NGL Fine Chem Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript NGL Fine Chem Ltd filed with BSE on 30 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
NGL Fine-Chem reported Q4 FY26 revenue of Rs 149.23 crores, up 57% year on year and 17% sequentially, with EBITDA margin expanding to 14.35%. For the full year, revenue grew 36% to Rs 500.95 crores and profit after tax rose 128% to Rs 48.13 crores. Management attributed the growth to higher volumes across products and geographies, while noting that freight and raw material cost increases, along with forex mark-to-market provisions, weighed on sequential margins.
Numbers mentioned
Revenue from operations: ₹149.23 crores (Q4 FY26)
p. 4
“Revenue from operations for the quarter stood at ₹149.23 crores, compared to ₹94.97 crores in Q4 FY25, registering a growth of 57% year on year.”
Rahul Nachane, page 4 of the filed PDF · View the filing
EBITDA: ₹21.41 crores (Q4 FY26)
p. 4
“EBITDA for the quarter came in at ₹21.41 crores, as against ₹6.32 crores in Q4 FY25.”
Rahul Nachane, page 4 of the filed PDF · View the filing
EBITDA margin: 14.35% (Q4 FY26)
p. 4
“EBITDA margin for the quarter stood at 14.35%, an expansion of 769 basis points over the same quarter last year.”
Rahul Nachane, page 4 of the filed PDF · View the filing
Profit after tax: ₹13.49 crores (Q4 FY26)
p. 4
“Profit after tax for the quarter was ₹13.49 crores, compared to ₹0.54 crores in Q4 FY25.”
Rahul Nachane, page 4 of the filed PDF · View the filing
Revenue from operations: ₹500.95 crores (FY26)
p. 4
“Revenue from operations stood at ₹500.95 crores, compared to ₹368.26 crores in FY25, reflecting a growth of 36%.”
Rahul Nachane, page 4 of the filed PDF · View the filing
EBITDA: ₹72.69 crores (FY26)
p. 4
“EBITDA for the year was ₹72.69 crores, against ₹33.87 crores in the previous year, more than doubling on a year-on-year basis.”
Rahul Nachane, page 4 of the filed PDF · View the filing
EBITDA margin: 14.51% (FY26)
p. 4
“EBITDA margin for FY26 stood at 14.51%, an improvement of 531 basis points over FY25.”
Rahul Nachane, page 4 of the filed PDF · View the filing
Profit after tax: ₹48.13 crores (FY26)
p. 4
“Profit after tax for the year stood at ₹48.13 crores, compared to ₹21.12 crores in FY25, a growth of 128%.”
Rahul Nachane, page 4 of the filed PDF · View the filing
Capex incurred on Phase II expansion: ₹182.75 crores (up to Q4 FY26)
p. 5
“Of the total planned capex of ₹210 crores, we have invested ₹182.75 crores up to Q4 FY26.”
Rahul Nachane, page 5 of the filed PDF · View the filing
Animal API contribution to revenue: 95% (Q4 FY26)
p. 5
“In terms of business mix, Animal API continues to be the core of our business and contributed 95% of revenues during the quarter.”
Rahul Nachane, page 5 of the filed PDF · View the filing
Top 10 customers share of sales: 29% (Q4 FY26)
p. 5
“Our customer and product concentration remains well diversified, with the top 10 customers accounting for 29% of sales and the top 10 products contributing 66% of sales.”
Rahul Nachane, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Phase II commissioning — early Q2 FY27 · Q2 FY27
stated firmly by Rahul Nachane
p. 5
“As a result, commissioning of Phase II, which was earlier expected in Q1 FY27, is now scheduled for early Q2 FY27.”
Rahul Nachane, page 5 of the filed PDF · View the filing
Commercial production start from Phase II — H2 FY27 · H2 FY27
stated firmly by Rahul Nachane
p. 5
“However, we remain on track to commence commercial production from H2 FY27, as previously guided.”
Rahul Nachane, page 5 of the filed PDF · View the filing
EBITDA margin — 15% to 18%
stated as an aspiration by Rahul Nachane
p. 8
“So, as we have maintained 15% to 18% is a level which we want to get to of EBITDA. We are very close to that particular, close to that line right now.”
Rahul Nachane, page 8 of the filed PDF · View the filing
Revenue from new plant expansion — Rs. 350 crores to Rs. 400 crores
stated as an aspiration by Rahul Nachane
p. 11
“We have indicated earlier that with the new plant we should be able to generate a turnover of between Rs. 350 crores to Rs. 400 crores.”
Rahul Nachane, page 11 of the filed PDF · View the filing
CAPEX for FY27 — Rs. 15 crores to Rs. 20 crores · FY27
stated firmly by Rahul Nachane
p. 12
“CAPEX as a project will get over, as we indicated, at about Rs. 210 crores. And now CAPEX, which we encourage, is in the range of about Rs. 15 crores to Rs. 20 crores.”
Rahul Nachane, page 12 of the filed PDF · View the filing
Time to reach peak utilization of Phase-2 — three to four years
stated as an aspiration by Rahul Nachane
p. 12
“We would assume it will take us about three to four years.”
Rahul Nachane, page 12 of the filed PDF · View the filing
European regulated market sales start — current year
stated firmly by Rahul Nachane
p. 16
“Yes. We expect to start selling to Europe in the current year and the US in the next year.”
Rahul Nachane, page 16 of the filed PDF · View the filing
Significant regulated market revenue — FY28
stated as an aspiration by Rahul Nachane
p. 15
“Significant, I mean, we anticipate a significant sort of revenue starting only from the next financial year. That is 2027-28.”
Rahul Nachane, page 15 of the filed PDF · View the filing
EBITDA margin normalization — Q2 onwards
stated conditionally by Rahul Nachane
p. 19
“I would expect it to start from Q2 onwards. Q1 might really not be all that great because we might see probably 1%, 2% variation here or there because price increases have started going through mainly from the current month.”
Rahul Nachane, page 19 of the filed PDF · View the filing
New product additions — 9 to 10 products per year
stated firmly by Rahul Nachane
p. 15
“Currently, our budget is to add 10 products on a yearly basis between 9 and 10.”
Rahul Nachane, page 15 of the filed PDF · View the filing
Brownfield expansion for ROW market — next financial year
stated firmly by Rahul Nachane
p. 18
“We have got some plans of doing expansions in our existing facilities. However, they are not for the current year. It is planned for the next financial year.”
Rahul Nachane, page 18 of the filed PDF · View the filing
Peak turnover from new expansion — Rs. 350 crores · next three to four years
stated as an aspiration by Rahul Nachane
p. 19
“So, from the new expansion, we expect to generate up to Rs. 350 crores turnover. And we should be able to get to that level over the next three to four years.”
Rahul Nachane, page 19 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said Phase-1 included an intermediate plant that boosted production and outsourcing was also increased, contributing to volume growth.
Answered by Rahul Nachane
Asked by Dhwanil Desai: How should investors understand the volume build-up from Phase-1 given it was expected to be mainly a validation facility?
p. 6
“So, in Phase-1, you are right, we have put up a small volume section for doing the validation batches, but we had also put in an intermediate plant in the Phase-1.”
Rahul Nachane, page 6 of the filed PDF · View the filing
Management said the timeline depends on the regulator and could occur this year or next.
Answered by Rahul Nachane
Asked by Dhwanil Desai: What is the timeline for USFDA inspection triggering after product filings?
p. 6
“So, this can happen in the current year or probably next year also because it depends entirely on the regulator.”
Rahul Nachane, page 6 of the filed PDF · View the filing
Management detailed the number of CEPs and DMFs registered, under review, and being filed.
Answered by Rahul Nachane
Asked by Ishan Thakkar: What is the current status of CEP and DMF approvals in Europe?
p. 7
“We have currently got five DMS registered and three CEPs, which are already done and registered. We have got four more DMS which are filed and which are under review. And we have got three CEPs which are under review.”
Rahul Nachane, page 7 of the filed PDF · View the filing
Management explained part of the increase was due to automation and digitization, and part due to higher metal costs.
Answered by Rahul Nachane
Asked by Rahul Jain: Why did Phase-2 capex increase from Rs.160 crores to Rs.210 crores?
p. 8
“Close to about Rs. 20 crores is the increase due to some higher level of automation and digitization which we have done in plant. And roughly about Rs. 50 crores is due to increase in the cost of metals.”
Rahul Nachane, page 8 of the filed PDF · View the filing
Management attributed the rise mainly to mark-to-market provisioning on forex and investments.
Answered by Rahul Nachane
Asked by Rahul Jain: What caused the sharp rise in other expenses this quarter?
p. 8
“Mainly mark-to-market provisioning on FOREX and investments.”
Rahul Nachane, page 8 of the filed PDF · View the filing
Management said that is the aim but stabilization would take a couple of quarters before moving higher.
Answered by Rahul Nachane
Asked by Ankit Gupta: Can the Rs. 150 crore quarterly run rate be sustained and grown further?
p. 10
“No, no, it should take a little while, probably one or two quarters to stabilize at that level and then go higher.”
Rahul Nachane, page 10 of the filed PDF · View the filing
Management said Chinese competitors have entered and prices have settled at a long-term level, without expecting further declines.
Answered by Rahul Nachane
Asked by Preet Jain: Is there meaningful price erosion in Fluralaner since patent expiry given new competitors?
p. 11
“But there are a lot of Chinese companies manufacturing and price erosion has already taken place. So, it is more or less settled down at a, I think, at a longterm price.”
Rahul Nachane, page 11 of the filed PDF · View the filing
Management said no dividend strategy has been decided for the next three years.
Answered by Rahul Nachane
Asked by Dheeraj Dawe: What is management's capital allocation thinking on dividends or buybacks given expected free cash flow?
p. 13
“Frankly, we have not thought about our dividend strategy of three years down.”
Rahul Nachane, page 13 of the filed PDF · View the filing
Management indicated it could be 3-5% higher than the 15-18% band, though it declined to give specific revenue splits.
Answered by Rahul Nachane
Asked by Ayush Mittal: What margin profile is expected for the regulated market business once scaled?
p. 15
“When it looks at, there is probably a 3% to 5% higher margin profile that we can expect.”
Rahul Nachane, page 15 of the filed PDF · View the filing
Management said oversupply and Chinese/Indian capacity expansion make a near-term return to those margins unlikely.
Answered by Rahul Nachane
Asked by Rohit: Can margins return to the 20-21% levels seen before FY22, excluding regulated business?
p. 17
“So, I am not too sure that we can return to those numbers at least in the next near term, at least two, three years.”
Rahul Nachane, page 17 of the filed PDF · View the filing
Management confirmed plans for brownfield expansion, planned for the next financial year rather than the current one.
Answered by Rahul Nachane
Asked by Dhwanil Desai: Will further capex be needed for ROW market capacity given existing units are near full utilization?
p. 18
“We have got some plans of doing expansions in our existing facilities. However, they are not for the current year. It is planned for the next financial year.”
Rahul Nachane, page 18 of the filed PDF · View the filing
Risks flagged
Geopolitical developments increased freight costs and raw material prices, which could not be immediately passed on due to fixed-price contracts
p. 4
“Geopolitical developments led to an increase in freight costs and raw material prices. Since a part of our business operates under fixed-price contracts, these cost increases could not be passed on immediately to customers.”
Rahul Nachane, page 4 of the filed PDF · View the filing
Forex and investment mark-to-market provisions impacted margins during the quarter
p. 4
“In addition, forex movement resulted in mark-to-market provisions, as also mark to market provisions on investments which had some impact on margins during the quarter.”
Rahul Nachane, page 4 of the filed PDF · View the filing
Delays in Phase II construction due to shortages of gas and labour
p. 5
“With respect to Phase II of the Greenfield expansion at Tarapur, we did face certain delays during the quarter due to shortages of gas and labour, which affected the pace of construction.”
Rahul Nachane, page 5 of the filed PDF · View the filing
USFDA inspection timeline is entirely dependent on the regulator with no company control
p. 6
“So, there is no control that we have over the same.”
Rahul Nachane, page 6 of the filed PDF · View the filing
Ongoing price erosion and oversupply from Chinese and Indian competition affecting margins
p. 17
“So, we were seeing a classical oversupply situation in, which led to a lot of price erosion in 2024 and 2025.”
Rahul Nachane, page 17 of the filed PDF · View the filing
Uncertainty on quantum of margin improvement given continued volatility in commodity and input costs
p. 14
“See, it is a little bit difficult to predict what can happen in the short term.”
Rahul Nachane, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.