Tatva Chintan Pharma Chem Ltd Management Discussions

Economic Overview

Global Economy

The world economy demonstrated resilience throughout 2025, effectively navigating evolving trade regulations and divergent regional performances. Substantial investments in technology mitigated the effects of emerging tariffs and shifting government policies, while global inflation moderated to a manageable 4.1%, with numerous countries achieving outcomes below initial market expectations.

Global geopolitical conditions remained uncertain during the year, with rising tensions in West Asia creating additional pressure on global trade, energy markets, and supply chains. The situation in the region disrupted key trade routes and contributed to volatility in commodity and crude oil prices, increasing concerns around inflation and global economic stability. At the same time, the Russia-Ukraine conflict continued to affect energy supply, logistics networks, and commodity availability across international markets. Together, these developments led to fluctuations across global markets and created operational challenges for businesses dependent on imported inputs and cross-border supply chains. Companies across industries faced higher procurement and freight costs, delays in cargo movement, and uncertainty in the availability of critical materials and services, resulting in a more cautious business environment in several regions.

Household consumption remained resilient across several major economies in 2025, supported by improving financial conditions and stable labour markets. Economic activity was supported by robust technology-related investment and continued wage growth in several major economies. Consumers in the United States and emerging Asian nations increased spending on goods and services amid improving financial conditions, which helped cushion pressures from tariff implementations. Global job markets were stable in 2025 despite trade disruptions and policy uncertainty. Technology and services sectors added jobs steadily while manufacturing faced headwinds from trade disruptions and weaker industrial demand. Reliable employment levels supported rising household incomes and broader economic strength.

The services sector provided crucial support to global growth in 2025, expanding steadily even as trade in physical goods faced volatility. Finance, technology services and tourism delivered solid performance, offsetting manufacturing weakness, particularly in Europe and Asia. This steady services expansion played a key role in keeping overall economic activity on track.

World GDP expanded by 3.4% in 2025, showing varied speeds across regions. Advanced economies achieved 1.9% growth, with the United States reaching 2.1% through technology investments and policy backing. The euro area recorded 1.4% while Japan managed 1.2%. Emerging markets outperformed with 4.4% overall growth led by Indias strong 7.7% expansion and Chinas steady 5.0% rise.

World trade volumes accelerated to 4.1% growth in 2025, surpassing the previous years 3.6% expansion. A US-China trade truce reduced tariffs and lifted restrictions on electronics components and critical minerals, alleviating prior tensions that had constrained global supply chains.

The United States further eased select agricultural tariffs, restoring average rates to levels prevailing before recent escalations. These developments facilitated smoother cross-border commerce, particularly benefiting technology and commodity-dependent sectors across major economies.

Policy uncertainty moderated from late 2025 peaks yet remained elevated relative to 2024 baselines. Financial markets remained supportive despite occasional swings, with high-growth technology shares outperforming broader indices. Strong technology exports from Asia kept global trade flows steady.

Outlook

The global economy is projected to moderate slightly to 3.1% in 2026, then rise slightly to 3.2% in 2027. Technology-driven productivity gains, particularly from artificial intelligence integration across industry and healthcare sectors, propel this trajectory while counterbalancing persistent trade tensions and evolving political dynamics.

Advanced economies anticipate 1.9% growth in 2026. The United States leads with 2.3% expansion, bolstered by tax incentives under the One Big Beautiful Bill Act and market recovery following the brief 2025 federal shutdown, creating favourable conditions for private investment and consumer spending. The euro area dips slightly to 1.1% growth as a reliable global stabiliser, while Japan adjusts to 0.7% following recent policy recalibrations.

Emerging markets are projected to have a slight fall to 3.9%. China is projected to grow by 4.4% in 2026, supported by domestic stimulus measures and improving trade relations with the United States. India remained among the fastest-growing major economies, strengthening its position as a global manufacturing and digital transformation hub.

Global headline inflation is expected to ease from 4.4% in 2026 to 3.7% in 2027, with advanced economies moving gradually towards target levels. In response, central banks have adopted measured policy actions, including gradual rate cuts in the US and UK, stable rates in the euro area, and modest hikes in Japan. Meanwhile, global trade growth is expected to moderate to 2.6% in 2026 amid tariff-related adjustments, though continued strength in technology exports is likely to provide some support.

Indian Economy

The Indian economy demonstrated resilience during 2025-26 despite ongoing global trade uncertainties and market volatility. According to the MoSPIs Provisional Estimates (PE), real GDP and Gross Value Added (GVA) are projected to grow by 7.7% and 7.9%, respectively, reflecting the strength of the countrys domestic demand-driven growth model.

Economic activity was supported by healthy agricultural output which strengthened rural incomes and consumption, while urban demand remained resilient on the back of stable employment conditions and easing inflationary pressures. Strong domestic consumption, sustained investment activity and continued policy support helped maintain growth momentum across key sectors of the economy.

India continued to remain among the worlds fastest-growing major economies during FY 2025-26, supported by resilient domestic demand, robust investment activity and ongoing structural reforms. With a nominal GDP of approximately USD 4.15 Trillion in 2026, the country remains one of the largest economies globally. While recent estimates indicate a moderation in its global ranking from 4^th to 6^th position, Indias strong economic fundamentals, expanding domestic market, and sustained growth trajectory continue to reinforce its significance within the global economy.

Government spending on infrastructure like roads, railways, and defence will pick up again and keep going strong, helping industries grow. Private companies will also start investing more in manufacturing, real estate, and factory expansions. Manufacturing will keep growing steadily, though not as fast as before, showing reliable demand from businesses. Data centers and digital investments will become major new growth areas. Urban growth and new infrastructure projects will continue boosting construction and related industries. The power sector looks solid with nearly 475 GW capacity and almost no shortages (under 1%), so demand will shift to backup and standby power systems that ensure reliability.

Private consumption continues driving growth, supported by declining inflation and rising real incomes that enhance household purchasing power. Public capital expenditure of Rs.12.2 Lakh Crores, as allocated in the Union Budget 2026-27, catalyzes infrastructure development while stimulating manufacturing, construction, and energy sectors. Government initiatives and visions like Viksit Bharat 2047 further promote self-reliance and capacity enhancement amid global pressures.

Outlook

The outlook for the Indian economy remains positive and stable, with real GDP growth projected between 6.8% and 7.2% for FY 2026

27. This trajectory underscores Indias capacity to sustain dynamic momentum amid prevailing global uncertainties.

Sustained government infrastructure expenditure, alongside steadily rising private sector investments, will anchor this expansion, complemented by a strengthening manufacturing foundation. The services sector anticipates continued consistent performance, reinforcing structural economic resilience.

Reinforced by macroeconomic stability and consistent policy frameworks, India stands well-positioned to navigate external challenges. This approach ensures inclusive and sustainable longterm economic progress across diverse societal segments.

Industry Overview

Global Chemical Industry

The global chemical industry, deeply embedded in daily life and vital to sectors spanning agriculture to automotive, navigated a challenging operating landscape during 2025. Market size expanded to USD 5,332.35 Billion in 2025, with projections reaching USD 7,585.67 Billion by 2030 at a compound annual growth rate of 7.5%, reaffirming its pivotal role across automotive, construction, agriculture, and consumer goods end-user industries. Growth momentum remained restrained amid weak demand patterns, regional excess capacity pressures, and persistent macroeconomic uncertainties.

Demand recovery displayed significant regional disparities, with developed markets like Europe facing intensified cost pressures alongside subdued industrial activity. Emerging Asian economies provided incremental growth support during this period. Geopolitical tensions in the Middle East disrupted critical energy markets and trade routes, elevating input costs while creating supply chain bottlenecks throughout the chemical value chain. Elevated energy expenses, logistical constraints, and substantial overcapacity, particularly concentrated in China, continued exerting downward pressure on pricing structures and profit margins.

Chemical companies actively addressed these headwinds through comprehensive cost optimization initiatives, strategic portfolio diversification, supply chain realignment efforts, and heightened focus on innovation alongside value-added product development.

Entering 2026, chemical demand anticipates sustained softness driven by potential downcycles across key end-markets, including construction, automotive, and consumer goods, though semiconductor applications may offer counterbalancing growth opportunities. Overcapacity conditions in polyethylene, polypropylene, and other olefins alongside aromatics segments persist without resolution. Absent renewed market stability and certainty, end-market consumption will likely remain subdued while complex operating conditions continue to challenge industry profitability.

The industry outlook for 2026 weakens slightly relative to 2025, with growth forecasts moderating to 2%. United States production volumes anticipate a contraction of 0.2% following two years of subdued expansion. Chemical companies increasingly prioritise profitability, operational resilience, and long-term transformation strategies while aligning around five critical industry trends to navigate prevailing challenges and position for future success.

Global Specialty Chemicals

The global specialty chemicals industry, defined by high-performance and value-added products serving critical end-use sectors including electronics, automotive, agriculture, and healthcare, maintains its essential position within modern industrial ecosystems. The market demonstrated strong expansion from USD 791.27 Billion in 2025 to USD 834.97 Billion in 2026, achieving a 5.5% CAGR. This trajectory receives sustained support from industrial diversification, construction activity, textile processing requirements, agrochemical applications, and ongoing specialty polymer development initiatives.

Ongoing geopolitical tensions in the Middle East have contributed to disruptions in feedstock availability and logistics networks, generating volatile input costs alongside supply chain uncertainties throughout the global speciwalty chemicals sector. Amid macroeconomic fluctuations and uneven end-market demand patterns, companies increasingly prioritize portfolio diversification, comprehensive cost optimization measures, and innovation-driven growth strategies to maintain competitive positioning.

Looking forward, the specialty chemicals market anticipates strong expansion, projected to reach USD 1,018.16 Billion by 2030 at a 5.1% compound annual growth rate. Primary growth catalysts include surging demand for electric vehicle materials, semiconductor manufacturing requirements, water treatment solutions, bio-based chemical innovations, personal care applications, and advanced construction chemicals. Concurrently, escalating demand for sustainable and environmentally responsible solutions continues to reshape industry dynamics. Sustainable specialty chemicals anticipate accelerated growth relative to the broader market, propelled by stringent environmental regulations and widespread adoption of eco-friendly alternatives.

(Source: The Business Research Company)

Key Industry Trends in the Global Market • Demand is shifting towards specialties and value-added products: The global chemical industry continues to face a prolonged downcycle, weak demand and overcapacity, but growth is increasingly being supported by specialty chemicals, operational efficiency, and portfolio realignment rather than broad-based volume expansion. Asia remains a major demand driver, while producers across regions are focusing on higher value segments and cost discipline to protect margins.

• End market demand remains uneven, but mobility-related chemistry is evolving: Demand from automotive and construction remains mixed, yet the mobility ecosystem is undergoing recalibration as vehicle electrification and hybridisation strategies are rebalanced across markets. This is creating opportunities for specialty chemical applications in lightweight materials, thermal management, coatings, adhesives, battery-related inputs, and performance additives across both conventional and electrified platforms.

• Stricter emission standards are supporting advanced chemical solutions: Global emission tightening, including Euro 7, is expected to increase demand for advanced catalytic materials, emission control chemistries, and high-performance formulations. As automakers respond to these standards, suppliers of specialty chemicals are likely to benefit from rising requirements for cleaner mobility technologies, longer-lasting components, and lower-emission product formulations.

• Supply chain resilience and regionalisation remain important themes: Chemical companies are continuing to recalibrate sourcing and manufacturing footprints in response to trade disruptions, cost pressures, and geopolitical uncertainty. This is encouraging localization, supplier diversification, and greater resilience in manufacturing and logistics networks, especially in Asia where capacity additions remain significant.

• Digitalisation and AI are becoming core operating levers: The industry is increasingly using digital tools, AI, and analytics to improve cost control, process efficiency, and decision-making. These technologies are being used to enhance productivity, strengthen planning, and support more agile responses to volatility in demand and supply conditions specialty chemicals, agrochemicals, petrochemicals, polymers and fertilisers, reflecting its broad industrial significance and extensive downstream linkages.

India has continued to strengthen its position as a preferred global manufacturing and sourcing destination for chemicals, supported by its strong process chemistry capabilities, skilled technical workforce, competitive manufacturing base and expanding domestic demand. The country has established a strong presence in specialty chemicals, agrochemicals, dyes and dye intermediates, while also emerging as a key supplier to global value chains as manufacturers increasingly diversify their sourcing strategies.

The industry also plays an important role in Indias external trade. During FY2024-25, Indias chemical exports stood at USD 21.1 Billion, supported by sustained demand for organic and inorganic chemicals, agrochemicals, dyes, specialty chemicals and other value-added products across international markets. Continued policy support, expanding manufacturing capabilities and increasing integration with global supply chains are expected to reinforce the sectors long-term competitiveness.

Indian Speciality Chemicals

The Indian specialty chemicals industry experienced mixed performance throughout FY 2025-26, with demand conditions gradually stabilizing following an extended period of volatility. Pricing pressures persisted across certain segments due to sustained inflows of competitively priced imports, particularly originating from China, exerting margin compression within select product categories. Domestic demand recovery progressed unevenly, though agrochemical segments demonstrated gradual improvement supported by normalizing inventory levels alongside consistent consumption patterns. Export markets displayed early recovery signals, tempered by moderate global demand conditions.

Despite prevailing challenges, the sector maintains a positive long-term outlook. Demand for specialty chemicals is also being supported by structural shifts in the automotive sector, including the recalibration of vehicle electrification and hybridisation strategies across key markets. At the same time, stricter global emission standards such as Euro 7 are expected to drive higher adoption of advanced catalytic materials, emission control chemistries, and related specialty inputs.

Drivers for Market Growth

The India Chemical Products Market presents significant growth opportunities due to several powerful factors:

Accelerating Industrialisation: The rapid push towards industrialisation across key sectors, including agriculture, pharmaceuticals, and automobiles, is stimulating demand for specialty chemicals essential in manufacturing processes and product formulations.

Expansion of End-User Industries: The continuously increasing number of end-user industries, particularly in healthcare, personal care, and construction, is driving specialty chemical growth as they are widely used in various forms like formulations, coatings, and additives.

Technological Advancements: Constant technological developments are resulting in new specialty chemical products that offer improved performance, functionality, and environmental sustainability, thereby strongly encouraging market expansion.

Supportive Government Initiatives: Government programmes like Make in India and Atmanirbhar Bharat are successfully pushing local manufacturing and lessening the nations reliance on imports, which is expected to stimulate both the production and consumption of specialty chemicals domestically.

Government Policy Supporting the Chemical Industry

The Indian Government actively supports the chemical sector through several major national initiatives, focused on boosting domestic manufacturing, R&D, and competitiveness.

Policies prioritise growth in R&D capacity and manufacturing under the Make in India or Atmanirbhar Abhiyan initiatives, which include reducing basic customs duties on several products.

• Sustainability and compliance are shaping product development: Environmental compliance, lower emission requirements, and customer preference for sustainable solutions are influencing product innovation across the chemical value chain. This is pushing companies to develop cleaner, more efficient, and more application-specific offerings, particularly in sectors linked to mobility, industrial applications, and advanced manufacturing.

Indian Chemical Industry

The Indian chemical industry is one of the largest and most diversified manufacturing sectors in the country, serving as a critical supplier to industries such as pharmaceuticals, agrochemicals, automotive, construction, textiles, consumer goods and electronics. India is the sixth-largest producer of chemicals globally and the third-largest in Asia, with the sector contributing approximately 7% to the countrys Gross Domestic Product (GDP). The industry encompasses more than 80,000 commercial products, spanning bulk chemicals,

Corporate Overview •Statutory Reports •Financial Statements *

The 2034 vision for chemicals and petrochemicals aims to improve domestic production, reduce imports, and attract new investment.

The PLI scheme for Advanced Chemistry Cell (ACC) Batteries targets establishing 50 Giga Watt Hour (GWh) capacity manufacturing over five years, incentivising competitive unit set-up with subsidies tied to value addition.

Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs) are established clusters offering high-class infrastructure, targeting Rs.20 Trillion (USD 284 Billion) by 2035.

Four PCPIRs have been set up in Dahej (Gujarat), Visakhapatnam- Kakinada (Andhra Pradesh), Paradeep (Odisha), and Cuddalore and Nagapattinam (Tamil Nadu), with an expected realisation cost of Rs.7.63 Trillion (USD 92.01 Billion).

The National Policy on Petrochemicals promotes research and sustainable development by establishing Center(s) of Excellence (COE) in educational and research institutions (e.g., in Pune, Chennai, Delhi) to focus on improving technology and developing biopolymers.

Through the Plastic Parks Scheme, the Government is promoting cluster-based development of the plastics processing industry by supporting the creation of common infrastructure and enabling facilities.

The Chemicals Promotion Development Scheme (CPDS) provides financial support for sector promotion through conferences, studies, and analyses of critical industry issues.

The Central Institute of Plastic Engineering and Technology (CIPET) offers wide-ranging skill development, technology support, academic, and research programmes in Plastics Engineering and Technology.

Category Review

Phase Transfer Catalysts (PTC) Market

Phase Transfer Catalysts (PTC) enable the movement of reactants between immiscible phases that do not naturally combine, playing a critical role in organic chemistry applications. These catalysts significantly accelerate reaction rates while enhancing product yields, particularly within processes that remain inefficient or challenging absent catalytic assistance. PTCs reduce reliance on expensive or toxic solvents needed to dissolve all reactants into a single homogeneous phase, concurrently reducing consumption of supplementary costly raw materials and substantially minimising overall waste generation throughout production cycles.

Market Overview and Core Benefits

Market Size & Growth: The global PTC market size is estimated at USD 1.13 Billion in 2025. The market is estimated at USD 1.19 Billion in 2026 to reach USD 1.58 Billion by 2031, showing a CAGR of 5.71% during the forecast period (2026-2031).

Key Demand Driving Industries

Tatva Chintans Market Position

Performance and Outlook

Structure Directing Agents (SDA) Market

Market Overview and Core Benefits

Key Demand Driving Industries

• Expanding use in green chemistry and sustainable synthesis:

Tatva Chintans Market Position

Performance and Outlook

Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC)

Market Overview and Core Benefits

Key Demand Driving Industries

• Cost competitiveness and supply reliability: Indias relatively low production costs, along with its ability to maintain consistent quality and timely delivery, further strengthen its position. These advantages make the country a preferred destination for global customers seeking reliable supply chains.

Tatva Chintans Market Position

• Industry Leadership: Tatva Chintan is a leading player in the speciality chemicals segment, with its technical expertise and innovative processes creating strong entry barriers for competitors.

• Key Product Dominance: In India, Tatva Chintan is the top producer of Glymes and ranks as the third-largest globally.

• Sustainability Commitment: The Company has collaborated with EcoVadis and Together for Sustainability, demonstrating a clear commitment to sustainability.

• Strategic Advantage: The production of glymes and other speciality intermediates, alongside ISO-certified sites and expanded reach, positions the Company to benefit from government incentives in the agrochemicals and pharmaceutical industries, solidifying its market leadership and growth potential.

Performance & Outlook

PASC generated revenue of Rs.1,622.55 Million in FY26, registering a healthy year-on-year growth of 26%. The growth was driven by increasing contributions from recently commercialized products. Going forward, the segment is expected to maintain a sustained growth trajectory, supported by the continued scale-up of these products and the addition of new commercial opportunities.

Electrolyte Salts and Solutions (ESS) Market

Electrolyte Salt Solutions (ESS) play a critical role in the performance and efficiency of supercapacitors and other energy storage devices. These solutions function as the ion-conducting medium, enabling the transport of charge between electrodes during charge and discharge cycles. The precise choice and design of these electrolytes directly influence key parameters such as energy density, cycle life, and operating voltage.

Market Overview and Core Benefits

• Key Function: In supercapacitors, which store energy via electrostatic charge, the electrolyte dictates the ionic conductivity and electrochemical stability of the system.

• Key Process Benefits: Supercapacitors, supported by these electrolytes, can potentially replace or complement traditional batteries due to their fast-charging ability, superior performance at low temperatures, long service/cycle life, and high reliability. Their use also greatly enhances battery runtime and operational life.

• Demand Drivers: Demand is driven by:

• The use of electrolyte salts in conjunction with unconventional batteries In renewable energy.

• The deployment of energy storage devices in solar energy storage systems to store electricity during peak generation.

• The utilization of supercapacitors in in automobiles to meet the sudden burst of energy required during startup and acceleration.

• Applications in various electronic devices requiring the storage or discharge of high bursts of energy.

Key Demand Driving Industries

• Automotive: Many manufacturers are exploring

supercapacitors as alternative energy storage options for EVs. The National Electric Mobility Mission Plan (NEMMP) 2020 projects over 40% growth for EVs, with the Indian EV market expected to reach 10 Million units by 2030.

• Transport and Infrastructure: Demand is present in the large Indian Railways network and rapid metro expansion, focused on safety, efficiency, energy conservation, and freight wagon tracking.

• Renewable Energy: India is ranked 4^th globally in renewable energy installed capacity. The national target aims for 500 GW of non-fossil fuel-based energy by 2030 (COP26), creating high demand for efficient storage.

• Consumer Electronics: Strong potential exists for supercapacitors in fast-charging power banks and other high- power-density applications, with optimistic predictions of 20% penetration in the next 2-3 years.

• Grid Balancing: ESS is essential for smart cities, enabling a realtime response to market dynamics; high demand is expected alongside the Indian governments smart cities initiative.

Tatva Chintans Market Position

• Industry Leadership: Tatva Chintan is a leading player in the battery electrolyte segment, leveraging its expertise in organic battery electrolytes to achieve impressive growth.

• Product Dominance: The Companys technical proficiency and expertise have established it as the largest producer of electrolyte salts for supercapacitor batteries in India.

• Applications: Our electrolyte salts and solutions are used in supercapacitor batteries deployed across automobiles, EVs, electronics, and hybrid energy storage devices.

• Competitive Edge: Technical know-how, developed through innovative processes and complex chemistries, creates a significant entry barrier for new competitors.

• Sustainability Commitment: The Companys focus on sustainable supply chain solutions is verified by superior sustainability performance, as audited by EcoVadis. Furthermore, its TfS partnership underscores its commitment to maintaining sustainable supply chains, solidifying its market position and reputation.

Performance and Outlook

ESS reported revenue of Rs.164.93 Million in FY26, reflecting a robust 174% year-on-year growth. The segment is expected to maintain its growth momentum in the coming years, driven by sustained customer offtake and continued demand for its products.

Company Overview

Tatva Chintan Pharma Chem Limited (referred to as Tatva Chintan or The Company) is a leading Indian specialty chemical company that is rapidly growing and holds a strong global presence in several niche chemical segments. Established in 1996 in Vadodara, Gujarat, the Company has quickly become a key player in the specialty chemicals sector. The Company is further recognised as the largest producer of glymes in India and stands among the foremost global producers.

The Companys manufacturing operations are strategically located in Ankleshwar and Dahej, Gujarat. These locations offer efficient logistics and access to major shipping ports, supporting our global export activities. The Company possess a dedicated, state-of-the- art Research & Development (R&D) facility in Vadodara. To service international clients directly, Tatva Chintan maintains foreign subsidiaries and warehousing facilities in both the USA (Tatva Chintan USA, Inc.) and Europe (Tatva Chintan Europe B.V.).

Tatva Chintan offers a diverse portfolio of around 250 specialty chemicals, catering to demanding industries such as automotive, electronics, pharmaceuticals, and agrochemicals. We hold leading positions in key global segments:

• Structure Directing Agents (SDA): Tatva Chintan is recognised as the worlds second-largest manufacturer of SDAs used for zeolites. We are also the exclusive commercial supplier of these chemicals in India.

Manufacturing Capabilities

• Phase Transfer Catalysts (PTC): The Company is a leading global producer of a comprehensive range of PTCs.

• Electrolyte Salts and Solutions (ESS): Tatva Chintan is Indias largest producer of Electrolyte Salts used in advanced supercapacitor batteries.

• Pharmaceutical & Agrochemical Intermediates (PASC): The

Company manufactures essential intermediates and specialty chemicals for these critical sectors.

Our strategic focus is firmly rooted in innovation, quality, and sustainable practices. By leveraging our niche product portfolio, we aim to be a global leader in the specialty chemical sector. The Company is well-positioned to benefit from emerging trends, particularly the global battery boom, thanks to our strong position in the electrolyte salts market. This continuous dedication ensures sustained growth and value creation for all stakeholders.

Manufacturing and Operational Excellence

Tatva Chintan operates two state-of-the-art manufacturing facilities located in Dahej and Ankleshwar, Gujarat. These plants together provide a strong installed capacity of 791 KL across 39 distinct assembly lines. The proximity of both facilities to the Hazira port offers significant logistical advantages. As a prominent manufacturer of integrated speciality chemicals, the Company utilises its superior R&D capabilities and focuses on high operational efficiencies to drive growth. The Company has a history of consistently expanding its production capacities while simultaneously optimising capacity utilisation. Crucially, the facilities are designed with a high degree of flexibility. This allows the Company to manufacture a diverse range of products and quickly modify or customise its portfolio to meet the evolving needs of its global customers.

Key Financial Ratios

Core Strengths

The foundation of Tatva Chintans sustained growth and market leadership rests on these key strengths:

• Global Market Position: Recognised as a foremost manufacturer of both Structure Directing Agents (SDA) and Phase Transfer Catalysts (PTC).

• Customer Preference: Established as a preferred supplier for Pharmaceutical and Agrochemical Intermediates and Specialty Chemicals (PASC).

• Quality Assurance: A proven ability to deliver highly consistent product quality to global customers.

• Risk Mitigation: Operationally sound due to a highly effective and de-risked business model.

• International Reach: Maintains a significant global footprint supported by a large and diverse customer base.

• Product Breadth: Offers a wide and comprehensive product portfolio across multiple chemical categories.

• Flexible Operations: Possesses integrated manufacturing facilities designed for fungibility and adaptability.

• Leadership Foundation: Benefit from the established expertise and proven track record of the Companys promoters.

• Innovation Engine: Strong growth driven by robust, in-house Research and Development capabilities.

Financial Highlights/Review (Consolidated)

Revenue

In FY 2025-26, Tatva Chintans total revenue stood at Rs.5,094.07 Million, compared to Rs.3,850.29 Million in the previous financial year, reflecting a growth of 32.30%.

Revenue from Operations

Revenue from operations in FY 2025-26 stood at Rs.5,058.58 Million, higher by 32.18% from Rs.3,827.14 Million in FY 2024-25. Export revenues were Rs.3,817.77 Million in FY 2025-26, compared to Rs.2,354.74 Million in the previous year. Domestic sales, on the other hand, decreased from Rs.1,444.27 Million in FY 2024-25 to Rs.1,188.43 Million in FY 2025-26. Exports accounted for approximately 75.47% of revenue in FY 2025-26, as against 61.53% in FY 2024-25.

Sales of SDAs stood at Rs.2,045.27 Million in FY 2025-26, compared to Rs.1,197.21 Million in FY 2024-25. Sales of PASCs were Rs.1,622.55 Million in FY 2025-26, compared to Rs.1,286.61 Million in FY 2024-25. The SDA segment contributed 40.43% of revenue in FY 2025-26, as against 31.28% of revenue in FY 2024-25, while the PASC segment contributed 32.11% in FY 2025-26, compared to 33.62% in FY 2024-25.

PTC sales stood at Rs.1,173.45 Million in FY 2025-26, compared to Rs.1,254.98 Million in FY 2024-25, contributing 23.20% and 32.79% of sales, respectively. Sales of electrolyte salts and solution for energy storage device and supercapacitor batteries were Rs.164.93 Million in FY 2025-26, compared to Rs.60.21 Million in FY 2024-25, contributing 3.26% and 1.57% of total revenue from operations, respectively.

Other Income

Other income stood at Rs.35.49 Million in FY 2025-26, compared to Rs.23.15 Million in FY 2024-25, reflecting a growth of 53.30%.

Expenses

The Companys total expenses were Rs.4,523.98 Million in FY 2025-26, compared to Rs.3,774.50 Million in FY 2024-25, marking an increase of 19.86%.

Cost of Materials Consumed

The Companys cost of materials consumed was Rs.2,627.50 Million in FY 2025-26, compared to Rs. 1,737.64 Million in FY 2024-25.

Purchases of Stock-in-Trade

Purchases of stock-in-trade declined during the year and stood at Rs. 64.94 Million in FY 2025-26, compared to Rs. 29.80 Million in

FY 2024-25.

Changes in Inventories

Changes in inventories of work-in-progress and finished goods stood at Rs.(447.05) Million in FY 2025-26, compared to Rs.221.97 Million in FY 2024-25.

Employee Benefits Expense

Employee benefits expense increased to Rs.629.32 Million in FY 2025-26, from Rs.529.16 Million in FY 2024-25.

Finance Costs

Finance costs stood at Rs.28.51 Million in FY 2025-26, compared to Rs.12.90 Million in FY 2024-25.

Depreciation and Amortisation Expense

Depreciation and amortisation expense increased to Rs.368.47 Million in FY 2025-26, compared to Rs.276.59 Million in FY 2024-25. The net addition in fixed assets during the year was Rs.1,155.51 Million.

Other Expenses

Other expenses stood at Rs.1,252.29 Million in FY 2025-26, compared to Rs.966.44 Million in FY 2024-25.

Profit Before Tax

Tatva Chintan reported profit before tax of Rs.570.09 Million in FY 2025-26, compared to Rs.75.79 Million in FY 2024-25.

Tax Expenses

During FY 2025-26, the Companys total tax expenses amounted to Rs.149.55 Million, as against Rs.18.66 Million in FY 2024-25.

Profit After Tax

Profit after tax stood at Rs. 420.54 Million in FY 2025-26, compared to Rs.57.13 Million in FY 2024-25.

Total Comprehensive Income

During the year, Tatva Chintan recorded total comprehensive income of Rs.452.74 Million in FY 2025-26, compared to Rs.64.20 Million in

FY 2024-25.

Research and Development (R&D)

The Company places immense importance on Research and Development (R&D). This focus secures our standing as a top integrated specialty chemical manufacturer worldwide, not just within India.

Our dedicated R&D facility is situated in Vadodara. This site is officially certified by the Indian governments Department of Scientific and Industrial Research (DSIR). The center features the latest modern equipment and is managed by a highly skilled R&D team.

Tatva Chintan continuously enhanced our R&D abilities over time through strategic financial investments and the constant professional development of our scientists. This allows us to achieve two critical outcomes, which are to make processes more cost-effective and develop superior products for the market.

Competitive Strengths

Tatva Chintan Pharma Chem Limited leverages its leadership in niche specialty chemicals and its global operational scale to maintain a significant competitive edge. Our strategic focus on innovation and operational excellence, combined with natural industry barriers, positions us for profitable and sustained growth.

• Diversified & Niche Product Range: We offer a broad and specialised portfolio, including Structure Directing Agents (SDAs), Phase Transfer Catalysts (PTCs), electrolyte salts for energy storage devices and supercapacitor batteries, and various other specialty chemicals. This wide range reduces reliance on any single industry, serving sectors like automotive, pharma, and electronics, which ensures revenue stability.

• Dominance in Niche Markets: The Company is the largest and sole commercial manufacturer of SDAs for zeolites in India, and the second-largest globally. Operating in this specialised field benefits us due to high entry barriers, stemming from complex chemistry and stringent product approval processes.

• Global Export Footprint: Tatva Chintan exports products to over 30 countries, supported by established subsidiaries in the USA and Europe. Our ability to expand into diverse geographies, backed by technical expertise, significantly strengthens our global presence and diversifies revenue streams.

• Advanced Operations & Sustainability: We operate state-of-the-art manufacturing facilities that employ advanced technologies for high-quality, efficient production. Our commitment to green chemistry ensures environmentally sustainable production that meets global regulatory standards. Ongoing capital expenditure is strategically planned to boost production capacities and support future revenue growth.

• Strong Innovation Core: Our DSIR-approved R&D center in Vadodara is equipped with cutting-edge technology and staffed by a highly skilled team. Continuous R&D investment drives a robust pipeline of high-value products, enabling Tatva Chintan to capitalise on emerging market opportunities.

• Experienced Leadership & Strategy: The Company is guided by promoters and senior management who possess extensive industry experience and have built strong business relationships. This leadership drives strategic growth and ensures a strong foundation for the future.

Quality Control and Assurance

Tatva Chintan is committed to upholding the highest standards of quality control. This is backed by an advanced Quality Control (QC) laboratory fitted with state-of-the-art technology, enabling us to meet the most rigorous industry benchmarks.

The Company understands that any lapse in quality could severely damage its reputation for excellence. Therefore, a robust quality team has been established, comprising 91 skilled members in total. This group includes 28 dedicated to Quality Assurance (QA) and 63 focused on Quality Control (QC).

This capable team carefully manages stringent quality protocols at every step of the manufacturing process. Their oversight starts with pre-manufacturing inspections and continues right through to the initial assessment of raw materials and the final verification of packaging.

Tatva Chintans sustained dedication to achieving quality excellence is certified by its ISO 9001:2015 accreditation, which reinforces our position as a leading practitioner of quality management practices.

Information and Technology

IT has become vital for the Companys operations in recent years. Recognising the importance of a strong IT infrastructure, Tatva Chintan has integrated a comprehensive suite of IT solutions and Enterprise Resource Planning (ERP) software across its entire operation. Technology is seamlessly embedded into all stages of the manufacturing process.

IT systems manage key functions including customer order management, product dispatches, production planning, reporting, financial accounting, and raw material purchasing. Tatva Chintan remains dedicated to leveraging IT to drive operational efficiency, elevate customer service, and enable data-driven decision-making. The Company continues to invest strategically in technology to strengthen these core capabilities.

Health, Safety, and Environment (HSE)

Tatva Chintan prioritizes its duty to environmental protection as a specialty chemical manufacturer. This commitment is delivered through specific programmes aimed at reducing emissions, optimising energy usage, minimising waste output, and boosting overall operational sustainability.

The Ankleshwar facility operates with a Zero Liquid Discharge (ZLD) capability, which strongly supports water conservation efforts. Our environmental focus is officially validated by the ISO 14001:2015 accreditation. Furthermore, the Companys engagement with EcoVadis and the Together for Sustainability (TfS) initiative showcases our dedication to promoting sustainable practices throughout our workforce and amongst our supply chain partners.

The health and safety of our employees are paramount concerns for Tatva Chintan. We address this through thorough safety training programmes, regular emergency response drills, and the provision of advanced safety systems and equipment. Comprehensive on- the-job training protocols are also in place. These actions ensure a protective working environment that safeguards our personnel while maintaining operational excellence.

Human Resources

Tatva Chintan places significant value on its employees, focusing on creating a workplace that actively supports both company growth and professional development.

The Human Resources team focuses on employee-centric policies designed to achieve several critical goals, including attracting skilled talent, providing comprehensive training, maintaining employee engagement, and ensuring strong retention rates. To strengthen talent management, capability development, and employee performance, Tatva Chintan regularly implements targeted programmes and initiatives.

As of 31 March 2026, the Company employed a total of 793 permanent employees/workers and 304 non-permanent employees/workers. This staffing level reflects the Companys ongoing investment in building a skilled and highly capable team.

Risk and Concerns

Outlook

Looking ahead, Tatva Chintan is positioned for accelerated commercial momentum in FY 2026-27, driven by high-capacity utilisation, operational execution, and expanding market opportunities. Capitalising on the groundwork laid in previous cycles, a primary driver of our near-term performance will be the volume ramp-up of advanced agrochemical and pharmaceutical intermediates successfully commercialised last year. Parallelly, our Electrolyte Salt and Solutions are transitioning toward a highly predictable growth phase, with increased and regular product uptake set to materially expand our revenue in this segment.

Internal Control Systems & Their Adequacy

Tatva Chintan utilises a robust internal control system designed to ensure the reliability of all financial information. This system achieves accuracy by guaranteeing the timely and accurate recording of every financial, commercial, and operational transaction. Furthermore, it is structured to safeguard Companys assets from any unauthorised use or disposition and ensures strict adherence to all applicable regulations. The Companys Audit Committee is responsible for conducting periodic reviews to assess the adequacy and effectiveness of these internal controls, reporting key findings to the Board so that necessary corrective actions can be taken.

On the global regulatory front, the phased implementation of Euro 7 emission standards acts as a structural tailwind, significantly amplifying long-term Structure Directing Agent (SDA) demand across key automotive and industrial markets.

To seamlessly absorb these expanding order pipeline, we are actively anchoring our future infrastructure through strategic capital expenditure (Capex) focused on our Dahej GIDC facility. Backed by structured capacity addition and a diversified product footprint, we remain resilient against logistical or macroeconomic hurdles, steering the company toward scalable and sustainable stakeholder returns.

Cautionary Statement

Any statements contained within this report that describe the Companys objectives, projections, estimates, and expectations may be considered forward-looking statements under applicable laws and regulations, and therefore inherently involve risks and uncertainties.

These statements reflect the current intentions of the management and the efforts being implemented by them to achieve specific goals. However, actual results may differ materially from those either expressed or implied in these statements, depending entirely on prevailing circumstances.

Consequently, investors are strongly requested to make their own independent assessments and judgements by thoroughly considering all relevant factors before executing any investment decision.