Indian Emuls Q3 FY26 Earnings Analysis

- For FY '26, the company expects revenue growth upward of 100%, with projections between 150% to 200% growth compared to FY '25. - Capacity expansion planned to reach approximately 18,000 metric tonnes by mid-next year, potentially representing over 250% increase compared to last year. - New capacities coming online and approvals for newer products and customers underpin this growth visibility. - The southern emulsifier Australian subsidiary is projected to contribute about ₹75 crores in revenue over the next two to three years. - The company anticipates maintaining high double-digit growth rates for the next 3 years, driven by expanded capacity and market access. - Product diversification and multiple verticals contribute to sustained growth potential. - Volume increases, new product commercialization, and growing customer base are key revenue drivers, rather than price hikes.

- FY '26 revenue growth expected upward of 100%, targeting around ₹250 crore (Page 6, 7, 21). - Sustained high growth trajectory over next 2-3 years driven by capacity expansions and new product commercialization (Pages 3, 18, 21, 24). - EBITDA margins expected to remain stable in the 19%-22% range (Pages 7, 18, 24). - PAT margins to be maintained at similar levels to EBITDA margins, around 19%-22% (Page 24). - Capacity utilization improvements and new capacities coming online to support growth and profitability (Pages 7, 9, 21, 24). - Australian subsidiary targets revenue contribution of about ₹75 crore over the next 3 years, supporting international footprint and diversification (Pages 3, 11, 24). - EPS is expected to improve in line with revenue and profit growth, supported by operating leverage and efficient capacity utilization.

- Current CapEx involves expansion to add 400 to 500 metric tons capacity, funded by roughly ₹17-18 crores, primarily from IPO proceeds and rights issue. - Phase one expansion targets early to middle of next year for partial capacity coming online; full utilization expected within 2-3 months after commissioning. - Additional land acquisition adjacent to existing Lote Parshuram facility to support capacity expansion up to 1,000 metric tons. - Phase two and further expansions envisioned to raise capacity beyond 1,000 metric tons, with debt funding considered approximately 10-14 months post-phase one. - CapEx mix planned as combination of equity (used in phase one) and debt (planned for future phases). - Strategic investment includes ramping up R&D team (~12 members) to support product development. - Australian subsidiary in initial stages, targeting revenue of about ₹75 crores in 2-3 years as part of strategic geographic expansion.

- Currently, there are no immediate plans for equity dilution beyond the recent rights issue. - The company prefers to use a debt component for additional capital expenditure (CapEx) in the near future. - For the ongoing expansion (phase one), funding is through equity, specifically the recent rights issue. - For phase two and further expansions (after approximately 10-14 months), the company plans to consider debt financing. - The existing banking relationships and sanctioned credit lines are active for debt utilization. - Promoters will participate in the rights issue, but exact amounts are undisclosed. - The rights issue price was set as per SEBI and exchange norms, with some discount beneficial to shareholders.

- The company has clear visibility on growth for the next 2-3 years based on existing market access and order book. - The order book includes incremental volume allocations at existing customers, approval of new products at existing customers, and onboarding of new customers. - For the Australian subsidiary, initial orders have been executed recently, with expected revenue of about ₹75 crores over the next 2-3 years. - Customer approvals are ongoing, with two customers already contributing and others in the final stages of approval. - Agreements are mostly on monthly price revisions, with some large customers having agreements up to 3 months. - The focus is on scaling capacity utilization alongside incoming orders to meet projected revenue growth.