Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Yasho Industries Limited (BSE: 541167) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Parag Jhaveri — Managing Director & CEO
Chirag Shah — Chief Financial Officer
Analysts:
Sejal — Analyst
Naeem Patel — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Yisho Industries Limited Q4FY26 earnings conference call hosted by MUFJN Time. 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 a Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms.
Sejal from MUFG in time. Thank you. And over to you ma’. Am.
Sejal — Analyst
Thank you. Yusuf. Welcome to Yashu Industries Q4 and FY26 earnings conference call from the management today we have Mr. Parag Zaveri, Managing Director and CEO and Mr. Chirag Shah, CFO. Before we proceed with the call, I would like to give a small disclaimer that this call may contain certain forward looking statements which are based on business operations and expectations of the company as of today. These statements are not guarantees of future performance and involves risks and uncertainties which are difficult to predict.
A detailed disclaimer has been given in the company’s investor presentation which is uploaded on the stock exchange Now. I would like to request Parakh sir to give his opening remarks over to you. Sir.
Parag Jhaveri — Managing Director & CEO
Good evening everyone and thank you for joining us for the Yashva Industries Q4 and FY26 earnings call. We appreciate your continued support and engagement. I trust you have reviewed our financial results and investor presentation. FY26 was marked by a challenging global environment for specialty chemicals with type disturbance, geopolitical tension, supply chain volatility and cautious procurement trend impacting demand and pricing. Despite these headwinds, industrial industries delivered resilient performance through disciplined execution, strategic decision and operational efficiencies.
Consider revenue reach rupees 830 crore up 22.7% year on year while EBITDA stood at rupees 144 crore with margin improving to 17.4% supported by product mix, operating leverage and cost optimization. Exports contributed positively while investor chemical segment remain the key growth driver. We strengthened our long term platform with investment in R and D and manufacturing with additional manufacturing line in high growth categories are being commercialized and expected to contribute meaningful to revenue and margins.
A key milestone was securing a 15 years long term agreement. This reinforces our capabilities and enhanced revenue visibility for us in the long term. Advance funding of rupees 51.4 crore has already been received reflecting strong customer confidence. Our plant facilities operated at above 60% utilization in FY26 due to the various challenges what we have faced with improving sentiment and enhanced customer engagement, we target over 75% utilization in FY27. Supporting EBITDA margin expansion for FY27, the company has planned a capex of rupees 125 crore which will be completely funded through internal accuracy.
Our R and D facility completed in October 25th is now fully operational, accelerating innovation and strengthening our portfolio. In this challenging times, I would thank our investor for their continued faith and trust in Yasuo. We continue to work towards building a strong business and increasing shareholder value over the long term. With this, I hand over to our CFO Mr. Chirag Shah for the detailed financial updates.
Chirag Shah — Chief Financial Officer
Thank you Paragbhai and good evening everyone. I will now take you through the financial highlights for Q4 and FY26. For Q4, FY26 revenue was rupees 246.72 crores up 33%. Year on year, EBITDA stood at rupees 44.71 crores with margin at 18.1% R reflecting 23.7% growth. This was driven by improved execution, cost management, sourcing efficiencies and plant productivity. For FY26, volume growth was 33% year on year supported by stronger customer traction and scale up across categories. Industrial chemicals contributed 87% of revenue for both the quarter and the full year while Exports accounted for 62%.
Underscoring resilience despite global challenges in FY26, the company generated positive cash from operations of Rupees 152.75 crores. Financial discipline remained strong with debt to ebitda improving to 3.75 times from 4.70 in FY25. We also prepaid rupees 23.30 crores of FY27 liabilities leaving only rupees 15.6 crores due, easing repayment pressure and enhancing flexibility. Capex for the year FY26 was rupees 75 crore. For our long term contract signed in FY26, we received an advance of rupees 51.4 crore.
With execution progressing as planned, we expect the revenue from this to start realizing in FY28. With improving demand, strong operations and continued financial discipline, we are well positioned to deliver consistent and profitable growth to our investors. Thank you and we now welcome your questions.
Questions and Answers:
Operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone if you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. First question is from the line of Dheeraj Kumar Reddy from Alpha Square. Please go ahead.
Naeem Patel
Thanks for the opportunity. Sir. I just wanted to understand what. What kind of.
Operator
You know, what are we seeing with 1500 crore revenue target to be achieved by FY28. What. What is fundamentally driving this and what are the kind of molecules which. Which we are working in order to build our capabilities.
Parag Jhaveri
Well, first and foremost we are expecting to utilize our assets by FY28 by optimal. When we say optimal 85 to 90%. That will drive us also in FY28. The special project where we got the advance which will come in commercial operation. So that will also add street. And that gives us confidence. Besides when we talk about the new molecules we are working on a number of applications. Besides our traditional business. That’s rubber and lube working on many chemistries. So that should also add to the top line.
Operator
Got it. Sir, beyond 2028 like what kind of areas are we working? I mean beyond rubber. What. What are the additional categories which the company focusing on in terms of R and D,
Parag Jhaveri
I cannot get too much much into that. But I can tell you we are working more to the performance chemicals which can drive the future growth of the company. Also besides our traditional field where we are working today.
Naeem Patel
Sir, it is not rubber. You mean this is X rubber. It could be semiconductors or anything. I mean I’m just guessing it. So
Parag Jhaveri
I. I don’t want to name it. But I don’t know. You a wrong hope or feedback to you that we work on a semiconductor. We could work on a data center. No, we don’t do all that thing. We are. We are purely chemical producers. We are. We are the B2 bay. We are not in B2C segment. So. And we. We are working on an initial segment on a different applications.
Naeem Patel
Got it. Thanks.
Parag Jhaveri
Thank you.
Operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question. You may press star and 1. Next question is from the line of Parikshit Gujarati from Niveshai. Please go ahead.
Naeem Patel
Hello. Hello. Yes.
Operator
Please go ahead.
Naeem Patel
Yeah. Yes. Thank you for this opportunity. Sir, my first question is. Previously you mentioned that all the revenue growth has come from the volume growth of 33%.
Operator
So there is no price growth. Means you have not seen any growth in the sales due to currency depreciation. Of INR against USD and euro,
Parag Jhaveri
Those are very, very minor. As you know, we also import equivalent quantity of raw materials from overseas. So that again will always nullify. There will be a slightly more age on export side. But if you look at net to net, there is import, export and a little bit extra on export side. So I won’t say that the currency prices depreciation can help. Yes, it do help to some extent. The company always measures growth in terms of a volume what we sell rather than a value. Because value is always volatile in current situation.
There is also a lot of pricing pressure due to the various factors. Add in FY26. So the prices were always under pressure and margin was also under pressure.
Operator
Okay, so perfect. So my second question is many of our raw materials are linked to petrochemical derivatives, right? And also crude prices have moved up significantly due to this global crisis. So I want to ask that how does crude movement impact our margins? Because if you look at yoy basis our margins
Unidentified Participant
Were not hit that high volup
Parag Jhaveri
Margin. I will give that credit to my sourcing team greatly how they maneuver it the supply chain also with the some product mix also that has been negated. Low margin product has not been pursued but the reasonable margin product has been pursued here. So yes, it’s a mix of a lot of that. The effort from sourcing team, manufacturing team, sales team, everybody together help us to remain afloat and to hold on our margins. Okay?
Operator
Okay. Perfect, perfect. My last question is that so without naming any customer for the order which we have got from the big MNC player. So if that order get completed on time successfully. So there are other big additive players which are expanding into India their operations. So can they be open to our customer as well
Naeem Patel
In the next three, four years? Yes, very much. Okay, got it. Thank you so much. Thank you.
Operator
Thank you. Participants, to join the question queue you may press star and one next question is from the line of Naim Patel from Basin Research. Please go ahead.
Naeem Patel
Hi. Thank you for this opportunity and congratulations on which side of India. So
Operator
My first question was on the EBITDA margin side. So historically you know Yasho has guided for 17 to 19% guidance and now I’m as. So is it in the same band or like are they expecting now 20% plus or any color on that?
Parag Jhaveri
I think we have, I have already mentioned that we are looking for the better margins for competitive this year. So yes, we are expecting at least 2,3% higher EBITDA compared to what we had purely because of the operational efficiency when we Are driving up the utilization beyond the 70% we should able to rationalize lot of cost.
Operator
Understood. And you know considering the tariffs as moderated compared to Q2 as well as Q1 and Q4 now has the customer base from us. What is the response on that side? And like how are we looking into the America geography for FY27 if
Parag Jhaveri
You could
Operator
Highlight on that.
Parag Jhaveri
Well definitely the tariff has helped us to expand our sales in Q4 and that can see me the results. And we believe that that America’s market is going very well for us even in the this quarter
Operator
And for FY27 onwards also we believe there are steady responses. Is that correct?
Parag Jhaveri
I think yes, yes, very much.
Operator
And just to follow up on the geographic front as well we are seeing some slowdown in the European economy. And you know Europe is also one of our key markets. And now we are targeting our capacity utilization to ramp up to 75% as well as this supply side disruption from shade of hormones. So like how are we going to navigate to achieve this target of 75% utilization considering these dynamics?
Parag Jhaveri
I know one side we see that the slowdown in Europe and second time some segment we see the good demand coming up to us. Besides Europe we also venturing into the Asian market which was not highly penetrated by US. And third the Americas market is opening up. So that will also help us to achieve product utilization.
Operator
That’s all from my side. Thank you very much.
Parag Jhaveri
Thank you.
Naeem Patel
Thank you.
Operator
Thank you. Next. Next question is from the line of Harshit Singhanya from Robo Capital. Please go ahead.
Unidentified Participant
Hello, I’m audible.
Operator
Yes, yes, please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity and congratulations on a great set of results. Just a few questions. So you have guided that the peak potential of both the plants combined is around 1450 crores. So that is as per the existing capacities.
Operator
Yes.
Unidentified Participant
Okay. And the pathogen plant has further potential to land on which there can be development.
Operator
Yes.
Unidentified Participant
Great. And right now we are taking an active effort of not taking much more debt. So can that be assumed like for 27, 28 both that the debt levels are going to be on the lower end only.
Parag Jhaveri
I won’t assure that. What we are showing is that that credit ratio to come down and our comfort zone will be in the, you know, two and a half times. That’s what we want to draw. So first let achieve that and then we’ll talk about the debt. Till that we don’t want to talk about the increase in the debt. Absolute number could rise. But when you look at the ratio point of view, it will remain in that.
Unidentified Participant
Okay, great. That’s it. From my side. Thank you so much.
Parag Jhaveri
Thank you.
Operator
Thank you. Next question is from the line of Arnav from in Gaya Ventures. Please go ahead.
Naeem Patel
Good afternoon sir. Shivam, this side such as one of the first 10 on the domestic demand that was validated in Q3 and Q4 despite exports being on the lower side. So is this domestic demand coming from a new set of customers or there’s an existing customers demand ramped up and which segment that is contributing to this domestic front? Sir,
Parag Jhaveri
Domestic front is driven mainly by industrial segment that is growing very well for us. We have added some few customers and existing customers also increase the share from us maybe to they might be having a supply issue from some other existing supplier. So we have got opportunity to capture them. So multiple factors help us to expand our reach or domestically also and we hope that we continue that with the speed.
Naeem Patel
So expect this demand from this new set of customers and even the existing set of customers from domestic to continue. And so one more point on this. What I’ve observed this particular quarter that despite having a higher domestic share the margins have improved. So do you see this trend keep continuing despite higher contribution from domestic margins will be there?
Parag Jhaveri
I think so. It will be what grow the margin is a better utilization in a Q4 that has helped us to achieve. And if we are going to utilize our plant capacity to 70, 75% that will also improvise the margin further up. And that’s why we are giving a guidance of improvised EBITDA 220 or so.
Naeem Patel
And sir, final question. And the industrial segment, anything that you can highlight whether it was rubber or lube additives which was contributing.
Parag Jhaveri
I think all segments are doing quite good for us.
Naeem Patel
Fair. Thank you so much.
Parag Jhaveri
Thank you. Thank you.
Operator
Thank you. Next question is from the line of Rupesh Tapia from Long Equity Partners. Please go ahead.
Unidentified Participant
Hello. Hello sir. Thank you for the opportunity and congratulations on good, good results. Sir, I. I have very basic question. I’m relatively new to the company. Can you tell me what, what percentage of your revenue come from automotive engine oils and what percentage comes from, you know, industrial engine oils. And with, with the EV penetration, what kind of risk do you see to our portfolio?
Parag Jhaveri
Okay, I. Let me be honest, I don’t have how much my customer used for automobile or industrial. I. We don’t have that data number. Second question is on ev. Yes, EV is increasing but we don’t see a draft risk for next 15 to 20 years that could be A reality down the line. But not in next five, 10 years. We could be a threat to the lubricant industry. Number three, besides the automotive industrial segment of lubricants is also growing rapidly due to the data center, due to the solar or due to turbine or wind power.
So there is also demand, increasing demand happening. So we don’t and we are capturing all these segments. I don’t see a big threat in a near to the medium to long term 10, 15 years. What is then we don’t see a threat on our business software lubricant.
Unidentified Participant
Okay. Okay. The second question sir is is there any area in which we make our own formulation for lubricant and sell that? Because what I understand is formulation is a bit hard, it’s proprietary and probably higher margin. So any, any idea about what percentage of our revenue comes from formulations? How we are looking at it?
Parag Jhaveri
Yes. So don’t do any formulation. Yes. You only make the pure chemicals. So all Yasho’s customers are who make formulation and we don’t compete with our customer. That’s the policy of the Yasho. So we don’t have any intention to go in that direction.
Unidentified Participant
Okay. Okay. That, that is, that is very clear. And and so the final question is, I mean the current Pakhajan plant we are currently in phase one but in the past you have also talked about doing phase two. And phase two will be sort of like a downfield capex. So at what point do you start looking at phase two? What kind of products will you do there? Any, any comments on that?
Parag Jhaveri
I don’t have like phase two today because that’s an ongoing in FY26 also we spent about 40 crores in a Pakadon. As an additional Capex we have a special project running that is about 90 crore capex in this or in addition we are looking at 100 crore capex in Pakhajan. So that’s an ongoing process that will continue till we totally exhaust our land available to manufacture.
Unidentified Participant
So your capacity went from 12,000 to 32,000. What is the capacity now and what is the maximum that we can go to?
Parag Jhaveri
Honestly speaking I don’t know what is my current capacity. But I can tell you in Pakhajan we have made a two in a production building and we can build additional four production building so that four building will be start constructed one by one as we see the ramp up or the additional demand coming in.
Unidentified Participant
Okay. Okay. Thank you. Thank you for answering my question. Yeah,
Parag Jhaveri
Thank you.
Operator
Thank you. Next question is from the line of Chintan Shah from JM Financial family office. Please go ahead.
Unidentified Participant
Hi. Thank you so for so much for the opportunity. Mr. Par. I was just going through the presentation and you know we sort of changed the language there. So Norm, you mentioned that we are an emerging global specialty chemical partner to MNCs and plus we are doing a lot more investment on the R and D side. So just wondering as a strategy is changing more towards sort of a CDM model and just wanted to understand is this more customer driven or what exactly is happening that is driving this change?
And if you think about it for four to five years down the line, how did the company evolve? Would we see a much higher mix driven contracts versus the products that we manufacture on our own?
Parag Jhaveri
Yes sir. It’s not governed for the CDMO kind of work. But we don’t mind. Sorry. We don’t mind leveraging our capabilities to tie up with some big user who is looking to source large volume from Yahshua. Okay, so that’s my answer.
Naeem Patel
Okay. Okay. Got it. Understood. That’s all I have. Thank you.
Operator
Thank you. Next question is from the line of Ankur from Access Capital. Please go ahead.
Naeem Patel
Yeah. Hi sir. Thanks for the opportunity. First question. You know in a presentation we are guiding for a 1500 crore
Operator
Revenue by FY28. So what sort of, you know visit here do we have? Is it largely contracted with respect to the customer demand ramp up etc? You did alluded towards, you know ramping up your existing capacities. But you know how is the demand visibility there?
Parag Jhaveri
I think with the more communication with the customers and expanding our customer base which is helping us to grow the market with the current challenges we are able to gain confidence of our customers who are a little bit, you know, conscious that whether far away from India the supplier can support us or not. That we have proven even in the difficult time of this. So that is helping us with some customer commitment coming to us on the table which is helping us to give a guidance of 70, 75 installation.
And if you see 75% utilization that is more 15% than what we had today. It will be that will give us confidence. And also the project which you are doing with the one as to the customer that will also start kicking in from early FY28. So all this thing will help us to achieve 1500 crore revenue in FY28.
Operator
Sure sir. Just a follow up here. The commitment and the customer ramp up that you are referring to. This is largely a same product going to more number of customers and geographies or these are New products also which are going to the existing ones.
Parag Jhaveri
Well, the relationship what we built with the new customer is exclusive to them. So that cannot be shared to anybody. It’s what we. But similar chemistry we had also been. And that can be shared to all the customers across the board.
Operator
Sure sir, that’s helpful. And secondly on our working capital, you know if you can, you know share some thoughts there. We used to be 120, 150 day working capital but after there is an increase. So if you can just help us, you know better understand how to look at that part.
Parag Jhaveri
I think we were at the 200 odd days in FY25 but 215, 216 days we are probably down to 190 days today. Our datas are constant that are not increased. Only the stock has dropped to some extent. That is help us and let me be honest, higher stock has helped us lot in this crisis. That was blessing disguise to us. Okay. So we could navigate very well with the last three months supply challenges of raw material. Since we had enough stock we could manage it well. So if you ask me today how much you want to reduce.
I said I’m. I’m happy. But it will come down as a number of days. But the as a absolute number it will remain same. So we would like to bring it down to 175, 170 in the next six to 12 months rather than drastically bringing down and wait for a raw material to have a production.
Operator
Sure
Naeem Patel
Sir, that’s helpful. Thank you for all the answers and all the best.
Parag Jhaveri
Thank you.
Operator
Thank you. Next question is from the line of Dheeraj Kumar Reddy from Alpha Square. Please go ahead. Hello. Hello sir. Am I audible? Hello.
Naeem Patel
Yes.
Operator
Hello sir, in the previous participants question can you just again touch upon the CDMO model? Because historically company has been evolving moving away from commodity to entering into more complex areas. Can you just elaborate that answer again?
Parag Jhaveri
Well, CDMO is something which is done in more, you know, API segment and those kind of segments. We are not in that segment here. We are not cater here to cater for a smaller volume kind of thing. Somebody wants 20 metric ton, hundred metric ton. I don’t think so. Yeso is there to do that kind of a model. We have a design looking into the molecule which we can produce at least 5002000 metric ton minimum and then pick it up from there. So we are not looking at a CDM or CDM style. But yes, we are looking for a cooperation with the customer who are looking for a larger volume which they will source from us.
Yes, we are there for that.
Operator
Understood, sir. Also in one of the interviews you mentioned that beyond 28 the idea is to ramp up the current two facilities to probably 4, 5, 6 facilities. Right? Sir, how do you see that journey coming? What will drive that? What are the kind of areas which company at least if you can touch upon. Like what? I mean how. How is the company foreseeing that that growth occur beyond 28 is what we would like to understand it from you.
Parag Jhaveri
Well beyond 28 we have a lot of molecules which we think that will help us to grow beyond that or even also our existing product. There are certain opportunities where we can go further. So we would like to do a deal. We will look at the product portfolio from where we can increase. And number two, we are in a process of introducing more chemistry in our portfolio. So that will also help us
Operator
Of entering into one molecule is more like replacing. So any Indian customer is already doing it or it’s it’s only us who is actually supplying it to this mnc. From an Indian geography standpoint. And what is the typical market size of each molecule, Sir?
Parag Jhaveri
Well, we are looking at each molecule. Nothing less than 50 crores at least to add to our top line. Otherwise we are not interested to look at some molecule which does give a revenue of 5 crores. When you are looking at the 1500 crores and adding a molecule offer 5, 10 crores revenue does it going to help us? No, my dear friend. So we need to look at the molecule which gives at least 50 crores revenue to work in R and D. That is much more meaningful. Because R and D takes a lot of resources. Not only the human, also financial resources.
So we need to be very careful what we are, where we are going to spend our money.
Operator
And what about this Indian geography competition? Sorry, are we sole supplier for these molecules or are there any other?
Parag Jhaveri
Always there is a competition. Always there’s a competition. You cannot claim that you are a soul. If it could be that one of the product I could be sold today, tomorrow there could be some more producer. So you cannot claim that. And that’s not. I would like to comment on it.
Unidentified Participant
Understood, sir. Thanks. Thanks a lot.
Parag Jhaveri
Thank you.
Operator
Thank you. Next question is from the line of Agastya David from CAO Capital. Please go ahead.
Naeem Patel
Hello. Am I audible? Yeah. Thank you very much for the opportunity, sir. So most of my questions have been answered. One question that I had was is there any sort of disruption or distortion dislocation in the supply chain. Either your from your raw material side or the end user Side or in your company in the space of your competition which you can point out as of now because of the problems in Middle East.
Parag Jhaveri
Well, I can give n number of points. Number one, lot of imports are getting delayed which generally typically takes three to four weeks. That ends it taking more than eight to 12 weeks to get the product. So that’s one of the biggest challenge. We at times we don’t know where our import contains the line and then those are the challenges you want to. When we are exporting earlier days to the USA was only 25 days. Today it takes more than 6070 days to reach the container to USA.
Naeem Patel
These are timing issues. Also the quantity, the supply itself is missing. Will this solar later become a volume issue?
Parag Jhaveri
Well, this will attempt to cause a problem at our end that we have been stuck with a lot of material because it’s not been moving out quickly or sometimes we are waiting for one of the key raw material which is not coming. So the production hamper or you have to buy at a different price from the market. So there are multiple challenges come and the number three the challenges because of this petro chemical challenges. Lot of raw materials are not available or available at a very fancy price. So you want to take a decision can you afford to buy that price or you do wait.
So there are multiple challenges today. Yeah. And some of the challenges have been mitigated by having a very high inventory.
Naeem Patel
So just last question to. I mean just to elaborate this point. So is there a particular time by when this problem becomes a really big problem and you won’t be able to substitute or wait long enough? I mean when do the volumes really dry up of the things? Let me. Let me be
Parag Jhaveri
Honest. I neither I have a crystal ball nor I have a source from a White House which can give me that information. What’s going to happen tomorrow?
Naeem Patel
Right, Right. Okay. Okay sir. Thank you very much sir. All the best sir. All the best. Thank
Parag Jhaveri
You.
Operator
Thank you. Next question is from the line of Pujan Shah from Molecule Ventures. Please go ahead.
Naeem Patel
Thanks for the opportunity. Sir. My first question pertains to. Can you give us some sense on the volume part?
Parag Jhaveri
Well, we always say that we are in FY26. We have grown by 33% and in volume terms and in the next year FY27 we are expecting to grow by utilization to go by our 15% or so. And the volume growth should be somewhere in the range of 40 to 50%. Again we should getting that growth.
Naeem Patel
So due to all these situations.
Parag Jhaveri
Sorry to interrupt. You are not clear. Can you go slow.
Naeem Patel
Yeah, just, just.
Operator
Am I clear now sir?
Parag Jhaveri
Yes,
Naeem Patel
Yes. Okay.
Operator
So my first. The question why I’m asking is I just want to understand because we have seen a quite a bit of increasing prices of the chemicals. Obviously the base chemicals and the even the lubricant chemicals have been increasing the price in terms of China and our competitor. So just want to understand how these prices have been sustainable going across for a year or two and how we are seeing. Because we are being benefited by two things. One, Hello.
Parag Jhaveri
Yeah, first and foremost again I said I don’t have crystal ball how long this will continue, what will happen. Nobody can answer that today. So I have no idea, no idea about when the price will normalize. Absolutely no idea. I cannot comment on that part of it.
Operator
Yeah, yeah I agree. But my question pertains to how. How much percentage of price increase we have seen from the base like pre war era to right now in current st
Naeem Patel
About 10 to 15%.
Operator
10 to 15%. Okay. Okay. And are we getting any benefits of being the Y appreciation or rupee depreciation altogether. So that will ultimately expense out the more on the imports that will ultimately help which we have been seeing in the domestic growth. Is that a curve is that can be a fall we should take or it is more on the product quality and the working capital of what they like to manage. Because ultimately shipments are taking are being delayed right now.
Parag Jhaveri
There are multiple reasons can influence that. Number one, availability. Number two, how much you can pass on when the prices are increasing or margin always come under pressure. One cannot pass on 100%. One actually absorb something because of the relationship or whatever nature or the what kind of contract you have with the customer. So there are multiple reasons and one cannot say that what’s going to happen tomorrow. So we are a little bit cautious on that side.
Naeem Patel
Okay, got it. That’s all from my side. Thanks. So thank you. Thank
Parag Jhaveri
You.
Operator
Thank you. Next question is from the line of Anupam Agarwal from Lucky Investments. Please go ahead.
Naeem Patel
Thank you for taking my question. Sir, I just missed your comment on the capex that you have done in FY26 across Vapi Pakhajan and the new project. And what will be the capex in FY27 for different projects?
Parag Jhaveri
Well FY26 we spent about 75 crore. 25 crore we spent on R D about 4042 crores on Pakhajan and about 7, 8 crores into the Vapi. Vapi was mainly for some adjustment into the new product. When you introduce you need to do some capex. So that’s the reason in FY27 we are looking at about 125 crore capex. That will be purely done at the Paka chain.
Naeem Patel
And what will be the share of our capex for this MNC project?
Parag Jhaveri
Zero.
Naeem Patel
Okay, understood. My second question sir, just alluding to your comment to the earlier participants. 15% increase in utilization will translate to 40. 40 to 50% volume growth.
Parag Jhaveri
30 to 30 to 40 dependency that this is a product mix. What product which we sell everything on that. But anything between 30 to 40, 40, 45% volume growth will happen.
Naeem Patel
Got it? Got it sir. Thank you so much sir.
Parag Jhaveri
Thank you.
Operator
Thank you. Next question is from the line of Manjit Buaria from Samya in Advisors llp. Please go ahead.
Unidentified Participant
Thank you for taking my question. If would it be possible to share what percent of our revenue in Q4 came from long term contracts versus spot market out of the 246 crores and the same ratio for the full year 26.
Parag Jhaveri
Well in Q4 it’s a regular business. What we had from Q1, Q2, Q3. So that could be some new customer added there in Q4 but mainly from our regular customer only the businesses came up and that was help us to grow the business.
Unidentified Participant
Right. And I was just trying to understand, you know I thought there were certain long term contracts you were looking at and then there were certain business you would be in the stock market. So is there a ratio within that which you can share? It’s not pressure. That’s long.
Parag Jhaveri
Long term. When you say long term. We have customers who buy on a regular basis. They buy either quarterly pricing or 6 monthly pricing. So that is about 40% of the revenue and balance. 60% come from spot what you call or the customer with whom we have relations over time and they buy as and when they require.
Unidentified Participant
Thank you very much. And par the second question was, you know, over the next two or three years as you know the mix of our products goes up the value addition in our products. Right. Will our gross margin also interrupt from the 40% in FY26 or is 40% the right level to think about?
Parag Jhaveri
I think 40, 40, anything between 48 to 42% should be. Right. Guidance. You know what will help us as we are going to, you know do more utilization of our all the assets that will help us to leverage all our expenses, fixed expenses and that will come down drastically which will also help us to improvise our margins.
Unidentified Participant
Got it sir. And the last question that I missed your response in the earlier question, out of the 125 crore capex for FY27 how much is going to be funded by the, you know strategic contract we have versus you know ourselves. That response, sorry,
Parag Jhaveri
125 is nothing to do with the strategy. That is. That’s a separate capex altogether. That is nothing to do with 125 crore. 125 crore is purely done by Ashra Industries by its internal accurate for Visa product which we want to launch new or where we want to expand further. Got accepted. Thank you so much. Thank you.
Operator
Thank you. Participants, to ask a question you may press star and one next question is from the line of Yash Mehta from SKP Capital. Please go ahead.
Unidentified Participant
So thank you so much for the opportunity. First of all. So I’ve got a few questions. So the first is how should investors think about competitive intensity from Chinese suppliers going ahead especially in brand lubricant addictives and industry alchemicals.
Parag Jhaveri
Strong, very strong. They are very very competitive and they do come hard.
Unidentified Participant
Okay. Okay. And Yasha has also mentioned strong demand visibility from Europe. So has the India EU trade opportunity resulted in better customer engagement and improve competitiveness or new inquiries from European customers?
Parag Jhaveri
Well, number first and foremost India Europe and treaty FTA will come in place only by early January. Hopefully we are hopeful that it will come in by early January. So today what we see is our existing relationship which is helping us to grow also we have our team on the ground in Europe now. They are almost a one year old team. So they are getting more mature. And we are confident that they will be able to deliver much better results to us.
Unidentified Participant
Okay. Okay. Yeah. Got it. Thank you.
Parag Jhaveri
Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question you may press Star and one. Participants, if you wish to join the question queue you may press star and 1. Next question is from the line of Karan Gupta from agmil. Please go ahead.
Naeem Patel
My question is regarding the guidance of 1500 crore.
Operator
Approximately what are the capacity expansion. We’ve included in that the WAPI and is included in that.
Parag Jhaveri
When we talk about 1500 the capacity expansion what we did in FY26 is included in that. FY27 could give some levers for FY20. Definitely will give some levers in FY28. And also the long term contract which is N will give us a leverage in FY28.
Operator
Okay. Okay. And the margins will be maintained?
Parag Jhaveri
Yes, absolutely the margin will be maintained.
Operator
Okay. Okay. And any sector wise group
Naeem Patel
You can share segment wise sector. Sorry,
Parag Jhaveri
I can’t hear you properly
Naeem Patel
Request you
Operator
To please use your handset. Your voice is not clear. You are not audible clearly
Naeem Patel
Now. Now I think it’s audible.
Operator
Yes, please go ahead.
Naeem Patel
Yeah. So to this 33% of volume growth. If you can share the breakup your maybe product wise, maybe industry wise.
Parag Jhaveri
Well the maximum. Maximum volume growth has. Our entire volume growth has come from industrial segment. I can give that much breakup to you. The whatever we gain is on a while there could be a slightly deep into our consumer side.
Operator
Okay. And. And the price you’ve taken. I think it said 10 to 15%. If I’m correct that
Parag Jhaveri
Does not happen across the year. That has only happened now. Maybe. Maybe happened in the last 10 days of March. Earlier the price growth was not there. Price growth is now really clicking from at least onwards. Because till March we already have a fixed prices with customer. So we changed sides of the quarterly or a six month without major customers.
Operator
Okay. Okay. And just last one on the geopolitical scenario side having this geopolitical backdrop how you’re seeing the quarter one, quarter two in terms of crude.
Parag Jhaveri
I have no clue on the crude side because I don’t track that honestly. Yes. But the we see that the price volatility in our couple of solvents. Strong volatility, some connectivity of sulfur base. Can I see we see the strong volatility. Besides that prices are quite stable.
Operator
Okay. We are then we are optimistic about the volume growth then. Yes,
Parag Jhaveri
Absolutely.
Operator
Any guidance you can give on the volume side.
Parag Jhaveri
We already said that we will grow by about 15% on capacity BISA and volumes are between 35 to 45%. Volume growth also will happen in FY27.
Operator
Sorry. 30 to 35%.
Parag Jhaveri
35 to 45%.
Naeem Patel
35 to 45% volume you are saying? And 15 on the capacity addition side. Yes. Okay. Okay. Thank you. Thank
Parag Jhaveri
You. Thank you.
Operator
Thank you. Next question is from the line of Nikhil Purwal from Perpetual Capital. Please go ahead.
Naeem Patel
Yeah. Hi. Thank you for the opportunity. My first question is just a clarification. So the 125 crore capex for FY27 it doesn’t include the capex for the MNC?
Operator
No.
Naeem Patel
Okay. And once the plant for The MNC commercializes in 28 all these advance will be set up against future deliveries.
Operator
Yes.
Naeem Patel
Okay. And last question is on any problem on availability of sulfur
Parag Jhaveri
There is a challenge. I won’t say there is a problem but there’s a challenge to get what we need.
Naeem Patel
Okay. But the quality you’re confident?
Parag Jhaveri
Yes. Okay.
Naeem Patel
I hope the higher Inventories is helping you in this volatile environment now?
Parag Jhaveri
Yeah, to some extent. But we don’t hold sulfur unfortunately. So much quantity. One of the cheapest raw material in our portfolio.
Naeem Patel
Okay. Okay. Yeah. That is it from you. All the best.
Parag Jhaveri
Thank you. Thank you.
Operator
Thank you. Next question is from the line of Lavina Jaguani from Spark Capital. Please go ahead.
Unidentified Participant
Hello sir, just one question from my side. What is the current capacity utilization between Wapi and Pakhajan?
Parag Jhaveri
Well, for March we utilize more than 60% anything within 60, 62% upon in March FY26. That was utilization currently the statute in current quarter it’s been improving but I don’t have the number of improvement how much we have.
Unidentified Participant
What will be the individual capacity utilization like for each plant?
Parag Jhaveri
Well, let me be honest. We are not. We will always talk about the yeso level rather than I’ll talk about the indigenous capacity. So I like to stick to the Yasodo level capacity.
Unidentified Participant
Okay. Okay. Thank you. Thank
Parag Jhaveri
You.
Operator
Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to the management for the closing comments.
Parag Jhaveri
Thank you very much everyone joining this call. Appreciate your time. Thank you. Have a good day.
Operator
Thank you sir. On behalf of Yeshua Industries, that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.