Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Stallion India Fluorochemicals Limited (NSE: STALLION) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Shazad Rustomji — Managing Director and Chief Executive Officer
Analysts:
Parth Raorane — Analyst
Unidentified Participant
Presentation:
Parth Raorane — Analyst
Ladies and gentlemen, good evening and welcome to Q4 and FY26 earnings call of Stallion India Fluorochemicals Limited hosted by Confidely Partners. As a reminder, all participant lines will remain in listen only mode and there will be an opportunity for you to ask questions after the management’s opening remark and presentation. Please note that this earnings conference call is recorded. Before we begin, I would like to mention that certain statements made during this conference call may be forward looking in nature.
These statements are based on the current expectations, assumptions and estimates of the management and are subjected to various risks and uncertainties. Actual results may differ materially from those expressed or implied due to several factors. The Company undertakes no obligation to publicly update or revise any forward looking statement. We represent the investor relations for stallion India Fluorochemicals Ltd. And on behalf of Confide Leap Partners, I extend a warm welcome to all the investor, analysts and participants for joining the earnings con call for Q4 and FY26.
We have with us Mr. Shahzad Rustamji who’s the Managing Director and CEO of Stallion India Fluorochemicals Limited. You. With this I hand over the floor to Mr. Shahzadji. Sir, you may now proceed.
Shazad Rustomji — Managing Director and Chief Executive Officer
Thank you. Good evening everyone and a warm welcome to Australian India Fluorochemicals Limited Q4 and FY2526 earnings conference call. We are pleased to report another year of strong operational and financial performance despite increasing volatility across global energy markets, supply chains and geopolitical developments. During FY2526, the company reported total revenue of 434.12 crore reflecting a growth of 14.4% year on year, EBITDA increased by 23.34% to 61.35 crore while PAT grew by 35.61 to 43.84 crore.
Highlighting the resilience of our business model, operational agility and disciplined execution. Throughout the year, we proactively strengthened our sourcing network, inventory planning and customer servicing capabilities enabling us to maintain supply continuity across key end user industries despite disruptions in global logistics and raw material markets. FY26 was also a defining year from strategic expansion perspective. We received the environmental clearance for a proposed 10,000 metric ton R32 manufacturing facility at Belwara, Rajasthan, marking a major milestone in our backward integration journey.
The project is progressing as planned and is expected to commence production by October 26th. This facility is expected to strengthen supply chain security, improve operating margins and support import substitution initiatives in India. In parallel, we continued expanding our specialty gas and high priority gas capabilities. Upcoming Mamba 2 facility in Andhra Pradesh will strengthen our presence in South India while adding HFO and HFC refrigerant blending, debulking and also helium and semiconductor gas handling capabilities in South.
We also scaling up a liquid helium semiconductor gas infrastructure at Kalapur to capitalize on emerging opportunities across electronics, semiconductors, healthcare, solar and advanced manufacturing sectors. Today Stallion operates across four strategically located facilities with two additional facilities under development supported by a pan India distribution network. Our focus on aftermarket customers, operational flexibility and specialty gas expansion continues to strengthen our competitive positioning.
Looking ahead, we remain confident about the long term growth opportunity in fluorochemicals and specialty gases supported by backward integration, specialty product expansion and industry tailwinds. We continue to target the revenue growth CAGR of 30 to 35% over the next three years along with margin improvements of 3 to 4%. We remain committed to building a fully integrated technology driven fluorochemical platform focused on innovation, reliability, sustainability and long term stakeholder value creation.
Thank you.
Parth Raorane — Analyst
Thank you. Participants are requested to raise their hands for asking questions. Also one can request questions in the question box. We have the first question from SK Nathani. You may kindly unmute and introduce.
Questions and Answers:
Unidentified Participant
Hi sir. Sir, this is regarding your previous statement when someone asked you in Concord that what you will be doing with the money that you realize from open market sale. So you mentioned that you will be applying your rights issue. But we can see that you sold your right entitlement to alternate investment fund about 16% of your holdings then that DI again sold that to about more than 2% in public. So it is like going back on your words that you will be applying rights issue right. So can you explain why you thought to go back on your word like not applying your rights issue?
Shazad Rustomji
Have you seen what we have applied? The amount of shares I sold I bought back.
Unidentified Participant
I can see that your current holding is 44% in it’s
Shazad Rustomji
47 it is 47.5% or a little more. The dilution it was 68%. The dilution is on account of number one the value at which we had to open it because of the market conditions. We had expected to open it at 140 but it would not have been subscribed at 140 so we had to open it at 99 and that dilution resulted in the fall of the shareholding. The number of share the number of shares that I sold I bought back.
Unidentified Participant
Sir, before rights issue your holding was about 67% 66%.
Shazad Rustomji
A number of see a number of shares please if you don’t understand that the dilution is caused because of the price at which we had to dilute. So the number of shareholders we had to increase and that caused the dilution. If we had done at 140, we would not have to do 11 crore shares. We’d have to do 8 crore 9 crore shares. So the dilution percentage would have been less. You have to see number of shares, not the percent of holding currently.
Unidentified Participant
Okay. And one more thing. When you mentioned 35% CAGR growth, your revenue year on year is as of March 2026, it’s 14. So in last con call you also mentioned that 35% growth will be there. And. But we can see that there is a 14% growth only. And also there is a degrowth on a quarter on quarter basis which is 27% degrowth from last quarter. If I see 150 crores was the turnover last March to 2025. But this time it’s only 110 crores. So that’s also a concern.
Shazad Rustomji
Yeah, you have a very different way of looking at things. Let’s put it this way. First thing is every single call, these are all recorded calls. These are on record on the exchanges also.
Unidentified Participant
Yeah, I
Shazad Rustomji
Have always maintained we will. Our target was 430 crores and 40 crore PAT for this year 30, 35% growth is onwards. I have been saying it in every quarter. I have set it on record and I have set it on in writing. The target for this year which we had expressed one year ago when we had done three 370 crores turnover last. The year before we had given us a target. We had put our target internally at 430 crores and 40 crore PAT which we have surpassed onwards. Going 30, 35% growth is there for the next three years which we have always been saying and I have still continue saying for the simple.
This year if we start up on time and we get the six months production, we are looking at 250 crores incoming from there. So even if we don’t grow 1% on any other front we do 430 crores again. Even then we still grow at more than 35%. Next year we get 100% of the turnover meaning all 12 months sale you will again have another 35% and the year later HFO plant should become operational. So you’ll again have 35% growth again. The HFO plant would. You would get about like four months or six months operation and the year after that you’d again get the full year production.
Of the HFO. So the next 34 years we have a 35% growth projection which we stand by. Whatever targets were there have been mentioned repeatedly in every earnings call has been mentioned one year ago in my speech and is recorded. So we have never said we’ll do 35%. In last year we had given a specific figure. 430 crore and 40 crore PAT.
Unidentified Participant
Okay sir, one last question on Mamba 2 plant and also.
Parth Raorane
Hello. Hello. So yeah. Participants are requested to stick to two questions for participants as there are many people in the queue. So you can join back in the queue. Next one is. Ms. Disha, you can unmute and introduce us.
Unidentified Participant
Hello.
Shazad Rustomji
Yes.
Unidentified Participant
Yeah. Am I audible sir?
Shazad Rustomji
Yes. Thank
Unidentified Participant
You so much sir for this opportunity. So I think my question was again on our revenue plans. So last time I think we spoke you we mentioned that around this year we’ll be targeting around 675 crore revenue. So are we on track for that
Shazad Rustomji
One minute.
Unidentified Participant
So we were expecting 275
Shazad Rustomji
One minute. 430 crores. If we go strictly by my friend earlier who said who took numbers in totality. If you go by that methodology 430 and 30% is 559 crores. So technically we have to do 560 crores to qualify for the 30% growth year on year.
Unidentified Participant
Right? Right. No but I think
Shazad Rustomji
We would do more.
Unidentified Participant
Yeah. So I think last time we. So we’ll get 275 crore this year. We’re targeting from the R32 and 50 cr from
Shazad Rustomji
If in October we start off on time and everything goes well. Yes. We should have that revenue which would be much more than 30%. We all. We always little conservative on the numbers.
Unidentified Participant
Right. Right. But also this Mumbatu and Khalapur facility they are progressing on time. So we’re on. All set for the commissioning by Q.
Shazad Rustomji
The helium plant Kalapur plant is almost ready. Meaning they’re just doing the final testing. And now we’re looking at starting up by next month. So that that is on track. Mumba too should be operational by August. See Mumba 2 again. I’ll. I’ll just like to explain.
Unidentified Participant
Yeah.
Shazad Rustomji
The IPO we only. Meaning what is there in the IPO project is only five bulk tanks and just debulking and blending of one particular HFO. What we have transformed it into is like a 12 tank facility. Complete. The complete stage one. Stage two, stage three. Everything we have done together. We’ve even put up the same helium and specialty gas segment in Mumbatu. We have Put hydrocarbons, we put additional tanks. Meaning we’ve expanded that facility to the complete scale that we can. We don’t need to do anything after that.
That would take care of everything that we require for the next 10 years. So meaning the delay is on account of that. Not on account of project was scaled up 2 1/2 times.
Unidentified Participant
Okay, so suppose this comes by August. So what? So combining this Kalapur and Mumbai, what sort of revenue contribution can we expect for this year?
Shazad Rustomji
See Mumba 2 Technically, definitely. Firstly, the minute you have a operation, localized operation in south, it would definitely have an impact. This particular year there are more pressing issues that we have on hand. One is the start of the Bilwada unit number one. Number two, this year is the end of the quota calculation year. So meaning lot of energies will be would be diverted more towards what would be specifically beneficial for the company in the current year rather than a push for this.
In. In terms of revenue growth, both Mumbu and Kalapur, the expansions would definitely show an impact on the revenues. Meaning the HFO blending what we are looking at also has an export potential. It is not just local. So depending on once we start up it would be more clear and we would release the numbers at that time.
Unidentified Participant
Okay. Okay, fair enough sir. And so this new HFO manufacturing plant that we proposed an investment for 200 crop. When do we expect this to come online? And what sort of revenue potential can we see from this plant? And also the margins that we get post manufacturing Because I assume that will be much higher.
Shazad Rustomji
Okay, basically the man, the plant, the Capex figures are higher than what you mentioned the plant we have, we released the figures like 250 crores in this year and 500 crores in the next year. 275 and 550. I forget. So basically those are numbers that we have given which numbers are very conservative. Now to explain to you, the price that we have calculated is 500 rupees a kilo. The current price of R32 is 900 rupees a kilo. So from that itself you can gauge of how what would happen when that plant gets fully operational.
Unidentified Participant
So the new HFO manufacturing that we mentioned that will commence production
Shazad Rustomji
Only after this plant is fully stabilized. All operations are managed everything. That means post mid 27th only after that we would start the work on the hfo. Because see, we have expansion plans on multiple fronts, in multiple opportunities. But we would go wisely. We would make sure that one each, each project that is completed is stabilized and then we move to the next one.
Unidentified Participant
Right? Right. Okay. So I think you’ll be in a better position to give the numbers then and then just on this year. So FY27. What sort of fat margins can we expect?
Shazad Rustomji
See, based on like I said, based on what we projected that six months revenue if we are able to achieve. Now suppose 275cr. If we have said and 22% PAT. So 60 crores from that and the existing 40. So PAT numbers should be above 100 crores.
Unidentified Participant
Yeah. Even. So even I got 100 to 110cr. So that. So we’re almost online with that. Right?
Shazad Rustomji
Yes.
Unidentified Participant
Okay. Okay. That is it. From my side. Thank you so much sir. And all the best.
Shazad Rustomji
Thank you.
Parth Raorane
Next question is from the line of Rohit Bahirwani. Rohit, you can unmute yourself.
Unidentified Participant
Yes. Thank you for giving me the opportunity. My question is related to your B expansion. As I can see in the capital work in Progress There is 35cr. And looking at your commissioning target which is in October 26th. Don’t you see that this is a very small figure? I mean you had mentioned that you will be incurring a capex of around 200cr earlier. So what part remains, you know, unutilized there. And when can we expect this number to go up?
Shazad Rustomji
I have not followed your question. Actually. Can you repeat what. What the exact question is?
Unidentified Participant
I believe the total capex in the Bhilwada facility was around 200 cr. But currently under the capital work in progress only 35 crores is what you have spent. So how much capex is still still left for the Viada unit? And by when can we expect that to be incurred?
Shazad Rustomji
Okay. The see you. You need to understand as a company we’re very conservative. Personally I’m very conservative. When we sign deals with people we don’t have a principle of paying in advance. Material will come at the site. Half the work will be completed. Then we make payment. We don’t pay in advance. We establish players. We. There’s no trust deficient. There’s no trust deficiency. So basically if we place an order with a tank manufacturer. We place an order with a pump manufacturer. Maximum.
What we’ll do is we’ll give 20, 30 advance. That’s it. We won’t pay more than that. Now they will deliver everything at the site. Then we pay 70% on commissioning. We’ll pay the balance 30%. So that is why the capex utilization is looking less to you. Orders for almost everything have been given out. Now as they start coming in, we Will start paying.
Unidentified Participant
Understood? Understood. That is clear.
Shazad Rustomji
In this quarter you will see the numbers rise up significantly.
Unidentified Participant
Okay? Okay, sir. Got it. And looking at your cash and bank balance There is around 434 crores lying in your balance sheet. So I believe the working capital requirements will also be met from this. You know. And there is no further fundraise plan going forward. Am I right?
Shazad Rustomji
Let’s put it this way. In the current fundraise we have not accounted anything for towards working capital. This basically has been capex. What you’re seeing the amount in the bank is because we are very. Let’s put it this way, we’re very frugal and we are very tight on, you know, advancing monies in the sense we want a full safeguard if we have ordered. Now suppose I’m just giving example. Even with big companies, big multinationals also when we place orders, we are very tight on how we work. Meaning we’ll pay 20%, we’ll sign whatever guarantees they want.
But we won’t advance the money till the material doesn’t reach the site. So the huge amount of money you’re seeing in the bank is because of that. But when finally everything, by June, when everything lands up at our place, you’ll start finding the flow of money very fast. Number one. Number two, the reason we have not raised working capital is we hope that with the internal pad generation and also onwards with the a way that we normally work, we should be able to manage. There may not be a requirement to raise.
We have. We’ve got OTCC with the banks which we don’t utilize. We’ve got 120 crore OD available. We may not utilize that. We try to do without. Wherever best we can. We try to save and move ahead.
Unidentified Participant
Okay. Okay. That answers my question. Thank you so much sir and all the very best.
Parth Raorane
Thank you. Participants. Those who wish to ask the questions may raise their hand. Next question we have from pr. You can unmute yourself.
Unidentified Participant
Hello. First of all, congratulations for amazing set of number. Sir, I just want to understand that from H1 would be slightly low on fat margins. From H2 margins will increase. Is this my understanding Correct, Sir?
Shazad Rustomji
See, in H1 we would still be in the current mode of business. So nothing has dramatically changed with the huge increase and disruptions that are happening with the oil, with LPG costs etc. So definitely margins would be highly strained. The very fact that the company achieved, surpassed and increased the pat projections of last year is remarkable achievement in its own meaning. I was pretty surprised seeing the market reaction to that in another way, see, meaning somebody remarked earlier in this that your performance quarter to quarter was bad.
You need to understand the previous year the company capitalized on a market situation and a market condition. In the last quarter where everyone else was sleeping and everyone was left caught unawares that we were more foresighted, we understood what is happening and we were better planned. We could capitalize and we could do twice the revenue that is normally done in a quarter. Now just because you got an opportunity in that year and you managed to encash on that opportunity does not mean every year you’re going to get an opportunity.
So yes, quarter to quarter, if you try to match appears that we have had a fall. There’s no fall. You have to see year on year, year on year you have grown. You’ve grown fabulously. And most importantly in the worst quarter possible with geopolitics, with pricing, with everything. You’re looking around you, you can see it in, in that to manage that out was remarkable. Now going forward, we are currently still in the same geopolitical uncertainties. There’s a load of things that are, you know, against business in sense.
Financial instabilities are there. You’re hearing of bank scares, you’re hearing of 1 million things that can go wrong in all of this. Still we have been better planned, we have had the foresight. In fact the reason I went for rights even at that low dilution, all along I was telling that if war breaks out, the instability created would be very risky for a small company with a low current revenue growth to take on a debt burden of 300 crores. So now you can see our foresight also in that that we didn’t mind dilution but we did not want to take the company through a risk.
Unidentified Participant
Right sir, Got it. So sir, can you guide me? Like what would be pat margins in H1 and H2? Like rough figures, not perfect but it if you can guide me then it would be really helpful.
Shazad Rustomji
The H1 margins would be conversant with the last year’s same percentages. The H2 margins would climb up better because 50% of the growth would come from manufacturing which would have a higher PAT margin of 22, 24% maybe much higher compared to today’s pricing. But we are being conservative. So you definitely see a much like in the F in the first quarter, whatever current ratios would maintain in the first half. In the second half it would go up by 6%, 5 to 6% because it averages out.
Unidentified Participant
Got it, Got it. Thank you very much sir. And best of Luck.
Parth Raorane
Thank you. Participants, those who would like to ask questions would can raise their hands and also one can post their questions in the Q A box. We have the next question from Ms. Akanksha. Ma’, am, you can unmute yourself and introduce. Give an introduction.
Unidentified Participant
Hello. Am I audible?
Shazad Rustomji
Yes.
Unidentified Participant
Hi sir. Thank you so much for the opportunity and congratulations on a good set of numbers. I had a couple of questions around. The capacity of 10,000 that goes live for production in October. Do we have clarity on how much quota would be allocated to us for the production of RCP2?
Shazad Rustomji
I don’t work for the government, so I don’t have that information. The government will come out with that information in 27.
Unidentified Participant
No, I mean do you have any clarity on whether on what dates is the quota allocation going to be?
Shazad Rustomji
This? We have the clarity and that is why we have gone ahead and that is why we have set up the plant with 10,000 tons. We expect to get 10,000 tons of quota. But if you’re asking me how it’s to be done, how it will be done, that the go meaning it’s government prerogative. None of us have privy to that information and none of us can comment on that. When the government policy has not been released. How are we commenting and speaking on that?
Unidentified Participant
Very much. And the last is, do we have any customers or any contacts that we have online for the articles? How are we planning on facing it in the market? What are the plans?
Shazad Rustomji
No, we have not entered into any pre contracts or anything because it’s detrimental to the company. See, I understand. I’ll make it clear to you. In two years back stallions own sales in India of R32 exceeded 4500 tons which we bought down to less than 400, 500 tons because the margins currently are so low that it’ll drag a pad down. So we let go of the turnover. So technically also another thing for you all is real turnover would have been 600 today if we would have continued with that 4,000 tons.
We let go of that 4,000 tons because the margins would get horribly pulled down. We’re not manufacturing and it’s overcrowded at that time. You know, it wouldn’t sustain imports. Now basically for us to ramp back once we are back in production is very simple. Second, the major part of a production is also going to HFO blending for which that Mumbatu facility has been set up. So we, we expect that more or less the entire quantity what we require, we do not see any problem in meaning selling. Second, if you try to go and do a deal like you know, you may have read that so and so has entered into a tie up with such a company and so and so has tied up.
The only if you go at this stage when you’re not ready, the front customer is going to extract a price which is detrimental to the company and the shareholders. We are not new, we are not novices. We are not new players. We are seasoned hands. We see no requirement or reason that we need to enter into any tie up.
Unidentified Participant
Thank you. Thank you so much.
Parth Raorane
Thank you. Participants who would like to ask questions can raise their hands and one can also post questions on the Q and A. We have the next question from Mr. Anandan Dutta. So you can unmute and introduce yourself. You can unmute and introduce yourselves.
Unidentified Participant
Can you hear me? Hello.
Shazad Rustomji
Yes. Yes.
Unidentified Participant
Okay. Good afternoon and thank you very much for giving me opportunity. Sir. A couple of months before, we have made some tie up with some Saudi company for helium sourcing. Right? And if so that is that the current geopolitical situation, are we finding any difficulties for that sourcing? Because I guess that would be helpful for our number two and Kalapur site, right? For the helium and semiconductor gas.
Shazad Rustomji
Yes. Tie up with Sharjah Oxygen is more strategic than just a sourcing arrangement. Meaning we work closely with that company. We have interacted closely with that company. We see a lot of strategic path forward. Sorry, we see a lot of strategic path forward with them working together. It’s not just helium sourcing in a broader context. There are lots more that we have in mind with them currently because of the Qatar oil fields. Whatever hit they took, helium production out there is highly affected and I think curtailed right now.
Secondly, helium. The nature of helium is you cannot, you know, in such situation you cannot really transport that. So there is a definite impact of the sourcing from the Qatar oil fields. However, association with Sharjah Oxygen is on a different level. Any other sourcing, remodeling or getting from elsewhere also, we would be doing it jointly. There’s a lot more strength for us when we do work together with them.
Unidentified Participant
So you mean there would be no such disruption for Once the Mamba 2 or 3 Kalapur plant will come in production for the helium sourcing. Right now I’m just. Yeah,
Shazad Rustomji
So see, it’s how you want to look at it. One way of looking at it is there’s disruption. Second way of looking at it is this is God sent four months ago, five months ago, price of helium was 900 rupees, 800 rupees. You wouldn’t have been able to sell it profitably. Today the price is crossing 3,000, 4,000. So. And basically availability is an issue. So entry into the market is completely paved with gold. So meaning we look at it as an excellent opportunity. Meaning unfortunate situation that is there globally.
But business wise it’s an excellent opportunity. We see no problem. Meaning we, we. We are okay. Meaning in, in terms of what the impact and whatever is there, we are fine with it. It’s all accounted for.
Unidentified Participant
Okay. Understood sir. Okay. My second question is sir, that this R32 plant is now going to be live. You said like Q3, right? Not exactly October. Because we are actually making delay on the Kalapur and Mumbai number two. And accordingly what I’ve been seeing that it would be maybe Q3 end of Q3, if so that still our guidance of the top line would be remain same like 275 crore. Because the price of that is already higher. As you said,
Shazad Rustomji
Currently the pricing is between depending on what volumes you’re speaking, like bulk deals etc. Between 800 and 900 is what the pricing is currently of.32. So yes, the price is almost double. So even if we do half the volume, we still will retain the same, same turnover. What we mentioned, we don’t expect any, we don’t expect any delays in real sense. But like you said, meaning if we have to take an eventuality into planning also and we are say maybe a month or two late, the higher pricing would allow the.
Would allow for the same figures to continue.
Unidentified Participant
Got it? Yeah. Yeah. That’s what I was just wondering. Like either way we are making delay but we can compensate in somewhere else, right? So sir, my third question is like someone is asking about the R32. Like we have a 10 metric ton of R32 in production. And I have seen like many other companies, all R32 plants are coming and live probably by this finance area. So if we get the 10,000 metric on quota from the government. So can you use the entire thing on. On like our usage or still we can have some left to sell it as a commodity to the other player.
Shazad Rustomji
I didn’t exactly follow. See to answer one part of your question, 10,000 tons is the entire capacity we have. 10,000 tons is the quota we would expect to receive. Similarly there are other capacities that are coming up. About 25, 30, 40, about 40 to 50,000 tons extra capacities are coming up. I do believe everyone would get their production quotas number one. Number two in terms of selling. Now technically the Indian market per se. Is 22,000, 20,000 tons market. So none of these capacities including us have been put up.
Keeping in mind the Indian market because firstly it’s not lucrative. Second, there is that much market is not there for how much the production capacities are there. Everyone have defined and designed the entire working around exports. So basically it’s an excellent thing for India in the sense we never had fluorochemical manufacturing earlier in the HFCs etc today now we completely bypass imports and now we become a net exporter as a country which is good. It’s the vixit Bharat the dream of Modiji that in every field we should become a net surplus and export
Unidentified Participant
Of course. Yeah, yeah. So that means we are. We have to export a lot of this gas, right? In terms of. I’m talking about in ho blend.
Shazad Rustomji
No, even as R32 it is very lucrative to export R32 and many times it may be more more lucrative to export 32 than the HFO blend.
Unidentified Participant
Some of the call you said that why we’ll be selling R32 can blend it and we can send it right in some of the call because margin better
Shazad Rustomji
The the value addition enhances the turnover and the earning much more.
Unidentified Participant
Yeah. Okay, that’s it. Thank you very much. S and have a good quarter ahead. Thank you.
Parth Raorane
Thank you. Participants who would like to ask questions may raise hands and also may post questions in the Q and A box. We have the next question from Mr. Samyak Sh. Samyak G. You may unmute and introduce yourselves.
Unidentified Participant
Hello.
Shazad Rustomji
Hello. Yes.
Unidentified Participant
Hi sir. So may I know the capex numbers for FY27 and FY28?
Shazad Rustomji
The 200 crore that we mentioned for the HFO plant is technically. Basically it comes from the MoU that is signed with the government. Now the government does not take into account the the figure that is usually put down there is pure plant and machinery. They do not want to know what land they are not interested in building. They are not interested in technology transfer or design, engineering etc. They want to know how much physical plant and machinery capex is there. So the 200 crores that mentions there is just pure plant and machinery.
Nothing. Nothing else. So the total technically that capex should be around 400 crores. We do not envisage any further dilution onwards because the current revenue that we will generate once we stabilize and the pat projected path I don’t think we would require more funding.
Unidentified Participant
All right. All right. And secondly, since we mentioned that the domestic sales market in India for R32 is around 20,000 metric tons. So wanted to know if there is any risk to demand in India or risk to excess capacity. And secondly, do we see demand for refrigerants rising in the future given its widespread applications in the market?
Shazad Rustomji
The demand for refrigerants and air conditioning in India is expected to grow 10 to 15% year on year for the next 10 years. Globally also it is growing at 10 to 15% number one, so there is no shortage of demand. Second, now forget global, I’ll just take China figures. India total manufacturing capacity would be 60 to 80,000 tons. See real capacity you have to see not what is put on paper or anything. So China has 8 lakh tons HFC manufacturing capacity. I think it might be higher also, not lower.
In 28 China will get the first quota cut where 15% would be reduced. So 1 lakh 20,000 tons would be reduced. So what is India’s 80,000 tons in compared to that? Somebody has to make good the demand. So if you’re asking in terms of meaning, is there any concern about profitability, being able to sell, I would put it the other way around. We regret not putting double the capacity.
Unidentified Participant
All right, all right, that’s very reassuring to know. And finally any comments on how the industry is evolving in terms of, you know, how our competitors are placing, positioning themselves and how we stand in reference.
Shazad Rustomji
See it’s, it’s first thing you need to understand. India is still in this particular field where we’re very at a nascent stage. Meaning we don’t have such a huge industry. Neither do we have a major export market for air conditioners or you know, appliances etc, so that the demand is very huge. Neither do we have the penetration internally for white goods etc. Yet on the level of China or Europe or US or something. So we’ve got a long way to go number one. So technically meaning in terms of demand, in terms of growth, in terms of requirement, it is going to be a continual this number one.
Number two, every company that has put up facility, understand everyone have worked out their own plans of where they’re going to, how they’re going to sell, how they’re going to do, how they’re going to tie up. So all that has been everyone. I don’t think anyone would make such big investments without having a working plan in place. So everyone have had their, you know, thought process very clear that excess capacity is coming up per se as to Indian requirement. But as per global there’s deficient capacities.
So keeping that in mind, everyone have made the plans and Gone ahead. I don’t think there would be any issues in for any of the companies.
Unidentified Participant
All right, that’s all from my side. Thank you.
Parth Raorane
Thank you. Participants who would like to ask questions may press may raise their hands and they may also put their questions in the Q and A box. We have next Mr. Ashish Pari. So you may unmute and introduce yourself. Ashish, you may unmute and introduce yourself. We can take the next question from Mr. Nilay. Nilay, you can unmute and introduce yourself.
Unidentified Participant
Hello sir. Am I audible?
Shazad Rustomji
Yes.
Unidentified Participant
Yeah. Sir, like you have mentioned that the commodity prices of the products we deal in have increased. But this is not reflected in the Q4 results in the top line.
Shazad Rustomji
R32 pricing I said has increased and we, I told you that we don’t do much R32 currently.
Unidentified Participant
Okay, so the current product which we are doing, the prices has remained flat almost.
Shazad Rustomji
No, everything has gone up but not so drastically.
Unidentified Participant
Okay. Because
Shazad Rustomji
R32 and Helium have gone up tremendously. Remaining products have also gone up. See these have gone up a factor of like almost double. The others have gone up by a factor of 15%. 20%.
Unidentified Participant
Okay, so that means for the current quarter volume degrowth was the case.
Shazad Rustomji
Sorry.
Unidentified Participant
So for the current quarter our volume has decreased. If we compare the last quarter,
Shazad Rustomji
Volume has decreased in the sense
Unidentified Participant
Volume of product which we sell.
Shazad Rustomji
Yeah,
Unidentified Participant
That is decreased because the top line is almost flat from last 3, 4 quarters.
Shazad Rustomji
Why do you say that?
Unidentified Participant
Because of 110cr, 106cr, 105cr and in the last quarter Q4, 109cr.
Shazad Rustomji
Yeah, that. That is an excellent company and excellent performance. What do you, what do you, what do you like the previous year where we did 40, 40, 40 and then 120.
Unidentified Participant
No, no sir, you’re not getting. Like you just said, the prices of the commodity have risen by 15, 20% also for the products which we deal currently. But that, that should have shown in the top line also for the current quarter.
Shazad Rustomji
Yes, but you have to understand also one more thing that when LPG is not available and your end customer industries are not able to come out with full production, who are you going to sell to? That is what we said. Yeah, yeah, that is what I asked. That volume has decreased. Yeah, volume will decrease. No, because geopolitical situation is such that you are having supply chain issues across all industries. Today most of, the, most of the production industries are not getting lpg. They don’t know what to do.
Unidentified Participant
Okay, so that was the only question.
Parth Raorane
Thank you participants who would like to ask Questions may raise their hand. We have the next question from Mr. Virat Sandeep. Sir, you may unmute and introduce yourself.
Unidentified Participant
Am I audible?
Shazad Rustomji
Yes.
Unidentified Participant
Yes. Just wanted to ask that the PAT estimate of FY27 be around 100 crores. Just wanted to understand the R32 capacity that is going to come online. Are we assuming prices of 500 rupees per kg or 900 rupees per kg in that estimate?
Shazad Rustomji
We’ve given our estimate based on 5, 500 or I think 550 rupees a kilo. So.
Unidentified Participant
Okay, the
Shazad Rustomji
Estimates are based on that.
Unidentified Participant
Yes, that’s it. From my side. Thank you.
Parth Raorane
So we can take a few questions from the Q and A box. So the first question is from Gundan. So his first question is. Management has spoken about the long term opportunity in semiconductor and high purity gases. Could you share whether any customer discussion, sampling or qualification activities which are currently underway and what timeline investors should realistically expect for meaningful commercial contributions.
Shazad Rustomji
Currently till the facility doesn’t start up you do not have any opportunity to discuss or do anything. Once helium starts up, that is an entry board for most of the sales that would start up. So initially we expect the Helium facility to start up from June and thereafter you would start seeing the figures coming on board.
Parth Raorane
Secondly is on the edge of a blending. So as the company expands its presence in the next generation refrigerants, how does management view the competitive landscaping potential? Technology licensing or patent related considerations. Especially given the involvement of established global players in this particular segment.
Shazad Rustomji
We are already a player here with tie ups with one of the major global players. So we don’t seem to have any problem there.
Parth Raorane
Okay, a couple of more questions. Where do you see your company in five years in terms of revenue, EBITDA margins and pat?
Shazad Rustomji
We are working. Like I said earlier it had slipped out and that had created a little stir. But now we can discuss it because now it’s already in the open. Our target figures are by 2030 we want to have 3000 crores revenue and we want to have a PAT of 500 crores. That is our target towards which we are working. We. It’s. It’s not a hypothetical target. It’s not a exaggerated number or something and it’s not a forward statement. It is a plan on towards which we are working. Currently our turnover is like 430 crores and 40 crore pad.
With the 32 facility being fully operational turnover should cross 1100, 1200 crores with about 180 crore PAT. When HFO comes On board at that time the balance, whatever figure needs to be made up that would come on board. In between this we also have another project that is on. But like, like we said we would do one project at a time and stabilize that company and then move to the next one. But there’s a continuous growth for the next five years. We just have one after another. There’s continuous growth plans.
There’s nothing stopping. Meaning it won’t be that, you know, you, you put up this next plant and after that, okay, we’ll call it a day and let, let that stabilize etc. To stabilize you need six months, that’s it. After that the next plant. The purpose a company entered into the, you know, public. We became public was that when we wanted to grow at the speed you need to be able to access funds and that is the reason that we became public limited otherwise we would have remained private and continued.
So the growth plans have been laid out and it will be a continuous expansion for the next five, seven years that we can see.
Parth Raorane
There’s one more question. What is the scope from semiconductor industry in time to come?
Shazad Rustomji
For India also and for us also and for any other business that is aligned with this. This has revenue models that far outpace anything that you have seen today. Meaning India has not even touched the edge of semiconductor manufacturing. It is remarkable the factories that Tatas and the other companies have put up. But we are actually, we’re just meaning you’re at the edge of it. You are not even like 1, 2% of anything. So when the real potential starts developing. See today Taiwan is on the cutting edge of semiconductor manufacturing, etc.
Lithography and everything in. But India has the technical genius, has the manpower, has the brain power to quickly evolve and start becoming a market leader in whatever we look at putting ourselves into like how we did in software. So now that we have gone down this road of semiconductors and you know, this new technologies in time to come, I think we would start quickly, you know, narrowing the gap between us and major players in this. So in terms of growth, this is something that will enhance and grow anyone associated with it in a spectacular way.
And we definitely hope to make this one of the major growth drivers for us also. Now many people may ask, meaning like already have asked, okay, what have you done? Who have you met? What deal have you signed in semiconductor this or that? It doesn’t work that way in semiconductors. These are industries that need patience. These are industries that need resilience to, to be able to grow into them. First thing is Nobody is going to deal with you. You just walk in and say that you know what makes this very special is they they need to qualify you first.
That qualification process itself takes two, three years. Most people lose the patience. Most companies don’t have that kind of timeline. Second thing is once they qualify you, nobody else can walk in and suddenly say okay, I’ve got something cheaper. So that is what makes this very different from a normal business. Second thing is as you have the manufacturing facilities coming up in Guwahati, you have them coming up in Gift City etc. So once it’s defined where all they’re going to be there, the players who will make a big difference who have got a reach in all three areas or four areas location wise.
Nobody wants a supply coming from thousand kilometers. So it’s slowly as you build your capacities, as you build your third is key areas where they require. We already supply this, the coolant fluids that go into all these semi, you know, in all these data centers and all these semiconductor areas etc the HFO coolants are supplied by us. Now we may not directly work with say the semiconductor manufacturer or the data center directly. We will work through the supply channel that is existing. Like suppose a carrier or a JCI or a train is taking the complete contract of that data center.
So the supplies of this also would go through them. They don’t have multiple supply avenues. So number one, number two, as you get into helium, as you get into the other thing so you’re making your foundation and your expanding your reach and you got a plan of how you’re going to go about these things. Don’t cumulate in six months or four months or something. You have to have a proper strategy. So as we have already got a growth strategy up to 2030 so it’ll fall in place by that time. Now just giving an example, like solar, one of the things that is required for solar is a derivative of ahf.
Now we’ve got AHF as a basic raw material. How long does it take for us to make the derivative? We’re not digressing from our current objective, that is to set up a 32 plant. But once 32 plant is made, what stops us from making that? So everything will fall in place as we move ahead. Yeah.
Parth Raorane
One last question. How has this Middle east crisis impacted the gas manufacturing companies in India? And do we any see, do we see any tailwind due to the crisis? Any benefit we we have faced
Shazad Rustomji
Generally we meaning they were asked for gas manufacturing companies. We normally do not speak on behalf of others. I can speak on behalf of our company. This was very much foreseen by us. See one one of the things for good management is to be able to foresee events, eventualities that are going to happen that others don’t foresee or don’t plan for. So we very much foreseen this. We’ve very much planned for it. Not that we can ride out everything but to a very great extent we have managed to make sure that none of the major impacts have come to us.
How is the impact to all industry in terms of supply chain? Middle east had all the Chinese had moved a couple of manufacturing units that are there in Abu Dhabi now. A lot of the supply chain had moved to Middle East. A lot of the Indian exports to Africa to a lot of lot of places even Middle east in all the countries the sizable market that was there it’s completely impacted. Then even your transshipment routes etc, your shipping everything is impacted. And the worst is with the oil and LPG etc the impact is absolute all over.
It is not a small impact. Now coming with this what will be the financial instabilities etc that will follow. So you need to take into account all that impact is substantial. We’ve managed to write out most of it because we we were better planned, we’re better anticipated this and onwards also the impact is going to be there to suppress or depress the growth or or volumes or turnovers etc. But like I said we’re better planned so we we would write it out much better. Thank you.
Parth Raorane
We would now request Shahzadji to give the closing remarks as we are running short of time.
Shazad Rustomji
Thank you. It has been a remarkable journey for us. I am very happy that whatever we have projected we have never fallen back on our word. Like I said we had projected 430 and 40 crore PAT. We surpassed that even in a very difficult year onwards. 26 has been a path breaking year for us. It would result in most of our projects coming on board online. And the Bhilwada plant will be a very defining chapter in our journey till date. And we are extremely happy to have all of you all there with us on this journey.
Thank you
Parth Raorane
Ladies and gentlemen. Thank you for attending stallion India Fluorochemicals Q4 and FY26 earnings call which was hosted by Confidely Partners. You may now kindly sign it.