Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Vidhi Specialty Food Ingredients Ltd (NSE: VIDHIING) Q4 2026 Earnings Call dated May. 14, 2026
Corporate Participants:
Unidentified Speaker
Bipin Manik — Chairman and Managing Director
Mitesh Manik — Chief Financial Officer
Mihir Manik — Joint Managing Director
Analysts:
Gokul Maheshwari — Analyst
Unidentified Participant
Pushkar Jain — Analyst
Ankit Kulkarni — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to Vidhi Specialty Food Ingredients ChemTech Q4 and FY26 earnings conference call. As a reminder, all part 7 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 assistance during the conference call, please signal an operator by pressing Star then zero on a Touchstone phone. Please note that this conference is being provided. I now hand the conference over to Ms. Vidiwasa from MUFG in time.
Thank you and over to you Ma’. Am.
Unidentified Speaker
Thank you Nitesh. On behalf of MUFG NPAN, I welcome you all to Vidhi Specialty Food Ingredients Limited Q4 and SY26 Earnings Conference Call. From the management side we have Mr. Bipin Manik, Chairman and the Managing Director Mr. Mihirmanik, Joint Managing Director and Mr. Mitesh Manik, Chief Financial Officer. I hope everybody had an opportunity to go through our investor deck that we have uploaded on Exchange and the company’s website. A short disclaimer I would like to say before we begin the call.
This call will contain some of the forward looking statements which are completely based upon our beliefs, opinions and expectations as of today. These statements are not a guarantee of our future performance and involve unforeseen risk and uncertainty. With this now, I hand over the call to Mr. Bipin Manik. Over to you sir.
Bipin Manik — Chairman and Managing Director
Thank you. Good afternoon everyone. It’s my pleasure to welcome all our esteemed shareholders, navies and partners to Investor Coal of Hiddhi Specialty Food Ingredients Ltd. For the financial year ended 2025 26. The year gone by has been marked by significant global economic uncertainty, geopolitical tensions, tariff pressures and a noticeable slowdown in demand across several international markets. Industry across the chemical and specialty ingredient value chain have witnessed pricing pressures, postures, inventory management by customers and slower consumption trend in key export geographies.
Despite these challenging conditions, Vidhi has delivered an exceptional performance demonstrating the resilience of our business model, the strength of our customer relationships and the agility of our management team. Our continued focus on operational excellence, disciplined cost management, product mix optimization and value added offerings has enabled us to maintain healthy margins and deliver sustainable growth even during a difficult market environment. Over the last year, we have also accelerated our strategic transformation journey.
We continue to strengthen our position as a trusted global supplier of colors while simultaneously expanding our presence into higher value added and application driven segments. One of the most exciting development for the company is the strong progress being made in our quote icon range of tablet coating systems. The product range is currently an aggressive sampling and customer qualification stage with several multi pharmaceutical companies both in India and international markets. The response received so far has been extremely encouraging and validates our long term strategy of forward integration into specialized application based solutions.
In addition, our R and D and innovation pipeline remains robust with multiple exciting product ranges currently under development and in pilot plant stages. These initiatives are aligned with our vision of building and diversified specialty ingredients platform catering to food, pharmaceutical, cosmetics and allied industries. We believe these investments will create meaningful long term growth opportunities and strengthen Vizi’s positioning as a comprehensive solution provider. Our commitment towards innovation, sustainability, quality and customer centricity continues to remain at the core of everything that we do.
We are making strategic investments in technology, infrastructure, product development and human capital to ensure that Vidhi remains future ready and well positioned to capitalize on emerging opportunities globally. Looking Ahead While the external environment may continue to remain uncertain in the near term, we are optimistic about the future. With a strong balance sheet, expanding product portfolio, improving application capabilities and growing customer engagement across the new business verticals, we believe the Company is entering into an exciting new phase of growth and transformation.
Before I conclude, I would like to express my heartfelt gratitude to our employees for the dedication and hard work, our customers for their continued trust and our shareholders for their unwavering support and belief in Vizi’s long term vision. With that I now hand over to our CFO Mr. Mitesh Manek who will take you through the detailed operational and financial performance for the year. Thank you once again for joining us today and for being a valued part of the this growth story. Thank you.
Mitesh Manik — Chief Financial Officer
Good afternoon everybody. I am pleased to present the financial performance of Vidhi Specialty Food Ingredients Limited for the financial year ended 31 March 2026 and to share an overview of the Company’s operational and financial progress during the year financial year 202526 was a year characterized by significant external chall including tariff pressures, geopolitical uncertainties, inflationary trends and volatile freight markets and a slowdown in the global demand across several end user industries and despite these headwinds, the Company delivered a resilient and commendable performance through disciplined execution, improved operational efficiencies and continued focus on value added business segments.
During the year in question, the Company reported a revenue of 380 crores as against 382.30 crores in the financial year 2425. While demand conditions remain relatively subdued in certain international markets for the first half of the year, our focus on product mix optimization, customer diversification and Operational discipline enabled us to maintain strong profitability and healthy cash flows. The EBITDA for year 202526 stood at rupees 78 crores compared to rupees 68 crores in the previous financial year.
Accordingly, the EBITDA margins improved from 17.91 to 20.52% supported by better realizations, increased contribution from specialty and high margin products, improved manufacturing efficiencies and tighter cost management initiatives. Across operations, profit before tax increased to 65.97 crores as against 60.16 crores in financial year 2425 while the net profit stood at 49.15 crores reflecting a year on year growth of 12.80%. The net profit margins improved during the year demonstrating the company’s ability to protect profitability even in a challenging business environment.
On the balance sheet front, the company continues to remain financially robust with strong liquidity position and conservative leverage profile. Our debt to equity ratio remained very low at 0.28% highlighting prudent fiscal management and disciplined capital allocation. The return ratios also continued to strengthen. Return on Capital Employed Improved from 2 I’m sorry Improved to 20.90% from 20.17% in the previous year while return on Equity increased to 14.94% as against 14.92% in the previous year reflecting efficient utilization of capital and sustainable profitability.
Overall, the performance of financial year 2526 reflects the resilience of Vidhi’s business model, the strength of our operational foundation and our ability to navigate difficult market conditions while continuing to invest in the future. I would also like to take you all through a few other ratios which we have for you. The debtors turnover ratio improved from 2.91% in 24:25 to 2.66% in 25:26. The inventory turnover ratio also improved from 4.99% to 4.70% in the year 25:26 current ratio, I.e. The working capital ratio improved from 2.92% to 3.91%.
Accordingly, the interest coverage ratio of the company reduced from 2.87 28.27% to 16.75%. In the current year operating profit margin improved from 18.75 to 21.01%. Profit after tax improved from 11.66 to 12.93% and profit before tax improved points from 16.10 to 17.36%. So this overall shows that the year 202526 has been an excellent year for the company. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question answer session. Anyone who wishes to ask the question may press star N1 on the touchpoint telephone. If you wish to remove yourself from the question queue, you may star N2. Participants are requested to use handsets for asking a question. Ladies and gentlemen, we will wait for one moment while the question assemble. We have first question from the line of Gokul Maheshwari from Avriga Capital. Please go ahead.
Gokul Maheshwari
Yeah, thank you for the opportunity. So while you know it’s Fairly clear that FY26 was a fairly challenging year on account of tariffs and also some geopolitical events given part of the tariff issue is settled, how do you see the outlook for FY27 in terms of volumes and sales?
Mitesh Manik
Any other questions you have for us or is this the only one?
Gokul Maheshwari
Okay,
Mitesh Manik
Okay, then I’ll just give all
Gokul Maheshwari
My questions. So one is second is on your EBITDA margins. So over the last few years we have sort of given up on trading sales and the business model has moved towards manufacturing sales where there was an expectation that the margins will improve substantially. But in the last three, four years the margins have been fairly range bound while there is some positive bias but it has not gone up as per that expectations especially also on a focus on higher realization projects. So can you just give an outlook on the margins also that where do you see them settle down in the next one to two years?
Third is on your comment on the fact that you’ve cut the dividend and we as investors we completely support the management with respect to cutting dividend and investing the business cash flows back into the business for new projects. So both these projects on pharma coating as well as the cosmetic of the pigment range. If you could just indicate what kind of capex which you are expected to do for each of these projects. Timelines, when is this expected to come on stream and how do you see the scale up for these three?
And lastly was just a clarification. Our capacity used to be 8100 tons which was split into ROAS 3900 and 4200. In the PPP you mentioned 7500. Is there a reclassification of the capacity? These were my four questions. I look forward to your answers. Thank you.
Mitesh Manik
Thank you so much. I will take the opportunity to answer all your questions one by one with regards to the total installed capacity, the number is relevant to the kind of product mix that the company chooses and undertakes to manufacture. So you know, depending on how we continue to improve and change our product portfolio what we are manufacturing, the capacity of the company would, you know, tend to differ a little bit here and there. Now with regards to the, you know, to the outlook which you have asked for, 2627, the demand of the company remains highly robust.
As far as, you know, 2627 is concerned then we expect full utilization of both our Daij and Doha facilities in this financial year. With regards to the EBITDA margins, I would like to point out, you know that out of the total revenue from operation which we have indicated that is 382 crores versus 380 crores in FY25 26 the manufacturing sales has been 330 crores from which most of this EBITDA margin has evolved. So if you see the actual EBITDA margin on manufactured sales it would be close to 24, 25% which was what the target of the company was as far as synthetic food colors and a certain other value added products which we are now increasing the sale from time to time.
And as these value added products and certain specialized products used in certain industries continue to increase in quantity, the EBITDA margins of the company are expected to rise even further from the same manufacturing facilities. Now with regards to the Capex, which is to be done on our pharma product line which is the code icon which we have recently introduced and the other products which we wish to now introduce, I will give you the breakup of what is, you know, the expected outflow. On the pharma on the, on, on the core tycoon range, you know, on the scale up of the manufacturing of that particular product line, our outflow is expected to be between 5 to 12 crores.
And with regards to our other new products which we wish to introduce, the capex outflow is expected to be between 75 to 85 crores. In the first place,
Gokul Maheshwari
This is going to be spent in FY27 only.
Mitesh Manik
Most of it, yes. Most of it will be spent in FY27.
Gokul Maheshwari
And the commissioning would happen in the next. In this current fiscal itself.
Mihir Manik
No. 18 months.
Mitesh Manik
The commissioning patent would require 18 months. Yes.
Gokul Maheshwari
Okay, so this should be in the middle of
Mitesh Manik
Calendar
Gokul Maheshwari
Year 27. Calendar year 27. Financial year
Mitesh Manik
2728. Yeah,
Gokul Maheshwari
Middle of financial
Mitesh Manik
Year 2728.
Gokul Maheshwari
Okay, great. Thank you for this. I will come back with you for more questions.
Mitesh Manik
Thank you.
Operator
Thank you. Thank you. We have next question from the line of Dipesheti from Manaya Finance. Please go ahead. Mr. Deepesh, your line is unmuted. Please Ask your question. There is no response. Hello. Hello. Am I audible? Yes sir. You audible?
Unidentified Participant
Yeah. Just wanted to understand how is the margin expectations in the coming future and if you can even give the guidance for the ROE. Will the ROE be in the same 15% band or are we expecting a better ROE?
Mihir Manik
I think this question has been answered in detail given by our CFO in the last question where he laid out in detail as to how what have been the EBITDA margin so far from the manufacturing side of the business and what. What will happen with them as we go ahead. So I think that that fully covers your question. If you.
Unidentified Participant
That’s okay. So I’ll be listening. Yeah, yeah. My second question was regarding when is the commercial production of both the capacities going to happen and with that if you can give the. If you can give the guidance for that also.
Mihir Manik
We just answered all of this, my dear. It seems you have not been listening to the call.
Unidentified Participant
No, no. Point is I joined in late, that’s why. No problem. I’ll go through the concord details.
Operator
Thank you. We have next question from the line of Pushkar Jain from Millie Capital. Please go ahead.
Pushkar Jain
Yeah. Hi sir. Congratulations on good set of numbers. My question is regarding working capital. So I was seeing that there has been, you know, increment in working capital requirement in the last six months. So can you give some reason why it is attributed?
Mitesh Manik
Like I explained while I was going through the ratio analysis, the debtors turnover period has slightly reduced from 2.91 to 2.66%. And the inventory turnover ratio is also reduced from 4.9 4.70. So there hasn’t been any incremental working capital which has been introduced. Just you might have seen the difference on the interest cost of the company which is due to the subvention on you know, export finance which has been withdrawn from by the Indian government as of December 2025.
Pushkar Jain
Oh. So the impact of that would be
Mitesh Manik
The finance cost of the company has increased slightly due to the, you know, withdrawal of subvention scheme on export finance. However the interest coverage ratio has come down from 28.27 to 16.75.
Pushkar Jain
Okay, thanks a lot sir.
Mitesh Manik
My pleasure.
Operator
Thank you. Reminder to all the participants that you want to start to ask a question. Reminded to all the participants that you must start to ask a question. The next question from the line of Ankit Kulkarni from Kamaya Wealth Management Private Limited. Please go ahead.
Ankit Kulkarni
Hi. Thanks for the opportunity. My first question is regarding the higher value margin value added products around X1N we were at 15%, 1 5%. Currently, where are we in terms of the higher value products and when do we intend to reach the 50% higher value products that we had intended in H1 Concord? This is my first question and my second question is I wanted to understand better regarding the newer product lines that we are coming up with. So what is like the time that it takes to get approvals, what sort of client basis?
Of course the kind of the end user industries are given. But how did we actually come up with the opportunity and how do we expect to kind of materialize it in the best way possible going forward? These are just my two questions.
Mitesh Manik
Right. Okay. So to answer to your first question, currently the contribution of the high margin high value products in our total product portfolio mix is around 5% and increasing gradually in the coming year 20, 26, 27, we expect it to go to around, you know, in the range of 10 to 12% or it may be higher also because there are certain, you know, approvals and evaluations from customers awaited which we expect all to be in the favor of the company because of the quality we maintain. So it might be higher also.
Now with regards to the newer product lines which we one of them which we have launched and the other one which we are going to launch, the tablet coating system like you know, we said, is in the aggressive phase of sampling and approval from several, you know, pharmaceutical companies in India and across the globe. And the general time cycle required by them is close to six months time because our products, when incorporated in their final products also go through a certain stability test, etc.
Which takes a bit of time. But you know, the initial feedback which has come out from most of the companies is very favorable and we are excited about the same with regards to the other line of products which are on R and D stage right now. We would not like to disclose much more about them but what we can say is that, you know, the company has dwelled upon, you know, related industries to which we are already working with right now. So it is not. And you know, we have also started sampling to, you know, to several customers and it is a line where most or some of the market is already within our reach and through the current distribution channels which the company has world over.
Ankit Kulkarni
Wonderful sir. I just have one follow up if I’m permitted. What is the competitive scenario and margin profile for the new product?
Mitesh Manik
See, as far as, you know, competition is concerned, it’s relatively thin and the margin profile is expected to be excellent because of that fact here.
Ankit Kulkarni
Thanks a lot for the answer and all the best for the next year.
Mitesh Manik
Thank you so much.
Operator
Thank you. The next question from the line of Zener said from Africa Capital Advisors, please go ahead.
Bipin Manik
Good afternoon, team. Am I audible?
Operator
Yes, sir, you audible.
Bipin Manik
Oh great. My first question is when you mentioned about the tariffs that were there last year, how are the inventory levels during last year, were they in a way below normal? And how, given how geopolitically things are, do we kind of expect our customers to increase inventory levels? So that’s my first question. Second question is on slide 8. You speak of a transformational journey starting for the company. Can you give a perspective on what investments you’ve done in people, R and D and obviously the new products which in a way you mentioned for the next level of growth.
And my last question is that US sales have been roughly anywhere between 150 to 200 crores in that range for the last three to four years. How do you see that outlook in the next 12 to 24 months for the same. Thanks.
Mihir Manik
Okay, so I will take this question myself in here. Hello.
Bipin Manik
Yes. Yes.
Mihir Manik
Yeah, so number one, I will start in the reverse order. So as far as your question with regards to 150 to 200 crores of annual sales for the US market is concerned, look, you are the way that since January 25, since when Mr. Trump is, you know, taken chair as the president of usa, his policies have been, you know, very volatile. These issues that keep coming and going. So a lot of disturbances have been occurring because on account of this whole tariff tantrum that has been, you know, taking place over the whole last period of last 12 months which, which has gotten a lot of instability.
So, you know, one cannot, you know, in the, the fact that we were able to sustain ourselves in the US market in, in such a volatile business is, you know, a matter of great satisfaction for us. But naturally as things settle down in the US market with regards to that, you will see that overall the market will definitely open up substantially as far as the RND investments etc are concerned. We have outlined this in our previous calls. Also I will again laid out for you that we have two R&D facilities in the outskirts of Mumbai.
These have in excess of 60 dedicated chemists only working on R D projects, right from developing in house process protocols to pilot plant production and then passing it to the plant for commercialization of these products. So they are all starting from BSc, MSc right up to PhD. We have a number of PhDs in our research facilities. We have invested in excess of 4 and a half to 5 crores only on the analytical equipments in these R and D facilities. So you know, substantial amount of investments are going, profits are being poured back into R D projects which is creating a robust product pipeline for CapEx projects that can be taken up for the next 10 years.
So we have an existing business plan on which we are working commercializing these products which can be, you know, done every 18, 24 months. We have a new pipeline of products that are being commercialized which leaves us with a very clear pathway of growth for a longer period of time that is one whole decade from now. So and then this is, this business plan is ever evolving also. So this is what is being done publicly at Vitish and I’m sorry, any part of your question that I have not yet answered.
Bipin Manik
Yeah, I think. Thanks for the detailed answers for these two questions. I didn’t mention about the inventory levels, what they were earlier in the sense were they lowered during the time of the tariffs and no, this is,
Mihir Manik
This, this is, this is something that our CFO will answer that.
Bipin Manik
Thanks Mirbai.
Mitesh Manik
Thank you Mr. Meer. See the point is that you know, when the tariff scenario existed the inventory levels had risen to some extent and you know, in fact coming into February 28, the slightly higher inventory levels which the company was maintaining came of great use because as we all know that as soon as the disruptions in the Middle east, you know, territory started, the pricing of all the raw materials etc started moving upwards quite sharply and your company was very well positioned with, you know, with regards to their inventory levels due to their reason, you know,
Bipin Manik
I was referring to the inventory level at the customer end.
Mitesh Manik
Oh yes, of course, the custom, you know, the inventory levels at the customers end was almost 50% reduced because you know, because of the tariff. So what they were trying to do was to, you know, sell whatever they had from their own warehouses trying to buy some time and you know, see what happens with the tariff situation. So, so when the 50 tariff was applicable in Indian products, of course the inventory level that the customer end was on a much lower side than what they used to be. You know, now they are.
Yeah.
Mihir Manik
I would also like to add a few points here. See apart apart from just discussing inventory levels, what is. I will give you some additional information even though you may have not asked for it. As far as the, even the current scenario is concerned of this Middle Eastern conflict, what it has done is that a lot of the economies, like for example even Iran itself is a big market for colors which is completely out at this point of time. Countries Like Bangladesh have also been for decades a good market which has again been disturbed since last two years.
They don’t have any money to buy food or rice or diesel. What they will buy color, you know, so there are several such markets wherein you know, the economic. Right now Philippines is a very strong market for us. But right now, you know, if you see the condition of the whole Philippine Philippine economy, naturally there will be a slowdown in their color purchases also. So you know, all these economies globally, countries which have been impacted by this crisis, firstly they were impacted by, they were facing slowdown because of the tariff tantrums by Mr.
Trump. And now to top it up now this whole Iran issue causing, you know, further strain on these economies. Even with all these, you know, impediments, what we have been able to do is that we have been able to put up a very robust performance in terms of sales which gives us a very good amount of confidence that as things improve geopolitically, all these markets which are currently, you know, right now, you can say facing very challenging situation. Once they run their geopolitical situation starts improving.
You will see the demand from, for color also improving from these markets and abstracts. We see good times. We are very confident of better performance going ahead as soon as the geopolitical scenario starts improving.
Bipin Manik
Just one point there is that since US is a large market for US and obviously that was impacted because of tariffs. So what I’m trying to understand is that because of that resolution there are we seeing inventory replenishment at the customer end in the US market
Mihir Manik
More than us. US is now stabil price has now stabilized. But, but more, more growth will come from the other markets which are right now severely impacted. See which is, which is doing worse at this time. Only then you can be more hopeful of improvement. You know, this is law of nature, you know, even, even in a bit market stocks which have fallen the most rise the fastest one once the shadow turn. So same will be with these markets, you know, the demands of these markets will be much sharper once once the geopolitical situation starts easing out is what I’m pointing out.
Bipin Manik
So in a way are you indicating that over the next three to five years US dependency will start reducing?
Mihir Manik
Certainly yes, certainly yes. We see more, more sales coming from EMs EM markets is always something where, where there is sales growth in percentage points. See, because UX is the biggest economy on your sale. Even if you see the GDP of us, if it grows by 2%, they get excited. But even if the GDP of India goes by 6 to 7% it is not so exciting. Why? Because they are growing at a base of 38 trillion 2%. You are going at a base of 3.8 trillion by 67%. Absolute number. It comes, you know it is always the U.
S who’s growing much more than you. Similar will be the case in terms of our color sales. You know, in percentage terms. If you see the growth in percentage terms in the years will be much more than the US but because of the absolute size of US Numbers in US will look bigger.
Bipin Manik
Perfect, Perfect. Thanks a lot. Thanks a lot.
Mihir Manik
Yeah,
Operator
Thank you. We have next question from the lineup survey from Bill with capital. Please go ahead.
Unidentified Participant
Hi. Thank you for the opportunity. So we spoke about changes in our product mix and moving more towards the value added products. Apart from a normal food colors. Some of the products that you’ve mentioned in the PPT include co blended lakes, salt free dyes, fluorescent dyes. Wanted you to spend some time on these value added products. How much of a business is coming from this? How does the realization and the margin profile of these differ from a food color business and your outlook on the growth for these segments?
Mitesh Manik
You know, let’s not get into the number specifics as far as margin profiles etc. Are concerned. But like you know I mentioned just a while ago, the contribution of value added products to our portfolio currently is at 5% and continuously growing as we as we make inroads into several other markets and end user, you know, industries for these
Ankit Kulkarni
And 20,
Mitesh Manik
26, 27 we expect expect the contribution to double from what it was in 2526. And of course you know they enjoy a very, very high margin profile. Needless to say, without getting into specifics here,
Unidentified Participant
From a company average, would you want to state any ballpark difference, say 2, 3% above the company average, anything of that sort?
Mitesh Manik
Well, I would like to say it is much above the company average.
Unidentified Participant
Sure sir. So my second question is on the other expenses. The trajectory that we’ve had is around 16, 17 crores per quarter. I see there’s a sharp increase in other expenses in this quarter. Wanted to understand is there a one off there or are these expenses more related to front loading of some of the expenses for some of the new projects that you’ve highlighted? No,
Mitesh Manik
It is a one of, you know, other expenses partly on the R and D side and a part of it is also gone towards the US FDA certification costs wherein we have, we are paying $1 per kilo to US FDA and then when we sell those products to our customers, we are Passing it on to them. So this is not exactly an expense for the company. It will be passed on to the relevant customers once those products are sold from our end, you know.
Gokul Maheshwari
But since that realization
Mitesh Manik
Is going to come in the present year, we would have. We’ve had to extensive doubt in March 26th.
Unidentified Participant
Got it? Got it. Understood sir. Thank you.
Mitesh Manik
My pleasure.
Operator
Thank you. We have next question from the line of Sai Ganesh from Square 64 Capital Advisors. Please go ahead.
Unidentified Participant
Thank you, sir. Am I audible?
Operator
Yes. Are you audible?
Unidentified Participant
Yes. Please go. Listen. Yes. With 44% of our export share coming from USA and the USS was planning to bank synthetic plus how does it come out of our company plan to tackle the situation if this happens?
Mitesh Manik
See, let me. Let me explain you one thing. The US was never planning to ban synthetic food color. So that perception is completely false. There was no, no plan to ban synthetic food colors, you know. And with regards to the percentage share of our exports into the U.S. The percentage is not 44%. Our exports to the U.S. Are pegged at 19%. And that includes. That includes Canada also. So the North American continent which we have highlighted consists of Mexico, Canada and USA.
Unidentified Participant
Okay, understood. Because I saw article regarding FDs going to bank petroleum based synthetic Dyson.
Mihir Manik
There are several hundreds of such articles which have come over the last two last one decade. But nothing happens. So unless and until there is any state investigation or directive by the US FBA which is not happening at this point of time, there is no point in making any such speculative remarks.
Unidentified Participant
And
Mitesh Manik
What happens is to further explain this. The entire range of colors which we are exporting to the US FDA have been approved by the US FDA itself and found fit and safe for use in human consumption. And even as of today, each and every batch is controlled by the US FDA wherein we have to send a sample to their Washington laboratory. They will test the product and once they find it fit for human consumption, only then it will be allowed for use in the U.S.
Unidentified Participant
Okay sir, understood. What will be the realization difference between a synthetic and a natural food color like light basis?
Mihir Manik
That is some data which is not available because both the synthetic and natural color industries are very loosely regulated and covered. So you know, I mean they are not covered by any market reports or anything. So you know, as far as the what margins the natural color companies are making and there are no such listed entities in the Indian market also. So no such data is available to be captured. Comparison is not possible at this point of time.
Unidentified Participant
Yes, I was asking regarding the realization found a per kg basis of synthetic and natural. Because we don’t
Mihir Manik
Know natural colors. How can we tell you that? What are the, what are the 4kg realizations on a natural color? Right.
Unidentified Participant
Okay. Okay, understood sir. Thank you sir.
Operator
The next question from the line of Mr. Shakit from Kapoor Corporation. Please go ahead.
Unidentified Participant
Namaskar sir. Hope I’m audible.
Operator
Yes,
Unidentified Participant
Yes sir. I joined late, so sorry for any repetitive question. Firstly sir, with the, with, with the opening remark which I especially the. In the, in your investor presentation, in your address to the shareholder you have alluded to the aspect that there are going to be meaningful changes in terms of what our company was currently and how things are going to shape up. So if you could just allude to us in terms of the margin profile and the incremental revenue that we are expecting especially from the, the two projects at first at ROHA and the other one I think so at the Hedge and just give us some color by what.
How is the current financial year shaping up?
Mitesh Manik
See the current financial year as far as the existing product lines is shaping up well. Now as far as the new product lines are concerned we have already informed that one part of it which is our quote icon, Tablet Coating systems. They are in a very aggressive phase of sampling world over to all the pharmaceutical companies and have a very high margin profile and once they are through with the stability testing and approvals we can start you know, large scale operations on that, on that line. And with regards to the other product line which is currently in the RNB and the pilot plant stage without giving too much information as of now as it is not, you know, it is not in the benefit of us all.
What I would still like to reiterate is that again it’s a very, very high margin profile product line with the almost 10 to negligible competition and you know the prospects for that line are extremely bright in the future.
Mihir Manik
No, and, and we can add one point that. Please go
Mitesh Manik
Ahead. We
Mihir Manik
Have already, we have already, we have already said that you know we’ll be investing around 75 to 85 crores for the capex for this project which is, which is going to be taking off at the age of. And in the first phase we will hope to get about anywhere between 125 to 150,000 of sales at CapEx.
Operator
Thank you participant. This, this was the last question I now hand over call to the management for closing comments.
Mitesh Manik
Right. So we would like to thank everybody present for today’s investor fall. And you know while your company strives to make the next year very fruitful. We look forward to everybody’s support in our journey. Thank you so much.
Operator
Ladies and gentlemen, on behalf of Vidhi Specialty Food Eating Resistance Ltd. That concludes this conference. Thank you for joining us. And you may not disconnect. Thank you,