June 5, 2026
Transcript of Earnings Call Q4 FY 2025-26
To Date
June 05, 2026
The Manager The Manager
BSE Limited National Stock Exchange of India Limited
P. J. Towers, Dalal Street Exchange Plaza, Bandra Kurla Complex
Mumbai-400001(BSE Bandra (E), Mumbai- 400051
Scrip Code
543389) (NSE Symbol: SIGACHI)
Dear Sir/Madam,
Sub
Transcript of the Earnings Call for Q4 FY 2025-26 Results
Unit
Sigachi Industries Limited
In continuation to our letter dated May 30, 2026 audio recording of Q4 FY 2025-26 earnings call, please find attached herewith the transcript of the earnings call held on Saturday, May 30, 2026 at 4:30 PM IST.
The same is also available on the company's website at www.sigachi.com
Request you to kindly take the same on record.
Thanking You,
Yours faithfully
For Sigachi Industries Limited
Vivek Kumar
Company Secretary & Compliance Officer
Sigachi Industries Limited
Q4 & FY26 Earnings Conference Call
Event Date/Time : 30/05/2026, 16.30 Hrs. IST
CORPORATE PARTICIPANTS
Mr Amit Raj Sinha
MD & CEO
Mr O.S. Reddy
CFO
Ms Riddhi Shah
Go India Advisors
Moderator
Good evening, ladies and gentlemen. I'm Akash, moderator for the conference call. Welcome to Sigachi Industries Limited Q4 and FY26 Earnings Conference Call hosted by Go India Advisors. As a reminder, all participants will be in listen-only mode, and there'll be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * and then 0 on a touch-tone telephone. Please note, this conference is being recorded.
I would now like to hand over the floor to Ms. Riddhi Shah from Go India Advisors. Thank you, and over to you, ma'am.
Riddhi Shah
Thank you, Akash. Good afternoon, everyone. It's my pleasure to welcome you on behalf of
Sigachi Industries Limited. Thank you for joining us today for Q4 and FY26 earnings call. We have on the call Mr. Amit Raj Sinha, Managing Director and Chief Executive Officer; Mr. O.S. Reddy, Chief Financial
Officer and Mr. Vivek Kumar, Company Secretary and Compliance Officer. Please note that the today's
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Q4 FY26 Investor Conference Call 30/05/2026 discussion may include certain forward-looking statements, and must therefore be viewed in conjunction with the risks that the company faces.
I will now like to hand it over to the management for opening remarks. Thank you and over to you, sir.
Amit Raj Sinha
Thank you. Good afternoon, everyone. Welcome to the Q4 FY26 Earnings Conference Call of Sigachi Industries Limited. The financial results and investor presentation have been uploaded on the stock exchanges. I hope everyone had opportunity to review them.
FY26 was a year of challenge, reflection and decisive action for Sigachi. For the past several quarters, our focus has remained firmly on execution, operational discipline, and reinforcing the foundations required for sustainable long-term growth. Today, the company is operating with stable business continuity, continued customer engagement, and steady progress across its strategic priorities.
The efforts undertaken over the course of the year have been directed not only towards maintaining operational continuity, but also towards strengthening the organizational structurally through sharper oversight, stronger systems and greater execution discipline across functions. These remain important priorities for us as we continue to build a more resilient and future-ready organization. During Q4, our operations remained stable and customer engagement continued to be healthy across geographies.
Our cellulose-based excipient sale quantities stood at 14,857 metric tons with nearly 82% capacity utilization. The 12,000 metric tons per-annum MCC capacity project at Dahej, continues to progress in line with planned timelines and upon commissioning is expected to increase our total cellulose-based excipient capacity to 30,000 metric tons per annum by Q4 FY27. In parallel, the 1,800-ton CCS facility at the same location, Dahej SEZ is also progressing steadily and will support our strategy of expanding into higher-value excipients categories and strengthening our overall product mix.
The API R&D center continues to strengthen our development and regulatory capabilities while progressing on the CEP filing supports our long-term expansion into the regulated markets. Our O&M vertical remains a steady contributor and continues to evolve as a scalable service platform aligned with long-term growth priorities.
We have also continue to strengthen our organizational leadership and people capabilities. During the quarter, we welcomed Mr. Atul Dhavle as the Chief People Officer whose experience in building scalable organizations and leadership systems will support Sigachi's next phase of growth. As we move into FY27, our priorities remain centered around operational discipline, execution of key expansion projects, strengthening our product portfolio and improving profitability through consistent and focused execution.
To our employees, customers, partners, lenders, and shareholders, thank you for your continued trust and support through a demanding year. Your confidence in this organization has been important to us and we are committed to honoring it through what we deliver in the quarters ahead. With that, I now
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Q4 FY26 Investor Conference Call 30/05/2026 invite our CFO, Mr. O.S. Reddy to take you through the financials and operational highlights for Q4 FY26.
Thank you.
O.S. Reddy
Thank you, sir, and good afternoon, everyone. During Q4 FY26, Sigachi reported total operating income of INR 121.89 crores, EBITDA for the quarter stood at INR 15.4 crores with a margin of
12.63%. Net profit came in at INR 7.6 crores translating to a PAT margin of 6.23%. The MCC segment contributed INR 85.33 crores, while the O&M and API segments recorded revenues of INR 14.63 crores and INR 17.06 crores respectively. Guidance for FY27, we expect revenue to be in the range of INR 650-
675 crores with an EBITDA margin of around 18-20%, supported by incremental capacities from Dahej and
Jhagadia and an improved product mix through the year. That concludes my updates. Now we can open the floor for questions. Thank you.
Moderator
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press * and 1 on your telephone keypad, and wait for your turn to ask the question. If you like to withdraw your request, you may do so by pressing * and 1 again. In the interest for a and fair chance for all, we request the participants to restrict themselves with three questions initially and follow the queue for more question. The first question comes from the line of Mr. Darshil Jhaveri from
Crown Capital. Please go ahead, sir.
Darshil Jhaveri
Hello. Good evening, sir. Thank you so much for taking my question. Firstly, congratulations on a great set of results, sir. Sir, just wanted to understand, we've given a very clear-cut guidance for FY27. But in FY27, our CapEx are not coming online in the start of the year, right? It's going to come towards the end. So how do you see FY28 going forward when we have the full capacity of Dahej and the CCS coming online. So, what do you can see in terms of extra revenue coming in, sir?
O.S. Reddy
Yeah. Thank you, Darshil. The additional revenues come from the Dahej and Jhagadia, the enhanced capacities. And also, API, we are expecting a good growth, and also the continued O&M expansion, every year, it is giving a good growth. This year, that's why that is only around 650 to 675, only is the range we expected because the expanded capacities of 12,000 metric tons from the H2, that is a new facility, which is expected to come by end of the FY27, though. In meanwhile, the existing the Dahej and Jhagadia capacities are going to increase and also API and going up. Because of that, we can achieve.
Darshil Jhaveri
Hello? Yeah. So sorry, sir. Yeah.
O.S. Reddy
Yeah. Thank you, Darshan.
Darshil Jhaveri
Yeah. Hello?
O.S. Reddy
Hello. Yes.
Darshil Jhaveri
Yeah. So, sir, I just wanted to understand. So next year, once the full thing comes in, so we are going from current 18,000 to additional 12,000 capacity we are adding. So, can we see in terms of
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Q4 FY26 Investor Conference Call 30/05/2026 the 65% sample, I think, we are targeting, right? So that would also mean, Around the 40% growth in just volume tonnage. So, can we see a corresponding growth in revenue in FY28, sir?
O.S. Reddy
Yes, yes. We can.
Amit Raj Sinha
Darshan, yes, of course, we will see that. But I would just to tell you that the first quarter of the next financial year, the ramp up will not be at absolute 100%. The capacity utilization gradually moves up QoQ. So the Q1 will probably be at 30%. Q2 will gradually probably move at 40, 45, or 50, and likewise for the last two quarters for the new facility.
Darshil Jhaveri
Okay. Fair enough, sir. And, sir, just wanted to understand, in our current year FY27, sir, do we have any seasonality? Because how do you see that our revenue, in terms of H1 and H2? Because, usually, we have a very steady run rate. So, you can expect the INR 650 crores to be very steady.
O.S. Reddy
In the second half, that would be more. Q2 is more than Q1. Q2 always – sorry, H2 is always higher than H1.
Darshil Jhaveri
Okay. Okay.
O.S. Reddy
And so, it will ramp up is.
Darshil Jhaveri
Yeah. And, sir, with regards to margin, sir, when we are saying 18-20% right now, I think we are around 7%. So, again, H2 will be towards the higher end of margin or at least the margin we can start seeing from Q1 itself, sir?
O.S. Reddy
In H2, that will be more. Even if you observe Q4, Q4 margins are better around 13-14% is there.
Darshil Jhaveri
Yeah.
O.S. Reddy
That will, in the Q1 of FY27, Q2, gradually it will move on -- It will increase. At the end, we are expecting around 18-20%.
Darshil Jhaveri
Okay. I have more questions. I'll just join back in the queue. Thank you.
O.S. Reddy
Thanks, Darshil.
Moderator
Thank you so much, sir. The next question comes from the line of Mr. Syed Nawaz, an
Individual Investor. Please go ahead, sir.
Syed Nawaz
Thank you so much. Sir, I have questions regarding the insurance proceeds for Sigachi. In the last earnings call, I guess, we were informed that the insurance proceeds will be processed by March 31.
So, what is the status on the insurance claims, and how is it going?
O.S. Reddy
Yeah. Thank you, Syed Nawaz. This we expected in during by March, but there is a slight delay in the procedure. And now it is in a moment some discussions are going on. By end of maybe around 25th
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Q4 FY26 Investor Conference Call 30/05/2026 or 30th of June, we are expecting some ad hoc amount. And later on, that will be settled. Now discussions are actively on.
Syed Nawaz
Okay. Another question that I have is regarding the API thing, which happened for cystic fibrosis. So, the target was originally that by Q4 FY27, this would be operational, and we would see revenue coming from this aspect as well. So, what is the status on that project, sir? If you could help guide us with that, please.
O.S. Reddy
Yes. The cystic fibrosis, during this year, we thought of the filings, and, anyway, this is patent is going to, patent is under till 2039 by the innovator, and we have cracked the chemistry and the application that this year we can file, go for the filing this current year.
Syed Nawaz
Okay. So, will the production start this year only, or how is it going to be?
O.S. Reddy
The R&D-level, it's over. And then after filing, then we'll discuss with the innovator, and then after that we'll come to know exactly what when we'll start.
Syed Nawaz
Okay. Alright. Thank you so much. And also, last question, sir, regarding the normalcy in the margins and all because before the accident happened, the margins were in the range of 15-20%, EBITDA margins I'm talking about. So, by what time can we expect the normalcy to return in the business? Because it was very unfortunate that it happened. But for the future course, what do we think? What would be the duration by when we can attain the same numbers again?
Moderator
Sorry to interrupt, Syed, sir. We would request you to join back the queue for more questions, sir.
Syed Nawaz
Okay. Sure.
Moderator
Thank you so much, sir. We have the next question from Mr. Vats Jain, an Individual Investor.
Please go ahead, sir.
Vats Jain
Hi. Thanks for providing me this opportunity. I had a few questions regarding the API facility.
So, for FY26, what is the current utilization level of the Grandmax API facility?
O.S. Reddy
Around 65-70% is there.
Vats Jain
Okay. Another question I had how does the management is planning to fund robust CapEx initiatives? Like it could be an internal or an external fundraising?
O.S. Reddy
Some internal accruals and also the fundraising also, just it is under discussions. Either we go for fundraising fresh or otherwise, we go for the term loan.
Vats Jain
Okay. Do we have any guidance around that?
O.S. Reddy
Yeah. Yeah. At appropriate time, we'll disclose it. Right now, that is in a fluid stage.
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Vats Jain
Okay. Thanks for that. And another question I had. So, when is the CCS facility expected to be commercialized?
O.S. Reddy
CCS facility is expected to be commercialized by maybe the first quarter of FY28.
Vats Jain
Okay. Do we have any specific timeline around that, maybe a QoQ thing or H1 time?
O.S. Reddy
This QoQ, that is expected in FY28, first quarter. And then the commercialization also, it happens immediately, the revenue is also expected to achieve it from that. And by end of FY27, we are going to the COD will come for MCC 12,000 metric tons capacity.
Vats Jain
Okay. Thanks for this.
O.S. Reddy
Thank you.
Moderator
Thank you so much, sir. The next question comes from the line of Mr. Avnish Burman from
Vaikarya. Please go ahead, sir.
Avnish Burman
Hi, good evening. Amit, just a couple of questions. One, your FY27 guidance seems to be pretty strong at about 35% growth. Out of this, what kind of growth are you expecting from MCC? Hello?
Amit Raj Sinha
Yes. I understood that. So currently, the capacity utilization is at around 60%. I believe we should be able to take it to a comfortable near 95, 97% on this. Rest of the growth would come in from the API, the O&M, and the other verticals of food and nutrition.
Avnish Burman
Okay. Just help me understand this, please. So, after the accident, I would have assumed that some of your customers would have shifted to the competition. And also, in my understanding, this was a very sticky business, because the cost of the as a percentage of the cost of, let's say, the tablet is very, very low. So, unless you have a really good reason to shift to another supplier, the customer doesn't really want to shift. You know, it's a bit of a headache for us to shift.
Now because of the accident, if some of your customers have shifted to the competition, the guidance means that you are very confident of getting those customers back. So how is that happening? If could just give some qualitative color on that.
Amit Raj Sinha
So see, I'll tell you the catch point here is that the customers are definitely sticky. There is no second thoughts on that. However, because this is a very small percentage of the total purchase for a formulation mix. The APIs probably a big bigger chunk, 60-70% of the cost. The formulation guys always have Vendor 1, Vendor 2, Vendor 3.
And the second and the third vendors are usually kept dormant. And when there's a situation across the supplier, they kind of reactivate the Vendor 2 and the Vendor 3. So, what has happened is that we continue to be the approved supplier across our customers. Among some of them, where the demand continues to be high, they have moved on to Vendor 2, because we have not been able to supply them because of loss of capacity.
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But I believe because of the kind of relations we maintain, because of the kind of the length of relations which is there with them. The moment we have our products back on track, we will be among the preferred vendors, and we will get back our volumes.
Avnish Burman
So how I'm understanding is that because of the non-supply, you move to Vendor 2. But as soon as your supplies will come back, you will be given a priority to be moved back to Vendor 1 because of your relationship. Is that how we should see this?
Amit Raj Sinha
Yes, Avnish. That's right.
Avnish Burman
Okay. Great. I'll get that.
Amit Raj Sinha
Sure. Thank you.
Moderator
Thank you, sir. We have the next question from Mr. Ganesh Prasad, an Individual Investor.
Please go ahead, sir.
Ganesh Prasad
How are you Sir? Sir, Somewhere the report is coming that the Insurance we had for our
Hyderabad facility was an under insurance, Is that right sir?
O.S. Reddy
No, no. Hi, Ganesh. There is no under-insurance that is perfectly insured.
Ganesh Prasad
And till when this plant earning be accrued sir?
Amit Raj Sinha
So, Ganesh, that is not our focus right nowour focus is not that because, we have land available. We focused everything back on the other facility wherein we started fresh, and we are already building up on the 12,000 metric tons capacity, double of the Hyderabad capacity. Because it is under legal issues, we didn't want to really delay it because in case we get we pump in money and it gets stuck on some legal issue, unnecessarily time and resources will be wasted. So Sigachi had land at Dahej SEZ, and project has already commenced some time back.
Ganesh Prasad
It's a very wise move. Thank you.
Amit Raj Sinha
Thank you, Ganesh.
Moderator
Thank you so much, sir. The next question comes from the line of Mr. Vasu Goenka, an
Individual Investor. Please go ahead, sir. Yes.
Vasu Goenka
Hi. So good afternoon to everyone, and thank you for taking the question. So, I have two questions from early. One is that what is the API revenue bifurcation for next year? How much we are expecting that the API revenue will be?
O.S. Reddy
PLI. Thank you, Vasu Goenka. Another INR 10 crores we are expecting in next financial year,
INR 8-10 crores. It depends on --
Vasu Goenka
And what is the growth rate we expected?
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O.S. Reddy
Growth rate in PLI, you're asking? Production Link --
Vasu Goenka
Not the PLI, sir, API. You're the API segment.
O.S. Reddy
Yeah. API, we are expecting around this year, we have achieved around INR 60 crores. Next year, we are going to achieve around more than INR 100 crores.
Vasu Goenka
Great. Okay. And my second question is regards to the promoter shareholding. The promoter shareholding has been declining for last two years almost. So, is there any chance that this number will ramp up soon?
O.S. Reddy
Yes. We are expecting promoters are intended to increase their shareholding. It will not come down at least, and gradually, it will go up.
Vasu Goenka
So will it be back to the accident timelines, the same 48-49%?
O.S. Reddy
Yeah. That is the intention of the promoter. So gradually, it will go up.
Vasu Goenka
Okay. And my last question is that, is there any legal repercussion which is from the
Hyderabad plant, which we explained that something out of the blue can happen on that proportions?
O.S. Reddy
For Hyderabad production, anyway, it takes some time. In the expansion also, we have taken apart our Dahej facility. This will take in near terms, maybe after six months, we'll get clarity on that.
Vasu Goenka
But my question is on the legal repercussions. Will there any kind of penalty or something that?
O.S. Reddy
Yeah. Anyway, that is under court, and it is the matter is under sub judice. We don't, yes. We don't expect any.
Vasu Goenka
Alright. Thank you so much. I have few more questions. I will be on in line.
O.S. Reddy
Thank you also.
Moderator
Thank you so much, sir. We have a question from Mr. Paramjeet Singh, an Individual Investor.
Please go ahead, sir.
Paramjeet Singh
Yeah. Good afternoon, Mr. Amit and the team. Sir, my question is regarding your
Hyderabad facility. Do you still have any liability with respect to that? Do we see some exceptional losses coming up because of that facility in FY27?
O.S. Reddy
Yeah. Thank you, Paramjeet. As far as we our expectations, we have fully provided the provision. In fact, some reversal would be there, and we hope there would not be any additional surprises or expectations. We have provided full provision.
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Paramjeet Singh
Okay, sir. And in future, do you have any plans to restart that plant? I know it is under as a matter of sub judice, and it may take its own time. But do you have anything come one year down the line, we will restart this plant, or you're going trying to shut down this facility?
Amit Raj Sinha
Mr. Paramjeet, we will take the appropriate decision once the matter is cleared by the court. Till the matter is in the court, we can keep having thoughts, but it might not really turn around the way we want it. So, we are just waiting for the matters to get cleared from the court. Once it is cleared from the court, I think we will see in the bigger interest of the long-term growth as to what is the best options available, and we will go ahead with that option.
Paramjeet Singh
Okay. Alright. Got it. So matters in the court typically takes, I mean, what is your assessment and analysis, sir, I mean, will it be kind of fully cleaned and clear in one year's time? Or you have some data on that?
Amit Raj Sinha
Paramjeet sir, the matter is sub judice, so I think less spoken, the better, sir.
Paramjeet Singh
Yeah. Got it. Alright, sir.
Amit Raj Sinha
Thank you, sir. Thank you.
Moderator
Thank you so much, sir. The next question is a follow-up question from Mr. Vasu Goenka, an
Individual Investor. Please go ahead,
Vasu Goenka
sir. Yes. So, another question is in regards to the current debt obligation. It stands at INR
145 crore as of now. So do we see this debt repayment and what will be the structure on the same?
O.S. Reddy
Yes. Thank you, Vasu. This as of now, we don't have any long-term debt. This is only towards the working-capital debt only. Other than that, we don't have any long-term debt.
Vasu Goenka
Okay. Lastly, how about the current capacity utilization for MCC? Is it only, it was upwards of 75-80%? How is it going now?
O.S. Reddy
Now also as of now, as on 31st March, it is around 75-80% only. But going forward, it will increase in this year. In this quarter, already started. That will increase. And also further, at the end of the year, we are expecting another 12,000 metric tons.
Vasu Goenka
Alright. Thank you so much. Thank you so much for your answers.
O.S. Reddy
Thank you, Vasu sir.
Moderator
Thank you so much, sir. The next question comes from the line of Mr. Ravi Kumar Kantipudi from Indian Overseas Bank. Please go ahead, sir.
Ravi Kumar Kantipudi
Sir, what is the percentage of exports to in our total turnover and to how many countries, sir? And what is the prospectus that our products to export, export to turnover, how much?
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O.S. Reddy
Yes, sir. Thank you, Mr. Ravi Kumar. The export turnover for FY26 is around 65% and we are exporting total in our portfolio around 60 plus countries are there. Actively, we supply the major chunk will go to the USA and neighboring countries and European and other countries also. Around total, 60 countries are there in our portfolio.
Ravi Kumar Kantipudi
Okay, sir. But our performance will not be reflecting in the market seeing or, why?
O.S. Reddy
Yes. Because of this disturbance in June, the Hyderabad incident after that, there are even, because of in last quarter, geopolitical situations also, the exports didn't happen. That's why the exports percentage also it has come down for the entire year. Last year it was around 72%.
It has come down to around 65% because in February and March, the exports didn't happen, domestically we have sold. That is one of the reasons for reduction. And after post incident, there was additional expenditure we have incurred because of that the profitability has come down, and the business also, it has come down a little. But again, we expect that it will go again back to normalcy. We'll ramp up.
Ravi Kumar Kantipudi
Okay, sir. Thank you very much.
O.S. Reddy
Thank you, sir.
Moderator
Thank you so much, sir. The next question is a follow-up question from Mr. Syed Nawaz, an
Individual Investor. Please go ahead, sir.
Syed Nawaz
Thank you so much, sir. Sir, I have the question regarding the normalcy in business. So basically, as I previously mentioned that before the incident happened, the margins were at the range of
15-20%. And after the incident, again, the margins fell down to singular digits. So, when do we expect this normalcy to come back in the business? And basically, when would we get to see the same operating margins and the net profit margins again?
O.S. Reddy
Yes, yes. Gradually, it is increasing. The main reason for reduction in profits post incident is we have the safety audits and internal audits, external audits and customer audits and safety precautions taken and because of the war rates increased and production also it didn't increase. Because of that, there was a drop in the margins. But gradually from this year, it will go up and maybe we are expecting by FY27 or mid of FY28, it will come to complete normalcy.
Syed Nawaz
Okay. Thank you so much, sir.
O.S. Reddy
Thank you, sir.
Moderator
Thank you so much, sir. The next question comes from the line of Mr. Vats Jain, an Individual
Investor. It's a follow-up question. Please go ahead, sir.
Vats Jain
Hello, sir. Thank you. Just had another question. What is the status of JV in the Middle East?
And, are we getting any revenue from that any guidance from management on that?
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O.S. Reddy
Thank you, Jain. Because that present keeping you of the present global situation, sir. We just kept it on hold. Maybe after it comes to normalcy, the global war and all international situations, maybe after six months, we'll come some clarity. Right now, we have kept it on hold.
Vats Jain
Okay, sir. So, what timeline can we expect it to resume?
O.S. Reddy
Maybe another six months.
Vats Jain
Okay, sir. Got it. Thank you.
Vats Jain
Thank you.
Moderator
Thank you so much, sir. Next, we have a follow-up question from Mr. Vasu Goenka, an
Individual Investor. Please go ahead, sir.
Vasu Goenka
Yes. Thank you so much. Probably, so just want to understand, as earlier informed, the APIs
INR 100 crores. Number was INR 100 crores. Can you specify the percentage of the total revenue? Earlier, it was mentioned it will be 12%. So, are we still aligning for 12% or more than that?
O.S. Reddy
It will go. This year, the percentage of API is 14%, and MCC contributed 70%, and O&M contributed 12%, API 14% and other are 4%. This year, API contribution, it will go up maybe around 18% up to nearly 20%. It will go up.
Vasu Goenka
All right, sir. Okay. And lastly, is there an option available to get the physical annual report, the hard copy?
O.S. Reddy
Yes. Okay. We'll -- anyway, the soft copy is available, but okay.
Amit Raj Sinha
You can send in an email – Vasu, you could send in an email on the [email protected], and if your address, of course, and in the needful would be done, not at all an issue.
Vasu Goenka
Alright, sir. Thank you so much, sir. Thank you.
O.S. Reddy
Sure. Sure.
Moderator
Thank you so much, sir. We have a follow-up question from Paramjeet Singh and the
Individual Investor. Please go ahead, sir.
Paramjeet Singh
Yes, sir. Thanks for the opportunity again. My question is, what are your CapEx plan for
FY27 and the distribution of the same?
O.S. Reddy
Yes, sir. Thank you, Paramjeet. This CapEx, MCC 12,000 metric tons capacity expansion is going on at the H2 and also the CCS. MCC 12,000 metric tons, the CapEx is INR 106 crores, and CCS total project cost is around INR 90 crores.
Paramjeet Singh
And this would all be done this year, or some of it is already kind of taken care of?
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O.S. Reddy
Yeah. Already this year and next year, maybe first quarter also, some of the amount will be there, CCS.
Paramjeet Singh
Okay, sir. And the way you are expanding, is it kind of okay to expect, let's say, INR 1,000 crores turnover in FY28?
O.S. Reddy
Not in FY28. Okay, anyway, this is futuristic, but next year, we'll get more clarity. But definitely, we'll reach INR 1000 crores in not in FY28, I mean, maybe FY29 or so, we hope.
Paramjeet Singh
Okay, sir. Thank you very much.
Moderator
Thank you so much, sir. The next question comes from the line of Mr. Raj Bora, an Individual
Investor. Please go ahead, sir.
Raj Bora
Hello. Sir, congratulations for the results. I wanted to know one thing that, what are the plans for debt reduction of the management?
O.S. Reddy
Debt reduction?
Raj Bora
Yeah.
O.S. Reddy
Debt reduction already -- now, it is showing as around INR 4 crores shares were pledged, but the debt outstanding is around INR 13 crores or so is there.
Raj Bora
Okay.
O.S. Reddy
Gradually, it is coming down, and then that will come down further by end of this year. And then gradually , as and when there is a need, then they will source, they will bring the funds, and then that can be paid off.
Raj Bora
Okay, sir. And also, recently, there was a decrease in the credit rating. So, what were the management plans and opinions on the same?
O.S. Reddy
Yeah. Post incident, there is a reduction in profit. That's why all of sudden, there was a reduction in grade. This thing, degrading or downgrading of the rating. But gradually, we hope that will go up again. This year, Q4 profits are good, and even we are expecting in coming quarters, the profits will be good and the performance also, we are expecting it to be -- and then we expect that some rating improvements.
Raj Bora
Okay, great. Thank you. Congratulations for your results.
O.S. Reddy
Thank you.
Moderator
Thank you so much, sir. We have a follow-up question from Mr. Avnish Burman from Vaikarya.
Please go ahead, sir.
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Avnish Burman
Hi. Thanks for the follow-up. Amit, two questions again. One on the CCS, if you can give some color the time line that we hope to commercialize. And also, if you can give me just by giving your competitors balance sheet that it's a higher margin product.
So do you make much higher margins here, or do you think you have to be a little aggressive on the pricing to pull in some customers? And then and what kind of margins will you make on this?
O.S. Reddy
Hello. Yeah, Avnish. This CCS, but it gives higher profits, superior in excipient. And the price is, when we compare to MCC, almost two to three times higher than the MCC, and margins also on higher side. We expect that there is even now also, we are receiving inquiries and some of the customers are asking us to dispatch the CCS along with MCC. We are seeing a good demand for this also, and it gives good top-line as well as the bottom-line also. Margin contribution would be we are expecting that it.
Avnish Burman
So can we expect a much higher EBITDA margin than 20% that you make on this?
O.S. Reddy
Yes. Yes. Even this CCS, that would be even higher than that, around more than 20%.
Avnish Burman
More than 20%, right?
O.S. Reddy
Yes. Yes.
Avnish Burman
And what are the time line? When do you expect to commercialize?
O.S. Reddy
Q1 of FY28.
Avnish Burman
Q1 of FY28. Yes, right. That answers the first question. Second, as for the guidance of
FY27, the revenue and the margin guidance [inaudible 0:36:32] EBITDA margin, so, based on trying to grow? Or is it, like, how does it work? I mean, do the POs get signed for one year and then your confidence level is very, very high on achieving that INR 650 crore number? Or you are hoping to maybe get there during the course of the year?
O.S. Reddy
Yeah. During already, we have some clients, some business talks up there. And also, we are expecting the additional contributions from API and the capacities from Dahej and Jhagadia will be increased. We expect that from all these activities, we hope we’ll achieve that 650-675 top-line with
EBITDA margins of around 18-20%. Yeah. The major contributors are APA is there, the expanded capacities from Dahej and Jhagadia. And of course, the 12,000 metric tons, it comes in the last quarter. But all these put together, we can.
Moderator
Thank you so much, sir. The next question comes from the line of Mr. Raghav Rathi from
Quadrant Holdings.
Raghav Rathi
Good evening and thank you the opportunity. First of all, I would like to appreciate the management in taking initiative steps to getting back to normalcy after the fire incident. So my question is, in the coming two to three years, what I understand from the market is that demand for our product is
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O.S. Reddy
Thank you, Raghav. As we keep on, gradually, we keep on increasing capacities. So, anyway, market demand is there. And so long as demand is there, we have to increase the capacities. We are in the plans of increasing the capacities.
Raghav Rathi
How much it is required to take our capacity to somewhere, like, around 50,000 metric tons? And do we have enough land for it, or do we have land that we are picking up to reach there?
O.S. Reddy
Yes, Raghav. This 12,000 metric tons capacity at Dahej H2, there is a CapEx of around INR 106 crores. In Dahej, we have 20 acres of land is available. And in Kurnool, we have 25 acres of land is available.
There is enough land available. And going forward, we keep on increasing the situation, depending upon the requirement. And we also analyze the market for it.
Raghav Rathi
And what will be our vision for -- where do we see our revenue and capacities by '28 or '29, probably the next two, three years?
O.S. Reddy
Yeah. For the next one year, anyway, these 12,000 metric tons, MCC and CCS also with 19% of CapEx, it is coming up. And later on, we'll announce at appropriate time, what is the next expansion.
But we expect there is expansion plans out there.
Raghav Rathi
Thank you for answering your question, sir. All the best, Reddy sir.
O.S. Reddy
Thank you. Thank you, sir.
Moderator
Thank you so much, sir. The next question comes from the line of Mr. Darshil Jhaveri from
Crown Capital. It's a follow-up question. Please go ahead, sir.
Darshil Jhaveri
Hello. Thank you so much for letting me ask the question again, sir. So just wanted to know, I think total around you're doing INR 200 crores CapEx, right? So, you said we might do a 100 and some debt. So do we have any rough mix of, you know, how much you want to fund raise, how much you want to use from debt, how much you want to increase at PAT level, sir?
O.S. Reddy
Yeah. Right now, as I have already indicated, that is -- what is the portion of fundraising through equity or debt. Some it may be a combination, but we'll announce at appropriate time. Right now, that is in fluid stage, some internal accruals and some the term loan would be there. The other one maybe from equity. We'll announce it, once we form our resolution.
Darshil Jhaveri
Yeah. So just wanted to understand, once the full capacity of CCS and the MCC come into play, What's the peak revenue we can generate from this, sir?
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O.S. Reddy
Yes. So, these 12,000 metric tons, almost around INR 200-220 crores. So, the revenue, is expected. And from CCS, it is around INR 100 crores of revenue we can expect. And further, there are other clients also out there to increase revenues.
Darshil Jhaveri
Okay.
O.S. Reddy
Apart from this existing, yes.
Darshil Jhaveri
That's fair enough, sir. Yeah, that's it from my side. Thank you so much, sir.
O.S. Reddy
Thank you, sir.
Moderator
Thank you so much, sir. We have a follow-up question from Mr. Paramjeet Singh, an Individual
Investor. Please go ahead, sir.
Paramjeet Singh
Yes, sir. One more question that I have is, what is your CCS utilization across the Dahej and Jhagadia plant in Q4?
O.S. Reddy
CCS utilization, you are talking about? CCS, to come up in Q1 of FY28.
Paramjeet Singh
No. Sorry, sorry. MCC, I mean.
O.S. Reddy
Yeah. MCC, now the utilization is around 75-80%.
Paramjeet Singh
Okay. Sir, I may be missing something, but you had your plant in Hyderabad getting shut down. And whatever were the requirements, obviously, you would like to push it to your other plant in
Dahej and Jhagadia for MCC. But still, your utilization was 75%, right? I mean, any specific reason or constraint that help you not to move that utilization to somewhere in 90-95%? And what makes you think that this year, it can become 90-95%?
O.S. Reddy
Yes. Post-accident, we had more concentrated on safety norms and safety protocols, safety equipment, and safety audits, internal and external audits. We concentrated more on that. That is the reason, the production side, it is under-utilization is there. But from this quarter onwards, it will go up.
We concentrate on different side, yes.
Paramjeet Singh
So, this year, you are confident, sir, that utilization will be north of 90%?
O.S. Reddy
Yes. Yes. It will go up.
Paramjeet Singh
Okay. One more thing. So, give us a color of your EBITDA margin across your different revenue streams that you have, including the API, O&M, and everything? How is the EBITDA margin profile across different revenue streams?
O.S. Reddy
Yeah. The EBITDA margins, end up more steadily. It is around 21-22%. And the MCC, it is this time, it has come down post-accident. Otherwise, it will give from -- API, we are expecting more from this year, around 20-plus.
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But MCC, gradually, it will increase. Right now, this quarter, we had achieved around 13-14%, including other income, everything put in there, around 14.58%. If we separate the other income, then it is around
12.5-13% is there. And MCC also, it will go gradually. And API, we are expecting good.
O&M, as I said, that is around 21-22%. This year, we are expecting that O&M income, from O&M also, it will increase further.
Paramjeet Singh
Okay. Thank you, sir. All the best.
O.S. Reddy
Thank you, sir.
Moderator
Thank you so much, sir. The next question is from Mr. Vasu Goenka, an Indian Investor. It's a follow-up question, sir.
Vasu Goenka
Yes. Thank you so much for letting me ask another one. Just want to understand that, is there any PLI scheme again coming up for the concerned MCC?
O.S. Reddy
Which one? Can you please repeat? I missed.
Vasu Goenka
So there was a PLI scheme, the income which we have received last year. Is there any proceeds available for this year as well?
O.S. Reddy
Yes. This year also, we are expecting around INR 8-10 crores, it is expected to receive.
Vasu Goenka
Okay. And secondly, basically looking after the statements. So, there was some assets, which is like declining, the other asset section. And it has declined by a good percentage. So can you specify this?
O.S. Reddy
The assets, sir, because the insurance after the accident, we have written off those assets.
And anyway, however, we are expecting insurance claim for that.
Vasu Goenka
Okay, sir. And regarding this insurance thing, is there any caveat out there that there are certain degrees that the amount was of INR 60 crores? So is that amount is still INR 60 crores? Or, is there chances that this number will decrease?
O.S. Reddy
Yes. Total, around INR 49 crores towards the fixed-asset loss and inventory loss of around INR
4.5 crores, total INR 53.5 crores. And also, apart from this, we are expecting business-interruption loss.
We have a policy for INR 25 crores, and we are expecting around INR 16.5 crores. This starts after the end of 12 months. After 30th June FY26, they'll review.
Vasu Goenka
Okay. So, there's no caveat to it? Any other claimed or unclaimed issues?
O.S. Reddy
Yeah. Right now, it is expected to receive, and then it is in our favor.
Vasu Goenka
Alright. Thank you so much.
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O.S. Reddy
Thank you.
Moderator
Thank you so much, sir. That would be the last question for the day, sir. Now I hand over the floor to the management for closing comments.
Amit Raj Sinha
Thank you. As we conclude, I would like to reiterate that Sigachi enters FY27 with stable operations, expansion projects progressing in line with the plans, and an organization that has been meaningfully strengthened over the course of the past one year. Our strategic direction remains unchanged, expanding capacity, improving our product mix and delivering consistent and profitable growth through disciplined execution. We look forward to updating you on our progress next quarter.
Thank you.
Moderator
Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha’s conference call service. You may disconnect your lines now. Thank you, and have a pleasant evening.
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