Himadri Speciality Chemical (NSE:HSCL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Himadri Speciality Chemical Limited Q1 FY 'twenty seven Conference Call hosted by M. R. F. G. 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 0 on your touch tone phone. I now hand the conference over to Mr. Chirag Bhatia from MUFG. Thank you, and over to you, sir. Thank you, Nisha. Good evening, everyone, and welcome to Q1 FY 'twenty seven Earnings Conference Call of Himadri Specialty Chemicals Limited. Today, on the call, we have with us Mr. Anubhav Chaudhry, CMD and CEO Mr. Somesh Dattnalika, EVP, Tire and Strategy and Mr. Kamli Chagravar, CFO.

0:56 Before we proceed with the call, I would like to give you a disclaimer that this conference call may contain forward looking statements about the company, which are based on beliefs, opinions and expectations as of today. Actual results may differ materially. The statements are not the guarantee of the future performance and involve the risks and uncertainties that are difficult to predict. A detailed Safe Harbor statement is being given on Page two of the investor presentation of the company, which are being uploaded on stock exchange and on the company website. With this, I now hand over the call to Mr. Anuras Sabri. Over to you, sir. Thank you, Chirag. Good evening, everyone, and a very warm welcome to the Q1 FY 'twenty seven earnings conference call of Himadri Specialty Chemical Limited.

1:49 Thank you for joining us today. We look forward to taking you through our performance for the quarter ended 06/30/2026, the progress across our strategic priorities and how we see the road ahead. Those who have followed our journey over the past few years will recognize that Himadri today has transformed into a different company from where it started. We began as a Kolkata derivative company, and today, we operate as a global advanced materials and application driven solution organization. We are positioned at the intersection of material science, energy transition and high performance applications. At the core of this transformation lies a simple belief, the companies that will lead the future are those that can continuously reload themselves, execute, reinvest, scale and repeat the cycle with discipline.

2:50 This philosophy guides everything that we do. Over three decades, we have laid foundation. And today, we are building a future, placing four platforms for the energy transition economy, focusing on capturing a global opportunity backed with innovation led growth. Now let me briefly touch upon the financial picture for the quarter. On a consolidated basis, revenues stood at INR $14.32 crores. EBITDA was at INR $3.13 crores with a margin of 22% and profit after tax was INR $2.28 crores, reflecting a bad margin of 16%. This performance reflects both strong operational discipline and the continued shift in our product mix towards higher value segments.

3:42 Yesterday, we announced two important initiatives that further strengthen our innovation led growth trajectory. First, we successfully developed indigenous carbon nanotube technology through our relentless in house innovation and research and development, marking another milestone in our innovation journey, backed by a planned CapEx of approximately INR 70 crores, our upcoming 200 metric ton per annum CNT manufacturing facility targeted for commissioning in Q4 FY 'twenty seven is expected to position Himadri among a select group of few global manufacturers serving this high growth market. CNT is a next generation material with application spanning across lithium ion batteries, semiconductors, electronics, sensors, polymers, coatings, aerospace, etcetera. With demand accelerating across these industries, we believe CMP represents a significant long term growth opportunity for the company.

4:52 The second initiative is our entry into super specialty carbon black. This is a structurally different high purity segment designed for high performance in highly specialized markets like lithium ion batteries, engineered plastics, fabrics, fibers, coating, conductive black and other niche application, delivering premium realizations. We are converting 6,000 metric tons per annum of existing capacity with a CapEx of between INR170 crores. This is a classic example of our compounding philosophy leveraging the same integrated feedstock base and new infrastructure to produce significantly high value added products. This enhances margins, deepens application reach and strengthens our positioning in global specialty markets.

5:43 Let me now turn to what will define the next phase of Himadri's journey, new energy materials. Global lithium ion battery demand is projected to rise from around 1.6 terawatt hours in 2025 to nearly 6.8 terawatt hours by 2035. We are positioning ourselves for this opportunity with a fully integrated complex. On the anode side, we have commissioned our 200 metric ton per annum anode material facility at Maheshripi in April 2026. This capability is built entirely on overall decade of in house research. The facility has been specifically designed with feedstock flexibility, enabling the use of in house developed special engineered pitch. This backward integration gives us scalability, cost efficiency and resilience within a self reliant value chain.

6:40 On the cathode side, we are building capabilities in lithium ion phosphate, LFP cathode chemistry, which is fast emerging as a preferred solution for mass market EVs and energy storage. Our initial 2,000 metric ton per capacity is expected to be commissioned in Q3 FY 'twenty seven, representing the first milestone under Phase one of 40,000 metric tons per annum expansion plan, which form part of our broader long term vision to scale capacity to 200,000 metric tons per annum. What differentiates us is our integration from feedstock to materials. We are working towards building a self reliant, scalable platform aligned with both global demand and national priorities.

7:27 On the cathode side, we are building capabilities in lithium ion phosphate cathode chemistry, which is fast emerging as a preferred solution for mass market EVs and energy storage. Our initial 2,000 metric ton per annum capacity is expected to be commissioned in Q3 FY 'twenty seven, representing the first milestone under Phase one of our 40,000 metric ton per annum expansion plan, which form part of our border long term vision to scale capacity to 200,000 metric ton per annum. What differentiates us is our integration from feedstock to materials. We are working towards building a self reliant scalable platform aligned with both global demand and national priorities.

8:13 We continue to strengthen our strategic investments in battery material ecosystem. Sikona, in which Himadri is a strategic investor, secured AUD 45,000,000 funding to accelerate its next generation silicon carbon anode technology commercialization. Additionally, we have increased our stake in international battery company, reaffirming our confidence across battery value chain from materials to validation and deployment. Now coming to Birla Tyres. Birla Tyres turnaround continues to make steady progress Since commencing commercial operation on 05/29/2025, the focus has been on rebuilding the business on a strong operational and technological foundation. Alongside decommissioning the plant, significant efforts are underway to modernize manufacturing infrastructure, upgrade equipment and incorporate state of art automation across operations, thereby bringing the facility in line with contemporary industry standards and enhancing efficiency, consistency and product quality.

9:20 In parallel, a strategic transformation of the manufacturing footprint is being undertaken by progressively converting the existing truck and bus biased tire capacity towards off the road tire production in a phased manner. That is in line with evolving market demand dynamics. This transition, along with modernization initiative, will be supported by additional capital expenditure and expected to be executed over the next three years, creating a stronger platform for long term growth and profitability. As of today, the distribution network spends 49 distributors and over 1,000 dealers. Villa Tyre has been strengthening its portfolio across agriculture, mining and commercial segments with the launch of STUs across three new agriculture products lines during the quarter, Agri Bin, AgriPLUS and AgriLeaf T40.

10:16 This momentum is supported by a strong product development pipeline. With over 400 new SKUs under development across segments, Villa Tyres' next strategic milestone is the commissioning of passenger car radial facility by FY 2028, paving the way for its planned entry into EV and SUV tire segments. In the Specialty Carbon Black, we continue to build on our technology advantage with 250,000 metric ton capacity including 130,000 ton of Specialty carbon black capacity, we operate across a product portfolio of more than 70 specialty grades. Our integration from feedstock to finer formulation gives us control over quality, cost and consistency.

11:06 Our approach remains lab first, plant later and shows that capacity expansion is always backed by validated applications. Our quota pitch business continues to anchor the company. We operate the world's largest single location fully integrated carbon complex with 600,000 metric tons of Kolta distillation capacity. Our domestic market share continues to be over 65% and the commissioning of liquid coal package terminal at Halbia and Mangalore has strengthened our ability to serve global markets. Our forward integration into anthraquinone and carbazole with a total capacity of 5,300 metric ton is progressing well with first commissioning targeted by FY 'twenty eight. Initially, phase capacity of 2,600 is set to commission in Q2 FY 'twenty seven and balanced capacity of 2,700 metric ton is to be added in Q2 FY 'twenty eight. This facility will be India's first commercial plant for its kind, reducing import dependence and unlocking the export led growth of right move towards Atmanirwar Bharat.

12:16 Let me now briefly explain how we are structuring our existing business. Our model has been three clear layers. At the core lies our Olta derivatives carbon black naphthalene and oil of various grades, providing a scale and feedstock security. Secondly, our specialty offering consists of products, specialty carbon black, super specialty carbon black, CNT, niche engineering grades of OltaPetch, SNF, PCE, specialty chemicals such as anthraquinone and carbazole, which provide us customer stickiness and greater value realization. And the third is new energy materials, anode and LFP cathode active material and silicon carbon technology, placing us at the very heart of global energy transition value chain.

13:06 What this structure allows us is to grow on earnings faster than revenue as we focus on value accretive businesses. Across all business initiatives, our capital allocation remains disciplined. The CapEx program is thoughtfully structured to balance scale with efficiency. It is entirely self funded and deliberately calibrated between brownfield expansions, which enhance asset productivity and greenfield investments, where we are building new capabilities from the ground up. This approach allows us to pursue growth while maintaining balance sheet strength and capital discipline. Sustainability remains deeply embedded in our business model and operational philosophy. All our plants operate on a zero liquid discharge basis, reflecting our commitment to responsible manufacturing, resource efficiency and economical stewardship.

14:01 These efforts continue to gain recognition. The reaffirmation of our EcoVadri's platinum rating continues to place Himadri among the top 1% of the companies globally assessed by EcoVadri's. Increasingly, such credentials are not merely accolades, but important commercial prerequisites in global value chain. Our commitment to sustainable and responsible growth was further recognized during the quarter through several prestigious award that belongs to entire Himadri family. Our approach is very clear. We are diversifying to build resilience. We are shifting our product portfolio mix to drive profitability, and we are executing things while maintaining balance sheet discipline. We are building a strong foundation that allows us to scale transformational growth while preserving financial discipline and transparency.

14:57 I am confident that this combination of scale, integration, innovation, discipline will continue to deliver substantial value for all our stakeholders. With that, let me hand over to our Chief Financial Officer, Mr. Kamri Sadhgabal, who will now take you through the financial performance for the quarter in greater detail. Thank you very much. Thank you, Anurag. Good evening, everyone, and thank you for joining us today. I trust that everyone has had a chance to review our financial results and the latest investor presentation, which have been made available on both the stock exchanges and our company's website. Let me begin with the key financial highlights of the quarter.

15:43 Our consolidated revenue for the quarter stood at INR $14.32 crores as compared to INR $11.18 crores a year ago, an increase of 28%. Our EBITDA stood at INR $3.13 crores as compared to INR $2.35 crores a year ago, with an increase of 33 and margin of 22%. Our profit after tax has significantly increased to INR $2.28 crores from INR 179 crores a year ago, a jump of 27% with margin of 16%. Our stand alone revenue for the quarter stood at INR $12.74 crore as compared to INR 1,100 crore a year ago, an increase of 16%.

16:34 Our EBITDA stood at INR $30.01 crore as compared to INR $2.34 crore a year ago with a growth rate of 29% and margin of 24%. Profit after tax has significantly increased to INR $2.23 crore from INR 183 crore a year ago, a jump of 22% with margin of 18%. We remain committed to delivering strong value through our strategic priorities and operational rigor. Thank you once again for your continued support and engagement. Thank you. Yes. Now you can open the floor for the question session.

17:21 Thank you very much. We'll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Sanjay Jain from ICICI Securities. Please go ahead. Yeah. Thanks. Thanks, Anurag. Good afternoon, Kamlisi. Thank you. Good afternoon. Thank you. I got a couple of questions. First, numerical question, let me finish that. On the other segment, the EBIT has fallen from INR25 crore last quarter to around INR1 crore this quarter. What has changed? Because revenue number hasn't changed much.

18:18 Why there is such a sharp swing in the EBIT margin for the other segment? So other segment last time consist of mining profit with this quarter didn't took place. That was the reason of fall. So what explains less change in revenue in that? So what is compensated So in this quarter, we did not operate at the mines. We're waiting for some licensing to happen. Post that the mining operation will start. That was the reason. Okay. But it is not showing up in revenue. That means something else picked up in No, because the Villa tire revenue has gone up. Last quarter, if you see the Villa quarter revenue was significantly low. And with the ramping up of capacity in Villa tire, the revenue is going up.

19:06 So that's the reason you don't find change in revenue, but you find change in the profitability. Clear. Clear. Now coming to the new CapExes that we have announced, which is the carbon nanotube and the super specialty carbon pack. In nanotube, what is an approach this will address India market, global market? What is the key application? You did said energy and semiconductor. Yes. Yes. But whom whom are we competing here, and how have we benchmarked the product now that we are commercializing it? We we would have done all that. Right? So how should we just... This segment and and what is the differential in the realization versus a specialty carbon black and carbon nanotube? That's one. Number two, we got the super specialty carbon black. What really is this because carbon nanotube, I can still understand. But when we say super specialty carbon black, what really are we trying to do here? So these are the two on this question.

20:13 Yes. Thank you, Sanjay. So first of all, coming to carbon nanotube. Carbon nanotube is a unique product where graphene is rolled into seamless cylinder that forms carbon nanotube. So it's nothing but graphene, which we have developed through relentless R and D efforts of many, many years. If you look at the entire value chain, entire supply chain platform globally, there are only few companies in the world who are doing this, and we are the first in India. And if you look at the product to make it very simple, it is 100 times the strength of the steam with the conductivity of copper. That's the game changer. Strength of steel and conductivity of copper and very light material. So this opens the entire huge arena of application, right, from lithium ion batteries to semiconductors to conductive film sensors to industrial coatings to lightweight, high strength material for aerospace and automotive, means every day the users improving and increasing.

21:18 So that places Himadri in a unique position because the in house technology we have developed and now we are putting it into scale. So this is the first step with 200 metric tons. We'll stabilize the product, set up the facility, get customers in place globally. So today, the market is very less in India. It's a global play. So we'll be supplying to the global players. And this is a very high value added product and with significant value over the existing products. Now coming to super specialty carbon black. So I have been talking about the value added products, the journey, and it's a journey. It's every time you keep on working on it, you keep on developing and you go one step up the ladder. So we started with very low end of a specialty carbon bank, just marginal in terms of a specialty carbon bank. Then we are moving ahead. We are going up the ladder with the new specialty carbon that line coming up, we have moved up the ladder. Now the aspiration, so I've been always talking about high value niche market for specialty carbon guide, which is a very not a very, very huge market, but it's a very, very prime and tailor made special super specialty market where the value addition is multiple of the existing specialty.

22:40 So in terms of value addition, you cannot compare the two products. That's why you are seeing at only 6,000 metric tons, but the value addition will be very, very high. So this is the product we are targeting now and we have given FY '28 as when we'll start the capacity. And this will be a very big game changer for the company going into a very, very niche market, high value add market with a very strong ROC. My question is that we just started a specialty plant, why did we do that? We could have straight went into manufacturing this, which means we are converting the old plant, right? No, no, are not converting the specialty plant. We are converting the commodity plant. And are converting the rubber side of the plant. Right, right.

23:26 Really why we went that, see, you cannot leave the market and focus on one market. See, the players buy specialty, they buy super specialty. So you have to have the entire portfolio in your basket. It's not that I'll sell you only the best product, high margin product, others you buy from other. That never works. So for that, you have to have the entire portfolio with the specialty is the stepping stone to go towards super specialty. That's why we have to strengthen our position, make us very strong in the specialty that gives the confidence to the customers that they have the ability. So if you are not doing a specialty, tell a super specialty, first question will, first you do specialty, then we talk of super specialty. That's it. No. But I just want to understand, like conductive grade, it helps in improving the conductivity in the material.

24:17 What property does this super specialty adding in, say, engineering plastic and EV, what really characteristic is this adding there? See, because of competitive nature, I don't want to disclose all these technical details on a phone call. So we have clearly articulated which application is this, and I don't want to go into technical details of the subject. Got it. No, no, no, that's fair enough. Second, what is the market size of say carbon nanotube globally and the super specialty? So if you look at the carbon nanotube is evolving market. Today, is around 30,000 metric ton, which is growing every year. And lot of what is happening, this product is getting more and more applications and user industry. So it's a new product, new technology, which is working now. And over the years, you will find the users multiplying.

25:16 The growth will be phenomenal. So this is a growing industry, new age industry, advanced material industry. Coming to super specialty, the market is around 300,000 metric ton. No, no, not super specialty is 300,000. I thought specialty is even Speciality is very high. Specialty runs into millions. So, more than millions. That's our normal market. Got it. Got it. Now coming to battery material, so we are getting into anode LFP right now and then silicon probably soon. Now now I want to understand LFP market. What is the size of the market today in China?

26:02 How many players are there in this segment? And then how are we approaching this segment? So if you look at the LFP market, today 100% global capacity of LFP is in China and is mainly dominated by top five to six players in China. They are the leaders with 75% to 80% of the capacity. Globally, there is no other company manufacturing LFP as of now on a commercial basis. So entire capacity list with China. And market, if you look at today, we are at 1.5, 1.6 TWH. And in that, you can say probably 50% is LFP.

26:49 And if you look at 50%, that brings you to 800 gigawatt hour. 800 gigawatt hour that will consume around 1,600,000 tonne of LFP. As of now, but with a growing market, it is supposed to grow to six plus gigawatt hour by 2035 and majority, 70% of the growth is coming in LFP. So looking forward, the demand for this product is going to be big. Got it. Got it. And what we are adding or aspiring to add 200,000, that's like we are talking of having a 10% market share of today's market.

27:36 Correct? That's how we are approaching it. That's not the right way of looking at it because 200,000 we are projecting in next five to six years. So by that time, the market will definitely change from what it is today. So actually, we are targeting at two percent to 3%, which is hardly anything. Got it. Got it. No, no. If I want to look at the same economics in anode, because I think there are some other players in India also who have announced anode capacity, How are we different? Again, what is the demand in the world? What is the contribution of China? So if you look at the anode chemistry, so unlike LFP, every lithium ion cell needs anode.

28:23 In cathode material, there are different chemistries. There is NMC, CLO, LFP, various chemistries. But for anode, everyone needs anode. So on a macro basis, 1,600 gigawatt need 1,600,000 tonne of anode. So anodes are of different types, synthetic anode and natural graphite anode. So if you look at 70% of the market is synthetic because of high capacity, stability, quality, sustainability, this product is there. What makes Himadri unique is that, see, it's not that everyone is talking about lithium ion, so Himadri has also started talking about lithium ion. This has been our vision since last more than ten, twelve years. We have worked very hard on this to make it happen.

29:09 Extensive amount has been invested in terms of research and development capabilities and innovation. We have spent, if you look at the last year's balance sheet only INR 125 plus crore, we have spent 2.65% of our top line. Currently here also, we are spending in the same fashion. Over the years, we have spent this money on R and D in different products, and we know the chemistry in and out. We have worked with on import years, we were the first company in the world to supply the precursor from pitch to the wooshoo of anode in China. Like I don't want to disrupt any top five players in China before China would make ultra best precursors. We made it and we supplied to them.

29:55 So we are very seasoned in this industry and strongly positioned and only company who is talking of anode metal backward integrated. So we have our own raw material. In addition to that, we have flexibility of using other raw materials. So this brings Himadri in a unique platform. Other than that, we are working on natural gas pipe. We will also set up capacity for that. We will set up capacity of silicon carbon. This, again, brings Himadri into a unique position where we will meet the aspiring and need of our customers, not only through synthetic but through natural silicon carbon hybrid. So I was talking about the strength and USP of Himadri. We are into going to set up plant for synthetic, natural and silicon carbon that puts Himadri into a unique positioning where we can supply hybrid material to our customers depending on their requirement.

30:50 Sanjeet, I hope this answers your question. Hello? Yes, and yes. Yes, sir. Can you hear me? Yeah. I can hear you, please. Oh, okay. I don't know what No. I think they mute me because they were trying to connect you. But now now now you can hear me. Thank you. Yeah. I'm just... That's perfectly clear. Think... So now we have started 200 metric ton of pilot plant in in last one quarter. What has been the response? How many samples we have sent? What is the discussion with the client we are having? If you can give us some color, that will be really helpful. Definitely. So what happens from the pilot plant, are allowed to give sample A. There are four stages, sample A, B, C, D. So now we have supplied sample B to many customers globally and in India, to all the customers in India and many customers, OEMs and manufacturers globally.

31:52 So once we have the response for sample B, then we go for sample C. Trying to understand. How long this approval process goes? This process take one point five years to two years. Also this entire process for us will take almost one point five to two years. So for us to get into We have already advanced the process. So for us, it will take competitive. So by the time we have our plant in operation, we'll have the approvals in place. So when are we looking that what would be the potential timeline? I know you haven't disclosed that. Yeah. That's the reason I cannot disclose. That's fine. We will wait for it. But you're telling, generally, it's a very long drawn process in terms of taking approval. Correct? That's the reason we have to start it sampling from our commercial gate 200 metric ton plan. So that brings us in the front foot for getting approvals.

32:44 Sorry to interrupt you, sir. You may rejoin the queue for a follow-up question. The next question is from the line of Deepak Podar from Saphyr Capital. Please go ahead. Yeah. Am I audible, sir? Yeah. You are audible. Please. Yeah. I just wanted to understand on the annual side, what's the CapEx amount? So we have already spent 120 crores. And how much how much more to spend here? How much? I mean how much more? I mean, is this INR120 crores the total amount for this? No more CapEx we have announced now. Once we formulate our plan for a bigger capacity, we'll come up with public disclosure for the investment. Okay, okay, okay. Got it. And LFP Phase one, what's the time line for commissioning?

33:34 Q3 FY 'twenty seven. So that's only 2,000 metric ton, right? I was talking about Phase one, 40,000, yes. That will be operational FY 2028. So that will come in FY 2028? Right, right, right. And for this 40,000, we are spending around INR $11.25 crores, right? Right, right, right. Okay. And on this five CapEx that we are doing in CNT, SSCB, anode, LFP, cathode and Carbozole and Antraquinone. Do we have any kind of understanding, so what can be the revenue potential from each of this segment and optimum utilization? So that gives us some pictures of, I mean, in terms of the overall revenue potential of your new age CapEx that we are doing here?

34:20 See, 40,000 tonnes as per the today's value will give you LFP will give you a 3,000 growth top line. For and second on Carbazol, depending on the value, it can give you anything between INR $2.50 crores to 300 crores of top line. Then super specialty carbon bank, depending on, again, which segment we are targeting, this will be also 3x of our investment capital investment, 3x asset ratio. 3x asset ratio that effectively means around INR500 crores, right? INR500 crores, right. Okay. And what about C and D? C and T is a small capacity, 200 metric tons. So it will not be substantial.

35:06 So in the next stage, when we scale up, then the real revenue will come. Small in the sense what, I mean INR500 crores? Yes, in that kind of not INR100 crores, less than INR100 crores. Okay, INR50 crores to INR70 crores roundabout. And the last thing is anode, yes. So anode, we have not announced any capital investment in terms of bigger capacity. So this is a plan for approvals. Okay. But this 200 metric ton, so what is the revenue potential of this 200 metric ton, so this gives us some understanding, I mean, yes. So revenue potential for 200 medicals maybe INR120 crores, INR30 crores. INR120 crores, INR30 crores. Okay, okay. I got it. I got it. And in terms of are we also in future have any strategy or planning towards going towards the cell manufacturing or something on those lines, the battery cell manufacturing?

36:01 So do we have that plan as well or anything on both? We have we are a raw material component company focused on this for last many, many years. We want to continue in that direction. For cell manufacturing, we have invested in IBC. Idea is not to go for cell manufacturing. Idea is to have a commercial play in terms of our product being displayed commercially by using by the cell manufacturing company, IVC. So today, Himadri product is no longer a laboratory product. It's a product which is commercially used in cells manufactured by IVC. And this INR 1,100 crores bottom line by FY 2028 remains intact that I think you have earlier mentioned, right? Definitely.

36:47 And anything on FY 2027, I mean any outlook, I think you have not shared? We don't give quarter and year guidelines, never. Fair enough. So that would be it from my side. I would like to wish you all the best. Thank you so much. Thank you. Thank you. The next question is from the line of Ganveer Singh from Please go ahead. Yes. Thank you for taking my questions. I think two of my questions are not giving me on time. Just to elaborate a little bit on capital plan. So 40,000 metric ton by FY 2028 and two lakh metric ton is our ultimate target in the next five years. So I think by '30, FY '31, we are planning this two lakh metric ton would be a roll down?

37:41 Right, right. In five years from now, right. And normally, what kind of CapEx is required to float this kind of capacity? So we have already announced for INR200000 INR400000 of CapEx. Okay. And when we talk to like the big 10, what would be the market share at that time? If you have any you know, kind of analysis would be helpful in terms of Global market share for LFP. Sorry? 2% to 3% of the global LFP market. Oh, so 2% to 3%. Okay. Okay. Fine. And here in the base business, in coal power business, what is the capacity utilization of the existing capacity?

38:32 And plus what we have expanded 70,000 metric tons. So what would be the capacity utilization currently in those segments? 80% capacity utilization. Looking forward during the year, we will be at 90% plus. Taking it together or separately, you're talking for a new capacity? Together. Thank you. The next question is from the line of Sagar Jatwani from Philip Capital PMS. Please go ahead. Yeah. Congratulations on a good show. Is my voice audible? Yes. Yes. Please. Thank you so much. Continue.

39:17 Yeah. Yeah. So in terms of the LFP cathode, again, you know, how are we competing with the Chinese players? Can you give some confidence there and also insights on the price differentiation with the Chinese player? That is my first question. Yeah. So in terms of technology, we have developed our in house technology towards LFP through years of research and development. And all these products, whether it's anode or cathode, is always moving ahead. So we started with Gen one, Gen two, Gen three, so it keeps on moving. So we have to work hand in hand with the customers and keep on developing new qualities depending on their requirement. That is something which is a strength of Himadri.

40:03 In terms of pricing, we are trying to price our product as same as China. But basis that we are trying to develop and set up the business. Yes. But how does the economics work there? Because we are making considerable margins as well. And at similar time, we are also competing with Chinese players, whichever humongous capacity, and we are priced at almost like at par. So how does the economics work? Just trying to scratch my head over there. So see, economics works. Basically, we are not dependent on China for anything in this. We are not dependent on raw material. We are not dependent on anything. So our raw material source is different. Our production base is India.

40:50 So we have cost advantage compared to China in many particular aspects. And given the technology that we are using have some cost advantage also altogether. So that will put us in an advantageous position compared to Chinese players. Okay. And also is there any client commitment regarding the supplies of LFP cathode once the capacity becomes live from Q3 FY 'twenty seven and also once we are completed 40,000 of capacity. So what gives you that visibility? Is there any client commitment? Can you share some thoughts? Yes, definitely. We see clients are very encouraged by our And that is one of the reasons the best example for this is IBC.

41:41 We supplied our LFP sample to IBC, and they were so encouraged by seeing that the quality of the LFP we supplied that they came to us and we formed a strategic partnership because this will put IBC in a unique position where technology is developed outside China with the supply chain positioned outside China. So this is one of the such example. Other than this, we are having very strong relationship and the sample A has been approved. Now sample B trial will start from once we have over 2,000 metric ton capacity in place, then sample C will go sample D. So that's the reason instead of setting up 40,000 in the beginning, we have set up 2,000 so that the CapEx is deferred and we don't have to wait for the orders for the plant to commission. So by the time we have 40,000 medical plan, we have all the approvals because the commercial grade plant is operational and then 40,000 plant is up and running in full history.

42:43 Yes. Just small follow-up on that. So okay. Okay. So now actually, had a different question on C and T also. So what kind of potential revenue in your INR 30,000 crores of revenue guidance that you gave for the next five to six years, Are you baking in that? Or is it excluding that? And what is the margin profile, what rate market is growing some insights on those lines? See, CNT, 30,000 we gave for lithium ion component. So this includes 100 gigawatt of capacity for anode, cathode and part of it silicon carbon. For CNT, the market is evolving. We started 200 tonnes. We see the market, we evaluate the market, very high potential product with very high growth. And depending on how it goes, we announce our next CapEx plan for that.

43:41 These are high value added margin products. Thanks. Thank you. The next question is from the line of Pat Soda from Prinetra Asset Managers. Please go ahead. Hello. Am I audible? Yes. Yes, please. So first of all, thank you for the opportunity. And you have guided towards 100... 1,100 crores tied by 2028. So after q one, are there any assumptions underlying that role that that have changed either positively or negatively? See, there is nothing negative. However, my God's ways, things are moving in the right direction and things are positive only. I don't want to comment or change my projections.

44:36 So I'll remain at INR 1,100 crores for next year and let the quarter speak of itself what happens. We are very positive and optimistic about the business. Okay. Thank you so much. Thank you. The next question is from the line of Harsh Motika from SKP Securities Limited. Please go ahead. Congratulations on a great set of numbers in the quarter. Sir, given the West Asia situation that we had in April and May predominantly, how did that affect our realizations per ton and profitability in our core businesses? So the best thing is to see the resilience in supply chain, which Himadri has built over the years, which is clearly depicted by the numbers we came up with, even going through such deep crisis globally, geopolitical situation, we have been able to post strong numbers.

45:41 This itself shows the there is no dependence on West Asia for our functioning and working. In addition to that, what is something special about Himadri, even though being a chemical company, but it's we are not dependent at all on China for any of our products. That what happens with China, what happens with their pricing, their dumping, no dumping. So that is something we have built over the years. Sir, also staying on the same point, we do notice that there has been a decline in sales volume for the quarter, but revenue as a total has gone up. How much of that can be attributed to a change in our sales mix towards higher value products? And how much is on the account of passing over the raw material costs?

46:32 So see, the raw material has gone up because of the finished product prices has gone up. That is definitely one of the part. But it's a journey in which we are transforming our product into higher value added product. So that is at the same time, we are continuing. Every quarter, you see, we are improving in terms of bottom line, but with not similar improvement in terms of top line. The reason being, we are more focused on our bottom line rather than top line. The intermediate products are reduced in house and converted into finished product and value added product. So you see the value addition coming. This quarter, you have seen top line growth. Again, next quarter coming, you'll see top line growth from both volume and value. So from the other expenses for the quarter, so if you remove the ForEx loss that we have booked, the other expenses stand at similar to 148 crores, while the same number excluding ForEx losses in Q4 was about INR 172 crores. Can you please shed some light on what has led to this decline in other expenses?

47:38 So freight outbound is part of other expenses, which has come down, which has helped us to reduce this cost. Plus, we are working on a cost optimization on all the expenses, which is helping us to reduce the cost. Sir, just one last question on the new businesses that you've announced during the quarter. You've already given us a ballpark idea of what the revenues would look like. Can you also give us an idea of what the margins would be from this business, whether it be CNT or HSCL? I don't want to disclose the margins at this point of time. So at right point of time, the numbers will speak. The next question is from the line of Rohit Tenha from Suneebi Securities.

48:31 Yeah. Thank you for taking my question, sir, and congratulations to good set of number. So most of my questions are already answered. Just one... A couple of... From my side. One is on the IVF side, we have increased our stake recently to around 19% something. So going forward, is there any target we have internal to take up our stake in this business? No, no, no. It's a strategic investment. It's not a financial investment. So we will remain at where we are. And this is IBC has developed prismatic cell, lithium ion cell technology out of China.

49:20 In they have their AI based R and D center in California And they have their manufacturing facility in Seoul in South Korea for 50 megawatt, which is a full commercial plant operating. So it's now with this integration with IBC, the Himadri product can be seen commercially used in cell. So they have already come up with a new cell like 2,000, 2,003 where Himadri LFP and anode will be used, 3,000 where Himadri silicon carbon and anode material will be used, hybrid material will be used. Plus they are setting up facility through their technology in India for seven gigawatt. The work is in progress and expected to commence operation by Q4 FY 'twenty seven.

50:08 So where IVC is giving the technology to set up the plant in which Himadri raw material will be used. Got it. Got it. Got it. But in future also, we'll be looking to raise our stake if at all required? No, no, no. We are not looking to raise that. Okay. Okay. And secondly, sir, just on the mining side, as you have highlighted that this quarter, there was no such revenue from mining. So how the licensing progress we have and from coming quarter, any kind of number we can get on the mining side?

50:56 No. We have applied for environmental clearance. It takes time. So we don't have the visibility. Okay. That will take time. It will take time. It. It. It. That is from my side. Thank you. Thank you. The next question is from the line of Isha Agarwal from BT Capital. Please go ahead. Hi. Good evening, sir. Now my first question is regarding the big swing that we had seen in ForEx change from a profit to a loss this quarter. So what's driving it? Is there any change in the hedging policy? No, there is no change in the hedging policy because of the huge volatility in the currency.

51:49 This happened, and this is done with. If you see last quarter also, there was a loss. This quarter, again, there's a loss. From next quarter, there will not be any impact on account of FX, negative impact. So this is the last quarter for this. Because of so much of volatility in the currency, this happened. But looking forward, it's not going to happen. Okay. So second question related to this. So last year, we had seen good foreign gains, which led to higher other income component. So, sir, this quarter, we are again seeing a higher rise in the other income portion. So what is driving that? What component led to such growth if FX was a loss this quarter?

52:39 So this quarter, if you see two, three factors. One, we have deployed a lot of fund in terms of interest in FDs. We have borrowed from bank and CPs and deployed in FDs, so which gives us a delta. So that helps to have interest earning on our investments. Thus, have made investment in mutual funds. So that is part of it. Other than this, we have made investment in IBC, Sikona and cities of Vilatta. So mark to market of that is also helping us to that was the reason for other income. So sir, this is the usual run rate that we should resume from now onwards when it comes to other income? This will vary 30% to 40% quarter on quarter.

53:27 Okay. And sir, last question, the new CapEx that you have announced. So are we planning to take any incremental debt or in FY '27, the free cash flow would cover that? Yeah. Definitely. The free cash flow will cover that. There is no question of any incremental debt. Okay. Thank you so much, sir. That's that's it from my side. Thank you. Thank you so much. Thank you. The next question is from the line of from N. M. Holdings. Please go ahead. Yeah. Congratulations on excellent number and very exciting projects over the next five years. What would be the year wise CapEx if we can guide for next two or three years? Have So consolidated it?

54:14 Yes. Total CapEx we have announced is around INR 2,000 crores, INR $11.25 crores for LFP, INR $3.68 crores announced yesterday. So that brings to around INR 1,500 crores of CapEx, plus INR 500 crores of CapEx this year in Villa Tires. So total INR2000 crores. Out of this, we expect around INR1000 crores of CapEx happening this year and INR1000 crores next year. INR2000 crores. Kolkar Pitch, you are at six lakh tonnes, so there are no CapEx is happening? There is no CapEx. Right. Distribution, no CapEx. So thousand crores this year and thousand crores next year? Right. Right. Right. And, Birla Tyres, I think I heard on your CNBC interview, your quarterly sales was $1.27 crores?

55:09 Right, right. Okay. And that's EBITDA positive? Not yet. So now Bila ties is reflected on the Dhania refractory balance sheet. So once it becomes part of Himadri, then the numbers will come. So it is through a subsidiary that we are selling tires, that revenue is recognized in Himadri. So the difference between consolidated sales and stand alone sales is largely VillaTires? It's largely, largely Build A Tags, yes. Okay. Okay. And in case of the core business, coal tar and Carbon Black, these margins are sustainable? Definitely.

55:54 The way we have built up the business over the years is on sustainable value margins. So if you look at Ultrap, which we supply material to our customers at the lowest price globally. Did you hear my answer? Yes. Think you said INR1000000 crore CapEx this year, next year margins are sustainable. I said last question on the tire ramp up, if any guidance there? So we are ramping up quarter on quarter. If you see compared to the last quarter, this quarter is higher in terms of volumes, in terms of sales. We continue this trajectory. And in next four to five years, target is to reach 3,000 crores of top line in Birla Tyres.

56:44 And what is the EBITDA breakeven level for the turnover? We'll be seeing EBITDA breakeven in this financial year. We'll be cash positive. Yes, yes, we'll be cash positive. The next question is from the line of Tanvi Warikhar from Anandrati Institutional Equities. Just a follow-up on the LSC platform pricing, where it... Said that your pricing is competitive versus China. Just wanted to know, like, from our workings, we arrived at the end. We don't need any Like, we are arriving at a gross... Negative gross price unless if we compare the China pricing versus the input cost calculation.

57:38 So just wanted to know, like, where are we sourcing the rates in carbon? Because that is, like, a major driver for the spread on electric. Do we have any advantage over there? See, I'll suggest that it is not possible for you to calculate my cost on Excel sheet and come to a conclusion. It took a long time for us to come to a conclusion and see how to make profit. And on Excel sheet, by seeing it through prices, you cannot determine what is the margin. But we are confident. We'll work on it, and I cannot disclose my sources. That is confidential. Thank you. Okay. Thanks. Okay. Yeah. Thank you. The next question is from the line of from.

58:29 Please go ahead. Hello. Am I audible? Yes. Yes, please. Yeah. So so basically, most of my questions have been answered. I need to know as we continually emphasize that we are shifting our product mix and that will lead to a higher profitability. So can you like tell us like what's the product margin mix from the current CapEx which we are doing, if you can broadly explain? Or in terms of pricing difference, if you can explain that it's not possible with the margins? See pricing difference as we move up the ladder, we go for the niche product. All the CapEx we have announced yesterday has significant high margins and significantly differently priced altogether.

59:18 So there will be no comparison between what we are doing, what pricing we are doing, what margins we are having today and what margins will be products bring. So how do you expect our blended EBITDA margin to go over the next two to three years? So you calculate on the basis of what we are performing. Oh, sorry. I didn't get it. You calculate on the basis of our results what we are performing. Okay. And also... Okay. Got it. Also, as we are talking about the anode side or the pilot plant which we have, as for my understanding, we are doing with technology, which is different than other players in the market.

1:00:06 And when we look at the other players, they have been doing the pilot plan since, like, years. So how confident we are that we will be able to onboard customers for our, like, pilot plant? Like, are we seeing the tractions of the customer that they are getting the confidence on our product as First of now all with... Yeah. First of all, no one is doing this product before Himadri. Himadri is a pioneer in this. So there's no other plant in India who has pilot plant before Himadri. So Himadri has set up 200 plant now, but pilot plant is there for last many, many years. And we have done and we are doing it on different types of raw material. So our raw material is one of it. Other raw material, so we have all the varieties of finished product available with us. Depending on the appetite requirement and specific users of the user industry, we'll produce the anode material and supply to them. Depending on what price they give, depending on what quality they want, we will do it.

1:01:13 So are we currently seeing any traction from the customer that they There's are a huge attraction from the customer and traction from the customers. And because of the quality what we are producing, there's a great interest from customers in India and globally. Got it. So what's the timeline we can expect then getting converted on the full fledged commercialization at a large scale? If you can guide on that. See, I have not made any public disclosure on that. So I... On a call, I don't want to make any public disclosure. So once we come up, we'll come up with a Okay. We'll come up with the announcement, formal announcement for the capacity. Okay. And, sir, just last one clarity on the super specialty carbon lease that you have mentioned.

1:02:03 Can you explain, like, what... How this is different from the specialty carbon? Like, you have already explained a bit, but I want to know in terms of application, like, how it differs in terms of application and what... Like, how big the market TAM is for the particular super specialty carbon of black Sure. I I told the market is not very big. Very specialized, 300,000 in that market, and very niche application, very high value added applications. I don't want to go into details of application assets. But if you look at margins, the margins are significantly higher than the specialty carbon back. So there is no comparison between specialty margin and super specialty margins. These are significantly higher.

1:02:50 Okay. And sir, in the, like, previous answer, you once once mentioned that you are also focusing on the natural natural anode, like synthetic anode you were talking about. Natural anode you were talking about. As we are already in synthetic anode, like, materials, then why we are going for the nature? Like, I want to understand from where we are seeing the traction in the market, in the industry. If you can So custom... So some customers need low value anodes. Some need medium value, some need high value. So depending on customer appetite, we should have all the products available with us. Some need blend anodes, natural synthetic silicon. So as anode producer, we will showcase a unique proposition to our customers having all types of anode material.

1:03:45 So, like, what's our plan in the natural side if you can, like, do we have So natural also. Yeah. Natural also... Already we are producing natural anodes. Synthetic, are producing. Silicon carbon, our partner is producing. So all will be integrated in Himadri over a period of time. Okay. Got it. Okay. That's all, sir. Thank you so much. Thank you. You so much. You. Due to time constraints, we take that as the last question of the day. And now I hand the conference over to mister Anurag Chaudhry for closing comments. Thank you. Thank you so much. Thank... Let me close by thanking each of you for joining us today and for your continued interest and for thoughtful engagement we continue to receive around Himadri.

1:04:37 I hope our discussion has given you a clear sense not just of where we stand today, but of the direction in which we are building the business. As I mentioned at the outset, we are pursuing our ambition with discipline, funding it from our own balance sheet and building it on firm foundations of safety, sustainability and trust. I remain confident that the decisions we are taking today will compound into meaningful and lasting value over the years ahead. We would like to thank all our stakeholders and partners for their continued trust and to the entire Himadri family, thank you for your dedication and commitment that makes all this possible. Our Investor Relations team remains available for any further questions and we look forward to staying engaged in quarters ahead. Thank you once again, and I wish you all a very good evening. Thank you.

1:05:35 On behalf of Himadri Speciality Chemical Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.