Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
SRF Limited (NSE: SRF) Q4 2026 Earnings Call dated May. 06, 2026
Corporate Participants:
Nitika Dhawan — Head of Corporate Communications
Ashish Bharat Ram — Chairman & Managing Director
Rahul Jain — President, Chief Financial Officer
Analysts:
Sanjay Jain — Analyst
Arjun Khanna — Analyst
Nitesh Dhoot — Analyst
Rohit Nagraj — Analyst
Unidentified Participant
Naushad Chaudhary — Analyst
Keyur Pandya — Analyst
Unidentified Participant
Ankur Periwal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to SRF Limited Q4FY26 earnings conference call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Sanjay Jain from ICICI Securities.
Thank you. And over to you, sir.
Sanjay Jain — Analyst
Thanks, Shikra. Good morning everyone and thank you for joining us today. We at ICICI securities are pleased to host SRF Limited’s Q4 and FY26 results conference call. We have with us Mr. Ashish Bharatra, Chairman and Managing Director, Mr. Samir Kashas, President and Chief Financial Officer at SRF Limited. I would now like to invite Ms. Nitika Dhawan, Head of Corporate Communication at SRF to initiate the proceedings for the results console. Thank you. Over to you, ma’. Am.
Nitika Dhawan — Head of Corporate Communications
Good morning everyone and welcome to SRF Limited’s Quarter 4 and Financial Year 2026 results conference call. We are pleased to have you join us today. On the call we have our Chairman and Managing Director Ms. Ashish Paradram along with our President and CFO Mr. Sameer Kashar and Ms. Suvenda Singer, Senior Vice President, treasury and Investor Relations. To begin, our CMD will share insights into the company’s performance during the financial year 2026 followed by an overview of our strategy, business outlook and growth plans.
After these remarks, we will open the floor for a Q and A with our PSO and IR head. Please be reminded that any statements made regarding our outlook are forward looking and are covered by a disclaimer included in the earnings presentation shared with you earlier. Without further ado, I invite our CMD Mr. Ashish Bharatra to deliver his opening remarks.
Ashish Bharat Ram — Chairman & Managing Director
Thank you Nitika. Good morning to all of you. I extend a warm welcome to you and thank you for joining us today for the earnings call. I trust all of you have had the opportunity to go through our results and the presentation shared with you earlier. The global operating environment remains defined by volatility, uncertainty and complexity to VUCA World. Compared to this time last year, conditions have not materially improved. If anything, they have become more challenging. Persistent geopolitical tensions, particularly the ongoing conflict in the Middle east have continued to disrupt global trade flows and supply chains.
As a company operating in chemical intermediates, we have felt the impact of these disruptions. Across logistics, supply chains and market access. Having said that, the company has made tremendous efforts in finding answers to the challenges that we’re facing. I believe that we will navigate through these. Due to the resilience of our team, our focus will remain firmly on disciplined execution, operational excellence, strategic investments across our businesses. Let me now share with you my thoughts on the business performance in the fiscal year gone by and the growth opportunities that lie ahead.
Fiscal year 2026 unfolded against a challenging backdrop, testing resilience while opening avenues for long term growth. During this period, SRS revenue increased by 7% to 15,787 crores compared to the corresponding period last year. The company’s operational revenue rose by 29% to 3,008 crores over the current period last year and the company’s PAT increased 47% to 1,835 crores over the current period last year. I’m proud to share that this has been our second best performance on an overall basis in our history.
Moving to my viewpoint in the performance and outlook of each of our three market leading businesses now I’ll begin with the chemicals business. During the fiscal year 2026, the chemicals business achieved a 16% increase in revenue amounting to Rupees 7779 crores. Despite challenges, our fluorochemicals business delivered a record year in terms of both realizations and volumes across plants. Operating performance remains strong with optimal utilization. This is despite our sales into the Middle east where we traditionally have a strong presence which were impacted in the fourth quarter.
As a de risking strategy, we have developed new markets and I am hopeful that in the near future the Middle east situation will improve. SRF is a leading global player in HFCS and HFC blends. We are undertaking incremental capacity enhancements to strengthen our market position aligned with the potential HCFC quota. Under the Montreal Protocol, the required environment clearances are already in place. As communicated earlier, this will take our HFC capacity beyond 65,000 metric tons per annum. Last year we spoke about our investment in the next generation refrigerant gases.
Based on the tremendous work done by in house technology team, I’m pleased to say that we have developed a global benchmark process both on capital and operating expenditure sides that will be noninfringing in view of the anticipated transition to the next generation gases and the interest shown to us by potential customers, the Board has revised the capex approved in October 2024. We will now be investing approximately 2,300 crores at our new site in Odisha over the next two years. This investment envisages fourth generation gas capacity of 20,000 metric tons per annum and includes backward integration into 30,000 tons of hydrofluoric acid.
Along with investments in electronic grade hydrofluoric acid, the product mix will comprise HFO 1234 YF, HFO 1234ZE and HFO 1233 ZD. This reinforces our strong commitment to building a globally significant refresh and gas business. I’m also proud to state that just as we did with the launch of our HFC many years ago, our investment in the HFO portfolio will ensure that India remains self reliant in this critical segment. The chloromethane segment delivered stable performance during the year in fluoropolymers.
Sustained efforts to ramp up PTFE capacity have begun to yield positive outcomes including key account approvals from leading global customers. We are pleased to note that our investments in specialty Flora polymers are progressing as planned and represent a meaningful long term growth opportunity. To support this strategic direction, we have further strengthened our leadership and technical teams by onboarding experienced industry professionals enabling a continued move up the value chain. I believe that we’ll see a significant change in the product mix as the year unfolds.
Furthermore, our project with the Chemoz company is progressing well and we expect to complete this high margin project on time. In my view, this investment is the start of a relationship that can develop into a far more significant opportunity for us. I’m confident that the new CAPEX investments in fourth generation gases and specialty fluoropolymers position the Flora Chemicals business to sustain and further accelerate a strong growth trajectory in the specialty chemicals business. The year was marked by stress in the innovative agrochemical value chain and muted offtake of impacting demand visibility.
Pricing pressure was seen across value chain with aggressive participation from Chinese players impacting both our markets and customers end markets. Even in this environment, we were able to sustain our business base through a continued focus on cost control, operating efficiencies and disciplined execution. Our approach has been to defend market share in an actual manner and avoid losing business to overseas competitors as we believe industry pricing will normalize to more sustainable levels over time.
I would like to take this opportunity to also share my perspective on how I see the macro elements of this business. The pricing of a specialty product over time will always move to a more commoditized level. There have been a lot of questions about the drop in pricing for dfpa. While pricing levels may have reached unsustainably low levels, we continue to generate healthy returns through ongoing process improvements and technology interventions implemented over time. The key for this business is to ensure a strong pipeline of intermediates and AIs which can replace high impact molecules such as DFPA.
Today, our pipeline remains extremely robust across both AIs and intermediates which have the potential to replace products like DFPA in its early stage. However, the pace of rollout of these products will depend on customer market assessments, progress in the registration process and the pricing dynamics of their end product visible generic alternatives that said, industry cycles inevitably evolve over time. We must therefore remain patient yet agile, positioning ourselves to effectively capitalize on this opportunity as it unfolds and unfold it will on our pharmaceuticals Investment strategy Intermediate Strategy Our focus has been on this.
Our focus on the segment continues and while we will grow our agrochemicals business, we remain committed to scaling up our pharma segment faster and increasing its share of the overall portfolio. Against this background, we have our Pharma intermediate plant number two coming up. Moreover, our pipeline of molecules has expanded meaningfully over the past year. Importantly, we are moving up the value chain with participation not only in key starting materials but also in regulatory starting materials.
That said, as typical in this industry, the pace of commercialization will depend sorry will depend on our customers. Product Launch Timelines Our announced CAPEX projects at the age in both pharma and agro are progressing as planned and we expect to start seeing the benefits during the year. Going forward, we’ll also continue to focus on operational improvements to build a more competitive cost base. SRF’s Chemical Technology Group has consistently demonstrated its ability to overcome complex technological challenges, enabling timely scale ups, improved operational outputs, cost efficiencies and successful new product launches.
As product complexity increases and development timelines continue to compress, CTG has strengthened its capabilities and support systems to remain future ready. During the year, R and D activities covered over 50 molecules, many of which progressed into product process development. More than 35 molecules advanced to scale our studies with over half successfully commercialized across multipurpose and dedicated manufacturing facilities, reinforcing CTG’s role as a key enabler of business growth. Aligned with evolving customer and market requirements, SRX continues to invest strongly in R and D to build future ready value propositions.
With capital and revenue expenditure of 160 crores incurred during financial year 26 SRs dedicated R& D facilities, including development labs and pilot plants bring together a robust pool of scientists and engineers to drive innovation and technology led dealership. In FY26 CDG filed 40 patents taking a cumulative total 521 patents filed while 5 patents were granted during the year, increasing the total number of patents granted to 156. We have a fundamentally strong outlook on our chemicals business.
Looking ahead Sorry Looking ahead While the operating environment remains volatile, we believe that the company should be able to deliver growth in the range of 15 to 20% in the coming year. Turning to performance films and Foil, during fiscal year 26 the business reported revenues of 5,764 crores, registering a growth of 4% over the previous year. The quarter four saw a recovery in the business across all geographies with operating performance demonstrating steady improvement. Just like other businesses, DFP faced significant supply challenges in quarter four arising from the ongoing geopolitical situation that led to extreme volatility in raw material prices.
Despite these headwinds, SRA was able to secure supplies and capitalize on select market opportunities arising from the volatile environment. In quarter four, warped margins have begun showing early signs of recovery supported by price improvements in select Southeast Asian markets. Following China’s recent anti involution measures, operations in South Africa continue to perform well and remain stable while Hungary also exhibited initial signs of recovery during the quarter over. Overall, I believe the industry cycle has largely bottomed out, though competitive pressures persist, our value added products journey continues.
I’m happy to announce the successful startup or prior runs of a Kapla plant marking our entry into the capacitor grade Bopp films which will be capitalized shortly. The BOP line remains on track and is expected to commence production in July. This project strengthens our existing Bopp substrate and VAP portfolio while opportunities in the innovative polyolefin BOP substrate Based on the current demand supply outlook, we have decided to indefinitely defer the second BOPP line that was earlier planned for 2027.
Instead we are investing 180 crores in a state of the art PA line that’s polyamide line expected to be operational by September 27th. This will be India’s first of its kind Bhopa line based on simultaneous stretching and then will benefit significantly from import substitution. This will be the first in our aluminum point plant. The ramp up has gathered pace with a sharper focus on exports to Europe and the us. We’re also progressing well towards approvals for high end applications including aseptic cartons.
Sustainability continues to be a core focus and is embedded across all aspects of operations. The business is expanding its range of sustainable products including solutions for mono family structures, Bilam structures and PCR based films. We remain firmly committed to advancing sustainability initiatives anchored in the 3R framework of reduce, reuse and recycle. In financial year 26, the technical textiles business recorded a revenue of rupees 1877 crores. Within technical textiles, NTCF continues to remain a stable cash generator.
We’re seeing growth in the polyester diocort fabric segment and the new dipping line at Manali is expected to be commissioned shortly. Post commissioning we intend to ramp this business more aggressively. The melting fabrics business has now begun showing traction again post the rationalization in US Tariffs. This should bode well for the future. Advancing sustainability remains a key focus for the technical textiles business. During the year the business increased the share of renewable power in its overall energy mix, further strengthening environmentally responsible operations.
In financial year 26, the coated and laminated fabrics business reported revenues of 366 crores. SRF continued to maintain its leadership in the domestic coated fabric segment during the year while demand softness in food grain liners presented near term challenges. The impact was offset by effectively offset by increased sales of other value added products. The business also sustained its price leadership, reinforcing its competitive positioning in the market. On ESG. Corporate citizenship and sustainability are firmly embedded in SRF’s business strategy and decision making.
This integrated approach drives efficient resource optimization while enabling meaningful participation in the circular economy. A strong emphasis on transparent and robust sustainability disclosures allows the company to systematically identify and assess ESG risks, track progress and implement a structured long term roadmap for continuous improvement. SRS sustainability efforts have received international validation. In FY26, the company’s facilities in Govindipundi and Viralam La in Tamil Nadu were awarded the ECOVADA Silver Medal by one of the world’s most respected business sustainability rating agencies, reinforcing SRF’s commitment to responsible and sustainable operations.
Further detail on SRF’s ESG journey priorities and progress will be provided in the annual report. During the year financial year 26, the SRF foundation strengthened its education and skilling efforts through an integrated model spanning school transformation, digital inclusion, institutional education and employability enhancement. Education initiatives cover 327 government schools across 38 locations in 13 states and one union territory, benefiting over a lakh of 30,000 students through model school interventions, digital programs, capacity building of more than 3,000 teachers and 190 headmasters, and early childhood development reaching over 25,000 children across 314 anganwadi centers.
A key milestone was the completion of the SRF school in Baruch, with the first phase commencing by June 26 and a planned capacity of around 1600 students alongside continued operations of Sr Vidyalay Manali and Sr Vidyalay Gurugram serving over 800 students. In parallel, employability was strengthened through vocational and green skilling initiatives including the basic electrician training program across 13 centers in several states training 1180 youth. In conclusion, we are in an increasingly vuca global environment.
Currency movements have remained particularly dynamic on Forex. The company has followed a prudent strategy of covering future exports through long term hedges. However, the sharp and unprecedented depreciation of Indian rupee during the year has led to mark to market losses on these forward positions impacting financial year 26 results and will extend over the near term as well. However, this short term pain should be seen in the context of of our higher export and domestic pricing which is generally based on import parity and will this continue to benefit will thus continue to benefit from a weaker op.
Our planned CAPEX for financial year 27 stands at approximately 2,500 crores aligned with our long term growth priorities. Reflecting on financial year 26, I’m extremely proud of how the company has positioned itself across businesses and geographies. The business models we have built are resilient and well designed to create sustained value for our shareholders. Despite all the uncertainties, I remain optimistic for the year ahead. Thank you to all our shareholders for their continued trust and confidence in our long term vision.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question they press Star and one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Please note in order to ensure that the management will
Nitika Dhawan
Kindly limit your questions to two per participant.
Operator
Should you have a follow up question, please
Nitika Dhawan
Rejoin the queue.
Operator
Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Arjun Khanna from Kotak Mutual Fund. Please go ahead.
Arjun Khanna
How do you see the impact to our business in terms of. I’m sorry to interrupt.
Operator
Mr. Khanna, can you please repeat your question?
Arjun Khanna
Sure. I just said thank you so much for this opportunity and congratulations for a great set of numbers. I think we have closed the year very strongly. As we had indicated in the conference calls earlier. The first query is regarding the availability of raw materials etc. How do you see that impacting our business? On the chemicals, technical, textiles and packaging side, do you see envisage any disruptions from the same. I know we have talked of 15, 20% to 20% growth in the chemical side of it.
But how much have we assumed as the impact from this?
Rahul Jain
Yeah, hi Arjun, thanks for your question. A couple of things we’ve got going here together, so let me just try and take them one after another. So, in terms of impact of raw material across the businesses, I think the first indicator I point you to is just the Q4 outcome. Despite all the disruption we’ve seen, I think we’ve had a fairly standout result and I think that just speaks strongly of the team’s ability to be able to ensure supply chains have remained unimpacted. For the large part, potentially the single biggest area of impact we could have seen was in our performance and foils business.
And that’s where I think the team scrambled really quickly and early. As soon as the first indicators appeared to ensure that we had alternate supply chains in place. These have been robust and held strong for SRF for quite some time and our ability to continue to leverage that just ensured we had absolutely no impact. We were able to run through Q4 with literally flat out. So we’ve had more shut days. Our expectation is even in the current quarter we don’t see impact to that business, which is probably the most severely impacted potentially across raw material supplies, across our portfolio of businesses.
So that’s the view on performance and foils on chemicals as well. I think we’ve seen some disruption in terms of our ability to sell sell ref gas into the Middle East. So for about half of the quarter we did see some impact in our ability to ship to those markets, but outside of that there’s been really nothing else from a chemical standpoint that’s impacted us at a margin level pretty much. I think our expanding global footprint also puts in place the ability to counter such measures and I think the outcomes we’ve seen overall on the FCAS side just kind of pointed to the fact that despite the Middle east disruption, we were able to find countermeasures in other markets.
Possibly if we were in a place where the shipments weren’t impacted, we would have seen an even better quarter. Having said that, in terms of outlook, I think the current view is that we believe there are some solutions showing up in terms of ability to ship back into Saudi. So that will hopefully ease off in the coming weeks. And that should probably take care of about more than half of what was going into the Middle east market. So I would urge you to look at it as a portfolio set of markets that we are kind of supplying into and therefore the Middle east impact is kind of well set offset by our ability to ship to other customers.
Arjun Khanna
So Sameer, can you bring out just on the first question, could you talk about how much business we lost from the Middle east in the fourth quarter? FY26
Rahul Jain
Yeah, I don’t think we’ve lost anything yet. If you. Okay. Comments Completely we lost. It’s a shift from the Middle east into other markets. Our ability to reposition I think has ensured that we stayed strong in terms of the outcome for Q4.
Arjun Khanna
Sure. The second query is regarding the CapEx we have announced on HFCS. So we have announced a 88 crore debottlenecking exercise. Could you comment? Because the document available online suggests what we have put to the exchange says capacity is beyond 65,000 metric tons per annum. So what is it that the rated capacity would be post this expansion and what was the capacity before this expansion?
Rahul Jain
Okay, so I think what you’ve seen in the communication to the exchange points directionally to where we believe we will land. In terms of capacity we believe we will be north of 65,000. That’s our current estimate as you probably are well aware. To precisely compute where debottlenecking will land us. It’s fairly difficult to be overly precise but I think we are reasonably certain we are going to be north of 65,000 and I will leave it at that. You guys have a bunch of models already I think in terms of where you believe we are, I leave you all to compute that math out to say that you will land at 65,000 north of that once we are done with this exercise.
I also want to point out the fact that we’ve been debottlenecking for some time. It’s not something new. You’ve heard us talk about this in previous calls and other sides of the chemicals business. So this has been an ongoing activity. The only reason we call this out specifically is that this is a significantly larger investment than what we typically made in that space and therefore we went to port to seek approvals.
Arjun Khanna
Sure. And in terms of the allowance of HCFC 22 or R22 during the year baseline years essentially calculation suggests we are out. We would have about 20 odd thousand tons available to us. Is that the right understanding? If you are producing R32?
Rahul Jain
So I’m not going to directly point you towards that but let me say a couple of things. So while the whole situation on HCFC is still uncertain, we’ve seen positions from other markets. We don’t have direction insight from the government of India as yet in the way which they will go. I think you heard us say in the past that it would seem that the government would probably go a similar way as maybe the other markets what we saw in China and the us. So whether that will entitle anyone to quota and capacities later on is a tough question to predict and I don’t think there’s been anything direction to suggest otherwise from the government in this interim period.
Arjun Khanna
Sure. So essentially we are doing the capex in the hope that we would get that allowance.
Rahul Jain
Well, let me put it this way. We’ve seen very strong demand through the second half of this year across our clients. So we are really putting up the debottlenecking activities around ensuring we can fulfill that demand. What it will also do simultaneously is that should the government decide to consider HCFC as well, it will ensure that we can completely avail of our quota. So it’s more positioned with solving current demand that we are seeing and which we expect to stay strong in the coming quarters.
And like I said, it will also ensure that we cover any quota entitlement that we may get should the government decide to go down that path, which like I said, the opening is uncertain at this point and that for some time hasn’t changed.
Arjun Khanna
Perfect. No, thank you so much for this. I will come back in the queue but if I don’t get a chance again, thank you so much and wishing you all the best.
Rahul Jain
Thanks Arjun.
Operator
Thank you. Ladies and gentlemen, kindly restrict yourself to two questions at a time. In case of follow up questions, please rejoin the queue. The next question is from the line of Nitesh Duth from Ananthrati Institutional Equities. Please go ahead.
Nitesh Dhoot
Hi team, good afternoon and thank you for the opportunity and congratulations on a good set of numbers. My first question is again on the HCFC and HFC piece. So again I mean the way it came out is, you know, on the way the quotas will be allocated probably is still not. Still not very clear. So what I wanted to ask is whether it will be on the basis of the HCFC production, which in a way favors the incumbents, or on the basis of production capacities by 31st December 27th, which probably favors newcomers as well.
So any new there whether the new entrants without the HCFC or HFC history would be allowed or would be completely excluded. Any thoughts around that?
Rahul Jain
Yeah. Hi Nitesh. So I’d almost first urge you to, if you haven’t heard the commentaries in previous calls, to kind of just pick through that. I know our President Prashant did A detailed conversation with the whole community around our understanding on how the quota regime is going to work. Fundamentally, nothing has changed. So the baseline period and how it’s going to get computed across 24, 25, 26 is still the same. The government retains the right to consider HCFC from 2009 and 10. That’s the right that they continue to legally retain.
I think it’s safe to assume that the final view that the government will probably take will only become clear once we hit the end of the baseline period. So we should assume that early in 2027, once we kind of have known where production has landed for this year, the government will probably look at those outcomes and determine if there’s even a need to consider hcfc. I almost want you to point you to that direction. If HFC production is kind of fulfilled all of our domestic consumption needs, we could potentially be in a place where there is no such requirement in itself.
But that’s the right the government retains, just like all the other geographies, as per the Montreal Protocol and the Kikali Amendment. And nothing has changed on that front. And that’s the consistent view you’ve heard us say over multiple calls. So, yeah, I think those documents are available for everyone to read. There’s not a lot to be interpreted over there, but I would almost urge you to refer back to that. Beyond that, it’s tough for anyone to predict.
Nitesh Dhoot
Sure, sir, but I think the recent notification that came in on the 1st of April 26th, that pretty much made it clear that 65% HCFC is suddenly being considered right. So I think probably that thing is pretty much clear.
Rahul Jain
Yeah, Nitesh. My answer to that is, if you read that circular that came out in April, I think what the government was trying to do, and this is our view, was really two or three things. Number one, I think they were clearly calling out the fact and making people cognizant that new capacities that were coming up while they would be allowed in terms of environment clearance being granted, I think they were trying to call out and clarify to investors in the space to understand that it would still need to operate within the four corners of the Kigali Amendment.
Right. So, yes, there have been lots of. We understand there’s been lots of ask for environmental clearances. And this is the government’s reaction to respond to that. It does not talk about quotas anywhere. All it talks about is the fact that you need to have capacity up by 31 December 2027. It talks about the fact that you need environment clearance it talks about the fact that if you’re going to look to put up capacity now, we will ask you for a clear confirmation that you will indeed have that capacity up by 2027.
So I’m not sure that it points to the fact that there is HCFC being included in when they get to the quota calculations. If that’s a conclusion you’re reaching. I’m not entirely certain how. But our best understanding of what came out on April 1 is totally silent on quota and doesn’t indicate anything to that effect.
Nitesh Dhoot
Sure. My second question is on calendar year 27, which apparently is a free year. So, you know, I mean, just wanted a clarification on what exactly a free year is. Is it like a free. Free to all or is it only free to the incumbents, you know, to produce and sell? How does that work? You know, probably some understanding there would be very helpful.
Rahul Jain
Yeah, it is. So the free year, basically the free for all at the highest level, if you have to consider it basically Freeze gets applied January 1, 2028. So if, if someone for instance has capacity but does not have quota, they would still be entitled to sell during 2027. That’s all the free year means.
Nitesh Dhoot
Right. And so that would probably have some impact on the pricing. I mean, what would be your team? So your take on the same. Because there are too much of capacities that are coming in.
Rahul Jain
Yeah. So there’s a lot of announcements of capacity, but I think I would urge you all to consume that more holistically and with an understanding of what it takes to first set that capacity up. In terms of timelines, you know, realistically you’re at 18 plus months. There’s time to then stabilize and commission, which is a couple of months beyond that. So, you know, even if any of these capacities come up, you’re talking about potential impact of, you know, a couple of quarters maybe at best at the end of 2027.
Seem highly unlikely anything meaningful is coming on stream before that.
Nitesh Dhoot
Sure, sir. So this is very helpful, thank you so much and wish you all the best.
Rahul Jain
Thank you Nitesh.
Operator
Thank you participants kindly. Let’s take yourself with two questions at a time. Please rejoin the queue for follow up questions. Next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead.
Rohit Nagraj
Thanks for the opportunity and congrats on good FY26. First question is on the HFO and associated HF plant. When is it likely to be commissioned? And in terms of sourcing for flow as far, how are we placed and the HF plan, will it be completely, I mean the 20,000 metric tons of HA capacity will require the entire 30,000 or will be having certain contingency left for future requirements. Thank you.
Rahul Jain
Yeah. So first question or first part of your question? We’re looking at FEP 2028 potential timeline for commissioning. That’s where we are in terms of timelines for hfo. Let me take the third one first since those are related in terms of the HF capacity of 30,000 primarily that feed for the HFO plant itself. So significant part is going to get consumed over there. You also heard of us talking about VHF in our announcement. So the range of high end fast growth market needs that we’re seeing show up on that front and so part of the, part of IHF capacity will get utilized in our VHF facility as well.
Yeah, so that’s the, that’s the broad direction in terms of how the 30,000 tons of HF capacity is going to get deployed in terms of floor spa. As things stand right now, we are in a comfortable position. Needless to say, we continue to look for new opportunities from where we can source raw material. That remains ongoing and it’s pretty much continuing activity in the organization. But as things stand, you know, we don’t see any disruption or issues on that front.
Rohit Nagraj
Sure, thanks for that. Second question, you also mentioned that some of the shipments to Middle east were rerouted to other markets. Does that mean there is a change in terms of the dynamics in which Middle east is being served? Or is it that the shipments and other geographies will create at least some inventory position for the timing and which may impact our future supplies in the near term. Thank you.
Rahul Jain
I think the Middle east is probably underserved because of the current scenario that we’re in. The issue is about being able to get product into the market. Everyone’s belief at least is a significant part of that will come back very early this quarter. I don’t think we’re in a situation where we are oversupplied or stocked in other markets. Like I said in my earlier commentary, even about additional capacity, we are seeing very strong demand pull at this point in time. And so I kind of would dovetail both those comments and consume them together so that really we’re in a situation where I think we’ve got enough, you know, we’ve got enough order, so to say, and interest from customers which we are seeking to fulfill.
So I don’t think there are significant changes or stocking situations that have got created out of this it’s more about where we’ve been able to fulfill demand at this point in time.
Rohit Nagraj
Perfect. Just one clarification on the number.
Operator
I’ll come back. Thank
Rohit Nagraj
You so much.
Operator
Thank you. Next question is from the line of Arun Prasad from Avendest Park. Please go ahead.
Unidentified Participant
Good morning, everyone. Thanks for the opportunity. My first question is on the CVIP that we have in balance sheet at this point of time, roughly 2000 crores. What is the timeline at which this will get capitalized? And if you can kindly provide some color on the projects that will be capitalized in this year and next year? I’m
Rahul Jain
Sorry, Arun, I didn’t get the second part of your question. If you could just repeat that.
Unidentified Participant
So I was asking the breakup of the CVIP at this point of time in the balance sheet and when it will be capitalized in the project. If you can get your.
Rahul Jain
Yeah, okay. So you know, it’s across a set of. It’s across a set of projects that are going on. I don’t think I can just give you any, you know, one timeline that would answer. But major one,
Operator
Can you repeat please, even at article. Sir,
Rahul Jain
Can you hear me now?
Operator
Yeah. Please proceed. Thank you.
Rahul Jain
Okay, so there are a bunch of investments that are going to get capitalized through even the current financial year. There’s Bopp, the capacitor plant that you heard chairman speak about that’s expected to come through very early this financial year. There is the BOPP BOP line that’s coming through, you know, closer to the second quarter. We have the fluoropolymer side coming through towards Q3, early Q4 timeline. So yeah, and we will see the early investments on the COPA plant that our chairman spoke about come through as well during the first half of this financial year.
So yeah, those are probably the big ones. You also heard him talk about the Pharma Intermediate plant. So though that’s new, it’s not sitting in cwip. You will see that come through online.
Unidentified Participant
And safe to assume that many of these will take at least a couple of quarters to reach a ramped up stage or any approvals will take will push the revenue monetization, say more than two, three quarters.
Rahul Jain
I think that’s a fair assumption to work with. That’s what we’ve typically seen. Yeah, maybe on the fluoropolymer side. Well, there’s work happening in parallel and let me try and rephrase that answer. There’s a work happening in parallel even as these plans come online. In some areas we are able to secure a lot of customer interest early and do some amount of work with them to make sure we can crunch approval times. But for the most part I think your assumption kind of holds true.
Unidentified Participant
Speaking of the projects on,
Operator
Please rejoin the queue for follow up questions. Thank you. Next question is from the lineup, Noshad Chaudhary from Aditya Birla, Sun Life amc. Please go ahead.
Naushad Chaudhary
Yeah, hi, Hope I’m audible. Thank you for the opportunity. Just one thing from our next three to five years point of view wanted to understand a few media articles had indicated that we have roughly 10,000 crore rupees of investment plan at our Orissa side in next four or five years. So apart from the hfo, what, what other projects we have in the mind which we are evaluating and can come to this side in next three years?
Rahul Jain
Yeah, I think it’s premature to kind of conjecture about anything else but let me give you a sense of scale. The Orissa site is close to 300 acre site at this point in time we are probably developing a fifth or a sixth of it. For what we’re talking about on hfo, that site is largely going to be for chemicals. I think we’ve kind of been explicit about that. Now how that pans out beyond what we’ve initially thought about on HFO is to. So it’d be very premature I think at this time to kind of talk about what else would come over there.
But I think we safe to assume it would be largely in the chemical space. That’s how we are thinking about that location.
Naushad Chaudhary
And lastly on the PET chem side, would we be able to quantify in terms of how many molecules we have in the hand if it goes well, could be as equal to as your current largest molecule?
Rahul Jain
Well, there’s work that’s ongoing. You know, I’m assuming your question is directed more at the agro side. There are at this point seven or eight, you know, products that we are in, in a very advanced state on with customers. I would also kind of add that despite everything happening in the space, we continue to get interest from customers on newer areas. So there are newer products where we are continuing to see interest from our customers. So while the innovators may be working, you know, proceeding slowly on the registration side, the intent to continue to look at new opportunities, opportunities with us continues at this point.
Yeah, so I think that’s kind of where we are in that space at this point in time. I’d also add that I think given the amount of work that’s happened over there in that whole space as we Kind of of eventually get to a place where we are out of the cycle. You know, we should see a lot of interest and ramp up, you know, in that whole space fairly soon thereafter given the work that’s gone in over the, over the last year.
Naushad Chaudhary
Sure. Thank you so much. All the best.
Operator
Thank you. Next question is from the line of Kur Pandya from ICICI Prudential Life Insurance. Please go ahead.
Keyur Pandya
Thank you for the opportunity. Just to expand the comment of the Chairman on the 15 to 20% growth for the entire chemical segment. If you can give more clarification on what would be the growth drivers for FY27 since we are almost fully utilized in terms of ref gas and we are talking about pricing challenges and volatility in spec chem segment. So what would be the building blocks for 27, 15, 20% growth? That is first question.
Rahul Jain
Yeah, so number one is just overall ref gas. I think we’ve seen, if you, if you look at the numbers sequentially, you see a significant uptick between Q3 and Q4 itself. We believe that will continue to hold. Like I said earlier, while you heard about debottlenecking at scale right now, it’s not that this was not continuing in the past as well. So there are volumes that, that we are seeing that we can go fulfill. So there’s both the volume and price play over here that’s driving outcomes. So I think that would be the first piece.
The second really is on the specialty side. We’ve consistently said that we will hold share even if we had impact in price. I think it’s the current sense is that we believe the worst of the price destruction, so to say in the market is behind us and we should slowly start seeing a recovery from here. So that’s the second piece. I think we are going to have the fluoropolymer part pick up in the second half of the year as well. So that will start increasingly looking better. And we are, you know, I think you heard Chairman also talk about the fact that the Chemoz arrangement is working out well.
That’s all set and progressing on track. So again towards the second half late or the later half of the here we should see, we should start seeing early outcomes over there in terms of impact on numbers so broadly. Those are the building blocks that kind of drive this view in terms of where the growth should be for the chemicals business in the coming year.
Keyur Pandya
Understood. And second on the HFO part. So I think in the initial comments. The initial comment was about enhancing the capacity because of the client Interest. So this would be a merchant sales the way we have done for hfc. There would be a tie up when we’d be making it for someone else. If you can just clarify on that. Thank you and all the best.
Rahul Jain
Thank you. Well, as things stand, you know, we’re not in any tie up. You know, even when we went into the HFC space it was with a clear view on where we saw the refcas opportunities lie. And that’s, you know we are following the same track over here. It’s very clear the shift is going to come, you know and I think there’s a strong advantage to be an early mover. You also heard in our chairman’s this is in house developed technology, it’s non infringing and we believe it’s potentially going to come in at price points that are very competitive and that I think positions us really well for an opportunity.
We’re already a global player with a significant share. So in the more mature markets that we’re in where some of the shift is already beginning, we are hearing a lot in terms of interest over there and that’s kind of driving our actions today that you see in terms of this capacity.
Operator
Thank you. Next question is from the line of patient Parvani from SBI Mutual Fund. Please go ahead.
Unidentified Participant
Yeah, hi sir, thank you for the opportunity. Two questions from my side. First on the Fluoro specialty, what was your fluoro specialty sales for FY26 and where do you expect to end? FY27 for fluoro specialty?
Rahul Jain
Yeah, you know we don’t get into the subsegment data. What I can share is we’ve made strong progress over there. You’ve heard us consistently talk about moving up the value chain from bulk to fine cut and free flow that continues. We are in a pretty advanced state in terms of a specialty for a polymer as well and that progress stays on track. I think you’re going to have to think about this business almost like how many of you consumed the chemicals business many, many years ago. There is a lead time to get to a place where we will be effective.
But I think the combination of all that we’re doing ourselves along with the whole Chemoz arrangement that we have positions us really well. I think we’ll start seeing some strong outcomes in FY27 on the revenue side, like I did say earlier in my commentary to earlier question, we should start seeing that in the second half of this year and I think post us going into the next financial year we will see a fairly material ramp up in Terms of outcome.
Unidentified Participant
Okay, thanks for the elaborative answer. I asked you because you mentioned the refds and before the specialty cells every year in the annual report. But no worries if you don’t want to disclose it right now. Second on question is on hfo. So which HFO will come first? Because I think, I think chairman mentioned that you’re looking at multiple HFO. So are you looking at 1, 2, 3, 4 YF to sell it first? And if yes, do you expect some of your 134A sales to be cannibalized by 1, 2, 3, 4 YF?
Rahul Jain
I think you heard, you heard the chairman clearly call us. We’re going to get into all three products. The current plan is that these are all going to come up largely in parallel. Commissionings of each of these could be at slightly different times just given the product intricacies. But given we have barely just announced, I think it would be a little premature at this point in time to call out which ones will come up first. I think will suffice to say that all three capacities are being put up in parallel along with everything on the HF side and vhs.
So it’s not that we are going sequentially on this, but which ones precisely will come up first at this point I think is a little premature. We will have a, you know, we probably have a better sense and be able to share and sometime from here on.
Unidentified Participant
Sure. And could you answer the second part? Do you expect HFO 124 YF sales to cannibalize part of their 134 sales?
Rahul Jain
Well, I don’t see that happening just for the simple reason, you know, where the markets that we’re addressing and where HFO demand is probably going to come through first, they’re probably going to be fairly driven, distinct. So you know, at the outset I would think that would be my summary answer at this point. But yeah, again where we’re talking situations two years plus out, we need to see how things are at that point in time. But directionally, that’s the view right now.
Unidentified Participant
Okay, thank you. Thank you for patiently answering my question. Wish you all the best. Thank you.
Operator
Thank you. Next question is from the line of Ankur from Axis Bank. Please go ahead.
Ankur Periwal
Yeah, hi sir, thanks for the opportunity. First question on the specialty chemical side, if you could help us better understand how are you looking at the growth here across the existing as well as the newer products that we have been working on, especially given the pricing pressure from China?
Rahul Jain
Yeah, I think the way we are looking at this is it’s going to be super critical to have a really strong product pipeline and this has got to scale across from the intermediate space all the way to AI. You know, we’ve all seen the cycle pan out. You heard our chairman speak about it A well at some point different products will go down the value chain and therefore having a strong product pipeline is going to be super important. I think just given the amount of work that’s gone in in terms of our in house development and customer interest, we are well positioned over there across this whole value chain from intermediates through to AI.
We’ve also done fabulous quantum of work in the last year around managing through efficiencies. And I think even in these tough times to see the outcome that the chemicals business has reached from a margin standpoint clearly points to all of the effort that’s to going on in, in terms of technological interventions as well to make sure that even as products kind of come off those really high pricing levels, we’re in a place where we can continue to compete in the market and ensure we sustain volumes at effective margins.
So I think what’s key is going to be to stay relevant across that whole pipe of products and there’s significant amount of work that continues to go on over there. That’s going to be key I think for ongoing success in the specialty space.
Ankur Periwal
Sure. Sir, second question on, you know the, the product approvals bit, this is more for the, the newer businesses on the aluminium foil side or the ptfe, the specialty grade. Where are we in terms of, you know, because we wanted to get into the premium grades and the higher realization ones. So where are we in terms of product approvals here and what timeline can we look at for a revenue ramp up for the existing capacities?
Rahul Jain
Well on the fluoropolymer side, everything that we’re doing in terms of moving up from bulk to fine cut and free flow, that’s very advanced right now. I think we’ve kind of pointed earlier to a question saying we should expect to see ramp up over there in the latter part of this year. I’m not sure if the rest of your question points to everything in terms of the chemo’s arrangement. Again we said that’s on track. So post December, which is when we’re kind of meant to be set and ready. Q4 is when that should kick in and you’ve heard our chairman talk about the fact that that’s a reasonably high margin contract so we should see good outcomes over there.
Yeah, I’m not sure. Yes. So exports on aluminium have already started. I think that was the second part of your question. We’ve already seen progress over there through Q4 of this year and that’s helped ramp up outcomes over there. We continue to have that focus and we should see that kind of that trajectory only improves through 2027.
Ankur Periwal
Sure, sir. Thank you and all the best.
Rahul Jain
Thank you.
Operator
Thank you ladies and gentlemen. We will take that as the last question for today. I would like to hand the conference over to the management for closing comments.
Rahul Jain
Thank you all for joining this call. We hope we’ve addressed many of the questions. If you should have any further, we’re more than happy to assist. Look forward to your continuing support as we move ahead. And on behalf of the whole management, thank you once again for taking out the time to join us today.
Operator
Thank you very much on behalf of ICICI securities limited that concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.