Camlin Fine — Q4 FY26 earnings call

Call held 26 May 2026

Management summary

Camlin Fine Sciences reported Q4 FY26 revenue of INR 424 crores and full-year revenue of INR 1,723 crores, navigating significant geopolitical challenges that impacted sales and raw material costs. Despite these headwinds, the company saw improved vanillin realizations and strong growth in its Blends segment, targeting INR 1,400 crores for FY27. Strategic decisions like the liquidation of CFS Europe and the planned closure of the diphenol plant aim to improve profitability and cash flow, while management reaffirms its FY27 guidance.

Highlights

  • Q4 FY26 Revenue of INR 424 crores and total FY26 Revenue of INR 1,723 crores.

  • Vanillin realization improved from sub-$11 to over $12.5 in Q4 FY26, with further increase expected.

  • Blends business showed steady growth of 17% in FY26, with a target of >INR 1,400 crores for FY27.

  • Liquidation of CFS Europe resulted in a gain of INR 100 crores and eliminated an annual cash burn of INR 50-60 crores.

  • Straights business (TBHQ, BHA) able to pass on cost increases, maintaining market share.

Concerns

  • Sales impacted by ~20% in Q4 FY26 due to shipment delays, lack of ships, and increased freight time.

  • Q4 FY26 EBITDA was INR 21 crores (5%), impacted by Middle East crisis (INR 50 crores sales) and Vinpai EBITDA loss (INR 10 crores).

  • Raw material prices (phenol, glycolic acid, caustic) significantly increased due to geopolitical conflict.

  • Logistics and freight costs have almost tripled for American continent and are expected to remain high.

Key financials

3 periods

Headline

  • Gain on CFS Europe Liquidation
    ₹100 Cr

Q4 FY26

  • Revenue
    ₹424 Cr
  • EBITDA
    ₹21 Cr
  • EBITDA Margin
    5%

FY26

  • Total Revenue
    ₹1,723 Cr

What they filed

Q1 FY27: revenue up 16.2%, net profit down 9.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue227 205 273 191 244 +7%219 +7%184 −33%222 +16%
EBITDA14 16 33 5 18 +29%19 +19%6 −82%7 +40%
Net profit-73 -6 16 -11 -4 +95%-13 −117%-6 −137%-12 −9%
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

  • Blends Business
    ₹1,050 Cr Revenue (FY26)17% Growth (FY26)
  • Vinpai
    ₹17 Cr Revenue (Q4 FY26)₹10 Cr EBITDA Loss (Q4 FY26)

Capital allocation

high confidence
  • Debt Gross ₹670 Cr
    • New borrowing For working capital in India ₹45 Cr
    • New borrowing For Vinpai open offer ₹30 Cr
    • Repayment Knocked out Italian loan ₹85 Cr
    So last year, we had we started with around INR620 crores of debt, our business was increasing, we did take some debt in India of around INR45 crores on working capital, which is an increase. If you have seen we have also borrowed INR30 crores for our Vinpai open offer we borrowed at the year-end. On a global basis, Vinpai was added to the whole kitty this year, it was acquired. It had around INR6.5 million of loans in its book. So that was INR60 crores orders increased because of that. But however, the increase in the total loan is only INR50 crores because we knocked out around INR85 crores of Italian loan. So at the end of this year, we have around INR670 crores loan. Out of that, we are carrying INR30 crores in escrow, which is for the Vinpai open offer.
  • M&A Vinpai Acquisition · Integrated

    Growth in Blends business

    Contributed INR 17 crores revenue in Q4, but had an EBITDA loss of INR 10 crores due to liquidity issues. Expected to be above breakeven in FY27.

    Vinpai, which did INR10 crores in the first month was only able to do around INR17crores in the last three months. ... Vinpai acquisition, there was an EBITDA loss -- a loss at EBITDA level of INR10 crores, which was due to some liquidity issues which Vinpai had, which, of course, we are addressing.
  • Liquidity Liquidity disclosed Cash burn of INR 50-60 crores annually from discontinued operations (CFS Europe) will come to zero from next quarter, providing a significant cost saving. Company is seeking market support for debt to manage working capital for growth.
    One good thing about this is the cash burn on this discontinued operations of around INR50 crores, INR60 crores every year is going to come to zero from next quarter, and that's a big cost saving. ... We are looking at some kind of an support from the market on debt for the growth as well as stabilizing the current business and have some cash to tide over this conflict situation, it's better to have some cash.

Guidance & targets

Revenue

  • Blended Vanillin Realization Revenue · FY27 · High confidence $13.5 to $14
    So I think it will be around in the range of $13.5 to $14.

    — Nirmal Momaya, Managing Director

  • Overall Blends Business Revenue Revenue · FY27 · High confidence >INR 1,400 crores
    And the overall Blends business to be northwards of INR1,400 crores.

    — Nirmal Momaya, Managing Director

  • Total Revenue Revenue · FY27 · High confidence INR 2,200-2,400 crores
    So the way we are seeing it is that on the top line, we should be in the region of between INR2,200 crores to INR2,400 crores.

    — Nirmal Momaya, Managing Director

Volume

  • Vanillin Sales (US) Volume · FY27 · High confidence 2,200 to 2,400 metric ton
    So vanillin business this year, as we've said in the past, our estimate for FY 2027 in the U.S. will be around the 2,200 to 2,400 metric ton. And we are on stream to achieve that number.

    — Nirmal Momaya, Managing Director

  • Vanillin Sales (Europe) Volume · FY27 · High confidence 1,500-1,600 ton
    So, I mean, what we had said the 1,500, 1,600 ton for the year, I think we are good for that.

    — Nirmal Momaya, Managing Director

Profitability

  • Vinpai and Vitafor EBITDA Profitability · FY27 · High confidence Above breakeven
    We expect Vinpai and Vitafor to be above breakeven EBITDA in FY 2027 for sure.

    — Nirmal Momaya, Managing Director

  • EBITDA Margins Profitability · FY27 · High confidence 12-14%
    And EBITDA margins would be between 12% to 14% on an overall basis.

    — Nirmal Momaya, Managing Director

  • Chinese Losses Profitability · Next year (FY27) · High confidence Not more than INR 7-8 crores
    China still remains under liquidation, but we don't think the cost will be more than INR7 crores to INR8 crores next year.

    — Santosh Parab, Chief Financial Officer

  • Gross Margins Profitability · Q1 FY27 · Medium confidence 48% (1% up or down)
    I think we'll maintain that margin. There could be 1% up or down, but we should be able to maintain that margin. Yes.

    — Nirmal Momaya, Managing Director

What to watch in Q1 FY27

Blends Business Revenue Growth

Next quarter
Current INR 1,050 crores (FY26)
Target Progress towards >INR 1,400 crores (FY27)

Why it matters

Blends is a key growth driver, and achieving this target is crucial for overall revenue and profitability.

So in the Blends operation, we closed the year at INR1,050 crores... This year, we are looking at anything an upwards INR1,400 crores for the FY27 in the Blends business.

Risks & concerns

  • Geopolitical Conflict Impact

    high

    Sales impacted by ~20%, raw material availability and prices affected, increased freight costs, and longer working capital cycles. Uncertainty on when the situation will settle.

    This quarter, the sale was impacted by around 20% due to delay in shipments, lack of ships and increased freight time to our markets across the globe. This conflict also has affected the availability and prices of some of our raw materials.

    Management acknowledged

  • Raw Material Price Volatility

    high

    Phenol price increased from INR 85/kg to >INR 150/kg. Other raw materials like glycolic acid and caustic also doubled. Company is shifting to importing hydroquinone.

    As you know, our basic raw material prices INR85 is now being quoted at more than INR150 per kg and the availability is also not consistent. ... Catechol is only a-quarter of the raw materials, there are other raw materials as well. So for example, glycolic acid, caustic. Caustic is actually equal in value as catechol is, and that has gone up by literally doubled up in the last -- after the war situation.

    Management mitigating

  • Logistics and Freight Costs

    high

    20-day shipments now taking 40-50 days. Costs for American continent almost tripled. Expected to remain high even if geopolitical situation settles.

    See, the problem is, as you know, in the supply chain, the bigger problem is logistics. And that is very, very unpredictable because what looks like 20-day shipments are taking sometimes 40 days to come or 50 days to come. ... The cost as far as we are concerned, where we put almost a lot of material across the globe in the American continent, both north and south of it, the costs are almost three times.

    Management acknowledged

  • Competitive Pricing in Vanillin

    medium

    Competitor Syensqo is saturating the US market with low DDP pricing ($17-18), impacting Camlin's net realization (~$13). Management expects prices to increase when competitor capacity utilization reaches 100%.

    No, because the DDP pricing today in the U.S. market, our competitor, Syensqo is selling at about $17 to $18... But I think in the next quarters, they have no choice but to increase the price. And that's what we are thinking that they would look at increasing the prices to the $19 to $20.

    Management monitoring

  • Working Capital Management for Growth

    medium

    Faster turnover growth would require additional liquidity. Company is seeking market support for debt to manage working capital and growth.

    There will be some stress on if our turnover increase at a faster rate, we will require additional liquidity and additional support. We are looking at some kind of an support from the market on debt for the growth as well as stabilizing the current business and have some cash to tide over this conflict situation, it's better to have some cash.

    Management seeking funding

Q&A highlights

8 direct
Impact of phenol price increase on diphenol production and strategy Direct
So yes, we are trying to make or buy -- it's a simple thing. It's better to buy now the raw material than making it at higher cost. So you are right in that sense. And we are buying hydroquinone so that our real downstream sales of Straights and vanillin, we are able to keep that sale and at a reasonable margins than producing it at present.

Clarifies the strategic shift from internal manufacturing of diphenol components (catechol, hydroquinone) to importing hydroquinone due to high raw material costs, impacting the future of the diphenol plant.

Asked by Raman KV

Explanation of INR 85 crores gain from discontinued operations Direct
As you know, I just mentioned that we have this CFS Europe subsidiary, which was liquidated and there were certain loans in that subsidiary, which has been booked as a gain on derecognition of CFS Europe, and that's what has come. This is it's around INR95 crores of loan, but the credit to credit is lower because there are some discontinued business and the losses there, which have been adequately explained in the notes.

Provides clarity on a significant one-time gain reported in PBT, attributing it to the derecognition of loans from the liquidated CFS Europe subsidiary.

Asked by Raman KV

Vanillin sales volume and inventory management in Q4 FY26 Direct
So I'll just put the same numbers which we said we talked last in February. By that, we had done 100 ton. We said that we'll be doing 200 more ton by holding back the stock and trying to take the benefit of realization at 300 ton. And as I said, I'm still carrying around 300 ton of vanillin stock in the channel to sell in quarter 1. That's how it 600 ton works out.

Details the company's strategy of managing vanillin inventory to optimize realizations and provides insight into current stock levels and future sales plans.

Asked by Hrushikesh Shah

Impact of Middle East crisis and Vinpai acquisition on Q4 EBITDA and FY27 guidance Direct
So I explain to you. The Middle East crisis has impacted our sales by about INR50 crores or so as well as Santosh mentioned earlier in his opening remarks that the Vinpai acquisition, there was an EBITDA loss -- a loss at EBITDA level of INR10 crores, which was due to some liquidity issues which Vinpai had, which, of course, we are addressing. So if you combine these two, our EBITDA should have been higher by about INR30 crores or so. ... And we are not changing our guidance -- and we are not changing our guidance for FY 2027. We are guiding on the same line.

Quantifies the negative impact of external factors and acquisition on Q4 EBITDA and reaffirms unchanged FY27 guidance despite these challenges, indicating confidence in future performance.

Asked by Hrushikesh Shah

Debt levels, cash flow management, and capital infusion plans Direct
So at the end of this year, we have around INR670 crores loan... Capital infusion is the last resort. We are in the market for debt at this moment. So that looks like a better option. But we know that the times are difficult, and that's why we have kept that door open and you have seen that we have increased our authorized capital to some extent in the month of March. But at this moment, we are the equity infusion is really a last resort, not on the table at all.

Provides a clear picture of the company's debt position, repayment capacity, and current preference for debt over equity infusion for funding growth and managing liquidity.

Asked by Avnish Tiwari

Vanillin realization in the US market and competitor pricing strategy Direct
No, because the DDP pricing today in the U.S. market, our competitor, Syensqo is selling at about $17 to $18, so there is cost, there's a holding cost and the tariff cost and some channel financing costs. So all of that gives us net realization would probably be in the region of about $13.

Explains the discrepancy between market prices and the company's net realization, highlighting competitive pressures and the impact of tariffs and other costs on profitability.

Asked by Rehan

Outlook for Straights business (TBHQ, BHA) amidst cost increases Direct
So in the Straights business, some of the cost increases, we will be able to pass on and we are passing on TBHQ prices have corrected and gone up to reflect that. BHA pricing also is slightly better than it was pre-war. So in terms of passing on the increase of cost with a lag, we are in track to be able to pass it on. So I don't see a problem with that.

Confirms the company's ability to pass on raw material cost increases in the Straights business, indicating resilience and stable margins in this segment despite inflationary pressures.

Asked by Surya Patra

Blends business growth and targets for FY27 Direct
So in the Blends operation, we closed the year at INR1,050 crores... This year, we are looking at anything an upwards INR1,400 crores for the FY27 in the Blends business... We expect Vinpai and Vitafor to be above breakeven EBITDA in FY 2027 for sure. And the overall Blends business to be northwards of INR1,400 crores.

Provides specific growth targets for the high-growth Blends segment, including contributions from recent acquisitions, which is crucial for the company's overall growth trajectory.

Asked by Surya Patra

3 min read 6 chapters

Detailed narrative

Q4 FY26 Performance and Geopolitical Headwinds

Camlin Fine Sciences reported Q4 FY26 revenue of INR 424 crores and a total FY26 revenue of INR 1,723 crores. The quarter's sales were significantly impacted, declining by approximately 20% due to delays in shipments, lack of available vessels, and increased freight times, all exacerbated by ongoing geopolitical conflicts. This environment also led to increased raw material prices and affected working capital cycles. Q4 EBITDA stood at INR 21 crores, representing a 5% margin, which management deemed a reasonable performance given the circumstances.

Strategic Shift in Raw Material Sourcing and Diphenol Plant

In response to a drastic increase in phenol prices (from INR 85/kg to over INR 150/kg), Camlin Fine Sciences has made a strategic decision to reduce cash burn by discontinuing internal production of catechol and hydroquinone from its diphenol plant. The company will now import hydroquinone from China at a more competitive rate to support its downstream Straights business. Existing catechol stock, sufficient for 8-9 months of vanillin production, will be utilized, and a decision on repurposing or permanently closing the diphenol plant is pending.

Vanillin Business: Improved Realizations and Tariff Benefits

The vanillin segment experienced improved realizations, with prices increasing from sub-$11 to over $12.5 in Q4 FY26. This trend is expected to continue, with Q1 FY27 blended realizations projected to be in the $13.5-$14 range, primarily due to the reduction of US tariffs from 50% to 25%. The company has shifted its production focus to ethyl vanillin, with orders for approximately 300 metric tons in Q1 FY27 and a planned campaign for 600 metric tons. Management targets 2,200-2,400 metric tons of vanillin sales in the US for FY27.

Blends Segment: Strong Growth and Acquisition Contributions

The Blends business demonstrated robust growth, closing FY26 with INR 1,050 crores in revenue (including discontinued operations), representing a 17% growth rate. For FY27, Camlin Fine Sciences targets an upward revenue of INR 1,400 crores for the Blends segment. Acquisitions like Vinpai and Vitafor are expected to contribute positively, with both projected to achieve above breakeven EBITDA in FY27, supported by strategic investments in expanding the global sales force.

Capital Allocation and Liquidity Enhancement

The company ended FY26 with approximately INR 670 crores in debt, with an estimated consolidated repayment of INR 60-70 crores for FY27, which management deems manageable. A significant one-time gain of INR 100 crores was booked in Q4 FY26 from the liquidation of CFS Europe, which will also eliminate an annual cash burn of INR 50-60 crores from next quarter. While authorized capital was increased, the company prioritizes debt over equity infusion for funding growth and managing liquidity, actively seeking market support for debt.

FY27 Outlook and Cost Management

Camlin Fine Sciences projects FY27 revenue to be between INR 2,200-2,400 crores, with EBITDA margins targeted in the 12-14% range. Despite significant increases in raw material costs (phenol, glycolic acid, caustic) and tripling of logistics costs for American shipments, management expects to maintain overall cost control. The company believes it can pass on most cost increases in its Straights business and is exploring making its plant multipurpose to further reduce raw material costs.

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