Shree Ganesh Rem — Q4 FY26 earnings call

Call held 15 May 2026

Management summary

Shree Ganesh Remedies Limited reported strong sequential growth in Q4 FY26, with revenue up 57% QoQ to INR 33.20 crore and PAT more than doubling to INR 6.27 crore. The company successfully completed pilot trials for key CRAMS projects, with Block-7 capacity expansion on track for Q2 FY27 commercial production. However, FY26 was a year of consolidation, and external factors like geopolitical volatility and regulatory delays continue to pose challenges for commercialization and top-line growth.

Highlights

  • Revenue from operations grew 36% YoY to INR 33.20 crore in Q4 FY26, and 57% QoQ from INR 21.11 crore in Q3 FY26.

  • EBITDA increased 15% YoY to INR 11.37 crore in Q4 FY26, and 69% QoQ from INR 6.73 crore in Q3 FY26.

  • Profit After Tax (PAT) grew 103% QoQ to INR 6.27 crore.

  • Successful completion of pilot trials for CRAMS projects in Europe and Japan, transitioning to commercial trials.

  • Block-7 capacity expansion is on track, with commercial production expected to commence in Q2 FY27.

Concerns

  • Profit After Tax (PAT) declined 5% YoY in Q4 FY26 to INR 6.27 crore.

  • EBITDA margins compressed to 34.3% in Q4 FY26 from 40.4% in Q4 FY25.

  • FY26 was a year of consolidation with no material top-line growth on a full-year basis.

  • Geopolitical volatility, raw material price fluctuations, and regulatory approval delays continue to impact business and commercialization timelines.

Key financials

  1. Revenue from Operations ₹33.2 Cr +36%YoY
  2. EBITDA ₹11.37 Cr +15.1%YoY
  3. EBITDA Margin 34.3%
  4. PAT ₹6.27 Cr -4.9%YoY

What they filed

Q1 FY27: revenue down 41.8%, net profit down 67.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue32 27 24 25 30 −6%21 −22%33 +36%14 −42%
EBITDA11 10 10 7 10 −15%7 −32%11 +15%3 −54%
Net profit6 5 7 3 5 −23%3 −43%6 −5%1 −68%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Block-7 expansion for niche and CRAMS molecules
    • Pilot facility operationalization for new product development
    • Dahej plant expansion (future)
    On the capacity front, I am happy to confirm that our Block-7 expansion program is on track. We expect commercial production from Block-7 to commence in Quarter 2 of FY27. Block-7 has been purposefully designed to support a pipeline of niche and application-led molecules, including the CRAMS molecules I just spoke about. It will play an important role in the next phase of our growth. Alongside Block-7, our pilot facility, which we commissioned earlier in the year, is now fully operational and has been instrumental in helping us accelerate new product development and respond more quickly to the specific customer requirements. Yes, so for the Dahej expansion, currently, as we have mentioned previously as well in our investor presentation, the current phase of expansion which we are focusing on is in the recently acquired land in the Ankleshwar plant, where the 7A was recently commissioned and it will commission in this coming year. The Dahej plant is where the common utilities construction was started. It's still in the construction phase. And going forward, once we get the Ankleshwar unit fully utilized, then we will go for the Dahej plant expansion.

Guidance & targets

Capacity

  • Block-7 Commercial Production Capacity · Q2 FY27 · High confidence Commence commercial production
    We expect commercial production from Block-7 to commence in Quarter 2 of FY27.

    — Parth Kothia

Business Growth

  • CRAMS Business Traction Business Growth · FY27 · Medium confidence Begin gaining traction
    We expect the momentum to gradually improve through the course of FY27, and we expect the CRAMS business in particular to begin gaining traction as the year progresses.

    — Parth Kothia

Capacity Utilization

  • Block-8 Full Capacity Utilization Capacity Utilization · End of this year (FY27) · Medium confidence Full capacity
    I would say it's still operating roughly at the 50% capacity. We would expect the Block-8 to utilize its full capacity by the end of this year.

    — Gunjan Kothia

  • Overall Consolidated Capacity Utilization Capacity Utilization · Current · High confidence 60-70%
    But overall, our utilization capacity, considering the new capacity being continuously added, it's between 60% to 70%.

    — Gunjan Kothia

  • Peak Batch Process Utilization Capacity Utilization · Peak · High confidence 80-85%
    As we operate in a batch process, so it's in the range of 80% to 85%. That's the maximum it can go for the manufacturing operations.

    — Parth Kothia

Profitability

  • Normal EBITDA Margins Profitability · Longer term · High confidence 26-28%
    Going forward, as we have stated, the normal margins which is sustainable for the longer term is in the range of 26% to 28%.

    — Parth Kothia

Capex

  • Dahej Plant Commencement Capex · After 1 year (from May 2026) · Medium confidence Start after 1 year
    Yes, so I think Dahej will start after 1 year. So, it will take around 16 to 18 months to 20 months to get the new plant commissioned and up and running. So, after that, yes.

    — Parth Kothia

Asset Efficiency

  • Asset Turnover Ratio Asset Efficiency · Current · High confidence 1.8 to 2
    It's roughly around 1.8 to 2 from the asset.

    — Parth Kothia

What to watch in Q1 FY27

Block-7 Commercial Production Commencement

Q2 FY27
Current On track for Q2 FY27
Target Commercial production commenced

Why it matters

Key capacity expansion for CRAMS and niche molecules, crucial for future revenue growth.

We expect commercial production from Block-7 to commence in Quarter 2 of FY27.

Risks & concerns

  • Geopolitical volatility and war situation

    high

    Affects customer purchases, regulatory approvals, and prolongs registration/submission timelines for products.

    Management acknowledged

  • Regulatory approval delays for CRAMS projects

    high

    External government regulatory approvals for end products can take 3-6 months (Europe) to over a year (pharma), delaying commercialization.

    Management acknowledged

  • Raw material price volatility

    medium

    Crude prices impact solvent costs, affecting all products across the industry.

    Management acknowledged

  • Competitive pressure in domestic generic markets

    medium

    More players entering the field for old generic products, but company's main focus is on Spec-Chem and innovator segments.

    Management downplayed

Q&A highlights

5 direct, 1 evasive
Chemistries focus, competitive strategy, and competitors Direct
I would say chlorination is one of the core competencies that we practice. And the majority of our products, which we do even today, involves some or the other kind of product steps from the chlorination part. ... So, there is no company as such which we know of does the same reactions. Every company has their own chemistries.

Clarifies the company's core technical strengths in multi-step products and asserts a lack of direct competition in India for their specific processes.

Asked by Arnav Navlakha

Revenue contribution and growth expectations for niche CRAMS segments Partial
The outline which we can give is that all these products are significant in terms of revenue size and revenue portion from our side. So, for the next three years, we can see if all of them are commercialized, it will be significant amount from the existing revenue numbers.

Management confirms the strategic importance and potential of CRAMS projects for future revenue but refrains from quantifying specific contributions due to NDAs, indicating sensitivity around client agreements.

Asked by Arnav Navlakha

Consolidated capacity utilization and Block-8 status Direct
For the Block-8, I would say the utilization is still at the same level, what we have commented. It's still not at its peak. I would say it's still operating roughly at the 50% capacity. We would expect the Block-8 to utilize its full capacity by the end of this year. ... But overall, our utilization capacity, considering the new capacity being continuously added, it's between 60% to 70%.

Provides insight into current operational efficiency and the expected ramp-up of Block-8, which is crucial for future growth.

Asked by Arnav Navlakha

Impact of geopolitical volatility and raw material prices on operations Direct
On the geopolitical situation, Yashvi, we are facing the same issue as faced by all the chemical manufacturers because crude is the main raw material source for all the solvents that are used in the chemical manufacturing. So, due to this reason, we have been heavily impacted across all of our products. ... And on the raw material side, I can take around 15% is the raw material which is being imported.

Highlights key external headwinds affecting the company's cost structure and customer demand, with a specific mention of import dependence.

Asked by Yashvi

Ramp-up timelines for Japanese and European CRAMS projects Partial
It is going as per the schedule. Definitely for the European as well as Japanese, there are some regulatory approvals take time. So, it was expected. And we have also successfully completed the pilot scale and now the commercial scale has started. ... So, currently the commercial trials will start for that and then going forward, once we get approval from the pilot side, then the commercial production will start in the later half of this year.

Indicates that while technical progress is on track, commercialization and revenue realization are subject to external regulatory and customer approval delays, pushing significant ramp-up to the later half of the year or beyond.

Asked by Ankit Gupta

Bottlenecks in converting chemistry capability to commercial scale Direct
The main bottleneck is the regulatory approval. And sometimes, for example, some of our customers, they wish to supply these products to either the US or to Russia or to some other countries, but sometimes this war situation prolongs the registration or the submission of files. So, geopolitical situation is affecting our approval timelines, our customers' approval timelines simultaneously, but as such, there is no bottleneck at SGR's side at the moment.

Clearly identifies external regulatory and geopolitical factors as the primary bottlenecks for commercialization, rather than internal capabilities.

Asked by Sajal Kapoor

NSE listing timeline Evasive
So, for NSE we have planned internally, but as of now there is no specific timeline or the guidelines which we anticipate. I think currently we are listed on Bombay Stock Exchange and after discussion with the board of directors, we will definitely take up this question and decide thereafter.

Indicates a potential future capital market event but management is non-committal on specific timelines, suggesting it's still in early planning stages.

Asked by Sanjay Kumar Saraogi

Dahej plant expansion timeline Direct
Yes, so I think Dahej will start after 1 year. So, it will take around 16 to 18 months to 20 months to get the new plant commissioned and up and running. So, after that, yes.

Provides a clear timeline for the next major capacity expansion project, indicating it's a medium-term growth driver.

Asked by Nagesh K

2 min read 5 chapters

Detailed narrative

Q4 FY26 Performance and FY26 Consolidation

Shree Ganesh Remedies reported robust sequential growth in Q4 FY26, with revenue from operations increasing 57% QoQ to INR 33.20 crore, compared to INR 21.11 crore in Q3 FY26. EBITDA also saw a significant QoQ jump of 69% to INR 11.37 crore, and PAT more than doubled, growing 103% QoQ to INR 6.27 crore. Despite this strong quarterly performance, management noted that FY26 was a year of consolidation, without material top-line expansion on a full-year basis, reflecting deliberate groundwork rather than aggressive growth.

CRAMS Business Progress and Strategic Importance

The company achieved a significant milestone in its CRAMS business by successfully completing pilot trials for projects in Europe and Japan. These projects are now transitioning to commercial trial stages, subject to necessary customer and regulatory approvals. Management emphasized that CRAMS remains a central pillar of their long-term strategy, with expectations for this segment to contribute more visibly in the coming years. They highlighted their multi-chemistry expertise, particularly in halogenation and reduction, as a key differentiator for CRAMS engagements.

Capacity Expansion and Utilization

The Block-7 expansion program is on track, with commercial production anticipated to commence in Q2 FY27. This new facility is designed to support niche and CRAMS molecules. Additionally, the pilot facility commissioned earlier in the year is now fully operational, aiding new product development. Current overall consolidated capacity utilization stands at 60-70%, with Block-8 operating at roughly 50% and expected to reach full capacity by the end of FY27. The next major expansion, the Dahej plant, is in its construction phase and is expected to start after the Ankleshwar unit (Block-7) is fully utilized, with commissioning projected in 16-20 months.

Market Headwinds and Margin Outlook

The company continues to face challenging market conditions, including a slowdown in Europe, persistent geopolitical volatility, and volatile raw material prices, particularly crude oil impacting solvent costs. These factors have led to customers deferring purchases and prolonged regulatory approval timelines, especially for European and pharma products. While Q4 FY26 EBITDA margins were 34.3%, management guided for sustainable normal margins in the range of 26-28% for the longer term, attributing current higher margins to initial product approvals in CRAMS.

Strategic Focus and Competitive Positioning

Shree Ganesh Remedies positions itself as a chemistry-driven manufacturing partner, focusing on Spec-Chem and Agrochemicals. They aim to cater to high-end customers and innovators, particularly in Europe, Japan, and the USA, where their multi-step chemistry capabilities provide an edge. The company avoids direct competition in finished pharmaceutical products or small molecules, instead concentrating on niche intermediates where competition is limited, especially from Indian players.

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