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    Anupam Rasayan India Q2 FY26 earnings call

    ANURAS
    Chemicals·17 Oct 2025
    Management Summary

    Anupam Rasayan delivered exceptional Q2 and H1 FY26 results, with consolidated revenue growing 148.8% and 122.1% YoY respectively, driven by strong performance in Pharma and Performance Materials segments. Profitability was temporarily impacted by older inventory dispatches but is expected to normalize. The company demonstrated significant improvement in working capital management and reduced net debt, while actively pursuing inorganic growth opportunities.

    Highlights

    5

    • Consolidated revenue from operations of ₹731.4 crore in Q2 FY26, reflecting exceptional growth of 148.8% year-on-year and 50.5% sequentially.

    • For the first half of FY26, consolidated revenue stood at ₹1,217.2 crore, registering a robust 122.1% YoY growth.

    • Pharma segment registered a strong 201% YoY growth during H1 FY26, driven by new product launches and scale-up.

    • Net debt reduced to ₹730 crore at consol level after using ₹175 crore from warrants for term debt repayment.

    • Working capital days improved significantly from 409 days in FY25 to 247 days in H1 FY26.

    Concerns

    2

    • Consolidated EBITDA margins were slightly subdued at 19.5% in Q2 FY26 due to a few dispatches made from older inventory.

    • Standalone trade receivables increased by around ₹300 crore and inventories remained at a similar level of roughly ₹1,300 crore (about 365 days), though management provided explanations and improvement plans.

    What Changed2

    vs Q3 FY26

    Guidance items4 → 6 (+2)Risks discussed0 → 2 (+2)
    Key financials

    Metrics

    10

    Periods

    2

    Q2 FY26

    5
    • Revenue
      ₹731.4 Cr
      YoY+148.8%QoQ+50.5%
    • EBITDA
      ₹143.58 Cr
      YoY+74.4%
    • EBITDA Margin
      19.5%
    • PAT
      ₹57.15 Cr
      YoY+86.6%
    • PAT Margin
      7.8%

    H1 FY26

    5
    • Revenue
      ₹1,217.22 Cr
      YoY+122.1%
    • EBITDA
      ₹272.78 Cr
      YoY+92.6%
    • EBITDA Margin
      22.2%
    • PAT
      ₹105.61 Cr
      YoY+146.7%
    • PAT Margin
      8.6%

    Segment breakdown

    Revenue ContributionYoY Growth
    Life Science Related Specialty Chemicals (H1 FY26)84%—
    Pharma Segment (H1 FY26)—2.0%
    Performance Materials (H1 FY26)16%3.1%
    Heatmap· 2 shared metrics

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹730 crores

    Liquidity

    Liquidity disclosed

    Operating cash flow over ₹350 crores on a consolidated basis, and over ₹300 crores on a standalone basis (adjusted for receivables).

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Total Revenue Growth
    over 50%
    		High
    Revenue
    Total Revenue Growth
    50%+
    		High
    EBITDA Margin
    Normalized EBITDA Margin
    around 25%, with a variation of plus or minus 1 percentage point
    		Medium
    Working Capital
    Working Capital Days
    200 days
    		High
    Working Capital
    Working Capital Cycle
    around about 200 plus or minus 20 days
    		High
    Order Book
    Revenue Contribution from New Orders
    approximately 450 crore
    		High

    What to watch in Q3 FY26

    4

    EBITDA Margin Normalization

    from Q3 onwards
    Current19.5% (Q2 FY26)
    Targetaround 25% (+/- 1%)

    Why it matters

    Indicates the company's ability to improve profitability as new contracts and pricing structures take effect.

    However, going forward⏳, we expect margins to stabilize around 25%, with a variation of plus or minus 1 percentage point. So broadly, that's the EBITDA margin range we should be looking at.

    Risks & concerns

    2
    RiskSeverity

    Temporary EBITDA Margin Subdued

    Q2 FY26 EBITDA margins were slightly subdued due to dispatches made from older inventory, but expected to normalize from Q3 onwards. — Management acknowledged

    low

    High Standalone Working Capital (Receivables & Inventory)

    Standalone receivables increased due to intercompany adjustments (funds pending transfer from subsidiaries). High inventory is strategic for new segments and due to past customer deferrals, but working capital days are improving. — Analyst acknowledged

    medium

    Q&A highlights

    7

    “approximately 25%-30% of the revenue this quarter came from liquidation of older inventory, which we had highlighted earlier. We had been requesting customers for this, and this quarter we successfully achieved it. Apart from that, the agrochemical cycle has also turned positive, with volumes showing improvement. As mentioned earlier, growth in the pharma and polymer segments is further supporting this momentum.”

    Clarifies the specific drivers of the exceptional Q2 revenue growth, including the impact of inventory liquidation and positive sectoral trends.

    asked by Meet Gada

    2 min read7 chapters

    Detailed Narrative

    01

    Exceptional Q2 & H1 FY26 Performance

    Anupam Rasayan delivered a stellar performance in Q2 FY26, with consolidated revenue from operations reaching ₹731.4 crore, marking an exceptional growth of 148.8% year-on-year and 50.5% sequentially. For the first half of FY26, consolidated revenue stood at ₹1,217.2 crore, registering a robust 122.1% YoY growth. This performance has already surpassed the total revenue of FY25 within six months of the current financial year.

    02

    Profitability and Margin Dynamics

    Consolidated EBITDA margins were reported at 19.5% in Q2 FY26 and 22.2% for H1 FY26. Management noted that Q2 margins were temporarily subdued due to dispatches from older inventory. However, they expect margins to normalize around 25% (+/- 1%) from Q3 onwards, driven by new contracts and pricing structures. The company aims to return to historical ROCE levels in the higher teens and over 20%.

    03

    Segmental Growth Drivers

    Life Science Related Specialty Chemicals contributed 84% of total revenue in H1 FY26. Within this, the Pharma segment accounted for 23% and registered a strong 201% YoY growth, primarily from new product launches and commercialized molecules. Performance Materials contributed 16% of H1 FY26 revenue, with a 306% YoY growth, supported by ramp-up of newly launched polymer molecules and expanding customer engagements.

    04

    Working Capital Management & Debt Reduction

    The company made significant progress in optimizing its balance sheet and improving working capital efficiency. Working capital days decreased from 409 days in FY25 to 247 days in H1 FY26, with a near-term target of 200 days. Net debt (consolidated) reduced to ₹730 crore, following the utilization of ₹175 crore from ₹277.5 crore warrants received in July 2025 for term debt repayment. Operating cash flow was strong, exceeding ₹350 crore on a consolidated basis.

    05

    Capex and Asset Utilization

    Anupam Rasayan completed a CapEx of ₹678 crore announced in September 2022. The ₹1,000 crore increase in gross block from FY22 to FY25, representing three new plants, is now fully operational and expected to start yielding revenue. This addresses concerns about profitability not aligning with investments, as past EBITDA decline was attributed to agrochemical sector headwinds🌐 while new capacities were under construction.

    06

    Order Book and Future Outlook

    The company maintains a healthy order book of ₹14,646 crore, spread over 5-7 years, with approximately ₹450 crore expected to contribute to revenue in FY26. Management is optimistic about the outlook, particularly in the polymer sector, and is actively exploring inorganic opportunities to expand its market presence. Exports contributed 58% of total revenue, with the US market being a key growth driver and most products exempt from recent US tariffs.

    07

    Receivables and Intercompany Adjustments

    Concerns regarding increased standalone trade receivables (around ₹300 crore) were addressed by management, explaining that the difference is primarily due to intercompany adjustments. Funds from customers have been received by US and Europe subsidiaries, and the transfer to Anupam's books is expected in the current quarter, indicating a timing difference📎 rather than a collection issue.

    This is an AI-generated summary of a publicly available earnings call transcript.