Camlin Fine Sciences Ltd

Financial Performance

• Q1 FY27 revenue: INR 5,199 million; +28% YoY; +INR1,000 million vs Q4 FY26.
• EBITDA margin: 4% for the quarter; last quarter margins were >45%.
• Raw-material and freight costs pressured margins.
• Straights revenue: INR 927 million.
• Specialty Ingredients revenue: >INR 4,000 million.
• Aroma: Ethyl vanillin campaign; 350 tons sold; 95% customers approved.
• Diphenol plant shut; relying on Chinese intermediates.
• Performance Chemicals EBITDA expected to turn positive next quarter.
• Insurance claim settled: INR 400 million; Brazil fire exceptional item with 20% haircut.
• CFS Europe liquidation; no cash burn; China liquidation: INR 10–20 million this quarter.

Segment Update

• Segments redefined: Specialty Ingredients, Aroma, Performance Chemicals.
• Aroma: capacity ramp-up; 95% customer approvals for ethyl vanillin; ramp to methyl vanillin.
• Ethyl vanillin campaign: 750-ton planned; 350 tons produced; mid-August shutdown; shift to methyl vanillin.
• Diphenol shutdown impacts Performance Chemicals; expect improvement as alternatives scale.

Liquidity and Balance Sheet

• Gross debt around INR 640 crores; flat vs 3 months.
• Prepayments reduced long-term IFC/EXIM loans for vanillin plant.
• Working capital cycle ~100 days; currencies/shipping routes raising needs.
• Credit lines: INR 100–200 crores contemplated for working capital.
• Insurance claim INR 400 million settled; cash requirement now resolved.

Outlook and Guidance

• Guidance: INR 2,200–2,300 crores top line; EBITDA margin 10–11%.
• Q3 could be double-digit EBITDA; margin improvement as methyl vanillin ramps.
• FY28 margin anticipated in 12–14% range; normalization across segments possible.
• US/Europe vanillin demand gap ~5,000–6,000 tons; channel stocks cleared.

Q&A Highlights

• Q2 EBITDA margin expected to be better than Q1; full-year target 10–11%.
• Vanillin volumes: Q2 350 tons; Q3 1,000+ tons production.
• Blends margin hit by geopolitical costs; some pass-through possible, not full.
• Peak vanillin capacity ~5,000 tons; 3 campaigns per year preferred; 4 campaigns unlikely.
• FY28: margin drivers include capacity utilization and raw-material stabilization.

Meeting Details

• Date: August 11, 2026; conference call on Q1 2026 unaudited results.
• Mode: virtual audio conference call.
• Event: Conference call on unaudited financial results for quarter ended June 30, 2026.

Participants

• Key participants: Chairman & Managing Director; Managing Director; Chief Financial Officer.

Purpose

• Discuss unaudited quarterly results (consolidated and standalone) for quarter ended June 30, 2026.

Additional Notes

• Audio recording of the conference call is available on the company website.

Business Overview

• Global specialty ingredients company focused on shelf-life, aroma, and performance solutions.
• Segments include Straights, Value Added Blends, Vitafor, Vinpai, Aroma Chemicals, and P Chemicals.

Key Operational Highlights

• Q1 FY27 revenue Rs 5,199 mn, up 27.5% YoY.
• Gross margin 41.2%, down from 48.5% in Q4 FY26.
• Adjusted EBITDA Rs 176 mn; EBITDA margin 3.4%; Rs 111 mn exceptional item.
• Straights revenue Rs 927 mn, up 41% YoY.
• Blends revenue Rs 3,086 mn; Vinpai contributed Rs 247 mn.
• Aroma revenue Rs 774 mn; EBITDA negative.
• Diphenol plant shutdown weighing on Performance Chemicals & Others.
• Vitafor Invest NV acquisition completed; 100% stake.
• Vinpai investment: 83.82% stake acquired; post open offer 95.41%.
• Strategic expansions broaden Europe and AMEA reach.

Financial Performance

• Revenue from operations Rs 5,198.8 mn; YoY growth 27.5%.
• PAT from continuing operations Rs -318 mn; PBT Rs -322.6 mn.
• Adjusted EBITDA Rs 176.4 mn; EBITDA margin 3.4%.
• Other income Rs 13.4 mn; Finance cost Rs 140.1 mn.
• Exceptional item Rs 111 mn.

Capital Structure & Liquidity

• No debt changes disclosed; liquidity details not specified.
• Vitafor acquisition: 100% stake; cash €1 mn.
• Vinpai stake increased to 95.41% after open offer.

Strategic Priorities & Outlook

• FY27: Blends growth across geographies; Vitafor and Vinpai to stabilise.
• Aroma: Vanillin growth with breakeven in coming quarters.
• Tariff issues eased; margins expected to improve with better utilization.
• Ongoing conflict may hamper transit times and inflation.

Risks & Mitigation

• Higher raw material prices impacting margins.
• Higher logistics costs and longer delivery times.
• Liquidity constraints affecting working capital.
• Diphenol plant shutdown increases supply risk.

Governance & Leadership

• Board includes Chairman & MD; multiple independent directors.
• GRI reporting progressed; ESG risk management strengthened.
• CFO Santosh Parab heads finance; senior management listed.

Financial results approved

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved.
• Limited Review Reports enclosed; results to be published per SEBI Listing Regulations.

Vinpai stake update

• Open offer completed; stake increased to 95.41%.
• 501,842 shares transferred; consideration about Rs 194.63 million.

Exceptional items

• Rs 108.8 million insurance settlement included.
• Fire at Do Brasil blending unit on Feb 7, 2026 referenced.

Discontinued operations

• Loss from discontinued operations includes CFS Europe SpA liquidation costs and Wanglong Ningbo expenses.

Auditor/regulatory status

• Auditors' reviews: no material misstatement; conclusions not modified.
• Audit committee reviewed results; board approved on Aug 11, 2026.

Segment reporting changes

• CODM now reports three segments: Specialty Ingredients, Aroma, Performance Chemicals & Others.

AGM Details

• AGM held on 11 August 2026 at 10:00 A.M. IST via VC/OAVM.
• Meeting concluded at 11:12 A.M. IST.
• Notice of AGM dated May 26, 2026.
• E-voting period open Aug 8–10, 2026.
• Quorum present; voting by remote e-voting and at AGM.

Key Resolutions

• Resolution 1 (Ordinary): Adoption of audited financial statements and consolidated statements.
• Resolution 2 (Ordinary): Re-appointment of Harsha Raghavan as Non-Executive Director.
• Resolution 3 (Ordinary): Re-appointment of Jens Van Nieuwenborgh as Non-Executive Director.
• Resolution 4 (Special): Ratify remuneration of Cost Auditor for FY ending Mar 31, 2027.

Voting Results

• All resolutions passed with requisite majority.
• No significant dissent reported.

Director Changes

• Harsha Raghavan re-appointed as Non-Executive Director.
• Jens Van Nieuwenborgh re-appointed as Non-Executive Director.

Auditors

• Cost Auditor remuneration ratified for FY ending March 31, 2027.

Encumbrance release

• Release of pledge on Ashish Dandekar's shares due to repayment of borrowings.
• Encumbered shares reduced from 1,49,54,000 (7.78%) to 1,49,50,000 (7.78%); 4,000 shares released.
• Lender in favor: LRSD Securities Private Limited; promoter total holding 1,97,78,510 (10.30%).
• Date of event: July 24, 2026; target company: Camlin Fine Sciences Limited.

AGM schedule and access

• 33rd AGM scheduled for Aug 11, 2026 at 10:00 AM IST via VC/OAVM.
• Electronic copies of AGM notice and Annual Report 2025-26 sent to registered email holders.
• Members without registered emails can access the Annual Report on the company website.
• Cut-off date for email updates was July 10, 2026.
• Reminder issued to update KYC details and dematerialize physical securities per SEBI circular.
• Annual Report 2025-26 available at camlinfs.com.

Overview

• Standalone BRSR for FY2025-26; reporting scope is standalone.
• Main activity: manufacture of specialty ingredients, aroma ingredients, and performance chemicals.
• Exports account for 68.81% of turnover; serves 26 states in India and 51 countries.
• Plants at Tarapur and Dahej; R&D Centre at Tarapur; Application Lab in Thane.

Key ESG Risks & Opportunities

• Key risks include regulatory penalties, process safety incidents, and water management.
• Mitigations include ZLD at Tarapur, MVR, energy decarbonization, and Dahej desalination.
• Renewable energy projects and co-generation offer cost and emission benefits.
• Five Product Carbon Footprint assessments conducted; ESG data baseline aligned to reporting standards.
• Export growth creates currency risk; local sourcing reduces logistics emissions.
• SEDEX/SMETA compliance supports ethical sourcing and EHS goals.

Governance & Policy Highlights

• Board oversight via MD; sustainability decisions guided by board committees.
• Anti-corruption, whistleblower, equal opportunity, POSH, and data privacy policies in place.
• Regulatory directions issued: MPCB May 2025; Gujarat PCB February 2026 with bank guarantee.
• NGRBC compliance reviewed by MD and Board on a half-yearly basis.
• No external independent assessment of policies conducted.

Social Responsibility & Workforce

• Total employees: 667; 613 male, 54 female; total workers: 890.
• Board female representation: 2 of 12 directors (16.7%).
• Wellbeing spending: 0.42% of revenue; health insurance, accident cover, gym, wellness.
• LTIFR: employees 0.00; workers 0.28; one worker injury; no fatalities.
• Parental leave: 100% return-to-work and retention observed.
• Grievance mechanisms exist; unions represent workers; whistleblower framework in place.

Environmental Performance

• Total energy: 1,536 TJ; non-renewable share dominates; renewable share 224.44 TJ.
• Scope 1: 78,305 tCO2e; Scope 2: 26,983 tCO2e.
• Emission intensity: 0.00001256 tCO2e per turnover; PPP-adjusted 0.0002556.
• Water withdrawal: 482,780 kl; consumption: 282,559 kl; desalination at Dahej ~79%.
• Tarapur ZLD with MVR/ATFD/RO; 60–65 KL/day recycled water.
• Waste generated: 9,628 tonnes; hazardous waste includes 9,570 tonnes ETP sludge.
• Plastic waste recycled: 61.49 tonnes; E-waste: 1.52 tonnes.
• Miyawaki plantation at Dahej; renewable energy deployments; co-generation; energy efficiency improvements.

Stakeholder Engagement & Complaints

• Stakeholders: employees, shareholders, customers, communities, suppliers, and partners; ongoing engagement.
• Shareholders: AGM/meetings, emails, SE intimations, investor calls; 9 complaints in FY2025-26; 1 pending.
• Communities: site-level grievance redressal; ongoing engagement on health, safety and environmental matters.
• Customers: ongoing engagement via website, distributors, plant visits; focus on quality and service.
• Suppliers/Partners: ongoing engagement to promote responsible supply chain practices.

Other Notable Metrics

• Inputs from MSMEs: 55.72% of inputs; 81.57% sourced from India.
• Dahej: approx 85% local sourcing within 35 km; captive consumption at Tarapur ~70%.
• ESG reporting baseline: GRI-aligned; SEDEX/SMETA compliance 100%.
• Data privacy/cybersecurity policy in place; governance linked to ESG disclosures.