Expanding Capabilities.
Driving Sustainable Growth.

Dear Shareholders and Colleagues,

Over the past few years, we have been systematically repositioning our Company from a product-led enterprise into a customer-centric, service-led Specialty Chemicals and CDMO solutions partner. During FY 2026, this transformation gathered significant momentum. It was the year in which we strengthened the foundations that will power our next phase of growth – commissioning world-class manufacturing facilities, expanding our Specialty Chemicals and CDMO capabilities, strengthening our Nutrition platform, accelerating innovation-led initiatives, and deepening customer partnerships. We also advanced operational excellence, digital transformation, and sustainability programmes, building an agile and future-ready organisation.

Strengthening Leadership in Specialty Chemicals

Our Specialty Chemicals segment delivered another year of strong performance. Revenue grew 7% to ₹1,937 Crore, while EBITDA rose 21% to ₹510 Crore at a margin of 26%, sustained above 25% for six consecutive quarters. Specialty Chemicals now contributes 75% of overall EBITDA, up from 67% in FY 2025 and 54% in FY 2024, reflecting the scale-up of high-margin platforms and a sharper focus on differentiated chemistries.

Our Fine Chemicals portfolio gained traction through healthy volume growth across Pyridine and Diketene derivatives. As the world’s only scaled non-Chinese manufacturer of Pyridine and its derivatives, we remain uniquely positioned to benefit from ongoing global supply chain diversification and the China+1 strategy. Our Personal Care portfolio expanded beyond Niacinamide through the addition of several new products progressing through customer qualification.

Specialty Chemicals Revenue grew 7% to ₹1,937 Crore, while EBITDA rose 21% to ₹510 Crore at a margin of 26%, sustained above 25% for six consecutive quarters. Specialty Chemicals now contributes 75% of overall EBITDA, up from 67% in FY 2025 and 54% in FY 2024, reflecting the scale-up of high-margin platforms and a sharper focus on differentiated chemistries.

Scaling CDMO into a Strategic Growth Engine

Our transition to a service-led company is most visible in our fast-growing CDMO business. Our multipurpose Agro CDMO facility at Bharuch was constructed and commissioned within 14 months, with the first commercial despatch made in March 2026. The facility is now fully operational. The Pharma CDMO pipeline has grown 3x in two years, driven by sustained engagement with global innovators and Tier-1 CDMOs across the US, Europe, and Japan. Across our CDMO and Specialty pipeline, we now have 100+ active opportunities representing ₹3,400+ Crore in peak revenue potential, of which 20+ molecules have been confirmed with ₹1,500+ Crore.

Construction of the new Multi-Purpose Plant is progressing well and will expand our ability to execute multiple customer programmes while supporting future growth. We also approved a dedicated Semiconductor R&D Lab at Greater Noida, a clean-room facility that will anchor our growing Semiconductor Chemicals business and provide the technical infrastructure needed to serve precision semiconductor applications.

Expanding Our Nutrition Business

In Nutrition & Health Solutions, Vitamin B3 recorded its highest quarterly volumes in eight quarters during Q4 FY 2026, while Choline witnessed healthy demand across export markets. A key milestone was the acquisition of Remidex Pharma, a WHO-GMP, GAIN, FSSC, and ISO certified facility and a trusted partner to Tier-1 FMCG companies globally. This acquisition transforms our Human Nutrition business from a vitamins-focussed operation into a full-spectrum nutrition solutions provider, with direct access to the fast-growing Vitamin and Mineral Premix market. The integration is underway, and we expect this platform to be a meaningful contributor in FY 2027 and beyond.

Deepening Customer Partnerships

Customer centricity is integral to our business strategy. Our Key Account Management programme covers our top 40 global customers, maintaining high engagement at the leadership level. We conducted 200+ customer meetings across the EU, US, and Japan in two years, with increasing participation in exhibitions and trade shows. These interactions enable us to better understand emerging market needs and opportunities, accelerate product development, and strengthen our position as a preferred, long-term partner. Our increasingly verticalised business structure, aligned to six focussed industry segments, is driving improved decision-making, customer responsiveness, and tailored engagement across end-use industries.

Driving Operational Excellence

Our integrated cost optimisation and operational excellence programmes delivered ₹120 Crore+ in annualised savings. Power and fuel costs declined 10% through energy efficiency initiatives and the structural shift toward renewable energy, which now accounts for 25% of total power consumption. The roll-out of our 5S safety programme across sites reinforced our zero-harm culture. Working capital improved to 16% of revenue from 18% in FY 2025, with net working capital days reducing to 59. Net Debt/EBITDA improved to 0.99x, reflecting disciplined capital management.

Accelerating Innovation and Digital Transformation

Innovation continues to remain our key differentiator. Our three R&D centres, including a newly DSIR-recognised facility at Greater Noida, employ 150 scientists (including 30 PhDs) across 35+ chemistry platforms. We are further advancing capabilities in Flow Chemistry, Cryogenic Chemistry, and Semiconductor Purification, technologies that will underpin the next generation of CDMO and Fine Chemicals programmes. With 50+ products in the R&D pipeline, FY 2027 is expected to witness the highest number of product launches. AI-based retrosynthesis tools are accelerating route design and impurity prediction, reducing the time from molecule identification to commercial-readiness.

Under our digital transformation Programme, SuperNova, we deployed 50+ Digital and AI initiatives across the organisation. Major initiatives include a GenAI-powered R&D tool to accelerate molecule discovery, smart plant capabilities across 27 facilities, including digital control rooms and digital twins, GenAI solutions integrated into Legal, Finance, and Business Development functions, and predictive analytics enhancing raw material procurement, supplier monitoring, inventory management, and logistics tracking. Our Bharuch facility’s membership in the WEF Global Lighthouse Network for 30+ 4IR use cases demonstrates our commitment to operational excellence and responsible manufacturing.

Looking Ahead

As we enter FY 2027, our confidence is stronger than ever. Growth will be led by Specialty Chemicals and Nutrition segments, alongside a steady recovery in Chemical Intermediates. The CDMO pipeline, with 20+ confirmed molecules and 100+ active opportunities, is growing at an accelerated pace, supported by the operational Agro-CDMO facility and the upcoming MPP. Our Fine Chemicals portfolio will expand through new Pyridine and Diketene derivatives. The Remidex integration will strengthen the Nutrition platform and open new opportunities in Human Nutrition Premixes. In Personal Care, multiple products are in advanced stages of customer qualification, with new commercial launches expected through the year.

Backed by a robust R&D pipeline, sustained investments in emerging platforms, and disciplined execution of our Pinnacle Strategy, we expect substantial improvement in revenue and profitability and remain confident in delivering long-term growth and value.

We are grateful to our colleagues for their commitment, resilience, and relentless pursuit of excellence, to our customers for their continued trust, to our business partners for their enduring collaboration, and to our shareholders for their unwavering support and confidence.