Anupam Rasayan India Ltd (ANURAS) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Anupam Rasayan India Limited Q3 FY '26 Earnings Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Krishna Patel from EY. Thank you, and over to you.

Thank you, Vikra, and good afternoon, everyone. Welcome you all to Anupam Rasayan India Limited Q3 9 Months FY '26 Earnings Conference Call. To take us through the results and to answer your questions, we have with us the management of Anupam Rasayan India, represented by Mr. Anand Desai, Managing Director; Mr. Gopal Agrawal, Chief Executive Officer; and Mr. Vishal Thakkar, Deputy Chief Financial Officer. The discussion that we may have today may contain certain forward-looking statements relating to the future events and future performance. Numerous factors could cause the actual results to differ materially from those in the forward-looking statements. Please note the audio of this earnings call is a copyright material of Anupam Rasayan India, cannot be copied, rebroadcasted, attributed in the press media without specific written consent of the company. With this, I would like to now hand over the call to Mr. Anand Desai, Managing Director, for his opening comments. Thank you, and over to you, sir.

Thank you, Krishna. Good afternoon, everyone. And thank you for joining us for our Q3 and 9 months FY '26 earnings call. For the 9 months ended December 31, 2025, we delivered consolidated revenue of INR 1,730 crores, translating to 84% year-on-year growth. EBITDA stood at INR 402 crores, up 53% Y-o-Y growth and PAT was INR 166 crores, registering 71% year-on-year growth. For the Q3 FY '26 specifically, revenue stood at INR 512 crores, up 31% year-on-year basis. EBITDA was INR 130 crores and PAT came in at INR 61 crores, translating to a growth of 12% year-on-year basis. The strong performance reflects scale-up of commercial molecules, improved capacity utilization across manufacturing assets and increasing contribution from execution of order book across Agro and Performance Materials verticals. This was further supported by strong performance in Pharma segment, which contributed 19% of sales for 9 months FY '26. Our revenue mix today is well diversified across Agro, Pharma, Personal Care and Performance Materials, providing portfolio balance and demand visibility. During the year, agro demand has shown a clear recovery supported by improving channel inventory levels and gradual normalization of global demand. The Agro segment delivered healthy revival in demand, reflecting improvement in customer offtake. Pharma continues to remain a key growth driver for us where the focus is import substitution of key starting materials and intermediates for high growth, high-value end product and pharma products. Our Performance Materials portfolio, which includes segments such as defense, electronic materials also delivered strong growth. And for 9 months FY '26, it has contributed to 17% of our revenue. In 2022, we had acquired a controlling stake in Tanfac, which helped us secure uninterrupted access to key raw materials such as HF and KF that are critical for fluorination chemistry. This backward integration reduces supply chain risk, improves cost stability, enhances reliability for global customers and enables development of high-value-added fluorinated intermediates for Anupam. In a similar spirit of expanding our geographical footprint and access to high-value and critical end markets during the quarter, we have signed a definitive agreement to acquire 100% equity in Jayhawk Fine Chemicals, a U.S.-based specialty chemicals company from the CABB Group. We are currently in the process of completing the formalities of the acquisition and expect it to be closed in the coming weeks. With this acquisition, Anupam will get a direct onshore manufacturing presence in the U.S., significantly enhancing alignment with key multinational customers. The acquisition further strengthens our platform depth across the value chain and enhances access to fast-growing innovation-led end markets such as semiconductors, automotive, EV, pharma, aviation and electronics, which will help accelerate our participation in these high-value segments. Strategically, this acquisition strengthens our footprint in North America and further enhances our capabilities in advanced custom synthesis and improves access to regulated and innovative-driven markets. Moreover, we expect the acquisition to be EPS accretive from day 1. This acquisition is aligned with our long-term objective of evolving into global specialty chemical platform, serving key geographies and high-growth and high-value sectors. With that, I will now hand it over to Gopal bhai for his operational insights.

Thank you, Anand bhai. As Anand bhai mentioned, our focus continues to be on commercializing pipeline molecules, improving asset utilization, standing supply chain resilience and deepening technical capabilities across our key chemistry platforms. The pharma and polymer pipelines remain strong with 65-plus molecules across R&D and pilot stages. We are manufacturing key starting materials and intermediates for globally relevant blockbuster molecules such as Atorvastatin, Sitagliptin, Dapagliflozin, Vonoprazan and others. Within pharma alone, we have more than 30 molecules in R&D and pilot stage. In the polymer and electronic material vertical, we have 35-plus molecules under development and pilot stages. Pharma continues to show strong momentum with growth of 85% on a year-on-year basis in 9 months FY '26, driven by ramp-up of recently commercialized molecule and addition of new products. The Polymer and Performance Materials segment also delivered a strong growth of 245% on a year-on-year basis in 9 months FY '26, supported by increasing demand across advanced material, electronic chemicals and next-generation material applications. Our growth continues to be driven by high entry barrier chemistry, complex multistep synthesis and long-term qualification cycles, customer cycles. This typically results in strong customer stickiness and long-term supply visibility. We are also seeing strong traction in Japan, where our revenue contributed was almost 17% this quarter. This growth is supported by increasing engagement with addition of new customers and expansion of new molecule within the -- with the existing customers. Japan continues to be and it remains a pretty strategic geography for us. Our focus remains clearly on deepening relationship with global innovators, expand fluorination chemistry capabilities, ramp up pharma and performance material portfolio and execute the Jayhawk integration smoothly. We remain confident in our growth trajectory and committed to disciplined long-term value creation. With that, now I request Vishal bhai to take you financial overview.

Thank you, Gopal bhai, and good afternoon, everyone. I would like to highlight that the growth this quarter has come from the ramp-up of execution of our order book. In 9 months ended 2026, LOIs and contracts contributed over INR 250 crores of revenue, demonstrating strong conversion of pipeline into commercial revenues. Overall, 58% of our total revenue came from exports, reaffirming our strong and diversified global presence. Our working capital intensity remains broadly in line with what we had in Q2, and the working capital days downward trend continues. Looking ahead, we remain optimistic about growth momentum continuing into the next fiscal year, supported by our pipeline visibility, deeper customer relationships and expanding global footprint. I would like to share some key performance highlights for the quarter before we open up the floor for Q&A session. I hope you had the opportunity to review the detailed presentation and the results that were uploaded on the exchange website -- exchanges and company website, sorry. 9 months FY '26 highlights. For the consolidated revenue was at INR 1,730 crores, up 84% Y-o-Y. Consolidated EBITDA was at INR 402 crores, up 53% Y-o-Y. Consolidated PAT for 9 months was at INR 166 crores, up 71% Y-o-Y. Consolidated EBITDA margin for 9 months FY '26 stood at 23%. Q3 FY '26 highlights. Consolidated revenue was at INR 512 crores. The consolidated EBITDA for the quarter was at INR 130 crores and the consolidated PAT for the quarter was at INR 61 crores. The quarterly consolidated EBITDA margin stood at 25%. Thank you. Now we can open the floor for the questions.

[Operator Instructions] The first question is from the line of Tanya Choudhary from Investec.

I think you mentioned that Jayhawk's acquisition will be EPS accretive. So what is the EPS impact this quarter because of the acquisition?

So right now, we have not yet consolidated the numbers as the transaction is yet to be completed. And hence, no contribution of the Jayhawk's revenue or profit has been added to this quarter's results or the 9-month results that we have announced. And going forward, once we conclude this transaction, which we are expecting, as Anand bhai said, over next week or 2 or a couple of weeks, we shall be then adding it to the next quarter's numbers appropriately.

[Operator Instructions] The next question is from the line of Harsh Shah from Emkay Global.

So my question was what are your plans strategically with this asset we are acquiring?

Okay. So let me take a stab and then probably we can add further as well. But let me start with first that if you see, we have been clearly focusing on expanding our footprint in U.S. as an end market. And especially, we were looking at a Performance Materials business, which we were expanding, which we have continued -- which has expanded over the last year or 2 or more, and we expect it to continue. But with the acquisition of Jayhawk, 2 things happen to us very, very significantly. One, we get a critical manufacturing asset base in the U.S., which is a very, very, very important asset that would be there, especially when we are looking at a client -- attracting clients in the U.S. market as we are able to offer a very strong local supply chain for them. Second, if you look at it, Jayhawk has a large part of the revenue coming from U.S. and from the Performance Materials business, which is largely into semiconductors, into aircraft business, aerospace business, into pharma, into EV and electronic automobile industry, which will be very, very helpful to expand the portfolio. Third, also, if you look at it from a supply chain point of view, we are able -- we will now be able to offer a broader and a wider supply chain to our end customers where we practically can start from Tanfac and build it from Anupam and go further to Jayhawk. So it's a very strong platform that we are offering. Third, if you look at it from a technology point of view, they have very strong technologies that they have, especially in the high-purity business and which is what we think will help us in terms of leveraging it to offer a basket of products to our end customers. Also, one more thing is that they have validation with a lot of very high-end customers in the U.S., which typically takes a long period for any company to get validated, which further will enhance the speed at which we can expand our business in U.S. So overall, across assets, across supply chain, across technology, across customers and across portfolio, we will be able to leverage the whole platform and offer a broader, larger stable supply chain offering to our customers. I hope that helps.

[Operator Instructions] The next question is from the line of [indiscernible].

The first question is regarding LiPF6. So now while the process optimization capabilities and Tanfac's backward integration in the fluorine chemistry are clear strengths. So now could management please share any additional factors that made Anupam the preferred choice over the 2 to 3 other established global players already manufacturing LiPF6?

Yes. So see, the whole approach that we have taken here of offering a full supply chain, a, b, coupled with the technical capabilities that Anupam has of doing multiple chemistries both put together and at scale. These 3 typically helps any customer who work with us, who can offer a long-term supply chain solution. This project, we have been working with them for a long period of time. And today, now the large multinational has to work with -- offered us to work with them. And that's the thing. So if you were to ask me, there are 2 or 3 broad ones. One, technical capabilities across multiple chemistries; 2, the access to supply chain; and 3, an effort of over years together to work with a multinational company like that and references that we have created that as a very reliable, sustainable supply chain partner is what brings us to being a preferred partner with these customers.

And the next question would be, like we've seen U.S. players increasingly seeking Indian suppliers for LiPF6 to diversify from SOC countries. So however, Anupam's recent LOI is with European players like Elite who may lack a similar regulatory mandate. Now assuming the end product is not getting consumed in U.S. So could you please elaborate on why these European partners selected Anupam beyond process optimization and stand pack integration, especially given China's pricing dominance?

See, I would not talk about the other part of the world, but let me talk about ourselves and why this has happened with Elite. The point I was making earlier also is that every customer -- today, if you look at it, there is a full scale up happening and everybody will need a large quantity of volumes here. And when they need large quantities of volume with the full ramp-up, they would need customers -- sorry, suppliers who has a strong credible supply chain solution. They are not looking at somebody who can import from somewhere and then process it. It is a full supply chain first. So that is very, very critical. And especially when you're into a B2B kind of a business and especially a new business where you need to ramp up quickly, that happens even more. Second, what they will also need is that do we have the chemistry capability to optimize as we go. If you see, historically, we have been able to demonstrate to all our customers that we have been able to achieve a strong cost optimization and process optimization, which plays the cost curve as we scale up. So that again helps them. Also, if you look at the case in the point that we were talking about, we had recently announced another announcement, which was with Elementium of U.S. So it is not as if that we are only working with the European partners, but also with the American partners. And all of them are looking at working with us because, again, as I said, I'm repeating myself, but it is supply chain, assets on ground, chemistry in place and cost optimization and process optimization that we can offer. So I think that's what I can say, and that's how we see it.

[Operator Instructions] The next question is from the line of [ Siddhinathan ] from JM Financial.

Just have one from my side. Could you please give some clarity on how much improvement there has been in your working capital days and what your targets are for FY '27 and FY '28.

Yes. Sure. So as of now, we are around about working capital intensity for the consolidated would be around 250-odd days. And we expect that in the near term, we should be going towards 220, 200. And as you said, '27, I think '27, we should be below 200, around 180 days or below is the management's focus and target here. And we can talk about it -- talk about further plans as we go, but this is as is planned.

[Operator Instructions] That was the last question for today. I now hand the conference over to the management for closing comments.

Thank you. On behalf of the management of Anupam Rasayan India, we thank all of you for joining us for our post earnings call today. We hope we have been able to address majority of your queries. If there are any further queries, you may please reach out to E&Y, our partner -- Investor Relations partner for any questions, and we will be happy to answer offline. We now close the call. Thank you, everyone, and have a good weekend.

Thank you very much. On behalf of Anupam Rasayan India Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.