Anya Polytech & — Q2 FY26 earnings call

Call held 24 Nov 2025

Management summary

Anya Polytech & Fertilizers Limited reported a consolidated total income of INR99.70 crores, EBITDA of INR13.39 crores, and a net profit of INR6.14 crores for H1 FY26. The company successfully integrated Polyfirm Packaging Limited, enhancing its manufacturing capabilities, and is actively expanding its green energy initiatives. While margins were impacted by capex and raw material costs in H1, management anticipates a recovery in H2 FY26 and projects significant growth in the coming years, targeting INR350 crores turnover by FY27.

Highlights

  • Consolidated total income of INR99.70 crores in H1 FY26.

  • EBITDA of INR13.39 crores in H1 FY26.

  • Net profit of INR6.14 crores in H1 FY26.

  • Successful integration of Polyfirm Packaging Limited, strengthening SDP, PPP manufacturing capabilities.

  • Strategic expansion into green energy with 24 acres of solar infrastructure in Bhopal and upcoming biomass pellets and pulp molding projects.

  • Targeting over INR200 crores total income for FY26, up from INR99.70 crores in H1.

Concerns

  • EBITDA margin for H1 FY26 was lower (13.43%) due to capex depreciation and higher raw material costs (sulfuric acid prices up 250%).

  • Management expects EBITDA margin to recover to 17%-19% in H2 FY26.

Key financials

  1. Total Income ₹99.7 Cr
  2. EBITDA ₹13.39 Cr
  3. Net Profit ₹6.14 Cr
  4. EBITDA Margin 13.4%

What they filed

₹ Cr · quarterly
Line itemQ2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue76 61 98 80
EBITDA16 6 12 5
Net profit8 0 6 2
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.

Segment breakdown

Share of Revenue
₹99.7 Cr Total
  • Fertilizer Segment ₹67.7 Cr 67.9%
  • Packaging Segment ₹32 Cr 32.1%

Capital allocation

high confidence
  • Capex ₹7 Cr
    • Anya Polytech capex ₹5.5 Cr
    • Arawali Phosphate capex ₹1.5 Cr
    • Yara Green capex ₹7.5 Cr
    Anurag Aggarwal: "In Anya, it is INR5.50 crores. And in Arawali Phosphate, it is INR1.50 crores." (Page 8); Management: "In Yara Green, it will be around INR7 crores, INR8 crores." (Page 8)
  • Debt Debt disclosed
    • Repayment Planning an issue to make the company debt-free this year.
    Yash Pal Singh Yadav: "As far as debt reduction is considered, we are planning an issue for completely making the company debt-free... So, whatever the debt is on the company. So, we will make it debt-free this year only." (Page 11)
  • M&A Polyfirm Packaging Limited Acquisition · Integrated · Consideration ₹[object Object] (undisclosed)

    Strengthened SDP, PPP manufacturing capabilities, improved delivery timelines, offloaded production load from Shahjahanpur unit, cost efficiencies (lower power cost, tax benefits), and easier access to PSU orders.

    Acquisition capex around INR7 crores. Benefits include 3 years of tax benefits and lower power costs (INR5.5-6 per unit vs INR9.5).

    Yash Pal Singh Yadav: "The key development was the successful integration of our wholly-owned subsidiary, Polyfirm Packaging Limited." (Page 3); Anurag Aggarwal: "Capex in Polyform, while acquiring the Polyform, it is around INR7 crores." (Page 8); Yash Pal Singh Yadav: "this polymer unit, which we acquired now, polyform packaging, it is in the Startup India scheme. And we have 3 years of... tax benefits. And the power cost is less. So, in Shahjahanpur, suppose our power cost is INR9.5 per unit, then here it is INR5.5 to INR6 per unit." (Page 10)

Guidance & targets

Margin

  • EBITDA Margin Margin · H2 FY26 · High confidence 17%-19%
    Yashpal Singh Yadav: "But EBITDA margin should be 17% to 19%." (Page 6); Yashpal Singh Yadav: "As I mentioned, EBITDA margin will touch around 17% to 19%." (Page 7)

    — Yashpal Singh Yadav

Revenue

  • Total Income Revenue · FY26 · High confidence >INR200 crores
    Yashpal Singh Yadav: "This year, because in first half, we have already touched INR100 crores. So, this year, consolidated, we will be above INR200 crores plus." (Page 7)

    — Yashpal Singh Yadav

  • Total Turnover Revenue · 2026-27 · High confidence INR350 crores
    Yashpal Singh Yadav: "And by 2026-27, I am targeting INR350 crores." (Page 11)

    — Yashpal Singh Yadav

  • Biomass Pellets Revenue Contribution Revenue · Post completion · High confidence INR50-60 crores
    Yashpal Singh Yadav: "So, both the product, I mean, projects will add another INR50 crores to INR60 crores to company's turnover." (Page 13)

    — Yashpal Singh Yadav

  • Pulp Molding Revenue Contribution Revenue · Post completion · High confidence INR50-60 crores

    — Yashpal Singh Yadav

Profitability

  • EBITDA Profitability · 2026-27 · High confidence 18%-20%
    Yashpal Singh Yadav: "And EBITDA 18%-20%." (Page 11)

    — Yashpal Singh Yadav

Capacity

  • Fertilizer Additional Capacity Capacity · FY26 · High confidence 30% more
    Yashpal Singh Yadav: "This year, we will achieve 30% more additional capacity and by next year, we will achieve 100% capacity." (Page 5)

    — Yashpal Singh Yadav

  • Fertilizer Capacity Utilization Capacity · FY27 · High confidence 100%

    — Yashpal Singh Yadav

Production

  • Yara Green Production Start Production · April 2026 · High confidence April onwards
    Yashpal Singh Yadav: "So, Yara Green will come in production, I think, from April onwards. So, next year, that will add additional value." (Page 7)

    — Yashpal Singh Yadav

Project Completion

  • Biomass Pellets Project Completion Project Completion · Next 6 months · High confidence Completed
    Yashpal Singh Yadav: "So, biomass pellets project will be completed in next 6 months..." (Page 13)

    — Yashpal Singh Yadav

  • Pulp Molding Project Completion Project Completion · Next 10 months · High confidence Completed
    Yashpal Singh Yadav: "...and pulp molding will be completed in another 10 months." (Page 13)

    — Yashpal Singh Yadav

Product Launch

  • Chelated Salts Product Launch Product Launch · Next 6-10 months · High confidence All chelated salts in market
    Yashpal Singh Yadav: "In another 6 to 10 months, we will place all the chelated salts in the market, which are very high margin products." (Page 10)

    — Yashpal Singh Yadav

What to watch in Q3 FY26

Debt-free status

This year (FY26)
Current Company has debt (amount not specified)
Target Debt-free

Why it matters

Significant capital allocation decision impacting interest costs and financial health.

Yash Pal Singh Yadav: "So, whatever the debt is on the company. So, we will make it debt-free this year only." (Page 11)

Risks & concerns

  • Raw material price volatility (sulfuric acid)

    medium

    Sulfuric acid prices increased by 250% in the last six months, impacting H1 margins, but management expects to cover it in another six months.

    Management acknowledged

  • High finance cost

    medium

    Management plans to reduce debt as much as possible and save interest costs, with a goal to become debt-free this year.

    Analyst acknowledged

  • Competition from China in packaging

    low

    China was the biggest competitor, but US tariffs have opened the US market for Indian companies, turning it into an opportunity.

    Management acknowledged

Q&A highlights

8 direct
Long-term strategic roadmap (packaging vs fertilizer vs agri-input) Direct
If you will compare them, then fertilizer sector is more attractive because new products are open in India and government is continuously encouraging local manufacturing because they don't want to import fertilizer.

Clarifies the company's primary growth driver and strategic focus, indicating a shift towards the more attractive fertilizer sector for future growth.

Asked by Vinod Shah

Competitive advantage in HDPE/PP bags Direct
Sir, our competitive advantage is like for institutional buyers. All our institutional buyers are like very close to us. They are located in between them. So, to one institutional buyer, KRIBHCO, they have long-term agreement. Then we are supplying these bags to sugar mills, Tata Chemicals, other companies. All these companies are around us only.

Explains how the company maintains its position in a competitive segment despite regional players, highlighting location, uninterrupted power supply, and institutional relationships as key differentiators.

Asked by Vinod Shah

Margin improvement expectation Direct
So, the average margin, if you are asking about EBITDA margin, EBITDA margin this quarter, it is showing less because some of our raw material, our purchase was expensive in first quarter because of global scenarios like sulfuric acid. But EBITDA margin should be 17% to 19%.

Addresses the H1 margin dip and provides clear guidance for margin recovery in H2, linking it to raw material cost stabilization.

Asked by Vinod Shah

H1 FY26 margin dip reason Direct
So, one cause is like we have done capex. We are investing in capacity expansions, as we mentioned before. So, our depreciation is increased. And secondly, I was telling that globally our sulfuric acid is our major raw material. So, sulfuric acid prices have gone up drastically.

Provides specific reasons for the lower margins in H1 FY26, attributing it to increased depreciation from capex and higher raw material costs.

Asked by Disha Chordia

FY26 growth anticipation Direct
This year, because in first half, we have already touched INR100 crores. So, this year, consolidated, we will be above INR200 crores plus.

Gives a clear revenue target for the full fiscal year, indicating strong expected growth in H2.

Asked by Disha Chordia

Cost efficiencies from government initiatives at polymer unit Direct
So, ma'am, this polymer unit, which we acquired now, polyform packaging, it is in the Startup India scheme. And we have 3 years of... tax benefits. And the power cost is less. So, in Shahjahanpur, suppose our power cost is INR9.5 per unit, then here it is INR5.5 to INR6 per unit.

Details the specific financial benefits derived from the Polyform acquisition, including tax benefits and reduced power costs, which contribute to margin improvement.

Asked by Priya Jain

Capital allocation philosophy (debt reduction) Direct
we are planning an issue for completely making the company debt-free. So, we will plan it in January in which the promoters will put their stake around 70%-74% and rest 26% will ask for markets... So, whatever the debt is on the company. So, we will make it debt-free this year only.

Outlines a clear strategy for debt reduction, including a timeline and funding mechanism, which is a significant capital allocation decision.

Asked by Ishita Sen

Solar and circular economy business as revenue contributor Direct
So, green energy we are working on three products -- projects, solar energy which is for self-captive use. Biomass pellets... will be completed in next 6 months and pulp molding will be completed in another 10 months. So, both the product... will add another INR50 crores to INR60 crores to company's turnover.

Provides concrete timelines and revenue expectations for the new green energy initiatives, clarifying their contribution beyond just cost savings.

Asked by Mahesh Seth

2 min read 5 chapters

Detailed narrative

H1 FY26 Financial Performance Overview

Anya Polytech & Fertilizers Limited reported a consolidated total income of INR99.70 crores for H1 FY26, with an EBITDA of INR13.39 crores and a net profit of INR6.14 crores. The EBITDA margin stood at approximately 13.43%. Management noted that margins were impacted by increased depreciation from recent capex and a 250% surge in sulfuric acid prices during the first quarter, but expects recovery to 17-19% in H2 FY26.

Strategic Expansion and Diversification

The company is pursuing a multi-pronged growth strategy across packaging, fertilizers, and green energy. In the fertilizer sector, it aims for 30% additional capacity this year and 100% by next year, focusing on high-margin micronutrients and new NPK grades. The packaging segment benefits from the successful integration of Polyfirm Packaging, which offers tax benefits and lower power costs (INR5.5-6 per unit vs INR9.5).

Green Energy Initiatives and Revenue Streams

Anya is significantly investing in green energy, with 24 acres of solar infrastructure in Bhopal for self-captive use, aiming to reduce energy costs by INR3-4 crores. Additionally, two new projects, biomass pellets and pulp molding tableware, are expected to be completed within 6 and 10 months respectively. These projects are projected to contribute an estimated INR50-60 crores each to the company's turnover, diversifying revenue beyond cost savings.

Capital Allocation and Debt Reduction Plans

The company's capital allocation is focused on capacity expansion and new ventures, with a total FY26 capex for Anya and Arawali projected at INR7 crores, and an additional INR7-8 crores for Yara Green. The Polyform acquisition involved a capex of INR7 crores. Management announced ambitious plans to become debt-free by the end of FY26 through a forthcoming issue in January, where promoters will contribute 70-74% of the stake.

Market Dynamics and Competitive Advantage

The fertilizer sector is identified as more attractive due to government encouragement for local manufacturing and new product opportunities, with UPL partnership bringing high-margin products. In packaging, the company leverages its strategic location, uninterrupted power supply, and strong relationships with institutional buyers like KRIBHCO and Tata Chemicals for competitive advantage. The opening of the US market due to Chinese tariffs is also seen as a significant opportunity for Indian packaging companies.

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