Accent Microcell — Q4 FY26 earnings call

Call held 16 May 2026

Management summary

Accent Microcell delivered a strong FY26, driven by a strategic shift towards higher-value premium products and robust export growth, which now constitutes 63% of total revenue. The company achieved a 38% gross profit margin on 15,000 metric tons of sales volume. While the crucial Unit 3 Phase 1 expansion faced delays due to regulatory and environmental factors, it is now expected to commence commercial production by June 25th, 2026, with Phase 2 following in March 2027. Management anticipates significant revenue contribution and margin improvement from these new capacities, alongside efforts to normalize working capital.

Highlights

  • Total sales volume for FY26 was 15,000 metric tons, indicating strong demand.

  • Gross profit percentage for FY26 stood at a healthy 38%.

  • Export revenue grew significantly to 63% of total sales, up from 53% last year, with 90% of MCC Spheres exported in H2 FY26.

  • Unit 3 Phase 1, focusing on premium products, is on track to start commercial production by June 25th, 2026, after regulatory submissions.

  • The company successfully passed on raw material cost increases to customers, maintaining margins.

Concerns

  • Commercialization of Unit 3 Phase 1 was delayed due to abnormal monsoons, licensing work, and regulatory approvals.

  • Phase 2 of Unit 3 is now expected to go live in March 2027, a delay from earlier expectations.

  • Working capital stretch and receivables buildup were observed in FY26, though normalization is expected by H1 or end of FY27.

  • Trading margins for the Pirana unit are low, ranging from 2-5% for certain customers and overall trading activities.

Key financials

  1. Total Sales ₹350 Cr
  2. Manufacturing Sales ₹260 Cr
  3. Trading Sales ₹90 Cr
  4. Total Sales Volume 15,000 metric tons
  5. Gross Profit Percentage 38%
  6. Stock in Trade Purchase FY26 ₹95 Cr

What they filed

Q1 FY27: revenue down 4.6%, net profit down 60.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue126 5,972 139 6,087 139 +10%6,483 +9%210 +51%5,808 −5%
EBITDA19 1,116 23 778 24 +26%700 −37%33 +43%457 −41%
Net profit16 1,092 17 375 18 +13%404 −63%26 +53%147 −61%
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.

Order book

high confidence

Total value

4,000 metric tons

as of 2026-03-31 quantified

Execution

for at least 3 to 4 months

The company has a healthy order book of 4,000 metric tons, providing good visibility for the near future, especially for premium products in export and domestic markets.

Source: Q&A

Capital allocation

high confidence
  • Capex Capex disclosed partially funded out of internal growth and balance from rights issue
    • Unit 3 expansion (Phase 1 for premium excipients, Phase 2 for MCC, Phase 3 planned)
    for, Phase 1 and Phase 2, we have not, yet planned any kind of an, say, fundraising through debt, because it will be, say, partially funded out of internet growth, and, balance will be from right issue.
  • Debt Debt disclosed
    You are a debt-free company. Any reason for not taking up debt instead of taking equity? I mean, you are diluting your shares as well. So, any reason for that? I mean, why didn't you go for some sort of… For term loan, instead of the debt. Why didn’t you go for term loan instead of the equity funders? ... it was a kind of an, management, discretion, and we completely understand about the benefit of the leverage as well, but in order to gain competitive advantage, or at an early stage, we opted to go for right issue instead of debt.
  • Liquidity Cash ₹20 Cr The company has existing working capital and term loan limits with Kotak Mahindra Bank Limited, to be utilized if required.
    you have mentioned in your balance sheet in this financial year that you have cash of around, 20 CRs... we have etiquette facilities with, Kotak Mahindra Bank Limited, so in case if it is required, we are going to utilize it.

Guidance & targets

Capacity

  • Unit 3 Phase 1 Launch Capacity · Q1 FY27 · Medium confidence By June 25th, 2026

    Previously October 2025 (delayed to April 2026) → By June 25th, 2026

    Yes sir, due to election the officials were inactive from last 15 days that caused the delay but we submit the file again till June 25th file it will be clear.

    — Mr. Nitin Patel

  • Unit 3 Phase 2 Launch Capacity · Q4 FY27 · Medium confidence March 2027

    Previously H2 FY27 → March 2027

    Sir, Phase 2, say, it will be premature for me to give any kind of an exact deadline, but as of now, we are expecting it to go live in the month of, March 27.

    — Accent Microcell Ltd.

  • MCC Spheres Capacity Capacity · Ongoing · High confidence 100 metric tons per month
    say, around, 100 metric ton capacity for MCC Spears... Yes, sir, it's 100% per month.

    — Accent Microcell Ltd.

Revenue

  • Unit 3 Phase 1 Peak Revenue Revenue · Annual (at peak capacity) · High confidence ₹150 crores
    At peak capacity, we are assuming revenue of around, 150 crores.

    — Accent Microcell Ltd.

Utilization

  • Unit 3 Phase 1 Utilization Utilization · FY27 · High confidence 50-60% for 9 months
    Yes, sir, on a per day basis, yes. Say, 9 months of production.

    — Accent Microcell Ltd.

  • Unit 3 Phase 2 Utilization Utilization · From first year onwards · High confidence 75-80%
    Sir, Phase 2 will, say, have an, say, 75% to 80% of capacity residence from first year onwards.

    — Accent Microcell Ltd.

Profitability

  • Blended Profit Margins Profitability · Going ahead · High confidence Increase by at least 2-3 percentage points
    It will be prudent enough to assume going ahead, as we are going ahead with more premium range of products, so it is prudent enough to assume that the blended profit margins are going to increase by, say, at least 2-3 percentage.

    — Accent Microcell Ltd.

Volume

  • Trading Volumes Volume · Post Phase 1 and Phase 2 commercialization · High confidence Substantial decrease
    Going ahead, once the Phase 1 and Phase 2 goes live, you will see a substantial decrease in the, say, trading volumes.

    — Accent Microcell Ltd.

Working Capital

  • Working Capital Normalization Working Capital · By H1 FY27 or end of FY27 · Medium confidence Normalized
    Sir, if not by, H1 of financial year 27, surely by, say, end of financial 27, it will be taken care of.

    — Accent Microcell Ltd.

Product Mix

  • Premium Products Share of Revenue Product Mix · H2 FY27 or entire FY27 · High confidence 16-17%

    Previously 13% → 16-17%

    it is going to increase, but for H2 or for entire finance year 27, it's going to be, say, more or less 16 to 17%.

    — Accent Microcell Ltd.

Realization

  • Unit 3 Phase 1 Premium Products Realization Realization · N/A · High confidence ₹650-700 per kg
    Unit 3, Phase 1, premium range of products, the average utilization will be around, 650 to 700 rupees.

    — Accent Microcell Ltd.

  • Pulp-based CMC Domestic Selling Price Realization · N/A · High confidence ₹400 per kg
    in domestic selling price of CMC is almost Rs 400Kg

    — Accent Microcell Ltd.

  • Pulp-based CMC Export Selling Price Realization · N/A · High confidence ₹800-900 per kg
    for foreign its selling price will be Rs 800 to 900Kg for export.

    — Accent Microcell Ltd.

What to watch in Q1 FY27

Unit 3 Phase 1 Commercial Production Start

By June 25th, 2026
Current Delayed, awaiting regulatory approvals
Target Commercial production started

Why it matters

This is a key capacity expansion for premium products and a major growth driver, impacting future revenue and profitability.

Yes sir, due to election the officials were inactive from last 15 days that caused the delay but we submit the file again till June 25th file it will be clear.

Risks & concerns

  • Unit 3 Phase 1 Commercialization Delays

    medium

    Delay in commercialization of Unit 3 Phase 1 due to abnormal monsoons, licensing work, and regulatory approvals, pushing launch to June 2026.

    Management acknowledged

  • Regulatory Approval for Unit 3

    medium

    Need for CTO (Consent to Operate) and GPCV (Gujarat Pollution Control Board) license for Unit 3 Phase 1, with file submitted and expected to be cleared by June 25th.

    Management acknowledged

  • Working Capital Stretch and Receivables

    medium

    Consistent working capital stretch and receivables buildup observed over the last two years, with normalization expected by H1 or end of FY27.

    Analyst acknowledged

Q&A highlights

5 direct
Unit 3 Phase 1 Delay and Timeline Partial
Yes sir, due to election the officials were inactive from last 15 days that caused the delay but we submit the file again till June 25th file it will be clear.

Addresses the reasons for the delay in a key capacity expansion project and provides an updated, albeit still tentative, timeline for commercial production.

Asked by Himanshu Bisani

Raw Material Cost Management Direct
nominal increase in the cost, for the import of raw material that is wood pulp has been completely passed on through the customer. So, basically, say, we have a natural edge concept, say, we have, say almost 3x amount type of export than the amount of import. So, basically, while currency devaluation, we are having a positive benefit. So, there is no financial impact due to increase in the price of raw material.

Highlights the company's ability to mitigate raw material price volatility through cost pass-through and benefits from currency movements due to a strong export focus.

Asked by Himanshu Bisani

FY26 Sales Volume and Mix Direct
it was 15,000, metric tons. ... roughly 25-30% was from the traded volumes.

Provides specific quantitative data on the company's sales volume and the proportion of traded vs. manufactured goods, which is crucial for understanding revenue quality and margin profile.

Asked by Priyank Chheda

Unit 3 Phase 1 Revenue Potential and Utilization Direct
Sir, Phase 1, at a peak capacity, say, will fetch, revenue of around, roughly between, say, 40% of the, say, existing revenue that would be from Unit 1 and 2.

Gives a clear indication of the expected financial impact of the new capacity, linking it to existing revenue for context.

Asked by Muhammed Sufyan Lakdawala

Pulp-based CMC Technology and India's First Plant Direct
This technology took us almost 8 years of R&D to develop. After 8 years of R&D we are successfully bringing this product to the market. ... This will be the first time in India that we will be manufacturing wood pulp-based CMC.

Showcases the company's R&D capabilities and its pioneering position in a specific product segment in India, indicating a competitive advantage.

Asked by Ayush Agarwal

Working Capital Normalization Partial
Sir, if not by, H1 of financial year 27, surely by, say, end of financial 27, it will be taken care of.

Addresses a recurring concern about working capital management and provides a timeline for its expected resolution, which impacts cash flow.

Asked by Priyank Chheda

Pirana Unit Profitability and Trading Margins Partial
No, sir, it is in profit. But the trading margin might vary from customer to customer. For a particular customer, it might be 2 to 3 percentage. 5% was on the higher side than what you have shared.

Clarifies the profitability of the Pirana unit and provides more granular detail on trading margins, which helps in understanding the blended margin profile.

Asked by Hardik Mehta

Funding Strategy (Rights Issue vs. Debt) Direct
it was a kind of an, management, discretion, and we completely understand about the benefit of the leverage as well, but in order to gain competitive advantage, or at an early stage, we opted to go for right issue instead of debt.

Explains the rationale behind the company's decision to fund expansion through equity (rights issue) rather than debt, highlighting a conservative capital structure approach.

Asked by Paras Doda

2 min read 6 chapters

Detailed narrative

FY26 Performance and Strategic Product Shift

Accent Microcell reported a total sales volume of 15,000 metric tons for FY26, achieving a gross profit percentage of approximately 38%. The company's strategic focus on premium products, particularly SMCC and Spheres, significantly contributed to H2 FY26 performance. This shift is evident in the export revenue, which increased to 63% of total sales from 53% in the prior year, with 90% of MCC Spheres being exported in H2 FY26.

Unit 3 Expansion: Timelines and Revenue Potential

The crucial Unit 3 expansion project has experienced delays, with Phase 1, dedicated to premium excipients (CCS, CMC, SSD), now expected to commence commercial production by June 25th, 2026, following regulatory submissions. Phase 2, focusing on MCC, is projected to go live in March 2027. Management anticipates Unit 3 Phase 1 to generate a peak annual revenue of ₹150 crores, with an expected 50-60% utilization for 9 months in FY27, contributing roughly 40% of existing revenue from Units 1 and 2.

Product Strategy and Realization from New Capacities

Accent Microcell is targeting high-value products from Unit 3, including CCS with an expected realization of ₹650-700 per kg. The company is also pioneering pulp-based CMC production in India, with domestic selling prices of ₹400 per kg and export prices of ₹800-900 per kg. This strategic shift towards premium, higher-realization products is projected to increase blended profit margins by at least 2-3 percentage points going forward.

Raw Material Sourcing and Cost Management

The company has effectively managed raw material costs, passing on nominal increases in wood pulp prices to customers. Accent Microcell sources its wood pulp from diverse international suppliers in the USA, Sweden, Canada, and Indonesia, avoiding reliance on China. Furthermore, a high export-to-import ratio (3x) allows the company to benefit from currency devaluation, mitigating the financial impact of raw material price fluctuations.

Working Capital and Funding Strategy

Accent Microcell aims to normalize its working capital and receivables, which have shown a stretch in FY26 (₹90 crores in receivables), by H1 or the end of FY27. The company maintains a debt-free status, having opted for a rights issue over debt for funding Unit 3 to gain competitive advantage. Future funding for Phase 1 and 2 will primarily come from internal accruals and the rights issue, with no new debt planned, supported by approximately ₹20 crores in cash.

Sales Channel Mix and Trading Volume Outlook

Currently, 85% of the company's sales are through distributors, with 15% from direct sales. Trading activities constituted 25-30% of total sales volume in FY26, amounting to ₹90 crores, and generated margins of 5-6%. Management expects a substantial decrease in trading volumes once the new manufacturing capacities from Unit 3 Phase 1 and 2 become operational, indicating a strategic shift towards higher-margin in-house production.

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