Ladies and gentlemen, good day and welcome to the Navin Fluorine International Limited Q1 FY26 earnings conference call. 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. Irfan Raeen from MUFG Interim IR. Thank you, and over to you, sir. Thank you, everyone. Welcome to Q1 FY26 earnings conference call of Navin. Today on the call, we have with us Mr. Vishal Mafatlal, Chairman; Mr. Nitin Kulkarni, Managing Director; Mr. Anish Ganatra, Chief Financial Officer of Navin Fluorine International Limited. This call may contain forward-looking statements about the company, which are completely based upon belief, opinion, and expectations as of today. Actual results may differ materially. These statements are not a guarantee of our future performance and involve risks and uncertainties that are difficult to predict. Our detailed safe harbor statement is given on page number two of investor presentation of the company, which is uploaded on stock exchanges and on the company's website. With this, I now hand over the call to Mr. Vishal Mafatlal for his opening remark. Over to you, sir. Thank you. Good evening, ladies and gentlemen, and welcome to Navin Fluorine's Q1 FY26 earnings call. I am joined today by our MD, Nitin Kulkarni, our CFO, Anish Ganatra, and Ms. Payal Dave from MUFG, our Investment Relations Advisor. It gives me great pleasure to share with you all that we have delivered yet another good quarter, a strong reflection of our strategic focus. FY26 commenced on an optimistic note, marked by a successful completion of our INR 750 crore QIP. We are delighted to share that the offering received a positive response from investors. We extend our sincere gratitude to all participants for placing their trust in us and providing the capital to fuel our future growth. In Q1 FY26, our revenue rose by 39% to INR 725 crores. Operating EBITDA more than doubled, reaching INR 207 crores, an increase of 106%. Our net profit grew by 129%, coming in at INR 117 crores on a year-on-year basis. All three of our business divisions reported robust growth in Q1 FY26, setting a strong tone for the fiscal year ahead. With a solid order book in place, we remain optimistic about sustained momentum in the coming quarters. In the HPP segment, we are happy to share that our R32 project was successfully commercialized in March 2025 and is running at optimal capacities. Given the accelerating global demand for R32, we are firming up our plans with international partners to further capitalize on this opportunity. Meanwhile, our AHF project continues to advance steadily, with completion target for the end of Q2 FY26. As mentioned earlier, we have an exclusive tie-up with Buss ChemTech AG, Switzerland, as a technology partner to commercialize our electronic-grade HF. In the specialty chemicals segment, we are set to deliver supplies for three new molecules in Q2 FY26. Additionally, our fluoro specialty project in Dahej, which was launched in December 2024, is expected to deliver a meaningful contribution this year. We have also announced a strategic partnership with Chemours to manufacture their proprietary product, Opteon, a two-phase immersion cooling fluid. Project execution is already underway. In our CDMO division, the order book continues to show strong momentum. Our cGMP 4 facility phase I expansion is progressing as planned, with commercialization expected in Q3 FY26. The expansion initiatives across all three segments reflect our commitment to enhancing value addition, targeting high-margin opportunities, and diversifying into emerging high-growth sectors. We will continue to deepen our relationships with customers and suppliers while developing new relationships across different geographies and business verticals. Thank you once again for joining us today. With that, I would like to now hand over to Nitin to provide an update of our operating and business performance. Thank you, Vishal Mafatlal, and good evening to everyone. We are pleased to share that our team delivered good results last quarter. Our priorities for FY25-26 also include the successful commissioning of AHF and cGMP4 projects, ramp-up of recently commercialized assets, expansion of our specialty and CDMO portfolio, and driving margin optimization through operational excellence. Let me brief you on the progress we have made in each vertical. Growth of revenue in HPP segment is driven by both increased demand and improved price realizations. The pricing landscape for refrigerant gases remains firm. The capacity we commercialized for R32 in March 2025 is at an optimal utilization. Our HFO business is continuing to operate as per our expectations. Our exclusive tie-up with Buss ChemTech AG for high-purity electronic-grade HF is progressing well. We are making inroads through greater engagements with customers so as to access electronic-grade market globally. Our specialty chemical division is operated at an optimal utilization level in the last quarter, and for the coming quarter of the year too, we have order visibility. In the last quarter, we mentioned we had received validation from our global partners for two fluoro intermediates for their new innovative AI in FY26. The initial supplies will commence in quarter two FY26. Apart from this, we also expect supplies for one more fluoro molecule, which will be delivered in the next quarter as well. Our CDMO division delivered good results last quarter. We have strong revenue visibility backed by robust order book for FY26. Further, U.S. and Europe regulatory approval for label extension of the molecule under the European MSA is very encouraging. We also received scale-up order for another late-stage molecule with EU pharma major for supply in quarter two FY26. Looking ahead, we will be capitalizing on our robust relationship with global pharma innovators, and we will continue to build a strong pipeline of early and late-stage molecules and leverage on our state-of-the-art cGMP infrastructure and R&D capability. We continue to invest in people and capability across all the verticals to further enhance our technology platforms and manufacturing infrastructure as we progress in the next phase of growth. We shall remain focused on strengthening our existing verticals, expand our product portfolio, and executing capital investment judiciously. On this note, I would like to hand over to Anish to brief you on financial performance. Thank you, Nitin. Good evening, all, and I welcome you all once again on the earnings call. Before we turn to our financial results, here's a brief on the July 25 QIP. We raised INR 750 crore by allocating 1,602,564 equity shares to qualified institutional buyers at INR 4,680 each. The overwhelming subscription underscores strong investor confidence in Navin Fluorine's business model. The proceeds from this fundraising will be deployed towards strengthening our balance sheet. Let me now walk you through our consolidated performance for the quarter ended 30 June 2025. We have reported a revenue of INR 725 crores for the quarter, reflecting a strong year-on-year growth of 39%. Operating EBITDA for Q1 FY26 was INR 207 crores, with a growth of 106% compared to the same quarter last year. The operating EBITDA margin stood at a solid 28.5%, a growth of 935 basis points versus Q1 of last year. Operating PBT for the quarter was INR 141 crore, reporting an increase of 143%. Profit after tax stood at INR 117 crores in Q1 FY26 compared to INR 51 crores in Q1 FY25, registering an impressive growth of 129%. Operating cash flows for Q1 FY26 is INR 231 crores, and net debt to equity stood at 0.34x, pre-fund rate. With that, I would like to request if the call can open for any questions or interactions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have a first question from the line of Sanjesh Jain from ICICI Securities. Please go ahead. Yeah, good evening, sir. Thanks for taking my question. I got a few of them. First, on the R32, Vishal Mafatlal mentioned in the opening remark that we are in discussion with a few international partners to extend the capacity. Now, if I go by the quota determination formula, given our R22 capacity at around 10,000 metric tons and whatever we have sold during the quota determination period of 2024- 2026, it appears that we can go up to 26,000, 27,000 metric tons or probably a little more than that. Are we looking to harness the entire opportunity given that there is a strong demand for the product and the pricing looks much firmer than what we thought? Sanjesh, you want me to take that one by one, or you want to finish your questions, and then I can answer? Okay. Then I will ask the question so that's on the R32. Second, on the HPP performance, again, we mentioned that we are expecting a significant ramp-up in the revenue this quarter. Have we received the PO, and can you qualify that? Is it the 300 crore what we were expecting from the anchor customer that's going to deliver? And that involves both the product, or we are talking only the single product? That's on the HPP. Third, on the CapEx plan, Anish, in the last quarter, you mentioned that you would talk more about CapEx plan. We did mention 500-600 crore. Now that we also have cash on the book, which I thought we would look more to expand aggressively, can you share more on the CapEx plan for FY26 and FY27? These are my questions. Thank you. Thanks, Sanjesh. And so let me take this one by one. The R32, your things are all part correct in terms of what numbers you have. I mean, will we be taking a right to our entitlement? I think the answer is a simple yes. The question is, when will we do that? We will do that when we think the discussions are more firmed up with the large customers, as we are making sure that overall, the product realization on the basket is in the interest of the company and to the interest of the shareholders. We feel that this is a product to nurture and at the same time commercially manage the risks as we go into any expansion conversation. So that should answer your R32 question. Next term, we have a firm order for the remainder period of the year, and absolutely, it will be ballparking the number that you talked about, give or take some points here or there, right? But is it for a single product or both the products? I mean, the question is the customer has actually asked us to prioritize the new molecule earlier, and as a result of that, as we speak now, we are already undergoing a modification to make that product. So that will be our primary focus to deliver, and we expect those deliveries to start within Q2 itself. Okay. And then as we come towards the end of the year, we'll go back to the original molecule too. So it will deliver the what we had said, half the part this year and part for next year, yeah? That's what we are on track for. Now, the CapEx frame we had mentioned was INR 500-600 crores, as you rightly said. With the fundraise, I think it's fair to assume that our CapEx frame, and remember, I'm talking of the CapEx frame here, will be expanded to INR 700-1,000 crores, which means that is my bandwidth to spend CapEx. Of course, we will only do this for the right project with the right value. So that is something that we are progressing in a very disciplined way. We have a hopper of projects that will continue to mature, and as they mature to an investment decision, obviously, we take it to the board and announce it to the market. For that, you'll have to be patient. This 700-1,000 is what we are talking for FY26, right, Anish? No, no, no. Or this is 2026 and 2027? I'm talking of the CapEx framework. As this is my, if you look at the financial framework, we talk about our net debt to equity. We talk about what is the CapEx rate. So this is to give you guys an indication that this is the kind of CapEx Navin could undertake, maintaining solid financial ratios while continuing to hold the strength and the flexibility in the balance sheet. But which project we apply, I will not second guess at this stage. No, no, that's clear. We will wait for the board approval for more detail, but this is helpful. Just one last question. We were talking about 25% margin guidance. We are at 28%. Do you want to relook at the guidance for FY26? Sanjesh, I don't think there is a binary answer to that, but I think what might help us is to look at we were in Q1 of FY25 at 19.5%, and we are today at 28.5%. So you're talking roughly about 930 basis points is what we are talking about. If you look how that growth has come through, two-thirds of that has come through operating leverage. Now, and one-third has come through pricing and environment, what one may call as that. Now, obviously, a lot of that contribution on the pricing side is coming from the strong R32 refrigerant gas pricing environment. For the ones that we are talking on operating leverage and the efficiencies that we are bringing into the system, there is a lot of effort that the team is continuing to do and will continue to do. We have always said that we will not leave any price on the table, and the team will continue to work with steadfast focus on manufacturing excellence, ensuring that assets are brought up in time, assets are operated to their optimal capacity, and the cost-saving focus continues. So while I would say that I think there is reasonable confidence to say we'll be north of 25, I don't think we are at the stage where we would like to update the guidance today. Let this cement for a couple of quarters, and then we can revisit this conversation. Got it, Anish. Thanks for answering all those questions so patiently, and best of luck for the coming quarters. Thank you. The next question is from the line of Jason Soans from IDBI Capital. Please go ahead. Yes, sir. Thank you so much for taking my question. Sir, just wanted to understand in terms of the AgChem recovery. Last year was a pretty weak year for that. And now just wanted your take on how the recovery is taking place in terms of inventory rationalization. Is it done, and is it done? What are the customers' commentary? What are you hearing from the customers? Just wanted some color on that. So I think it is pretty consistent with what we've always sort of communicated. See, the inventory stacking issue is long gone, Buss. I think the Chinese intense competition, which we've talked about before, continues to remain. Pressure on pricing remains. Volume recoveries in the second half, we are definitely seeing that come through in terms of the inquiries and the conversations. There is no doubt about that. We have a solid order book also for the specialty on the agchem side. But one has to remember this is not sort of the conversation is not so much about hockey stick recovery. There will be slight recoveries on volume, and most of that could be eroded with pricing pressures too. So it's pretty much sort of flattish to slightly up kind of conversation we are talking about. For Navin, you should kind of seeing the way I would put it is we are bringing up the whole new capacity year on year. So Sanjesh just asked a question on net term, and that itself is a Y on Y increase if you start to think about the numbers for Navin. That is protected under a long-term contract order. Okay. Sure. Thank you so much for that, sir. And next question just pertains to the CDMO space where you basically target pharma. So just wanted to understand, sir, when you're targeting advanced intermediates there in the CDMO business, the CRAMS business, so how do you target molecules? Which areas or which therapies are afforded? Just wanted to understand from that sense, how do you target molecules to scale up? So the way you should look at our CDMO business is about capabilities and platforms and technological sort of. It's a service play that we are in that space. Our strength comes from handling complex chemistries and complex synthesis, right? In fact, if you remember a couple of, I think it was last year when we rebranded CDMO division of Navin as Navin Molecular, the idea being that we can play across all the sort of innovative molecule compositions in this space. And again, our focus here on growth has been quite sort of balanced. We've changed the strategy as we talked earlier also to balance late-stage and commercial with early-stage molecules, right? And that is yielding very good positive results. I mean, the Fermion label extension is very, very encouraging. We already have a solid order book from Fermion for FY26. In fact, I could almost say for calendar year 2026. And also the order for a new late-stage molecule from a EU major is also working in the right direction from a strategic point of view. Simultaneously, we are also working with a new EU major for another molecule, which is in the late-stage commercial stage, yeah? Okay. So overall outlook, sir, does look positive on the CDMO front? It looks positive. I think we are progressing towards the aspirational number that we set for FY27, yeah? Sure, sure, sir. And so lastly, just wanted to understand in terms of the ref gas, of course, pricing trajectory has been on an uptrend. QoQ probably it has been around 20% levels. So just, sir, if you could give us some color in the growth, how much is volume-led, how much is pricing-led? Would that be possible, just some color on that? So I'll tell you, typically, for us being in the business, we don't speculate on prices. Our logic is very simple, that we will play and make sure the product is placed for value wherever it is placed. So whatever scenario we are operating in, our thinking will always be around the fact that make sure that you produce the product. There is a strong demand tailwind here, and the focus of the management is to ensure that on a basket level, you place the product in different geographies aligned with our strategic priorities so that overall realizations are better. But we don't second guess on pricing, boss. It's too difficult to know. Okay, sir. Sure, sir. Thanks for taking my call. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Rohit Nagaraj from B&K Securities. Please go ahead. Thanks for the opportunity and congrats on the very strong set of numbers. So first question is on the specialty chemicals front. So last couple of quarters, the commentary is that at least in the PPT, we are optimally utilizing the Dahej and Surat capacity. And in your opening remarks, you said that there is a strong demand momentum backed by firm POs. And we don't have any material Capex which is planned for this. So how these two things are gelling together that there is a demand that capacities are optimally utilized? So is there any incremental upside from the further optimization of these capacities, or our period of execution will be shorter for any incremental capacities that we require based on the POs? Thank you. So again, last time we had talked about saying that we are at 80%-85% of the capacity, and that was more in context of the Dahej. Typically, the way we operate this business is we operate it looking at our plants, both MPP plants in the Dahej as well as in Surat, and combine and optimize those in terms of how we map different products, right? So is there an opportunity to grow from the baseline itself? Absolutely. This quarter, if you look at it, the Dahej is operated at 70% sort of, and I'm talking this more in terms of par because I'm sure you understand that from an MPP point of view, every molecule has a different batch cycle time, etc. It's difficult to give you one standard thing in terms of tonnage, but in terms of cap, if you look at it, we've done about 70% at the Dahej plant. There is room to grow, no doubt about it. Also remember, when you look at Navin, again, I will re-emphasize the fact that the growth coming in this year will also come from the large fluoro specialty plant that we have put in, which was the 540-odd crores of investment. Half of that cap is going to be a new revenue coming in materially there, new revenue coming in this year. Right, so last time. Yes, sir. Yes, sir. Got this. And just again, on the second half of the 540-gross project, where we will have to find the new customers, how are we progressing that, and how are we? It's already in place. place. It's already in place, and we are reasonably confident of hitting the full par by FY27. Perfect. That answers my questions. All the best. Thank you. The next question is from the line of Ankur Periwal from Axis Capital. Please go ahead. Yeah, Hi, Vishal congratulations on a strong set of numbers. I hope I'm audible. Yes, Mr. Ankur. Please go ahead. Yeah, we can hear you, Ankur. Yeah, good. Okay. So first question on the CapEx guidance that you shared around 700-1,000 gross on an annual basis. Just trying to understand from an end application perspective, are we also including pharma here from an expansion perspective, or is it largely specialty ref and maybe other areas that you're looking at? Okay. So, Ankur, as we said before, we are also, apart from the three verticals, we are also incubating advanced materials, right? So the CapEx allocation that we are talking about, we don't do this by vertical. To be honest, we do it in a sort of a very disciplined way. First, that it has to align with our strategic priorities. If we've decided to play that in a product play, or if we've decided to enter in a new vertical, there will be preference to allocate CapEx over there. Obviously, the next thing are the economics and the commercials around it, right? So we try to bring the best from what is good for the company in the long term and for the shareholders in the long term. We don't sort of pre-allocate the CapEx, which is the idea of giving a CapEx wave. Because CapEx wave is agnostic, it is reflecting the strength of my balance sheet over the next couple of years that this is the range of CapEx I can sort of incur without having to worry about any intervention. Does that make sense? Sure. Yeah, yeah, yeah, yeah. Makes sense. So just a follow-up on that, you did mention planning to expand into electronic chemicals as well as the advanced material there. And when you say that the. Sorry, I'll repeat. Yeah, no. I'll repeat. So you did mention of expansion into electronic chemicals, advanced materials, etc. Are there any active dialogues going on right now, or these are more work in progress? Absolutely. Absolutely. There is a lot of work happening in that space. The exclusive arrangement we announced with BCT in the last quarter was a step in that direction. The Chemours advanced materials is also in the same direction. Additionally to that, there are several other conversations both in the semiconductor space as well as in the applications that are relevant for high-value environments like data centers, etc. Those are pretty much ongoing. We are establishing Nitin and Vishal bhai and I'll let Nitin add if he is at the end of this conversation. But Nitin and Vishal bhai are continuously meeting new customers on this front and just seeing how best to sort of access the growth over there in a meaningful way. Ankur, just to add on what Anish said just now, so in this advanced material segment also, it is going to be product as well as the service play. The development environment, the analytical infrastructure, the skill set to bring the product from the early-stage development to the piloting levels, and then to reach to the new standards of this requirement of this industry. Fortunately, we have developed that infrastructure skill set by partnering with the right stakeholders in this journey for both product as well as service play. This is just beyond the Electronic-grade HF. We are really looking at the basket of products which normally requires to be showcased in this industry to become a significant player. Electronic-grade HF is just the stepping stone. Based on that, we are also evolving the other product portfolio, and a lot of developments are happening on that front also. Please consider this electronic-grade as the starting point with a couple of other products which are either in the development stage or in the pilot stage. Again, the end-use industry is same as Anish was saying. Our focus is how we can expand our product portfolio in data center, high-end data centers. Even in semiconductor, we are looking at the niche in the photoresist type of the applications. This is at the end of the day, the high-value environment which we are going to which we are targeting with the skill sets and the infrastructure which we have developed. Yeah. Sorry, sir. That's helpful. Yeah. So just one small question on the CDMO side. Congratulations for the new molecules, especially the late-stage one wherein we are making further inroads. How do you see the mix between late-stage and the early-stage one spanning out as we look at our $100 million target there? So Ankur, I mean, in terms of the number of molecules, I think we've always said that our idea will be that at any given point in time, we will have about 40%-50% of early-stage and 60%- 50% of late-stage. Of course, in terms of value, the late-stages will start late-stages and commercial will start to occupy a bigger volume because that's the game, right? But the portfolio will always be balanced because as we sort of mature this business, the idea is that the early-stage at some point will become the future late-stages and commercial. So we will make sure that the balance will kind of maintain. In fact, even for this quarter, that's the kind of mix of the molecules if you look at it. That's helpful, Anish. Thank you and all the best. Thanks. Thanks. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Krishan Parwani from JM Financial. Please go ahead. Yes. Hi, sir. Congrats on a very strong set of numbers. Two from my side. First, on CDMO, when will phase two of cGMP for Capex of 128 crores begin? And which customer will it be for? Any of the EU majors or U.S. major that you have mentioned in the presentation? Yeah. What's the second question, Krishan? Which customer will it be for? Any of the EU majors or U.S. major that you have mentioned in the presentation? All right. Okay. Thanks for that. So CDMO, the phase two, 128, will basically be triggered as soon as we have greater visibility on any of the customers. That's the capacity we are building in a scalable and modular form. From the way we look at currently, it looks very high possibility on the EU major's product, but it's early days. I mean, when we get to that, we will sort of certainly look at it in that way. Our idea about these CDMO businesses is actually to make sure that whenever the capacity utilization of the plant hits 60% or more, it starts triggering the thought for the next CapEx investment because you're always going to need that sort of headroom to continue to grow. Understood. Very well explained, sir. And second question is on the HF part. So given you are expecting commercialization for HF soon, when do you expect merchant sales of, let's say, diluted HF first and probably just solar and electronic-grade HF? So merchant sales, some of that will start actually this year itself. Solar and high-purity, let the Buss Chem work get done. We are currently in detailed engineering stage. When that sort of gets done and we start putting in more CapEx, obviously, that will come. Our focus will be mainly in the electronic space as opposed to the solar space. Okay. It's kind of aligned with our thinking that in most of the places, we will be only in the niche products. We will not be in something that is towards getting commoditized. So I mean, a good example of that is the Chemours announcement that we did. That's the kind of niche applications we are going to be working on, and we are progressing some of the discussions along those lines. And hence, I kind of specifically called out the fact that the focus is on electronic applications rather than solar. Noted, sir. Thank you so much for answering my question. Wish you all the best, sir. Thanks, Krishan. Thank you. The next question is from the line of Nilesh Ghuge from HDFC Securities. Please go ahead. Yeah. Thank you, sir. So my question is on the Chemours project. The project is expected to commission in just one year time. So at what stage the project is currently? And once it's commissioned, so how quickly we can achieve the optimum level and what kind of a revenue potential you see from this project? So again, Nilesh, I think we've talked. I'll take the last question first because that's the most easiest. We are not allowed to talk on the revenue asset terms or capacity under the commercial arrangement with Chemours. We've already clarified that previously. So I will not take that bit again. The other sort of point about where are we today? The work is going on. Project is already underway. The teams are working together. Detailed engineering is being progressed on that. And we are on track for the first quarter of FY27 is when we said we would start commercial production. That's when we will start. This is, I mean, from the size of the Capex, you know this is a small capacity plant. It's to help accelerate the adoption. And therefore, achieving optimum will be pretty quick. Thank you. Okay. Thanks. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Arun Prasad from Avendus Spark. Please go ahead. Good evening, everyone, and thanks for the opportunity. So my first question is on the Nectar project. We are at the dedicated capacity. We said that we have very firm order for the calendar year 2026. And these volumes represent what kind of capacity utilization for the dedicated portion? Okay, so I mean, yeah, you're right that we have firm orders for the dedicated capacity. For the dedicated capacity, we'll represent 100%, which is 50% of our overall capacity, and which is why we said that half of the power will come this year and the full power will be achieved next year. All right, sir. So the firm order that we are talking about, as a percentage of, say, the dedicated capacity, what would be that indicator utilization? 100% of the dedicated capacity. 100%. Oh, okay. And. Yeah. That was always the plan, Arun. The plan was that in the first year, we would run the dedicated capacity to its peak. That's how the ramp-up would happen, and in the second year, we would sort of take the capacity for our own captive thing, with the first year also producing some extra material to complete the validations for the captive portion. Understood. Second on Fermion, we said that for our calendar year 2026 delivery, how much of that is dependent or connected to our phase one startup? I mean, if phase one of cGMP4 gets delayed, we will be slipping up on the delivery on this? So I don't know why you say phase one is getting delayed. We will not check that. But how much of that is, so you know, the way this works. With Fermion, again, commercially, this is 3% of their value, right? We are working very, very closely with them on the project. They are with us on the ground, monitoring the project along with us all the time. So if there was any doubt in anyone's mind of a slippage, you wouldn't have the orders in your hands. No, no, no. I was just wondering what can lead us to kind of miss this dilution? We're not anticipating anything. We're not anticipating anything. So there is enough room. We are doing for Fermion even today. And this is just the stage at which we are in the CDMO journey. From our, and we said this before. Just from the phase one, two, and three, we can do revenues up to $55-$60 million. So that's not a problem. With phase three, phase four coming in, phase one, we are on track for that funding. So there is room to. There is flexibility within the asset to manage any unforeseeable events, so to say. But not that we are expecting any. Good to hear, Anish. No issues. Mr., I'm sorry to interrupt. May I request you to please rejoin the queue? Sure. Sure. There are several participants waiting. Thank you. The next question is from the line of Abhijit Akela from Kotak Securities. Please go ahead. Yeah. Good evening. Thank you. Just one question on the specialty chemical quarterly revenues. So INR 219 crores this quarter seems to be somewhat lower than, I think, INR 257 or so last quarter. Sorry, INR 259 last quarter. So if you could please just help us understand what the reason for that is. No, are you comparing it Q on Q, is it? Yeah. March quarter versus June. Yeah. I think you're, yeah, that's what you're doing. So these are campaign driven. I mean, Abhijit, as you are aware, the campaigns are what drives the full utilization. Like I said, last quarter, we had 80-85% utilization. This quarter, we are talking of about 70% utilization. So I wouldn't read anything beyond that. You should look at this from a full year point of view. And even in these environments, it should be, we feel that we are in a very good place, one, because of the base load order book that we have, and plus the new capacity that is coming in. That will drive a decent growth in the Specialty Chemicals, consider year on year. Okay. Thank you. And the other one I just had was on the seasonality of the HPP vertical. Just given that R32 is a newer product for us and going into maybe some newer areas, geographies, etc. So if you could please just understand, is this a good number, the Q1 number, to sort of assume for the remaining quarters of the year, or could there be some seasonality? I mean, there is, if you know how these products get sold today, there's more export versus domestic demand on this. So there is a good sort of balance of both when you look at the overall portfolio. And I think the run rate that you're seeing in this quarter is a good run rate to hold. Okay. Understood. Thank you so much, Anish. All the best. Thank you. The next question is from the line of Meet Vora from Emkay Global. Please go ahead. Yeah. Thanks for taking my question. So the first question was on R32. What I understand is that we have done the earlier expansion at significantly lower CapEx because maybe we have converted some existing assets. We have expanded around 5,000 tons at 80 gross CapEx. Now, if we plan to expand it further, just wanted to understand whether the CapEx will be relatively large compared to our previous expansion. And also, by what time should our capacity come on stream if we want it to be considered fully for the quota calculation or quota consideration? So Meet, I'm just kind of struggling with your comparison on the earlier capacity. Both our R32 clients are roughly in the same range of CapEx. No. What I'm trying to understand is if we expand further, the next level of Capex will be more greenfield in nature versus what we have done previously? No, no. Both are. I mean, this is the same. It's all about we have not done any conversion from anything to anything. It's basically fully around the passive phase. So we don't think that. I don't know where you're getting your info, but it's kind of, it's not a question even in our minds, to be honest. Okay. Okay. And sir, just wanted to understand. Mr. Bhawan, I would request you to please rejoin. Thank you. Thank you. The next question is from the line of Siddharth Gadekar from Equirus Securities. Please go ahead. Hi, sir. So just can you just give a sense on the realizations between electronic-grade HF and the current HF that we would be selling in the external market, and what would be the margin difference between these two products? So that is a great question. Unfortunately, we will not share specific numbers on it, but rest assured that our whole idea of going into electronic-grade is to get into more and more niche applications. As you get into niche applications with greater level of chemistry and synthesis, you are going to get into a higher realization per kg of HF. And that is the driver, which is why we've very clearly taken a call to stay away from anything that's not niche in this area. All right. Thank you so much. Thank you. The next question is from the line of Surya Narayan Patra from PhillipCapital India. Please go ahead. Yeah. Thanks for the opportunity, sir, and congrats with a great set of numbers. My first question is on the specialty chemical side. The three molecules what we are talking about, starting from the next quarter, could you give some more color to it? What is the nature of the product and in terms of size, scale, and all those kind of things? Yeah. So firstly, Surya Narayan Patra, actually, in this quarter, the quarter that we are currently talking in, so it's in Q2 quarter as opposed to Q3. I'll just clarify that. The other thing is there are three molecules, but two of them are large enough or have the large enough potential to be calling out at us for investment. But that we will have to wait and develop. We are starting the supplies now, and as that matures and develops and we know what the—we can see the size of the opportunity materializing, we'll definitely look at expansion. Okay. It is for an existing patented molecule kind of thing, or it could be a generic opportunity? Hence, ramp-up could be quick. How should one think that way, sir? So this is all for a new AI. We're talking for a new. Okay. Just one clarification about the HF project, sir. What is the service angle that you have mentioned about this HF project? Sorry. Service angle for HF? Yeah. You know. Meetin, sir, was mentioning a. Sorry. Can you just elaborate a little bit more so we can relate to it? No. In fact, in the opening remark, Meet Vora, sir, mentioned about a service angle apart from the product angle for the HF project. Oh, okay. So what that means is if you look at our approach, we have got an approach where we do a product play and where we do partnerships or service with large majors like Chemours, Daikin, Honeywell, and the likes that we are talking about. Now, in the area where we've got the technological capability, we've got the ability or where it is adjacent to our own capability, plus we've got the capability to place the market and call the market, then we will do that. In the area where we think the best value for shareholders is accessing through a partnership lens, that's what we will do through a partnership lens. So that's what he meant by product and service. Okay. And how much of that would be for captive? I would request you to please rejoin the queue. Thank you. The next question is from the line of Bhaskar Chakraborty from Jefferies. Please go ahead. Hi. Thank you very much. I wanted to ask that U.S. has announced a 25% tariff on India, plus some additional penalty because of our links with Russia. So how does that impact our exports to Honeywell and the rest of the exports into U.S.? So Bhaskar, your voice was a bit, there was a lot of disturbance in the audio, but I'm taking you're asking about the tariff question. I mean, that's really hot off the press, right? I mean, so you picked up the question as it's coming. But you've got to think of Navin in two ways that we are, where are we exposed to the U.S. market directly? So in a sense, we've got an exposure to some of our refrigerant gases, which we are covered under anti-dumping duty. So there is not much of an impact there. The other is the, somebody, there's some background noise from somewhere. The other thing to remember is where we do have a contract and supplies under existing long-term contracts, it's too early to talk about the consequences or the impacts. But also, we don't know about this tariff, how it will apply, where it will apply. And this is all sort of. It's too early, to be honest. Let us look at it, and it's ultimately going to be a relative game. And also, important to understand if this is going to be a permanent thing or is it a temporary thing till agreement is reached. Yeah. Okay. Thank you very much. Thank you. The next question is from the line of Yash Shah from Aditya Birla Sun Life Insurance. Please go ahead. Hi, sir. Thank you for the opportunity. So it was more of a clarification question. Did you mention, sir, what kind of growth can be expected ex Nectar in the specialty chemicals business for FY26? All we've talked about is the path that we've indicated. Half of that path is very fairly reasonable to expect that to come in FY26. But I'll let you do the math, Yash. Got it, sir. Got it. Yeah. That's all from my side. Thank you. Thank you. The next question is from the line of Arun Prasad from Avendus Spark. Please go ahead. Thanks for the follow-up opportunity. Sir, for all the plans we have on consuming the new HF capacity, whether it is R32 or the specialty grade HF, by which time period do we have a visibility to kind of completely go 100% on this HF plant? So Arun, again, strategically, we've always said that we are going to drive value here. So the game here is going to be value over volume. Eventually, our game will be to try and get more and more per every kg of HF. This plant has been set up to meet our long-term requirements and not necessarily near-term, short-term utilization. There will be some sort of temporary stuff we do from merchant, etc., but that's temporary. The ultimate game is to not leave the price on the table. Oh, understood. Understood. So does that mean that this year we will be, I mean, we always said that merchant, I mean, replacing some of the imports into India by other merchant sales. That plan is on track irrespective of what we do with the specialty grades? Sorry. What plan? Some of the merchant sales in India. Yeah. So if you look at Navin, Navin had a merchant sale footprint of about 6,000, 7,000 metric tons even a couple of years ago. So obviously, there's a market and there is value to be achieved in the near term. We will do it. But that is not something why we set up strategically the plant. The plant is set up strategically to go downstream into more and more niche products and derive greater value per kg of HF rather than place the volume. So it's a value over volume strategy, not necessarily a volume strategy. Understood, sir. So one bookkeeping question. This quarter, the absolute domestic sales on CDMO seems to be very, very low. Any particular reason or we should just see it as a blip in the radar? No. Usually, our CDMO sales have always been with a very strong export bias. In between, we were supplying at the behest of our global customer to another service provider, another of their service providers in India. So sometimes these export domestic splits don't tell you a lot. There are more questions than they answer. Understood. No problem. Understood. Thank you very much. All the best. Thank you. That was the last question for today. On behalf of Navin Fluorine International Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you.