Tatva Chintan Pharma Chem Limited (NSE: TATVA) Q1 2026 Earnings Call dated Jul. 24, 2025
Corporate Participants:
Unidentified Speaker
Dinesh Sodani — General Manager, Accounts and Finance
Ajesh Pillai — Investor Relations
Chintan Nitinkumar Shah — Chairman and Managing Director
Ashok Bothra — Chief Financial Officer
Analysts:
Unidentified Participant
Sanjay Jain — Analyst
Sudarshan Padmanabhan — Analyst
Varun Mohanraj — Analyst
Siddhant Singh — Analyst
Darshan Jhaveri — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Tatva chintan Pharma Chemitan Limited Q1FY26 earnings conference call hosted by ICICI Securities. As 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Jain from ICICI Securities. Thank you. And over to you sir.
Sanjay Jain — Analyst
Thanks Shubham. Good afternoon everyone. Thank you for joining on for Tatva Chintan Pharmacare Limited Q1 FY26 results conference calls. We have Tatva Chintan Management on the call represented by Mr. Chintan Shah, Managing Director Mr. Ashok Botra, Chief Financial Officer Mr. Ajesh Pillar Investor Relationship. I would like to invite Mr. Dinesh Sudhani, PGM Finance to initiate with the opening remark post which we will have a Q and A session. Over to you Dinesh.
Dinesh Sodani — General Manager, Accounts and Finance
Thank you Sanjay Ji. Good evening everyone. On behalf of the management, I am pleased to welcome all of you to tattoo Chintan’s result conference call to discuss financial results for the quarter ended June 2025. Please note that a copy of all the earning call related disclosures is available on both the stock exchanges I.e. nSE and BSE as well as on the website Also. Any statement made or discussed during this call which reflect our outlook for the future or which could be construed as a forward looking statement must be reviewed in conjunction with the risk that the company faces.
A detailed disclaimer in this regard has been included in the investor presentation that has been shared on both the stock exchanges that is NSE and bse. I will hand over the call to our Investor Relations Officer Mr. Ajesh Pillai for his opening remarks. Over to you Ajay.
Ajesh Pillai — Investor Relations
Thank you Dinesji. Good evening everyone. A warm welcome to all of you joining the Quarter 1 Financial Year 26 Earnings Call of the Kushington PharmaCam Ltd. The financial results for the quarter have been submitted to the stock exchanges and are also accessible on our website. Today I’ll take you through the key financial indicators and a brief overview of how each of our business segments performed during the quarter. For quarter one financial year 26 Turkish intern posted operating revenue of rupees 1,169 million registering an 11% increase year on year and a healthy 8% growth over the previous quarter.
Ajesh Pillai — Investor Relations
EBITDA came in at rupees 173 million, reflecting a 37% year on year rise and a notable 94% growth as compared to previous quarter. Let me now share a quick snapshot of the segment wise performance Phase transfer catalyst contributed rupees 323 million in revenue. While this marks a 17% decline on quarterly basis it represents a 9% growth compared to the same period last year. Electrolyte salts achieved revenue of Rupees 12 million, showing a 32% rise over the previous quarter and a 12% dip year on year. Pharma and agro intermediates and specialty chemicals continued to perform well delivering of rupees 432 million in revenue up 32% sequentially and 11% year on year.
Structured Directing agents recorded a revenue of rupees 394 million with a 14% growth quarter on quarter and a 13% improvement year on year. With this brief overview, I now invite Our Managing Director, Mr. Chintan Shah to provide his thoughts on the strategic direction of the company and share his perspective. On the business outlook going forward.
Ajesh Pillai — Investor Relations
Thank you. Over to you Sir.
Chintan Nitinkumar Shah — Chairman and Managing Director
Good evening everyone. I extend a warm welcome to all of you joining our earnings call today. Let me take you through the key developments during this quarter. I am pleased to inform you that as discussed during our previous call, the business sentiment has been gradually turning positive which is reflecting in our Q1 results. We see further improvement in business sentiments in coming quarters. However, challenges and uncertainties continue to persist. The global geopolitical landscape remains fragile and also there exists lot of uncertainties pertaining to US Reciprocal tariffs. As of today, most of the products which we sell into the US markets are not subject to reciprocal tariffs, but we continue to remain cautious owing to possible abrupt changes that can happen in the system.
There is a sense of cautious optimism returning to the industry and we are seeing a gradual recovery in export markets for our products as well. At Tatva Chintan, our core focus continues to be on strengthening our R and D capabilities. We strongly believe that scientific innovation is the most sustainable path to value creation and business growth. Our belief of innovation has started gaining recognition from our customers and we are getting quite interesting developmental opportunities as we move forward, particularly into the second half of the year. We are well prepared to unlock the outcomes of our focused efforts.
Chintan Nitinkumar Shah — Chairman and Managing Director
Our strategic approach to business and unwavering commitment to our stakeholders remain as strong and resolute as ever. Let us now take a closer look at the segment wise developments during the quarter pace Transfer Catalyst. This segment continues to deliver steady performance in line with our expectations. One customer onboarded last year is now getting into full scale commercialization by the end of this current calendar year. Structure Directing Agents the revival of demand in our SBA segment is now happening and we shall continue to see increase in revenue over coming quarters. We are witnessing an increased demand supported by clear visibility from Q customers.
The growing customer uptake coupled with the upcoming implementation of Euro 7 norms positions this segment to grow over four years and future. We are Electrolyte Salts. We are seeing a steady and encouraging uptick from our customers using our electrolytes in energy storage devices. The second approved product is now being manufactured at plant level and we are on track to dispatch the material within the current quarter. In a significant development, another customer engaged in manufacturing batteries for hybrid vehicles has also approved our material and placed their first small scale commercial order for extended validations. This represents a critical milestone in our efforts to tap into the growing electric mobility and energy storage markets.
Chintan Nitinkumar Shah — Chairman and Managing Director
The strong level of engagement and enthusiasm from our customers coupled with our ability to meet the stringent technical and commercial requirements underscores the long term potential of this segment. As we continue to build credibility and scale in this space, we believe this business line will evolve into a meaningful contributor to the company’s revenue and profitability over the coming years. Pharma and Agro and Specialty Chemical Segment pasc, the new large agro intermediate which has been approved and for which we have received commercial order is being continuously manufactured at our plant so as to execute the order in Q3.
As we enhance our production volumes, we see certain heating issues which are being resolved and gradually moving towards smooth production cycles. The second agro intermediate has already received commercial approval now and we have secured commercial orders for supply starting in the second half of the year. Another high potential agro intermediate which caters to a significant domestic market is gaining strong traction among prospective customers. A major customer has already approved the product and we are scheduled to dispatch samples to another large customer in the current quarter. The production of this product will require additional CapEx which we plan to undertake at our upcoming greenfield facility in Jhuva.
On the pharma intermediate front, we have successfully delivered plant scale batches for validation of third Pharma Intermediate. For the fourth Pharma Intermediate pilot scale validation batches are in progress. Given the momentum and growing customer interest across both agro and pharma segments, we believe this vertical is poised to be a significant contributor to our revenues not only for the current financial year but also in the years ahead. Our strategic investments, customer centric approach and product pipeline are well aligned to capture long term growth in these critical markets. The years of dedicated development efforts to produce the very high purity chemicals for semiconductors has now started showing its good results.
Chintan Nitinkumar Shah — Chairman and Managing Director
This is now generating strong interest from leading companies within the industry. The biggest achievement within the quarter has been a successful supply of pilot scale samples meeting the customer requirements. Now we have been asked to deliver two repeat pilot run materials to demonstrate the consistency of our process. There is still a long way to commercialization of these products. It will pass through multiple scale ups and validations over the coming years. We expect a slow commercialization to begin in 2027 leading to a full scale commercialization in 2029. With the success of delivering this material, we have been awarded to work on a second opportunity.
After many years of efforts in this segment, we could finally achieve the desired high quality product. This success has made us confident that this segment will bring massive growth potential in coming years. To conclude, we are encouraged by the momentum building across our key business segments. Be it the revival in sda, traction in energy storage, materials, progress in agro and pharmaceuticals or the promising start of our latest innovation driven segment. Each of these developments is a reflection of our strategic focus, robust R and D capabilities and deep customer alignment. We thank our stakeholders, partners and employees for their continued trust and support.
With the groundwork laid in the previous quarters, we are confident of sustaining our growth trajectory and delivering consistent performance in the quarters ahead. With all the good things that have happened during the quarter, we do have a not so good news to share with you. Our CFO, Mr. Ashok Bhotra has decided to relocate himself and pursue another opportunity. It indeed has been a pleasure to work with him. We will surely miss him and we wish him the very best for his future endeavors. Once again, thank you. And with this I hand over the proceedings to our CFO, Mr.
Chintan Nitinkumar Shah — Chairman and Managing Director
Ashok Bhopra. Thank you sir
Ashok Bothra — Chief Financial Officer
. And good evening to everyone present on our call today. The financial highlights for the quarter ending. For the current quarters Q1FY26 versus Q1FY25Rs below. Revenue from operation of 11. 68 million versus 10. 55 million in Q1F by 25 other million. Other income of 11 million versus 12 million in Q1F by 25 Other income mainly is of gain on foreign forex of 9.2 million. Mislead income of 1.8 million ER of 173 million versus 126 million in Q1 by 25 EBITA margin increased by 287bps year on year basis to 14.8% in Q1FY25 due to decrease in COGS by 4.1% but partly offset by increase in other actions by 1.2%.
Y basis PBT of 91 million versus 68 million in Q1FY25 PAT of 66 million versus 52 million in Q1FY25 PAT margins were at 5.7% versus 4.9% in the same period previous year. TPS stood at 2.84 versus 2.23 in the same period previous year. During Q1FY26 exports stood at 830 million, contributing 71% of the revenue. The major countries include Japan, USA, Germany, Malaysia, Switzerland, South Korea and China. That concludes an update on the financial highlights of the company. I shall request the moderator to open the floor for question answer session.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask the question may press star and 1. 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. Ladies and gentlemen, we will wait for a moment while the question queue assembled. The first question is from the line of Sudarshan Padmanaban from R N D pms. Please go ahead.
Sudarshan Padmanabhan
Thank you for taking the question. So my question is on the SBS side, you know the fourth quarter we did mention that, you know, the worst, you know is largely behind as far as.
operator
There is a lot of disturbance from your line.
Sudarshan Padmanabhan
One second.
Unidentified Speaker
Yes sir, there is a lot of background noise.
Sudarshan Padmanabhan
So my first question is on the. SGA business there is a definitely an improvement on a Q on Q basis. But what I would like to understand is, you know last year we saw a lot of, you know, price correction in terms of, you know, SDA and the demand from China remained very neutral and incrementally you and us was supposed to pick up. Now if I’m looking at the first quarter, while there has been an improvement, you know, probably on a year on year and even on a quarter on quarter basis, it is not been as stark as what one would have expected in this division.
So how do we see, you know one the prices and the volume demand number two how is, you know geographically Europe and US picked up for us?
Unidentified Speaker
So to address the question, the first answer to your the pricing part pricing still remains to be at the same levels as last year. There is no significant change in chemical pricing on the raw material front. So the price of overhti still continue to remain at the same levels in terms of demand. Still the Chinese demand is nearly negligible whereas the US and the Europe demands have actually picked up and it is gradually still picking up. And we see stronger demand coming in Q2 and Q3. That is the visibility which we already have. And we expect to execute one large customer contract to begin supplies from early 2026.
So that will again have a significant impact in terms of volumes. Price is based on a formula. So as and when the RM prices would tend to change, we will have impact on the prices of the SDAs as well. That is what is now anticipated that prices have remained at non viable levels so far and just a matter of time until when they will sustain to continue at these low levels.
Sudarshan Padmanabhan
And with respect to earlier we were talking about 40 to 70% growth in volume. I mean and also value. If there is no change in the value, would we be sticking on to that or you know, would we be relooking at that?
Unidentified Speaker
We are sticking on to that. Maybe a quarter plus or minus, but we are sticking on to that.
Sudarshan Padmanabhan
That’s definitely encouraging, sir. On the PAC side that is really encouraging. In this quarter we are seeing good traction and there are multiple products that we have talked about. I mean four commercial products and several other products that can be rolled out if you can give some color. With respect to how have we seen the existing product gathering momentum and what can we expect as far as newer launches is concerned and how probably from the current base we are expecting for the next few quarters and also in FY27.
Unidentified Speaker
As far as the existing products are concerned, there is a very marginal increase in terms of demand that is happening with respect to the new launches. We have significant developments in terms of orders received for beginning from Q3 and we expect that to continue because the next finance as per their customers financial year it will begin in early 2026. So we expect to regain that momentum going forward from January onwards as well. We also have one small production block coming up. We expect to commercialize products from there in January and we hope so far we are on track in terms of timelines.
So that will also give us a significant capacities to offer to the customers in terms of product approvals and commercializations. We have two large products which are getting into commercialization and both these products are now being consistently made at the plant where we put orders in. Sure.
Sudarshan Padmanabhan
And we will stick on to the guidance in this segment as well. And currently with the capacities, what would be the overall utilization, sir, across plants?
Sudarshan Padmanabhan
So until May it was not fully occupied but now I would say most of the capacities are occupied and we have started becoming selective in terms of what we want to make and what we want to avoid.
Sudarshan Padmanabhan
Yes sir. And one final question is on the margins. I mean clearly we see that margins have improved primarily because of the mix and partly on operating leverage. If I’m considering this base and as we see the PASC will gather momentum and NTA will gather momentum. I mean should it be right assumption to believe that Q on Q we should consistently be seeing margin expansion probably through this year. Would that be right here and are we sticking to 20%?
Unidentified Speaker
Yeah, that is what. Yeah, that is what we will see in coming quarters. Yeah, we stay with the forecast and it is happening and we have very clear visibility at least in December. There is no favoring from our forecast that is going to happen so far.
Sudarshan Padmanabhan
Thanks a lot sir.
operator
Thank you. Question comes from the line of Varun Mohanraj from Scaniwa Capital. Please go ahead.
Varun Mohanraj
Good evening and thank you for the opportunity. I think in the last quarter we had spoken about our entry into the semiconductor space so I just wanted to you know, stand on a high level. What are the applications we are planning to get into in the semiconductors conductor space and do we require any new facility for the same or existing capacities would be fungible for it. Thank you.
Unidentified Speaker
In terms of Capex requirement, our existing plant can only cater to a very small volume so it could be a startup for for the overall demand. And as I said during my address it’s going to be fully commercialized by 2029 is what is the deadline we expect. So though we will have some significant volumes beginning from 2027. So until then probably we can cater it from our existing facilities but going forward we’ll definitely to manage the kind of volumes that are being forecasted we will have to look at the Nuclex in terms of applications we are presently looking at the area of itching and cleaning.
So these are the two fundamental application areas where we are working with the customer right now. Now we have been provided. So this was one specific application area and a product with which we have been working since years and now we have been. Ultimately we have been successful in meeting the stringent requirements of specification and now based on our success we have been given an opportunity to work on a second product.
Varun Mohanraj
Okay sir.
Unidentified Speaker
Even within our existing facilities we will have to undergo a lot of modifications and changes to be able to. So right now whatever infrastructure is in place is to only make this level of products at a pilot scale. We don’t have the necessary infrastructure in place already to Produce it on a plan but that is what now we will have to start considering and build up a small modification modified area where we can handle this kind of IQ related products that is what is under the cards but first we want to execute the next two pilot run materials to demonstrate our consistency and product quality to the customer and based on that we will decide to go forward with minor statements that will be required to accommodate plants.
Thank you Automations lot of packaging automations so a lot of systems are going to change within the plan to accommodate this and we would decide the CAPEX eventually as and when we feel it’s the right time go ahead with that.
Varun Mohanraj
Sure sir. Now my second question is regarding the electrolyte business I just wanted to understand based on the current facility that we have what would be the peak revenue for the electrolyte business and also the EBITDA margin at optimal utilization?
Unidentified Speaker
It’s a tough question to answer because basically we are looking at a multi purpose facility so again it would be a question when the volumes start picking up which we expect that to happen now in very near future so of course a part of the electrolytes which goes into the energy storage system we have sufficient capacities built up already but as far as the electrolytes going into the super capacitor batteries or the hybrid vehicle batteries so this is the place where we’ll have to look into some additional capex to happen and in terms of certain specialized systems required to handle it in a closed system, in ultra dry, in ultra beyond so if I assume correctly maybe in the existing facility we may hit again close to about 100cr from this but ultimately we’ll have to look at further expansions at our new asset.
Varun Mohanraj
And margin sir so these.
Unidentified Speaker
Are again as good in terms of margins as our SDA segment.
Varun Mohanraj
Okay and finally what is the capex plan for FY26 capex amount?
Unidentified Speaker
It’s about 110cr.
Varun Mohanraj
Okay is it maintenance or have we planned any?
Unidentified Speaker
We have a new block coming up so that is to accommodate the missing parts which we require to achieve the full volumes that the customer wants for the new agro intermediates this is within the same site. A new block within the same site.
Varun Mohanraj
Okay. Okay okay that’s it from this. Thank you.
operator
The next question comes from the line of Sanjay’s Jain Please go ahead.
Varun Mohanraj
Yeah, good afternoon sir. I got a few of them first on the photo chlorination side in the agrochemicals where are we in the process and when it starts Commercialization expected Q3.
Unidentified Speaker
We are now Fully approved. And the customer has already committed and placed orders for Q3. So they have certain open volumes available for to give to us. So that is what now we are going to start producing from August. Basically. Now we are definitely into the commercialization mode, beginning supply from November. So we have orders for November and December.
Varun Mohanraj
And on the pharma side, on the three products, where are we in the approval commercialization?
Unidentified Speaker
The third product we delivered. So first and second products are now accepted. So the validations are completed. They are documenting those in the dossier. The third product, we just delivered them from a plant scale validation batches. So that is as far as we are concerned. We are good. So now it’s in the customers, the bodies in their port and fourth product is still in the pilot scale at our wallet.
Varun Mohanraj
Okay. And this doser thing, how many months can it take?
Unidentified Speaker
Typically we expect somewhere in August or September of 2026 when we expect to start commercializing these products.
Varun Mohanraj
26?
Unidentified Speaker
Yeah, next year. Next year.
Varun Mohanraj
This time.
Unidentified Speaker
Yes. So they will also run few more validation trials. There would be on and off demand, but not really significant. But the real commercialization is expected from August or September of 26.
Unidentified Speaker
This again is delayed. Right. Because I think we were expecting this to start at the Jan.
Unidentified Speaker
I am at supplier stage one, I supply this to supplier stage two and then they make something and supply it to the final API manufacturer. So the delay is actually happening at the stage two supplier where they have some delays in their capex so which is causing basically delays in the overall validation of the materials.
Varun Mohanraj
Got it, got it. And on the SBA side, are we seeing the demand coming up for the Euro 7 or it is right now largely for the Euro 6 application only.
Unidentified Speaker
And right now it is largely for Euro 6. But we have started getting orders beginning from October for supplies for Euro 7. Yeah, yeah. So we will have surprise beginning for Euro 7 product also. And customer, we are also validating another Euro 7 product. So we have just recently supplied some material to them for the validation for Euro 7 application.
Varun Mohanraj
And when is this Europe expected to implement Euro 7? Sorry, when is the Europe expected to implement the Euro 7?
Unidentified Speaker
20. 27. Beginning. Oh, beginning 27. So we will be supplying in 25, 26 the material will be made and 27 is when the final goods will go out. Yeah, yeah, got it. And on the electronic chemical side, we were hopeful of a significant ramp up from the energy storage side of the business. How is that looking at. Because we are still tracking that 1 or 2 crore kind of a revenue run rate despite commercialization by one of the product or one of the customers.
Unidentified Speaker
And just back day before yesterday, after meeting with the customer in person and they also showed me around through their plans and their challenges of what they are happening. So they have certain automated systems to make these energy storage batteries and to feed this energy storage batteries they need some secondary automated systems right now. This certain additional things is what still they continue to do on a manual basis, which right now is in the process of getting automated. But this they expect by somewhere around September or October to have those eight systems in place. So these eight small automated systems will to the main automatic battery storage production line.
So having said, without these automation, currently they are only able to feed 30% of the material. So that their automated line is right now operating only at 30% efficiency. Because they cannot feed enough material to that automated line. So they are working towards it. And so we expect already their volumes are growing, but we expect significant rise happening from September.
Varun Mohanraj
Okay. Okay. So there is again a significant dependence for us on the second half of this year. I think first half is going to be the same run rate as this because most of the product we spoke are in the second half of CY26. So are we building a significant acceleration in the second half? And what is the confidence are we getting that this time around we will be able to execute it?
Unidentified Speaker
100% confidence because we have orders on hand most of the things. So that is not even, but at least till December we have very clear visibility of what we are getting into.
Varun Mohanraj
Got it, Got it. So that’s very clear. And thanks for answering all those questions and best efforts for the coming quarters.
operator
Thank you. Thank you. The next question comes from the Raman kv. Some sequent investments. Please go ahead.
Unidentified Participant
Hello, sir, can you hear me?
Unidentified Participant
Yes, sir. So my question is with respect to the FDA structure. Sorry, structure directing agent. So do we produce zealots or do we produce the salts which help in the formation of zill? Sorry, I didn’t get you. What is. Hello? Can. Can you hear me now? I can hear you, but I didn’t understand your question. You said sealers.
Unidentified Speaker
Yeah.
Unidentified Speaker
No, no. Materials for the zeolites. Yeah.
Unidentified Participant
Okay. We make the raw material for Zenith. So what is the total addressable market of this particular stuff like sda?
Unidentified Speaker
SDA has lot of opportunity, a lot of different applications. We primarily cater to our largest segments come from applications into automotive gas emission purification and is into the petrochemical application. So with these two, I would believe still we are at about 20 odd percent in terms of addressable. Market we have. Right.
Unidentified Participant
And my understanding is with the current.
Unidentified Speaker
Lot of other applications in terms of a huge application for right now they run something called converting methanol into olefins. Converting. So they call it an mpo. So these are much larger applications in terms of volumes, in terms of demand, very huge demand. But we are not addressing to that market because that is quite price sensitive. Very low margin products and very huge volumes. That is what we cannot probably handle from our existing infrastructure.
Unidentified Participant
Okay, so my follow up question is you in the previous call you mentioned that with the current block of SBA we can do about 450 crores of revenue at peak utilization. So at 80% utilization can we do. You gave a target of utilizing the capacity of 80% during FY26. So can we do about 350, 300 to 350 crores of revenue this year?
Unidentified Speaker
Not this year because primarily because of the value erosion. So we are looking at roughly about 30% drop in values within last one and a half years. What has dropped. So you can eliminate that 30% value and that is where we definitely are going to stand. Okay, so volumes what we have committed, we are absolutely sure to meet those volume commitments. Unfortunately not the value commitments.
Unidentified Participant
So why was there a value region? Was it on the customer’s end or was it because the value of the product in itself has declined because the. Raw materials have become so cheap?
Unidentified Participant
Okay, okay. And so my second question is with respect to the high purity chemical which you are developing for semiconductor. So can I know the market size of this?
Unidentified Speaker
Difficult to put the number to that. But it is definitely very large. Definitely very large. But we are just doing a couple of products right now. We are through with our first product. And now we are trying to address the second product once the first product moves out of the final facility.
Unidentified Participant
So can you specify what are the products?
Unidentified Speaker
I would not like to give out the names. We are under some NDAs with the.
Unidentified Participant
Customer, not names like type of product, you know, like application or something like that.
Unidentified Speaker
So each and each basically these products are into eaching categories and we are looking at very large volumes of potential and number of It’s a big product portfolio. But first, honestly speaking, we have been working on this since last six, seven years, probably a little more. And we never even. So it was a dream project for us whether we can hit this kind of quality levels or not. So this is the first time, that’s why I said in my speech that the significant development and achievement for us is to deliver a sample which Meets with the customer specification.
This we have taken seven or eight years to deliver it in the right specification board. So it is something which is significantly difficult to achieve. Which ultimately we did and now we can. With this knowledge we want to do a little bit of more scale ups. And once we are there then we can start looking into other opportunities. So there is a big basket of products which you can cater into the.
Unidentified Speaker
Semiconductor industry and teaching category of products which you plan to cater. Sir, I just wanted to understand is it like a specialized product that you need to. That you need to cater for that you have to make for different. For different customer or it can be supplied to mass customers. There can be multiple customers for this product. For the same product there could be multiple customers. Yeah.
Unidentified Participant
Okay, answer. My second last question is with respect to the PA’s PASC segment. Sir, I just wanted to understand. You said that you have received one bulk order and that will be commenced in FY26 and you have three products under development, right? Yeah. So I just wanted to understand what are the feature, what are the products like, the nature of products, where are they used? And so two products are agro intermediates. And the three products what we talked about are the pharma intermediates.
Unidentified Speaker
So two products, agro intermediate as in they can you give any specification or.
Unidentified Participant
Is it one is the insecticide and a herbicide. Okay. That is for the aggregate intermediate. And what about the pharma?
Unidentified Speaker
Pharma related to cancer treatment. All the three. Anti cancer. All the three.
Unidentified Participant
Okay. Thank you sir.
operator
Thank you. The next question comes from the line of Siddhan Singh from Green Portfolio Private Limited. Please go ahead.
Siddhant Singh
Hello.
Sudarshan Padmanabhan
Good afternoon sir. I hope I am audible.
Unidentified Speaker
Yes.
Siddhant Singh
Yeah.
Siddhant Singh
So the first question for myself is that the electrolyte segment, as you all know it’s a high grain segment. And I want to just get a guidance on what will be the percentage contribution of this segment to the top line by FY 2627.
Unidentified Speaker
I would say roughly about 10%.
Siddhant Singh
10% of the whole top line, right?
Unidentified Speaker
Yes, sorry. For 2728.
Siddhant Singh
Sir, I asked it. You said 2627. Right? Right. But you go for next financial year.
Unidentified Speaker
26. Current is 2526. So I’m talking about 2627. Yeah, it will be 10%.
Unidentified Speaker
Correct.
Siddhant Singh
Sir. Now then, as you all know the balance sheet is quite healthy. And we are going to have a good set of cash flow numbers. Then what you can expect from the cash flow number, how much is going to be spent in R D and how much is going to in Capex also can you quantify these numbers?
Unidentified Speaker
The current year we have Capex plan of about 110 crores. 1 to 1 to 1.5 is the. You know generally number which we spent on R D as a percentage of revenue. So anywhere between 4 to 5 cr is.
Siddhant Singh
Perfect sir. Perfect.
Siddhant Singh
Then sir the last question from my side is that as you have told in the last quarter that the SDA price has been. The erosion in the SDA prices has been completely factorized. So can we consider that the price has been bottomed out and the only possible growth is there in front of us?
Unidentified Speaker
That is what I strongly believe, yes.
Siddhant Singh
Perfect. Then what would be the its overall growth in top line and in EBITDA marbles for 2728.
Siddhant Singh
We are going two years forward. Yes sir. Yes sir.
Unidentified Speaker
Two years 2728.
Unidentified Speaker
Yes sir, I may answer that offline. It will be forward looking statement. So for 2526 we have given a guidance of you know about 25% so it will very premature to you know give any guidance for 2728.
Siddhant Singh
Okay sir, so one last question. You have told that the electrolyte soil segment would be growing at 200% something around and if you calculate then by the end of February 26th we would be having an revenue from that segment of. Of around 25 sorry 20 plus year. So are you still sticking with the number or there is any change.
Unidentified Speaker
More or less years anywhere between 15 to 20 cr. 15 to 20 years, yeah.
Siddhant Singh
Thank you sir. Thank you. That’s it from my.
operator
Thank you. The next question comes from the line of Daril Javeri from from Crown Capital. Please go ahead.
Darshan Jhaveri
Hello, good evening sir. Thank you so much for taking my question. Firstly congratulations on a great set of results sir. Hopefully I’m audible.
Unidentified Speaker
Yes, thank you.
Darshan Jhaveri
Yeah, yeah. Hi sir. So I just wanted to you know ask like right now our FY26 guidance. I just wanted to clarify it’s 25 revenue growth and 20 margin. Did I hear that correctly sir?
Unidentified Speaker
Yes.
Darshan Jhaveri
Okay, but I just wanted to know like how margin would behave right because 20% right now in quarter one we did around 15%. So 20 would be majorly done in H2 would be relatively higher than 20 margin also right. I exit run rate would be very high then for fit by 26. So how do we see sir the next two quarters or you know how do we see H1, H2. Could you just you know help us figure that out?
Unidentified Speaker
Basically if you see the numbers there is a little shift happening towards two aspects we should look into it. One is little purpose to slowdown in terms of phase transfer catalyst which means that we are producing enough but we are consuming it more to satisfy our requirements in terms of SDA production. So for SDA the raw material is the phase transfer catalyst. Okay. So if we have enough SDA production we go for the value addition and we send lesser phase transfer catalyst into the market. So that is what is visible from the current numbers. Secondly, there is also a marginal shift, I’m not sure exactly in terms of numbers.
In terms of exports that is domestic it was last 61%. So from 61% going to 71% in terms of exports that means we are selling lesser into the domestic market. It is more price competitive. What we sell in the domestic market is the pay stock price which is more price. So this shift has started to happen from mid August. So the numbers start becoming more handy. And this we will see going forward as well in the Q2 that the shift towards more of SDA and NBR sales happening from Q2 will have even better numbers in terms of EBITDA.
And the margin realization will now surely decrease because plants are nearly getting fully occupied on the full quarter basis.
Darshan Jhaveri
Oh, okay. Okay sir. So so on overall basis like so our product will have like margins higher than 20 also. Right? Because right now they’re getting dragged down because of other reasons. So like for next year like how do we see like because all cylinders will be firing plus we’ll have maybe you know, pharma intermediary also. So any kind of guidance would you be able to give for next year, Sir?
Unidentified Speaker
Probably another 20% to 25% growth is what we are looking at for the next financial year compared to where we end this year.
Darshan Jhaveri
Okay. And the margin Sir?
Unidentified Speaker
About similar 20% levels.
Darshan Jhaveri
Okay, okay, okay, okay, okay. Fair enough sir. Yeah, that’s it. From my side. All the best sir. Thank you so much.
Darshan Jhaveri
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participants. Should we have a follow up question, we request you to rejoin the queue. The next question comes from the line of Akshada Dev from Nivisha. Please go ahead.
Unidentified Participant
Hi. So congratulations. Your margin improvement has been really commendable for this quarter. What I want to know is why are we still optimistic on the China rebound? The China demand may come and give us an upside. Considering that usually in the last two cycles what happened with Diesel was that EV was not a possibility. But now EV is even cheaper than LNG for them and most of them considering subsidies and 1 million kilometer mark. So can I just know why we are expecting that there may be a rebound here?
Unidentified Speaker
Primarily the what we are addressing as a market for our product is primarily the large diesel vehicles. So there still the EV is not that predominantly penetration of EV is still not happening. Secondly, if you see and talk to people across, then the electrification of vehicles is not really happening and is not becoming really popular as we would have liked to. Again, with the kind of withdrawals of incentives by the new U.S. government, the electrification process is expected to even slow down further. Similarly, if you look into the another major industry car market is Germany.
And there as well, the push towards complete EV is kind of missing. And most of the players are now working towards going into the hybrids. So your IC engine remains there in place. And this we are talking of passenger vehicles.
Unidentified Participant
Okay.
Unidentified Speaker
Where we have not a major part of our business application is not coming from this segment. But I’m just trying to give you an explanation of what is really happening. So because of this push towards more of hybrid systems, your IC engines for the car segment was expected to die probably 20 years down the line. Doesn’t look like it is going to happen in such a near future. So the systems of IC engine continues to run and it will be coupled with an hybrid system. And when you couple this with a hybrid system is where we have an alternate product which we supply for the hybrid batteries from our electrolyte segment.
Now, when we are talking of large diesel vehicles, electrification. So still this is having hardly any penetration. The biggest challenge in the China market is not the electrification of the heavy diesel engines. The biggest challenge so far has been availability of cheap natural gas which is kind of replacing the diesel engines with the gas engines. So now we are seeing since last couple of quarters the numbers which reflect is a gradual, very slow, gradual shift from the gas engines to diesel engines. So still, as I said, the Chinese demand is still not visible much. But this is what now we are expecting, or the industry is expecting the shift to happen within a couple of quarters when we again see a rebound of digital engine coming back inside.
So this is how it looks like so far.
Unidentified Participant
Okay, this is a Euro 6 and Euro 7 products. Euro 7 that would start soon. So who are the other suppliers for this product?
Unidentified Participant
Sorry.
Unidentified Speaker
€6 and €7 category. We are same competitors as we are in €6.
Unidentified Participant
Okay, same competitors.
operator
Hello.
operator
As the participant has been disconnected, we will move to the next question. The next question comes from the line of Jay Vagasia, an individual investor. Please go ahead.
Unidentified Participant
Yeah, so continuing from the discussion of previous participants. So even if the China demand doesn’t come back online very soon, even in Euro 7, the 2027 you like to mention, the 2027 is for the passenger vehicles, right? For heavy duty commercial vehicles the name loans are to be implemented from mid.
Unidentified Speaker
Of 28 but with the diesel vehicles they are stringing the Euro 6 norms. So basically the Euro 6 is going to a second level which is sub of 2000 Euro 7, but it is somewhere in between Euro 6 and Euro 7. Okay, so in the diluted Euro 7 version.
Unidentified Participant
And if I’m not mistaken some quarters back you had mentioned that this. Our large agrochem product that we have.
Unidentified Participant
Commercialized, the catalyst for that is basically Forward integration of SDAs. So can we expect SDA utilization to this, you know, our own captive consumption of SDA to increase going forward and from Q3 you’ll be shipping more of this agrochem product?
Unidentified Speaker
No, no, no. This not consumable catalyst, what we made for this product. So this is kind of regenerative catalyst. So this probably should sustain for quite some time. But at least one build typically would require replacement after a year or a year and a half within the system. So otherwise it is continuously, otherwise it doesn’t keep things. What makes it exciting is this development of kind of magic catalyst is what I would call, you know, because you without disposing them, without incurring, it’s a one time cost, it’s kind of a capital cost that you have incurred and you keep using it for a year and a half.
Same catalyst regenerate and reuse.
Unidentified Speaker
And lastly for FY25, what has been. Our RND course.
Unidentified Speaker
I am not very sure of, but must be in close to about between anywhere between four to five. I do not have the exact number without Capex. Including Capex it was about 13 crores. But revenue expense typically I am aware that it is anywhere between 4 to 5 crores.
Unidentified Participant
Okay, right. So what I was thinking, which is our R cost are not that high but the products that are under development being used for semiconductors as well as the products that you have for electrolytes. These are niche products. So this kind of mismatch between the products I didn’t understand R cost being low and our products being really niche. So can you show some light on it?
Unidentified Speaker
Is it good or not good? It’s definitely good. Why you want to push our cost high? Unnecessary. No, no. Jokes apart, jokes apart. This, this is not an overnight development. See, I. It’s probably we have been working on this since probably 7 years at least maybe 8 years if I may not be wrong. So every learning comes with a cost. So we kept paying those costs. Every learning required some kind of new installation, trials, new analytics. So everything kept on happening since last seven years. So it difficult to put a price to what is the real developmental cost of this particular product.
But I’m sure it’s going to be a very big number. Even if I look at the SDA. We started developing SDAs in 2010 and probably we actually commercially sold the first product in 2018. Sure.
Unidentified Participant
That’s. That’s it. Thank you. And all this.
Unidentified Speaker
Yeah. Thank you.
operator
Thank you. Ladies and gentlemen, in the interest of the time. That was the last question. I would now like to hand the conference over to Mr. Ashok Bhotra, CFO for closing comments. Please go ahead sir.
Unidentified Speaker
Thank you. On behalf of management of Tata Chandan, thank you for joining us on our earning calls today. We hope we have been able to address majority of your queries. You may reach out to Mr. Ajesh Pillai for any further queries that you may have and they would connect with you offline. Thank you Mr. Sanjay Jain for hosting our call. Thank you.
operator
On behalf of ICICI securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.