Camlin Fine Sciences Ltd

Camlin Fine Sciences Ltd trading window closed from October 1, 2026 till 48 hours after the declaration of Un-audited Standalone and Consolidate Financial Results for the quarter and half year ended September 30, 2026

Appointment of Atul Pradhan as Non-Executive Independent Director

• Type: Special Resolution to appoint Atul Pradhan as Non-Executive Independent Director for 5-year term starting Sep 11, 2026.
• Term: five consecutive years; not liable to retire by rotation.
• Independence: meets criteria under Section 149(6) and Listing Regulations; declaration submitted.
• Remuneration: Board/Committee fees, expenses, and possible commission within legal limits.
• Appointment process: recommended by Nomination and Remuneration Committee; subject to member approval via Special Resolution.
• Voting window: e-voting from Sep 17, 2026 to Oct 16, 2026; results by Oct 18, 2026.
• Scrutinizer: J.H. Ranade and associates appointed; report to be submitted.

Appointment of Independent Director

• Appointment: Mr. Atul Pradhan (DIN: 00171022) as Additional Non-Executive Independent Director.
• Effective date and term: Sept 11, 2026 for a 5-year first term.
• Profile: IICA-certified Independent Director; ex-Head of Management Consulting at KPMG India.
• Relationships: Not related to any other directors.
• Regulatory status: Not debarred by SEBI or authorities.

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.