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:
Sanjesh Jain — Analyst
Raman KV — Analyst
Darshan Garg — Analyst
Nishita — Analyst
Nirali Gopani — Analyst
Mohit Jain — Analyst
Jaya Vagasia — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Tatva Chintan Pharma Chem Limited Q3 FY ’26 Earnings Conference Call hosted by ICICI Securities Limited. [Operator Instructions]
I now hand over the conference to Mr. Sanjesh Jain. Thank you, and over to you, sir.
Sanjesh Jain — Analyst
Thanks, Rudra. Good evening, everyone. Thank you for joining on Tatva Chintan Pharma Chem Limited Q3 FY ’26 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&A session as well. Over to you Dinesh ji.
Dinesh Sodani — General Manager Accounts & Finance
Thank you, Sanjesh ji. Good evening, everyone. On behalf of the management, I am pleased to welcome all of you to Tatva 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, that is 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 risks 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, Dinesh ji. Good evening, everyone. Welcome to Q3 FY 2026 earnings call of Tatva Chintan Pharma Chem Limited. 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 Q3 FY 2026, the Company reported operating revenue of INR1,313 million, representing a year-on-year growth of 53% and a sequential growth of 6%. EBITDA for the quarter stood at INR255 million, reflecting a 261% year-on-year growth and a 15% improvement quarter-on-quarter.
Moving to the category-wise performance. Phase Transfer Catalysts reported revenue of INR279 million, reflecting a 5% decline quarter-on-quarter, while recording a 13% growth year-on-year.
Electrolyte Salts achieved revenue of INR14 million, registering a 14% growth, both sequentially and on year-on-year basis. Pharma & Agro Intermediates and Specialty Chemicals delivered revenue of INR471 million, reflecting a 45% sequential growth and an 86% increase year-on-year. Structured Directing Agents reported revenue of INR534 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, Ajesh, 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 Ajesh, sir.
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 earning 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 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 Tatva Chintan, 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 Catalysts: The steady momentum in Phase Transfer Catalysts 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 uptake 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 a 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 photochlorination 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 products. 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, our Semiconductor Chemicals segment continues to move steadily in right direction. Years of sustained R&D in ultra-high purity chemistry are now yielding tangible progress. During the current quarter, we will execute our first plant 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 Jolva, Dahej, 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 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-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] The first question is from the line of Sanjesh Jain from ICICI Securities Limited. Please go ahead.
Sanjesh Jain
Yeah. Good evening, sir. Thanks for taking my question. First, on the agrochemical side. We mentioned about the photochlorination and other agrochemical products, 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 pricing pressure and recovery is a 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, Sanjesh ji. 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 all the engineering execution is now complete, and the plant handover has happened 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 technologies. So we have kept ourselves largely away from conventional chemistry and focused largely on catalytic or electrolytic chemistries.
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 uptick.
The third bet which we are taking is setting up a new plant in Jolva. It’s a greenfield project, which we intend to break ground in this current quarter. And this basically, we’ll 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 a 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 plan 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.
Sanjesh Jain
Very clear. And the new plant we were expected to commercialize at Q4, where are we in that?
Chintan Shah
That’s what I said. So today, they have handed over the plant to the production team. Water trials and leakage tests have begun. And we will do chemical trials 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 various products.
Sanjesh Jain
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 plant to commercial use.
Sanjesh Jain
That’s clear. And update on the photochlorination. Where are we in that process of photochlorination chemicals?
Chintan Shah
That we have very successfully and 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. So it supplies for April to June quarter. So that is going on very nicely and technology is working just fantastically well.
Sanjesh Jain
Got it. Got it. And on the second part, pharma side, are we through the dossier or we are still in the process of getting the —
Chintan Shah
It is 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’s still maybe a couple of quarters before the actual commercialization will settle.
Sanjesh Jain
So we still see second half of CY ’26, we should be able to supply pharma, or it can get delayed by a little bit there?
Chintan Shah
No, no, that will begin. That will begin.
Sanjesh Jain
That will begin. Got it. And any further detail on Jolva side we are proceeding? Any capex plan there? How much you are planning to invest, any of those numbers?
Chintan Shah
So this is — we will do it in two large phases. So the first phase is going to be greenfield, right from bringing up — filling up land to building compound — boundary walls and all, common utilities and stuff like that. We expect this phase to have a capex of about INR265 crores, INR270 crores.
That final amount we will have within the next weeks’ time. So those final drawings and designing and estimation work is going on. So probably this is where we look at the number between INR250 crores to INR275 crores as capex.
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 on this opportunity.
Sanjesh Jain
Very clear. And last question on the semiconductor side, we said that we are now starting with the plant-scale trial.
Chintan Shah
Plant trial.
Sanjesh Jain
Yeah, plat scale trial.
Chintan Shah
So basically, we have received our first plant scale production order 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 tonne scale. So each of these batches would be about 3 metric tonnes each, and that is where — so some modifications at the plant are ongoing. We are awaiting for certain packaging systems because this is a 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.
Sanjesh Jain
And you mentioned these are three products or a single product with a 3 metric tonne of three batches?
Chintan Shah
Currently what we are doing is first product, the first product. Second product is still under piloting.
Sanjesh Jain
Okay.
Chintan Shah
Yeah, yeah,
Sanjesh Jain
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 definitely proposes to be a big opportunity. If it continues the way it is being shown and what the customer projects, 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 space. And the reason why currently established product is potentially being tried to phase out is because of its toxicity reasons.
Sanjesh Jain
Okay. And this is less toxic, the one we are producing?
Chintan Shah
Yeah.
Sanjesh Jain
Very clear. And any last comment on the electronic — 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’ll 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.
Sanjesh Jain
Okay. So we are right now around 1%. We are telling this will run from 1% will go to 7% to 8%?
Chintan Shah
Yes, yes.
Sanjesh Jain
That’s quite encouraging. And thanks Chintan for all those answers and best of luck for coming quarters.
Chintan Shah
Thank you. Thank you.
Operator
Thank you. Our next question is from the line of Raman KV from Sequent Investments. Please go ahead.
Raman KV
Hello.
Chintan Shah
Hello.
Raman KV
Sir, can you hear me?
Chintan Shah
Very loud and clear? Yeah.
Raman KV
Yes. Sir, I just want to understand, sequentially there has been a decline in the SDA revenue. Is it because the 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 SDAs 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 has not happened, but this is also a by far possibility. So please track the demands or the revenue of this segment, particularly of this segment, on a little longer-term basis.
Raman KV
Understood, sir. Sir my main question —
Chintan Shah
[Indecipherable] this will keep you going crazy. And that is one of the key reasons 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 a few hundred tonnes of demand. So this makes us crazy as well, and it becomes very difficult to justify a quarter-on-quarter sales in this segment.
Raman KV
No, sir, I understood. I understand that. I just wanted to understand the raw material pricing with respect to SDA because last —
Chintan Shah
It’s still the same. That is we are not seeing much change. So it still continues to remain at the same levels.
Raman KV
Okay. So it’s similar to the last two quarter level?
Chintan Shah
Yeah, yeah.
Raman KV
And sir, with respect to the Dahej 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 INR102 cr. That final number is yet to come, but it’s roughly in the range of INR100 crores. And we expect — so this is — basically it is difficult to say that one particular investment is going to fetch me what, because this is kind of going to be used — there are — see, the new agro intermediates which we commercialize, 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 solvents, 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 go of certain things, because we don’t have the infrastructure in place. So this new plant is going to suffice that missing lot.
Raman KV
No. So —
Chintan Shah
Now what we foresee is 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 levels, we feel confident to reach up to a level of INR850 crores to INR900 crores in terms of overall revenue.
Raman KV
That is a consol, including all — with respect to all the —
Chintan Shah
Yeah, Ankleshwar is small. So Ankleshwar plant is contributing roughly about INR100 crores, INR120 crores on annual basis. So all the rest of it is coming from Dahej.
Raman KV
Understood, sir. And sir, my final question is with respect to semiconductor. Can you give us the order size with respect to this first full plant?
Chintan Shah
So this is just a small trial order, a few thousand dollars. Just a small plant trial order to test 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. Potentially customers 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 100 kgs to few thousand kgs. So that is kind of a test which we will undergo with the customer.
And this will be done very closely with customers’ multiple visits during those times when we run the batches, 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 handholding in kind of 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 plant scale as well. So this is kind of a test. So it worths really a few thousand dollars of order value.
Raman KV
Understood, sir. Sir, just a follow-up. Our Dahej plant will start commercial production from Feb last week. And what about the Jolva plant?
Chintan Shah
That will kick off the — we break ground during this quarter, somewhere around same time. Somewhere around mid-February.
Raman KV
So if my understanding is correct, we reported around close to INR50 crores from Pharma and Agrochemical intermediate. So this is X — this doesn’t account for any production from Dahej plant, right?
Chintan Shah
Jolva plant is running, but nothing from the new block in the Dahej Plant, which we are talking of the INR100 crores new capex, nothing has come from as a part of revenue in these numbers.
Raman KV
Understood, sir.
Chintan Shah
See, there are two things going on. One is a INR100 crores capex, which we have just finished, the handover has happened today, and it will start commercial production somewhere around mid-February, okay?
Raman KV
Yes, sir.
Chintan Shah
So 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 Jolva. It’s a completely new site, different location, about 6 kilometers to 7 kilometers from our existing Dahej plant.
Raman KV
Understood sir. Yes, understood, sir. Thank you sir.
Chintan Shah
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
Sir, so could you please help me understand how the SDA demand cycle typically works? So does it tend to be relatively shorter? So my understanding is that zeolite manufacturers generally overholding SDA 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. Zeolite’s order quality soon deteriorates on prolonged storage. These are very stable compounds. So they will stay — the catalyst or the zeolite will stay for years. And even on usage — see, when I say we’ve run 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 — 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, if you just put them idle, they just stay as it is, and you activate them and again reuse after — let us say you want to use it after three years, we’ll be able to do it with same efficiency. So that’s the beauty of this product.
And in terms of — see, they are running a number of different products. So — and they don’t buy raw materials for each product from me. So I may be qualified for certain of those products. So whenever they have campaign to make those products, which involves my product is when we get an opportunity to sell into that.
So that for the zeolite producer, their revenues may be — probably they might also going through this kind of demand from their catalyst manufacturers in terms of campaigns. But for them, they may be running productions 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 use.
Darshan Garg
Okay. Got it. And sir, how were the SDA prices in this quarter versus our last quarter?
Chintan Shah
Sorry, what’s that?
Darshan Garg
What — how are the SDA prices compared to the last quarter?
Ajesh Pillai
Which prices? Exchange prices?
Darshan Garg
SDA.
Chintan Shah
What are you asking? Sorry, It’s not clear.
Darshan Garg
Hello. SDA, structure directing agents.
Chintan Shah
Same thing. There is no change at all.
Darshan Garg
Okay.
Chintan Shah
Virtually no change.
Operator
Thank you. Our next question is from the line of Nishita [Phonetic] 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 INR860 crores to INR900 crores. Can you give a timeline for that? When is — when will that be possible? When can we achieve that revenue?
Chintan Shah
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 FY ’26 and FY ’27 from the current run rate of — quarterly run rate of revenue, do we expect to see a 30% growth in FY ’26 year-on-year?
Chintan Shah
I would definitely say a number between 20% to 30% of growth is definitely achievable.
Nishita
And for FY ’27?
Chintan Shah
Similar. Similar. Because by that time, we’ll have a much larger growth potentially if the Jolva plant goes commissioned commercially, right? So the timeline for Jolva plant to get commissioned and put to use, potentially, we are looking at September or October of 2027. So that will have an impact in terms of revenue because it will be an additional facility coming with few new products, expansion of the existing products. So that will have a little larger impact in terms of percentage revenue growth.
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 ’26 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 — let’s say, 22% is a very feasible number that we should consider.
Nishita
Okay. So like can we achieve that in FY ’27? Because in FY ’26 it will be difficult for us to achieve the 20% number. Or can we —
Chintan Shah
Right, ’27, we’ll definitely see that kind of a number because right now, also a lot of expenses in Dahej 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 the 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 our margins 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 Gopani from Unique PMS. Please go ahead.
Nirali Gopani
Hello, Chintan bhai. Thank you for the opportunity and congratulations on a good set of results.
Chintan Shah
Thank you, Nirali.
Nirali Gopani
Chintan bhai, 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 FY ’28, ’29?
Chintan Shah
It’s still too early, Nirali, to give this number. But these are very large volume products. And — so what — see, this is all, let us say, if I’m saying it’s a INR100 crores opportunity, for example, to give a number. But in reality, it could be a INR2,000 crore opportunity.
So the number is so vague that it’s difficult to talk of this number. So the number of customers will 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 a 100% basis everyone converts to the new product, and it is beyond Tatva Chintan’s scope to even supply that kind of volume.
Nirali Gopani
Understood. Understood. And Chintan bhai, we have always been ahead of the curve 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.
Chintan Shah
Already there are a 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’ll 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 commercialize it.
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 that the current capacity can take us to INR850 crores, INR900 crores of revenue, are we being very conservative? Because I feel ’24, ’25, also we have been seeing this number of INR850 crores, INR900 crores. 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
A lot of recent capacity expansions that we have done is most — a 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 a byproduct. So we are trying to optimize the profit.
So these — the last legs of expenses that have gone actually speaking in last one and a half years, most of it has gone towards optimization in terms of achieving 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, a lot of money we have spent towards optimization — operational excellence kind of thing, you can say.
Nirali Gopani
Perfect. Thank you for answering.
Chintan Shah
And plus, probably the pricing in any product you pick, any product, chemical product, potentially pricing is at a nearly three- to four-year low. So we are looking at the numbers from that perspective today.
Nirali Gopani
Yeah. So, Chintan bhai, time and again, we feel — and across chemical, not only on Tatva that this is a bottom and the prices will 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 that question I’ll not be happier than that. Because this is what we have been — see, I told just last or a couple of questions back that 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. So I think we have found the bottom, now probably — and if I look — I meet number of customers in various segments, right? Because we are catering to a 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, the number of factors, which are currently impacting globally, so that is what makes things a little difficult or I don’t know what. 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 bhai.
Chintan Shah
Thank you.
Operator
Thank you. [Operator Instructions] Our next question is from the line of Mohit Jain from Xponent Tribe. Please go ahead.
Mohit Jain
Hi, sir. Just a couple of questions. Firstly, on the SDA piece, Euro 7 norms are obviously kicking in Jan ’27, if I remember correctly, right? So has the inquiry from the customers started coming in? Do you expect —
Chintan Shah
Not the inquiries, we have started already. We have a part of our business coming from the Euro 7 demands already. We are commercially selling products, 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
Understood. So we’ve done about INR150 crores —
Chintan Shah
And this is getting 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 we’ll move to Euro 7.
Mohit Jain
Understood. But usually, what happens is, sir, whenever there is regulation change, there is a very big demand surge that one sees just before the regulation comes in, right? So one would expect, at least next year to be fairly strong as far as SDA is concerned for 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 what is happening, going from Euro 6 to Euro 7 is norms are becoming a 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 sir, we’ve done about INR150 crores in SDA for nine months. Now given — we had also spoken about onboarding a fairly large customer who we were doing trials with in SDA, which was supposed to scale up from this calendar year. What is the growth that we can anticipate in this segment for this year, sir?
Chintan Shah
I think, 25% to 30% is what I foresee. Depends again on the commercialization with — we have onboarded two customers, actually. So one, we are into stages of final signing of the contract. So they 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 the second half of the current calendar year to get into commercialization.
Mohit Jain
Okay.
Chintan Shah
So next financial year, we see is quite exciting for this aspect.
Mohit Jain
Understood. And what is our capacity utilization currently, sir, in SDA?
Chintan Shah
It’s now roughly about 50% today, it was down to 35%, now it’s roughly about 55%. So we have enough capacities to go on without any further capex as of now at this stage.
Mohit Jain
Okay. And the momentum for SDA continues in Q4 as well, right? As we speak, you’re not seeing any difference in the trend of growth? Okay. Okay.
Chintan Shah
Yes.
Mohit Jain
So that’s on SDA, sir. On the PASC 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’ve spoken of fairly large opportunity size here. So can you please give us an update on that?
Chintan Shah
Yes. Both have gone very nicely. And the new block, which becomes available to us during this February, next month. So this is where it will give us a lot of leverage in terms of — right now, whatever we are producing, we are with a little delay. So even with a smaller demand, a part of the forecasted demand also, we are struggling 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 grow 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 stage. So that is going to be a big leverage we can use to scale up this business later on.
Mohit Jain
Understood. And including the pharma intermediate, sir, can we do about additional INR200 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 INR200 cr from this product. We anticipate about INR150 cr from 2028 calendar year. I’ll say.
Mohit Jain
Okay. And these new products, both in pharma and agro, how much are they expected to contribute? Only this new product intermediates from in ’27?
Chintan Shah
Roughly about INR300 crores. INR250 crores to INR300 crores.
Mohit Jain
No, no, sir, sorry, I may have misunderstood this. So we have three agro intermediates and three pharma intermediates. Is that — is my understanding correct here, first, that are coming up?
Chintan Shah
Correct. Right.
Mohit Jain
And all of these get commercialized, I mean, obviously, some of them start in mid-Feb, but FY — in FY ’27, from the six intermediates, are we expecting additional INR200 crores to INR250 crores of sales? Is that what you’re hinting at?
Chintan Shah
Yes,
Mohit Jain
Okay.
Chintan Shah
Exactly that is what I am talking about. Yeah.
Mohit Jain
Okay. And this is on top of the —
Chintan Shah
Sir, you already are seeing some of the sales, okay? So it’s not going from zero to that. We may already have INR25 cr, INR30 cr, INR40 cr of sales that is recorded in the current financial year. So what I am saying, potentially, this will hit somewhere about INR200 crores, INR250 crores in revenue in calendar year 2027.
Mohit Jain
In calendar year ’27? Okay, calendar year. Got it. Got it. Understood. Okay, sir. Okay. Thank you. Thank you so much.
Operator
Thank you. Our next question is from the line of Jay Vaghasia, an individual investor. Please go ahead.
Jaya Vagasia
Yeah. Hello, Chintan bhai. Thanks for the opportunity. So my first question is regarding ROCE. So even at 55% to 60% utilization in SDA, our ROCE is around 7%. So unless the prices increase even at 80% to 90% utilization levels, our ROCE would at 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 reactor. So the conventional process and the continuous flow. So there all gradually the occupancy is increasing. So that will have an impact in terms of ROCE numbers. So it’s not going to be this 7% or 10% in terms of numbers for next financial year.
Jaya Vagasia
Okay. Okay. And secondly, you already mentioned in earlier —
Chintan Shah
Considering the prices 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 Chintan bhai in previous con calls, you had already mentioned that the newer products will be lower in asset terms. But are you confident that they’ll be more or less then 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 end up benefiting in terms of nearly zero waste, so your major part of affluent costs and destruction of that affluent 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 will 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, we will have to —
Jaya Vagasia
So put the numbers, so we can have more or less margin similar to SDA. Is that what you are saying?
Chintan Shah
Correct.
Jaya Vagasia
Right. And last question will be, Chintan bhai, last con call, you mentioned that PASC 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 Jolva site 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 a lot of space in the existing plant. So whatever is commercialized so far continues to remain in Dahej, and it will have some space to grow further, as I said, about INR850 crores, INR900 crores, depending on the product mix what we do.
So we expect this can go up to INR850 crores, INR900 crores in revenue from the existing plant. And then Jolva, 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 INR850 crores to INR900 crores —
Chintan Shah
It will be completely different. It will have nothing to do in common with our existing Dahej 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 Dahej site as of today.
Jaya Vagasia
Right, right. So this INR850 crores to INR900 crores that you are saying that is combined PASC, SDA, electrolyte as well as PTC, correct? Right. Sure, sure. Thank you so much. Thanks for the opportunity.
Chintan Shah
Thank you.
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 Tatva Chintan, thank you for joining us on today’s earnings 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
[Operator Closing Remarks]