Sigachi Industries Limited ($SIGACHI)

Good evening, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to Sigachi Industries Limited Q4 and FY '26 Earnings Conference Call hosted by Go India Advisors. [Operator Instructions] Please note this conference is being recorded. I would now like to hand over the floor to [ Ms. Riddhi Shah ] from Go India Advisors. Thank you, and over to you, ma'am.

Thank you, Akash. Good afternoon, everyone. It's my pleasure to welcome you on behalf of Sigachi Industries Limited. Thank you for joining us today for quarter 4 and FY '26 earnings call. We have on the call Mr. Amit Raj Sinha, Managing Director and Chief Executive Officer; Mr. O.S. Reddy, Chief Financial Officer; and Mr. Vivek Kumar, Company Secretary and Compliance Officer. Please note that today's discussion may include certain forward-looking statements and must, therefore, be viewed in conjunction with the risk that the company faces. I would now like to hand it over to the management for opening remarks. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone. Welcome to the Q4 FY '26 Earnings Conference Call of Sigachi Industries Limited. The financial results and investor presentation have been uploaded on the stock exchanges. I hope everyone had had opportunity to review them. FY '26 was a year of challenge, reflection and decisive action for Sigachi. For the past several quarters, our focus has remained firmly on execution, operational discipline and reinforcing the foundations required for sustainable long-term growth. Today, the company is operating with stable business continuity, continued customer engagement and steady progress across its strategic priorities. The efforts undertaken over the course of the year have been directed not only towards maintaining operational continuity, but also towards strengthening the organizational structurally through sharper oversight, stronger systems and greater execution discipline across functions. These remain important priorities for us as we continue to build a more resilient and future-ready organization. During Q4, our operations remained stable and customer engagement continued to be healthy across geographies. Our cellulose-based excipient sale quantity stood at 14,857 metric tonne with nearly 82% capacity utilization. The 12,000 metric tonnes per annum MCC capacity project at Dahej continues to progress in line with planned time lines and upon commissioning is expected to increase our total cellulose-based excipient capacity to 30,000 metric tonnes per annum by Q4 FY '27. In parallel, the 1,800 tonne CCS facility at the same location, Dahej SEZ, is also progressing steadily and will support our strategy of expanding into higher-value excipient categories and strengthening our overall product mix. The API R&D center continues to strengthen our development and regulatory capabilities while progressing on the CEP filing supports our long-term expansion into the regulated markets. Our O&M vertical remains a steady contributor and continues to evolve as a scalable service platform aligned with long-term growth priorities. We have also continued to strengthen our organizational leadership and people capabilities. During the quarter, we welcomed Mr. Atul Dhavle as the Chief People Officer, whose experience in building scalable organizations and leadership systems will support Sigachi's next phase of growth. As we move into FY '27, our priorities remain centered around operational discipline, execution of key expansion projects, strengthening our product portfolio and improving profitability through consistent and focused execution through our employees, customers, partners, lenders and shareholders. Thank you for your continued trust and support through a demanding year. Your confidence in this organization has been important to us, and we are committed to honoring it through what we deliver in the quarters ahead. With that, I now invite our CFO, Mr. O.S. Reddy, to take you through the financials and operational highlights for Q4 FY '26. Thank you.

Thank you, sir, and good afternoon, everyone. During Q4 FY '26, Sigachi reported total operating income of INR 121.89 crores, EBITDA for the quarter stood at INR 15.4 crores with a margin of 12.63%. Net profit came in at INR 7.6 crores, translating to a PAT margin of 6.23%. The MCC segment contributed INR 85.33 crores, while the O&M and API segments recorded revenues of INR 14.63 crores and INR 17.06 crores, respectively. Guidance for FY '27. We expect revenue to be in the range of INR 650 crores to INR 675 crores with an EBITDA margin of around 18% to 20%, supported by incremental capacities from Dahej and Jhagadia and an improved product mix through the year. That concludes my updates. Now we can open the floor for questions. Thank you.

[Operator Instructions] The first question comes from the line of [ Mr. Darshil Jhaveri from Crown Capital ].

Firstly, congratulations on a great set of results, sir. Sir, just wanted to understand, we've given a very clear cut guidance for FY '27. But in FY '27, our CapExes are not coming online in the start of the year, right? It's going to come towards the end. So how do you see FY '28 going forward when we have the full capacity of Dahej and the CCS coming online. So what do you can see in terms of extra revenue coming in, sir?

Yes. Thank you, Darshil. The additional revenues comes from Dahej and Jhagadia, the enhanced capacities. And also API, we are expecting a good growth and also the continued O&M expansion every year, it is giving a good growth. This year, that's why we not -- that is only around 650 to 675 only is the range we expected because the capacities -- expanded capacities of 12,000 metric tonnes from Dahej 2, that is a new facility, which is expected to come by end of the FY '27, though in meanwhile, the existing Dahej and Jhagadia capacities are going to increase and also API and O&M because of that we can achieve.

Yes, yes, yes. So sir, I just wanted to understand, so next year, once the full thing comes in, like so we're going from current 18,000 to additional 12,000 capacity we're adding. So can we see like in terms of 65% ramp-up, I think we are targeting, right? So that would also mean -- hello? Yes, around the 40% growth in this volume tonnage. So can we see a corresponding growth in revenue in FY '28, sir?

Darshil, yes, of course, we will see that. But I would just like to tell you that the first quarter of the next financial year, the ramp-up will not be at absolute 100%. The capacity utilization gradually moves up quarter-on-quarter. So the Q1 will probably be at 30%, Q2 will gradually probably move at 40%, 45% or 50% and likewise, for the last 2 quarters for the new facility?

Okay. Okay. Fair enough, sir. And sir, just wanted to understand like in our current year FY '27, sir, do we have any seasonality because how do you see our revenue like in terms of H1 and H2? Because usually, we have a very steady run rate. So we can expect the INR 650 crores to be very steady, sir?

In the second half, that would be more. Q2 is more than Q1. Q2 always -- sorry, H2 is always higher than H1, slowly it will ramp up, yes.

Okay. Okay. Yes. And sir, with regards to margins, sir, when we are saying 18% to 20% right now, I think we are around 7%. So again, H2 will be towards the higher end of margin or at least the margin we can start seeing from Q1 itself, sir?

In H2, that will be more. Even if you observe Q4, Q4 margins are better, around 13%, 14% is there. Yes, that will -- in Q1 of FY '27, Q2, gradually, it will move on. It will increase. At the end, we are expecting around 18% to 20%.

The next question comes from the line of [ Mr. Sajid Nawaz ], an individual investor.

Sir, I have questions regarding the insurance proceeds for Sigachi. In the last earnings call, I guess, we were informed that the insurance proceeds will be processed by March 31. So what is the status on the insurance claims? And how is it going?

Yes. Thank you, Sajid Nawaz. This, we expected in -- during by March, but there is a slight delay in the procedure. And now it is -- in the moment, some discussions are going on. By end of maybe around 25th or 30th of June, we are expecting some ad hoc amount. And later on, that will be settled. Now discussions are actively on.

Okay. Another question that I have is regarding the API thing which happened for cystic fibrosis. So the target was originally that by Q4 FY '27, this would be operational and we will see revenue coming from this aspect as well. So what is the status on that project, sir? If you could help guide us with that, please?

Yes. Yes. The cystic fibrosis, this is -- during this year, we thought of the filings. And anyway, this patent is going to -- patent is under till 2039 by the innovator. And we have cracked the chemistry and the application that this year, we can file -- go for the filing this current year.

Okay. So will the production start this year only? Or how is it going to be?

The R&D level, it's over. And then after filing, then we'll discuss with the innovator and then that we'll come to know exactly when we'll start.

Okay. All right. And also last question, sir, regarding the normalcy in the margins and all because before the accident happened, the margins were in the range of 15% to 20%, EBITDA margins I'm talking about. So by what time can we expect the normalcy to return in the business? Because it was very unfortunate that it happened, but for the future course, what do we think like what would be the duration by when we can attain the same numbers again?

Sorry to interrupt, Sajid sir, we would request you to join back the queue for more questions, sir. We have the next question from [ Mr. Vasth Jain ], an individual investor.

I had a few questions regarding the API facility. So for FY '26, what is the current utilization level of the Trimax API facility?

Around 65%, 70% is there.

Okay. Another question I had. How does the management is planning to fund the robust CapEx initiatives, like it would be an internal or an external fundraising?

Some internal accruals and also the fundraising also just under -- it is under discussions, either we go for fundraising fresh or otherwise, we go for the term loan.

Okay. Do we have any guidance around that?

Yes. At appropriate time, we'll disclose it. Right now, that is in fluid stage.

Okay. And another question I had. So when is the CCS facility expected to be commercialized?

CCS facility is expected to be commercialized by maybe the first quarter of FY '28.

Okay. Do we have any specific time line around that, maybe quarter-on-quarter thing or H1 time?

This quarter-on-quarter -- that is expected in FY '28 first quarter. And then the commercialization also, it happens immediately. The revenue is also expected to achieve it from that. And by end of FY '27, we are going to -- the COD will come for MCC 12,000 metric tonnes capacity.

The next question comes from the line of Mr. Avnish Burman from Vaikarya.

Amit, just a couple of questions. One, your FY '27 guidance seems to be pretty strong at about 35% growth. Out of this, what kind of growth are you expecting from MCC?

Yes, yes, I understood that. So I think currently, the capacity utilization is at around 60%. I believe we should be able to take it to a comfortable near 95%, 97% on this. Rest of the growth would come in from the API, the O&M and the other verticals of food and nutrition.

Okay. Just help me understand this, please. So after the accident, I would have assumed that some of your customers would have shifted to the competition. And also, in my understanding, this was a very sticky business because the cost of the [ equipment ] as a percentage of the cost of, let's say, the tablet is very, very low. So unless you have a really good reason to shift to another supplier, the customer doesn't really want to shift. It's a bit of a headache for him to shift. Now because of the accident if some of the -- your customers have shifted to the competition, the guidance seems that you're very confident of getting those customers back. So how is that happening? If you could just give some qualitative color on that?

So see, I'll tell you the catch point here is that the customers are definitely sticky. There's no second thoughts on that. However, because this is a very small percentage of the total purchase for a formulation mix, the API is probably a bigger chunk, 60% to 70% of the cost, the formulation guys always have vendor 1, vendor 2, vendor 3. And the second and the third vendors are usually kept dormant. And when there's a situation across the supplier, they kind of reactivate the vendor 2 and the vendor 3. So what has happened is that we continue to be the approved supplier across our customers. Among some of them where the demand continues to be high, they have moved on to vendor 2 because we have not been able to supply them because of loss of capacity. But I believe because of the kind of relations we maintain, because of the kind of the length of relations, which is there with them, the moment we have our products back on track, we will be among the preferred vendors and we will get back on volumes.

So what you are -- how I'm understanding is that because of the non-supply, you move to vendor 2. But as soon as your supplies will come back, you will be given a priority to be moved back to vendor 1 because of your relationship. Is that how we should see this?

Yes, Avnish, that's right.

We have the next question from [ Mr. Ganesh Prasad ], an individual investor.

[Foreign Language]

No, it's -- Ganesh, this is -- there is no under-insurance, that is perfectly insured.

[Foreign Language]

It takes time.

[Foreign Language]. Our focus is not that because we have land available. We focused everything back on the other facility where in [Foreign Language], we are already building up on the 12,000 metric tonnes capacity, double of the Hyderabad capacity. Because it is under legal issues, we didn't want to really delay it because in case we get -- we pump in money and it gets stuck on some legal issue, unnecessarily, time and resources will be wasted. So Sigachi had land in Dahej SEZ and the project has already commenced some time back.

The next question comes from the line of [ Mr. Vasu Goenka ], an individual investor.

So I have 2 questions primarily. One is that what is the API revenue bifurcation for next year? How much we are expecting that the API revenue will be?

PIL. Thank you, Vasu Goenka. Around another INR 10 crores we are expecting in next financial year, INR 8 crores to INR 10 crores. It depends...

And what is the growth rate we are expecting?

Growth rate in PLI, you're asking, production linked...

Not the PLI, API, the API segment.

Yes. API, we are expecting around -- this year, we have achieved around INR 60 crores. Next year, we are going to achieve around nearly INR 100 crores -- more than INR 100 crores.

Great. Okay. And my second question is regards to the promoter shareholding. The promoter shareholding has been declining for the last like 2 years almost. So is there any chance that this number will ramp up soon?

Yes. We are expecting promoters are intended to increase their shareholding. It will not come down at least. And gradually, it will go up.

So will it be back to the accident time lines like the same 48%, 49%?

Yes, yes, that is the intention of the promoters. Gradually, it will go up.

Okay. And my last question is, is there any legal repercussion which is from the Hyderabad plant, which is like -- which we expect that something out of the blue can happen on that proportion?

For Hyderabad production, anyway, it takes some time. Anyway expansion also, we have taken up at our Dahej facility. This will take in near terms -- maybe after 6 months, we'll get clarity on that.

But my question is on the legal repercussions. Will there any kind of penalty or something like that?

Yes. Anyway, that is under court and it is -- the matter is under sub judice. We don't expect any...

[Operator Instructions] We have a question from [ Mr. Paramjit Singh ], an individual investor.

Sir, my question is regarding your Hyderabad facility. Do you still have any liability with respect to that? Do we see some exceptional losses coming up because of that facility in FY '27?

Yes. Thank you, Paramjit. As far as we -- our expectations, we have provided -- we have fully provided provision. In fact, some reversal would be there. And we hope there would not be any additional surprises or expectations. We have provided full provision.

Okay, sir. And in future, do you have any plans to restart that plant? I know it is under -- matter is sub judice and it may take its own time. But do you have anything like come 1 year down the line, we will restart this plant or you're trying to shut down this facility?

We will -- Mr. Paramjit, we will take the appropriate decision once the matter is cleared by the court. Till the matter is in the court, we can keep having thoughts, but it might not really turn around the way we want it. So we are just waiting for the matters to get cleared from the court. Once it is cleared from the court, I think we will see in the bigger interest of the long-term growth as to what is the best options available, and we will go ahead with that option.

Okay. Okay. All right. Got it. As sub judice matters in the court typically takes -- I mean, what is your updates and analysis, sir, I mean, will it be kind of fully cleaned and clear in 1 year's time? Or you have some updates on that?

Paramjit sir, the matter is sub judice, so I think less spoken, the better, sir.

The next question is a follow-up question from Mr. Vasu Goenka, an individual investor.

Yes. So my another question is in regards to the current debt obligation. It stands at INR 145 crores as of now. So do we see that this debt repayment? And what will be the structure on the same?

Yes. Thank you, Vasu. As of now, we don't have any long-term debt. This is only towards the working capital debt only. Other than that, we don't have any long-term debt.

Okay. And lastly, how about the current capacity utilization for MCC? Is it like -- earlier it was upwards of 75%, 80%? How is it going now?

Now also -- as of now, as on 31st March, it is around 75%, 80% only. But going forward, it will increase in this year -- in this quarter already started, already that will increase. And also further at the end of the year, we are expecting another 12,000 metric tonnes.

The next question comes from the line of Mr. Ravi Kumar Kantipudi from Indian Overseas Bank.

Sir, what is the percentage of exports in our total turnover and to how many countries, sir? And what is the prospectus that our products to export -- export turnover, how much?

Yes, sir. Thank you, Mr. Kumar. The export turnover for FY '26, it is around 65%. And we are exporting total in our portfolio around 60-plus countries are there. Actively, we'll supply -- the major chunk, it will go to U.S.A. and the neighboring countries and European and other countries also. Around total 60 countries are there in our portfolio.

Okay, sir. Okay. But our performance is not reflecting in the market seeing, why?

Yes, yes, because of this disturbance in June, the Hyderabad incident after that there are even -- because of -- in last quarter, geopolitical situations also, the exports didn't happen. That's why the exports percentage also, it has come down for the entire year. Last year, it was around 72%. It has come down to around 65% because in February and March, the exports didn't happen. And domestically, we have sold. That is one of the reasons for reduction. And after -- post incident, there was additional expenditure we have incurred because of that the profitability has come down and the business also, it has come down a little. But again, we expect that it will go again back to normalcy, we'll ramp up.

The next question is a follow-up question from Mr. Sajid Nawaz, an individual investor.

Sir, I have the question regarding the normalcy in business. So basically, as I previously mentioned that before the incident happened, the margins were at the range of 15% to 20%. And after the incident, again, the margins fell down to single digits. So when do we expect this normalcy to come back in the business? And yes, basically, when would we get to see the same operating margins and the net profit margins again?

Yes, yes. Gradually, it is increasing. The main reason for reduction in profits post incident is we have the safety audits and internal audits, external audits and customer audits and safety precautions taken. And because of that, some of the production overheads increased and production also didn't increase. Because of that, there was a drop in the margins. But gradually from this year, it will go up. And maybe we are expecting by FY '27 or mid of FY '28, it will come to complete normalcy.

The next question comes from the line of Mr. Vasth Jain, an individual investor, it's a follow-up question.

Just had another question. Like what is the status of JV in the Middle East? And like are we getting any revenue from that? Any guidance from management on that?

Yes. Thank you, Jain. Because the present -- keeping of the present global situation, sir, we just kept it on hold. Maybe after it comes to normalcy, the global war and all international situations, maybe after 6 months, we'll come to some clarity. Right now, we have kept it on hold.

Okay. Okay, sir. So like what time line can we expect it to resume?

Maybe another 6 months.

Next, we have a follow-up question from Mr. Vasu Goenka, an individual investor.

Probably sir, I just want to understand, as earlier informed, the API is -- the number was INR 100 crores. Can you specify the percentage of the total revenue? Earlier, it was mentioned it will be 12%. So are we still aligning for 12% or more than that?

It will go. This year, the percentage of API is 14% and MCC contributed 70% and O&M contributed 12%, API 14% and other 4%. This year, API contribution, it will go up maybe around 18% up to nearly 20%. It will go up.

All right, sir. Okay. And lastly, is there an option available to get the physical annual report, a hard copy.

Yes. Okay. We'll -- anyway, the soft copy is available, but okay...

You can send in an e-mail -- Vasu, you could send in an e-mail on the [email protected] and with your address, of course, and the needful would be done, not at all an issue.

We have a follow-up question from Mr. Paramjit Singh, an individual investor.

My question is what are your CapEx plan for FY '27 and the distribution of the same?

Thank you, Paramjit. This CapEx, MCC 12,000 metric tonnes capacity expansion is going on at Dahej 2 and also the CCS, MCC 12,000 metric tonnes, the CapEx is INR 106 crores and CCS total project cost is around INR 90 crores.

And this would all be done this year or some of it is already kind of taken care of?

Yes, already this year and next year, maybe first quarter also, some of the amount will be there, CCS.

Okay, sir. And like the way you are expanding, is it kind of okay to expect, let's say, INR 1,000 crores turnover in FY '28?

Not in FY '28. Okay. Anyway, this is futuristic. But next year, we'll get more clarity. But definitely, we'll reach INR 1,000 crores in -- not in FY '28, I mean maybe FY '29 or so, we hope...

The next question comes from the line of [ Mr. Raj Bora ], an individual investor.

Sir, congratulations for the results. I wanted to know one thing that what are the plans for debt reduction of the management?

Debt reduction? Debt reduction already now it is showing as around 4 crores shares were pledged, but the debt outstanding is around 13 crores or so is there. Gradually, it is coming down and then that will come down further by end of this year. And then gradually, as and when there is a need, then they will. So they will bring the funds and then that can be paid off.

Okay, sir. And also recently, there was a degrade in the credit rating. So what were the management plans and opinions on the same?

Yes. Post incident, there is a reduction in profit. That's why all of sudden, there was a reduction in this thing, degrading of -- downgrading of the rating. But gradually, we hope that will go up again. This year, Q4 profits are good. And even we are expecting in coming quarters, the profits will be good and the performance also, we are expecting it to be. And then we expect that some rating improvements.

We have a follow-up question from Mr. Avnish Burman from Vaikarya.

Amit, 2 questions again. One on the CCS, if you can give some color on the time line that we hope to commercialize? And also, if you just by giving your competitors balance sheet that is a higher margin product. So do you make much higher margins here? Or do you think you have to be a little aggressive on the pricing to pull in some customers? And then -- I mean, what kind of margins would you make on this CCS?

Avnish, this CCS it is -- but it gives higher profits, superior excipient. And the prices when we compare it to MCC, almost 2 to 3x higher than the MCC and margins also on higher side. We expect -- there is -- even now also, we are receiving inquiries and some of the customers asking us to dispatch the CCS along with MCC. We are seeing a good demand for this also. And it gives good top line as well as the bottom line also. Margin contribution will be -- we are expecting that it will be...

So can we expect a much higher EBITDA margin at 20% that you...

Yes, yes, even this CCS, that would be even higher than that, around more than 20%.

More than 20%, right?

Yes.

And what are the time lines? When do you expect to commercialize?

Q1 of FY '28.

Q1 of FY '28. Yes, fine, that answers the first question. Second, as for the guidance of FY '27, the revenue and the margin guidance that you've given, I just wanted to know -- the level of that. Is it based on [indiscernible] or is it -- like how does it work? I mean, do the POs get signed for 1 year and hence, your confidence level is very, very high on achieving that INR 650 crore number? Or you are hoping to maybe get there during the course of the year?

Yes. During -- already, we have some plans, some business talks are there. And also, we are expecting the additional contributions from API and the capacities from Dahej and Jhagadia will be increased [indiscernible]. We expect that from all these activities, we hope we'll achieve that INR 650 crores to INR 675 crores top line with EBITDA margins of around 18% to 20%. Yes, the major contributors are API is there, O&M is there and also the expanded capacities from Dahej and Jhagadia. And of course, the 12,000 metric tonnes, it comes in the last quarter. But all this put together, we can...

The next question comes from the line of [ Mr. Raghav Rathi from Quadrant Holdings ].

First of all, I'd like to appreciate the management in taking initiatives and steps to getting back to normalcy after the fire incident. So my question is in the coming 2 to 3 years, what I understand from the market is the demand for our product is always more than what we can produce. So are we going to be doing CapEx continuously for the next 2, 3 years where we can get to a capacity of MCC to around 50,000 to 70,000 metric tonnes?

Thank you, Raghav. As we keep on -- gradually, we keep on increasing the capacities. Anyway, market demand is there. And so long as demand is there, we have to increase the capacities. We are in the plans of increasing the capacities.

How much CapEx is required to take our capacities to somewhere like around 50,000 metric tonnes? And do we have enough land for it? Or do we have plans that we are taking up to reach there?

Yes, yes, yes, Raghav. This 12,000 metric tonnes capacity at Dahej 2, there is a CapEx of around INR 106 crores. In Dahej, we have 20 acres of land is available. And in Kurnool, we have 25 acres of land is available. There is enough land available. And going forward, we keep on increasing the situation depending upon the requirement. And we also analyze the market...

And what will be our vision for -- like where do we see our revenue and capacities by '28 or '29, probably after the next 2, 3 years?

Yes. For the next 1 year anyway, this 12,000 metric tonnes MCC and CCS also with INR 90 crores CapEx, it is coming up. And later on, we'll announce at appropriate time what is the next expansion, but we expect there is expansion plans are there.

The next question comes from the line of Mr. Darshil Jhaveri from Crown Capital. It's a follow-up question.

Sir, just wanted to know like I think total around you're doing INR 200 crores CapEx, right? So you said we might do a fundraise and some debt. So do we have any rough mix of how much we want to fundraise, how much we want to do from debt, like how much we want to increase our debt level, sir?

Yes. Right now, as I have already indicated that is, what is the portion of fundraising through equity or debt. Some, it is -- it may be a combination, but we'll announce at the appropriate time. And now that is in a fluid stage, some internal accruals and some -- the term debt would be the -- term loan would be there. The other one may be the -- from equity. We'll announce it once we form our relationship.

Yes. So just wanted to understand like once the full capacity of [ CCPS and NCP ] come into play, what's the peak revenue we can generate from this?

Yes. This 12,000 metric tonnes, almost around INR 200 crores plus, INR 220 crores or so the revenue it is expected. And from CCS, it is around INR 100 crores revenue we can expect. And further, there are other plans also are there to increase revenues apart from this existing.

We have a follow-up question from Mr. Paramjit Singh, an individual investor.

Yes, sir. One more question that I have is what is your CCS utilization across Dahej and Jhagadia plant in Q4?

CCS utilization, you are talking about? CCS, it's yet to come up in Q1 of FY...

No, sorry, sorry, MCC, I mean.

Yes. MCC, now the utilization is around 75% to 80%.

Okay. Sir, maybe -- I may be missing something, but you had your plant in Hyderabad getting shut down and whatever were the requirements, obviously, you would like to push it to your other plant in Dahej and Jhagadia for MCC, but still your utilization was 75%, right? I mean any specific reason or constraints that helped you not to move that utilization to 90%, 95%? And what makes you think that this year, it can become 90% to 95%?

Yes, yes, yes. Post accident, we had more concentrated on safety norms and safety protocols, safety equipment and internal audit, safety audits, internal and external audits, we concentrated more on that. That is the reason the production side, it is under utilization is there. But from this quarter onwards, it will go up. We concentrate much on different side.

So this year, you are confident, sir, that utilization will be north of 90%?

Yes, yes, it will go.

Okay. One more thing, sir, give us a color of your EBITDA margin across your different revenue streams that you have, including the API, O&M and everything. How is the EBITDA margin profile across different revenue streams?

Yes. This EBITDA margins more steadily, it is around 21%, 22%. And the MCC, it is -- this time, it has come down post accident. Otherwise, it will give -- from API, we are expecting more from this year, around 20-plus. But MCC, it will -- gradually, it will increase. Right now, this quarter, we had achieved around 13%, 14%. Including other income, everything put together around 14.58%. If we separate the other income, then it is around 12.5%, 13% is there. And MCC also, it will go up gradually. And API, we are expecting good. O&M, as I said, that is around 21%, 22%. This year, we are expecting that O&M income -- from O&M also, it will increase further.

The next question is from Mr. Vasu Goenka, an individual investor. It's a follow-up question.

Just want to understand that is there any PLI scheme again coming up for the concerned MCC?

Which one? Can you please repeat? I missed.

So there was a PLI scheme, which -- the income which you have received last year, is there any proceeds available for this year as well?

Yes, yes, this year also we are expecting around INR 8 crores to INR 10 crores it is expected to receive.

Okay. And secondly, I was basically looking after the statement. So there were some assets which is declining, the other asset section, and it has declined by a good percentage. So can you specify this?

The assets because the insurance after the accident, we have written off those assets. And anyway, however, we are expecting insurance for that.

Okay, sir. And regarding this insurance thing, is there any caveat out there that there are certain degrees that the amount was of INR 60 crores. So is that amount is still INR 60 crores? Or is there chances that this number will decrease?

Yes, total around INR 49 crores towards the asset class -- fixed asset class and inventory loss of around INR 4 crores, INR 4.5 crores, total INR 53.5 crores. And also apart from this, we are expecting business interruption loss. We have a policy for INR 25 crores, and we are expecting around INR 16.5 crores. This starts after the end of 12 months after 30th June FY '26, they will review.

Okay. So there is no caveat on to it. Any other claim unclaimed issues?

Yes. Right now, it is expected to receive and well, it is...

That will be the last question for the day, sir. Now I hand over the floor to the management for closing comments.

Thank you. As we conclude, I would like to reiterate that Sigachi enters FY '27 with stable operations, expansion projects progressing in line with the plans and an organization that has been meaningfully strengthened over the course of the past 1 year. Our strategic direction remains unchanged, expanding capacity, improving our product mix and delivering consistent and profitable growth through disciplined execution. We look forward to updating you on our progress next quarter. Thank you.

Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a pleasant evening.