Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Tatva Chintan Pharma Chem Limited (NSE: TATVA) Q3 2026 Earnings Call dated Jan. 21, 2026
Corporate Participants:
Dinesh Sodani — General Manager Accounts & Finance
Ajesh Pillai — Chief Financial Officer
Chintan Shah — Managing Director
Analysts:
Sanjay Sten — Analyst
Unidentified Participant
Raman — Analyst
Jaya Vagasia — Analyst
Darshan Garg — Analyst
Nishita — Analyst
Nirali Gopani — Analyst
Mohit Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Tatva Chintan Pharma Chem Ltd. Q3FY26 earnings conference call hosted by ICICI Securities Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand over the conference to Mr.
Sanjay Sten. Thank you. And over to you sir.
Sanjay Sten — Analyst
Thanks Rudra. Good evening everyone. Thank you for joining on Tatvachintan PharmaCamp Limited Q3FY26 results conference call. We have Tatva Chintan Management on the call Represented by Mr. Chintan Shah, Managing Director Mr. Ajesh Pillai, Chief Financial Officer. I would like to invite Mr. Dinesh Sodani, DGM Finance to initiate with opening remarks, post which we will have an opening statement from MD and CFO and post which we will have a Q and A session as well. Over to you Dineshji.
Dinesh Sodani — General Manager Accounts & Finance
Thank you Sanjay. 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 and nine months ended December 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 reflects 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. Now I will hand over the call to our CFO Mr. Ajesh Pillai for his opening remark. Over to Ajesh Sir.
Ajesh Pillai — Chief Financial Officer
Thank you Dineshee. Good evening everyone. Welcome to Q3FY 2026 earnings call of Tatuchindan Pharmacam Ltd. The financial results for quarter have been duly submitted to the stock exchanges and are also available on our website. Hope you had a chance to view it. I’ll briefly walk you through the key financial highlights and provide an overview of the performance across our major business categories for the quarter. For Q3FY 2026, the company reported operating revenue of Rupees 13,13 million representing a year on year growth of 53% and a sequential growth of 6%.
EBITDA for the quarter stood at 255 million reflecting a 261% year on year growth and a 15% improvement quarter on quarter. Moving to the category wise performance phase Transfer Catalyst reported revenue of rupees 279 million reflecting a 5% decline quarter on quarter while recording a 13% growth. Year on year, electrolyte sols achieved revenue of rupees 14 million registering a 14% growth both sequentially and on year. On year basis, pharma and agro intermediates and specialty chemicals delivered revenue of Rupees 471 million reflecting a 45% sequential growth and an 86% increase year on year Structured Directing Agents reported revenue of Rupees 534 million representing a 10% decline quarter on quarter while delivering a strong year on year growth of 65%.
With this overview of the performance for the quarter, I hand over proceedings to Mr. Dinesh Sodani. Over to you Dinesh Ji.
Dinesh Sodani — General Manager Accounts & Finance
Thank you Ajay sir with this brief overview on behalf of our MD Mr. Chintan Shah, I now invite our CFO Mr. Ajesh Pillai to provide overview on the strategic direction and the business outlook of the company going forward. Over to you.
Ajesh Pillai — Chief Financial Officer
Thank you Dinesh Ji and thank you Chintan sir for this opportunity. Good evening again. Good evening everybody. Thank you for joining us for today’s learning call. As we step into calendar year 2026, we look ahead with a renewed sense of purpose and confidence while remaining mindful of the evolving geopolitical environment. Over the past few quarters we have spoken about early signs of stabilization and recovery within the chemical industry. This quarter those signs are translating into clearer stability and improved visibility of growth across multiple end use segments.
Customer order patterns across several end markets have become more predictable with healthier engagement levels compared to the recent past. We are pleased to note that the strategic commitments we have consistently added articulated over the last few years, especially through the challenging phases of the cycle, are now manifesting into stronger commercial traction and execution outcomes. This quarter’s performance reinforces our conviction in the path we have chosen and reflects the organization’s ability to translate preparation into delivery.
We do acknowledge the geopolitical developments and discussions around the reciprocal tariffs, particularly in United States, continue to remain fluid, but we believe these uncertainties are manageable at this stage and do not materially alter our near term business trajectory. We channelize our energy on executing customer commitments efficiently while preparing the ground for the company’s future growth. Our priority is to deliver value to our customers through innovative chemistry and to build the infrastructure necessary to realize these capabilities at Turtwich Intern we aim to be recognized for the depth and complexity of chemistries we are capable of handling.
Let me briefly take you through the category wise developments Phase Transfer Catalyst the steady momentum in phase transfer catalyst is driven by enduring customer relationships and the reliability in our solutions. This reinforces our position as a preferred partner in this space. Coming to Structured Directing Agents in structured directing agents, the improvement in demand has become more pronounced. Macro development in the automotive sector including the recalibration of electrification of vehicles and impending implementation of Euro 7 emission standards are translating into higher customer engagement and increasing volume offtake.
This, coupled with sales coming in from new customers will continue to drive the uptick in this segment. Electrolyte Salts this segment is progressing well across the energy storage systems and hybrid automotive applications. Demand from customers in energy storage has shown consistent improvement with volume scaling up in predictable manner. Our decision to develop this segment as a distinct strategic focus is beginning to show encouraging progress and we remain confident that it will evolve into a meaningful contributor from the current quarter.
Coming to PASC on the agro front, commercial traction has strengthened further during the quarter. Two key agro intermediates were commercialized in the previous quarter, including the product based on photo chlorination technology. The customer commitments envisaged for third quarter for these products have now been fully timely fulfilled with minor delays. We have not received any customer complaints in relation to these products, which reinforces our confidence in the consistency and quality of the product.
The technical challenges encountered during the phase are expected to be addressed with the commissioning of the new plant. This facility will provide the required scalability and operational leverage which should progressively support improved profitability. On the pharmaceutical side, we expect commercialization to consolidate from the second quarter of next financial year. Until then, the demand is likely to remain intermittent as customer validation and ramp up activities continue Coming to Semiconductor Chemicals Semiconductor chemical segment continues to move steadily in right direction.
Years of sustained RD in ultra high purity chemistry are now yielding tangible progress. During the current quarter we will execute our first planned trial order and while the path to full commercialization will be gradual, we remain confident in the long term significance of this opportunity. We are pleased to share that the preparatory work for our new plant at Julwad Hegemony is progressing with high degree of readiness and we expect to break ground during the current quarter. Formal announcements will be made at the appropriate stage.
This facility is a key enabler for our future growth, particularly for serving the agro intermediate with strong domestic demand where the product development and the quality benchmarks have already been achieved. As the project advances towards commercialization over the next 18 months. It will significantly enhance our operational flexibility and scalability. As we move forward, we see our business entering a phase of stronger execution led growth supported by improved demand visibility, deepening customer relationships and maturing innovation pipeline.
Importantly, the organization today operates with a high degree of internship, internal confidence and execution discipline built over years of navigating complex cycles and challenging development programs. Our progress continues to be driven by a strong execution mindset, consistent operational discipline and a deep focus on solving customer needs. These fundamentals have strengthened the organization through challenging phases and will remain central as we move into the next stage of growth. We would like to thank our customers, partners and employees for their continued trust and commitment.
With this, I’ll now hand over the proceedings to the moderator for opening the question answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Sanjay Jain from ICICI Securities Ltd. Please go ahead.
Sanjay Sten
Yeah, Good evening sir. Thanks for taking my question first. On the agrochemical side, we mentioned about the photochlorination and other agrochemical product which are. We are in the process of commercialization. Want to get first update on the new plant we were planning to commercialize. Where are we in that plant? Number two yesterday SRF mentioned in the call that they are looking at the industry still undergoing a rising pressure and recovery is little uncertain. How do you see the crop protection market?
Because we are betting very heavily on the crop protection market for our growth in the near term. These are the first set of questions.
Chintan Shah
Good evening Sangeshi. This is Chintan. Chintan Shah with regards to the first question about when we are getting. So today the engineering team has handed over the plant to the production team. So now they are doing the first set of water trials and we expect to have trials, chemical trials beginning from 1st of February and potentially begin validation trials from 16th of February. So this is. So all the engineering execution is now complete and the plant handover has happened. That as the moment we are talking today.
Coming to your second question that yes, we definitely are betting quite heavily on the agrochemical part. The thing which probably differentiates my views from rest of the industry is because we had absolutely nearly no presence in this sector Let us say a year or two years back. So whatever development that we have brought into this segment has come with lot of innovative technology. So we have kept ourselves largely away from conventional chemistry and focus largely on catalytic or electrolytic chemistry.
And I think that strategy is paying off so we can bring a real winning situation for the customer as well and still sustain our margins in that way. So this is potentially giving us a new opportunity. And for us virtually the sale was zero in this new product. So any incremental or any business that we see is giving direct impact on our numbers in terms of demand what we foresee. So we feel that 2026 based on the customers feedback is going to be similar to 2025 calendar year. And we expect the 2027 to begin a turnaround for the agro intermediate demand.
So a gradual uptake. The third bet which we are taking is setting up a new plant in Jolwa. It’s a greenfield project which we intend to break ground in this current quarter. And this basically will have one large part of the Capex will go into commercialization of another agro intermediate product which is an absolute import substitute. So we will become the first one to commercialize this product in India. And again in this sector we have brought in innovative technologies in place which gives us an upper hand compared to the existing competition which is an import source from Chinese sources.
So the product has been validated, small trials, the materials have been approved by couple of customers. So we are as far as the process technology scale up is concerned now we are super confident and now we have decided that let us go with the Capex plant for this. So despite of the general perception of industry being the agro industry particularly being kind of going through a turbulent phase but sitting on my position we see the picture in a very different way,
Sanjay Sten
Very clear. And the new plant we were expected to commercialize at Q4. Where are we that.
Chintan Shah
That’s what I said. So today they have handed over the plant to the production team.
Sanjay Sten
Water trials and
Chintan Shah
Leakage tests have begun and we will do chemical dries from 1st of February. So the plant will have all, any kind of solvent testing, whatever stuff beginning from 1st of Feb and from 16th of February is when we do the validation trials for the various products
Sanjay Sten
And. Commercial production will take some more time from the validation.
Chintan Shah
Right. So we expect about first week of March when we actually put the plan to commercial use.
Sanjay Sten
That’s clear. And update on the photo chlorination. Where are we in that process of. Photo chlorination chemicals
Chintan Shah
That we have Very successfully. Nicely executed our orders for the just ended quarter though we were a bit delayed by about two to three weeks in terms of schedules, but in terms of chemistry and process everything has gone very well. And now we have got repeat orders for those products for the coming quarter, supplies for April to June quarter. So that is going on very nicely and technology is working just fantastically well.
Sanjay Sten
Got it, got it. And, and on the second part, pharma side, are we through the dose here or. We are still in the process of getting the dose here? It is
Chintan Shah
In the process. So as far as we are concerned our task is done. So we have completed our task, we have done the scale up, we have supplied commercial batches. Now the stage two intermediate producer has also completed some of the validations and now the final active producer is undergoing the validation. So it still may be a couple of quarters before the actual commercialization will settle.
Sanjay Sten
So we still see second quarter, second half of CY26 we should be able to supply pharma or it can
Chintan Shah
Get
Sanjay Sten
Delayed. No,
Chintan Shah
No, that, that will begin, that. Will begin,
Sanjay Sten
That will begin. And any, any, any further detail on Jova side we are proceed proceeding any, any CAPEX plan there, how much you are planning to invest in any of those numbers. This
Chintan Shah
Is, we will do it in two large phases. So the first phase is going to be greenfield, right from you know, bringing up, filling up land to building compound boundary walls and all common utilities and stuff like that. We expect this phase to have in capex of about 265, 270 CI. That final amount we will have within the next week’s time. So those final drawings and designing and estimation work is going on. So probably this is where we look at the number between 250 to 275crs and we plan to execute this within 18 months.
And though it seems very aggressive, but we feel that this is now a high time that we should put pace to this because it’s a successfully running technology and we don’t want to miss all this opportunity.
Sanjay Sten
Very clear. And last question on the semiconductor side we said that we are now starting with the plant scale. So basically
Chintan Shah
We have received our first plant scale production order. So from the customer that they want three batches to be made at plant scale. So until now whatever was approved, everything was at the pilot scale. So now we are going to ton scale. So each of these batches would be about 3 metric tons each and that is where so some modifications are at the plant are ongoing. We are awaiting for certain packaging systems because you know, this is very super sensitive quality that we are trying to achieve. So those missing blocks we expect to be in place by 31st of January and then early February we will start our first plant scale batch tasks.
Sanjay Sten
And you mentioned these are three products or a single product with the three metric 10 of three batch.
Chintan Shah
Currently what we are doing is first product, the first product,
Sanjay Sten
Second product is still under piloting. Okay,
Chintan Shah
Yeah, yeah,
Sanjay Sten
Got it. And this opportunity can be material for us.
Chintan Shah
Absolutely. But it’s going to be somewhere around 2028 when it goes to full scale commercialization. So it will be a gradual ramp up. But post that it’s definitely proposals to be a big opportunity if it continues the way it is being shown and what the customer project. So this is basically an established product being replaced by another product. And if you look at the volumes of the established product, it is huge. So we expect that this product will also give us a very sizable opportunity in this place.
Sanjay Sten
And the
Chintan Shah
Reason why the currently established product is potentially being tried to phase out is because of its toxicity.
Sanjay Sten
Okay. And this is less toxic the one we are producing.
Chintan Shah
Yeah.
Sanjay Sten
Very clear. And any last comment on the electronic or electrolyte that we were supplying? We are still to see any material uptick there?
Chintan Shah
No, no. So actually the internal shipments within the country so from destination port to the customers got delayed. And that is why the sales did not reflect in this quarter. But from January of this quarter we will have I believe calendar year 26 will show at least 7 to 8% in terms of revenue coming from this category. So it’s quite encouraging the way it is going.
Sanjay Sten
So we are right now around 1%. We are telling this will one from one will go to seven to eight.
Chintan Shah
Yes, yes,
Sanjay Sten
That’s. That’s quite encouraging. And thanks Chintan by for all those answers and best of luck for coming quarters.
Unidentified Participant
Thank you. Thank you.
Operator
Thank you. Our next question is from the line of Raman KV from Sequent Investments. Please go ahead.
Chintan Shah
Hello. Hello. So can you hear me very loud and clear? Yeah,
Raman
I just want to understand sequentially there has been a decline in the SDA revenue. Is it because the volume was volume was impacted or the raw material prices were down sequentially?
Chintan Shah
Don’t track SDA on a sequential basis. I would request please track SDS on an annual basis because of the way the business is happening is in kind of what you call the campaign basis. So customer has designated campaigns when they run the product and that is when their demand is very high. And there could be a quarter potentially with no sales Also so this, this has not happened but this is also a buy possibility. So please take the demands or the revenue of this segment, particularly of this segment on, on a little longer term basis.
Jaya Vagasia
Understood.
Chintan Shah
Keep you going crazy. And that is one of the key reason why we have so much of inventories in place because of the way the whole operation happens and the way the demand goes. So one quarter zero demand, another quarter can be few hundred tons of demand. So this makes us crazy as well. And it becomes very difficult to justify a quarter on quarter sales in this.
Raman
No sir, I understood and I understand that I just wanted to understand the raw material pricing with respect to SDA. Because last,
Chintan Shah
That is we are not seeing much change. So it still continues to remain at the same levels.
Raman
Okay, so it’s similar to the last two quarter level.
Chintan Shah
Yeah, yeah.
Raman
And so with respect to the diets plant how much capex are we did we invest in that and how much asset turn can we expect from that plant?
Chintan Shah
So current new plant capex was 102cr. That final number is yet to come but it’s roughly in the range of hundred crores and we expect. So this is basically. It is difficult to say that one particular investment is going to face me what because this is kind of going to be used. There are see the new agro intermediates which we commercialized. Okay the large ones. Now we are facing a lot of bottlenecks within that production system. So some of the recoveries which we are supposed to do and reuse we are unable to do because of lack of infrastructure at that time.
There are certain byproducts that we could convert it into a useful product. We are letting it go off because we don’t have necessary infrastructure in place. So this new plant is going to give us that kind of a backup which allows us to run our plants smoothly. Give us good leverage in terms of cost because we will derive cost for most of the byproducts in the solvent which currently we are unable to do. So this gives us a very good comfort in terms of scaling up the volumes to the desired level what the customer forecast and also gives us a pricing leverage because I mean the profitability leverage because purposefully we are letting of letting go of certain things because we don’t have the infrastructure in place.
So this new plant is going to suffice that missing. No.
Raman
So we
Chintan Shah
Foresee this plant as a whole. So I would not be able to put an exact number what this plant particularly will contribute. But in terms of overall revenue I would say now we can Achieve at the current pricing level we feel confident to reach up to a level of 850 to 900 crores in terms of. Overall revenue
Raman
That is a console including all. With respect to all the. Yeah. Inflationary
Chintan Shah
Is small so inflation plant is contributing roughly about 100, 120 crores on annual basis. So all the rest of it is coming from that.
Raman
Understood sir. And so my final question is with. Respect to semiconductor can you give us the order size with respect to this first full plan? This is just a small trial
Chintan Shah
Order, a few thousand dollars. Just a small plant trial order
Raman
And test
Chintan Shah
Whether we can scale up the products from pilot to the plant in the same way with this desired quality. So this is kind of a testing purpose.
Raman
Potentially
Chintan Shah
Customer may not even end up using the product. So their purpose is whether you have necessary systems right in place. Your technology works from going up from hundred kgs to few thousand kgs. So that is kind of a test which will undergo with the customer and this will be done very closely with customers Multiple visits during those times when we run the bashes because they also want to monitor our systems how nice or whether we are handling them in the correct way or they feel they can do some hand holding and kind of, you know trying to help us to improve the process if required but so far that has not happened.
So single handedly we have been able to carry through the pilot and we are pretty confident we’ll do the same on the plan scale as well. So this is kind of a test so it is worth really few thousand dollars of order values.
Raman
Understood sir. So just a follow up Dahed plant will start commercial production from February last week. And what about the Jolua plant
Chintan Shah
That. We kick off the. We break ground during this quarter
Raman
Somewhere around
Chintan Shah
Same time somewhere around mid February.
Raman
So if my understanding is correct we reported around close to 50 crores from pharma and Agricultural Intermediate. So this is X. This doesn’t account for any production from the H plant, right?
Chintan Shah
No, it is the head plant is functional. Nothing from Jolwa plant.
Raman
Okay. Nothing
Chintan Shah
From the new block in the Dahish plant which we are talking of the hundred crore new cap. Right? Nothing has come from as a part of revenue in these numbers. See there are two things going on. One is 100 crore capex which we have just finished. The handover has happened today and it will start commercial production somewhere around mid February. Okay. Still there is no revenue kicked in but the plant is ready. And then we are talking of second phase of expansion which is a greenfield project At Jolwa.
It’s a completely new site, different location, about 6-7 km. Our existing diet.
Raman
Understood sir.
Chintan Shah
Thank you sir. Thank you.
Operator
Our next question is from the line of Darshan Garg from Tiger Assets. Please go ahead.
Darshan Garg
Hello sir. Hope I’m audible.
Chintan Shah
Yes sir.
Darshan Garg
Oh, so. So could you please help me understand. How the SGA demand cycle typically works? So does it tend to be relatively shorter? So my understanding is that Zulite manufacturers. Generally avoid holding SG inventory for longer periods as product quality can degrade over time. So is this understanding correct? And how does that influence the ordering patterns and visibility for you?
Chintan Shah
No. Zeolites order quality soon deteriorate on prolonged storage. These are very stable compounds. So they will stay the catalyst or the zeolite will stay. And even on usage. See, when I say we learn some specialized chemistries, some technologies where we use this type of catalyst so my customer becomes my suppliers in those cases most of the time. Now this catalyst. You know the beauty of this chemistry running this chemistry is this catalyst remains so stable you can continuously use it for a couple of years despite of a day to day massive use.
Right? So. So if you just put them idle, they just stay as it is and you activate them and again reuse after. Let us say one, we use it after three years we’ll be able to do it with favor. So that’s the beauty of this product. And in terms of see they are running number of different products so. And they don’t buy raw materials for each product from me. So I may be qualified for sir, certain of those products whenever they have campaigned to make those products, which involves my product is when we get an opportunity to sell into that.
For a Zeolite producer, their revenues may be. You know, probably they might also going through this kind of demands from their catalyst manufacturers in terms of campaigns. But for them they may be running production through the year but buying products from me only where it is applicable, where my product is approved. So I see more of campaign based demand rather than a consistent.
Darshan Garg
Okay, got it. Answer. How were the SDA prices in this quarter versus our last quarter?
Chintan Shah
Sorry, what’s that?
Darshan Garg
What? How are the HJ prices compared to the last quarter?
Chintan Shah
Which prices? Exchange prices.
Darshan Garg
What are you asking? Sorry,
Chintan Shah
It’s not clear.
Darshan Garg
Hello, HDA structure directing agents,
Chintan Shah
Same thing. There is no change at all.
Operator
Thank you. Our next question is from the line of Nishita from Sapphire Capital. Please go ahead.
Nishita
Yes, hello. Am I audible?
Chintan Shah
Yes ma’. Am.
Nishita
Yeah, so actually I just had a clarification question. You just mentioned that Overall we can achieve a revenue of 860 to 900 crores. Can you give a timeline for that? When is, when will that be possible? When can we achieve that revenue?
Unidentified Participant
Two and a half years from now, Three years, let us say on a safer side.
Nishita
Right. And like if you can give any guidance for FY26 and FY27 from the current run rate of quarterly run rate of revenue, do we expect to see a 30% growth in FY26 year on year?
Chintan Shah
I would definitely say a 20 to a number between 20 to 30% of growth is definitely achieve.
Nishita
And for FY27.
Chintan Shah
Similar. Similar because by that time we’ll have a much larger growth potentially if the JHOLOA plan goes commissioned commercially. Right. So the timeline for JOLO plan to get commission and put to use potentially we are looking at September or October of 2027. Yeah, October. So that, that that will have an impact in terms of revenue because it will be an additional coming with few new products, expansion of the existing product. So that will have a little larger impact in terms of percentage revenue.
Nishita
Right. And on the margin, on the EBITDA margin front, what margins can we expect? Because our margins have been growing consistently since FY 25th quarter one. So where do we see them stabilize?
Chintan Shah
I would say somewhere between 20 to 22% is what I always say that this is realistically achievable. It can be higher at times. But the realistic picture is what we look at. Unless and until if the prices start increasing, the raw material prices and overall product prices have changes, then it can have a positive impact. I don’t see potentially I at least don’t foresee the prices to even reduce further because this is kind of stabilized since last few months. It is trying to go up and fall back.
So that is, I don’t see any reason that they can reduce from here any further. So if there is a positive price movement then it can have a positive impact on EBITDA slightly. But as a forecast I would say 20 selected 22% is a very feasible number that we should consider.
Unidentified Participant
Okay,
Nishita
So like can we achieve that in FY27? Because in FY20 it will be difficult for us to achieve the 20% number.
Chintan Shah
27 will definitely see that kind of number because right now also lot of lot of expenses in the hedge in terms of employees, recruitment, utilities, everything is in place which is being underutilized. The reason of underutilization is earlier the markets were not good. Now the markets are good. The plant occupancy is gradually increasing. And now once we have this new block going commercial we have largely covered the cost of this new block as far as the operational cost is concerned in terms of manpower or most of the utilities.
So it’s very logical that your margin should slightly go up better than what we are seeing right now.
Nishita
Okay, perfect. Thank you so much.
Operator
Thank you. Our next question is from the line of Nirali Gopane from Unique pms. Please go ahead.
Nirali Gopani
Hello. Thank you for the opportunity and congratulations on a good set of results. I understand it’s very early days for semiconductor but if things go in our direction, how big can be the opportunity for us in FY28, 29?
Chintan Shah
Still too early to give this number. But these are very large volume products. And so what? See this is all let us say if I am saying it’s a hundred crore opportunity for example to give a number. But in reality it could be a 2,000 crore opportunity. So the number is so vague that it’s difficult to talk of this number. So the number of customers we change the product currently running product to the new application product with the new product is what we are going to make. Okay. So the existing product, the percentage of existing product being replaced by the new product is where you will see where and what trajectory this market potential goes.
But if you say on 100% basis everyone converts to the new product and it is beyond scope to even supply that kind of volume.
Nirali Gopani
Understood. And we have always been ahead of the curve it come when it comes to our R D. So any new product that you would be working in your R D and that you would like to talk about that will be helpful. Already
Chintan Shah
There are number of products that keep going on and this is one which I talked to you about which we are very excited to start to set up this plant where we have the capacities to make this new agro product for the domestic market. So that is one very exciting thing that we have developed over last few years. And now we are looking very very eagerly, we are looking forward to commercializing. It is something very new in terms of technology. And surprisingly it has been working very consistently up to the pilot.
And the samples have been approved, material has been put to use by customers, number of customers and things look fine. So now there is no rhyme and reason why we should not go and scale up this opportunity.
Nirali Gopani
Right? Perfect. And just one last question. When we say this current capacity can take us to 850900 crores of revenue are we being very conservative? Because I feel 24, 25 also we have been seeing this number of 850900 crore and after that also we have made quite some investments for capacity for backward integration and these were not good in 24. Also
Chintan Shah
Lots of recent capacity expansions that we have done is lot of it. Okay, Most I would say 70% of that has not gone towards capacity expansion. Most of this capex has gone towards utilization expansion. So basically we have observed a lot of bottlenecks in terms of handling the product, moving the product as I said, certain missing blocks in production which we are not able to reuse by products. So we are trying to optimize the profit. So these the last legs of expenses that have gone actually in last one and a half years most of it has gone towards optimization in terms of creating better and better margins and that is what is going to keep you competitive within the market.
And of course when you are talking of agro in such a difficult market this is one key area that we cannot ignore. Most of it has gone besides capacity expansion. Lot of money we have spent towards optimization of operational excellence kind of thing. You can say.
Nirali Gopani
Perfect, thank you for asking. The
Chintan Shah
Pricing in any product you pick, any product, chemical product potentially pricing at is at a nearly three to four year low. So we are looking at the numbers from that perspective today.
Nirali Gopani
So tinder my time and again we feel and across chemical not only on Tattva that you know this is the bottom and the prices, prices not sustain at this level and it should start picking up. When do you actually see that happening?
Chintan Shah
That is one. If someone can answer me that question I’ll not be happy. This is what we have been I told just in last for a couple of questions. Prices are trying to scale up but not sustain and again fall back. But the good part is at least they are not falling down below the current level. So that’s the good part. I think we have found the bottom now probably
Dinesh Sodani
And
Chintan Shah
If I look at mixed number of customers in various segments, right because we are catering to lot of different segments within the chemical industry right from automotive, agro, pharma, polymers and this gives me a very large spectrum of views what people feel and if I put it very shortly we feel that probably next, I mean the second half of 2027 is where people feel that we will really see things to start to change but the kind of geopolitical situations that keep coming up number of factors which are currently impacting globally so that is what makes things little difficult or
Darshan Garg
I
Chintan Shah
Don’t know one. But yeah they definitely would have impact on the global economy for sure. But despite of this, we are excited with what we have done, what is there on the plate for us and we are not stopping with any of our ongoing plans.
Nirali Gopani
Perfect. Thank you. Thank you so much.
Chintan Shah
Thank you.
Operator
Thank you. Participants who wish to ask a question may press star and one on their touchstone telephone. Our next question is from the line of Mohit Jain from Exponent Tribe. Please go ahead.
Mohit Jain
Hi sir, just a couple of questions. You know firstly that on the SDA piece, Euro 7 norms are obviously kicking in. January 27 if I remember correctly. Right. So had the inquiries from the customers started coming in for Europe, you expect. Even not the inquiries
Chintan Shah
Here. We have started already. We have a part of our business coming from the Euro 7 already.
Mohit Jain
Products.
Chintan Shah
Which will go into Euro 7 converters.
Mohit Jain
Right, right. But the scale of procurement from customers, is it expected to pick up further from next year onwards?
Chintan Shah
Yes, it will, yeah.
Mohit Jain
We’ve done about 150 crores and it. Is getting
Chintan Shah
Only into Europe and so eventually it will get into us, China, India. So this is going to continue to grow for next four years. 27 to 2030 is when eventually globally will move to Europe.
Mohit Jain
Understood. But usually what happens whenever the relation change? There is a very big demand search that one sees just, just before the regulation comes in. Right. So one would expect at least, at least next year to be fairly strong as far as FD is concerned, or this calendar year for that matter.
Chintan Shah
That is what we foresee as well. And it’s not that this is going to be like a surge in demand because norms are changing. Basically, if you want to understand the what is happening going from Euro 6 to Euro 7 is norms are becoming little more stringent and nothing is changing except for the size of the catalyst required, the quantum of the catalyst required to achieve the desired purity of the emission gases. So even if you continue to sell same number of vehicles, your demand is going to spike up.
So it’s not kind of a phenomena where you see that this is a surge in demand which will subside, but once it goes to a certain scale, it will continue to remain there.
Mohit Jain
Understood. So that we’ve done about 150 crores in SDA for nine months now. Given we’d also spoken about onboarding a fairly large customer who doing trials with in SBA which was supposed to scale up from this calendar year. What is the growth that we can wait in this, in this segment for this year? Sir,
Chintan Shah
I think 25 to 30% is what I foresee. Depends again on the commercialization. We have onboarded two Customers actually. So one, we are into stages of final signing of the contract. So this should start commercial supplies from four months or somewhere around August is when we start invoicing to the customer and the other customer is still the final negotiations part is going on. So that also we’ll see in second half of the current calendar year to get into the finalization.
Mohit Jain
Okay. The next financial
Chintan Shah
Year we see is quite exciting for this.
Mohit Jain
Understood. And what is the capacity utilization Currently. Sir, in SD
Chintan Shah
It’s now roughly about 50%. Today it was down to 35. So we have enough capacities to go on without any further capex as of now.
Mohit Jain
Okay. And the momentum for SBA continues in Q4 as well, right as we speak. You’re not seeing any. Okay. Okay.
Chintan Shah
Yes.
Mohit Jain
So that’s one SDA. Sir, on the TSC segment you’ve spoken about two agro intermediates which were supposed to scale up from Q3. Would be good to get an update from you as to how are you seeing those two intermediate scale up because you’d spoken of fairly large opportunity size here. So can you please give an update on that.
Chintan Shah
Both have gone very nicely. And the new block which becomes available to us this February next month. So this is where it will give us lot of leverage in terms of right now, whatever we are producing we are with a little delay. So even with the smaller demand, a part of the forecasted demand also we are startling to fulfill because of insufficient infrastructure in place with the new block coming up online and then we have that opportunity of growth. So we will see that growth definitely. As I said, 2027 calendar year looks exciting for the customers and we expect to have and things have gone precisely as what we have envisaged in terms of success of the technology, in terms of acceptance of the product by the customer.
And we also see with this bottleneck being removed, we’ll have a strong impact in being globally competitive even in this space. So that is going to be a big problem.
Mohit Jain
Understood. And including the pharma intermediate sir, can we do about additional 200 crores of sales from in this segment in financial year 27?
Chintan Shah
Not in 27 no. By 28 we may, but 27 definitely not because they expect to complete their validations within 2026 and then the ramp up will begin in terms of commercialization. So I don’t believe 27 will be that year of 200cr from this product. We anticipate about 150cr from 2028 calendar year. I’ll say.
Mohit Jain
Okay. And this new product both in Pharma and agro, how much are they expected to contribute? Only this new product intermediate in 27.
Chintan Shah
Roughly about 300. Yeah. 250 to 300.
Mohit Jain
Sorry, I may have misunderstood this. So we have three agro intermediate and three pharma intermediate. Is that is my understanding correct here? First that are coming up
Unidentified Participant
And
Mohit Jain
All of these get commercialized. I mean obviously some of them start in mid Feb. But FY in FY27. From the six intermediates are we expecting additional 200 to 250 crores of sales? Is that what you are hinting at?
Chintan Shah
Yes,
Mohit Jain
Exactly.
Chintan Shah
That is what I am talking about. Yeah.
Mohit Jain
Okay. And this is on top of the. So
Chintan Shah
You already are seeing some of the sales. Okay. So it’s not going from zero to there. We may already have 25, 30, 40 cr of sales that is recorded. And in the current financial year. So what I am saying potentially this will hit somewhere about 200, 250 crores in revenue in calendar year 2027.
Mohit Jain
In calendar year 27. Okay. Calendar year. Got it. Got it. On this. Okay, sir. Okay. Thank you. Thank you so much.
Operator
Thank you. Our next question is from the line of Jaya Vagasia, an individual investor. Please go ahead.
Jaya Vagasia
Yeah, hello. Thanks for the opportunity. So my first question is regarding the RoC. So even at 55 to 60% utilization in SDS our RoC is around 7%. So unless the prices increase even at 80 to 90% utilization levels, our RoCE would it most go towards 10 to 12%. So is this understanding correct?
Chintan Shah
No, it’s not correct because it’s only this part. There is also a part of the plant which is having reactors. So the conventional process and the continuous flow. So they are all gradually the occupancy is increasing. So that will have impact in terms of ROC numbers. So it’s not going to be the 7 or 10% in terms of numbers from next financial year.
Jaya Vagasia
Okay. Okay. And secondly you already mentioned in earlier. Prices
Chintan Shah
Remains at the same levels considering even still considering the prices continue to remain so low even in the next financial year. Yeah,
Jaya Vagasia
Right, Right. And in previous con calls you had already mentioned that the newer products will be lower in asset tons. But are you confident that they’ll be more or less. They’ll make up via higher margins. Margins similar to sda?
Chintan Shah
More or less, yes. In terms of gross profit margins. And that is the beauty of the new technology. Right. So you. You end up benefiting in terms of nearly zero waste. So your major part of effluent cost and destruction of that effluent goes Away. Secondly you have product desired product in larger percentage compared to the byproducts. So these are some benefits which accrue. So despite of capex is one time that you do but eventually you have a recurring benefit coming out of it plus operational easiness because your footprint is much smaller because you need lesser number of reactors to do the same chemistry.
So you are occupying lesser ground space so to say your footprint is smaller. So a lot of benefits come with this new technology. So we expect. Yeah.
Jaya Vagasia
So we can have more or less margin similar to sta. Is that what you are saying?
Chintan Shah
Correct.
Jaya Vagasia
Right. And last question will be in last phone call you mentioned that PS is already running at around 80 to 90% capacity. So is it fair enough to expect that all the newer products will be moving to the Jolwa sites once it is fully commissioned?
Chintan Shah
No. So we have this new block which is being available to us. So that will be something additional which removes the bottleneck of our existing plant. So that will free up lot of space in the existing plant. So whatever is commercialized so far continues to remain in the hill and it will have some space to grow further as I said about 850900 crores depending on the product mix what we do. So we expect this can go up to 850900 crores in revenue from the existing plant and then Jolwa we are talking of completely a new set of agro product and also expansion of our current existing products.
But largely the Capex goes towards the new product.
Jaya Vagasia
Okay, so 850 to 900 different.
Chintan Shah
It will have nothing to do in common with our existing plant to say as far as the new product is concerned because those products we don’t have space and infrastructure to make in our garage site as of today.
Jaya Vagasia
Right, right. So this 850 to 900 crore that you are saying that is combined of PSC, SDA electrolytes as well as. Thank you so much. Thanks for the opportunity.
Operator
Thank you ladies and gentlemen. That was the last question. I would now like to hand the conference over to management for closing comments.
Ajesh Pillai
Thanks. On behalf of Satvichintan, thank you for joining us on today’s learning call. We trust that we have addressed most of your questions during the discussion. Should you require any further clarification please feel free to reach out and we will be happy to connect offline. Thank you.
Operator
Ladies and gentlemen on behalf of ICICI securities limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.