Vishnu Chemicals Ltd Q4 FY26 Earnings Analysis

- Strontium Carbonate plant expected to commence regular sales from Q1 FY27 after customer approvals by end of Q4 FY26; targeting export markets primarily in Far East Asia. - Chrome metal capacity of 6,000 tons expected to be online by FY28, improving EBITDA and gross margins as an import substitute. - DMSO capacity to be built in phases: initial 5,000 tons expanding to 10,000 tons by end of FY27, targeting niche markets like agrochemicals and pharma. - Chrome oxide capacity expansion to 20,000 tons at Vishakhapatnam planned, boosting revenues. - CAPEX of approx. ₹180-190 crores in current year and ₹300 crores next year for expansion and mine acquisition, expecting asset turns of 1.5-1.8. - South Africa mine acquisition to start operations from Q1 FY27, improving margins medium to long term. - Overall, EBITDA margins targeted to improve to ~20% by FY28 through better product mix and scale. - Export and domestic sales balanced approximately 50:50 keeping growth balanced across regions.

- EBITDA margins in the chromium segment are expected to improve to around 20% by FY28 due to chrome ore acquisition, better economies of scale, value addition, and improved product mix (Page 12). - Strontium Carbonate plant is expected to ramp up production with customer approvals likely by Q4 FY26, contributing to sales starting Q1 FY27; gross margins for Strontium business expected at 50-52% with asset turn of 1.5 to 1.8 at 80% utilization (Pages 10-13). - New capacities for dimethyl sulfoxide (DMSO, capacity 10,000 tons phased), chrome oxide (20,000 tons), and chrome metal (6,000 tons) expected to come online by FY28, contributing to revenue and margin expansion (Pages 6, 12). - Backward integration via South Africa chrome mine acquisition is expected to improve consolidated margins medium to long term, with operations starting Q1 FY27 (Page 10). - The company anticipates growth driven by domestic demand and export opportunities, with a balanced export/domestic sales mix (approx. 50:50) (Page 12). - Overall, steady revenue growth and improved profitability driven by strategic expansions and market dynamics are expected over the next 2-3 years.

- Vishnu Chemicals is undertaking CAPEX of approx. ₹180-190 crores in the current year, including investments in DMSO production and a mine acquisition in South Africa. - Planned CAPEX of around ₹300 crores for the next year, focusing on capacity expansions and new projects. - Strontium Carbonate plant already operational with a capacity of 10,000 tons; plans to expand capacity up to 17,000 tons in phases. - Chrome oxide expansion underway with a capacity of 20,000 tons at Vishakhapatnam. - Planned Chrome metal capacity of 6,000 tons, expected to go online by FY28. - DMSO plant planned with a total capacity of 10,000 tons, phased expansion starting with 5,000 tons. - Possible capacity expansion for PBS segment considered for FY27 or FY28. - Chrome ore mine acquisition in South Africa expected to improve margins from FY27.

- The company is funding the approximately ₹500 crore CAPEX through a combination of internal accruals and debt. - No specific mention of raising new equity or additional debt beyond this for funding is provided in the transcript. - The ₹500 crore CAPEX includes investments in projects like Dimethyl Sulfoxide (DMSO), chrome metal expansion, and chrome oxide. - The company plans to invest about ₹180-190 crore in the current year (FY26) and approximately ₹300 crore in the next year (FY27) as part of its CAPEX program. - There is no explicit disclosure of any new fundraising plans either through debt or equity beyond the current CAPEX funding approach mentioned.

- The company is witnessing a very strong order book with improved margins as of the latest update (Page 7). - They expect regular sales for Strontium Carbonate starting from Q1 FY27, pending customer approvals (Page 9). - For PBS, they have a strong order book and consistent supply, having achieved about 60% market share in India (Page 4). - Discussions with clients for Strontium Carbonate, both domestic and export markets, are ongoing with approvals expected within 3-6 months (Page 8). - The order pipeline for Barium Carbonate has improved with the EU anti-dumping duty on Chinese products, contributing to a good order backlog (Page 6).