for giving me another opportunity. My question is on the same line, sir. Can you just explain what would be our capacity, say, total capacity three years from now? Like I know we are doing a lot of capex, but from 21,000 to 25,000, can you just explain that progression?.
Amit Raj Sinha.
So Dinesh, I’ll tell you — I’ll tell you that. See, like the CFO explained, you know, while we touch our installed capacity, the plant — at the plant-level, we are always debottlenecking to see how is it that we can augment capacity by reasonable small capex you know, by adding in a dryer, by adding in a blender, by something like that, basic plant-level activity that is very small capex. Now by this, we are looking to add-up capacities to the tune of nearly 25,000. While we do all this, we will be looking at the bigger-picture, bigger market to see if there is a scope to add-in more capacities, having a new plant wherein we could add more capacities. But that is subject to future lookout and thoughts. So maybe it is not at this moment, but we will look to see if there is scope for added capacities, we will bring in added capacities.
Unidentified Participant
Okay, that sounds good, sir. Sir, last question from my end. As you mentioned, we are across different industries, right? So pharma and others. So is there any margin difference with respect to the products which you sell across these industries or it remains the same.
Amit Raj Sinha.
And so which we are primarily in pharma. If you look at our breakup, most of the revenues are coming in from the pharma industry itself.
Unidentified Participant
Okay. So we are not getting into any other industries, right? I mean like there is scope, right? I mean, I see there is other players into other industries as well and there are — so like just — I wanted to understand the thought process here, like are we looking into getting into other industries, upwards from pharma?
Amit Raj Sinha.
So Dinesh, we keep exploring options, but we don’t really get into it until we understand the complete five model of substitute the purchasing power of the customer and all that. So we keep exploring to see if the product has an application in a new industry, but we don’t really jump-in because the moment we jump-in, somebody else is ready to take my position in the pharma industry where my kind of leadership is already cemented. So I don’t really let go my customers here. If at all, then we need to probably build-up capacities to cater to that segment.
Unidentified Participant
Okay. That sounds great, sir. Thank you very much. And all the best.
Operator
Thank you. Thank you. Thank you. Thank you. The next question is from the line of Shubham from SIMPL. Please go-ahead. MR. Shubham, I would request you to unmute your line and speak, please.
Unidentified Participant
Hello, am I audible?
Operator
Yes, sir.
Unidentified Participant
Yeah. My first question was on our O&M segment. So first of all, did we add new customers in Q4? And actually I heard that we are expecting to double the revenue this year for O&M. So that means that we would almost need to add like double the customers we have currently. So for that, do we have any like pipeline as sort of now? Like are we in talks with more customers? Like can you just give more color on that
Amit Raj Sinha.
. Shubham. See, I’ll tell you, sale is a continuous process and so is business development. So there is always a sales pipeline. There are always potential customers. There is always a bidding process which is going on, negotiations going on. Sometimes we win, sometimes we don’t win the bids. So there is never — in any business, there is never an opportunity where we just sit-down and say that this customer is good and we will not do anything more. Now in terms of increasing our O&M revenue by a reasonable percentage, we are targeting Middle-East where the O&M is much deeply penetrated where the overall business model itself has O&M part of it. So we are looking to see how is it that we could kind of get into those business wherein we bid for it and we win it so that we are able to run those specific plants in the Middle-East. That has been our focus and that is what is going to drive major portion of our growth in O&M.
Unidentified Participant
So how — like how far are we along that like do we expect to — I think as of now, we’ve not materialized
Unidentified Participant
Anything in Middle-East, right? So like could you just give any color on that? So how far are we there?
Amit Raj Sinha.
So, until we don’t cross the finish line, we are still not there. It is difficult to say how far we are. But I hope you to in this year though. Yeah, we are looking to finalize and have some businesses in the Middle-East this year itself. But until we don’t cross the finish line, we haven’t yet completed.
Unidentified Participant
Okay. And how is like the same outlook for the domestic market?
Amit Raj Sinha.
Yeah. Domestic market also we have certain set of customers where we are having our bidding going on, discussions going on negotiations going on. And as and when we bid, we will have a document brought out that we have won certain contracts and this is what is the timeline.
Operator
Thank you. The next question is from the line of Vineesh Barman from Power Infrastructure Limited. Please go-ahead.
Unidentified Participant
Yeah, hi. Thanks for taking my question. I have two. On the MCC, if you look at the last three, four years, we have seen like a steady increase in realization. Now I know this could be a part of price increases as well as product mix. And I just wanted to segregate these two. So can you help me understand that if you — for example, just for understanding, take, let’s say, your largest SKU on the commodity side and the largest SKU on the niche side in MPC. What would be the price increase on an average every year that you’ve seen in the last two years?
Amit Raj Sinha.
Yes. Hi. Hi, Abnesh. It’s a very complicated question. We have not done so much of an exercise to see — you know we see customer-by-customer to see if there is an increase in raw-material prices, we work to see that we pass it on to the customer. Sometimes the contract says that it is a CIF basis. So we have to encompass the ocean freight also in our costing. So there are a lot of components which really are become part of our pricing and the net which comes to us effective is after deductions of all those heads. So it’s very difficult. And a customer in a single consignment would invariably have different grades of MCC. So some of it would be priced probably at 200, some of it will be priced at 270, some of them much higher. So it’s a big combination and breaking it up into a product mix and a price rise,
I think would have to go back to Excel and see how is it that it breaks up over the last two, three years. Okay. So it’s even hard to — I just want to understand whether this is an industry where typically the customer is ready to give you like a 3%, 4%, 5% price hike every year or is this something that all the kind of EBITDA improvement happens by cost optimization and you are able to release — increase your realization only by-product. So Abneesh, this is a much better question to answer. This is an easier question to answer. I’ll tell you, see, cost optimization is, of course there in every industry. No industry has relaxed costing structures in-place. So cost optimization is the way to go-forward because competition is always waiting on the fence. There’s no doubt on that.
Now on the customer willingness to pay, it always comes down to what percentage of the expenditure is part of your product. So if I look at the total formulators expenditure held, a major chunk of it goes to the API. Nearly 60% 70%, sometimes even higher than that goes to the API procurement or the API cost, which goes as part of solid oral dosages. A very small percentage to the tune of 5% to 6% of the formulators cost goes into excipients. Yeah. Now in that 5%, whatever is the cost. In that 5%, if there is a 2% to 3% increase in the pricing, most often than not customers pay it because it doesn’t hinder their manufacturing and production process.
Unidentified Participant
Understood. This was clear. My second question is on, again, I mean, you mentioned that the industry is growing at 6.5%, you’re obviously growing at 20% plus. Clearly there is a market-share gain. I just want to understand in a little bit more detail, why are you gaining market-share from the competition? Is it based on your cost structures being in India and hence you’re able to bid better in the contract? And similarly, when it comes to like CCS, I mean, your customers would be buying CCS from some of the other players. So why would they shift?
Amit Raj Sinha.
Yeah. So it’s again a mix, Agnesh. I did indicate to one of our other investors here in the same earnings call that it’s a mix of old customer, old products, old customer, new products, new customer, new products. So if my old customer is there, old products, if those volumes continue to grow, we continue to supply them, of course, because our ingredient is part of their formula. So the old customer, while he is developing new formulas, he kind of in the formula, in the R&D, in the regulatory certification, he takes in our product to be filed in. So it becomes part of the new formula. So subsequently, over the next 10, 12 years when the formula grows and the business scales up in whatever size, our product continues to go in those formulas. No, my question was more on the new products. How do you gain newer customers like-new customers. So outbid your — yeah. So when a customer is developing formulations, we are part of his formulations to be able to supply him the grade he needs so that he can tablet it in the best formula.
Unidentified Participant
Okay, no, but that doesn’t answer the question, let’s say for example, let’s say for the example of CCS. How do you expect to gain market-share from a guy who’s already been there in the filing, who has already been supplying for so many years. So if somebody is already being supplying for
Amit Raj Sinha.
So many years, naturally, price is the point where we jump-in. That’s what I wanted to get to. So price is where you will basically so Abneesh, there is — there is always — there has to be a benefit commercially.
Unidentified Participant
Yeah. Understood. Last question is on the tariff. So are you supplying your products to the US and if yes, that whatever 10% tariff would be there or I don’t know whether it’s there or not, is it absorbed by you or are your contracts FOB where you are able to pass it on entirely to the customers?
Amit Raj Sinha.
So Abneesh, right now, we have got some kind of change in volumes over the last quarter from the US region, but it is our subsidiary itself in the US who is kind of customer-facing. So we, at this moment are not absorbing anything on whatever are the tariffs which are coming in. We are looking to see how the customers can absorb it because the moment I reach-out, the customers are more than willing to push it on our back. So we have not really been forthcoming. So the customers are taking in the requirements. There is a change in certain volumes in the business in the Q4. But what we are looking to see is that if they’re going to import it, we take the tariff — we take-in the 10% and we put it on their pricing.
Operator
Thank. The last question is from the line of Manjan Shah, who is an Individual Investor. Please go-ahead.
Unidentified Participant
Thank you for the follow-up. Sir, can you just advise on what is the actual capacity for the EPA plant right now? And are we planning for any expansion there? And what is the utilization?
Amit Raj Sinha.
Yes, Monjal. The capacity for the API plant is 100 KL. We had already documented that we will be looking at an additional capex for additional 150 KL totally adding up to 250 KL. Unfortunately, that capacity expansion has not yet commenced. Okay. And sir, out-of-the 100 KL, what is the overall utilization average, if you can just share with us? Okay. So if I put it on a complete year basis, it would probably be around 35% to 40%.
Unidentified Participant
Okay. And sir, one more question, just can squeeze in. Sir, we are putting — we are starting an R&D plan for the API segment. So any particular sort of like Onco or any particular segment we are targeting for such R&D?
Amit Raj Sinha.
No, we are only having a separate R&D. R&D was earlier there, but it was just a R&D which was part of the manufacturing. We realized that the documentation and CEP approvals would were taking a bit more time than anticipated. So we said we might as well have an R&D with focused people and team so that our documentary approvals and regulatory filings could be speeded up. No specific segment target at this moment. We have to kind of first look at those nine CEPs, which we are supposed to be filing and then subsequently, we look at other new molecules.
Unidentified Participant
Okay. So we have currently filed four CVC and we’ll be filing more five CPs during this calendar year, correct?
Amit Raj Sinha.
Yes, that’s right.
Unidentified Participant
Okay, okay. And we are not targeting any specific therapeutic areas right now.
Amit Raj Sinha.
Not at this moment, sir. Okay, sir.
Unidentified Participant
Got it. Thank you, sir. Thank you. T
Operator
Hank you. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Amit Raj Sinha.
Thank you. Yes. Thank you for joining our earnings call. We trust we were able to address your questions effectively and offer meaningful insights into our business and growth trajectory. As we move forward, our focus remains on driving operational excellence, strengthening our core and creating Long-term value for all stakeholders. We are committed to delivering profitable growth and enhancing shareholder returns in a sustained manner. For any additional queries or further information about the company, please feel free-to contact our Investor Relations Manager at Go India Advisors. Wishing a pleasant evening. Thank you
Operator
. Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your line