Anupam Rasayan India Ltd Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Meet Gada - Emkay Global Financial Services Ltd - Analyst : Congratulations team on great set of numbers amid all these geopolitical events. I have a couple of questions. Firstly, I wanted to ask that US has announced 25% additional tariffs on India plus some additional penalties, which have come into effect by last week of August. So I wanted your perspective, Anand bhai, on how is that impacting the Indian chemical industry in the near term? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 10:00AM, ANUY.NS - Q1 2026 Anupam Rasayan India Ltd Earnings Call And what is your exposure to the US geography? And how are you strategizing to mitigate those risks? I believe last couple of LOIs in Q4 were with US-based customers. What is your take on the execution of those LOIs or contracts?

Question: Meet Gada - Emkay Global Financial Services Ltd - Analyst : Second question, can you help me understand more on that long-term master purchase agreement with Japanese conglomerate in terms of business segment value of the contract on an annual basis and how many molecules are covered within this agreement?

Question: Meet Gada - Emkay Global Financial Services Ltd - Analyst : Got it, sir. Next, Pharma revenues have been growing quarter-on-quarter from INR25 crores in Q1 last year to INR75 crores now in this quarter. Are these revenues part of LOI or they are non-LOI based? Also, the products which we are supplying are going into patented or non-patent products? And what are the therapies which those intermediates cater to?

Question: Meet Gada - Emkay Global Financial Services Ltd - Analyst : Got it, sir. One question, if I can squeeze in. So your Performance Materials segment should be growing considering the revenues which you have signed recently. So what should be the contribution mix from this segment going in FY27, '28?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Congratulations on your results. Just a housekeeping question. In the presentation, the export share was mentioned as 48%, but I heard Anand bhai saying the export share is 58%. So can you clarify that?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Okay. So when you talk about the debt coming down, there is an increase in the interest expense. So if you look at the reduction in long-term debt, what would be the run rate for interest expense from the second quarter for FY26? And then if you look at your working capital reduction, how much is the existing inventory in value terms that is being used for your new orders from second quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 10:00AM, ANUY.NS - Q1 2026 Anupam Rasayan India Ltd Earnings Call

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Okay. So when you talk about using the existing inventory for the new orders starting this quarter, can you quantify the value of the inventory so that we get a sense of how much the inventory will come down relative to the ramp-up in revenue?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : No. You made a mention that you're going to use existing inventory for ramping up a new order, right? So whatever revenue you get, you will be on the existing inventory, so your inventory days come down. So if you can quantify the value of the inventory will be used and what is the kind of revenue you expect on a steady-state basis on these orders, can you help us understand how the working capital look like?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Net working capital days --

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Okay. So when you talk about this new order using existing inventory, now you have several orders to start being executed this year from over CY '25, FY26. So these orders will be executed in the next few quarters. How is the receivable and inventory cycle compared to the existing business? In terms of number of days, what would be the reduction?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : In terms of the incremental growth in revenue. So there's an existing revenue and working capital profile, right? So in terms of the new orders being executed over FY23 as per the LOI schedule of Q1 for the execution of the new orders what will be the receivable days and inventory days in terms of incremental impact on the balance sheet?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Okay. So you mentioned the YoY numbers for Pharma and Performance Chemicals. Can you give a similar number for last year (inaudible) for agrochem and Personal Care?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : I understand that since you gave the number, corresponding number for Pharma and Performance Chemicals, it will be useful if you give the same number for agrochem and Personal Care. That is the point I'm making.

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Yes. And secondly, if you look at your customer offtake in agrochemicals, you're saying that performance is improving. And -- but there's other companies who are saying that customers are deferring orders and they are balancing their inventory requirements. So in your case, are the innovators able to get their material as per the delivery schedule? So when you say agrochemicals for CSM is improving, how is it different for you compared to your competitors? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 10:00AM, ANUY.NS - Q1 2026 Anupam Rasayan India Ltd Earnings Call Because we heard one peer say that their volumes have actually dropped because the customer has been reducing the offtake versus their contracts. So what is different in your case?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Last part --

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Appreciate it. So just trying to put the order book schedule in perspective and the segments you are giving. So you said Pharma is out of the order book. So if you look at the segment categories, how should we read the order book execution in FY26 and '27 based on the LOI schedule you have given? So how do we fit it into these segments?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Okay. And the polymer will be in the Performance Chemicals segment, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 10:00AM, ANUY.NS - Q1 2026 Anupam Rasayan India Ltd Earnings Call

Question: Rikin Shah - The Boring AMC - Analyst : Congrats on a very strong rebound. So my first question is, I want to try to understand what the inventory situation is like at the end customers' end, like who we are supplying to. So that -- for our key molecules basically?

Question: Rikin Shah - The Boring AMC - Analyst : Got it. But sir, like when we -- like the broad-based commentary when we see the partner meetings of any of the innovators, the comments to all the contract manufacturers more or less the same, which is to reduce cost and work on cost structure. So do you feel that the pressure is much lesser today like compared to like one year ago maybe?

Question: Rikin Shah - The Boring AMC - Analyst : Got it, sir. And apologies for the next question, if it's a repetition. But after the preferential and perhaps the cash flows of FY25 materializing in FY26 as there is more inventory rationalization. So what kind of debt reduction maybe short term and long-term goals do we have? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2025 / 10:00AM, ANUY.NS - Q1 2026 Anupam Rasayan India Ltd Earnings Call

Question: Rikin Shah - The Boring AMC - Analyst : So like, even if we see working capital debt and combined gross debt long term plus working capital related. So overall, do we have any target in

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : So in terms of the margin profile and the tax rate, how should we read the incremental growth from the new LOIs, what would be the margin profile and how would the tax rate move?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Tax rate first quarter is only 23%. So will it increase over the four quarters and go back to 20%, 30% or

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : The reason I'm asking is how is the tax rate declined to 23% in the first quarter?

Question: Ramesh Sankaranarayanan - Nirmal Bang Equities Pvt Ltd - Analyst : Okay. So one request, Tanfac is a company is supplying material, it s group company. So if we are able to get some visibility on the performance of the company and the call with the management, that will help us understand that company as well and how they fit into your plan. So that's (inaudible)