Transcript of Earnings call

Date

21 July 2026 Ref. No.: TCPCL/SEC/2026-27/00027

To,

The General Manager, The Manager,

Corporate relationship department, Listing department,

BSE Limited National Stock Exchange of India Limited

Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block-G,

Dalal Street, Fort, Bandra-Kurla Complex, Bandra(E),

Mumbai-400 001 Mumbai-400 051

Scrip Code

543321 Scrip Symbol: TATVA

Subject

Transcript of Earnings Call

Dear Sir/Madam,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015, as amended, please find enclosed herewith the transcript of the earnings call held on 17 July 2026 post announcement of financial results of the Company for the quarter ended 30 June 2026.

The above information shall be made available on Company’s website of at www.tatvachintan.com.

This is for your information and records.

Thanking you,

Yours faithfully,

For Tatva Chintan Pharma Chem Limited

Ishwar Nayi

Company Secretary and Compliance Officer

M. No.

A37444

Encl.

As above

“Tatva Chintan Pharma Chem Limited

Q1 FY27 Earnings Conference Call”

July 17, 2026

MANAGEMENT

MR. CHINTAN SHAH – MANAGING DIRECTOR – TATVA

MODERATOR

MR. MOHIT – ICICI SECURITIES LIMITED

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Tatva Chintan Pharma Chem Limited

July 17, 2026

Moderator

Ladies and gentlemen, good day, and welcome to the Tatva Chintan Pharma Chem Limited Q1

FY27 Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will 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 star then zero on your touch-tone phone.

Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit.

Thank you, and over to you, sir.

Mohit

Thank you, Anushka. Good evening, everyone. Thank you for joining on Tatva Chintan Pharma

Chem Limited Q1 FY27 Results Conference Call. We have Tatva Chintan management on the call represented by Mr. Chintan Shah, Managing Director; and Mr. Ajesh Pillai, CFO.

I would now like to invite Mr. Ajesh Pillai to initiate with opening remarks, post which we will have a Q&A session. Thank you, and over to you, sir.

Ajesh Pillai

Thank you. Good evening. On behalf of the management, I'm pleased to welcome all of you to

Tatva Chintan's results conference call to discuss financial results for Q1 FY27. Please note that a copy of all the earnings call-related disclosures is available on both the stock exchanges, that is NSE and BSE, as well as on the website of the company.

Any statements made or discussed during the call, which reflects our outlook for the future or which could be construed as forward-looking statement must be reviewed in conjunction with the risks that company faces. A detailed disclaimer in this regard has been included in the investor presentation that has been shared on both the stock exchanges that is NSE and BSE.

I'll take you through the key financial highlights across our major business segments for the quarter.

For Q1 FY27, Tatva Chintan reported operating revenue of INR1,671 million, reflecting a 43% year-on-year growth and 25% sequential increase.

EBITDA stood at INR323 million, representing a 86% growth Y-on-Y and 15% improvement over the previous quarter.

Now moving to the segment-wise performance:

Phase Transfer Catalysts contributed INR428 million in revenue, a 38% growth quarter-on- quarter and 47% increase year-on-year.

Electrolyte Salts achieved INR63 million in revenue, recording a down 52% sequentially and a growth of 76% Y-o-Y.

Pharma & Agro Intermediates and Specialty Chemicals delivered INR584 million in revenue,

63% growth quarter-on-quarter and a growth of 25% Y-o-Y.

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July 17, 2026

Structure Directing Agents reported INR578 million in revenue, reflecting a 10% growth quarter-on-quarter and a 47% increase year-on-year.

With this overview of the financial and operational performance of the quarter, now I will deliver the speech of our Managing Director, Mr. Chintan Shah, on his behalf.

As we begin the new financial year, I believe this quarter marks an important milestone in Tatva

Chintan's growth journey. Over the past several years, we have consistently invested in developing new chemistries, expanding our technology capabilities, strengthening manufacturing processes and building long-term customer relationships.

We are now beginning to witness these efforts translating into tangible commercial outcomes across multiple business verticals. What is particularly encouraging is that this progress is not being driven by a single product or a single market. Instead, we are seeing positive developments across several strategic business simultaneously. The increasing commercial acceptance of our products, the expansion of our opportunity pipeline and the confidence to undertake fresh capacity investments together reinforce our belief that company is entering a new phase of sustainable growth.

While the global business environment continues to witness geopolitical developments and evolving trade dynamics, customer procurement patterns across our key businesses have become significantly more predictable. This provides us with greater visibility and enables us to plan our manufacturing technology and capacity expansion initiatives with increased confidence.

Let me now take you through the development across our major business segments.

Phase Transfer Catalysts

PTC continues to remain one of the strongest pillars of our portfolio.

As industries across the chemical value chain increasingly focus on improving process efficiency, enhancing product selectivity and adopting more sustainable manufacturing practices, the relevance of Phase Transfer Catalysts chemistry continues to expand across a wide range of applications.

Rather than being viewed merely as a catalyst, PTC is increasingly recognized as a process- enabling technology of improving manufacturing economics while supporting greener chemistry. We believe this structural shift in customer preferences will continue to create opportunities for sustainable organic growth and further strengthen our leadership position in this business.

Structure Directing Agents

The outlook for our SDA business continues to strengthen. The implementation of Euro 7 standards has now begun translating into revenue and there is a very visible customer demand, validating the opportunity that we have been anticipating. We are witnessing encouraging momentum across our customer base and the overall business environment for this segment is very robust. Considering gradual geographical implementation of Euro 7, we are confident that this business will position to witness a strong demand.

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Tatva Chintan Pharma Chem Limited

July 17, 2026

Electrolyte Salts

Our Electrolyte Salts business continue to make a steady progress towards larger commercial scale. The demand of our electrolytes for energy storage device is rapidly increasing, with consumption increasing broadly in line with our expectations. Severe short supply of certain key raw materials due to Middle East crisis led to significant production delays, impacting the revenue recognition for the quarter and the situation is now gradually getting streamlined in terms of its availability.

Equally encouraging is the progress achieved in with our hybrid battery customer, whose commercialization program is advancing well and steadily moving towards commercial supply.

Pharma, Agro and Specialty Chemicals: The PASC business has delivered one of its most encouraging quarters from a strategic perspective. The molecules commercialized over the recent quarters are witnessing increasing customer acceptance, resulting in repeat orders and visible improvement in demand. The transition from initial commercialization to recurring procurement is significant milestone and it validates both quality of our products and the confidence our customers have reposed in our capabilities.

On the Pharmaceutical side, I'm pleased to share that the commercial production of one of our pharma intermediates commenced during the very first quarter itself. We expect demand to strengthen progressively during the course of the year, while additional pharma molecules are also expected to move towards commercialization in the later, half of the year. For us, the most satisfying outcomes of this progress is the confidence it gives us to accelerate the next phase of product development.

Several R&D-ready molecules with this segment are now entering pilot scale manufacturing, while development activities for others are already underway. This ensures that even as today's products continue to scale up, the next generation of opportunity is already moving through our innovation pipeline. Coming to Semiconductor. I'm extremely proud to share that our first batch produced on commercial plant scale was delivered to the customer during this quarter, and this batch has been successfully qualified by the customer.

We consider this to be one of the Tatva Chintan's glaring achievements of the past decade. The significance of this achievement extends far beyond a single product. It validates our research capabilities, manufacturing excellence, quality systems and our ability to meet the demanding standards of the global semiconductor industry.

More importantly, it opens the door to significant larger opportunities as additional products continue to progress through the customer qualification. While this business will continue to require patience owing to its rigorous validation process, we believe this milestone marks the beginning of a long-term value creation opportunity for the company.

In line with the growing opportunities across our business, I'm pleased to share that our Board of Directors has today approved the establishment of a new greenfield manufacturing facility involving an investment of approximately INR200 crores. We have scheduled the

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Tatva Chintan Pharma Chem Limited

July 17, 2026 groundbreaking ceremony for this on 20th July 2026. This investment reflects our confidence in the future rather than merely addressing today's requirements.

The proposed facility is being designed as a future-ready manufacturing platform that will support the commercialization of new products, provide greater operational flexibility and create capacity required for company's next phase of growth. Our philosophy has been to build capabilities ahead of demand. This project reflects the philosophy and demonstrates our confidence in the opportunities that lie before us.

We believe the progress achieved during this quarter represents an important beginning, and we look forward to converting these opportunities into enduring value for all our stakeholders.

Before I conclude, I would like to sincerely thank our customers, employees, business partners and shareholders for their continued trust and unwavering support. This year marks 30 years of

Tatva Chintan, and this milestone belongs to every stakeholder who has been a part of our journey. As we enter our fourth decade, we do so with renewed confidence, stronger capabilities and an unwavering commitment to creating value through innovation, specialized chemistry and responsible growth. Thank you.

I now request the moderator to open the floor for question-and-answer session.

Moderator

The first question from the line of Shlok Patel from Zenflow Finance.

Shlok Patel

Am I audible?

Ajesh Pillai

Yes, you are audible.

Shlok Patel

Yes. Congratulations on the great results. My first question is on the PTC segment. PTC segment did very well this quarter. What led to this growth? And can we expect similar numbers in coming quarters?

Ajesh Pillai

See, PTC demand is increasing because of the widening acceptability of phase-transfer catalyst across the chemical industry. When we started back in 1996, PTC was a very new product. But over the time, chemical industries, I mean, various chemical segments in the industry itself have recognized the benefit of using phase-transfer catalyst.

So, the acceptability of this is going to go on increasing and the demand for the same is going to increase. But the factor in our case is that we have forward integrated the PTC into SDA and

Electrolyte Salts & Solutions also.

So as and when the demand of SDA and the Electrolyte Salts & Solutions increase, we will be consuming more PTC into those products, and we will be selling less of PTC into market. But at the same time, we will have to cater to our loyal and long-term customers. So, we'll continue to produce and sell PTCs to our best of our capabilities.

Shlok Patel

Okay. Great. My second question is on PASC. So can you give us outlook on the glymes, which we sell for lithium-ion batteries and what are the other molecules we sell in the segment?

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July 17, 2026

Ajesh Pillai

We don't sell for lithium batteries. We are not into lithium batteries. And probably the question you are asking is from Electrolyte Salts & Solutions segment and PASC that is Pharma & Agro segment.

Shlok Patel

Okay. So, in PPT, it's written that we manufacture glymes, which is used as solvent in lithium- ion batteries. So that's why I was asking.

Chintan Shah

Yes, you are correct. So basically, MONOGLYME is one of the key products which we are doing on conventional chemistry and converting it into the continuous flow chemistry. By the time we actually successfully translated this into continuous flow chemistry to make it more sustainable, the environment scenario in terms of pricing has become too aggressive from the

Chinese supplies. So, we have withheld our plan to invest as of now into the glyme's capacity addition.

So, we continue to produce at a decent scale using our existing infrastructure in place and we cater to this demand. So basically, we have very less exposure to the battery manufacturers, whereas our large customer base in terms of glymes we sell into more of pharma industry.

Moderator

We take the next question from the line of Pal from Trinetra Asset Managers.

Pal

Yes, am I audible?

Ajesh Pillai

Yes, you are audible.

Pal

And my question is like what do you see as the biggest execution risk to achieving your FY27 guidance? Is it customer demand, raw material volatility or commercialization of new products?

Ajesh Pillai

None of them. We don't foresee any obstacles to this year's guidance because all the demand from the customers and the segments are quite visible. And I don't think there should be any obstacle in achieving this target.

Moderator

We take the next question from the line of Raman K.V. from Sequent Investments.

Raman K.V.

Sir, can you hear me?

Ajesh Pillai

Yes.

Raman K.V.

Sir, firstly, congratulations on a good set of -- on an excellent start to the year. I have a few questions. Sir, firstly, on the pharma molecule side, which you -- earlier in the Q4 call, you mentioned that you will be commercializing 1 molecule in Q1 and 2 more molecules by Q3 end.

So, what's the incremental revenue do we expect over FY26 from the 3 new molecules which will be commenced -- which are commenced during this year? And how much will these molecules scale in the coming FY28 year?

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July 17, 2026

Ajesh Pillai

It should contribute around INR70 crores to INR80 crores of revenue from all these pharma molecules. And in this current financial year. And gradually, it should uptick in next financial year, too.

Raman K.V.

And how much can we expect from like at full utilization, how much can we expect from these

3 molecules?

Ajesh Pillai

INR200 crores. In the range of INR200 crores.

Raman K.V.

Okay. And sir, my second question is on the semiconductor side, can you just talk about the product, which -- or what product are we working on? And where this semiconductor, chemical

-- at what part of the value chain it is used? And if possible, can you also let us know what is the total addressable market for market opportunity for us in this particular sale?

Chintan Shah

Basically, the application of this product, what we have now commercialized, the first commercial supply that became successful. So this product has application getting into as a key starting raw materials to make the semiconductor. So it's a key starting block to make the semiconductor. Parallelly, it also has applications in etching of the printed circuit boards, as well as in cleaning of the circuits. So it is being used as etching agent, as a cleaning agent and also as a key starting block for making the semiconductor.

Of course, all these 3 applications have 3 variety of specifications. Out of which, the most stringent one is where you use it as a key starting block for making semiconductor. And the approval what we have got from this quarter for this is basically for being used as a key starting block for making semiconductors. So it is the most rigorous specifications among all the 3 applications, and we have successfully met with the specification criteria of the customer.

In terms of addressable demand, it is too early right now to gauge, but I'm sure it's going to be a very large potential. Again, see, this is my first plant-scale trial. I believe at least 3 or 4 such plant-scale trials will happen over the course of next 2 years. And customer would want to test the consistency in terms of how we can deliver the product in terms of consistency of quality and all the rest of the parameters.

And after that, we will start talking of commercializing, use it. And of course, as you know, any change in semiconductor is extremely difficult. So probably it's not an easy take off. It's going to be a tough time getting into the commercialization and acquiring business. But once we set our foot in into any commercial application, then I think it opens up doors for very large opportunity.

Raman K.V.

And just a follow-up on this. You said we have received approval for this product. Can you also specify...

Chintan Shah

Qualified. So, this is now successfully qualified by the customer. So, this is my first batch on a

-- coming out from my plant. So a plant-scale first batch, and this has now been successfully qualified. So customer has confirmed that your product meets all the desired specifications. So

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July 17, 2026 now there will be multiple stages, scale-ups would happen. But today, we have just delivered a few tons of this product. Then it will go to few tens of tons, few hundreds of tons and then you talk of commercialization.

Raman K.V.

So, can I ask you who is the end client from whom you are getting quality approval? Is it the semiconductor company which makes the starting semiconductor or someone else?

Chintan Shah

Someone else. So, semiconductor companies will never directly buy such thing. There are always MNC companies who would end up supplying this to the semiconductor or the fab manufacturers.

Raman K.V.

Understood, sir. Sir, also you mentioned in the call that you are -- there is a INR200 crores greenfield capex plan for the year. Can you specify for what product this is? And can you specify what kind of revenue do you expect from this INR200 crores capex? And by what time line this capex will be in place?

Ajesh Pillai

See, we have been working on our R&D products for quite a long -- quite a few years now. And this facility is being built for actually catering -- scaling up of those R&D-ready products as well as to meet the domestic demand. That is, we are looking at the economic development in India.

The demand of these chemicals would increase more rampantly in Indian economy. So we would like to cater to the domestic demand, too. So, this facility is more going to take care of these requirements. And as far as the revenue is concerned, we would be looking at somewhere around

1.2x to 1.5x asset turnover ratio, which means we would end up having around INR300 crores of revenue at peak utilization.

Raman K.V.

Yes, I get that. I just want to understand, is it like a Pharma & Agrochem Intermediates view we are working towards? Or is it towards the Electrolyte side? Or is it towards the SDA side? Or is it a new category as...

Chintan Shah

No, no, it's a multipurpose, multiproduct facility that we are setting up. So it is fungible between the sectors. And basically, we have introduced a lot of new products over the last 2, 3 years. You see this new pharma introductions, new agro-introduced products, which is causing now capacity issues.

And of course, we foresee there is a lot of organic growth that is also going to happen. There would be new molecules that are in pipeline to be introduced in the market. So just keeping this vision in mind, we are setting up this facility, so that by the time we nearly saturate our Dahej facilities, we have an already infrastructure in place, which can cater to the upcoming growth opportunities.

Raman K.V.

Understood, sir. And sir, finally, sir, you guided for 10% revenue contribution from Electrolyte

Salts in FY27. Are we sticking to the guidance? And can you also specify how are we planning to increase the uptick from currently which like in the current quarter, it contributed to INR6

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July 17, 2026 crores of the revenue? And how are you planning to scale from INR6 crores to roughly, let's say,

INR60 crores? Almost...

Chintan Shah

It will not be up to -- so between INR40 crores to INR60 crores revenue is what we still hold the guidance. And yes, we have enough capacities in place to cater to this demand. So we don't have to do anything special to achieve this revenue. Now everything is in place. Customer demands are very crystal clear, very highly visible. So, it's just moving about in this zone.

Raman K.V.

Do we have any order book...

Chintan Shah

A couple of months. Unfortunately, we lost a couple of months due to unavailability of couple of key raw materials in this space. It just happened because of the war situation, which impacted our productivity. So, we had to sit idle for a few weeks together. Otherwise, yes, there is no issue, no challenges at our end in terms of infrastructure in place, customer demand in place, clear visibility. I don't see any challenges.

Raman K.V.

Do we have any specific order book for this in hand?

Chintan Shah

It is not never an order book in hand. So, it is basically happening on quarter-on-quarter basis.

Moderator

We take the next question from the line of Nirali Gopani from Unique PMS.

Nirali Gopani

Congratulations on very good set of numbers. So, Chintan, my first question is on this revenue growth that you have seen in the quarter. So, what will be the contribution from the pricing improvement because last few quarters, pricing was an issue. So still it be volume driven or pricing has improved?

Chintan Shah

Marginally, so that's not a major impact coming from pricing. The large impact is coming from volume growth. Because actually, honestly speaking, we have not been thorough in terms of passing on the increase in cost. So that is visible on our margins as well. Because that was not an easy -- because the price increase was too rampant and came at a very short notice. So, it just happened overnight kind of thing. So, most of this is genuinely a volume growth and not a pricing differential.

Now we are pushing for price increase. So now we are translating that we are -- so since last, I would say, since last 40, 50 days now that price pass-on has started, customers have started accepting the higher price because they know there is no other way to go. Globally, the prices have risen and they have to gradually learn to accept. And that's what we are also doing from our raw material suppliers. So basically, the value chain has -- the prices on all the fronts have gone up in terms of our incoming raw materials. And now we are pushing the price change in terms of selling our finished goods as well.

Nirali Gopani

Okay, okay. Perfect. And second is on this current capacity on the -- and on the further capacity.

So currently, with our capacity, we can do a peak revenue of INR900 crores. Does the additional

Dahej capacity available for next year? Or it's only after this third block comes into the picture?

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July 17, 2026

Chintan Shah

We are doing some debottlenecking stuff. We have one small block where we can do maybe 4,

5, 6 reactors or stuff like that, but not something which can really address the growth or the coming of demand. So, in reality, anything beyond this INR800 crores, INR850 crores will look

-- we should have a place already, infrastructure in place to cater to this growth. Otherwise, we'll start kind of getting stagnated. And I foresee that happening from next year itself. So that is the reason why we are focusing on this greenfield project to push fast.

So theoretically, we want to finish it. So theoretically, we say we want this site to be in place within -- into operations within 21 months. Internally, we are pushing to get it through within

18 months, if possible. It's a task in itself, but yes, we are pushing hard for that.

Nirali Gopani

Right. So, post this INR850 crores, we'll have some new capacity at Jolva then at Dahej? And then semiconductor will be the third opportunity?

Chintan Shah

Not Dahej. Dahej, we are nearly saturated. We have consumed all the piece or parcel of land in

Dahej. So now there is hardly anything. So very small production block is what is feasible to be made. So ideally speaking, Dahej is now getting into saturation mode in terms of available space.

So, any major growth has to happen only from the new site.

Nirali Gopani

Okay, okay. And semiconductor will be over and above this, right? For that, we are not doing any capex at the moment?

Chintan Shah

Not at the moment. Because we don't -- honestly speaking, we don't foresee a major commercialization happening until at least I would say not before Q4 of 2028. I don't see that it will commercialize in a large volume because it's going to take its own sweet time. Very well aware of the process, how they qualify. So, I know it's not going to be an overnight thing. It will take its own sweet time to commercialize.

Nirali Gopani

Right. And lastly, so for this FY27, do we see this quarterly run rate of Q1 being maintained?

Chintan Shah

We see, yes, so 25%, 30% growth is what we forecasted, and that's what we stick to. So yes, in pure mathematics terms, we are saying that, yes, we should maintain this run rate.

Nirali Gopani

And for the full year, what kind of margin should we work with? EBITDA margins?

Chintan Shah

As I always say, so unfortunately, we have lost 1 quarter with a little lesser margin, but I would still stick to 20%, 22% margins in guidance.

Moderator

We take the next question from the line of Gourab Paul from Zenflow Finance Private Limited.

Gourab Paul

Am I audible?

Ajesh Pillai

Yes, you are audible.

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July 17, 2026

Gourab Paul

Congratulations to you. My first question is regarding the geopolitical scenario. So, we keep hearing that there is a lot of anti-involution that is happening in China. I mean could you give some color on that?

Ajesh Pillai

Anti-involution happening in China?

Gourab Paul

Yes, I mean the prices in China?

Ajesh Pillai

Can you come back? What is happening in China?

Gourab Paul

The price -- I mean the government is taking away the VAT or taking away the subsidies that they used to give to industry, especially in the...

Chintan Shah

This is still news, but it's not a law. So, this, if at all happens, is expected to be in place from

January of next year. So, this is what we keep hearing from customers and suppliers both. But let us see as and when it happens. So, most of the subsidies in terms of specialty chemicals or agro intermediates or pharma intermediates is expected to go away.

So that would, of course, push -- that would be in terms of Tatva Chintan per se within the chemical space. Companies like Tatva Chintan should see some benefit deriving out of this change. But it is too early to predict and you never know what China is going to do. So let us wait and watch and not speculate on that.

Gourab Paul

Got it, sir. The second question is regarding the lithium-ion manufacturing momentum in India.

Now your salts are getting used in the electrolyte, I assume, right?

Chintan Shah

But electrolyte of different types of batteries, not in lithium batteries.

Gourab Paul

Okay, okay. So do we have any solutions also for lithium batteries?

Chintan Shah

We don't, no. So basically, we have solution in the zinc battery solutions in the supercapacitor battery solutions, but nothing to do with the lithium batteries.

Moderator

We take the next question from the line of Sarang Desai from Tamohara.

Sarang Desai

Am I audible?

Ajesh Pillai

No.

Sarang Desai

Am I audible now?

Ajesh Pillai

Yes, yes.

Sarang Desai

Sir, my question is on the front of the SDA vertical. So since according to the past trajectory when China was our biggest customer when it comes to SDA and the diesel truck sales in China is continuously being replaced by the EV demand and hybrid demand. So with the Euro 7 coming in, so do we see tapping markets in the Europe? Because the European diesel sales is still higher

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July 17, 2026 than the Chinese market. So I mean, just wanted to understand the geographical segmentation with the Euro 7 with respect to the SDA.

Chintan Shah

Euro 7 is right now is only being implemented across Europe. So it eventually has to go to U.S., go to Japan, China, India. So it will happen over the next 3, 4, 5 years' time frame. And yes, what you said about China is absolutely true. So a lot of demand of diesel trucks went to the gas.

Gradually, what I understand is gradually, there is a very slow uptick in terms of diesel engines.

But in terms of passenger vehicles, a lot of demand is already going to the EV side, right? So this is going to go out of purview of using SDA application in that area. But the real demand is not passenger vehicles, but it is from the large diesel engines.

The rest of the world, yes, the demand is growing rapidly. So that is a good part what we foresee.

And Chinese demand is yet to pick up. So there is not really any uptick in terms of demand coming in from China. But rest of the globe, the demand is becoming stronger and stronger. As we move towards Euro 7, shift gradually, it will happen geographically. That will translate into stronger demand for Tatva as well. Because with Euro 6, we had certain geographical limitations in terms of sales, which goes away with Euro 7. So that will be an added benefit for us in terms of growing our market share.

Sarang Desai

Okay, okay. And my next question was on the ESS vertical. So like we had in earlier con-call discussion regarding we have some large volume orders from hybrid vehicle batteries of one of the customers. So...

Chintan Shah

Hybrid vehicle batteries customer is into the process of commercialization. So it's now just beginning to get into commercialization phase. So this should happen from October or

November of this year, calendar year '26, whereas the major part of the demand is coming from a couple of customers using these electrolytes into stationary energy storage systems.

Sarang Desai

Okay, okay. But like the ramp-up of ESS that we are looking after is on the basis of hybrid vehicle batteries, which will come after October, right? I mean the major part of the ramp-up in the revenue.

Chintan Shah

And then that actual commercialization, so full-scale up commercialization of the hybrid systems is expected to happen somewhere in late 2027. So 1 year would be -- so they are just initiating their battery manufacturing plant now. So it's going to take a while for them to stabilize into a full volumes.

Moderator

We take the next question from the line of Rohit from Progressive Shares.

Rohit

A couple of questions. First one is the continuous flow chemistry, how many of these commercial molecules that we have are currently using the continuous flow chemistries?

Chintan Shah

2 products.

Rohit

And in the next 3 years or so, how many more do you think can be added?

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July 17, 2026

Chintan Shah

Now majority of the development what we are doing. So it may not be in all stages of a product.

But what I see is, let us say, about 7 or 8 products in near future getting into commercial phase or piloting phase. All of these products either have electrochemistry or continuous flow chemistry.

Rohit

When these products probably move from batch to continuous, what sort of improvement do we see? Do we see it in the yield or the manufacturing time? Or is it the return on capital that is altered?

Chintan Shah

On all the fronts, you see improvements happening in terms of your productivity going up, in terms of your cost coming down, in terms of certain -- basically, certain base chemistries, you are able to reduce the number of stages of chemistry. For example, the 2-stage product, you can do it in a one single stage. So you have a lot of bandwidth that you create. So as we move -- so what we are now currently doing is our existing products, what we are already doing on conventional chemistry basis. So now we have started focusing on how we can move from a conventional chemistry to a flow chemistry.

So this is what -- in one of the earlier questions, I talked about trying to do certain debottlenecking of the plant and trying to optimize how we can generate larger revenue from the existing infrastructure. So these are some of the areas where we are focusing to shift and working on moving the products from batch mode to continuous flow mode, which can release some of our reactor capacity and give us larger revenue from the existing infrastructure. So continuous flow is our core focus as of now.

Rohit

If this chemistry has got such a big moat, do you think that the competitors will be able to replicate it over a period of time?

Chintan Shah

See, if Tatva can do, I don't believe someone else cannot do. So it's just about -- I mean it's -- if we say we are a very small company, if you see within the chemical segment then potentially, we are the smallest player within the segment whom you all know the rest of the companies. We can do, I'm sure, with given dedication or a given vision, any one of them can crack this. It's not a big challenge. Of course, you have to remain behind it, stay focused and keep investing behind this because it takes a time. Conventional is always faster and easy. So it has its pros, but it also has lots of cons. So it's -- yes.

Rohit

Makes sense. On this new reactor capacity, which product category do you think will consume most of this reactor capacity? Is it the existing products or new products? Or will you be looking at contract manufacturing or something?

Chintan Shah

Both, both. So we are -- as I said, we are also right now focusing on converting some of our existing products from conventional to continuous. And as I said, among the 8 products, what I foresee as the next getting into commercial phase is either piloting or commercialization. Each of these products has, in either of the stages of production, it has continuous flow chemistry.

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Rohit

And you don't have any vision or any wish to go for contract manufacturing for some customer or some client or something of that sort?

Chintan Shah

As far as -- see, we have a lot of things in pipeline. So I don't see that something is stopping me from doing my own organic growth. So we have -- we are not nearing saturation in terms of our ideas of growth. As far as we see that there is a lot of potential we can generate from our own resources and from our own contracts and from our own capabilities, till that point in time, I don't see that we want to go and do contract manufacturing or stuff like that.

Rohit

But for this new capacity, do you have some commitment made from some of the customers?

Are you discussing with it? Or is there some talk before commissioning?

Chintan Shah

Of course, of course, we do. So there may not be a contract -- official contract in place, but there is, of course, some commitment from a customer that, yes, this is what is of our interest. And if you are able to crack this in a different way, then yes, we are the first one to come and buy from you.

Rohit

And in the next 3 years, what sort of revenue growth is currently visible that you feel that these new products or the already existing one would or the ones which are under the qualification these can produce? What is the revenue growth that you see? Is it 25%, 30%, 35% growth on a

CAGR basis?

Chintan Shah

So over the next 3 to 4 years, if you let us pick because Jolva was getting commercialized. So let us say about coming 4 years from today, we should envisage at least 20% to 25% compounded growth year-on-year basis.

Rohit

And anything on the minimum acceptable post-tax ROIC, if you have that calculated or have any rough work that has been done on that?

Chintan Shah

We are working on that. So basically, we are targeting to cross -- see, basically, what -- the way we do it is some of these chemistries what we have done in last few years. So first of all, phase- transfer catalysts, SDAs, electrolyte salts. So these were certain chemistries where our asset turn ratio was very high. Then we started getting into these multistage chemistries, pharma intermediates, agro intermediates. Even the next stages of developmental growth is going to come from these kind of intermediates of pharma and agro. So these are, again, multistage chemistries. So your asset turn ratio has started getting disturbed, right?

So now when we talk, we say, okay, asset turn ratio of 1.5, we are very happy, right? And when we were talking of the earlier 3 product ranges, we were talking of asset turn ratio of 1:3. So the ball game has changed. But when we talk of ROIC, we look at about 20%, 22% should be a decent achievement, and that is what we are focusing to in that direction.

Moderator

So, the next question is from the line of Ketan Chheda, an individual investor.

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Ketan Chheda

Congratulations on good results. My first question is with respect to the MONOGLYME, I think one of the earlier participants tried to question that. So, my question is at one point in time, we were installing capacities for manufacturing MONOGLYME and we were targeting to manufacture about 2,000 tons or something of that sort. So, could you just update what is the status on that? Are we producing, not producing? Did we install those equipments?

Chintan Shah

We did install the equipment to produce MONOGLYME, which now we have converted to put to use for a different product. So that product is the electrolyte for supercapacitor batteries. So we produce the raw material of that from that equipment. The reason why we moved a step back from MONOGLYME is a terrible price drop that happened from China, $4.6, $4.7, $4.8 roughly.

In that price range, the product price dropped from there to $2.1. It just happened within 30 days' time frame when they dropped the prices.

Now again, we see the prices going up to $3, $3.5, but right now, we are honestly not very keen on getting into a large place. So what we do, a few hundred tons of this product, but we continue to use our conventional chemistry in that place. Whereas the continuous flow equipment what we installed, that we have put to use for a different product.

Ketan Chheda

Okay, okay. And we also had one product, which was flame retardant. And I think you had a similar experience there as well where the economics was not very favorable by the time we ended up developing and were ready to manufacture. So any update on that flame retardants?

Chintan Shah

No, it still continues to remain in such situation. Basically, it is directly connected to the polymer industry, and still the situation there is not much reversal in the situation. We are not getting into commercialization of those products in very near future for sure.

Ketan Chheda

Sure. Right. The other question I have is with respect to our foray into these semiconductor chemicals. So right now, we are going ahead, you mentioned about 3 of your applications and you kind of initially qualified for one of the stringent, the most strictest qualification criteria. Do we have other products in the pipeline for the same sector or we are kind of yet to start developing?

Chintan Shah

Currently, we have 5 products on pipeline. So, one of this is now produced from the plant scale.

We have another one produced from pilot scale, which is currently under evaluation from the customer side. We have 2 other products, 3 other products which are in the development phase.

So totally, we are working on 5 different products in this space.

Ketan Chheda

Okay, okay. Sure. And as of now, in our pipeline, the products that may be at lab scale or maybe pilot scale, could you give us a number across all your different segments? How much -- how many products are there?

Chintan Shah

In mature pipeline, we have about 9 different products now. The semiconductor products I'm not including because these are long term. So, it's not going to happen before 2028. So, what will commercialize before 2028, we are looking into 8 or 9 different products which are now mature.

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Moderator

Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question. I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Ajesh Pillai

Thank you. On behalf of the management of Tatva Chintan, thank you for joining us on today's earnings call. We trust that we have addressed most of your questions during the discussion.

Should you require any further clarification, please feel free to reach out, and we will be happy to connect offline. Thank you.

Moderator

Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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