IOL Chemicals & Pharmaceuticals Ltd

Financial Performance

• Q1 FY27 revenue: INR 756 Cr, up 37% YoY
• EBITDA: INR 111 Cr, margin 14.6% (vs 12.4% QoQ)
• PAT: INR 64.5 Cr, margin 8.4% (vs 6.1% YoY)
• Export contribution: 28.5% of revenue

Operating/Segment Update

• Non-ibuprofen pharma revenue share: 43% in Q1 FY27 (36% prior)
• Paracetamol capacity: 3,600 MTPA; tripled to 10,800 MTPA last year
• Current paracetamol utilization ~55%; target ~70% by FY27 end
• NMPA China approval for clopidogrel expands regulatory reach

Capex & Projects

• Capex guidance: ~INR 200 Cr per year; 60% expansion/new product; 40% infra
• Triacetin plant: 6,000 MTPA; started May; revenue potential ~INR 120 Cr/year
• Triacetin inputs: acetic acid and glycerol; not acetic anhydride
• CEP approvals for all products; US FDA approvals for five products; ANDA filings planned

Outlook and Guidance

• FY27 guidance: revenue growth 15–20%; EBITDA margin 14–15%; exports ~25–30% of revenue
• FY28 guidance: topline growth ~15–20%; EBITDA ~15–17%
• Export share guidance around 30%; variations possible quarter-to-quarter
• Management: may cross the number but has not upgraded guidance

Q&A Highlights

• Paracetamol capacity uplift to 70% by year-end noted by management
• Ethyl acetate and acetic anhydride prices stabilizing post-war spike
• Non-ibuprofen to reach ~50% of pharma revenue in near term
• US FDA approvals for five products; CEP for all; several ANDA filings planned
• China clopidogrel approved by NMPA; further regulated markets pursued
• Triacetin revenue potential ₹120 Cr/year; 6,000 MTPA; production started in May

Business Overview

• Diversified API and specialty chemicals company with Ibuprofen leadership.
• Backward integration across value chain; Paracetamol capacity 10,800 MTPA.
• Global footprint: 80 countries; 3,000+ employees; 180+ acres facility.
• 101-acre land purchase adjacent to Chandigarh-Bathinda Highway for expansion.

Key Operational Highlights

• Backward integration for key raw materials to improve margins.
• Non-Ibuprofen API share rose to 37% of pharma revenue.
• Exports contribution guided at 25-30% for FY26-27.
• Capex plan of ₹200-250 crore for expansion.
• Purchased 101 acres adjacent to existing facility for future growth.

Financial Performance

• Q1 FY27 revenue from operations ₹756.3 Cr; total revenue ₹764.4 Cr, up ~37% YoY.
• EBITDA ₹111.7 Cr; margin 14.6%; YoY EBITDA growth 60.7%.
• PBT ₹86.8 Cr; PAT ₹64.5 Cr; PAT margin 8.4%.
• FY26 standalone revenue ₹2319.1 Cr; EBITDA ₹290.4 Cr; PAT ₹137.7 Cr.
• Total assets ₹2,586.7 Cr; equity ₹1,798.4 Cr; cash ₹65.3 Cr.

Capital Structure & Liquidity

• Borrowings: long-term nil; current borrowings ₹132.0 Cr.
• Cash and cash equivalents ₹65.3 Cr; bank balances ₹133.0 Cr.
• Total current liabilities ₹690.2 Cr; total equity ₹1,798.4 Cr.

Strategic Priorities & Outlook

• FY26-27 guidance: exports 25-30%; EBITDA margin 14-15%.
• Revenue growth target 15-20%.
• Backwards integration to improve margins and supply resilience.
• Land purchase for expansion; capex ₹200-250 Cr.
• Non-Ibuprofen API growth to drive margin expansion.

Risks & Mitigation

• Expansion requires regulatory clearances; environmental and NHAI approvals in process.
• Regulatory exposure for USFDA/EDQM filings; mitigated by 14 DMFs, 21 CEPs.
• Global API market volatility and China+1 shifts; managed via diversification.

Governance & Leadership

• MD Varinder Gupta; JMD Vikas Gupta; Executive Director Abhiraj Gupta.
• Independent directors: Rajender Malla (Chairman), Sharad Tyagi, Harpal Singh, Rajni Jha.
• Board average tenure 10 years; 50% independent directors; 96% attendance.
• FY26 CSR investment ₹4.65 Cr; lives impacted ~5.5 lakh.
• ESG highlights: 14.4% GHG reduction; ZLD; 80% renewable energy.

Business Overview

• Diversified API and specialty chemicals company with backward-integrated production platform.
• Existing facility spans 180+ acres; 101-acre land purchase for future expansion.
• Ethyl Acetate capacity 120,000 MTPA; Acetic Anhydride 32,000 MTPA; Paracetamol 10,800 MTPA.
• API capacity 30,726 MTPA; 14 USFDA DMFs; 21 EDQM CEPs.

Operational Highlights

• Q1 FY27 standalone revenue ₹756.3 Cr; YoY growth 37.1%.
• Total revenue ₹764.4 Cr; EBITDA ₹111.7 Cr; EBITDA margin 14.6%.
• PBT ₹86.8 Cr; PAT ₹64.5 Cr; PAT margin 8.4%.
• USFDA DMFs 14; EDQM CEPs 21.
• New land acquisition: 101 acres beside Chandigarh-Bathinda Highway.

Financial Performance

• FY26 standalone revenue ₹2319.1 Cr; EBITDA ₹290.4 Cr; PAT ₹137.7 Cr; EBITDA 12.4%.
• FY26 PAT margin 5.9%; cash flow from operations ₹214.4 Cr.
• Total equity ₹1,798 Cr; total assets ₹2,587 Cr; no long-term borrowings.
• Current borrowings ₹132 Cr; cash ₹65.3 Cr; bank balances ₹133.0 Cr.

Capital Structure & Liquidity

• Borrowings: short-term ₹132 Cr; no long-term borrowings.
• Liquidity: cash and cash equivalents ₹65.3 Cr; bank balances ₹133.0 Cr.
• Capex plan: ₹200–₹250 Cr for FY27-28.
• Impactful capex funded by internal accruals and planned land expansion.

Strategic Priorities & Outlook

• Revenue growth target 15–20%.
• Exports contribution guidance 25–30% of FY27 revenue.
• Capex ₹200–₹250 Cr; 101-acre land acquisition to expansion.
• Backward integration to improve margins and supply resilience.
• Non-Ibuprofen API expansion with 14 USFDA DMFs and 21 EDQM CEPs.

Risks & Mitigation

• Regulatory and market risks; diversified API portfolio mitigates impact.
• Export exposure to global demand; mitigated by growth in non-Ibuprofen.

Governance & Leadership

• Board: 50% independent directors; average tenure 10 years; 96% attendance.
• Committees: Audit, Risk, Stakeholders Relationship, Nomination & Remuneration, CSR.
• Leadership: Varinder Gupta (MD); Vikas Gupta (JMD); Abhiraj Gupta (ED).
• ESG highlights: Ecovadis Gold Medal; ZLD; 80% renewable power; ISO 27001/37001.

AGM notice and annual report access

• 39th AGM scheduled for 2 September 2026 at 11:30 IST, via VC/OAVM.
• Notice and Integrated Annual Report sent electronically to members with registered email addresses.
• Physical copies not sent to members lacking registered emails.
• Web access: https://www.iolcp.com/investors/annual-reports; QR code provided.
• AGM and Integrated Annual Report also available on BSE/NSE/CDSL websites.
• Shareholders without registered emails should update contact details with RTA Alankit or respective DPs.

Financial highlights

• Q1 FY27 standalone revenue ₹756.3 Cr, up 37.1% YoY.
• EBITDA ₹111.7 Cr; EBITDA margin 14.6%.
• PAT ₹64.5 Cr; PAT margin 8.4%.
• Exports contributed 28.5% of revenue, up from 24.4% in Q1 FY26.

Strategic developments and outlook

• Clopidogrel API received NMPA approval in China.
• Paracetamol capacity utilization improved to 65% from 60% QoQ.
• Chemicals segment revenue up 29% YoY; EBIT up 193% YoY.
• Management remains focused on scaling portfolio and expanding value-added APIs.
• Export performance strengthened; exports contributed 28.5% of revenue.

Financial results approved

• Standalone and Consolidated unaudited results for quarter ended 30 June 2026 approved.
• Standalone Q1 2026 revenue from operations 756.26 cr; PAT 64.48 cr.
• Consolidated Q1 2026 revenue from operations 756.26 cr; PAT 64.40 cr.
• Limited Review Reports on Standalone and Consolidated results unmodified.
• First-time consolidation with Holding Company for quarter ended 30 June 2026.
• Consolidated results include subsidiary not reviewed; not material to the group.
• Auditors' review reports provide unmodified conclusions.