Management Discussion & Analysis Report (MD&AR)
Overview of the Companys Business
Founded in 2013, Aether Industries Limited has evolved into a specialty chemicals manufacturer of scale, delivering advanced intermediates and specialty chemicals to a diverse range of end-user industries. Our product selection is guided by a proprietary 8x8 matrix-a strategic framework built at the intersection of complex chemistry and deep technological capability, enabling us to identify and pursue high-value, defensible opportunities.
Over the past thirteen years, we have built a well- diversified business across three complementary segments:
1. Large-Scale Manufacturing (LSM)
2. Contract/Exclusive Manufacturing (OEM)
3. Contract Research and Manufacturing Services (CRAMS)
Our journey began with a deliberate, four-year investment in research and development, laying the scientific and technological foundation for sustainable growth. This commitment translated into commercial success starting in FY2018, and has since driven consistent, profitable expansion. In FY2026, the Company recorded total revenue of Rs.11,810 million, reflecting a robust CAGR of 30.3% from FY2018 to FY2026-a testament to the strength of our business model and execution capability.
Global Chemicals Market
The global chemical industry, valued at approximately USD 6.4 trillion, is projected to grow at a CAGR of 4.5% over the next five years, underscoring its enduring role as a cornerstone of the global economy.
Commodity and base chemicals continue to dominate the sector by volume, with China remaining the epicentre of new capacity additions and global supply.
The year 2025 tested the resilience of the industry, as sluggish demand, persistent overcapacity, and heightened uncertainty stemming from evolving global trade policies weighed heavily on the sector. Chemical prices touched multi-decadal lows, reaching levels that were fundamentally unsustainable for producers across the value chain.
However, the operating landscape shifted meaningfully in the final quarter of the year. Geopolitical tensions and the escalating Middle East crisis triggered a sharp rise in crude oil prices-a key feedstock for the industry-while disruption to regional oil and gas infrastructure created raw material shortages that pushed chemical prices upward from their lows. With damage to Middle Eastern energy infrastructure expected to take 18- 24 months to fully repair, the resulting supply-side constraints are likely to support a sustained recovery in chemical prices going forward, setting the stage for a more constructive pricing environment in the year ahead.
Regional Break-up
| Region | 2025 Position | Main Characteristics |
| Asia - Pacific | Largest and fastest growing region | Dominates demand and new capacity China remains central, while India and South east Asia add growth |
| North America | Strong in high-value segments | Benefits from feedstock advantage and investments linked to semiconductors and clean energy |
| Europe | Mature and under pressure | High energy and labour cost, weak industrial demand and competitiveness weakness |
| Middle East | Export-led hub | Strong in base chemical and petrochemical due to feedstock |
Trends in the Global Chemical Market
Demand and Pricing - Global chemical demand is expected to improve gradually in 2026, with production volumes forecast to grow at a modest pace. However, the recovery is likely to be uneven across the value chain. Basic chemical prices are expected to remain under pressure, weighed down by persistent overcapacity, while specialty chemicals are better positioned-supported by more resilient end-market demand, higher-value applications, and stronger pricing power. This divergence underscores the structural advantage of a diversified, specialty-weighted portfolio in an otherwise subdued pricing environment.
Capacity Rationalisation - Structural cost disadvantages are reshaping the global capacity map. Producers in Europe and the United States, burdened by significantly higher energy and labour costs relative to Asian counterparts, are expected to accelerate capacity rationalisation. This realignment is likely to gradually ease global overcapacity and could support a more balanced demand-supply equation over the medium term, benefiting well-positioned Asian producers.
Supply chain resilience - Following the announcement of reciprocal tariffs in April 2025, companies across the industry are recalibrating their operations to align with the evolving global trade landscape. This includes deploying digital tools to optimise supply chains, diversify sourcing, and enhance agility-a shift that is expected to become a lasting feature of industry operating models rather than a temporary adjustment.
Electronic chemicals - The electronic chemicals segment stands out as a bright spot amid broader market softness. Demand from the semiconductor, electric vehicle, and battery energy storage systems industries is expected to accelerate, with the semiconductor chemicals sub-segment further propelled by the rapid expansion of Al-driven data centre infrastructure. This positions electronic chemicals as one of the fastest-growing and most strategically significant segments within the broader chemical industry.
Innovation - Even amid a cyclical downturn, innovation remains a strategic imperative rather than a discretionary pursuit.
Companies that continue to invest in new products, processes, and business models are best placed to differentiate themselves, unlock new markets, and respond swiftly to evolving customer needs-building resilience today while positioning for outperformance in the next up-cycle.
Focus on Sustainability - Sustainability is set to emerge as a defining driver of capital allocation in the chemical industrys next growth cycle. With demand for chemical building blocks projected to double over the next 30 years, the industry could require an estimated USD 1 trillion in capital by 2080 to meet evolving sustainability requirements. While near-term spending remains cautious amid the current down-cycle, sustained investment in low-carbon pathways-including carbon capture, clean hydrogen, and electrification-will be critical to securing long-term competitiveness and license to operate.
Indian Speciality Chemical Market
Indias chemical sector, valued at approximately USD 220 billion in FY2024-25, is poised to grow at 8-9% annually over the next five years, reinforcing its position as a critical pillar of the countrys industrial economy. While bulk chemicals and petrochemicals continue to command the largest value pool, speciality chemicals and pharma-linked chemistries are emerging as the fastest-growing segments, offering compelling structural opportunities in import substitution and in sectors powering semiconductors, renewables, automotive, and construction.
Within this landscape, the Indian speciality chemicals market-valued at -USD 70 billion in 2025-is projected to nearly double to -USD 130 billion by 2030, according to industry estimates. As a high-value, innovation-driven segment of the broader chemical industry, it is defined by low- volume, high-margin products engineered for specialised applications. Growing at an estimated 12%+ CAGR, the sector is set to significantly outpace the broader chemical industry, propelled by robust domestic demand, expanding export opportunities, and sustained policy support-even as it navigates challenges such as raw material volatility, regulatory pressures, and intensifying global competition.
Key Growth Drivers for the Indian Speciality Chemicals Sector
Export Opportunities & China+1 Strategy:
As Western companies accelerate supply chain diversification away from China, India is emerging as a preferred alternative-underpinned by strong process engineering capabilities, cost-competitive manufacturing, a skilled workforce, and robust regulatory compliance.
Innovation, R&D, and Sustainability: Rising R&D investment by Indian chemical companies is driving a shift toward higher value-added products and an expanding pipeline of CDMO partnerships with global innovators. This innovation push is central to reducing Indias chemical import bill, which stood at USD 65 billion in FY2025-26.
Capacity Expansions: Indian chemical players are scaling production capacity to meet surging demand from the automotive, pharmaceuticals, and electronics industries, with total capex announced or implemented in FY2025-26 estimated at over USD 2.5 billion.
Government Support and Policies: Initiatives such as Make in India, Production Linked Incentive (PLI) schemes, Petroleum, Chemicals & Petrochemicals Investment Regions (PCPIRs), infrastructure development, and FDI facilitation are strengthening the sectors foundation-with a clear focus on self- reliance, sustainability, and industrial clustering to support capacity building and innovation.
Notwithstanding these favourable tailwinds, the sector must contend with raw material price volatility, continued import dependency-particularly from China-and increasingly stringent environmental regulations that raise compliance costs.
Overview of Aether Industries Limited
We are one of Indias leading specialty chemical manufacturers, engineering advanced intermediates and specialty chemicals through sophisticated, differentiated chemistry and technology. Founded in 2013, our vision has always been clear: to carve out a distinctive position in the global chemical industry by fusing innovation in chemistry, technology and systems with a commitment to sustainable, long term growth.
A Deliberate, Three-Phase Journey
Our growth has been built in phases, by design:
Phase 1 (up to FY2017)-Foundation:
We invested in building our team, infrastructure and R&D capabilities, laying the core competencies on which everything since has been built.
Phase 2 (FY2018-FY2025) - Capacity Creation: With our first revenues booked in FY2018, we shifted focus to expanding capacity-securing land banks and building manufacturing assets at scale.
Phase 3 (FY2026 onwards)-Commercialisation: We have now entered the phase where our years of investment begin to convert into performance, as our assets and capabilities are commercialised at scale.
This disciplined, phase-led approach has delivered consistent, compounding growth-revenues have grown at a CAGR of 30.3% from FY2018 to FY2026, a track record that reflects the strength of the foundation we built early on.
A Differentiated Technology Platform
Where most specialty chemical companies rely on one or a handful of chemistry platforms, Aether has deliberately built eight distinct, in-house chemistry and technology competencies spanning our product range. This breadth is a genuine structural advantage-it allows us to address the specialised, advanced-intermediate needs of a wide spread of end-products and applications, and it stands as a testament to the depth and innovation of our R&D team.
We continue to invest in expanding this platform. In FY2027, we will add a ninth competency-focused and integrated polymerisation, centred on continuous, high-pressure polymerisation under extreme process conditions-further widening the range of chemistries we can offer our customers.
Three Business Models, Built in Five Years
We operate across three distinct, complementary business models:
Large Scale Manufacturing (LSM) of our own intermediates and specialty chemicals
Contract Research and Manufacturing Services (CRAMS)
Contract/Exclusive Manufacturing (C/EM)
Aether is among a select few Indian specialty chemical companies to have successfully established all three models within just five years of commencing commercial manufacturing-a rare achievement that reflects the versatility of our platform.
Every product we take on is selected against a consistent set of criteria: chemical complexity, niche application, limited competition, scalability and commercial viability. Applying this discipline, we have built a portfolio of advanced intermediates and specialty chemicals serving pharmaceuticals, agrochemicals, materials science, coatings, high- performance photography, additives, sustainability & renewables, and oil and gas.
A Portfolio Built on "Firsts"
As of March 31,2026, our portfolio comprises 31 products-each one manufactured either for the first time in India, or for the first time anywhere in the world, by Aether.
Our products sit deliberately in the high-value zone of the chemical industry value chain-closer to final active ingredients and formulations, and further from commodity chemicals.This positioning is reflected in our economics: the average selling price of our products in FY2026 was Rs.937 per kg (FY2025 was f1,306.89 per kg) major reduction on account of scaling up of the OEM business with Baker Hughes where the price per kg is quite lower.
In pharmaceuticals, our high-value intermediates support therapeutic areas including hypertension, anti-platelets, anti-psychotics, anti-histamines, NSAIDs, antiretrovirals for HIV/AIDS, anti-epileptics and anti-convulsants, among others. Beyond pharmaceutical, our chemistries serve agrochemicals, materials science, coatings, high- performance photography, additives, sustainability & renewables, and oil and gas.
Import Substitution, at Scale
Beyond pharmaceuticals, our products are utilized in various sectors such as agrochemicals, material science, coatings, high-performance photography, additives, sustainability & renewables, and oil and gas. The majority of our advanced intermediates and specialty chemicals were introduced for the first time in India and are 100% import substitutes-a direct contribution to the Government of Indias "Make in India" and "Atmanirbhar Bharat" initiatives. Products such as 4MEP, T2E, MMBC, NODG, BFA, OTBN and DVL-once imported from China-are today manufactured and exported by Aether, including to customers in China itself.
We will build on this momentum in FY2027 with the launch of three new products (two pharmaceuticals and one agrochemical), further strengthening our import-substitution portfolio.
A Global, B2B Franchise
Our sales model is predominantly business-to- business, both in India and internationally. We export to 20 countries worldwide, including Germany, the United States of America, the Netherlands, Japan, China, Czech Republic, United Kingdom and others. Exports accounted for 29.66% of sales in FY2026 [vs. 48.13% in FY2025], with the decline in export share primarily reflecting increased domestic sales to Baker Hughes India. We expect this trend to continue into FY2027, supported by a new agreement with Milliken Chemical and Textile (India) Co (a subsidiary of Milliken & Company,
USA).
R&D, Pilot Plant and Manufacturing Sites
In-house research and development is the cornerstone of Aether Industries Limited. Our chemistry and technology capabilities, and every product in our portfolio, are conceived by our dedicated R&D team, validated and scaled up at our Pilot Plant, and commercialized using our own process design and engineering expertise-a fully integrated, self-reliant innovation model that reduces dependency on external technology and shortens time-to-market.
Our advanced R&D centre and Pilot Plant are located at Manufacturing Facility 1 in Sachin, Surat, Gujarat. These facilities are the engine of our growth, driving three parallel priorities: strengthening our existing product pipeline, developing next-generation and high-value specialty chemistries, and delivering customized process and scale-up solutions for our CRAMS (Contract Research and Manufacturing Services) partners.
We operate five manufacturing facilities in total-four at Sachin and one at Panoli, Gujarat-forming a robust, geographically efficient manufacturing base. Every facility is certified to ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health & Safety), ISO/IEC 27001:2013 (Information Security Management), and Indian GMP standards, reflecting our uncompromising commitment to quality, safety, sustainability, and data integrity across operations.
All facilities are built on a foundation of Distributed Control System (DCS)-led process automation, engineered to global standards of technology and precision. Their strategic location near Hazira Port and Jawaharlal Nehru Port Trust (JNPT) gives us a distinct logistics advantage-enabling faster shipment turnaround and optimized freight costs for our growing export business.
To power this automation backbone, we deploy best-in-class DCS platforms: Siemens PCS7 DCS across our Pilot Plant and CRAMS operations, and Yokogawa Centrum VP DCS across our manufacturing facilities. Together, these systems deliver:
• Consistent, high-quality output through tightly controlled, repeatable processes
• Enhanced plant reliability with reduced downtime and process variability
• Lower overhead costs through optimized resource utilization
• Superior safety outcomes by minimizing manual intervention and human error, thereby reducing the risk of industrial incidents
This combination of integrated R&D, scalable pilot infrastructure, certified manufacturing, and advanced automation positions Aether Industries as a trusted, quality-first partner to customers across the specialty chemicals and CRAMS value chain.
Long standing relationships with a diversified customer base
Aether Industries has built an enduring, diversified customer franchise spanning multinational, regional, and local companies across the globe. Our customer base now exceeds 300 companies, with 19 new customers added in Fiscal Year 2026 alone-a testament to our ability to consistently win new business even as we deepen existing relationships.
As of March 31,2026, our products reached more than 50 global customers across 20 countries, complemented by a strong domestic presence of over 250 clients in India.
Our unwavering commitment to product quality and consistency underpins these relationships, giving customers little reason to seek alternative suppliers. This customer stickiness, combined with the significant capital investment and lengthy technical approval processes required of new entrants, gives Aether a durable competitive moat in the specialty chemicals space.
Sectoral Diversification
Aether has meaningfully diversified its revenue base over the past several years, reducing concentration risk while broadening its addressable market.
FY2022: Pharmaceuticals and Agrochemicals together accounted for nearly 84% of revenue
FY2026: These two sectors now contribute 36% of revenue, as growth in newer verticals has outpaced them
Oil & Gas and Material Science have emerged as the two other major growth pillars, contributing 21% and 17% of revenue, respectively, in FY2026. We expect both sectors to accelerate their contribution in the coming years, driven by expanding volumes with key customers such as Baker Hughes India and Milliken Chemical and Textile (India) Co.
Material Science is set to receive a further boost from our entry into electronic chemicals, particularly semiconductor chemicals. Validation quantities have already been approved by leading Japanese majors, giving us confidence that this segment will emerge as a meaningful growth driver in the years ahead.
Our five-year vision is to build a more balanced, diversified revenue mix-with Pharmaceuticals & Agrochemicals, Oil &Gas, Material Science, and Others each contributing roughly a quarter of total sales.
| Business Segment | FY 2025-26 | FY 2024-25 |
| (% of Revenue) | ||
| Pharmaceutical | 34.21% | 45.60% |
| Oil & Gas | 21.05% | 5.98% |
| Material Science | 17.74% | 11.44% |
| Agrochemical | 12.22% | 21.17% |
| Multiple | 6.19% | 7.69% |
| High Performance Photography | 4.74% | 3.33% |
| Coatings | 2.82% | 3.74% |
| Sustainability & Renewables | 1.02% | 1.05% |
Where Strengths meet Vision
At Aether Industries Limited, we are driven by purpose and innovation-constantly advancing solutions that make a meaningful difference. Through state-of-the-art manufacturing and robust R&D (DSIR recognised), we deliver efficiency, sustainability, and quality, while shaping the future of our business and the industries we serve.
1) Robust R&D capabilities
With a chemistry- and technology-driven approach, we are at the forefront of process innovation and continuous efficiency improvement. Our focus is on developing non-infringing, commercially viable processes that remain efficient across the entire product lifecycle.
Largest pilot plant in the world, with over 600 reactors
-300 scientists working across our R&D Centre and Process Development teams 55+ projects across sectors, with over 75% of projects dedicated to customer-specific development
Our R&D capabilities enable us to enhance product quality, optimise costs, and support sustainability-forming the foundation of our long-term competitiveness.
2) Technocrat Promoters and a Seasoned Senior Management Team
Aether Industries is led by one of the most experienced management teams in the Indian chemical sector. Our promoters are technocrats with a combined 125+ years of expertise in the chemical industry, each actively engaged in key areas-R&D, process and plant engineering, finance, and marketing-while overseeing daily operations.
Our senior management team-comprising Dr. James (Jim) W. Ringer (Chief Technology Officer), Mr. Raymond Paul Roach, Dr. Norbert Fluggen, and Dr. Ron Valente-brings decades of collective industry experience. Through constant engagement and mentorship, they inspire our young Aetherians to find innovative solutions to complex problems. This team has demonstrated a consistent ability to generate significant value by building exceptional teamwork and organisational culture, underpinned by strong personnel development, technical excellence, and a robust project portfolio.
Over the next few years, we intend to further strengthen our senior team, having already identified individuals who will help us explore new chemistries and product opportunities.
The depth and breadth of experience across our
Board, management team, and Promoters position us to be a leading specialty chemicals manufacturer in India-enabling us to navigate market trends, manage operations effectively, and deepen customer relationships.
3) Strong customer relationships
We have cultivated deep, long-standing customer relationships built on trust, reliability, and technological expertise. These partnerships enable us to navigate industry challenges while maximising opportunities in a dynamic market.
. 5+ years of partnerships with leading global
customers, including Milliken Textiles and Chemicals Ltd (subsidiary of Milliken &
Company, USA), Baker Hughes, Saudi Aramco, Polaroid, Altana, SEQENS, and several leading domestic pharmaceutical companies
. A 100% secure environment, where customers entrust us with their proprietary processes and intellectual property
Our proven expertise in complex chemistry and sustainable manufacturing enables us to deliver tailored solutions for diverse customer needs. A continued commitment to on-time supply, intellectual property protection, and process integrity has strengthened customer confidence and fostered long-term collaboration.
4) An integrated platform for Large-Scale Manufacturing, CRAMS, and Contract/Exclusive Manufacturing
Aether Industries operates through three distinct, complementary business models:
• Large-Scale Manufacturing (LSM) of proprietary intermediates and specialty chemicals
• Contract Research and Manufacturing Services (CRAMS)
• Contract/Exclusive Manufacturing (CEM)
We are among the few Indian specialty chemical companies to have successfully commercialised all three business models within a five-year period, with each contributing meaningfully to our revenue base.
These models reinforce one another: customers for our proprietary intermediates and specialty chemicals often overlap with those served through CRAMS and contract manufacturing. Our CRAMS business enables close collaboration with innovative companies on new product development, which in turn strengthens our R&D capabilities and supports expansion of our own product portfolio. Higher production volumes under contract manufacturing further support economies of scale and improved procurement efficiencies.
5) State of the art automated Manufacturing Facilities
Aether Industries has invested in automated manufacturing facilities built on advanced technologies and systems. Our manufacturing infrastructure, cutting-edge technology, and automation are central to our continued growth in intermediates and specialty chemicals. We have pioneered innovative manufacturing processes and product recipes, establishing leadership positions across many of our product categories.
Each facility operates independently, with dedicated quality departments, effluent treatment plants, and warehousing-and their proximity to Hazira and JNPT ports helps reduce export freight costs and lead times.
Our operations are certified under:
• ISO 9001:2015 (Quality Management)
• ISO 14001:2015 (Environmental Management)
• ISO 45001:2018 (Occupational Health & Safety)
• ISO/IEC 27001:2013 (ISMS) (Information Security)
• Indian GMP (Good Manufacturing Practices)
An overview of our manufacturing facilities is mentioned below:
| Site | Site 1 | Site 1 + | Site 2 | Site 3 | Site 3++ | Site 4 | Site 5 | Site 5+ |
| Location | Surat | Panoli | ||||||
| Sq meters | 5,250 | 5,250 | 10,500 | 5,250 | 5,250 | 18,500 | 1,25,000 | 60,000 |
| Business Model | CRAMS, Pilot Plant | CRAMS | LSM, CEM | LSM, CEM | CEM | CEM | LSM, CEM | LSM, CEM |
| Utilisation Rates | 100% | N/A | 75% | 70% | Commenced production in February, 2026 | 55% | First 2 of 16 production blocks to commercial ised in 01 FY27 | N/A |
| Other | 55 Fume hoods installed, 15 Additional fume hoods and NMR machines being installed by Q1FY27, Analytical labs and Pilot Plant | Completion by 02 FY28 120 fume hoods being installed | Solvent Recovery Plant 13,140 MT | Dedicated to a global MNC customer | Dedicated to a global customer in oil & gas sector | All 16 production blocks to be completed by FY30 | Construction to commence by FY31 |
In Fiscal Year 2026, our facilities were audited 50 times by various customers or their external auditors. Future Capacity Expansion:
| Site | Segment | Current Status |
| Site 1 + | CRAMS | Construction commenced and expected to be completed by C2FY28 Install 120 fume hoods which will nearly triple the capacity from the current 70 fume hoods Total Capex for this site is -INR 1,000 million |
| Site 5 | CEM/ LSM | Site has been divided in four phases of four production blocks each Two production blocks from phase one to be commence production from 01FY27. 2 additional production blocks to commence production every 6 months All 16 production blocks to be commercialise by FY31 |
| Active discussion with customers across different sectors for dedicated production blocks Total Capex for this site is -INR 20,000 - INR 21,000 million | ||
| Site 5+ | CEM/ LSM | Purchased land in January 2025 and is adjacent to Site 5 The land was purchased for INR 446.93 million and has an area of 60,000 sq.m |
Contract Research and Manufacturing Services (CRAMS)
CRAMS contributed revenues of INR 1,045.6 million in FY2026, representing 9.2% of the Companys total revenue-a reflection of the deep scientific trust our global partners place in Aethers research and manufacturing capabilities.
At the heart of this business is our commitment to in-house research and development. Sustained, strategic investment in R&D is what sets Aether apart from other Indian chemical companies, allowing us to build and defend leadership positions across our product portfolio. By translating decades of technical expertise into processes that are genuinely difficult to replicate, we create durable barriers to entry-the same barriers that make Aether a partner of choice for global innovators.
A Partnership Model Built on Science
Our CRAMS model offers clients a full spectrum of outsourced research and technology services: contract research, pilot-scale scale-up, contract manufacturing, FTE (Full-Time Equivalent) services, technology development, and process optimization. Clients work hand-in-hand with our scientists and engineers, gaining direct access to our R&D facilities, analytical laboratories, and Pilot Plant.
This is more than a transactional arrangement-it is the foundation of long-term partnerships. Molecules developed under CRAMS frequently graduate into regular commercial supply, becoming large-scale manufacturing products within our own portfolio. Just as importantly, the model builds deep working relationships with our clients technical and leadership teams-CTOs, technical directors, and VPs-laying the groundwork for future contract manufacturing opportunities and long-term strategic alliances.
Innovation Engineered In-House
end innovation model is central to Aethers competitive advantage.
Our chemistry and technology expertise spans a wide and complex range of platforms, supporting diverse end-use industries, including:
• Grignard, organolithium, and other organometallic chemistries
• Ethylene oxide and isobutylene chemistry
• Hydrogenation
• Catalysis-both homogeneous and heterogeneous
• Cross-coupling chemistry
• Metathesis and polymerization chemistry
Aether is a pioneer in the Indian specialty chemicals industry in tandem Grignard and ethylene oxide chemistry, a capability held by only a handful of competitors globally-reinforcing our position as a technology leader, not just a manufacturer.
Investing in Our Scientific Talent
As of March 31,2026, our specialized R&D team comprised 356 scientists and engineers, up from 286 as of March 31,2025-including 160 scientists holding PhDs or Masters degrees or Bachelors degrees (up from 145 in the previous fiscal year) and 196 chemical engineers (up from 141 in the previous fiscal year).
Our R&D facilities house dedicated laboratories for process development, innovation, and technology advancement, enabling us to optimize efficiency at every stage-from initial conceptualization through to full product commercialization.
Total R&D expenditure for FY2026 stood at INR 862.13 million, equivalent to 7.3% of revenue-among the highest R&D-to-revenue ratios in the Indian chemical sector, underscoring our conviction that sustained investment in science is the surest route to long-term, defensible growth.
Academic and Institutional Partnerships
We maintain strong collaborations with leading universities and research institutions across India, including the National Chemical Laboratory (NCL, Pune), the Institute of Chemical Technology (ICT, Mumbai), UkaTarsadia University (UTU, Bardoli), and Sardar Vallabhbhai National Institute of Technology (SVNIT, Surat). Our sponsored PhD programs, run in partnership with these institutions, deepen our access to fundamental research and continue to strengthen our in-house R&D capabilities.
Our R&D facilities are recognized by the Department of Scientific & Industrial Research (DSIR), Government of India, as an accredited in- house R&D centre-a recognition that reflects the depth and consistency of our innovation efforts.
Expanding Our R&D Capacity
Fiscal Year 2026 saw a deliberate expansion of our R&D capacity, driven by a strong pipeline of research projects secured over the past two years-particularly in the Oil & Gas and Material Science sectors. Our R&D centre currently operates 55 fume hoods, all fully utilized, underscoring the intensity of ongoing research activity.
Of our 55 active projects, approximately 70% are concentrated in the Oil & Gas and Material Science sectors. The portfolio comprises 40 customer- sponsored projects and 15 proprietary molecules being developed in-house. This robust and growing pipeline of customer projects positions us well to scale our Contract & Exclusive Manufacturing (CRAMS) business-our second core business model. Our CRAMS engagements also create valuable, ongoing interactions with senior technical leadership at customer organizations, generating a steady stream of new project opportunities.
Pilot Plant: Bridging R&D and Commercial Scale
Our state-of-the-art Pilot Plant is a critical link between R&D and full-scale production, and ranks among the largest facilities of its kind globally, with over 100 reactors supporting both batch and continuous reaction technologies.
The Pilot Plant serves a dual purpose: generating essential scale-up data for the transition from laboratory research to commercial production, and functioning as a stand-alone manufacturing facility for low-volume, high-value products for our CRAMS clients. It is equipped with a comprehensive range of reactors and downstream processing equipment, supporting both continuous and batch operations across diverse scale-up volumes and process parameters-all fully automated through Distributed Control System (DCS) process automation.
The facility also houses a dedicated continuous reaction and flow chemistry section, equipped with pilot-scale continuous reactors and associated downstream processing equipment, reinforcing our capabilities in next-generation process technologies.
World-Class R&D Infrastructure
Our R&D laboratories include four dedicated organic synthesis labs, housed on a separate floor and equipped with modern amenities to support advanced research work.
Alongside this technical expansion, we have completely transformed the architecture and interior design of our R&D facilities, creating a world-class environment for our scientists. The redesigned campus includes a library, scientist lounges, a cafeteria, a dedicated coffee house for scientists, modern offices, conference rooms, a gymnasium, and outdoor meeting spaces-reflecting our commitment to fostering creativity, collaboration, and well-being among our research talent.
To support this expansion, we have strengthened our R&D team by recruiting additional scientists and engineers, with a particular focus on candidates holding PhDs and Masters degrees, further deepening our scientific and technical capabilities.
Future Outlook for CRAMS
Doubling Down on R&D Infrastructure
Fiscal Years 2027 and 2028 mark a step-change in Aethers research and development capabilities, as we work to nearly triple the size of our R&D facility, underpinning our ambition to remain the innovation partner of choice for global customers. By Q1 FY2027, capacity at our existing R&D facility will expand from 55 to 70 fume hoods, enabling a higher volume of parallel development work without compromising safety or turnaround time.
We are also investing in advanced analytical infrastructure, including Nuclear Magnetic Resonance (NMR) spectroscopy, which will allow non-destructive structural analysis of polyols-a critical capability as we deepen our engagement with the oil and gas and material science sectors, where process and chemical engineering rigour matters as much as the underlying chemistry itself.
Complementing this, we are building an entirely new R&D centre, adjacent to our existing R&D and pilot plant, at a capital outlay of approximately INR 1,000 million, targeted for completion by Q2 FY2028. On completion, the new complex will house 120 fume hoods and 15 dedicated laboratories (including five engineering labs)-a state-of-the-art facility that will materially strengthen our capabilities in chemical engineering, process technology and seamless lab- to-plant scale-up. This expansion is a direct expression of Aethers long-term vision: to be an innovation-first, customer-focused organisation capable of delivering high-value, sustainable solutions to partners around the world.
Expanding Our Chemistry Platform: Focused and Integrated Polymerisation
In FY2027, we will add a new and focused chemistry competency in Integrated Polymerisation-the branch of chemistry concerned with how monomers react to form long-chain or network polymer molecules, and the mechanisms, kinetics and reaction conditions that govern this process. This capability is aimed primarily at the material science and oil and gas sectors, and we are already progressing several projects within our CRAMS vertical that draw on this chemistry.
Entering Advanced Materials
FY2027 will also see us begin work on projects in advanced materials-a field in which Aether does not currently have a presence, and one that represents an exciting new growth frontier. To lead this initiative, we will hire a senior team member with the relevant domain expertise, positioning Aether to win new customers and projects that demand a high level of process chemistry capability.
Building Upstream Silicone Manufacturing Capability.
Building Upstream Silicone Manufacturing Capability
We will also begin developing manufacturing technology for silicones-the upstream process itself, rather than downstream compounding or formulation of bought-in silicone. Developing upstream capability is a fundamentally scarcer and higher-barrier undertaking, and one that offers a structurally more defensible position.
The opportunity is significant: India is the fastest- growing regional silicone market in Asia Pacific, even as it remains small in absolute terms. Industry estimates size the Indian market at approximately USD 700 million in 2022, growing to USD 2.5 billion by 2030 at a 7.5% CAGR. Because domestic consumption structurally outpaces domestic production, India remains a significant net importer, sourcing the majority of its silicone requirements from China, Germany and the United States, at average import/export prices of USD 3,200-3,300 per tonne in 2024. This import dependency represents a clear addressable opportunity for Aether as we build upstream capability.
Broadening Our Oil & Gas, Electronics and Proprietary Molecule Pipeline
In FY2027 we will complete and expand projects across drag reducing agents for the oil and gas sector, electronic chemicals for the semiconductor industry, and organic chemicals for cosmetics. In parallel, we will continue to progress a portfolio of proprietary molecules targeted at the pharmaceutical and agrochemical sectors-work that aligns closely with the Government of Indias Make in India initiative and reinforces our commitment to strengthening domestic chemical manufacturing self-reliance.
Contract/Exclusive Manufacturing (CEM)
The CEM business vertical focuses on the manufacture of complex, technology-intensive chemicals, leveraging the Companys capabilities in advanced chemistries such as high-pressure hydrogenation, Grignard reactions and continuous reaction technologies. This focus on high-margin, differentiated products strengthens our competitive positioning across key end-use industries, including pharmaceuticals, oil and gas, agrochemicals, material science and sustainable materials.
The CEM business operates predominantly under long-term, take-or-pay arrangements, minimum offtake arrangement with leading global customers, including Milliken & Company, USA (through their subsidiary in India, Milliken Chemicals & Textile (India) Pvt. Ltd.), Baker Hughes, SEQENS and Saudi Aramcos Converge business, providing enhanced revenue visibility, predictable off-take and a meaningful degree of insulation from market volatility. We work closely with our customers to co-develop and scale up innovative manufacturing processes; the SEQENS engagement, for instance, involved a three-year joint development programme to establish a complex continuous reaction process for bio-based products-underscoring both our R&D strength and our proven pilot-to-commercial scale-up capability.
FY2026 Performance
The CEM business vertical delivered a standout year, contributing INR 5,234.43 million in revenue in FY2026, up 99% year-on-year from INR 2,630.07 million in FY2025. CEM contributed 46.27% of total revenue in FY2026, cementing its position as the primary engine of growth for the Company.
• Baker Hughes-Our dedicated Site 4 continued to scale up production of pour point depressants used across Baker Hughes oil field operations, generating INR 2,196 million in revenue in FY2026, with further growth expected in FY2027.
• Milliken & Company-In June FY2026, we signed a 10-year CEM agreement with Milliken Chemical and Textile (India) Co. Pvt. Ltd., a wholly owned subsidiary of Milliken & Company (USA), under which we are the sole contract manufacturing partner for a key strategic Milliken product. The product was co-developed within our CRAMS division over several years and is manufactured at the dedicated Site 3++. The site commercialised operations in February FY 2026 and is expected to begin contributing revenue from FY2027.
Future Outlook for Contract/Exclusive Manufacturing
CEM is set to be our next major engine of growth. Together with CRAMS, the vertical is expected to contribute approximately 70% of Company revenue over the next five years. Conversations held through FY2026 with customers across the USA, Europe and Asia reinforce our conviction that the next decade represents a golden age for the Indian chemical sector. High labour and energy costs, combined with intensifying competition from lower-cost geographies such as China and India, mean that developed-market companies can research new products but increasingly cannot commercialise them competitively at home. The resulting China+1 shift places Indian chemical companies-and Aether, with its state-of-the-art R&D and pilot infrastructure and deep chemistry and technology expertise-firmly at the forefront of this opportunity.
In FY2027, we will commercialise our semiconductor chemicals production block at Site 5. The current addressable market for these chemicals stands at USD 400-500 million, and is projected to reach USD 1.5 billion by 2030, driven by rising global demand for semiconductor chips. The segment is currently dominated by Japanese producers, with Chinese players largely absent due to stringent purity requirements. We have developed this product via a differentiated manufacturing route, leveraging our chemistry and technology competencies, with commercialisation targeted for Q3 FY2027.
We have also partnered with a leading European material science major to develop products for the first time in India, and continue to deepen our relationships with existing partners including Polaroid, SEQENS, Saudi Aramco and Otsuka, from each of whom we expect increased revenue contribution in FY2027.
Backed by a robust CRAMS project pipeline and active conversations with both existing and prospective customers, we are confident that CEM will continue to grow rapidly and remain the primary growth engine for Aether. Over the coming years, we will focus on launching products for the semiconductor industry, new chemistries for the oil and gas sector, and new offerings within agrochemicals.
Large Scale Manufacturing (LSM)
The Large Scale Manufacturing segment contributed INR 4,890.69 million, or 43% of revenue, growing a steady 5.8% in FY2026. LSM was Aethers original business vertical, having generated the Companys first revenues in 2017, and remains focused on direct import-substitution products, predominantly serving the pharmaceutical and agrochemical sectors.
Every product entering our LSM portfolio is evaluated against four core selection filters, consistent with our core competencies of chemistry, technology and systems:
• No existing manufacturer of the product in India
• Process complexity of at least four synthesis steps
• Projected revenue of INR 1,000 million at plant maturity (within three years of commercialisation)
• A targeted global market share of over 50% at plant maturity
India imports close to USD 35 billion worth of chemicals annually. We have identified over 60 products that meet the above criteria, and currently have the capability to manufacture 40-45 of these; of these, we are actively manufacturing 31, with the remainder currently impacted by Chinese pricing competition.
Every product in our LSM portfolio has been developed in-house and brought to market against these stringent criteria over the 13 years since our inception. Our advanced intermediates and specialty chemicals bridge the gap between commodity chemicals and final actives and formulations, and are used across multiple therapeutic areas including hypertension, antiplatelet, anti-psychotic, anti-histamine and nonsteroidal anti-inflammatory (NSAID) drugs.
FY2026 Performance
LSM has faced sustained pricing pressure from Chinese competition; however, pricing began to stabilise from the start of FY2026, with visible improvement following two years of unprecedented lows. In Q4 FY2026, prices strengthened across several of our key products, lifting the average realised price to INR 1,374, an increase of 24.8% over FY2025 levels. Volume growth was flat year-on- year, primarily as a result of paused shipments in Q4 FY2026 due to geopolitical disruption in the Middle East.
Future Outlook for LSM
In FY2027, we will launch three new products-two pharmaceutical and one agrochemical-from the first two production blocks at Site 5. These products are priced between USD 30-50 per kilogram and are currently imported by the majority of Indian pharmaceutical and agrochemical manufacturers. As a proportion of overall revenue, we expect LSMs share to continue to decline, not due to any underperformance, but because CEM is growing at a substantially faster rate.
Underlying demand for our LSM products remains healthy, growing at over 6% year-on-year, a trend we expect to continue into FY2027 based on ongoing customer discussions, with no signs of demand softness. On pricing, we expect levels to remain at or above those seen in Q4 FY2026. While the segment has weathered a challenging pricing environment over the past two years, any further price recovery should translate into strong positive operating leverage for the Company.
Key financial highlights
1. Revenue Growth: In Fiscal Year 2026 the revenue from operations were at Rs. 11,601 million as compared to Rs. 8,405 million in Fiscal Year 2025.
This represents a growth of 38% year on year. The growth in revenue was mainly on account of scaling up of CEM contracts and the LSM business vertical seeing stable or increasing pricing for our products.
2. Profitability: The company reported a consolidated net profit of Rs. 2,195 million in Fiscal Year 2026 as compared to Rs. 1,584 million in Fiscal Year 2025 representing a growth of 39%. Net profit margins was at 19% in Fiscal Year 2026 versus 18% in Fiscal Year 2025.
3. Operational Efficiency: Aethers operating profit margin reached a high of 31 % in Fiscal Year 2026, with EBITDA of Rs. 3,547 million representing a growth of 53%. The improve in EBITDA is mainly on account of CRAMS and CEM business verticals contributing 55% of revenues. These two business verticals have better operating margins as compared to LSM and we expect EBITDA margins to be in the range of 28%-30% in Fiscal Year 2027.
4. Strong Balance Sheet: Aether is nearly debt-free, with a low debt-to-equity ratio, enhancing financial stability. The company raised significant equity in recent years to fund capacity expansion, maintaining strong liquidity despite rising interest expenses in Fiscal Year 2026 to Rs. 181 million.
5. Cash Flow Improvement: Operating cash flow (OCF) improved to Rs.1,424 million in Fiscal Year 2026 from Rs. 1,000 million in Fiscal Year 2026. This was mainly on account of improvement in working capital cycle. Even though Working capital days we believe this will reduce even further as OEM business vertical is expected to contribute further to revenues in Fiscal Year 2027.
Upcoming Expansion
In Feb 2026, the Manufacturing Facility 3++ has been commissioned and production started. The facility is currently equipped for a key strategic product for Milliken Chemical and Textile (India) Co. Pvt Ltd a wholly owned subsidiary Milliken & Company (Milliken) based out of the USA. Under the agreement, we will be the sole contract manufacturing partner for a Milliken. The initial duration of the agreement is 10 years.
Expansion of Manufacturing Facility 5 continues in full swing. In Fiscal Year 2026 we have completed the construction of all the utilities (non revenue generating) for all the sixteen production blocks which has been envisaged on the site. Also we commenced water and steam trials in the first two production blocks of Manufacturing Site 5. The commercialisation of the first two production blocks is expected by quarter 1 of Fiscal Year 2027. We expect another two more production blocks to commence production in Fiscal Year 2027. By the end of Fiscal Year 2027 we should have four of the sixteen production blocks commencing production and contributing revenue to the LSM/CEM business verticals.
In Fiscal Year 2027 the total capex which is envisaged is Rs. 3,500 million of which we plan to incur:
• Rs. 1,000 million on the new R&D building which is being constructed to the adjacent R&D site. The new R&D site is expected to be equipped with 120 fume hoods for which we already have a high visibility of projects
• Rs. 2,500 million will be spent on Manufacturing Facility 5 where we expect to start construction of Phase 2 i.e 4 new production blocks which will commence production in Fiscal Year 2028
Raw Material
The raw materials utilized in our manufacturing processes are predominantly sourced from third- party suppliers both globally and within India.
In Fiscal Year 2026, our cost of goods sold (which includes the cost of materials consumed and changes in inventories of finished goods and work- in-progress) amounted to Rs.6,008.90 million (Fiscal Year 2025: Rs.4,465.84 million), with the cost of materials consumed representing 51.79% of our revenue from operations (Fiscal Year 2025: 53.13%). Our raw materials encompass crude oil derivatives such as phenol, as well as other essential commodities including hydrogen, ethylene oxide, and isobutylene gas. Key raw materials also include chlorobenzonitrile, methanol, toluene, methylene dichloride, tetrahydrofuran, dichlorotoluene, and thiophene, among others.
The pricing of our raw materials is generally based on or linked to international market prices, and fluctuations are typically passed on to our customers. We do not typically engage in long-term supply contracts with our raw material suppliers; instead, we source these materials through shorter- term contracts or from the open market. The prices of our key raw materials have been volatile on a global scale, and increases in these prices directly impact our production costs.
For majority of Year 2026, we observed that the raw material prices, have been more or less the stagnant and not much of reduction or increase is noticed. There was a spike in raw material cost due to the middle east conflicts in Q4 of Fiscal Year 2026 and this was directly passed on to our customers. We expect raw material prices to remain elevated in Fiscal Year 2027 mainly on account of the conflicts in the Middle East.
Inventory Management
Our finished products are stored on-site at our manufacturing facilities, while raw materials are housed in nearby warehouses procured by the Company on leased premises. Ready-to-use raw materials for production are stored in on-site warehouses. To mitigate the risk of raw material price fluctuations, we typically maintain at least three months of inventory across raw materials, work-in-progress, and recoveries. Specifically, we hold 15 to 30 days of inventory in Work-in-Progress (semi-finished goods), and we maintain minimal inventory of finished goods due to the demand- driven nature of our production process. We usually manufacture finished goods based on orders received, ensuring that they are not held in inventory for more than a week.
We employ a lead-time material requirement planning system and utilize ERP software to manage our inventory levels in real-time.
We have been able to bring down the inventory levels to 151 days as on March 31,2026, which was 161 days as on March 31,2025. With the change in our business model going forward especially with the OEM business vertical which is expected to contribute further we expect the inventory levels to decline and have a positive impact on our working capital intensity.
Sales and Marketing
Our business primarily operates on a business-to- business model, with a strong emphasis on maintaining continuous engagement with customers and ensuring timely deliveries. Additionally, we have an exclusive distributor for the Telangana region of India. Our sales, marketing, and business development teams are dedicated to securing new orders, providing accurate pricing, and thoroughly understanding customer needs. These teams are led by industry veterans, including Dr. James Ringer (Chief Technology Officer), Raymond Paul Roach (Business Development Leader - Americas), Dr. Ron Valente (Business Development Leader - Americas) and Dr. Norbert Fluggen (Business Development Leader - Europe). We have identified a few more industry veterans who are expected to join Aether in the next couple of years as we look to expand our presence in application testing and new chemistries like polymerisation and silicone chemistry.
We actively participate in prominent trade shows and exhibitions, such as CPHI in India, Europe, Japan, China, South Korea and the USA; Chemical Outsourcing in the USA; and Chemspec in India and Europe. Furthermore, our sales team members are frequently invited to speak at various industry forums, showcasing our expertise and thought leadership.
To better serve our existing direct end-use customers, acquire new ones, and extend our product reach into new markets, we are pursuing a global expansion strategy. This includes the establishment of dedicated teams focused on business development in key international markets, particularly in Europe and the Americas.
Our strategic priorities include increasing the number of global stock points and strengthening our sales teams in India, the Americas, and Europe to ensure timely product delivery and enhanced customer service. We will also be looking to set up a point of contact in Asia especially in Japan or South Korea as we foray to focus on these markets going forward especially for electronic chemicals.
Information Technology
Our IT systems are critical to the seamless operation of our business, and we have implemented comprehensive IT policies to support our operations effectively. Our IT teams primary responsibilities include establishing and maintaining enterprise information systems, delivering infrastructure services to meet our business needs, and ensuring the security of our enterprise operations.
We leverage SAP, an enterprise resource planning (ERP) solution, which supports a wide array of business functions, including sales distribution, materials management, warehouse management, production planning, quality management, plant maintenance, finance and controlling, environment, health and safety, and human resources across all our offices, R&D facilities, and manufacturing plants.
Our information security strategy is focused on protecting data and assuring our customers of the security of their intellectual property (IP). To this end, we have implemented a robust data management facility, access restriction systems, and other advanced security measures. In Fiscal Year 2026 our IT systems were audited by global customers and we successfully passed all of them. The global customers maintain extremely stringent IT requirements.
In Fiscal Year 2024, we initiated the implementation of SAP S/4HANA, an advanced version of our current SAP-B1 system. We anticipate this new system will go live in the second half of FY26, enhancing our day-to-day operations and facilitating the integration of various departmental workflows.
Insurance
We maintain comprehensive insurance coverage that we deem essential for the protection of our business operations. Our insurance portfolio includes a policy that provides coverage against material damage to buildings, facilities, machinery, furniture, fixtures, fittings, stocks, and machinery breakdown. Additionally, we hold a cargo insurance policy that covers consignments of goods during transit by sea, air, and courier services, extending until delivery to the customers warehouse, as well as inland bulk cargo movement via road tanker.
Moreover, we maintain a commercial general liability insurance policy that safeguards against liabilities arising from bodily injury (including medical payments), property damage, and personal and advertising injury claims. To address specific IT and system-related risks, we have secured a cyber insurance policy. We also offer our employees COVID-19 insurance, covering pre- and posthospitalization expenses and emergency road ambulance costs. For our Directors and Senior Management, we have a Directors and Officers liability insurance policy, and for our employees, we provide Group Medical Insurance, Group Term Insurance, and Group Personal Accident coverage.
With respect to the insurance claim of approximately Rs.1,000 million, related to the fire incident occurred at our Manufacturing Facility 2 we had received Rs.210 million as on account payment from the Insurance Company towards the loss of assets and Rs.130 MM approximately towards the loss of stocks in FY 2025. The Company has quantified asset losses at Rs.299.68 million. An on- account insurance recovery of Rs.210 million has been received to date, and the final claim remains under assessment by the insurance company.
In FY 2026, the Company has received claim proceeds aggregating to Rs. 258.23 million towards loss of profit (FLOP).
In March 2026 there was a fire incident at an external warehouse which led to a loss of inventory worth Rs. 70 million. We have lodged an insurance claim with the insurance company for the said loss.
Focus on Quality, Environment, Health and Safety (QEHS)
Our business is dedicated to sustainability, prioritizing quality, environment, health, and safety.
We recognize that upholding superior product quality is crucial to our brand and growth. To ensure consistent quality, efficacy, and safety, we have implemented rigorous quality systems across all our manufacturing processes, from production to delivery. Our products meet global quality standards and undergo thorough quality checks, including random sampling and internal inspections. Numerous key customers have audited and approved our facilities, validating the continued excellence of our operations. As of March 31,2026, our environmental and safety teams consist of 73 (March 31,2025: 53) and 50 (March 31,2025: 47) employees, respectively, which is 6.50% and 4.45% (March 31,2025: 5.37% and 4.76%) respectively of our total work force, reflecting our commitment to maintaining a safe and sustainable operation.
We are committed to minimizing our environmental impact by adhering to stringent standards that not only meet but often surpass regulatory requirements. Our manufacturing practices embody the principles of green chemistry, focusing on energy efficiency, atom economy, and the 4R strategy (reduce, recover, recycle, reuse). We utilize cleaner chemistries, advanced reaction technologies, and automation to optimize the use of non-toxic materials and reduce effluent generation.
Our sustainability efforts include a 100 KLPD in- house zero liquid discharge (ZLD) plant, featuring comprehensive treatment technologies such as chemical neutralization, multiple effect evaporators, mechanical vapour recompression, reverse osmosis, and a soil biotechnology platform with ozonation. In July 2022, we had commissioned a 16 MW solar power plant at Sarod Village, Gujarat, funded by internal accruals, to power our current facilities and Greenfield project. We have further invested in a 15 MW solar plant with auto-tracker modules, which has also become operational fully in December 2024, which entails us to cover more than 75% of our electricity cost for Manufacturing Facility 1, Manufacturing Facility 2 and Manufacturing Facility 3. We will continuously be investing in the renewable sources of energy and are fast tracking the solar/wind/hybrid model for our upcoming new sites. In Fiscal Year 2026 we had energy savings of INR 149 million.
We also prioritize employee health and safety, ensuring a safe and supportive work environment. This includes hazard and operability studies for new products, an in-house mobile app for resource coordination, and comprehensive safety equipment including firefighting and safety systems including 700 m3 fire hydrant water storage, 271 m3 main electrical pump and diesel pump, automated foam monitors and water sprinklers, and Pulse Position Modulation (PPM) detection for gas and solvent leakage. Our plant wide DCS automation system allows us to control our safety systems and processes. Our safety infrastructure includes advanced firefighting systems and a collaborative fire hydrant water reserve (over 2,000 m3 capacity) with neighbouring chemical companies, enhancing overall safety and response capabilities.
Automation
Our manufacturing facilities utilize DCS that use geographically distributed control loops throughout our facilities to control our systems and processes to increase their safety, cost-effectiveness and reliability. Our Pilot Plant and CRAMS operations use a Siemens PCS7 DCS and our manufacturing facilities use a Yokogawa Centrum VP DCS.
Manufacturing Process
Our facilities have been meticulously designed and developed around a chemistry and technology centric model, where each product is strategically allocated to a specific production stream. This approach grants us the agility to switch from one product to another seamlessly, without any gestation period and with minimal costs.
The flexible design of our plants allows us to operate multiple streams within our intermediate product buildings, thereby mitigating contagion risks and ensuring consistent fulfilment of product demand.
All our manufacturing units are multipurpose plants with the capability to handle multiple streams, accommodating the broad range of products in our portfolio. We do not have dedicated plants or streams; instead, each stream is versatile enough to be utilized for various products, providing the flexibility to swiftly adapt the production mix in response to shifting demand. Every product is the outcome of a combination of specialized chemistries and processes tailored to achieve the desired results.
Competition
The speciality chemicals industry presents significant entry barriers, including customer validation and approvals, expectation from customers for process innovation and cost reduction, high quality standards and stringent specifications. Our competition varies by market, geographic areas and type of product. As a result, to remain competitive in our markets, we must continuously strive to reduce our costs of production, transportation and distribution and improve our operating efficiencies. We face competition primarily from international manufacturers especially Chinese companies. We compete primarily on the basis of product quality, technology, cost, delivery and service, as well as quality and depth of senior level relationships.
Human Resources
We place significant emphasis on the development of our human resources. As of March 31,2026, our workforce comprised 1123 employees (excluding trainees), compared to 987 as of March 31,2025, along with 296 contract workers and trainees. The strategic blend of full-time employees and contract personnel allows us the flexibility to operate our business efficiently. During Fiscal Year 2026, our attrition rate was 3.84%. In contrast, our attrition rate in Fiscal Year 2025 was 1.57%. The average age of our workforce as of March 31,2026, was 31 years.
As of March 31st, 2026, we employed 160 scientists holding either a PhD or Master of Science degree (constituting 14.24% of our workforce). Additionally, we had 196 chemical engineers, representing 17.45% of our workforce, as of March 31,2026. Our employees are not affiliated with any unions, and we have not encountered any significant work stoppages due to labor disputes or cessation of work over the past three years.
Our workforce plays a pivotal role in maintaining our standards of quality, productivity, and safety, which in turn bolsters our competitive advantage. The following table provides details of our employee count as of March 31,2026:
| Departments /Teams | Fiscal Year 2026 |
| Management and administration | 4 |
| Human Resource (HR) & Admin | 36 |
| Computer Information System (CIS) | 18 |
| Corporate Affairs | 4 |
| Finance & Accounts | 16 |
| Logistics & EXIM | 13 |
| Procurement | 4 |
| Sales & Business Development | 6 |
| Stores/Warehouse | 63 |
| Ouality Control/Analytical Lab/Ouality Assurance (CO/ADL/GA) | 85 |
| Research & Development (R&D) | 112 |
| Control & Instrumentation (C&l) | 47 |
| Environment Health & Safety (EHS) | 50 |
| Effluent Treatment (ETP) | 73 |
| Maintenance | 166 |
| Electrical | 51 |
| Production | 357 |
| Process & Project | 14 |
| Creative Team | 4 |
| Grand Total | 1,123 |
Our goal is to cultivate a culture grounded in fairness and respect, ensuring adherence to our Code of Conduct while safeguarding employees against discrimination, harassment, and retaliation. We are committed to regularly evaluating and enhancing our human resource initiatives to make them more inclusive, engaging, and focused on skill development. We place a strong emphasis on fostering and maintaining a superior organizational climate centred on human performance. Additionally, we provide our employees with a broad array of training opportunities and have
established a comprehensive learning and development policy to support these training initiatives.
Intellectual Property
We have applied for various trademark registration for our corporate logo under various classes of the Trademark Act, 1999, and Trade Rules, 2002, before the Registrar of Trademarks. The application has been made in the name of the Company. We also have registered the domain names aether.co.in, which is renewable periodically. We also rely on a combination of trade secret, and copyright law and contractual restrictions to protect We do not own any patents. We have agreements with our employees and consultants which include confidentiality provisions and provisions on ownership of intellectual property developed during employment or specific assignments, as applicable.
We have applied for various trademarks, copyrights for our logo, trade name, and punch line, wherein 46 of such trademarks are already approved.
Awards and recognition
Our Company has received the following key awards, accreditation and recognition:
| Year | Certifications/Accreditations/Awards |
| Awarded with ISO 9001:2015 | |
| 2015 | (Manufacturing Facility 1 - Hojiwala Unit) |
| 2017 | Awarded with ISO 9001:2015 |
| 2017 | Awarded with GMP - (ICH 07 Revision 1) |
| 2018 | Awarded with ISO 14001:2015 |
| 2021 | Awarded with ISO 27001:2013 |
| 2021 | Awarded with ISO 45001:2018 |
| 2022 | Silver rating from EcoVadis (Sustainability Rating) |
| 2022 | Membership to UN Global Compact (Network India) |
| 2023 | Membership of Indian Chemical Council (ICC) |
| Year | Certifications/Accreditations/Awards |
| 2024 | Award from Dun & Bradstreet/SBI Business Enterprise of tomorrow for Champions of the Year under Atman irbhar Abhiyan |
| 2024 | Award from Dun & Bradstreet/SBI Business Enterprise of tomorrow for Chemicals & Pharma (Mid-Corporate) |
| 2024 | Awarded with ISO 9001: 2015 - 8202 site |
| 2024 | Awarded with ISO 14001:2015 & ISO 45001 : 2018 - Hojiwala site |
| 2025 | Great Place to Work |
| 2026 | Great Place to Work - Reaffirmed Certification |
Principal Factors affecting our Results of Operations
Our financial performance and results of operations are influenced by a variety of factors, including without limitation, global and domestic competition, conditions in the markets of our end-user products, general economic conditions, changes in costs of raw materials and government regulations and policies.
Raw materials price fluctuations and availability
Our cost of goods sold, which encompasses the cost of materials consumed and changes in inventories of finished goods and work-in-progress, constitutes a significant portion of our operating expenses. In Fiscal Year 2026, our cost of goods sold amounted to Rs.6,008.90 MM (Fiscal Year 2025: Rs.4,465.84 MM), representing 51.79% of our revenue from operations (Fiscal Year 2025: 53.13%). We primarily procure raw materials from third-party suppliers, including imports.
These materials include crude oil derivatives, such as phenol, and other key commodities like hydrogen, ethylene oxide, and isobutylene gas. Additional critical raw materials include
chlorobenzonitrile, methanol, toluene, methylene dichloride, tetrahydrofuran, dichlorotoluene, and thiophene, among others.
Typically, we do not engage in long-term supply contracts with our raw material suppliers; instead, we source materials through shorter-term contracts or on the open market. The prices of our key raw materials are generally linked to international markets and have exhibited volatility, which can impact our production costs. While fluctuations in crude oil prices may influence our revenues, our profitability tends to be less affected as these price variations are usually passed on to our customers.
In Fiscal Year 2026, our cost of materials as a percentage of revenue from operations reduced marginally, primarily due to increase in raw material prices at the end of Q4 FY2026 due to the Middle East conflicts and also due to increase in inventory for our new production blocks in Site 3++ and Site 5.
Foreign exchange rate risk
Our financial statements are prepared in Indian Rupees. Flowever, a significant portion of our revenue from exports and raw material expenditures are denominated in foreign currencies, predominantly the U.S. Dollar. As a result, we are exposed to currency fluctuations related to transactions in other currencies.
In Fiscal Year 2026, Rs.2,397.34 MM of our revenue from operations was derived from exports compared to Rs.3309.88 MM in Fiscal Year 2025.
Additionally, 9.97% of our raw materials were imported in Fiscal Year 2026, in line with Fiscal Year 2025. Also export revenues as a percentages of sales are expected to decrease as some of our contract exclusive manufacturing contracts are dominated in Indian rupees and are with the Indian subsidiaries of multinational companies. Exchange rate fluctuations also impact our ability to meet debt obligations denominated in foreign currencies, such as our Packing Credit Loans in Foreign Currencies. We do not engage in hedging activities to mitigate our foreign currency exposure.
Consequently, we are subject to fluctuations in exchange rates among the U.S. Dollar, Indian Rupee, and other currencies.
In Fiscal Year 2026, we recorded a gain of Rs.160.53 MM from these currency fluctuations, compared to Rs.38.29 MM in Fiscal Year 2025.
Capital expenditure
On the back of robust inquiries on the CRAMS and OEM contracts we are currently in expansion mode. Site 1 which is dedicated to R&D is being expanded and also we have 16 new production blocks in Site 5. In Fiscal Year 2026, our capital expenditure was Rs.6,233.16 MM, compared to Rs.4,523.08 MM in Fiscal Year 2025. This expenditure focused on constructing and enhancing manufacturing facilities and diversifying our product range.
In March 2026, the Manufacturing Facility 3++ has been commissioned and production started. The facility is currently equipped for a key strategic product for Milliken Chemical and Textile (India) Co. Pvt Ltd a wholly owned subsidiary Milliken & Company (Milliken) based out of the USA. Under the agreement, we will be the sole contract manufacturing partner for a Milliken. The initial duration of the agreement is 10 years.
Expansion of Manufacturing Facility 5 continues in full swing. In Fiscal Year 2026 we have completed the construction of all the utilities (non revenue generating) for all the sixteen production blocks which has been envisaged on the site. Also we commenced water and steam trials in the first two production blocks of Manufacturing Site 5. The commercialisation of the first two production blocks is expected by quarter 1 of Fiscal Year 2027. We expect another two more production blocks to commence production in Fiscal Year 2027. By the end of Fiscal Year 2027 we should have four of the sixteen production blocks commencing production and contributing revenue to the LSM/CEM business verticals.
In Fiscal Year 2027 the total capex which is envisaged is Rs. 3,500 million of which we plan to incur:
• Rs. 1,000 million on the new R&D building which
is being constructed to the adjacent R&D site. The new R&D site is expected to be equipped with 120 fume hoods for which we already have a high visibility of projects
• Rs. 2,500 million will be spent on Manufacturing
Facility 5 where we expect to start construction of Phase 2 i.e 4 new production blocks which will commence production in Fiscal Year 2028
Reliance on major customers and relatively few products
Our customer base includes numerous multinational and domestic companies. In Fiscal Year 2026, our largest customer contributed approximately 18.98% of revenue from operations (up from 10.00% in Fiscal Year 2024). Our top 10 customers accounted for about 40.32% of revenue our revenue from operations (compared to 45.86% in Fiscal Year 2025), while our top 20 customers contributed 52.19% (down from 58.77% in Fiscal Year 2025). This indicates a reduced dependence on major customers and an expanded client base. As we scale up our CEM business model we do expect the concentration to increase for certain customers. However we expect the concentration to reduce when Site 5 starts manufacturing at scale.
For Fiscal Year 2026, our top five specialty chemical products (BFA, 4MEP, T2E, 10MISB, and DVL) represented 31.01 % of our revenue from operations, showing a decline from 43.69% in the previous fiscal year, reflecting a broader product portfolio. We maintain several supply contracts, ranging from one to ten years, primarily with multinational clients for our CRAMS and contract manufacturing services.
Competition
Our products are used in end-user industries, such as pharmaceuticals, agrochemicals, oil and gas, material science amongst other industries. The broad-spectrum application of our products in the chemical industry is for advanced intermediates and significantly higher value specialty chemicals, which we believe is a unique position in the Indian chemical industry.
Moreover, whatever new products that we are developing in our R&D Facility are also such products which will be the first of its kind in India and we would be dominating the Indian market with the new products as well.
Costs of power and fuel
Power and fuel are essential for the uninterrupted operation of our manufacturing facilities. In Fiscal Year 2026, electricity charges represented 1.67% of our revenue from operations (down from 2.05% in Fiscal Year 2025). Overall power and fuel costs, including gas, steam, and diesel, accounted for 2.55% of revenue from operations (a decrease from 2.80% in Fiscal Year 2025).
Between Fiscal Year 2025 and Fiscal Year 2026: Steam charges increases from Rs.159.85 MM to Rs.206.75 MM, driven by mainly on increase of operations and higher coal and crude oil prices. Electricity expenses increased from Rs.172.01 MM to Rs.194.22 MM, largely due to increase in operations from Site 4 and commissioning of Manufacturing Facility 3++.
Non-GAAP Financial Measures
Alongside our results prepared in accordance with Ind AS, we believe that the following non-GAAP measures provide valuable insights for assessing our performance and for investor evaluation: EBITDA, EBITDA Margin, PAT Margin, ROE, Capital Employed, ROCE, Debt, Net Debt, Debt-Equity Ratio, Net Debt- EBITDA Ratio, Net Worth, Return on Net Worth, Net Asset Value per Equity Share, Pre-Tax Operating Profit, Net Tangible Assets, Monetary Assets, and the percentage of Monetary Assets to Net Tangible Assets. These non- GAAP metrics are used internally for ongoing operational assessment, planning, and forecasting.
We believe that non-GAAP financial information, when considered alongside Ind AS-compliant measures, offers additional tools for investors to evaluate our operating results, trends, and for comparative analysis within our industry. They provide consistency and comparability with historical performance. However, our management does not view these non-GAAP measures in isolation or as substitutes for Ind AS financial measures.
It is important to note that non-GAAP financial information is supplementary and has limitations as an analytical tool. It should not be considered in isolation or as a replacement for financial information prepared under Ind AS. These measures are not recognized under Ind AS and lack standardized definitions, which may vary from those used by other companies. The main limitation of these non-GAAP measures is their exclusion of significant expenses and income required by Ind AS to be recorded in our financial statements.
Moreover, they reflect managements judgment regarding which items are included or excluded. Reconciliations of non-GAAP measures to their closest Ind AS-compliant counterparts are provided below. Investors are encouraged to review these reconciliations and not rely solely on any single financial measure for evaluating our business.
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 | 2025 |
| EBITDA (1) | 3546.6 | 2311.67 |
| EBIDTA Margin (2) | 30.57% | 27.5% |
| PAT Margin (3) | 18.92% | 18.85% |
| ROE (4) | 8.94% | 7.12% |
| Capital Employed (5) | 28,918.87 | 21,698.89 |
| ROCE (6) | 9.97% | 8.58% |
| Debt (7) | 4,416.62 | 1,825.29 |
| Net Debt (8) | Rs.4,359.99 | - Rs.559.97 |
| Debt - Equity Ratio (9) | 0.18 | 0.08 |
| Net Tangible Asset (11) | 21,960.30 | 20,525.36 |
| Monetary Asset (12) | 56.63 | 2,385.26 |
| % of Monetary Asset to Net Tangible Asset (13) | 0.26% | 11.62% |
| Net Worth (14) | Rs.24,558.88 | Rs.22,258.86 |
| Return on Net Worth (15) | 8.94% | 7.12% |
| Pre-Tax Operating Profit (16) Net Asset Value per Equity Share (17) |
Rs.2,520.71 185.10 | Rs.1,602.87 167.88 |
Notes
1. EBITDA is calculated as the sum of (i) profit before tax and prior period items for the period/year, (ii) depreciation and amortization expenses, and (iii) finance costs less (iv) other income.
2. EBITDA Margin is calculated as EBITDA divided by revenue from operations.
3. PAT Margin is calculated as profit for the period/year divided by total income.
4. ROE is calculated as profit for the period/year divided by total equity.
5. Capital Employed is calculated as total equity, plus non-current borrowings, plus current borrowings, less current investments, less cash & cash equivalents, less bank balances other than cash & cash equivalents.
6. ROCE is calculated as earnings before interest and taxes divided by Capital Employed.
7. Debt is calculated as the sum of current borrowings and non- current borrowings.
8. Net Debt is calculated as total liabilities less cash & cash equivalents and bank balances.
9. Debt-Equity Ratio is calculated as Debt divided by total equity.
10. Net Debt-EBITDA Ratio is calculated as Net Debt divided by EBITDA.
11. Net Tangible Assets is calculated as the sum of all the assets of our Company excluding, right of use assets and other intangible assets as reduced by total liabilities of our Company.
12. Monetary Assets is calculated as cash and cash equivalents and bank balances and excluding bank deposits with remaining maturity of more than twelve months and fixed deposits held as margin money.
13. Percentage of Monetary Assets to Net Tangible Assets is calculated as Monetary Assets divided by Net Tangible Assets, expressed as a percentage..
14. Net Worth is calculated as the aggregate value of the paid-up share capital and all reserves created out of the profits (inclusive of net gain consequent to fair valuation of certain assets on transition to Ind AS) and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.
15. Return on Net Worth is calculated as profit for the period/year divided by Net Worth.
16. Pre-Tax Operating Profit is calculated as profit before tax and prior period items for the period/year, excluding other income, finance costs and other comprehensive income.
17. Net Asset Value per Equity Share is calculated as Net Worth divided by the weighted average number of equity shares for the period/year as adjusted for bonus issue. Weighted average number of equity shares is the number of equity shares outstanding at the beginning of the year/period adjusted by the number of equity shares issued during the year/period multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year/period.
EBITDA, EBITDA Margin, PAT Margin and ROE
The following table sets forth our EBITDA, EBITDA Margin, PAT Margin and ROE, in each of the Fiscal Year 2026 and Fiscal Year 2025:
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 | 2025 |
| Total Income (A) | 11810.68 | 8803.12 |
| Revenue from Operations (B) | Rs.11,601.41 | Rs.8,405.48 |
| Profit before tax and prior period items (C) | Rs.2,910.85 | Rs.2,129.84 |
| Add: Finance Costs (D) | 180.87 | 129.33 |
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 | 2025 |
| Add: Depreciation and Amortization Expense (E) | 664.15 | 450.14 |
| Less: Other Income (F) | Rs.209.27 | Rs.397.64 |
| EBITDA (G=C+D+E-F) | 3,546.60 | 2,311.67 |
| EBITDA Margin (H=G/B) | 30.57% | 27.5% |
| Profit for the Period (I) | 2194.63 | 1584.18 |
| Total Equity (J) | 24,558.88 | 22,258.86 |
| PAT Margin (l/A) | 18.58% | 18.00% |
| Return on Equity - ROE (l/J) | 8.94% | 7.12% |
Capital Employed and Return on Capital Employed (ROCE)
The following table sets forth our Capital Employed and Return on Capital Employed (ROCE), including a reconciliation of ROCE to our profits/losses before tax and prior period items in each of the Fiscal Year 2026 and Fiscal Year 2025
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 2025 |
|
| Profit/(Loss) before tax* (A) | Rs.2,910.85 | Rs.2,129.84 |
| Finance Costs* (B) | Rs.180.87 | Rs.129.33 |
| Other income* (C) | 209.27 | 397.64 |
| EBIT (D) = (A)+(B)-(C) | 2,882.45 | 1,861.52 |
| Capital Employed- Pre Cash | ||
| (K)=(E)+(F)+(G)-(H)-(I)-(J) | ||
| Total Equity (E) | 24,558.88 | 22,258.86 |
| Non-Current Borrowings (F) | - | - |
| Current Borrowings (G) | Rs.4,416.62 | Rs.1,825.29 |
| Current Investments (H) | - | - |
| Cash and Cash equivalents (I) | Rs.56.63 | Rs.173.71 |
| Bank balances other than cash and cash equivalents (J) | - | Rs.2,211.55 |
| ROCE (K=D/K) | 9.97% | 8.58% |
Debt, Net Debt, Debt-Equity Ratio and Net Debt- EBITDA Ratio
The following table sets forth our Debt, Net Debt, Debt-Equity Ratio and Net Debt-EBITDA Ratio as at March 31,2026 and March 31,2025
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 | 2025 |
| Non-Current Borrowings (A) | - | - |
| Current Borrowings (B) | Rs.4,416.62 | Rs.1,825.29 |
| Debt (C=A+B) | Rs.4,416.62 | Rs.1,825.29 |
| Total equity (D) | Rs.24,558.88 | Rs.22,258.86 |
| Debt-Equity Ratio (E=C/D) | 0.18 | 0.08 |
| Total Liabilities (G) | Rs.7,455.38 | Rs.4,183.33 |
| Less: Cash and cash equivalents and bank | Rs.56.63 | Rs.2,385.26 |
| balances (H) Net Debt (l=G-H) |
Rs.7,398.75 | Rs.1,798.07 |
| EBITDA (J) | Rs.3,546.60 | Rs.2,311.67 |
| Net Debt - EBITDA Ratio (K=l/J) | 2.09 | 0.78 |
Overview of Revenue and Expenditure
The following descriptions set forth information with respect to key components of our income statement.
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 | 2025 |
| Total Income (A) | 11,810.68 | 8,803.12 |
| Revenue from Operations | Rs.11,601.41 | Rs.8,405.48 |
| v Profit before tax and prior period items (C) |
Rs.2,910.85 | Rs.2,129.84 |
| Add Finance Costs (D) | Rs.180.87 | Rs.129.33 |
| Add: Depreciation and Amortization Expense (E) | 664.15 | 450.14 |
| Less: Other Income (F) | Rs.209.27 | Rs.397.64 |
| EBITDA (G=C+D+E-F) | Rs.3,546.60 | Rs.2,311.67 |
| EBITDA Margin (H=G/B) Profit for the Period (1) | Rs.0.31 2,194.63 |
Rs.0.28 1,584.18 |
| Total Equity (J) | Rs.24,558.88 | Rs.22,258.86 |
| PAT Margin (l/A) | 18.58% | 18.00% |
Revenue from operations
Sale of products manufactured are done under our three business models, namely (i) Large-Scale Manufacturing of Specialty Chemicals (“LSM”), (ii) Contract/Exclusive (“CEM”) Manufacturing, and (iii) Contract Research and Manufacturing Services (“CRAMS”). Such sales of products can be divided into (i) local sales, (ii) export sales (including sales to SEZ units within India), (iii) deemed exports (representing sales to Indian companies under an advance authorization license) and (iv) export sales under our CRAMS business model.
Sale of services are done under our CRAMS business model. Such sales can be divided into services provided to (i) overseas customers and (ii) customers in India.
costs. The flexible design of our plants allows us to operate
Other income
Other income primarily comprises interest income on fixed deposits, income from foreign exchange fluctuation, MEIS Duty Credit, SEIS Duty Credit, exports duty drawback, interest accrued on loans to employees, interest on income tax refund, profit on termination of lease amongst the others.
Expenditure
Our expenditure comprises the following:
Cost of materials consumed
Cost of materials consumed comprises (i) the cost of raw materials used in the manufacture of our products; (ii) the cost of packing materials; (iii) the cost of stores and spares; and (iv) the cost of other materials. Our raw materials include crude oil derivatives such as phenol and other commodities such as hydrogen, ethylene oxide and Isobutylene gas.
Other important raw materials include chlorobenzonitrile methanol, toluene, methylene dichloride tetrahydrofuran, dichlorotoluene and thiophene.
Changes in inventories of finished goods and work- in- progress
Expenses/Income accounted for pursuant to an (increase)/decrease in inventories of work-in- progress.
Employee benefit expenses
Employee benefit expenses comprises salaries, wages and bonus, contribution to provident and other funds, actuarial valuation of gratuity, staff welfare expenses, leave encashment expenses, employee medical insurance expenses, value of discount in ESOPs and other employee related expenses.
Finance costs
Finance costs comprises interest expenses on term loan, cash credit, Packing Credit Loan in Foreign Currency (PCFC), bill discounting, Stand by Letter of Credit (SLC), car loans, interest on finance liabilities and interest on overdrafts.
Depreciation and amortization expenses
Depreciation and amortization expenses comprises depreciation of tangible assets including our plant and machinery, building, factory equipment, computer equipment, office and other equipment, furniture and fixture, amongst others; and amortization of intangible assets including computer software and others; and amortization of leasehold land and leasehold premises.
Other expenses
Other expenses comprise primarily of (a) manufacturing expenses, such as gas expenses, steam charges, diesel expenses, water, fees paid to third party workers for solvent recovery services (classified as ‘job work charges in our Financial Statements), effluent disposal, and fees paid to contract works (classified as ‘manpower supply expenses in our Financial Statements), amongst others; (b) administrative and general expenses, such as rents, salaries to directors, repairs and maintenance expenses, electricity expenses, legal and professional charges, amongst others; (c) selling and distribution expenses, such as freight and selling expenses and commissions paid to selling agents, amongst others; and (d) other expenses, such as loan processing fees and other documentation charges and bank charges, amongst others.
Operating Segment and Business Models
Our Company is exclusively engaged in the business of manufacturing of speciality chemicals and intermediates. As such, in accordance with Ind AS, our Companys business is considered to constitute one single primary segment.
Geographic information
The geographic information analyses our revenues by our country of domicile and other countries for the periods/years indicated. In presenting geographic information, revenue has been based on the location of the customers.
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 | 2025 |
| India | Rs.9,204.07 | Rs.5095.60 |
| Rest of the world | Rs.2,397.34 | Rs.3,309.88 |
| Total | Rs.11,601.41 | Rs.8,405.48 |
Business Models
We have three broad business models within our primary operating segment, which are (a) Large- Scale Manufacturing of Specialty Chemicals, (b) Contract Manufacturing, and (c) Contract Research and Manufacturing Services (“CRAMS”) The following table sets out our revenue for each of the periods/fiscal years mentioned, broken down by our three (3) business models.
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 | 2025 |
| Contract/Exclusive Manufacturing |
Rs.5,234.43 | Rs.2,630.07 |
| Large Scale Manufacturing | Rs.4,890.69 | Rs.4,623.54 |
| CRAMS | Rs.1,045.62 | Rs.1,027.54 |
| Others* | Rs.142.63 | Rs.105.74 |
| Total | Rs.11,313.37 | Rs.8,386.90 |
Results of operations
The following table sets forth our income statement data, the components of which are expressed as a percentage of total income for the periods indicated, for our operations for Fiscal Year 2026 and Fiscal Year 2025
| Particulars | For the year ended |
|||
March 31, 2026 |
March 31, 2025 |
|||
| In Rs. MM | % | In Rs. MM | % | |
| Income: | ||||
| Revenue from operations | 11,601.41 | 98.23% | 8,405.48 | 95.48% |
| Other Income | 209.27 | 1.77% | 397.64 | 4.52% |
| Total income | 11,810.68 | 100% | 8,803.12 | 100% |
| Expenses: | ||||
| Cost of materials consumed | 6,822.37 | 57.76% | 5,072.03 | 57.62% |
| Changes in inventories of finished goods and work-in-progress | (813.47) | -6.89% | (606.19) | -6.89% |
| Employee benefits expense | 627.33 | 5.31% | 462.12 | 5.25% |
| Finance cost | 180.87 | 1.53% | 129.33 | 1.47% |
| Depreciation and amortisation expense | 664.15 | 5.62% | 450.14 | 5.11% |
| Other expenses | 1,328.82 | 11.25% | 1,047.11 | 11.89% |
| Total expenses | 8,810.07 | 74.59% | 6,554.54 | 74.46% |
| Profit before exceptional items and tax | 3,000.61 | 25.41% | 2,248.58 | 25.54% |
| Exceptional Items | 89.76 | 0.76% | 118.74 | 1.35% |
| Profit before tax | 2,910.85 | 24.65% | 2,129.84 | 24.19% |
| Tax expense: Current tax | 508.35 | 4.30% | 380.16 | 4.32% |
| Deferred tax | 207.87 | 1.76% | 165.50 | 1.88% |
| Total Tax Expenses | 716.22 | 6.06% | 545.66 | 6.20% |
| Profit for the year (A) | 2,194.63 | 18.58% | 1,584.18 | 18.00% |
Net Asset Value
The following table sets forth the Net Assets Value (NAV) per share for Fiscal Year 2026 and Fiscal Year 2025
| Particulars | For the year ended |
|
| March 31, 2026 | March 31, 2025 | |
| In Rs. MM | In Rs. MM | |
| Total Assets (A) | 32,014.26 | 26,442.19 |
| Less: Other Intangible Assets (B) | 107.26 | 87.26 |
| Less: Right of use assets (C) | 2,587.10 | 1,725.78 |
| Less: Total Liabilities (D) | 7,455.38 | 4,183.33 |
| Net Tangible Assets (E=A-B-C-D) | 21,864.52 | 20,445.82 |
| Less: Cash and cash equivalents and bank balances (F) | 56.63 | 173.71 |
| Less: Bank deposits with remaining maturity more than 12 months (G) | - | 2,211.55 |
| Less: Fixed Deposit held as margin money (H) | ||
| Monetary Asset (l=F-G-H) | 56.63 | 2,385.26 |
| % of Monetary Asset to Net Tangible Assets (J=l/E) | 0.26% | 11.67% |
| Net Worth (K=1+2+3+4+5) | 24,558.88 | 22,258.86 |
| Issued subscribed and fully paid up equity share capital (1) | 1,326.80 | 1,325.90 |
| General Reserve (2) | ||
| Securities Premium Reserve (3) | ||
| Retained Earnings (4) | ||
| Employee share options reserve (5) | ||
| Profit for the year (L) | 2,194.63 | 1,584.18 |
| Return on Net Worth (M=L/K) | 8.94% | 7.12% |
| Profit before tax (N) | 2,910.85 | 2,129.84 |
| Less: Other Income (0) | 209.27 | 397.64 |
| Add: Finance Cost (P) | 180.87 | 129.33 |
| Pre-Tax Operating Profit (Q=N-0+P) | 2,882.45 | 1,861.52 |
| Number of equity shares outstanding at the end of the year (R) (number in MM) | 132.68 | 132.59 |
| Effect of dilutive potential equity shares | ||
| Number of equity shares outstanding at the end of the year after adjustment (number in MM) (S) | 132.68 | 132.59 |
| Net Asset Value per Equity share (basic) (T=K/R) | 185.10 | 167.88 |
| Net Asset Value per Equity share (adjusted) (U=K/S) | 185.10 | 167.88 |
Comparative analysis of Profit and Loss
The following table sets out the comparison of the revenues and expenses for the FY 2026 and FY 2025:
| Particulars | For the year ended March 31 |
Change | |
| In Rs. MM | 2026 | 2025 | % |
| Income | |||
| Revenue from operations | n 1,601.41 | Rs.8,405.48 | 38.02% |
| Other Income | Rs.209.27 | Rs.397.64 | -47.37% |
| Total income | Rs.11.810.68 | Rs.8,803.12 | 34.16% |
| Expenses | |||
| Cost of materials consumed | Rs.6,822.37 | Rs.5,072.03 | 34.51 % |
| Changes in inventories of finished goods and work- in-progress | - Rs.813.47 | - Rs.606.19 | 34.20% |
| Employee benefits expense | Rs.627.33 | Rs.462.12 | 35.75% |
| Finance cost | Rs.180.87 | Rs.129.33 | 39.85% |
| Depreciation and amortisation expense | Rs.664.15 | Rs.450.14 | 47.54% |
| Other expenses | Rs.1,328.82 | Rs.1,047.11 | 26.90% |
| Total expenses | Rs.8,810.07 | Rs.6,554.54 | 34.41% |
| Profit before exceptional items and tax | Rs.3,000.61 | Rs.2,248.58 | 33.44% |
| Exceptional Items | Rs.89.76 | Rs.118.74 | -24.40% |
| Profit before tax | Rs.2,910.85 | Rs.2,129.84 | 36.67% |
| Tax expense: | |||
| Current tax | Rs.508.35 | Rs.380.16 | 33.72% |
| Deferred tax | Rs.207.87 | Rs.165.50 | 25.60% |
| Total Tax Expenses | Rs.716.22 | Rs.545.66 | 31.26% |
| Profit for the year (A) | Rs.2,194.63 | n,584.18 | 38.53% |
Revenue from operations
The revenue from operations in Fiscal Year 2026 amounted to f 11,601.41 MM, as against Rs.8,405.48 MM, an increase of 38.02% in the comparative periods. The main reasons for the increase in the revenue from operations, include:
1. Scale up of Site 4 which has been dedicated to Baker Flughes
2. Increase in revenue contribution from Contract/Exclusive Manufacturing
3. Increase in prices for products in Large Scale Manufacturing
4. Increase in revenue from CRAMS as there were 55 projects which we were working on of which 40 projects were for customers
Other income
Our other income reduced by 47.37% from Rs.397.64 MM in Fiscal Year 2025 to Rs.209.27 MM in Fiscal Year 2026. The decrease was mainly on account of decrease interest incomes on Fixed Deposits created out of idle QIP funds, which helped us earn revenue in Fiscal Year 2025, which was Rs.344.06 MM. The same has reduced to Rs.42.57 MM Fiscal Year 2026 as the idle funds were used for the capital expenditure on different projects and interest income earned on fixed deposits created for margin monies.
Cost of materials consumed
Our cost of materials consumed increased by 34.51 % from Rs.5,072.03 MM in Fiscal Year 2025 to Rs.6,822.37 MM in Fiscal Year 2026, primarily due to an increase in production volumes. The material consumed as percentage of sales reduced from 60.34% to 58.80% is mainly on account of increase in sales contribution from CRAM and CEM business model and increase in prices for the large scale manufacturing products.
Change in inventories of finished goods and work- in-progress
The change in inventories of finished goods and work in progress increased from Rs. 606.19 MM to Rs.813.47 MM an increase of 34.51 %. The increase was mainly due to increase in production across all business models and also increase in raw materials
Employee benefit expenses
Our employee benefit expenses increased by 35.75% from Rs.462.12 MM in Fiscal Year 2025 to Rs.627.33 MM in Fiscal Year 2026, primarily due to the annual increments of the employees, new recruitments and new ESOPs granted in the Fiscal Year 2026.
Finance costs
Our finance costs increased by 39.85% from Rs.129.33 MM in Fiscal Year 2025 to Rs.180.87 MM in Fiscal Year 2026, primarily because the Company, after its IPO proceeds used to pay off all the debts, had to start with fresh working capital facilities from the banks for the increase in business needs. This was also increased due to the rates of interest which increased in Fiscal Year 2025 as compared to Fiscal Year 2024.
Depreciation and amortization expenses
Depreciation and amortization expense increased by 47.54% from Rs.450.14 MM in Fiscal Year 2025 to
Rs.664.15 MM in Fiscal Year 2026. This increase is attributable to the continuous capital expenditure being done by the Company at regular intervals for the expansions at most of the sites, and also the new projects started at Manufacturing Facility 3++ and Manufacturing Facility 5.
Other expenses
Our other expenses increased marginally by 26.90% from Rs.1,047.11 MM in Fiscal 2025 to Rs.1,328.82 MM in Fiscal Year 2026. The reason for increase is attributable to the increase electricity expenses and steam costs due to increase in production mainly on account of increase in production in Site 4 and Site 2. We have commissioned 31 MW Solar Power Plant in Fiscal Year 2025 and the total electricity savings was Rs. 194.22 mm in Fiscal Year 2026.
Exceptional items
During the Fiscal Year 2026, there was a fire accident at our external warehouse in March 2026. This led to some one-time and exceptional expenses, which amount to Rs.89.76 MM. This mainly includes the excess of premium paid for insurance for the insurance claim put up by the Company to the Insurance Company.
Profit before tax
As a result of the foregoing, we recorded an increase of 33.44% in our profit before tax, which amounted to Rs.3,000.61 MM in Fiscal Year 2026, as compared to Rs.2,248.58 MM in Fiscal Year 2025.
Tax expenses
Our tax expenses (current and deferred) increased by 31.26% from Rs.545.66 MM in Fiscal Year 2025 to Rs.716.22 MM in Fiscal Year 2026. Our effective tax rate in Fiscal Year 2026 and Fiscal Year 2025 was 24.61% and 25.62%, respectively.
Profit for the period
As a result of the foregoing, we recorded an increase of 92.04% in our profit for the year from Rs.824.90 MM in Fiscal Year 2024 to Rs.1,584.18 MM in Fiscal Year 2025. PAT Margin in Fiscal Year 2025 has been 18%, which was 12.94% in Fiscal Year 2024.
Liquidity and Capital Resources
Capital requirement
Our principal capital requirements are for payment for the various capital expenditure on going at Manufacturing Facility 3++, Manufacturing Facility 4, Manufacturing Facility 1 (for the expansion of the new R&D) and Manufacturing Facility 5.
Our principal source of funding has been and is expected to continue to be, cash generated from our operations, supplemented by borrowings from banks and financial institutions and optimization of operating working capital.
For the expansion projects for Site 5 and the new R&D plant coming adjacent to Site 1 will be primarily be funded via a mixture of debt and internal accruals.
Liquidity
Our liquidity requirements arise principally from our operating activities, capital expenditures for construction of new facilities and undertaking of new projects, the repayment of borrowings and debt service obligations. Historically, our principal sources of funding have included cash from operations, short-term and long-term borrowings from banks, overdraft facilities that are repayable on demand, cash and cash equivalents and equity and financing provided by our shareholders We have also entered into various revolving credit and other working capital facilities, which provides sufficient liquidity for our requirements.
Cash flows
Cash flow from operations increased from Rs.1,000.21 MM in Fiscal year 2025 to f1,423.82 MM in Fiscal Year 2026 representing a growth of 42.35%. The improvement in cash flow from operations has been mainly on account of improvement in our profitability and also reduction in the inventory days and trade receivable days. Working Capital for the company is expected tom improve in Fiscal Year 2027 as we start executing more of the CEM contracts and also there is an expected increase in revenue from the new CRAMS projects.
Our Cash Flows for the Fiscal Year 2026 and Fiscal Year 2025 have been as depicted in the below table:
| Particulars | For the year ended March 31, |
|
| In Rs. MM | 2026 | 2025 |
| Net Cash generated from Operating Activities | Rs.1,423.82 | Rs.1,000.21 |
| Net Cash (Used in) Investing Activities | - Rs.6,193.77 | -XA, 184.72 |
| Net Cash from/(Used in) Financing Activities | Rs.2,438.60 | ^12.54 |
| Net Increase/(Decrease) in Cash and Cash Equivalents | -^2,331.35 | - Rs.3,171.97 |
| Cash and Cash Equivalents at the beginning of the year | Rs.2,385.26 | Rs.5,556.54 |
| Cash and Cash Equivalents at the end of the year | Rs.56.63 | Rs.2,385.26 |
Cash flows generated from operating activities
We had positive f1,423.82 MM net cash from operating activities during the Fiscal Year 2026. While our net profit before tax was Rs.2,910.85 MM, we had an operating profit before working capital changes of Rs.3,732.52 MM, primarily due to adjustments for depreciation and amortization expenses of Rs.664.15 MM and finance costs of Rs.180.87 MM which were partially offset by interest income amounting to Rs.42.58 MM. Our adjustments for working capital changes for the Fiscal Year 2026 primarily consisted of increase in trade receivables by Rs.908.16 MM, increase in inventories by Rs.1,476.02 MM and increase in other current assets by Rs.301.20 MM, which were partially offset by a decrease in trade payables by f691.62 MM. Our cash generated from operating activities was Rs.1,966.03 MM, adjusted by tax paid (net of refund) of Rs.542.22 MM.
We had positive f1,000.21 MM net cash from operating activities during the Fiscal Year 2025. While our net profit before tax was Rs.2,129.84 MM, we had an operating profit before working capital changes of Rs.2,380.92 MM, primarily due to adjustments for depreciation and amortization expenses of Rs.450.14 MM and finance costs of Rs.129.33 MM which were partially offset by interest income amounting to Rs.344.08 MM. Our adjustments for working capital changes for the Fiscal Year 20255 primarily consisted of increase in trade receivables by f551.15 MM, increase in inventories by Rs.533.95 MM and increase in other current assets
by Rs.326.43 MM, which were partially offset by a decrease in trade payables by Rs.244.06 MM. Our cash generated from operating activities was f1,544.69 MM, adjusted by tax paid (net of refund) of Rs.544.48 MM.
Cash flows used in investing activities
Net cash used in investing activities was Rs.6,193.77 MM in Fiscal Year 2026, primarily on account of Rs.3,838.74 MM used for purchase of fixed assets principally for Manufacturing Facility - 3++, Manufacturing Facility 1 (new building) and Manufacturing Facility - 5 (Phase 1 at Panoli), Investment in Manufacturing Facility 3++ and Phase One of Manufacturing Facility 5 (at Panoli), which are still in Capital Work in Progress amounting to f 1,481.11 MM. In Fiscal Year 2026 we also purchased a 15 acre land on Panoli for Rs.913.09 MM for future expansion. These were partially offsetting by Rs.42.58 due to income from Mutual Fund investments.
Net cash used in investing activities was Rs.4,184.72 MM in Fiscal Year 2025, primarily on account of Rs.2,924.39 MM used for purchase of fixed assets principally for Manufacturing Facility - 3, Manufacturing Facility 1 (normal capex) and Manufacturing Facility - 2 (normal CAPEX post fire accident in November 2023), Manufacturing Facility 4 (normal Capex) and payment for new Solar Power Plant of 15MW (Auto-Tracker). Investment in Manufacturing Facility 3++ and Phase One of Manufacturing Facility 5 (at Panoli), which are still in Capital Work in Progress amounting to f1,478.98 MM . These were partially offsetting by Rs.344.08 due to income from Mutual Fund investments.
Cash flows generated from/(used in) financing activities
Net cash used in financing activities in the Fiscal Year 2025 amounted to Rs.2,438.60 MM, which primarily consisted of proceeds from the working capital facilities which were availed during the year amounting to Rs.2,589.05 MM in Fiscal Year 2026 as compared to Rs.141.12 MM in Fiscal Year 2025 and allotments or vesting of ESOPs to employees amounting to Rs.41.09 MM. These were offset by interest paid in the amount of Rs.166.02 MM and lease liabilities of Rs.25.52 MM.
Capital and other commitments
As of March 31,2026 and March 31,2025, the estimated amount of contracts remaining to be executed on capital account not provided for was Rs. 3347.77 MM and Rs.2635.73 MM, respectively.
Capital expenditure
Capital expenditures consist primarily of investments in new manufacturing facilities and equipment. We also make investments at our manufacturing facilities to add new technologies, modernise facilities and expand our product lines. Capital expenditure will vary from year to year depending upon a number of factors, including the need to replace equipment and the timing of certain projects, such as investment in new technologies. In the Fiscal Year 2026, we incurred capital expenditure of Rs.4,751.84 MM (Fiscal Year 2025: Rs.3,044.105 MM). A significant amount of our capital expenditure was aimed at constructing manufacturing and other facilities, increasing our manufacturing capacities and diversifying our product base, along with the construction of the Greenfield Project at site 3++, first phase of expansion at Manufacturing Facility 5 and expansion at Manufacturing Facility 1 (R&D expansion).
Contingent liabilities
Contingent liabilities, to the extent not provided for, as of March 31,2026 and March 31,2025, as determined in accordance with Ind AS 37, are described below:
| Particulars (INR in MM) | 2026 | 2025 |
| Bank Guarantees Issued for: | ||
| Customs | 6.44 | 8.89 |
| Gujarat Gas Limited | 20.92 | 27.31 |
| DGVCL | 116.83 | 100.46 |
| NHI | 0.25 | 0.25 |
| GPCB | 0.00 | 0.75 |
| Income tax demand: | ||
| AY 2020-21 (PY 2019-20) | 1.32 | 1.32 |
| TDS Demand: | ||
| AY 2024-25 (PY 2023-24) | 0.01 | 0.01 |
| GST Demand: | ||
| FY 2021-22 | 6.12 | 0.00 |
| FY 2021-22 | 36.49 | 0.00 |
| FY 2021-22 | 0.01 | 0.00 |
Note:
(1) Management believes that its position on the aforesaid Income tax and GST matters against the Company will likely to be upheld in the Appeals/appellate process and accordingly no provision has been made in the standalone financial statements for such demands.
(2) Fixed Deposits amounting to Rs.13.40 millions (Previous year:
Rs.11.97 millions) has been provided to bank for above bank guarantees
(3) The Company received a demand cum show Cause Notice from the CGST & Central GST Surat Commissionerate alleging an ineligible/excess availing of Input Tax Credit (ITC) amounting to Rs.42.62 million (Previous Year: Nil) with respect to expenses incurred on the launching of its Initial Public Offer (IPO).
The Company has preferred an appeal before the appropriate Appellate Authorities against the said demand. Management, based on internal assessments and independent legal advice, is of the firm opinion that the said ITC is eligible under the provisions of the CGST Act, 2017. As the company expects a favourable outcome and believes that the probability of an ultimate outflow of economic resources is remote, no provision has been recognized in the financial statements for the year ended March 31,2026.
Related Party Transactions
Contingent liabilities, to the extent not provided for, as of March 31,2026 and March 31,2025, as determined in accordance with Ind AS 37, are described below:
| Particulars | As at March 31, |
|
| Nature of transaction (INR in MM) | 2026 | 2025 |
| Rent Paid | 1.84 | 5.58 |
| Purchase of Land | 0.00 | 109.44 |
| Managerial Remuneration | 67.25 | 67.25 |
| Transactions with Companies controlled by Directors/ Relatives | 172.79 | 118.87 |
| Salary Paid | 27.09 | 25.38 |
| Payment for ESOP | 1.92 | 2.42 |
| Sitting Fee to Director | n.95 | n.97 |
| Purchase of Building | fO.OO | 80.00 |
| Total | 272.83 | 410.91 |
Financial risk management
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companys receivables from customers.
The Companys exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and Companys historical experience for customers.
1. The company has not made any provision on expected credit loss on trade receivables and other financials assets, based on the management estimates.
2. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
The Companys treasury department within the Finance Department is responsible for liquidity and funding. In addition policies and procedures relating to such risks are overseen by the management.
The table below sets out an analysis of working capital and current ratio as at March 31,2026 and March 31,2026. The table below sets out exposure to financial liabilities based on the contractual maturity as at the reporting date:
| Particulars | As at March 31, |
|
| In Rs. MM | 2026 | 2025 |
| Total Current Assets (A) | Rs.11,714.72 | n 1,405.19 |
| Total Current Liabilities (B) | Rs.6,573.37 | Rs.3,507.02 |
| Working Capital (A-B) | Rs.5,141.35 | Rs.7,898.17 |
| Current Ratio | 1.78 | 3.25 |
| In T MM | ||||
| As at March 31, | Carrying value | < than 1 | > than 1 | |
| 2026 | Year | Year | ||
| Borrowings | T4,416.62 T4,416.62 |
- | T4, 416.62 | |
| Trade payables | T1,969.38 T1,969.38 |
- | T1,969.38 | |
| Lease Liabilities | T162.74 | T20.34 | T142.41 | T162.74 |
| Other liabilities | T80.44 | T80.44 | - | T80.44 |
| As at March 31, 2025 | ||||
| Borrowings | T1,825.29 T1,825.29 |
- | T1,825.29 | |
| Trade payables Lease Liabilities | T1,275.68 T1,275.68 T173.41 T25.32 |
T148.09 | T1,275.68 T173.41 | |
| Other liabilities | T52.68 | T52.68 | - | T52.68 |
Market Risk
Market risk is the risk that changes with market prices - such as foreign exchange rates and interest rates, will affect the Companys income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Foreign Exchange Rate Risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate.
Company transacts business in its functional currency (INR) and in other foreign currencies. The Companys exposure to the risk of changes in foreign exchange rates relates primarily to the Companys operating activities, where revenue or expense is denominated in a foreign currency.
The table below sets out an analysis of unhedged foreign currency exposure:
| For the year ended March 31,2026 | For the year ended March 31,2025 | |||
| Particulars | Foreign currency (in MM) | Rupees (in MM) | Foreign currency (in MM) | Rupees (in MM) |
| (A) Financial Assets | ||||
| Trade Receivables | $24.06 | T2,277.08 | $27.69 | T2,369.75 |
| Balance with banks - EEFC | $0.54 | ^51.51 | $0.89 | T76.12 |
| Trade Receivables | €0.55 | T60.04 | - | - |
| (B) Financial Liabilities | ||||
| Trade Payables | $0.67 | T63.82 | $1.87 | T160.44 |
| Borrowings | $0.53 | T49.69 | $4.05 | T346.20 |
| (C) Currency wise net exposure | ||||
| Financial | ||||
| Assets - Financial | $23.96 | T2,275.12 | $22.66T | 1,938.61 |
| Liabilities | ||||
| Sensitivity Analysis | ||||
| As at March 31, | ||
| Particulars (INR in MM) | 2026 | 2025 |
| Impact on profit/equity (1 % | T22.50 | T19.39 |
| strengthening) - (US $) | ||
| Impact on profit/equity (1 % strengthening) - (Euro) | TO.60 | |
| Impact on profit/equity (1 % weakening) - US $ | -T22.15 | -T19.39 |
| Impact on profit/equity (1 % weakening) - (Euro) | -TO.60 |
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companys exposure to the risk of changes in market interest rates relates primarily to the Companys debt obligations with floating interest rates. The Company manages its interest rates by selecting appropriate type of borrowings and by negotiation with the bankers.
The exposure of the borrowings (long-term and short- term) to interest rate changes at the end of the reporting period are as follows:
| As at March 31, | ||
| Particulars (INR in MM) | 2026 | 2025 |
| Variable rate borrowings | Rs.4,416.62 | Rs.1,825.29 |
| Fixed rate borrowings | fO.OO | fO.OO |
| Total borrowings | Rs.4,416.62 | Rs.1,825.29 |
Sensitivity Analysis
| Impact on Profit before tax/pre-tax equity | ||
| As at March 31, | ||
| Particulars (INR in MM) | 2026 | 2025 |
| Increase by 50 basis points | - Rs.22.08 | - Rs.9.13 |
| Decrease by 50 basis points | Rs.22.08 | Rs.9.13 |
Capital management
The Companys capital comprises equity share capital, surplus in the statement of profit and loss and other equity attributable to equity holders.
The Companys objectives when managing capital are to :
1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns to shareholders and benefits for other stakeholders, and
2. maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital using debt-equity ratio, which is net debt divided by total equity.
These ratios are illustrated below:
The financial indebtedness of the Company as on March 31,2026 and March 31,2025 are as depicted in the table below:
| As at March 31, | ||
| Particulars (INR in MM) | 2026 | 2025 |
| Total liabilities | Rs.7,455.38 | Rs.4,183.33 |
| Less: cash and cash equivalents and bank balances | Rs.56.63 | Rs.2,385.26 |
| Net Debt | Rs.7,398.75 | Rs.1,798.07 |
| Total equity | Rs.24,558.88 | Rs.22,258.86 |
| Net Debt-equity ratio | 0.30 | 0.08 |
Financial indebtedness
The financial indebtedness of the Company as on March 31, 2025 and March 31,2024 are as depicted in the table below:
As at March 31, |
||
| Particulars (INR in MM) Short Term | 2026 | 2025 |
| Secured Borrowings, comprising of | Rs.4,416.62 | Rs.1,825.29 |
| Loans repayable on demand | Rs.4,416.62 | Rs.1,825.29 |
| Long Term | 0.00 | 0.00 |
| Total indebtedness | 4,416.62 | 1,825.29 |
Significant Economic Changes
Other than as described above, to the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations.
Unusual or Infrequent Events of Transactions None
Reservations, Qualifications and Adverse Remarks Included in Financial Statements There have been no reservations or qualifications or adverse remarks of our Statutory Auditors in the last three fiscal Years.
Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements, derivative instruments or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.
Issue of Equity Shares for consideration other than cash
Except for the bonus allotment made on November 17, 2021, our Company has not issued any Equity Shares, for consideration other than cash.
Split/Consolidation of Equity Shares Our Company has not undertaken a split or consolidation of the Equity Shares.
Exemption from complying with any provisions of securities laws, if any, granted by SEBI Our Company has not made any application under Regulation 300(1)(c) of the SEBI ICDR Regulations for seeking exemption from complying with any provisions of securities laws.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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